Business Level Research Articles

The international empirics of management

A country's national income broadly depends on the quantity and quality of workers and capital. But how well these factors are managed within and between firms may be a key determinant of a country's productivity and its GDP. Although social scientists have long studied the role of management practices in shaping business performance, their primary tool has been individual case studies. While useful for theory-building, such qualitative work is hard to scale and quantify. We present a large, scalable dataset measuring structured management practices at the business level across multiple countries. We measure practices related to performance monitoring, target-setting, and human resources. We document a set of key stylized facts, which we label "the international empirics of management". In all countries, firms with more structured practices tend to also have superior economic performance: they are larger in scale, are more profitable, have higher labor productivity and are more likely to export. This consistency was not obvious ex-ante, and being able to quantify these relationships is valuable. We also document significant variation in practices across and within countries, which is important in explaining differences in the wealth of nations. The positive relationship between firm size and structured management practices is stronger in countries with more open and free markets, suggesting that stronger competition may allow firms with more structured management practices to grow larger, thereby potentially raising aggregate national income.

"Tax optimization" and its difference from "tax planning"

The article clarifies the content and relationship between the concepts of «tax optimization» and «tax planning». The criteria for distinguishing these concepts are determined. It is established that tax planning is a multi­stage process which includes both strategic forecasting and careful organization of tax liabilities at each level of business. The main goal of this process is to be able to shape the structure and form of the business in such a way that they are optimal from the taxation point of view. Tax planning primarily determines the choice of a business entity’s strategy. Tax planning is defined as an important element of a company’s strategic management aimed at long-term and comprehensive management of tax liabilities. Tax optimization is an important process aimed at adapting the taxpayer to the peculiarities of the current tax system in order to choose the most profitable and efficient taxation regime. This process is not limited to the passive application of tax rules, but involves the active management of tax liabilities within the limits of legally permissible techniques, means and methods. Tax optimization is not only the ability to choose the most favorable conditions from those offered by the legislator, but also the ability to predict and adapt to changes that may affect the tax burden in the future. Tax optimization as a legal tool for reducing the total tax burden is considered exclusively within the framework of legal actions of the taxpayer. A distinctive feature of tax optimization as compared to tax planning is its focus on achieving short- and medium-term goals of a business entity by directly using the opportunities provided by tax legislation. Tax planning, on the other hand, is an element of strategic management aimed at achieving the long-term strategic goals of a business entity. Tax optimization is aimed at developing the most favorable model for fulfilling tax obligations by a business entity without changing the economic substance of business transactions. This approach allows the taxpayer to flexibly adapt to changes in the tax environment, while maintaining the sustainability of financial results and reducing tax costs. Tax optimization is not just a tool for reducing the tax burden, but also an important element of tax planning.

Фактори активізації соціальних інвестицій бізнесу в Україні та Польщі

Introduction. Contemporary global challenges affect the development of business and the startup ecosystem around the world. In particular, the increase in geopolitical risks due to the full-scale war in Ukraine actualizes the issue of social investments of business. However, these processes have a different nature in different countries. For example, in Poland, social entrepreneurship is aimed at facilitating public access to social services, using new technologies and artificial intelligence for digitalization and increasing business competitiveness. An ecosystem of high-tech startups and social entrepreneurship is being formed at the state level. At the same time, in times of full-scale war in Ukraine, social investment of businesses has become especially important. A new approach to doing business is being formed, according to which startups develop not only new technologies but also support social and humanitarian initiatives. Problem Statement. Assessing the factors of social investment activation on the example of Ukrainian and Polish businesses. The purpose is to identify and evaluate the key factors influencing the development and efficiency of social investments in Polish and Ukrainian business. Methods. General scientific and special methods were used, in particular: scientific abstraction and epistemological (content) analysis, synthesis, induction and deduction, analogies and systematization, system-structural analysis, expert evaluation method, index method and grouping method. Results. The levels of manifestations and possibilities of activation of social investments at different levels, which is based on SDG standards (a combination of environmental, social and public management principles), which create the basis for sustainable development and growth in the world, have been studied. National economies and individual businesses incorporate ESG principles into their development strategies. Compliance with these principles is possible only if there is a sufficient amount of involved investments. The specifics of state policy in the context of the development of social investments, trends in the development of business and startups in Ukraine and Poland, and successful cases of the implementation of social business projects are analyzed. The conducted analysis made it possible to single out the factors of activation of social investments of business in both countries at the global, state and business levels. Conclusions. Today's challenges require a change in business priorities. Even high-tech startups are revising their development strategies in terms of social investments, activities in accordance with ESG principles. At the global level, factors for the activation of social business investments are common to Ukraine and Poland. At the state level, it is possible to distinguish common groups of factors of business activation in Ukraine and Poland, which have different manifestations for each of the countries. Business representatives demonstrate different approaches to social investments: Polish companies actively integrate corporate volunteering, educational and cultural projects into development strategies, while in Ukraine social entrepreneurship is associated with the need to restore social infrastructure, rehabilitation and integration of these groups into public life.

