Using the green-performance-evaluation policy boosting green subsidies for heavy polluting enterprises as a quasi-natural experiment, we employ the difference-in-differences (DID) method to confirm the substantial ownership impact on the relation between green subsidies and corporate environmental investment. Our findings indicate that state-owned involved enterprises significantly increase their environmental investment following the receipt of green subsidies, whereas non-state-owned involved enterprises temporarily reduce their environmental investment after receiving green subsidies. Mechanism analysis reveals that these differences stem from the inherent alignment between the objectives of state-owned enterprises and the government.
{"title":"Does ownership matter in driving green subsidies effects? A quasi natural experiment in China","authors":"Kebin Deng , Zhong Ding , Liuyang Ren , Ziyun Xiang","doi":"10.1016/j.eap.2025.01.015","DOIUrl":"10.1016/j.eap.2025.01.015","url":null,"abstract":"<div><div>Using the green-performance-evaluation policy boosting green subsidies for heavy polluting enterprises as a quasi-natural experiment, we employ the difference-in-differences (DID) method to confirm the substantial ownership impact on the relation between green subsidies and corporate environmental investment. Our findings indicate that state-owned involved enterprises significantly increase their environmental investment following the receipt of green subsidies, whereas non-state-owned involved enterprises temporarily reduce their environmental investment after receiving green subsidies. Mechanism analysis reveals that these differences stem from the inherent alignment between the objectives of state-owned enterprises and the government.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1079-1104"},"PeriodicalIF":7.9,"publicationDate":"2025-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132061","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-09DOI: 10.1016/j.eap.2025.01.014
Fanjie Fu , Shujie Yao , Jing Fang , Fan Zhang , Chuan Lin
This study investigates the relationship between CEOs' hometown connections with suppliers and analyst earnings forecast optimism. We put forward two hypotheses: CEOs' hometown connections increase the optimism bias of analysts and analysts take the initiative to lower their optimistic earnings forecasts in response to CEOs' hometown connections. Using the hand-collected data of CEOs' hometown connections in Chinese A-share listed companies from 2009 to 2020, the empirical results suggest that CEOs' hometown connections with suppliers are negatively associated with analyst optimism bias, and the finding holds up in the subsequent robustness tests. The hometown connections, as an informal institution, not only alleviate CEO moral hazard but also provide information advantage. This "hometown effect" is more pronounced for firms with lower-quality of information disclosure, lower transparency, lower-quality auditing, higher agency costs, and firms in provinces with weaker marketization. In general, this study demonstrates the importance of CEOs' hometown connections in analyst optimism bias, and it enriches and expands research on the determinant factors of analyst optimism.
{"title":"CEOs' hometown connections and optimism in analyst earnings forecasts: Evidence from China","authors":"Fanjie Fu , Shujie Yao , Jing Fang , Fan Zhang , Chuan Lin","doi":"10.1016/j.eap.2025.01.014","DOIUrl":"10.1016/j.eap.2025.01.014","url":null,"abstract":"<div><div>This study investigates the relationship between CEOs' hometown connections with suppliers and analyst earnings forecast optimism. We put forward two hypotheses: CEOs' hometown connections increase the optimism bias of analysts and analysts take the initiative to lower their optimistic earnings forecasts in response to CEOs' hometown connections. Using the hand-collected data of CEOs' hometown connections in Chinese A-share listed companies from 2009 to 2020, the empirical results suggest that CEOs' hometown connections with suppliers are negatively associated with analyst optimism bias, and the finding holds up in the subsequent robustness tests. The hometown connections, as an informal institution, not only alleviate CEO moral hazard but also provide information advantage. This \"hometown effect\" is more pronounced for firms with lower-quality of information disclosure, lower transparency, lower-quality auditing, higher agency costs, and firms in provinces with weaker marketization. In general, this study demonstrates the importance of CEOs' hometown connections in analyst optimism bias, and it enriches and expands research on the determinant factors of analyst optimism.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1031-1052"},"PeriodicalIF":7.9,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132062","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-09DOI: 10.1016/j.eap.2025.01.011
Marko Raseta , Andrew G. Ross , Stefan Vögele
Countries are increasingly committing to achieving net-zero carbon emissions while addressing energy security concerns heightened Russia's war of aggression against Ukraine. A key challenge lies in the long-term nature of these goals, which often conflict with shorter political cycles, necessitating consistent political commitment to transform energy systems and secure public support. Existing research frequently overlooks short-term impacts, focusing instead on long-term effects. However, an analysis centered on the short term can uncover immediate challenges, such as ensuring the security of energy supply, identifying potential bottlenecks and barriers that might hinder the timely implementation of policy interventions, and highlighting immediate benefits, such as job creation from renewable energy investments. These short-term considerations are crucial for fostering public support and facilitating a timely transition toward a sustainable energy future. This paper examines the short-term macroeconomic impacts of energy system transformations by utilizing a dynamic disequilibrium Input-Output model linked to an energy system optimization model. The results indicate potential dividends for both the environment and the economy, along with enhanced energy security. The analysis underscores important policy considerations, including potential crowding-out effects resulting from constrained labor markets and supply chains—elements that are often neglected but are crucial for achieving timely energy security and policy objectives. Given the current economic climate, influenced by the recovery from the COVID-19 pandemic and the ongoing Russo-Ukrainian war, it is essential to take these potentially obstructive factors into account when planning and implementing energy, economic, and environmental policies.
