Search Results (120)

This study examines whether China’s high-tech enterprise identification policy promotes corporate sustainable innovation. Using panel data from Chinese listed firms on the Shanghai and Shenzhen stock exchanges between 2008 and 2022, we adopt a time-varying difference-in-differences (DID) model to evaluate the policy’s effectiveness and explore its underlying mechanisms. The results reveal that this certification policy significantly facilitates green innovation, and the findings remain robust across various checks, including alternative measurements, placebo tests, propensity score matching DID (PSM-DID), and the exclusion of digital transformation trend and confounding macro-level policies. Mechanism analysis shows that the policy influences green innovation by alleviating financing constraints, increasing access to government subsidies, facilitating the agglomeration of scientific and technological talent, and encouraging greater R&D investment. Heterogeneity analysis further indicates that the policy effect is more pronounced among non-state-owned enterprises, small-scale firms, capital-intensive businesses, those located in high-institutional-quality regions, and firms in China’s eastern provinces. Moreover, the positive impact is strongest for growth-stage firms. The policy has also been found to improve green innovation efficiency. These findings offer empirical insights for optimizing selective industrial policies to enhance sustainable innovation and support China’s dual-carbon goals. Full article

Environmental innovation represents a pivotal pathway toward achieving energy efficiency improvements, carbon footprint reduction, and ecological sustainability enhancement. The research investigates Chinese manufacturing enterprises listed on domestic stock exchanges throughout 2011–2023. The analytical framework utilizes count-based regression methodologies to explore how R&D investment intensity influences eco-innovation capabilities. Results demonstrate curvilinear associations linking R&D expenditure levels with both substantive and strategic environmental innovation achievements across industrial firms. This outcome successfully passed the turning-point test. Environmental oversight and financial incentives produce divergent moderating influences on innovation trajectories. Regulatory frameworks generate restrictive impacts through narrowing optimal investment ranges and dampening peak innovation outputs, whereas fiscal support mechanisms foster expansive effects via broadening resource availability and amplifying achievement levels. Cross-sectional examination uncovers substantial variations among ownership categories and geographical locations. State-owned enterprises demonstrate significantly lower optimal R&D intensity thresholds. Private firms require substantially elevated thresholds for optimal performance. Inland territories manifest unbalanced innovation dynamics. Coastal areas exhibit symmetric innovation patterns. The research enriches empirical knowledge in eco-innovation studies while offering context-specific strategic insights. The findings establish theoretical foundations and practical guidance for policy architects designing integrated environmental management systems that enhance innovation capabilities. Full article

Government support has long been viewed as a key driver of sustainable transformation and green technological progress. However, the underlying mechanisms (“how”) through which preferential policies influence green innovation, as well as the contextual conditions (“when”) that shape their effectiveness, remain insufficiently understood. Drawing on resource dependence theory, this study develops a dual-mediation framework to investigate how preferential tax policies promote both the quantity and quality of green innovation—by enhancing R&D investment as an internal mechanism and alleviating financing constraints as an external mechanism. These effects are especially salient among non-state-owned enterprises, firms in resource-constrained industries, and those situated in environmentally challenged regions—contexts that entail higher dependence on external support for sustainable development. Leveraging China’s 2017 R&D tax reduction policy as a quasi-natural experiment, this study uses a sample of high-tech small- and medium-sized enterprises (SMEs) to test the hypotheses. The findings provide robust evidence on how preferential policies contribute to corporate sustainability through green innovation and identify the conditions under which policy tools are most effective. This research offers important implications for designing targeted, sustainability-oriented innovation policies that support SMEs in transitioning toward more sustainable practices. Full article

