Government subsidy, asymmetric information and green innovation

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yatian Liu ◽  
Heng Xu ◽  
Xiaojie Wang
Keyword(s):  
Asymmetric Information ◽  
Moral Hazard ◽  
Empirical Analysis ◽  
Information Quality ◽  
Incentive Compatibility ◽  
Government Subsidy ◽  
Green Innovation ◽  
Content Type ◽  
Chinese Listed Companies ◽  
The Government

PurposeThe presence of asymmetric information exists between firms and the government about the firms' green innovation; this may lead to the firm's moral hazard problem of misusing the government subsidy on the green innovation. Such a problem is not fully considered by the existing literature. The purpose of this study is to explore how government subsidy affects green innovation when the information of firms' innovation cannot be completed observed, and figure out the mechanisms that can alleviate the negative impact of information asymmetry, which helps to explain the factors that motivate the firms to actively engage into the green innovation with the government subsidy.Design/methodology/approachIn a theoretical model under imperfect information in which the firm's activity on green innovation may not be fully observed, the firm could be either altruistic or not; an altruistic firm has stronger incentive to engage into corporate social responsibility (CSR) activities such as green innovation. With the presence of asymmetric information, the authors analyze the possibility of a firm's moral hazard and try to find out the condition on the information quality that can avoid such problem. To examine the results of theoretical analysis, the authors use the data of Chinese listed companies in a corresponding empirical analysis. On the basis of both theoretical and empirical the authors try to figure out the effect of the government subsidy on the green innovation by enterprise and the role of firm's characteristics of social responsibility and information quality in the green innovation with the government subsidy.FindingsThe results show that the government subsidy can promote the firm's green innovation, especially for those that are more socially responsible. The asymmetric information, however, leads to inefficiency on the green innovation. This is because that the low-quality information about the firm's behavior raises the possibility of a moral hazard. Moreover, the analyst coverage could be an efficient way to improve the quality of information, alleviating the moral hazard problem of the firm's green innovation. The main contribution is to fill the gap in the study of the government subsidy on green innovation under asymmetric information and to provide the mechanism to improve the efficiency of the subsidy to motivate green innovation by enterprise.Practical implicationsA crucial implication to policymakers is to complete and improve the system of information in the market, which can form an efficient incentive compatibility between the enterprises and the public. Such incentive compatibility can attract the enterprises to better use the government subsidy into green innovation and receive a long-run return from the public's positive feedback for their contribution on the social good.Originality/valueExisting studies are concerned about antecedents of green innovation do not completely focus on the relationship between government subsidy and green innovation. The present paper considers that information asymmetry between the government and firms may affect the impact of government subsidy on the firms' green innovation. This conjecture is studied by the theoretical model and verified by an empirical analysis using the data of Chinese listed companies. Additionally, the empirical analysis explores the moderating effect of CSR characteristics of firms, and the analyst coverage can positively affect the promotion of the government subsidy on the firms' green innovation.

Understanding continuance usage intention of mHealth in a developing country

2020 ◽  
Vol 14 (2) ◽  
pp. 251-272 ◽  
Author(s):  
Md Abdul Kaium ◽  
Yukun Bao ◽  
Mohammad Zahedul Alam ◽  
Md. Rakibul Hoque
Keyword(s):  
Structural Equation ◽  
Information Quality ◽  
Service Providers ◽  
Least Squares Method ◽  
System Quality ◽  
Content Type ◽  
Factors Affecting ◽  
Continuance Usage ◽  
The Government ◽  
Continuance Usage Intention

Purpose This study aims to understand the factors affecting the continuance usage intention (CUI) of mHealth among the rural elderly. Design/methodology/approach An integrated model was proposed with the constructs derived from multiple models such as the unified theory of acceptance and use of technology, information system success model and expectation confirmation model. Data were collected from 400 participants who had prior experiences with mHealth services in Bangladesh. The research model was tested using the partial least squares method based upon structural equation modelling. Findings The findings indicated that system quality, performance expectancy, facilitating conditions and social influence were significant to the degree of confirmation and ultimately affect satisfaction and CUI. Surprisingly, service quality and information quality were insignificant. Research limitations/implications This study has added in the field of knowledge by contributing some new thoughts and interpretations of continuance usage modelling for mHealth services. The findings may become beneficial for the government agencies, policymakers, mHealth systems developers and service providers. Originality/value As limited research was found on CUI of mHealth in the integrated view of rural elderly’s value, this research contributes to the extant literature by categorizing key factors that might support to proliferate the continuance usage of this service. Moreover, the contextualization of the related variables and integration of the existing model is theoretically original. Furthermore, because of a generic approach, the findings could be easily modified to assist other developing countries in the planning and up-take of mHealth.

