1."Climate change disclosure and stock price informativeness: Evidence from China", with Feng Zhao (BTBU) and He Xiao (UIC), Online at Applied Economics Letters

• Abstract: This study examines whether and how corporate climate change disclosure in the Management Discussion and Analysis section of annual reports affects its stock price informativeness. The empirical findings of the study suggest that firm climate change disclosure could significantly increase stock price informativeness by reducing stock price synchronicity. Further channel tests suggest that corporate climate change disclosure significantly increases stock price informativeness through higher media attention, larger institutional ownership percentages, and more corporate site visits. Further analysis shows that the positive impact of climate changes exposure on stock price informativeness is more pronounced for more readable and negative annual reports. Finally, we find that opportunity shock information within the MD&A section is an important component of climate change disclosure. 

1. The Role of Political Connections in Firms' Biodiversity Exposure: Evidence from China(In submission) 

• Abstract:This paper employs a text analysis-based method to construct a new set of measures for assessing the corporate-level biodiversity exposure (BDE), biodiversity opportunity & risk exposure (BORE), and biodiversity regulatory exposure (BRE) of Chinese listed companies. We investigate the impact of political connections (PC) on BDE, BORE, and BRE, finding that political connections positively influence BDE and BORE but have no effect on BRE. In further analysis, we discuss the heterogeneity of government subsidies and ownership. By linking PC to BDE, our study Captures the substantial variations in actual and perceived biodiversity among firms and over time, providing insights into the factors influencing corporate biodiversity exposure in developing countries.

2.Environmental protection tax law and firm rent-seeking (In submission), with Yuan Qiu(GUFS) and Chunlan Zhang(SUFE)

• Abstract: China's environmental protection tax law has realized the change from environmental protection fee to environmental protection tax, which not only affects the regional environmental performance, but also changes the economic behavior of enterprises. Whether more regulated tax collection will reduce corporate rent-seeking is the focus of this paper. Using the data of listed enterprises in China, this paper empirically finds that China's environmental protection tax law reduces the rent-seeking behavior of enterprises. In the cross-sectional heterogeneity analysis, firms without political resources are more significantly affected by policies, such as non-state-owned enterprises, firms without political connections, and firms with distant regulatory distances. Second, companies with less incentive to avoid tax and higher tax burden, companies located in less public environmental concern, and companies facing higher financing constraints are more significantly affected by the policy. In further research, we explore the economic effects of environmental tax laws, which improve public awareness and corporate ESG performance, but reduce environmental and green investment. At the same time, corporate rent-seeking will bring tax incentives, but it will not significantly change the corporate tax burden. In the end, the benchmark passes a series of robustness tests. This study provides useful experience for policy makers.

3. The Dark Side of Rhetorical Nationalism: Rhetorical Nationalism and Stock Price Synchronicity(In submission), with  Tianquan Jin(JNU), Yingying Wu (JNU) and Ming Lu(JNU)

• Abstract: This paper investigates how rhetorical nationalism impacts financial market informativeness. Using machine learning techniques, we developed a rhetoric nationalism indicator at the firm level and found that stock price synchronicity increases with excessive rhetoric nationalism, supporting the argument that management tends to use rhetorical nationalism to obscure opportunistic behavior. The underlying mechanism is that excessive use of rhetorical nationalism exacerbates information asymmetry between the company and stakeholders, and reduces the incorporation of company-specific information into investor decisions. The masking effect of rhetorical nationalism is amplified when the company enjoys greater tax benefits, whereas more specific information from the company helps mitigate the negative effects of rhetorical nationalism. Interestingly, despite rhetorical nationalism reducing information efficiency in financial markets, it also increases the company’s core business revenue and market competitiveness in the next period, suggesting that managers might sacrifice capital market gains for product market gains.

4. Pricing Firms’ Rhetoric of Nationalism: Empirical Evidence from Audit Fees(In submission), with  Tianquan Jin(JNU), and Ming Lu(JNU)

• Abstract: An increasing number of studies suggest that firms incorporate nationalism into their strategies. However, research on its influence on corporate decisions and market behavior through rhetorical means remains limited, particularly in audits. Using data from 2010 to 2022, this study investigates how rhetorical nationalism affects audit pricing in Chinese listed firms. The findings reveal that rhetorical nationalism significantly reduces audit fees by mitigating financial, reputational, and control risks. This effect is more pronounced under higher uncertainty and information asymmetry. Furthermore, rhetorical nationalism enhances audit quality, providing novel insights into its economic implications in the audit context.

