U-shaped Effect Research Articles

Does Financial Literacy Improve Financial Inclusion in Developing Countries? A Nonlinearity and Quantile Regression Analysis

This study investigated the nexus between financial literacy and financial inclusion using the cross-section threshold regression model and the quantile regression technique. The sample covered 73 developing countries categorised as lower-middleincome or upper-middle-income economies. The main results of the threshold model revealed that financial literacy had no inverted U-shaped effect on financial inclusion in the sample of developing countries. This situation indicated that financial literacy had a linear or monotone relationship with financial inclusion. The quantile regression model was used to compare the findings in this investigation. The empirical result indicated that the financial literacy variable had a limited impact on the conditional distribution of financial inclusion. However, the coefficient values were much larger at high than low quantiles. This study’s results are necessary for policymakers and financial institutions to implement financial literacy programs targeted at specific behaviours and underserved populations in developing countries.

Does the recombination of distant scientific knowledge generate valuable inventions? An analysis of pharmaceutical patents

In view of the valuable and heterogeneous roles of science in technological development, we investigate the extent to which the cognitive distance and geographical boundary-spanning search of scientific knowledge affect the value of inventions in this study. In particular, we examine the diverse influencing mechanisms of scientific and technological knowledge as well as their interplay in the recombination process of invention. By analyzing the pharmaceutical patents granted by the United States Patent and Trademark Office from 2010 to 2019, alongside their citations of scientific publications, we reveal that the cognitive distance of scientific knowledge has an inverted U-shaped impact on the value of inventions in terms of both their technological impacts and economic value, whereas the cognitive distance of technological knowledge has a positive and an inverted U-shaped effect on the technological impacts and the economic value of inventions, respectively. Moreover, the cognitive distances of these two types of knowledge exhibit a complementary relationship with regard to the technological impacts of inventions while displaying a weakly substitutive relationship concerning the economic value of inventions. Notably, combining moderately distant scientific knowledge and distant technological knowledge obtains the highest value of inventions in terms of both technological impacts and economic value. Additionally, geographical boundary-spanning search of science significantly raises both the technological impacts and the economic value of inventions.

Technological Diversity in M&A Network and High-Quality Development of Enterprises

ABSTRACT This study breaks through the homogeneity of mergers and acquisitions (M&A) and the dyadic relationship between the acquirer and the target firm. We consider the network content of technological diversity that reflects both acquirers–target firms and target firms–target firms. The study empirically explores the impact and mechanism of technological diversity in M&A network on the high-quality development of enterprises (HQDE). Our study reveals that technological diversity in M&A network has an inverted U-shaped effect on HQDE. Mechanism analysis shows that the technological diversity in M&A network affects HQDE through both the quantity and quality of technological innovation. The findings provide novel insights to enable acquirers to select appropriate target firms and overcome technological innovation dilemmas, thus advancing toward high-quality development.

A re-examination of the influence of human capital on urban-rural income gap in China: College enrollment expansion, digital economy and spatial spillover

In the context of the era of common prosperity, this paper seeks to explore the influence of human capital on the urban-rural income gap in China. To accomplish this, this paper utilizes panel data encompassing 31 provincial-level administrative regions spanning the years 2000 to 2019. Employing a combination of econometric techniques, including 2SLS, Difference-in-difference models, moderating effects models, and the spatial Durbin model, this paper investigates various facets of human capital and its impact on the urban-rural income gap. The key findings of this paper are as follows: (1) The relationship between human capital and the urban-rural income gap exhibits a U-shaped pattern. (2) The college enrollment expansion policy leads to the widening of the urban-rural income gap in China driven by factors related to the scale, quality, and inequality within higher education. (3) The digital economy plays a positive moderating role in the U-shaped relationship between human capital and the urban-rural income gap. (4) Human capital's impact on the urban-rural income gap demonstrates a significant spatial correlation, displaying a U-shaped spatial spillover effect. Drawing from the aforementioned findings, this paper offers valuable policy implications to guide policymakers in their efforts to foster the attainment of common prosperity.

