Journal of International Financial Markets Institutions & Money最新文献

{"title":"Understanding reputational risks: The impact of ESG events on European banks","authors":"Erdinc Akyildirim ,&nbsp;Shaen Corbet ,&nbsp;Steven Ongena ,&nbsp;David Staunton","doi":"10.1016/j.intfin.2025.102225","DOIUrl":"10.1016/j.intfin.2025.102225","url":null,"abstract":"<div><div>This study examines the financial impact of negative ESG events on European banks. Exploiting a dataset of 11,832 reputational shocks from 2007 through 2023, we find evidence of significant negative abnormal stock returns and increased volatility following negative media coverage. High-severity media coverage, as well as the reporting of previously unknown problems, increases the magnitude of the shock. We complement the main analysis with a rich dataset of bank characteristics to explain variations in the results. Furthermore, we find that deposit instability exacerbates these effects, such that banks with more volatile deposit bases suffer more pronounced stock price declines following ESG incidents, indicating that investors perceive them as more vulnerable to sudden changes in sentiment. However, banks with stronger ex-ante ESG engagement experience less deposit volatility and more muted market responses, which highlights the role of ESG practices in mitigating reputational risk. A range of placebo testing procedures are employed to demonstrate that these effects are specific to the bank-level ESG events in our data and not caused by general market movements. Our findings highlight the interconnection between ESG risk, investor and depositor reactions, and the protective value of sustained ESG engagement.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"105 ","pages":"Article 102225"},"PeriodicalIF":6.1,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145269867","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":"Detecting cross-firm momentum effects via shared analyst coverage: The role of leaders","authors":"Yang-Rong Mao ,&nbsp;Huai-Long Shi ,&nbsp;Huayi Chen ,&nbsp;Yu-Lei Wan","doi":"10.1016/j.intfin.2025.102237","DOIUrl":"10.1016/j.intfin.2025.102237","url":null,"abstract":"<div><div>Cross-firm momentum effects via shared analyst coverage are well-documented in developed markets, but their robustness remains unclear in emerging markets, where information diffusion is asymmetric and analyst coverage is highly concentrated. Our work revisits this effect in an environment of extreme informational frictions — the Chinese market. We reconstruct the information transmission channel within the analyst coverage network by introducing a novel weighting scheme based on strength centrality (<span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span>). This measure identifies influential leader firms that command disproportionate attention from both analysts and the market. Our results demonstrate that <span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span>-weighted connected-firm returns robustly predict cross-sectional stock returns, yielding significant and persistent profits even under a rigorous stock filter. This performance cannot be subsumed by strategies based on alternative weighting schemes or by explanations such as intra-industry cross-firm momentum and information discreteness. Further analysis reveals that the superiority of the <span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span>-based approach stems from its ability to effectively identify firms with stronger cross-period fundamental linkages. In addition, high-<span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span> stocks are characterized by higher investor attention, more efficient information processing, lower arbitrage costs, and greater international exposures. With this evidence, we further confirm a directional spillover: cross-firm momentum effects flow exclusively from these high-<span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span> leaders to low-<span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span> laggards, and there is no reverse spillover. Our findings suggest that cross-firm momentum may be systematically underestimated in many international markets due to methodological limitations rather than economic irrelevance. The <span><math><mrow><mi>S</mi><mi>C</mi></mrow></math></span>-based framework therefore offers a portable tool for global investors and researchers operating in environments with asymmetric information.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"105 ","pages":"Article 102237"},"PeriodicalIF":6.1,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145269870","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":"Social capital and FinTech lending: international evidence","authors":"Tony Cavoli ,&nbsp;Isma Khan ,&nbsp;G.M. Wali Ullah","doi":"10.1016/j.intfin.2025.102236","DOIUrl":"10.1016/j.intfin.2025.102236","url":null,"abstract":"<div><div>FinTech credit has grown significantly in recent years and can have important economic and financial outcomes. Social capital can provide societal benefits which impact FinTech lending. There are three factors that influence this connection: the inequality of income, the prevalence of digital technology, and the quality of institutions. This paper examines the relationship between social capital and FinTech lending for a panel of 56 countries for 2013–19, focusing on these important conditioning factors. We find that that greater social capital results in higher levels of FinTech lending. These results are robust to different model specifications, after correcting for possible endogeneity issues, and over different indicators of social capital. This effect is more pronounced for countries with better institutions, higher internet penetration, and lower income inequality – highlighting the need for authorities to consider their impact when formulating policy.