Information Disclosure Mechanism Research Articles

Research on investment returns prediction based on machine learning

With the development of the Internet and the continuous improvement of the information disclosure mechanism of the securities market, individual investors have more and more ways to obtain investment information, including company research reports from analysts. However, analysts have mixed qualifications and publish a huge number of reports. For retail investors, how to analyze and distinguish these reports and make informed investment decisions based on them has become the key to profiting in a securities market where information is asymmetrical and risks and opportunities coexist. This is a priority that every retail investor should prioritize. In recent years, machine learning has become increasingly widely used in the financial sector, especially in the prediction of return on investment. In this work, a most advanced machine learning model Transformer is used, which is widely used in a variety of scenarios due to its advantages in processing sequence data. The Transformer model can effectively process and analyze large-scale financial time series data through the self-attention mechanism to capture subtle fluctuations and potential correlations in the market. We designed a Transformer-based architecture to combine multi-source data such as market macroeconomic indicators, stock trading data, and social sentiment analysis for comprehensive learning. Experimental results show that the model significantly improves the accuracy of investment return prediction and provides investors with efficient analysis tools.

Analysis of ESG information-disclosure strategies considering different risk-appetite investors

In response to the investment market and public, over 1,000 Chinese listed companies have started to provide environment, society, and governance (ESG) information of their own accord till 2022. How to develop an effective ESG information disclosure mechanism is important for providers of reliable external financing. Here, we designed a risk-management model to describe providers’ information disclosure strategy decisions under different risk-appetite investors, and analyse how information effectiveness, the information sensitivity and risk aversion of investors, and rating agency accuracy affect optimal ESG information-disclosure strategies. We found that: (1) Providers adopt appropriate under-disclosure strategies that can reduce their information collection and disclosure costs, thus maximising the benefits of ESG information disclosure; (2) Investors’ information sensitivity and risk aversion will affect the space for enterprises to adopt under-disclosure strategies; (3) More professional rating agencies can provide stronger credit backing for ESG information, prompting providers to reduce disclosure information.

Do not walk into darkness in greenhushing: A cross‐cultural study on why Chinese and South Korean corporations engage in greenhushing behavior

AbstractThis study focuses on exploring the factors influencing why companies engage in greenhushing decisions in the cultural backgrounds of China and Republic of Korea. Structural equation modeling analysis indicates that in these two countries, reputational risk not only directly leads to corporate greenhushing behavior, but also exerts its influence through conservatism as a mediating factor. Reputational risk causes companies to exhibit conservatism, which in turn leads to the adoption of greenhushing behavior. Furthermore, tests for moderation effects revealed that, in the Chinese sample data, a transparent information disclosure mechanism has the ability to mitigate the impact of reputational risk on corporate greenhushing behavior, as well as to alleviate the influence of conservatism on corporate greenhushing behavior. In the South Korean sample data, a transparent information disclosure mechanism can moderate the impact of reputational risk on conservatism and corporate greenhushing behavior. Finally, the fsQCA method is tested to derive the different configurations and pathways that lead to the strong emergence of greenhushing behavior in companies in China and Republic of Korea, as well as to identify the most influential pathways. This study provides substantial theoretical support for further exploration of the causal mechanisms of corporate greenhushing behavior and promotion of cross‐cultural comparisons and learning in the international environmental management field. In addition, provides rich empirical support and theoretical guidance for corporate environmental management decision‐making and policy formulation. The findings highlight the further standardization and strengthening of transparent information disclosure mechanisms will be an important direction for future environmental policy development.

Research on the Impact of Investor Sentiment on IPO Underpricing of GEM

Abstract IPO underpricing appears when its closing price far exceeds issuance price on the first day of stock issuance, which is a common phenomenon all over the world. This paper first expounds the related concepts of investor sentiment and IPO underpricing, and then introduces the two perspectives of behavioral finance. Based on these two perspectives, this paper expounds the impact path of investor sentiment on IPO underpricing. Combined with the characteristics of investor sentiment, the proxy indicators of the composite indicators are selected, and the comprehensive indicators of investor sentiment are obtained by using the principal component analysis method, which are combined with the financial indicators that can reflect the market conditions. Taking the data of GEM stocks issued from January 2015 to December 2021 as the research sample, SPSS is used for stepwise regression analysis. From the results of the empirical research, there is a positive correlation between investor sentiment and IPO underpricing. Finally, this paper puts forward suggestions from two aspects: first, we should give correct and reasonable guidance to investors, and implement access policies; Second, in terms of macro policies, we should strengthen the audit of listed companies, establish an authoritative information disclosure mechanism, and put the expansion of GEM on the agenda. JEL classification numbers: G14. Keywords: GEM, Investor sentiment, IPO underpricing, Behavioral finance.

