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Digital economic innovation is associated with risks. The lack of a platform's profitability weakens the operation's ability to sustain innovators and increases the possibility of the business' termination. Relevant data demonstrate a significant upward trend in the exit of Chinese innovators of the digital economy. The study aims to clarify the role of an effective government and effective market in the prevention and control of the withdrawal of innovators.

Based on balanced panel data of 31 provinces and cities from 2010 to 2018, this study uses the individual fixed effect model to study the impact of the marketization level, the market's scale and government interventions on the withdrawal of innovators. Simultaneously, based on the spatial econometric model, this study examines the spatial spillover effect of the withdrawal of innovators.

Results indicate that government interventions have an inhibiting effect on the withdrawal of innovators. Moreover, there was a positive “U”-shaped nonlinear relationship between the marketization level and the withdrawal of innovators, and an inverse “U”-shaped nonlinear relationship between the market size and the withdrawal of innovators.

The paper first studies the relationship between the exit of innovators and government intervention, marketization level and field scale; takes the lead in the research on the role of the government and effective market in the prevention and control of the exit of innovators from the perspective of the exit of innovators and puts forward policy suggestions to promote the sustainable and healthy development of fintech innovation in China from the market scale and other aspects.

The paper aims to empirically examine the role of intra-national institutions in business performance. In particular, the article develops hypotheses regarding financial marketization and business venturing with organizational slack and political connections as moderating variables.

The authors choose listed firms from the pharmaceutical industry in China and focus on the period of 2001-2009. Results from the Hausman specification test indicate that the random effects model is appropriate for data. Because the dependent variable is dichotomous, the random effects logistic regression technique in Stata is used. To check the robustness of the estimation, the random-effects Tobit regression technique in Stata is also used. Overall, models are robust and statistically significant.

It was found that the level of regional financial sector marketization is positively associated with the likelihood of engaging in corporate venturing by firms within the region. Moreover, it was found that organizational slack significantly decreases the institutional influence on corporate venturing.

This study is one of the first to theorize and empirically test the impact of intra-national institutions on corporate venturing in China’s pharmaceutical industry. Institutions matter more when organizational slack is low. Firms in the pharmaceutical industry in China do not seem completely dependent on political connections for business venturing and use organizational slack to buffer against (adverse) institutional change.

In the transitional process of promoting market-oriented interest rate, China is confronted with an important theoretical and practical issue: how to avoid bank runs and realize the smooth operation of the financial system. The purpose of this paper is to construct a bank-run dynamic model by taking into account a market environment with the transmission of multiple rounds of noise information, a comprehensive consideration of depositors’ expectation of return on assets (or earning rate/yields of assets), the efficiency of information processing and dissemination, and the different motives for premature withdrawal.

The authors discussed the dynamic process of bank runs, furnished the ratio and number of each round of bank run, and characterized the corresponding dynamic equilibrium as well. Furthermore, the authors expanded the benchmark model by incorporating the deposit insurance system (DIS) to discuss the action mechanism of DIS overruns.

The results show that DIS implementation has two opposite effects: stabilized expectation and moral hazard, by virtue of its influence over the two types of premature withdrawal motives of depositors; the implementation effect of DIS rests with the dual-effect comparison, which is endogenous to the institutional environment.

The policy implications are as follows: while implementing DIS, it is necessary to establish and improve the corresponding institutional construction and supporting measures, to consolidate market discipline and improve the supervisory role of the bank’s internal governance mechanism, so as to reduce the potential moral hazards. The financial system reform shall be furthered and the processing and dissemination efficiency of information be elevated to prompt depositors to form stable withdrawal expectations, thereby enhancing the stabilizing effect of DIS.

This paper attributes the clustered occurrence of over-guarantee crises of Chinese listed firms to behavioural interactions among them when engaged in guarantee decisions, verifying the existence of the peer effect (PE) and its role in the formation mechanism of such crises.

Reviewing the literature, the authors constructed a panel dataset of Chinese listed firms from 2011 to 2019 to empirically verify two types of PE by constructing industrial and regional PE indicators. The authors conduct grouped regressions according to firm heterogeneity and managers’ individual characteristics to explain the motives for the over-guaranteeing PE and also analysed the interaction between the financial market and the PE to reveal the external governance mechanism.

