Associate Professor Yanan Wang, a researcher of the Base, has published a collaborative paper titled "Refining employee treatment: Effects of government arrears repayment in China" in the renowned academic journal China Journal of Accounting Research.

China Journal of Accounting Research is the first international English-language academic journal dedicated exclusively to accounting research on China and emerging markets. Co-founded by Sun Yat-sen University and City University of Hong Kong, it is currently included in the ABDC Journal Quality List (Grade B) and the FMS High-Quality Journal List for Management Science.

Abstract: Research on government procurement emphasizes its positive impacts, while paying insufficient attention to the risks posed by government arrears. We show that the implementation of China’s Special Supervision Action for Repaying Government Arrears significantly enhances employee treatment, particularly safety management and employee incentives, through monetary compensation, welfare, social security expenditure and investment in skilled human capital. The Special Supervision Action improves employee treatment by alleviating liquidity constraints and enhancing CEO confidence, which in turn boost firm productivity and performance. Cross-sectional tests indicate that the number of nearby bank branches, political connections, financial health, demand for human capital and external job opportunities affect these relationships. Our findings highlight the influence of government arrears repayment on corporate human capital investment.

Keywords: Government arrears；Employee treatment；Liquidity constraints；CEO confidence

Link: Refining employee treatment: Effects of government arrears repayment in China - ScienceDirect

Teacher profile

Yanan Wang is an associate professor at the School of Finance, Zhongnan University of Economics and Law. She holds a Ph.D. in Finance from the School of Economics, Fudan University, and completed her doctoral program jointly with WHU-Otto Beisheim School of Management in Germany. Her main research areas include corporate finance, contract theory, and behavioral finance. Currently, she is the principal investigator of a youth project funded by the National Natural Science Foundation of China and has participated in multiple projects funded by the National Natural Science Foundation and the National Social Science Fund. Her research has been published in leading domestic journals such as Economic Research and Journal of Financial Research, as well as in SSCI journals including Journal of Corporate Finance, China Economic Review, Energy Economics, Journal of Business Finance & Accounting, Economic Modelling, Pacific-Basin Finance Journal, and Finance Research Letters.