{"title":"Charity Experience of Directors and Corporate Social Responsibility: Global Evidence","authors":"Xianda Liu, Wenxuan Hou, Brian G. M. Main","doi":"10.1111/eufm.12540","DOIUrl":"https://doi.org/10.1111/eufm.12540","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper studies the role of directors with prior experience of working in the charity sector (here labelled ‘charity directors’) in determining the corporate social responsibility (CSR) activity of firms on whose boards they sit. We predict that these charity directors shape the ethical climate of their boards and influence their CSR policies. The findings on firms across 50 countries show that the presence of such directors on a board is positively associated with the firm's environmental and social (E&S) performance. Such charity directors exert more influence following disasters that exogenously increase societal demand for CSR, suggesting a causal interpretation of their role. We further show that charity directors play a more active role in those countries where societal norms stress the importance of E&S issues. This does not seem to be a manifestation of organizational slack, as the link between charity directors and CSR is stronger in the presence of good corporate governance. Furthermore, the death of a charity director leads to a negative market reaction, suggesting that their efforts are in line with shareholder interests.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":"1445-1471"},"PeriodicalIF":3.1,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145013126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access","authors":"Chengbo Fu, Qiping Huang, Meimei Lin, Salman Tahsin","doi":"10.1111/eufm.12543","DOIUrl":"https://doi.org/10.1111/eufm.12543","url":null,"abstract":"<div>\u0000 \u0000 <p>We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.</p></div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":"1421-1444"},"PeriodicalIF":3.1,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145013288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Understanding Wealth-Tax Rates: An Investor-Utility Mapping to Capital-Gains Taxes","authors":"Adam Farago, Erik Hjalmarsson, Tamás Kiss","doi":"10.1111/eufm.12541","DOIUrl":"https://doi.org/10.1111/eufm.12541","url":null,"abstract":"<p>Wealth-tax rates are formulated as fractions of a capital stock, rather than fractions of income from capital, which makes them difficult to compare with other (income-based) tax rates. We derive investor-utility comparisons between wealth-tax rates and realized capital-gains tax rates, capturing two crucial features absent in naive comparisons: Risk-aversion and investment horizon, both of which magnify the effect of wealth taxes vis- à-vis capital-gains taxes. In numerical calibrations, we show that whereas a 1-percent wealth tax might naively be judged equivalent to a 10% capital-gains tax, a more accurate figure for a long-run risk-averse investor is 25%.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":"1413-1420"},"PeriodicalIF":3.1,"publicationDate":"2025-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12541","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145012782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Embracing the Future or Buying Into the Bubble: Do Sophisticated Institutions Invest in Crypto Assets?","authors":"Luke DeVault, H. J. Turtle, Kainan Wang","doi":"10.1111/eufm.12542","DOIUrl":"https://doi.org/10.1111/eufm.12542","url":null,"abstract":"<div>\u0000 \u0000 <p>We document that early institutional investors in cryptocurrencies exhibit innovation and adaptability in financial markets, despite the asset class's inherent ambiguity and risk. Investing in crypto assets signals a managerial willingness to undertake reputational and career risks. We compare the performance of institutions that engage in crypto investments with that of their non-crypto-investing peers. Our results indicate that institutional crypto investors outperform their peers by about 2.8% per year. Using propensity score matching, we find that early crypto investors outperform both followers and non-holders as crypto investments become increasingly prevalent in markets.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":"1398-1412"},"PeriodicalIF":3.1,"publicationDate":"2025-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145012939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economic Consequences of Social Unrest: Evidence from Initial Public Offerings","authors":"Philip Barrett, Thomas J. Boulton, Terry D. Nixon","doi":"10.1111/eufm.12539","DOIUrl":"https://doi.org/10.1111/eufm.12539","url":null,"abstract":"<p>Prior research attributes negative stock market performance following episodes of social unrest to elevated uncertainty. However, social unrest does not solely increase uncertainty but separately acts to decrease investor sentiment. To determine which effect dominates, we study initial public offering (IPO) underpricing, which responds differently to changes to uncertainty and investor sentiment. Consistent with the notion that social unrest dampens investor sentiment, we find that first-day returns are lower during times of greater social unrest. Limits to arbitrage and elevated home-country bias (strong institutional frameworks) intensify (mitigate) the impact of social unrest on underpricing.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":"1369-1397"},"PeriodicalIF":3.1,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12539","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145012565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christian Riis Flor, Emil Tilgaard Jensen, Alexander Schandlbauer
