This study investigates the effects of CEO hometown ties on corporate tax avoidance. The results show that CEO hometown ties to local government officials have a significantly positive impact on tax avoidance for private firms in China. We also find that the hometown ties effect is more pronounced in cities with weak public governance and in cities whose municipal Party committee secretaries are promoted from the same city, whereas the effect is weak in cities whose municipal Party committee secretaries are transferred from other places. In summary, our results suggest that hometown ties as an important political resource can facilitate connected private firms to obtain more economic resources from government.
Executive characteristics have a significant impact on corporate decision-making, corporate sustainable behavior, and stock market performance, which may influence the corporations’ sustainable development in the long run. The role of returnee talents in the corporate sustainable development has received extensive academic attention. Using data of Chinese A-share listed companies over the period of 2008–2018, we find that there is a negative relationship between executives’ foreign experience and stock price synchronicity. We also prove that corporate social responsibility (CSR) has a significant mediating effect on the relationship between returnee executives and stock price synchronicity. The returnee executives tend to pursue long-term sustainable activities and improve CSR engagement quality, thereby reducing stock price synchronicity. Our extended analysis reveals that the benefit of returnee executives is more pronounced for non-SOEs and for firms located in regions with a low degree of marketization. This study has some implications for the Chinese firms in relation to their CSR information disclosure behavior, and it gives suggestions to strengthen capital market efficiency for the sustainable development of corporations.
With the rapid development of economic globalization, keeping the global supply chains sustainable is becoming increasingly important in improving supply chain performance and firm value. To fully understand the role of the supply chain relationship, it is necessary to comprehensively assess different characteristics of supply chain partnership in achieving sustainability goals. This study explores the implication of concentrated supply-chain partnership on loan features. Using a sample of Chinese-listed firms, we find that concentrated customer or supplier bases positively influence loan features, including loan size, loan maturity, and loan cost. We propose that concentrated customer and supplier bases influence the loan features through different mediators. Through mediating analysis, concentrated customer bases affect loan features through better corporate governance and lower operational risk, and concentrated supplier bases through lower operational cost and longer accounts payable cycle. The benefit of a concentrated chain partnership is more pronounced when customers or suppliers have a greater certification role, less uncertainty, and stronger geographical advantage. The results are robust to instrumental variable analysis, propensity-matched analysis, and alternative measures of chain partnership concentration. Findings in this study have important implications for understanding the sustainable supply-chain partnership management and loan decisions of banks in an emerging market.
Purpose – This study aims to analyze, through empirical analysis, how the characteristics of TikTok's content, such as informativeness, entertainment, and empathy, affect the reliability and purchase intention of Korean products directly targeting Chinese consumers. Design/Methodology/Approach – The survey for this study targeted Chinese consumers that had placed an order using TikTok. The questionnaire was completed through Yunju Anxin, a highly reliable online survey company in China, and the questionnaire was sent only through SNS from July 1, 2022 to July 6, 2022. As a result, a total of 518 questionnaire responses were collected, and a total of 512 valid questionnaires were collected by removing questionnaires with missing values and questionnaires judged to be significantly less reliable. Findings – In information, empathy, and entertainment factors, consumer trust, and consumer purchase intention were found to be statistically significant at the significance level of 0.000. In other words, as a result of multiple regression analysis, it was found that all three variables of information, empathy, and entertainment had a significant effect on the reliability of Korean products and consumer purchase intention. Research Implications – It was confirmed that the TikTok marketing of Korean products is an important factor influencing consumer purchase intentions, as in the results of previous studies. TikTok marketing should be operated strategically by utilizing the fact that information, sympathy, and entertainment, which are characteristics of TikTok content, have great influence on product marketing and consumer purchase intention.
Supply chain information disclosure is a vital factor for corporate investment efficiency and can signal a corporation’s long-term sustainable development. However, little attention has been paid to its significance. In this paper, we investigate how supply chain information disclosure affects corporate investment decisions. Using a sample of Chinese-listed firms, we find that firms that disclose nonfinancial information are more likely to have a high level of investment efficiency. We also identify the mechanism underlying the effect by examining the mediating effect of financial constraints and agency costs. Increasing a firm’s supply chain information disclosure can improve its investment efficiency by reducing its financial constraints and agency costs. We further find that this positive impact is more pronounced for non-state-owned enterprises (non-SOEs) and firms located in regions with a high degree of marketization. Our findings imply that supply chain information disclosure plays an important role in corporate investment efficiency and sustainable development. Our study emphasizes the importance of nonfinancial information disclosure, contributing to the literature investigating the role of supply chain management in corporate decision-making on sustainable development.
We extend the self-exciting model by assuming that the temporary market impact is nonlinear and the coefficient of the temporary market impact is an exponential function. Through optimal control method, the optimal strategy satisfies the second-order nonlinear ordinary differential equation. The specific form of the optimal strategy is given, and the decreasing property of the optimal strategy is proved. A numerical example is given to illustrate the financial implications of the model parameter changes. We find that the optimal strategy of a risk-neutral investor changes with time and investment environment.
As an important driving force for China’s economic transformation and upgrading, the problems of financing difficulties and expensive financing for SMEs have become increasingly prominent. The main objective of this paper was to analyze the impact of financial intermediary departments’ risk preference on corporate finance. Under the revised DSGE framework, this paper discusses the impact and stability analysis of commercial banks’ risk preferences on SMEs’ financing. The results show that positive interest rate shocks inhibit commercial banks’ credit to SMEs, and with the increasing weight of commercial banks’ risk preference for default rate, the trend of credit repression will be intensified.
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