Yan Ma

Purpose: This study examines the impact of digital transformation on the quality and efficiency of internal audit, and uncovers the underlying mechanisms. Design/methodology/approach: Using data from Chinese A-share listed companies spanning 2012 to 2023, we empirically investigate the impact of digital transformation on internal audit. Findings: The results demonstrate that digital transformation enhances both the quality and efficiency of internal audits; Mechanism analysis reveals that digital transformation affects internal audit through two pathways: human capital and financial channels; The impact is more pronounced in the diversified enterprises and those with low transparency. Originality/value: This study's results will enrich the relevant studies on the influencing factors of corporate internal audit quality and efficiency, and provide useful references for enterprises to improve the level of internal audit.

Purpose: Tax incentives have a significant impact on the development of equipment manufacturing enterprises in the era of economic transformation. Design/methodology/approach: This paper explores the impact of tax incentives on R&D investment in the equipment manufacturing industry from the perspective of “enterprise life cycle”, based on data from Chinese equipment manufacturing enterprises from 2011 to 2022. Findings: The study finds that: (1) Overall, tax incentives significantly promote the equipment manufacturing industry to increase R&D investment, and this effect remains significant under various robustness tests; (2) The impact of tax incentives on R&D investment differs in different life cycles: firstly, the strongest impact occurs during the maturity period, followed by the decline period, with the weakest impact in the growth period;(3) Further study explores the mechanisms, finding that tax incentives affect profits through internal incentives and compliance effects, and impact costs through externality and deterrence effects, ultimately influencing R&D investment in equipment manufacturing industry. Causal identification through difference-in-difference method is found to be consistent with the conclusion of the benchmark regression; (4) The impact of tax incentives on R&D investment varies among enterprises with different technological levels, industries and life cycles. Originality/value: These research results will help the government develop targeted tax incentive policies for different life cycle enterprises, and also improve policy support for other developing countries.

In recent years, China has placed significant emphasis on sustainable economic and social development, actively implementing the concept of green development. In 2023, General Secretary Xi Jinping proposed that all regions should actively develop new-quality productivity, signifying a deepening of green and sustainable development principles. As an internationally recognized indicator for measuring corporate sustainability, Environmental, Social, and Governance (ESG) criteria may influence the enhancement of new-quality productivity across regions, particularly in relation to green new quality productivity. This paper investigates the effects of corporate ESG performance on the levels of green and new-quality productivity using data from China’s A-share listed companies from 2013 to 2022. The findings reveal the following: (1) corporate ESG performance significantly enhances the level of green new quality productivity; (2) mechanism tests indicate that corporate ESG performance enhances green new quality productivity by promoting firms’ green innovation; and (3) further analysis shows that the effect of ESG performance on green new quality productivity is more pronounced in firms with low levels of financing constraints, high media attention, and elevated green awareness among executives. These findings provide empirical evidence for strengthening corporate ESG performance, promoting green innovation, elevating regional levels of green and new-quality productivity, and advancing sustainable development, thereby offering valuable insights for developing countries.