Firstly, the article elaborates on the concepts of metaverse and industrial metaverse, pointing out that the metaverse has driven changes and optimizations in multiple dimensions such as urban form, social organization form, and industrial production form; Secondly, the metaverse has empowered urban governance in Guangzhou, improving the efficiency of urban management, enhancing the city's emergency management capabilities, improving the quality of interaction between people and the city, and promoting the construction of a smart city; Once again, the focus was on the practices and good results achieved by Guangzhou in utilizing blockchain technology, digital twin technology, generative artificial intelligence technology, unmanned aerial vehicles+AI and other technologies in urban governance and serving the public; Finally, it is clarified that metaverse related technologies will promote the integration of carbon based civilization and silicon-based civilization in urban and social governance. Humans can use silicon-based civilization technology to expand their living space and improve their quality of life, while silicon-based civilization can also draw inspiration from the culture and emotions of carbon based life, achieving more comprehensive development.

In the face of severe climate change, researchers have looked for assistance from financial instruments. They have examined how to hedge the risks of these instruments created by market fluctuations through various green financial derivatives, including green bonds (i.e., fixed-income financial instruments designed to support an environmental goal). In this study, we designed a green bond index option contract. First, we combined an autoregressive moving-average model (AMRA) with a generalized autoregressive conditional heteroskedasticity model (GARCH) to predict the green bond index. Next, we established a fractional Brownian motion option pricing model with temporally variable volatility. We used this approach to predict the closing price of the China Bond–Green Bond Index from 3 January 2017 to 30 December 2021 as an empirical analysis. The trend of the index predicted by the ARMA–GARCH model was consistent with the actual trend and predictions of actual prices were highly accurate. The modified fractional Brownian motion option pricing model improved the pricing accuracy. Our results provide a policy reference for the development of a green financial derivatives market, and can accelerate the transformation of markets towards a more sustainable economic development model.

With the increasing executive-employee pay disparity in recent years, research on executive compensation has grown exponentially. This paper reviews all articles on executive compensation published between 2000 and 2022 in the six accounting journals with the highest impact index in South Korea and China (five journals in China), and evaluates and analyzes the research in both countries. The analysis results are organized as follows: First, the research on executive compensation started earlier in South Korea than in China; second, the focus of the research on executive compensation differs between the two countries; then, the study on the determinants of executive compensation varies between the two countries; forth, the proxies for firm performance are mostly the same in the two countries; and finally, most of the studies in the two countries assert that executive compensation has a positive impact on firm performance. Based on the above research, this paper confirms that the agency theory, which has been widely validated in Western countries, is also valid in Asian countries. In addition, it provides an essential reference for future research on executive compensation in Asian countries.

This article proposes a semi-martingale approximation to a fractional Lévy process that is capable of capturing long and short memory in the stochastic process together with fat tails. The authors use the semi-martingale process in option pricing and empirically compare its performance to other option pricing models, including a stochastic volatility Lévy process. They contribute to the empirical literature by being the first to report the implied Hurst index computed from observed option prices using the Lévy process model. Calibrating the implied Hurst index of S&P 500 option prices in a period that covers the 2008 financial crisis, they find that the risk-neutral measure is characterized by a short memory in turbulent markets and a long memory in calm markets.

Many corporate executives believe blockchain technology is broadly scalable and will achieve mainstream adoption, yet there is little evidence of significant shareholder value creation associated with corporate adoption of blockchain technology. We collect a broad sample of firms that invest in blockchain technology and examine the stock price reaction to the “first” public revelation of this news. Initial reac- tions average close to +13% and are followed by reversals over the next 3 months. However, we report a striking differ- ence based on the credibility of the investment. Blockchain investments that are at an advanced stage or are con- firmed in subsequent financial statements are associated with higher initial reactions and little or no reversal. The results suggest that credible corporate strategies involving blockchain technology are viewed favorably by investors.

Comprehensive evaluation and identification of the critical regulatory determinants of carbon emission efficiency (CEE) are very important for China’s low-carbon transition. Accordingly, this paper first employs an undesirable global super-hybrid measure approach to calculate the CEE of China’s iron and steel industry (ISI). We then further use spatial error and threshold regression models to examine the spatial and non-linear effects of heterogeneous environmental regulations on CEE, respectively. Our empirical results show that (1) CEE varies significantly across China’s regions, with the eastern region having the highest CEE score, followed by the western and central regions, with the northeast region ranking the lowest; (2) command-and-control and market-incentive regulations both promote CEE, whereas the public participation approach does not significantly contribute to performance gains; (3) all three types of environmental regulations exhibit a non-linear threshold effect on CEE; (4) openness level, technological progress, and industrial concentration enhance efficiency gains, while urbanization level exerts a negative impact on CEE. Our findings have important implications for the design of environmental regulations.

The influence of informal institutions such as history and culture on corporate behavior has been widely recognized, but few studies have been analyzed from the perspective of the ruling party culture. Based on the data of the old revolutionary base areas (ORBA) in China, this paper makes an empirical test on the role of Red Culture in promoting enterprises green innovation. First, this paper finds that the stronger the Red Culture in the region where the enterprise is located, the higher the level of green innovation.Secondly, in the samples with high political sensitivity and less cultural conflict, the promoting effect of Red Culture is more obvious. This paper not only expands the relevant literature on the influence of informal system on enterprise green innovation, but also enriches the research on the influence of Chinese unique culture on enterprise management decision-making.

This study investigates whether corruption differentially affects contracting through auctions and negotiations. Using data on Chinese land-market transactions, where corruption is known to be present, we first show that, on average, it exerts similar effects on transactions carried out via auctions and negotiation. However, this finding masks important heterogeneity – auctions featuring healthy competition are less affected by corruption, and significantly less so than negotiation. We then develop a simple model of bidding under the possibility of corruption that rationalizes our findings.

This paper develops an SOE (small open economy) dynamic general equilibrium model to study the impact of climate change on the current account. By calibrating the model to Chinese economy, we find the following results. First, the current account-output ratio improves in the first decade following an increase in global temperature caused by climate change. It then deteriorates in the following next three decades. Second, the overall current account-output ratio dynamics in response to climate change is neither affected by the types and stringency of climate policies, nor by the levels and growth rates of temperature increases. Third, the impact of an increase in temperature from 1.28 ℃ to 1.5 ℃ relative to the pre-industrial periods (1850-1900) on the current account-output ratio is equivalent to that of an approximate 0.14% permanent decline in TFP. Finally, although the current account-output ratio is likely to deteriorate in the first year when temperature increases instantly, it might not be true if the coefficient of relative risk aversion, or interest rate premium is larger, or debt sensitivity to interest rate is smaller.

The “Internet celebrity economy” is a business model aimed at capitalizing on online traffic based on the purchasing power of users on social media in which “influencers”—highly influential individuals—exercise their marketing power to create a fandom. China has witnessed an abrupt outbreak in its “Wanghong” (internet celebrity) economy since 2016, eventually leading to consecutive high closes for related stocks from around 2020. The empirical findings are as follows: First, investors’ attention to Wanghong stocks and cumulative abnormal returns (CARs) are significantly positively associated. However, operational results and CARs are weakly linked, implying that the economic impact of intense influencer marketing is short-lived, and abnormal returns constitute an anomaly. Second, the positive abnormal returns of Wanghong stocks last approximately six months, which overlaps with the boom period of the Wanghong index based on influencer news articles.