Finance Research Letters最新文献

{"title":"Evidence from financial freedom moderating the relationship between government intervention and financial stability","authors":"Chengyonghui Duan, Wei Ni Soh, Tze San Ong, Norhuda Bt Abdul Rahim","doi":"10.1016/j.frl.2024.106556","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106556","url":null,"abstract":"This article mainly explores the moderating effect of financial freedom on the effectiveness of government intervention in financial stability. To find more effective and accurate intervention measures, this article compares government intervention from two aspects: fiscal policy, represented by government spending and monetary policy, represented by monetary freedom. Financial stability is no longer a single stability standard but an overall multi-faceted stability, from the three dimensions of household savings, credit growth rate, and macro economy which is the deviation of GDP growth rate, from micro to macro measures of financial stability. This paper explores the moderating effect of financial institution efficiency on the effectiveness of government intervention through the micro-enterprise environment level. This article selects data from 136 countries worldwide and uses the system GMM model to verify the empirical results from 2016 to 2022. The results show that the interaction between financial freedom and government spending has a positive impact on household savings, a negative effect on credit growth rate, and a positive impact on the deviation of GDP growth rate. The interaction between financial freedom and monetary freedom positively impacts household savings, credit growth, and the GDP deviation. According to the marginal effect of the moderating variable financial freedom, the moderating effect of financial freedom on monetary freedom is stronger than that of government spending. Monetary policy is more effective than fiscal policy. In countries with a higher degree of financial freedom, fiscal policy has the most significant impact on the credit market, and monetary policy has the greatest impact on household savings environment. In summary, this study compares fiscal and monetary policy and studies the effects of financial freedom, which is the autonomy and efficiency of financial institutions. Different dimensions of financial stability through regulating fiscal policy and monetary policy based on the same long-term data. It aims to find the most effective, accurate, and influential government intervention methods and provide policy references and guidance for the country to implement effective interventions.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"40 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142805329","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The effect of financial derivatives on wealth inequality","authors":"Christos Angelopoulos, Christos Giannikos","doi":"10.1016/j.frl.2024.106587","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106587","url":null,"abstract":"This paper explores the relationship between financial derivatives and wealth inequality. While previous studies have acknowledged a connection between finance and inequality, the precise nature of this relationship remains uncertain. Our study aims to contribute to this discourse by isolating the impact of financial derivatives on wealth distribution, controlling for other financial factors. Using data for 15 countries from 2001–2021, we examine the relationship of exchange-traded derivatives from the Bank of International Settlements and pre-income tax wealth Gini coefficients for adults from the World Inequality Database. Employing panel econometric techniques and controlling for country fixed effects, we analyze the dynamic relationship between these variables. Contrary to conventional financial theory, which often views derivatives as redundant assets, our findings reveal a positive, significant and robust association between wealth inequality and the use of derivatives. This challenges prevailing assumptions and underscores the importance of derivatives in shaping global wealth distribution dynamics.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"07 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142805372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Strategic IPO timing of technology innovation-driven enterprises: A differential game analysis of market returns, disclosure costs, and industry dynamics","authors":"Changheng Zhao, Wenda Zhu","doi":"10.1016/j.frl.2024.106588","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106588","url":null,"abstract":"This article develops a dual-oligopoly differential game model to analyze how technological impacts influence product market competition. This model undertakes a systematic examination of the strategic balancing act enterprises engage in when confronted with technological innovation opportunities, weighing market returns against information disclosure costs in the context of IPO decision-making. The findings reveal that the temporal dimension of technological catch-up and the firms’ intrinsic innovation capabilities are pivotal determinants of IPO timing. Specifically, enterprises that have achieved rapid technological parity and possess robust innovative capacities are more prone to expedite IPOs, seeking to secure funding for further technological advancements and market expansion endeavors. Conversely, elevated information disclosure costs may incentivize companies to postpone IPOs, aiming to shield their technological assets and market strategies from premature competitor scrutiny. Additionally, the study highlights the paradoxical influence of intense market competition: while it incentivizes early IPOs to bolster resource acquisition for competitive strategies, it also exacerbates the detrimental effects of disclosure costs on IPO timing. In conclusion, this investigation not only contributes to the theoretical corpus on IPO decision-making but also offers pragmatic guidance for corporate executives in crafting IPO strategies and serves as a valuable reference for fostering the sustainable development of capital markets.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"14 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142805327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Can data assets promote green innovation in enterprises?","authors":"Jun Zhang, Tangkun Xie, Xiaoran Kong, Bo Liu, Wenke Zhang","doi":"10.1016/j.frl.2024.106554","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106554","url":null,"abstract":"This study found that the more data assets held by a company, the higher its level of green innovation. This result was still significant after the instrumental variable method, exogenous policy shock mitigation endogeneity and a series of robustness tests. Data assets promote green innovation by alleviating the constraints on corporate financing and increasing the efficiency of green research and development. Further analysis showed that data assets could continuously increase the level of green innovation and promote enterprises to choose to apply for green invention patents. This study provides useful insights for identifying and utilizing the value of data resources.