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Momentum-based strategies are widely used by asset managers and have attracted considerable research interest. This paper studies industry momentum from the perspective of correlation consolidation, which consolidates industries according to the correlation coefficient of their historical returns and assesses momentum effects after the consolidation. Studying all Chinese stocks listed on the Shanghai and Shenzhen A-share market with a sample range from June 1, 2007, to December 31, 2020, empirical results show that monthly returns of the industry momentum and Sharpe ratio after the correlation consolidation both increase. The optimal method for consolidating industries is to use the correlation coefficient of 0.75, which increases the Sharpe ratio from 0.71 before the correlation consolidation to 1.16. [ABSTRACT FROM AUTHOR]

China is facing a serious land resource mismatch problem, which will profoundly affect the acceleration of economic growth and technological innovation. Reform of the industrial land allocation system can solve the mismatch of land resources, and that also has an important impact on the promotion of economic and technological development. This paper selects the data of Chinese A-share listed companies in Shanghai and Shenzhen from 2007 to 2020 as the research sample, constructs a double machine learning model, and empirically investigates the impact of a new industrial land use policy on firms' green innovation behavior. The study shows that: (1) the new industrial land use policy significantly promotes firms' substantive and strategic green technological innovation, and the effect on substantive green technological innovation is greater than that on strategic green technological innovation. (2) The enhancement of R&D investment sustainability and the "talent pool" effect are important mechanisms through which the new industrial land use policy influences firms' substantive and strategic green technological innovation. Meanwhile, the new industrial land use policy is conducive to firms' green coinnovation. (3) There is heterogeneity in the effect of the new industrial land use policy, which can significantly promote green technological innovation of firms in the eastern region, while it does not play a significant role in the green innovation behavior of firms in the central and western regions. The above research results enrich the research in the field of industrial land and innovation, help to understand more comprehensively the mechanism of new industrial land affecting firms' green technological innovation, and provide policy insights for strengthening the application of industrial land allocation reform in firms' green innovation. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of Internet infrastructure construction on enterprise transformation and upgrading and the underlying mechanisms using a progressive double difference model based on a quasi-natural experiment of the Chinese government's "broadband China" policy by matching A-share listed companies and city panel data from 2008–2019 in Shanghai and Shenzhen. The conclusions show that the "broadband China" policy can significantly promote the transformation and upgrading of enterprises in pilot cities. However, its effect shows a diminishing marginal contribution, and the policy is more effective for traditional manufacturing industries during the implementation period. Enhancing human capital and reducing internal transaction costs are two important channels for Internet infrastructure construction to help enterprises transform and upgrade. Combined with the life cycle theory, we find that the "broadband China" policy has the most significant impact on changing and upgrading enterprises in the growth and maturity stages, especially those in the manufacturing industry, but not those in the maturity and decline stages of the service industry. Finally, a series of robustness tests using Monte Carlo simulation, entropy balance method, and instrumental variables method, excluding other factors, show that the findings are still robust. [ABSTRACT FROM AUTHOR]

Currently, countries worldwide are embracing digital strategies, enabling enterprises to utilize digital technology, digital supply chains, blockchain, and additional digital measures to increase their competitiveness. This paper analyzed the correlation between the digital transformation of manufacturing export enterprises and their business and export performance, focusing on China's manufacturing export enterprises through empirical analysis. The study investigated the influence of digital transformation on enterprise performance. Using the Resource Based View theory and Trade theory, hypotheses were proposed and regression models were developed to analyze a sample of 1007 enterprises listed on the Shanghai and Shenzhen Stock markets from 2012 to 2019. The study conducted regression analysis, intermediate effect test, robustness test, stage lag, and heterogeneity analysis. The study found that (1) Manufacturing export enterprises listed in the stock market implemented digital transformation, leading to a significant positive impact on their overall performance. (2) Digital transformation led to cost reduction, improved R&D intensity, and enhanced human resources, among other benefits for enterprise performance. (3) According to the fractal analysis, non-state-owned enterprises exhibited more favorable effects on enterprise performance, and the digital transformation of manufacturing export companies in developed regions had a more significant impact on their performance. Finally, the study's empirical results yielded pertinent proposals for digital transformation. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to empirically analyze the impact of chief executive officer (CEO) turnover on strategic change and explore the mediating role of organizational slack between them, as well as the moderating role and joint moderating role of top management team (TMT) external social network, ownership nature and industry type. Design/methodology/approach: Based on the upper echelons theory, resource allocation theory and structuration theory, this paper takes the unbalanced panel data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges of China from 2001 to 2018 as the research sample, uses ordinary least squares (OLS) regression method and fixed effect model to study the relationship between CEO turnover and strategic change, and focuses on the mediating mechanism and moderating mechanism between them. Findings: The authors find that CEO turnover is positively related to strategic change. When a CEO turns over, a new CEO will initiate strategic change. Precipitation organizational slack plays a mediating role between CEO turnover and strategic change. Non-precipitation organizational slack has no mediating effect between CEO turnover and strategic change, which is embodied as "suppressing effects." When the non-precipitation organizational slack variable is controlled, the impact of CEO turnover on strategic change will be enhanced. TMT external social network, ownership nature and industry type all negatively moderate the relationship between CEO turnover and strategic change. TMT external social network and ownership nature have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive effect on strategic change in both state-owned enterprises and non-state-owned enterprises, but the promotion effect is stronger in non-state-owned enterprises. When TMT external social network is large, the positive effect of CEO turnover on strategic change in state-owned enterprises is from strong to weak, but in the non-state-owned enterprises is from weak to strong. TMT external social network and industry type have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive impact on strategic change in high-tech enterprises and non-high-tech enterprises, but the promotion effect is stronger in non-high-tech enterprises. When TMT external social network is large, the positive impact of CEO turnover on strategic change in high-tech enterprises is from strong to weak, but in the non-high-tech enterprises is from weak to strong. Originality/value: On the basis of previous studies, this paper further expands the research scope of the mechanism of CEO turnover on strategic change, echoing the research arguments of relevant scholars. At the same time, the research results reveal the mechanism of organizational slack, TMT external social network, ownership nature and industry type in the relationship between CEO turnover and strategic change, and further deepen the application of upper echelons theory, resources allocation theory and structuration theory in China. In addition, the research conclusions of this paper also provide reference value for Chinese enterprises in carrying out strategic change, promoting enterprise transformation and improving the level of corporate governance, and help to enhance the understanding and attention of Chinese enterprises to CEO turnover, organizational slack, TMT external social network, strategic change and corporate governance under the background of high-quality economic development. [ABSTRACT FROM AUTHOR]

