Feng He

Regulatory intervention is important in shaping corporate behaviour, especially in markets with relatively weak property rights. Using a sample of publicly listed companies in China from 2006 to 2021, this study investigates the impact of regulatory intervention in managers’ misconduct on the corporate idiosyncratic risk. Using a difference-in-differences design, we explore the idiosyncratic risk change after inspections of a manager’s misconduct to that of their counterparts who are not involved in misconduct activities. We find that inspections of corporate managers’ misconduct significantly reduce their firms’ risk by reducing investors’ heterogeneous beliefs and improving corporate transparency. This effect is more pronounced in firms with lower levels of information transparency and greater external attention pressure, suggesting that regulatory interventions could improve corporate information environment.

Although big data analytics capability leads to competitive performance, the mechanism of the relationship is still unclear. To narrow the research gap, this paper investigates the mediating roles of two forms of resource integration in the relationship between two forms of BDAC [big data analytics management capability and BDA technology capability] and competitive performance. Supported by Partial Least Squares-Structural Equation Modeling and the cross-sectional survey data from 219 Chinese enterprises, the results show that the resource bricolage plays a significantly mediating role in the relationships between BDA management capability and competitive performance as well as in the relationship between BDA technology capability and competitive performance. Furthermore, the mediating effect in the former relationship is stronger than that in the latter relationship. Additionally, BDA technology capability only has a direct effect on resource bricolage, while BDA management capability has a stronger effect on resource optimization than that on resource bricolage. Finally, resource bricolage has a stronger impact on competitive performance than resource optimization. These findings contribute to understanding how enterprises could apply different forms of BDAC to other kinds of resource integration to achieve outstanding competitive performance.