Risk and Financial Management

Analysis of the Impact of Science, Technology and Innovation on Economic Growth in the Pearl River West Economic Belt

Yongqi Chen — Wed, 25 Dec 2024 00:00:00 +0800

Science and technology innovation has an important impact on economic growth. This paper summarises the relevant theories of domestic and foreign authors on the analysis of the impact of science and technology innovation on economic growth, and combines them with the reality of science and technology innovation on economic growth in the Pearl River West Economic Belt, and argues that there is a certain amount of science and technology innovation outputs in the Pearl River West Economic Belt, which, in turn, promotes economic growth. This paper empirically analyses the impact of STI on the economic growth of the Pearl River-West River Economic Belt by using the statistical data from 2000 to 2020 of the 11 major cities involved in the belt (i.e., Guangzhou, Foshan, Zhaoqing, Yunfu, Nanning, Liuzhou, Wuzhou, Guigang, Baise, Laibin and Chongzuo). The results show that the impact of S&T innovation on the economic growth of the Pearl River-West River Economic Belt is positively correlated, indicating that S&T innovation can promote the economic growth of the Pearl River-West River Economic Belt. And this effect is robust.

Formalism or Substantialism: ESG and Stock Crash Risk

Ziping Jin — Thu, 26 Dec 2024 00:00:00 +0800

We use a specifically chosen data set of Chinese A-share listed businesses from 2009 to 2022 to investigate the complex relationship between stock crash risk and company Environmental, Social, and Governance (ESG) performance. Based on empirical investigation, a complex U-shaped dynamic is revealed, in which early advances in ESG performance work as a protective factor against stock collapse risk initially, but with ESG performing better, this impact reverses and becomes an enhancer of stock crash risk. We carry out a thorough mediation study to elucidate the underlying mechanisms, revealing the critical roles that business reputation and analyst scrutiny play in mediating the U-shaped link between stock crash risk and ESG. Furthermore, we explore possible moderating factors and find that the adoption of ESG in state-owned organizations and businesses operating in less marketized environments may be motivated by instrumental factors, which would ultimately increase the likelihood of a stock market crash. Thus, by providing a complex and dialectical approach that unites disparate points of view, our work adds to the specialist conversation on the economic consequences of ESG.