International Review of Financial Analysis最新文献

{"title":"How does the state capital participation optimize the corporate green innovation structure: Evidence from listed private firms","authors":"Shi Li ,&nbsp;Xiaolong Yu ,&nbsp;Kaihao Qian","doi":"10.1016/j.irfa.2024.103671","DOIUrl":"10.1016/j.irfa.2024.103671","url":null,"abstract":"<div><div>This study draws on data from A-share listed businesses in China from 2011 to 2022. The presence of state capital significantly increases business participation in green innovation and improves its structure, transforming strategic innovation into meaningful innovation. The mechanism test demonstrates that using information governance, resource support, and corporate governance, including state capital participation, can enhance companies' green innovation structure. Heterogeneity research reveals that companies' industry pollution levels and greening goals determine whether state capital participation affects corporate green innovation. This link is critical for companies with fewer greening goals and lower pollution levels.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103671"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142593765","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":"Systemic risk effects of climate transition on financial stability","authors":"Javier Ojea-Ferreiro ,&nbsp;Juan C. Reboredo ,&nbsp;Andrea Ugolini","doi":"10.1016/j.irfa.2024.103722","DOIUrl":"10.1016/j.irfa.2024.103722","url":null,"abstract":"<div><div>We assess how climate transition risk, through its effects on asset prices, could impact financial stability. Using copula functions, we characterize the conditional distribution of financial firm returns under different climate-related market scenarios. We account for average and tail effects of climate transition scenarios on the value of financial firms using three systemic risk metrics: climate transition expected returns, climate transition value-at-risk, and climate transition expected shortfall. Empirical evidence indicates that European banks experience the highest systemic impacts from a disorderly transition, and that the cost of rescuing more risk-exposed financial firms from climate transition losses is relatively manageable.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103722"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142587397","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}

{"title":"Does high volatility increase connectedness? A study of Asian equity markets","authors":"Thomas F.P. Wiesen ,&nbsp;Oluwasegun Babatunde Adekoya ,&nbsp;Johnson Oliyide ,&nbsp;Richard Afatsao","doi":"10.1016/j.irfa.2024.103735","DOIUrl":"10.1016/j.irfa.2024.103735","url":null,"abstract":"<div><div>Financial market integration metrics based upon variance decompositions from vector autoregression (VAR) models have become quite popular, and prior literature shows how these metrics change over time. However, only a few studies explain what is driving connectedness to change. Using stock market volatilities from eight Asian equity markets, we postulate that volatility may be a driving force behind increased connectedness. We use a two-step VAR estimation procedure to analyze the dynamics between equity market volatility and connectedness. The first step estimates the VAR model over rolling windows; this yields a sequence of connectedness-measuring spillover indices. The second step re-estimates the VAR with the spillover index sequence as an endogenous variable. Impulse response analysis from the two-step procedure confirms that volatility shocks increase connectedness. The two-step procedure indicates that volatility shocks from Singapore, Hong Kong, and China affect connectedness the most, whereas Malaysia affects it the least. China’s direct effect on the volatilities of the other markets is small. However, since China has a considerable impact on connectedness, China may have an important indirect effect on the other markets by increasing the speed and ease with which volatility spreads from market to market.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103735"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663661","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":"United we stand, divided we fall: The impact of top management team stability on corporate litigation","authors":"Jun Bu ,&nbsp;Tianlun Fei ,&nbsp;Futong Zhou","doi":"10.1016/j.irfa.2024.103676","DOIUrl":"10.1016/j.irfa.2024.103676","url":null,"abstract":"<div><div>Escalating commercial litigation in emerging markets arouses growing concerns for listed companies, while certain corporate governance practices are proved to be effective in curbing litigation risks. Using panel data from China’s A-share listed companies, we demonstrate that a stable top management team is a cornerstone in reducing a firm’s exposure to litigation risk. We find that this inhibitory effect is achieved by mitigating agency problems, strengthening internal controls, and cultivating firm-specific human capital. Further analyses reveal that this effect is more pronounced when TMTs have more company ownership, exhibit stronger managerial discretion, and maintain a higher proportion of female executives, or when they experience greater environmental uncertainty. Additionally, a strong legal environment and institutional monitoring can both serve as substitutes for top management team stability in reducing corporate litigation risk. Our study contributes to the literature by providing empirical evidence of the positive impact of top management team stability on corporate risk management.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103676"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663276","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":"Does corporate culture impact tax shelter? A machine learning approach","authors":"Babak Mammadov ,&nbsp;Hamid Vakilzadeh ,&nbsp;Joanna Golden","doi":"10.1016/j.irfa.2024.103768","DOIUrl":"10.1016/j.irfa.2024.103768","url":null,"abstract":"<div><div>This study investigates whether the corporate culture of a firm affects its tax shelter behavior. We use a novel machine learning methodology to measure the corporate culture of a firm. Our results show that firms with stronger corporate culture are more likely to have material operations in tax haven countries and the extent of such operations is greater in these firms. The findings also suggest that firms with stronger corporate cultures engage in greater tax avoidance. Our results are robust to the use of both instrumental variables and difference-in-difference identification strategies. Finally, we show that having tax haven operations as a result of stronger corporate culture increases a firm's after-tax earnings in future periods.