Openness to international collaboration and tie strength in enhancing knowledge creation

This study aims to understand whether and under what condition openness to international collaboration enhances knowledge creation. How the configuration of openness, domestic ties, and foreign ties of an institution affects its knowledge creation is examined in egocentric networks. Using fixed-effects panel data models, we find that a positive association exists between openness and knowledge creation, which is catalyzed by domestic tie strength and diminished by foreign tie strength, and both domestic and foreign tie strength have an inverted U-shaped effect on knowledge creation. The findings contribute to international collaboration and knowledge-based view literature by proposing that maintaining strong domestic ties and a wide range of relatively weak foreign ties simultaneously is an efficient way to leverage international collaboration to integrate domestic and foreign knowledge. It also enriches the strong tie theory by suggesting the strength of strong domestic ties could be reinforced by openness.

Combination of streamers' product description and viewers' comments: moderating effect of streamer–viewer relationship strength

PurposeThis study examines the relationship between streamers' product descriptions, customer comments and online sales and focuses on the moderating effect of streamer–viewer relationship strength.Design/methodology/approachBetween June 2021 and April 2022, the structured data of 965 livestreaming and unstructured text data of 42,956,147 characters from two major live-streaming platforms were collected for the study. Text analysis and regression analysis methods were employed for data analysis.FindingsFirst, the authors' analysis reveals an inverted U-shaped relationship between comment length and product sales. Notably, comment volume and comment emotion positively influence product sales. Furthermore, the semantic richness, emotion and readability of streamers' product descriptions also positively influence product sales. Secondly, the authors find that the strength of streamer–viewer relationship weakens the positive effects of comment volume and comment emotion without moderating the inverted U-shaped effect of comment length. Lastly, the strength of streamer–viewer relationship also diminishes the positive effects of emotion, semantics and readability of streamers' product descriptions on product sales.Originality/valueThis study is the first to concurrently examine the direct and interactive effects of user-generated content (UGC) and marketer-generated content (MGC) on consumer purchase behaviors in livestreaming e-commerce, offering a novel perspective on individual decision-making and cue utilization in the social retail context.

Non-linear effect of Environmental, Social, and Governance on corporate performance (study in non-financial firms listed on Indonesia Stock Exchange)

Environmental, Social, and Governance (ESG) factors have become essential considerations for stakeholders. Balancing external and internal performance is crucial. However, there are some constraints to implementing ESG at the cor­porate level, especially in Indonesia. This study aims to test the effect of ESG on corporate performance. The non-financial firms listed on Indonesia Stock Ex­change from 2016–2020 were used as a sample. Empirical evidence found the U-shaped effect of ESG rating on corporate performance. Further, robustness tests are conducted by dividing the sample annually and removing the 2020 pe­riod to show more robust evidence. In contrast, the results showed no evidence of a U-shaped effect. The robustness test showed that the ESG rating positively affected corporate performance in 2016–2019 and turned negative in 2020, the first time COVID-19 happened in Indonesia. This result indicated that in a crisis time, implementing ESG will be costly and reflected in financial performance. In contrast, during a non-crisis time, ESG positively impacts financial performance.

Green financial structure and carbon emissions: A structural matching perspective

Although the carbon reduction role of green finance has been highlighted in the context of global warming, discussions on green finance have primarily focused on size rather than structure. Based on Chinese panel data from 2008 to 2019, this paper distinguishes itself by investigating the relationship between green financial structures and carbon emission intensity from a structural matching perspective using the two-way fixed effect model, system generalized method of moments model, quantile regression, and the mediating effect model. Our findings indicate that a green financial structure can lower overall carbon emission intensity and that an inverted U-shaped carbon emission mitigation effect results from a green financial structure. Additionally, green financial structures alleviate carbon emission intensity by facilitating the development of energy technology. Furthermore, greater degrees of finance-technology matching effectively lower carbon emission intensity. These findings provide lessons for countries striving to construct comprehensive and reasonable green financial systems to address climate change.

