{"title":"Green finance and household risky financial asset allocation","authors":"Dengquan Wang, Yimeng Ren","doi":"10.1016/j.frl.2025.107780","DOIUrl":"10.1016/j.frl.2025.107780","url":null,"abstract":"<div><div>This paper explores the impact of green finance on household risk financial asset allocation using data from the China Household Finance Survey (CHFS) conducted by Southwestern University of Finance and Economics in 2019, 2021, and 2023. It analyzes the moderating role of the digital economy and urban-rural heterogeneity. The study finds that green finance significantly enhances household risk financial asset allocation, including the probability of participating in risk financial markets and the diversity of risk assets held. The digital economy plays a positive moderating role in the relationship between green finance and household risk financial assets.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107780"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144313660","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 robust is the link between growth and fiscal consolidation under global uncertainties? A reassessment for Sub-Saharan Africa","authors":"Miaomiao Tao , Jamel Saadaoui , Emilson Silva","doi":"10.1016/j.frl.2025.107773","DOIUrl":"10.1016/j.frl.2025.107773","url":null,"abstract":"<div><div>Persistent fiscal imbalances have long challenged Sub-Saharan African (SSA) economies, raising critical questions about the macroeconomic consequences of fiscal consolidation. While past research on advanced economies yields mixed evidence, much less is known about how fiscal tightening affects growth trajectories in developing contexts, particularly under global economic shocks. We reevaluate the growth impact of fiscal consolidation across 37 SSA countries over the 2000–2022 period. Employing an instrumental variable-local projection (IV-LP) approach, we identify the dynamic responses of economic growth to exogenous fiscal shocks while addressing endogeneity concerns. Our findings reveal robust evidence that fiscal consolidation consistently depresses economic growth in SSA. Importantly, this contractionary effect is substantially amplified under conditions of elevated global uncertainty – measured using a range of geopolitical risk and economic policy uncertainty indices. These results challenge recent claims of expansionary austerity in low-income settings and emphasize the need for adaptive policy design. We recommend adopting state-contingent fiscal rules that temporarily pause or soften consolidation efforts during periods of global volatility and resume them during more stable times. Such an approach can help SSA economies mitigate procyclical policy mistakes, preserve growth momentum, and build resilience to external shocks.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107773"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144305003","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":"Disaggregating digital financial inclusion in Africa: Explaining within- and between-country variance","authors":"Kingstone Nyakurukwa, Yudhvir Seetharam, Chimwemwe Chipeta","doi":"10.1016/j.frl.2025.107776","DOIUrl":"10.1016/j.frl.2025.107776","url":null,"abstract":"<div><div>This study examines the extent to which individual- and country-level characteristics account for variations in the use of digital payments across 36 African countries. Using a two-level random intercept multilevel probit model, we analyse cross-sectional data to estimate the probability of digital financial inclusion while accounting for the hierarchical structure of individuals nested within countries. The analysis quantifies the proportion of variance in digital payment usage that is attributable to country-level versus individual-level factors, using intraclass correlation coefficients (ICCs). The results reveal that most of the explained variance (75 %) stems from individual characteristics like age, education, gender, income, employment, and internet access. However, country-level factors;particularly national education levels and employment levels, also play a meaningful role. These findings highlight the importance of both micro- and macro-level determinants in shaping digital financial behaviours and demonstrate the need for context-sensitive policies to promote inclusive digital finance.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107776"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144305005","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":"Educational background of female executives and corporate green innovation","authors":"Qiwen Xie , Jia Li","doi":"10.1016/j.frl.2025.107784","DOIUrl":"10.1016/j.frl.2025.107784","url":null,"abstract":"<div><div>Using data from Chinese listed companies between 2012 and 2023, this paper analyzes the impact of female executives' educational backgrounds on corporate green innovation based on empirical results. The findings demonstrate that female executives with overseas educational backgrounds contribute positively to corporate green innovation, while those with financial educational backgrounds tend to inhibit corporate green innovation. Furthermore, government subsidies play a moderating role in the relationship between female executives' financial educational backgrounds and corporate green innovation.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107784"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144329718","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":"Market volatility across asset classes during U.S. presidential and mid-term elections","authors":"Corrado Botta , Rilwan Sakariyahu","doi":"10.1016/j.frl.2025.107754","DOIUrl":"10.1016/j.frl.2025.107754","url":null,"abstract":"<div><div>Does political uncertainty around elections translate to measurable market effects? This study investigates the impact of the U.S. presidential election on market volatility across different asset classes from 1992 to 2024. Using an event study approach, we document high abnormal volatility in pre-election months and during election weeks and low abnormal volatility in pre-election weeks and election months. The effects vary substantially across asset classes and are amplified during recessions. We examine multiple election characteristics, finding significant roles for political polarization, incumbent status, party changes, election margin, and international tensions.