Incentive Effects Research Articles

Industrial Robot Use and Corporate Real Earnings Management: Evidence from China

Industrial robots (IRs) are becoming an increasingly important production technology in the global manufacturing industry. Using Chinese A-share listed manufacturing companies as a research sample, this study identifies that using IRs significantly restricts corporate real earnings management (REM). Specifically, IRs reduce information asymmetry, improve product market performance, and enhance the incentive effect of executive compensation, thereby weakening executives’ self-benefit motives and increasing the cost of implementing REM. These findings underscore the role of IRs in corporate governance, allowing for a better understanding of robots’ microeconomic consequences and guiding future corporate governance practices.

Information consistency and inhibition impact on diffusion in networks

This paper introduces the Principal-Agent mechanism to study the diffusion of information in complex networks. Hot list information is defined as principal information, information that is homogeneous with hot list information is defined as homogeneous agent information, and information that is heterogeneous with hot list information is defined as heterogeneous agent information. The theory of diffusion dynamics is used to study the phenomenon that homogeneous information promotes each other and heterogeneous information inhibits each other in the process of competitive diffusion of network information. Based on the traditional SIR model, this paper introduces the Principal-Agent mechanism, establishes the PA_SIR diffusion model and studies the mutual influence of information in the process of competitive diffusion of multiple information. The research shows that in the process of competitive diffusion of multiple information, principal information has a positive incentive effect on homogeneous agent information through people’s interest orientation, herd mentality and topic public opinion and has a negative incentive effect on heterogeneous agent information. Therefore, if you want your published information to attract more attention, the best release time is when homogeneous information is on the hot search list, which will help to attract people’s attention more quickly.

Effect of Integrated Customs Management Systems (ICMS) on Customs Duty Performance in Nairobi County, Kenya

Purpose: Tax is an important stream of revenue for government’s development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected to facilitate the government’s operations. This study sought to determine the of integrated customs management system on factors affecting customs duty performance Nairobi County, Kenya. The theories supporting the study is comparative theory of international trade. Methodology: The study employed explanatory research design. The target population of this study was 438 respondents comprising customs heads of departments, customs officers and customs agents at Embakasi Inland Depot, Nairobi. with a sample size of 209, out of which 173 respondents correctly filled the questionnaires and submitted them accordingly. The data collected was analyzed through descriptive and inferential statistics. A linear regression model was used. Results: The coefficient study showed that a unit change in ICMS increases customs duty performance significantly β =0.205 p-value =0.000<0.05. Conclusion: The study recommends that the KRA and the government of Kenya prioritize the continuous improvement of the Integrated Customs Management System (ICMS). Customs management should ensure full utilization of the ICMS by training customs officials and stakeholders, given its positive impact on duty performance. Future research may be carried out on the effects of tax incentives on Customs duty performance

Critical Success Factors for Building Resilience in Circular Supply Chains of Electric Vehicle Batteries: Evidence from an Emerging Country

Given the global expansion of electric vehicles (EVs), decision makers in developing and emerging countries must address important challenges across EV battery supply chains (EVBSCs) toward circularity. For example, batteries usually make up about 40% of an EVs’ value, and the race to achieve net zero emissions will further underscore the critical need for vital minerals and metals, such as lithium, cobalt, and graphite, necessary to make batteries. Stakeholders routinely question the resilience of circular (C) EVBSCs worldwide, from mining valuable materials to manufacturing the batteries necessary to support the widespread deployment of EVs. Identifying and investigating critical success factors (CSFs) of any system is a necessary step in achieving its targets. Little research, however, has been performed to investigate the CSFs for building resilience in EVBSCs, particularly those focused on building a circular supply chain. The goal of this research is, therefore, to systematically scrutinize the CSFs of resilient C-EVBSCs in Türkiye. To this end, a decision framework applying inter-valued neutrosophic ISM-MICMAC is proposed. Based on expert opinions, an application of the decision framework finds that effective government policies, directives, and incentives and well-established dynamic capabilities, are key driving CSFs to building resilience in a C-EVBSC.

