Construction Of Social Credit System Research Articles

Social credit scoring system and corporate pollution governance: Insights from China's Social Credit System Construction

This study examines the effect of China's Social Credit System (CSCS) construction as a quasi-natural experiment on corporate emissions. The System collects and shares credit information, including environmental credit for firms. Using 30,766 firm-year observations of Chinese non-financial listed firms from 2007 to 2021 and pilot programs in the construction of the CSCS in various cities, we document that firms located in cities with the CSCS system lower their emissions than those in cities without the CSCS system. Additional analysis suggests that the lower emission for the CSCS firms is due to enhancing environmental information disclosure, advancing technological progress, and alleviating financial constraints. The moderating analysis reveals that the impact of the CSCS on restraining corporate emissions is more salient when a firm: (1) belongs to a heavily polluting industry or is privately-owned; (2) has management myopia or lack of environmental awareness; or (3) has a weak internal and external monitoring.

Social credit improvement and enterprise investment

This research explores the effects of enhancing social credit on corporate investment, utilizing China's model city pilots for the Social Credit System Construction(SCSC) as a quasi-natural experiment. Our findings demonstrate that social credit improvement significantly increases enterprise investment levels, a conclusion supported by robustness tests. Mechanism analysis reveals that mitigating agency cost and enhancing debt financing are key factors driving increased corporate investment after the implementation of the SCSC. Heterogeneity results suggest that SCSC implementation is more effective for firms without political affiliations and with high institutional shareholding.

Social credit system construction and entrepreneurial activity: A quasi-natural experiment from China

This study investigates the impact of the improved social credit environment on entrepreneurial activity. We conduct the time-varying difference-in-differences model based on the quasi-natural experiment of constructing China’s Social Credit System (SCS) and find that the implementation of this institution significantly improves entrepreneurial activity, which remains robust to a series of tests. Mechanism tests reveal that the SCS influences entrepreneurial activity through material, human, and social capital agglomeration effects, as well as by alleviating information asymmetry. Heterogeneity analysis demonstrates that the positive impact of SCS is more obvious in promoting entrepreneurial activity within private enterprises, high-tech, and manufacturing industries. Furthermore, this entrepreneurial effect is more pronounced in cities with lower administrative levels and on the southeast side of the Hu Huanyong Line.

Can the construction of the social credit system improve the efficiency of corporate investment?

Based on the quasi-natural experiment of China's pilot reform of social credit system, this paper examines the effect and mechanisms of the construction of social credit system on corporate investment efficiency using the data of A-share listed companies in Shanghai and Shenzhen from 2005 to 2022. The study presents the following findings. First, the construction of social credit system significantly improves corporate investment efficiency, through three main paths: alleviating information asymmetry, improving internal corporate governance, and strengthening market competition pressure. Second, there is significant heterogeneity in the promotion effect of the construction of social credit system on corporate investment efficiency, which is more pronounced for non-state-owned enterprises and enterprises in monopolistic industries. Based on the above research conclusions, this paper puts forward policy suggestions such as establishing a comprehensive credit information sharing platform, promoting the credit rating system, strengthening credit supervision and risk early warning to improve the social credit system.

Legal and Rituological Dynamics of Personalized “Pillars of Shame” in Chinese Social Credit System Construction

Legal and Rituological Dynamics of Personalized “Pillars of Shame” in Chinese Social Credit System Construction

Social credit and corporate risk-taking: Evidence from China

Social credit refers to establishing mutual trust among diverse social entities through adherence to contractual principles. Despite the acknowledged significance of risk-taking in fostering corporate performance, scant attention has been devoted to exploring the influence of social credit on corporate risk-taking. Based on China’s social credit reform policies, we use a staggered difference-in-difference (DID) estimation approach to conduct our study and find that good social credit significantly enhances corporate risk-taking. This phenomenon can be attributed to ameliorating agency costs and alleviating financing constraints. Furthermore, our findings are more significant for firms with weaker corporate governance, higher external financing constraints, and regions with insufficient formal institutions. In conclusion, this study not only expands the research on the influencing factors of risk-taking, but also provides useful references for government departments on how to further improve the construction of social credit system.

Social credit system construction and corporate debt dilemmas

The social credit system plays a positive role in promoting the flow of social resources and enhancing economic efficiency. This paper treats the implementation of the tax credit rating system as an external shock event in the social credit system construction, designing a quasi-natural experiment to empirically test the impact of the social credit system construction on corporate debt dilemmas. The research finds that the construction of the social credit system can effectively alleviate the debt predicaments of enterprises. Further heterogeneity tests indicate that our findings are more pronounced in private enterprises and those without political connections.

The Role of China’s Social Credit Management in the Socialist Market Economy System

Social credit management is a global issue, has become an important aspect of the economic development of various countries. In the process of social transformation in modern China, the social credit management system has undergone three stages of evolution: from scratch to existence, from existence to reality, and from reality to refinement. Based on the review of the transformation of market order and the construction of social credit system in China, this paper makes a systematic analysis of its main content and internal logic. From the perspective of Huntington’s “political decline” and other Chinese and foreign theories, this paper discusses the relationship between the three main bodies of social credit construction — market, society, government and market order respectively, in an attempt to provide inspiration and ideas for the construction of China’s future social credit system.

