Purpose This study investigates how China's judicial independence reform curbs local protectionism, thereby enhancing the efficiency and rational allocation of governmental resources, particularly among state-owned enterprises (SOEs) and local SOEs. Design/methodology/approach Based on the quasi-natural experiment of China's 2014–2019 judicial management reform, this study employs a difference-in-differences (DID) model to empirically examine the impact of judicial independence on the efficiency of government subsidies. To ensure robustness, a series of validation methods are applied, including alternative sample tests, cross–fixed effects estimation, controlling for confounding events (circuit courts), placebo tests and parallel trend tests. Findings The reform curbs local protectionism and significantly reduces government subsidies to SOEs, especially local SOEs. Three mechanisms explain this outcome: (1) eliminating resource allocation barriers, (2) enhancing resource allocation efficiency and (3) intensifying regulatory scrutiny towards resource allocation. Although R&D subsidies and expenditures declined, innovation outputs increased, indicating improved efficiency of innovation resource allocation. Furthermore, the reform generates positive abnormal stock returns around subsidy announcements, reflecting enhanced investor confidence in judicial impartiality and improved fiscal transparency. Originality/value This study makes three main contributions. First, it integrates judicial independence into the analytical framework of government subsidy allocation, emphasizing institutional quality as a determinant of fiscal efficiency. Second, it reveals a novel mechanism linking judicial reform to corporate innovation through subsidy restructuring, offering new insights into law–finance–innovation interactions. Third, it identifies the market announcement effect of judicial reforms, demonstrating how enhanced judicial impartiality fosters investor confidence and enterprise value.

This study aims to examine the effects of board characteristics—age, gender, educational level, educational relevance, board size, tenure, and the Board Index—on the profitability of non-financial state-owned enterprises (SOEs). It also investigates the moderating role of firm size in these relationships. The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS. Board characteristic data were collected from the annual reports of non-financial SOEs for the period 2019–2024. A total of 224 firm-year observations were obtained through purposive sampling. The analysis includes testing direct effects and moderating effects using the bootstrapping procedure. The findings indicate that all board characteristics, including the Board Index, do not significantly influence profitability. However, firm size significantly moderates the relationship between the Board Index and profitability (original sample = 0.137; t = 2.003; p = 0.045). The effectiveness of boards in enhancing financial performance is driven more by organizational dynamics and governance quality than by demographic attributes alone.

ABSTRACT As China’s investments under the Belt and Road Initiative proliferate, securing its extraterritorial interests has assumed urgency. With a military footprint abroad lagging behind its economic clout, Beijing has advocated for state-owned enterprises to entrust protective responsibilities to Chinese private security companies (PSCs). Leveraging quantitative scrutiny of datasets from the China Security Association, this study elucidates the advancement of Chinese PSCs in proliferation velocity, spatial distribution, and service diversification, wherein they assume supplementary roles in protecting the commercial assets and personnel of state-owned conglomerates. Yet, as China lacks legislative frameworks to oversee their operations, state-owned enterprises evince circumspection in devolving security mandates, while PSCs, encumbered by inadequate incentives and labyrinthine risks, engender suboptimal principal-agent paradigm, accentuating lacunae in the efficacious protection of China’s extraterritorial interests.

ABSTRACT This paper constructs a firm-level economic policy uncertainty (FEPU) index by applying the LDA-2MNIR model to the MD&A sections of Chinese listed firms’ annual reports from 1999 to 2024. Unlike aggregate news-based measures, FEPU captures firm-specific uncertainty embedded in corporate disclosures, tracks major policy and macroeconomic shocks, and varies across industries. Baseline validation tests show that FEPU predicts future investment, R&D expenditure, and stock returns, and provides incremental information beyond return-based exposure measures. We further find that FEPU propagates through board interlock networks, particularly through direct and influential connections, with stronger effects among state-owned enterprises and large firms. These findings provide a scalable firm-level EPU measure and identify board interlocks as a channel of policy-related information transmission.