This paper takes the five northwestern provinces of China as research objects to explore the intrinsic mechanisms of the digital economy, industrial structure upgrading, and regional green development through empirical analysis. This study reveals that the digital economy plays an indispensable role in the green and high-quality development of the five northwestern provinces. (1) This study investigates the influence of the digital economy on green high-quality development in China’s five northwestern provinces, focusing on the mediating effect of industrial structure upgrading. Using panel data and multiple regression analysis, it demonstrates that the digital economy significantly promotes green development, even when controlling for infrastructure, human capital, and openness. (2) Industrial structure upgrading serves as a critical mediator, transmitting part of this positive effect. Heterogeneity analysis shows that the digital economy’s impact is more pronounced in high-GDP regions, while low-GDP regions remain dependent on conventional drivers like infrastructure. Additionally, human capital and tax burdens exhibit positive effects on green development, whereas R&D intensity has a negligible short-term influence. (3) These findings highlight the importance of region-specific policies integrating digital infrastructure, industrial upgrading, and human capital investment to foster sustainable regional development. This study provides a theoretical basis for deepening digital economic development and promoting green industrial upgrading in northwest China. It suggests that policymakers should account for regional economic disparities and coordinate the deployment of digital infrastructure, industrial transformation, and human capital investment to achieve long-term, coordinated green and high-quality development in the region. Full article

Debt financing is important for financing major investments in the biopharmaceutical industry. Debt financing allows companies to raise funds without giving up ownership or control through indenture and covenants of the company. In this study, I analyze the effects of debt financing decisions on profitability in the biopharmaceutical industry. I find that short-term debt, long-term debt, and total debt negatively impact the return on assets (ROA) as a firm’s profitability measure. A comparison is made between American and European biopharmaceutical firms, and the result shows the negative effects of short-term and long-term debt on profitability persist more for US biopharmaceutical firms than European firms. Short-term and long-term debt both impact profitability negatively with 10-year lagged R&D intensity and financial distress. Short-term debt’s negative impact is stronger post-COVID-19, indicating increased financial strain. Long-term debt consistently affects profitability negatively, with relatively stable effects during the pre- and post-COVID-19 pandemic. Full article

The 83rd session of the IMO Maritime Environment Protection Committee (MEPC 83) approved a global pricing mechanism for the shipping industry, with formal adoption scheduled for October 2025. Proposed mechanisms include the International Maritime Sustainable Fuels and Fund (IMSF&F) and a combined approach integrating GHG Fuel Standards with Universal GHG Contributions (GFS&UGC). This study developed a model based on the marginal abatement cost curve (MACC) methodology to assess the cost-effectiveness of alternative fuels under both mechanisms. Sensitivity analyses evaluated the impacts of fuel prices, carbon prices, and the GHG Fuel Intensity (GFI) indicator on MAC. Results indicate that implementing the GFS&UGC mechanism yields higher net present values (NPVs) and lower MACs compared to IMSF&F. Introducing universal GHG contributions promotes a comparatively fairer transition to sustainable shipping fuels. Investments in zero- or near-zero-fueled (ZNZ) ships are unlikely to be recouped by 2050 unless carbon prices rise sufficiently to boost revenues. Bio-Methanol and bio-diesel emerged as the most cost-competitive ZNZ options in the long term, while e-Methanol’s poor competitiveness stems from its extremely high price. Both pooling costs and universal GHG levies significantly reduce LNG’s economic viability over the study period. MACs demonstrated greater sensitivity to fuel prices (P_fuel) than to carbon prices (P_carbon) or GFI within this study’s parameterization scope, particularly under GFS&UGC. Ratios of P_carbon%/P_fuel% in equivalent sensitivity scenarios were quantified to determine relative price importance. This work provides insights into fuel selection for shipping companies and supports policymakers in designing effective GHG pricing mechanisms. Full article

The development of agriculture with special characteristics has become a global trend, especially in highland areas with unique local advantages. Plateau-characteristic agriculture plays an important role in ensuring food security, maintaining ecological balance, and promoting sustainable development in plateau areas. However, because many plateau areas are ecologically fragile and have limited environmental recovery capacity, failure to manage them properly can lead to irreversible environmental degradation and affect socioeconomic stability. Therefore, ensuring plateau-characteristic agroecological security (PCAES) is particularly important and warrants in-depth investigation. However, existing research has yet to systematically identify the key factors affecting PCAES. To fill this gap, this study analyzes 41 factors affecting PCAES at the macro, meso, and micro levels. Then, a DTP (driver–pressure–state–impact–response–management (DPSIRM), technology–environment–resources–economy (TERE), and production–operation–service (POS), collectively referred to as DTP) hierarchy is established to analyze the factors from different perspectives. On this basis, we use a hierarchical decision-making trial and evaluation laboratory (DEMATEL) method to identify nine key factors that influence PCAES, including biodiversity indices, intensity of investment in pollution control, a comprehensive mechanization rate of major crops, and intensity of agricultural R&D investment, among others. Finally, based on the interrelationships among these key factors, we put forward recommendations for PCAES management, taking into account domestic and international experience and the actual situation of the plateau region. Clarifying the factors affecting PCAES will help local governments undertake targeted risk management and scientific decision-making and promote the sustainable development of local economies. Full article