Digitization and Green Technology Innovation of Chinese Firms Under Government Subsidy Policies

In the context of the digital economy, digital technology is an important driving force to promote green development and achieve the “dual-carbon goal”. Taking 1746 Shanghai and Shenzhen A-share enterprises from 2015 to 2022 as research objects, we empirically examine the relationship between government subsidies, digital transformation, and corporate green technology innovation. The study shows that (1) there is an inverted “U”-shaped relationship between government subsidies and corporate green technological innovation, while digital transformation plays a mediating role, and there is a difference between the quality and quantity of digital transformation in promoting green technological innovation. (2) Through the analysis of the moderating effect, it is found that market concentration has an obvious inhibitory effect between enterprise digital transformation and green technology innovation. (3) The study, by classifying the nature of enterprises, shows that the promotion effect of digital transformation on green technology innovation is weaker under heavily polluted enterprises than under non-heavily polluted enterprises, but the promotion interval of the relationship between government subsidies and green technology innovation is larger. Therefore, enterprises should make full use of digital technology to inject new impetus into their innovation activities, and the government should fully consider the appropriate space for enterprises to receive subsidies, make reasonable use of the incentive effect of government subsidies, and smooth the information docking channels for government and enterprise subsidies.

Assessing the environmental and economic viability of floating PV-powered green hydrogen: A case study on inland ferry operations in Türkiye

This paper conducts a comprehensive analysis of the environmental impacts and costs associated with a floating photovoltaic (FPV)-powered green hydrogen production system for a ferry line in Türkiye, utilizing life cycle assessment (LCA) and life cycle cost assessment (LCCA) methods. The methodology involves regridding daily data from 13 Global Climate Models (GCMs) to a consistent 1° × 1° grid, comparing this data with ERA5 datasets using various statistical methods, and identifying the top four GCMs. These models are then used to forecast ambient temperature, wind speed, and solar radiation for 2023–2052. Based on these forecasts, the FPV system's component sizes are determined. The LCA, based on the GREET 2022 database, reveals that green hydrogen is the most environmentally friendly option, reducing global warming potential (GWP) by 77.5 % compared to marine diesel oil (MDO 0.1 % S), with more than 62 % of GWP for the hydrogen-powered ferry attributed to PV production. LCCA results indicate that, without subsidies, green hydrogen is not economically feasible for the selected inland ferry line. Carbon taxes are insufficient to bridge cost differences, highlighting the need for financial incentives. Reducing corporate tax to 10 % is identified as the most effective incentive, and the Production Tax Credit (PTC) option maximizes internal rates of return for green hydrogen producers. This study provides valuable insights for sustainable energy choices in maritime transport, emphasizing the importance of both environmental and economic considerations.

Research on the green development path of prefabricated building industry based on intelligent technology

