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Female executive and energy consumption intensity: The role of green innovation Finance Research Letters (IF 10.4) Pub Date : 2024-05-07 Yu Li, Yi Zhu, Weijie Tan, Tiange Qi, Yongjian Huang
We widely explore the positive effect of female executives on ECI, the energy consumption per unit of output. We find that female executives will promote ECI reduction of corporate. And the result holds after a series of robustness and endogeneity tests. Further analysis indicates that the positive effect will be stronger in enterprises with lower level of environmental regulation, in heavily polluting
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Payment card interchange fee regulation and financial institutions: The effects on traditional and fintech financial conglomerates* Finance Research Letters (IF 10.4) Pub Date : 2024-05-06 Klenio Barbosa, Bruno de Paula Rocha, Luan Michel Pereira, Luiz Fernando Passos
This paper investigates the effects of credit card interchange fee regulation on the performance of traditional and fintech financial conglomerates. Using data from 2017 to 2021 of individual financial institutions and conglomerates operating in Brazil and parameters estimated by previous studies, we simulate the impact of that regulation on financial conglomerates. We find that an interchange fee
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The green effects of competition: administrative monopoly regulation and green innovation Finance Research Letters (IF 10.4) Pub Date : 2024-05-06 Zhaohui Zhu, Yang Huang, Chao Hu, Youliang Yan
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CSR in the banking industry: A longitudinal analysis of the impact on financial performance and risk-taking Finance Research Letters (IF 10.4) Pub Date : 2024-05-04 A. Hojer, V. Mataigne
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Are fiscal rules efficient on public debt restraint in the presence of shadow economy? Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Eugenia Ramona Mara, Raluca Maran
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BigTech, FinTech, and banks: A tangle or unity? Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Sitara Karim, Brian M. Lucey
We examined the dual impact of BigTech and FinTech financing on traditional banking metrics like personal loans, credit risk, and bank performance. Through baseline regressions, alternative measures, endogeneity checks, and sub-sample analysis, our findings reveal an inverse relationship between BigTech and FinTech financing with personal loans and credit risk, suggesting severe challenges to traditional
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Firm systematic risk after the Russia–Ukraine invasion Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Stefano Piserà, Laura Chiaramonte, Andrea Paltrinieri, Flavio Pichler
We explore the systematic risk effects of the Russia–Ukraine war on European non-financial firms during the period 2021Q1–2022Q4. Using quarterly firm-level data, we find that, after the Russia–Ukraine conflict, European non-financial firms experienced a statistically significant increase of systematic risk (Beta). Moreover, we also find that firms with higher foreign sales reduced their exposure to
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Analysts’ recommendations on peer-relative comparable sustainability disclosure Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Jamal A. Nazari, Ehsan Poursoleyman
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Big data analytics and environmental performance: The moderating role of internationalization Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Hai Le, Kim-Chi Vu
This study investigates the influence of big data analytics on environmental performance in the context of US Fortune 500 listed internationalizing companies from 2010 to 2021. Grounded in organizational learning theory, our results highlight BDA's positive impact, enabling firms to adapt and enhance environmental practices through
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Social networks and start-up funding Finance Research Letters (IF 10.4) Pub Date : 2024-05-03 Alex Annan Abakah, Gunchang Kim, Hyacinthe Yirlier Somé
This paper examines whether aggregate social networks influence start-up firms’ access to external funding. We find that start-ups in U.S. counties with higher social proximity to start-up funding (SPF) attract a larger investor base and secure more capital. The results are robust to several alternate specifications. We also show that start-ups in counties with higher SPF have high survival rates and
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Asset allocation combining macro and micro information–Empirical test based on entropy pool model Finance Research Letters (IF 10.4) Pub Date : 2024-04-27 Tianyuan Li, Ping Chen
Macroeconomic environment is an essential factor affecting asset return, but it is difficult to construct portfolios using macro information quantitatively in traditional models. In this paper, we extend the Black-Litterman framework to build an efficient portfolio by using views containing macro information and prior market distribution reflecting micro information. In order to enhance the model's
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Female CEOs with a squeeze of narcissism: A perfect cocktail for corporate performance? Finance Research Letters (IF 10.4) Pub Date : 2024-04-27 Tom Aabo, Sara Korsdal Rønnow
Narcissism is prevalent in the upper echelons, and CEO narcissism has been shown to affect corporate outcomes (although not corporate performance in a significant and robust way). We argue that narcissism may be performance enhancing in the context of female CEOs because female CEOs are unique – based on both nurture (i.e., the double bind) and nature (i.e., evolutionary traits) – in being able to
