Global Finance Journal最新文献

{"title":"Asymmetric dependency among US national financial conditions and clean energy markets","authors":"Hongjun Zeng ,&nbsp;Mohammad Zoynul Abedin ,&nbsp;Ran Wu ,&nbsp;Abdullahi D. Ahmed","doi":"10.1016/j.gfj.2024.101046","DOIUrl":"10.1016/j.gfj.2024.101046","url":null,"abstract":"<div><div>This paper examines the relationship between the US National Financial Conditions Index (NFCI) and the clean energy industry using quantile and frequency connectedness, cross-quantile, and wavelet quantile correlation (WQC) techniques. Results reveal (a) a stronger dependence between the NFCI and clean energy under bullish market states. Moreover, the total connectedness between the NFCI and clean energy mostly exhibits time-varying characteristics. In particular, clean energy has a greater spillover effect than the NFCI. (b) Dynamic frequency total connectedness at extreme quantiles provided a more comprehensive view of structural shocks in financial markets, and major crises, such as COVID-19, significantly amplified this connectedness. Overall, the WilderHill Clean Energy Index and the NASDAQ OMX Renewable Energy Index demonstrate substantial potential for hedging financial conditions. (c) The cross-quantile correlation results revealed an asymmetric dependency, demonstrating a sustained significant positive relationship between the NFCI and clean energy index (CEI) across the relative higher quantiles and middle quantiles. The WQC showed that the NFCI and specific CEIs tended to exhibit the strongest positive correlations in nonextreme quantiles and lower frequencies. These results can be of considerable interest to various financial market participants.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101046"},"PeriodicalIF":5.5,"publicationDate":"2024-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142422740","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":"Bank scandal contagion: Evidence from the Wells Fargo cross-selling scandal","authors":"Michael D. Noel ,&nbsp;Syed M.I. Osman","doi":"10.1016/j.gfj.2024.101044","DOIUrl":"10.1016/j.gfj.2024.101044","url":null,"abstract":"<div><div>In the event of a negative reputation shock or scandal, do consumers' anger and mistrust in the scandal-affected products spill over to seemingly unrelated lines of business that the scandal did not directly reach? Our paper looks into Wells Fargo's 2016 “cross-selling” scandal to test the negative sentiment contagion effect on its mortgage business. The study finds significant negative contagion effects, but also shows that Wells Fargo was more accommodating in handling complaints, paying compensation more frequently, and successfully lowering disputes towards zero. These actions are interpreted as Wells Fargo's damage control efforts to ‘Contain the Contagion’.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101044"},"PeriodicalIF":5.5,"publicationDate":"2024-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142422739","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":"Are Mondays different? Evidence from initial public offerings","authors":"Abu Chowdhury ,&nbsp;Mika Vaihekoski ,&nbsp;Mir Zaman","doi":"10.1016/j.gfj.2024.101043","DOIUrl":"10.1016/j.gfj.2024.101043","url":null,"abstract":"<div><div>This paper investigates how and why initial public offerings (IPOs) issued on Mondays differ from those on other days. We provide evidence that Monday IPOs make a significantly larger number of filing price amendments during the road show and set offer prices that exceed the filing price range, resulting in higher positive offer price revisions. We also find that Monday IPOs receive less analyst coverage than other-day IPOs, despite their underwriting fees being the same and their total underwriter compensation being higher. Therefore, Monday IPOs are more likely to change lead underwriters in subsequent equity offerings and have a higher risk of delisting as aftermarket support and maintaining good relations with investment banks are critical for their long run survival. We also investigate why underwriters issue IPOs on Mondays. We suggest four possible explanations for Monday IPOs and find indirect evidence that supports the deliberate road show extension explanation.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101043"},"PeriodicalIF":5.5,"publicationDate":"2024-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142357065","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 influence of European MiCa regulation on cryptocurrencies","authors":"Thomas Conlon ,&nbsp;Shaen Corbet ,&nbsp;Les Oxley","doi":"10.1016/j.gfj.2024.101040","DOIUrl":"10.1016/j.gfj.2024.101040","url":null,"abstract":"<div><div>This research investigates the relationship between impending regulatory measures, specifically the introduction of European MiCa regulations, and their influence on cryptocurrency markets. Analysing stock market responses, we highlight significant shifts in liquidity, variance, and return dynamics post-MiCa-related announcements. Specifically, such announcements are associated with significant negative cryptocurrency returns and elevated liquidity. The findings reveal defined heterogeneity across different cryptocurrency sub-classes, each uniquely affected by its inherent attributes and susceptibility to regulatory changes. This work offers insights into the nature of market responses to regulatory intervention, providing an invaluable perspective on the equilibrium between cryptocurrency market behaviour and the evolving European regulatory landscape.