Antonio Salvi , Vitiana L'Abate , Felice Petruzzella , Filippo Vitolla , Nicola Raimo
{"title":"Rising temperatures, rising transparency: Revealing the financial benefits of climate change disclosure","authors":"Antonio Salvi , Vitiana L'Abate , Felice Petruzzella , Filippo Vitolla , Nicola Raimo","doi":"10.1016/j.iref.2025.104208","DOIUrl":"10.1016/j.iref.2025.104208","url":null,"abstract":"<div><div>In the past two decades, climate change and global warming have emerged as the most pressing environmental issues on a global scale. One of the main challenges in creating a sustainable economy is the effective management of the risks posed by climate change. The relevance of these topics has heightened the importance of climate change disclosure (CCD), which has increasingly attracted the interest of academics. However, the financial effects of CCD remain an area that is still underexplored. This study aims to fill this important gap by investigating the impact of CCD via social media on the cost of capital and firm value. The econometric analysis, conducted on a sample of 134 international firms over the period from 2019 to 2021, reveals that CCD has a negative effect on the cost of capital and a positive impact on firm value. These results provide significant contributions to the academic literature and offer important practical implications for firms, policymakers, and standard setters.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104208"},"PeriodicalIF":4.8,"publicationDate":"2025-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144177893","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 consumer complaints on corporate digital transformation","authors":"Yingchao Lu , Hailing Chang , Yadan Zhou","doi":"10.1016/j.iref.2025.104203","DOIUrl":"10.1016/j.iref.2025.104203","url":null,"abstract":"<div><div>This paper examines the impact of consumer complaints on corporate digital transformation and its underlying mechanisms. Using quarterly data from China's Shanghai and Shenzhen A-share listed companies from 2018 to 2023, the empirical results show that an increase in consumer complaints significantly hinders corporate digital transformation. Mechanism analysis reveals that consumer complaints raise legal risks and non-productive costs for firms, leading them to allocate more resources toward short-term crisis management rather than long-term digital development. Heterogeneity analysis indicates that this inhibitory effect is more pronounced in firms with weaker cybersecurity governance, firms whose executives lack a digital background, and firms with higher media attention. This study fills a gap in the literature on the impact of consumer complaints on corporate digital transformation and provides theoretical support for relevant policy formulation.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104203"},"PeriodicalIF":4.8,"publicationDate":"2025-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144205473","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 competitiveness and corporate ESG performance","authors":"Taotao Zhang , Chuan Qin , Zhaoying Lu","doi":"10.1016/j.iref.2025.104201","DOIUrl":"10.1016/j.iref.2025.104201","url":null,"abstract":"<div><div>This study investigates the relationship between firm-level market competitiveness and corporate environmental, social, and governance (ESG) performance, with a particular focus on the underlying mechanisms and moderating factors influencing this association. Using panel data from Chinese A-share listed firms, we find robust evidence that firms with higher market competitiveness, measured by branch network extensiveness, exhibit superior ESG performance. Empirical analysis further identifies resource allocation efficiency as a significant mediator: firms facing greater competitive pressure allocate resources more efficiently, which in turn positively affects ESG outcomes. Additionally, green innovation emerges as an important moderator, substantially enhancing the positive relationship between market competitiveness and ESG performance. Further heterogeneity analyses reveal nuanced patterns: the beneficial effects of competitiveness on ESG performance are more pronounced for larger firms, privately-owned enterprises, and those located in economically developed eastern regions. Notably, competitive pressures influence ESG dimensions differently, exerting the strongest positive effects on social performance, moderate impacts on governance performance, and no significant effect on environmental performance. Collectively, these findings highlight that market competitiveness generally promotes corporate sustainability, yet the extent and nature of this relationship vary according to firm characteristics, ownership structures, regional contexts, and ESG dimensions. This study provides comprehensive insights for policymakers and managers on leveraging competitive market environments to foster sustainable business practices.