ABSTRACT Amid escalating U.S. export control pressures, Chinese enterprises face critical strategic repositioning decisions while systematic evidence on their investment responses remains limited. This paper examines the impact of the U.S. export administration regulations (EAR) on Chinese enterprises’ investment portfolios, focusing on intra-firm and inter-firm investments. We find that after being included in the Entity List, Chinese regulated enterprises’ intra-firm investment decreases by 1.3%, while inter-firm investment increases by 4.1% compared to unregulated enterprises. Regulatory pressure triggers strategic portfolio reconfiguration through three channels: increasing supply chain risks force enterprises to strengthen inter-firm alliances; the decrease of institutional legitimacy prompts enterprises to reduce intra-firm investment to avoid institutional review; and operational efficiency loss enhances both real option-driven cooperation and asset specificity induced disinvestment. In addition, the impact is more pronounced for enterprises in high-tech industries. State-owned enterprises (SOEs), firms whose CEOs have a financial background, and firms with high government subsidies are more likely to increase intra-firm investment, whereas firms with high management compensation are more inclined to increase inter-firm investment. Furthermore, we examine the outcomes of different investment strategies of firms. We document that intra-firm investment decreases enterprises’ rate of return on investment but does not affect innovation performance. In contrast, inter-firm investment increases enterprises’ rate of return on investment and innovation performance. Therefore, under the pressure of export controls, enterprises are more inclined to choose inter-firm investment. This paper provides a generalizable theoretical basis for analyzing investment restructuring in emerging markets under regulatory uncertainty.

ABSTRACT China’s renewable energy sector sits at the heart of a deepening contest between techno-nationalist rivals. Whether R&D investment shields firms from the resulting disruption or heightens their vulnerability remains an open question. Using quarterly panel data from China’s new energy index constituents over 2016 to 2025, this paper allows the marginal effect of R&D on firm resilience to vary continuously with geopolitical risk. R&D intensity is positively associated with future return on assets (ROA) and return on equity (ROE) across specifications. Its relationship with resilience, however, proves conditional. Innovative firms hold a stability advantage when conditions are calm, but that advantage reverses during elevated tension, with R&D-intensive firms experiencing larger drawdowns and heightened tail risk. State-owned enterprises (SOEs) bear a far steeper market penalty than private firms when geopolitical risk spikes, consistent with their greater international visibility. These patterns suggest a technological exposure mechanism in which the cross-border linkages that sustain innovative capability become transmission channels for geopolitical shocks. The evidence implies that policies promoting R&D and those managing geopolitical exposure cannot be designed in isolation.

China’s Belt and Road Initiative is the subject of considerable debate. However, relatively little attention has been devoted to the reasons why Chinese state-owned enterprises involved in the initiative so heavily recruit their own country’s manual workers to work overseas and why those workers sometimes experience mistreatment. This article seeks to answer these questions through a close analysis of documents collected by an advocacy group in Indonesia, Algeria, Serbia, and the Democratic Republic of Congo. It details workplace abuses in the sequence that workers encounter them, from their initial recruitment to their confinement within work-site compounds abroad. In addition, the article highlights several factors inherited from China’s early reform era that enable abuses and lead Chinese state-owned enterprises to use Chinese workers abroad: militaristic oversight of employees; barracks-style housing for them; surveillance of workers’ personal lives and communications; elaborate tiers of sub-contracting; and wage gaps resulting from regional and demographic distinctions between workers. Finally, it examines the characteristics of host countries, especially their political regime types, that render them less likely to enforce their own labour laws on behalf of foreign workers.

