Digital transformation is a strategic change process that triggers significant

changes in the attributes of an enterprise entity through a combination of information,

computing, communication, and connectivity technologies. This process thereby improves the

enterprise entity and enhances its comprehensive competitive advantages. By utilizing relevant

digital technologies, it can effectively promote the digital transformation of enterprises and

industries. In the specific application process: on the one hand, it aims to accelerate the digital

transformation and upgrading of enterprises and comprehensively deepen the digital

transformation of key industries; on the other hand, it seeks to promote the digital

transformation of industrial parks and industrial clusters, and to cultivate a transformation

support service ecosystem. In terms of its breadth of influence, digital transformation can not

only promote the high-quality development of the macro economy, but also impact the capital

market performance of micro enterprises.

However, there is a discrepancy between the words and actions of some companies regarding

digital transformation. That is, they claim to have a rich digital transformation strategy, but

their actual investment is relatively meager. This discrepancy exacerbates the risk of share

price collapse and affects the stability of the capital market, which in turn further impacts the

actual benefits of enterprises. In this paper, we select a sample of listed companies in China’s

Shanghai and Shenzhen A-shares from 2010 to 2021 to empirically analyze the specific impact

price collapse, and to explore the possible causes of such inconsistency. It is found that digital

transformation with inconsistent rhetoric and behavior leads to a significant increase in the risk

of share price collapse faced by firms, and this finding remains robust after a series of

robustness tests. In a further study, a deeper investigation into the causes of digital

transformation misalignment reveals that firms’ perceptions of economic policy uncertainty

significantly widen the gap between firms’ digital transformation “words” and “deeds”, with a

more pronounced effect in the sample of loss-making firms. Meanwhile, the heterogeneity test

shows that investors are more tolerant of SOEs’ digital transformation behaviors that are

inconsistent with their rhetoric.

These findings, on the one hand, provide an interpretable explanation for the disparity findings

in previous studies, and on the other hand, offer new ideas for enhancing the stability of the

capital market and realizing the high-quality development of the economy. From a policy

perspective, attention should be paid to the impact of economic policy uncertainty on the

digital transformation of enterprises, and efforts should be made to actively reduce such

uncertainty in order to promote a more “real” digital transformation. In addition, enterprises

should focus on consistency between words and deeds, enhance transparency, and adhere to

“real” digital transformation actions in order to reduce the risk of stock price collapse,

establish a good corporate image, and attract more investment. Overall, the research in this

paper provides useful insights for understanding the relationship between corporate digital

transformation words and actions and stock price crash risk, as well as new insights for the

stability of the capital market and the advancement of high-quality development of China’s

economy.

In response to the phenomenon of inconsistency in corporate digital transformation, this paper

argues that the government should consider and formulate policies to regulate corporate

behavior, as this phenomenon may pose a potential threat to the stability of the capital market

and the interests of investors. By discussing the inconsistencies in the digital transformation of

enterprises, we can accurately identify whether the enterprises have actually fulfilled their

promises of digital transformation in the future, or whether they have only remained at the

level of false propaganda. Then, reasonable thresholds can be set to effectively limit the

excessive propaganda behavior of enterprises in digital transformation, thereby better

protecting the interests of investors at the source and building a solid foundation for the long

term and stable development of the capital market. On the other hand, the relevant regulatory

authorities need to conduct a comprehensive and systematic assessment of enterprises whose

words and deeds are inconsistent. Based on the assessment results, severe penalties should be

imposed on enterprises whose words exceed their deeds, forming a strong deterrent. At the

same time, timely and effective encouragement and support should be given to enterprises

whose deeds exceed their words, stimulating their motivation and creativity.

In order to further promote the development of new quality productive forces

tailored to local conditions, based on the shortcomings of existing research and the logical

relationship diagram of new quality productivity, a new quality productivity evaluation index

system was constructed. The core elements of the three-level index system of new quality

productivity were determined by integrating the SRCFS model and simulated annealing

algorithm to optimize the projection pursuit model. The evaluation and prediction of new

quality productivity in China during the two periods of 2019-2023 and 2025-2035 were

evaluated and predicted using the combination of minimum deviation method and grey

metabolism prediction model. At the same time, the self-organizing mapping neural network

clustering method was used to classify and analyze the characteristics of new quality

productivity in the above two periods. Studies have found that, as a whole, the level of new

productivity in my country has shown a year-on-year growth trend in the short-term and

medium-term development process, but there are still regional differences; under the short

term development, the new quality productivity of various provinces and cities in my country

can be divided into developed and medium developments. And the three levels of

underdeveloped development, most of them have not reached the level of development; with

the development of medium and long term, the new productivity of new quality in various

provinces and cities in my country will show a relatively significant improvement, except for a

Therefore, in the process of cultivating and developing new productive forces in my country,

China must not only make overall layout, but also cooperate with local conditions.

Chinese civilization has always revered the philosophy of the unity

of man and nature, striving for harmonious coexistence between humans and

nature. Humans and nature are a community of life. From the new starting point

of ecological civilization construction, in facing global challenges such as

climate change and the greenhouse effect, summarizing the Chinese model of

green governance that synergistically promotes carbon reduction, pollution

control, greening, and growth holds significant reference value for enhancing

China’s international discourse power, building a beautiful China where humans

and nature coexist in harmony, and realizing the Chinese Dream of the great

rejuvenation of the Chinese nation.

China’s development model has undergone profound transformations, shifting

from single-dimensional growth to a coordinated approach that integrates carbon

reduction, pollution control, greening, and growth, showcasing the powerful

driving force of the systemic view of harmonious coexistence between humans

and nature, as well as the great practices implemented by the Communist Party of

transformation, the Communist Party of China has evolved from recognizing the

relationship between humans and nature, to continuously focusing on it,

exploring it in-depth, and accelerating the promotion of harmonious coexistence

between humans and nature. China’s development has undergone four models:

single-dimensional growth, pollution-control growth, pollution-control and

greening growth, and carbon-reduction, pollution-control, and greening growth,

achieving a profound transformation from a single-goal to a multi-dimensional

and coordinated development model. From the source of motivation, the systemic

view of harmonious coexistence between humans and nature is the practical

experience and theoretical achievement that the Communist Party of China has

gained through iterative cycles of practice, understanding, re-practice, and re

understanding. This systemic view has become the driving force for vigorously

advancing ecological civilization construction, fostering green development

models, lifestyles, ways of thinking, and values, as well as building a community

of life between humans and nature and modernizing in harmony with nature.

From the perspective of innovation, China has largely established a development

model that synergistically promotes carbon reduction, pollution control, greening,

and growth, continuously strengthening the top-level design of modernization for

harmonious coexistence between humans and nature through solid advancements

in achieving dual-carbon goals, strengthening environmental pollution

prevention, intensifying ecological protection efforts, and accelerating the green

transformation of the development model.

The construction of a production system where humans and nature coexist

harmoniously includes the socio-economic system, the resource-environment

system, and the green transformation method, encompassing four aspects of

carbon reduction, pollution control, greening, and growth. It embodies various

collaborative concepts such as development goal coordination, production factor

coordination, and green transformation coordination. Placing the production

system of harmonious coexistence between humans and nature within a three

stage Data Envelopment Analysis (DEA) framework to measure its performance,

the effectiveness of synergistically promoting carbon reduction, pollution control,

greening, and growth is evaluated. In the process, the performance of the entire

system is also decomposed from the perspectives of development goals and input

factors. Data results show that since the new era, China has achieved significant

results in synergistically promoting carbon reduction, pollution control, greening,

and growth. From the perspective of development models, the synergy

performance of carbon reduction, pollution control, and greening growth is

higher than that of carbon reduction and pollution control growth, and much

higher than the performance of single-dimensional growth. From the perspective

of development goals, the performance levels of the socio-economic system and

the resource-environment system are continuously improving, and green

transformation is gradually being internalized as a capability within the two

subsystems. From the perspective of production factors, the productivity of water

resources, land, and energy continues to rise. Green transformation not only

enhances the performance of each factor system but also internalizes the system’s

self-capacity. From the regional perspective, the four major regions exhibit a

certain degree of heterogeneity in both overall and subsystem performance, with

the overall performance showing a divergent trend.

Employment is the foundation of people’s livelihood. The report of the Party’s

20th National Congress proposed to “strengthen the employment priority policy, improve the

employment promotion mechanism, and promote high-quality full employment.” In the new

stage of China’s high-quality development, how to better benefit the dividend of scientific and

technological innovation to the labor market is an important measure to achieve high-quality

full employment. According to the International Federation of Robotics (IFR), with the rapid

development of artificial intelligence technology represented by robots, China has become the

world’s largest country in the installation of robots, and surpassed the total installation of other

regions for the first time in 2021. The large-scale use of robots has had a profound impact on

China’s labor market, and the employment “creation effect” and “destruction effect” of robot

application have a direct impact on the labor market. Then, will the application of artificial

intelligence technology represented by robots lead to unemployment?

