{"title":"Do ESG-conscious fund managers drive green innovation? An LLM-based textual analysis of fund manager narratives","authors":"Yi Li , Tong Liu , Zhaohua Wang","doi":"10.1016/j.ribaf.2025.102983","DOIUrl":"10.1016/j.ribaf.2025.102983","url":null,"abstract":"<div><div>As ESG considerations gain increasing prominence, investors’ preferences for ESG factors are evolving, potentially influencing corporate governance practices. This study examines how fund managers’ ESG preferences affect the green innovation efforts of the firms they hold. Using large language models (LLMs) to analyze fund managers’ discussions in the quarterly reports of China’s mutual funds, we find that firms held by fund managers with stronger ESG preferences tend to demonstrate better green innovation performance. The positive impact of ESG-conscious fund managers on green innovation is primarily driven by increased R&D expenditures, the hiring of additional R&D personnel, and the alleviation of financing constraints. Additionally, the strength of this effect varies with factors such as analyst coverage, environmental performance, corporate governance structures of the firms, and the consistency of fund managers’ ESG preferences. This research not only highlights the utility of LLMs in corporate finance studies but also offers valuable insights into the role of fund managers’ personal preferences in shaping corporate governance and innovation strategies.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102983"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144134918","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":"Can Large Language Models forecast carbon price movements? Evidence from Chinese carbon markets","authors":"Rui Chen , Haiqi Jiang , Tingyu Guo , Chenyou Fan","doi":"10.1016/j.ribaf.2025.102951","DOIUrl":"10.1016/j.ribaf.2025.102951","url":null,"abstract":"<div><div>This paper investigates the impact of Large Language Models (LLMs) on forecasting Chinese carbon prices. We introduce a novel two-stage forecasting framework integrating a Time-Series Model (TSM) and Large Language Models. Initially, we use historical data on Chinese Emission Allowance prices to train the TSM for preliminary predictions. LLMs then refine these predictions, which process a sequence of past and corresponding future prices as a chain of thought. Additionally, we utilize the LLM to analyze and categorize the sentiment of news headlines, generating market sentiment labels that enhance the LLM’s predictive accuracy. Our findings indicate that LLMs can improve TSM forecasts by 28–38 % across different regional markets. Furthermore, incorporating news sentiment labels into the LLM contributes an additional reduction in forecasting deviations, ranging from 3–4 %.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102951"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143937831","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":"How do global board reforms affect managerial investment decisions?","authors":"Shu-Miao Lai , Chih-Liang Liu","doi":"10.1016/j.ribaf.2025.102934","DOIUrl":"10.1016/j.ribaf.2025.102934","url":null,"abstract":"<div><div>This study investigates how global board reforms affect managerial investment decisions. After remedying the biases of staggered difference-in-differences regression estimators, we corroborate that global board reforms significantly improve investment efficiency, reflected in the reduction of both over-investment and under-investment. Importantly, our analysis highlights that the real effects of these reforms occur through improved financial reporting quality. These results are primarily driven by reforms related to increased board and audit committee/auditor independence. Furthermore, global board reforms significantly affect investment efficiency more in comply-or-explain countries than in rule-based countries. Collectively, we provide new insights into how global board reforms improve investment efficiency.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102934"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143922500","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":"Stylized facts of GameFi","authors":"Boxiang Jia , Dehua Shen","doi":"10.1016/j.ribaf.2025.102952","DOIUrl":"10.1016/j.ribaf.2025.102952","url":null,"abstract":"<div><div>This paper investigates the stylized facts of GameFi, a rapidly growing segment within the blockchain and gaming industries. Our empirical results show that GameFi exhibits heavy-tail distributions, short-term autocorrelations, volatility clustering and reverse leverage effects. We also observe long-range dependence in both returns and volatility, which suggests that shocks to GameFi markets can have persistent effects over time. By testing the power-law correlation between price and volume, we show that high trading volumes tend to be associated with significant price movements. Hence, our findings highlight that GameFi tokens share several fundamental stylized facts align with traditional financial markets, even though they refer to a relatively new and emerging asset class.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102952"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143950449","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}
