Considered as a key component of human capital, mental health has drawn substantial scholarly attention for its effect on people’s health status and economic outcome. When facing the challenge of stress, people’s heterogeneity in cognitive ability and non-cognitive ability causes difference in patterns of coping, resulting in different manifestations in mental health. Previous researches have shown that cognitive and non-cognitive abilities have positively direct or indirect effects on mental health, but few studies research their role of coping with air pollution. We used the China Family Panel Survey (CFPS) and matched individual data with county or district level PM2.5 information from NASA. The study found that air pollution has negative effect on mental health with every increase of 1μg/m3 in PM2.5 deteriorating mental health by 0.038 standard deviation, which is the total effect of air pollution. However, the direct effect of air pollution on mental health will decrease to 0.028 in absolute value when considering mediating effects. By employing different approaches, we found positive mediating effects via cognitive ability and non-cognitive ability. Individuals with high cognitive and non-cognitive abilities are able to accurately diagnose problems and select the optimal coping strategies, thus restoring positive mental health.
In 2013, the Chinese government implemented Rule No. 18, which suspended the directorships of incumbent government officials and precluded those who retired within the past three years from serving as independent directors for listed firms. The surprise implementation of Rule No. 18 triggered a wave of resignations among official independent directors (OIDs). The event provided a unique opportunity to examine the impacts of the political connections of board members on firm performance. We applied a difference-in-difference technique to empirically investigate the effect of OID resignations on firm performance from the perspectives of resource dependence theory and social capital theory. The results indicate that the resignation of OIDs had a significantly negative effect on firm performance, as measured by Tobin’s Q and firm leverage. This also confirmed the importance of independent directors’ political connection on firm performance, as discovered in prior research. However, this influence varied across OIDs’ heterogeneity, external environment and firm ownership. The results indicate that political connections may not be necessary channels for firms to achieve success.
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