In order to answer the above questions, based on the data of Chinese industrial enterprises and

import and export data of China Customs, this paper uses PSM-DID estimation method to

study the impact of robot application on the job market from the enterprise level. The

benchmark results show that the application of robots in enterprises is a “positive choice”, and

the application of robots significantly promotes the employment demand of enterprises, and

the employment increase of enterprises after the application of robots is about 28.85%.

Mechanism analysis finds that the application of robots mainly promotes enterprises to

increase employment by improving enterprise productivity and increasing output. Further

research shows that compared with labor-intensive and eastern enterprises, robot application

enterprises. In addition, this paper also finds that there is no “crowding out effect” in robot

application, and robot application does not significantly reduce the employment of non-robot

application enterprises in the industry. The conclusion of this paper provides some empirical

evidence for the effective use of technological innovation to promote the realization of more

adequate and higher quality employment in the new development stage.

Based on the research findings, this paper draws the following policy implications. First,

improve supporting facilities and encourage enterprises to apply robots. Relevant government

departments should formulate industrial policies to promote the development of robotics

technology and actively guide enterprises to apply robots in order to promote the realization of

high-quality full employment. For example, reduce the income tax of enterprises to purchase

robots, and reduce the initial investment cost of enterprises to introduce robot technology, so as

to encourage enterprises to apply robots. In addition, further improve the infrastructure for the

development of the robot industry, and increase financial support for the industry, such as

setting up a special fund for robot research and development, establishing a robot industrial

park, attracting science and technology groups to settle in and carry out robot research and

development, production and sales, and enriching the types of robot products to better match

the production links of enterprises. Thus, the employment effect of robot application can be

more effectively brought into play. Second, adapt to local conditions and implement policies

for enterprises to deepen the application level of robots. Relevant government departments

should adapt to local conditions and implement policies for enterprises to actively guide

enterprises to further improve the application level of robots. Effectively exert the dividends of

the development of artificial intelligence technology, and constantly stimulate the employment

effect of robot application while promoting the development of enterprises. Third, build a

training system and strengthen the skills training of workers. The relevant government

departments should increase the skills training of the labor force, especially the low-skilled

labor force, to help them adapt to the job changes brought by the application of robots. For

example, enterprises are encouraged to cooperate with universities to establish robot

experiment bases, set up training courses for robot engineers, robot operators and other

professions, and train professional and technical talents to help the labor force transition from

traditional positions to new technical positions.

Stimulating consumption potential and shifting from post-pandemic

recovery to sustained expansion are key tasks for China’s economic work in 2024,

as emphasized at the 2023 Central Economic Work Conference. Rural areas, an

important part of the domestic consumer market, have huge consumption

potential. The per capita consumption of rural residents in China keeps increasing,

and the growth rate of rural consumption has always been higher than the national

average. So, exploring the way to fully release the consumption potential of rural

China is important. Meanwhile, digital inclusive finance is developing rapidly in

China. A consensus has been reached on its role in promoting consumption growth

and structural upgrading. However, problems like the large urban-rural gap and

weak rural development still exist in China, which may lead to issues such as the

widening income gap and digital divide caused by the development of digital

inclusive finance. Especially, it’s uncertain whether the development of inclusive

finance will increase the financial market participation of rural residents and its

beneficial impact on consumption. Therefore, further studies on inclusive finance

development, financial market participation and rural consumption are needed.

Compared with existing literature, this paper has several key contributions. First,

it integrates the “quantity” and “quality” of rural residents’ consumption into a

unified framework to systematically explore the impact of digital inclusive

mechanism of digital inclusive finance in enhancing rural spending power by

influencing rural residents’ purchase of financial products, enjoyment of financial

services and obtaining formal credit. Third, it shows that the role of green finance

varies in different environments. The results of ownership and regional

heterogeneity provide additional policy insigh

This paper constructs panel data regression models and latent variable structural

equation models for empirical analysis. The data on financial inclusion is sourced

from the Digital Inclusive Finance Index of China compiled by the Digital

Finance Research Center of Peking University and other data is obtained from

China Family Panel Studies (CFPS). Meanwhile, due to the incomplete data of

the latest fifth round survey, and there were many missing values in the first two

rounds of survey data. Therefore, this paper selected the survey data from the last

three rounds, namely the 2014, 2016, and 2018 China Family Panel Studies. In

summary, a balanced panel data was obtained covering three periods (2014,

2016, and 2018), with a spatial span of 24 provinces and a total of 4406

households, and number of samples are 13218.

The paper found the following conclusions: (1) Digital inclusive finance can

significantly increase the consumption scale of rural residents, and the results

remain robust after testing. (2) The impact of digital inclusive finance on the scale

and structure of rural residents’ consumption exhibits significant heterogeneity in

different regional environments, education levels, and job categories. Specifically,

the development of digital inclusive finance has a significant impact on the

consumption of rural residents with relatively abundant financial resources and

low to medium education levels; In addition, digital inclusive finance has a

significant impact on the consumption structure of rural residents who are engaged

in non-agricultural work. (3) Starting from the surplus and shortage sides of funds,

constructing a structural equation model for mechanism analysis shows that

investing in financial products and increasing credit scale are important pathways

for digital inclusive finance to cultivate rural residents’ spending power. In

particular, increasing the accessibility of rural credit not only expands the

consumption scale of rural residents, but also helps upgrade their consumption

structure. The conclusions of this paper provide new evidence for China’s policy of

expanding domestic demand, which is of decision-making reference significance.

The question of whether domestic trade in China is more difficult to

conduct than international trade is closely related to the study of the

“productivity paradox”. The so-called ‘productivity paradox’ refers to the fact

that Chinese enterprises that only sell domestically have higher productivity than

those that export. These conclusions not only contradict a series of empirical

research results based on developed countries by scholars, but also conflict with

the theoretical conclusions of Melitz (2003). Although many scholars have

explained this phenomenon from the perspective of Chinese companies setting up

sales branches and processing trade overseas, the segmentation of the domestic

market in China has led to high sales costs, and the phenomenon of “export to

domestic sales” is widely seen in China. It is difficult to speculate whether there

is a reason why domestic trade is more difficult to carry out than international

trade.

To answer the question of which is more difficult, domestic trade or international

trade, the author of this article plans to use multiple gravity models to

quantitatively analyze whether domestic trade in China is more difficult to

comparative analysis of the costs of domestic and international trade in China can

be obtained. Considering the significant difference in transportation distance

between domestic and international trade, we should compare the differences in

other trade costs between domestic and international trade after excluding

geographical distance. This approach can also correct the overestimation of the

possibility of domestic trade due to smaller transportation distances, and fully

utilize gravity models to control trade distances. The coefficient of the dummy

variable reflecting the “boundary effect” in the gravity model can represent the

impact of other costs of trade (which can be referred to as “transaction costs”) on

trade, excluding geographical distance factors. Also compare and analyze the

“transaction costs” of China’s domestic trade, international trade, and trade

between countries around the world. This article calculates the trade volume

between provinces in China based on the “value-added tax” data from the

National Golden Tax Project.

The research results show that China’s domestic trade does not have higher

transaction costs than international trade, as some scholars speculate. On the

contrary, even after controlling for the negative impact of geographical distance,

China’s domestic trade is still easier to conduct than international trade. After

controlling for other factors, domestic trade is 2.4 to 2.6 times higher than

international trade. Using the spatial gravity model, we also found that with the

development of the Chinese economy, the transaction costs of domestic trade are

gradually decreasing compared to China’s international trade. The conclusion of

this article can be seen as a direct negation of the speculation about the reasons

for the “productivity paradox”, and also indicates that China is opening up its

domestic circulation at a relatively faster pace. The development of the economy

makes it more profitable to open up the domestic circulation in China than to

engage in international circulation.

The analysis results of this article prove that the similar economic system and

relatively developed transportation network in China make domestic trade

actually easier to carry out than international trade in various provinces of China.

Although this conclusion is in line with people’s daily intuition, it breaks

scholars’ speculation that the segmentation of the domestic market leads to

Chinese companies prioritizing exports over domestic sales. Although market

segmentation is common in China and has had a significant impact on its

economic development, the distortion caused by market segmentation is not yet

significant enough to make domestic trade more difficult to conduct than

international trade. The spatial gravity model also shows that with the

development of the economy, the trade cost of China’s domestic trade has

significantly decreased compared to China’s international trade, indicating that

China’s domestic trade has achieved relatively greater development from 2003 to

2009. In recent years, China has continuously strengthened the construction of

domestic circulation and a unified national market, built a large number of high

speed railways to promote the flow of personnel and other factors, and carried

out extensive business environment construction. Therefore, there should be a

greater relative reduction in domestic trade costs. We should have more

confidence in the current smooth domestic circulation and vigorous development

of domestic trade.