The effects of urban expansion on carbon emissions: Based on the spatial interaction and transmission mechanism

Timely and scientific investigation into the complex relationship between urban expansion and carbon emissions is imperative to support urban decarbonization efforts. However, the existing framework cannot fully consider spatial interaction or accurately explore the transmission mechanism. To narrow the knowledge gaps, this study provides both theoretical and empirical insights into the impacts of urban expansion on carbon emissions. Based on the panel data of 284 cities in China during 2007–2019, the spatial Durbin model and mediating effect model are primarily utilized to reveal the following results: (i) Urban expansion and carbon emissions show significant spatial heterogeneity, spatial autocorrelation, and spatial spillover. Urban expansion is shifting from a nationwide multi-point distribution to a localized regional distribution, while carbon emissions maintain stable spatial patterns. Urban expansion has U-shaped direct effects on local carbon emissions but inverted U-shaped spatial spillover effects on neighboring cities’ carbon emissions. (ii) Industrial structure upgrading and industrial agglomeration are pivotal mediating mechanisms in the relationship between urban expansion and carbon emissions. (iii) Urban expansion is recommended to be limited to a land expansion rate at about twice the population expansion rate. In essence, these findings underscore the need for reasonable urban expansion and spatial interaction strategies to promote collaborative low-carbon development.

Do geopolitical risks always harm energy security? Their non-linear effects and mechanism

Exploring the link between geopolitical risk (GPR) and energy security (ES) is essential for ensuring national security and sustainable economic development in the face of frequent global geopolitical conflicts and escalating geopolitical threats. Based on the newly developed GPR index, this research uses unbalanced panel data for 35 nations from 2005 to 2018 to examine the influence of GPR on ES and its impact mechanism. The results show that GPR causes the U-shape effect on ES that first decreases (GPR < 0.59) and then increases (GPR > 0.59), meaning that GPR causes both negative and positive effects on ES, and the results remain robust after a series of tests. Transmission mechanism analysis indicates that renewable energy technology innovation is the key transmission mechanism for the U-shape impact of GPR on ES. Moderating effect analysis shows that international trade reinforces the U-shape effect of GPR on ES, meaning that it reinforces both the negative and positive effects of GPR on ES, while FDI only reinforces the positive effect of GPR on ES. Heterogeneity analysis presents that the U-shape effect of GPR on ES is more significant in OECD countries and net energy-importing countries.

Can the humanisation of smart home speakers improve user's attitude towards covert information collection?

PurposeThis paper analyses whether the humanisation of smart home speakers can improve users' attitudes towards covert information collection. Additionally, it examines the direct and indirect impact of trust, social presence and user's perceived surveillance on attitude towards covert information collection.Design/methodology/approachA total of 679 American users of smart home speakers are surveyed, and their responses are analysed using structural equation modelling. Mediating effects are also examined.FindingsHumanisation increases social presence, improves users' attitude towards covert information collection and has a U-shaped effect on trust. A negative effect of humanisation on perceived surveillance is demonstrated. Social presence reduces perceived surveillance levels and improves users' attitude towards covert information collection.Originality/valueWe examine attitude towards covert information collection as a new outcome variable. This study contributes to the growing body of research on humanisation by providing new evidence of how humanisation helps improve users' attitude towards covert information collection and generates trust in the service provider. This research indicates the important role of social presence.

Ketamine alleviates fear memory and spatial cognition deficits in a PTSD rat model via the BDNF signaling pathway of the hippocampus and amygdala

BackgroundPost-traumatic stress disorder (PTSD) is associated with traumatic stress experiences. This condition can be accompanied by learning and cognitive deficits. Studies have demonstrated that ketamine can rapidly and significantly alleviate symptoms in patients with chronic PTSD. Nonetheless, the effects of ketamine on neurocognitive impairment and its mechanism of action in PTSD remain unclear. MethodsIn this study, different concentrations of ketamine (5, 10, 15, and 20 mg/kg, i.p.) were evaluated in rat models of single prolonged stress and electrophonic shock (SPS&S). Expression levels of brain-derived neurotrophic factor (BDNF) and post-synaptic density-95 (PSD-95) in the hippocampus (HIP) and amygdala (AMG) were determined by Western blot analysis and immunohistochemistry. ResultsThe data showed that rats subjected to SPS&S exhibited significant PTSD-like cognitive impairment. The effect of ketamine on SPS&S-induced neurocognitive function showed a U-shaped dose effect in rats. A single administration of ketamine at a dosage of 10–15 mg/kg resulted in significant changes in behavioral outcomes. These manifestations of improvement in cognitive function and molecular changes were reversed at high doses (15–20 mg/kg). ConclusionOverall, ketamine reversed SPS&S-induced fear and spatial memory impairment and the down-regulation of BDNF and BDNF-related PSD-95 signaling in the HIP and AMG. A dose equal to 15 mg/kg rapidly reversed the behavioral and molecular changes and promoted the amelioration of cognitive dysfunction. The enhanced association of BDNF signaling with PSD-95 effects could be involved in the therapeutic efficiency of ketamine for PTSD.

