International Review of Economics & Finance最新文献

{"title":"Preference for consumption predictability and the equity premium puzzle","authors":"Steven P. Cassou ,&nbsp;Jesús Vázquez","doi":"10.1016/j.iref.2025.104381","DOIUrl":"10.1016/j.iref.2025.104381","url":null,"abstract":"<div><div>This paper provides a solution to the equity premium puzzle. We modify the standard constant relative risk aversion utility function by assuming that the representative consumer also has a preference for consumption predictability. While keeping the conditional mean of the stochastic discount factor close to one, this feature not only reinforces consumption smoothing, but it also results in large increases in the variability of the stochastic discount factor which is crucial for this solution to the puzzle. The large increase in variability for the stochastic discount factor in our modified model is primarily determined by large, realized consumption forecast errors. Although these oversized forecast errors arise infrequently, when they do arise, they result in very high aversion to risk and enhanced interest in smoothing consumption.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104381"},"PeriodicalIF":4.8,"publicationDate":"2025-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144679236","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":"Artificial intelligence applications and audit fees: An empirical study","authors":"Jing Lai","doi":"10.1016/j.iref.2025.104421","DOIUrl":"10.1016/j.iref.2025.104421","url":null,"abstract":"<div><div>With the rapid integration of artificial intelligence (AI) technologies into corporate finance and governance, their economic implications for auditing have garnered increasing attention. This study employs a sample of Chinese A-share listed companies from 2011 to 2022 to empirically examine the impact of corporate AI adoption on audit fees and the underlying mechanisms. The findings reveal that AI adoption significantly reduces audit fees. Mechanism tests indicate that AI applications mitigate information asymmetry and enhance the quality of accounting information, thereby lowering audit fees. Furthermore, the study identifies that management expense levels and asset intensity exert significant negative moderating effects on this relationship, with the fee-reduction effect of AI being more pronounced in state-owned enterprises. This research extends the literature on the economic consequences of AI technology in external corporate governance and provides empirical insights for risk pricing and procedural adjustments in the audit industry amidst digital transformation.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104421"},"PeriodicalIF":4.8,"publicationDate":"2025-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144663664","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 differential impact of enterprise digital transformation on ambidextrous innovation: Evidence from China","authors":"Ting Li ,&nbsp;Shengxu Xiong","doi":"10.1016/j.iref.2025.104436","DOIUrl":"10.1016/j.iref.2025.104436","url":null,"abstract":"<div><div>Based on patent application data from A-share listed companies on the Shanghai and Shenzhen stock exchanges in China between 2013 and 2022, this study examines the differential impact and mechanisms of enterprise digital transformation on ambidextrous innovation. The results show that enterprise digital transformation significantly promotes both exploratory and exploitative innovation, with a more pronounced effect on exploratory innovation. These conclusions remain valid after a series of robustness tests. Mechanism analysis reveals that intellectual capital mediates the relationship between digital transformation and exploratory innovation, while structural capital and human capital within intellectual capital mediate the relationship between digital transformation and exploitative innovation. This research provides theoretical insights into the relationship between enterprise digital transformation and ambidextrous innovation, along with practical recommendations for enterprises to enhance innovation through digital transformation.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104436"},"PeriodicalIF":4.8,"publicationDate":"2025-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144666075","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 digital revolution in banking: Unpacking risk management in the age of transformation","authors":"Zheyan Yu ,&nbsp;Jiacheng Liu","doi":"10.1016/j.iref.2025.104444","DOIUrl":"10.1016/j.iref.2025.104444","url":null,"abstract":"<div><div>Digital transformation has become a strategic imperative for commercial banks, reshaping their risk management and operational frameworks. We examine the impact of digital transformation on risk-taking behaviors in China's commercial banking sector, using a unique dataset of 238 banks from 2010 to 2021. The outcomes reveal that digital transformation significantly reduces banks' overall risk-taking levels. Notably, mechanism analysis highlights that enhanced operational efficiency and corporate governance mediate this relationship. Our results demonstrate substantial heterogeneity: smaller banks, urban and rural commercial banks, and institutions in Eastern China benefit more from risk reductions via digital transformation compared to their larger counterparts and those in Central and Western regions. Furthermore, strategic and business-level digitalization exert a more pronounced effect on risk-taking mitigation than managerial-level digitalization. Our findings offer theoretical and practical implications for advancing digital transformation strategies, refining risk management frameworks, and formulating differentiated policies for diverse banking institutions.