Delegation and salary information disclosure strategies of customer acquisition and retention

Purpose The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism. Design/methodology/approach This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy. Findings The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market. Originality/value This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.

Population mobility : spatial spillover effect of government health expenditure in China

ABSTRACT Background Since the 20th century, pursuing Universal Health Coverage (UHC) has emerged as an important developmental objective in numerous countries and across the global health community. With the intricate ramifications of population mobility (PM), the government faces a mounting imperative to judiciously deploy health expenditure to realise UHC effectively. Objective This study aimed to construct a comprehensive UHC index for China, assess the spatial effects of Government Health Expenditure (GHE) on UHC, and explore the moderating effects of PM on this association. Method A Dynamic Spatial Durbin Model (DSDM) was employed to investigate the influence of the GHE on UHC. Therefore, we tested the moderating effect of PM. Results In the short-term, the GHE negatively impacted local UHC. However, it enhanced the UHC in neighbouring regions. Over the long term, GHE improved local UHC but decreased UHC in neighbouring regions. In the short-term, when the PM exceeded 1.42, the GHE increased the local UHC. Over the long term, when the PM exceeded 1.107, the GHE impeded local UHC. If the PM exceeded 0.91 in the long term, the GHE promoted UHC in neighbouring regions. The results of this study offer a partial explanation of GHE decisions and behaviours. Conclusions To enhance UHC, a viable strategy involves augmenting vertical transfer payments from the central government to local governments. Local governments should institute healthcare systems tailored to the urban scale and developmental stages, with due consideration for PM. Optimising the information disclosure mechanism is also a worthwhile endeavour.

Achieving Public Information Transparency in The Dissemination of Local Regulations

Comparing the disclosure of public information regarding the dissemination and publication to the public of newly enacted rules, setting Indonesia and the Netherlands as parameters is interesting as the legal cultures of both countries are intertwined and legal perspectives are constantly evolving. Despite differences in the rule of law, both countries have similar regulatory frameworks. This research uses a normative juridical writing method with a literature study to analyze the relationship between good governance and public information disclosure, including definitions, indicators, objectives, and important factors that influence the concept. The aim is to serve as a comparison parameter for a more efficient information disclosure mechanism. In Indonesia, the role of DPRDs is closely related to the issue of public information disclosure, as DPRDs have a dominant role in authority. Meanwhile, in the Netherlands, the local government takes the lead in setting regulations. Nonetheless, both countries emphasize the importance of checks and balances through the establishment of RvD and KIP, to oversee and integrate the aspirations of the community. The results of this study suggest that public information disclosure is important in both Indonesia and the Netherlands, as demonstrated by regulations that prioritize transparency, accountability, public participation, responsiveness, and the rule of law in governance. This commitment to openness aims to bridge the gap between public expectations and government actions. And in conclusion, the harmony between the process of forming regulations involving the DPRD as a representative of the people's voice and information disclosure is interrelated in public services towards the achievement of good governance.

When Congestion Games Meet Mobile Crowdsourcing: Selective Information Disclosure

In congestion games, users make myopic routing decisions to jam each other, and the social planner with the full information designs mechanisms on information or payment side to regulate. However, it is difficult to obtain time-varying traffic conditions, and emerging crowdsourcing platforms (e.g., Waze and Google Maps) provide a convenient way for mobile users travelling on the paths to learn and share the traffic conditions over time. When congestion games meet mobile crowdsourcing, it is critical to incentive selfish users to change their myopic routing policy and reach the best exploitation-exploration trade-off. By considering a simple but fundamental parallel routing network with one deterministic path and multiple stochastic paths for atomic users, we prove that the myopic routing policy's price of anarchy (PoA) can be arbitrarily large as the discount factor approaches 1. To remedy such huge efficiency loss, we propose a selective information disclosure (SID) mechanism: we only reveal the latest traffic information to users when they intend to over-explore the stochastic paths, while hiding such information when they want to under-explore. We prove that our mechanism reduces PoA to less than 2. Besides the worst-case performance, we further examine our mechanism's average-case performance by using extensive simulations.