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"105 ","pages":"Article 102236"},"PeriodicalIF":6.1,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325873","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":"Do FinTech Acquisitions Affect Banks' ESG Performance? Evidence from Global M&As","authors":"Antonella Francesca Cicchiello ,&nbsp;Cristian Foroni ,&nbsp;Stefano Monferrà ,&nbsp;Giuseppe Torluccio","doi":"10.1016/j.intfin.2025.102229","DOIUrl":"10.1016/j.intfin.2025.102229","url":null,"abstract":"<div><div>This study investigates how mergers and acquisitions (M&amp;A) involving FinTech companies influence the Environmental, Social, and Governance (ESG) performance of acquiring banks. Using a global sample of 105 M&amp;A deals completed by banks worldwide between 2009 and 2023, our findings indicate that FinTech acquisitions tend to enhance banks’ ESG performance. However, this effect is not immediately observable, manifesting only in the fifth year post-acquisition. To refine the analysis, we match banks that engaged in FinTech acquisitions with similar banks that did not, controlling for pre-acquisition characteristics. This approach reveals a positive and significant effect on environmental (E) and overall ESG scores starting from the third year, with social (S) scores showing significant improvement as early as the first year post-acquisition.</div><div>These findings contribute to the understanding of how FinTech M&amp;As shape the ESG performance of traditional banks. The results also provide valuable insights for bank managers, policymakers, and financial regulators, emphasizing the role of FinTech acquisitions in advancing sustainability within the banking sector.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"105 ","pages":"Article 102229"},"PeriodicalIF":6.1,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145269868","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":"Does biodiversity matter for firm value?","authors":"Simona Cosma ,&nbsp;Stefano Cosma ,&nbsp;Daniela Pennetta ,&nbsp;Giuseppe Rimo","doi":"10.1016/j.intfin.2025.102240","DOIUrl":"10.1016/j.intfin.2025.102240","url":null,"abstract":"<div><div>This paper investigates the relationship between firms’ impact on biodiversity and its firm value and the economic and financial mechanisms underlying this link, filling a gap concerning the financial materiality of biodiversity loss. By analysing a global panel of 1,848 publicly listed companies across 49 countries from 2018 to 2022, this study highlights how the Corporate Biodiversity Footprint (CBF) influences not only firms’ market valuations (Tobin’s Q, Market-to-Book) but also their operating profitability as measured by Return on Assets (ROA). At the same time, the CBF affects firms’ cash generation capacity both decreasing the level and increasing the volatility of operating cash flows. Further heterogeneity analyses reveal that the effect of CBF on firm value is particularly strong for large firms, firms producing tangible goods, firms headquartered in megadiverse countries, and countries with a high level of biodiversity conservation. The erosion of ROA is especially evident in countries already severely affected by biodiversity loss. The results have important implications for investors, banks, corporate managers, and policymakers to improve risk pricing, forward-looking corporate governance, and realign corporate strategies and capital allocation with global biodiversity targets.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"105 ","pages":"Article 102240"},"PeriodicalIF":6.1,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145364598","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":"Spillover effects of global fund flows","authors":"Yang Zhang ,&nbsp;Huanhuan Zheng","doi":"10.1016/j.intfin.2025.102209","DOIUrl":"10.1016/j.intfin.2025.102209","url":null,"abstract":"<div><div>We apply a factor model to estimate the spillover effects of global fund flows across international equity and bond markets. We document robust evidence of global and regional spillovers of equity and bond flows in the transmission of external shocks, especially to emerging markets (EMs) during episodes of financial crises and capital stops. Macroprudential policies are effective in alleviating global and regional spillovers to EMs. However, we find no similar evidence for capital controls. Foreign and passive investors mitigate global and regional spillovers, but not sustainable investors whose scale may be too small to have any major impact. We observe bilateral spillovers between equity and bond markets within the same economy; however, their magnitudes are not comparable to those of global or regional spillovers.