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The aim of this paper is to study the impact of the questions and answers (Q&A) between investors and enterprises from the China stock exchange investor interactive platforms on the total factor productivity (TFP) of enterprises.

To show how the interaction influences the TFP of enterprises, the authors select Q&A records from the interactive platforms related to production, R&D and technology through the Latent Dirichlet Allocation (LDA) topic model and choose A-share listed companies from 2010 to 2019 in China as a sample. To treat the data and test the proposed hypothesis, the authors applied OLS regression and endogeneity testing methods, such as the entropy balance test, Heckman two-stage model and the two-stage least squares regression.

This paper finds that interaction between investors and enterprises is positively correlated with TFP, and that improvements in content length and the timeliness of response can promote TFP. Interactive behavior mainly improves the TFP of enterprises by alleviating financing constraints and encouraging enterprises to increase R&D investment. This positive effect is more pronounced in companies with higher agency costs, non-high-tech companies and companies not supported by industrial policy.

The novelty of the research stands in the application of Python's LDA topic model to screen out Q&A records that are directly related to TFP, such as production, R&D, technology, etc., and measures the degree of information interaction between investors and enterprises from multiple dimensions, such as interaction frequency, content length and the timeliness of response.

Although employees' creativity is vital for firm innovation and overall performance, little is done to examine the potential association between creativity and employment. This paper investigates the contribution of employees' creativity, process and product innovations to firm-level employment growth.

The authors use data from World Bank Enterprise Survey and Innovation Follow-up Survey on 9503 firms covering the period 2012–2015 in 11 countries from sub-Saharan Africa and Heckman's two-stage estimation model.

This study's results indicate a positive role of creativity on firm-level employment growth. In addition, the authors find evidence for a complementary effect arising from the combination of creativity with managerial experience, staff level of education and their associated skills, in contrast, combining creativity with internal or external R&D results in a substitution effect. Interestingly, these synergy effects are pronounced for SMEs but absent for large firms.

Policy makers in developing economies of sub-Saharan Africa should stimulate company management to use free time offered to employees to be creative in the workplace as one of their key strategies to stimulate employment growth. This strategy is expected to be particularly fruitful among SMEs having some managerial experience and skilled stuff.

In contribution to innovative work practices and workforce creativity, the authors demonstrate that providing employees with free time could be an alternative way to enhance the focal firms' performance.

The purpose of this paper is to investigate how access to financing for incremental as well as radical innovation activities is affected by firm-specific structural and behavioral characteristics.

Deploying a two-stage Heckman probit model on survey data spanning the period 2000–2013 and covering 1,169 firms, this paper analyzes the effect of a firm’s engagement in incremental and radical innovation on its likelihood to get constrained in their access to external finance, and how this effect is moderated by the firm’s age and size.

In line with earlier research, it is confirmed that the type of innovation matters for the access to external finance, but in a more nuanced way than generally portrayed. While incremental innovation activities have little negative effect on the access to external finance, radical innovation activities tend to be penalized by capital markets. This effect appears to be particularly strong for small firms.

This paper provides nuanced insights into the interplay between types of firm-level innovation activities, structural characteristic and access to external finance.

This study aims to investigate the impact of supply chain concentration (SCC) on corporate research and development (R&D) investment and determine the moderating roles of industry concentration and financing constraints on the relationship between SCC and R&D investment.

The study collected data from Chinese listed companies, used the fixed effects model to test the research hypotheses and further used the two-stage Heckman test and propensity score matching (PSM) to address potential endogeneity issues.

The result reveals a negative impact of SCC on corporate R&D investment. In addition, industry concentration mitigates the negative impact of SCC on corporate R&D investment, but financing constraints strengthen the negative impact.

This study introduces the concept of SCC and empirically tests its effect on R&D investment, further explaining the lack of corporate innovation. This study inspires companies to strengthen SC management and weigh the level of SCC with environmental factors.

This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.

Using data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.

Overall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.

This study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.

The relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.

Given the limited studies that have started to focus on contexts where integrated reporting (IR) is voluntarily adopted, this paper aims to explore the moderating role of institutional characteristics on the association between voluntary report release and analyst forecast accuracy.

