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This study explores the impact mechanism of corporate digital transformation (CDT) on the quality of accounting information.

Samples of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2020 are used as a research sample. The empirical analysis is based on the ordinary least squares regression model, and mediation and moderation effect models were used in further analysis.

This study finds that CDT enhances accounting information quality by alleviating the agency problem. This positive effect is more significant among firms that exhibit less media coverage, have low industry competition and are not subject to cyber-attack.

This study extends the economic consequences of CDT and enriches the literature on the factors that affect accounting information quality. Further, this study's findings guide the government to actively promote CDT, facilitate the digital upgrading of industries and improve accounting information quality and efficiency in capital markets.

Corporate digital transformation (CDT) has challenged traditional tax administration systems. This study examines the impact of CDT on tax avoidance behavior and tests whether tax authorities can identify this behavior.

Using data on listed companies on the Shanghai and Shenzhen Stock Exchanges from 2008 to 2020, this study applies the Heckman two-stage and cross-section models.

The results show that the higher the degree of CDT, the more aggressive the tax avoidance behavior. The CDT's impact on corporate tax avoidance is more significant under strong government tax efforts.

This study expands research on the economic consequences of CDT and the factors influencing corporate tax avoidance behavior. Moreover, it has important implications for governments to monitor tax avoidance behavior under the CDT, improve digital tax systems, and pay more attention to the tax administration of digital assets.

This study examines whether recruitment of local managers helps foreign venture capital (VC) firms mitigate the liability of foreignness measured by cultural differences and improves their performance in relationship-based emerging markets such as China.

From a data set comprising 1,939 Chinese portfolio companies with first-round investments by 282 foreign lead VC firms during 2000–2015, the study tracks the outcome of each investment until the end of 2018 and collects the background information of partners of lead VC firms. A survival analysis using the Cox hazard model is conducted.

Cultural differences of the foreign VC's home country, when compared to China, positively influence the success of VC firms. Recruitment of local managers reinforces this positive influence. The influence of local manager recruitment is more pronounced for VC firms with politically connected local managers, during politically uncertain periods, in industries supported by the government, in provinces with high government intervention and in VC firms with decentralized decision rights given to local managers.

This research complements the international business literature on the advantages of hiring local managers and identifies the channels through which local managers help foreign VC firms obtain relationship-based resources. The findings also have practical implications for those foreign investors who intend to enter into relationship-based emerging markets.

The rising uncertainties in the macroeconomic environment exacerbate the challenges firms face in the export market. This study aims to explore which strategy is suitable for export enterprises to develop sustainably under COVID-19.

Based on the sample data of China’s A-stock listed manufacturing firms from 2010 to 2020, this study applies a survival analysis method to explore the impact of strategic flexibility on export firm survival. Furthermore, this study uses the difference-in-difference model to test the relationship between strategic flexibility and firms’ profits in the context of the pandemic.

The results show that strategic flexibility can increase firms’ survival time, improving dynamic production and innovation capabilities, which is favorable for their sustainable development. Meanwhile, after the spread of COVID-19, firms with strategic flexibility have higher profits than those without. This influence mechanism mainly involves exploring new markets that can improve the company revenue and the coordination capabilities of the supply chain; this reduces corporate costs.

This study expands relevant research on the factors affecting the survival of export enterprises and supplements research on the economic consequences of firms’ strategic flexibility; this also enriches the dynamic capability theory. Additionally, it provides important implications for firms to enhance strategic flexibility and recommends government implementation of policies that encourage the domestic sales of commodities originally produced for exports under COVID-19.

Emerging markets are characterized by weak institutions and strong relationships, which give rise to different market characteristics in supply chain relationships. This study investigates the impact of customer concentration on suppliers' real earnings management.

Based on China's relationship-based transaction, this study selects 2007–2019 Shenzhen and Shanghai Stock Exchange A-share manufacturing listed companies as the research samples. The empirical analysis is derived from the ordinary least square regression model with industry and year fixed effects, and cross-sectional analysis is used for further analysis.

It is found that the higher the degree of customer concentration, the more likely a company is to engage in real earnings management mainly through discretionary expenses instead of accrual-based earnings management. Further research shows that when suppliers provide customers with higher commercial credit and make more relationship-specific investments, and when major customers are also major suppliers, the effect of customer concentration on real earnings management is more significant. It can be seen from the results that high customer concentration is beneficial for suppliers to cooperate with major customers in emerging markets.

This research expands the relationship between customer relationship-based transaction and earnings management from the perspective of collaboration. These conclusions are of great significance for market regulators to reform information disclosure related to customers and for participants to pay attention to the composition of major customers of the company.

