Government Regulatory Agencies Research Articles

Unveiling Regulatory Operations: A Data Set of the Determinants, Process, and Outcomes of Product Defect Investigations by the U.S. Automotive Safety Regulator

Problem definition: The paucity of data on governmental regulatory agencies’ product safety defect investigations has restricted our knowledge about (1) the determinants of a regulator’s decisions to open or close an investigation, (2) the process it follows between opening and closing of an investigation, and (3) the outcomes of the investigation when it is closed. Methodology/results: The authors view a safety regulator’s opening and closing of a product defect investigation as a decision of interest to the operations management discipline. This data paper describes a rich, novel, and hand-collected data set of all investigations that the National Highway Traffic Safety Administration—the U.S. regulator for automobile safety—opened and closed against 187 manufacturers between 2009 and 2021. The authors provide two Microsoft Excel data files, one capturing data for the investigations opened and the other for the investigations closed. The data files enable researchers to address three sets of research questions. First, researchers can use the “Data on Investigations Opened” file to model the determinants of a regulator’s opening of a product defect investigation. Second, researchers can mine the textual variables from both files to identify the steps involved in the investigation process. They can also use the process variables included in the data to investigate the regulator’s efficiency in opening and closing investigations. Third, researchers can use the “Data on Investigations Closed” file to better understand when and why a regulator closes an investigation and the outcomes of the closed investigations. Managerial implications: The data files can also be valuable to nonacademic stakeholders (e.g., governmental organizations and regulators, journalists, liability lawyers, politicians, and safety advocates). The authors provide an open-access website that simplifies the use of the data for a nonacademic audience and allows them to draw insights from the data via graphs and tables. Supplemental Material: The online supplement is available at https://doi.org/10.1287/msom.2023.0705 .

Forecasting Bank Default Risk with Interpretable Machine Learning: The Study of Chinese Banks

ABSTRACT Bank occupies an important position in the financial system. The stable operation of the banking industry is not only one of the important factors in achieving sustainable economic growth but also related to the stability of the entire financial system. This research collects data from 507 banks in China from 2000 to 2021, uses the non-performing loan ratio as the measurement indicator of bank risk, and selects indicators from five levels (macroeconomic environment, industry economic environment, economic policy uncertainty, financial openness and bank financial status) On this basis, we use interpretable machine learning models to predict the bank’s default risk, analyze and compare the interpretable machine learning model and the post-hoc explainable methods. The results indicate that Provision Coverage (PC), Loan Provision Coverage (LPC), Liquidity Ratio (LR), and KOF Financial Globalization Index (KOFFiGI) have strong predictive capability for bank default risk. Our research can provide a reference for banks, government and financial regulatory authorities to construct the prediction model and indicator monitoring platform for bank default risk.

Evolutionary game and simulation study of public transport under government incentive and punishment mechanism.

Public transport plays an indispensable role in the whole public transport system. This paper makes an in-depth study on how public transport can provide passengers with higher service quality while meeting the needs of passengers. In order to achieve this research goal, this paper organically incorporates the three key subjects of government supervision, public transport and passengers into the research framework. Evolutionary game theory is used to construct the corresponding research model. It has been found that the decision-making behaviours of government regulators, public transport and passengers are intricately intertwined to influence each other in the evolutionary process. It is particularly noteworthy that the incentive or punishment measures adopted by the government have a great impact on the quality of public transport services. In addition, timely supervision and inspection of government regulatory authorities by higher authorities proved to be crucial for buses to provide stable and high-quality services. This study reveals the mechanisms of interaction between different subjects in the public transport system, particularly the government-guided incentive measures and supervision mechanism to promote the overall service level. To further support the research conclusions, this paper carries on the simulation analysis, and puts forward the countermeasures and suggestions for the bus to provide high-quality service according to the simulation results. These recommendations will help guide the government, public transport and passengers to make better decisions in the synergistic development process, thereby improving the overall level of service.