Pizza Town Sukkur: sustaining in the current competitive environment

Learning outcomes After reading this case students will be able to understand the role of General Environment analysis in strategic decision-making; to understand the use of different models such as Porter’s Five Forces, SWOT and resource-based view; and to enable graduates to apply different strategies such as business level and growth strategies and environmental analysis to any company or industry on their own. Case overview/synopsis Pizza Town Sukkur, once a popular spot for delicious pizzas, was facing a tough situation. New competition was threatening its success, and the manager, Mr. Faisal Gul, was torn between sticking to old ways or trying new ideas. A surprise invitation to a special industry summit added excitement but also uncertainty. The restaurant, started by Honey Bhai in 2007, used to be a hit, but now it struggled with challenges like not having online ordering and falling behind in marketing. Other pizza places in Sukkur, like Pizza Mart, Pizza King and Pizza Grill, were giving tough competition. The story unfolded in the lively setting of Sukkur's food scene, with Pizza Town at a crossroads – whether to embrace change and technology or risk fading away in the face of new rivals. Complexity academic level Undergraduate and Graduate Supplementary material Teaching notes are available for educators only. Subject code CSS 11: Strategy.

Systematic review in relation to support of diversity in nursing homes.

Given the increasing global population of older adults, it is essential and inevitable that healthcare centers and nursing homes address and accommodate diversity in their support systems as interventions for healthy aging. The active aging and the inclusion of all people regardless of their religion, origin, and/or sexual orientation is essential to create a climate of safety. Discrimination must be addressed from all angles, at the social level, at the business level and by all workers in nursing homes. This study provides a comprehensive review of existing literature to systematize information on diversity among older adults in healthcare centers and nursing homes. Out of 1.458 articles identified, 10 were analyzed in depth, revealing that addressing diversity among older adults is crucial to overall mental and physical healthy aging. The findings underscore the need for a multidisciplinary approach and effective management through the Person-Centered Care Model (PCCM). This study highlights the critical role of the Person-Centered Care Model (PCCM) in addressing diversity in aging needs. It highlights the necessity of tailoring care based on individual life histories and experiences. Additionally, it calls for the implementation of inclusive policies in nursing homes and emphasizes the need for professional training on diversity to ensure these facilities are safe and supportive for all residents.

Automating production of de-identified linkable data

ObjectiveAn innovative large-scale automated method has been developed to produce de-identified linkable data. The objective is to create a wide pool of ready-to-use data to enable faster and wider collaborative analysis for the public good. ApproachA configurable automated pipeline prepares data for onward linkage at location, person, business and classification level through: Big data profiling pre- and post-processing, for overview of variables and characteristics Flagging potentially sensitive/identifiable variables Generalisable linkage methods for large-scale data, to enable the addition of unique IDs for onward linkage of de-identified data De-identification, hashing and redaction mechanisms, to remove and/or obscure sensitive/identifiable variables Automated production of metadata, capturing linkage quality and transformations across the data journey Quality assurance checks, including measure of linkage quality, assurance of variable derivations and redactions, and consistency checks on remaining data. ResultsThe pipeline enables a configurable automated approach to producing de-identified, linkable, ready-to-use data in a traceable and fully documented manner. To achieve this we have: overcome scalability issues in working with big data; implemented automation at various levels; and enabled standardisation across data types and data structures to deliver a consistent recognisable final product. Conclusions and ImplicationsBuilding an automated pipeline to enable onward linkage of de-identified administrative data was a complex process that has resulted in positive change around how our organisation operates and distributes data. This represents an important step towards future integration of linkage within the platform and the basis of future innovation in the area.

