Financial Constraints Research Articles

Climate risk and corporate ESG performance: Evidence from China

This paper has explored whetherand how climate risk affects corporate ESG performance in China. Using the text analysis, we construct a firm-level climate risk index and find that climate risk can promote corporate ESG performance. Empirical evidence demonstrates that financing constraints and social attention are the potential influence channels. Furthermore, the positive relationship is more pronounced for firms with greater regional government attention to climate change, better information disclosure quality, or ahigherasset-liability ratio. Our results shed light on the important role of climate risk in corporate risk management and investor decision-making.

Market-based debt-to-equity conversion and corporate green innovation

Using a sample of Chinese listed data, this paper examines how market-based debt-to-equity conversions affect firms’ green innovation performance to offer policy recommendations that bolster sustainable development. The empirical findings show that these conversions can enhance the level of green innovation and that risk-taking has a mediating effect. Furthermore, enterprises can alleviate their financing constraints through debt-to-equity conversions, thus regulating green innovation behaviour.

Office-based pediatric urology procedures

Introduction: Office-based procedures under local anesthesia are not a popular and well-accepted concept in pediatric urology except for newborn circumcision. There is limited literature on the utilization of office-based procedures under local anesthesia in pediatric urology. In this study, we present our experience of office-based procedures under local anesthesia from a tertiary center. Materials and Methods: This is a retrospective study of the patients who underwent meatotomy and penile adhesion release in the clinic under local anesthesia between January 2017 and August 2022 by a single surgeon in a tertiary center. A total of 92 patients were included in this study. Results: There were 65 patients diagnosed with meatal stenosis and 27 patients diagnosed with penile adhesion. The overall incidence of recurrence was noted in four patients. Only one patient had minimal complications. The overall average follow-up was 5.39 months (1–10 months). Conclusion: Selective office-based procedure (meatotomy and penile adhesion release) under topical local anesthesia is a simple, safe, and effective method to treat such conditions with a high success rate, especially with financial and time constraints on health care nowadays.

How does a fair competitive environment facilitate the growth of private enterprises: A quasi-natural experiment based on the antimonopoly law

This study examines the impact of the Chinese antimonopoly law on the growth of private enterprises, addressing the broader economic context where fair competition is essential for fostering private sector expansion. Employing a difference-in-differences (DID) methodology and analyzing data from 2006 to 2019, this study reveals that the enforcement of the law has enhanced the growth of private firms primarily by reducing financial constraints and increasing the financing costs for highly monopolistic corporations. The results suggest that stringent enforcement of the antimonopoly law will significantly alleviate financial difficulties and stimulate the growth of private firms, thereby achieving high-quality economic development.

How does internet finance affect firm exports? Evidence from China

Internet finance, which can be accessed and delivered through internet technology, has become increasingly important in financial markets. This study examines how internet finance affects the extensive and intensive margins of firm exports. We find that internet finance increases both the extensive and intensive margins of firm exports, with the results varying according to firm type. Specifically, internet finance (i) enhances the extensive margin for high-tech firms more than for low- and medium-tech firms; (ii) improves the extensive margin for large firms rather than for small firms; and (iii) benefits the intensive and extensive margins for high government subsidies firms more than for low government subsidies. Moreover, internet finance promotes exports by alleviating financial constraints and reducing the fixed costs of firm exports.

Personalized Dosing of Medicines for Children: A Primer on Pediatric Pharmacometrics for Clinicians.

The widespread use of drugs for unapproved purposes remains common in children, primarily attributable to practical, ethical, and financial constraints associated with pediatric drug research. Pharmacometrics, the scientific discipline that involves the application of mathematical models to understand and quantify drug effects, holds promise in advancing pediatric pharmacotherapy by expediting drug development, extending applications, and personalizing dosing. In this review, we delineate the principles of pharmacometrics, and explore its clinical applications and prospects. The fundamental aspect of any pharmacometric analysis lies in the selection of appropriate methods for quantifying pharmacokinetics and pharmacodynamics. Population pharmacokinetic modeling is a data-driven method ('top-down' approach) to approximate population-level pharmacokinetic parameters, while identifying factors contributing to inter-individual variability. Model-informed precision dosing is increasingly used to leverage population pharmacokinetic models and patient data, to formulate individualized dosing recommendations. Physiologically based pharmacokinetic models integrate physicochemical drug properties with biological parameters ('bottom-up approach'), and is particularly valuable in situations with limited clinical data, such as early drug development, assessing drug-drug interactions, or adapting dosing for patients with specific comorbidities. The effective implementation of these complex models hinges on strong collaboration between clinicians and pharmacometricians, given the pivotal role of data availability. Promising advancements aimed at improving data availability encompass innovative techniques such as opportunistic sampling, minimally invasive sampling approaches, microdialysis, and in vitro investigations. Additionally, ongoing research efforts to enhance measurement instruments for evaluating pharmacodynamics responses, including biomarkers and clinical scoring systems, are expected to significantly bolster our capacity to understand drug effects in children.