In this paper, we first proposed a statistical test for the detrended multiple moving average cross-correlation coefficient DMMC (s). The DMMC (s) mainly was used to analyze the correlation between the dependent variable y and other n independent variables x i . We proved that DMMC (s) approximately obeys the chi-square distribution. We studied the statistical properties of the DMMC (s) between normally distributed random sequences and power-law ARFIMA long memory random sequences. Furthermore, we discussed the influence of the cross-correlation among the target variable and independent variables on DMMC (s). Finally, we further study the application of DMMC (s) to China's stock markets and China carbon emission trading markets to investigate multiple cross-correlation. The empirical results show that there is a strong multiple correlation between China's Shanghai, Shenzhen and Hong Kong stock markets, while the correlation between China's carbon markets is not significant. This paper provides new ideas and theoretical support for exploring the correlation between multiple variables, which has implications for investors and policymakers. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Planning Education & Research is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

COVID-19 has seriously impacted China's real economy and directly threatened the survival and healthy development of enterprises. Based on the data of Chinese A-share listed enterprises in Shanghai and Shenzhen from 2017 to 2021, this paper empirically examines the impact and mechanism of COVID-19 on enterprises financial distress. The findings are as follows: (1) The impact of COVID-19 significantly increases the risk of enterprises financial distress. (2) There are differences in the effect of COVID-19 on the financial situation of enterprises with different characteristics, with significant negative impacts on enterprises in industries such as mining and manufacturing, as well as smaller enterprises and those located in the central and western regions. (3) Digital transformation and government subsidies can alleviate the negative effects of COVID-19 on enterprises financial distress. The paper provides a basis for enterprises to recover from financial difficulties as soon as possible, enhance competitiveness, and realize sustainable development. [ABSTRACT FROM AUTHOR]

The deteriorating global environment has attracted wide attention in various countries. How to curb environmental pollution and achieve sustainable economic growth has become an urgent problem that we must face. As an effective tool for pollution control, environmental tax has been implemented in many developed countries and has achieved good results. As the largest developing country in the world, China introduced the first environmental tax law in its history in December 2016, which is regarded as a major reform of the green tax system. To explore the implementation effect of environmental tax in China, this paper takes 3867 Chinese listed enterprises (2015–2020) in Shanghai and Shenzhen A shares as the research sample and explores the microeconomic effect of environmental tax reform using the difference in difference (DID) method. It is concluded that the environmental tax reform can produce a positive impact on the corporate profit margins while curbing the enterprise pollution behavior. This positive effect comes from the investment improvement effect and the cost-saving effect, and this effect is heterogeneous between different regions and property rights enterprises. Therefore, the design of the tax system must be implemented with different measures. Environmental taxes have achieved positive policy results in China, contributing to sustainable economic growth. This tax reform has an important reference value for the developing countries in the industrialization stage. [ABSTRACT FROM AUTHOR]

Since 2005, China's outward foreign direct investment (OFDI) has increased year by year, which corresponds to the continuous decline of energy intensity. But there is limited literature concerning their relationship nowadays. To answer whether or not OFDI can reduce energy intensity, this paper selects data from 29 provinces in China from 2006 to 2015 and establishes a fixed-effects model to analyze the relationship. Further, this paper divides OFDI into technology-intensive ones and non-technology-intensive ones in order to distinguish the impact of outward foreign direct investment from different types of enterprises on the energy intensity. Combined with the micro-data of A-share listed companies in Shanghai and Shenzhen stock exchanges, we find that OFDI plays a significant role in reducing the energy intensity in China, and OFDI of high-technology-intensive enterprises has a greater effect on the decrease of energy intensity than that of low-technology-intensive enterprises. This paper classifies OFDI from the perspective of enterprise technology intensity, which enriches the existing research results in the field of international cooperation and energy intensity. It also overcomes the limitations of previous literature data and provides new evidence for encouraging high-tech enterprises to strengthen international cooperation from a micro level. [ABSTRACT FROM AUTHOR]

With the rapid growth rate of China's economy, the extensive pattern of economic growth of "high energy consumption and low output" has magnified the constraints of energy issues on China's economic development and environmental protection, which highlights the importance of improving energy efficiency. As one of the three major economic zones in China, the Pearl River Delta region also faces high energy consumption and pollution emissions while developing at a high speed. Hence, improving the energy efficiency of the Pearl River Delta region is needed, as it not only is conducive to driving its development of the surrounding green economy, but also promotes the subsequent sustainable economic development. However, there are few literatures on the calculation and analysis of energy efficiency in the Pearl River Delta, and lacking a systematic analysis of input–output index system of energy efficiency measurement. Therefore, this paper calculates the energy efficiencies and the Malmquist indexes based on the panel data of the nine cities in the Pearl River Delta from 2005 to 2019 through super-efficiency SBM model and Malmquist index method by using MAXDEA and MATLAB software. The result illustrates that all regions in the Pearl River Delta except Guangzhou and Shenzhen show obvious energy inefficiency, which is mainly caused by the imbalance between technical efficiency and scale efficiency. Based on the calculation results, this paper gives some relevant suggestions for the further approach of energy reform in the Pearl River Delta according to the calculation results. [ABSTRACT FROM AUTHOR]

