2025 Vol. 39, No. 3
Display Method:
2025, 39(3): 3-23.
Abstract:
Green development relies on the supply and verification of environmental information. If information provision is left solely to market intermediaries, it can easily lead to rating jungle characterized by inconsistent rating quality. Can government-provided environmental credit evaluation effectively mitigate problems arising from environmental heterogeneous beliefs? Based on the potential asset mispricing caused by heterogeneity in environmental cognition among heavy-polluting industries, this study utilizes micro panel data from A-share listed companies in these industries from 2008 to 2023 to examine the impact and mechanism of environmental credit evaluation on asset mispricing. The findings reveal that environmental credit evaluation significantly alleviates asset mispricing by reducing information asymmetry and suppressing investor irrationality. The suppressive effect of environmental credit evaluation on asset mispricing is more pronounced in firms with greater market environmental disagreement, higher investor heterogeneous beliefs, and particularly in those with lower investor attention, higher media coverage, and lower environmental information transparency. Further analysis shows that environmental credit evaluation plays a more significant pull-up role for undervalued stocks. This study contributes to understanding the role of the government as an information provider in capital markets and offers theoretical insights and practical implications for promoting the healthy and sustainable development of capital markets.
Green development relies on the supply and verification of environmental information. If information provision is left solely to market intermediaries, it can easily lead to rating jungle characterized by inconsistent rating quality. Can government-provided environmental credit evaluation effectively mitigate problems arising from environmental heterogeneous beliefs? Based on the potential asset mispricing caused by heterogeneity in environmental cognition among heavy-polluting industries, this study utilizes micro panel data from A-share listed companies in these industries from 2008 to 2023 to examine the impact and mechanism of environmental credit evaluation on asset mispricing. The findings reveal that environmental credit evaluation significantly alleviates asset mispricing by reducing information asymmetry and suppressing investor irrationality. The suppressive effect of environmental credit evaluation on asset mispricing is more pronounced in firms with greater market environmental disagreement, higher investor heterogeneous beliefs, and particularly in those with lower investor attention, higher media coverage, and lower environmental information transparency. Further analysis shows that environmental credit evaluation plays a more significant pull-up role for undervalued stocks. This study contributes to understanding the role of the government as an information provider in capital markets and offers theoretical insights and practical implications for promoting the healthy and sustainable development of capital markets.
2025, 39(3): 24-42.
Abstract:
Since the Reform and Opening-up, the non-state economy has injected new momentum into China’s economy with its flexibility and innovation ability. Rooted in the traditional perception of the zero-sum competition between the state and non-state sectors, some views suggest that the rapid development of the non-state economy may exert challenge to the state-owned economy. How the development of the non-state economy affects the performance of local state-owned enterprises (SOEs) has been a critical issue worthy of in-depth study. This paper systematically examines the impact of non-state economic development on the performance of local SOEs and its underlying mechanisms. The findings indicate that: (1) The development of the non-state economy significantly and positively influences the performance of local SOEs; (2) The positive impacts is potentially realized through mechanisms such as innovation spillovers and the flow of advantageous factors; (3) The positive effect of non-state economic development on the performance of local SOEs is more pronounced in high-tech industries and commercial SOEs; (4) The development of the non-state economy helps enhance the financial stability of local SOEs and reduces their probability of falling into financial distress. The paper proposes the following recommendations: optimize the policy environment to encourage the development of the non-state economy; deepen mixed-ownership reforms to improve the ownership structure of SOEs; and strengthen strategic cooperation between non-state enterprises and SOEs to foster their symbiotic and mutually beneficial development, thereby providing robust support for China’s sustained and high-quality economic growth.
