Official rotation and corporate innovation: Evidence from the governor rotation

Rotation is a practice whereby officials are regularly moved between equally ranked positions. Focusing on governor rotation, this paper examines the effect of official rotation on corporate innovation in China. First, we find that official rotation significantly promotes corporate innovation, including enterprises’ innovation investment, quantity, and quality. Second, we find that the effect of official rotation on corporate innovation varies because of official and regional heterogeneity. Officials rotating from other provinces significantly stimulate corporate innovation, but officials rotating from the central government have an insignificant influence on corporate innovation. In addition, officials rotating to non-eastern regions significantly enhance corporate innovation, while officials rotating to eastern regions have a negligible impact on corporate innovation. We further examine the driving mechanism behind the effect of official rotation on corporate innovation and find that officials rotating from eastern regions to non-eastern regions can significantly promote corporate innovation, but officials rotating from non-eastern regions to eastern regions do not boost corporate innovation. These findings imply that the different effects of official rotation on corporate innovation are due to the official experience effect. We also find that official rotation can promote corporate innovation through reducing corporate charitable donations and increasing corporate innovation subsidies. In a supplementary analysis, we find that GDP-oriented performance appraisal pressure weakens the effect of official rotation on corporate innovation. The lower the pressure on officials regarding their performance, the more significant the effect of official rotation on corporate innovation. In addition, official rotation can significantly promote the development of the regional economy and improve the GDP growth rate via corporate innovation, which is a micro-level economic growth effect of official rotation. Overall, our findings further verify the economic effect of official rotation and extend our understanding of the influencing factors of corporate innovation from the perspective of the official governance system. Our findings also have clear policy implications for how the government can improve the official governance model to promote corporate innovation during the transition period of the national innovation system.     

Stock pledge,risk of losing control and corporate innovation

This paper investigates the effects of stock pledge by controlling shareholder on corporate's future innovation productivity and the mechanism through which stock pledge affects innovation. We find that both the existence of stock pledge by controlling shareholder and the percentage of shares pledged by controlling shareholder are significantly negatively related to firms' future innovation outputs and quality, and these baseline results are robust to a variety of tests on sample selections, model specifications, and variable definitions. We further adopt several methodologies to address endogeneity concerns and establish a causal relationship between stock pledge by controlling shareholder and innovation. We then provide evidence to show that the impediment effect of stock pledge by controlling shareholder on innovation is possibly due to controlling shareholder's fear of losing corporate control in case of innovation failure. Finally, we find that although stock pledge is a possible channel to relieve a firm's financial constraint, it does not encourage the firm to invest more in innovation.     

The effect of shared auditors in the supply chain on cost stickiness

Do supply chain audits have real effects?We focus on the effect of shared auditors in the supply chain on corporate cost stickiness.When a supplier shares audit...     

Partial Privatization and Firm Performance

Most privatization programs begin with a period of partial privatization in which only non‐controlling shares of firms are sold on the stock market. Since management control is not transferred to private owners it is widely contended that partial privatization has little impact. This perspective ignores the role that the stock market can play in monitoring and rewarding managerial performance even when the government remains the controlling owner. Using data on Indian state‐owned enterprises we find that partial privatization has a positive impact on profitability, productivity, and investment.     

债务结构优化与企业创新——基于企业债券融资视角的研究

本文在我国保持宏观杠杆率基本稳定及实施创新驱动发展战略的现实背景下,从债券融资的视角,探讨债务结构优化对企业创新的影响。研究发现,债券融资与企业创新之间显著正相关,表明债券融资优化企业债务结构、提升企业创新能力的积极作用占据主导地位。进一步研究表明:(1)债券融资能够通过降低整体债务融资成本并延长整体债务期限促进企业创新;(2)债券融资对于银行贷款存在溢出效应,即企业通过债券融资,还能降低银行贷款利率、延长银行贷款期限,进而促进企业创新;(3)产品市场竞争和代理问题会在一定程度上削弱债券融资对企业创新的促进作用;(4)不同类型的债券对企业创新能力的作用存在异质性,债券发行的便利性是其影响企业创新的一个重要因素。     

The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis

This study compares the pre and postprivatization financial and operating performance of 61 companies from 18 countries and 32 industries that experience full or partial privatization through public share offerings during the period 1961 to 1990. Our results document strong performance improvements, achieved surprisingly without sacrificing employment security. Specifically, after being privatized, firms increase real sales, become more profitable, increase their capital investment spending, improve their operating efficiency, and increase their work forces. Furthermore, these companies significantly lower their debt levels and increase dividend payout. Finally, we document significant changes in the size and composition of corporate boards of directors after privatization.     

China׳s secondary privatization: Perspectives from the Split-Share Structure Reform

The Split-Share Structure Reform granted legitimate trading rights to the state-owned shares of listed state-owned enterprises (SOEs), opening up the gate to China?s secondary privatization. The expectation of privatization quickly boosted SOE output, profits, and employment, but did not change their operating efficiency and corporate governance. The improvements to SOE performance are positively correlated to government agents’ privatization-led incentive of increasing state-owned share value. In terms of privatization methodology, the reform adopted a market mechanism that played an effective information discovery role in aligning the interests of the government and public investors.     