Storm surge inundation hazards annually cause billions in economic losses globally, and millions of coastal residents live in danger. Properly understanding and assessing storm surge inundation are essential measures to guarantee the sustainable construction of coastal cities. In this paper, a differentiated urban risk semi-quantitative assessment method for storm surge inundation is proposed to evaluate the risk of storm surge hazard causing inundation to the coastal city. The Finite Volume Community Ocean Model (FVCOM) and the Jelesnianski model restore the historical storm surge cases to reveal hazards. The point of interest data and the urban land use and land cover data are utilized to assess the vulnerability of the coastal city, and a differentiated risk assessment method is proposed to evaluate the risks for urban facilities in the hazard. As an illustration, the method is utilized to assess storm surge Mangkhut in 2018 in Shenzhen, Guangdong Province, China. The vulnerability of the Shenzhen downtown area is assessed and designed as a map to visualize the strategic area. According to numerical simulation and inundation region mapping, the danger and the risk assessment map are made to intuitively present the distribution of the hazard-affected region. [ABSTRACT FROM AUTHOR]

Since December 2019, the COVID-19 pandemic has quickly spread across the world. The traditional understanding of the relationship between wealth and the spread of contagious diseases is that similar to many precedent epidemics, the pandemic spread easily in poor neighborhoods in many countries. The environmental and socioeconomic implications of the COVID-19 pandemic are still poorly understood, thus this paper examines the relationship between neighborhood characteristics and the spread of the pandemic through a case study of Shenzhen, a Chinese megacity with many low-income rural migrants. The major finding is that wealthier and larger neighborhoods in Shenzhen were more likely to be infected in the first wave of the pandemic in 2020. This spread pattern is likely to result from China's strict control to prevent the pandemic, human mobility, and demographic characteristics such as income. This finding reveals a new phenomenon that contrasts with the traditional understanding of the influence of wealth on the spread of epidemics. This paper enriches the understanding of the role of neighborhoods in the spread of the pandemic, and it has important public policy implications. [ABSTRACT FROM AUTHOR]

In the face of complex and changeable uncertain environments, corporate resilience is the crucial foundation for survival and sustainable development, and enhancing corporate resilience becomes an important goal for governments. In this context, this paper investigates the impact of government subsidies, as a typical government tool, on corporate resilience in crises. Based on the panel data of 2315 listed companies in China Shanghai and Shenzhen A-share market during the COVID-19 pandemic, this paper finds that: (1) government subsidies received before and during the crises can both enhance corporate resilience in crises. (2) Government subsidies enhance corporate resilience by alleviating financial constraints and boosting confidence. (3) The crises improve the efficiency of subsidies used by corporates, resulting in the enhancement of subsidies received during the crises being more pronounced than those received before the crises. This paper deepens the understanding of government subsidies' roles in crises, enriches the literature on government subsidies and corporate resilience, and provides a reference for improving government subsidies policy and enhancing corporate resilience. The government should increase government subsidies to mitigate the negative impact of uncertainty shocks on corporates and improve corporates' ability to respond to risks, and pay attention to the timing of subsidies to maximize the efficiency of government subsidies at the same time. [ABSTRACT FROM AUTHOR]

Purpose. This paper investigates the effect of cross-reporting quality transfer: the association between the merits of the financial auditor and the quality of corporate social responsibility (CSR) reporting. Specifically, we examine whether the effect of Big Four financial audits on the CSR reporting quality of Chinese listed firms differs from that of non-Big Four firms. Design/methodology/approach. This paper uses archival data and regression analysis from a sample (5257 firm-year observations) of A-share listed firms on the Shanghai and Shenzhen Stock Exchanges from 2009 to 2018. Findings. The analysis shows that when a company's financial auditor is a Big Four firm, the quality of CSR reports is higher than when it is audited by non-Big Four auditor, which in turn can be explained by differences in cross-reporting quality transfer between Big Four and non-Big Four firms. Moreover, this effect is more pronounced in non-stateowned enterprises (NSOEs) than in state-owned enterprises (SOEs), and among firms residing in high-pressure legal environments as opposed to low-pressure regions. Originality. This study extends the literature on the quality of CSR reporting based on the type of financial reporting audit provider, thus bridging the gap between financial audit and sustainability reporting practice and elucidating the cross-reporting quality transfer effect. Practical implications. The paper's findings shed light on the impact that Big Four firms have on the quality of CSR reports through financial audits, thus confirming the cross-reporting quality transfer effect in China. These findings might appeal to political decision-makers, authorities and companies given the notable contribution of CSR disclosure to the decision-making processes of stakeholders. [ABSTRACT FROM AUTHOR]

This paper uses the data of China's A-share listed companies in Shanghai and Shenzhen stock markets from 2003 to 2014 and takes the pilot emission trading policy in 2007 for a quasinatural experiment to explore the role of the pilot emission trading policy in promoting enterprises' green technology innovation. The empirical research shows a Porter effect in the emission trading system in China. Specifically, first, the emission trading policy can significantly promote enterprises' green technology innovation in pilot areas. In addition, the incentive effect of emission trading policy on green technology innovation is significantly different due to the types of green patents. Second, the incentive effect of emission trading policy on enterprises' green technology innovation is different due to the nature and scale of enterprises. The incentive effect is greater in state-owned enterprises than in non-state-owned enterprises, and it is greater in large-scale enterprises than in small-scale enterprises. Finally, the incentive effect of emission trading policy on enterprises' green technology innovation has heterogeneity of regions. It has the greatest incentive effect in eastern region, followed by western region and then central region. [ABSTRACT FROM AUTHOR]

As the Environmental Protection Law was revised and media public opinion supervise them, enterprises need to not only undertake more environmental protection responsibilities but also alleviate the contradiction between development and environment. By applying a multiple regression model, this paper studies the impact of air pollution on the management behavior of enterprises using the panel data of China's A-share polluting enterprises listed in the Shanghai and Shenzhen stock markets between 2014 and 2019. The results of this study are as follows: First, air pollution produces a positive impact on the behavior of corporate green management. Second, media reports have brought more attention to corporate pollution and increased the positive impact of air pollution on corporate green management efforts. By further considering the internal and external heterogeneity of enterprises, the impact of air pollution on corporate green management varies when the degree of enterprise pollution and the degree of local governance differ. Moreover, this paper highlights the fact that air pollution can play a significant role in corporate green management, while media attention, as a third party, plays a regulating role in environmental supervision. This provides suggestions for strengthening green management behavior of enterprises and building comprehensive environmental supervision system. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Planning Education & Research is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the era of innovation dividends, whether investors, as the main participants in the capital market, can tolerate enterprise innovation activities is the key to whether the capital market can help enterprises innovate. This paper takes the listed companies of Shanghai and Shenzhen A-shares in China that disclosed quantitative performance forecasts from 2016 to 2021 as samples, obtains the market reaction of performance forecasts through the event study method and uses them as proxy variables of investors' short-term performance expectations, and uses multiple regression analysis to explore the impact of corporate R&D on investors' short-term performance expectations. The results are as follows: (1) corporate R&D investment significantly reduces investors' short-term performance expectations (that is, investors have a significant tolerance effect on enterprises with higher R&D investment); (2) the increase in the shareholding ratio of institutional investors weakens the tolerance effect; and (3) with the implementation of China's innovation-driven strategy, the tolerance effect of its capital market on enterprise R&D gradually increases, especially for high-tech companies, but has a low tolerance effect on state-owned companies' R&D risk. The results show that investors in China's capital market are not completely rational in their response to corporate R&D, and investors are willing to bear more short-term performance losses for high R&D investment, which is consistent with prospect theory. [ABSTRACT FROM AUTHOR]