Implications of government subsidies for waste cooking oil considering asymmetric information

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Yang ◽  
Wansheng Tang ◽  
Jianxiong Zhang
Keyword(s):  
Asymmetric Information ◽  
Conversion Rate ◽  
Waste Cooking Oil ◽  
Principal Agent ◽  
High Type ◽  
Content Type ◽  
Cooking Oil ◽  
Incentive Effects ◽  
The Government ◽  
Uncertainty Level

Purpose Without proper treatment, waste cooking oil (WCO) will bring serious environmental and health hazards, which can be effectively alleviated by converting it into biofuel. Subsidies from the government usually play a significant role in encouraging recycling activities and supporting sustainable supply chain. This paper aims to quantitatively investigate the incentive effects of government subsidies under asymmetric information. Design/methodology/approach This paper applies the principal–agent contract to compare the incentive effects of the two widely used subsidy modes (raw material price subsidy [MS] and finished product sale subsidy [FS]) in a management system which consists of the government and a bio-firm where the bio-firm’s conversion rate of the WCO remains as private information. Findings Results indicate that the two subsidy modes have the same performance under symmetric information, while under asymmetric information, the government always prefers the MS mode which is more environment-friendly. Besides, if the average conversion rate is large or the uncertainty level of the asymmetric information is moderate, the MS mode is Pareto-improving compared with the FS mode for the government and the high-type bio-firm. Only when the average conversion rate is small or the uncertainty level is very small/very large, the high-type bio-firm welcomes the FS mode. Originality/value Different from the existing literature, this paper applies the principal–agent contract into the WCO management system and quantitatively compares the two subsidy modes taking the practical problem of asymmetric information into consideration.

IT capabilities as a fundamental of electronic government system success in developing countries from users perspectives

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Alshaher
Keyword(s):  
Information Quality ◽  
Electronic Government ◽  
System Quality ◽  
Content Type ◽  
Government Services ◽  
Utaut Model ◽  
Use Of Technology ◽  
It Capabilities ◽  
System Success ◽  
The Government

Purpose This study aims to consider the capabilities of information technology as a basing dimension in the success of systems that provide electronic services as an e-government system. This study will focus on the role of IT capabilities in e-government system success by proposing a model based on the integration of the updated DeLone and McLean model is (D&M) with the unified theory of acceptance and use of technology is (UTAUT) model, which includes seven variables, namely, IT capabilities, information quality, system quality, performance expectancy, effort expectancy, perceived support quality and e-government system usage. Design/methodology/approach A conceptual framework was built across a review of the literature and the results of studies of IT capability and e-government systems success has developed the study model. As the causal approach was adopted to test the model of the proposed study. Survey data collected from 765 respondents who use the e-government system in Iraq. Also, a regression approach has been used to test the study model. Findings The results revealed that IT capabilities and the factors included in the “the updated (D&M) and (UTAUT) model” as important forecasts in the success of e-government systems. In another word, the proposed model provides managers with a new perspective to deal with the adoption of the e-government system by introducing a new variable “IT capabilities,” to provide decision-makers with a new approach in determining factors of e-government success. Research limitations/implications The government must develop their policies in line with e-government services to maximize the benefits accrued from e-government services. Where the main determinants in this study were the age group of the sample and the Arab environment for this study. Originality/value This study is the first in Iraq as a developing country and one of the few in e-government that considers IT capabilities as a basing dimension in e-government success by proposing a comprehensive model that sums the factors related to such a relationship. Its value stems from its sample of public users and the support of its proposed framework.

New tech board will cut China’s reliance on US market

2019 ◽  
Keyword(s):  
Moral Hazard ◽  
Active Role ◽  
Digital Economy ◽  
Political Control ◽  
Content Type ◽  
Global Leader ◽  
The Government

Significance Modelled on Nasdaq, the Shanghai Sci-Tech Innovation Board is another step in China’s ambitions to become a global leader in the digital economy. Impacts The government will retain an active role in managing listings on the board to maintain political control and protect investors. The board will enable reduction of direct subsidies to the tech industry, addressing one source of Western complaints. Moral hazard and loose corporate discipline create a risk of incidents of fraud and mismanagement, which cannot be fully mitigated.

