{"title":"Female directors and social responsibility of microfinance institutions","authors":"Kais Bouslah , Qian (Jan) Li , Asma Mobarek","doi":"10.1016/j.intfin.2025.102164","DOIUrl":"10.1016/j.intfin.2025.102164","url":null,"abstract":"<div><div>We investigate whether female directors influence the social responsibility of Microfinance Institutions (MFIs). We also explore the factors that might affect the influence of female directors on the <em>different</em> dimensions of MFIs’ social responsibility. Using an international sample of 362 MFIs during the sample period 2010–2018, we find that the impact of female directors on social responsibility of MFIs is positive and not uniform across the various dimensions of social responsibility. We also find that the impact of female board members on MFIs’ social responsibility is stronger when MFIs are structured as not-for-profit organizations. However, local cultural gender values and institutional strength do not affect the relationship between female board members and the social responsibility of MFIs. We contribute to the emerging research stream of women’s representation in the boardrooms of organizations supplying public goods.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102164"},"PeriodicalIF":5.4,"publicationDate":"2025-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144090346","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":"Tax avoidance opportunity for multinational enterprises: effects of digitalized tax administration in China","authors":"Yilan Chen , Shaohai Lei","doi":"10.1016/j.intfin.2025.102177","DOIUrl":"10.1016/j.intfin.2025.102177","url":null,"abstract":"<div><div>This study investigates the impact of digitalized tax administration (DTA) on multinational enterprises’ (MNEs’) tax avoidance, with a specific focus on outward foreign direct investment (OFDI) in tax havens. Using a quasi-natural experiment based on the implementation of Golden Tax Project III (GTP III) in China, we find that home country DTA significantly reduces the difference between nominal and effective tax rates for MNEs by 1.2%. This reduction is primarily driven by a contraction in OFDI breadth in tax havens, which restrains MNEs’ tax avoidance. We demonstrate an asymmetric effect wherein DTA does not significantly influence domestic firms’ tax avoidance, which is attributed to their ability to facilitate cross-regional investment. We also explore the various responses to cross-border tax avoidance approaches employed by MNEs to mitigate the adverse effects of DTA on corporate tax avoidance. Overall, our findings highlight the critical role of home country DTA in managing MNEs’ tax avoidance, particularly in the context of developing countries.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102177"},"PeriodicalIF":5.4,"publicationDate":"2025-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144090345","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}
Erika Berle, Wanwei (Angela) He, Bernt Arne Ødegaard
{"title":"The stock market and corporate consequences of ethical exclusions by the world’s largest fund","authors":"Erika Berle, Wanwei (Angela) He, Bernt Arne Ødegaard","doi":"10.1016/j.intfin.2025.102174","DOIUrl":"10.1016/j.intfin.2025.102174","url":null,"abstract":"<div><div>We investigate the stock market and corporate consequences of ethically motivated portfolio exclusions. The divestments by Norway’s “Oil Fund,” the world’s largest SWF, provide a sample of stocks facing widespread exclusions by institutional investors. We estimate a return premium (alpha) of about 5% for this “unethical portfolio.” We also consider firms where the oil funds’ exclusion has been reversed. For this portfolio of “newly ethical firms” we do not find a return premium going forward. We investigate to what extent these results can be directly linked to the Oil Fund’s actions. We do not find evidence of a causal link. We investigate the corporate reactions to exclusions. Only 14% of the excluded firms make sufficient changes to their operations for the exclusions to be revoked.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102174"},"PeriodicalIF":5.4,"publicationDate":"2025-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144069633","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}
Lewis L. Gakpa , Issouf Soumaré , Hugues K. Kouadio , Charles K.D. Adjasi