Review article: Comparison of cosmetic regulatory policies in various countries toward consumer protection

Cosmetics are various products that enhance physical appearance and care for the skin, hair, and body. Cosmetic regulation refers to the rules and regulations imposed by a country's government or health regulatory agencies to regulate the production, marketing, and use of cosmetic products. The purpose of writing this journal is to compare the regulation of cosmetic products in Indonesia with the regulation of cosmetic products abroad, and it is hoped that people will be more aware and understand the regulation of cosmetic products that have been established. The literature method is used to conduct a review article, and the criteria chosen are based on the originality and relevance of the reading. The result of this writing is that the requirements regarding labeling in various countries are similar, such as composition, country of manufacture, product name, instructions for use, full name and address of the owner of the notification number (manufacturer), manufacturing batch number, expiration date, and special precautions that must be considered when using. Consumers must consider different regulations for cosmetic products in each country. These must be considered when making or selling cosmetic products: import and export regulations, limited ingredients, and safety testing of cosmetic products. Keywords: Cosmetics, Export, Import, Labelling, Regulation

Cardiovascular adverse effects of antiviral therapies for COVID-19: Evidence and plausible mechanisms.

Antiviral therapeutics have made a critical contribution in mitigating the symptoms and clinical outcomes of the coronavirus disease of 2019 (COVID-19), in which a single-stranded RNA viral pathogen, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), causes multi-organ injuries. Several antivirals were widely prescribed to treat COVID-19, either through the emergency use authorization (EUA) by the governmental regulatory agencies (i.e., remdesivir, paxlovid, molnupiravir, and the SARS-CoV-2-targeted monoclonal antibodies - tixagevimab and cilgavimab), as well as the repurposed use of the existing antiviral or antimalarial drugs (e.g., hydroxychloroquine, chloroquine, and ivermectin). Despite their efficacy in ameliorating COVID-19 symptoms, some adverse side-effects of the antivirals were also reported during the COVID-19 pandemic. Our current review has aimed to gather and extrapolate the recently published information concerning cardiovascular adverse effects caused by each of the antivirals. We also provide further discussion on the potential cellular mechanisms underlying the cardiovascular adverse effects of the selected antiviral drugs, which should be carefully considered when evaluating risk factors in managing patients with COVID-19 or similar infectious diseases. It is foreseeable that future antiviral drug development assisted with the newest artificial intelligence platform may improve the accuracy to predict the structures of biomolecules of antivirals and therefore to mitigate their associated cardiovascular adversities.

Do fairness concerns matter for ESG decision-making? Strategic interactions in digital twin-enabled sustainable semiconductor supply chain

Spatial-temporal visibility and traceability in the digital twin enable semiconductor supply chain great transparency and efficacy, but also poses challenges to information disclosure. There is growing evidence that investment in digital twin technology is becoming crucial for improving environmental, social, and governance (ESG) ratings and mitigating risks within a sustainable semiconductor supply chain. Nonetheless, how fairness concerns impact the decision-making processes among different stakeholders remains inadequately understood. This paper presents an analytical analysis of the dynamic strategic interplay among semiconductor manufacturers, consumers, and government regulatory agencies (GRAs) utilizing the evolutionary game model. The aim is to investigate how long-term ESG strategies and fairness-oriented behaviors respond to government incentives. The findings imply that substantial investment demands can dissuade semiconductor manufacturers from delivering ESG services, while low tax rates may lead to their complacency and a subsequent lack of investment in ESG initiatives. Meanwhile, semiconductor manufacturers are more inclined to provide ESG services when the order loss ratio is low, and the tax rate is high, with strict regulations further amplifying this probability. Furthermore, consumers valuing fairness and equity tend to give positive feedback for basic services but is critical of ESG services due to issues with transparency in digital twin technologies. Addressing these issues extends beyond the scope of market incentives alone, requiring interventions from third parties such as government regulations, policy incentives, and enhanced data security measures.

Evaluation of Tobacco Tax Funding to Eradicate Illicit Cigarettes in Indonesia: A Qualitative Approach.

The illicit cigarette trade endangers public health because it increases access to cheaper tobacco products, hence fueling the tobacco epidemic and undermining tobacco control policies. The objective of this study was to evaluate the execution of an illicit cigarette eradication program under the jurisdiction of the local government in Indonesia. We sought to provide insights into the effectiveness of current policies and their impact on the illicit cigarette trade in line with the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) protocol to eliminate illicit trade in tobacco products. We conducted semistructured interviews with key policy-makers and semistructured FGDs with consumers and small- to medium-scale cigarette manufacturers at the district level. We indentified Pasuruan and Kudus as the districts or cities with the highest proportion of DBH CHT, and Jepara and Malang as a district with a highest illicit cigarette incident. We used reflective thematic analysis to identify the important opportunities and challenges facing illicit cigarette eradication programs in the three districts. We identified four opportunities and four challenges related to illicit cigarette eradication program implementation under the local government. The opportunities for illicit cigarette eradication lie in strong central government regulatory and multisectoral authority support, consumer awareness, and local governments' commitment to tobacco supply chain control. The key challenges facing illicit cigarette eradication include ineffective public dissemination programs, rapidly changing regulatory designs, consumers' preferences for illicit products, and a lack of industrial involvement in tobacco supply chain control programs. In addition to significant budget allocation and increasing consumer awareness, local programs to eradicate illicit cigarette production require considerable evaluation to rethink the program's design and external stakeholders' engagement within the local government's scope.