Tomasz Kaczmarek , Ender Demir , Wael Rouatbi , Adam Zaremba
{"title":"Tariff exposure and sectoral vulnerability: Evidence from equity market responses to the 2025 U.S. trade shock","authors":"Tomasz Kaczmarek , Ender Demir , Wael Rouatbi , Adam Zaremba","doi":"10.1016/j.ribaf.2025.102925","DOIUrl":"10.1016/j.ribaf.2025.102925","url":null,"abstract":"<div><div>We analyze global stock market reactions to the U.S. tariff announcement of April 2, 2025, using daily returns across 11 major industries in 67 countries. Equity prices fell sharply, particularly in energy, basic materials, and technology. The cross-country variation reflects three main drivers: tariff exposure, technological competitiveness, and sector-specific valuation profiles. Countries with larger, wealthier, and more innovation-oriented markets experienced steeper losses, suggesting that investors viewed them as a greater competitive threat to U.S. producers. Within sectors, investors favored firms perceived as safer. Structural vulnerabilities, rather than direct trade exposure, were the primary drivers of market reactions.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102925"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144089624","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}
Francesco Martielli , Enrico Battisti , Tomás Félix Gonzalez-Cruz , Antonio Salvi
{"title":"Carbon credits and financial performance: Exploring the moderating role of CSR strategy and corporate governance practices","authors":"Francesco Martielli , Enrico Battisti , Tomás Félix Gonzalez-Cruz , Antonio Salvi","doi":"10.1016/j.ribaf.2025.102919","DOIUrl":"10.1016/j.ribaf.2025.102919","url":null,"abstract":"<div><div>Climate change poses a significant challenge to humanity, requiring urgent action across all sectors of society. Globally, companies are increasingly active in their climate efforts and future mitigation commitments. This paper explores the role of Carbon Credits in climate change management, particularly focusing on their impact on financial performance. Drawing on the resource-based view theory and legitimacy theory frameworks, the study analyses a sample of global listed companies that adopted carbon credits as a strategy for emissions reduction. This study employs a Pooled Ordinary Least Squares (POLS) model to investigate the relationship between Carbon Credits and financial performance and explore the potential influence of CSR strategy and the quality of Corporate Governance as moderating variables. The findings reveal that the mitigation of carbon emissions through the implementation of Carbon Credits has a positive influence on financial performance and moderating variables play a significant role in this relationship. Furthermore, the study emphasises the potential of climate finance instruments for carbon reduction in improving financial outcomes. Corporate stakeholders may leverage these insights to integrate climate finance instruments and align sustainability with financial performance aims.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102919"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144107380","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":"Top management team biographical similarity and persistent green innovation: Evidence from Chinese listed companies","authors":"Daquan Gao , Songsong Li","doi":"10.1016/j.ribaf.2025.103001","DOIUrl":"10.1016/j.ribaf.2025.103001","url":null,"abstract":"<div><div>This research integrates upper echelons with institutional theories to examine how top management team (TMT) biographical similarity influences persistent green innovation. Using NLP analysis on 21,360 firm-year observations from Chinese listed companies (2013–2022), we find that TMT biographical similarity enhances persistent green innovation through the mediating role of green total factor productivity (GTFP), with institutional pressures further strengthening this effect. Our contributions include: (1) transforming upper echelons methodology from static demographics to dynamic cognitive profiling through semantic pattern recognition in executive biographies, bridging management with computational linguistics; (2) challenging diversity-innovation assumptions by demonstrating how strategic consistency from biographical similarity drives green innovation through GTFP as the pathway translating executive coherence into sustainability performance; and (3) revealing how shared TMT interpretive schemas filter institutional pressures, enabling strategic adaptation while establishing micro-foundations for sustained environmental strategies. From a managerial perspective, firms should strategically compose TMTs with shared career experiences, incorporate green productivity metrics into performance evaluations, and develop institutional engagement strategies tailored to varying regulatory pressures to optimize long-term sustainability outcomes.