Environmental Regulation, Environmental Policy Complexity and Technological Innovation Efficiency

Abstract Previous studies on the relationship between environmental regulation (ER) and technological innovation efficiency of defence industry (TIE-DI) mainly focus on variability and complexity, while few empirical studies have incorporated environmental flexibility into models, and most of them are based on questionnaires. Therefore, this paper takes environmental regulation and environmental policy complexity (EPC) as the entry point, so as to discuss the feasibility of improving the technological innovation efficiency of China’s defence industry enterprises (CDI), which aims to empirically test the mechanism of ER and EPC on improving the efficiency of applied technological innovation of China’s defence industry enterprises. The research conclusion provides sufficient theoretical basis and empirical support for strengthening the technical innovation efficiency support, standardising the market order and the market leading, establishing the information disclosure mechanism and improving the internal control of industrial enterprises.

The Impact of ESG Information Disclosure Mechanism on the Green Development of China's Banking Industry

Practice ESG information disclosure is of great significance to promote green development of China's banking industry and achieve our country's double carbon goal. Firstly, based on the realistic background of the steady progress of ESG information disclosure and the green development of China's banking industry, the paper systematically combs the mechanism of the influence of ESG information disclosure on the green development of China's banking industry. Then, through correlation analysis, multiple linear regression analysis, structural equation model and other data analysis methods, explore the influence factors of ESG information disclosure on the green development of the four banks and their influence strength. Finally, it puts forward some feasible suggestions based on the research results and the actual situation to help our country achieve the Carbon peaking and carbon neutrality goals.

On the Protection of Personal Privacy in Government Information Disclosure in Public Health Emergencies

The new crown epidemic that swept the world in 2020 has brought huge challenges to the social governance of the Chinese government. In the face of this public health emergency, on the one hand, information disclosure has become a "special medicine" for the government to ensure the safety of people's lives and maintain social stability; How to balance government information disclosure and personal privacy protection in a health event? How can the government information disclosure mechanism be further improved under the perspective of personal privacy protection? How to improve the relief system for government information disclosure infringing personal privacy? The existence of these problems actually puts forward requirements for the improvement of government information disclosure in terms of personal privacy protection in public health emergencies in China, that is, to improve the review mechanism, supervision and accountability mechanism of government information disclosure, clarify the scope of personal privacy disclosure, improve The relief system of personal privacy, thus blazing a path of balance between government information disclosure and personal privacy protection in public health emergencies.

Status Quo and Improvement Path of Social Responsibility Information Disclosure in Corporate Development Management

Fundamental is a sound social responsibility information disclosure mechanism to prosper large-scale businesses. This paper dissected the correction between Fosun Pharma s performance of corporate social responsibility and its advances, as corporate social responsibility now has jostled for public attention at home and abroad. Efforts were invested in analyzing the disclosure of social responsibility accounting information by the representative Fosun Pharma on the basis of the theory of corporate social responsibility and stakeholder theory. The company failed to prepare a well-functioning strategic CSR in the process of fulfilling its social responsibility, and showed certain deficiencies such as insufficient disclosure of social responsibility quantitative information, delayed disclose of negative information, onefold disclosure form, and defective control environment, revealed the investigation. Meanwhile, it suggested that progress should be made in cultivating the awareness of corporate social responsibility information disclosure, quantifying indicators as much as possible, enriching information disclosure form, and shaping a good control environment for social responsibility performance. This research not only enriches the research literature on the relationship between CSR and corporate development, but enlarges the variable scope of corporate social responsibility, which is of certain practical significance for corporate development management and the establishment of a sound social responsibility management mechanism.