Decarbonizing Maritime Transport through Green Fuel-Powered Vessel Retrofitting: A Game-Theoretic Approach

Addressing the urgent global challenge of man-made greenhouse gas emissions and climate change necessitates collaborative action between shipping lines and government regulatory agencies. Aligning with the International Maritime Organization’s emissions reduction strategy, this paper presents a novel bi-level programming model that unifies these stakeholders. On the upper level of the proposed bi-level model, a number of shipping lines optimize retrofitting plans for their vessels to maximize economic benefits. On the lower level, the regulatory agency responds to the carbon reduction efforts by setting retrofitting subsidies and emission penalty rates. This framework represents a multi-leader–single-follower game involving shipping lines and the regulatory agency, and its equilibrium is determined through an equilibrium problem with equilibrium constraints (EPEC). The EPEC comprises multiple single-leader–follower problems, each of which can be formulated as a mathematical program with equilibrium constraints (MPEC). The diagonalization algorithm (DM) is employed for its solution. Simulation studies performed based on a ten-year planning period show that the proposed approach can effectively promote vessel retrofitting and the use of green fuels, which leads to an annual emission reduction of over 50%.

GENERIC DRUG REGISTRATION AND COUNTRY-SPECIFIC REQUIREMENTS IN SAUDI ARABIA, QATAR, BAHRAIN, AND OMAN

Objective: This research aims to examine the regulatory framework and prerequisites for generic drug registration in the Middle East and North Africa (MENA) region, with a specific focus on the countries that make up the Gulf Cooperation Council (GCC). This will enable a deeper understanding of the procedures, records, schedules, and discrepancies related to registration. Methods: The study makes use of an extensive examination of the rules, regulations, and practices about the registration of generic drugs in the MENA. Official government sites, regulatory agencies, and respectable trade journals for the pharmaceutical sector were used as sources of information. The main procedures for registering generic drugs were explained and inspected, encompassing the submission of documents, dossier preparation, bioavailability/bioequivalence tests, and application filing. Results: There are substantial growth prospects for generics. Research highlights the sequential registration process for generic drugs, submitting documents electronically using the Common Technical Document (eCTD) method. For registration to be successful, specific records and data such as bioavailability/bioequivalence research data must be provided. Conclusion: The effective registration of generic medications in the MENA region, especially in the GCC nations, depends on understanding and abiding by nation-specific regulatory standards. The research offers a tactical guide that outlines the essential procedures, paperwork needs, and regional variances in the generic medicine registration process. The goal is to offer affordable healthcare solutions by navigating the regulatory landscape meticulously and streamlining the approval and market entry process for generic pharmaceuticals in the MENA region.

Research Progress on Pollution Characteristics, Degradation, and Transformation of Typical PPCPs in the Process of Wastewater Treatment

Pharmaceuticals and personal care products (PPCPs) have received extensive attention as a new type of pollutant inin the 21st century, and the ecological and health risks caused by PPCPs have gradually been recognized by government regulatory agencies. Daily use of PPCPs has led to their frequent detection and high concentrations in the influent, effluent, and sludge of wastewater treatment plants, but traditional wastewater treatment processes can't remove them effectively. Most research about enhancing the removal of PPCPs through microbial degradation, photodegradation, and ozonation is still in the laboratory research stage, and the removal effects are not satisfactory when applied to actual sewage treatment. Therefore, the effective removal of PPCPs from domestic wastewater is a critical technical problem that urgently needs to be studied and solved in the coming years. At present, many scholars do not have a comprehensive understanding about the degradation and transformation behaviors of microbes, ultraviolet, and ozone for typical PPCPs in the wastewater treatment process, so it is necessary to conduct a systematic analysis and discussion. In this study, 16 typical PPCPs frequently detected in sewage treatment plants were selected as research objects through a literature review. The occurrence, removal characteristics, and sludge adsorption properties of typical PPCPs in wastewater treatment plants were analyzed and summarized. The degradation and transformation behavior of typical PPCPs under microbial, ultraviolet, and ozone treatments in the wastewater treatment process were also discussed. Finally, based on current research gaps, some research directions for the removal and transformation of PPCPs in wastewater were proposed:① investigation into the removal characteristics of PPCPs by actual biochemical treatment; ② study on the mechanism of microbial degradation and transformation of typical PPCPs during biochemical treatment; ③ study on the degradation and transformation mechanism of typical PPCPs by UV/ozone in an actual sewage system; and ④ research on the application technology of removing PPCPs from sewage via microbial degradation, photodegradation, ozone oxidation, etc. The relevant results of this study can provide a reference for the pollution control of typical PPCPs in the sewage treatment process.