Research on the EU’s Carbon Border Adjustment Mechanism (CBAM) has predominantly examined its implications for climate governance and export trade yet overlooked how enterprises adapt their foreign investment strategies. Using panel data from Chinese listed companies between 2011 and 2022, this study employs the CBAM as a quasi-natural experiment and applies a difference-in-differences (DID) model for analysis. Our findings indicate that the CBAM has a significant positive impact on outward greenfield investments, as robustly validated through a series of rigorous robustness checks. Mechanism analysis reveals two operational channels: trade restructuring effect (reduced export shares) and innovation-driven demand effect (enhanced R&D intensity). Heterogeneity tests further indicate more substantial CBAM responsiveness among eastern coastal firms, non-state-owned enterprises, and those pursuing horizontal production-oriented expansions. This study contributes to the literature on CBAM’s effects and offers practical recommendations for enterprises to mitigate CBAM’s impact via greenfield investments. Full article

With the increasing focus on R&D (research and development) subsidies of various researchers, there is growing interest in how these subsidies affect radical innovation. Based on the limited attention paid to this area in the existing literature, this paper investigates the impact of R&D subsidies on radical innovation. Using a sample of Chinese listed firms, we investigate how innovation orientation and competitive intensity moderate this relationship. By incorporating concepts from Path Dependence Theory, we propose that R&D subsidies alter firms’ assessment of the value and risk associated with investments in radical innovation, influencing their innovation strategies. Subsidies may increase the attractiveness of incremental innovations, which have lower volatility and faster returns, compared to radical innovations, which inherently involve higher risk and uncertainty. Based on the results of our analysis, we find that R&D subsidies negatively affect radical innovation, but firms with a stronger innovation orientation (which reflects their greater tolerance for risk) are less negatively affected. Conversely, an increase in the intensity of competition exacerbates the negative impact of subsidies because it induces firms to make safer incremental investments. The robustness analysis confirms that the main effects remain significant even when using alternative proxies for innovation. Our study sheds light on the mechanisms affecting the effectiveness of subsidies from the perspective of finance theory and highlights the conditions under which subsidies may unintentionally discourage radical innovation. Full article

Prior studies have shown mixed findings on the role of financial slack. This study examines how environmental factors such as munificence, dynamism, and complexity moderate the relationship between financial slack and innovation activity. Using data from Compustat and the Center for Research in Security Prices (CRSP) database on 578 computer-processing firms in innovation-intensive industries in the United States, our results reaffirm that financial slack is a strategic asset that enhances R&D investment. Further, we find that the positive consequences of financially abundant firms pursuing innovation are attenuated in munificent environments where firms increasingly rely on external resources. Similarly, in dynamic environments, unpredictable market changes divert slack resources from long-term R&D investments, further weakening the effect. However, there is no significant difference in complex environments. Our study contributes to the existing literature by integrating different environments and highlighting the importance of balancing internal resources with external environments in shaping innovation strategies. For managers, these findings provide practical guidance for resource allocation strategies to effectively support innovation in varying external environments. Full article

We investigate the impact of green credit policies on pollution-intensive enterprises from a new perspective. Empirically, we utilize the issuance of China’s green credit policy in 2012 to construct a quasi-natural experiment. The results show that green credit policies can significantly reduce the market value of pollution-intensive enterprises. Furthermore, our analysis of profitability and R&D investment shows that the decline in market value is driven by real financial deterioration rather than short-term investor reactions. The results indicate that green credit policies can effectively suppress pollution-intensive enterprises. Additionally, the results also suggest that China’s stock market reasonably prices environmental risks. Full article