Since the Reform and Opening-up, the non-state economy has injected new momentum into China’s economy with its flexibility and innovation ability. Rooted in the traditional perception of the zero-sum competition between the state and non-state sectors, some views suggest that the rapid development of the non-state economy may exert challenge to the state-owned economy. How the development of the non-state economy affects the performance of local state-owned enterprises (SOEs) has been a critical issue worthy of in-depth study. This paper systematically examines the impact of non-state economic development on the performance of local SOEs and its underlying mechanisms. The findings indicate that: (1) The development of the non-state economy significantly and positively influences the performance of local SOEs; (2) The positive impacts is potentially realized through mechanisms such as innovation spillovers and the flow of advantageous factors; (3) The positive effect of non-state economic development on the performance of local SOEs is more pronounced in high-tech industries and commercial SOEs; (4) The development of the non-state economy helps enhance the financial stability of local SOEs and reduces their probability of falling into financial distress. The paper proposes the following recommendations: optimize the policy environment to encourage the development of the non-state economy; deepen mixed-ownership reforms to improve the ownership structure of SOEs; and strengthen strategic cooperation between non-state enterprises and SOEs to foster their symbiotic and mutually beneficial development, thereby providing robust support for China’s sustained and high-quality economic growth.
2025, 39(3): 43-68.
Abstract:
Subject to fiscal safeguards and corporate risk containment, enhancing the investment efficiency of state-owned enterprises (SOEs) is a crucial pathway to achieving high-quality economic development in China. This study investigates the impact and mechanism of government debt audits on SOE investment efficiency using a sample of state-owned A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2008 to 2020. The findings reveal that: (1) A non-linear relationship exists between local government debt and SOE investment efficiency. Moderate levels of local government debt contribute to improved SOE investment efficiency. However, as the local government debt ratio rises, particularly when it exceeds warning thresholds, SOE investment efficiency significantly declines. (2) Government debt audits significantly enhance SOE investment efficiency through monitoring effects and information effects, specifically manifested in curbing overinvestment and alleviating underinvestment. (3) Government debt audits play a risk warning role: when debt risks are elevated (i.e., exceed warning indicators), the audit agencies issue risk signals to debt management authorities. This facilitates the containment of local government debt within reasonable bounds, subsequently improving SOE investment efficiency. Further analysis indicates that the investment governance effects of audits are more pronounced under routine government debt audit implementation and in regions with higher audit quality. Additionally, the current debt warning indicators are rationally calibrated provided that debt risks remain controllable and local financing needs are met. The research conclusions offer significant implications for enhancing SOE investment efficiency, strengthening government debt risk control, optimizing the executive selection mechanisms in SOEs, and improving audit practices.
Subject to fiscal safeguards and corporate risk containment, enhancing the investment efficiency of state-owned enterprises (SOEs) is a crucial pathway to achieving high-quality economic development in China. This study investigates the impact and mechanism of government debt audits on SOE investment efficiency using a sample of state-owned A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2008 to 2020. The findings reveal that: (1) A non-linear relationship exists between local government debt and SOE investment efficiency. Moderate levels of local government debt contribute to improved SOE investment efficiency. However, as the local government debt ratio rises, particularly when it exceeds warning thresholds, SOE investment efficiency significantly declines. (2) Government debt audits significantly enhance SOE investment efficiency through monitoring effects and information effects, specifically manifested in curbing overinvestment and alleviating underinvestment. (3) Government debt audits play a risk warning role: when debt risks are elevated (i.e., exceed warning indicators), the audit agencies issue risk signals to debt management authorities. This facilitates the containment of local government debt within reasonable bounds, subsequently improving SOE investment efficiency. Further analysis indicates that the investment governance effects of audits are more pronounced under routine government debt audit implementation and in regions with higher audit quality. Additionally, the current debt warning indicators are rationally calibrated provided that debt risks remain controllable and local financing needs are met. The research conclusions offer significant implications for enhancing SOE investment efficiency, strengthening government debt risk control, optimizing the executive selection mechanisms in SOEs, and improving audit practices.
2025, 39(3): 69-96.
