Foreign ownership, subjective willing, and internal control level.

Foreign shareholders are essential in the capital market. The study on A-share listed firms from 2012 to 2021 examines the impact of foreign ownership on internal control and its transmission effect. Using text analysis and machine learning methods, we construct a variable named "internal control willingness" to explore the impact of subjective willingness. The findings indicate that foreign shareholding significantly enhances internal control quality, with a more pronounced effect observed in samples demonstrating a more positive internal control willingness. Moreover, foreign shareholders contribute to the invested firm's sustainable development by enhancing internal control quality. Further research demonstrates that the positive impact of foreign shareholding is more significant in firms with legal foreign shareholders, highly competitive industries, and sound legal environments. These findings can aid host country firms in more efficiently leveraging foreign resources and provide empirical evidence for opening up China's capital market and formulating foreign investment regulations.

Enterprise innovation and audit pricing: An evidence study from China's A-share listed companies.

Driven by innovation strategy, Chinese enterprises' innovation investment, and research and development capability have been continuously improved, and the audit risk caused by this has attracted widespread attention from the academic community. This study takes China's A-share listed companies from 2013 to 2021 as samples to empirically test the relationship between innovation input and audit pricing of Chinese enterprises. Research shows that the higher the innovation investment, the higher the audit cost. High-quality corporate governance, sufficient research and development personnel, research and development subsidies, and operating cash flow can all play a negative moderating role. A good innovation environment will weaken the positive influence between innovation input and audit fees. This study theoretically confirms the risk-oriented audit pricing mechanism, which is of great significance for optimizing enterprise innovation risk management and improving audit service levels.

Evaluation of the green economic value added index in the game of enterprise capital providers.

This study explores the performance evaluation of steel enterprises, emphasizing the importance of green environmental performance. Based on the review of the current situation of green investment research, economic added value evaluation system, and game analysis of enterprise capital providers, this study discusses the comprehensive evaluation of games among enterprise capital providers from the perspective of green economic added value. It constructs a game model of capital providers from the perspective of green investment. This model is based on the probability of creditors making green bond investments and shareholders pledging equity, deriving game results, and using economic added value returns to measure enterprise performance. The main data in this study are from the CSMAR database, a corporate governance project, and the relevant environmental protection data from Nangang's annual report. The results show that the green economic added value return rate is higher than the traditional economic added value return rate, indicating that environmental investments do not reduce the operational performance of enterprises. The game of capital providers leans towards equity investment and does not enhance enterprise performance at the expense of the environment. The green economic added value index only reflects past operational performance, based on which enterprises can design reasonable performance evaluation mechanisms, encouraging capital providers to favor environmental investments. This study has important theoretical and practical significance, guiding enterprises' strategic choices during green transformation.

Will the "Environmental Fees to Taxes" Affect Firm Charitable Giving?

This study examines the impact of the 2018 "environmental protection fee to tax" policy on the charitable giving of polluting firms between 2015 and 2019 using a differences-in-differences method. This study found that implementing the "environmental protection fee to tax" policy reduced the level of charitable giving by polluters. The decline in charitable-giving levels was more pronounced among firms classified as heavy polluters, firms from the East of China, and non-state firms. The results suggest that the "environmental protection fee to tax" policy cannot only encourage firms to become more environmentally conscious but can also be used to determine the motivations behind firm charitable donations. The policy of changing environmental protection fees to taxes needs to be effectively implemented in China and strengthen the implementation effect.This study enriches the literature on environmental policies and firm charitable giving and provides empirical evidence on the economic consequences of the "environmental protection fee to tax" policy. It can also help polluters and regulators to understand the "environmental protection fee better to tax" policy and help the government to improve the external systems that regulate and guide corporate social responsibility.

China's SMEs Developed Characteristics and Countermeasures in the Post-epidemic Era.

Due to the COVID-19 outbreak, a series of chain reactions, like international trade breakdown, stock market collapse, and crude oil's collapse, have adversely affected the global economy, particularly small and medium-sized enterprises (SMEs). As a result, the Chinese government issued many fiscal and financial policies to support SMEs. This paper analyzes SMEs' coping methods and conceptual changes affected by the epidemic and distinguishes "victims" and "beneficiaries." Subsequently, based on extensive international experience and local government experience, it provides effective suggestions for the Chinese government to deal with the post-epidemic era's economic changes, policy suggestions, and coping strategies for SMEs' short-term and long-term sustainable development.

Association between strategic differentiation and firm leverage manipulation: Empirical evidence from China.

Introduction: Based on the context of the implementation of China's comprehensive deleveraging policy, this study explores the impact of firm strategic differentiation on the emergence of leverage manipulation behavior. Methodology: The A-share listed firms in Shanghai and Shenzhen from 2007 to 2020 were used as the research objects, and the data were processed using Stata software. Results: The greater the degree of strategic differentiation, the higher the likelihood of firm leverage manipulation. The effect of strategic differentiation on leverage manipulation is more significant when firms are under short-term debt service pressure. Auditor industry expertise can weaken the positive relationship between strategic differentiation and firm leverage manipulation. Further results show that the degree of strategic differentiation increases the likelihood of firm leverage manipulation by increasing the degree of financing constraints of the firm. Conclusion: This study enriches the literature on leverage manipulation, provides empirical evidence on the economic consequences of strategic differentiation, and has important implications for the precise implementation of deleveraging policies by relevant government departments, as well as a reference for external investors' decisions.

Corporate social responsibility, internal control, and firm financial performance.

As the global challenges facing sustainability issues continue to expand, the issues of corporate social responsibility (CSR) and ethical governance have become the focus of continued academic attention. CSR is important for firms to enhance their reputation and promote sustainable development. Using A-share listed firms from 2012 to 2019, this study empirically investigates the effect of CSR fulfillment on internal control and firm financial performance by constructing a regression model. The results show that there is a positive relationship between CSR and firm financial performance. Therefore, CSR fulfillment effectively improves the firm financial performance. Furthermore, this study finds that there is a partial mediating effect of internal control between CSR fulfillment and firm financial performance. Therefore, good internal control leads the firm to implement CSR, strengthen management, and improve financial performance. Further results show that the nature of ownership plays a moderating role in the mediating effect of internal control. This study enriches the mechanism of CSR on firm financial performance. Furthermore, it provides a theoretical basis for Chinese listed firms to fulfill CSR, improve ownership, and strengthen internal control.