Empirical Evidence Research Articles

The contradictory impact of ESG performance on corporate competitiveness: Empirical evidence from China's Capital Market

In recent years, with the increasing awareness of sustainable development, corporate ESG (Environmental, Social, and Governance) performance has garnered widespread attention from investors and has had a sustained impact on long-term business operations. The mechanisms by which ESG performance affects corporations primarily include the "governance effect" and the "window-dressing effect." Aimed at high-quality development goals, what kind of impact does ESG performance have on corporate competitiveness? This paper attempts to explore the economic relationship between corporate ESG performance and corporate competitiveness in China's capital market through theoretical analysis and empirical testing. The research results show that ESG performance significantly promotes corporate competitiveness, particularly through the "social" dimension (S) and "governance" dimension (G). ESG performance significantly enhances corporate competitiveness by increasing corporate philanthropic donations and improving total factor productivity, demonstrating the "governance effect" of ESG. However, in the "environmental" dimension (E), ESG performance instead leads to an increase in corporate carbon emissions, which may indicate that corporate efforts in environmental areas are more for superficial appearance, exhibiting the "window-dressing effect" of ESG. This study reveals the crucial role of ESG practices in enhancing corporate competitiveness, providing theoretical support and policy implications for promoting corporate competitiveness and achieving high-quality development goals.

Intellectual Differences Between Boys and Girls, 35 Years of Evolution in France from WISC-R to WISC-V

The French adaptation of the Wechsler Intelligence Scale of Children, 5th edition (WISC-V) was an opportunity to examine if some common representations of gender differences in intellectual abilities are supported by empirical evidence. The WISC-V standardization sample provided data on a wide range of cognitive tests in a large sample of 6- to 16-year-old children representative of the French population. This sample included 517 boys and 532 girls. The WISC-V data were compared to those of the French standardization samples of three previous versions of the WISC (WISC-R, WISC-III, and WISC-IV). These four standardization samples span a 35-year period. The data analysis of the WISC-V standardization sample and the three previous versions of this intelligence scale showed that the performance gaps on intellectual tests between girls and boys have gradually narrowed over time. Almost no gender differences were observed in the WISC-V standardization sample, not only in IQ but also in key facets of intelligence. Data do not support the stereotype that girls are better at verbal tasks and boys are better at visuospatial tasks. However, some statistically significant differences remain, but the magnitude was generally small with no practical implications. The only important difference is in favor of girls and concerns performance on processing speed tasks that require visual discrimination, attentional control, and writing.

Strategic leadership and management within non-profit organizations: An in-depth review of practices contributing to sustainable impact

This study provides an in-depth review of strategic leadership and management practices within non-profit organizations (NPOs) and their contribution to sustainable impact. Employing a systematic literature review and content analysis, the research aims to explore the evolving landscape of strategic leadership, define the scope of leadership and management in achieving sustainable impact, and identify innovative management practices that enhance organizational sustainability. The methodology involved a comprehensive search across peer-reviewed journals, conference proceedings, and grey literature from 2013 to 2023, focusing on empirical evidence, theoretical frameworks, and case studies relevant to NPOs' strategic leadership and management. Key findings reveal that adaptive leadership, innovative management practices, stakeholder engagement, and technology integration are crucial for NPOs to navigate operational complexities, engage stakeholders effectively, and achieve mission-driven objectives. The study proposes strategic recommendations for NPOs to enhance their sustainable impact, including adopting adaptive leadership styles, fostering innovation, integrating technology, and building resilient organizational frameworks. The study underscores the importance of policy development to guide non-profit leaders towards best practices in strategic leadership and management. It also highlights future research directions, emphasizing the need to explore the impact of emerging technologies, globalization, and cross-cultural dynamics on NPOs. Conclusively, the research affirms that effective strategic leadership and management are indispensable for enhancing the sustainable impact of NPOs, advocating for continuous innovation and adaptability in the non-profit sector.