{"title":"Financial sector development and intra-African trade","authors":"Lewis L. Gakpa , Issouf Soumaré , Hugues K. Kouadio , Charles K.D. Adjasi","doi":"10.1016/j.intfin.2025.102176","DOIUrl":"10.1016/j.intfin.2025.102176","url":null,"abstract":"<div><div>This paper examines the nature of the relationship between Financial Sector Development (FSD) and intra-African trade. Using a sample of African countries with available data from 1998 to 2021<strong>,</strong> and robust estimation techniques that address endogeneity and omitted variables biases, we find a positive significant impact of the composite financial development indicator and cross-border banking flows on intra-African trade. Further analysis reveals that the effects of the financial institution sub-indicators are more pronounced than those of the financial market sub-indicators. The effects are also heterogeneous across the different African Regional Economic Communities (RECs). Finally, our results show that financial sector development affects intra-African trade indirectly through its impact on the services and industrial sectors.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102176"},"PeriodicalIF":5.4,"publicationDate":"2025-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143941197","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}
Mohan Fonseka , Yulong Ma , Chengcheng Bei , Lalith P. Samarakoon
{"title":"The effect of margin trading, stock index futures, and firm characteristics on stock price synchronicity: Evidence from China","authors":"Mohan Fonseka , Yulong Ma , Chengcheng Bei , Lalith P. Samarakoon","doi":"10.1016/j.intfin.2025.102165","DOIUrl":"10.1016/j.intfin.2025.102165","url":null,"abstract":"<div><div>This paper examines the effects of margin trading and stock index futures and the moderating role of firm-level and institution-level characteristics on stock price synchronicity in the Chinese stock markets. We find that both margin trading and stock index futures are positively correlated with stock price synchronicity. Margin trading and stock index futures have greater effects on state-owned enterprises (SOEs), firms with political connections, and firms with male CEOs. Domestic-listed firms and firms in regions with less institutional efficiency experience stronger effects of margin trading and stock index futures on stock price synchronicity. The financial crisis has a negative impact on the above relationships. Overall, margin trading exhibits a stronger effect on stock price synchronicity than stock index futures. Furthermore, we find that the breadth of institutional ownership, management entrenchment, transparency, and information asymmetry are significant channels in moderating the effect of margin trading and stock index futures on stock price synchronicity.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102165"},"PeriodicalIF":5.4,"publicationDate":"2025-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143907647","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":"Banking crises and the performance of microfinance institutions","authors":"Valentina Hartarska , Denis Nadolnyak , Rui Chen","doi":"10.1016/j.intfin.2025.102166","DOIUrl":"10.1016/j.intfin.2025.102166","url":null,"abstract":"<div><div>Banking crises affect both banks and their clients, yet their impact on microfinance institutions (MFIs) that serve marginalized populations excluded from the formal financial system remains underexplored. This study examines the effects of banking crises on MFIs using panel data from 1,746 institutions across 123 countries, including five that experienced crises between 2004 and 2017. Despite limitations in the available data, the analysis reveals that most MFIs did not suffer adverse effects on financial performance or outreach, nor did they exhibit mission drift away from their traditional client base. However, microfinance banks—a subset of MFIs—did experience mission drift during banking crises. The findings suggest that MFIs’ resilience stems from their unique characteristics and focus on marginalized clients who often operate within the informal or semi-formal economy. The study highlights the resilience of the microfinance sector and the potential vulnerabilities among microfinance banks, offering insights for donors and stakeholders.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102166"},"PeriodicalIF":5.4,"publicationDate":"2025-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143879150","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 countercyclicality of microlending rates: Does the business model of microfinance institutions matter?","authors":"Hélyoth T.S. Hessou , Hubert Tchakoute Tchuigoua","doi":"10.1016/j.intfin.2025.102163","DOIUrl":"10.1016/j.intfin.2025.102163","url":null,"abstract":"<div><div>Microfinance institutions (MFIs) are critical to financial inclusion in developing countries, but face challenges in maintaining profitability while serving low-income populations, particularly during economic downturns. This study examines whether MFIs adjust interest rates in response to the business cycle, hypothesizing an increase during downturns. Analyzing data from 1,711 MFIs over 16 years (2003–2018), we find a negative relationship between interest rates and the business cycle. However, certain MFI characteristics mitigate this countercyclical behavior. Specifically, MFIs in the top tertile