Clarifying the source of agricultural growth is the premise and

foundation of exploring the sustainable development of agriculture. The classic

decomposing it into technology and efficiency components in terms of input/

output variables, using growth accounting techniques. The focus of this article is

on identifying various pathways through which technology and efficiency affect

TFP and figuring out the most effective channel to boost productivity, which is

hard to systemically recognize previously. The corresponding empirical

approximation to the agricultural production frontier is constructed using selected

country-level data while bounded-adjusted linear programming techniques are

used to decompose observed country-level agricultural TFP growth into two

components in terms of input/output variables: technology and efficiency.

Notably, the resource and environment factors (footprints) are also considered as

input/output variables estimated using the multi-region input-output model. Also,

the ideas of value of environmental resources and externality theory are

embodied in the framework. During the sample period across 2000-2014, it is

found that leading country group has strongest agricultural productivity growth

and global agricultural productivity progressed over time. Besides, the most

effective way to boost world agricultural productivity is to promote the

performance of technology associated with agricultural energy use and efficiency

related to agricultural land.

The productivity growth patterns and its two sources (technology and efficiency),

as well as the components of individual variable exhibit measurable gaps, both

from regional and temporal perspectives. Indeed, according to our classification,

countries clustered into leading one (i. e., Developed, High-income, Urbanized

group) are possessed with strongest historical productivity gains across the

sample period. On the contrary, countries clustered into lagging one (i. e., Less

developed, Lower middle-income and Agriculture-based group) exhibited the

weakest productivity growth. Notably, different sources are quantitatively

measured. Taking 43 economies across the sample period, both the technology

and efficiency contribute to the productivity growth, whereas the effect of

efficiency is more significant. In particular, the performance of technology

associated with agricultural energy use and efficiency related to agricultural land

is prominent. In terms of development level, varied growth patterns of

productivity in developed and developing countries are exhibited. Technological

productivity progress, whereas efficiency progress of agricultural land exhibited

prominent effects on developing economies. Such analysis can also be applied to

other country groups in order to find out the most effective pathways to boost

agricultural economy. Temporally, the whole sample period is divided into three

sub-periods. Obviously, the agricultural productivity exhibited growing trends

over time. Specifically, in the earliest period efficiency promoted productivity

whereas the contribution of technology is negative. In the middle period,

productivity growth mainly relies on positive efficiency while converse effect of

technology impedes the productivity growth. In terms of the latest period, both

the technology and efficiency have ameliorated positively to promote the

productivity growth.

The Third Plenary Session of the 20th Central Committee of the

Communist Party of China emphasized the establishment of a mechanism for the

growth of future industrial investment, and specifically pointed out the need to

improve the policy and governance system to promote the development of

strategic industries such as new generation information technology and artificial

intelligence. At present, the global economy is experiencing a wave of artificial

intelligence applications of “machine substitution”, which is changing the state

of global production and trade. This paper uses the CEPII BACI international

around the world from 2002 to 2018, measures the quality of export products

with price margins, and matches the industrial robot data released by the

International Federation of Robotics to test the impact of artificial intelligence

applications on the quality of export products. The results show that the

application of artificial intelligence represented by industrial robots significantly

improves the quality of export products. The results were robust and persisted

after replacement of the core explanatory variable, replacement of the

explanatory variable, the use of explanatory lag, PSM-DID, instrumental variable

method to alleviate endogeneity problems, and placebo testing. It is found that

the application of artificial intelligence can improve the quality of export

products by improving the level of technological innovation, labor productivity

and optimizing the allocation of resource factors. This paper further finds that the

effect of AI application in improving the quality of export products needs to be

supported by a high level of trade facilitation and a strong focus on innovative

technologies. The analysis in this paper undoubtedly provides a useful reference

for the development of artificial intelligence and the construction of a trade

power.

Patient capital, as an emerging concept, plays a critical role in addressing the

challenges posed by the financialization of real economy enterprises. Unlike traditional short

term investment models, patient capital emphasizes long-term financial support, reducing

firms' reliance on frequent financial market operations to achieve short-term profitability. This

innovative mechanism enables enterprises to allocate resources toward core business

development and innovation, effectively mitigating the risks associated with excessive

financialization. By fostering stability and growth, patient capital contributes to a healthier

economic ecosystem while aligning with broader objectives of sustainability and corporate

responsibility. In view of this, this paper investigates the mechanisms through which patient

capital reduces uncertainty perception and risk-taking levels, aiming to provide a new

perspective on restraining enterprise financialization.

Theoretically, this paper elaborates on the logical foundation of patient capital in curbing

financialization. Patient capital, characterized by its emphasis on long-term orientation, strong

risk resilience, and strategic relationship-building, offers enterprises a pathway to financial

stability. By ensuring stable and predictable funding sources, patient capital reduces the

dependency of firms on short-term financial operations that prioritize quick returns. This shift

in focus allows enterprises to reallocate resources toward areas that promote sustainable

growth, including core business activities and innovation-driven projects. Furthermore, patient

capital investors prioritize long-term value creation over short-term profit maximization,

fostering trust-based and cooperative relationships with enterprises. These relationships not

only reduce uncertainty perception and risk-taking levels but also optimize the allocation of

capital, thereby mitigating the adverse effects of financialization on the real economy. This

theoretical framework establishes a solid foundation for understanding the mechanisms

through which patient capital can transform enterprise financial strategies.

Empirically, this study uses data from Chinese listed companies between 2009 and 2022 to

examine the effects of patient capital on enterprise financialization. The findings confirm that

patient capital significantly restrains financialization, with the results remaining robust after

financialization by lowering uncertainty perception and risk-taking levels among enterprises.

By providing stable financial support, patient capital minimizes firms' reliance on short-term

profit generation, enabling them to withstand market fluctuations and economic pressures.

Moreover, the long-term nature of patient capital facilitates better alignment with firms'

strategic goals, encouraging sustained investment in productive and innovative activities.

These findings highlight patient capital's critical role in stabilizing corporate financial behavior

and promoting high-quality economic development.

Further analysis reveals the heterogeneous effects of patient capital on financialization. When

financialization is divided into moderate and excessive levels, the results show that patient

capital exerts a stronger restraining effect on excessive financialization. Excessive

financialization, characterized by over-investment in financial assets at the expense of

productive investment, can lead to the formation of asset bubbles and heightened financial

instability. Patient capital mitigates these risks by encouraging enterprises to prioritize long

term investments over speculative financial activities. This effect is particularly significant in

reducing the adverse consequences of excessive financialization, including the erosion of

productive capacity and increased systemic risk.

Additionally, this paper identifies the role of patient capital in stabilizing firms’ earnings

volatility. Financialization, while offering short-term financial gains, often increases

operational risk and revenue instability. Patient capital counters these effects by providing a

stable financial foundation, reducing firms’ susceptibility to market fluctuations and enabling

them to maintain consistent profitability. This stabilizing effect underscores the inherent trade

offs in financialization: excessive pursuit of short-term returns can result in high volatility and

increased risk exposure, whereas a focus on long-term growth and prudent investment fosters

sustainable economic benefits. The findings emphasize that patient capital plays a vital role in

addressing the “more haste, less speed” dilemma, where short-term financial pursuits hinder

long-term enterprise success.

This study makes several important contributions to the literature on financialization and

corporate governance. First, it provides a theoretical framework for understanding how patient

capital influences enterprise financialization through its unique emphasis on long-term stability

and risk mitigation. Second, it offers empirical evidence on the mechanisms through which

patient capital reduces uncertainty and risk-taking, contributing to the broader understanding

of financial stability in the real economy. Third, it demonstrates the significant policy

implications of patient capital for fostering sustainable economic growth and preventing

excessive financialization.

This research also offers actionable insights for policymakers and practitioners. Promoting the

growth of patient capital should be prioritized to support long-term economic stability and

high-quality development in China's real economy. Furthermore, enhancing the coordination

between primary and secondary financial markets can strengthen the foundational support for

patient capital. Finally, targeted measures are needed to manage financialization, with a

particular focus on preventing excessive financialization among enterprises. By leveraging the

unique benefits of patient capital, policymakers can create a more resilient and sustainable

economic system.

“Health is the most important indicator of a happy life,” and the

Third Plenary Session of the 20th Central Committee of the Communist Party of

strategy.” Against this backdrop, we focus its research perspective on the

physical health of workers. From the perspective of industrial robot applications,

it examines the impact of artificial intelligence technology on workers’ physical

health and conducts a series of mechanism tests and heterogeneity analyses. The

research results indicate that the application of industrial robots has certain

physical health effects; specifically, it positively affects workers’ physical health

by improving the working environment and changing the nature of work, but it

also negatively impacts workers’ physical health through decreased work income

and increased working hours. Heterogeneity analysis reveals that household

registration discrimination can “offset” the physical health benefits that routine

work performers should otherwise obtain from the application of industrial

robots. Additionally, this paper finds that “loosening” the constraints of

household registration can become an important strategy to improve the health

level of agricultural household registrants and narrow the welfare gap between

urban and rural residents.

