{"title":"Greening the retail banking industry: Evidence from German bank account consumers","authors":"Sophie Maria Anneke Klein , Friedemann Polzin","doi":"10.1016/j.irfa.2025.104326","DOIUrl":"10.1016/j.irfa.2025.104326","url":null,"abstract":"<div><div>While investor behaviour in relation to sustainable finance products has recently received scholarly attention, consumer adoption of these products remains poorly understood. This study investigates the reasoning behind adopting sustainable bank accounts at the household level using a quantitative approach with a nationally representative sample of 1501 consumers in Germany. The most important determinant for adopting these accounts was sustainable finance self-efficacy – in other words, the perceived impact that the consumer can make by using the product. Other significant determinants include the consumers' willingness to pay a premium for the sustainability characteristic. Sustainable values, trust in bank in provider, and financial literacy are less relevant drivers of adoption. The study identified five distinct consumer clusters with different levels of adoption to generate more targeted industry and policy responses due to limited uptake. The results highlight the need for product providers and policymakers to raise awareness of the impact of private finances on sustainability in order to accelerate the adoption of sustainable banking products.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104326"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144098437","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}
{"title":"Gender and ESG investing: Same behavior but different motivations","authors":"Cynthia Assaf , Jérôme Monne , Loic Harriet","doi":"10.1016/j.irfa.2025.104327","DOIUrl":"10.1016/j.irfa.2025.104327","url":null,"abstract":"<div><div>How does gender influence ESG (Environmental, Social, Governance) investing behavior? Using survey data from a sample of French investors, we primarily find no significant gender differences in the proportion of ESG funds or stocks held, nor in the <em>willingness to pay</em> to invest in a firm with a high ESG score. However, this lack of significance results from two simultaneous significant indirect gender effects acting in opposite directions. On the one hand, women, compared to men, are found to more strongly endorse specific sustainability criteria related to the fight against discrimination, which, in turn, increases the adoption of socially responsible investing behavior. On the other hand, women's weaker interest in great global environmental challenges results in a decrease in their ESG exposure. These attitudinal differences by men and women align with findings in social psychology literature, which suggests that women's adoption of pro-social/environmental behaviors is typically motivated by <em>communal</em> attitudes (i.e. community-oriented), whereas for men, such behaviors are more often driven by <em>agentic</em> motivations (self-rewarding). A clearer segmentation of ESG investment products, focusing on gender-specific preferences, could improve their adoption by both women and men, and help firms meet MiFID II's requirements by better aligning with investors' preferences.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104327"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144089113","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}
{"title":"The nonlinear dynamic effects of fintech on carbon emissions: Evidence from Chinese cities","authors":"Xiao Yan Li , Huanbo Zhang , Zhenfeng Peng","doi":"10.1016/j.irfa.2025.104335","DOIUrl":"10.1016/j.irfa.2025.104335","url":null,"abstract":"<div><div>The rapid evolution of financial technology (fintech) is reshaping the financial ecosystem, yet its environmental implications remain understudied. Leveraging a novel dataset spanning 280 Chinese cities, this study examines the non-linear relationship between fintech maturity and carbon emissions, with a focus on the moderating role of banking competition. Using web crawlers and text recognition techniques to quantify fintech levels through Baidu News keyword frequency, we demonstrate that fintech development follows an inverted U-shaped trajectory in relation to carbon emissions: early-stage expansion increases emissions, whereas post-2015 advancements drive mitigation. Mechanism analysis reveals that green innovation and manufacturing servitization are critical pathways. Heterogeneity analysis further demonstrates that the inverted U-shaped effect of fintech on carbon emissions is predominantly observed in non-resource-dependent cities, while in resource-dependent cities, carbon emissions consistently rise with fintech development. Furthermore, intensified banking competition amplifies fintech's emission-reduction potential, particularly in non-resource-dependent regions. These findings provide actionable insights for policymakers to align fintech-driven financial reforms with sustainable development goals.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104335"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144123957","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}