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104444"},"PeriodicalIF":4.8,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144672622","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":"Carbon pricing and revenue growth valuation risk exposure","authors":"Geeta Duppati","doi":"10.1016/j.iref.2025.104442","DOIUrl":"10.1016/j.iref.2025.104442","url":null,"abstract":"<div><h3>Purpose</h3><div>Two research questions are examined in this study: First, whether carbon prices affect valuation risk exposure to revenue growth? Second, do carbon emission reductions affect the link between carbon pricing and revenue growth valuation risk?</div></div><div><h3>Data &amp; estimation techniques</h3><div>The data used in the study is drawn from secondary sources like the world bank portal and carbon pricing database for the sample period 2016–2022. This study uses different statistical techniques for addressing the research questions raised. These techniques include Univariate analysis, regression analysis- OLS, Quantile regression and System Dynamic GMM regression for robustness checks. This study uses propensity score matching technique for verifying if the sample selection bias affects the results. Pre-diagnostic tests for normality include.</div><div>Shapiro-Wilk Test, Shapiro-Francia Test, Skewness/Kurtosis Test.</div></div><div><h3>Findings</h3><div>The study's findings show that the increase in carbon costs decreases revenue growth thereby increases the valuation risk exposure. A one percent increase in carbon price considerably raises the valuation risk of export trade revenue growth. According to this analysis, the relationship between carbon pricing and revenue growth valuation risk is moderated by lower carbon emissions.</div></div><div><h3>Implications</h3><div>This study shows how carbon pricing affects plastic-intensive companies' revenue growth and policy and regulation. It shows how lower carbon emissions affect carbon pricing and income growth. Revenue growth will be steady for companies that reduce emissions and combat rising costs of carbon. Carbon-intensive companies risk losing income due to market and regulatory pressures.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104442"},"PeriodicalIF":4.8,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144672623","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 we better predict financial crisis? The role of Laplacian-energy-like measure","authors":"Xian Zhao ,&nbsp;Chuangxia Huang ,&nbsp;Xiaoguang Yang ,&nbsp;Jie Cao ,&nbsp;Xin Yang","doi":"10.1016/j.iref.2025.104396","DOIUrl":"10.1016/j.iref.2025.104396","url":null,"abstract":"<div><div>How to accurately and effectively predict financial crisis is one of the crucial and challenging issues in the field of financial risk management. A great number of financial crisis prediction paradigms are strictly limited to macroeconomic indicators, ignoring potential network effects, and the drawbacks are actually obvious. This paper aims to propose early warning models with a novel network topological indicator, the Laplacian-energy-like measure (LEL), to deal with this issue. We construct a series of monthly stock networks of Chinese A-shares and extract the LEL. Then, with the help of the prediction methods of machine learning and ensemble learning, we establish new early warning models involving LEL. Furthermore, we formulate and implement a comprehensive validation strategy to evaluate the predictive performance of our proposed models. Compared with the traditional models with alternative indicators such as network density and investor sentiment index, our proposed models demonstrate the outstanding characteristics of higher scores on the area under the curve, F1-score, accuracy and recall. In addition, by utilizing the Shapley value approach to assess the importance of predictors across diverse early warning models, LEL consistently ranks top two among predictive factors. Finally, the robustness of our proposed models with LEL are further confirmed in the US stock market.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104396"},"PeriodicalIF":4.8,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144663665","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 impact of the registration system reform on firms’ cross-country investment: Empirical evidence from China","authors":"Yuetong Chen ,&nbsp;Pu Zhao ,&nbsp;Yanmei Fan ,&nbsp;Xiaokun Li","doi":"10.1016/j.iref.2025.104440","DOIUrl":"10.1016/j.iref.2025.104440","url":null,"abstract":"<div><div>This paper investigates the impact of the registration-based IPO reform—a pivotal initiative in China's capital market liberalization—on the interregional capital allocation of listed firms. Utilizing a panel dataset of A-share firms listed on the Shanghai and Shenzhen stock exchanges from 2008 to 2022, we employ a two-way fixed effects model to empirically examine the reform's effects and underlying mechanisms. Our findings reveal that the implementation of the registration-based system significantly enhances firms' cross-country capital flows. This effect remains robust across various specifications and robustness checks. Further analysis indicates that improved information disclosure quality and reduced financing constraints serve as key transmission channels through which the reform promotes capital mobility. Moreover, we document substantial heterogeneity in the reform's effects: the positive impact is more pronounced among state-owned enterprises, firms located in eastern China, and larger-sized firms. These findings provide novel evidence on the role of institutional reforms in enhancing capital market efficiency and regional capital reallocation.