{"title":"Co-Investments in Private Equity: Do Investor Types Matter?","authors":"Christian Riis Flor, Emil Tilgaard Jensen, Alexander Schandlbauer","doi":"10.1111/eufm.12536","DOIUrl":"https://doi.org/10.1111/eufm.12536","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper utilizes detailed data from a Northern European private equity fund-of-funds to examine the determinants of co-investments. Unlike prior studies, we differentiate between two distinct types of co-investors: sidecar co-investors and direct co-investors. This distinction matters. Both types are more likely to participate in larger deals, but the effect is notably stronger for sidecar co-investments. Furthermore, if the internal funds available to a general partner (GP) are less than the initial capital used for the acquisition, a GP is more inclined to seek sidecar co-investors, while lower uncalled capital reduces the likelihood of co-investment offers.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1246-1265"},"PeriodicalIF":2.1,"publicationDate":"2024-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Entrepreneurial Firms and Bank Financing: Do Business Angels Play a Role?","authors":"Vincenzo Capizzi, Nicola Carta, Elisa Cavezzali, Ugo Rigoni","doi":"10.1111/eufm.12537","DOIUrl":"https://doi.org/10.1111/eufm.12537","url":null,"abstract":"<p>This paper investigates the contribution provided by business angels' (BAs) post-investment intervention to the interaction between young entrepreneurial firms and bank lending decisions within the entrepreneurial finance ecosystem. The analysis relies on a data set comprising 114 Italian BA-backed firms over the 2010–2018 period, alongside 498 matched firms. We find evidence that BAs' support makes it easier for entrepreneurial firms to raise follow-on bank financing. Additionally, we document the positive effects of both BAs' entrepreneurial experience and soft monitoring. These effects can be attributed to BAs' value-added contributions and their role in mitigating information asymmetries perceived by debt providers.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1217-1245"},"PeriodicalIF":2.1,"publicationDate":"2024-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12537","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mohammed Saharti, Asif Saeed, Sajid M. Chaudhry, Muhammad Ali Nasir
{"title":"Lending Relationships of Firms for a Just Transition","authors":"Mohammed Saharti, Asif Saeed, Sajid M. Chaudhry, Muhammad Ali Nasir","doi":"10.1111/eufm.12535","DOIUrl":"https://doi.org/10.1111/eufm.12535","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines lending dynamics for firms aiming for a “just transition”. Analyzing 37,426 firm-year observations from DealScan and Refinitiv's environmental, social and governance (ESG) transition data (2002–2021), we find that lenders offer lower interest rates to firms with prior relationships and strong ESG commitments, particularly environmental ones. While environmental factors receive favourable treatment, economic and governance transitions are less prioritized. Lenders tend to form more dispersed syndicates when supporting firms focused on ESG transitions, especially environmental ones. This research highlights the uneven focus within ESG transitions and emphasizes the underexamined area of governance, providing insights into lending relationships.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1195-1216"},"PeriodicalIF":2.1,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Correction to “The Impact of Credit Reforms on Bank Loans and Firm Leverage Around the World”","authors":"","doi":"10.1111/eufm.12538","DOIUrl":"https://doi.org/10.1111/eufm.12538","url":null,"abstract":"<p>Gonenc, H., F. Jansen, M. H. Tinoco, and M. Vulanovic. 2024. “The Impact of Credit Reforms on Bank Loans and Firm Leverage Around the World.” <i>European Financial Management</i> 30: 2449–2502. https://doi.org/10.1111/eufm.12477.</p><p>The institution in the author affiliation for the second author, Floris Jansen, has been misspelt. It should be ‘Houlihan Lokey’.</p><p>We apologize for this error.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 4","pages":""},"PeriodicalIF":3.1,"publicationDate":"2024-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12538","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145012354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}