In addition to leading a new tide of global financial technology, blockchain delivers advantages in terms of risk control compared to traditional financial systems. By exploring the relationship between blockchain technology and macroeconomic uncertainty, this study aims to identify the hedge risk attribute of blockchain technology.

From a data set comprising 6,323 Chinese firms with A-shares listed on the Shenzhen and Shanghai Stock Exchanges in 2015–2018, the authors obtain the use of blockchain technology by listed companies on the basis of annual reports, news reports, search engines and prospectuses. These documents are then subjected to text analyses based on computer technology. Cross-sectional and propensity score matching analyses are used to ensure robustness.

The empirical results show that with an increase in macroeconomic uncertainty, blockchain technology can potentially enable companies to reduce their systemic risks and enhance their investment efficiency.

This study expands the literature on the application of blockchain technology, offers references for enterprises to address future risks based on specific macroeconomically uncertain environments and provides guidelines for governments to maintain financial market stability.

Tax risks are common in China but often ignored by enterprises. Determining how to measure tax risks and effectively identify and control influencing factors is the key to the sustainable development of enterprises. This study aims to explore the key factors affecting corporate tax risks and analyze influencing factors from external and internal perspectives.

After selecting a data set comprising 11,503 firm-year observations of Chinese firms in the Shanghai and Shenzhen Stock Exchanges from 2008–2017, this study applied a panel regression model to identify the factors’ impact.

The results indicate that the more standardized the institutional environment and stronger the tax supervision, the lower the tax risks. Taking into account the internal factors of a firm, private companies with political connections have lower tax risks than those without.

This study enriches the literature on the factors affecting tax risks. The conclusion provides significant insights for enterprises to effectively control tax risks and maintain sustainability. The research findings also provide a new perspective for the government to guard against corporate risks and maintain the stable development of the economy.

The purpose of this study was to examine whether the use of financial derivatives by business enterprises can avoid taxes and whether tax authorities can detect and effectively enforce measures regarding this emerging tax avoidance method.

Using panel data from the Shanghai and Shenzhen Stock Exchange listed companies from 2008 to 2019, this study used the Heckman self-selection two-stage model and a cross-sectional analysis to test a total of 22,578 samples. Moreover, propensity score matching (PSM), instrumental variable and Heckman MLE methods were conducted in the robustness test.

The results showed that enterprises could use financial derivatives to avoid taxation. The greater the tax effort is, the more obvious the effect of the company's use of financial derivatives for tax avoidance, which proves challenging for tax authorities to identify and manage.

This study expands on research on corporate tax avoidance and provides a new perspective for the study of financial derivatives. Moreover, it improves relevant research in the field of tax regulation, offering practical guidance for tax authorities to govern the use of financial instruments to prevent potential risks effectively.

Tax risk refers to the uncertainty of future corporate taxation. Tax reform is a key issue in major current tax system adjustments that seriously affect a firm's tax risk. In response to changes in the economic environment, many countries are actively executing tax reform. Long-term reforms implemented for a smooth transition may instead increase corporate risk. This study examines the relationship among tax risk, tax reform and investment timing.

Selecting the Shanghai Stock Exchange and Shenzhen Stock Exchange A-share listed companies' panel data from 2008 to 2017, the paper used survival analysis and the propensity score matching-difference in difference models.

The results show that a higher corporate tax risk results in more deferred investments, which are further examined using the latest Chinese value-added tax reform as a natural experiment.

The conclusion serves as an important reference for governments to balance reform time and to support enterprises in effectively identifying and managing tax risk under tax reform.

Following the growing adoption of social media, many entrepreneurs are launching personal social media channels. This study focuses on the effect of entrepreneurs' shared information on We Media platforms on the value relevance of their earnings.

Using entrepreneurs' We Media data collected from A-share-listed companies on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2018, this study investigates the effect of the data on the value relevance of earnings using the modified Ohlson model. The authors applied textual analysis to retrieve entrepreneurial We Media data acquired manually from Weibo.

We Media platforms can increase the value relevance of earnings. Entrepreneurs can enhance investor trust by establishing social ties with investors. Investors are more likely to recognize earnings information publicized by enterprises, owing to internal consistency. Particularly, value relevance improves significantly with more personal information being posted and more “likes” being acquired on entrepreneurs' We Media accounts. This positive effect is more obvious in privately owned and highly marketized regions.

The findings extend the research on the economic consequences of We Media as an important information channel, enrich the research on the social media posting behavior of entrepreneurs and provide a reference for enterprises to instill trust using new information disclosure methods and for governments to establish a safe internet environment to promote the sustainable development of the capital market.