{"title":"Macro-level implications of the energy system transition to net-zero carbon emissions: Identifying quick wins amid short-term constraints","authors":"Marko Raseta , Andrew G. Ross , Stefan Vögele","doi":"10.1016/j.eap.2025.01.011","DOIUrl":"10.1016/j.eap.2025.01.011","url":null,"abstract":"<div><div>Countries are increasingly committing to achieving net-zero carbon emissions while addressing energy security concerns heightened Russia's war of aggression against Ukraine. A key challenge lies in the long-term nature of these goals, which often conflict with shorter political cycles, necessitating consistent political commitment to transform energy systems and secure public support. Existing research frequently overlooks short-term impacts, focusing instead on long-term effects. However, an analysis centered on the short term can uncover immediate challenges, such as ensuring the security of energy supply, identifying potential bottlenecks and barriers that might hinder the timely implementation of policy interventions, and highlighting immediate benefits, such as job creation from renewable energy investments. These short-term considerations are crucial for fostering public support and facilitating a timely transition toward a sustainable energy future. This paper examines the short-term macroeconomic impacts of energy system transformations by utilizing a dynamic disequilibrium Input-Output model linked to an energy system optimization model. The results indicate potential dividends for both the environment and the economy, along with enhanced energy security. The analysis underscores important policy considerations, including potential crowding-out effects resulting from constrained labor markets and supply chains—elements that are often neglected but are crucial for achieving timely energy security and policy objectives. Given the current economic climate, influenced by the recovery from the COVID-19 pandemic and the ongoing Russo-Ukrainian war, it is essential to take these potentially obstructive factors into account when planning and implementing energy, economic, and environmental policies.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1065-1078"},"PeriodicalIF":7.9,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-09DOI: 10.1016/j.eap.2025.01.013
Edina Berlinger , Judit Lilla Keresztúri , Ágnes Lublóy
To formalize the monitoring role of the media in corporate finance, we propose a new model of corporate catastrophic risk combining two disciplining forces: corporate self-regulation and media pressure. We assume that optimizing firms have a strong interest in hiding large operational loss events to avoid reputational losses. When a loss is revealed, the operation is immediately restored to its equilibrium, due to higher media attention. The model explains why public losses depend heavily on media attention but seem to be unrelated to the quality of internal governance. Internal governance has high impact on the hidden part of losses. Using the SAS Global Oprisk database, we test the model predictions for the period of 2011–2022 covering 4,547 loss events attributed to firms in the MSCI World index. The results of the empirical analysis are consistent with the theoretical model: higher media attention increases public losses but decreases total (the sum of public and hidden) losses in terms of both frequency and severity. We also find evidence that it may be easier to hide the actual size of large corporate losses than the occurrence of the loss event itself, especially within the financial sector. Promoting press freedom and market liquidity, prerequisites for media and investor attention, can be highly effective policies for improving corporate governance.