The Challenges and Opportunities of Environmental Law Enforcement: A Systematic Review

Introduction: The formation of environmental law in many countries worldwide will unavoidably be promoted and coordinated by the non-governmental environmental groups currently in the world. In addition, it will benefit some developing countries where environmental protection is not a priority, environmental laws are not well-established, and oversight is not rigorous enough. Objective of research: This paper aims to explore the challenges and opportunities of environmental law enforcement in many countries in the world. Methods: A systematic review was used in this study. Based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses, this study followed the steps of a systematic review of the literature (PRISMA). The final sample of 35 publications was analyzed, considering the year of publication, methods utilized, geographical location, the topic of challenges, and opportunities in enforcing environmental law. Responding to environmental crime is largely the responsibility of government enforcement and regulatory authorities, whether at the national, subnational, or municipal levels. Results and Discussion: The primary reaction agencies in most areas of the world are police, customs and border protection, and environmental regulatory agencies. To assist developing nations in improving environmental legal instruments and supervision; to achieve the ultimate goal of regional and even global environmental law coordination; to train relevant persons, relevant agencies, and other topics in the necessary environmental skills and knowledge; and to transfer and teach environmental knowledge and law within a specified time frame. Conclusion: Although some countries have a thorough legislative structure for environmental protection, local government independence and law enforcement must be improved. The ability of environmental law to serve a purpose is critical in determining whether the measures should be fully implemented.

Decision Analysis of Cold Chain Supply Chain Based on a Stochastic Evolution Model

Accelerating the development of cold chain logistics for agricultural products is not only an objective requirement for the development of agricultural product circulation but also a necessary demand to promote rural revitalization and upgrade agricultural consumption. Addressing the evolutionary problems of cold chain transportation in uncertain environments, this study considers the actual stochastic disturbances in the cold chain supply chain system, introducing Gaussian white noise to reflect the random perturbations experienced during the evolution of the cold chain. A three-party stochastic evolutionary game model is established involving farmers, logistics enterprises, and government regulatory authorities. Based on this model, numerical simulation analysis is conducted to explore the effects of different factors such as the intensity of random disturbances and the loss transfer coefficient on the fluctuation of strategic choices of the entities and the convergence speed to a stable state during evolution. Finally, combining the results of numerical simulation, relevant policies and recommendations are proposed to provide insights and guidance for the development of cold chain logistics in agricultural products.

A systematic review of the impacts of oil spillage on residents of oil-producing communities in Nigeria.

Oil spillage is common in oil-producing communities of Nigeria, and it impacts negatively on the residents of these communities. This study analysed available research data on oil spillage incidents in these communities to determine their main causes and impacts on the residents. This study highlights the immediate and long-term consequences of oil spills on residents of oil-host communities in Nigeria. A systematic review of published studies was carried out, and 22 studies were identified from the literature search. The main causes of oil spills were identified as sabotage (87%), leakage from corroded pipelines (62%), and equipment failure (45%). Others were mystery spills and operational failures. Unemployment, abject poverty, marginalization, and inaction of government regulatory agencies are enabling factors for sabotage and vandalism of oil pipelines. It was found that exposure to oil spills impacts directly and indirectly on residents of oil-host communities, with accompanying health, socioeconomic, and environmental implications. Oil spills in these communities impact on all facets of their life, thereby infringing on their rights to existence and survival. The major interventions were targeted at improving health services, education, infrastructure, skill acquisition, and employment. These in turn reduced the occurrence of violence, insurgency, and human trafficking in the oil-producing communities. It is recommended that government regulatory agencies should be revamped and repositioned to effectively perform their duties. Interventions should be targeted at addressing the causes of agitation by indigenes by involving them in the decision-making process. Also, appropriate remediation strategies should be adopted to clean up the oil spills.

