International Review of Economics & Finance最新文献

{"title":"Revisiting the role of investor sentiment in the stock market","authors":"Quyen Pham ,&nbsp;Huy Pham ,&nbsp;Tra Pham ,&nbsp;Aviral Kumar Tiwari","doi":"10.1016/j.iref.2025.104089","DOIUrl":"10.1016/j.iref.2025.104089","url":null,"abstract":"<div><div>The stock market is a critical determinant of global economic growth, and investor irrational behaviors are remarkable forces that are not only forming stock prices but also determining the stock market's performance. To examine the significant impacts of those irrationalities, various methods have been applied to generate an investor sentiment index. However, isolating the irrational judgments of investors is a challenge and the existing sentiment indices are inefficient. To overcome this shortcoming, this paper develops a new investor sentiment index. We take into account only the irrational part of people's behavior biases that lead to misvaluation in stock markets, neither behavioral biases nor misvaluation per se. We then conducted several robust tests toward stock returns' predictability using time-series data for the U.S. and Chinese markets. Various empirical methods, including OLS, TVP-VAR model, and out-of-sample test are used in this study. Our results confirm the advantages of our index to assess the predictability towards stock returns compared to two common existing measures of investor sentiment: survey-based Consumer Sentiment Index and market-based Baker &amp; Wurgler index. To the best of our knowledge, this is the first study that presents this novel approach to capture the irrationalities of investors.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104089"},"PeriodicalIF":4.8,"publicationDate":"2025-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143785170","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The development, regional differences, and dynamic evolution of China's Green Finance in the context of “Carbon Peaking and Carbon Neutrality”","authors":"Yifan Zhang ,&nbsp;Ke Gao ,&nbsp;Tao Wang ,&nbsp;Shuaina Chi ,&nbsp;Kaiyuan Cui ,&nbsp;Chen Wen","doi":"10.1016/j.iref.2025.104100","DOIUrl":"10.1016/j.iref.2025.104100","url":null,"abstract":"<div><div>Playing a crucial role, Green Finance will realize the goals of Carbon Peaking and Carbon Neutrality. Using the entropy-weight TOPSIS method, this article will estimate the development level of China's Green Finance from 2005 to 2020. Furthermore, Dagum Gini coefficient is used to explore the overall differences, intra-region distinctions and inter-region disparities in the development of China's Green Finance to pinpoint the sources of such variations. By employing Kernel density estimation and Markov chain analysis methods, the dynamic evolution of the distribution is also explored. The findings reveal that from 2005 to 2020, the level of China's Green Finance development depicted an upward trend of fluctuation, with the average comprehensive index value standing at 0.2883, still relatively low. During the observation period, regional disparities in China's Green Finance development were prominent, characterized by a pattern that the finance development in eastern areas was stronger, while the finance development in western areas was weaker, meanwhile the central region and the western region are lower than the annual average, moreover the northeast region fluctuates greatly. The regional disparity is primarily due to the impact of high variability density, contributing an average of 42.345 %. In terms of the dynamic evolution of distribution, Chinese Green Finance development exhibits strong stability, showcasing club convergence characteristics. When considering spatial factors, China's Green Finance development level displays pronounced club convergence tendencies. Focused on national policies and aligned with the actual Green Finance distribution in China, this paper proposes methods and suggestions on how to facilitate the innovative development of Green Finance products, strengthen the internal management of financial institutions, and adopt a strategy for regional coordinated development to narrow the gap in Green Finance development levels among different regions under the background of Carbon Peaking and Carbon Neutrality, thus promoting the development of Green Finance in various regions.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104100"},"PeriodicalIF":4.8,"publicationDate":"2025-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143816851","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":"Quality of accounting information and corporate green innovation performance","authors":"Runfang Xu ,&nbsp;Yixiang Qiao ,&nbsp;Hongjun Lv","doi":"10.1016/j.iref.2025.104094","DOIUrl":"10.1016/j.iref.2025.104094","url":null,"abstract":"<div><div>Drawing upon data from Chinese publicly traded companies over the span of 2009–2022, this study explores the relationship between the quality of accounting Information and the green innovation performance of firms. The empirical results indicate that the quality of accounting information can enhance corporate green innovation performance; The efficiency of management modulates the link between accounting information quality and green innovation achievements, with state - owned and private enterprises showing different patterns. Moreover, the effect of accounting information quality on green innovation performance varies between these two enterprise types; furthermore, the influence of accounting information quality on green innovation performance demonstrates heterogeneity between high-pollution and non-high-pollution enterprises.