Outsource processing under staff shortage

During the war, Ukraine has faced nume­rous challenges, one of the most threatening of which is the personnel shortage. The full-scale war caused large-scale labor migration, a signi­ficant number of the able-bodied population was mobilized into the ranks of the Armed Forces of Ukraine, and this became an important factor that led to a shortage of qualified workers. For many economic entities, this situation becomes critical and requires immediate and effective solutions to ensure stable work. One such solu­tion is outsourced processing which is the trans­fer of certain business processes to external companies that have the necessary resources and expertise. Insufficient research on out­sourcing causes a low level of business aware­ness of its strategic effectiveness. It is hypo­thesized that the use of outsourced process­sing is an effective adaptive solution to overcome the personnel shortage in the war in Ukraine, which will enable business entities to optimize costs, ensure continuity and flexibility of activity, and attract highly qualified specialists. The research was carried out using the methods of analysis, comparison, systematization, empirical studies and case studies, as well as horizon scanning and logical modeling. The challenges of outsour­ced processing in the conditions of war are analyzed, examples of its successful application in conditions of personnel shortage are provi­ded. The conducted studies form scientifically based approaches to determining the directions of integration of outsourced processing in the activities of business entities. The concept of outsourced processing is based on the quality selection of the outsourcer and its establishment of effective partnership relations; creates advantages in innovativeness and flexibility of business; creates conditions for optimizing time, effort and resources; makes it possible to attract the physical and intellectual potential of external companies, in particular to cover the shortage of personnel

Research on Comprehensive Management Optimization of OTC Derivatives Business in Financial Institutions

OTC derivatives, as a foreign product, have experienced a development process from scratch, from existence to growth after entering the domestic capital market. With the development of mixed operation of domestic financial industry, the development speed of derivative products business has shown a trend of collapse in recent ten years. This paper will discuss how to improve the overall management and performance management of OTC derivatives business, promote the stable development of OTC derivatives business, improve the management ability and level of financial institutions derivatives business, and help financial institutions achieve sustainable operation and stable development.

Research on the Transformation and Development of Investment Bank FICC Business of CITIC Securities Company Limited

In the current financial environment, with the continuous expansion of China's economic output and the continuous expansion of demand for financial services, the mutual influence of the international market is gradually deepening. Deepening the development of FICC business has become the core breakthrough point for the high-quality development of securities companies. Since its development, the FICC business (i.e. capital intermediary business) under the investment banking system of CITIC Securities has been involved in fixed income, foreign exchange, commodities, etc. However, there is still a significant gap in its development compared to international investment banks. Taking the current research status of FICC business at home and abroad as the background, taking CITIC Securities Company as an example, analyze the development status of its FICC business from multiple perspectives. Analyze the development bottlenecks in various aspects such as overall capital scale, traditional business and internationalization level, talent team structure, and technological innovation ability, and propose targeted solutions to improve the risk management system, expand the FICC business chain, accelerate technology investment, improve organizational structure, and leverage synergies to promote the transformation and development of CITIC Securities' FICC business and support the high-quality development of the securities and finance industry.

Integration of organizational, economic and customer-related attributes to prioritize marketing strategies

PurposeA well-designed marketing strategy is critical for the survival of any company in today’s competitive market. To be formulated and implemented effectively, a marketing strategy must be phased and aligned to levels in the organization. This study aims to advance a three-tier hierarchical framework of marketing strategies, including corporate, business and functional levels. The authors use the proposed framework to select the most appropriate marketing strategy based on the factors relevant to a factory that produces sporting goods.Design/methodology/approachThe authors conduct a literature review to identify marketing strategies at corporate, business and functional levels. To appraise strategies at the corporate and business levels, the authors use market share as a key criterion. When evaluating functional strategies, the authors use criteria categorized into organizational, economic and customer dimensions. Additionally, the authors conduct interviews to assess strategies at the first level and use the best worst method to appraise strategies at the other two levels.FindingsThe authors use the suggested structure for a company producing sports goods in Iran. According to the results, an offensive approach and customer orientation are the most appropriate strategies at corporate and business levels. Additionally, offensive advertising and managerial capabilities are identified as the best portfolio of strategies and the most important criterion at functional level, respectively.Originality/valueSo far, a specific category of marketing strategies has not been implemented at corporate, business and functional levels. Accordingly, there is not a framework of criteria to evaluate the strategies at each level. The approach is implemented in the case of a sportswear manufacturer in a developing country, where quantitative analysis has been lacking until now.

