Journal of Financial Stability最新文献

Board gender diversity at target firms and acquisition decisions of gender diverse bidders

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-04-11 DOI: 10.1016/j.jfs.2025.101410

Abeyratna Gunasekarage , Kristina Minnick , Syed Shams

引用次数: 0

Geopolitical risk and corporate maturity mismatch

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-27 DOI: 10.1016/j.jfs.2025.101408

Man Wang , Xueting Wang

{"title":"Geopolitical risk and corporate maturity mismatch","authors":"Man Wang , Xueting Wang","doi":"10.1016/j.jfs.2025.101408","DOIUrl":"10.1016/j.jfs.2025.101408","url":null,"abstract":"<div><div>This paper explores how geopolitical risk affects corporate maturity mismatch using a sample of Chinese listed corporations. We find that geopolitical risk significantly exacerbates corporate maturity mismatch. Specifically, GPR increases corporate long-term investment and short-term debt, while decreasing corporate short-term investment and long-term debt. Further, the impact of GPR is amplified by R&D investment, industry competitiveness, and financial constraint, but weakened by corporate credit quality. The results of the mechanism test suggest that geopolitical risk exacerbates corporate maturity mismatch by increasing corporate information asymmetry and default risk. Additionally, we find that the impact of GPR on corporate maturity mismatch exhibits industry heterogeneity, and the positive effect of geopolitical risk on corporate maturity mismatch is more significant for high-growth corporations, non-state-owned corporations, small corporations, multinational corporations, and capital-intensive corporations. Finally, based on the extended Fama-French models, we construct two firm-level GPR indicators and the results indicate that individual GPR exacerbates maturity mismatch. Our paper enriches the research on the factors affecting maturity mismatch and helps corporations better manage operational and uncertainty risks.</div></div>","PeriodicalId":48027,"journal":{"name":"Journal of Financial Stability","volume":"78 ","pages":"Article 101408"},"PeriodicalIF":6.1,"publicationDate":"2025-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143759766","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}

引用次数: 0

The impact of country- and firm-level governance on capital allocation efficiency: New evidence from India

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-27 DOI: 10.1016/j.jfs.2025.101407

Akash Singh Yadav , Inder Sekhar Yadav

{"title":"The impact of country- and firm-level governance on capital allocation efficiency: New evidence from India","authors":"Akash Singh Yadav , Inder Sekhar Yadav","doi":"10.1016/j.jfs.2025.101407","DOIUrl":"10.1016/j.jfs.2025.101407","url":null,"abstract":"<div><div>This paper investigates the impact of country-level governance on corporate investment efficiency using data from Indian-listed firms between 2009 and 2022. Additionally, we explore how country-level governance interacts with firm-level corporate governance to influence investment inefficiency. Using World Bank's worldwide governance indicators, our findings from panel econometric models reveal that country-level governance and its subcomponents (political stability, government effectiveness, regulatory quality, rule of law, control of corruption, and voice and accountability) negatively affect investment inefficiency, underinvestment, and overinvestment. This suggests that robust governance at country-level serves as a control mechanism, reducing companies' likelihood of investing above or below optimal levels. Furthermore, we find that the effect of firm-level corporate governance (measured using a newly constructed governance index) on investment inefficiency is more pronounced in weak country-level governance environments, indicating a substitutive relationship. Similar patterns are observed in overinvestment and underinvestment scenarios. This evidence implies that when country-level governance is inadequate in mitigating agency conflicts and information asymmetries, firm-level corporate governance mechanisms become crucial for promoting investment efficiency. The robustness of our results is ensured through various methodological approaches. Sample selection bias is addressed using entropy balancing, while endogeneity concerns are mitigated with a combination of two-stage least squares, firm fixed effects, and a two-step generalized method of moments. Additionally, our findings remain consistent when using different proxies for both dependent and independent variables. Our empirical investigation provides valuable insights for regulators, policymakers, and corporate stakeholders in developing efficient investment policies.</div></div>","PeriodicalId":48027,"journal":{"name":"Journal of Financial Stability","volume":"78 ","pages":"Article 101407"},"PeriodicalIF":6.1,"publicationDate":"2025-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143816836","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}

引用次数: 0

Regional bank failures and volatility transmission 地区性银行倒闭与波动传导

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-20 DOI: 10.1016/j.jfs.2025.101404

