Financial Markets, Institutions and Instruments最新文献

Pricing on Carbon Transition Risks: Carbon Emission Trading and Stock Returns 碳转型风险定价：碳排放交易与股票收益

Financial Markets, Institutions and Instruments Pub Date : 2026-09-17 Epub Date: 2026-08-24 DOI: 10.1111/fmii.70012

Jinlong Zhang, Wei Zhang

{"title":"Pricing on Carbon Transition Risks: Carbon Emission Trading and Stock Returns","authors":"Jinlong Zhang, Wei Zhang","doi":"10.1111/fmii.70012","DOIUrl":"https://doi.org/10.1111/fmii.70012","url":null,"abstract":"<div>\u0000 \u0000 Relying on the phased rollout of the carbon emission trading (CET) pilot policy, we estimate a staggered difference-in-differences (DID) model to identify how transition risks induced by carbon pricing policies are priced in stock returns. Our results show that after CET implementation, stocks of CET-covered firms command a significant carbon risk premium, providing empirical support for the carbon risk premium hypothesis. The premium arises from the market pricing of three distinct cash-flow risks triggered by CET: operational uncertainty, credit deterioration, and information asymmetry. Meanwhile, divestment by rational investors serves as a key transmission channel for the premium. Dynamic analysis reveals pronounced time variation in the premium: it is significant during the initial period, persists for two years after implementation, then gradually attenuates, and reappears after the national CET launch. We further find that exposure to these risks is partially captured by established market factors (size/SMB, value/HML, profitability/RMW), indicating that carbon risk itself does not constitute a standalone pricing factor. Third-party verified environmental ratings account for a substantial fraction of the cross-sectional variation, whereas self-disclosed environmental information by firms has limited explanatory power, indicating that information asymmetry constrains the market's ability to price carbon transition risks. This study provides microlevel evidence on how carbon policies are transmitted through capital markets.\u0000 </div>","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"35 3","pages":"75-95"},"PeriodicalIF":0.0,"publicationDate":"2026-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148981499","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

What Drives Banks' and FinTechs' Systemic Risk: An Analysis on Crypto Assets Contagion and Firm-Specific Characteristics 驱动银行和金融科技公司系统性风险的因素：加密资产传染和企业特征分析

Financial Markets, Institutions and Instruments Pub Date : 2026-09-17 Epub Date: 2026-06-18 DOI: 10.1111/fmii.70008

Domenico Curcio, Serena Gallo, Igor Gianfrancesco, Davide Vioto

{"title":"What Drives Banks' and FinTechs' Systemic Risk: An Analysis on Crypto Assets Contagion and Firm-Specific Characteristics","authors":"Domenico Curcio, Serena Gallo, Igor Gianfrancesco, Davide Vioto","doi":"10.1111/fmii.70008","DOIUrl":"https://doi.org/10.1111/fmii.70008","url":null,"abstract":"This paper studies the determinants of banks' and fintech companies' systemic risk. We adopt both a systemic and firm-level perspective and consider not only factors traditionally used to explain systemic riskiness, which have never been applied to the fintech sector, but also the new potential source of instability, for both banks and fintech firms, stemming from the crypto market vulnerabilities. We find that crypto market downturns exacerbate both banks' and FinTechs' systemic risk, but they do so in a different way. Then, we prove that, overall, firm-specific accounting and market-related indicators exhibit lower power in explaining fintech companies' systemic risk, and that their different impact on banks' and FinTechs' systemic risk is consistent with the different nature of these two groups of firms. This work contributes to the debate on the new threats for the financial system stability associated with the development of the tech-driven revolution and provides useful insights from the perspective of regulators' and supervisors' efforts to define a proper set of rules and monitoring tools.","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"35 3","pages":"63-74"},"PeriodicalIF":0.0,"publicationDate":"2026-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/fmii.70008","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148981400","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Monetary Policy and Banking Operations: Does Ownership Matter? 货币政策与银行业务：所有权重要吗？

Financial Markets, Institutions and Instruments Pub Date : 2026-09-17 Epub Date: 2026-08-25 DOI: 10.1111/fmii.70010

Evangelos Salachas, Maria-Eleni K. Agoraki, Anastassios A. Drakos, Georgios P. Kouretas

