Search results

Independent directors are important corporate decision participants and makers. Based on the Chinese cultural background, this paper interprets the listing order of independent directors as independent directors’ status, exploring their influence on the corporate research and development (R&D) behavior.

This paper studies A-share listed firms in China from 2008 to 2018 as the sample. The main method is ordinary least square (OLS) regression. We also use other methods to deal with endogenous problems, such as the firm fixed effect method, change model method, two-stage instrumental variable method, and Heckman two-stage method.

(1) Higher independent directors’ status attribute to more effective exertion of supervision and consultation function, and positively enhance the corporate R&D investment. The increase of the independent director’ status by one standard deviation will increase the R&D investment by 4.6%. (2) The above effect is more influential in firms with stronger traditional culture atmosphere, higher information opacity and higher performance volatility. (3) High-status independent directors promote R&D investment by improving the scientificity of R&D evaluation and reducing information asymmetry. (4) The enhancing effect of independent director’ status on R&D investment is positively associated with the firm’s patent output and market value.

This paper contributes to understanding the relationship between the independent directors’ status and their duty execution from an embedded cultural background perspective. The findings of the study enlighten the improvement of corporate governance efficiency and the healthy development of the capital market.

The political influence on the determinants of capital structure has been under-researched for a long time. Taking the turnover of secretary of municipal committee as a political factor in China, this paper studies the effect of local government officials' turnover on firm's capital structure.

Starting with all A-shares listed firms in the Shanghai and Shenzhen Stock Exchanges from 2001 to 2018, this paper implements the OLS estimation, staggered difference-in-difference approach to investigate the effects of political turnover on the choice of capital structure.

The results show that, driven by government officials' turnover, firms will significantly reduce their leverage. When comparing between formal finance (bank loans) and informal finance (payables), the reduction of capital structure is mainly driven by banks, not by suppliers. Furthermore, two possible channels have been investigated. First, the reduction effects are mainly driven by the SOEs when classifying the types of corporate ownership into SOEs and non-SOEs. Second, the reduction effects exist in areas with the more intense government intervention when considering the heterogeneity of the development of institutional environment in provinces.

This paper first contributes to the literature on the determinants of corporate choice on capital structure. Second, this paper enriches the studies on the economic consequences of local government officials' turnover.

This study provides empirical support for the cultural economics model between executive team and firm performance and offers important implications for policy selection and appointment of managers in China.

From the perspective of relationship embeddedness, the authors explore the impact of management geographical proximity (GP) on stock price crash risk in China. Using archival data from China's unique dataset about birthplace culture, the authors find that management GP experiences a large increase in corporate stock price crash risk for the period 2009–2018.

The impact of management GP on stock price crash risk is more pronounced when the company is located in areas with weaker formal legal environment and stronger Confucian culture. Furthermore, the impact has a significant links with firm characteristics such as information transparency, over-investment and tax aggressiveness.

First, the research extends the literature on the empirical determinants of stock price crash risk. These studies focus on formal institution, not on informal institution, such as relational culture. Second, the research provides evidence for economic consequences on relational governance from executive birthplace culture to explore the economic consequences of geographical relational governance but takes stock price crash risk to present executives' behavior strategies and market reaction via exploring asymmetrical variation of market stock price. Finally, the paper provides reference to corporate governance arrangement and executive appointment.

This study aimed to analyze the impact of enterprise digital transformation on bank loan contracting from 2007 to 2021.

This study used an empirical approach to examine the impact of digital transformation on bank loan interest rates and the possible mechanisms. The digital transformation data of firms were obtained by Python, and the bank loan contracting information of Chinese listed firms was hand-collected from the notes of the annual report.

The results show that digital transformation can significantly reduce the bank loan interest rate and show heterogeneity in the nature of property rights, industry type and firm size. The above results remain significant after conducting a series of robustness tests. Channel tests suggest that digital transformation can promote total factor productivity, improve firms’ information environment and reduce the risk of financial distress, thus helping them reduce their loan interest rate. In addition, banks’ digital transformation can also affect the link between enterprise digital transformation and bank loan interest rates.

First, this paper deeply investigates the relationship between enterprise digital transformation and bank loan contracting, and the mechanisms behind it which expands the research on economic consequences of digitalization. Developing digitalization society has been a top priority in China as it is an urgent task to survive in the competitive global economic environment as a developing country. Second, in developed countries, the evidence relating to bank loan contracting is plentiful. However, the Chinese studies are still very limited as it has no database like Dealscan in US.

The purpose of this paper is first, to overview the current research situation on job embeddedness (JE), including the theoretical underpinning of JE, the definition and dimensions of JE, its comparisons with similar constructs, and its global and composite measure; second, to intergrate the unfolding model, JE and image theory to better understand voluntary turnover – and indicate future research directions.