The impact of government procurement on green technological innovation: Evidence from manufacturing sector in china

This study investigates the impact of government procurement on green technological innovation (GTI) within China's manufacturing sector amid rapid economic growth and escalating environmental concerns. Using data from listed manufacturing firms, our analysis reveals a robust positive correlation between government procurement and GTI. Notably, we ascertain that larger-scale procurement exerts a more pronounced influence, effectively addressing financial constraints. Additionally, we shed light on how top executives' political connections amplify the impact of government procurement on GTI. Furthermore, our examination uncovers a significant impact on green invention patents, underscoring the efficacy of government procurement in driving innovation. Policy implications emerge, advocating for expanded procurement initiatives, adjusted bidding thresholds, and heightened emphasis on green technology acquisition to stimulate market demand. We advocate for the elevation of executives with political backgrounds and the cultivation of environmental consciousness to bolster green competitiveness. Overall, our findings contribute valuable insights into the pivotal role of government procurement in fostering GTI and offer strategic directions for market-driven environmental policies.

Dissecting performance gains from export-induced marketing and technological investments: Revisiting learning by exporting in Indian manufacturing

The impact of export decisions on firm performance has been extensively studied empirically, yet little attention has been given to the investments resulting from these decisions and their subsequent returns. Moreover, existing research predominantly examines export choices from a technological perspective, with minimal emphasis on the marketing aspects of exporting. Our study offers new insights by examining whether exporting induces firms to invest in marketing and research and development (R&D), and how these investments affect their performance before and after entering export markets. Using a panel of Indian firms from 2002 to 2019, our two-step methodology employs propensity score matching (PSM) to extract export-induced expenditures and production function estimation to assess their impacts on firm performance. The findings reveal that both export-induced marketing and R&D expenditures positively influence firm performance, with marketing investments exhibiting a stronger impact. The combined effect becomes significantly evident post-export entry. We also utilized the instrumental variable (IV) method to validate our findings. Heterogeneous IV analysis highlights that mature firms and those facing financial constraints particularly ramp up these investments post-export entry. Our results hold implications for managers and policymakers, emphasizing the importance of carefully designing export investment policies alongside other export support programs.

Can green finance improve the ESG performance? Evidence from green credit policy in China

Green finance, as a crucial policy instrument for achieving environmental and social objectives, has gradually become a focal point of reform in many countries. This study employs the comprehensive ESG (Environmental, Social, and Governance) score of enterprises as a proxy variable for environmental and social responsibility, utilizes difference-in-difference (DID) method and micro-level data from Chinese listed companies spanning the period from 2011 to 2021, reveals that green credit policy significantly enhances the environmental and social performance of relevant enterprises. Further research indicates that green credit policy, through optimizing the allocation of credit resources, fostering environmental awareness among management, and increasing investment in research and development, contribute to the improvement of enterprise ESG performance. Additionally, the degree of regional marketization and the level of financial constraints on enterprises act as moderating factors in the policy's effectiveness, with the enhancing effect of the policy being more pronounced for enterprises with initially top and bottom ESG performance.

Economic Policy Uncertainty and Corporate Cooperative Research and Development: Empirical Evidence Based on Chinese Patent Data

Based on patent data at the corporate level in China, this paper empirically tests the impact of economic policy uncertainty on corporate cooperative research and development (R&D) by constructing an econometric model. The results reveal that the higher the economic policy uncertainty, the lower the degree of corporate cooperative R&D. Heterogeneity analysis indicates that the negative impact of economic policy uncertainty on corporate cooperative R&D is more pronounced in non-state-owned enterprises and in firms with high financing constraints.

Green innovation in family business succession: Exploring decision-making under parent-child co-governance

This study investigates the impact of Parent-Child Co-Governance (PCCG) on green innovation within family businesses (FBs). Analysing Chinese A-share listed FBs from 2012 to 2020, we discover that PCCG FBs perform significantly worse in green innovation compared to non-PCCG FBs. Our findings indicate that FBs under PCCG encounter more substantial financing constraints and display lower risk preferences, both of which hinder green innovation. This study provides fresh insights into the strategic decision-making processes of FBs, particularly in the context of sustainable development. The results not only deepen our understanding of the PCCG model but also offer practical recommendations for FBs aiming to foster green innovation.