PurposeIn order to make the construction industry develop in the direction of greening, this paper analyzes whether the application of intelligent technology in prefabricated buildings can achieve carbon emission reduction, starting from the problems of weak technology and insufficient encouragement policies in the prefabricated building industry. It also designs dynamic and adjustable incentives for the smart transformation of prefabricated buildings and makes recommendations to facilitate the transformation of assembly manufacturers into “smart factories”.Design/methodology/approachThis paper takes the intelligent technology for carbon reduction, energy efficiency and policy design in the prefabricated buildings industry as the starting point. Based on in-depth expert interviews and questionnaire survey data, a linear multiple regression model is used to establish an association network of intelligent technology in the production and transportation, construction, operation and maintenance, demolition and scrapping stages. On this basis, an evolutionary game theory is used to construct a smart transformation and carbon reduction utility game model between the government and manufacturers, and relevant suggestions for smart empowerment of green construction development technology combinations and policy settings are proposed.FindingsAn assembly manufacturing plant with smart empowerment is an important way to achieve green and sustainable development in the construction industry. Among them, BIM and IoT have made a greater impact on carbon emission reduction of prefabricated buildings in all stages of the whole life cycle. The government’s proposed energy efficiency incentives and environmental tax amount will effectively increase companies' motivation for smart transformation of prefabricated buildings. However, when the environmental tax amount is low, the government should strengthen the regulation of the industry in order to increase the speed of smart transformation of assembly manufacturers. Therefore, a reasonable setting of the environmental tax rate and energy-saving incentives and flexible adjustment of the regulatory efforts can maximize the functional utility of the government in the process of smart transformation.Research limitations/implicationsThis paper focuses on the impact of intelligent technologies on the overall carbon emissions of the industry and provides an evolutionary analysis of the strategic game between the government and assembly manufacturers, the main players in the smart transformation process of prefabricated buildings. However, smart technologies for different categories of assembly manufacturing plants and strategic options for a wider range of stakeholders have not been examined in depth.Originality/valueDifferent from existing research, this study focuses on exploring the strategic game between the government and assembly manufacturers in the smart transformation of prefabricated buildings. It provides an innovative explanation of the connection between intelligent technology and carbon emissions. The study develops an evolutionary game model for both parties, addressing the research gap on the combined effects of policy incentives and intelligent technology on carbon reduction and efficiency improvement in the prefabricated buildings industry. This research not only offers practical reference for the government in designing incentive mechanisms and establishing regulatory systems but also provides feasible practical guidance for the smart transformation and carbon reduction efforts of assembly manufacturing plants.

Examining the incentive effects of athlete compensation: a combined analysis using SEM and fsQCA

In the context of competitive sports, the evaluation of compensation incentive effectiveness is key to the optimization of compensation systems for athletes. This study creates a model of the athlete compensation incentive effect from single and multinomial grouping perspectives, combining empirical research (SEM) with fuzzy-set qualitative comparative analysis (fsQCA) based on a sample of 352 validated data. The results lead to two findings. First, athletes’ direct economic compensation, direct non-economic compensation, and indirect non-economic compensation have a significant positive effect on the incentive effect of compensation. Second, that the incentive effect of high compensation has two configurations, namely “economic value” and “economic environmental value.” It seems that the effective combination of compensation factors can enhance the motivation effect in a “different way.”

Online Versus Offline eSports Tournaments: Prize Structure and Individual Performance

This article examines whether the online context affects tournament theory incentive mechanisms. It investigates the impact of prize structure on player performance in eSports under online and offline conditions. Using a quasi-experimental approach with data from the Counter-Strike Global Offensive eSports scene, the study finds that high prize distributions increase individual output in both settings, but the incentive effect is weaker in online events.

Public Good Superstars: a Lab-in-the-Field Study of Wikipedia

Abstract Many field public goods are provided by a small number of contributors: the ‘superstars’ of their respective communities. This paper focuses on Wikipedia, one of the largest online volunteering platforms. Over 9 consecutive years, we study the relationship between social preferences – reciprocity, altruism, and social image – and field cooperation. Wikipedia editors are quite prosocial on average, and superstars even more so. But while reciprocal and social image preferences strongly relate to contribution quantity among casual editors, only social image concerns continue to predict differences in contribution levels between superstars. In addition, we find that social image driven editors – both casual and superstars – contribute lower quality content on average. Evidence points to a perverse social incentive effect, as quantity is more readily observable than quality on Wikipedia.

ESG performance and green innovation of Chinese enterprises: Based on the perspective of financing constraints

Sustainable development needs to rely on green innovation. Enterprise ESG performance rating to alleviate the information asymmetry between enterprises and investors, for the green innovation provides development opportunities. However, there is a lack of research on the mechanism of the two based on the perspective of financing constraints. Therefore, considering the theories of sustainable development, green innovation, financing constraints and stakeholders, the basic mechanism and non-linear mechanism of ESG and green innovation are explored, aiming to provide reference for playing the role of ESG performance in promoting green innovation. The results show that better ESG performance can significantly promote the output of green innovation, and this promoting effect exists for both high-end green innovation and low-end green innovation, and its main channel is to alleviate financing constraints. In addition, this incentive exists a double threshold of digital finance and a single threshold of enterprise scale. Perfect digital finance and larger enterprise scale will strengthen the incentive effect of enterprise ESG performance on green innovation output. Considering financing constraints, this study further clarifies the relationship between enterprises ESG performance and green innovation, enriching the theoretical framework of green innovation and offering a new pathway for advancing green innovation among Chinese enterprises.