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 103001"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144123560","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":"Exploring the nexus between sustainable energy tokens, electric vehicles, and the hydrogen economy","authors":"Marouene Mbarek","doi":"10.1016/j.ribaf.2025.102999","DOIUrl":"10.1016/j.ribaf.2025.102999","url":null,"abstract":"<div><div>The aim of this research is to explore the transmission of tail risk between energy tokens and sustainable equity sectors, specifically focusing on the electric vehicle industry (EVI) and the hydrogen economy (HEI). To achieve this objective, we combine the Conditional Autoregressive Value at Risk (CAViaR) model with the Time-Varying Granger-Causality (TVGC) method and the Wavelet Coherency approach, over the period from April 8, 2020, to February 16, 2024. The TVGC results reveal unidirectional causal relationships from energy tokens to these equity sectors. However, bidirectional causality exists between SNC and HEI. These causalities predominantly occur during significant events such as the Covid-19 pandemic, the cryptocurrency bubble, the Russian-Ukrainian conflict, and the collapses of FTX and SVB. These findings are consistent with those identified by the Wavelet coherency method, which shows variability in the frequency of causality between energy tokens and equity sectors. Additionally, the assessment of portfolio implications based on CAViaR’s 5 % VaR for pairs of markets demonstrates the ability of energy tokens to mitigate tail risk transmission when incorporated into portfolios of electric vehicle and hydrogen economy equities. These insights are valuable for crypto managers and investors in adjusting and optimizing their hedging strategies.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102999"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144154873","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":"Management integrity and the cost of equity capital: Evidence from Chinese listed firms","authors":"Mo Yang , Sishi Yue , Dayong Dong , Jiawei Cao","doi":"10.1016/j.ribaf.2025.102935","DOIUrl":"10.1016/j.ribaf.2025.102935","url":null,"abstract":"<div><div>This paper empirically investigates the relationship between management integrity, as assessed using textual analysis and machine learning techniques based on the Upper Echelons Theory and Trust Theory from social psychology, and the cost of equity capital. The findings demonstrate that the integrity-related language disclosed in the management discussion and analysis (MD&A) reflects the internal ethical standards of managers, and is negatively associated with the cost of equity capital. Corporate governance and information asymmetry serve as channels through which management integrity influences capital costs, respectively. Further analysis identifies the negative correlation between management integrity and capital costs is particularly noticeable in firms with a non-state-owned nature or a robust regional legal system. Additionally, management integrity exhibits a positive association with the company’s future value. Briefly, this study contributes to existing literature on managerial personal characteristics, and provides practical recommendations for talent management at the executive level in enterprises.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102935"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143917416","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":"Environmental regulations and bond pricing: A quasi-natural experiment based on the new environmental protection law","authors":"Qian Wang , Li Wang , Yuan Zhang , Hongfeng Peng","doi":"10.1016/j.ribaf.2025.102921","DOIUrl":"10.1016/j.ribaf.2025.102921","url":null,"abstract":"<div><div>We extend the existing body of research in law and finance by exploring it through the lens of environmental protection legislation. Using the implementation of the new Environmental Protection Law as a quasi-natural experiment, we find that the credit spread of bonds issued by heavily polluting enterprises in both the primary and secondary bond markets can be significantly enhanced by the implementation of the new Environmental Protection Law. After decomposing bond credit spreads into liquidity spreads and default spreads, we further find that the implementation of the new Environmental Protection Law significantly increases bond default spreads, with no significant impact on liquidity spreads. And the increased impact of the new Environmental Protection Law on bond credit spreads is primarily driven by penalty effects, investor sentiment effects, and resource effects. Additionally, the effect on bond credit spreads diminishes as customer concentration decreases, social awareness increases, and companies engage in green innovation. It is also more significant for mature enterprises and long-term bonds. This paper has a certain reference significance for evaluating the economic effects of the new Environmental Protection Law, guiding further targeted policy efforts, and achieving economic green transformation.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102921"},"PeriodicalIF":6.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143899233","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}