{"title":"Monetary Policy and Banking Operations: Does Ownership Matter?","authors":"Evangelos Salachas, Maria-Eleni K. Agoraki, Anastassios A. Drakos, Georgios P. Kouretas","doi":"10.1111/fmii.70010","DOIUrl":"https://doi.org/10.1111/fmii.70010","url":null,"abstract":"This paper examines how monetary-policy deviations from country-specific Taylor-rule benchmarks are associated with bank insolvency risk and profitability, and how ownership and liability-side funding conditions shape these responses. Using a large cross-country panel of commercial banks, we show that tighter-than-expected monetary policy is related to lower bank insolvency risk. The profitability response is positive on average, but smaller and more sensitive to specification and shock measurement. Monetary tightening also increases banks’ cost of funds, providing evidence of a liability-side funding-price channel. Ownership shapes monetary-policy transmission at both the bank and system levels: the marginal risk response becomes weaker as foreign ownership increases, while a greater system-wide prevalence of state-controlled banks reduces the risk-reducing effect of monetary tightening. Decomposition results indicate that the risk response operates primarily through lower earnings volatility rather than changes in capitalization. These findings remain broadly robust across alternative shock measures, alternative bank outcomes, macroprudential and crisis controls and country-balanced weighted regressions.","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"35 3","pages":"97-120"},"PeriodicalIF":0.0,"publicationDate":"2026-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/fmii.70010","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148981490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Stock Option Incentives and Corporate Hedging Decisions: Theory and Empirical Evidence 股票期权激励与公司套期保值决策：理论与实证

Financial Markets, Institutions and Instruments Pub Date : 2026-06-23 Epub Date: 2026-05-09 DOI: 10.1111/fmii.70006

Chengcheng Charlie Huang, Yisong S. Tian

引用次数: 0

FOMC Meetings, Monetary Policy Uncertainty, and Mutual Fund Alpha 联邦公开市场委员会会议、货币政策不确定性和共同基金Alpha

Financial Markets, Institutions and Instruments Pub Date : 2026-06-23 Epub Date: 2026-05-09 DOI: 10.1111/fmii.70007

Ali K. Malik, Gonul Colak

引用次数: 0

Synergistic Gains and National Cultural Distance 协同收益与国家文化距离

Financial Markets, Institutions and Instruments Pub Date : 2025-08-22 DOI: 10.1111/fmii.70002

Tanveer Hussain, Muhammad Shujahat, Abongeh A. Tunyi, Mehmet Demirbag

{"title":"Synergistic Gains and National Cultural Distance","authors":"Tanveer Hussain, Muhammad Shujahat, Abongeh A. Tunyi, Mehmet Demirbag","doi":"10.1111/fmii.70002","DOIUrl":"https://doi.org/10.1111/fmii.70002","url":null,"abstract":"Does national cultural distance create higher synergistic gains in cross-border mergers and acquisitions (CBMAs)? Existing research on the role of cultural distance suggests that cultural disparities destroy shareholders’ wealth. Using an international sample of CBMAs over 19 years, we document that synergistic gains increase by 1.75 percentage points with one standard deviation increase in cultural distance. Drawing from the organizational learning theory, we suggest that learning diverse cultural practices in the post-acquisition stage is a source of higher synergy gains. The positive association between cultural distance and synergies is more pronounced if the acquirer pays in stock and already has takeover experience. This suggests that better awareness of the target country's culture and risk management through stock payment are boundary conditions for higher gains. Overall, our results lead to the counter-intuitive finding that CBMAs between firms from countries with dissimilar cultures are not always valued as destructive but depend on how merging firms learn the cultural practices of one another and manage integration challenges. We offer practical implications for regulators and policymakers about how the international takeover market can serve as a vehicle for learning new cultural practices and increasing combined firm value.","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"34 5","pages":"223-245"},"PeriodicalIF":0.0,"publicationDate":"2025-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/fmii.70002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145479986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Unravelling the Impact of Ideological Diversity on Stock Returns Amidst Uncertainty 不确定环境下意识形态多样性对股票收益的影响

Financial Markets, Institutions and Instruments Pub Date : 2025-07-09 DOI: 10.1111/fmii.70000