Iranian single-child couples’ perceptions and experiences regarding childbearing incentives

BackgroundThe single-child issue is a significant contributor to population decline, which adversely affects both parents and children. Despite government-approved incentives, the single-child problem remains a major population challenge. This study was conducted to explore the perceptions and experiences of single-child couples regarding childbearing incentives.MethodsThis qualitative study used conventional content analysis and was performed on 21 single-child couples in Mashhad, North East Iran, selected through purposive sampling from urban health centers. Data were collected using semi-structured interviews until saturation was reached. The data were analyzed using the Elo and Kyngas (J Adv Nurs 62(1):107-15, 2008. 10.1111/j.1365-2648.2007.04569.x) method with MaxQDA10 software.ResultsTwo generic categories emerged from the data analysis including (1) “Advertising and providing information as an influencing factor to encourage childbearing”, which included two subcategories of “Attention to the key lever of advertising” and “Necessity of adopting advertising policies and creating a culture of respecting maternal role”, and (2) “Focusing on effective incentive policies”, which consisted of three subcategories of “Adopting incentive policies to reduce people’s financial problems”, “Avoiding punitive policies” and “Need to adopt incentive policies for working women and elites”.ConclusionsIncentive policies should focus on the culture building of the general public, implementing effective incentive policies, and addressing economic challenges, particularly for specific groups such as working women and higher education students. In addition, a public mobilization effort is needed to effectively implement population laws.

Improving access to syphilis screening among unhoused people in Yolo County

Background: This study aimed to increase syphilis screening rates amongst unhoused residents of Yolo County, California, through the implementation of plan-do-study-act (PDSA) cycles. Yolo County has a strategic goal to eliminate congenital syphilis cases. Homelessness is a known risk factor for syphilis. Methods: The primary researcher was embedded in a street medicine team. Using quality improvement tools like stakeholder interviews, workflow diagrams, and best practices from literature, we outlined the team's workflow for syphilis screening and developed ideas to improve uptake and expand capacity. The most effective cycle implemented gift card incentives for syphilis screening. During the patient intake we offered the option to receive a syphilis test, informing the patient of the gift card incentive. Results: Prior to gift card incentives, the team screened 1.6 patients on average per clinic for a total of 30 patients screened in April to June of 2022. After the gift card incentive was implemented, the team screened 3.0 patients on average per clinic, screening a total of 223 patients from July 2022 to May 2023. The intervention produced an 87.5% increase in screening rates (P=0.0094). The data showed a significant increase in syphilis testing upon implementing the gift card incentive program. Conclusion: These findings contribute to evidence supporting the use of patient incentives for public health prevention measures. This model could be applied to other populations to increase health screening participation. More research is needed on the effect of gift card incentives on confirmatory testing and treatment rates for syphilis.

Early effect of a financial incentive for surgeries within 48 h after hip fracture on the number of expedited hip fracture surgeries, in-hospital mortality, perioperative morbidity, length of stay and inpatient medical expenses.