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104094"},"PeriodicalIF":4.8,"publicationDate":"2025-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143777297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Regional climate change action and corporate ESG performance - Evidence from China","authors":"Zhifang Zhou ,&nbsp;Zhuoxuan Yang ,&nbsp;Huijia Li ,&nbsp;Jinhao Liu","doi":"10.1016/j.iref.2025.104081","DOIUrl":"10.1016/j.iref.2025.104081","url":null,"abstract":"<div><div>This study investigates the influence of regional climate change actions on corporate ESG performance. This study uses the Climate Resilient City Construction (CRCC) to represent China's regional climate change action. It uses data from Chinese listed companies from 2013 to 2020 to determine how the CRCC affects corporate ESG performance. The results show that the CRCC can significantly improve corporate ESG performance. In addition, institutional investor shareholding and board diversity can effectively enhance the positive impact of the CRCC on corporate ESG performance. Mechanism analysis shows that the CRCC can increase government financial incentives and corporate green innovation, stimulating firms to improve ESG performance. Finally, the results of heterogeneity analysis show that the CRCC has a more substantial impact on firms located in regions with more severe climate hazards, higher GHG concentrations, and temperate monsoon climate zones, as well as those with a lack of political connections and a higher degree of digital transformation. This study reveals how the CRCC improves corporate ESG performance through theoretical analysis and measures the marginal impact of the CRCC on f corporate ESG performance through empirical analysis. These new findings provide suggestions for policymakers and market participants to address climate change.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104081"},"PeriodicalIF":4.8,"publicationDate":"2025-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143823829","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 mega-mergers on uninsured depositors: Evidence from Indian commercial banks","authors":"Sakshi Narula","doi":"10.1016/j.iref.2025.103983","DOIUrl":"10.1016/j.iref.2025.103983","url":null,"abstract":"<div><div>This paper investigates how depositors fare in banking mega-mergers. The theoretical section demonstrates that the banks communicate their risk profile to depositors using an interest rate signalling model. These signalling efforts become particularly strong during mega-mergers when depositors’ concerns regarding deposit interest rates intensify. The empirical section examines the impact of the 2019 Indian commercial bank mega-merger on acquiring bank depositors from 2000 to 2023. The study leverages the heterogeneity in the bank’s ownership structure to address two empirical questions (i) Did the 2019 mega-merger affect Indian depositors? (ii) Do depositors associate with the interest ratios following a mega-merger? The study finds that mega-mergers have a positive effect on acquiring bank depositors. The private benefits given to high-value depositors outweigh the public information provided to average depositors. The study reports that average depositors of acquiring banks are positively associated with interest spread post-mega-merger. High-value depositors do not associate with interest ratios during mega-mergers.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"99 ","pages":"Article 103983"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143747446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Can green finance policy promote inclusive green growth?- Based on the quasi-natural experiment of China's green finance reform and innovation pilot zone","authors":"Aiting Xu,&nbsp;Yujie Dai,&nbsp;Zhiyuan Hu,&nbsp;Keyang Qiu","doi":"10.1016/j.iref.2025.104090","DOIUrl":"10.1016/j.iref.2025.104090","url":null,"abstract":"<div><div>Sustainable development and inclusive growth are widely recognized as the primary objectives of global development today, with green finance emerging as a critical enabler of these goals. This paper explores the impact of green finance policy, particularly within the framework of the Green Finance Reform and Innovation Pilot Zone, by analyzing data from 270 prefecture-level cities across China from 2010 to 2022. The study assesses both the direct effects and the underlying mechanisms through which green finance contributes to inclusive green growth. The findings reveal that green finance policy significantly promote inclusive green growth, a result that remains robust across various validation tests. The effectiveness of these policies is driven by several intermediary factors, including advances in green technology innovation, improvements in energy efficiency, enhanced entrepreneurial activity in urban areas, and growing public awareness of environmental issues. However, the outcomes are also influenced by the availability of urban financial resources, the leadership qualities of local government officials, the degree of market liberalization, and the strength of environmental law enforcement. Further analysis demonstrates that green finance policy have considerable spatial spillover effects, promoting inclusive green growth in neighboring cities and creating a model effect for others to follow.