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Blockchain technology and internal control effectiveness Finance Research Letters (IF 10.4) Pub Date : 2024-04-27 Wentao Ma, Wanyun Li
This paper examines the effectiveness of the internal control mechanisms of blockchain-as-a-service (BaaS) providers. Given the lack of classification in the blockchain industry, we conduct text mining of official filings to identify BaaS providers and compare their internal control issues with those of matched firms in other industries. Our findings, which offer pivotal insights for policymakers and
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Do sanctions trigger financial crises? Finance Research Letters (IF 10.4) Pub Date : 2024-04-26 Maria Shchepeleva, Mikhail Stolbov, Laurent Weill
We investigate the effect of sanctions on the occurrence of financial crises. We use the Classification and Regression Tree (CART) algorithm to check whether binary classification mechanism selects sanctions as a predictive factor for the different types of financial crises. We find that trade sanctions matter for the increased probability of banking crises, while military sanctions are associated
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Decoding financial performance of US-listed entities: A sectoral exploration of input efficiency amid stochastic volatility Finance Research Letters (IF 10.4) Pub Date : 2024-04-24 Antony Andrews, Nikeel Nishkar Kumar
This study explores the complex relationship between firm efficiency and stochastic volatility, focusing on how firms utilise inputs to generate sales and the impact of financial shocks on efficiency levels. Utilising a dataset of 476 U.S. firms across 23 sectors from 2010 to 2022, it integrates stochastic volatility into efficiency analysis, treating volatility as an evolving, unobserved process diverging
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The impact of the capital gains tax on the Korean derivatives market Finance Research Letters (IF 10.4) Pub Date : 2024-04-24 Gunther Capelle-Blancard, Emna Khemakhem
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Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence Finance Research Letters (IF 10.4) Pub Date : 2024-04-23 Bin Zhong, Wei Ni Soh, Tze San Ong, Haslinah Muhamad, ChunXi He
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The effect of ex ante litigation risk on corporate fraud: Evidence from securities class action act in Korea Finance Research Letters (IF 10.4) Pub Date : 2024-04-23 Seungho Choi, Yong Kyu Gam, Yong Hyuck Kim, Hojong Shin
Using the phased adoption of the Securities Class Action (SCA) Act in South Korea as a quasi-exogenous event escalating ex ante litigation risks for Korean firms, we explore the effect of heightened litigation risks on firms’ involvement in fraudulent activities. We find that, following the implementation of the SCA Act, companies affected by the new legislation are more likely to reduce instances
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Unmasking the carbon conundrum: How emissions impact stock price crash risk Finance Research Letters (IF 10.4) Pub Date : 2024-04-23 Vuong Thao Tran, Dinh Hoang Bach Phan, Chwee-Ming Tee, Dat Thanh Nguyen
This study examines the influence of carbon risk on stock price crash risk. Using a comprehensive dataset of 3,417 US companies from 2006 to 2021, we provide evidence that carbon risk is significantly linked to a higher crash risk for firms. Moreover, our findings suggest that this positive association is more pronounced during the Democratic presidency and to companies operating in carbon-intensive
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Revisiting seasonality in cryptocurrencies Finance Research Letters (IF 10.4) Pub Date : 2024-04-21 Lukas Mueller
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Can ChatGPT improve investment decisions? From a portfolio management perspective Finance Research Letters (IF 10.4) Pub Date : 2024-04-21 Hyungjin Ko, Jaewook Lee
We examine ChatGPT, a prominent Large Language Model (LLM), in supporting portfolio management with a focus on asset selection and diversification through quantitative methods. We use ChatGPT to select assets from various asset classes and evaluate the diversification effect of its selections. Our results suggest that ChatGPT’s selections are statistically significantly better in diversity index than
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Can asymmetry, long memory, and current return information improve crude oil volatility prediction? ——Evidence from ASHARV-MIDAS model Finance Research Letters (IF 10.4) Pub Date : 2024-04-21 Zhenlong Chen, Junjie Liu, Xiaozhen Hao
We propose an ASHARV-MIDAS model that incorporates the asymmetric and long-memory characteristics of financial asset returns, while integrating current return information into the volatility equation to enhance prediction accuracy. Additionally, we derive the lag order expression and conditional variance of short-term volatility in the novel model to analyze its distinction from the classical GARCH-MIDAS
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Is gold always a safe haven? Finance Research Letters (IF 10.4) Pub Date : 2024-04-20 Michael Ryan, Shaen Corbet, Les Oxley
This study reexamines the long-held view of gold as a universal safe haven during stock market downturns. Utilising a dataset from 1979 to 2020, we investigate the conditional nature of gold’s safe-haven status with the S&P 500 index, revealing that the specific drivers of market declines determine the extent of gold’s safe-haven status. Notably, gold’s protective efficacy is pronounced during downturns
