Search Results (65)

The COVID-19 pandemic not only caused considerable disruptions in the capital markets, but also threatened firm sustainability. There are quite a few proxies that can measure a company’s sustainability, but information asymmetry is a representative one. Hence, we use information asymmetry to analyze whether the disruptions caused by changes in the corporate environment during the COVID-19 pandemic fostered significant differences in the sustainability of firms. The findings reveal the following: First, in the full sample, information asymmetry significantly increased during the pandemic. This suggests that the pandemic may have led to capital market disruptions, and thus, low sustainability of firms. Second, analyzing industry variations in information asymmetry during the pandemic reveals that information asymmetry does not significantly increase in the pharmaceutical and information technology industries. In contrast, it significantly increases in the samples belonging to the manufacturing and construction industries. This study provides the empirical evidence of the effects of COVID-19 on company’s sustainability. Based on this study, it should focus on finding way to reduce in-formation asymmetry in the capital market to increase the sustainability of firms in the long run. Full article

China’s retail industry faces unique challenges in supply chain financing, particularly for small and medium-sized enterprises (SMEs) that often struggle to secure loans due to insufficient credit ratings and collateral in the business environment of China. This paper presents a groundbreaking approach that integrates real-time data elements into financing models, addressing the critical issue of information asymmetry between financial institutions and retail SMEs. By leveraging dynamic data such as orders, receivables, and project progress, our novel framework moves beyond the limitations of traditional asset-based lending, employing advanced data analytics for enhanced credit assessment and risk management. Applying the Stackelberg game theory, we explore the strategic interactions between suppliers and purchasers in the retail supply chain, identifying optimal financing strategies that improve capital flow efficiency and reduce overall costs. Our comprehensive data-driven model incorporates various scenarios, including the traditional supply chain financing model (Model T) and the innovative data-element secured financing model (Model G). The latter further considers risk assessment, risk appetite, volume, and schedule factors, providing a holistic approach to financial decision-making. Through rigorous mathematical modeling and numerical analysis, we demonstrate the effectiveness of our proposed framework in optimizing supply chain financing strategies. The results highlight the potential for data-driven approaches to unlock new financing opportunities for SMEs, fostering a more collaborative and efficient ecosystem within the retail industry. This study presents comprehensive data-driven strategies that unlock new financing opportunities for SMEs, providing a practical roadmap for stakeholders to foster a more collaborative and efficient supply chain financing ecosystem. The significance of studying supply chain finance for small and medium-sized enterprises (SMEs) lies in optimizing financing models to address the financing difficulties faced by SMEs. This helps improve their market competitiveness and promotes resource sharing and collaboration among all parties in the supply chain, thereby achieving sustainable economic development. Full article

Over the past decade, China has achieved remarkable achievements in promoting the harmonious development of its economy and environmental protection. How to improve the effectiveness of investment strategy is one of the difficulties in achieving the next low-carbon development goal. This paper aims to explore how to formulate appropriate investment strategies in a market with investors’ reactions in the face of capital shocks caused by low-carbon policies. Based on this, we consider investors’ overreaction to information and study the impact of overreaction on investment objectives and capital constraints. The initial measurement model of the investors’ reaction characters is constructed using the RUNS test method. The Baum–Welch algorithm is used to complete the iterative parameter estimation and the trend prediction. On this basis, the sustainable update strategy is constructed according to the reaction characters of different investors. This strategy can be interpreted as one that continuously adjusts and optimizes in accordance with the fluctuations in the market environment and net returns. It fills the gap in expressing the mapping relationship between investors’ reactions and price in traditional strategies and solves the problem of updating transaction costs in practice. Through the case study, the research shows many results. First, in the face of macro policy shocks, the Markov model with investor reactions as the hidden state is more stable in price prediction than the Markov model with price as the only observation. Second, in an inefficient market, prices do not always lag behind market states. Third, when investors are in an irrational state, conservative holding is more likely to achieve relatively better returns than overreacting to the market. After general validation, we believe that the sustainable update strategy based on the hidden Markov models performs better in a volatile market environment. Full article