FinTech and economic readiness: Institutional navigation amid climate risks

The current climate change is declared as a global boiling point by the UN; businesses are facing increasing costs in maintaining their supply chains and production standards and are being urged to adapt and innovate for environmental transition. With the Industrial Revolution 4.0, FinTech has helped develop households’ and firms’ resilience against climate change. This study explores how businesses use FinTech to increase economic readiness to attract adaptation investments. This study hypothesizes that, at initial levels of businesses, FinTech adoptions are typically targeted to improve profitability while, as businesses mature, their FinTech adoption shows a transition towards sustainability. Following this, the role of institutions in regulating an ecosystem is to promote sustainable financial innovations. This study employs a 114-country panel data analysis to investigate these dynamics empirically. The estimation using Panel Quantile Regression showed that institutional quality can moderate the U-shaped FinTech adoption and business readiness relationship to expedite the transition under Sustainable Development Goal 9. This research sheds light on the impact of institutional quality on improving businesses’ ability to attract adaptation investments via promoting sustainable innovation. Outcomes offer valuable insights for policymakers, firms, and investors seeking to foster a more resilient economy.

KERAGAAN BIOFISIK, SOSIAL DAN PENDAPATAN SERTA KELAYAKAN USAHA TANI TAMBAK SILVOFISHERY DI KECAMATAN SERUWAY, ACEH TAMIANG

The increase in aquaculture businesses in the coastal areas of Seruway District, Aceh Tamiang Regency, has resulted in high conversion of mangrove forests into ponds. If management is not carried out, it will have an impact on coastal environmental degradation. Therefore, it is necessary to look for a sustainable pond management model. One model is silvofishery. In developing this silvofishery model, biophysical environmental data, social and economic conditions of pond cultivation are needed. The aim of this research is to determine the biophysical, social performance, income level and feasibility of a silvofishery system pond business. The research was conducted using descriptive methods with survey techniques. The research results show that the silvofishery ponds at the research location use a partite pond model. From the analysis of biophysical properties, overall results were obtained, the conditions were suitable for the development of milkfish and tiger prawn cultivation. From social performance, the results showed that silvofishery system pond farmers are still of productive age and have an average pond area of 5 ha. The income obtained from silvofishery system ponds is IDR 19,560,000/ha/year/farmer. Silvofishery pond system If the R/C value is greater than 1, then silvofishery pond farming is worth pursuing.

Legal Regulation of Artificial Intelligence Directors under the Background of the Revision of China's New Company Law

With the rapid development of technology, artificial intelligence technology has gradually been valued by the public and applied in various industries. At the level of business and corporate governance, there are also examples of AI directors participating in corporate governance internationally, providing us with space to explore the application of AI directors in Chinese corporate governance and decision-making. In December 2023, China promulgated a newly revised Company Law, and this article aims to explore how China responds to the issue of artificial intelligence directors in the context of the new Company Law. Specifically, it manifests as the authorization of artificial intelligence directors as auxiliary functions, the expansion and modification of the obligations of natural person directors, and the issue of responsibility assumption caused by artificial intelligence directors.

Ethics of tourism: a Horizon 2050 paper

Purpose This paper is part of Horizon 2050 series of papers. This paper aims to highlight the importance of stronger engagement with ethical philosophy in tourism. A number of potential research streams are identified. Design/methodology/approach The paper first introduces several theories of ethics. It then reviews the history of tourism’s engagement with ethics, especially within academia. Subsequently, several themes for the future of research on tourism ethics are discussed according to four scales: the tourist, tourism business, tourism destination and the tourism system. Findings At the individual tourist level, future research should focus on better understanding tourist (un)ethical behaviour by considering the hedonic and cross-cultural nature of tourism. At business level, motivations to be ethical, ethical corporate models should be studied. Endurance of tourist products that are deemed unethical needs further analysis. At destination level, further understanding of stakeholder relations, stakeholder values and dissemination of those values is required. Fair and just options to sustainably manage visitation merit further discussion. At tourism system level, a stronger engagement with political philosophies and more creative alternatives for the current global tourism system require exploration. Originality/value While several reviews of ethics of tourism research exist, this paper is oriented towards opportunities for future research. The paper does not intend to cover all current ethical debates; however, it provides a number of topics within the tourism ethics field that merit further exploration in hope to inspire new research.