Currently, expanding “effective investment” has become a priority

for the government. In this context, studying and analyzing how to stimulate

enterprises’ willingness to invest and expand effective enterprise investment

through external policies is of great practical significance for promoting the high

quality development of both enterprises and the economy. The investment

friction theory suggests that factors such as fixed costs, transaction costs, and

adjustment costs faced by enterprises can restrict their investment decisions and

hinder the achievement of investment goals. Under China's unique fiscal and

taxation system, the government has both the motivation and the ability to

intervene in the economic development of its jurisdiction. The quality of the local

business environment determines the flow and agglomeration of essential

resources, which significantly affects the development quality of enterprises in

the region. Focusing on the tax domain, and while deepening tax reform, tax

authorities have begun to address issues such as the high costs of tax compliance

for enterprises and low levels of tax compliance. To tackle this problem, since

2013, the country has issued a series of policy regulations aimed at optimizing

the tax system, policies, and tax administration, with the goal of building a tax

ecosystem that prioritizes the core interests of taxpayers.

The “Decentralization, Regulation, and Service” reform of the tax system

impacts enterprise effective investment through three aspects: “streamlining

administration and delegating power”“combining decentralization with

regulation” and “optimizing services”. Firstly, through “streamlining

administration and delegating power”, the tax authorities have simplified tax

related approvals and procedures, reducing the interference of government

approval processes in enterprise investment activities. This has significantly

lowered institutional transaction costs for enterprises, alleviated cash flow

pressures, granted enterprises greater investment autonomy, and enhanced market

regulation, thereby aligning investments more closely with company strategies

and market demands. Secondly, by “combining decentralization with regulation”,

barriers between various departments have been dismantled, shifting from post

event crackdowns to preventive measures and increased tax supervision.

Although heightened supervision may lead to short-term increases in tax burdens

for some enterprises, which could reduce their willingness to invest, in the long

run, a fair and just tax business environment will diminish rent-seeking behavior

and promote better resource allocation, thereby enhancing enterprise investment

expectations. Thirdly, through “optimizing services”, the tax authorities have

developed targeted tax service plans for different types of enterprises, ensuring

that tax incentives are effectively translated into business benefits. This approach

meets the cash flow needs of enterprises and provides financial support for

expanding effective investment. Additionally, the tax authorities have improved

service quality and guided enterprises in tax-related matters. In conclusion, the

“Decentralization, Regulation, and Service” reform of the tax system can liberate

enterprises by optimizing the tax business environment, motivating them to

expand effective investment in terms of both capacity and willingness. To verify

this hypothesis, this paper analyzes A-share company data from 2012 to 2022,

using the 2017 and 2018 reform as quasi-natural experiments. A multi-period

difference-in-differences model is constructed to empirically test the impact and

mechanisms of the optimized tax business environment on effective enterprise

investment.

Compared to existing literature, this paper makes the following marginal

contributions: Firstly, it enriches the research on the tax business environment.

While numerous scholars have studied the impact of the business environment on

micro-enterprises, very few have focused specifically on the tax domain. This

paper clarifies how optimizing the tax business environment influences enterprise

investment behavior from a tax perspective, thereby expanding and enriching the

current body of research. Secondly, this paper emphasizes effective investment

and considers both the quantity and quality of investment. Merely requiring

enterprises to continuously expand their investment scale may not necessarily

benefit high-quality enterprise development. It is equally important to focus on

investment efficiency and address issues of underinvestment and overinvestment.

This paper empirically tests the impact and mechanisms of optimizing the tax

business environment on both the scale and efficiency of enterprise investment,

and in its expanded analysis, examines whether this optimization can genuinely

promote high-quality enterprise development. Thirdly, this paper utilizes the

“Decentralization, Regulation, and Service” reform of the tax system as a quasi

natural experiment, employing a multi-period DID method to analyze the impact

of optimizing the tax business environment on enterprise investment. This

approach helps alleviate potential endogeneity issues and provides valuable

insights for optimizing the tax business environment, stimulating enterprise

investment, and promoting the high-quality development of both enterprises and

the economy.

The research conclusions of this paper are as follows: Firstly, compared to non

pilot areas, the scale and efficiency of investment by enterprises in pilot areas

have significantly improved, indicating that the optimization of the tax business

environment is conducive to increasing both the quantity and quality of

enterprise investment. These results remain robust after a series of tests.

Secondly, through mechanism testing, it is found that the optimization of the tax

business environment primarily expands the scale of enterprise investment by

reducing financing constraints and enhances investment efficiency by curtailing

managerial rent-seeking behavior. Thirdly, heterogeneity testing reveals that the

policy effect is more pronounced in regions with strong tax collection and

management, low levels of marketization, as well as among large-scale

enterprises and non-state-owned enterprises. Fourthly, in the expanded analysis,

it is found that optimizing the tax business environment not only expands

effective investment but also improves total factor productivity and promotes

high-quality development for enterprises. Based on these conclusions, the the

“Decentralization, Regulation, and Service” reform of the tax system has proven

effective and can be gradually implemented nationwide. Finally, this paper offers

policy recommendations for building a favorable tax business environment,

focusing on promoting tax legalization, modernizing services, and enhancing

informatization in tax collection and management.

This article uses data from the China Household Finance Survey (CHFS) and

employs the overlapping generation model and the difference in differences model to

theoretically and empirically test the impact of integration of urban and rural pension

insurance on the economic resilience of rural households. The empirical results show that

integration of urban and rural pension insurance promote the economic resilience of

rural households, and this effect shows an inverted “U” shape due to changes in regional social

security levels, family life cycles, and income levels. This effect is more pronounced in

samples from regions with medium social security levels, middle-aged families, and low - to

middle-income families. Mechanism analysis shows that integration of urban and rural

term development ability of rural households by increasing household financial asset allocation

and adjusting livelihood strategies, thereby enhancing their economic resilience. The research

findings in this article have policy implications for optimizing the design of the social

insurance system and promoting integrated urban-rural development.

The vision of “providing care and joy for the elderly” is a beautiful aspiration for achieving a

harmonious society. In theory, the improvement of a social security system that covers both

urban and rural residents can help narrow the urban-rural gap, improve income distribution,

enhance the quality of life and welfare for the rural population, and act as a “regulator” of

social equity and a “driving force” for social development. However, existing studies on the

effects of the integration of urban and rural pension insurance have mainly focused on static

economic growth aspects such as the income and consumption of rural households. There is

relatively limited literature that directly links the integration of urban and rural pension

insurance to the future welfare of rural households, quantifying its long-term effects.

Therefore, this paper, within a micro-welfare analysis framework, takes economic resilience as

an entry point to analyze the role of urban and rural pension insurance integration in promoting

the long-term development of rural households.

Using data from the China Household Finance Survey (CHFS) for 2013, 2015, and 2017, and

treating China's integration reform of urban and rural pension insurance as a quasi-natural

experiment, this paper empirically examines the impact of urban and rural pension insurance

integration on the economic resilience of rural households and its mechanisms. The results

show that the integration of urban and rural pension insurance helps enhance the economic

resilience of rural households, and this effect exhibits regional and household heterogeneity,

with a greater impact on samples from regions with moderate levels of social security, middle

aged households, and low and middle-income households. Further analysis indicates that the

integration of urban and rural pension insurance not only mitigates short-term risk shocks but

also fosters the long-term development capacity of rural households by increasing household

financial asset allocation and adjusting livelihood strategies, thereby improving their economic

resilience.

Our research provides a social insurance-based solution to enhance the economic resilience of

rural households and offers empirical evidence and policy recommendations for the

optimization of the urban-rural residents’ basic pension insurance system. The study shows

that the integration of urban and rural pension insurance plays an important role in improving

the economic resilience of rural households. Therefore, efforts should be made to actively

promote the economic effects and broader benefits of the urban-rural pension insurance

system, encourage rural households to participate in the insurance scheme, and incentivize

households to increase their contribution levels. At the same time, the government should

consider adopting appropriate premium reduction and subsidy measures in the design of the

urban-rural pension insurance system to alleviate the payment burden on rural households

The report from the 20th National Congress of the Communist Party

of China highlighted high-quality development as the primary objective in

building a modern socialist country. It outlined strategic plans to advance this

goal. A key focus is to “establish a high-level socialist market economic system,

economy, and vigorously support and guide the non-public economy.”

