Corporate Governance in the New Age (PDF)

The firm has the incentive to engage in socially responsible innovation to better compete with its rivals, Such a result enables the policymakers to understand the factors that affect the firm's motivation on innovation and helps them to better guide the firms efficiently participate in the research and development activities. As an important mechanism of corporate management and control, performance appraisal system is an important part for establishing ownership management system and improving internal management system of SOEs. The stakeholders influence the legitimation process. In a fiscally decentralized system, local environmental protection authorities perform environmental supervision, and the intensity of the regulations that they implement has an important influence on corporate environmental governance. When the contractor becomes a dual-role subject and expends significant effort, the revenue of stakeholders can be increased, which can achieve a win-win outcome. Meanwhile, the level of effort of the contractor can be guaranteed when the government or project company limits the investment proportion. For a contractor, the channel of becoming a dual-role subject and expending effort is suggested for maximizing investment return. Under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value.