Table of Content

15 November 2025, Volume 0 Issue 11

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Theoretical Economics

Data Security and Corporate Digitalization: From the Perspective of Incomplete Contracts

Nie Hui-hua, Wang Yi-zhao

2025, 0(11):  3-17. 

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Digitalization has become an essential option for enterprises in their production and operations today, while data security constrains the digitalization process. Enterprise digitalization can be divided into two stages: the application of digital technologies and the integration of digital technologies with business processes. The digitalization pathways include three models: internal development, partial outsourcing, and full outsourcing. Moreover, data breaches are difficult for third parties to observe, rendering data security inherently unenforceable. Based on the above characteristics and the theoretical framework of incomplete contracts, it is derived that when data security costs are low, the optimal digitalization path is full outsourcing; when specialized advantages are low, the optimal digitalization path is internal development; and when cross-organizational adaptation costs are low, the optimal digitalization path is partial outsourcing. It is evident that the path with the highest digitalization level is not necessarily the optimal digitalization path for enterprises. Further analysis reveals that financing constraints may alter the optimal digitalization path, where full outsourcing becomes the optimal choice under severe financing constraints. The risk of digitalization failure does not undermine the main conclusions. Therefore, enterprises should prioritize data security governance during the digitalization process to avoid potential data security issues, while governments should improve relevant laws and regulations to promote the integration of digital technology and business processes in enterprises.

Intellectual Property Protection, Technology Transfer and Enterprise Sustainable Innovation

Ye Yun-ling, Shan Hang, Yu Hai-chao

2025, 0(11):  18-30. 

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The construction of the national intellectual property demonstration cities provides a solid institutional foundation for enterprise sustainable innovation. An empirical study based on the data from Chinese A-share listed companies from 2010 to 2022 and incorporating technology transfer into the analysis framework of intellectual property protection and sustained innovation of enterprises shows that, intellectual property protection has a significant driving effect on both sustained innovation input and output of enterprises, that intellectual property protection can promote sustained innovation in enterprises through technology transfer, and that the impact of intellectual property protection on sustained innovation of enterprises is heterogeneous: the intellectual property protection promotes the sustained innovation of enterprises in the eastern, central, and western regions, but hinders the sustained innovation investment of enterprises in the northeast region; the intellectual property protection helps high-tech enterprises and non-state-owned enterprises to sustain innovation, but is not conducive to the sustained innovation output of non high-tech enterprises. The above conclusion implies that a sound intellectual property protection system should be established as the basis, and an efficient and interconnected technology transfer market should be accelerated. Policies should be classified based on the heterogeneity of the region, the ownership, and the technological attributes of the enterprises, in order to consolidate the policy support system for sustained innovation of the enterprise.

Public Economics & Administration

Whether the Development of the Digital Economy Can Effectively Reduce the Leverage Ratio of Local Governments: Empirical Evidences from 264 Prefecture-Level Cities in China

Yang Fei-hu, Li Yue-chen

2025, 0(11):  31-44. 

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Reducing the leverage ratio of local governments is a crucial measure for preventing and resolving local government debt risks and achieving high-quality economic development. The technology-driven nature of the digital economy offers a novel pathway to lowering this leverage ratio. Based on the panel data from 264 prefecture-level cities in China from 2015 to 2023, this study systematically deconstructs the impact and the mechanisms through which digital economic development influences the local government leverage ratio. The findings reveal that the development of the digital economy exerts a significant, intertemporal inhibitory effect on the leverage ratio, characterized by a dynamic pattern of“initial manifestation in the current year and reinforcement in the subsequent year.”The mechanism analysis indicates that the new type of infrastructure development and the industrial structure upgrading serve as dual mechanism variables, forming a virtuous cycle mechanism: “digital infrastructure investment—industrial ecosystem cultivation—fiscal revenue growth—reduction in local government leverage ratio.”The heterogeneity analysis demonstrates that this effect is more pronounced in first-, second-, and third-tier cities, cities with high levels of digital economic development, cities with low fiscal transparency, and cities with high government fiscal expenditure. Consequently, it is essential to promote the synergistic development of the digital economy and fiscal sustainability. Efforts should focus on enhancing fiscal revenue-generating capacity through digital industry chain construction, fostering regional coordination to alleviate fiscal risks, and establishing a “digital governance-fiscal health”system to improve the long-term mechanisms for reducing the local government leverage ratio.