To examine the early effects of the financial incentive (FI) implemented in April 2022 in Japan for surgeries within 48 h after hip fracture (HF) in patients aged 75 and older on expedited HF surgery (EHFS), in-hospital mortality, perioperative morbidity, length of stay (LOS) and inpatient medical expenses (IMEs). We conducted a quasi-experimental study and constructed segmented regression models for controlled interrupted time-series analyses, assuming a Poisson distribution, to evaluate the slope changes (SCs) in the outcomes of interest before and after the introduction of the FI. We used Diagnosis Procedure Combination data from the Quality Indicator/Improvement Project database between 1 April 2018 and 31 March 2023. Patients aged 50 years or older who were hospitalized with a diagnosis of HF and underwent surgery for HF were included. A total of 82,163 patients from 183 hospitals were included in the analyses. In the age group of 75 years and older, increasing trends in the number of EHFSs were observed even before the introduction of the FI, while before and after the introduction of the FI, none of the SCs in the monthly number of EHFSs within 2 days, within 1 day, and on the day of admission were statistically significant (incident rate ratio: 1.0043, 95% confidence interval [CI]: [0.9977-1.0111], 1.0068 [0.9987-1.0149], 1.0073 [0.9930-1.0219]). Nor were any of the SCs in in-hospital deaths, perioperative complications, LOS, and IMEs statistically significant. Additionally, there were no statistical differences in the SCs for any of the outcomes between the two age groups. This study suggested that there was no significant, short-term effect of the FI for surgeries within 48 h after HF on any of the outcomes of interest.

The impact of industry technology complexity on audit quality

With the continuous upgrading of Chinese industries, industry technology complexity has increased dramatically, to which audited units and audit subjects have adaptive responses, affecting audit quality. However, relevant studies have not been conducted. This paper takes A-share listed companies from 2007 to 2021 as a sample to investigate the impact of industrial technology complexity on audit quality and its mechanism. It is found that industry technology complexity can significantly enhance audit quality; in enterprises at the front-end of industrial technology, industry technology complexity has a more significant role in promoting audit quality. Adopting the demonstration zone for the transfer and transformation of scientific and technological achievements as an exogenous impact policy, the study finds that the impact of industry technology complexity on audit quality still holds. Further research finds that the adaptation of audited units and audit subjects to industry technology complexity has a positive incentive effect on audit quality. The findings extend the audit consequences of industrial technology complexity and provide empirical evidence for the role of industrial technology complexity in enhancing audit quality.

Pengaruh Insentif Pajak terhadap Inovasi dan Kinerja Perusahaan: Tinjauan Literatur

In the era of globalization, many countries have introduced tax incentives designed to promote technological innovation and economic growth. This paper aims to examine global tax incentive policies in-depth, with a particular emphasis on their effectiveness in enhancing corporate innovation capabilities and performance. The findings indicate that the impact of such strategies on innovation and performance varies across different types and sizes of companies. While incentives provide a positive stimulus for participants, several challenges in policy design and implementation were identified, including a lack of adequate motivational measures and the complexity of policy execution. By comparing various approaches, this review highlights key elements of an effective tax incentive policy, such as policy flexibility, clear objectives, and support for strong internal management within companies. These insights offer new perspectives for theoretical research and practical recommendations for policymakers and business leaders to refine their tax strategies. Ultimately, these approaches are aimed at establishing conditions that foster technological advancement and economic growth.

A Bi‐level stacked LSTM‐DNN‐based decoder network for AGC dispatch under regulation market framework in presence of VPP and EV aggregators

AbstractThe consideration of mileage settlement in the frequency regulation market has encouraged fast‐acting units, such as converter‐interfaced generators (CIG) and electric vehicle stations, to actively participate in load‐generation balancing through automatic generation control (AGC). Conventional frequency regulation faces challenges in coping with the growing variability of CIGs and also lacks effective incentives for rapid‐responding units. In this context, a bi‐level AGC dispatch approach based on a stacked long short‐term memory (LSTM)‐deep neural network (DNN)‐based decoder framework is proposed for a power system comprising diverse CIGs forming a virtual power plant and electric vehicle aggregators. The proposed decoder network is comprised of stacked LSTM and DNN, wherein the cascaded LSTM layers are introduced to accurately capture temporal information from time series input. The inclusion of a dropout mechanism further enhances the model’s generalisability in unforeseen environments. The proposed dispatch framework uses mileage‐based compensation criteria to optimally allocate instructions among various participating units with differing regulation characteristics. The performance of the proposed method is analysed by considering packet loss, delay, unexpected generation failure, and denial of service attacks. The evaluation of the proposed approach reveals its superior performance compared to proportionality, particle swarm optimisation, decision tree, and DNN methods.