ABSTRACT Climate risk represents a systemic threat to global economic stability, forcing firms to fundamentally adapt. Drawing on risk-management and resource dependence theories, this study investigates how climate risk exposure (CRE) reshapes corporate green transformation (GT) using a panel of Chinese A-share non-financial firms (2016–2024). Our results indicate that elevated CRE acts as a disciplining force, significantly accelerating corporate GT. Mechanism analyses reveal that firms respond to this exposure strategically by advancing green technological innovation and improving environmental, social, and governance (ESG) performance. Furthermore, this positive effect is amplified under specific boundary conditions: robust internal digital capabilities, accessible supply chain finance, and active monitoring by institutional investors. Heterogeneity analyses demonstrate that this proactive transition is more pronounced among state-owned enterprises, large corporations, and firms in regions with high public environmental awareness. By quantifying this behavioural response, this study suggests that external climate pressure catalyzes internal sustainable power, providing micro-level evidence for differentiated policy interventions. 1 1 Abbreviations: green transformation (GT); climate risk exposure (CRE); World Meteorological Organization (WMO); Intergovernmental Panel on Climate Change (IPCC); Task Force on Climate-related Financial Disclosures (TCFD); Network for Greening the Financial System (NGFS); Environmental, Social, and Governance (ESG); China Research Data Services Platform (CNRDS); China Stock Market & Accounting Research (CSMAR); Management Discussion and Analysis (MD&A); propensity score matching (PSM); two-stage least squares (2SLS); two-stage instrumental variables generalized method of moments (2SIV-GMM); difference-in-differences (DID); state-owned enterprises (SOEs); small and medium-sized enterprises (SMEs).

ABSTRACT This study challenges the applicability of Western organizational models to state-owned enterprises (SOEs) in the Global South. By distinguishing politically determined “fixed constraints” from the managerial “actionable core,” and based on survey responses from senior managers and archival data of 27 provincial SOEs in western China, we employ fuzzy-set Qualitative Comparative Analysis (fsQCA) to identify configurational drivers of performance. Results reveal two high-performance pathways, function-oriented and market-oriented, both achieved through context-dependent “functional synergy.” Across all successful configurations, strategy and performance management form the minimal viable foundation. Conversely, the absence of performance management is a core condition for failure. These findings suggest that effective SOE governance relies not on comprehensive organizational redesign, but on a closed-loop system where performance management serves as an indispensable safeguard against organizational drift.

Indonesian employees in state-owned enterprises (SOEs) often face psychological challenges after retirement due to strong emotional ties to their workplace. This study examined the effectiveness of coping strategy training in enhancing happiness among retired SOE personnel. Using a field-based randomized pretest-posttest design with a comparison group, 556 retirees were assigned to a training group (n = 278) or a comparison group (n = 278). The intervention integrated problem-focused and emotion-focused coping strategies, including laughter techniques and relaxation. Happiness was measured using the Oxford Happiness Questionnaire at pretest, posttest (1 month after the intervention), and follow-up assessments at 2 and 3 months, reflecting a longitudinal design to capture sustained effects. Mixed ANOVA results indicate a significant and sustained increase in happiness among participants who received the training. Qualitative findings showed improvements in emotional regulation, meaning-making, social connectedness, and engagement in daily activities, highlighting the potential of structured coping programs to support positive ageing.

ABSTRACT Business Intelligence has become a strategic enabler of data-driven decision-making. However, empirical evidence on its performance implications in state-owned enterprises (SOEs) within emerging economies remains limited. This study examines the effect of Business Intelligence on firm performance and investigates the mediating roles of organizational learning and performance measurement capability, as well as the moderating role of board size. Grounded in the resource-based view, the study employs a panel data regression from 20 Jordann publicly listed SOEs. The results reveal that Business Intelligence has a positive and significant impact on firm performance. Organizational learning and performance measurement capability partially mediate this relationship, indicating that Business Intelligence contributes to performance when supported by effective learning processes and robust evaluation systems. Conversely, board size negatively moderates the Business Intelligence–performance relationship, suggesting that larger boards may weaken the strategic utilization of Business Intelligence due to coordination complexity. These findings advance the accounting information systems and management accounting literature by clarifying the mechanisms and boundary conditions through which Business Intelligence enhances organizational performance.