The authors find that the over-guarantee behaviour of Chinese listed firms exhibits strong industrial and regional correlations, which may lead to guarantee crises clustering. Firms with lower information quality, smaller asset size, and higher managerial overconfidence will be more likely to be influenced by other listed firms to over-guarantee. A favourable financial market environment can effectively inhibit listed firms from imitating the guaranteeing behaviour of peer firms.

This study’s results challenge the traditional theoretical perspective of independent financial decision-making, describe the interaction among listed firms in decision-making, and expand the existing theoretical literature on over-guaranteeing. The stickiness of guarantee behaviour may affect the accuracy of the authors’ estimations, and the differences between the industrial and regional PE require further research.

The PE of over-guaranteeing shows that a single firm has a “spill-over effect” on the guarantee decisions of other firms in the same industry or region. Improving the information environment of listed firms financing decision-making and establishing a more demanding guarantee access mechanism may reduce this dependence on listed firms’ decisions. Firms should also appropriately strengthen decision-making constraints on managers to avoid istortions in financial decisions due to managers’ personal cognitive biases.

Using PE theory, the authors explain the influence mechanisms of financial distress of Chinese listed firms due to industrial and regional clustering of over-guarantee behaviour from the perspective of behavioural interaction.

The 2008 global financial crisis stimulated the research interest in stock price crash risk. However, the determinants of stock price crash risk remain unclear, especially in transitional economies. The purpose of this paper is to investigate the association between corporate social responsibility (CSR) and stock price crash risk, as well as the moderating effects under different contexts.

Using firm-level data of listed firms in China from 2010 to 2019, this paper estimates with correlation analysis and multiple regression analysis.

This paper’s empirical results show that the constraint of CSR on bad news hoarding behavior can reduce stock price crash risk. Further research shows that internal CSR has a significant effect on crash risks, while external CSR has not. Additionally, CSR has a relatively weak impact on crash risk in state-owned enterprises, enterprises with higher internal control quality and enterprises with better regional financial development.

This paper contributes to the stock price crash risks literature by examining the CSR-stock price crash risk linkage in a Chinese context, revealing collective explanations under different contexts with important implications for the application of CSR in business practice.

Professor independent directors have been the subject of academic debate as to whether they can improve corporate innovation performance. Accordingly, this paper aims to investigate the relationship between professor independent directors, the marketization process and corporate innovation performance in China.

Using a sample of Chinese A-share listed companies from 2014 to 2017, this study examines how professor independent directors and the (low and high) marketization process affect corporate innovation performance.

The empirical analysis of this yields the following main results. First, enterprises with a higher proportion of professor independent directors outperform those with a low proportion of professor independent directors in terms of corporate innovation. Second, the study of introducing the marketization process finds that there is no “market failure”. Third, while professor independent directors have a significant association with innovation performance in the high-marketization group, this association is negligible in the low-marketization group, indicating that there is no “substitution effect”.

This research provides empirical evidence to support the hiring of professors with relevant backgrounds as independent directors who can contribute meaningfully to corporate governance and innovation while also fostering industrial transformation. This study also identifies that the role of professor independent directors in facilitating corporate innovation is more effective in regions with a high degree of marketization than in regions with a low degree of marketization, implying that increasing marketization benefits the role of professor independent directors in facilitating corporate innovation.

How does the regional institutional environment of China’s transitional economy influence the relationship between a firm’s R&D investment intensity and innovation performance? Based on the resource-based view and institution-based view, an empirical study was executed to identify the moderating effects of institutional environment variables from the Marketization Index of China’s Provinces: National Economic Research Institute (NERI) Report on the relationship between a firm’s R&D investment intensity and innovation performance. This paper aims to study how effectively improve the impact of R&D investment intensity on innovation performance under the influence of the institutional environment.

Against the background of China’s transitional economy, the authors present empirical evidence from panel data covering 374 Chinese A-share listed high-tech manufacturing firms on the Shanghai and Shenzhen Stock Exchange to examine the relationship between R&D investment intensity and innovation performance.

