Innovation is the key to the development of the pharmaceutical industry. The pilot program of China’s “4 + 7” volume-based procurement policy (“4 + 7” procurement policy) brings the drug price back to a reasonable level through trading procurement quantities for lower drug prices. The policy manages to reduce the burden of the health care system, improve efficiency, and push the pharmaceutical industry to transform and update from the era of high gross profit of generic drugs to innovative drugs. So far, few studies have investigated the influence of the volume-based procurement policy on the innovation of pharmaceutical firms. By combining the event study and Difference-in-Difference (DiD) methodology, this study finds that the abnormal return (AR) of firms with high R&D intensity is lower than that of firms with low R&D intensity during the event window period. Moreover, further analysis identifies the moderating effect of firm size and firm type. Specifically, the results show that the negative influence of high R&D intensity on abnormal return (AR) during the announcement of the “4 + 7” procurement policy is stronger in large firms and innovative pharmaceutical firms. Finally, we discuss the policy implications of our study.

This study links the gender diversity of the top management team (TMT) to corporate social responsibility (CSR) and examines the moderating role of the marketization level in their relationship. According to the token theory, females are “tokens” and have difficulty playing their roles when they are rare in groups, where their presence is used for providing legitimacy. Meanwhile, CSR is implemented to gain legitimacy. Therefore, we predicted that there was a negative relationship between female top managers and CSR, and that the marketization level positively moderated their relationship. The hypotheses were supported by the data from 17,032 manager-year observations of listed companies in China. The results indicated that the female top managers’ presence and CSR performance had the same function of gaining legitimacy. With limited resources, firms added females at the expense of decreasing investment in CSR when under the external pressure of increasing female top managers. Furthermore, this negative relationship was stronger in firms with a less-developed institutional environment because firms with weak institutions have strong incentives to find alternatives to fill the institutional void, which helps to gain access to resources and reduce transaction costs.

Based on the upper echelons theory, previous literature has suggested that CEO's personal characteristics influence firms' internationalization. However, most research investigates the static traits such as age, education, overseas background, etc. Since CEO's communication skills exert influence on the firm as well, communication may also be of significance in the process of firm internationalization. We proposed that three CEO rhetoric strategies affect firm internationalization by persuading employees to recognize the international purpose and contribute to it jointly. Using the data of CEO rhetorical strategies and the level of internationalization of 118 Chinese listed firms, we tested the influence of CEO rhetoric strategy on firms' internationalization. The results show that two CEO rhetoric strategies - Ethos and Pathos - affect firm internationalization positively. The findings reveal that proper strategy of CEO communication is important for the execution of firms' internationalization.

Since the Chinese government proposed the Belt and Road Initiative (BRI) in 2013, Chinese firms have been actively investing in countries participating in BRI. What kinds of firms are willing to respond to this geopolitical policy? According to resource dependence theory and resource-based view, this study examines the impact of CEO political connections on outward foreign direct investment (OFDI) in the context of BRI and its boundary conditions. The results show that CEO political connections can promote firm OFDI under BRI. However, a good institutional environment in the home region and host country weakens the positive impact of CEO political connections. Furthermore, central state ownership has a substitute role for CEO political connections.