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101040"},"PeriodicalIF":5.5,"publicationDate":"2024-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142422738","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 technology innovation and corporate resilience","authors":"Baizhen Zhang ,&nbsp;Jingjing Zhang ,&nbsp;Changrun Chen","doi":"10.1016/j.gfj.2024.101042","DOIUrl":"10.1016/j.gfj.2024.101042","url":null,"abstract":"<div><div>This study identifies over 220,000 digital invention patent applications for digital invention and creates an index of enterprise-level digital technology innovations. Using an empirical analysis based on a two-way fixed-effects model, this study examines the impact of digital technology innovation on enterprise resilience. Results show that digital technology innovations improve enterprise resilience. This improvement is mainly achieved by reducing internal and external information asymmetry, reducing operating costs, improving management levels and operational efficiency, and increasing market profitability and sustainable earning capacity. Moreover, this study extracted all announcements containing phrases such as “strategic alliance,” “strategic co-operation,” and “business alliance” from 3.208 million announcements on the JUCHAO website and further filtered them to select those strategic alliances in digital technology as their content of collaboration and identified them as digital technology strategic alliances. The findings show that companies that join digital technology strategic alliances have a greater impact on improving enterprise resilience. Furthermore, this study found that digital technology innovation can significantly improve the enterprise resilience with better network infrastructure and a more comprehensive intellectual property protection system. This study expands the research scope of the microlevel effects of the digital economy and provides valuable insights for governments to optimize digital economy policies and enterprises to develop digital innovation strategies.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101042"},"PeriodicalIF":5.5,"publicationDate":"2024-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142357064","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":"Climate risk, ESG ratings, and the flow-performance relationship in mutual funds","authors":"Sara Ali ,&nbsp;Ihsan Badshah ,&nbsp;Riza Demirer ,&nbsp;Prasad Hegde ,&nbsp;Lavinia Rognone","doi":"10.1016/j.gfj.2024.101041","DOIUrl":"10.1016/j.gfj.2024.101041","url":null,"abstract":"<div><div>We extend the burgeoning literature on climate finance by examining the informational role of mutual fund sustainability ratings on the asset allocation decisions by investors when faced with climate risks. Utilizing data on a large sample of equity mutual funds in Australasia (Australia and New Zealand), we find that climate risk plays a significant role on the sensitivity of fund flows to past performance. We find that the sensitivity is stronger for mutual funds that enjoy high sustainability ratings, and we show that the informational value of past performance over subsequent fund flows becomes more important when investors face greater climate risks. We argue that sustainability ratings of managed funds not only complement performance but also help improve the efficiency of asset allocation decisions, more so during a heightened climate risk environment.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101041"},"PeriodicalIF":5.5,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142703380","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":"Political polarization and state government bonds","authors":"Pei Li ,&nbsp;Leo Tang ,&nbsp;C. Bryan Cloyd","doi":"10.1016/j.gfj.2024.101039","DOIUrl":"10.1016/j.gfj.2024.101039","url":null,"abstract":"<div><div>This study examines the effect of political polarization in state legislatures on state bond yields in the United States. Political polarization, defined as the ideological divide between Democratic and Republican members of the state legislative chambers, reflects legislators' willingness to seek bipartisan compromises. We expect high polarization states to be riskier because they are likelier to experience gridlock, negatively affecting economic development and debt service commitment. Findings suggest a significant positive relation between bond yields and political polarization. A one-standard-deviation increase in polarization increases bond yields by 7.81 basis points and total interest expense by $2.3 million for an average bond issue. Additionally, this study finds that the effect of polarization on bond yields is stronger for general obligation bonds.