Using Chinese listed companies as research setting, this paper constructs a measure of corporate competing culture through textual analysis on firms' management discussion and (MD&A) disclosures, examines the impact environmental investment. The results show that has significant positive investment, remain robust to battery robustness tests. Moreover, mediating indicates promotes investment enhancing internal control quality. Furthermore, heterogeneity is more pronounced in firms with larger...

This study investigates the influence of bank interventions following breaches debt covenants on workplace safety. Using a regression discontinuity design, we find robust evidence indicating substantial decrease in employee injuries after covenant violations. Our channel analysis reveals that impact is more pronounced when banks perform well ESG-related relationships and take less risk. Furthermore, stronger have considerable control over firms employees strong bargaining power. findings...

Using the context of financial reform and development non-state sector in China past decade, we examine roles that quality information disclosure property rights play allocation different types bank credit. We find foreign banks policy exercise "financial discrimination," local commercial banks, large state-owned national joint-stock city rural not only discrimination but also provide significant support" to non-state-owned enterprises by providing more lending opportunities larger loans....

In this paper, we empirically examine whether financial statement comparability mitigates corporate fraud in China. Using the FSC measure proposed by De Franco, Kothari and Verdi (2011), find that firms with greater are less likely to commit frauds, either accounting – or non-accounting-related frauds. Further tests confirm regulators can more quickly detect fraudulent activities of accused if their statements comparable those same-industry peers. Cross-sectional analyses show negative...

Using data from Chinese A-share listed firms 2015 to 2022, we employ a difference-in-differences model empirically examine the impact of bankruptcy regimes, marked by establishment courts, on firms’ total factor productivity (TFP). The results show significant decline in TFP among regions following courts. This finding remains valid after series robustness tests. Mechanism tests reveal that establishing courts increases risk aversion incentives endowing creditors with excessive rights....

Using a sample of Chinese mutual funds from 2004 to 2019, we find that investors direct flows into (out of) with salient upsides (downsides), controlling for set known determinants fund flows. This effect is robust alternative measures key variables and more pronounced larger individual ownership. not explained by individuals’ attention-driven purchases attention-grabbing funds, funds’ lottery-like features, or the characteristics underlying stocks. The salience theory, which argues extreme...

Using the unique litigation data disclosed by Chinese listed companies, we examine impact of bankruptcy judicial system reform on corporate financial risks. The results show that after system, risk being sued in disputes is significantly reduced. Further research shows when uncertainty economic policy stronger and market competition faced corporations more intense, effect reducing better. We also find forces to implement conservative business strategies.