Media Coverage and Labor Investment Efficiency: Evidence from China*

AbstractUsing 2.09 million pieces of media coverage associated with Chinese firms during 2006–2019, we find a significantly positive relationship between media coverage and labor investment efficiency. Both newspaper and online media coverage can effectively reduce firms' labor over‐investment and under‐investment. Our results are robust after addressing a range of endogeneity concerns. Further analyses show that the positive relationship between media coverage and labor investment efficiency is more pronounced for firms with higher labor cost stickiness or when human capital is more important to the firm's business model. Mechanism analyses reveal that media coverage improves labor investment efficiency through the compensation incentive mechanism, supervision mechanism, and information disclosure mechanism.

Research on Voluntary Carbon Information Disclosure Mechanism of Enterprises from the Perspective of Stakeholders—A Case Study on the Automobile Manufacturing Industry

As the primary source of carbon emissions, enterprises must work hard to save energy, reduce emissions, and disclose timely carbon information to the public. As a key means of communicating carbon management performance to stakeholders, carbon information disclosure is directly tied to the future sustainability of enterprises. Based on panel data of 118 listed firms in the automotive manufacturing industry from 2017 to 2021, this study rates the sample companies' quality of carbon information disclosure. The impact of the government, creditors, media, employees, and suppliers on such disclosure is also examined from the stakeholders' standpoint. The findings reveal that: (1) Although there has been a gradual increase in the degree of disclosure, overall levels are still low, and the willingness to voluntarily disclose is insufficient. (2) When other variables are neglected, the government, creditors, media, and employees all assist enterprises in disclosing carbon information, but the influence of suppliers will inhibit such disclosure. In the context of a complex economic system, the level of carbon disclosure is positively correlated with the government, the media, and employees, while negatively correlated with creditors. The influence of suppliers is not significant. These findings may aid in formulating related policies from different dimensions, directing enterprises to publish carbon information actively and strengthening carbon management.

Green building policies in China: A policy review and analysis

Green building policies (GBPs) are considered the most fundamental and effective pathway towards green building (GB) promotion. However, few studies have focused on policies from the multi-level governance perspective. To fill this gap, this study empirically analyses the historical development of GB governance in China and unearths solutions for future policy development. A total of 254 central and 1175 local GBPs during 2004–2021 are systematically reviewed and analysed from the dimensions of policy correlation, content, quantity, type and intensity. Key findings demonstrate that the central government stresses its guiding role by issuing a large number of direction-based policies. Meanwhile, local governments increasingly respond to the central initiatives by improving their GBPs framework, forming a ‘top-down’ GB governance system. Over time, China has set more ambitious targets, achieved improved progression and established a ‘carrot-and-stick’ system in GB governance. Accordingly, China’s GBP development is suggested to focus on 1) alleviating economic inequality and facilitating regional cooperation, 2) improving legal and regulatory systems, 3) conducting policy innovation based on regional heterogeneity, 4) establishing information disclosure mechanism and 5) developing market-oriented green finance system. This study provides a valuable reference for improving policy system to promote GB in other countries and regions.

Can technology demonstration promote rural households’ adoption of conservation tillage in China?

Under the uncertainty of conservation tillage on output, technology demonstration, as an information disclosure mechanism, is very worthy of attention for its effects on rural households’ conservation tillage adoption. This study constructs a three-stage technology adoption model to discuss the theoretical relationship between technology demonstration and rural households’ conservation tillage adoption decision, and then empirical analyzed it using a sampling rural household data from six provinces in the main grain-producing areas of China. The results show that: First, the cognition of conservation tillage is the pre-determined stage for the adoption and its intensity. Second, technology demonstration has significant positive effect on rural households’ cognition of conservation tillage, but it strongly negative related to the adoption and adoption intensity. Third, extending the technology demonstration time cannot change the rural households’ adoption decision. Fourth, the technological demonstration has similar effects on the conservation tillage adoption of small-scale and large-scale farmers. Fifth, increasing land size helps rural households to adopt conservation tillage, while land fragmentation hinders their adoption.

Blockchain adoption: value creation or insider selling?

