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Taking China’s carbon emissions and trading pilot (CCETP) as a quasi-natural experiment, this paper examines the impact of CCETP on publicly listed private firms’ innovation input and the moderating effect of the firms’ political connection based on the difference-in-differences model. The results show that CCETP has a significantly positive effect on the innovation input of Chinese publicly listed private firms. Moreover, the political connection of executives exhibits a positive moderating effect on CCETP’s impact on innovation input. Meanwhile, the effect is more significant in regions with high environmental protection investment and large publicly listed private firms. The conclusions could provide some policy enlightenment for China’s carbon market, as well as a rational adjustment of the relationship between political connection and innovation input of publicly listed private firms in the future.

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This paper selects 141 countries from 2009 to 2020 to investigate the impact of genetic distance on bilateral foreign direct investment (FDI). Through theoretical and empirical analysis, we get the following conclusions. First, genetic distance has a significant negative impact on bilateral FDI by increasing transaction costs. This conclusion still holds after several robust checks. Second, genetic distance has different effects on bilateral FDI for different countries: (1) If at least one of the two countries is a low‐income country, genetic distance will have a significant negative impact on their FDI, but no significant impact on both high‐income countries; (2) if at least one of the two countries is not a member of the Belt and Road Initiative, genetic distance will have a significant negative impact, but no significant impact on both member countries; and (3) genetic distance has a significant negative impact only when both countries are World Trade Organization members. Third, further analysis shows that a smaller genetic distance has no significant effect on bilateral FDI, and only when the genetic distance is larger than the average would a significant negative impact exists. This paper provides policy recommendations for promoting bilateral investment.