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Geopolitical risk and the dynamics of REITs returns Finance Research Letters (IF 10.4) Pub Date : 2024-04-20 Alain Coën, Aurélie Desfleurs
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Effects of incomplete information on risk management Finance Research Letters (IF 10.4) Pub Date : 2024-04-19 Hwa-Sung Kim
Recent research shows that while the creditors’ interests determine an issuer’s hedging policy, creditors observe incomplete information regarding the cash flow. This study examines hedging effects with incomplete information through a real-option model, thereby deriving associated implications. We show that the difference in firm values between hedged and unhedged policies increases with more incomplete
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Digital money creation and algorithmic stablecoin run Finance Research Letters (IF 10.4) Pub Date : 2024-04-18 Kanis Saengchote, Krislert Samphantharak
This study examines the downfall of Iron Finance's algorithmic stablecoin in June 2021 and draws parallels with the Terra–Luna (UST) collapse in May 2022. Using transaction-level blockchain data, we dissect the events leading to Iron Finance's failure, unveiling algorithmic stablecoins’ inherent vulnerabilities. We highlight the disproportionate impact on retail investors, a pattern also mirrored in
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Decoding herding dynamics in the generative AI investment amid key technological advancements: A timeline perspective Finance Research Letters (IF 10.4) Pub Date : 2024-04-18 Haibo Wang
This study, using two herding dynamics metrics and Glosten–Jagannathan–Runkle Generalized Autoregressive Conditional Heteroskedasticity (GJR-GARCH) model, forecasts market trends, captures asymmetric volatility, and reveals the generative AI (GenAI) ecosystem's impact on individual assets’ returns. Results of this study highlight distinctive traits of each GenAI equity, crucial for strategic positioning
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The effects of manager sentiment in financial disclosure: Perspectives of operational efficiency and market reaction Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Chunlan Wang, Jianxuan Xin, Fangfang Sun, Yan Shi, Yuxuan Du
This study constructs a measure of managerial optimism using textual and nonparametric estimation methods, exploring its impact on company operational efficiency and market reactions. Findings indicate that managerial optimism positively influences stock price returns over the subsequent year by enhancing internal operational efficiency and reducing analyst forecast dispersion, with a more pronounced
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Impact of ESG regulation on stock market returns: Investor responses to a reasonable assurance mandate Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Dharen Kumar Pandey, Vineeta Kumari, Alessia Palma, John W. Goodell
How do stocks respond to environmental, social, and governance (ESG) regulatory interventions, and in what way do ESG reputations influence the magnitude of such responses? Through an event study approach, we investigate how establishing a mandate for "reasonable assurance" on ESG metrics affected market and firm-level returns in India. Findings reveal persistent negative post-event cumulative abnormal
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Does increased digital transformation promote a firm's financial performance? New insights from the quantile approach Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Dung Anh Vu, Thinh Van Nguyen, Quang Minh Nhu, Tuyen Quang Tran
When studying how digital transformation affects company performance, a phenomenon known as the "digitalization paradox" frequently emerges. In previous studies, however, an average estimate has often been used to assess the relationship between digital transformation and firm performance. Using a fixed-effects quantile technique, this study examines the heterogeneous effect of digital transformation
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Shrinkage and thresholding approaches for expected utility portfolios: An analysis in terms of predictive ability Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Sumanjay Dutta, Shashi Jain
In this paper, we estimate Expected Utility Portfolios (EUPs) in high-dimensional, low-sample settings using various covariance matrix estimation methods, including shrinkage and thresholding-based methods. We perform synthetic experiments comparing these methods, using Average Out-of-Sample Variance (AOV) for Global Minimum Variance (GMV) portfolios and Average Out-of-Sample Utility (AOU) for EUPs
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Corporate mergers and acquisitions: A strategic approach to mitigate expected default frequency Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Haoyang Wu, Ziyan Jiao, Shipeng Wang, Zhiruo Wu
This study investigates the influence of corporate mergers and acquisitions on debt default risk by analyzing a dataset of 14,990 A-share listed companies from 2010 to 2021. The results demonstrate that corporate mergers and acquisitions effectively mitigate expected default frequency, a conclusion that withstands a variety of robustness checks. Through mechanism testing, it's found that mergers and
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US dollar and oil market uncertainty: New evidence from explainable machine learning Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Baris Kocaarslan