5. From Rhetoric to Action: Does Rhetorical Nationalism Drive Corporations to Act for Benevolence?(In submission), with  Tianquan Jin(JNU)

• Abstract: With the rise of far-right movements, escalating trade tensions, and de-globalization, nationalism has become increasingly prominent in the global political landscape. In this context, more Chinese companies are incorporating nationalist themes into their strategies, using nationalist rhetoric to signal alignment with national interests and values. This study investigates the impact of rhetorical nationalism on the environmental, social, and governance (ESG) performance of Chinese A-share listed firms. Using econometric methods, such as multiple regression, and a sample of Chinese listed companies, the research explores the relationship between rhetorical nationalism and ESG performance, examining the moderating roles of ownership structure and management’s military experience. The findings reveal a positive relationship between rhetorical nationalism and improved ESG performance, particularly in state-owned enterprises and firms led by executives with military backgrounds. Drawing on resource dependence theory and social norms theory, the study identifies value leadership, resource expansion, and behavioral regulation as the mechanisms driving this relationship. The practical implications suggest that rhetorical nationalism can encourage substantive corporate actions and foster positive development rather than being merely a strategic tool for market manipulation. Moderately incorporating nationalist themes can help enterprises maximize ESG performance and achieve sustainable development. Moreover, it underscores the role of state-owned enterprises and military-experienced entrepreneurs in aligning cultural identity with market strategies. On a broader scale, the findings emphasize the importance of integrating national cultural identity and values into business strategies, influencing social and environmental outcomes significantly. This research contributes to the literature on rhetorical nationalism’s long-term effects, offering new insights into the role of informal institutions in shaping corporate sustainability practices in China.

6. Frim climate change perception and strategic reform (R&R), with Feng Zhao(BTBU) and Qian Chen(BTBU)

• Abstract: This paper provides an in-depth study of the impact of corporate climate change exposure on the corporate strategy change. We use data from Chinese A-share listed companies from 2007 to 2021 and find that climate change exposure has a positive impact on corporate strategy change. The mechanism tests reveal that companies with higher financing constraints, stronger risk-taking capabilities, and deeper influence of Confucian culture tend to undergo more strategic transformations in the face of higher climate change risks. Furthermore, the heterogeneity tests indicate that state-owned enterprises, those with higher ESG scores or more positive management tone exhibit more pronounced effects of climate change on their strategic change. Finally, our further analysis highlights that climate change opportunities play a more substantial role in influencing corporate strategy change, and climate change exposure is also positively related to the firms’ green innovation.

7. 中国外汇衍生品监管有效性研究：框架、指标与效果——基于金融监管机构调研数据的SEM模型分析 (In submission), with Feng Zhao(BTBU) and Guangming Ma(CUFE)

• English title: Research on the Effectiveness of Foreign Exchange Derivatives Regulation in China: Framework, Indicators and Effectiveness - SEM Model Analysis Based on Research Data from Financial Regulators

• 摘要：随着“一带一路”倡议的不断深化和跨境投资的逐步增加，中国外汇衍生品市场得以飞速发展。然而，外汇衍生品所具有的高杠杆性、高风险性和高复杂性特征也给衍生品市场稳定和金融监管带来巨大挑战。当前中国的外汇衍生品监管是否有效？为回答这一问题，本文搭建了中国外汇衍生品监管有效性自评估框架，并设计了包含6大维度、28个核心指标的评价体系，利用284份金融监管机构的调查数据，对外汇衍生品监管有效性开展SEM量化评价。研究发现：在总体上，中国外汇衍生品监管是有效的，不仅在宏观层面提升了外汇衍生品市场监管水平，而且在微观层面增强了参与主体的衍生品交易水平和风控能力。分维度检验结果显示，服务实体经济能力、规范业务操作流程和规范交易动机这三个维度能显著增强中国外汇衍生品监管效果，但完善交易信息披露机制和增强风险管理水平并未能发挥其应有的作用。此外，本文还通过单因子结构效度分析详细挖掘了每个问项的具体作用。本研究为评估当前中国外汇衍生品监管的有效性提供了框架指引和经验参考，对于加强和完善现代金融监管、守住不发生系统性风险底线、促进外汇衍生品市场健康发展也具有重要的理论和实践价值。 

• Abstract: With the deepening of the "Belt and Road" initiative and the gradual increase of cross-border investment, China's foreign exchange derivatives market has developed rapidly. However, the high leverage, high risk and high complexity of foreign exchange derivatives have brought great challenges to the stability of the derivatives market and financial regulation. Is the current regulation of foreign exchange derivatives in China effective? To answer this question, this paper builds a self-assessment framework for the effectiveness of China's foreign exchange derivatives regulation, and designs an evaluation system containing 6 dimensions and 28 core indicators, and carries out a quantitative SEM evaluation of the effectiveness of foreign exchange derivatives regulation using 284 survey data from financial regulators. The study finds that, in general, China's foreign exchange derivatives regulation is effective, not only enhancing the level of foreign exchange derivatives market regulation at the macro level, but also enhancing the level of derivatives trading and risk control ability of participating entities at the micro level. The results of the sub-dimensional test show that the three dimensions of ability to serve the real economy, standardised business operation process and standardised trading motives can significantly enhance the effectiveness of China's foreign exchange derivatives regulation, but the improvement of the trading information disclosure mechanism and the enhancement of the level of risk management have not been able to play their due roles. In addition, this paper also explores the specific role of each question in detail through one-way structural validity analysis. This study provides framework guidelines and empirical references for assessing the effectiveness of the current foreign exchange derivatives regulation in China, and also has important theoretical and practical value for strengthening and improving modern financial regulation, guarding the bottom line of not incurring systemic risks, and promoting the healthy development of the foreign exchange derivatives market.

