International Review of Financial Analysis最新文献

Exploring the factor zoo with a machine-learning portfolio 用机器学习组合探索因子动物园

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103599

Halis Sak , Tao Huang , Michael T. Chng

引用次数: 0

Strategic use of provisions: Evidence from European multinationals 条款的战略性使用：欧洲跨国公司的证据

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103756

Dennis Voeller , Juliane Voeller

{"title":"Strategic use of provisions: Evidence from European multinationals","authors":"Dennis Voeller , Juliane Voeller","doi":"10.1016/j.irfa.2024.103756","DOIUrl":"10.1016/j.irfa.2024.103756","url":null,"abstract":"<div><div>Provisions involve a high degree of judgment by corporate managers and substantially affect companies’ reported performance, arguably making them prone to earnings management. To analyze the strategic use of provisions under International Accounting Standard (IAS) 37, we examine the notes disclosures of large European companies that provide detailed information about yearly additions and utilized and unutilized reversals of prior provisions. First, our analysis reveals that firms suspected of earnings management tend to withhold disaggregated information on their provisions. Second, by focusing on firms that disclose detailed information, our study suggests that they strategically adjust provision expenses based on their earnings management incentives. Third, considering the use of provisions over time, we find that firms exhibit increased discretionary additions and decreased unused reversals during exceptionally profitable years, suggesting corporate managers engage in “cookie jar” accounting. In contrast, firms show lower discretionary additions and higher unused reversals in periods when they risk missing earnings benchmarks. Our findings suggest the strategic use of provisions and indicate that disaggregated notes disclosures on provisions can provide relevant insights into corporate earnings management strategies.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103756"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663262","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

Personal income tax reform and household savings rates: Evidence from a quasi-natural experiment in China 个人所得税改革与家庭储蓄率：来自中国准自然实验的证据

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103726

Yulong Chen , Yating Li , Wenrui Zeng , Yang Zhao

引用次数: 0

Forecasting U.S. Stock Returns Conditional on Geopolitical Risk and Business Cycles 以地缘政治风险和商业周期为条件预测美国股票回报率

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103707

Minh Tam Tammy Schlosky , Serkan Karadas , Adam Stivers

{"title":"Forecasting U.S. Stock Returns Conditional on Geopolitical Risk and Business Cycles","authors":"Minh Tam Tammy Schlosky , Serkan Karadas , Adam Stivers","doi":"10.1016/j.irfa.2024.103707","DOIUrl":"10.1016/j.irfa.2024.103707","url":null,"abstract":"<div><div>Using standard predictors in the forecasting literature, we forecast the U.S. stock market returns conditional on geopolitical risk and business cycles over the 1927–2021 period. We find that out-of-sample forecasting performance is significantly better in times of high geopolitical risk versus low geopolitical risk. Consistent with previous research, we find further evidence of improved return predictability in recessions. However, we find little difference in forecasting performance in recessions versus expansions once the level of geopolitical risk is controlled for. We find similar results when using stock market cycles and periods of positive/negative industrial production growth in place of recessions/expansions. Our study contributes to the forecasting literature by documenting that geopolitical risk by itself and in combination with business cycle indicators impacts the forecasting ability of standard forecasting variables in the literature. We also contribute to the literature on the adaptive markets hypothesis with evidence of time-varying return predictability. We find inconclusive evidence as to whether our results are based on time-varying predictability or time-varying risk.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103707"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

Digital literacy, relative poverty, and common prosperity for rural households 农村家庭的数字扫盲、相对贫困和共同富裕