Ambrose Egwuonwu, Arthur Egwuonwu, Suman Lodh, Monomita Nandy

{"title":"Unravelling the Impact of Ideological Diversity on Stock Returns Amidst Uncertainty","authors":"Ambrose Egwuonwu, Arthur Egwuonwu, Suman Lodh, Monomita Nandy","doi":"10.1111/fmii.70000","DOIUrl":"https://doi.org/10.1111/fmii.70000","url":null,"abstract":"Recently, the Covid-19 uncertainties have raised interest in identifying factors that influence firms’ resilience. Existing Covid-19 research primarily focused on market reactions and lockdown impacts, overlooking the influence of ideological diversity of firms’ directors on resilience. To address this gap, we examine personal contributions to the US Republican or Democratic parties by 11,741 directors from 328 S&P 500 firms, revealing their political ideologies. Our findings highlight that firms with diverse boards experience milder stock return declines during the Covid-19 outbreak, indicating a positive link between ideological diversity and firm performance. This study presents evidence of the significant impact of ideological diversity in corporate boardrooms, showcasing how it affects firms’ resilience during times of extreme market uncertainty. Our findings emphasise the importance of revisiting the theories to explain the ideological diversity in shaping strategies to respond to uncertainty during unpredictable times. Based on social psychological theory alongside agency theory, the findings provide clear indications to practitioners that during future uncertainties, the ideological diversity of the board should be considered to optimise the board's potential to improve performance.","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"34 5","pages":"199-221"},"PeriodicalIF":0.0,"publicationDate":"2025-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/fmii.70000","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145479911","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Interplay Between Competition Networks, Strategy Uniqueness, and Hedge Fund Performance 竞争网络、策略独特性与对冲基金绩效之间的相互作用

Financial Markets, Institutions and Instruments Pub Date : 2025-07-02 DOI: 10.1111/fmii.70001

Maher Kooli, Min Zhang

引用次数: 0

Estimating Hedge Fund Leverage: A Three-Step Estimation Protocol 估计对冲基金杠杆：一个三步估计协议

Financial Markets, Institutions and Instruments Pub Date : 2025-05-22 DOI: 10.1111/fmii.12214

Ariston Karagiorgis, Konstantinos Drakos

{"title":"Estimating Hedge Fund Leverage: A Three-Step Estimation Protocol","authors":"Ariston Karagiorgis, Konstantinos Drakos","doi":"10.1111/fmii.12214","DOIUrl":"https://doi.org/10.1111/fmii.12214","url":null,"abstract":"Utilizing a micro-level hedge fund dataset, we propose a methodology for estimating hedge fund leverage. Initially, we perform a Principal Component Analysis on a set of 49 risk factors for dimension deduction purposes. After acquiring 10 Principal Components, we deploy the Least Absolute Shrinkage and Selection Operator regression (Lasso) per fund by seven 3-year monthly non-overlapping intervals in order to select which Principal Components affect each fund's return. As a last step, we execute a regression in the same manner as previously, with only the non-zero Principal Components. By aggregating <math>\u0000 <semantics>\u0000 <mrow>\u0000 <mi>β</mi>\u0000 <mi>s</mi>\u0000 </mrow>\u0000 <annotation>$beta {rm s}$</annotation>\u0000 </semantics></math>, we estimate an average sectorial leverage of 3.3 with an average <math>\u0000 <semantics>\u0000 <msup>\u0000 <mi>R</mi>\u0000 <mn>2</mn>\u0000 </msup>\u0000 <annotation>$R^2$</annotation>\u0000 </semantics></math> of 58.2%. Moreover, we observe an analogous degree of Deleveraging in 2007–2009 that includes the 2008 financial crisis as in 2019–2021 that includes the COVID-19 stress period.","PeriodicalId":39670,"journal":{"name":"Financial Markets, Institutions and Instruments","volume":"34 4","pages":"155-172"},"PeriodicalIF":0.0,"publicationDate":"2025-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/fmii.12214","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145237252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

How Do Banks Respond to Supplier IPOs? 银行如何应对供应商ipo ？

Financial Markets, Institutions and Instruments Pub Date : 2025-04-06 DOI: 10.1111/fmii.12212

Sung C. Bae, Iftekhar Hasan, Liuling Liu, Haizhi Wang

引用次数: 0