The world’s economy is experiencing important changes brought on by diverse factors, namely technological advancements, the appearance and diffusion of personal computers, high-speed telecommunications, and the Internet. These technological changes have influenced the corporate environment, with recent decades denominated as the information economy, the digital economy, the economy of knowledge, a risk society, and the age of quality and innovation. To designate the key concept of the new economic era as “intellectual capital” implies a classification and evaluation effort in order to proceed with its generalization. In today’s world, the study of a model capable of adding explanatory diversity to intellectual capital is very relevant. We observed a true panoply of concepts in the analyzed models based on a literature review. The conceptual evolution during recent decades has motivated many investigations in this field, resulting from the phenomenon of globalization, growing technological innovation, and the observation of significant disparities between the market value and the accounting value of companies. This article describes an investigation carried out, presenting an explicative model of intellectual capital based on four distinct patterns, which are the aggregating factors of the existing conceptual diversity. We present the identification of a model with two axes, x (the type of knowledge, from tacit to explicit) and y (the capital of knowledge, from human to structural), which represents the conceptual diversity mirrored in four quadrants resulting from the research carried out with an initial exploratory study and two following studies with 45 and 72 specialists. In this article we analyze the Martins model, which proves to be essential for systematizing and mapping the dimensions that intellectual capital includes. This model can be used to identify the different aspects of intellectual capital in an organization and thus contribute to its understanding, optimization and good management. Full article

Innovation sustainability is essential for businesses to maintain their competitive edge and ensure long-term growth. This not only benefits individual companies but also entire industries. Despite its importance, research on retail investors’ preferences for innovation sustainability remains limited. To address this gap, we analyzed unique data on shareholder numbers in listed Chinese companies from 2007 to 2020. We differentiate between institutional and retail investors to analyze the latter’s preferences. This finding indicates that retail investors prefer to invest in companies with higher innovation sustainability. This preference stems from their limitations in capabilities of information collection, analytical skills, and risk diversification. The clientele effect is more pronounced when companies face a poor innovation environment, an opaque information environment, and a weak political connection. This study contributes to the existing literature by providing empirical support for the clientele effect and shedding light on retail investors’ preferences and investment behavior. By focusing on company fundamentals, our study extends the examination of the clientele effect to the corporate governance level. These insights have significant implications for promoting sustainable development, impacting both companies and the capital market. Full article

This study investigates the relationship between corporate ethics and the information intermediation element of public companies’ information environment. Drawing on the well-established virtue, deontological, and consequential ethical theories, we predict that higher corporate ethics standards have a positive effect on financial analysts’ behavior and earnings forecasts. Using a sample of 5276 firm-year observations from 780 publicly listed US companies, multivariate regression analyses document a significant positive association between company’s level of ethical commitment and analyst coverage and forecast accuracy. Furthermore, the results show that firms with fewer incidents of ethical misconduct are associated with higher analyst consensus. These findings hold across a battery of robustness tests and indicate that a firm’s ethical commitment enhances its corporate information environment and allows financial analysts to play a more effective intermediary role in capital markets. Full article