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104201"},"PeriodicalIF":4.8,"publicationDate":"2025-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144231634","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":"Supply chain decarbonisation effects of artificial Intelligence: Evidence from China","authors":"Baoping Ren , Zhaoxuan Qiu , Bei Liu","doi":"10.1016/j.iref.2025.104198","DOIUrl":"10.1016/j.iref.2025.104198","url":null,"abstract":"<div><div>Existing studies have not yet discussed the synergetic decarbonisation effects among supply chain firms driven by artificial intelligence (AI) applied in leading focal firms, nor have they explored the corresponding mechanisms in depth. Focusing on the supply chain, this paper constructs a dataset with “focal firm - associated firm - year” observations, to examine the external spillover effects of AI on supply chain decarbonisation. Our findings reveal that AI employed by focal enterprises significantly contribute to curbing carbon emissions among associated enterprises within the supply chain, primarily through green technological innovation (GTI). The role of substantive GTI is predominant, whereas symbolic GTI appears to have an insignificant impact. Meanwhile, from the perspective of synergy, the vertical interaction effect of the supply chain and the horizontal peer effect of industry can strengthen the supply chain decarbonisation effect of AI technology. This paper provides a new synergetic insight for fully releasing the decarbonisation potential of AI based on supply chain interaction, providing empirical evidence and policy references to promote industrial green inclusive development and realize the global zero-carbon goal.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104198"},"PeriodicalIF":4.8,"publicationDate":"2025-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144189839","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":"When will companies talk more about innovation? A natural experiment of intellectual property protection","authors":"Kun Huang , Rui Huang , Yuanyuan Liu , Zhe Zhang","doi":"10.1016/j.iref.2025.104209","DOIUrl":"10.1016/j.iref.2025.104209","url":null,"abstract":"<div><div>We argue that strong protection of intellectual property rights lowers proprietary costs faced by companies, thereby safeguarding their disclosure of innovation information. This paper employs a natural experiment in China to investigate whether and how enhanced intellectual property judicial protection affects firms' innovation narrative practices. We find robust evidence that firms increase the narrative innovation disclosure after the establishment of intellectual property courts. In cross-sectional analyses, we observe that this effect is particularly pronounced in industries characterized by higher degree of R&D spillovers and among firms with weaker product market competitiveness. The findings are also more significant for firms operating under conditions of elevated information asymmetry and intensified financing constraints. Finally, we empirically demonstrate that heightened narrative innovation disclosure after the establishment of intellectual property courts has a deterring effect in decreasing the product similarity among peer firms. Our study investigates how judicial enforcement of intellectual property rights shapes corporate disclosure practices and has policy implications for both product and capital markets.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104209"},"PeriodicalIF":4.8,"publicationDate":"2025-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144184907","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 institutional opening-up enhance enterprise innovation quality?","authors":"Chiyu Ma, Yijun Xiang","doi":"10.1016/j.iref.2025.104200","DOIUrl":"10.1016/j.iref.2025.104200","url":null,"abstract":"<div><div>This study investigates the impact mechanisms and effects of institutional opening-up on enterprise innovation quality in the context of China's Pilot Free Trade Zone (FTZ) development, using data from listed enterprises from 2010 to 2022. The findings reveal that, institutional opening-up significantly enhances enterprise innovation quality. From the perspective of the resource-based theory, institutional opening-up improves enterprise innovation quality through three key channels-enhancing talent agglomeration effects, optimizing capital allocation efficiency, and strengthening technological support. Heterogeneity analysis shows that the positive impact is more pronounced in state-owned enterprises and technology-intensive enterprises. This study confirms that institutional opening-up can effectively break down traditional institutional barriers to factor mobility by establishing a “policy dividend-resource integration-innovation upgrading” mechanism, offering valuable insights into how institutional innovation can drive improvements in enterprise innovation quality.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104200"},"PeriodicalIF":4.8,"publicationDate":"2025-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144177892","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}
Tian Wei , Han Wu , Michael Dowling , Aref Mahdavi Ardekani
{"title":"Financial perceptions and AI infringement risks","authors":"Tian Wei , Han Wu , Michael Dowling , Aref Mahdavi Ardekani","doi":"10.1016/j.iref.2025.104204","DOIUrl":"10.1016/j.iref.2025.104204","url":null,"abstract":"<div><div>Artificial intelligence (AI)-related intellectual property (IP) infringement involves the unauthorized use of copyrighted materials during model training and the creation of content that may violate copyright, trademark, or patent laws. This phenomenon presents critical financial risks for businesses, ranging from reputational harm and erosion of brand equity to potential litigation, regulatory scrutiny, and increased investor uncertainty. This study explores how to understand this emergent risk and the associated implications. To do so, we apply social capital theory to an analysis of 10,447 Chinese social media users' reactions to China's first AI-generated voice infringement lawsuit. Our findings suggest that out-tie social capital (exposure to diverse networks) tends to promote neutral or positive views, while in-tie social capital (strong, close-knit communities) initially encourages favorable attitudes but shifts toward ethical and risk concerns when potential financial damages are perceived. Our study, thus, highlights the interplay between social perception and corporate financial considerations in an era where AI increasingly shapes economic opportunities and liabilities.