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103739

Jian Zhang , Dongqiang Wang , Ming Ji , Kuo Yu , Mosha Qi , Hui Wang

{"title":"Digital literacy, relative poverty, and common prosperity for rural households","authors":"Jian Zhang , Dongqiang Wang , Ming Ji , Kuo Yu , Mosha Qi , Hui Wang","doi":"10.1016/j.irfa.2024.103739","DOIUrl":"10.1016/j.irfa.2024.103739","url":null,"abstract":"<div><div>Digital transformation has emerged as a crucial driver of economic development, yet its impact on rural China's socioeconomic landscape remains understudied. This research investigates how digital literacy influences common prosperity and relative poverty in rural China using comprehensive household-level data from the 2018 China Family Panel Studies (CFPS). Through robust econometric analysis, including multiple regression models and structural equation modeling, we examine both the direct effects of digital literacy on household economic outcomes and its indirect effects through the mediating channel of relative poverty. Our findings demonstrate that a one standard deviation increase in digital literacy scores corresponds to a 12.3 % reduction in relative poverty and a 15.7 % increase in household income, with these effects amplified in China's western regions and among unmarried individuals. The results are robust to various model specifications and controls for potential endogeneity. By establishing the causal pathways between digital skills and economic well-being, this study provides empirical evidence for policymakers to design targeted interventions that leverage digital literacy as a tool for reducing rural-urban disparities. Our findings contribute to the growing literature on digital inclusion and suggest that investing in digital skills training could be a cost-effective strategy for promoting inclusive growth in rural China.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103739"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663650","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

Driving green: Financial benefits of carbon emission reduction in companies 绿色驱动：企业减少碳排放的经济效益

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103757

Banovsha Ibishova, Bård Misund, Ragnar Tveterås

{"title":"Driving green: Financial benefits of carbon emission reduction in companies","authors":"Banovsha Ibishova, Bård Misund, Ragnar Tveterås","doi":"10.1016/j.irfa.2024.103757","DOIUrl":"10.1016/j.irfa.2024.103757","url":null,"abstract":"<div><div>This paper explores the relationship between carbon emissions reduction and corporate financial performance, leveraging a rich dataset of 14,866 observations from 2768 companies across 36 countries and regions, and 35 industries over the period 2002–2022. We find that carbon emissions reductions improve company financial performance, as measured by return on assets and return on equity, with this effect being even more pronounced for companies with higher carbon intensity. Additionally, country carbon regulations are positively associated with a company's financial performance, while higher ESG scores negatively impact it. Notably, we find no significant role for CSR reporting in driving financial gains. Overall, our findings suggest that companies can enhance financial performance by intensifying their carbon emission reduction efforts while also contributing to environmental stewardship. We recommend that businesses adopt tailored sustainability strategies that account for country, firm, and industry-specific factors to maximize these benefits across different regional and sectoral contexts.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103757"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663651","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

Leveraging climate risk disclosure for enhanced corporate innovation: Pathways to sustainable and resilient business practices 利用气候风险披露加强企业创新：通往可持续和有复原力的商业实践之路

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103724

Lingbing Feng , Dasen Huang , Fengwen Chen , Fangnan Liao

{"title":"Leveraging climate risk disclosure for enhanced corporate innovation: Pathways to sustainable and resilient business practices","authors":"Lingbing Feng , Dasen Huang , Fengwen Chen , Fangnan Liao","doi":"10.1016/j.irfa.2024.103724","DOIUrl":"10.1016/j.irfa.2024.103724","url":null,"abstract":"<div><div>In the context of global initiatives to mitigate climate change and biodiversity loss, corporations are increasingly confronted with environmental challenges. This study conducts a textual analysis of annual reports from Chinese A–share listed companies from 2007 to 2022, constructing a corporate climate risk disclosure index. This research investigates the influence of climate risk disclosures on corporate innovation outputs and explores the mechanisms driving this relationship. The findings indicate that climate risk disclosures substantially boost corporate innovation capabilities, primarily through elevating reputational capital, strengthening governance structures, and reduced financing costs. The results of the heterogeneity analysis reveal that the presence of institutional investors and a higher average age of management amplify the incentivizing effects of climate risk disclosure on innovation. In addition, this study examines the impact of climate risk disclosures on innovation inputs, efficiency, and quality, while also considering potential economic outcomes. These insights highlight the crucial influence of climate risk disclosures in promoting corporate innovation and sustainability, with valuable implications for policymakers seeking to enhance corporate transparency and innovation capabilities in response to climate challenges.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103724"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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 Heterogenous causality of repurchases: Analysis from the aspect of share collateralization 回购的异质因果关系：从股份抵押方面进行分析