Abstract:
Against the backdrop of comprehensive advancement of Digital China, the assetization of corporate data resources is significant for digital transformation. The study utilizes a sample of China’s A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2021, employs machine learning and text analysis to construct corporate data assetization indicators, and examines the impact of data assetization on corporate investment efficiency and mechanisms from an informational perspective. The results indicate that data assetization significantly enhances corporate investment efficiency. Mechanism tests reveal three channels: information resource mechanism, information quality mechanism and information governance mechanism. Heterogeneity tests demonstrate that the positive effect of data assetization on corporate investment efficiency is more pronounced when CEOs have IT background, and when firms are in better external information environments, have non-state-owned property rights, or are located in regions with lower marketization levels. Dimension-specific test on inefficient investment finds that data assetization alleviates underinvestment while suppressing overinvestment. Economic consequence analysis indicates that data assetization promotes high-quality corporate development by improving investment efficiency. This study reveals the impact of data assetization on corporate investment efficiency and its information transmission mechanism, and provides micro-level theoretical foundations and policy implications for firms to strengthen data asset development, application, and management.
Against the backdrop of comprehensive advancement of Digital China, the assetization of corporate data resources is significant for digital transformation. The study utilizes a sample of China’s A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2021, employs machine learning and text analysis to construct corporate data assetization indicators, and examines the impact of data assetization on corporate investment efficiency and mechanisms from an informational perspective. The results indicate that data assetization significantly enhances corporate investment efficiency. Mechanism tests reveal three channels: information resource mechanism, information quality mechanism and information governance mechanism. Heterogeneity tests demonstrate that the positive effect of data assetization on corporate investment efficiency is more pronounced when CEOs have IT background, and when firms are in better external information environments, have non-state-owned property rights, or are located in regions with lower marketization levels. Dimension-specific test on inefficient investment finds that data assetization alleviates underinvestment while suppressing overinvestment. Economic consequence analysis indicates that data assetization promotes high-quality corporate development by improving investment efficiency. This study reveals the impact of data assetization on corporate investment efficiency and its information transmission mechanism, and provides micro-level theoretical foundations and policy implications for firms to strengthen data asset development, application, and management.
2025, 39(3): 97-114.
Abstract:
This paper investigates the impact of Employee Stock Ownership Plans (ESOPs) on corporate performance from the perspective of the firm life cycle, utilizing a sample of Chinese A-share listed companies from 2014 to 2019. Empirical results reveal that the implementation of ESOPs significantly enhances corporate performance in firms in the growth stage and maturity stage, while no statistically significant improvement is observed for firms in the decline stage. Mechanism tests indicate that the implementation of ESOPs significantly promotes total factor productivity for firms in the growth stage and maturity stage, but exhibits no significant effect for firms in the decline stage. Further analysis demonstrates that, for firms in the growth stage and maturity stage, the performance-enhancing effect of ESOPs is significant only among non-state-owned enterprises, high-tech firms, firms with high human capital intensity, and firms characterized by low ownership concentration.
This paper investigates the impact of Employee Stock Ownership Plans (ESOPs) on corporate performance from the perspective of the firm life cycle, utilizing a sample of Chinese A-share listed companies from 2014 to 2019. Empirical results reveal that the implementation of ESOPs significantly enhances corporate performance in firms in the growth stage and maturity stage, while no statistically significant improvement is observed for firms in the decline stage. Mechanism tests indicate that the implementation of ESOPs significantly promotes total factor productivity for firms in the growth stage and maturity stage, but exhibits no significant effect for firms in the decline stage. Further analysis demonstrates that, for firms in the growth stage and maturity stage, the performance-enhancing effect of ESOPs is significant only among non-state-owned enterprises, high-tech firms, firms with high human capital intensity, and firms characterized by low ownership concentration.
2025, 39(3): 115-138.
Abstract:
This paper investigates the impact mechanism and functional pathways of key audit matters (KAM) disclosure concerning financial assets on corporate financial asset allocation, using a sample of A-share non-financial listed companies in Shanghai and Shenzhen stock markets from 2016 to 2019. We document that KAM disclosure on financial assets significantly reduces corporate financial asset allocation. Mechanism tests reveal that: KAM disclosure on financial assets has significantly reduced corporate long-term financial assets; media coverage and analyst tracking weaken the negative impact of the disclosure on corporate financial asset allocation, while financing constraints show no significant effect on this relationship. This indicates that the mechanism through which KAM disclosure on financial assets affects corporate financial asset allocation is primarily the monitoring effect, rather than the information effect. Further research finds that the inhibitory effect is stronger for firms over-allocating to financial assets. Considering the textual tendency of KAM disclosure on financial assets, it is found that corporate financial asset allocation decreases more significantly when auditors provide conclusive evaluations or employ a negative textual tone regarding these matters. The conclusions provide important insights for advancing the audit report reform and curbing financialization of real-sector enterprises.