of the group lending method, deposit-taking MFIs, and subsidy-based MFIs show less cyclical interest rate behavior, contributing to greater stability. Further analysis sheds light on the mechanisms underlying this countercyclical behavior, leading to two main conclusions. First, shareholder-based MFIs tend to raise interest rates during economic downturns, suggesting that profit maximization drives the countercyclical effect. Second, increases in provisioning and funding costs are passed on to borrowers through higher interest rates during downturns. Using propensity score matching and Lewbel’s (2012) instrumental variable approach to address endogeneity concerns, our findings remain robust and consistent across different econometric specifications and measures of the business cycle.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102163"},"PeriodicalIF":5.4,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143864349","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}
Erdinc Akyildirim , Shaen Corbet , Abhishek Mukherjee , Michael Ryan
{"title":"Global perspectives on open banking: Regulatory impacts and market response","authors":"Erdinc Akyildirim , Shaen Corbet , Abhishek Mukherjee , Michael Ryan","doi":"10.1016/j.intfin.2025.102159","DOIUrl":"10.1016/j.intfin.2025.102159","url":null,"abstract":"<div><div>This study investigates the adoption of open banking across several diverse global jurisdictions, focusing specifically on regulatory and market implications. Employing a comparative analysis, we examine the dual nature of open banking as both a regulatory framework and a technological innovation, exploring how different regulatory approaches shape its implementation and market reception. Results indicate significant variation in market responses to open banking announcements, presenting evidence of the underlying factors driving these disparities, such as the role of regulatory environments, technological infrastructures, and bank size in shaping market reactions.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"101 ","pages":"Article 102159"},"PeriodicalIF":5.4,"publicationDate":"2025-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143829651","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":"An intertemporal international asset pricing model: Theory and evidence","authors":"Gady Jacoby , Rose C. Liao , Yan Wang , Zhenyu Wu","doi":"10.1016/j.intfin.2025.102162","DOIUrl":"10.1016/j.intfin.2025.102162","url":null,"abstract":"<div><div>We utilize an intertemporal CAPM (Merton, 1973) framework to examine how exposure to currency risk is priced in foreign equity markets. We identify the fundamental determinants of foreign equity return and foreign currency loadings with respect to a world equity factor and global currency risk factor. To capture the time-varying nature of risk exposures, we employ the mean-reverting dynamic conditional correlation (DCC) model of Engle (2002) to estimate conditional covariances and betas. Our regression results show that estimated risk-return coefficients on betas and covariances are significant and robust to subsample tests based on emerging markets and developed markets. We also show that the risk-return tradeoff on foreign equity returns and relative risk aversion vary cyclically across financial stress regimes.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"102 ","pages":"Article 102162"},"PeriodicalIF":5.4,"publicationDate":"2025-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143843895","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":"Cash or Cache? Distributional and business cycle implications of CBDC holding limits","authors":"Jana Anjali Magin, Ulrike Neyer, Daniel Stempel","doi":"10.1016/j.intfin.2025.102161","DOIUrl":"10.1016/j.intfin.2025.102161","url":null,"abstract":"<div><div>Many central banks are discussing the introduction of a Central Bank Digital Currency (CBDC). Empirical evidence suggests that households differ in their demand for a CBDC. This paper investigates the macroeconomic and distributional effects of different CBDC regimes within a New Keynesian model with a heterogeneous household sector. Households prefer to hold part of their income in CBDC as a means of payment as it facilitates transactions. If they cannot hold their preferred share of CBDC, they will face transaction costs. We find that the introduction of a binding limit on CBDC holdings can increase the shock absorption capabilities of an economy. If the limit is used as a monetary policy instrument, prices will be stabilized more effectively after shocks. However, a CBDC implies distributional effects across households.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"101 ","pages":"Article 102161"},"PeriodicalIF":5.4,"publicationDate":"2025-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143820544","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}