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104090"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143767505","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Digital inclusive finance and common prosperity: The threshold effect based on rural revitalization","authors":"Jianying Wang,&nbsp;Zhihui Tan,&nbsp;Yuting Zuo","doi":"10.1016/j.iref.2025.104096","DOIUrl":"10.1016/j.iref.2025.104096","url":null,"abstract":"<div><div>This research, which analyzed data from 31 provinces in China between 2011 and 2022, investigates the interplay between digital inclusive finance, shared prosperity, and the threshold effect of rural rejuvenation. The research results show that: digital inclusive finance can promote regional common prosperity; the level of regional economic development plays a moderating role in the process of digital inclusive finance promoting regional common prosperity; there is heterogeneity in the impact of digital inclusive finance on common prosperity across different regions; and the promotion effect of digital inclusive finance on common prosperity is influenced by the threshold effect of rural revitalization.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104096"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143777296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of city diplomacy on foreign direct investment: Evidence from international sister city diplomacy agreements","authors":"Bei He,&nbsp;Mingyue Tang,&nbsp;Aodi Wei","doi":"10.1016/j.iref.2025.104076","DOIUrl":"10.1016/j.iref.2025.104076","url":null,"abstract":"<div><div>International sister cities, as important channels for Chinese cities to engage in foreign exchanges, play a crucial role in national diplomacy. We examine the role of international sister city diplomacy in attracting foreign direct investment (FDI) based on panel data from 286 cities in China from 2010 to 2022. The results show that both the depth and breadth of international sister city development significantly promote FDI. This effect is more pronounced in large cities, cities with a higher degree of marketization, and cities with lower economic policy uncertainty. Mechanism analysis indicates that sister city diplomacy attracts foreign investment through increasing the output value of foreign-invested enterprises and promoting cultural exchange.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"99 ","pages":"Article 104076"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143747447","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Institutional investor cliques and ESG performance: Evidence from Chinese firms","authors":"Wenkang Qiu ,&nbsp;Cheng Xiang ,&nbsp;Chunhong Li ,&nbsp;Yinong Chen","doi":"10.1016/j.iref.2025.104079","DOIUrl":"10.1016/j.iref.2025.104079","url":null,"abstract":"<div><div>Using a sample of Chinese firms, we identify groups of coordinated institutional investors (i.e., cliques) based on their common block stakes and study how their coordination shapes the firm's ESG policy. We document that clique ownership shows a robust and causal positive impact on the firm's future ESG performance. Further tests confirm a positive relationship between ESG and firm value in China. Additionally, we find that clique members coordinate their trades, and the coordination enhances their governance via both voice and exit threats. These results suggest that coordination increases institutional investors' governance impact, which improves their portfolio firms' ESG performance. Consistent with this argument, cross-sectional analyses demonstrate that the positive impact of clique ownership on ESG is greater for firms with weaker governance mechanisms or larger ESG motivations.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104079"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143785169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Derivatives use and analysts’ forecasts: new evidence on the mechanisms from China","authors":"Guiling Zhang ,&nbsp;Xu Lou ,&nbsp;Danliang Yan ,&nbsp;Hui Xu","doi":"10.1016/j.iref.2025.104091","DOIUrl":"10.1016/j.iref.2025.104091","url":null,"abstract":"<div><div>We examine whether and how corporate derivative use affects analysts' earnings forecast accuracy based on Chinese A-share listed firms during 2010 and 2020. We find that derivative users experience less accurate forecasts, compared to non-users. Such effects are more pronounced for SOEs and firms without risk exposure. Mechanism tests suggest that the negative effects of derivatives on analysts' forecasts are primarily due to ineffective hedging, high complexity and insufficient disclosure. Further analysis indicates that the implementation of <em>Hedging Accounting Standards</em>, the provision of management forecasts, and analysts’ capabilities help to mitigate the adverse impact of derivative use on analysts' forecasts.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"100 ","pages":"Article 104091"},"PeriodicalIF":4.8,"publicationDate":"2025-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143777299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}