{"title":"Self-regulation, media pressure, and corporate catastrophes","authors":"Edina Berlinger , Judit Lilla Keresztúri , Ágnes Lublóy","doi":"10.1016/j.eap.2025.01.013","DOIUrl":"10.1016/j.eap.2025.01.013","url":null,"abstract":"<div><div>To formalize the monitoring role of the media in corporate finance, we propose a new model of corporate catastrophic risk combining two disciplining forces: corporate self-regulation and media pressure. We assume that optimizing firms have a strong interest in hiding large operational loss events to avoid reputational losses. When a loss is revealed, the operation is immediately restored to its equilibrium, due to higher media attention. The model explains why public losses depend heavily on media attention but seem to be unrelated to the quality of internal governance. Internal governance has high impact on the hidden part of losses. Using the SAS Global Oprisk database, we test the model predictions for the period of 2011–2022 covering 4,547 loss events attributed to firms in the MSCI World index. The results of the empirical analysis are consistent with the theoretical model: higher media attention increases public losses but decreases total (the sum of public and hidden) losses in terms of both frequency and severity. We also find evidence that it may be easier to hide the actual size of large corporate losses than the occurrence of the loss event itself, especially within the financial sector. Promoting press freedom and market liquidity, prerequisites for media and investor attention, can be highly effective policies for improving corporate governance.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1337-1356"},"PeriodicalIF":7.9,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-08DOI: 10.1016/j.eap.2025.01.010
Lisha Jiang , Wei Zhou , Wu Hualiang , Wei Deng
The performance of enterprises in environmental, social, and corporate governance (ESG) reflects the capacity for sustainable development, and the capacity for sustainable development is affected by the operating environment they face. Based on the supply and demand of ESG responsibility fulfillment resources, this study explores the impact of business environment uncertainty (including objective environmental uncertainty and environmental uncertainty perceived by enterprise management) on ESG performance and reveals the impact path of A-share listed companies in Shanghai and Shenzhen from 2009 to 2022. Results show that the objective environmental uncertainty and the environmental uncertainty perceived by enterprise management can considerably inhibit the ESG performance of enterprises. Compared with the environmental uncertainty perceived by the management, the objective environmental uncertainty has a more remarkable inhibitory effect on the ESG performance of enterprises. The mechanism analysis shows that uncertainty avoidance of financial intermediaries is the main path through which objective environmental uncertainty affects the ESG performance of enterprises, while uncertainty avoidance of enterprises is the main path through which environmental uncertainty perceived by management affects the ESG performance of enterprises. Heterogeneity analysis shows that the issuance of government environmental protection subsidies and the improvement of enterprise operating efficiency can considerably alleviate the inhibitory effect of objective environmental uncertainty on enterprise ESG performance, while government tax incentives, the improvement of enterprises' financial flexibility, and the improvement of strategic risk bearing ability can considerably alleviate the inhibitory effect of management's perceived environmental uncertainty on enterprise ESG performance. Optimizing the regional business environment can simultaneously alleviate the inhibition of the two environmental uncertainties on the ESG performance of enterprises. Based on the research findings, this study proposes policy suggestions and coping strategies to improve ESG performance under business environment uncertainty.
{"title":"Impact of business environment uncertainty on ESG performance from the perspective of resource supply and demand based on ESG performance","authors":"Lisha Jiang , Wei Zhou , Wu Hualiang , Wei Deng","doi":"10.1016/j.eap.2025.01.010","DOIUrl":"10.1016/j.eap.2025.01.010","url":null,"abstract":"<div><div>The performance of enterprises in environmental, social, and corporate governance (ESG) reflects the capacity for sustainable development, and the capacity for sustainable development is affected by the operating environment they face. Based on the supply and demand of ESG responsibility fulfillment resources, this study explores the impact of business environment uncertainty (including objective environmental uncertainty and environmental uncertainty perceived by enterprise management) on ESG performance and reveals the impact path of A-share listed companies in Shanghai and Shenzhen from 2009 to 2022. Results show that the objective environmental uncertainty and the environmental uncertainty perceived by enterprise management can considerably inhibit the ESG performance of enterprises. Compared with the environmental uncertainty perceived by the management, the objective environmental uncertainty has a more remarkable inhibitory effect on the ESG performance of enterprises. The mechanism analysis shows that uncertainty avoidance of financial intermediaries is the main path through which objective environmental uncertainty affects the ESG performance of enterprises, while uncertainty avoidance of enterprises is the main path through