An extensive literature search covering several separate electronic databases, including ScienceDirect, EBSCO, Kluwer and Emerald, was conducted. Most of the articles can be acquired online from The University of California Riverside. The validity and reliability are compared between global and composite scales. The authors summarized and categorized the findings of current research.

JE can be differentiated from those similar constructs and measures already in the literature. Almost all of the studies on JE have found that it predicted voluntary turnover better than job attitudes and perceived ease of movement from traditional models of turnover. Along with extended research on it, JE was disaggregated into two major sub‐dimensions, namely, on‐the‐job and off‐the‐job embeddedness, and it has been extended to occupational and career level.

In this paper, the authors use qualitative methods to evaluate the current studies on JE, only. Meta‐analysis, as a reviewing method, should be used in future research on clarifying the relationships between JE and other constructs in organizational behavior.

This research reviews almost all of the studies on JE from 2001 to 2009 and organizes and categorizes them into three kinds: cause, consequence and theoretical extension. The authors also summarize its relationships with other constructs (e.g. turnover, turnover intention, organizational commitment, organizational citizenship behavior) in various settings. Finally, based on discussion, the authors indicate future research directions.

ESG issues are gaining increasing attention from investors, but the environmental, social and governance (ESG) rating disagreement caused by different standards of rating agencies misleads investors' investment decisions. This can lead to an increased risk of stock price crashes, causing turbulence in the financial markets and reducing investors' confidence. The paper investigates whether ESG rating disagreement of the current period increases stock price crash risk and the mechanism to mitigate this impact.

With the sample of the listed companies of Shanghai and Shenzhen Stock Exchanges from 2010 to 2022 this paper examines the impact of ESG rating disagreement itself on stock price crash risk. Moreover, this paper examines the mechanisms by analyzing the moderating effect of distraction of investors; digital economy and corporate intelligence maturity.

This paper finds that ESG rating disagreement itself would amplify the stock price crash risk. When exploring the moderating effect of institutional investors' distraction, digital economic development level and corporate intelligence, the paper found that they would mitigate the impact of ESG rating disagreement on stock price crash risk. The relationship between ESG rating disagreement and stock price crash risk is more pronounced in the context of heavily-polluted, state-owned enterprises (SOEs) and enterprises with star analysts.

Currently, few articles discuss ESG rating disagreement, especially the impact of current ESG rating disagreement on stock price crash risk. This paper focuses on this topic and provides strategies to mitigate the impact of current ESG rating divergence on stock price crash risk.

This study aims to investigate whether and how public air environmental concern (PAEC) affects corporate environmental, social and governance (ESG) performance in emerging markets.

This study measured PAEC using the Baidu index search keyword “雾霾 (PM2.5)” and assessed its impact on corporate ESG among Chinese A-share listed companies from 2011 to 2020 through regression analysis.

The empirical results indicate a positive relationship between PAEC and corporate ESG. Moreover, PAEC facilitates enhanced corporate ESG performance by mediating through corporate reputation and government environmental regulations. Heterogeneity analysis shows that the promotion effect of PAEC on ESG is more pronounced in the subgroups of companies with an excellent green image, low perceived uncertainty, strong management political connections, low short-termism, high industry technological levels and low pollution levels.

The practical implications of this study underscore the importance for policymakers, investors and companies to prioritize PAEC and its influence on corporate ESG performance.

This study contributes to ESG literature by highlighting the positive impact of external oversight, such as PAEC.

The main objective of this research is to analyze the dynamics of academic research on digital entrepreneurship and innovation, unveiling the main research trends developed in the last decade.

The analysis has been carried out using a dual methodological approach comprising bibliometric methods and an innovative three-level systematic review, involving the analysis of the most used keywords, the co-occurrence network of keywords and a traditional review of the abstracts of the 1713 peer-reviewed articles that make up the database under study, with the aim of revealing and discussing the most important research trends developed in the period analyzed.

The results reveal seven major research trends that underscore the fundamental role of digital platforms in democratizing innovation, enabling a more inclusive and collaborative environment wherein startups, established firms, academia and government entities converge to drive technological advancements and societal progress. Additionally, the pressing need for a holistic understanding of digital technologies' potential to spur economic growth, societal progress and sustainable development is highlighted, as well as the challenges posed by privacy, security and the digital divide.

This research has been developed using an innovative methodology, and contributes to the academic discourse by providing a comprehensive overview of the current state and prospects of digital entrepreneurship and innovation for policymakers, entrepreneurs and researchers, urging a collaborative effort to harness the benefits of digital transformation in an equitable and responsible manner, fostering an environment of innovation that is conducive to the sustainable growth of the digital economy.