Purpose: This study analyzes the political economy and fiscal implications of the Jakarta–Bandung High-Speed Rail (Whoosh) project within the framework of China’s Belt and Road Initiative (BRI). Research Method: This study employs a qualitative explanatory case study approach using document analysis of government regulations, Ministry of Finance reports, KCIC publications, academic journals, and reports from international institutions. Results and Discussion: The findings show that the project’s financing structure increased fiscal exposure for Indonesian state-owned enterprises, particularly PT KAI, due to cost overruns and debt servicing pressures. The study also indicates that concerns about geopolitical dependency should be interpreted with caution, as domestic governance capacity, financing structures, and institutional risk management strongly influence the project outcomes. Implications: The study emphasizes the importance of transparent fiscal governance, stronger risk-sharing mechanisms, and comprehensive ex-ante fiscal evaluation for strategic infrastructure projects. Originality: This study integrates political economy and public financial management perspectives to explain the fiscal consequences of debt-financed infrastructure projects in developing countries.

ABSTRACT We examine how initial property rights formation influences related-party transaction (RPT) behavior in family businesses. Utilizing a sample of Chinese listed family firms from 2003 to 2023, we trace property rights origins and classify firms as entrepreneurial family businesses or privatized state-owned enterprises. We find that State-reformed family enterprises face suspicion regarding the acquisition of property rights, bear high political costs and are subjected to greater public scrutiny; consequently they exhibit a higher propensity to use RPTs for wealth concealment and protection. This tendency was mitigated by the Property Rights Law and intensified by local government official turnover. Firm size amplified and entrepreneurs’ political capital reduced the behavioral differences between entrepreneurial and state-reformed family firms. The Implementation Guidelines for RPTs of Listed Companies further curtailed RPT behavior among the latter enterprises. This research reveals motivations for RPTs in family firms and highlights the political cost hypothesis in emerging markets and transition economies.

ABSTRACT This article investigates how firm-level financial positions shape corporate investment responses to policy-related monetary shocks in China. Guided by a heterogeneous firm framework in which net worth governs financing constraints, we link an event-based monetary shock measure to panel data on Chinese listed firms. We document three main findings. First, monetary transmission varies systematically with within-firm leverage states: following expansionary shocks, firms with leverage above their own historical average experience larger reductions in effective financing costs and stronger increases in investment. This pattern is consistent with an important role for the balance-sheet channel in a bank-dominated financial system. Second, this heterogeneity is asymmetric: it is pronounced during monetary easing but statistically insignificant during tightening episodes. Third, ownership structure matters. The leverage-driven amplification is substantial among non-state-owned firms but muted among state-owned enterprises. Overall, our findings show that balance-sheet conditions and institutional frictions jointly shape the investment transmission of monetary policy in China, with implications for the design of stabilization policy and structural reform.

ABSTRACT This study examines how political turnover influences government procurement decisions, highlighting the critical role of national institutional frameworks in shaping procurement practices. Drawing on data from 2015 to 2022, we find that political turnover significantly increases non-green public procurement while reducing green public procurement. Mechanism analyses reveal that these effects are driven by heightened officials’ promotion pressure and shifts in officials’ sentiment. Our findings remain robust under endogeneity and robustness checks. Heterogeneity analyses further indicate that the positive effect on non-green procurement is more pronounced within state-owned enterprises, in the eastern region, for local officials, and within heavy-polluting and capital-intensive industries. Conversely, the negative impact on green public procurement is more significant within SOEs, in the mid-western region, for non-local officials, and in the same industrial sectors. These results underscore the importance of political turnover in influencing public procurement decisions.

ABSTRACT With growing external uncertainty, supply chain resilience has become a critical capability determining the survival and development of energy companies. The synergy between digitalization and green initiatives offers energy companies a new pathway to reshape their supply chain resilience. Based on panel data from Chinese listed traditional energy companies from 2011 to 2024, this paper empirically examines the impact, mechanisms, and boundary conditions of digital-green synergy (for short, DGS) on supply chain resilience (for short, SCR). The study finds that DGS significantly enhances the SCR of energy companies. Mechanism tests indicate that DGS enhances the SCR of energy enterprises through three pathways: precise risk perception, agile dynamic response, and knowledge spillovers and substitution. Moderation analysis reveals that supply chain finance, supply chain disruption risk, and supply chain bargaining power all positively moderate the relationship between the two. Heterogeneity analysis finds that the positive effects of DGS are more pronounced in state-owned enterprises and high-carbon energy enterprises. The findings provide policy implications for energy enterprises seeking to advance DGS practices and enhance SCR.