Additionally, it emphasized that “promoting green and low-carbon economic and

social development is crucial for achieving high-quality development.” In recent

years, this initiative has become a national strategic priority. On August 11, 2024,

the Central Committee of the Communist Party of China and the State Council

issued the “Opinions on Accelerating the Comprehensive Green Transformation

of Economic and Social Development,” marking the first comprehensive plan for

a nationwide green transformation. This provides a clear direction for enterprises

and raises expectations for corporate ESG investments and sustainable development

practices. As a vital component of China’s socialist market economy, the private

enterprise has contributed over 50% of taxes, 60% of GDP, 70% of technological

innovations, 80% of urban employment, and 90% of enterprises since the reform

and opening-up. Promoting the green transformation of private enterprises is

crucial for high-quality economic growth. One effective approach is integrating

environmental, social, and governance (ESG) responsibilities into corporate

decision-making. Improving the ESG performance of private enterprises is

essential for their green transformation and high-quality development, making

this exploration significant in both theory and practice.

Current research on corporate ESG performance investigates internal factors like

high-capacity managers and institutional investor shareholdings, alongside

external factors like environmental tax laws, air pollution, and green bond

issuance. Equity structure is foundational to corporate governance (Shleifer and

Vishny, 1986). The integration of state-owned, collective capital and non-public

capital can optimize equity structures and create effective governance

mechanisms. Since the Third Plenary Session of the 18th CPC Central

Committee emphasized developing a mixed-ownership economy, the Chinese

government has issued policies to promote this integration. Among them, the

“Opinions of the State Council on the Development of Mixed-Ownership

Economy by State-owned Enterprises” clearly pointed out that “state-owned

capital is encouraged to invest in non-state-owned enterprises in various ways

and actively develop a mixed-ownership economy.” State-owned capital

investment in private enterprises is a critical aspect of mixed-ownership economy

development. However, few studies focus on how such investments influence the

ESG performance of private enterprises from an equity perspective.

This paper examines the impact of state-owned capital shareholders on the ESG

performance of private enterprises, using data from Chinese A-share private

listed companies from 2008 to 2021. Findings indicate that state-owned capital

shareholders significantly enhance ESG performance. Mechanism tests reveal

that state-owned capital improves ESG performance by alleviating financing

constraints and optimizing the information environment. Further analysis shows

that when private enterprises face high internal business uncertainty, state-owned

capital shareholders have a stronger impact on ESG performance. In regions with

less developed non-state economies, the influence of state-owned capital is more

pronounced. This study highlights the pivotal role of state-owned capital in

fostering the sustainable development of private enterprises and underscores the

importance of mixed ownership reform in driving the green transformation of the

economy and society. The possible research contributions of this paper are: First,

this paper expands the research on the economic consequences of mixed

ownership reform of private enterprises from the perspective of ESG

performance. Second, we enrich the research on factors affecting ESG

performance from the perspective of equity change. Third, this paper explores the

internal mechanism of how state-owned capital investing in private enterprises

affects the ESG performance of enterprises, providing more direct evidence for

how state-owned capital can help private enterprises transform into green and

low-carbon enterprises.

Information disclosure is a key factor influencing the effectiveness of capital

markets. Perfecting the information disclosure system of listed companies and deepening

capital market reforms are hot issues of concern for regulatory authorities and academia.

Financial information is increasingly unable to meet the increasingly diverse information needs

of investors. Operational information disclosure such as management discussions and analyses

has gradually become a focus of attention for investors and academia. However, there has been

little research on the economic consequences of industry-specific operational information

disclosure. In recent years, the yields of financial products and real estate investments have

remained high for many years, and the number of entities engaged in financial product

investments has continued to increase. The trend of entities becoming more financially

oriented is becoming increasingly evident, and the problem of “moving away from the real

economy towards the virtual economy” is becoming more serious. Against this background,

this article takes industry-specific operational information disclosure as a starting point to

explore the impact and economic consequences of industry information disclosure on

corporate financialization.

This article takes companies listed on the Shanghai Stock Exchange as the research sample and

constructs a multi-timepoint difference-in-differences regression model using the successive

releases of the “Industry Information Disclosure Guidelines” between 2015 and 2021 to

examine the impact of industry information disclosure on corporate financialization. Empirical

tests reveal a significant negative correlation between industry information disclosure and

corporate financialization, indicating that industry information disclosure can restrain

corporate financialization behavior. The above findings remain robust after conducting placebo

tests, PSM+DID tests, and other robustness tests. In further research, this article conducts

industry information disclosure has a stronger inhibitory effect on corporate financialization in

companies in low market competition, and less management experience. In the mechanism

test, this paper finds that industry information disclosure inhibits corporate financialization

through the learning imitation effect of information spillover and the governance effect of

improving information transparency. Additionally, industry information disclosure can also

inhibit management financialization behavior through the external governance function of

information disclosure. Furthermore, industry information disclosure promotes corporate real

investment, enhances investment efficiency, and helps companies “move from the virtual

economy to the real economy,” indicating that industry information disclosure plays a positive

role in promoting company operations.

This article not only explores the economic consequences of industry information disclosure as

a form of operational information disclosure but also further enriches the economic

consequences of operational information disclosure. It also explores the impact mechanism of

operational information disclosure on corporate investment decisions, providing decision

making references for regulatory authorities to further deepen industry information disclosure

supervision.

In recent years, the interaction between local government debts and corporate

innovation has garnered significant attention from both academia and policymakers. The Third

Plenary Session further highlighted that scientific macroeconomic regulation and effective

government governance are intrinsic requirements for leveraging the advantages of the

socialist market economy system. It stressed the importance of balancing development and

security, preventing local government debt risks, constructing a high-level market economy

system, and stimulating society’s intrinsic motivation and innovative vitality. Against this

special supervision on clearing overdue payments owed by local governments, to investigate

the impact mechanism of overdue payment clearance on corporate innovation. This study

contributes to a comprehensive understanding of the role of effective local government

governance in the development of new-quality productivity in China and provides policy

recommendations to consolidate enterprises' status as the main actors in technology innovation

decisions, R&D investment, research organization, and the commercialization of research

outcomes.

This study employs the Difference in Differences (DID) method and Quantile Control Method

(QCM), based on the State Council’s special supervision on clearing overdue payments owed

by local governments, to examine the promotion effect of overdue payment clearance on

corporate innovation. Key findings include: ⅰ . Overdue payment clearance can alleviate

liquidity constraints for enterprises, increasing funds available for R&D and thereby enhancing

their willingness to invest in innovation. ⅱ . It also optimizes the financing environment and

mitigates market distortions, improving valuations of innovation projects and thus boosting

enterprises' inclination towards innovation investment. ⅲ.The governance effects of overdue

payment clearance are more pronounced in firms with higher levels of innovation focus and in

emerging industries. ⅳ.Further analysis using QCM reveals that regions with dense emerging

industries and effective policy implementation, such as Beijing and Hubei, exhibit the most

significant policy treatment effects.

Based on the above analysis, the following policy recommendations are proposed. Firstly,

given that overdue payment clearance significantly alleviates liquidity constraints for

enterprises, the government should further promote the full implementation of overdue

payment clearance, actively push forward the “decentralization, regulation, and service”

reform, and timely supervise the effectiveness of these reforms. Land finance has historically

driven economic growth while amplifying the fragility of local government finances,

particularly through government debt arrears, which have severely undermined the social

credit environment and reduced the effectiveness of macroeconomic regulation and

government governance. Specialized supervision facilitates the formation of local government

debt repayment mechanisms, effectively resolving debt arrears issues, reducing financial

burdens for private enterprises, enhancing business credit, and lowering financing costs,

thereby fostering effective innovation project investment opportunities and promoting

economic restructuring, the development of emerging industries, and the perfection of the

socialist market economy system. Notably, despite multiple policies issued by the central

government to resolve government debt and support private enterprises, challenges remain in

implementation due to objective conditions. During this process, it is essential to adopt

stringent measures to prevent the addition of new hidden debts and ensure genuine debt

resolution, creating a more favorable business environment for enterprise innovation and

encouraging greater engagement in technology innovation and market expansion.

Secondly, while guarding against local government debt risks, the government must prioritize

the critical role of strategic emerging industry enterprises in the innovation-driven

development strategy, vigorously cultivating the innovative vitality of private enterprises.

Under the support of land finance, local governments often pursued performance-based

expansion through excessive financing and large-scale infrastructure investments, leading to

crowding out of emerging industry innovation investments and increased government debt

pressure. Given the specific deployment of comprehensive deepening reforms outlined in the

communiqué of the Third Plenary Session, emphasizing the construction of systems to support

comprehensive innovation and the improvement of the macroeconomic governance system, the

government should accelerate the establishment of effective governance structures, actively

promote fiscal transformation, improve the management system for government debts,

establish comprehensive monitoring and regulatory systems for local government debts, and

build long-term mechanisms for preventing and resolving hidden debt risks. Accelerating the

reform and transformation of local financing platforms and providing strong support for

private enterprise innovation is imperative. Local governments need to optimize debt

expenditure structures, reasonably expand the scope of support for local government special

bonds, and enhance the innovation capabilities and competitive advantage of private

enterprises, especially those in emerging industries, through fiscal support, tax incentives, or

innovation funds.