This study uses a quantitative empirical research method grounded on voluntary disclosure theory to provide empirical evidence on an international sample of companies choosing to release integrated reports. Preliminarily, a cluster analysis is used to group countries according to institutional patterns. Multivariate analyses detect the associations between report release choice and analysts’ forecast accuracy across clusters. Multiple econometric approaches are used to address the endogeneity concerns.

IR release is not informative for the market unless considering systematic variations across different institutional settings. Analysts’ forecast is more accurate for IR adopters located in strong institutional enforcement settings than for all the other companies. In the strong institutional setting that is also characterized by a pluralistic society, IR release benefits for the market are conditioned by the fact that the choice to release IR depends on environmental, governance and social disclosure-based managers remuneration and disclosure requirements. In weak institutional settings, IR release is not beneficial for the forecast accuracy.

Academics and practitioners can gain understanding of the usefulness of voluntary IR across different institutional settings.

The study advances the understanding of the IR’s informativeness, overcoming the common dichotomous distinctions between strong and weak institutional settings.

This study aims to examine whether and how gender diversity on corporate boards is associated with voluntary nonfinancial disclosures, particularly water disclosures.

This study uses corporate water information disclosure data from Chinese listed firms between 2010 and 2018 to conduct regression analyses to examine the association between female directors and water information disclosure.

Empirical results show that female directors have a significantly positive association with corporate water information disclosure. Additionally, internal industry water sensitivity of firms moderates this significant relationship.

This study determined that female directors can promote not only water disclosure but also positive corporate water performance, reflecting the consistency of words and deeds of female directors in voluntary nonfinancial disclosures.

This study aims to focus on the analysis of the internal mechanism of farmers’ ecological cognition and the behaviour of Grain for Green Project (GGP), and the further relationship between ecological cognition and ecological aspiration, proposing climate change strategies and management from the perspective of farmers.

Theory of planned behaviour and social exchange theory were used to construct a theoretical framework and an ecological cognition under the influence of external factors, the aspiration and the behaviour of GGP, using ecological fragile areas in Bazhou and Changji, Xinjiang of 618 peasant households’ survey data. The structural equation model and Heckman two-step model were applied to analyse the relationship between ecological cognition and ecological aspiration of farmers, the impact of peasant households’ ecological cognition and aspiration to the behaviour of GGP and the influence factors of GGP behaviour.

This research’s results show that the three characterizations of ecological cognitive variables, attitude towards the behaviour (AB), subjective norms (SN) and perceived behaviour control (PBC), have significant positive impact on farmers’ GGP ecological aspiration. The comprehensive impact path coefficients of ecological cognition are PBC (0.498) > SN (0.223) > AB (0.177). Also, income change is a moderating variable, which has a significant moderating effect on the influence of AB and SN on ecological aspiration. Further, farmers’ ecological cognition has an influence on the behaviour of GGP, and the change of farmers’ income has a significant positive effect on farmers’ choice of returning farmland to forests.

The ecological protection policy suggestions and countermeasures can be drawn from the research conclusions, adapted to China’s ecologically fragile regions and even similar regions in the world to response the climate change.

Combining the theory of planning behaviour and social exchange, this paper empirically analyses the path of farmers’ ecological cognition and ecological aspiration, as well as the influencing factors.

The purpose of this paper is to examine the effects of the post-merger integration duration on acquiring firms’ leverage behavior before and after a merger, using a dynamic model in which full merger benefits cannot be consumed at the instant of a merger, but rather after a pre-specified post-merger integration period.

This paper presents a dynamic model and empirical tests that describe the impact of the post-merger integration period on the capital structure dynamics of the acquiring and target firms prior to a merger and during the post-merger integration period. By incorporating costs associated with the post-merger integration period, the model can provide new implications for the leverage behavior around the merger.

Empirical tests support the model implications by showing that the longer the expected post-merger integration process, the less likely the acquirer will structure the financing of the combined firm in a manner that increases firm leverage. Since integration takes time to complete, an acquirer tends to retain financial flexibility during the integration process by assuming lower levels of debt when determining the capital structure of the merged entity.