{"title":"Unpacking the impact of public attention on green investment: Insights from climate sentiment on social media","authors":"Yamin Xie , Qixuan Ying","doi":"10.1016/j.irfa.2025.104325","DOIUrl":"10.1016/j.irfa.2025.104325","url":null,"abstract":"<div><div>This study examines the impact of public attention on corporate green investment decisions and the mechanisms involved, focusing on the role of climate sentiment. Public attention is measured using the Baidu search index, while corporate green investment is assessed as the ratio of environmental investments to total revenue. A climate sentiment index is constructed using text analysis and lexicon methods. The results indicate that increased public attention significantly enhances corporate green investment, with negative climate sentiment amplifying the effects of public oversight. Non-technology firms exhibit greater responsiveness than technology firms. Additionally, the new “Environmental Protection Law” strengthens the moderating role of sentiment. Firms located in eastern regions and major urban centers demonstrate higher sensitivity to public attention and climate sentiment. This research underscores the critical role of climate sentiment in shaping corporate sustainability strategies, offering new theoretical insights and practical guidance for advancing green finance and sustainable development.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104325"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144134977","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}
{"title":"Executive retirement plan freezes and firm policies","authors":"Zacharias Petrou , Adamos Vlittis","doi":"10.1016/j.irfa.2025.104328","DOIUrl":"10.1016/j.irfa.2025.104328","url":null,"abstract":"<div><div>When firms freeze their employees qualified defined benefit (DB) pension plans, they often re-evaluate and may similarly freeze their non-qualified supplemental executive retirement plans (SERPs). This study draws from agency theory to investigate the determinants and consequences of SERP freezes. We find that the decision to freeze SERPs is predominantly influenced by the power dynamics between top executives and the board of directors, alongside talent retention concerns. Moreover, our analysis reveals that SERP freezes lead to significant changes in corporate behavior. Firms that implement these freezes tend to distribute pension-related cost savings to their shareholders and are less likely to pursue diversification strategies than firms that keep their SERPs open. This risk-shifting behavior manifests in lower equity and higher credit risk post-freeze. Overall, this study provides insights into the determinants of SERP freezes and enhances our understanding of the incentive alignment function of SERPs' within top executives' compensation structures.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104328"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144070555","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}
{"title":"Data element marketization and corporate investment efficiency: Evidence from China","authors":"Shan Wu , Mengqi Zou , Tongen Jin","doi":"10.1016/j.irfa.2025.104329","DOIUrl":"10.1016/j.irfa.2025.104329","url":null,"abstract":"<div><div>Data elements have been a crucial driving force for companies in optimizing resource allocation. For improved collection, availability, and access, marketization of data elements, as a significant development trend in the digital economy era, is gradually becoming integrated with and profoundly transforming corporate operational models and decision-making logics, exerting a far-reaching impact on corporate investment decisions and efficiency. Based on the research scenario in which data-trading platforms have been successively established in various cities in China since 2014, this study constructs a multiperiod difference-in-differences model to explore the impact and mechanism of data element marketization on corporate investment efficiency. Results indicate that data element marketization can significantly enhance corporate investment efficiency, with mechanism analysis revealing that this effect occurs by intensifying market competition, alleviating financing constraints, and improving management efficiency. Heterogeneity analysis reveals that data element marketization has a more pronounced effect on investment efficiency in samples with better corporate governance, higher corporate technological intensity, better regional legal institutional environments, and greater local government attention to the digital economy. Further analysis shows that data element marketization can alleviate overinvestment and underinvestment. This study reveals the value-creation role of data element marketization from the perspective of investment efficiency, providing empirical evidence and policy insights for the government to further its reforms in the market-oriented allocation of data elements.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104329"},"PeriodicalIF":7.5,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144071885","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}
{"title":"The nonlinear impact of firms' ESG disclosures on analysts' earnings forecast accuracy","authors":"Xuehui Zhang , Guoying Mu , Fei Han","doi":"10.1016/j.irfa.2025.104332","DOIUrl":"10.1016/j.irfa.2025.104332","url":null,"abstract":"<div><div>The disclosure of environmental, social, and governance (ESG) information by firms can signal to the capital markets the potential sustainable development capabilities of the company and provide oversight to curb opportunistic management practices. However, the continuous disclosure of ESG information not only leads to excessive investment and increased operational risks but also contributes to information overload in the capital markets. We examine the impact of firms' ESG disclosures on analyst earnings forecast accuracy (AEFA) using a nonlinear approach to capture both sides of ESG effects. Our nonlinear findings suggest that ESG disclosure has a U-shaped effect on AEFA. Specifically, a firm's ESG disclosure enhances AEFA but at a decreasing rate. The favorable effect becomes smaller as firms disclose more ESG, and eventually, increases in ESG disclosure led to worsening AEFA. The conclusion remains unchanged after an array of robustness checks. The mechanism test reveals that earnings management and media attention mediate the U-shaped relation between ESG disclosure and AEFA. Additional analysis shows that the U-shaped relation is more salient for SOEs and non-polluting firms. The findings not only broaden the research on the impact of ESG disclosure on AEFA, but also help investors make sound investment decisions.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104332"},"PeriodicalIF":7.5,"publicationDate":"2025-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144070544","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}