Can ESG ratings drive digital innovation in enterprises? Exploring Porter's hypothesis in the digital era

AbstractThe holistic reshaping and advancement of the global economy inherently demand the creation of synergies between digitization and environmentally sustainable development practices. This study pioneers an evaluation of the impact of environmental, social, and governance (ESG) ratings on corporate digital technology innovation, contrasting with existing literature. Using data from A‐share listed firms for 2011–2020, our research reveals that implementing ESG ratings stimulates corporate digital technology innovation across various dimensions, thereby confirming the presence of the Porter hypothesis in the digital era. Furthermore, these findings are substantiated through the utilization of various methodologies, such as synthetic difference‐in‐differences (SDID), multi‐period DID, event studies, and staggered DID. In addition, mechanism tests delve into the underlying channels through which ESG ratings stimulate corporate digital technology innovation, elucidating their ability to promote innovation through motivation stimulus and resource supply effects. Moreover, the heterogeneity analysis carried out in this study uncovers diverse effects on digital technology innovation stemming from factors such as firm characteristics, industry competitiveness, industry nature, regional intellectual property protection (IPP), and factor market development. Nevertheless, companies should refrain from blindly pursuing high ESG ratings to avoid overcorrecting because there is an inverse U‐shape relationship between ESG ratings and corporate digital technology innovation. These findings provide the theoretical basis and empirical evidence for the widescale utilization of ESG ratings. Thus, they offer useful guidance for executives and other policymakers aiming to foster a win–win scenario of digitization and green development.

The Influence of External Audit Quality on Discretionary Accruals and Real Earnings Management Practices: An Analysis of Malaysian Firms

This paper aims to analyse the mitigating effects of external audit quality (EAQ) factors on earnings management (EM) practices. Data were collected from firms listed on Bursa Malaysia’s main market, covering the years 2011 through 2022. Panel regression was employed to analyse the data. The findings of this study confirmed a significant negative association between audit reputation, audit quality, audit opinions, and EM of listed firms in Malaysia. Audit fees and audit tenure were found to be not significant in relation to EM. The study included five control variables in the analysis, and only economic value added (EVA) was found to be significant. The findings suggest that a number of audit quality factors are indicative of EM among listed firms. The authors extend, as well as contribute to, the growing literature on the EAQ, and therefore, wider corporate governance literature. Thus, it provides originality by presenting empirical evidence and outcomes to fully understand how discretionary accrual and real EM affect EAQ in the Malaysian context. Therefore, stakeholders should place higher concern on the selection of an external auditor, and investors should take into account the external audit factors when making investment decisions. Measuring the effectiveness of EAQ allows decision-makers to evaluate how effective employed governance measures are in improving shareholders’ perceptions of financial information quality and mitigating EM practices.

Rediscovering paternalistic leadership: a powerful engine for startup

ABSTRACT This study investigates the effects of paternalistic leadership, a predominant leadership style in Confucian-influenced East Asia, on the growth and innovation of start-up companies, particularly within the information technology sector. Contrary to the prevailing belief that paternalistic leadership stifles innovation, our findings reveal that this leadership style can significantly enhance business performance. This study identifies key mechanisms, such as fostering employee loyalty, improving decision-making processes, and encouraging proactive behaviours, that drive growth under paternalistic leadership. Empirical evidence shows that employees under such leadership exhibit entrepreneurial behaviours marked by innovation, risk-taking, and initiative, leading to measurable improvements in profitability, customer satisfaction, and market share. These results underscore the role of paternalistic leadership in accelerating the success of East Asian start-ups and provide valuable insights for organisations seeking to balance cultural leadership styles with the demands for innovation.