Purpose: The political influence on the determinants of capital structure has been under-researched for a long time. Taking the turnover of secretary of municipal committee as a political factor in China, this paper studies the effect of local government officials' turnover on firm's capital structure. Design/methodology/approach: Starting with all A-shares listed firms in the Shanghai and Shenzhen Stock Exchanges from 2001 to 2018, this paper implements the OLS estimation, staggered difference-in-difference approach to investigate the effects of political turnover on the choice of capital structure. Findings: The results show that, driven by government officials' turnover, firms will significantly reduce their leverage. When comparing between formal finance (bank loans) and informal finance (payables), the reduction of capital structure is mainly driven by banks, not by suppliers. Furthermore, two possible channels have been investigated. First, the reduction effects are mainly driven by the SOEs when classifying the types of corporate ownership into SOEs and non-SOEs. Second, the reduction effects exist in areas with the more intense government intervention when considering the heterogeneity of the development of institutional environment in provinces. Originality/value: This paper first contributes to the literature on the determinants of corporate choice on capital structure. Second, this paper enriches the studies on the economic consequences of local government officials' turnover. [ABSTRACT FROM AUTHOR]

The growth and transformation of China's cities since the 1980s led to a massive population movement, which created a new spatial type of informal settlement--the "Urban Village." This paper delivers an historical review of literature regarding the formation of the urban village in respect to the background of urban-rural land policy. In addition, the evolution of the urban village in China is studied from an architectural perspective. Therefore, this research is about urban architecture and informal spatial practices in contemporary China, particularly the built forms and spaces in Baishizhou urban village, which expanded due to internal migration from other Chinese cities to Shenzhen. In the end, the topic is discussed in relation to migrants' right to dwell in peace in the host city (UN, 1948). This research accordingly aims to examine new ways of conceptualising Chinese spaces and to explore theoretical and practical guidance for future urban and architectural design and policymaking. [ABSTRACT FROM AUTHOR]

Sensing urban vitality is a useful method for understanding urban development. However, the spatio-temporal characteristics of the association between the built environment and urban vitality in Shenzhen, the youngest mega-city in China, have not yet been explored. In this paper, we examined the effects of built environment indicators on urban vitality by using spatial regression models and multi-source geospatial data. The main research findings were as follows. Firstly, urban vitality displayed a consistent high–low pattern during both weekdays and weekends. Differences in the distribution of urban vitality with time between weekdays and weekends were more significant. Secondly, the effects of various built environment indicators on urban vitality exhibited significant temporal disparities. Within a day, population density, building density, bus station density, and distance to metro stations all exhibited positive effects, while distance to the central business district (CBD) exhibited negative effects, with pronounced diurnal differences. Moreover, the effects of road network density and functional mix on urban vitality were both positive and negative throughout the day. Thirdly, besides population density and building density, road network density, functional mix, bus stop density, and distance from metro stations exhibited positive and negative disparities within the study area. Overall, distance to the CBD had a negative effect on urban vitality. This concludes that planning for urban vitality should consider the spatio-temporal heterogeneity of the association between the built environment and urban vitality. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between business strategy and sustainability of Chinese SMEs and how the environmental uncertainty may affect this relationship. It analyses the impact of active and passive business strategies on firms' sustainability and tests the potential moderating role of economic policy uncertainty in this relationship. The empirical analysis is performed by employing fixed-effect and GMM estimations on data collected from 937 Chinese A-share non-financial companies listed on the Shanghai and Shenzhen stock exchanges from 2010 to 2021. The results show that the high-risk active business strategy of innovation and new market development is associated with greater business sustainability, and this relationship is stronger for SMEs than for non-SMEs in China. Moreover, higher economic policy uncertainty strengthens the positive relationship between active business strategy and firm sustainability, implying that in periods of higher environmental uncertainty firms which pursue active business strategy achieve greater business sustainability. These findings are useful for devising business strategy and can assist in formulating policy initiatives seeking to ensure sustainable development of SMEs in China. [ABSTRACT FROM AUTHOR]

By employing data from Shanghai and Shenzhen A-share markets for the period of 2019–2020, this paper examines the relationship between the degree of the COVID-19 pandemic’s impact on firms’ cash-holdings levels in China. We find that firms that are severely affected by the COVID-19 pandemic have higher current cash holdings levels, suggesting that the more positive (negative) the management tone in responding to the COVID-19 pandemic impact, the lower (higher) the firm’s current cash holdings. However, future corporate cash holdings decrease considerably irrespective of the corporate sentiment towards COVID-19. The positive sentiment of each firm’s management team towards the supply chain and the government policies results in a relative reduction of current cash holdings, whereas the severe impact on operating performance, especially the impact of the outbreak on the supply chain, demand, production and operations, and government policies, reduces the firm’ s future cash holdings. In addition, the impact of the pandemic has increased the current cash holdings of state-owned enterprises and reduced the future cash holdings of non-state-owned enterprises. Meanwhile, companies located in a city with a higher density of population or companies that experience relatively higher competition in the industry tend to undergo a severer impact on their current and future cash holdings due to the COVID-19 pandemic. Overall, this study sheds the light on stimulating the vitality of enterprise investment and promoting the domestic economic cycle. [ABSTRACT FROM AUTHOR]