A stochastic and time-delay evolutionary game of food safety regulation under central government punishment mechanism

Food safety is a pressing issue affecting public health, and strengthening food safety regulation has become a widespread consensus. This study addresses the three-party game involving food production enterprises, third-party testing agencies, and government regulatory authorities. Considering the influence of random disturbances and time delays on the strategy-choosing and behavioral evolution of game players, a three-party stochastic evolutionary game model for food safety regulation with time delays is established. The stability of the model is analyzed by using Lyapunov's method, and the strategy evolution of the game players is investigated while combining numerical simulations. The study shows that the net benefit of the players' expected strategies is key in determining whether the overall game system can reach the optimal equilibrium. The level of penalties imposed by the central government on local government regulators is key to food safety. The main factors influencing the strategy-choosing of game players are the level of penalties imposed by the local government regulators on third-party testing agencies, together with the supervision costs of the local government regulators. Random disturbances have a certain impact on strategy-choosing of the game players, with a greater impact on testing agencies, followed by food production enterprises, and a weaker impact on government regulatory authorities. The time delay factors exhibit a certain delay effect on the evolutionary path of strategy-choosing among the game players, which aligns with the actual situation. The findings of the study have implications for food safety regulation.

Evolutionary Game and Simulation Analysis of Food Safety Regulation under Time Delay Effect

This study develops a tripartite evolutionary game dynamic model with a time delay effect to analyze the interactions among food enterprise, government regulatory, and food inspection agencies in managing food safety risks. This model enables government regulatory agencies to more accurately assess and predict food safety risks, thereby implementing more effective preventative measures, ensuring the maximization of policy effectiveness and reducing food safety incidents. The results emphasize the significance of recent company performance by showing that regulatory and inspection entities’ strategic decisions are significantly impacted by delay effects from food companies. This study also shows that negative self-feedback intensity drives food enterprises to develop safer products and encourages tighter government oversight. Recommendations include improving consumer reporting channels, changing government incentives and penalties, allocating resources efficiently, and advancing information technology to decrease the effects of time delays and improve food safety management. Governments can improve food safety regulation by using strategic insights from numerical simulations.

Evolution of stakeholder behavior strategies in the water quantity eco-compensation mechanism of water use coordination inside and outside the river

Eco-compensation is an important means to implement the rights and responsibilities of ecological protection and alleviate the water conflicts inside and outside the river. Previous studies focused on water conflicts among users, overlooking the government's regulatory role in the eco-compensation mechanism and the coordinating function of water transfer compensation fees among users. This study constructed a tripartite evolutionary game model involving government regulatory agencies (GRA), in-channel ecological environment water demanders (EEWD), and off-channel socio-economic water users (SEWU). The evolutionary stability strategies (ESS) of the GRA, EEWD, and SEWU and the evolutionary trend of the tripartite system were analyzed using the finite rationality evolutionary game model, and the sensitivity analysis of the influencing factors was conducted using the eigenvalues of the Jacobi matrix and numerical simulation. Taking the Bai River Basin in Nanyang, China, as the case study, the results showed that the GRA's rewards and penalties were controlled within a reasonable range can promote the enthusiasm of the participating subjects in the water quantity compensation mechanism; water quantity compensation standard for the SEWU was an important indicator for the smooth implementation of the compensation mechanism, the loss coefficient and the overall ecological benefit allocation coefficient of the EEWD will influence the formulation of water quantity compensation standards. This suggested that the GRA should enhance the management of the eco-compensation-related policies and laws and regulations, limit the SEWU's eco-compensation standard, and improve the net benefit of EEWD, to achieve the optimal eco-compensation strategy of ''supervision, protection, compensation''. The research results provide a reference value for the formulation of the water quantity eco-compensation mechanism for water use coordination inside and outside the river.