What determines citizens' recycling behavior of express delivery packaging? Empirical evidence from a comprehensive model

The dramatic increase in express delivery packaging poses severe environmental threats, making recycling a top priority. A comprehensive conceptual framework was developed for exploring citizens’ recycling behavior by integrating structuration and social network theories, and the nonlinear effects of determinants were identified. Further, the 1538 micro-data obtained from five eastern Chinese cities are used for descriptive, correlation, and ordinary least squares regression analysis. It is clarified that there are three distinct recycling behavior patterns, the most prevalent of which is collection station recycling behavior (CSRB), followed by mart equipment recycling behavior (SERB), and door-to-door recycling behavior (DTDRB). The empirical results indicate that social sanctions, responsibility attribution, and centrality positively predict recycling behaviors. Place attachment strengthens SERB and DTDRB. Notably, the authority effect exerts inverted U-shaped effects on recycling behaviors, and trust has an inverted U-shaped effect on CSRB. This study reveals the nonlinear effects of variables, and the findings provide implications for recycling practice.

The impact of digitalization on the division of labour in enterprises- evidence from China

ABSTRACT In the context of the accelerated development of digitalization, the rapid popularization and wide application of digital technology have become significant factors driving enterprises to participate more deeply in the division of labour. This paper examines data from 2359 A-share listed companies in China from 2010 to 2018, using a combination of machine learning text analysis and multiple regression analysis to construct a digital transformation index. Our research findings reveal that digital transformation has an inverted U-shaped effect on vertical specialization in enterprises’ division of labour. The present study examines the moderating effects of organizational inertia on the linear relationship between digital transformation and vertical specialization division of labour in enterprises. Additionally, the study explores the negative moderating effects of corporate strategic radicality on the inverted U-shaped relationship between the two variables. The findings of this study are significant as they provide a theoretical explanation for the impact mechanism of digital transformation development on the production organization mode of enterprises.

Financial decentralization, renewable energy technologies, energy subsidies and wind power development in China: An analysis of nonparametric model

Currently, financial development and renewable energy technologies have become new tools to stimulate wind power development, attracting attention from the government and academia. However, most existing literature uses linear methods to investigate wind power, masking the nonlinear relationship between these factors and wind power development. The objective of this study is to reveal the nonlinear relationships between these economic factors and wind power development, providing a basis for the government to design differentiated phased policies. Compared to traditional linear methods, the nonparametric models can truly simulate the nonlinear relationship between these economic factors and wind power development. Given this, this article uses the nonparametric additive regression model to investigate these links. The result of this study shows: (1) financial decentralization produces a U-shaped impact on wind power, indicating that expanding the autonomy of local financial institutions has driven wind power development in the later stage. (2) The impact of renewable energy technologies demonstrates an inverted U-shaped pattern, signifying that the driving effect of green technology has shifted from being prominent in the early stage to being reduced in the later stage. (3) Energy subsidies also exert an inverted U-shaped effect, meaning that its driving role is prominent in the early stage. (4) In addition, the impacts of CO2 emissions, wind power prices, environmental governance investments, and urbanization on wind power development also exhibit non-linear characteristics. Finally, this article proposes policies in response to the stage where economic tools don't play a role in driving wind power development.

Government venture capital and innovation performance in alternative energy production: The moderating role of environmental regulation and capital market activity

Energy shortages and environmental concerns have prompted governments to focus on alternative energy production innovation. Although studies examine the association between government venture capital and green innovation, there remains a gap in understanding how the different characteristics of government venture capital affect innovation. This study examines the effects of government venture capital on the innovation performance of alternative energy production. Using negative binominal regression and system generalised method of moments models with data from 30 provinces in China for the period spanning from 2003 to 2019, we find that government venture capital exerts an inverted U-shaped effect on the innovation performance of alternative energy production. In addition, environmental regulation strengthens this inverted U-shaped effect, while capital market activity alleviates it. Moreover, we confirm that government venture capital affects alternative energy production innovation through the R&D investment channel. Our study enriches the resource-based view, agency theory and the institution-based view by shedding light on how the different characteristics of government venture capital affect alternative energy production innovation. The findings suggest that policymakers should strike a balance between government intervention and market mechanisms.