Empirical results illustrate the following: The R&D investment intensity and innovation performance displayed an inverse U-shaped relationship, and R&D investment intensity had a lagged effect on R&D output according to the uncertainty and industrialization period of R&D activities. The level of financial market development can intensify the effects of R&D investment intensity on innovation performance. The degree of government intervention weakens the effect of R&D investment intensity on innovation performance.

Based on the background of China’s institutional environment during the transition period, combined with previous research and the Marketization Index of China’s Provinces: NERI Report, selecting financial market development, government intervention level and legalization level as moderating variables to study how effectively improve the impact of R&D investment intensity on innovation performance under the influence of the institutional environment. Due to the different ownership of firms during the transition period, the appropriate impact of the institutional environment on the relationship between R&D investment intensity and innovation performance will vary. Moreover, the level of legalization would impact on innovation insignificantly.

The purpose of this paper is to contribute to the conceptualisation of state-owned enterprises (SOEs) as a mode of governance in marketisation via the perspective of historical institutionalism.

The paper is based on a qualitative case study of the marketisation of Danish passenger rail from the 1990s to date where marketisation has been set on hold since 2011 due to the activities of the SOE.

The paper shows that market governance was layered on the hierarchal governance of the SOE that was later turned into a hybrid governance mode through corporatisation. This layered set-up provided the state with a double governance grip that drove marketisation until 2011. However, the SOE as a hybrid created ripple effects between the market and the hierarchy that hampered the marketisation. The hierarchical governance turned towards centralisation and market governance was put on hold. The hybridity of the SOE was endogenously displaced via closing down of commercial activities, leading to a re-conversion of the SOE towards the hierarchical mode.

The paper contributes to the discussions about hybridity and re-centralisation in post-NPM era. It presents a case on how hybridity is altered and evolves in SOEs as a hybrid mode of governance between hierarchy and market in marketisation and how this can lead to re-centralisation.

This paper aims to study the effect of the establishment of bankruptcy courts on bond issuance market. This paper helps to predict that the introduction of bankruptcy courts in China can mitigate price distortions caused by the implicit government guarantees and promote the development of the high-risk bond market.

This paper exploits the staggered introduction of bankruptcy courts across cities to implement a differences-in-differences strategy on bond issuance data. Using bonds issued in China between 2018 and 2020, the impact of bankruptcy courts on the bond issuance market can be analyzed.

This paper reveals that bond issuance credit spreads increase and is more sensitive to firm size, profitability and downside risk of issuance entity after the introduction of bankruptcy courts. It also reveals a substantive increase in bond issuance quantity and a decrease in issuer credit ratings following the establishment of bankruptcy courts. In addition, the increase of credit spreads is more prominent for publicly traded bonds, those whose issuers located in provinces with lower judicial confidence, bonds issued by SOEs and bonds with stronger government guarantees. Finally, the role of bankruptcy courts is more pronounced in regions with higher marketization.

This paper relates to previous studies that investigate the impact of laws and institutions on external financing. It helps provide new evidence to this literature on how improvements of efficiency and quality in bankruptcy enforcements relate to the marketization of bond issuance. The results provide further evidence on legal institutions and bond financing.

Financial communication produces various texts, among which are earnings videos. The videos employ language and image in multimodal discourses to convey specific social meanings about corporate performance. The purpose of this paper is to select earnings videos and study their incorporated genres, styles and discourses.

Interdiscursivity permits hybridity because it mixes the choice of genres, styles or discourses. An interdiscursive analysis is conducted on earnings videos in English, French and Spanish from corporations in the global finance industry. It involved three sequential stages: (1) to detect the discourses, (2) to name the discourses and (3) to consider the function of the discourses.

Earnings videos are hybrid because interview and presentation genres, formal and casual styles and the discourses of financial accounting, strategic management and public relations are encountered. The genres, styles and discourses are interwoven to create an interdiscursive mix, which constructs earnings through a (pseudo)personal social relation and easified discourses. The multimodal discourses convey robust corporate performance in an interim, and their use is symptomatic of marketization. Corporations may “market” their performance to seem like a worthwhile investment to persuade (potential) investors.

The paper enriches existing research in financial communication because it studies how multimodal discourses in earnings videos are tailored for marketization. The videos have not been analyzed, and their analysis complements earlier studies on other financial communication texts. The analysis examines discourses through language and image features, whose co-deployment conveys meaning about corporations.