On the Logical Mechanism, Practical Dilemmas and Path Optimization of Taxation Empowering the Development of New Quality Productivity

Wang Ting-ting

2025, 0(11):  45-58. 

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New quality productivity is the core driving force for China to promote high-quality economic development. As a key means for China to implement macroeconomic regulation and economic governance, taxation plays a vital role in promoting the development of new quality productivity. From the perspective of the logical mechanism, the tax system mainly relies on the interactive response mechanism of production, the guiding incentive mechanism of resource allocation, and the balance and coordination mechanism of interest relations to empower the development of new quality productivity. At present, China has made great progress in promoting the development of new quality productivity by continuously improving the tax system, but there are still practical dilemmas such as poor overall responsiveness of tax laws, insufficient supply of tax systems, urgent need to improve the adaptability and to strengthen the guarantee of new quality productivity. Looking beyond the region, some countries have made remarkable achievements in promoting technological breakthroughs in advanced productivity, stimulating innovation vitality, optimizing factor allocation, promoting industrial upgrading, and promoting green development to achieve sustainable development by optimizing the tax system. In the future, China should adopt a multi-pronged approach, insisting on the coordinated progress of tax rule of law innovation and system optimization, insisting on the dual-wheel drive of process incentives and result incentives in the tax system, insisting on the linkage effect of the tax system in enabling factors and enabling industries, and insisting on the organic unity of fairness and efficiency of the tax system, so as to comprehensively enhance the quality and efficiency of the development of new productive forces.

Modern Finance

Bank Financial Technology, Enterprise Cross Period R&D Resource Allocation, and Core Technology Breakthroughs

Wang Hong-jian, Liu Li-wen, Gu Shu-sheng

2025, 0(11):  59-72. 

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Under the traditional credit allocation model, collateral constraints lead to significant fluctuations in enterprise R&D investment, which influence the breakthroughs in their core technologies. Bank financial technology has provided a new paradigm for solving the above-mentioned difficulties by reshaping the traditional logic of credit supply. After verifying the basic conclusion that companies have cross period R&D investments, this study conducts empirical tests to examine the impact of bank fintech on the allocation of cross period R&D resources and breakthroughs in core technologies. The findings show that when a company’s operating income decreases, bank fintech significantly enhances the company’s cross period R&D investment, and this effect is particularly significant in high-tech enterprises. The mechanism analysis reveals that bank financial technology has reconstructed the logic of bank credit supply and pricing by expanding the boundaries of corporate collateral and improving corporate information transparency, thereby enhancing the ability and willingness of enterprises to invest in cross period research and development. Further analysis shows that the promotion effect of bank financial technology on the cross period R&D investment by enterprises is more significant in non-state-owned enterprises, enterprises with lower digital levels, enterprises with better information infrastructure, and enterprises in regions with strong government innovation awareness. The economic consequence analysis shows that bank financial technology can significantly promote the improvement of new quality productivity in enterprises. Based on this, government departments should actively guide banks to fully utilize financial technology, enhance their credit support for the cross period R&D financing of enterprises, bridge the regional digital divide, and consolidate the foundation of the cross period R&D investment for enterprises.

Financial Technology, Policy Uncertainty and Commercial Bank Performance: An ABNK Study Based on Mixed Shocks

Zhao Wei

2025, 0(11):  73-86. 

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By innovatively introducing the mixed shock of fintech, fintech-corporate default risk and fintech-policy uncertainty into the ABNK (Agent-Based New Keynesian) model, this study for the first time quantitatively analyzes the moderating effect of fintech on the relationship between economic policy uncertainty and commercial bank performance within the ABNK framework. The research findings are as follows: Firstly, both single policy uncertainty shock and single default risk shock will reduce bank profits and equity returns, leading to a decline in bank performance; while both single enterprise fintech shock and single bank fintech shock will increase bank profits and equity returns, resulting in an improvement in bank performance. Secondly, the improvement of enterprise fintech is more helpful than the development of bank fintech in alleviating the inhibitory effect of economic policy uncertainty on the performance of commercial banks. Thirdly, the improvement of enterprise fintech can respectively moderate the negative impact of enterprise default risk shock on bank profits and bank equity returns at the 68% level, and simultaneously promote the increase of bank loan returns at the 8% level; correspondingly, developing bank fintech can mitigate the negative impact of economic policy uncertainty on bank profits and equity returns at a level of approximately 44%, while increasing bank loan yields at a level of 30%. Therefore, the government should ensure policy stability and predictability, and commercial banks need to enhance their ability to resist policy uncertainty and accelerate digital transformation to improve risk control efficiency.

