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Common institutional ownership is a phenomenon that has extended throughout the capital markets in recent years and has a significant impact on business strategy decisions. The study intends to investigate the effect of common institutional ownership on corporate over-financialization and potential functioning mechanisms.

Using panel data from Chinese-listed companies over the period of 2003–2021, the authors conduct regression models which controlled year-, industry- and regional fixed effects to explore the impact of common institutional ownership on corporate over-financialization.

This study concludes that corporate over-financialization may be prevented via common institutional ownership. The mechanism test suggests that common institutional ownership inhibits corporate over-financialization by improving internal control quality and enhancing financial flexibility. Besides, heterogeneity analysis shows that the inhibiting effect of common institutional ownership on corporate over-financialization is more pronounced in stability-oriented institutional investors and high financing constraints firms.

This paper makes a valuable contribution to the current studies on effective strategies to prevent enterprises from becoming overly financialized by recognizing common institutional ownership. Furthermore, this paper adds to the research on common institutional ownership’s economic consequences. Finally, this study provides management implications for how to optimize corporate governance structures, curb the financialization of entities in practice and promote the development of the real economy.

This study aims to examine the impact of CEO age on corporate financialization by considering the moderating effects of CEO gender, identity and tenure in this relationship.

The analyses use ordinary least squares across 213 nonfinancial firms listed in Bursa Malaysia throughout 2015–2021. The author addresses potential endogeneity through propensity score matching and the generalized method of moments. The results are also robust to alternative measures of corporate financialization and CEO age.

The results show that firms with young CEOs are more likely to avoid taking short-term financial investments and, as a result, inhibit corporate financialization. Furthermore, the findings indicate that firms with female CEOs and those with family members as CEOs are less likely to invest in financial assets. The results also show that corporate financialization is weakened in the early stages of CEO tenure and strengthened in the late stages.

The empirical results have useful policy implications. For researchers, this study finds prominent differences in corporate financialization related to each stage of a person’s career. The study findings can be used by policymakers to guide programs that attempt to undertake the necessary measures to optimize corporate governance standards and restrict managers’ shortsighted conduct. In the long run, these kinds of projects could improve the way surplus financial reserves are used and raise economic output in general. The study also provides investors with insightful information about the possible relationship between CEO traits and company performance, especially with regard to measures for financial resource allocation.

This paper expands the existing research on corporate investment behavior and provides a new theoretical basis for the underlying factors of corporate financialization. It studies the influence of managerial traits on corporate financialization and deepens the understanding of CEO age and companies’ financialization levels.

This study aims to examine the influence of managerial myopia on the excessive financialization behavior of listed firms on Bursa Malaysia.

Through a sample of 313 firms from 2015 to 2021, the author examine whether managerial myopia promotes or inhibits corporate financialization. The author uses ordinary least squares and Logit as the baseline models and addresses potential endogeneity through the dynamic-panel generalized method of moments. The results are also robust to alternative measures of financialization and managerial myopia.

The results show a significant positive effect of managerial myopia on the excessive financialization of enterprises. Furthermore, the findings indicate that the impact of managerial myopia on the over-financialization of enterprises is more prominent in periods of low economic policy uncertainty. However, the relationship between excessive financialization and managerial myopia is weakened in the presence of female chief executive officers.

The empirical results have useful policy implications. First, firms should establish scientific managerial assessment and supervision systems to avoid excessive financial investment behavior by myopic managers caused by assessments that place too much emphasis on short-term performance. Second, regulators and policymakers should encourage firms to appoint women to top management positions, which may inhibit short-sighted financialization behavior. Finally, the regulatory authorities should undertake the necessary measures driving companies to disclose the investment direction of the funds so that shareholders and investors can understand the use direction of the funds in a timely manner, which can effectively prevent the economy “from the real to the virtual” and promote the development of the real economy.

This paper expands the existing research on corporate financialization behavior and provides a new theoretical basis for the underlying factors of excessive financialization. It studies the influence of corporate financialization from the perspective of short-run managerial actions and deepens the understanding of managerial myopia and companies’ financialization levels.

This paper aims to explore the impact of corporate financialization (CF) on green innovation (GI) and further disclose the moderating role of CEO’s individual characteristics in such relationship from the perspective of corporate governance.

This paper uses empirical research methods to study the impact of CF on GI based on the evidence from China capital market.

The findings indicate that: CF has a significant inhibiting effect on GI; female CEOs weaken the inhibiting effect of CF on GI compared to male CEOs; and CEO’s financial background positively moderates the inhibiting effect of CF on GI.

This paper, first, supplements the research literature on the economic consequences of CF and influencing factors of GI in non-financial firms. Then, it opens up the internal impact mechanism of CF on GI, which is moderated by the individual characteristics of corporate CEOs. Finally, it provides important reference for how to suppress CF of non-financial firms, cultivate CEOs that meet the needs of corporate development and promote GI development of enterprises through empirical evidence from China.