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104204"},"PeriodicalIF":4.8,"publicationDate":"2025-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144168058","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":"Population aging and corporate innovation Performance: evidence from China","authors":"Zhongying Jing , Zheng Li , Ping Zheng","doi":"10.1016/j.iref.2025.104199","DOIUrl":"10.1016/j.iref.2025.104199","url":null,"abstract":"<div><div>Drawing on the contingency theory, this study investigates how population aging reshapes corporate innovation in China. With the CSMAR firm database, we find that population aging suppresses corporate patenting by raising labour costs and diluting human capital quality. We further document that scientific expenditure could weaken the impact of population aging on corporate patenting, thereby acting as a strategic buffer. These findings jointly show that population aging constrains corporate innovation performance; for policy implications, they indicate that government policies stimulating scientific expenditure can be a direction to overcome the constraint effect.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104199"},"PeriodicalIF":4.8,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144168056","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}
Yingying Zhang , Xiaofeng Dong , Yifei Wang , Hongtao Li
{"title":"Research on the theoretical logic and mechanism of digital inclusive finance in promoting the high-quality development of small and medium-sized enterprises","authors":"Yingying Zhang , Xiaofeng Dong , Yifei Wang , Hongtao Li","doi":"10.1016/j.iref.2025.104202","DOIUrl":"10.1016/j.iref.2025.104202","url":null,"abstract":"<div><div>This paper selects panel data from SMEs listed on the China Shenzhen Small and Medium Enterprise Board from 2011 to 2022, analyzing and testing the theoretical logic and mechanism through which digital inclusive finance promotes the high-quality development of SMEs. The research shows that The empowerment effect of digital inclusive finance on the high-quality development of small and medium-sized enterprises is mainly achieved through the breadth of digital inclusive finance coverage. However, the enabling effects of the depth of use and the degree of digitization of digital inclusive finance on the high-quality development of SMEs have not been fully realized, and there is heterogeneity among different industries and regions. From the perspective of moderating effects, corporate digital transformation and corporate environmental information disclosure play positive moderating roles in the process of digital inclusive finance empowering the high-quality development of SMEs. Therefore, We should strengthen the empowerment of digital inclusive finance. Formulate regionally differentiated policies for the development of digital inclusive finance, and optimize the market environment for digital inclusive finance. At the same time, the digital transformation of SMEs should be promoted, and SMEs should be encouraged to disclose environmental information.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104202"},"PeriodicalIF":4.8,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144195095","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 digital industrialization on the level of green development","authors":"Zirong Li , Linbing Wu , Jingbo Li , Yanxue Zhang","doi":"10.1016/j.iref.2025.104193","DOIUrl":"10.1016/j.iref.2025.104193","url":null,"abstract":"<div><div>The construction of digital industrialization serves as a solid foundation for advancing the development of a manufacturing power, a cyber power, and a digital China, and it is also a crucial support for promoting the transformation and upgrading of industries towards digitization, intellectualization, greening, and servitization. Based on provincial panel data from 31 provinces spanning 2008–2022, this paper empirically examines the impact of digital industrialization on the level of green development and its underlying mechanisms. The findings reveal that Digital Industrialization has a significant role in promoting the level of green development, and this conclusion is still true after multiple robustness tests. Mechanism analysis finds that digital industrialization has the dual dimension promotion effect of financial decentralization and advanced industrial structure promotion, that is, digital industrialization promotes the upgrading of industrial structure through technological innovation to enhance enterprise productivity and market competitiveness, and then promote the level of green development; Furthermore, digital industrialization facilitates the improvement of financial decentralization efficiency, enabling technological innovation to enhance green development and achieve energy conservation, emission reduction, and environmental pollution reduction. The heterogeneity analysis finds that digital industrialization can promote green development by enhancing technological and financial development levels, contributing to the achievement of carbon peaking and carbon neutrality goals.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"101 ","pages":"Article 104193"},"PeriodicalIF":4.8,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144189838","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}