In the midst of rigorous market rivalry, enhancing a company’s competitiveness and operational efficiency in an era of rapid IT advancement is a pressing concern for business leaders. The National Big Data Comprehensive Zone (BDCZ) pilot scheme, instituted by the Chinese government, systematically addresses seven core objectives, encompassing data resource management, sharing and disclosure, data center consolidation, application of data resources, and the circulation of data elements. This policy initiative aims to bolster the establishment of information infrastructure through big data applications, facilitate the influx and movement of talent, and propel corporate sustainable growth. Utilizing a quasi-natural experiment approach, we assess the pilot policy’s influence on the digital-intelligent transformation (DIT) of manufacturing companies from a green innovation ecosystem perspective, employing datasets from 2010 to 2022, and methodologies such as Difference-in-Differences (DID), Synthetic Differences-in-Differences (SDID), and Propensity Score Matching-DID (PSM-DID). The findings indicate that the BDCZ initiative significantly fosters DIT in manufacturing companies. The policy’s establishment confers benefits, including access to increased government support and innovation capital, thereby enhancing the sustainability of green innovation efforts. It also strengthens corporate collaboration, engendering synergistic benefits that improve regional economic progression and establish a conducive environment for digital development, ultimately enhancing the regional innovation ecosystem. The pilot policy’s impact varies across entities, with more profound effects observed in developed financial markets compared to underdeveloped ones. Additionally, non-state-owned companies exhibit a greater response to BDCZ policy interventions than their state-owned counterparts. Moreover, manufacturing bussiness with a higher proportion of executive shareholding are more substantially influenced by the BDCZ. This article fills the research gap by using the quasi-natural experiment of BDCZ to test the impact on DIT of companies and provides inspiration for local governments to mobilize the enthusiasm of manufacturing companies for DIT. Full article

This research examines the effect of ESG disclosure on the cost of capital for non-financial firms in the UK, indexed by the FTSE All-Share Index, during the period from 2014 to 2018. Using multivariate analysis with ordinary least squares (OLS), fixed effects, robust regression, and Tobit models, this research assesses the effect of ESG reporting, governance, and the cost of capital, including robustness checks using an alternative ESG indicator, the environmental pillar score. Contrary to expectations, ESG reporting is positively associated with the cost of capital. However, corporate governance moderates this relationship, weakening the positive correlation and reversing it to a negative association for firms with strong governance practices, consistent with the hypotheses. This research also finds that firm size, liquidity, profitability, and leverage, positively affect the cost of capital, while board size, independent board composition, audit committee independence, and auditor type do not significantly influence it. Notably, non-executive directors on the audit committee have a significant negative effect on the cost of capital. These findings are valuable for investors, companies, regulators, auditors, policymakers, and the academic and research community. Specifically, for investors, this study provides insights into how ESG disclosures can influence investment risks and returns, highlighting the importance of robust corporate governance. Companies can leverage these insights to enhance their governance practices and optimize their capital costs. Regulators and policymakers can use the findings to develop guidelines that encourage transparent ESG reporting and strong governance frameworks, thereby improving market stability and investor confidence. Auditors can utilize the results to better understand the effect of non-financial reporting on financial metrics, helping to provide more accurate audits and assessments. These findings inform investors, companies, regulators, auditors, and academia, in fostering a more sustainable and transparent financial environment. Full article

Since 2014, China has been actively promoting the transformation of manufacturing servitization, clarifying the importance of manufacturing servitization. This paper investigates the correlation between manufacturing servitization and cost stickiness, supplementing the research on the economic consequences of manufacturing servitization and the influencing factors of cost stickiness. This paper launches an empirical study with a sample of A-share manufacturing companies from 2014 to 2022. The research results show that, first, manufacturing servitization can inhibit enterprise cost stickiness; second, manufacturing servitization affects enterprise cost stickiness through the path of reducing enterprise adjustment costs, reducing managers’ optimistic expectations and reducing enterprise agency costs; third, the negative relationship between manufacturing servitization and cost stickiness is stronger among firms with a low level of internal control, a strong degree of financing constraints, a good quality internal information environment, a strong degree of competition in the market, and firms that are in capital-intensive manufacturing industries; fourth, the role of embedded servitization on enterprise cost stickiness is not significant, while hybrid servitization can have a significant negative effect on enterprise cost stickiness; and fifth, the impact of manufacturing servitization on enterprise cost stickiness mainly lies in the cost of material resources rather than the cost of human resources. Full article

