• 详情 Double-edged Sword: Does Strong Creditor Protection in the Bankruptcy Process Affect Firm Productivity
    Using data from Chinese A-share listed firms from 2015 to 2022, a difference-in-differences model is employed to empirically examine the impact of bankruptcy regimes, marked by the establishment of the bankruptcy court, on firms’ total factor productivity (TFP). The results show a significant decline in TFP among firms in regions following the establishment of the bankruptcy court. This result remains valid after a series of robustness tests. Mechanism tests reveal that bankruptcy court heightens firms’ risk aversion by endowing excessive rights to creditors. Consequently, firms tend to downwardly adjust capital structure, curtail innovation investment, and accumulate liquid assets as coping measures, ultimately contributing to a decline in TFP. However, well-developed market mechanisms can alleviate the negative impact of bankruptcy court excessively protecting creditors. Specifically, when firms are located in regions with weak government intervention and strong financial development, as well as in market environments with low uncertainty and strong competition, this negative impact can be mitigated. Moreover, we find that under bankruptcy court operations, while a series of risk reduction measures taken by firms triggers a decline in TFP, it mitigates the risk of financial distress. These findings provide fresh insights into the dual nature of creditor protection and offer valuable references for governments to improve the bankruptcy legal system.
  • 详情 Land Markets and Labor Productivity: Empirical Evidence from China
    This study investigates the impact of the land rental market (LRM) on labor productivity in rural China. Particular attention is given to farm and non-farm labor productivity. Using 2012 household-level data and a multinomial endogenous switching treatment regression (MESTR) technique, we find that rural households renting-in farmland increased labor productivity in the farm sector by about 55%, while labor productivity in the non-farm sector decreased by about 6%. We also find that rural households renting-out farmland had lower labor productivity in both the farm and non-farm sectors by 13% and 9%, respectively. More family labor transferred from the farm to the non-farm sector after renting-out land.
  • 详情 Land Allocation and Industrial Agglomeration: Evidence from the 2007 Reform in China
    This paper highlights the crucial role of land allocation mechanisms in promoting industrial agglomeration by examining China’s 2007 industrial land market reform. By introducing transparency into the land-selling process, the reform facilitated more buyers to compete for land (reflected by increased land sale prices), enabling local governments to allocate land to the most suitable users. Combining comprehensive data sets that include information on initial local industrial structure, new industrial establishments, and industrial land transactions, the empirical analysis finds that the reform significantly increased the entry of firms from industries aligned with local specialization, particularly in areas that implemented the reform more strictly. A back-of-the-envelope calculation indicates a 1.3% increase in the national average total factor productivity of new entrants over three years post-reform due to a better match between new entrants and local industry specialization. Supporting evidence demonstrates the reform’s positive effect on economic growth (reflected in changes in nighttime lights), potentially through increasing local firms’ TFP.
  • 详情 The Missing Piece: Incorporating Organizational Factors in Employee Motivation Research
    The paper discusses the concept of employee motivation in the workplace and its importance for organizational success. It highlights the gap in literature regarding the most effective ways to motivate employees, which mainly focuses on individual factors such as personality traits and motivational theories. The paper aims to explore the impact of both individual and organizational factors on employee motivation and to determine the most effective ways to motivate employees. The existing academic research on employee motivation is plagued by contradictions and inconsistencies, particularly regarding the emphasis on individual factors as the primary drivers of motivation and ignoring the impact of organizational factors. The paper argues for a more holistic approach to employee motivation that considers both individual and organizational factors. [译]本文探讨了工作场所中员工激励的概念及其对组织成功的重要性。它强调了关于激励员工的最有效方法的文献中存在的空白,这些文献主要集中在个人因素上,如人格特质和激励理论。本文旨在探讨个人和组织因素对员工激励的影响,并确定激励员工的最有效方法。现有的关于员工激励的学术研究充满了矛盾和不一致,特别是在强调个人因素作为激励的主要驱动力而忽视组织因素的影响方面。本文主张采用一种更全面的员工激励方法,同时考虑个人和组织因素。
  • 详情 The Impact of Digital Transformation on Online Positive Sentiment: Evidence Fromchinese Stock Forum
    This study investigates how digital transformation affects public sentiment toward firms on social media platforms in China. Using 2008-2022 data on Chinese listed companies and multivariate regression analysis, this paper identifies that digital transformation boosts positive online comments and sentiment. This relationship is mediated by gains in total factor productivity from digital initiatives. Moreover, concurrent green transformation positively moderates the effect, amplifying the impact of digital moves on online positive sentiment. Heterogeneous results reveal that the digital transformation effect on online positive sentiment is greater for state-owned, high-tech, and large companies. To our knowledge, this is the pioneering study to examine the linkage between corporate digital transformation and online public sentiment. The findings reveal whether, how, and when digital transformation shape more favorable public sentiment and online buzz. Companies can leverage digitalization, productivity improvements, and green development to foster positive perceptions and enhance their online reputation.