Social credit system construction and corporate environmental performance: A quasi-natural experiment from China

This study explores the role of social credit system construction, an informal institution, in improving corporate environmental performance. To identify the causal connections between social credit and corporate environmental performance, the progressive difference-in-differences (DID) method is adopted by introducing the social credit system construction pilots aiming to improve the social credit environment of China as a quasi-natural experiment. Empirical results imply that social credit system constructions exert a significant improvement effect on corporate environmental performance. In addition, corporate innovation, financial constraints alleviation, and the strengthening of environmental cases enforcement are three effective action mechanisms by which social credit system constructions helping improve corporate environmental performance. Moreover, this promotion effect presents heterogeneity characteristics due to enterprises ownership and the environmental pollution degree of the city where the enterprise is located. This study provides an informal institutional perspective for the green development of enterprises.

How can the construction of social credit system in the context of digitalization empower grassroots governance? — A Case Study of “Moral Bank” in Yuyao City, Zhejiang Province

The 20th Party Congress report proposed to improve the grid-based management, refinement of services, information technology to support the grassroots governance platform, and improve the urban and rural community governance system [1, p. 24]. Grass-roots social governance is the basis of the entire national governance system, which concerns the vital interests of millions of people. At present, the government concentrates funds and material resources on infrastructure construction, and while the hardware environment at the grassroots level is improving, the construction of soft power is seriously lagging behind, and residents’ awareness of participation and public spirit are seriously lacking, so grassroots governance needs to be transformed. The basic function of social credit system is to form incentives and constraints for various subjects with the help of credit evaluation mechanism, so as to realize effective social governance. The establishment of social credit system can not only create an environment to serve social governance, but also provide important support for the modernization of social governance system and national governance capacity. Thus, under the strategic choice of building a comprehensive social credit system, combining an effective social credit system with grassroots social governance is an inevitable choice for China’s future development. Meanwhile, along with the accelerated development of digitization in China, the digitization of social credit system construction has become a powerful boost to promote credit governance. The digital transformation of social credit system can fully activate the path of credit information formation and collection in the traditional social credit system, optimize the operation mechanism and application scenario of credit evaluation mechanism, and thus maximize the functional utility of credit-enabled grassroots social governance. Based on this, this paper attempts to take the many challenges faced by grassroots governance as a logical starting point, take the “moral bank” in Yuyao, Zhejiang Province as a case study, trace how the construction of social credit system empowers grassroots social governance in the context of digitalization, explore the operation mechanism and practical effects of it, and extract corresponding insights.

The construction of social credit system and corporate innovation: Evidence from China

Under the background of the construction of a social credit system (CSCS) in China, personalized trust established on emotion and identity is evolving toward generalized trust based on recorded credit information. Using the pilot cities of the CSCS in China, we employ a difference-in-differences identification strategy to examine whether the CSCS affects corporate innovation. We find that pilot cities of the CSCS significantly promote corporate innovation, and the impact of the pilot cities of the CSCS on exploitative innovation is stronger compared with that on exploratory innovation. We further show that the impact of the CSCS on corporate innovation is more significant in firms with low availability of capital for innovation projects, firms with long supply chain distances, and firms in areas with poor protection of intellectual property rights. Finally, we document that CSCS promote cooperative innovation and improve innovation efficiency. Overall, our research helps with a further understanding of the connotation of social trust in China and provides a reference for credit system construction in other economies in the Asia Pacific region.

Civil and commercial law improves the construction of social credit system in the context of “Internet +”

Abstract As Internet technology sharply improves, the social outlook has been greatly improved. However, in the process of exploring market economy, the problem of credit missing has become prominent. The market economy is a credit economy, so market dishonesty will seriously corrode the market order and hinder the healthy development of the economy. Therefore, this paper, based on the correlation coefficient algorithm, calculated and analyzed the way civil and commercial law improves the construction of the social credit system in depth. The research results show that the construction degree of civil and commercial law definition is 56% in credit system. The construction degree of the characteristics of civil and commercial law is 67%. In addition, the unsound legal system leads to the difficulty of constructing a social credit system is as high as 78%, and the incomplete government mechanism leads to the difficulty of constructing a social credit system is 56%. This means that the complexity of positive information determines the role of public credit service departments in the credit service system.

Research on the legalization of Social Credit System

The relevant creative legislation for the construction of China's Social Credit System is being continuously promulgated and implemented. However, due to the lack of guidance from higher-level laws such as the Constitution and specialized laws, the social credit legal system is facing a dilemma of structural defects. As a means of governance, social credit-related policies and local legislation include too much morally adjusted behavior into the scope of legal adjustment, leading to excessive pursuit of effectiveness of governance results in practice, while ignoring the punishment of dishonesty legitimacy. Based on this, the rule of law of the Social Credit System should create special laws that “incorporate morality into the law” to improve the social credit legal system, and face up to the limitations of social credit as institutional credit, strengthen the legal constraints of Social Credit System construction, and realize “Formal rule of law” and “substantive rule of law”.

