How do contract performance rates affect entrepreneurs' risk-averse attitudes? Evidence from China.

Introduction: Entrepreneurs' attitudes toward risk is one of the most critical factors influencing business growth and economic development. Therefore, addressing the influencing factors and formation mechanisms of entrepreneurs' risk attitudes has become a crucial research endeavor. In this paper, we examine how contract performance rates affect entrepreneurs' risk attitudes through the mediating effect of subjective well-being as well as assess the moderating effect of the regional business environment on this relationship. Methods: The ordered probit regression technique was employed to analyze the data obtained from 3,660 sampled respondents from the 2019 China Household Finance Survey. All analysis was performed using Stata 15.0. Results: The empirical results show that contract performance rates have a substantial positive indirect effect on entrepreneurs' degree of risk aversion through improved subjective well-being. The regional business environment plays a negative regulatory role in the relationship between contract performance rates and entrepreneurs' risk aversion. Furthermore, urban-rural heterogeneity appears to consistently determine the extent of the influence of contract performance rates on entrepreneurs' risk attitudes. Conclusion: To reduce entrepreneurs' risk aversion and enhance social and economic activity, the government should improve regional business environments by taking specific measures. Our study contributes to the empirical understanding of entrepreneurs' investment decisions in the context of urban and rural environments.

Does Participation in Local Non-agricultural Employment Improve the Mental Health of Elderly Adults in Rural Areas? Evidence From China.

A rising rate of suicide among the elderly in rural China has been recognized to be triggered by mental health-associated factors. This study uses 3,397 sampled rural elderly adults from China Labor-force Dynamic Survey in 2016 to explore the response mechanism through which non-agricultural employment participation by the elderly adults in rural China can influence their mental health. Utilizing the Multivariate Regression, Instrumental Variable and Propensity Score Matching methods, we find that, the rural elderly adults who participate in local non-agricultural employment significantly improve their mental health. Self-employment tends to have a greater positive contribution to the mental health of the elderly population than waged employment. Further, work income, need for belongingness and respect, and human capital development significantly mediates the influence of participation in local non-agricultural employment on the mental health of the elderly adults. Finally, we put forward relevant policy suggestions to improving the mental health of the elderly in the countryside.