Lastly, according to the QCM assessment results, there are significant differences in the effects

of overdue payment clearance policies across different regions. Therefore, the government

should tailor corresponding institutional constructions during the clearance process based on

the scale of local government debts and regional economic development levels, promoting

balanced regional economic development and overall enhancement of innovation capabilities.

Establishing sound legal systems, demarcating legal boundaries, and fostering a positive

business environment are key to ensuring enterprise innovation and development and are

intrinsic requirements for advancing the rule of law. On one hand, robust supervisory and

auditing systems for governmental financial management and budget execution should be

established, along with internal management and budget control mechanisms to enhance

financial transparency and accountability, ensuring timely settlement of enterprise payments

and enabling enterprises to protect their legitimate rights when facing arrears. On the other

hand, to mitigate adverse impacts on government and social credit environments and enterprise

investment caused by government arrears, the New Budget Law and other relevant financial

regulations should be used as a basis to explore new methods for repaying remaining arrears,

such as asset restructuring and debt swaps, providing legal grounds for enterprises to safeguard

their rights and supervise rectification of government arrears, thereby fostering a transparent

business environment and a proactive innovation environment that promotes a comprehensive

innovation landscape.

Entrepreneurial activities can enhance income opportunities for farmers,

transitioning the rural economy from a “labor-based” to an “entrepreneurial” model.

Entrepreneurial activities play a crucial role in activating the endogenous dynamics of rural

areas and fostering industrial revitalization. This paper integrates the theory of dissipative

structures into the rural industrial revitalization framework, applying interdisciplinary methods

to explore how county-level entrepreneurial activities influence industrial revitalization. Using

panel data from 2,045 counties between 2011 and 2020, this study empirically examines the

role of county entrepreneurial activities in promoting rural industrial revitalization. The

findings indicate that these activities attract negative entropy flows—such as information and

material resources—into the revitalization system through increased employment, capital

agglomeration, and technological innovation. This process helps establish a stable, orderly

dissipative structure that drives industrial revitalization. The heterogeneity analysis reveals that

the positive impact of county-level entrepreneurial activities on industrial revitalization is more

pronounced in western regions and in counties not part of e-commerce demonstration zones.

This paper offers two key innovations: First, it applies the theory of dissipative structures to

rural industrial revitalization, using an interdisciplinary approach to examine the relationship

between county-level entrepreneurship and industrial revitalization from a novel perspective.

Second, it focuses on the county level, a crucial link in urban-rural integration, and measures

industrial revitalization across four dimensions: agricultural industry chain extension,

agricultural multifunctionality, the development of agricultural and rural service industries, and

the establishment of benefit linkage mechanisms. This empirical analysis expands the research

scope beyond provincial or prefectural levels, addressing the limitations in existing literature.

First, rural areas should leverage local industries and resources to actively promote

entrepreneurship and provide diverse employment opportunities for farmers. Support for

sustainable agricultural practices, such as organic farming, should be strengthened, ensuring

economic and ecological balance. Social capital should be encouraged to invest in rural

projects, utilizing financial tools like angel investments and equity funding to facilitate

economic transformation. Integrating resources such as capital, talent, technology, and markets

will ensure the sustainability of entrepreneurial activities. Digital technologies and e

commerce should be used to foster new “agriculture+” business models, enabling integrated

rural industry development and improving the business environment, which will support

farmers’ income growth and county-level economic development.

Second, policy support and capital investment should be prioritized in western regions and non

e-commerce demonstration counties. Infrastructure improvements in roads, railways, and

logistics will reduce business costs, enhance agricultural product distribution, and foster rural

industrial expansion. Talent attraction mechanisms, including entrepreneurship subsidies and

housing support, should be implemented to encourage young professionals to start businesses

in rural areas. Additionally, expanding digital inclusive finance will help alleviate funding

constraints and lower barriers for entrepreneurs.

Third, rural industries based on local resources should be developed. Encouraging farmers to

diversify into industries such as specialty farming, handicrafts, and forest-based economies

will improve industrial structure and promote value-added sectors. This will shift rural

industries from isolated production to integrated value chains covering production, sales, and

services. Leveraging local cultural heritage and natural resources will create employment

opportunities and foster a feedback loop where entrepreneurship drives job creation.

Developing local brands and region-specific products will enhance the economic

competitiveness of rural industries.

Finally, "return-home entrepreneurship" policies should be strengthened to increase awareness

and participation. Tailored policies should be developed for different villages based on local

conditions. Using technology to provide farmers with market information will expand their

opportunities and break geographical barriers. Legal support should be offered to ensure

entrepreneurs understand key regulations. Training programs will improve business

management skills and encourage innovation, helping to reduce system entropy and achieve

comprehensive rural revitalization.

The Third Plenary Session of the 20th Central Committee of the Communist Party

of China proposed to build a system and mechanism to support comprehensive innovation and

to enhance the overall effectiveness of the national innovation system. One of the important

specific reform measures is to increase the proportion of the policy of pre-tax deduction for

R&D expenses. At present, China's current policy of pre-tax deduction for R&D expenses

stipulates that the percentage of deduction for independent and collaborative innovation

activities of general enterprises is 100%, and the percentage of deduction for independent and

collaborative innovation activities of integrated circuit enterprises and machine tool enterprises

is 120%. In practice, how should the proportion of the policy of pre-tax deduction for R&D

expenses be increased? Should the proportion of deduction for independent innovation and

collaborative innovation be increased in the same proportion, or should there be a tendency to

give more policy incentives for a certain R&D method? What is the rationale? Much literature

has examined the innovation incentive effects of the policy of pre-tax deduction for R&D

expenses. However, the existing literature has not fully understood the impact of the policy of

pre-tax deduction for R&D expenses on firms’ collaborative innovation. With the

development of the times and the increasing complexity of technology, R&D need to be

carried out more and more cooperatively, and the latest research suggests that collaborative

innovation can play an important role in accelerating the solution to the scientific and

technological “necklace” problems that China faces. Accelerating the self-reliance of high

level science and technology requires the integration of high-quality innovation resources from

sharing. Only by comprehensively recognizing the implementation effect of the policy of pre

tax deduction for R&D expenses can we provide valuable lessons for the next policy reform.

This study mainly discusses the impact of the current policy of pre-tax deduction for R&D

expenses on the collaborative innovation activities of enterprises from both theoretical analysis

and empirical tests.

In contrast to the common belief that the policy of pre-tax deduction for R&D expenses will

incentivize enterprises to engage in innovation activities, the theoretical analysis finds that the

policy of pre-tax deduction for R&D expenses will change the costs of independent and

collaborative innovation in R&D projects, which will affect the relative size of the expected

benefits that enterprises can get from choosing to complete R&D projects in an independent or

collaborative way, and may lead to the fact that enterprises are more inclined to engage in

independent innovation activities. Using the data of listed private companies in China's

manufacturing industry, a Difference-in-Differences model is established to conduct an

empirical study, and the results show that the policy significantly increases the R&D

investment intensity and the number of independent invention patents filed by enterprises, but

significantly reduces the number of joint invention patents filed by enterprises with high R&D

investment intensity. For enterprises, they can or should choose whichever innovation method

can be more profitable. However, the policy of pre-tax deduction for R&D expenses is funded

by the state, and it is important to evaluate the social impact of the policy in changing the

tendency of enterprises' R&D methods. The cost of independent innovation is higher than that

of collaborative innovation, and if there are enough R&D project plans and financial

constraints on firms' innovation activities, a change in the propensity of firms' R&D

approaches will lead to a decline in the number of differentiated R&D tasks that firms can

undertake and relatively few breakthrough innovations, relative to what would have been

possible if the policy had not changed the propensity of firms to innovate in a differentiated

way. A change from one collaborative innovation activity to several independent innovations

and an increase in the number of R&D projects that need to be supported by financial

resources can lead to a waste of financial resources.

Internationally, tax incentives for R&D expenses are also commonly practiced in developed

countries. Countries such as France and Japan have set a high percentage of R&D expense

credit for collaborative innovation activities. According to Article 244 of the French tax law,

the tax credit ratio for the part of qualified R&D expenses of enterprises less than or equal to

100 million euros is 30%; the tax credit ratio for the part greater than this amount is 5%; the

tax credit ratio for qualified R&D expenses incurred by enterprises in collaborative R&D is

40% for large enterprises and 50% for small and medium-sized enterprises. Japan's tax

incentives for R&D expenses stipulate that the credit ratio for qualified R&D expenses is 2%

-14% for large enterprises and 12%-17% for SMEs. For collaborative R&D or entrusted R&D,

the credit rate is 30% for R&D expenses incurred with scientific research institutes or higher

education institutions, 25% for R&D expenses incurred with R&D venture corporations, and

20% for R&D expenses incurred with other entities (including large enterprises). The higher

credit rate for R&D expenses incurred in collaborative innovation activities is a reflection of

the emphasis on collaborative innovation in the above countries. This study concludes that the

above policy design is less likely to crowd out collaborative innovation activities and has a

better policy effect than the current policy design in China. It is suggested that when adjusting

the policy of pre-tax deduction for R&D expenses, differentiated pre-tax deduction ratios

should be designed for independent and collaborative innovation activities of enterprises, and

higher pre-tax deduction ratios should be set up for collaborative innovation activities of

enterprises relative to independent innovation activities, so as to improve incentives for

collaborative innovation activities and make the policy serve better for the development goal of

“realizing a high level of scientific and technological self-reliance and entering the forefront of

innovative countries”.