Urban reservoir is one of the important urban drinking water sources, and it is of important significance to ensuring the safety of urban water supply. The water quality of the reservoir is an important factor affecting the safety of water supply. Timely and accurate water quality prediction is very important for the formulation of a scientific and reasonable reservoir water supply plan. Considering the problem of high requirement of basic data in constructing water quality hydrodynamic physical model, this paper established a new data-driven model of water quality prediction in urban reservoir based on the Long and Short-Term Memory (LSTM) model, and the water quality data's decomposition is implemented through the Complete Ensemble Empirical Modal Decomposition with Adaptive Noise (CEEMDAN) method. This model can not only realize the water quality prediction during different foreseen periods, but also solve the problem of low prediction accuracy caused by the randomness and large volatility of the measured data. Taking Xili Reservoir in Shenzhen of China as an example, the prediction of water concentration including total nitrogen, ammonia nitrogen, total phosphorus and PH value of Xili reservoir was realized based on historical monitoring data. Through simulation calculation, the prediction results of total nitrogen, ammonia nitrogen, total phosphorus and PH value in the water quality prediction model are highly consistent with the measured results, it is found that the simulation effect is good, and this model can well simulate the reservoir's water quality concentration change process. For the total nitrogen and ammonia nitrogen, the relative prediction error of the model can be controlled below 10%, which shows the rationality of the built model. The research of this paper can provide an important theoretical and technical support for the water quality prediction and operation plan formulation of Xili Reservoir. [ABSTRACT FROM AUTHOR]

Based on social capital theory, this paper aims to investigate the impact of member enterprises of alien merchant chambers on enterprise innovation, within A‐share listed companies on the Shanghai and Shenzhen Stock Exchanges of China from 2010 to 2020. Additionally, the study seeks to explore the role played by social capital resulting from participation in these alien merchant chambers. Furthermore, we delve into the moderating effects of the number of alien merchant chambers and the degree of marketization in the enterprise's location. Moreover, we analyze the influence of heterogeneity in firm ownership and firm type. Our findings reveal that member enterprises of alien merchant chambers can increase their social capital and consequently promoting innovation; both the quantity of alien merchant chambers and the level of marketization in an enterprise's location positively influence this enhancement. Furthermore, the impact of state‐owned enterprises and non‐high‐tech enterprises on enterprise innovation, following their engagement with alien merchant chambers, surpasses that of non‐state‐owned enterprises and high‐tech enterprises. This research bridges the gap in understanding the corporate governance implications of alien merchant chambers, provides empirical evidence concerning Chinese alien merchant chambers, and addresses inquiries regarding the influence of merchant chambers' social capital. Additionally, it proposes a novel approach for listed companies to overcome resource constraints and to collaboratively pursue development, especially in light of the challenges posed by the COVID‐19 pandemic. [ABSTRACT FROM AUTHOR]

The majority of insurance investment funds are derived from policy liability debt funds. It differs from other institutional investors in a number of ways, including investment size, horizon, duration, risk, and so on. However, only a small portion of the extant literature focuses on in-depth and extensive analysis of Insurance Institutional Investors' holdings (IIIs). This study analyses the impact of shareholding by insurance institutions on the value of Shanghai and Shenzhen A-share listed companies in China's capital market. The paper offers three major contributions. First, we discovered that long-term equity-holding IIIs have both value selection and value creation functions. Second, the value creation function becomes more significant among long-term stock-holding IIIs with an increase in the period during which they retain the company's shares; Third, fast-in and fast-out (FIFO) IIIs have a value-inhibiting effect on the held company and serve a value selection role, rather than a value creation function. This study provides more insight on the lack of academic interest in insurance institutions and serves as a foundation and reference for the design of regulatory policies for insurance institutions' involvement in stock markets. It also gives empirical evidence for corporations to accurately analyze shareholding by insurance institutions. Furthermore, since this study concentrates on China's capital market, it can serve as a benchmark for other nations, particularly, those designated as developing market economies. [ABSTRACT FROM AUTHOR]

In this paper, we explore how an intersectional frame offers new insights into the issue of social inequalities in relation to family migration. We bring research about family migration and intersectionality into conversation with one another by empirically examining the experiences of rural Christian family migrants in Shenzhen, China. We consider how neoliberal labour regimes and the Chinese state's project of building a secular and modernised state operates through an intersectional process of de‐familiarisation that turns rural migrants into gendered, class‐based, atomised labouring subjects. We argue that a more nuanced analysis of social inequalities in family migration could usefully focus on the intersectional processes within and among migrant families. We bring research about family, migration, and intersectionality into conversation with one another by empirically examining the experiences of rural Christian family migrants in Shenzhen, China. [ABSTRACT FROM AUTHOR]

The People's Republic of China has increasingly become an attractive location for foreign capital. The flow of foreign capital into mainland China includes the so-called northbound cash flow which is a colorful term that is often used to describe capital flowing into the mainland from Hong Kong. Two markets that have become an attractive destination for northbound cash flow is the Shanghai stock exchange and the Shenzhen stock exchange. This paper investigates the impact, if any, of northbound cash flows on investor sentiment for investors residing in mainland China. In other words, the paper attempts to ascertain whether the extent of northbound cash flows influences the extent to which mainland investors feel either bullish or bearish about the market. The research objective is addressed using quantitative models and focuses on the Shanghai and Shenzhen stock exchange. Research results indicate that northbound cash flows from Hong Kong significantly impacts investor sentiment in mainland China. [ABSTRACT FROM AUTHOR]