Purpose This study examines how corporate hierarchical culture influences the social status of their independent directors. Design/methodology/approach We construct a firm-level measure of hierarchical culture using annual reports of Chinese listed firms between 2010 and 2023. We examine how hierarchical culture is associated with the social status of independent directors and explore the mechanisms underlying this relationship. To address potential endogeneity concerns, we conduct a series of robustness checks, including difference-in-differences and instrumental-variable approaches. Findings We find that hierarchical culture is associated with lower social status for independent directors. The effect is stronger in state-owned enterprises (SOEs), firms with low R&D intensity, higher relationship spending, and those in the non-growth stage. Mechanism analysis indicates that hierarchical culture undermines independent directors' status by weakening bank-firm relationships and reducing strategic alliance formation. Moreover, a stronger business environment, more diligent board oversight, and greater board diversity mitigate the adverse impact. Further analysis shows that declines in director status reduce firms' cash-flow liquidity and increase agency costs. Originality/value This study highlights corporate culture as an important organisational norm shaping the social status of independent directors in an emerging economy. It provides new insights into how internal cultural norms influence director incentives and governance outcomes.

ABSTRACT Understanding how financial reporting shapes firms’ innovation strategies is central to research at the intersection of accounting and strategic management. While prior studies examine the informational role of financial reporting, the impact of financial statement comparability (FSC) on innovation choices remains underexplored. Drawing on data from Chinese A-share listed firms, this study explores how FSC shapes firms’ choices between specialization-oriented and diversification-oriented innovation strategies. We find that higher FSC is significantly associated with greater related variety but has no significant effect on specialization or unrelated variety. Heterogeneity analyses show that the effect is stronger in high-tech industries and that FSC facilitates unrelated diversification among state-owned enterprises and firms in the decline stage of the firm life cycle. In the green innovation domain, FSC primarily promotes specialization rather than diversification. Additional tests reveal important boundary conditions: financing constraints weaken, whereas lower market competition strengthens, the positive association between FSC and related variety. Managerial and organizational factors also matter. CEO functional diversity reduces the marginal effect of FSC, whereas dynamic capabilities strengthen it up to a certain threshold. Our study provides new evidence on the role of financial disclosure in shaping firms’ innovation strategies and offers useful insights for practitioners.

ABSTRACT The current complex international economic environment poses significant challenges to corporate exports, making it crucial to enhance firms’ export resilience amid external shocks. While extensive research has examined corporate environmental, social, and governance (ESG) engagement, the relationship between ESG practices and export resilience remains underexplored, particularly regarding the moderating role of government subsidies. To address this gap, this study uses data from Chinese listed firms to investigate how ESG performance improves export resilience and how government subsidies shape this relationship. Our findings show that strong ESG performance significantly strengthens export resilience by easing financial constraints, fostering innovation, and enhancing corporate reputation. Each ESG dimension independently contributes to export resilience, highlighting the multifaceted nature of sustainability-driven advantages. Heterogeneity analyses reveal that the effects are more pronounced among state-owned enterprises (SOEs), non-labour-intensive firms, and high-tech companies. Importantly, government subsidies amplify the positive link between ESG and export resilience, with this moderating effect consistently observed across all ESG dimensions. These results underscore the critical role of fiscal policy in leveraging ESG for trade stability. The study advances theoretical understanding of sustainability-performance linkages in international business and offers practical insights for policymakers designing ESG-aligned industrial support to enhance export competitiveness.

Artificial intelligence and firms green performance: The mediating roles of product- and customer-oriented servitization strategies