which environmental uncertainty perceived by management affects the ESG performance of enterprises. Heterogeneity analysis shows that the issuance of government environmental protection subsidies and the improvement of enterprise operating efficiency can considerably alleviate the inhibitory effect of objective environmental uncertainty on enterprise ESG performance, while government tax incentives, the improvement of enterprises' financial flexibility, and the improvement of strategic risk bearing ability can considerably alleviate the inhibitory effect of management's perceived environmental uncertainty on enterprise ESG performance. Optimizing the regional business environment can simultaneously alleviate the inhibition of the two environmental uncertainties on the ESG performance of enterprises. Based on the research findings, this study proposes policy suggestions and coping strategies to improve ESG performance under business environment uncertainty.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1012-1030"},"PeriodicalIF":7.9,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132015","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-08DOI: 10.1016/j.eap.2025.01.012
Zhenhua Zhang , Chao Hua , Malin Song , Marshall S. Jiang , Jianjun Miao , Xue-Li Chen
River basin cities often face significant conflicts between human activities and the environment. The Yellow River Basin, known for its long-standing energy industry, is one of China's key focus areas for developing new quality productive forces and promoting sustainable economic development (SED). This study employs a grey-weighted Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) to analyze panel data from 99 cities in the Yellow River Basin (YRB) from 2006 to 2019, evaluating the region's SED. Spatial econometric models are used to identify influencing factors. The results indicate that SED in the YRB exhibits strong positive spatial autocorrelation. Financial development has an N-shaped curve effect on SED, with its influence extending to surrounding areas. Human capital and foreign direct investment positively impact SED, while informatization inhibits it. Energy consumption efficiency significantly promotes SED. The impacts of all factors on SED are more pronounced in regions with higher real GDP per capita. Government control suppresses SED in high-economy areas but promotes it in low-economy areas. This research can help countries formulate local plans to promote SED in river basin cities.
{"title":"Evaluation and influencing factors of sustainable economic development: A spatial analysis in the Yellow River Basin","authors":"Zhenhua Zhang , Chao Hua , Malin Song , Marshall S. Jiang , Jianjun Miao , Xue-Li Chen","doi":"10.1016/j.eap.2025.01.012","DOIUrl":"10.1016/j.eap.2025.01.012","url":null,"abstract":"<div><div>River basin cities often face significant conflicts between human activities and the environment. The Yellow River Basin, known for its long-standing energy industry, is one of China's key focus areas for developing new quality productive forces and promoting sustainable economic development (SED). This study employs a grey-weighted Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) to analyze panel data from 99 cities in the Yellow River Basin (YRB) from 2006 to 2019, evaluating the region's SED. Spatial econometric models are used to identify influencing factors. The results indicate that SED in the YRB exhibits strong positive spatial autocorrelation. Financial development has an N-shaped curve effect on SED, with its influence extending to surrounding areas. Human capital and foreign direct investment positively impact SED, while informatization inhibits it. Energy consumption efficiency significantly promotes SED. The impacts of all factors on SED are more pronounced in regions with higher real GDP per capita. Government control suppresses SED in high-economy areas but promotes it in low-economy areas. This research can help countries formulate local plans to promote SED in river basin cities.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 997-1011"},"PeriodicalIF":7.9,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-06DOI: 10.1016/j.eap.2025.01.005
Shen Zhong, Zhicheng Zhou, Wei Gao
Green innovation (GI) is crucial for improving public health, and regional financial reform and innovation (RFRI) policies play a key role in promoting financial development (FD) and enhancing innovation capacity (IC), thereby advancing GI. This paper systematically analyzes the relationship between RFRI policies and GI, utilizing panel data from 281 Chinese cities from 2003 to 2021 and employing a multi-period difference-in-differences (DID) model. The main conclusions of this paper are as follows: First, RFRI policies significantly promote GI in pilot areas, and this conclusion holds after a series of robustness tests. Second, RFRI policies enhance GI by fostering FD and IC. Third, an analysis of individual policies reveals that open and innovative RFRI policies have the most significant impact, while shared policies have a relatively weaker effect. Finally, heterogeneity analysis further shows that the effect of RFRI policies on GI is stronger in cities not subject to environmental protection interviews, regions with higher environmental protection taxes, areas with lower public environmental concern, general cities, and eastern regions. This study explores whether RFRI policies can promote GI, providing empirical evidence and policy recommendations for China's financial reforms and the green transformation of its economic development.