  • 详情 Go with the flow? Local industrial policymaking and its influence on firm productivity
    This study examines factors that determine prefectural industrial policies and their impact on firm total factor productivity (TFP), utilizing a natural language processing algorithm and data from the Report on the Work of the Government in China. We find that compliance with upper-level governments is crucial in shaping prefectural industrial policies. When an industry is favored by the upper-level government, the probability of the prefectural government’s favoring that industry increases. However, prefectural policies driven by political compliance have a minimal positive impact on TFP, due to inadequate implementation of policy measures like tax deductions, preferential loans, and land price discounts.
  • 详情 The Effect of Executive Team Heterogeneity on Firms' Total Factors of Production: Evidence from China
    This paper explores the impact of the three kinds of heterogeneity of the executive team on the enterprise's total factor productivity and the mechanism of the impact of the heterogeneity of the executive team on the enterprise's total factor productivity, with the Shanghai and Shenzhen A-share listed companies in China as the research samples in the period of 2010-2022. The final results of the study found that (1) the heterogeneity of the professional background of the executive team, the heterogeneity of the overseas experience, and the heterogeneity of the financial background of the military contribute to the increase in the total factor productivity of the enterprise. (2) Improving the financial flexibility of the enterprise, improving the quality of the internal control of the enterprise, and improving the research and development and innovation of the enterprise are effective paths for the rise in the level of the enterprise's total factor productivity.
  • 详情 Do Anticipated Government Environmental Audits Improve Firm Productivity?Evidence from China
    We investigate the impacts of anticipated government environmental audits (GEAs) on firm productivity. We use a 2009 policy set forth by China’s National Audit Office that required GEAs of local governments as an exogenous event to examine the effect of the policy announcement on firms’ total factor productivity (TFP). Our difference-in-differences tests indicate that TFP in heavily polluting firms improved more than other firms’ TFP after the announcement of the policy. We also find that to raise TFP, firms engage in green invention patents or receive government environmental subsidies. In addition, our cross-sectional analysis suggests that firms in regions where governments have strong environmental enforcement or that are in the eastern regions of China increase TFP more.
  • 详情 Local Government Debt and Corporate Labor Decisions: Evidence From China
    From the perspective of corporate labor employment, we examine whether debt pressure on local governments prompts them to shift part of their social responsibilities to local firms. We conduct an analysis on Chinese local government debt (LGD) data and find that when LGD is higher, local firms are less likely to cut labor costs when their sales decrease, indicating greater labor cost stickiness. We attribute this to the responsibility-shifting effect, i.e., with heavier debt burdens, local governments intervene more in corporate labor decisions by restricting employee layoffs. Consistent with this argument, we find that the effect of LGD on labor cost stickiness is more pronounced for state-owned and politically connected firms; in regions with lower marketization levels and government fiscal self-sufficient capacities; and when regional unemployment rates, macroeconomic uncertainty, and political risk are higher. We show that through responsibilityshiftingamid high LGD, local governments benefit from a reduction in social expenditures. However, firms with stickier current labor costs will have lower subsequent productivity and market value, despite local governments reciprocating with more subsidies. Overall, LGD not only adversely impacts firm financing through the crowding-out effect but also erodes firm value through the responsibility-shifting effect.
  • 详情 Do Employees at Work Keep an Eye on the Stock Market? Evidence from a Manufacturer in China
    Combining daily personnel records of an unlisted manufacturer with stock market data, we find that market overnight returns negatively predicts same-day worker output. The effect is greater on Mondays and extreme overnights. Analysis suggests that the stock market attracts (discourages) public attention when the overnight returns are extremely positive (negative), consistent with humans’ natural tendency of incorporating good news while discounting bad news. As a result, employees at work are disproportionally distracted by positive overnight returns, leading to reduced output. Additional evidence suggests that our results can hardly be explained with alternative distraction events or workers’ stock wealth concerns. This study reveals a novel channel through which the financial market shapes labor supply.