Business Administration

Government Digital Economy Development Goals and Corporate Digital Technology Innovation

Wang Hao-ran

2025, 0(11):  87-101. 

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Strengthening government goal guidance and promoting corporate digital technology innovation are important pathways for building a digital China and achieving high-quality economic development. Based on the data from A-share listed companies in China between 2017 and 2023, this paper empirically examines the impact and the underlying mechanisms of government digital economy development goals on corporate digital technology innovation. The results show that government digital economy development goals have a significant impact on corporate digital technology innovation. This effect is achieved mainly through several mechanisms, including increasing the supply of policy-related resources, releasing positive signals regarding digital development, and improving digital infrastructure construction. The heterogeneity analysis reveals that the micro-level innovation effect of government digital economy development goals is more pronounced among the private firms with stronger willingness to respond to government goals, the firms with greater financing restrictions, and the firms that have not yet received government procurement contracts. Meanwhile, firms with scale advantages, operating in high-tech industries, and possessing higher levels of corporate governance are more capable of engaging in digital technology innovation by responding to government digital economy development goals. The analysis of the economic consequences shows that, by promoting corporate digital technology innovation, government digital economy development goals can not only facilitate firms’ digital transformation but also contribute to their high-quality development. Based on this, the government should formulate systematic goals for the development of the digital economy, focus on classification guidance and precise policy implementation, increase the supply of policy resources, optimize the innovation environment, upgrade digital infrastructure, and provide strong support for enterprise digital technology innovation.

Insurance Institutional Investor and Manager Compensation Contract

Gong Ya-lin, Lai Li, Xuan Yu-hao

2025, 0(11):  102-114. 

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With the relaxation of restrictions on insurance capital investments, insurance institutional investors have gradually become key players in China’s capital market. Based on the data from China’s A-share listed companies from 2008 to 2023, this study examines the impact of insurance institutional investors on manager compensation contracts. The findings indicate that in the listed companies with insurance institutional ownership, managers’ excess compensation is significantly reduced, and the sensitivity of compensation to performance is enhanced. Moreover, the constraining effect of insurance institutional investors on managers’ excess compensation is stronger in firms with higher agency costs. Further analysis reveals that there is no significant difference in the compensation governance effect of insurance institutions on the enterprises with different nature of property rights. However, compared with the state-owned insurance institutions, the compensation governance effect of the non-state-owned insurance institutions is more prominent. The above-mentioned conclusions remain robust after the robustness checks by adopting a DID model, the instrumental variable method, appointment of directors, supervisors and senior executives by insurance institutions, as well as other share holding measuring methods. The findings suggest that insurance institutions play a supervisory role in managerial compensation with the long-term attributes of the patient capital, effectively improving the efficiency of compensation contracts. Based on this, the government can establish a long-term investment incentive mechanism for insurance funds and improve the regulatory standardized system. Listed companies can improve their corporate governance structure by introducing insurance institutional investors. Investors can use insurance institutional shareholding targets as decision-making references to optimize investment choices.

Industry & Trade

Has the Construction of Digital Infrastructure Facilitated FDI Inflow in Cities?

Lan Tian, Zhang Zi-yun

2025, 0(11):  115-126. 