{"title":"Impact of regional finance reform and innovation policies on green innovation in pilot cities: A quasi-natural experiment","authors":"Shen Zhong, Zhicheng Zhou, Wei Gao","doi":"10.1016/j.eap.2025.01.005","DOIUrl":"10.1016/j.eap.2025.01.005","url":null,"abstract":"<div><div>Green innovation (GI) is crucial for improving public health, and regional financial reform and innovation (RFRI) policies play a key role in promoting financial development (FD) and enhancing innovation capacity (IC), thereby advancing GI. This paper systematically analyzes the relationship between RFRI policies and GI, utilizing panel data from 281 Chinese cities from 2003 to 2021 and employing a multi-period difference-in-differences (DID) model. The main conclusions of this paper are as follows: First, RFRI policies significantly promote GI in pilot areas, and this conclusion holds after a series of robustness tests. Second, RFRI policies enhance GI by fostering FD and IC. Third, an analysis of individual policies reveals that open and innovative RFRI policies have the most significant impact, while shared policies have a relatively weaker effect. Finally, heterogeneity analysis further shows that the effect of RFRI policies on GI is stronger in cities not subject to environmental protection interviews, regions with higher environmental protection taxes, areas with lower public environmental concern, general cities, and eastern regions. This study explores whether RFRI policies can promote GI, providing empirical evidence and policy recommendations for China's financial reforms and the green transformation of its economic development.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 888-911"},"PeriodicalIF":7.9,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132293","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-06DOI: 10.1016/j.eap.2024.12.019
Alexander Meléndez , Gabriel Rodríguez
This study assesses the evolving impact of fiscal policy on Peru’s economic activity in 1995Q1-2018Q2 using unrestricted and restricted TVP-VAR-SV models as proposed by Chan and Eisenstat (2018a). The results highlight the necessity of including stochastic volatility, although there is no clear evidence for time-varying parameters. Shocks from government consumption growth and public investment growth significantly influence the forecast error variance decomposition and the historical decomposition of GDP growth. Conversely, the impact of tax revenue shocks remains weak throughout the study period. The public investment multiplier exceeds that of government consumption although both are less than 1, suggesting a limited capacity of fiscal policy to stimulate economic activity. The study also finds that external shocks (export price index growth) have a strong and positive impact on tax revenue growth. A series of robustness exercises further confirms these results.
{"title":"Evolving impacts of fiscal policy on macroeconomic fluctuations in Peru","authors":"Alexander Meléndez , Gabriel Rodríguez","doi":"10.1016/j.eap.2024.12.019","DOIUrl":"10.1016/j.eap.2024.12.019","url":null,"abstract":"<div><div>This study assesses the evolving impact of fiscal policy on Peru’s economic activity in 1995Q1-2018Q2 using unrestricted and restricted TVP-VAR-SV models as proposed by Chan and Eisenstat (2018a). The results highlight the necessity of including stochastic volatility, although there is no clear evidence for time-varying parameters. Shocks from government consumption growth and public investment growth significantly influence the forecast error variance decomposition and the historical decomposition of GDP growth. Conversely, the impact of tax revenue shocks remains weak throughout the study period. The public investment multiplier exceeds that of government consumption although both are less than 1, suggesting a limited capacity of fiscal policy to stimulate economic activity. The study also finds that external shocks (export price index growth) have a strong and positive impact on tax revenue growth. A series of robustness exercises further confirms these results.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1135-1158"},"PeriodicalIF":7.9,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-05DOI: 10.1016/j.eap.2025.01.009
Mengchao Yao , Qianwei Ying
State-owned enterprises (SOEs) constitute a pivotal component of the Chinese economy and maintain a robust relationship with the government. While existing literature predominantly examines the effects of governance and policy burdens on SOEs, the exploration of policy burden transmission through government intervention mechanisms remains underexplored. To clarify the transmission mechanisms and potential impacts of policy burdens, we scrutinize the impact of government power delegation on the policy burdens of SOEs in China. Government power delegation is designed to curtail the government's authority through comprehensive internal reforms. This investigation evaluates the intensity of government power delegation employing a novel textual analysis methodology termed “words net”. Our findings corroborate that local government power delegation alleviates policy burdens in SOEs. The robustness of our findings is affirmed through comprehensive robustness checks and addressing endogeneity concerns via instrumental variables and difference-in diference. Furthermore, this effect is markedly amplified in the context of local SOEs and those with diminished promotional opportunities. Moreover, it attenuates the detrimental impact on firm value engendered by policy burdens. The reconfiguration of the government's role elucidated in this paper yields valuable insights into economic development strategies for China and regions with analogous conditions.