The model generates new implications related to acquiring firms’ leverage dynamics along with the method of payment choice. The analysis of the duration of the post-merger integration period extends both the theoretical and empirical literature that tacitly assumes that the merger-related synergy is realized immediately at the merger date. This is the first model in the literature that assumes that both the acquiring and the target firms can change their capital structure overtime, which allows us to analyze both the financing structure and the merger timing. Previous empirical studies also ignore the integration period in the analysis of the method of payment choice and leverage behavior around mergers. The model in this paper can be extended along a number of dimensions.

The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory board (SB)’s optimal tenure on the association between PCBs and over-investment in labor.

We constructed the proxy for PCBs using a dummy variable set to 1 (one) if a firm has politically-connected boards and zero (0) otherwise. For the robustness check, we used the number of politically-connected members on the boards as the proxy for PCBs.

We find that the presence of PCBs reduces over-investment in labor. Consistent with our prediction, we found no significant association between PCBs and under-investment in labor. We also find that the SB with optimal tenure strengthens the negative association between PCBs and over-investment in labor. In our channel analysis, we find that the presence of PCB mitigates over-investment in labor through a higher dividend payout ratio.

Due to the unavailability of data in firms’ annual reports regarding the number of poorly-skilled and highly skilled employees, we were not able to examine the effect of low-skilled and high-skilled employees on over-investment in labor. Also, we were not able to examine over-(under-)investment in labor by drawing a distinction between general (generalist) and firm-specific human capital (specialist) as suggested by Sevcenko, Wu, and Kacperczyk (2022). Generally, it is more difficult for managers to hire highly-skilled employees, specialists in particular, thereby driving the choice of either over- or under-investing in the labor forces. In addition, in the firms’ annual reports, there is no information regarding temporary employees. Therefore, if and when such data become available, this would provide another avenue for future research.

Our study offers several practical implications and insights to stakeholders (e.g. insiders or management, shareholders, investors, analysts and creditors) in the following ways. First, our study highlights significant differences between capital investment and labor investment. For instance, labor investment is considered an expense rather than an asset (Wyatt, 2008) because, although such investment is human capital and is not recognized on the firm’s balance sheet (Boon et al., 2017). In addition, labor investment is characterized by: its flexibility which enables firms to make frequent adjustments (Hamermesh, 1995; Dixit & Pindyck, 2012; Aksin et al., 2015), its non-homogeneity since every employee is unique (Luo et al., 2020), its direct impact on morale and productivity of a firm (Azadegan et al., 2013; Mishina et al., 2004; Tatikonda et al., 2013), and its financial outlay which affects the ongoing cash flows of a firm (Sualihu et al., 2021; Khedmati et al., 2020; Merz & Yashiv, 2007). Second, our findings reveal that the presence of PCBs could help to reduce over-investment in labor. However, if managers of a firm choose to under-invest in labor in order to obtain better profit in the short-term through cost saving, they should be aware of the potential consequences of facing a financial loss when a new business opportunity suddenly arises which requires a larger labor force. Third, our findings help stakeholders to re-focus on the labor investment. This is crucial due to the fact that labor investment is often neglected by those stakeholders because the expenditure of labor investment is not recognized on the firm’s balance sheet as an asset. Instead, it is written off as an expense in the firm’s income statement. Fourth, our findings also provide insightful information to stakeholders, suggesting that an SB with optimal tenure is more committed to a firm, and this factor plays an important role in strengthening the negative association between PCBs and over-investment in labor.

First, our findings provide a valuable understanding of the effects of PCBs on over-(under-)investment in labor. Stakeholders could use information disclosed in the financial statements of a publicly-listed firm to determine the extent of the firm’s investment in labor and PCBs, and compare this information with similar firms in the same industry sector. Second, our findings give a better understanding of the association between investment in labor and political connections , which are human and social capital that could determine the long-term survival and success of a firm. Third, for shareholders, the appointment of board members with political connections is an important strategic decision to build political capital, which is likely to have a long-term impact on the financial performance of a firm; therefore, it requires thoughtful consultation with firm insiders.

Our findings highlight the role of PCBs in reducing over-investment in labor. These findings are significant because both investment in labor and political connections as human and social capital can play an important role in determining the long-term survival and success of a firm.