IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v76y2025ics1544612325002120.html

How is merchant gang culture conducive to increasing enterprises’ common prosperity?

Author

Listed:
  • Yu, Shengsheng
  • Jin, Hang
  • Jin, Chunhua
  • Huang, Jian
  • Li, Jianliang
  • Wang, Bin

Abstract

The United Nations' Sustainable Development Goals aim to eradicate all forms of poverty worldwide. The Chinese government's primary focus is achieving prosperity within the fundamental units of wealth creation and distribution—enterprises. Based on A-share listed firms' data spanning 2011–2023, this study evaluates the economic consequences of merchant gang culture in terms of increasing overall wealth (intrafirm commonwealth) and optimizing its distribution. Findings indicate that merchant gang culture can enhance firms' profit-generating capacity and labor income share while diminishing internal pay disparity.

Suggested Citation

  • Yu, Shengsheng & Jin, Hang & Jin, Chunhua & Huang, Jian & Li, Jianliang & Wang, Bin, 2025. "How is merchant gang culture conducive to increasing enterprises’ common prosperity?," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002120
    DOI: 10.1016/j.frl.2025.106948
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325002120
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.106948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Achdou, Yves & Han, Jiequn & Lasry, Jean Michel & Lions, Pierre Louis & Moll, Ben, 2022. "Income and wealth distribution in macroeconomics: a continuous-time approach," LSE Research Online Documents on Economics 107422, London School of Economics and Political Science, LSE Library.
    2. Izadi, Selma & Rashid, Mamunur & Izadi, Parviz, 2023. "Direct and indirect influence of national culture on foreign direct investment," Research in International Business and Finance, Elsevier, vol. 66(C).
    3. Mu, Pengyun & Zhang, Shoufu, 2024. "Role of homestead system reform in rural common prosperity," Finance Research Letters, Elsevier, vol. 69(PB).
    4. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(4), pages 857-882, December.
    5. Tang, Yingzhe & Hu, Shuhong, 2024. "Merchant gang culture and financial slack: Empirical evidence from listed companies," Finance Research Letters, Elsevier, vol. 65(C).
    6. Christian T. Elbæk & Panagiotis Mitkidis & Lene Aarøe & Tobias Otterbring, 2023. "Subjective socioeconomic status and income inequality are associated with self-reported morality across 67 countries," Nature Communications, Nature, vol. 14(1), pages 1-14, December.
    7. Lyu, Jiayu & Li, Lu & Liu, Yuqi & Deng, Qian, 2025. "Promoting common prosperity: How do digital capability and financial literacy matter?," International Review of Financial Analysis, Elsevier, vol. 97(C).
    8. Yan, Shen & Mao, Chunxiao & Ma, Wanrong, 2024. "Anti-trust law, financing advantage and common prosperity within firms," Finance Research Letters, Elsevier, vol. 63(C).
    9. Sonkey Louis Ntu & Bime Mary Juliet Egwu & Mbu Daniel Tambi, 2023. "Informal Institutional Characteristics and Youth Involvement in Agribusiness Entrepreneurship in Fako Division, Cameroon: A Structural Equation Modeling Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(4), pages 222-237, April.
    10. Yves Achdou & Jiequn Han & Jean-Michel Lasry & Pierre-Louis Lionse & Benjamin Moll, 2022. "Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 45-86.
    11. Zhang, Cong & Mehmood, Rashid & Palma, Alessia & Wang, Zhen, 2024. "The impact of culture and religion on financing decisions: Moderating role of CSR," Research in International Business and Finance, Elsevier, vol. 70(PB).
    12. Mbalyohere, Charles & Lawton, Thomas C., 2022. "Engaging informal institutions through corporate political activity: Capabilities for subnational embeddedness in emerging economies," International Business Review, Elsevier, vol. 31(2).
    13. Fredström, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2021. "A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation," Journal of Business Venturing, Elsevier, vol. 36(5).
    14. Leventis, Stergios & Tsalavoutas, Ioannis & Tsoligkas, Fanis, 2024. "Informal institutions in accounting research: A structured literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 55(C).
    15. Wang, Huizong & Liu, Huijie & Fu, Qiang, 2024. "Effects of common prosperity on China's education expenditure—Empirical analysis based on CFPS quasi-micro panel data," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 440-455.
    16. Yan, Youliang & Wang, Maochuan & Hu, Guoliu & Jiang, Chengxin, 2024. "Does Confucian culture affect shadow banking activities? Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 68(C).
    17. Christian T. Elbæk & Panagiotis Mitkidis & Lene Aarøe & Tobias Otterbring, 2023. "Author Correction: Subjective socioeconomic status and income inequality are associated with self-reported morality across 67 countries," Nature Communications, Nature, vol. 14(1), pages 1-1, December.