{"title":"Government power delegation and the policy burden of state-owned enterprises","authors":"Mengchao Yao , Qianwei Ying","doi":"10.1016/j.eap.2025.01.009","DOIUrl":"10.1016/j.eap.2025.01.009","url":null,"abstract":"<div><div>State-owned enterprises (SOEs) constitute a pivotal component of the Chinese economy and maintain a robust relationship with the government. While existing literature predominantly examines the effects of governance and policy burdens on SOEs, the exploration of policy burden transmission through government intervention mechanisms remains underexplored. To clarify the transmission mechanisms and potential impacts of policy burdens, we scrutinize the impact of government power delegation on the policy burdens of SOEs in China. Government power delegation is designed to curtail the government's authority through comprehensive internal reforms. This investigation evaluates the intensity of government power delegation employing a novel textual analysis methodology termed “words net”. Our findings corroborate that local government power delegation alleviates policy burdens in SOEs. The robustness of our findings is affirmed through comprehensive robustness checks and addressing endogeneity concerns via instrumental variables and difference-in diference. Furthermore, this effect is markedly amplified in the context of local SOEs and those with diminished promotional opportunities. Moreover, it attenuates the detrimental impact on firm value engendered by policy burdens. The reconfiguration of the government's role elucidated in this paper yields valuable insights into economic development strategies for China and regions with analogous conditions.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 912-927"},"PeriodicalIF":7.9,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132017","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-05DOI: 10.1016/j.eap.2025.01.007
Mengzhi Zhang , Wenjian He
As an essential mechanism of corporate external governance, it is worth considering whether analyst attention can inhibit corporate greenwashing behavior. Based on the theoretical exploration of the mechanism of analyst attention on corporate greenwashing behavior, this paper, using the data of Chinese A-share non-financial listed companies, quantitatively finds that analyst attention does not inhibit but rather encourages corporate greenwashing. After a series of robustness tests, the baseline regression results remain consistent. The mechanism test reveals that analyst attention encourages greenwashing due to the information asymmetry, which creates short-term performance pressure. This pressure displaces investments in environmental governance, ultimately increasing the motivation for greenwashing, rather than being driven by collusion between the two parties. Heterogeneity analysis indicates that analyst attention contributes more significantly to corporate greenwashing behavior among non-state-owned firms and firms with a high shareholding ratio of short-term institutional investors. These findings offer valuable insights for developing analyst practices and promoting genuine corporate environmental responsibility.
{"title":"Encouraging or inhibiting: Can analyst attention reduce corporate greenwashing behavior?","authors":"Mengzhi Zhang , Wenjian He","doi":"10.1016/j.eap.2025.01.007","DOIUrl":"10.1016/j.eap.2025.01.007","url":null,"abstract":"<div><div>As an essential mechanism of corporate external governance, it is worth considering whether analyst attention can inhibit corporate greenwashing behavior. Based on the theoretical exploration of the mechanism of analyst attention on corporate greenwashing behavior, this paper, using the data of Chinese A-share non-financial listed companies, quantitatively finds that analyst attention does not inhibit but rather encourages corporate greenwashing. After a series of robustness tests, the baseline regression results remain consistent. The mechanism test reveals that analyst attention encourages greenwashing due to the information asymmetry, which creates short-term performance pressure. This pressure displaces investments in environmental governance, ultimately increasing the motivation for greenwashing, rather than being driven by collusion between the two parties. Heterogeneity analysis indicates that analyst attention contributes more significantly to corporate greenwashing behavior among non-state-owned firms and firms with a high shareholding ratio of short-term institutional investors. These findings offer valuable insights for developing analyst practices and promoting genuine corporate environmental responsibility.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 943-962"},"PeriodicalIF":7.9,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143132016","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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