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"104 ","pages":"Article 102209"},"PeriodicalIF":6.1,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145046128","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 effects of structural reforms on gross capital inflows in OECD countries","authors":"Christos Mavrogiannis ,&nbsp;Athanasios Tagkalakis","doi":"10.1016/j.intfin.2025.102221","DOIUrl":"10.1016/j.intfin.2025.102221","url":null,"abstract":"<div><div>Utilizing a narrative database on structural reforms in 25 OECD countries from 1985 to 2020, we investigate the effects of labor and product market reforms on gross capital inflows. By applying the local projection method and addressing reform endogeneity with the Augmented Inverse Probability Weighted estimator, we find that structural reforms have a positive medium-term effect on both direct and portfolio investment. In particular, reforms boost investment, especially in environments of high quality financial institutions and amid low public debt.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"104 ","pages":"Article 102221"},"PeriodicalIF":6.1,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009997","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":"Revisiting central bank credibility: Results from a new survey","authors":"Joanna Mackiewicz-Łyziak ,&nbsp;Tymoteusz Mętrak","doi":"10.1016/j.intfin.2025.102222","DOIUrl":"10.1016/j.intfin.2025.102222","url":null,"abstract":"<div><div>Literature on economists’ perceptions of central bank credibility is limited, with Alan Blinder’s work remaining the seminal piece. In this study, we examine how views on various aspects of central bank credibility have evolved over the past two decades, since Blinder’s first survey on this topic. We present the results of the survey conducted in March and April 2024 among 319 experts in the fields of central banking and monetary economics. The questionnaire includes items from the original survey, as well as several new ones, particularly those related to the impact of unconventional monetary policy on credibility, credibility measurement, and central bank objectives. The results indicate that economists still perceive central bank credibility as considerably important for different aspects of central bank activities. In the study, respondents who were central bank practitioners considered credibility more important for monetary policymaking than did academics. Independence, a history of honesty, and transparency were identified as the most important attributes of central bank credibility, while unconventional monetary policies and large fiscal expansions were not considered threats to credibility. These results offer important implications for central banks aiming to formulate relevant policy guidelines.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"104 ","pages":"Article 102222"},"PeriodicalIF":6.1,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144988412","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":"Bearish bets and the press: On the relation between short interest and media tone","authors":"Heiko Jacobs ,&nbsp;Alexander Lauber ,&nbsp;Sebastian Müller","doi":"10.1016/j.intfin.2025.102205","DOIUrl":"10.1016/j.intfin.2025.102205","url":null,"abstract":"<div><div>We analyze the extent to which proxies for short interest at the firm level influence the tone of media reporting for the cross-section of firms. The examination of the German stock market shows that there is a significantly negative relation. Nevertheless, this relation becomes often, though not always, insignificant after thoroughly controlling for relevant company characteristics. Past performance as well as measures of differences of opinion and information uncertainty prove to be particularly important for tonality. These findings are similar for domestic and foreign reporting. With the exception of salience shocks, these results are also obtained for both public and non-public short interest. Additional evidence results from article characteristics and the aggregated time series, among others. On a broader level, the results contribute to the discussion about drivers of media reporting in financial markets.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"104 ","pages":"Article 102205"},"PeriodicalIF":6.1,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144890194","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":"Accounting vs technical information: what matters more for stock return predictability?","authors":"Nusret Cakici ,&nbsp;Adam Zaremba","doi":"10.1016/j.intfin.2025.102207","DOIUrl":"10.1016/j.intfin.2025.102207","url":null,"abstract":"<div><div>We employ machine learning models to determine what matters more for stock return predictability: technical data or accounting information. Technical data holds an advantage—it consistently yields more accurate forecasts and higher portfolio returns. This superiority is not limited to the U.S. market but extends to major developed markets worldwide, at times showing even stronger effects. Furthermore, it remains remarkably robust across firm sizes and time periods. However, its edge is most pronounced at short horizons and comes at the cost of higher turnover. Accounting signals, while weaker overall, perform better over longer horizons and support lower-cost implementation. Finally, technical strategies excel in volatile, hard-to-value contexts, whereas accounting-based models fare better when valuation uncertainty is low.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"104 ","pages":"Article 102207"},"PeriodicalIF":6.1,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144893332","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}