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The construction of digital infrastructure, as a significant driver of investment growth in the context of the current digital economy era, holds great importance for China in utilizing foreign capital to maintain stable stock and promote growth. Based on the panel data from Chinese prefecture-level cities and municipalities from 2006 to 2022, this study measures the level of urban digital infrastructure construction by using principal component analysis method, then further investigates the impact and underlying mechanisms of digital infrastructure construction on foreign capital inflows to cities. The results indicate that digital infrastructure construction has significantly promoted foreign capital inflows to cities, and this conclusion remains robust after undergoing endogeneity analysis and other robustness checks. In terms of mechanism, accelerating industrial structure optimization and upgrading, promoting technological innovation, and enhancing financial development are key channels through which digital infrastructure construction facilitates urban foreign capital inflows. The heterogeneity analysis reveals that the promotion effect of digital infrastructure construction is more pronounced for small-and medium-sized cities and is particularly effective in tapping the investment potential of central and western cities. Further analysis indicates that digital infrastructure construction exhibits positive spatial spillover effects on urban foreign capital inflows, although these effects diminish with increasing geographical distance and strengthened trade barriers between administrative regions. Based on these findings, while comprehensively developing digital infrastructure, the government should accelerate industrial structure adjustments, promote collaborative innovation between domestic and foreign enterprises, and strengthen inter-regional coordinated development, thereby providing a more stable and long-term environment for China to utilize foreign capital.

Government Digital Governance and Green Goods Export

Zhu Wei-li, Liu Hong, Li Yan-shan

2025, 0(11):  127-140. 

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At the time of the digital wave and global governance transformation, government digital governance has become the core driving force for promoting a country’s green trade development, which is of great significance for enhancing a country’s trade competitiveness. Based on the panel data from the member countries of the Asia-Pacific Economic Cooperation, this study explores the impact and mechanism of government digital governance on green products exports. The findings show that government digital governance has significantly promoted the export of green products, and this conclusion still holds true after a series of endogeneity and robustness tests. Enhancing information flow efficiency, leading to the expansion of intermediate goods demand, promoting industrial structure upgrading, and improving green technology research and development capabilities are important mechanisms for government digital governance to promote green products exports. The promotion effect of government digital governance on the export of green products is greater in countries with stronger innovation capabilities and smaller digital gaps, while the promotion effect of government digital governance on the export of medium and high-tech and low tech green products is stronger. However, in countries with relatively low environmental regulatory intensity, government digital governance is not conducive to the export of green products. Based on this, the government should follow the trend of digital development, strengthen the value leading role of digital governance, build diversified application scenarios that deeply integrate digital technology and government governance models, and empower the development of green trade with modern governance models.

Modern Accounting

Biodiversity Audit: Theoretical Foundations, Technical Methods and Practical Explorations

Wang Li

2025, 0(11):  141-153. 

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Biodiversity audit is an important tool for assessing the current state of ecological protection and a key means of promoting the implementation of environmental policies and governance. It plays a crucial role in the protection and management of biodiversity resources on the earth. Biodiversity auditing not only helps assess the status of biodiversity conservation but also promotes ecological security, ecological civilization construction, and sustainable development. On the basis of exploring the theoretical foundations of biodiversity auditing and analyzing the application of geography, biology, ecology, computer science and technology in biodiversity auditing, this study proposes recommendations for implementing biodiversity auditing in China by integrating audit practices from both the United States and China, which includes establishing a biodiversity audit system and incorporating biodiversity audits into the governance framework of ecological civilization, establishing a collaborative mechanism between the audit departments and the biodiversity management departments, establishing a multi-level and multi-scale audit indicator system, and launching a pilot program for biodiversity auditing in typical areas.

A Study of the Affecting Pathways and Mechanism of Abnormal Corporate Investment on Audit Opinions

Zhang Guo-qing, Chen Xiao-feng

2025, 0(11):  154-164. 

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In China’s capital market, it has become a notable anomaly of firms making large-scale fixed asset purchases in the fourth quarter, with investment volumes far exceeding those of the preceding three quarters. Using the data from A-share listed companies between 2007 and 2022, this study examines the impact of corporate abnormal investment on audit opinions issued by auditors. The findings reveal that corporate abnormal investment will increase the probability of non-standard audit opinions being issued by auditors. The mechanism tests show that corporate abnormal investments can lead to earnings management behavior and widen book-tax differences, thus increasing the probability of non-standard audit opinions being issued by auditors. Further analysis indicates that compared to enterprises with high abnormal audit fees and high internal control quality, enterprises with low abnormal audit fees and low internal control quality are more likely to receive non-standard audit opinions from auditors. For this reason, auditors should carefully identify abnormal investments in enterprises, and the regulatory authorities should increase their supervision of abnormal investments in enterprises.