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"23 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142841970","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Can digital transformation promote high-technology firms’ trans-regional investment?","authors":"Hongrui Yang, Yuan Zhang","doi":"10.1016/j.frl.2024.106575","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106575","url":null,"abstract":"This study investigates the correlation between the trans-regional investment of high-tech firms and digital transformation. We employ a two-fixed model based on listed firms from 2011 to 2022 to investigate the effects and fundamental mechanisms. Findings suggest that digital transformation can encourage high-tech firms to invest in trans-regional markets. This investment is accomplished by reducing costs, eliminating information asymmetry, and improving specialization and division of labor. This study examines how digital economic development is altering regional economic geography on a small scale, providing novel evidence and insights.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"59 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142841967","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bilateral data asset matching in digital innovation ecosystems: A regret theory approach","authors":"Zidan Shan, Yaqi Wang","doi":"10.1016/j.frl.2024.106582","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106582","url":null,"abstract":"This study addresses the bilateral matching of data assets with expected levels in digital innovation ecosystems, incorporating regret-avoidance behavior. First, given the potential hesitation between two parties throughout the matching process, expressing preference information using probability hesitant fuzzy sets is reasonable. Second, the Lance scoring function best captures the gap in expectation and satisfaction between the matching parties. Based on regret theory, we develop a matching strategy that considers both parties’ utilities and satisfaction levels. We construct an optimization model to determine criteria weights using a novel Lance distance metric. Subsequently, a multi-objective optimization model is formulated to maximize satisfaction while ensuring stability in the supply–demand matching process. A numerical example underscores the suggested method's effectiveness and shows its practical applicability in data asset matching scenarios. This study advances the field by integrating psychological factors and sophisticated fuzzy set theory into the decision-making process for allocating data assets in digital ecosystems.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"28 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142841968","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How does local government debt governance affect corporate credit mismatches? Evidence from implementing the New Budget Law","authors":"Jie Luo, Jie Li","doi":"10.1016/j.frl.2024.106576","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106576","url":null,"abstract":"This study explores the impact of the New Budget Law, representing local government debt governance, on corporate credit discrepancies. Findings indicate that the New Budget Law can reduce corporate credit mismatch allocation based on the data from 2011 to 2023. Furthermore, the positive effects are achieved by reducing financing costs, increasing the availability of corporate finance, and reducing the negative impact of corporate credit mismatch. The results contribute to the restructuring of the local debt management system by providing a basis for decision-making and insights into establishing an efficient government and attaining robust economic growth.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"81 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142841966","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"What are environmental, social, and governance scores measuring? The role of outcome and impact indicators in ESG scores","authors":"Santiago Guerrero, Juan Pablo Viteri","doi":"10.1016/j.frl.2024.106529","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106529","url":null,"abstract":"Environmental, social, and governance (ESG) ratings are fundamental tools; however, their underlying methodologies often involve complex aggregation processes. Although research on ESG has been expanding, the influence of specific indicators and categories on overall ESG scores remains insufficiently explored. This paper examines the contributions of social and environmental outcome and impact indicators to the ESG scores provided by the London Stock Exchange Group (LSEG). Our analysis reveals that among the 186 indicators comprising the LSEG ESG scores, outcome and impact indicators contribute only 18% to 37% of the total score. The remaining contribution comes from processes and policies indicators.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"261 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142762999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The asymmetric effects of digital inclusive finance’s breadth and depth on the digital transformation of agribusinesses","authors":"Wenyi Li, Zhen Yang, Wenna Wang","doi":"10.1016/j.frl.2024.106528","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106528","url":null,"abstract":"Drawing on data from agribusinesses spanning 2000 to 2022, we uncover the non-linear effects of digital inclusive finance breadth and depth on their digital transformation. First, a U-shaped relationship exists between the breadth and depth of digital inclusive finance and the digital transformation of agribusinesses. Second, cash flow moderates the U-shaped relationship between the breadth of digital inclusive finance and digital transformation. This moderation flattens the U-shape, potentially inverting it beyond a certain point. Notably, cash flow does not moderate the relationship between the depth of digital inclusive finance and digital transformation. Third, the U-shaped relationship between the breadth and depth of digital inclusive finance and agribusinesses’ digital transformation is significant only in the eastern and central regions and is observed exclusively before the onset of the COVID-19 pandemic.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"2 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142805339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Impact of fintech and financial inclusion on sustainable development goals: Evidence from cross country analysis","authors":"Priya Choudhary, Chinmoy Ghosh, M Thenmozhi","doi":"10.1016/j.frl.2024.106573","DOIUrl":"https://doi.org/10.1016/j.frl.2024.106573","url":null,"abstract":"We investigate the dual influence of fintech and financial inclusion on diverse sustainable development goals, including SDG 2, 3, 4, 8 and 9, based on panel data of 86 countries. A quantile regression analysis shows that fintech has a favorable influence on education at higher quantiles. Additionally, Fintech and financial inclusion positively enhance GDP (SDG 8) and internet (SDG 9) upto 50th quantiles, but their impact decreases at higher percentiles. The findings suggest that fintech and financial inclusion can drive progress towards achieving SDGs by encouraging economic growth, supporting zero hunger, reducing maternal deaths, enhancing quality education, and empowering innovation and infrastructure. Further analysis demonstrates that financial inclusion and SDGs can promote each other, and similarly, fintech and SDGs can mutually reinforce each other.","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"81 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2024-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142805330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}