Sustained and stable external financing, affected by the financial environment, is a necessary condition to support the green technological innovation of enterprises. This paper focuses on the impact of bettering the financial environment of digital finance on enterprise green technological innovation, as well as the mediating role of financing costs and financial flexibility in this process. Using China's data on manufacturing enterprises listed in Shanghai and Shenzhen from 2011 to 2018, the hypotheses are tested. The result suggests the following: (a) digital finance effectively promotes enterprises to carry out green technological innovation, specifically, the coverage and depth of digital finance can promote enterprises' green technological innovation, but the degree of digitization has no significant impact; (b) digital finance improves the financial environment by making up the shortage of traditional financial system through reducing financing problems such as "financing difficulty," "matching difficulty," and "supervision difficulty," which make effective contributions to enterprise green technological innovation; (c) financing costs negatively mediate the relationship between digital finance and enterprise green technological innovation, while financial flexibility positively mediates the relationship. Overall, our findings shed light on the role digital finance plays in shaping corporate environmental behavior—and ultimately innovation in sustainability—in financing constraint setting. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the impact of intellectual capital (IC) and its components (human, structural and relational capitals) on the performance of manufacturing listed companies in China. This paper also investigates the impacts of company ownership, industry attributes and region on the IC-performance relationship. Design/methodology/approach: The study uses the data of 953 manufacturing companies listed on the Shanghai and Shenzhen Stock Exchanges over the period 2012–2016. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC efficiency. Finally, multiple regression analysis is employed to test the research hypotheses. Findings: This study reveals that IC can enhance firm performance in China's manufacturing sector. Overall, earnings are affected by physical capital, human capital (HC) and structural capital (SC), and profitability and productivity are influenced by physical capital, HC, SC and relational capital. Physical capital is the most influential contributor to firm performance. In addition, state-owned enterprises have a greater impact of IC on firm performance than private-owned enterprises; high-tech manufacturing companies have higher IC performance than non-high-tech manufacturing companies; manufacturing companies in China's eastern region have higher IC performance than the counterparts in central and western regions. Practical implications: The findings may help managers, stakeholders and policymakers in developing countries to effectively and efficiently manage their IC resources. Originality/value: This is the first study to evaluate IC and its relationship with firm performance among Chinese manufacturing listed companies using the MVAIC model. [ABSTRACT FROM AUTHOR]

Street greening, an indispensable element of urban green spaces, has played an important role in beautifying the environment, alleviating the urban heat island effect, and improving residents' comfort. Vegetation coverage is a common index used for measuring street greening. However, there are some shortcomings in the traditional evaluation methods of vegetation coverage. Part of the vegetation coverage cannot be determined from a two-dimensional perspective, such as shrubs and green walls. In this paper, the Sentinel-2 image was used to extract the street fractional vegetation cover (SFVC) and the Baidu street view panoramas were used to extract the green view index (GVI). To overcome the lack of a single perspective from the street vegetation coverage evaluation, the above two indices were merged to construct a comprehensive street greening evaluation index (CSGEI). The research area is the Longhua District of Shenzhen city in Southern China. All three indices were divided into five classes using natural breakpoint methods based on previous research experience. The results showed that Baidu street view panoramas could effectively identify shrubs and green walls that were deficient in the Sentinel-2 image. The GVI is a supplement to the street vegetation coverage. The SFVC and GVI were divided into five classes, from L1 to L5 implying a gradual increase in the percentage of the vegetated area. The result has shown that the SFVC was in the L1, accounting for 53.68%. After index merging, the process of accounting for the L1 decreased to 31.29%. The multiperspective integrated CSGEI could comprehensively measure the distribution information of street greening and guide the planning and management of urban green landscapes. [ABSTRACT FROM AUTHOR]

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm's size is small, the firm's age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt. [ABSTRACT FROM AUTHOR]

Taking the tourism and related industry companies listed in Shanghai and Shenzhen of China from 2006 to 2019 as samples, this paper examines the impact of board interlock on corporate risk-taking and its micro-mechanism. Empirical evidence shows that board interlock can significantly improve corporate risk-taking, but the degree of influence varies from industry to industry. For the external risk sensitivity of industry, in the industry with high external risk sensitivity, the "quantity embedding" of interlocking directors has a stronger promoting effect on enterprise risk-taking. However, in industries with low external risk sensitivity, the "quality embedding" of interlocking directors has a stronger promoting effect on enterprise risk-taking. For the degree of industry competition, the more intense the industry competition, the stronger the role of board interlocks in promoting enterprise risk-taking. Further analysis shows that the intensity of information effect and the intensity of resource effect vary with the degree of information asymmetry and the type of directors. [ABSTRACT FROM AUTHOR]

China has pledged that it will strive to achieve peak carbon emission by 2030 and realize carbon neutrality by 2060, which has spurred renewed interest in hydrogen for widespread decarbonization of the economy. Hydrogen energy is an important secondary clean energy with the advantage of high density, high calorific value, rich reserves, extensive sources and high conversion efficiency that can be widely used in power generation, transportation, fuel and other fields. In recent years, with the guidance of policies and the progress of technology, China's hydrogen energy industry has developed rapidly. About 42% of China's carbon emissions comes from the power system and Shenzhen has the largest urban power grid in China. Bringing the utilization of hydrogen energy into Shenzhen's power system is an important method to achieve industry transformation, achieve the "double carbon" goal and promote sustainable development. This paper outlines the domestic and international development status of hydrogen energy, introduces the characteristics of Shenzhen new power system, the industrial utilization of hydrogen energy and the challenges of further integrating hydrogen energy into Shenzhen new power system and, finally, suggests on the integration of hydrogen energy into Shenzhen new power system in different dimensions. [ABSTRACT FROM AUTHOR]

The establishment of pilot free trade zones (FTZs) is a key strategic measure taken by China to promote high-quality economic development, but there are still gaps in the research on how the establishment of FTZs affects the environmental performance of enterprises from a micro perspective. Using data from China's Shanghai and Shenzhen A-share resource-based listed enterprises from 2010 to 2020, this paper uses the difference-in-difference model to examine the impact of the establishment of FTZs on the environmental performance of enterprises. The study finds that after the city that the enterprise located is set up as a free trade zone (FTZ), enterprises' environmental performance has been significantly improved, and this effect has a continuous positive impact. As far as the influence mechanism is concerned, the main driving forces for the establishment of FTZs are technology effect, competition effect, and resource allocation effect, which are embodied in the significant improvement of enterprises' green technology innovation, total factor productivity, and environmental protection investment. The environmental performance of non-state-owned and large-scale resource-based enterprises is more prominently affected by the establishment of FTZs. In capital-intensive industries and the eastern region, the environmental performance improvement effect of the establishment of FTZs is more obvious. This study provides targeted suggestions for resource-based enterprises to effectively implement the environmental green development strategy. [ABSTRACT FROM AUTHOR]