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104440"},"PeriodicalIF":4.8,"publicationDate":"2025-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144634580","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":"Foreign-funded firms and stock price informativeness: Evidence from Chinese capital markets","authors":"Jianhao Gao (郜建豪) ,&nbsp;Zhenzhou Tu (涂振洲)","doi":"10.1016/j.iref.2025.104431","DOIUrl":"10.1016/j.iref.2025.104431","url":null,"abstract":"<div><div>This study investigates the potential impact of foreign-funded firms on the stock price informativeness of China's capital market. The study utilizes data from China's A-share listed firms spanning from 2011 to 2022. The findings reveal a significant positive correlation between foreign-funded firms and stock price informativeness. Furthermore, the study demonstrates that the positive relationship between foreign-funded firms and stock price informativeness is more pronounced in samples exhibiting higher levels of social responsibility than in those with lower levels. Similarly, in samples characterized by higher levels of product market competition, the positive relationship between foreign-funded firms and stock price informativeness is more significant than in samples with lower levels of competition. The conclusions remain robust after addressing potential endogeneity concerns using four distinct methodological approaches.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104431"},"PeriodicalIF":4.8,"publicationDate":"2025-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144653790","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":"Corporate political connection, rent seeking and government procurement order","authors":"Zhe Wang ,&nbsp;Xuexin Liu ,&nbsp;Xiaoxu Kong ,&nbsp;Jiezheng Zhou","doi":"10.1016/j.iref.2025.104354","DOIUrl":"10.1016/j.iref.2025.104354","url":null,"abstract":"<div><div>Government procurement serves as the primary means through which the government utilizes market mechanisms to forge economic linkages with enterprises. Government procurement orders endow enterprises with ample cash flow, thereby alleviating their financing pressures. Enterprises are highly motivated to secure government procurement orders through both market competition behaviors and non - market behaviors. However, the factors influencing how enterprises obtain these orders remain inadequately explored. Drawing on institutional theory and rent - seeking theory, this paper endeavors to investigate the mechanism by which enterprises acquire government procurement orders via political connections. By incorporating rent - seeking as a moderating variable, it elucidates the specific path through which enterprises' non - market behaviors impact government procurement orders and analyzes the moderating mechanism of the business environment on this causal relationship. The empirical research, based on manually collating government procurement contract data from the China Government Procurement Network and matching data on the political connections and rent - seeking of A - share listed enterprises from 2016 to 2020, reveals that: enterprises' political connections exert a significant positive influence on government procurement orders. Moreover, rent - seeking plays a significant positive moderating role between enterprises' political connections and government procurement orders, while the business environment has a significant negative moderating effect in this regard. Further analysis indicates that for enterprises in regions with an improved business environment and higher fiscal transparency, the efficacy of obtaining government procurement orders through political connections and rent - seeking is notably attenuated. This paper expands the academic research on enterprises' acquisition of government procurement orders through non - market behaviors and offers valuable practical insights for the future improvement of China's government procurement system.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104354"},"PeriodicalIF":4.8,"publicationDate":"2025-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144663667","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":"Dynamic spillovers between global financial stress and uncertainties: Evidence from quantile connectedness","authors":"Zixuan Li ,&nbsp;Shaobo Long ,&nbsp;Xiang Xu","doi":"10.1016/j.iref.2025.104430","DOIUrl":"10.1016/j.iref.2025.104430","url":null,"abstract":"<div><div>This paper investigates the dynamic spillovers between financial stress of global major financial markets and uncertainties. The findings suggest that spillover effects between financial stress and uncertainties vary across quantiles. The spillover effect in extreme markets is significantly higher than that in normal markets. GEPU and IDEMV have the most pronounced spillovers to financial stress, especially in the extreme upper market. Moreover, US is the dominant transmitter of spillover effects to other financial markets, while Japan and India are always net receivers. Rolling-window analysis shows that spillover effects between financial stress and uncertainties are time-varying. Furthermore, the tail spillovers are asymmetric. These findings offer important insights for investors and policymakers to identify potential financial risks and uncertainties in advance and adjust investment and management strategies.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104430"},"PeriodicalIF":4.8,"publicationDate":"2025-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144653786","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}