Quantum computing and its implications for Asian innovation ecosystems

ABSTRACT Where quantum computing is emerging as a catalyst for innovation, this paper investigates its influence on R&D efficiency and innovation outcomes across 4,500 firms in six key sectors – pharmaceuticals, finance, materials science, energy, telecommunications, and logistics – in Asia between 2015 and 2024. The study employs advanced models, including Agent-Based Modeling (ABM), Bayesian Networks, Support Vector Machines (SVM), and Markov Chains, to analyse the relationship between quantum computing investments and innovation performance. The results indicate that high-R&D sectors, such as pharmaceuticals and finance, benefit most from quantum computing due to its role in accelerating drug discovery and optimising risk management. In contrast, low-R&D sectors like telecommunications and logistics face slower adoption due to infrastructure challenges and limited resources. Government support, particularly through subsidies and tax incentives, enhances the impact of quantum computing investments on innovation outcomes, especially in high-R&D industries. This study addresses key gaps by providing empirical evidence of quantum computing’s role in driving sectoral innovation and offering actionable insights for policymakers and industry leaders.

Addressing companies’ low-carbon transition challenges requires diversified investments in environmental initiatives

The energy, utilities, industrial, and material sectors are crucial suppliers of essential goods and services, but their business operations are among the largest sources of anthropogenic greenhouse gas emissions. Consequently, companies in these sectors play a pivotal role in the low-carbon transition and face substantial stakeholder pressure to manage their transition risks and reduce their environmental impact. Here, we argue that effective responses to transition challenges require diversifying investments in adaptation and mitigation initiatives across a broad range of activities and goals. Analysing financial and nonfinancial data from a global sample of publicly traded companies, we find that those who extensively diversify their investments are better able to reduce their emissions over time. Diversification also reduces carbon pricing risk, thereby lowering exposure to transition risks, under several climate policy scenarios. Our findings provide empirical evidence that business leaders in critical sectors for the low-carbon transition should incorporate well-diversified investments in adaptation and mitigation initiatives into their sustainability strategies to manage interconnected transition challenges.

The Signalling Effect of Corporate Social Responsibility Reporting: Evidence From Short Selling

Using exogenous regulatory changes that have gradually removed short‐sale restrictions in China's stock exchanges, we examine how such deregulation influences firms’ corporate social responsibility (CSR) reporting. Our findings indicate a significant improvement in the calibre of CSR reporting among firms designated as qualified for short selling in a deregulation pilot program (pilot firms) compared to non‐pilot firms. Moreover, our empirical evidence shows that the improvement in CSR reporting practices is greater for pilot firms experiencing stronger downward price pressure, negative earning news, higher bankruptcy risk, greater ownership concentration, and those classified as state‐owned enterprises. These results demonstrate that firms susceptible to price declines from short selling utilize CSR reporting as a visible and credible signal to safeguard and enhance corporate reputation, garnering increased stakeholder support.

Telephone Survey-Reported Perceptions of Telehealth Visits Among Black and Non-Black Patients Diagnosed With Cancer.

Empirical evidence underscores both benefits of telehealth visits and persistent disparities in use for Black adults. Guided by the Technology Acceptance Model, we evaluated perceptions regarding telehealth visits among Black and Non-Black adults receiving cancer care from two academic health systems. Between April 2022 and October 2023, a survey was conducted among adult patients treated for cancer in the past 3 years. Survey recruitment was stratified by visit type (telehealth or in-person) and race. Before a scheduled oncology visit, respondents completed a telephone survey to assess their perceptions of usefulness, ease of use, and attitudes toward telehealth visits. Frequency differences were estimated using chi-square tests, and prevalence differences using logistic regression. The survey was completed by 773 respondents (42% Black) with a 15% response rate. Black respondents were younger and less likely to report male sex, being married, having a college education, comfortable income, or confidence in medical and e-literacy. Compared with Non-Black respondents, Black respondents perceived telehealth visits as less useful for determining health needs (37% v 48%) and asking questions (9% v 15%). They thought that telehealth visits were less easy with regard to understanding their health care provider (14% v 21%) and the ability to connect (23% v 30%). Black respondents expressed more concern about internet access (26% v 15%), access to electronic devices (17% v 9%), and finding assistance for connecting (24% v 12%). They also found telehealth visits to be less private (19% v 34%). Racial differences in telehealth ease of use and usefulness perceptions highlight the need for oncology practices to couple connectivity support with effective communication strategies to avoid disparities in oncology telehealth services.