ABSTRACT Using a sample of listed firms in China, we aim to examine the motivation of blockchain adoption and propose two opposite hypotheses, namely value creation hypothesis and insider selling hypothesis. The empirical results demonstrate that initial blockchain adoption announcement leads to approximately 2% CAAR over the three-day interval around the release, whereas the abnormal return quickly reverses after the announcement, implying that the blockchain adoption can only provide short-term value and against the value creation hypothesis. The finding remains robust for largest industries (manufacturing and information technology) and release channels. On the contrary, we observe a significant positive effect of insider selling on the blockchain adoption announcement, which supports the insider selling hypothesis. Our findings can provide a better understanding on firms’ motivation of blockchain adoption, warn the investors to keep a rational attitude to ‘blockchain hysteria’ when making investment decisions, and motivate the regulators to propose strict information disclosure mechanism and prevent insider selling behaviours.

From Neighbors to Partners: A quantum game model for analyzing collaborative environmental governance in China

Promoting the collaborative governance of regional environmental pollution is a key issue of the “14th Five-Year Plan” period of China, which has great significance in accelerating the construction of Chinese ecological civilization. Given this, this paper uses quantum game theory to analyze the interaction between two heterogeneous governments in environmental governance and to discuss the impact of heterogeneity difference of local governments on the game system. As an embodiment of the innovation of this paper, an interpretation of entanglement and quantum strategy under the context of environmental governance is presented, and the impact of the heterogeneity difference between local governments on the quantum game system is studied. The results show that the entanglement can effectively prevent the free-riding behavior of local governments, and the heterogeneity difference does not change the equilibrium of the quantum game. As a byproduct, this paper reveals the control effect of the combination of punishment mechanism and information disclosure mechanism on free-riding behavior to a certain extent. Finally, we construct the “Entanglement Agreement” of regional environmental collaborative governance according to the interpretation of entanglement and quantum strategy. In addition, it is an important guarantee for incentive enthusiasm of local governments to improve their governance capability. This study provides a quantitative basis and decision-making reference for promoting regional collaborative governance in China. The approach used in this paper can also be applied to similar situations in other countries or regions with suitable modifications.

Research on the central bank's carbon emission reduction support tool under the dual carbon target

Under the background that central banks have successively issued green financial policies to deal with climate change, on November 8, 2021, the people's Bank of China officially announced the creation and launch of carbon emission reduction support tools to help achieve the "double carbon goal" as soon as possible. Support the development of key areas such as clean energy, energy conservation and environmental protection and carbon emission reduction technologies in a steady, orderly, accurate and direct manner, and leverage more social funds to promote carbon emission reduction. This structural monetary policy tool is different from the traditional monetary policy. It will drive the accurate delivery of basic currency through its special transmission mechanism; Stimulate the overall growth of green credit scale; Promote the adjustment of industrial structure; Help to further improve the relevant information disclosure and review mechanism. At the same time, as a long-term financial instrument, carbon emission reduction support tool still has great room for improvement in the future. It is expected to be continuously improved in supporting credit policies, issuing objects, supporting industries, disclosure mechanism and other aspects.

Effects of Environmental Regulation Competition and Public Participation on Enterprise Location Selection Under Climate Change in COVID-19 Pandemic Conditions: An Analysis Based on the Chinese Provincial Spatial Panel Model

The deterioration of environmental quality has attracted the attention of the Chinese government and the public. The Chinese government has delegated part of the power of environmental regulation to local governments. To fulfill the KPI, local governments tend to loosen environmental regulations to attract more settlement of enterprises, thus leading to an increasingly fierce local environmental regulation competition. The improvement of people’s living standards makes it possible for the public to participate in environmental regulation. This article seeks to carry out the empirical study to interpret the relationship between local environmental regulation competition, public participation, and enterprise location selection through a random effects (RE) spatial Durbin model with 29 provincial panel data in China from 2004 to 2017. The results show that the provincial spatial spillover effect of enterprise location selection is significant. More intensified local environmental regulation competition can attract more investment but may harm sustainable economic development. Active public participation can effectively avoid the excessive investment caused by local environmental regulation competition and sustain economic development. Therefore, we should establish and improve the local environmental prevention and regulation system and establish an information disclosure mechanism to ensure public participation. The local government’s environmental regulation and public participation mechanism should be effectively coordinated.