Ship exhaust gas has become an essential source of air pollution in recent years. To assess the impact of ship exhaust gas on the atmospheric environment and human health, this paper studies the problem of ship exhaust gas diffusion in the port area. According to automatic identification system (AIS) data, ship exhaust gas is estimated based on the bottom-up method, and the result of emission calculation is entered into a Gaussian puff model to calculate the superposition of the diffusion of gaseous pollutants from multiple ships. In addition, the results of a case study of the diffusion of ship exhaust gas in the western area of Shenzhen Port in China show that the distribution of the NO2 concentration in the studied area is not stable, the diffusion of exhaust gas from multiple ships mainly affects some areas near large ship berths at night, and there is a small impact on the whole study area. This lays a foundation for monitoring and treating the atmospheric environment in the port area. [ABSTRACT FROM AUTHOR]

This paper analyzes the wind pressures on the claddings of a 600-m-high skyscraper in Shenzhen, China, during Super Typhoon Mangkhut on September 16, 2018. A synchronous monitoring system that included 48 pressure transducers was implemented to measure the cladding pressures of the skyscraper during the typhoon event. Based on field measurements, the mean, root-mean-square fluctuating, peak (maximum and minimum) pressure coefficients are presented and discussed. Then the mean and peak pressure coefficients are used to validate the design values stipulated in the design code of China. Comparative study finds that the design values of the peak pressure coefficients on the windward and leeward faces of the skyscraper are conservative, while those on the side faces are nonconservative. As for the mean pressure coefficients, the design values are conservative for all faces. Moreover, the non-Gaussian characteristics, power spectral densities, coherences, and correlations of the measured cladding pressures are analyzed to explore the mechanisms of pressure fluctuations on the four sides of the skyscraper. This paper aims to enhance understanding of cladding pressures of high-rise buildings under extreme wind conditions and, therefore, to provide useful information for future designs of wind-resistant skyscrapers in tropical cyclone–prone regions. [ABSTRACT FROM AUTHOR]

China's domestic mobile gaming firms, such as Tencent, which has developed into the world's biggest gaming firm by revenues in a short span, have outweighed the leading counterparts in the Western advanced economies. Despite an increasing attention has been paid to the global investment of Chinese gaming firms, this paper argues that their market expansion has focused on the selected Southeast Asian countries. This arguement is developed through the aurthors' extensive field investigation and personal interviews with games developers and publishers in Shenzhen, where Tencent is located, during the early 2017 and late 2019. We showcase that the protective multi‐scalar institutions in which the Chinese gaming firms have dominated in the domestic market, have prevented the overseas market expansion of these firms. Although the government‐designated extra‐local inter‐firm collaboration has helped narrow the technological gaps and articulate China's firms into the global production networks, the market gaps between the domestic and western economies have not been overcome in the expansion to overseas markets. This study sheds light on that the market expansion of Chinese gaming firms has stucked in a dilemma between globalization and regionalization. While China's domestic gaming firms, particularly Tencent, have been evolving into lead firms in the global games production networks, their market power has been confined at domestic and regional levels. [ABSTRACT FROM AUTHOR]

Recent years have seen considerable debate about the practicability of a global quantity/price commitment to control carbon emissions and tackle environmental issues. In this paper, we study the impact of the cap-and-trade policy (quantity commitment) and the carbon tax policy (price commitment) on a firm's technology investment and production decisions. The main feature captured in our model is that there exist correlated uncertainties between the sales market (demand uncertainty) and the permit trading market (permit price volatility) under the cap-and-trade policy. The correlation relationship stands on the following intuition. The demands for final products affect firms' production output, which generates the needs of emission permits and influences the permit price. We show that under the cap-and-trade policy, with the uncertainty of the future emission price, the firm could flexibly adjust its production quantity to enhance its profit, resulting in low incentives to invest in clean technology. However, as the (positive) correlation between the sales market and the permit trading market increases, the production flexibility is constrained so that the firm has to increase its technology investment to hedge against the future risk of a high emission price. Making a comparison between the cap-and-trade and carbon tax policies, we find that when the correlation coefficient is moderate, the carbon tax policy generates a multiwin situation (i.e., more technology investment, higher expected profit and consumer surplus, and fewer carbon emissions). Case studies are provided to illustrate the implications and model variants are examined to check the robustness of the main results. Overall, our analysis sheds light on recent debate over carbon pricing and identifies the important role of correlated uncertainties in carbon policy design. This paper was accepted by Charles Corbett, operations management. Funding: This work was supported by the stable support plan program of Shenzhen Natural Science Fund [Program Contract 20200925160533002] and the National Natural Science Foundation of China [Grant 72101105]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4365. [ABSTRACT FROM AUTHOR]

This paper investigates an unprecedented regulation measure in the housing market, reference pricing, with evidence from Shenzhen China. We use a unique panel dataset, obtained through questionnaires to real estate agents, to document the effects of the policy on the housing market. The hypotheses that trading volume and house price decrease are validated by the data, while the one that turnover time increases is not supported. We discuss potential mechanisms that may explain these effects. Meanwhile, we infer estate-level discount factors that are not public information. Based on these factors, we forecast reference prices for the subsequent year. Overall, this paper fills the gap in the field of reference pricing effects on the housing market. [ABSTRACT FROM AUTHOR]

