International Review of Economics & Finance最新文献

{"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}

{"title":"Carbon risk and trade credit","authors":"Hamdi Ben-Nasr ,&nbsp;Shadin Masry ,&nbsp;Abdullah-Al Masum ,&nbsp;Zeineb Ouni","doi":"10.1016/j.iref.2025.104425","DOIUrl":"10.1016/j.iref.2025.104425","url":null,"abstract":"<div><div>Our study, focusing on US-listed companies, reveals that high carbon risk can hinder a company's ability to obtain trade credit. This negative impact is channeled primarily via a company's performance volatility, creditworthiness, and information asymmetry. Additionally, a company's negative environmental image, such as its emitter-category industry classification, can exacerbate the issue. However, corporate environmental responsibility and good internal governance can assist in mitigating the negative impact. This research offers valuable insights for policymakers and corporations, underscoring the significance of addressing carbon risk.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104425"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144672621","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 and firms' domestic value added in exports: Evidence from China","authors":"Mufang Xie ,&nbsp;Binbin Yu ,&nbsp;Changbiao Zhong","doi":"10.1016/j.iref.2025.104424","DOIUrl":"10.1016/j.iref.2025.104424","url":null,"abstract":"<div><div>Using data on 145,687 Chinese firms from 2003 to 2013, we examine the impact of financial agglomeration on the ratio of domestic value added in exports to gross exports (DVAR) of firms. We find that both local financial agglomeration and spatial spillover significantly increase firms' DVAR. The primary mechanisms driving this relationship are the facilitation of research and development innovation and the reduction of financing costs. The positive impact of financial intermediary agglomeration on DVAR is more pronounced, and the spillover effect of financial agglomeration on DVAR increases with the level of the financial center. Financial agglomeration exerts greater positive impacts on DVAR of upstream value chain firms, general trade firms, private firms, and small-scale firms. We also demonstrate that financial marketization amplifies the positive effect of financial agglomeration.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104424"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144632503","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":"Unravelling the impact of financial attention on household debt: Evidence from the China household finance survey","authors":"Ke Wang ,&nbsp;Rui Zhang ,&nbsp;Xuyang Zhang","doi":"10.1016/j.iref.2025.104435","DOIUrl":"10.1016/j.iref.2025.104435","url":null,"abstract":"<div><div>With the popularization of Internet, it is more convenient for households to obtain economic and financial information, while information overload leads to attention becoming a scarce resource, which affects household debt management. Based on the data of China Household Finance Survey in 2019, this paper uses a series of estimation methods, including least squares regression (OLS), generalized moment estimation (GMM), instrumental variable (IV), and propensity score matching (PSM), to study the impact of financial attention on household debt. The study finds that financial attention has a significant negative effect on the household debt ratio, that is, the higher the attention, the lower the debt ratio. This effect can be achieved by improving financial literacy, increasing risk appetite, and promoting financial market participation. In addition, higher financial attention also increase the size, type, and expected cost of household debt.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104435"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144634579","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 enterprise digital transformation affect the cost of debt financing? Based on the perspective of customer concentration risk","authors":"Chenrui Zhang","doi":"10.1016/j.iref.2025.104426","DOIUrl":"10.1016/j.iref.2025.104426","url":null,"abstract":"<div><div>This paper investigates how enterprise digital transformation affects the cost of debt financing from the perspective of customer concentration risk. Our results indicate that digital transformation significantly reduces the cost of debt financing. Mechanism tests reveal that digital transformation enables companies to broaden their operational breadth and depth, which mitigates customer concentration risk, thereby reducing default risk, and ultimately lowering the cost of debt financing. Further analyses suggest that the negative effect of digital transformation on firm's cost of debt financing is more pronounced for firms with lower market power, higher payment collection risk, elevated customer switching costs, greater supplier concentration, or a higher proportion of overseas business. Additionally, the effect is also influenced by the competitive dynamics of the industry in which the company operates. Finally, our findings indicate that digital transformation enhances firms' ability to secure bank credit. These findings contribute to the growing body of research on the economic implications of digital transformation and offer practical insights for firms seeking to leverage digital technologies to strengthen supply chain resilience, mitigate operational risks, and address financing challenges.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104426"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144632502","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":"Digital tax administration, investor risk perception, and stock return volatility","authors":"Wenjun Tu ,&nbsp;Anna Min Du ,&nbsp;Sarah Borthwick Saddler","doi":"10.1016/j.iref.2025.104434","DOIUrl":"10.1016/j.iref.2025.104434","url":null,"abstract":"<div><div>This study investigates the impact of digital tax administration on stock return volatility amid heightened market uncertainty. Leveraging the staggered rollout of China's <em>Golden Tax Phase III</em> from 2013 to 2016 as a quasi-natural experiment, we employ a Difference-in-Differences approach on a sample of Chinese listed firms over the period 2010 to 2022. We find that the implementation of digital tax administration significantly alleviates stock return volatility. This stabilizing effect is primarily attributed to reduced investors' perceived