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103725

Dachen Sheng , Heather A. Montgomery

{"title":"The Heterogenous causality of repurchases: Analysis from the aspect of share collateralization","authors":"Dachen Sheng , Heather A. Montgomery","doi":"10.1016/j.irfa.2024.103725","DOIUrl":"10.1016/j.irfa.2024.103725","url":null,"abstract":"<div><div>We explore the unique heterogeneity feature of the Chinese market to examine the relationship between firms' share collateralization by its largest shareholders and corporate repurchases. Furthermore, we analyze the divergent incentives resulting in different consequences for the performance of private firms and state-owned enterprises (SOEs). The policy effect of an amendment to the Company Law of the People's Republic of China is studied using the difference-in-differences method. The measure is changed to ensure the reliability and robustness of the causality results between collateralization and repurchases. The results show that higher collateralization increases the likelihood of firms' share repurchases. The repurchase incentive of firm performance diverges between private firms and SOEs. Some SOEs even attempt to support the policy and blindly herd to repurchase shares; however, when SOEs are assured of their operational efficiency, repurchases increase their profitability. Private firms use repurchases as a share price stabilizer to protect the interests of their large shareholders rather than to benefit minority and small shareholders. These results provide policy feedback and demonstrate the complexity of controlling for corporate incentives when market interests are highly mixed.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103725"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663261","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

Volatility transmission and hedging strategies across green and conventional stocks in global markets 全球市场绿色股票和传统股票的波动传导和对冲策略

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103727

Renata Karkowska , Szczepan Urjasz

{"title":"Volatility transmission and hedging strategies across green and conventional stocks in global markets","authors":"Renata Karkowska , Szczepan Urjasz","doi":"10.1016/j.irfa.2024.103727","DOIUrl":"10.1016/j.irfa.2024.103727","url":null,"abstract":"<div><div>To secure financing for climate initiatives, it is crucial to minimize the risk associated with green investments and attract investors committed to a robust, sustainable, low-carbon economy. Motivated by this need, this study investigates the volatility transmission between green and conventional stocks in the US, Europe, and China, and evaluates the effectiveness of hedging strategies for green investments. The period from June 1, 2016, to December 31, 2023, was selected to capture significant events impacting global markets, such as environmental regulations, the COVID-19 pandemic, and the Russia-Ukraine war, providing a comprehensive view of market dynamics under various conditions.</div><div>We adopted the <span><span>Diebold and Yilmaz (2014)</span></span> approach using a TVP-VAR model to analyze market connectedness. Additionally, we utilize multivariate portfolio techniques to assess the effectiveness of hedging strategies. Our findings reveal that the US market is the primary transmitter of volatility, while the Chinese green stock market acts as a net receiver. This indicates substantial benefits from employing risk hedging and portfolio diversification strategies.</div><div>The study underscores the importance of understanding the interconnected dynamics of stock markets for global investors and policymakers. By comprehending these relationships, investors can better manage risks and make informed decisions, while policymakers can develop strategies to support stable and resilient financial systems that foster sustainable investment.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103727"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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

The impact of digital-oriented mergers and acquisitions on enterprise labor demand 以数字化为导向的并购对企业劳动力需求的影响

IF 7.5 1区经济学

International Review of Financial Analysis Pub Date : 2024-11-01 DOI: 10.1016/j.irfa.2024.103778

Peng Liang , Lin Liang , Xinhui Tang

{"title":"The impact of digital-oriented mergers and acquisitions on enterprise labor demand","authors":"Peng Liang , Lin Liang , Xinhui Tang","doi":"10.1016/j.irfa.2024.103778","DOIUrl":"10.1016/j.irfa.2024.103778","url":null,"abstract":"<div><div>Digital-oriented mergers and acquisitions (DOMA) are increasingly being adopted as strategic options by enterprises during digital transformation. They represent a crucial pathway for enterprises to transition from traditional to digital capabilities and enhance their digital competitiveness. Utilizing data from Chinese A-share listed companies from 2010 to 2020, this study thoroughly examines the relationship between DOMA and corporate labor demand, as well as the underlying mechanisms. Our findings reveal that DOMA positively impacts labor demand. Additionally, DOMA increases the proportion of highly educated and skilled labor forces, thereby amplifying the impact of human capital. Mechanism research further shows that DOMA enhances market synergies, thereby boosting labor demand. Moreover, heterogeneity analysis suggests that the positive effect of DOMA on labor demand is particularly pronounced in enterprises with lower market shares, lower M&A premiums, higher market competition, non-high-tech enterprises and higher financial risk. This paper not only expands the research on DOMA and corporate labor demand, but also provides significant practical implications for generating new labor demand, catalyzing the intelligent transformation of enterprises.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103778"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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