Air Pollution and Corporate Financial Assets Allocation: Evidence from China

Understanding the relationship between air pollution and corporate investment strategy has significant implications for both environmental sustainability and economic development. Utilizing data from China’s A-share listed companies spanning from 2014 through 2022, we investigate the causal relationship between air pollution and corporate allocation of financial assets. Using an instrumental variable approach, we find that worse air quality has a positive effect on corporate financial asset allocation. Specifically, a 1% increase in the number of air pollution days tends to result in a 0.002% increase in the share of financial assets for firms. This effect prevails through diverse robustness tests. Furthermore, as companies encounter more stringent financing constraints and environmental regulations, the trend of air pollution promoting the increased financialization of assets becomes more pronounced. Based on the findings, this paper suggests providing more support for enterprises to facilitate the upgrading of production and operation to meet environmental standards.

Establishment of environmental tribunals and corporate outward investment behaviour

This paper examines the relationship between establishing environmental tribunals and corporate outward investment. Based on listed firms from 2006 to 2022, this paper adopts a difference-in-difference model to explore the effects and underlying mechanisms. The findings indicate that establishing environmental tribunals can promote corporate outward investment including the willingness, numbers and amount. The impact is achieved by enhancing financing constraints, and widening credit spreads.

Navigating Greenwashing in the G8: Insights into Family-Owned Firms, Technology Innovation, and Economic Policy Uncertainty

Our study provides practical insights into the impact of greenwashing on Corporate Financial Performance (CFP) and investment efficiency. We delve into the moderating influences of family-owned firms, technological innovation, and economic policy uncertainty in the nexus between greenwashing and CFP. Using a Method of Moments Quantile Regression (MMQR) model and conducting robustness tests, our results suggest that in G8 nations, family-oriented stakeholders struggle to discern greenwashing due to low information asymmetry. However, technological innovation and reduced economic policy uncertainty enhance the identification of greenwashing. Greenwashing enhances firm value by improving disclosure quality, addressing stakeholder concerns, and easing financing constraints. Notably, heavily polluting and mandatory disclosure firms experience more significant economic performance from greenwashing. This study provides practical implications for firms, policymakers, and stakeholders, fostering sustainable development in G8 nations.

Can IP tribunals increase firm patent applications?—Empirical evidence from China

This paper aims to examine whether property rights protection can enhance firm innovation. To address the endogeneity problem and establish a causal relationship, we adopt the establishment of Intellectual Property Tribunals (IP Tribunals) in China as a natural experiment and employ the Difference-in-Differences (DiD) approach for estimation. By measuring firm innovation via patents and invention patent applications, we find that establishing IP Tribunals can significantly boost firm innovation. Furthermore, we investigate the heterogeneity of our baseline results and discover that privately-owned firms, smaller-sized firms, non-high-tech firms, and firms located in less marketized areas experience a larger improvement in innovation. This finding suggests that this institutional improvement provides greater protection to disadvantaged firms. Breaking regional protectionism and relaxing firm financing constraints are two possible mechanisms through which IP Tribunals can enhance firm innovation. Our results provide new evidence on how institutional change affects economic growth in China.

Implementing the Certainty Factor Method in a Dental Disease Expert System

Health, including dental and oral health, is a fundamental human necessity often overlooked by many. Dental and oral diseases can affect anyone unexpectedly, underscoring the critical need for timely professional advice from dentists based on symptoms presented by patients. Various factors contribute to the reluctance in seeking dental consultations, including inadequate awareness of oral health importance, financial constraints, and discomfort from lengthy wait times. This research proposes an Expert System utilizing the Certainty Factor method to diagnose dental diseases efficiently. The Certainty Factor method quantifies the certainty or uncertainty of facts within expert systems. Through computational analysis of multiple symptoms, the system accurately diagnosed a patient with Tooth Faktur disease with a high certainty level of 98.8%. Such an expert system promises to significantly aid dental professionals in diagnosing diseases promptly, facilitating appropriate treatment interventions.