    18. Zhang, Cheng & Zhu, Yuyao & Zhang, Limin, 2024. "Effect of digital inclusive finance on common prosperity and the underlying mechanisms," International Review of Financial Analysis, Elsevier, vol. 91(C).
    19. Sha, Zhouhao & Ren, Dong & Li, Chengyou & Wang, Zeru, 2024. "Agricultural subsidies on common prosperity: Evidence from the Chinese social survey," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1-18.
    20. Zhang, Jian & Wang, Dongqiang & Ji, Ming & Yu, Kuo & Qi, Mosha & Wang, Hui, 2024. "Digital literacy, relative poverty, and common prosperity for rural households," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    21. Basha, Shabeen Afsar & Bennasr, Hamdi & Goaied, Mohamed, 2025. "Culture, financial literacy, and leverage of small firms," Research in International Business and Finance, Elsevier, vol. 75(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Xiaoliang & Jiang, Jinjin & Liu, Zuxian & Chen, Lijun, 2025. "Cultural blueprint: Uncovering how merchant guild culture shapes corporate innovation," Finance Research Letters, Elsevier, vol. 85(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang, Ling & Shen, Ye, 2025. "Digital economy enabling high-quality development of agricultural Enterprises: Interaction, inner mechanism and strategic orientation," International Review of Economics & Finance, Elsevier, vol. 103(C).
    2. Ruitu Xu & Yifei Min & Tianhao Wang & Zhaoran Wang & Michael I. Jordan & Zhuoran Yang, 2023. "Finding Regularized Competitive Equilibria of Heterogeneous Agent Macroeconomic Models with Reinforcement Learning," Papers 2303.04833, arXiv.org.
    3. Dmitriy Sergeyev & Chen Lian & Yuriy Gorodnichenko, 2023. "The Economics of Financial Stress," NBER Working Papers 31285, National Bureau of Economic Research, Inc.
    4. Magacho, Guilherme & Spinola, Danilo, 2025. "Dynamic Adjustments in Environmental Input-Output Models: Incorporating Quantity and Price Traverse Disequilibrium," CAFE Working Papers 40, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    5. Ricardo Alonzo Fern'andez Salguero, 2025. "SIMPOL Model for Solving Continuous-Time Heterogeneous Agent Problems," Papers 2509.23557, arXiv.org.
    6. Han, Jungsuk & Wang, Yenan, 2025. "All that glitters: A theory of multiple bubbles with implications for cryptocurrencies," Journal of Monetary Economics, Elsevier, vol. 152(C).
    7. Kyle S. H. Dobson & Andrea G. Dittmann & David S. Yeager, 2025. "A transparency statement improves trust in community-police interactions," Nature Communications, Nature, vol. 16(1), pages 1-19, December.
    8. Pablo Garcia Sanchez & Olivier Pierrard, 2026. "The Rich, The Poor, and The Carbon Tax," LIDAM Discussion Papers IRES 2026006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Zeng, Yuan & Yang, Yusen & Wang, Chun & Zou, Jianke, 2025. "Exploring the digital divide–poverty link: Roles of education and family dependency," Finance Research Letters, Elsevier, vol. 85(PC).
    10. Felipe J. P. Antunes & Yuri F. Saporito & Sebastian Jaimungal, 2025. "Deep Learning and Elicitability for McKean-Vlasov FBSDEs With Common Noise," Papers 2512.14967, arXiv.org.
    11. He, Ying & Yu, Changhua, 2025. "Fiscal multipliers, sectoral heterogeneity and reallocation in China," China Economic Review, Elsevier, vol. 93(C).
    12. Gizem Koşar & Davide Melcangi & Laura Pilossoph & David Wiczer, 2023. "Stimulus through Insurance: The Marginal Propensity to Repay Debt," Staff Reports 1065, Federal Reserve Bank of New York.
    13. Li, Mingzhe, 2025. "A Theory of Portfolio Choice for Heterogeneous Investors," MPRA Paper 126642, University Library of Munich, Germany, revised 29 Oct 2025.
    14. Christensen, Bent Jesper & Neri, Luca & Parra-Alvarez, Juan Carlos, 2024. "Estimation of continuous-time linear DSGE models from discrete-time measurements," Journal of Econometrics, Elsevier, vol. 244(2).
    15. Keyvan Eslami & Thomas Phelan, 2025. "The Art of Temporal Approximation: An Investigation into Numerical Solutions to Discrete- and Continuous-Time Problems in Economics," Computational Economics, Springer;Society for Computational Economics, vol. 65(3), pages 1505-1547, March.
    16. Anatolia Batruch & Nicolas Sommet & Frédérique Autin, 2025. "Advancing the psychology of social class with large-scale replications in four countries," Nature Human Behaviour, Nature, vol. 9(11), pages 2382-2403, November.
    17. Andrew Lyasoff, 2023. "The Time-Interlaced Self-Consistent Master System of Heterogeneous-Agent Models," Papers 2303.12567, arXiv.org, revised May 2025.
    18. Mellior, Gustavo, 2025. "Higher education funding, welfare and inequality in equilibrium," Journal of Comparative Economics, Elsevier, vol. 53(4), pages 1133-1172.
    19. Wei Liang & Heng-fu Zou, 2026. "Dynamic Incentive Design in Large Populations: A Mean Field Game Approach to the Principal-Agent Problem," CEMA Working Papers 806, China Economics and Management Academy, Central University of Finance and Economics.
    20. Jordan Roulleau-Pasdeloup, 2025. "Explicit Consumption Functions with Borrowing Constraints: a Continuous Time Approach," Papers 2511.03452, arXiv.org.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.