Case report: Ketogenic diet alleviated anxiety and depression associated with insulin-dependent diabetes management

Differentiating between an irrational versus a rational fear of hypoglycemia has treatment implications and presents significant challenge for clinicians facing patients with type 1 diabetes, illustrated in this case. A 39-year-old woman with autoimmune-positive insulin-dependent diabetes sought help to alleviate severe diabetes distress, and symptoms of depression and anxiety, associated with unpredictable drastic blood glucose drops. After exhausting conventional methods, she adopted a ketogenic diet (KD). Her glucose values decreased from around 20 mmol/L to 12 mmol/L (360 mg/dL to 216 mg/dL) in the first days. Then, by combining a KD with an insulin pump, her time in optimal glucose range increased from 8 to 51% after 2 months, reducing her HbA1c with 25 mmol/mol (2.2%). This reduced biological and psychological stress, immediately improving her mental health and renewing her hope for the future. The main concerns regarding KD in patients with comorbid type 1 diabetes is the assumed increased risk of ketoacidosis, theoretical depletion of glycogen stores, and a potential adverse effect of saturated fat on cardiovascular risk factors. These concerns are evaluated against existing empirical evidence, suggesting instead that a KD may protect against acidosis, hypoglycemia, and cardiovascular risk. The present case, together with available data, indicate that patients with type 1 diabetes experiencing high levels of biological and psychological stress should be informed of the expected benefits and possible risks associated with a KD, to ensure their right to take informed decisions regarding their diabetes management.

How Explainable Artificial Intelligence Can Increase or Decrease Clinicians' Trust in AI Applications in Health Care: Systematic Review.

Artificial intelligence (AI) has significant potential in clinical practice. However, its "black box" nature can lead clinicians to question its value. The challenge is to create sufficient trust for clinicians to feel comfortable using AI, but not so much that they defer to it even when it produces results that conflict with their clinical judgment in ways that lead to incorrect decisions. Explainable AI (XAI) aims to address this by providing explanations of how AI algorithms reach their conclusions. However, it remains unclear whether such explanations foster an appropriate degree of trust to ensure the optimal use of AI in clinical practice. This study aims to systematically review and synthesize empirical evidence on the impact of XAI on clinicians' trust in AI-driven clinical decision-making. A systematic review was conducted in accordance with PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines, searching PubMed and Web of Science databases. Studies were included if they empirically measured the impact of XAI on clinicians' trust using cognition- or affect-based measures. Out of 778 articles screened, 10 met the inclusion criteria. We assessed the risk of bias using standard tools appropriate to the methodology of each paper. The risk of bias in all papers was moderate or moderate to high. All included studies operationalized trust primarily through cognitive-based definitions, with 2 also incorporating affect-based measures. Out of these, 5 studies reported that XAI increased clinicians' trust compared with standard AI, particularly when the explanations were clear, concise, and relevant to clinical practice. In addition, 3 studies found no significant effect of XAI on trust, and the presence of explanations does not automatically improve trust. Notably, 2 studies highlighted that XAI could either enhance or diminish trust, depending on the complexity and coherence of the provided explanations. The majority of studies suggest that XAI has the potential to enhance clinicians' trust in recommendations generated by AI. However, complex or contradictory explanations can undermine this trust. More critically, trust in AI is not inherently beneficial, as AI recommendations are not infallible. These findings underscore the nuanced role of explanation quality and suggest that trust can be modulated through the careful design of XAI systems. Excessive trust in incorrect advice generated by AI can adversely impact clinical accuracy, just as can happen when correct advice is distrusted. Future research should focus on refining both cognitive and affect-based measures of trust and on developing strategies to achieve an appropriate balance in terms of trust, preventing both blind trust and undue skepticism. Optimizing trust in AI systems is essential for their effective integration into clinical practice.