Since the international financial crisis in 2008，the supervision of systemically important financial institutions has become an important part of the global financial supervision reform. Correspondingly，the supervision of systemically important enterprises has gradually attracted more and more attention in enterprise supervision. Enterprise groups play an important role in economy，especially in resource allocation，capital flow and market competition. However，the complex structure and internal market mechanism of enterprise groups have also brought many problems，such as resource mismatch in the internal capital market，tax transfer，pollution transfer and patent transfer. These problems not only affect the efficiency of enterprises themselves，but also have a far-reaching impact on the entire economic system.
More and more attention has been paid to the development and supervision of systemically important enterprise groups. This paper discusses the development history，problems and governance of enterprise groups. First of all，this paper focuses on the policy and process of enterprise group development since China’s reform and opening up，focusing on the nature of the subsidiaries of China enterprise group （off-site） and the driving factors of its off-site development；This paper discusses the internal market of enterprise groups in the context of China，including the transfer of profits，taxes，debts and earnings management in the internal capital market，as well as the pollution of the new internal market and the patent transfer. Secondly，it analyzes the development process and problems of American enterprise groups’40-year rise and 20-year disappearance since 1888，and the subsequent academic research theories formed in academic circles，and focuses on comprehensively comparing the theoretical and practical differences between the development of Chinese and American
enterprise groups. Finally，in view of the problems existing in China’s enterprise groups，this paper summarizes the research direction of China’s current enterprise group development and governance，focusing on internal governance，external supervision and the independent knowledge of China enterprise group research.
It is found that China enterprise groups have played a very good role in the reform and development，but there are also many problems. What needs special attention is that the management of the problems in the development of enterprise groups in China cannot learn from the United States completely，but should give full play to the advantages of enterprise groups and avoid their potential risks according to the development characteristics of enterprise groups in China. The corresponding policy suggestions are as follows.
First，internal governance：vertical and horizontal penetration of the new company law（generalization of group boundaries）. The new “Company Law” further introduces horizontal penetration on the basis of vertical penetration in the protection of creditors’ interests. This change will make it more difficult for vertically penetrated enterprise groups or horizontally penetrated generalized enterprise groups to transfer risks，such as debt transfer，which will be more effectively recovered and improve creditor protection. However，apart from debt transfer，it is actually more difficult to protect rights through vertical and horizontal penetration，which requires further measures by supervision or law.
Second，external supervision：unify the regional supervision standards for the construction of large markets. The Regulations on Fair Competition Review in 2024 has put forward clear requirements for the review of tax incentives and financial subsidies in different regions，but it is relatively more difficult to unify standards in different regions，such as intellectual property supervision，which leaves more room for inter-regional enterprise groups to transfer their internal markets. Therefore，it is suggested to strengthen specialized cross-regional law enforcement. At present，China has set up four intellectual property courts and 27 intellectual property courts to cover more areas of supervision professionally. At present，there are still 10 provinces and some areas in the province that have not set up intellectual property courts or tribunals. Explore the joint enforcement mechanism of cross-regional intellectual property rights. Promote cross-regional linkage law enforcement supervision，explore cross-regional filing mechanism of intellectual property cases，establish cross-regional “execution connection” mechanism，and establish multi-mediation mechanism for intellectual property disputes. Strengthen the judicial guidance on the application of unified laws，especially for the shortcomings of supervision in areas with weak intellectual property protection，and realize the substantive relative balance of intellectual property supervision in different regions.
Third，the independent intellectualization of Chinese enterprise group research. According to the needs of practice，we expect the new development of enterprise group theory will gradually transition from the United States to China and other countries. The theoretical development of Chinese-style enterprise groups requires better open communication，active participation in global enterprise group governance，joint response to global challenges，and contribution to the theory and practice of global enterprise group development.

The South-to-North Water Transfer Project，as a large-scale water conservancy facility to solve the problem of water shortage in northern China，has injected new vitality into the economic and social development of the regions along the route. However，since the middle route of the project was put into operation at the end of 2014，the artificial use of mountain terrain to achieve the overall goal of self-flow throughout the main canal has caused a geographical division. Due to the altitude difference on both sides of the main canal，the water extraction conditions are different，resulting in differences in agricultural production endowments. Among the three major industries，agriculture is most affected by water resources. Therefore，this paper empirically examines the changes in agricultural output capacity on both sides of the main canal after the water diversion.
This paper accurately identified the geographical locations of each county through Geographic Information System （GIS） and matched them with the “China County Statistical Yearbook” over the years to construct a panel dataset from 2008 to 2021. Based on this，the paper employed the regression discontinuity design method to examine the impact of the opening of the Middle Route of the South-to-North Water Diversion Project on the agricultural development of the areas along the route. The research results show that：Firstly，the Middle Route of the South-to-North Water Diversion Project has significantly affected the agricultural development gap between the areas on both sides of the route. Specifically，after the water diversion，the average annual growth rate of agriculture in the eastern counties was 2.2 percentage points higher than that in the western counties. This effect has been continuously accumulating over time and has been reproduced under different estimation methods，bandwidth settings，and variable definitions. Secondly，the agricultural growth performance of the eastern counties along the main canal in Hebei Province is more prominent，with its growth rate nearly twice that of Henan Province. Moreover，the construction of the Middle Route Project has not had a significant differential impact on the secondary and tertiary industries. In terms of agricultural product output，the impact of the opening of water to the Central Route Project on the differential change in the output of food and oil crops is more pronounced. In terms of the impact mechanism，the opening of the Middle Route Project mainly affects agricultural development by acting on agricultural labor and agricultural capital.
The policy recommendations contained herein have distinct guiding significance：Firstly，the Middle Route of the South-to-North Water Diversion Project has promoted the agricultural development along the route. At the same time，it is necessary to be vigilant about the nonequilibrium development of industries. Specifically，the agricultural growth rate in the eastern plain area along the canal is significantly higher than that in the western area. Therefore，a scientific and reasonable water resource allocation plan should be established. Secondly，the further north the location，the more prominent the promoting effect of the opening of the Middle Route Project on the agricultural development of the eastern plain area along the canal，while also exacerbating the non-equilibrium development of agriculture. In this case，water resource allocation should be planned more scientifically and rigorously to promote the rational utilization and sustainable development of water resources. At the same time，for the western areas with insufficient agricultural development endowments，they can optimize the industrial structure to reverse their disadvantages in agricultural development and promote economic growth through industrial structure upgrading.
Finally，the construction method of the Middle Route Project，which utilizes terrain for gravity flow to reduce water delivery costs，has important demonstration significance. However，this may lead to non-equilibrium development between the areas on both sides of the canal. Therefore，while promoting water conservancy infrastructure construction，the government should make comprehensive plans，especially for regions with relatively disadvantaged development conditions. Relevant departments should make early layouts，increase investment in supporting facilities，ensure water supply，and prevent the non-equilibrium development. This research aims to provide a reference for the pre-assessment of related engineering projects，serve the goal of common prosperity in the era，and contribute to regional coordinated development.