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103768"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663657","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":"International interest rate arbitrage: Study on a novel strategy","authors":"Wei Wu ,&nbsp;Zhuoran Li ,&nbsp;Xuan Feng","doi":"10.1016/j.irfa.2024.103705","DOIUrl":"10.1016/j.irfa.2024.103705","url":null,"abstract":"<div><div>This study examines the time-varying excess returns in an international interest rate arbitrage (IIRA) strategy, with a particular emphasis on these excess returns. Unlike traditional carry strategies that typically match funding and investment bonds' maturities or currencies, our novel IIRA strategy is a dynamically adjusted approach involves funding with a 1-year low-yield treasury bond while investing in 2- to 10-year high-yield bonds in foreign currencies. An analysis of Sharpe ratios, foreign exchange (FX), and yield excess return shows variations in the joint expectations hypothesis of the term structure (EHTS) and the uncovered interest rate parity (UIRP) lead to profits. However, the international strategies perform worse than the domestic carry strategies. Predictive factors, such as the Cochrane–Piazzesi, show limited effectiveness due to FX volatility. Therefore, future studies should examine more predictability factors.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103705"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663658","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":"Exploring the role of trade credit in facilitating low-carbon development: Insights from Chinese enterprises","authors":"Jingru Wang ,&nbsp;Tinghua Liu ,&nbsp;Noshaba Aziz ,&nbsp;Hongguang Sui","doi":"10.1016/j.irfa.2024.103760","DOIUrl":"10.1016/j.irfa.2024.103760","url":null,"abstract":"<div><div>As the world's largest emitter of carbon, China is proactively addressing climate change in a responsible manner. The country has set an ambitious goal of achieving the most significant reduction in carbon emission intensity globally within approximately 30 years. In light of the transition to a new low-carbon environment, it is imperative that Chinese enterprises assume a more proactive role in embracing carbon neutrality as a social responsibility. The question of how to supplement the green transformation funds that have not yet been covered by green finance has become a significant issue for Chinese enterprises seeking to achieve sustainable development and promote high-quality development. This study employs hand-collected data on companies' carbon emissions from 2018 to 2023, using the fixed effects model to conduct a comprehensive investigation of the role of trade credit embedded within the supply chain in driving the green evolution of Chinese companies and reducing their carbon dioxide emissions. The findings demonstrate that trade credit has a significant impact on reducing CO₂ emissions for Chinese businesses while also enhancing their commitment to adopting greener practices, their capacity for investing in green transformation, and the quality of their green outputs. The results of the heterogeneity analysis indicate that the acquisition of trade credit exerts a more pronounced suppressive influence on carbon emissions for heavy-polluting enterprises, non-state-owned enterprises, low-supplier concentration enterprises, and maturity stage enterprises. Similarly, the supply of trade credit notably curtails the carbon emissions for non-heavy polluting enterprises, non-state-owned enterprises, low-medium customer concentration enterprises, and maturity stage enterprises. The empirical findings of this study contribute to reconciling the substantial dilemma between corporate goals for energy conservation, emissions reduction, and production growth. This research offers key insights to support businesses in achieving a gentle transition towards energy efficiency and reduced carbon footprint in line with the overarching trend of sustainable and low-carbon development.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103760"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663656","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":"Evaluating the sophisticated digital assets and cryptocurrencies capacities of substituting international currencies in inflationary eras","authors":"Konstantinos A. Dimitriadis,&nbsp;Demetris Koursaros,&nbsp;Christos S. Savva","doi":"10.1016/j.irfa.2024.103693","DOIUrl":"10.1016/j.irfa.2024.103693","url":null,"abstract":"<div><div>This study investigates the dynamic nexus that major international currencies (US dollar, Euro, Japanese yen) exhibit with cryptocurrencies and highly innovative digital money (DeFi and NFT assets) during inflationary periods such as the Russia-Ukraine conflict (from 14 December 2021 until 1 March 2024). The Quantile Vector Autoregressive methodology as in <span><span>Cunado et al. (2023)</span></span> and daily data are adopted to investigate the net joint extended dynamic connectedness and network connectedness at lower and upper quantiles. Conventional international currencies act as hedgers against shocks while major cryptocurrencies are only modest generators with Ripple being an influential absorber of effects. DeFi mainly serve for counteracting losses from conventional investments in bear or bull markets and Maker is the most prominent generator of spillovers while NFTs mostly rely on a few very strong leaders –Gala being by far the strongest- to have an impact, imitating Bitcoin in the early cryptocurrency era.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103693"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142551891","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":"Is financial inclusion a source of happiness?","authors":"Axelle Heyert ,&nbsp;Laurent Weill","doi":"10.1016/j.irfa.2024.103717","DOIUrl":"10.1016/j.irfa.2024.103717","url":null,"abstract":"<div><div>This paper investigates whether financial inclusion affects life satisfaction. We perform regressions at the individual level on a large dataset of 59,209 individuals from 29 countries. We find evidence that financial inclusion improves life satisfaction. We further establish that the beneficial effect of financial inclusion takes place through a better health, education and to a lesser extent through the launch of a business. We observe that the positive impact of financial inclusion on life satisfaction is greater in countries with higher income per capita, and lower in countries recently struck by a financial crisis. Our results indicate that promoting financial inclusion can enhance happiness.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103717"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142571275","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":"Air pollution and perk consumption","authors":"Zisen Liu ,&nbsp;Xin Wang ,&nbsp;Ying Wang","doi":"10.1016/j.irfa.2024.103688","DOIUrl":"10.1016/j.irfa.2024.103688","url":null,"abstract":"<div><div>This study examines the relationship between air pollution and perk consumption and finds strong evidence that firms headquartered in areas with severe air pollution have higher levels of perk consumption. Two plausible mechanisms are executives' higher physiological needs for clean air and stronger bargaining power. We also find that the positive relationship between air pollution and perk consumption strengthens when it is difficult to compensate executives for their long-term air pollution exposure through monetary salaries. Additional analysis indicates that increased perk consumption may mitigate the harm of air pollution on firms' performance, supporting the incentive view of perk consumption from a new perspective of air pollution.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"96 ","pages":"Article 103688"},"PeriodicalIF":7.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142561224","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}