This paper investigates the impact mechanism and functional pathways of key audit matters (KAM) disclosure concerning financial assets on corporate financial asset allocation, using a sample of A-share non-financial listed companies in Shanghai and Shenzhen stock markets from 2016 to 2019. We document that KAM disclosure on financial assets significantly reduces corporate financial asset allocation. Mechanism tests reveal that: KAM disclosure on financial assets has significantly reduced corporate long-term financial assets; media coverage and analyst tracking weaken the negative impact of the disclosure on corporate financial asset allocation, while financing constraints show no significant effect on this relationship. This indicates that the mechanism through which KAM disclosure on financial assets affects corporate financial asset allocation is primarily the monitoring effect, rather than the information effect. Further research finds that the inhibitory effect is stronger for firms over-allocating to financial assets. Considering the textual tendency of KAM disclosure on financial assets, it is found that corporate financial asset allocation decreases more significantly when auditors provide conclusive evaluations or employ a negative textual tone regarding these matters. The conclusions provide important insights for advancing the audit report reform and curbing financialization of real-sector enterprises.
2025, 39(3): 139-158.
Abstract:
The effective realization of national governance efficacy is not only dependent on top-down bureaucratic structures and rigorously defined legal regulations but also deeply influenced by the cultural factors, such as values and behavioral norms embedded in the governance process. Integrating traditional culture into fiscal governance can generate moral guidance, enhance the voluntary identification of actors, transform exogenous instrumental compliance into endogenous voluntary compliance, thereby achieving endogenous compliance in governance. Through creative transformation and innovative development, fine traditional Chinese culture embeds shared values into governance rules, shaping fiscal governance with Chinese characteristics. This process is realized primarily through three pathways: First, traditional culture and modern governance have mutually integrated in terms of symbol system and discourse system, spontaneously generating governance authority symbols that encompass both traditional connotations and modern extensions, providing a value foundation for fiscal governance. Second, traditional culture internalizes individual behaviors into collective interests through moral norms and value guidance, fosters public voluntary support and adherence to fiscal reforms and legal regulations, and thus creates a conducive environment for orderly compliance. Third, traditional culture consolidates collective willpower, enables organizational mobilization and resource integration in critical areas, and forms the system for mobilizing the resources nationwide. Approaching from the perspective of traditional culture and endogenous compliance, it may provide new ideas for analyzing fiscal governance innovations in contemporary China, and provide new academic reference for the construction of fiscal theory with Chinese characteristics.
The effective realization of national governance efficacy is not only dependent on top-down bureaucratic structures and rigorously defined legal regulations but also deeply influenced by the cultural factors, such as values and behavioral norms embedded in the governance process. Integrating traditional culture into fiscal governance can generate moral guidance, enhance the voluntary identification of actors, transform exogenous instrumental compliance into endogenous voluntary compliance, thereby achieving endogenous compliance in governance. Through creative transformation and innovative development, fine traditional Chinese culture embeds shared values into governance rules, shaping fiscal governance with Chinese characteristics. This process is realized primarily through three pathways: First, traditional culture and modern governance have mutually integrated in terms of symbol system and discourse system, spontaneously generating governance authority symbols that encompass both traditional connotations and modern extensions, providing a value foundation for fiscal governance. Second, traditional culture internalizes individual behaviors into collective interests through moral norms and value guidance, fosters public voluntary support and adherence to fiscal reforms and legal regulations, and thus creates a conducive environment for orderly compliance. Third, traditional culture consolidates collective willpower, enables organizational mobilization and resource integration in critical areas, and forms the system for mobilizing the resources nationwide. Approaching from the perspective of traditional culture and endogenous compliance, it may provide new ideas for analyzing fiscal governance innovations in contemporary China, and provide new academic reference for the construction of fiscal theory with Chinese characteristics.
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