To examine the characteristics of future precipitation under climate change is of great significance to urban water security. In this paper, multiple machine learning techniques, i.e., statistical downscaling model (SDSM), support vector machine (SVM), and multilayer perceptron (MLP), were used to downscale large-scale climatic variables simulated by the General Circulation Models (GCMs) to precipitation on a local scale. It was demonstrated in Shenzhen city, China, through multisite downscaling schemes based on projections from the Max Planck Institute Earth System Model (MPI-ESM1.2-HR), Meteorological Research Institute Earth System Model Version 2.0 (MRI-ESM2.0), and Beijing Climate Center Climate System Model (BCC-CSM2-MR). The obtained results showed that the downscaled precipitation would provide good monthly simulations against observations at 10 discrete stations. Regardless of superior performance of SVM and MLP over SDSM, the daily precipitation simulations should be further improved, and downscaling of heavy daily precipitations would be promoted by quantile mapping corrections. Due to the relatively poor simulation performance of BCC-CSM2-MR, the other two climate models were considered under the Shared Socioeconomic Pathways (SSP1-2.6, SSP2-4.5, and SSP5-8.5 scenarios) for ensemble precipitation projections for 2015–2100. Under the SSP1-2.6 scenario, the amounts of annual average precipitation for 10 stations were estimated to be higher relative to the historical period (2.7%–17%), and 9 out of 10 stations presented an increasing trend. However, downward trends also existed at three stations when it comes to scenarios SSP2-4.5 and SSP5-8.5. Moreover, a significantly positive trend was found to dominate the trend changes of annual extreme daily precipitation during 2015–2050, but the detected trends at stations were greatly dependent on the downscaling techniques and climate models. Besides, the increase in daily extreme precipitations for various return periods as well as statistically different precipitation characteristics for discrete stations would further shed light on urgent demands on urban resilient strategies for climate change adaptation. [ABSTRACT FROM AUTHOR]

This paper examines a sample of 167 publicly listed enterprises covered by eight regional pilot emissions trading markets in China from 2013 to 2023. Our empirical findings indicate that the carbon price returns negatively affect the stock returns of enterprises covered by the regional markets, with the Shenzhen and Guangdong regions suffering a more pronounced effect. Furthermore, high-carbon-intensity enterprises are more susceptible to this negative impact than their low-carbon-intensity counterparts. The robustness of the negative relationship is evident even after the national emissions trading market opened on July 16, 2021. This study provides insightful guidance for policymakers to regulate emissions trading markets. [ABSTRACT FROM AUTHOR]

At the XIX International Botanical Congress held in Shenzhen, China, in July 2017, the delegates unanimously adopted the Shenzhen Declaration on Plant Sciences in an effort to accelerate the contributions made by plant scientists for the benefit of the world′s changing society. This paper discusses what has been accomplished concerning plant conservation since the Shenzhen Declaration. Beyond the problems we faced in 2017, the global Covid pandemic and the war have presented new challenges. With the massive ecological overshoot, the number of malnourished people globally has increased. Most threats to vascular plants have increased generally over these 6 years, while the responses of the botanical community to them have continued to proceed at a relatively slow pace. Although international cooperation is needed to combat the grave challenges we face, the ease of such collaboration has decreased substantially in recent years. Certainly, rapid deforestation, especially in the tropics, and our ineffective approaches to mitigate climate change will lessen the effectiveness of our strategies to slow extinction. Indeed, our blindness to the reality of ecological overshoot and misperceptions concerning sustainability are accelerating extinction and thus destabilizing social structures and civilization. As an example, conservation in China faces serious challenges with biodiversity loss, but botanical gardens and seed banks there offer hope on ex situ conservation. The botanical and other scientific communities can contribute by drawing the attention of fellow citizens to the gravity of the problems that we face and by being actively engaged in providing solutions and carrying them forward to action. [ABSTRACT FROM AUTHOR]

With the acceleration of urbanization process in China, the usage of sustainable green buildings is getting a great attention and significance in order to reduce energy consumption. However, there are still challenges for evaluating the performance of green buildings in China due to the lack of unified codes/standards. This paper proposes a method based on cloud model to evaluate the performance of green buildings. This method overcomes the randomness and subjectivity of fuzzy concepts to the maximum extent; on this basis, the system's indexes including environmental–economic balance, regional social coordination, health, comfort, and green management can be established. The analytic hierarchy process and entropy weight methods are used to calculate the index weight; the cloud model is used to realize the transformation between qualitative and quantitative characteristics; and then, a mathematical evaluation model based on the cloud model is established. Finally, an empirical study is made based on a typical case in Shenzhen city, China. The findings of this research work reveal a performance index for green building created based on expert evaluations and a standard cloud yardstick created in the comprehensive cloud model. Based on the results of this manuscript, the industry can acquire benefits by suggesting effective measures that can be implemented in all stages of green buildings construction where the measurements execution and persuasive components make appraisal models for a green building. This study provides a consistent framework for researchers and other public to evaluate green buildings, and provides a solid foundation for further research and consideration basis on sustainable development and green building operation. [ABSTRACT FROM AUTHOR]

The purpose of this paper is two-fold. First, this study measures the contribution of banks and non-bank financial institutions toward the systemic risk of China. Second, the present study investigates the relationship between CEO power, CEO overconfidence, and systemic risk. This study uses the Delta Conditional Value-at-Risk (∆CoVaR) method to measure the systemic risk contribution of firms listed on the Shenzhen and Shanghai stock exchanges over a period of 2006–2018. The results show that non-bank financial institutions are systemically more important compared to banks. We employed fixed-effect regression analysis to show that banks with overconfident CEOs increase the firm’s systemic risk. The results also confirm that powerful CEOs enhance the contribution of non-bank financial institutions to systemic risk, whereas CEO power’s impact was significant only for non-state-owned banks. The findings were further validated by the robustness test results obtained using the twostage least squares approach. These findings are important for constructing regulations to reduce the contribution of firms to systemic risk. [ABSTRACT FROM AUTHOR]

This paper examines the issue of earning management in companies with equity incentives from two dimensions: management manipulation of the intensity of R&D and accounting treatment by using a sample of Shanghai and Shenzhen listed companies in China from 2014 to 2019. We find that in order to depress the benchmarks and exercise prices for the performance appraisal of the equity incentive covenants, managers not only conduct accrual earnings management by expensing R&D expenditure but also increase the intensity of R&D investment for real earnings management. We also find that companies with equity incentives where managers have more power are more inclined to opt for the more concealed means of real earnings management and try to avoid accrual earnings management, which may entail higher regulatory costs and greater litigation risk with tightening accounting regulations. Our findings contribute to expanding the literature on earnings management of companies with equity incentives and provide empirical evidence for regulators to implement 'precision regulation' on equity incentives and earnings management. [ABSTRACT FROM AUTHOR]