The economic literature documents that the investment rate in intangible assets, including intellectual property (IP), has far outpaced that of tangible assets for several decades. In this context, our research delves into the impact of self-created intangible assets on the auditor’s risk assessment. We present compelling evidence that, on average, research and development (R&D) knowledge capital is associated with higher audit fees. Using patent-based metrics as the proxies for innovation outcomes, we reveal that the number of patents (quantity), patent citations (quality-adjusted quantity), and patent technology classes (scope) all positively correlate with audit fees. Additional analyses show that innovation efficiency is negatively associated with audit fees. Furthermore, firms with a higher intensity of knowledge capital are more likely to receive going concern opinions than those with significant innovation outcomes. These findings provide valuable insights into the complex relationship between intangible assets and audit risk assessment. Full article

To more intuitively demonstrate the locational distribution of spatial agglomeration of HQD (high-quality development) in China’s coal cities, this study uses the entropy value method, standard deviation ellipse, and geographic detector to investigate the law of dynamic evolution and driving factors of HQD in China’s coal cities from 2011 to 2020. The findings are as follows: (1) The HQD level of China’s coal cities is experiencing a positive trajectory, with the highest level of development in the east, followed by the regions located in the center and west of the country, and relatively low in the northeast. Throughout the “Twelfth Five-Year Plan” period, Suzhou made the greatest progress, while Fuxin had the greatest decline. Throughout the “13th Five-Year Plan” period, Xingtai and Handan made the greatest progress, while Qitaihe had the greatest decline. (2) The HQD level of China’s coal cities as a whole shows a northeast–southwest direction, the center of gravity shifts southward, indicating a concentration pattern. The eastern and central areas are oriented in a northwest–southeast direction; the center of gravity in the east shifts to the northwest, and the center of gravity in the middle shifts to the southeast; and both regions have a higher level of HQD in the east–west direction. The western and northeastern regions are in a northeast–southwest direction, with the center of gravity moving to the northeast: the western region shows a tendency toward diffusion, and the northeastern region shows an agglomeration trend. (3) Patent authorization per 10,000 people, foreign trade dependence, R&D investment intensity, and GDP per capita were important drivers for the HQD of China’s coal cities; The degree of government intervention is the best interaction factor, and the degree of opening to the outside world and the forest coverage rate are the best interaction objects. Full article

This study employs spatial econometric techniques to examine the heterogeneous effects of foreign direct investment (FDI) on industrialization across China’s four major regions—East, Central, West, and Northeast—using panel data from 31 provinces (1998–2016). Our findings reveal significant regional variations: FDI negatively impacts industrialization in the developed East, positively influences the less developed Northeast, and shows no significant effect in the Central and Western regions. To achieve balanced industrialization, policymakers should adopt spatially differentiated strategies. In the East, the focus should be on incentivizing high-value FDI in R&D and green technologies, while the Northeast could benefit from stronger economic partnerships within the Belt and Road Initiative (BRI). For the Central and Western regions, prioritizing infrastructure investments linked to the BRI and fostering cross-regional innovation corridors could attract labor-intensive FDI and promote technology diffusion, addressing regional disparities. The study’s robust spatial analysis offers valuable guidance for policymakers in crafting region-specific strategies to leverage FDI for balanced economic growth. Full article

Policy synergy, the evidence-based coordination of public policies, can aid in more rapidly achieving air pollutant and carbon dioxide (CO₂) emission reduction targets. Using logarithmic mean Divisia index (LMDI) decomposition, coupling coordination degree (CCD), and geographically and temporally weighted regression (GTWR) models, we analyzed the emission characteristics, drivers, and reduction pathways of residential air pollution across 30 Chinese provinces from 2001 to 2020. The southern provinces produced more air pollution than the northern provinces, with the gap widening after 2015. In the residential sector, energy emission factors (LMDI decomposition result, 686,681.9) and population size (14,331) had greater impacts on air pollutant emissions than the energy structure, energy intensity, synergies, or GDP per capita. The GTWR analysis of the CCD mechanism indicated that hydroelectricity and urbanization enhanced coupling coordination in the southeast. Meanwhile, in the west, coupling coordination was improved by R&D investment, government spending on industrial pollution control, electricity consumption, per capita cropland, temperature, and urbanization. This analysis provides a valuable reference for optimizing emission reduction strategies. Full article