{"title":"Source control or end-of-pipe treatment: How green finance policy impacts enterprise carbon intensity","authors":"Chenliang Zhu , Jiajun Qi , Lingbing Feng , Xinyi Wang","doi":"10.1016/j.irfa.2025.104323","DOIUrl":"10.1016/j.irfa.2025.104323","url":null,"abstract":"<div><div>This paper evaluates the impact of green finance on enterprise carbon intensity utilizing the “Green Finance Reform and Innovation Pilot Zone” policy in China as a quasi-natural experiment design. The findings reveal that green finance effectively reduces enterprise carbon intensity, and this conclusion remains robust after a series of robustness checks. The mechanism analysis shows that green finance significantly increases the attention from capital markets, media, and government, while also reducing enterprises’ financing costs. However, under the increased pressure of external scrutiny and reduced financing costs, enterprises do not effectively control carbon emissions at the source. Instead, they increase their end-of-pipe pollution treatment to achieve emission reduction goals. Additionally, using the generalized random forest model in machine learning, this study finds that the proportion of fixed assets and Return on Equity (<em>ROE</em>) contribute most significantly to the heterogeneity of the policy effect. Further analysis reveals that the policy effect strengthens as the proportion of fixed assets increases, but gradually weakens with the rise of <em>ROE</em>.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104323"},"PeriodicalIF":7.5,"publicationDate":"2025-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144098471","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}
{"title":"Impact of political connections on constructing a unified national market: Evidence from inter-regional capital flows","authors":"Mengfei Wan , Li Li","doi":"10.1016/j.irfa.2025.104331","DOIUrl":"10.1016/j.irfa.2025.104331","url":null,"abstract":"<div><div>An essential form of capital flow, inter-regional investment consistently promotes regional coordination while accelerating economic development. In China, it is a key force in constructing a unified national market. As informal institutions, political connections can impact corporate investment decisions. This study examines panel data from Chinese A-share firms listed on the Shanghai and Shenzhen stock exchanges, focusing on the geographic diversification of investments. We investigate the impact of political connections on constructing a unified national market. Political connections reduce inter-regional investment and slow the construction of a unified national market. This effect operates through the mechanisms of higher rent-seeking costs and policy “burdens”. A lack of cross-provincial tenure among officials, high local fiscal deficits, and high regional unemployment rates significantly increase the negative impact of political connections on firms' cross-regional subsidiary distribution. Further analysis indicates that the negative effects of political connections on inter-regional investment are more pronounced in regions with lower levels of marketization and stronger local protectionism. The conclusions of this study augment the understanding of how political connections affect corporate decision-making and capital flows across regions, providing essential insights for advancing the construction of a unified national market.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104331"},"PeriodicalIF":7.5,"publicationDate":"2025-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144089111","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}
Yuqiang Cao , Yunxin Liu , Meiting Lu , Yaowen Shan , Yanglan Zu
{"title":"Generosity under environmental pressure: Climate change exposure and corporate philanthropy","authors":"Yuqiang Cao , Yunxin Liu , Meiting Lu , Yaowen Shan , Yanglan Zu","doi":"10.1016/j.irfa.2025.104336","DOIUrl":"10.1016/j.irfa.2025.104336","url":null,"abstract":"<div><div>This study examines the impact of firm-specific climate change exposure on the corporate philanthropy activities of Chinese firms. Our results show that climate change exposure significantly promotes corporate philanthropic donations by mitigating external pressures, maintaining corporate reputations, and stabilizing stock prices. Heterogeneity analyses indicate that the positive effect of climate change exposure is more pronounced for small and young firms, non-state-owned enterprises, and firms with higher equity incentives. The effect is also stronger in contexts characterized by high industry concentration, climate sensitivity, and the strong regional influence of Confucianism. Further analysis suggests that corporate philanthropy is particularly driven by climate change exposure that is linked to positive sentiments and to the physical and regulatory aspects of climate change exposure. Overall, the findings provide new insights into how a firm strategically responds to its exposure to climate change through its philanthropic activities.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"104 ","pages":"Article 104336"},"PeriodicalIF":7.5,"publicationDate":"2025-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144098440","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}