A Political and ethical landscape of brain organoid research

Human cerebral organoids (hCOs), produced in labs through directed cell culture of embryonic or induced pluripotent stem cells, closely replicate the 3-dimensional architecture of the human brain on a micro scale. This technology has been used to model neurological disease and shows promise to complement or supplant animal subjects in preclinical therapeutic investigation. However, attention must be paid by researchers and institutions to the various ethical concerns associated with hCO development. Human-animal chimeras produced through the grafting of hCOs have shown integration of neurological function, calling into question the moral status of both the animal chimeras and the organoid itself. Sensationalist reporting on such acts may also prompt public backlash, potentially jeopardizing hCO research and the promised benefits thereof. Moreover, concerns arise over privacy and consent for past and prospective donors of stem cells used to produce organoids. Genetic information may be considered privileged to the public domain and disrupted trust can reduce the supply of willing donors. Though hCOs are believed thus far to lack the capacity for consciousness and cognitive function, consideration must be given to their potential status as moral agents with further development or enhancement. Boundaries concerning organoids adhered to by researchers have been largely voluntary and informal to this point. By edict or by the power of the purse, governmental regulatory agencies ought to formalize necessary guidelines to ensure compliance with ethical principles and the adequate representation of all affected stakeholders in future decisions.

Strengthening the Downstream Supply Chain Management for Vaccines in the Philippines: Food and Drug Administration Perspective

The case study examines the framework established by the Food and Drug Administration Philippines to facilitate the Vaccine Supply Chain in the Philippines. During the pandemic, the said regulatory body must ensure its efficiency and safety. AnyLogistix, a system software employed in Post Market Surveillance for vaccines in Norway, was discovered during the research process. This software has facilitated the efficient assessment and monitoring of vaccines in Norway. Consequently, this case study explores the potential benefits of implementing anyLogistix in the Philippines to enhance drug and vaccine cold chain management. The Grounded Theory was used to assess the readiness and acceptance of local companies and organizations responsible for managing cold chain facilities and vaccines in the Philippines, to pave the way for future advancements in the field. Ultimately, the acceptability of the comparative study validates the approval of stakeholders, cold chain facilities, and government regulatory agencies in using anyLogistix as an automated system to efficiently monitor the post-market surveillance in the downstream stages of the supply chain for vaccines spearheaded by the Food and Drug Administration-Philippines. This study conducted a survey among 14 expert panelists both male and female in which 8 out of 14 panelists expressed dissatisfaction with the current system of how the government responds to pandemic outbreaks, 10 out of 14 panelists were not familiar with anyLogistix, and 11 out of 14 panelists shows interest in using this Norwegian software to improve the efficiency in responding to vaccine supply management issues, therefore, anyLogistix could be a good development that the Food and Drug Administration could utilize. Keywords: Strategic continuity, Business plan, Sustainability, Adaptability, Private Emission Testing Centers, Motor Vehicle Inspection System, Regulatory pressure, Leadership change, Policy shifts, Mixed methods research.

Good Governance and Tourism in South Asian Emerging Economies: The Mediating Role of Foreign Direct Investment

This study examined the role of good governance in promoting tourism in emerging South Asian countries and also tested the mediating role of foreign direct investments (FDI). The study used panel data collected from seven South Asian countries from 1996 to 2018. Panel data regression models were estimated to test the research hypotheses. The results showed that the country’s good governance has a positive and significant influence on tourism receipts and arrivals. Moreover, the mediation analysis results supported that foreign direct investments mediated the relationship between good governance indicators like government effectiveness, political stability, voice and accountability, and control over corruption and tourism. Based on the results, the study proposed the governance-led FDI and FDI-led tourism hypotheses, the study’s main contribution. The study has implications for the government regulatory agencies relating to governance, tourism departments, foreign prospect investors, and policymakers.

The Impact of Ownership Concentration on Corporate Financialization: The Mediating Effect of Financing Constraints

This article selects small and medium-sized listed companies (with stock codes starting with 002) as the research subjects, constructing a panel dataset spanning from 2017 to 2021, resulting in a total of 4324 observations. Through an extensive review and analysis of existing literature and relevant theories, it comprehensively explores the effects of equity concentration on corporate financialization and whether these effects differ in state-owned enterprises. Additionally, it investigates the moderating effects of financing constraints as a variable. After empirical analysis and robustness tests, the following conclusions are drawn: Equity concentration has a significantly negative impact on corporate financialization. Moreover, equity concentration exacerbates financing constraints, which, in turn, suppress corporate financialization. Furthermore, compared to state-owned enterprises, equity concentration has a more pronounced inhibitory effect on corporate financialization in non-state-owned enterprises. In the context of this study, state-owned enterprises in China are those in which ownership or control belongs to the state. The research on the impact of corporate financialization in this article can provide a theoretical basis for government and financial regulatory agencies to formulate financial policies in practical terms.