Green innovation and Sustainable Development Goals in SMEs: the moderating role of government incentives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rizwan Ullah ◽  
Habib Ahmad ◽  
Fazal Ur Rehman ◽  
Arshad Fawad
Keyword(s):  
Government Support ◽  
Green Innovation ◽  
Role Of Government ◽  
Content Type ◽  
Government Incentives ◽  
Development Goals ◽  
The Government ◽  
The Relationship ◽  
Moderating Role

PurposeThe aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.Design/methodology/approachTo contribute to the literature, this research uses empirical evidence of 204 Pakistani small and medium-sized enterprises (SMEs) and tests the moderating role of government support between green innovation and SDGs.FindingsThe findings indicate that green innovation has a significant influence on SDGs, community development and environmental activities. The government support significantly strengthens the relationship between green innovation and environmental practices, while it does not moderate the path between green innovation and community development.Practical implicationsThe research recommends SMEs focus on the adoption of green innovation and green technology to protect the environment and facilitate the community. Moreover, the research advises the government to assist SMEs financially and nonfinancially, so they will in turn help in the attainment of SDGs.Originality/valueThis research is the first attempt to assess the importance of green innovation in SDGs with a moderating role of government incentives in emerging SMEs. It provides several useful implications for policymaking.

Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hashim Zameer ◽  
Ying Wang ◽  
Humaira Yasmeen ◽  
Shujaat Mubarak
Keyword(s):  
Competitive Advantage ◽  
Empirical Analysis ◽  
Equation Modeling ◽  
Business Analytics ◽  
Green Innovation ◽  
Environmental Orientation ◽  
Content Type ◽  
Mediating Role ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role of business analytics and environmental orientation toward green innovation and green competitive advantage. In addition, the study aims to explore the mediating role of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.Design/methodology/approachBased upon the theoretical analysis of existing literature, several hypotheses have been developed. Data was gathered using a survey method. The survey was conducted using online portal, 388 valid responses have been processed using SPSS 23.0 and AMOS 23.0 for empirical analysis. Two steps were used, first reliability and validity have been measured. Following this, the authors employed structural equation modeling technique to test hypothetical relationships.FindingsThe results from the authors’ empirical analysis indicate that business analytics and environmental orientation have a pivotal role toward green innovation as well as green competitive advantage. If the results are seen comparatively, then it can be indicated that the role of business analytics is more powerful compared with the environmental orientation. Although environmental orientation is a key factor of green innovation, but its direct role toward green competitive advantage is not so strong. Similarly, to check the other mechanisms, the role of green innovation as a mediator was explored. Empirical findings have established the mediating role of green innovation in the influence of business analytics and environmental orientation on green competitive advantage. Thus, the results confirm a mechanism of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.Practical implicationsThe study captures the attention of decision-makers and highlights that business leaders need to emphasize on business analytics while making managerial decisions related to green innovation and green competitive advantage.Originality/valueFor the first time, this study explored the role of business analytics and environmental orientation together toward green innovation and green competitive advantage. The study adds value to the existing literature and opens new avenues for scholarly research in the area of managerial decision-making.

Empirical study on the evaluation model of public satisfaction with typhoon disaster information disclosure

Kybernetes ◽  
2018 ◽  
Vol 47 (9) ◽  
pp. 1704-1720 ◽  
Author(s):  
Zufeng Zhong ◽  
Yaoqing Duan
Keyword(s):  
Latent Variables ◽  
Information Disclosure ◽  
Consumer Satisfaction ◽  
Structural Equation ◽  
Information Quality ◽  
Evaluation Model ◽  
Exponential Model ◽  
Content Type ◽  
Disaster Information ◽  
The Government

Purpose The purpose of this paper is to study major influencing factors on public satisfaction with regard to information disclosure amid typhoon disasters. Internal latent variables, including disaster information quality, information disclosure channels and disaster perception levels, significantly affected the degree of public satisfaction, which was key factors in determining account consumer satisfaction. Design/methodology/approach By conducting the questionnaire survey in typhoon-prone areas, 326 copies of the questionnaire about public satisfaction towards government information disclosure about typhoon were collected. An exponential model of satisfaction about information disclosure amid typhoon disasters was constructed and analyzed through the selection of latent variables, the hypotheses of the structural relationship and the establishment of measurable variables. Findings Disaster information quality, disaster information disclosure channels and disaster perception levels were all positively correlated with the dimensions of information performance perception dimensions. Public expectations also made positive contributions to public satisfaction. These findings strongly support the hypothesis that public satisfaction affects the government image and public trust. Originality/value With the Leizhou Peninsula, China attacked by the typhoon disasters as an example, the SEM was adopted to simulate the routes and its feasibility and scientificity were validated. It is valuable to build and analyze an evaluation model based on a structural equation model underlying the public satisfaction towards information disclosure amid typhoon disasters.

