Internal governance is the monitoring of a CEO by immediate subordinate executives with different career horizons. In this paper, we examine the role of internal governance on corporate innovation. Conducting a study of privately owned firms listed in China, we find that internal governance significantly increases firms' innovation investment, but we uncover little evidence that it affects innovation quality as indicated by patents. We further discuss that a possible channel for increased innovation investment is enhanced decisionmaking quality. Regarding the quality of innovation, executives' knowledge plays a larger role than internal governance. In sum, this study provides evidence about the innovation consequences of internal governance in China's weak internal governance culture.

Purpose This paper aims to examine the relation between religiosity and formal financing in the context of long- and short-term corporate loans. Design/methodology/approach This paper uses archival methodology to conduct a multiple regression analysis with the amount of long- and short-term corporate loans as the dependent variable and a measure of religiosity as the key explanatory variable. Findings This paper offers four findings. First, when a private firm locates in a high religiosity region, it is more likely to get more corporate loans and the amount of corporate loans is positively correlated with the extent of religiosity. Second, religiosity drives a private firm getting more (less) short-term (long-term) loans. Third, a private firm in a high religiosity region is able to incur lower interest cost associated with more short-term loans. Finally, the results are confined to Buddhism, Taoism and Christianity. Practical implications Overall, the findings are consistent with the notion that religiosity shapes the local culture so that individuals, some of them are borrowers and lenders, show the religious traits in the formal lending and borrowing relationship. Originality/value Overall, findings of this paper are consistent with the notion that religiosity shapes the local culture so that individuals, some of them being borrowers and lenders, show religious traits in the formal lending and borrowing relationship.

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Entrepreneurs’ creativity is the starting point of opportunity identification, exploitation, and innovation, so it is generally lauded by journalists, citizen observers, practitioners, and scholars. However, they may overstate the benefits of creative entrepreneurs while neglecting their potential costs. Building on moral disengagement theory, we theorize that a creative mindset enables entrepreneurs to generate reasons to justify their potentially environment-destroying behaviors (i.e., nature disengagement), which in turn increases their favorability of potential opportunities that harm nature. We first developed and validated a scale for measuring nature disengagement and then conducted two randomized between-subject experiments with active entrepreneurs. The empirical results largely supported our theoretical model of the dark side of creativity in the entrepreneurship context.

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