Efficiency of French privatizations: a dynamic vision

We interpret privatization in light of corporate governance theory. After replicating some traditional tests, we test our new model on a sample of privatized French firms. We cannot confirm for French privatizations the positive effect on overall static and dynamic efficiency of the firm traditionally attributed to privatizations. In addition, we find that whatever positive value accrues from privatization is affected by the contextual, organizational, governance, and strategic variables that influence the privatization process.     

民营化、融资约束与企业创新——来自中国工业企业的证据

本文研究国有企业民营化对企业创新的影响及其影响机制。利用中国工业企业数据库,以民营化企业为实验组、以国有企业为对照组进行双重差分检验,结果发现,国有企业民营化显著抑制了企业创新,而融资约束是抑制民营化企业创新的重要因素。进一步检验发现,融资约束对民营化企业创新的抑制作用主要存在于金融发展水平较低的地区,而在金融发展水平较高的地区,这种抑制作用并不明显。本文的研究结果从融资约束的角度拓展了民营化影响企业创新的相关研究,且从民营化的角度为金融市场如何影响企业创新提供了新的视角。此外,本文有助于澄清有关民营化的争议,为进一步深化混合所有制改革、加强金融对民营企业的支持以促进民营企业的创新和发展提供理论依据和政策参考。     

会计稳健性、高管社会网络与企业创新-来自中国上市公司的经验证据

以2008-2012年我国沪深非金融类A股上市公司为样本,运用社会网络分析方法,实证检验高管社会网络和会计稳健性分别对企业创新的影响,以及高管社会网络对会计稳健性和企业创新关系的影响.结果发现:高管社会网络中心度和会计稳健性均可以促进企业创新;但高管社会网络中心度削弱了会计稳健性对企业创新的促进作用.     

非高管股权激励与企业创新:公平理论视角

股权激励管理办法允许上市公司通过股权激励计划对部分非高管员工进行股权激励,但设定激励对象等方面的有关规定对企业的影响却鲜有研究关注。本文从公平理论视角分析我国非高管员工股权激励对上市公司创新的影响,并依据中国上市公司股权激励计划与专利数据实证检验了非高管员工股权激励有效性假说与不公平假说。研究发现,总体上我国股权激励计划能够显著促进企业创新,但非激励员工因薪酬不公平而产生的消极行为在一定程度上削弱了股权激励计划的激励效果。具体而言,在国有控股上市公司以及激励与非激励员工收入差距小的上市公司中,非高管股权激励弱化企业创新的影响明显小于其他公司;而在非高管员工覆盖比例较高的公司中,非高管股权激励计划弱化企业创新的影响不存在。因此适当提高员工股权激励覆盖的范围可以减少激励员工与非激励员工之间因激励错配导致的薪酬不公平问题,有助于提升我国上市公司股权激励计划的创新激励效果。     

The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability

Digital technologies have been rapidly changing traditional industries. In the given context, this study reveals the internal influence mechanism of digital transformation on the corporate performance of the manufacturing industry based on the resource-based view theory. We build a theoretical framework incorporating business model innovation and innovation capability as mediator and moderator variables. To evaluate our hypothesis, we conduct an empirical study on 255 Chinese manufacturing enterprises. We classify digital transformation into exploitative and explorative transformations with the ambidexterity theory. The results show that exploitative and explorative digital transformations significantly and positively impact corporate performance, and business model innovation has a significant mediating effect. Innovation capability positively moderates the impact of exploitative and explorative digital transformations on business model innovation and moderates the mediating effect of business model innovation. This paper provides support for promoting the deep integration of the digital economy and the real economy.     

信息披露与国有股权私有化中的盈余管理

国有股权私有化是我国国有企业改革的重要措施。国有股权私有化过程中是否存在影响国有股权转让价格的盈余管理行为,以及如何抑制这种盈余管理,是我国国有企业改革中需要予以回答的重大问题。本文以我国通过控制权转移进行私有化的上市公司为样本,研究了国有股权私有化过程中的盈余管理以及信息披露对盈余管理影响的问题。研究发现,国有企业在国有股权私有化前1年和当年的操控性应计项目显著小于0,而私有化后的第1年显著大于0;及时披露国有股权私有化信息的公司在私有化前的操控性应计项目显著大于滞后披露信息的公司。以上结果表明,国有企业在国有股权私有化前存在降低收益的盈余管理行为,信息及时披露对私有化前的盈余管理有显著的抑制作用。本文的研究结论对规范我国国有企业改制和国有产权转让行为具有重要启示。     

ESG disclosure and technological innovation capabilities of the Chinese listed companies

The main objective of this study is to explore how ESG disclosure effectively promotes technological innovation capabilities (TIC) and also in different industries (green vs. high-tech). Further, examine the role of financing constraint (FC) in the relationship between the ESG disclosure and TIC. We employed the panel regression model, Causal step approach, Bootstrap mediation effect test, 2SLS, and GMM model. We used Bloomberg’s ESG disclosure score of China’s A-share listed companies from 2011 to 2019 (1); we found that the ESG disclosure has a significant relationship with corporate innovation indicators (OTI, STI, NSTI) and play a significant role in promoting TIC at different levels of corporate innovation (2) ESG disclosure of non-green (high-tech) industry is more effectively promote TIC than green (non-high tech) industry (3) ESG disclosure can promote corporate innovation by reducing the level of corporate financing constraints, and FC has a partial intermediary role between ESG and TIC.     