Does compliance with the German Corporate Governance Code pay off?

2015 ◽  
Vol 16 (3) ◽  
pp. 344-376 ◽  
Author(s):  
Thomas Kaspereit ◽  
Kerstin Lopatta ◽  
Jochen Zimmermann
Keyword(s):  
Corporate Governance ◽  
Empirical Analysis ◽  
Equity Capital ◽  
Outcome Variable ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Good Corporate Governance ◽  
The Government ◽  
Open Question

Purpose – This paper aims to empirically investigate the relationship between the level of compliance with the German Corporate Governance Code’s (GCGC) recommendations and the implied cost of equity capital (ICC). German listed companies are required by law to annually disclose their compliance with the recommendations of the GCGC. Whether the GCGC achieves its aim to promote the trust of stakeholders in the management and supervision is still an open question. Design/methodology/approach – ICC is regressed on a score that captures compliance with the GCGC and several control variables. The dataset covers the period of 2003-2012 with declarations of compliance from 447 companies. ICC is chosen as an outcome variable, as it captures general investment risk as well as risk arising from asymmetric information and mistrust of investors in management. Findings – The results of the empirical analysis demonstrate that a higher level of GCGC compliance is associated with lower ICC. Research limitations/implications – It is expected that the results of this study will strengthen acceptance of the GCGC and empirically support the work of the government commission that is responsible for it. It has not been analyzed yet whether the firms cite good reasons why they do not adhere to certain items. Originality/value – This empirical analysis is the first to provide statistically reliable evidence on how compliance with the GCGC affects ICC and whether the work of the government commission reflects good corporate governance as perceived by capital markets.

scholarly journals Government Incentive Contracts for Microgrid Users

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 994
Author(s):  
Guanyi Yu ◽  
Qiang Lin ◽  
Xiaoqian Qi
Keyword(s):  
Energy Storage ◽  
Incentive Compatibility ◽  
Incentive Contracts ◽  
The Self ◽  
Government Subsidy ◽  
Storage Efficiency ◽  
Hidden Information ◽  
The Government ◽  
Energy Storage Efficiency ◽  
Further Development

Tariff subsidies are beneficial to the further development of the microgrid market. In response to the reduction of the power generation costs of microgrids, the energy storage subsidy for microgrids has become a key factor affecting their further development. Therefore, it is essential to explore and establish a government subsidy mechanism for the energy storage price of microgrids. In this paper, we consider the incentive compatibility constraints and participation constraints of both the government and the microgrid energy storage subsidy. The cases of hidden information and no hidden information are investigated. A microgrid energy storage subsidy model of the incentive compatibility constraint was established to analyze the efficiency of the government subsidy and the microgrid energy storage in the “self-generation + energy storage” mode. The results show that there is an adverse selection problem between the government and energy storage subsidies for microgrid users. In the case of no hidden information, the government can sign different contracts with microgrid users according to their different energy storage efficiency levels. In the case of hidden information, it is better for the government to design a menu of different incentive contracts for microgrid users with different energy storage efficiencies. This approach can ensure that microgrid users with low energy storage efficiency continue to participate in the microgrid construction. Microgrid users with high energy storage efficiency can, thus, better control their costs related to the self-generation, self-use, and surplus electricity transmitted to the grid as well as better select high-regulation carbon dioxide emission reductions and their capacity generation.

Application of Incentive Mechanism in Building Energy Efficiency Regulation

2011 ◽  
Vol 71-78 ◽  
pp. 242-245
Author(s):  
Hong Wei Liu ◽  
Zhuo Fu Wang ◽  
Jun Li
Keyword(s):  
Energy Efficiency ◽  
Asymmetric Information ◽  
Incentive Mechanism ◽  
Incentive Compatibility ◽  
Building Energy ◽  
Building Energy Efficiency ◽  
Energy Regulation ◽  
Asymmetry Of Information ◽  
Symmetric Information ◽  
The Government

Considering the external characteristics of building energy efficiency, the essay points out the necessity for incentive mechanism design. Building energy regulation should take into account the building owner's participation constraint and incentive compatibility constraint. The asymmetry of information about building energy should be considered, then the game model under asymmetric information can be established. This paper proved that optimal mechanism of non-symmetric information was different from the asymmetric information. According to the analysis of the paper，incentive mechanism is necessary for the government.

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