The swift advancement of the industrial economy has depleted resources and degraded the environment, hindering global economic growth. Digitalization provides a novel approach to decrease carbon emissions and enhance the environment. This study utilized panel data from 2012 to 2021 of listed A-share industrial enterprises as the research sample. It employed suitable measures to assess digitalization and corporate carbon performance. Furthermore, a double fixed-effects regression model was constructed to examine the correlation between digitalization and corporate carbon performance. The findings indicate that digital transformation and corporate carbon performance varied widely across different firms, but there was notable overall progress. Adopting digital transformation in the industrial sector had a substantial and favorable effect on enterprises’ carbon performance. This effect remained substantial despite multiple robustness tests. An examination of the mechanisms involved indicated that digital transformation enhances the carbon performance of industrial sector enterprises by improving the clarity and accessibility of company information. Corporations may intentionally seek difficulties and take strategic risks due to performance–expectation discrepancies. Due to the digital transformation, this behavior may improve the carbon performance of listed industrial businesses. The carbon performance of industrial businesses after digital transformation depends on elements like property rights, market rivalry, industry pollution, and capital investment. Full article

A growing body of research suggests that the contemporary media environment enables motivated reasoning, which intensifies affective polarization. This is especially the case in the U.S., where elections are capital-intensive and media are largely commercially owned. From a normative perspective, these commercial forces may interfere with authentic communication by hijacking the “lifeworld” and thus undermining the sincerity of our speech. From a psychological and empirical perspective, this means we are an affective public steeping in “hot cognitions” that unconsciously motivate us toward processing (mis)information in biased and distorted ways. This kind of cognitive limitation intensifies as current affairs heat up, but starts well before, as a function of media market boundaries aligning with human psychology. Through a synthetic literature review of theory and empirical research, this essay argues that “social identity complexity” may help to overcome some of the worst outcomes of motivated reasoning, pointing toward a developmental basis for more authentic communication in the public sphere. Full article

The objective of this study was to examine the potential moderating effects of the relationship between macroeconomic variables and the financial liquidity of enterprises. Given the significance of liquidity for companies and the profound impact of the macroeconomic environment, a research gap was identified in relation to the limited number of studies investigating the influence of macroeconomic factors on corporate liquidity. Additionally, the limited scope of companies surveyed in this area, in terms of sector, size, capital market presence, and the limited range of macroeconomic variables examined were notable. Most importantly, the absence of studies examining moderators of the relationship between macroeconomic factors and liquidity was a significant concern. To this end, two main research questions were formulated. First, what factors moderate the relationship between macroeconomic variables and the financial liquidity of companies? Second, what is the nature of the moderating effects on the relationship between macroeconomic variables and corporate financial liquidity? This research employed panel data analysis on an unbalanced panel comprising 5327 Polish enterprises spanning from 2003 to 2021. The primary analytical technique utilised was linear regression (pooled OLS) with robust standard errors clustered at the firm level. The main results of this study indicate that: (1) debt level, profitability, and the fixed assets to total assets ratio are significant moderators of some of the relationships between macroeconomic variables and corporate liquidity; (2) debt level moderates the relationship between the ratio of internal expenditures on research and development to GDP and financial liquidity, as well as the relationship between inflation rate and liquidity; the relationship is statistically significant and positive only for those enterprises with above-median debt levels; (3) profitability moderates the relationship between the employment coefficient and financial liquidity, as well as the relationship between the inflation rate and liquidity; in the high-profitability group, those relationships are positive, whereas in the low-profitability group, they are negative; (4) the ratio of fixed assets to total assets moderates the relationship between the money supply and corporate financial liquidity; for enterprises with low asset flexibility, there is a negative relationship between the money supply and financial liquidity; conversely, for enterprises with high asset flexibility, there is a positive relationship between the money supply and financial liquidity; (5) the rationale behind these findings can be derived from capital structure theory and financial analysis theory. The results of this study represent a step towards a more comprehensive understanding of the relationship between the macro environment and corporate liquidity, as well as the factors that moderate this relationship from both a microeconomic and a macroeconomic perspective. The findings of this study may also inform policy decisions governing the corporate sector due to a more nuanced understanding of the relationships between macroeconomic factors and corporate liquidity. Full article

