Mitigating firm-level political risk in China: The role of multiple large shareholders

Wang, Liang

doi:10.1016/j.econlet.2022.110960

Cited by 12 publications

(7 citation statements)

References 18 publications

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“…First, based on the related literature (Pu et al. , 2023; Wang, 2023), we examined the influence of digital transformation on firms' ESG ratings by the following baseline Ordinary Least Square (OLS) regression analyses:where ESG i,t is the core dependent variable, representing the ESG ratings of firm i in year t . The independent variable DIG i,t-1 represents the digital transformation degree of firm i in year t-1 .…”

Section: Methodsmentioning

confidence: 99%

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Moving toward sustainable development: the influence of digital transformation on corporate ESG performance

Yang,

Hao,

Wang

et al. 2023

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PurposeAmidst the rapid development of the global digital economy, digital transformation has become a strategic choice that firms must use to respond to the changing times. This study analyzes the impact of digital transformation on corporate environmental, social and governance (ESG) performance.Design/methodology/approachThis study analyzes the impact of digital transformation on corporate ESG performance.FindingsUsing panel data from Chinese A-share-listed companies from 2010 to 2019, the authors found that digital transformation has a positive impact on corporate ESG performance, especially for high-tech firms and state-owned firms. In particular, the authors find that the digital production and digital marketing exert a positive effect on corporate ESG performance. Mechanism tests showed that digital transformation helps promote corporate green innovation, improve information transparency and improve corporate governance, thus enhancing ESG performance. A moderating effect analysis revealed that the positive impact of digital transformation on ESG performance is more significant in firms with government subsidies and chief executive officers (CEOs) with rich career experience.Originality/valueMost existing research has confirmed the positive effect of digital transformation on firms' financial performance, whereas fewer studies have focused on the impact of digital transformation on the non-financial performance of firms.

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Section: Methodsmentioning

confidence: 99%

“…First, based on the related literature (Pu et al, 2023;Wang, 2023), we examined the influence of digital transformation on firms' ESG ratings by the following baseline Ordinary Least Square (OLS) regression analyses:…”

Section: Empirical Modelsmentioning

confidence: 99%

Moving toward sustainable development: the influence of digital transformation on corporate ESG performance

Yang,

Hao,

Wang

et al. 2023

Self Cite

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“…This MD&A content is extracted manually from annual reports retrieved from the official websites of related companies. Our method is consistent with the firm-level political risk index developed by Wang (2023).…”

Section: Data Source and Sample Selectionmentioning

confidence: 78%

“…Hassan et al (2019) investigated the influence of political risk in the context of a developed country and focused on the effect of political risk on firms' operation activities; however, institutional foundations in emerging markets are different from those in developed countries. For instance, Chinese publicly listed firms are very sensitive to political risks because a critical foundation of Chinese institutions is that governments at different levels control resource allocations that can affect firms' behaviors (Wang 2023). Much attention has been given to the influence of FPR in developed countries (Choi et al 2022).…”

Section: Consequences Of Political Risksmentioning

confidence: 99%

“…Next, consider the independent variable of corporate political risk (CPR). This paper employs a proxy based on text analysis to quantify the firm-specific political risk of companies publicly listed in the Chinese A-share market, which is consistent with the method proposed by Wang (2023). For more details on the calculation of CPR, we report the related calculation details in Appendix B.…”

Section: Variable Constructionmentioning

confidence: 99%

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The Impact of Political Risks on Financial Markets: Evidence from a Stock Price Crash Perspective

Ma,

Wei,

Gao

2024

IJFS

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Political risk, one of the most significant uncertainty shocks, affects firms’ future attitudes toward risks and plays a crucial role in their decision making. A stock price crash risk is a classical topic in financial markets; therefore, this paper probes the relationship between firm-level political risk and stock price crash risk based on a sample of Chinese listed firms from 2011 to 2020. This paper collects the MD&A textual material of Chinese listed firms and calculates the firm-level political risk of Chinese listed firms. Our results show that a firm’s stock price crash risk is positively associated with its firm-level political risk exposure. Our findings hold after conducting various robustness tests, including instrument variable regression and altering the measurement of stock price crash risk. Further discussion reveals that political involvement mitigates the positive effect of firm-level political risk on the risk of a stock price jump.

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Firm-level carbon risk perception and ESG performance

Guo,

Yang

2024

Environ Sci Pollut Res

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Mitigating firm-level political risk in China: The role of multiple large shareholders

Cited by 12 publications

References 18 publications

Moving toward sustainable development: the influence of digital transformation on corporate ESG performance

Moving toward sustainable development: the influence of digital transformation on corporate ESG performance

The Impact of Political Risks on Financial Markets: Evidence from a Stock Price Crash Perspective

Firm-level carbon risk perception and ESG performance

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