A Narrative Review: How to Optimize Program Keluarga Harapan in Addressing Nutritional Issues in Indonesia

Indonesia's Conditional Cash Transfer (CCT) program, Program Keluarga Harapan (PKH), aims to alleviate poverty and improve access to essential services. However, its effectiveness in addressing the root causes of poverty, malnutrition, and stunting has been subject to criticism, as it primarily focuses on alleviating immediate financial constraints. This literature review critically analyses the existing research on the PKH program's effectiveness in addressing nutritional issues in Indonesia. Literature selection, data extraction, and analysis were employed. Based on the literature search strategy and criteria, four key papers were collected. These studies indicated that CCT/PKH could not stand alone in tackling nutritional problems. There are several supporting components that should be taken into consideration in implementing the programme, including 1) the requirement of a standardized healthcare facility; 2) focusing on quality in small numbers rather than covering a wide scale with minimum impact; 3) supplementing CCT/PKH with health education and promotion programme; and 4) improving access to health and nutritional services. A whole-system approach, involving various stakeholders and integrating targeted interventions, has the potential to break the intergenerational cycle of poverty and ensure a healthier future for all Indonesians.

Assessment of life cycle cost of municipal roads projects: A case study from Palestine

The development of urban areas in Palestine is usually linked with the implementation of municipal road projects. The assessment of life cycle costs for municipal roads is presented in this research. This paper aims to highlight the main factors and their impact on the cost overrun during the different life cycle phases of road projects and therefore proposes recommendations that aim at reducing the differences between the estimated and actual costs. A study was conducted across twenty-six municipalities in the various regions of the West Bank. Over the study period of 2016 to 2018, there were 123 implemented road projects within these municipalities, where sixty-three of these projects surpassed their initial cost estimates and encountered cost overrun by an average of 26.9%. Among these, forty-seven projects were deemed suitable for research based on the assessment of the filled questionnaires by these municipalities. The main factors leading to cost overruns include challenging terrain, lack of specialized engineering offices for design and tender preparation, the timing of the tender release, awarding projects solely based on the lowest bids, changes during implementation, and financial constraints. Project cost measures that rely on professional management practices need to be considered in the planning designing, tendering, and implementing phases.

Characteristics and health problems of cancer patients admitted to palliative care service at the Oncology Hospital in Ho Chi Minh City, Vietnam: a cross-sectional study

Vietnam has very few study on health problems of cancer patients receiving palliative care. Therefore, this study aimed to estimate the prevalence of characteristics and health problems of cancer patients who admitted to the palliative care department of the Ho Chi Minh City Hospital of Oncology. A cross-sectional study was conducted in cancer patients newly admitted to the palliative care department. Descriptive statistics and multivariable linear regression models were performed to estimate the prevalence and factors associated with patient’s health problems. The main outcome is the severity of health problems, as measured with the African Palliative Care Outcomes Scale (APCA African POS). This validated questionnaire measures health outcomes of people severely affected by diseases such as cancer. A total of 134 patients enrolled in the study showed a mean total APCA African POS score of 32.2±10.8 of 67. The most common symptoms of severe intensity were pain (57.5%), mobility difficulties (45.5%) and weakness (42%). The study determined that inpatient status, the patient’s health condition, and the extent of caregivers’ involvement in social activities were significantly associated with increased APCA African POS score. Pain, weakness, mobility issues, reduced peace of mind, a sense of life’s value, lack of information, and financial constraints are prominent problems in cancer patients receiving palliative care in Vietnam. The initial assessment of the patient’s symptoms and problems prior to palliative care is essential to inform treatment discussions regarding medical prognosis in order to improve the patient’s quality of life and treatment outcomes.

The Effect of Financial Development on Industrial Green Technology Innovation Efficiency: Experience Analysis from 288 Cities in China

Green industrial growth is at the core of the green and low-carbon transformation of the real economy. Financial services provide new channels for green innovation financing for enterprises. How to utilize financial development to enhance the industrial green technology innovation efficiency (GTIE) is the focus of this paper. Using data from 288 cities in China, this paper employs the Super-SBM model and the Network DEA model to measure the industrial GTIE and then investigates the complex relationship between financial development and industrial GTIE. The results show that, overall, financial development can promote the industrial GTIE. And alleviating enterprise financial constraints and increasing investment openness are effective pathways for this influence. In addition, we discuss the heterogeneous effects of financial development on industrial GTIE across different types of cities, manifested as a dual effect of “supporting” and “predation”. In regions with stronger financial power such as coastal and eastern cities, the “predation effect” is stronger, while the “support effect” is stronger in inland and central/western cities. Furthermore, the expansion of city size weakens the impact of financial development on industrial GTIE. This paper points out that financial development plays a crucial role in enhancing the industrial GTIE, but excessive financial power may crowd out the positive impact of financial development on the industrial GTIE. When promoting financial development, it should be matched with region development to avoid crowding out investment in green innovation by enterprises.