Forest tickets refer to a type of forest resource usufruct certificate characterized by “cooperative operation, quantification of rights and interests, free circulation, and guaranteed dividends”. It is an important means to build a market-oriented mechanism for realizing the value of ecological resources. Incomplete information, based on field survey data from thirteen villages in eight townships (towns) in Sanming City, Fujian Province, China, and a binary logit model were used to explore the moderating effects of factors affecting farmers’ willingness to participate in forest ticket trading, the heterogeneity of farmers, and social capital. We found the following: In an environment with incomplete information, farmers’ willingness to participate in forest ticket trading is influenced by heterogeneity expectations, social capital, government propaganda, and individual family characteristics. There are certain differences in the influencing factors and degree of farmers’ willingness to participate in forest ticket trading among different groups of farmers with different levels of education and part-time employment. Social capital can strengthen the positive impact of income expectations and policy sustainability expectations, and alleviate the negative impact of risk expectations. Full article

Rural agrarian societies, like Bangladesh, rely substantially on women as primary contributors to crop production. Their involvement covers a broad spectrum, from the first stage of seed sowing to the ultimate phase of marketing agricultural products. Information and communication technology (ICT) in agriculture could be a transformative tool for women’s agricultural involvement. Despite the inherent challenges associated with ICT adoption, it has emerged as an effective catalyst for improving the livelihoods of rural women in Bangladesh. This study investigates the impacts of ICT on the livelihoods of rural women. This study concurrently addresses the challenges that infringe upon its sustainability. The study was conducted within Oxfam Bangladesh’s ICT interventions implemented upon the women farmers in Dimla Upazila, Nilphamari, Bangladesh. We employed a mixed-methods research approach to examine the multilayered impacts of ICT on women farmers’ livelihoods. Our findings indicate that ICT support has improved the livelihoods of rural women through a comprehensive capital-building process encompassing human capital, social capital, financial capital, physical capital, and political capital, facilitated by creating an enabling environment. The study also unfolded several challenges stemming from aspects of ICT integration, including the disappearance of indigenous agroecological knowledge and the disruption of traditional multicropping practices. In light of the study’s outcomes, a key recommendation emerges, emphasizing the importance of integrating indigenous agroecological knowledge in the widescale implementation of ICT initiatives. Acknowledging and accommodating indigenous knowledge can enhance the sustainability of ICT-driven livelihood enhancements for rural women in Bangladesh. Full article

Intelligent transformation plays a crucial role in advancing sustainable development in manufacturing while also enhancing the information environment. This study examines the role of intelligent transformation in China’s manufacturing sector, spanning theoretical and empirical dimensions and being anchored in the context of capital market information efficiency. The theoretical framework highlights how intelligent transformation mitigates information asymmetry, aligning a firm’s valuation with its intrinsic value, thereby elevating the information efficiency of capital markets. Leveraging annual reports from China’s A-share manufacturing firms, this study employs textual analysis to construct indicators assessing the extent of intelligent transformation across these entities. The empirical findings of this study harmonize with the theoretical constructs. Notably, intelligent transformation emerges as a pivotal driver in enhancing information efficiency in capital markets, substantiated by a negative correlation between intelligent transformation and stock price synchronicity within the manufacturing domain. This correlation withstands a battery of robustness tests and endogeneity treatment. The mechanism driving this transformative impact lies in intelligent transformation’s ability to enhance productivity and magnify market attention, thereby positively influencing capital market information efficiency. The insights not only provide empirical support but also offer practical guidance for improving real-world company operations and developing high-quality capital markets. Full article