Internal Drive or External Pull: Independent Innovation and Sustainable Growth of Chinese Agricultural Enterprises

The independent innovation of agricultural enterprises ensures national food security through enhancing food production efficiency and optimizing food nutritional quality. Independent innovation is an important way for the sustainable growth of agricultural enterprises. However, in this process, there are issues such as long cycles and high risks. Based on this, using the panel data of China’s listed agricultural enterprises from 2007 to 2021, this study empirically examined the impact of independent innovation on the sustainable growth of agricultural enterprises, as well as the moderating effects of internal drivers (digital transformation) and external pull factors (government subsidies) through a two-way fixed effects model. The findings are the following: (1) The impact of independent innovation on the sustainable growth of agricultural enterprises exhibits an “inverted U-pattern”. When the R&D investment of agricultural enterprises accounts for 77.85% of operating income, the sustainable growth ability of agricultural enterprises is the highest. (2) Compared with large agricultural enterprises, small and medium-sized agricultural enterprises reach the threshold of independent innovation ability later, and the incentive effect range of independent innovation is longer. (3) Independent innovation exerts a more significant “inverted U” effect on the sustainable growth of non-state-owned agricultural enterprises and agricultural enterprises in the mature stage, while its impact on the sustainable growth of state-owned agricultural enterprises and agricultural enterprises in the growth and decline stages is not significant. (4) Government subsidies can help enhance the positive impact of independent innovation on the sustainable growth of agricultural enterprises when it does not exceed the threshold but cannot alleviate the negative impact of independent innovation on the sustainable growth of agricultural enterprises when it exceeds the threshold; investment in digital transformation not only helps to enhance the positive impact of independent innovation on the sustainable growth of agricultural enterprises when it does not exceed the threshold but also helps to alleviate the negative impact of independent innovation on the sustainable growth of agricultural enterprises when it exceeds the threshold. The research results provide data support for agricultural enterprises to carry out innovation activities under internal drive and external pull. At the same time, it is of great significance for the national implementation of the strategy of storing food in technology and food security strategy.

The collusion behavior of venture capitalists and entrepreneurs based on “guanxi”: evidence from China

The role of venture capital in promoting entrepreneurship and funding innovation cannot be underestimated. However, it is important to acknowledge noteworthy concerns associated with collusive behavior in the venture capital process. “Guanxi” is a relatively intimate and closed social relationship, which can impact venture capital through trust and social obligations. Drawing on the theories of unethical pro-relational behavior and social networks, using data from GEM-listed companies supported by venture capital from 2009 to 2021, this research investigates the phenomenon of collusion behavior between venture capitalists and entrepreneurs, with a particular focus on the influence of “guanxi”. The research finds that the presence of “guanxi” between venture capitalists and entrepreneurs tends to facilitate collusive behavior. Specifically, “guanxi” tends to increase entrepreneurial self-interest behavior, and venture capitalists’ returns, infringe upon minority shareholders’ interests, and increase corporate operational risk. Moreover, the study further explores the moderator effect of equity incentives on such collusion behavior. This research not only enriches the theoretical framework of the relationship between “guanxi” and venture capital activities but also provides insight into the ethical implications associated with “guanxi”, contributing to the broader literature on social relationships and unethical behavior.

Financial hedging incentive contracts in global supply chains: A distributionally robust approach

AbstractThis paper developed a global supply chain with a supplier and a retailer in different countries. When exchange rate and demand risks are concentrated in retailer, a distributionally robust approach is used to formulate an optimized robust ordering strategy. Furthermore, the effect of financial hedging incentive contracts on the robust decisions and the profits of the global supply chain is explored. Our findings show that the correlation between exchange rate and demand does not affect the robust decisions of retailer. The effectiveness of financial hedging incentive contracts depends on the trade‐off between transaction costs of financial hedging and the degree of supplier incentives and the growth rate of order quantity.