8. Navigating Through Uncertainty: The Role of Digital Transformation in Shaping Managerial Perception of Uncertainty (In submission), with Tianquan Jin(JNU), Yingying Wu (JNU) and Ming Lu(JNU)

• Abstract: We investigate the impact of corporate digital transformation on the managerial perception of uncertainty. By utilizing a sample of Chinese-listed companies, our findings indicate that digital transformation significantly alleviates the managerial perception of uncertainty. Mechanism analysis reveals that digital transformation reduces such perception by diminishing information asymmetry and enhancing core competitiveness. Our study introduces a novel approach to addressing the managerial perception of uncertainty within the digital economy, offering policy insights that may enhance market confidence and expectations.

9. Green Vision, Steady Minds: The Impact of Corporate ESG Performance on Managerial Perception of Uncertainty (In submission), with Tianquan Jin(JNU), Yingying Wu (JNU) and Ming Lu(JNU)

• Abstract: The growing managerial perceptions of uncertainty greatly hinder the long-term development of businesses and the stability of the macroeconomy. Our study examines the impact of corporate ESG performance on managerial perceptions of uncertainty by analyzing data from Chinese A-share listed companies from 2010 to 2021. We find that corporate ESG performance significantly decreases managerial perceptions of uncertainty, particularly in the Environmental (E) and Social (S) dimensions. Mechanism tests indicate that corporate ESG performance helps to alleviate information asymmetry between the company and its stakeholders, leading to a reduction in managerial perceptions of uncertainty. Our findings also provide a new strategy for companies to address their uncertainty and enhance confidence in achieving long-term development goals in the context of green transformation.

10. Standards for SDGs: Can Logistics Service Standardisation Improve Corporate ESG Performance?(In submission), with Tianquan Jin(JNU), Ming Lu(JNU), and Yeliang Xin(JNU)

• Abstract: Using the Logistics Service Standardization (LSS) pilot policy as a natural experiment, our study examines the impact of LSS on corporate ESG performance. Analysing data from Chinese listed firms from 2009 to 2022, we find that firms located in LSS pilot cities demonstrate superior ESG performance compared to those in non-LSS cities. Our results remain robust after addressing endogeneity concerns. The underlying mechanism suggests that LSS reforms enhance green innovation and productivity of local firms. Furthermore, this effect is more pronounced for firms with larger international market shares, operating in less marketized and heavily polluting industries. Our study contributes a novel perspective to the discourse on logistics and finance by highlighting the broader impact of LSS reforms on corporate ethical behaviour.

11. “Reservoir of goodwill” or “Shield”: Does corporate reputation influence auditor decisions? (In submission), with Haoyuan Song(BTBU), and Xiangyu Liu(BTBU)

• Abstract: This study utilizes a sample of non-financial firms listed on China's A-share market from 2010 to 2022 to empirically examine the impact of corporate reputation on auditor decision-making. This paper reveals that firms with higher reputations are more likely to receive unqualified audit opinions and higher audit fees from auditors, supporting the "Shield" theory. These results still robust after various sensitivity checks. Further analysis of the channels suggests that corporate reputation influences auditor decision-making primarily through earnings management mechanisms and reputation protection mechanisms. The extended analysis reveals that the impact of corporate reputation on auditor decision-making is more significant in non-state-owned enterprises, firms with lower degrees of marketization, and companies not subject to short-selling. This study enriches the literature on the influence of corporate reputation on auditor decisions and provides empirical evidence for firms to maintain and enhance their own reputations.

1. Environmental protection tax law and firm level climate change exposure: Evidence from China, with Feng Zhao(BTBU), Lei Li(PolyU) and  Cheng(Colin) Zeng(PolyU)

2. Biodiversity exposure and cross-regional investment, with Yuan Qiu(GUFS) and Weifeng Zhong(ZUEL)

3. Climate change exposure and complexity of narrative disclosure, with Tingting Zhang(HHU)

4. Cybersecurity exposure and corporate stock price informativeness, with Feng Zhao(BTBU)

5. J. Wang*, 2024. Cybersecurity exposure and bond market pricing

6. J. Wang*, 2024. Cybersecurity exposure and Cash Holdings

1. Sautner, Z., L. van Lent, G. Vilkov, and R. Zhang,  2023. Climate Change Analysts(Research Asistant).

1. J. Wang,  2023. Firm-level Climate Policy Uncertainty Measurement (Chinese firm data).

2. J. Wang,  2023 Firm-level Cyber Security exposure and Gov-level Cyber Security Concernst( Chinese firm data)

3. J. Wang,  2023 Database of Local Political Elites in China (2000-2020)

4.J, Wang, J. You, 2024 Database of unfinished Projects in China

5. J, Wang, F. Zhao, F. Zhao*, 2024. Firm-level Low-carbon Transformation Index (Chinese firm data).

6.J, Wang, 2024. Firm-level Political Risk Measurement (Chinese firm data) Replicated data

• Wang, L. (2023). Mitigating firm-level political risk in China: the role of multiple large shareholders. Economics Letters, 222, 110960.