William D. Lastrapes , Thomas F.P. Wiesen

引用次数: 0

CFO social networks and corporation taxation 首席财务官社交网络与公司税收

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-16 DOI: 10.1016/j.jfs.2025.101405

Ming Fang , Qiang Wu , Xin (Emma) Xu , Zejiang Zhou

{"title":"CFO social networks and corporation taxation","authors":"Ming Fang , Qiang Wu , Xin (Emma) Xu , Zejiang Zhou","doi":"10.1016/j.jfs.2025.101405","DOIUrl":"10.1016/j.jfs.2025.101405","url":null,"abstract":"<div><div>Despite the significance of social networks in influencing firm behavior, research on their impact on corporate tax behavior is limited. In this paper, we construct social networks of CFOs from U.S. companies based on their employment history, education, and non-professional activities. We find that firms with more socially connected CFOs have lower effective tax rates (ETR) compared to firms with less socially connected CFOs. This effect is more pronounced when corporate governance is weaker and managers have higher incentives. Furthermore, a firm's ETR decreases as CFO centrality increases. We do not observe similar results regarding the connectedness of boards of directors. Additionally, firm pairs exhibit similar ETRs when their CFOs are socially connected, suggesting an exchange of tax-related information among CFOs through their social networks. We also find that the past ETRs of firms with central CFOs predict the ETRs of firms with non-central CFOs. This indicates that less socially connected CFOs tend to follow the tax planning strategies of their more socially connected counterparts. Overall, our findings indicate that more socially connected CFOs possess more relevant information and resources regarding tax planning, leading to the adoption of more aggressive tax strategies compared to their less socially connected counterparts.</div></div>","PeriodicalId":48027,"journal":{"name":"Journal of Financial Stability","volume":"78 ","pages":"Article 101405"},"PeriodicalIF":6.1,"publicationDate":"2025-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143687574","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}

引用次数: 0

Movable assets as collateral in debt financing and effects on trade credit: Evidence from collateral law reforms

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-16 DOI: 10.1016/j.jfs.2025.101406

Xiao Li , Jeffrey Ng , Walid Saffar

引用次数: 0

The origin of financial instability and systemic risk: Do bank business models matter?

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-03-15 DOI: 10.1016/j.jfs.2025.101403

Rym Ayadi , Paola Bongini , Barbara Casu , Doriana Cucinelli

{"title":"The origin of financial instability and systemic risk: Do bank business models matter?","authors":"Rym Ayadi , Paola Bongini , Barbara Casu , Doriana Cucinelli","doi":"10.1016/j.jfs.2025.101403","DOIUrl":"10.1016/j.jfs.2025.101403","url":null,"abstract":"<div><div>Using a large sample of European listed banks, we investigate the relationship between a bank’s business model and systemic risk between 2005 and 2020, a period which includes various episodes of instability. Our findings indicate that, during tranquil periods, banks with different business models exhibit similar sensitivity to systemic risk. However, during periods of instability, the type of business model becomes critical: investment banks contribute more to and are more exposed to systemic risk. Distinguishing between endogenous and exogenous crises, our results reveal that market-oriented banks contribute more to systemic risk when instability is endogenous to the financial sector. Conversely, focused retail banks consistently show lower contributions and exposures to systemic risk. Additionally, our findings highlight the importance of business model migrations in reducing systemic risk. Banks transitioning from diversified to more retail-oriented models reduce their systemic risk, whereas migrations in the opposite direction do not exhibit the same benefit. These findings underscore the importance of maintaining diverse business models in the banking sector to enhance financial stability.</div></div>","PeriodicalId":48027,"journal":{"name":"Journal of Financial Stability","volume":"78 ","pages":"Article 101403"},"PeriodicalIF":6.1,"publicationDate":"2025-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143687067","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}

引用次数: 0

Bank recovery and resolution planning, liquidity management and fragility

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-02-25 DOI: 10.1016/j.jfs.2025.101395

Luca G. Deidda , Ettore Panetti

引用次数: 0

Determinants of global loan pricing: Creditor rights or country size?

IF 6.1 2区经济学

Journal of Financial Stability Pub Date : 2025-02-18 DOI: 10.1016/j.jfs.2025.101396

Manthos D. Delis , Maria Iosifidi

引用次数: 0

The digital dilemma: Corporate digital transformation and default risk