How mixed ownership affects decision making in turbulent times: Evidence from the digital revolution in telecommunications

This study examines how the ownership structure of corporations shapes their responses to discontinuous technological change. We analyze whether mixed ownership, a situation where following privatization a company's shares are held both privately and by the government, is associated with less innovation in response to discontinuous technological change. We argue that mixed ownership is associated with governance conflicts that affect a company's ability to respond to the challenges posed by discontinuous technological change. Our empirical analysis uses data on European telecommunications operators for the period 2000–2016 when they faced sweeping technological change due to the advent of Internet-based communication services. Our baseline result suggests that operators with mixed ownership file around 70% fewer patents in relevant digital technologies than companies that are fully private or where the government owns a majority of shares. We find that mixed ownership also affects negatively the acquisition of externally developed technology.     

Real effects of financial reporting and disclosure on innovation

This paper reviews the literature on the real effects of financial reporting and disclosure on corporate innovation, highlighting both the possible channels of influence and the potential challenges that researchers face when attributing causal effects. We discuss the concept of innovation, emphasising the specific characteristics that make investments in innovation difficult to report. We then provide a review of the nascent work relating disclosure to innovation, which we organise around three channels: financing, compensation and learning. Finally, we discuss recent efforts aimed at increasing the quality of corporate disclosures, including disclosures of firms’ innovative activities. Throughout the paper, we highlight the trade-offs of disclosure (reduced information asymmetry and increased proprietary costs), which are particularly exacerbated in the context of corporate innovation.     

卖空与创新:A股公司融券试点的证据

本文依托中国A股市场2010年开始实施的融券试点,在通过多时点双重差分和倾向得分匹配等计量方法控制内生性的基础上,实证检验了卖空对上市公司创新行为的促进作用.结果 表明:(1)加入融券标的后,卖空公司的创新数量和创新质量都有显著提高;(2)对于金融市场欠发达、治理水平较差的公司,这种作用更明显;(3)在使用融券余额作为卖空势力的测度并用ETF基金持股比例作为工具变量进一步控制内生性以后,以上结论仍然成立.卖空有助于降低创新企业的信息不对称性和加强对经理人的薪酬激励,进而促进了企业的创新.因此,取消卖空限制将有助于中国企业的创新和资本市场的健康稳定发展.     

Does insiders share pledging stifle innovation? Evidence from China

We examine the relation between insiders share pledging activities for personal loans and firm innovation. Firstly, we find a negative effect of both the existence of pledging and the intensity of pledging activities on firm innovation, measured by R&D and patent application. Pledging by insiders with decision rights is associated with a 4.6% decline in R&D activities and 0.5% decline in patent applications, respectively, which accounts for 4.0% and 10.6% of the mean of each variable. This result holds using a propensity-score matched sample. In addition, we instrument pledging activities by financing constraints faced by other firms controlled by the same controlling insiders who pledge shares. IV estimation yield similar results. Secondly, we find share pledge activities have more pronounced effect on firm innovations when firms are located in areas with strong property rights protection, when firms are non-SOEs, or when pledging insiders serve on corporate boards. Lastly, we also find a negative effect of share pledging of other firms with common shareholders on firm innovations of interest. Overall, our findings suggest that pledging shares by insiders stifle firm innovation because share pledging reduce insiders' preference for risk taking.     

Stock market liberalization and innovation

We investigate the effect of stock market liberalization on technological innovation. Using a sample of 20 economies that experience stock market liberalization, we find that these economies exhibit a higher level of innovation output after liberalization and that this effect is disproportionately stronger in more innovative industries. The relaxation of financial constraints, enhanced risk sharing between domestic and foreign investors, and improved corporate governance are three plausible channels that allow stock market liberalization to promote innovation. Finally, we show that technological innovation is a mechanism through which stock market liberalization affects productivity growth and therefore economic growth. Our paper provides new insights into the real effects of stock market liberalization on productivity growth and the economy.     

银行业竞争、融资约束与企业创新——中国工业企业的经验证据

本文将1998-2007年中国工业企业数据、专利申请数据与银监会公布的金融许可证数据相匹配,考察银行业竞争影响企业创新的内在机制。结果发现,竞争的加剧通过缓解企业面临的融资约束,从而提升其创新能力。在弱化内生性问题和一系列稳健性检验后,上述结果仍然稳健。进一步研究发现,外部融资依赖度较高的企业,中小、民营企业,以及位于市场化水平高和法治环境好的地区的企业,银行业竞争通过缓解融资约束促进其创新的效应更加明显。此外,本文还发现股份制银行和城商行的竞争能更好地推动企业创新。因此,建立健全多层次、多元化的金融体系,能有效缓解企业创新的融资困境,激发创新活力。