In this fast-changing world, digitization has become crucial to organizations, allowing decision-makers to alter corporate processes. Companies with a higher corporate social responsibility (CSR) level not only help encourage employees to focus on their goals, but they also show that they take their social responsibility seriously, which is increasingly important in today’s digital economy. So, this study aims to examine the relationship between digital transformation and CSR disclosure of Chinese A-share companies. Furthermore, this research investigates the moderating impact of governance heterogeneity, including CEO power and corporate internal control (INT) mechanisms.

This study used fixed effect estimation with robust standard errors to examine the relationship between digital transformation and CSR disclosure and the moderating effect of governance heterogeneity among Chinese A-share companies from 2010 to 2020. The whole sample consists of 17,266 firms, including 5,038 state-owned enterprise (SOE) company records and 12,228 non-SOE records. The whole sample data is collected from the China Stock Market and Accounting Research, the Chinese Research Data Services and the WIND databases.

The regression results lead us to three conclusions after classifying the sample into non-SOE and SOE groups. First, Chinese A-share businesses with greater levels of digitalization have lower CSR disclosures. Both SOE and non-SOE are consistent with these findings. Second, increasing CEO authority creates a more centralized company decision-making structure (Breuer et al., 2022; Freire, 2019), which improves the negative association between digitalization and CSR disclosure. These conclusions, however, also apply to non-SOE. Finally, INT reinforces the association between corporate digitization and CSR disclosure, which is especially obvious in SOEs. These findings are robust to alternative HEXUN CSR disclosure index. Heterogeneity analysis shows that the negative relationship between corporate digitalization and CSR disclosures is more pronounced in bigger, highly levered and highly financialized firms.

Digitalization and CSR disclosure are well studied, but few have examined their interactions from a governance heterogeneity perspective in China. Practitioners and policymakers may use these insights to help business owners implement suitable digital policies for firm development from diverse business perspectives.

We examine the impact of corporate sustainability performance (CSP) on corporate cash holdings, focusing on the moderating impacts of industry’s concentration, financial constraints, and institutional environments.

The empirical analysis is conducted on a sample of 31 countries from 2002 to 2018. We use the pooled OLS regressions controlling for fixed effects. We further address endogeneity issues using an instrumental variable approach, the Difference-in-Differences regression based on an exogenous shock, and the propensity score matching.

We find that firms with superior CSP hold more cash. This result is valid after a series of tests for robustness and endogeneity issues, suggesting a causal effect of CSP on corporate cash holdings. In the cross section, the positive impact of CSP on cash holdings is more pronounced for firms operating in highly concentrated industries, but attenuated for firms with financial constraints and for those operating in countries with better institutional environments. We further show that CSP affects cash holdings through the channel of financial distress risk.

In making investment decisions, investors should not only examine corporate financial performance and sustainability profile, but also understand the related cash holding levels and financial distress costs. Corporate managers making decisions on levels of cash holdings should pay more attention to their sustainability behavior, especially for firms operating in concentrated industries and/or facing financial constraints. Governments and authorities can apply regulations to encourage firms to engage more in sustainable activities, as well as establish good institutional environments in the country.

Using a comprehensive international dataset, our paper contributes to two strands of literature: the economic impact of CSP and the driver of cash holdings. We further focus on the moderating role of industry concentration and firms’ financial constraints. Our international sample also allows us to exploit the effect of country-level informal institutions.

This study examines how maturity mismatch, a specific type of financial structure of firms, affects corporate outward foreign direct investment (OFDI).

Using the number of newly established foreign subsidiaries in a given year as firm-level OFDI and utilizing data from Chinese listed firms between 2007 and 2022, we employ a negative binomial regression model to examine the impact of corporate maturity mismatch on the OFDI. We also make efforts to ensure the robustness of the result, such as employing an exogenous policy to establish a difference-in-difference model.

The empirical result indicates that maturity mismatch inhibits firms' OFDI. Additional test shows that maturity mismatch increases firms' financing costs and reduces firms' research and development (R&D) investment and that the negative impact of maturity mismatch on OFDI is predominantly observed in firms with high financial constraints and low R&D intensity, indicating that maturity mismatch may affect firms' OFDI through the financing cost channel and the R&D investment channel.

Corporate maturity mismatch is common in China and similar emerging markets. However, research on the economic consequences of maturity mismatch, especially its impact on firms' overseas expansions, is rare. This study establishes the relationship between corporate maturity mismatch and OFDI, contributes to the literature on the relationship between financial factors and OFDI, and provides policy implications for emerging market countries.

This study aims to investigate the emerging and attractive phenomenon of sustainable performance influenced by the role of effective knowledge management with the mediation effect of green innovation. This study incorporated the formative construct of knowledge management, which consists of knowledge creation, acquisition, knowledge sharing and knowledge application that collectively predict sustainable performance and enable the firms to become innovative under a greening perspective. This study contributed to the body of knowledge by explaining the effect and influence of knowledge management practices and greening perspective on sustaining performance.