Analyzing the Dynamics of Inflation, Exchange Rates and Economic Growth through the Gini Index: Modeling VAR in Morocco

In this study, we analyze the cross-impact of inflation, exchange rates and economic growth on income inequality in Morocco between 2000 and 2022, based on the GINI index as a measure of inequality. Its main objective is to understand how these macroeconomic variables influence income disparities. Our methodology is based on a VAR model to capture dynamic interactions between variables. To validate the robustness of the model, Granger causality tests and specification tests, including tests of homoscedasticity and autocorrelation of residuals, were used. The result is that inflation has a significant positive impact on income inequality, and exchange rate fluctuations directly influence inequality. Furthermore, economic growth helps to reduce inequality, although this effect depends on the distribution of the benefits of this growth. This study contributes to the existing literature by providing empirical evidence of the importance of macroeconomic stability and educational and fiscal policies in reducing income inequality.

Optimal asset allocation and nonlinear return predictability from the dividend-price ratio

AbstractWe study non-linear predictability of stock returns arising from the dividend-price ratio and its implications for asset allocation decisions. Using data from five countries — U.S., U.K., France, Germany and Japan — we find empirical evidence supporting non-linear and time-varying models for the equity risk premium. Building on this, we examine several model specifications that can account for non-linear return predictability, including Markov switching models, regression trees, random forests and neural networks. Although in-sample return regressions and portfolio allocation results support the use of non-linear predictability models, the out-of-sample evidence is notably weaker, highlighting the difficulty in exploiting non-linear predictability in real time.

Impact of school leadership on reading literacy in rural China: the differentiated models of principals’ self-report and teachers’ report

AbstractThe impact of school leadership (SL) on reading literacy (RL) has been extensively examined using either principals' self-reports or teachers' reports. However, principals and teachers might have divergent, even contradictory, views on the path from SL to RL. Therefore, this study aimed to explore and compare the principals’ self-reported and teachers’ reported models with teacher commitment (TC) as a mediator and collaborative culture (CC) as a moderator of the relationship between SL and RL. Whole group sampling was employed to sample the 106 junior middle schools in City X from western China. About 841 teachers from 80 classes/schools were successfully matched with their 3134 students (Mage = 14.84, SD = 0.74, female = 1673, male = 1461), and about 34 principals from 34 classes/schools were matched with their 1223 students (Mage = 15.35, SD = 1.28, female = 647, 52.9%; male = 576, 47.1%). The results indicated that: (1) there were significant differences between principals’ self-reports and teachers’ reports regarding SL and RL; (2) the direct impact of SL on RL was found in the principals' self-reports but not in the teachers’ reports; and (3) an indirect effect of SL on RL with TC as the mediator and CC as the moderator was found in the teachers' report model. The distinctive models in this study demonstrate principals' and teachers' different views on SL's impact on RL and provide empirical evidence to support both the original and the revised Claim # 1.

Exploring the synergy of corporate gender diversity, sustainability committee, and reporting ESG practices: An international evidence

This study delves into how gender diversity on the corporate board shapes the reporting of Environmental, Social, and Governance (ESG) practices. Besides, it examines the moderating role of a sustainability committee in the nexus between gender diversity and reporting of ESG practices. It analyzes an international sample of the S&P Global 1200 index from 2011 to 2022. The ESG reporting is based on the Refinitiv disclosure index of the firm ESG scores. The study utilizes various statistical models to provide precise empirical evidence, including fixed effects, a two-stage least squares (2SLS), and a generalized method of moments (GMM). The results demonstrate that disclosing ESG practices is a positive function of the percentages of corporate female board members and executive female directors. This suggests that companies with greater gender diversity disseminate more information about their ESG practices. Besides, a corporate sustainability committee strengthens the positive nexus between reporting ESG performance and corporate female board members and executive female directors. This underscores the moderating role of the sustainability committee in simplifying the nexus between gender diversity and reporting ESG practices. The results offer substantial implications for the leverage of gender diversity on ESG reporting. Policy-setters should actively support and promote greater corporate gender diversity, recognizing its pivotal role in fostering transparency. Additionally, a dedicated sustainability committee is crucial in enhancing the reporting of ESG performance and aligning business practices with sustainable development goals.