risks, which arise from enhanced information transparency, mitigated agency conflicts, and alleviated financial constraints. Drawing upon agency theory and institutional theory, we find that this stabilizing effect is more salient in regions with weaker initial institutional environments (i.e., low tax enforcement efforts, weak legal institutions, and low social trust). Our findings indicate that digital tax administration, as a potent external governance mechanism, can compensate for existing institutional deficiencies. Our study provides crucial insights into the role of digital tax administration in promoting market stability and enhancing corporate governance across diverse regional contexts. Our study is important for both policymakers and firm managers, indicating that leveraging digital tax administration can enhance stock market stability by improving regulatory effectiveness and guiding firms' strategic resource allocation in volatile environments.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104434"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144604170","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":"Capital constraint relief and liquidity creation in small and medium-sized banks: Evidence from a quasi-natural experiment in China","authors":"Weifeng Yu ,&nbsp;Huiqi Wu ,&nbsp;Zhihui Song","doi":"10.1016/j.iref.2025.104405","DOIUrl":"10.1016/j.iref.2025.104405","url":null,"abstract":"<div><div>Using the policy change of allowing local governments to issue special bonds to replenish capital for small and medium-sized banks (SMBs) in 2020 as a quasi-natural experiment, this paper investigates the effects of capital constraint alleviation on liquidity creation among these banks. With an unbalanced panel dataset comprising 205 SMBs in China from 2018 to 2023, we find that capital constraint relief reduces liquidity creation through two channels: by reducing banks' regulatory incentives and by “crowding out” deposits in such banks. The reduction is more pronounced for smaller SMBs, unlisted SMBs, and those in regions with lower level of financial development. Further research indicates that due to different regulatory intensity on the on- and off-balance sheet activities, capital constraint relief results in a notable reduction in the level of on-balance sheet liquidity creation, while off-balance sheet liquidity creation is unaffected. Our results have relevant implications for the government policy aimed at replenishing capital for SMBs.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104405"},"PeriodicalIF":4.8,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144653788","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":"Unlocking common prosperity through digital agricultural innovation: evidence from urban China with threshold effects","authors":"Wancheng Zhang,&nbsp;Xiuzhu Yan","doi":"10.1016/j.iref.2025.104422","DOIUrl":"10.1016/j.iref.2025.104422","url":null,"abstract":"<div><div>Addressing inequality through digital innovation in agriculture has become a critical issue in global development. This study examines how digital agricultural innovation affects common prosperity using panel data from Chinese prefecture-level cities. To capture contextual heterogeneity, we adopt a panel threshold model and construct the digital infrastructure threshold variable using policy text mining techniques based on local government work reports. Results show a significant positive impact, robust across various specifications. Threshold effects of digital infrastructure, agricultural productivity, and R&amp;D expenditure reveal a nonlinear relationship. The findings underscore the importance of technological capacity in promoting inclusive growth and offer empirical support for China's development strategy, providing policy insights for other developing countries pursuing digital transformation in agriculture.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104422"},"PeriodicalIF":4.8,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144634559","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":"Quantile time-frequency spillovers among climate policy uncertainty, energy markets, and stock markets","authors":"Zhifang He ,&nbsp;Wanchuan Qian ,&nbsp;Badir Miftah ,&nbsp;Mohammad Zoynul Abedin","doi":"10.1016/j.iref.2025.104428","DOIUrl":"10.1016/j.iref.2025.104428","url":null,"abstract":"<div><div>From a spillover network perspective, this study employs the QVAR-DY and QVAR-BK models to detect how global climate policy uncertainty (CPU) interacts with energy markets, encompassing coal, crude oil, natural gas, and clean energy, as well as stock markets in both the US and China within a quantile time-frequency framework. Results reveal that spillovers among CPU, energy and stock markets show heterogeneity under quantile time-frequency domains. The total connectedness is dominated by short-term shocks and becomes more significant within extreme market conditions, particularly during the COVID-19 pandemic. Moreover, in the normal market, clean energy and the US stock market act as net shock exporters, while the roles of the other variables within the system vary significantly across different frequencies. It is noteworthy that CPU changes from a short run net shock receiver to a medium and long run net shock transmitter. The spillover from Chinese stock market to CPU is more significant than that from other markets, especially during the short run. In extreme markets, the coal market exports spillovers, whereas the clean energy market imports them. These findings are crucial for controlling the spread of cross-market risk in the context of climate policy uncertainty. Relevant regulatory authorities should establish a short-term risk early warning mechanisms for climate policy, energy and stock markets under extreme markets, especially strengthening cross-market risk monitoring when major events occur. As CPU evolves into a spillover exporter over the medium to long run, strengthening the co-design of climate policy and clean energy market and guiding capital flows to low-carbon sectors will be critical for mitigating cross-market risk contagion and ensuring systemic stability.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"103 ","pages":"Article 104428"},"PeriodicalIF":4.8,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144604247","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}