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107754"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144307064","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":"Financial agglomeration, financing costs, and corporate ESG performance","authors":"De Xiao, Xiaotian Xu","doi":"10.1016/j.frl.2025.107786","DOIUrl":"10.1016/j.frl.2025.107786","url":null,"abstract":"<div><div>This study uses 2012–2022 data from non-financial firms in China's A-share market to explore the impact of financial agglomeration and financing costs on ESG performance. Results show that financial agglomeration positively affects ESG, while financing costs have a negative impact. Firm size moderates the relationship between financial agglomeration and ESG, with a significant threshold effect. Additionally, the effects of financial agglomeration and financing costs on ESG vary across different types of firms.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107786"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144500883","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 intensity of media supervision and adjustments in corporate financialization strategies: The catalytic role of artificial intelligence technology","authors":"Keqing Ma , Shan Jiang , Di Wu","doi":"10.1016/j.frl.2025.107788","DOIUrl":"10.1016/j.frl.2025.107788","url":null,"abstract":"<div><div>This study examines non-financial listed companies in China from 2007 to 2023 to investigate the impact of media supervision intensity on corporate financialization, as well as the moderating role of artificial intelligence (AI) in this relationship. The results indicate that stronger media supervision significantly restrains corporate financialization, with this effect varying between loss-making and profit-making firms. Furthermore, AI technology serves as a significant moderator in this relationship, exhibiting distinct effects in high-tech and non-high-tech companies. This research not only deepens the theoretical understanding of corporate financialization but also offers practical insights for strategic decision-making amid evolving media oversight and technological advancement.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107788"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144366090","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 role of blockchain technology in shaping the digital economy: An exploration of financial development","authors":"Mingyuan Chi, Li Li, Jia Zhong","doi":"10.1016/j.frl.2025.107783","DOIUrl":"10.1016/j.frl.2025.107783","url":null,"abstract":"<div><div>The digital economy, as a key driver of global economic growth, is closely linked to emerging technologies and financial systems. Using panel data from 31 Chinese provinces (2007–2023), this study explores how blockchain impacts regional digital economies and the role of financial development. The results indicate that the application of blockchain technology significantly enhances regional digital economic development, with notable variations in its effectiveness between highly open and less open regions. Furthermore, financial development plays a crucial moderating role, with this effect being stronger in high-income regions and weaker in low-income regions.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107783"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144330181","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":"Local official turnover, business environment, and innovation and entrepreneurship","authors":"Yang Yu , Lina Feng","doi":"10.1016/j.frl.2025.107778","DOIUrl":"10.1016/j.frl.2025.107778","url":null,"abstract":"<div><div>Based on panel data at the prefecture-level city level in China, this study investigates the impact of local official turnover on innovation and entrepreneurship effectiveness in their jurisdictions. The findings reveal that local official turnover has a significantly positive effect on innovation and entrepreneurship outcomes, with this effect being more pronounced when the Party Secretary changes. Furthermore, the business environment positively influences innovation and entrepreneurship effectiveness but weakens the direct enhancing effect of local official turnover. Fiscal expenditure on science and technology mediates the relationship between local official turnover and innovation and entrepreneurship outcomes.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107778"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144500884","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":"Do well-connected bank CEOs mitigate the impact of geopolitical risk on bank stability? Evidence from an emerging market","authors":"Shailja Vashisht , Hardeep Singh Mundi","doi":"10.1016/j.frl.2025.107777","DOIUrl":"10.1016/j.frl.2025.107777","url":null,"abstract":"<div><div>We investigate the impact of geopolitical risk on bank stability in an emerging economy, India, and how the social networks of bank CEOs affect this relationship. Our findings establish a negative relationship between geopolitical risk and bank stability. However, well-connected CEOs mitigate these adverse effects through their social network, enhancing bank stability during geopolitical crises. Additionally, bank heterogeneity analysis highlights the roles of size, diversification, and capitalization in mitigating geopolitical risks.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"84 ","pages":"Article 107777"},"PeriodicalIF":7.4,"publicationDate":"2025-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144305032","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}