The Impact of Tourist Operant Resources on Online Citizenship Behavior in Sustainable Tourism

Sustainability has emerged as a critical concern in the tourism industry. In sustainable tourism, the question of how to engage tourists in value co-creation has started to receive attention. Based on service-dominant logic, this paper develops an integrated model to reveal the impact of tourist operant resources on online citizenship behavior from the perspective of interactions between tourists and online travel agencies (OTAs). Empirical research is conducted using data collected from 301 tourists with customized sustainable tourism experiences. The results show that tourist operant resources are positively associated with online citizenship behavior, with the perceived value (functional value and emotional value) playing a partially mediating role in this relationship. Knowledge distance between tourists and OTA service personnel exerts an inverted U-shaped moderating effect on the relationship between tourist operant resources and functional values, but it does not have a moderating effect on the relationship between tourist operant resources and emotional values. Resource integration capability positively moderates the impact of tourist operant resources on functional and emotional values. This study reveals the contingency role of tourist operant resources in the entire value co-creation process in the context of sustainable tourism and provides practical guidance for OTAs to promote tourists’ online citizenship behavior to develop sustainable tourism.

Distinctive influence of entrepreneurs’ socioeconomic and political statuses on the digital transformation of SMEs in China

ABSTRACT Digital transformation offers incredible opportunities for small- and medium-sized enterprises (SMEs). However, the lack of resources is a major constraint for SMEs’ digital transformation, which requires entrepreneurs to play a role in seizing opportunities. Building upon the status theory, this study explored how two types of entrepreneur status, namely, socioeconomic and political statuses, can differently affect SMEs’ digital transformation in China. The regression analysis of a national survey of 4566 Chinese SMEs suggests that entrepreneurs’ socioeconomic status has a positive effect, whereas their political status has a U-shaped effect on SMEs’ digital transformation. We also find that the effect of entrepreneurs’ socioeconomic status is more positive for new ventures, whereas the U-shaped effect of entrepreneurs’ political status is more profound for firms with stronger resource endowments. These findings in the context of emerging economies shed light on drivers of SMEs’ digital transformation from the multiple status perspective.

Nonlinear impact of digital economy on carbon intensity: the moderating role of low-carbon regulation.

The development of the digital economy is an effective way to mitigate the carbon emission problem in the broader setting of the significant data era and green development. Based on the panel data of 271 cities in China from 2011 to 2019, this paper constructs a bidirectional fixed model to analyze the nonlinear effect of the digital economy (DE) on carbon intensity (CI) and the moderating role of low-carbon regulation from theoretical and empirical perspectives. The results show that (1) DE has an enormous inverted U-shaped impact on CI. The findings remain after introducing instrumental variables to mitigate endogeneity and robustness tests. (2) Low-carbon regulation (CP) can strengthen the inverted U-shaped impact between the two and shift the inflection point to the left. (3) Heterogeneity analysis shows that the inverted U-shaped effect of DE on CI is more significant in the central and western regions, high human capital (HC) regions, and high urbanization regions. (4) The mediating effect of energy mix (EM) and green technology innovation (GTI) still hold after introducing instrumental variables to alleviate the endogenous effect of the intermediary effect. This study suggests that the adoption of carbon emission reduction strategies, which will more effectively lower carbon intensity CI, should go hand in hand with the development of DE.

Sustainable Innovation in Small and Medium-Sized Enterprises: Environmental Regulations and Digitalization as Catalyst

Conducting research into the multifaceted aspects of environmental regulation and the pivotal role played by digitalization in promoting sustainable innovation represents an invaluable compass guiding the path toward green development. However, it receives little attention in Small and Medium-Sized Enterprises (SMEs). This study examines the impact of environmental regulations on sustainable innovation in SMEs and the moderating role of digitalization. Findings from a panel of 871 SMEs over the period 2012-2020 reveal that command control and public-participative regulations have a U-shaped relationship with green innovation in SMEs, with digital tools accelerating their effects. Market-incentive regulations exhibit an inverted U-shaped effect, with digitalization enhancing the benefits of pursuing green incentives. These insights emphasize the importance of tailored approaches that consider regulatory diversity and the transformative potential of digitalization in promoting green development within SMEs.