The empirical evidence of this relationship is examined in the current research to establish effective knowledge management practices for ensuring sustainability in Malaysia’s production and service industry. The data was collected from individuals from Malaysia’s small and medium enterprise (SME) sector by using a convenience sampling technique, and analysis was performed by using the SmartPLS4.

This study’s results revealed that knowledge management influences performance by inclusion of green practices. Similarly, green innovation predicts sustainable performance; finally, green innovation mediates the relationship between knowledge management and sustainable performance. Organizations are required to ensure knowledge management practices, including the creation of knowledge, acquisition, sharing and application of knowledge to sustain performance, with a mediation effect and an essential element of green innovation that empirically explains the association between knowledge management practices and performance.

The scope of research is limited and restricts the capacity of findings for a broader context inside Malaysia. There is a need to consider the organizational culture, contextual elements and leadership styles in investigating and explaining the critical phenomenon of sustainable performance.

Organizations are required to ensure knowledge management practices, including the creation of knowledge, acquisition, sharing and application of knowledge to sustain performance, with a mediation effect and an essential element of green innovation that empirically explains the association between knowledge management practices and performance.

Sustainable performance has the potential to increase the economic, social and environmental concerns of the firm, as strategies must be performance-centric to achieve the objectives. This research effort can assist Malaysia’s SME sector from various perspectives. This study provides the basis for taking the initiatives for knowledge management by focusing on creation, acquisition, sharing and application practices for achieving sustainable performance. This study incorporated the emerging concept of green innovation for its actions and strategies to achieve sustainable performance, and the actions of firms to adopt and implement the green practices that influence sustainable performance.

The framework for this study is novel. This study has been conducted to determine the sustainable business performance influenced by knowledge management, technological advancements and green supply chain management, moderated by leadership support. This study incorporated the formative construct of knowledge management, which consists of knowledge creation, acquisition, knowledge sharing and knowledge application that collectively predict sustainable performance and enable the firms to become innovative under a greening perspective. This study contributed to the body of knowledge by explaining the effect and influence of knowledge management practices and greening perspective on sustaining performance.

Research on corporate social responsibility (CSR) within the real estate sector is limited, and the precise workings of its impact are still unclear. Under the premise that real estate enterprises face environmental uncertainty in China, this study explored the impact of CSR on real estate enterprise value.

To investigate the impact of CSR on enterprise value, we studied 111 real estate enterprises with A-shares listed on Shanghai and Shenzhen stock exchanges from 2010 to 2020, and performed empirical tests to determine the moderating effect of environmental uncertainty on this relationship.

(1) The fulfillment of corporate social responsibility (CSR) significantly influences the value of real estate enterprises. A sub-dimensional analysis reveals that fulfilling stakeholder and social welfare responsibilities within CSR positively impacts enterprise value, whereas environmental responsibility does not exert a notable effect. (2) The uncertainty associated with environmental changes profoundly affects the relationship between CSR and the value of real estate enterprises. More precisely, as environmental uncertainty increases, it amplifies the beneficial impact of CSR on enterprise value.

These findings are valuable for real estate enterprises as they navigate the transition towards sustainable development, and they also provide insight for the government in formulating policies aimed at regulating the real estate sector.

This study complements the existing discussion and research on corporate social responsibility (CSR) and enterprise value in the real estate industry, while elucidating the underlying mechanism of how environmental uncertainty mediates the relationship between the two.

This study mainly explores how ESG performance (ESG stands for Environment, Social, and Governance) affects corporate downside risk through innovation input and innovation output, thereby promoting sustainable development of enterprises.

Using Chinese A-share listed companies from 2014 to 2022 as research samples, a stepwise regression method is used to empirically test the impact of ESG performance on corporate innovation and downside risk by constructing multiple multivariate primary regression models.

ESG performance is beneficial for obtaining external resources and alleviating principal-agent problems. It can promote enterprises to increase innovation input and improve innovation output, thereby enhancing their core competitiveness, and suppressing their downside risk. This inhibitory effect is more significant in non-state-owned enterprises, non-high-tech enterprises, and enterprises where the chairman and the general manager are not combined in one. Further additional analysis has found that equity concentration weakens the inhibitory effect of ESG performance on corporate downside risk, equity balance strengthens the inhibitory effect of ESG performance on corporate downside risk, indicating that a mutually restrictive equity structure is conducive to promoting enterprises to actively fulfill ESG responsibility, thereby improving corporate innovation level and resolving their downside risk.

Enterprise managers, policy makers, and other practitioners can clearly see the benefits of implementing ESG measures, further strengthen their confidence in sustainable development, actively apply ESG concepts to the entire production and operation process of enterprises, increase attention and implementation of ESG elements, and promote the healthy and vigorous development of enterprises and macroeconomics.

The research conclusions reveal the inherent mechanism by which ESG performance empowers enterprises to improve their innovation level and reverse their performance decline, effectively expanding the theoretical achievements of ESG performance in enterprise innovation and risk management.