This study uses the CatBoost algorithm along with the Shapley Additive Explanation method to explore the link between the US dollar and oil market uncertainty, while also considering other macroeconomic factors. We find that the US dollar is the most influential factor affecting oil market uncertainty compared to other economic risks and uncertainties. Increased levels of the US dollar are significantly
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From governance to stability: How party organizations in private enterprises influence stock price crash risk Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Huan Wang, Shui Li, Hengtao Liu
This article delves into the data of A-share listed private companies from 2010 to 2022, utilizing a DID model to conduct a comprehensive study on how the establishment of party organizations affects the risk of stock price crashes. The research reveals that party organizations significantly mitigate the risk of stock price crashes in private enterprises, particularly in areas with higher marketization
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Family firm successions: First-generation transitions in Latvia Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Jānis Bērziņš, Anete Pajuste
We examine the emergence, succession, and performance of the initial cohort of family firms in Latvia. Latvia offers a natural setting to examine succession challenges faced by first-generation firms because a majority of these firms were established shortly after the country regained independence in the early 1990s. Our findings indicate that in 44% of sample firms the founding family did not have
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The impact of geopolitical risk on sustainable markets: A quantile-time-frequency analysis Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Mohamad Husam Helmi, Ahmed H. Elsayed, Rabeh Khalfaoui
We examine the impact of Geopolitical Risk (GPR) on green, clean, and socially responsible markets by employing the newly proposed Wavelet Quantile Correlation, Cross-quantilogram and Causality-in-quantiles. Unlike earlier studies, we incorporate the GPR index to encompass the risk linked to conflict, acts of terrorism, and political tensions. In brief, our findings show that GPR emerges as a significant
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Environmental protection tax law and corporate ESG performance Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Yujie Li, Ziyan Hua
We analyze the bond between environmental protection tax law (EPTL) and corporate environmental, social, and governance (ESG) performance and explore the mediating role of corporate green technological innovation between the two. The study reveals a significant positive correlation between implementing EPTL and corporate ESG performance, with corporate green technological innovation acting as an intermediary
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Heterogeneous dependence of the FinTech Index with Global Systemically Important Banks (G-SIBs) Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Hongjun Zeng, Mohammad Zoynul Abedin, Brian Lucey
This paper aims to investigate the Granger causality relationship in quantile between the FinTech Index and globally systemically important banks (G-SIBs). The result was observed that at the median and under conditions of extreme quantiles in the FinTech Index, there was no Granger causality relationship between the FinTech Index and the vast majority of systemically important banks. Our research
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CFO narcissism and corporate digital transformation✰ Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Wenyun Yao, Mengjiao Ni, Yuhang Qian, Shujing Yang, Xiaona Cui
CFO narcissism plays an essential role in the corporate digital transformation. This study empirically examines the relationship between CFO narcissism and corporate digital transformation using non-financial listed companies in the Shanghai and Shenzhen stock markets from 2010 to 2021 as a research sample. We found that CFOs' narcissistic tendencies promoted a risk-taking spirit, stronger decision-making
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FinTech and banks: Strategic partnerships that circumvent state usury laws Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Gregory Elliehausen, Simona M. Hannon
This paper investigates the role of interest rate regulation of consumer credit and institutional risk segmentation in FinTech lenders’ efforts to solicit new customers in the personal loan market. We find that strategic partnerships between FinTech companies and specialist banks target marginal-risk, near-prime and low-prime consumers, living in states with low interest rate ceilings for unsecured
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A critical analysis of the Weighted Least Squares Monte Carlo method for pricing American options Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 R. Mark Reesor, Lars Stentoft, Xiaotian Zhu
Least-squares Monte Carlo generates regression-based continuation value estimators that are heteroscedastic. Fabozzi et al. (2017) propose weighted least-squares regression to correct for this. We show that heteroscedastic-corrected estimators are more accurate than uncorrected estimators far from the exercise boundary and where the exercise decision is obvious. However, the corrected estimators do
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Assessing the volatility of green firms Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Lorán Chollete, Keener Hughen, Ching-Chih Lu, Weijia Peng