Physical climate change risk and ESG green premium

ABSTRACT We build an asset pricing model that incorporates climate change risk and firms’ ESG engagement to analyse their interactive effects on equity returns. Our model shows that a firm’s ESG engagement has three channels for influencing stock returns: its direct impact on resisting climate change risk, indirect reduction in systematic risk and attraction of green preference, and the empirical evidence shows that both risk–return relation and ESG engagement are priced. We also point out an inevitably negative and convex relation between the market Sharp Ratio and stocks market beta in an economy with climate change risk.

Migration and neighbourhood trust: Evidence from urban China

Neighbourhood outcomes of migration have drawn considerable scholarly attention. Previous studies consider neighbourhood trust an indicator of social integration or social resources, revealing inconclusive findings regarding the effects of migration. Unlike previous studies, we view neighbourhood trust as a lifestyle feature. Combining urbanism theory and a typology of trust, we argue that migration causes a reduction in migrants’ neighbourhood trust through the assimilation of the urbanism lifestyle. We provide nationwide empirical evidence of the causal relationship between migration and neighbourhood trust and reveal the underlying mechanism. Our study identifies this relationship in urban China by applying a difference-in-differences empirical strategy and using the China Family Panel Survey. The results show that migration lowers neighbourhood trust levels by 0.473 from a sample mean of 6.692. We find that the declining effect is greater for rural–urban migrants than for within-urban migrants, and it is greater for rural–urban migrants who acquire urban hukou than for those who do not. We also show that rural–urban migration leads to an increase in trust in strangers. Together, these results support our hypothesis that the assimilation of the urbanism lifestyle is a critical mechanism through which migration undermines neighbourhood trust.

The impact of team psychological safety on employee innovative performance a study with communication behavior as a mediator variable.

This study aims to delve into the impact of team psychological safety on employee innovative performance and to analyze the mediating role of communication behavior in this process. Given the central role of innovation in the sustained competitiveness of enterprises, understanding how team psychological safety promotes employee innovation through communication behavior is of significant theoretical and practical importance. The study employs a structural equation model (SEM) to analyze survey data from 580 employees across various high-tech enterprises. The results indicate that the three dimensions of team psychological safety-team collaboration and understanding, team information sharing, and team give-and-take balance-have a significant positive impact on employee innovative performance. Moreover, communication behavior plays a significant mediating role between team psychological safety and employee innovative performance. This study reveals the positive influence of team psychological safety on employee innovative performance through communication behavior, emphasizing the importance of building a positive team psychological safety environment to stimulate employee innovation potential. It provides empirical evidence for enterprise managers to optimize team communication strategies and enhance employee innovative performance.

How Knowledge Sharing Mediate the Effect of Authentic Leadership on Organizational Commitment

This study aims to provide empirical evidence of the effect of Authentic Leadership on Organizational Commitment which is mediated by Knowledge Sharing. This research is causality associative research using a quantitative approach. The scope of this research includes the subject of the research, namely permanent employees and contract employees at PT. Karya Pak Oles Tokcer who work in Bali Province. The population in this study were all employees of PT Karya Pak Oles Tokcer in Bali Province with a total of 117 employees. The sampling technique used in this study was saturated sampling which is included in non-probability sampling. The data analysis technique in this study uses two analysis techniques, namely descriptive statistical analysis and inferential statistical analysis using Structural Equation Modeling (SEM). The results of the analysis provide evidence that Authentic Leadership has a positive effect on Organizational Commitment and Authentic Leadership affects Knowledge Sharing. Knowledge Sharing also has a positive effect on Organizational Commitment and mediates Authentic Leadership on Organizational Commitment.