This study examines whether penalties issued to Chinese listed companies by securities regulators for violations of corporate law affect the cost of debt, and the moderating role of corporate social responsibility fulfillment on this relationship. Our sample consists of firms listed on Shanghai and Shenzhen stock exchanges from 2011 to 2017 and the data are collected from the announcements of China Securities Regulatory Commission. The findings are as follows: punishment announcements by regulatory authorities increase the cost of debt; and the (...) effect of punishment announcements on the cost of debt is partially offset by prior CSR performance. These findings are shown to be robust. The reputation insurance effect of CSR is more pronounced in state-owned enterprises and in an institutional environment with low marketization, a weak legal environment, and low information transparency. The findings support the reputation insurance hypothesis of CSR and employ the cost of debt as a governance mechanism. (shrink)

This study investigates the interaction between suppliers and fraudulent customer firms from the perspective of reputation damage and reputation recovery. Specifically, reputation damage from the regulatory penalty for corporate fraud induces the trust crisis and suppliers respond to fraudulent firms by reducing the trade credit supply. To repair a damaged reputation and rebuild the trust, fraudulent firms raise the ratio of prepayment to purchase volume when purchasing from small suppliers and increase the proportion of purchase from large suppliers in the (...) next year. Channel analysis shows that the declining trust is one of potential mechanisms to reduce the trade credit. Furthermore, the negative effect is more pronounced for fraudulent firms with non-related party suppliers, higher supplier concentration, less analyst coverage, and for fraudulent firms located in regions with less-developed financial environment. Additionally, supplier sanctions have a spillover effect on non-fraudulent customer firms in the same industry. The conclusions are robust to a series of checks, including PSM–DiD, firm and year fixed effect, the alternative measure for trade credit financing, the industry-year fixed effect and the consideration of the monetary policy and financial crisis. (shrink)

We examine the impact of a government-initiated CSR project on corporate misconduct using the unique setting of China’s Targeted Poverty Alleviation (TPA) program. The difference-in-differences estimates show that firms participating in the TPA program engage in fewer misconduct activities than do their counterparts. This finding is robust to the parallel trends test, the placebo test, alternative regression specifications, alternative research designs, the reverse causality analysis, and the bivariate probit model with partial observability. Further analysis shows that TPA participation enhances the (...) ability of external financial professionals to monitor performance by stimulating the dissemination of TPA-related incremental information, thereby contributing to the decline in corporate misconduct. The cross-sectional heterogeneity analysis shows that the impact of TPA participation on corporate misconduct is more pronounced in firms with higher information asymmetry, with weaker political connections, and with weaker internal governance. Furthermore, we find evidence that TPA participation improves corporate financial performance but does not deteriorate information transparency. (shrink)

With the expansion of the digital business line, the network flow behind the digital power grid is also exploding. To prevent network congestion, this article proposes a novel network flow forecasting model, which is composed of variational mode decomposition, GRU-xgboost block, and a forecasting adjustment block, to grasp the changing patterns and trends of network flow in advance, and to formulate reasonable and effective flow management strategies and meet the requirements of users for network service quality. The network flow series (...) in power grid enterprise always contain complex patterns and outliers, and VMD is applied to adaptively process complex net flow time series into several subseries with simpler patterns. A GRU-xgboost block is designed to reconstruct the features of historical series. Then, xgboost model is applied to generate predictions for all decomposed subsignals. For the final predictions, we design a forecasting adjustment block to further remove the influence of random noise. Finally, the empirical results show the superior performance of the proposed model on network flow forecasting task. (shrink)

PurposeThyroid-associated ophthalmopathy is a vision threatening autoimmune and inflammatory orbital disease, and has been reported to be associated with a wide range of structural and functional abnormalities of bilateral hemispheres. However, whether the interhemisphere functional connectivity of TAO patients is altered still remain unclear. A new technique called voxel-mirrored homotopic connectivity combined with support vector machine method was used in the present study to explore interhemispheric homotopic functional connectivity alterations in patients with TAO.MethodsA total of 21 TAO patients and 21 (...) wellmatched healthy controls, respectively, underwent functional magnetic resonance imaging scanning in the resting state. We evaluated alterations in the resting state functional connectivity between hemispheres by applying VMHC method and then selected these abnormal brain regions as seed areas for subsequent study using FC method. Furthermore, the observed changes of regions in the VMHC analysis were chosen as classification features to differentiate patients with TAO from HCs through support vector machine method.ResultsThe results showed that compared with HCs, TAO patients showed significantly lower VMHC values in the bilateral postcentral gyrus, lingual gyrus, calcarine, middle temporal gyrus, middle occipital gyrus and angular. Moreover, significantly decreased FC values were found between the right postcentral gyrus/lingual gyrus/calcarine and left lingual gyrus/cuneus/superior occipital gyrus, left postcentral gyrus/lingual gyrus/calcarine and right lingual gyrus/ middle temporal gyrus, right middle temporal gyrus and left cerebellum-8/lingual gyrus/middle occipital gyrus/supplementary motor area, left middle temporal gyrus and right middle occipital gyrus, right middle occipital gyrus/angular and left middle temporal pole. The SVM classification model achieved good performance in differentiating TAO patients from HCs.ConclusionThe present study revealed that the altered interhemisphere interaction and integration of information involved in cognitive and visual information processing pathways including the postcentral gyrus, cuneus, cerebellum, angular, widespread visual cortex and temporal cortex in patients with TAO relative to HC group. VMHC variability had potential value for accurately and specifically distinguishing patients with TAO from HCs. The new findings may provide novel insights into the neurological mechanisms underlying visual and cognitive disorders in patients with TAO. (shrink)