The implementation of the Government Guides Funds (GGFs) policy by China’s government plays an important role in guiding domestic private capital to participate in innovation and entrepreneurship activities. This study empirically analyzed the impact of GGFs in facilitating the domestic optimization process of urban innovation in China. Based on panel data from 285 cities from 2008 to 2021, this study uses the Spatial Durbin Model (SDM) to verify the impact of GGFs on urban innovation and its mechanism. The findings reveal that GGFs exert a positive influence on the urban innovation of both the immediate regions and the neighboring areas of the policy-origin city. The effectiveness of GGFs varies geographically, with more pronounced spatial spillover impacts observed in the eastern regions of China. Further research shows that industrial upgrading amplifies the direct impact of GGFs on urban innovation, while its indirect effectiveness is not significant. Finally, based on empirical findings, this study also underscores the necessity of local governments in tailoring the management of GGFs to local conditions and promoting sustainable urban innovation and regional development. Our findings provide noteworthy implications for governmental administrators and regulators in promoting the systemic optimization of GGFs operations within the context of sustainable urban development.

In recent years, as the proportion of non-financial information in the company's external disclosure information continues to rise, its text information characteristics and the motivation behind it have gradually been valued by regulators and academia. This paper uses the management discussion and analysis data of listed companies and the equity pledge data of controlling shareholders from 2007 to 2020 to conduct a relatively comprehensive investigation on the motivation for non-financial information disclosure. The main research is on the impact of the controlling shareholder's equity pledge on the readability of the annual report text of listed companies. And a heterogeneity analysis is conducted from the perspective of equity nature. The study concluded that the readability of the Chinese text of the annual report disclosure of listed companies with controlling shareholders' equity pledges and listed companies with larger equity pledge scales is worse. This confirms that there is a behavior of beautifying the non-financial information disclosure of listed companies after the controlling shareholder's equity pledge. However, this conclusion is mainly significant in non-state-owned enterprises. The empirical analysis of this paper also found that the internal governance of listed companies and the operating conditions of listed companies will have an impact on the non-financial information disclosure behavior of listed companies' annual report disclosure after equity pledge. This study has the following contributions: First, new motivations for non-financial information disclosure are discovered, thereby enriching the literature on the motivation for non-financial information disclosure. Secondly, this paper enriches the literature on the economic consequences of equity pledge by controlling shareholders. Finally, this paper answers the question of "why non-financial information disclosure can be manipulated" from the perspective of the second type of agency. This result can provide a useful reference for improving the relevant regulatory system of listed companies in my country.

Compared with traditional financial information, non-financial information accounts for a larger proportion of the company's external disclosure, has a more flexible form of expression, and has more diverse release channels. It is more likely to affect the hub functions of the capital market, such as asset pricing, resource allocation, and risk management, and also brings new opportunities and challenges to market supervision. However, both in theory and practice, there is still a lack of in-depth understanding of the impact of non-financial information disclosure on the hub function of the capital market. Therefore, this article sorts out the definition and disclosure motivation of non-financial information, and reviews and analyzes the literature on its impact on the hub function of the capital market in terms of economic consequences, impact mechanism, and regulatory research, in order to provide meaningful reference and reference for capital market supervision and resource allocation.