«ЗЕЛЕНИЙ» ОБЛІК В УКРАЇНІ ТА ЗА ЇЇ МЕЖАМИ: НАБУТТЯ ДОСВІДУ

The existent approaches to a «green» account need to examine not only, from the necessity of maintenance of natural resources and guard of environment, but also as a process that integrates life with social aspects, by financial operations and influences on all spheres of economic activity and its safety. Therefore, using experience of foreign countries, it need green account to implement to the different spheres of national economy, applying the wide set of tools of analysis, evaluation, audit, monitoring and digitalization. The purpose of the research is expansion of limits of perception of «green» account in a theory and practice of instrument of management modern socio-economic development as on the level development level of separate business of region and national economy. The object of the research is a process of expansion the traditional account and including for its of instruments of ecology and social responsibility of business. The method of the research became modern methods and principles of scientific cognition, methods and methodologies of realization of audit, instruments of financial and economic analysis, principles of social responsibility of business that will allow to enter the existent approaches a «green account» in a modern theory and practice of traditional account that influences on steady and stability of national economy. The hypothesis of the research became a supposition about possibility of introduction of foreign mechanisms and instruments of «green» account in a theory in practice of traditional account. The statement of basic materials. It is well-proven that the task of «green» account there is harmonization the protection of environment with socio-economic and technological activity with helps by means of account instruments. It is confirmed, that a «green» account becomes the constituent of conception of steady development today, what proclaimed UN, and its main tendencies spread the input of the ecological development systems on all levels of management, using renewable energy, diminishing contamination of air, water, abbreviating the volumes of placing of wastes and so on. It is offered to the existent types of public account to add an ecological audit, which is sent to the search verification of observance of real ecological internals, standards and requirements that is pulled out by society. It is marked that «green» account allows obtaining information about charges and receipts of ecological benefits, which helps administrative composition to control, make decision, report and protect an environment. It is showed the list of benefits reasonable that it is possible to get if input of foreign experience of the using «green» account in the traditional system of account in Ukraine. The originality and practical significance of the research are confirmed by the ground of necessity of the using all elements, instruments and constituents of «green» account at a traditional account. Conclusions and perspectives of further research. It is well-proven that it is necessary to change approaches to «green» account, especially in a post-war period, because «green» account includes the economic, social and evaluation ecological aspects of enterprises activity that should be concerted with the landscape of country and its territories. A «green» account now become control system by all ecological charges that take into attention different general interests for strengthening of ecological state and socio-economic safety of environment. And this situation are allowing the determination of standards, rules and criteria, which should be reasonable and codification on the basis of certain practical experience, with bringing competent domestic and international organizations to forming of the special standards of «green» account for inhibition and normalization of ecological and socio-economic situation in a country and its territories. Further researches will be sent to the input of the special educational programs on the first, second and third educational levels and on the courses of in-plant training all professional directions that are the experience of successful global development of world community.

THE COMPETITIVENESS OF COMMODITIES SEAWEED USING POLICY ANALYSIS MATRIX (PAM)

Seaweed products from the city of Tarakan have been traded to outside areas such as Makassar and Surabaya before being exported overseas. This study aims to analyze the competitiveness of seaweed in Tarakan City using the policy analysis matrix (PAM) method. The PAM method is used two main indicators for measuring competitiveness, namely the Private Cost Ratio (PCR) as an indicator of competitive advantage and the Domestic Resource Cost Ratio (DRCR) which is an indicator of comparative advantage. The results showed that seaweed in Tarakan City had a PCR value of 0.37 and a DRC of 0.08, the private profit (PP) obtained was Rp 6,444,319 financially has a competitive advantage at the business level farmer. Social profit (PS) of Rp 30,386,901 economically or the economy as a whole has a comparative advantage which means efficient use of resources. The impact of government policies on the output of seaweed cultivation is not protective with an NPCO value of 0.34. The impact of government policies on seaweed cultivation inputs is not protective with an NPCI value of 1.29, meaning that farmers have not received positive incentives from the current input subsidy policy. The EPC value of 0.31 means that the overall impact of government policies on input-output is protective and provides positive incentives to farmers, but is still relatively weak and very vulnerable if policy changes occur. The regional government is expected to provide protection to seaweed cultivators in the form of setting costs for purchasing seaweed and also to strictly supervise cartel practices in the seaweed trading system.

