An introduction to frontier on corporate finance and capital market development in China

This article reviews recent studies on the evolution of corporate finance and governance in China, driven by market and institutional development and reforms. It introduces the special issue "Frontier on Corporate Finance and Capital Market Development in China" for the Pacific-Basin Finance Journal (PBFJ), focusing on strategic transition toward digitalization and innovation. The discussed articles primarily explore the impacts of digital transformation and green innovation activities in Chinese firms, alongside the influence of formal institutional reforms and informal cultural and social norms on firm behavior, capital market functioning, and information dissemination in China. The article also calls for further research on China's registration-based IPO reform, financial liberalization policies, and the corporate efforts of Chinese firms toward greenness and sustainability.