Environmentally responsible (‘green’) firms have important asset pricing implications. Whilst green firms’ performance has been formally studied in terms of returns and pricing (Bolton and Kacperczyk, 2022; Pástor et al., 2022), far less is known about their volatility. We analyze the volatility of green and brown firms from 2012 to 2021, through the multiple lens of GARCH, machine learning, and historical
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Macroeconomic impacts of monetary and fiscal policy in the euro area in times of shifting policies: A SVAR approach Finance Research Letters (IF 10.4) Pub Date : 2024-04-13 Vasja Rant, Anja Puc, Mitja Čok, Miroslav Verbič
This paper analyses the impacts of monetary and fiscal policy of the euro area on output and inflation between 2005 and 2022 using a structural vector autoregressive (SVAR) approach. We employ three alternative indicators of monetary policy, alongside government spending and revenue as fiscal variables to estimate the effects across different subperiods. The findings reveal that monetary policy tightening
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Greenhouse gas emissions and global real economic activities Finance Research Letters (IF 10.4) Pub Date : 2024-04-12 Zhonglu Chen, Chuan Wang, Fan Bai
We evaluate the impact mechanism between global real economic activities and greenhouse gas emissions (GHGs). First, we find a feedback relationship between global real economic activities and GHGs. However, we find that only reduced global real economic activities can significantly decrease GHGs, while both increases and decreases in GHGs have an impact on global real economic activities. Furthermore
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Debt vulnerabilities and house price responses to external shocks Finance Research Letters (IF 10.4) Pub Date : 2024-04-12 Hyunjoon Lim
This paper investigates whether the responses of house prices to external shocks, including US monetary policy and global geopolitical risk shocks vary, depending on country-specific vulnerabilities. We find that the responses of emerging market economies’ housing prices to both US monetary policy shocks and geopolitical risk shocks are higher in magnitude and duration than those of advanced economies
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Executive financial background, external audit quality and shadow banking in non-financial firms Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Xiaodong Huang, Lingling Luo
The absence of formal financial services in the face of the actual economy's transition from old to new sources of energy and development modes has led to the emergence of a widespread shadow banking sector. Based on the high-order ladder theory, this paper examines the influence of executives' financial background on non-financial firms' shadow banking. The finding reveals a positive impact of executive
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Intellectual property protection and M&A performance Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Weibo Li, Bingru Yuan
This investigation delves into the connection between the safeguarding of intellectual property and the outcomes of corporate mergers and acquisitions (M&As) and the mechanisms underlying this relationship. The research uses yearly data from 2009 to 2022, encompassing A-share listed companies in Shanghai and Shenzhen, and empirically examines how intellectual property protection influences corporate
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Commercial paper popularization and enterprise risk taking Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Mingguo Huangfu, Zejun Wang, Jiatong Li, Xinhai Ye, Xiaoye Wang, Mengyao Chen
This paper constructs accounts receivable commercial paper indicators based on the choice of payment instruments when enterprises sell on credit and selects listed manufacturing enterprises from 2015 to 2022 as data samples for the study. It is found that increasing the proportion of commercial paper payments in credit sales can effectively mitigate the risk-taking of enterprises; the establishment
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Commonality in volatility among green, brown, and sustainable energy indices Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Ameet Kumar Banerjee, Ahmet Sensoy, Molla Ramizur Rahman, Alessia Palma
Based on research conducted by Chordia et al. in 2000, we analyzed the volatility of energy indices to determine whether there is a commonality among them. Our dataset included green, sustainable, and brown energy indices, and we discovered that there is indeed a commonality in energy markets, with brown energy exhibiting the least commonality. Furthermore, we found that the commonality in volatility
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From symbolic to substantive green innovation: How does ESG ratings optimize corporate green innovation structure Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Zhihe Zhang, Yufei Hou, Zixuan Li, Mulin Li
Green innovation, primarily substantive green innovation, is critical for improving corporate sustainable development. In contrast to existing literature, this paper examines how environment, society, and governance (ESG) optimizes corporate green innovation structure from an innovation motivation perspective. Based on A-share listed firms, this study reveals a significant enhancement of ESG ratings
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Market liquidity, credit maturity structure and asset mismatch in manufacturing firms Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Lianjun Yao, Yuting Qiu
Based on the period from 2011 to 2021 and considering macroeconomic data, this paper analyzes the relationship between market liquidity and asset mismatch in manufacturing firms. Specifically, this paper reveals that market liquidity can mitigate manufacturing firms` asset mismatch by optimizing credit maturity structure. Further, heterogeneous effects exist in the impact of the policy above, both