Analisis Kelayakan Usaha Bengkel Sepeda Motor di Kecamatan Wonocolo Kota Surabaya

This research aims to analyze the feasibility level of a motorbike repair shop business in Wonocolo subdistrict, Surabaya city. This research data analysis uses the method of calculating fixed costs, variable costs, total costs, revenues, income and business feasibility. In this research, the analysis used is B/C, R/C and ROI. The results of the research show that the average total cost for 6 informants who own a motorbike repair shop is IDR38,971,456/month, the revenue obtained is an average of IDR100,575,500/month and the average income is IDR 61,604,043/month. Calculation of business feasibility using the b/c ratio obtained an average result of 1.60%, the average r/c ratio calculation was 2.60% and the average ROI calculation was 118.667%. The results of these calculations state that the motorbike repair shop business in Wonocolo subdistrict, Surabaya city is feasible to run and develop.

Going Solo: Techniques for Emergency Fracture Management Without Assistance.

Orthopaedic injuries represent some of the most frequent conditions treated in emergency centers worldwide. Proper reduction techniques and evaluation of radiographic parameters are paramount in treating patients effectively. Orthopaedic providers at large tertiary centers may have several assistants available but are also burdened by notable patient loads and volumes. Frequently, fracture care may necessitate procedures performed by providers without the availability of skilled assistance, both in large tertiary academic centers and small independent emergency rooms with limited resources. As providers at a busy level 1 tertiary trauma center with only one primary orthopaedic resident responsible for the performance of most fracture reductions, we present both novel techniques and refined published approaches that allow the safe, efficient, and reliable reduction and stabilization of several different types of fracture dislocations with limited or no assistance, and only commonly found supplies.

ANALISIS KELAYAKAN USAHA BROILER DI PETERNAKAN MAHMUDDIN DESA TATAKAN KECAMATAN TAPIN SELATAN KABUPATEN TAPIN

This research was conducted at Mr. Mahmuddin's broiler farm located in Tatakan Village, South Tapin District, Tapin Regency. The research began in January to May of 2024. This research aims to study the income level of broiler chicken business with a partnership pattern and to determine the feasibility of broiler chicken business with a partnership pattern on Mahmuddin Farm in Tatakan Village, South Tapin District, Tapin Regency. The components used in evaluating business feasibility include production costs, revenue, and business income obtained from broiler farming. Parameters measured are using cost benefit analysis indicators which include: R/C Ratio, B/C Ratio, BEP, and Performance Index (IP) parameters. The results showed that the feasibility analysis of a broiler livestock business with a business scale of 41,165 heads for four periods was profitable as an agribusiness-oriented business where the profit earned was Rp. 60,996,439 in four periods, and feasible to develop with a value of R / C ratio of 1,06 and B / C ratio of 0.06. BEP analysis shows that the amount of production is higher than the production BEP value (Production>BEP Production) which is 58,195.01 kg for 4 periods and the price BEP is still lower than the set at Rp. 23,408-/kg so that it has met the empirical standards in the break-even analysis calculation. As for the assessment using the Performance Index (IP) parameter in the first period is 547, second 269, third 550, and in the last period 888. This shows that Mr. Mahmuddin's broiler farm business located in Tatakan Village, South Tapin District, Tapin Regency is feasible to continue or develop.

The impact of green credit legislation on business financing: Insights from Chinese polluting firms

Introducing sustainable credit protection by companies depends on eco-friendly funding that accelerate businesses' technical development and transformation. This study investigates the sustainable financing roles through green credit legislation which impacted state owned enterprises and non state owned enterprises. We have investigated our hypothesis using the Propensity Score Matching Difference-in-Differences (PSM-DID) model. For this purpose we collected data of businesses listed on the Shanghai and Shenzhen stock exchanges that are country's most polluting publicly listed enterprises between 2009 and 2021. The results of the study reveals that liquid Finance and industrial Credit experienced a meteoric rise while the use of illiquid debt financing has dropped significantly among highly polluting organizations. This pattern has intensified after China introduced its “sustainable credit guidelines.” Additionally, businesses in areas with lower sustainable development indices are more likely to feel the consequences of sustainable credit programs. However, there is still a need for prudent capital flow allocation in response to the personalized financing preferences resulting from the sustainable credit policy at the business level, even if China's sustainable credit rules have unquestionably reduced the use of illiquid debt financing by severely polluting enterprises. Policy implications include improving the direction signalled to these businesses via sustainable funding.