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"63 ","pages":"Article 101039"},"PeriodicalIF":5.5,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142322928","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":"Consumer confidence and cryptocurrency excess returns: A three-factor model","authors":"Sanshao Peng,&nbsp;Syed Shams,&nbsp;Catherine Prentice,&nbsp;Tapan Sarker","doi":"10.1016/j.gfj.2024.101029","DOIUrl":"10.1016/j.gfj.2024.101029","url":null,"abstract":"<div><p>This study examined the relation between consumer confidence and cryptocurrency excess returns using a three-factor model of market, size and momentum. We analysed a dataset comprising 3318 cryptocurrencies from 1 January 2014 to 31 December 2022 based on the CoinMarketCap website. Results indicate a significant negative relation between the United States Consumer Confidence Index and cryptocurrency excess returns. The findings were reinforced based on robustness tests. This study contributes to consumer behaviour research and financial management within the cryptocurrency market. It also provides valuable insights for investors to strengthen their investment portfolios and for relevant authorities seeking to formulate effective policies for monitoring the cryptocurrency market.</p></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"62 ","pages":"Article 101029"},"PeriodicalIF":5.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1044028324001017/pdfft?md5=9ae6c30916c7096a026d125ff22c95c5&pid=1-s2.0-S1044028324001017-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142099474","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":"Resistance or motivation? Impact of climate risk on corporate greenwashing: An empirical study of Chinese enterprises","authors":"Jing-Yue Liu ,&nbsp;Quan Lei ,&nbsp;Ruojin Li ,&nbsp;Yue-Jun Zhang","doi":"10.1016/j.gfj.2024.101030","DOIUrl":"10.1016/j.gfj.2024.101030","url":null,"abstract":"<div><p>Increasing climate risk (CR) has pushed corporate environmental responsibility into the limelight, requiring a deeper understanding of its impact on corporate environmental behavior. This study examined the impact of CR on corporate greenwashing using data from A-share listed enterprises in China from 2009 to 2022. The findings indicate the following: (1) Augmented CR significantly discourages corporate greenwashing, primarily by improving corporate innovation capabilities; (2) Strong external and internal corporate governance magnifies the inhibitory effect of CR on greenwashing, stimulating authentic environmental actions during crises; (3) The impact of CR on greenwashing is more pronounced in executive teams with greater gender diversity, higher educational levels, shorter tenures, and increased visibility; (4) In the context of CR, greenwashing hinders corporate high-quality development; (5) The impact of CR is particularly notable in state-owned enterprises, enterprises in industries with lower competitive intensity, and enterprises in their maturity or decline stages.</p></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"62 ","pages":"Article 101030"},"PeriodicalIF":5.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142151635","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":"Global power and Stock market co-movements: A study of G20 markets","authors":"Rakesh Gupta ,&nbsp;Sama Haddad ,&nbsp;E.A. Selvanathan","doi":"10.1016/j.gfj.2024.101028","DOIUrl":"10.1016/j.gfj.2024.101028","url":null,"abstract":"<div><p>It is well understood that a handful of countries such as members of G7 and G20 influence the direction of the trade policy of nations across the world. Such influence places significant pressure on other countries to adapt their own policies to suit G7 and G20 as these two groups of countries control international agencies such as the World Bank and the United Nations. This influence is also evident from the deliberations of G7 and G20 member countries and how such more powerful nations seem to shape and influence the global economic agenda. This study aims to investigate the relationship between global power (as measured by the global power index GPI) and globalisation (as measured by the co-movements of stock markets time varying correlations). Previous studies have investigated various factors influencing stock market correlations; however, the relationship between GPI and stock market correlations has not been addressed thus far. To investigate this relationship, we created an index of correlations of each stock market with other stock markets in G20 countries. Our empirical results indicate that GPI has a positive and statistically significant impact on the stock market correlations in G20 nations. This is the first study to establish such relationship between GPI and change in relative stock market performance. In the past changes in relative stock market returns were mainly attributed to the economic factors and relative volatility of the underlying stock markets. As such this study makes an important contribution to body of knowledge by developing a theoretical argument to show how change in relative global power, influences changes in stock market correlations via changes in relative risk premium and returns. The findings of the study have implications for the development of global policies as global power influences stock market co-movements. The findings of this study may also have implications for investors who aim to construct globally diversified portfolios.</p></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"62 ","pages":"Article 101028"},"PeriodicalIF":5.5,"publicationDate":"2024-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1044028324001005/pdfft?md5=fc8a2e0ba86e68bbad8d1cc9a86018bf&pid=1-s2.0-S1044028324001005-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142083179","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}