The Construction of the Right of Algorithm Interpretation and the Path of Legal Guarantee:Taking the Construction of Social Credit System as the Scene

The Construction of the Right of Algorithm Interpretation and the Path of Legal Guarantee:Taking the Construction of Social Credit System as the Scene

Design and application of a personal credit information sharing platform based on consortium blockchain

The technical features of blockchain, including decentralization, data transparency, tamper-proofing, traceability, privacy protection and open-sourcing, make it a suitable technology for solving the information asymmetry problem in personal credit reporting transactions. Applying blockchain technology to credit reporting meets the needs of social credit system construction and may become an important technical direction in the future. This paper analyzed the problems faced by China’s personal credit reporting market, designed the framework of personal credit information sharing platform based on blockchain 3.0 architecture, studied the technical details of the platform and the technical advantages, and finally, applied the platform to the credit blacklist sharing transaction and explored the possible implementation approach. The in-depth integration of blockchain technology and personal credit reporting helps to realize the safe sharing of credit data and reduce the cost of credit data collection, thereby helping the technological and efficiency transformation of the personal credit reporting industry and promoting the overall development of the social credit system.

Research on the application of enterprise credit supervision risk evaluation index based on fuzzy matter-element of comprehensive evaluation

Credit supervision is not only an important institutional arrangement for the construction of social credit system, but also one of the main ways to give full play to the value and role of credit. The risk evaluation of enterprise credit supervision can provide important reference for classified supervision. The research on the risk evaluation model and indicators of enterprise credit supervision is of great significance to improve the scientificity and accuracy of enterprise credit supervision risk evaluation. Through the research and analysis of enterprise credit supervision risk evaluation model and evaluation index, the fuzzy matter-element evaluation model is constructed, and the comprehensive weight of enterprise credit supervision risk evaluation index is calculated by subjective and objective weighting methods respectively, and the main factors affecting the level of enterprise credit supervision risk are analyzed, so as to provide suggestions for enterprises to carry out credit supervision risk evaluation and strengthen credit supervision risk management It provides a scientific reference.

Social Credit System Construction Plan as Road Map for the Reform of Social Management in China in the 2010s

The article is devoted to a policy document that defines the main directions and principles of creating a social credit system in China. It is shown that the reform plan and the ongoing changes are quite consistent with the Chinese bureaucratic traditions of coercion and paternalism, and are associated with the use of a social regulator that forms the appropriate behavioral incentives, such as reputation. Ultimately, the new model of social governance is aimed at ensuring social and political stability in China and proactively addressing the development problems of Chinese society.

Anomalous Telecom Customer Behavior Detection and Clustering Analysis Based on ISP’s Operating Data

Mobile networks and smart phones have become ubiquitous in our daily life. Large amount of customer related telecom data from various sources are generated every day, from which diversified behavior patterns can be revealed, including some anomalous behaviors that are vicious. It becomes increasingly important to achieve both efficient and effective customer behavior analysis based on the telecom big data. In this paper, the Multi-faceted Telecom Customer Behavior Analysis (MTCBA) framework for anomalous telecom customer behavior detection and clustering analysis is proposed. In this framework, we further design the hierarchical Locality Sensitive Hashing-Local Outlier Factor (hierarchical LSH-LOF) scheme for suspicious customer detection, and the Autoencoders with Factorization Machines (FM-AE) structure for dimension reduction to achieve more efficient clustering. Hierarchical LSH-LOF is an improved algorithm of LOF, in which we design a hierarchical LSH process that selects the approximate k nearest neighbors from coarse to fine by gradually narrowing down the scope. Experiments show its superiority over KD-tree w.r.t searching speed. FM-AE exploits Factorization Machines for learning second order feature interactions, which we prove to be useful by designing comparative experiments with five dimension reduction algorithms. With the proposed MTCBA framework, efficient and effective telecom customer behavior analysis including anomalous customer behavior detection and clustering analysis is performed on the real world telecom operating data provided by one of the major Internet service providers (ISPs) in China. Meanwhile, interpretable clustering results of six clusters are obtained to provide valuable information for the precision marketing of telecom operators, criminal combating, and social credit system construction.

Transition from Shame-based Culture to Algorithm-based System:Research on Blockchain Technology and China's Social Credit System Construction

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Structuring China Business Credit Management System and Relevant Characteristic Variables Based on the Tree Model

Nowadays, many credit deficiencies are in the Chinese business field, so it is urgent to accelerate the business credit system construction. In China, structuring the credit system is more appropriate than the integrity system particularly in business. Although business credit system is complex, the tree model could clearly analyse its structure and content. Based on the Chinese central government's file, “Social Credit System Construction Planning Outline (2014-2020),” the tree model is utilized and the authors suggest major objectives, key tasks and ten major relationships to the credit system construction in Chinese business fields. Also, several credit characteristic variables are put forward as scientific evaluation in order to enhance the objective management for the business credit system. The real case, Ningxia Hui Autonomous Region in 2015 is verified in the evaluation model.