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How does digital transformation promote supply chain diversification? From the perspective of supply chain transaction costs Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Junjie Cai, Ismawati Sharkawi, Shairil Izwan Taasim
Companies must implement digital transformation to achieve supply chain diversification with the current volatile economic conditions, which is crucial for their survival and as a fundamental measure to ensure industrial supply chain resilience and security. Based on A-listed companies, this paper systematically examines the impact of digital transformation on supply chain diversification, exploring
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CEO overconfidence and investor sentiment in M&A decisions Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Wei-Ying Nie, Kuang-Chieh Yen
This study investigates the interactive impact of CEO overconfidence and investor sentiment on merger behavior in U.S. firms. We find that the influence of CEO overconfidence on merger frequency is stronger during periods of high investor sentiment, diminishing in low sentiment times. It suggests that investor sentiment is a more dominant determinant than CEO overconfidence in shaping merger frequency
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A bibliometric and systemic literature review of biodiversity finance Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Mark C. Hutchinson, Brian Lucey
This study presents a short bibliometric analysis of biodiversity finance, exposing a literature fragmented across researchers, institutions, and journals. Six focal areas emerge, with Conservation, Conservation Finance, and Ecosystem Finance prominent. Thematic emphasis revolves around biodiversity challenges and the inefficiency of financial mechanisms in addressing them. Our analysis reveals an
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The role of principal-agent in corporate financialization and green innovation Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Yijing Huang, Zongyu Xu
This paper explores the relationship between corporate financialization and green innovation with a sample of A-share listed companies in China from 2012 to 2022. It is found that the crowding-out effect of corporate financialization on green innovation is greater than the reservoir effect, thus inhibiting green innovation. However, internal control capability and equity incentives can alleviate principal-agent
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The role of FinTech lenders in mortgage market: Evidence from corporate relocations Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Shiang Liu, Changyu Yang
This study investigates how FinTech lenders respond to the surge in mortgage demand caused by corporate headquarter relocations. We find that FinTech lenders tend to increase mortgage supply and loosen underwriting criteria as compared to non-FinTech lenders. The competitive advantage obtained from mortgage securitization enables FinTech lenders to capture growth opportunities.
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Frog in the Pan and the market-state effect on momentum Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Valentina Galvani
Momentum profitability depends on the market state, with protracted market gains (UP state) heralding momentum profits and prolonged market declines (DOWN state) ushering momentum losses. Previous literature documents a monotonic negative relationship between information discreteness and momentum, consistent with the Frog in the Pan (FIP) hypothesis. This study shows that the relationship is exclusive
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The dynamics of informed trading around corporate bankruptcies Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Viet Anh Dang, Dinh Trung Nguyen, Thu Phuong Pham, Ralf Zurbruegg
We investigate the dynamics of informed trading both before and after corporate bankruptcy announcements using high frequency data. Our findings reveal that pre-announcement informed selling attenuates subsequent announcement returns, with this effect being weaker for firms receiving extensive pre-announcement media coverage or adverse news sentiment. We also find that post-announcement informed trading
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Addressing climate challenges through ESG-real estate investment strategies: An asset allocation perspective Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Massimo Biasin, Andrea Delle Foglie, Emanuela Giacomini
Real estate plays a major role in environmental impact, contributing to nearly 39 % of global emissions and significantly influencing climate change. Using a sample of European REITs (Real Estate Investment Trusts) and real estate companies, this study examines the risk-adjusted performance of real estate investments concerning their ESG (Environmental, Social, and Governance) performance, comparing
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Corporate social responsibility and corporate fraud: The mediating effect of analyst attention Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Ying Wang, Peisen Tai, Mengmiao Pang
This article delves into the relationship between corporate social responsibility (CSR) and corporate fraud from the perspective of analyst attention. By selecting listed companies as research samples, the regression results demonstrate that the manifestation of CSR inhibits the occurrence of corporate fraud, reducing both the tendency and intensity of fraud. Analyst attention plays a partial mediating