Under the economic downturn，flexible employment has quickly become a “reservoir” to absorb the labor force and a “relief valve” to ease unemployment. According to the data released by the National Bureau of Statistics，the overall scale of flexible employment in China reaches about 200 million in 2020. College graduates become the main force of flexible employment based on the “China Flexible Employment Development Report （2022）”，the proportion of enterprises using flexible employment reached 61% in 2021. Flexible employment becomes the mainstream employment form. Therefore，from the perspective of income distribution，can flexible employment reduce the income inequality among different occupations，narrow the income gap and promote common prosperity？
Based on the panel data of the China Labor-force Dynamics Survey in 2014 and 2016，this paper examines the impact of flexible employment on income inequality and its mechanism by using the analysis method of the RIF （Recentered Influence Function） grouped treatment effect model. The results show that flexible employment can reduce the overall income inequality and promote common prosperity. The analysis by urban and rural areas indicates that flexible employment mainly narrows the overall income gap by reducing income inequality in rural areas and the income gap between urban and rural areas. After decomposing the influencing factors of income inequality among flexible employees，it is found that the reduced income gap of flexible employment in rural areas can be partly explained by the differences in workers’human capital characteristics，while the income inequality caused by flexible employment in urban areas cannot be explained by market factors. The results of the heterogeneity analysis show that flexible employment has a greater impact on low - and middle - income groups，men，and high - skilled workers in rural areas. After a series of robustness tests on the definition of flexible employment，the division of urban and rural areas，and the measurement indicators of inequality，the above conclusions remain robust. The mechanism analysis shows that the alleviation of income inequality in rural areas is because flexible employment，as a form of employment with higher income than agriculture，enables low - skilled workers engaged in agriculture to significantly increase their income after switching to flexible employment，thus reducing the income inequality within rural areas. However，the income of flexible employment is not higher than that of other non-agricultural employment.
According to the research conclusions of this paper，the following policy implications can be drawn：First，flexible employment plays a role in reducing overall income inequality，mainly reducing the inequality within rural areas and the income gap between urban and rural areas. Flexible employment improves inequality through three mechanisms：First，occupational conversion. The income of flexible employment is significantly higher than that of agriculture，and low - skilled workers can achieve an income leap through occupational conversion. Second，human capital screening. High-skilled individuals are more likely to enter the flexible employment market，and their income premium narrows the internal gap in rural areas. Third，social network diffusion. Successful experiences drive the income increase of surrounding groups through the demonstration effect. In urban areas，flexible employment is squeezed by the institutional segmentation of the labor market and market exclusion，and flexible employees are mostly concentrated in low-skilled industries. This urban-rural difference highlights the complexity of policy design. Therefore，rural areas need to strengthen the inclusiveness of flexible employment，and urban areas need to break down the institutional barriers for flexible employees to integrate into the city. Future policies should establish an urban-rural coordination mechanism. For example，through household registration reform，promote the flow of high-skilled workers from rural areas to urban formal sectors，and at the same time，accelerate the pace of covering flexible employment groups in the urban social security system.
Second，flexible employment can be an important path for inclusive income growth in rural areas. It helps workers with employment difficulties in rural areas increase their income and reduce income inequality. Although flexible employment does not have an absolute income advantage compared with other non-agricultural employment，for rural areas lacking nonagricultural employment opportunities，its low-threshold feature makes it an employment option for farmers with limited resources，with a relative income advantage，and it becomes an important choice for rural residents to get out of poverty and increase their income. It is recommended to construct a rural policy system of “platform empowerment-skill improvement”：First，deepen the integration of the platform economy and rural industries. The government can set up special funds for the development of the rural platform economy to support the construction of rural e-commerce platforms，encourage platform enterprises to cooperate with rural cooperatives and farmers，expand the sales channels of agricultural products，and create flexible employment positions such as agricultural product packaging，online customer service，and logistics distribution for rural labor force. Second，establish a hierarchical and classified skill training mechanism. Carry out platform-employment skill training for rural labor force，and cooperate with professional training institutions to enhance the ability of rural residents to participate in flexible employment. By creating more flexible employment positions，help the disadvantaged employment groups in the labor market transfer from agriculture，and overall increase the income level of rural areas and reduce the urban-rural income gap.
Finally，compared with formal employees，urban flexible employees are obviously at a disadvantage in terms of social security and labor rights protection. To solve this dilemma，it is necessary to construct a policy system of institutional reform-market regulation-social security：First，break down the segmentation of the labor market. The government should further deepen the reform of the household registration system，reduce the institutional barriers to entering the labor market in urban areas，relax the urban household registration conditions，and allow those who have been engaged in flexible employment in the city for a certain number of years and paid social insurance to register for household registration. Second，promote the decoupling of the household registration system from public services，establish a connection mechanism between residence permits and household registration，and achieve equal access to public services such as employment，education，and medical care for flexible employees and local registered residents. Third，innovate the social security model，explore the social security payment mechanism for new employment forms，and include flexible employment in the coverage of work-related injury insurance and endowment insurance. By eliminating institutional barriers and improving the market environment，gradually realize the transition of flexible employees from marginal groups to formal employment，and finally form an inclusive growth pattern.

Under the current strategic goal of high-quality economic development in China，preventing and defusing financial risks and optimizing the capital structure of enterprises have become policy priorities. Against this policy backdrop，the issue of enterprise leverage adjustment has become particularly important. As the main channel for external financing of enterprises，the increasingly intense competitive behavior of commercial banks has a particularly crucial impact on the speed of enterprise leverage adjustment. By deeply exploring the role of bank competition in the dynamic trade-off process，this study aims to reveal the allocation mechanism of bank credit resources under conditions of information asymmetry and policy changes. It also provides theoretical basis and practical guidance for the optimal allocation of financial resources，efficient leverage adjustment of enterprises，and policy formulation.
This study utilizes relatively exogenous information on commercial bank branches. Starting from the perspective of the geographical clustering distribution characteristics of branches，combined with the competitive behavior characteristics of commercial bank branches，a more economically meaningful commercial bank competition index is constructed. The competition level faced by enterprises is depicted from the perspective of the geographical clustering distribution of commercial bank branches. The impact of this competition on the speed of enterprise leverage adjustment and its mechanism are empirically tested. The study finds that intensified competition among commercial banks leads to a slower adjustment speed of leverage for listed companies，and this effect is particularly significant for companies with insufficient financing. Although the deleveraging policy helps enterprises approach the optimal leverage level more quickly，it also indirectly slows down the leverage adjustment speed by intensifying competition among commercial banks. This indicates that the deleveraging policy further amplifies this negative impact through the path of commercial bank competition. Further tests reveal that intensified competition among commercial banks worsens the external financing constraints of enterprises，thereby increasing the cost of leverage adjustment and slowing down the adjustment speed. Bank competition not only increases the financing of overleveraged enterprises but also reduces the actual leverage level of under-leveraged enterprises，thereby hindering their approach to the optimal leverage level. Moreover，the implementation of the deleveraging policy has also exacerbated this negative impact to a certain extent. Additionally，we find that the information cost of enterprises is also an important factor affecting the speed of leverage adjustment. The results of heterogeneity analysis show that the signaling role of commercial credit weakens in an environment of intense bank competition，thereby increasing information costs. However，the positive information in the annual report text sentiment and upward earnings adjustment can alleviate the negative impact of bank competition on the speed of leverage adjustment. A higher degree of marketization corresponds to the “winner’s curse” stage of bank competition，which increases the information acquisition cost of enterprises and hinders their approach to the optimal leverage level. Moreover，in the context of intensified bank competition，the leverage adjustment speed of private enterprises is more severely affected. This study reveals the complex relationship between bank competition，the speed of enterprise leverage adjustment，and information costs.
In the current context of intensified bank competition，the problem of information asymmetry between banks and enterprises remains a core bottleneck restricting the efficiency of China’s credit market. Based on the research conclusions of this study，policy recommendations are proposed from four levels：banks，enterprises，regulatory authorities，and policies. This study not only provides new empirical evidence on the credit behavior between banks and enterprises and its impact on leverage adjustment under the background of intensified bank competition，but also offers important policy references for optimizing the allocation efficiency of financial resources in China’s market and improving the quality of bank-enterprise credit.

Innovation is the wellspring of motivation for driving the sustainable development of the economy. Since the implementation of the reform and opening-up policy，our country has fully utilized the comparative advantage of relatively low labor costs，actively participated in international division of labor，and achieved remarkable development accomplishments that have drawn worldwide attention. However，as China enters a new stage of development，both its own endowment structure and the international environment it faces have undergone tremendous changes. Against the backdrop of an external environment fraught with uncertainties，giving full play to the advantages of China’s extremely large market size and the potential of domestic demand，and accelerating the establishment of a new development pattern featuring a domestic economic cycle as the mainstay and a mutually reinforcing relationship between domestic and international economic cycles has become an important measure for China’s high-quality development during the 14th Five-Year Plan period. The issue this article intends to focus on is whether the shift from an international economic cycle to an economic dual cycle with a domestic economic cycle as the mainstay will be conducive to the enhancement of China’s technological innovation capabilities.
Under the domestic and international double cycle system，it has important theoretical significance and practical value to analyze the influence of participating in domestic and international division of labor on technological innovation. Based on the data of prefecturelevel cities in China from 2003 to 2019，this paper explores the impact of regional participation in international division of labor and domestic division of labor on technological innovation，and draws the following conclusions：First，the improvement of the level of international division of labor participation of various regions in our country has obviously hindered the technological innovation of the region. On the contrary，participation in the improvement of domestic analysis level has significantly improved the technological innovation capacity of the region；Secondly，the higher the labor productivity of a region，the more difficult it is to be locked in the low-end position of the global value chain division of labor，and the easier it is to climb to both ends of the “smile curve”. In addition，the promotion effect of participating in the domestic division of labor on the improvement of scientific and technological innovation ability is more obvious. Finally，participation in international division of labor and domestic division of labor has an impact on scientific and technological innovation ability mainly through two channels：human capital accumulation and scientific and technological activities. The conclusion of this paper provides the necessary policy basis and theoretical support for China’s implementation of innovation-driven development strategy under the background of international and domestic double cycles.