Asia-Pacific Journal of Financial Studies最新文献

Directors' and Officers' Liability Insurance, Liquidity Risk, and Stock Returns: Evidence from Taiwan's Stock Market 董事责任保险、流动性风险与股票收益：来自台湾股票市场的证据

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-06-20 DOI: 10.1111/ajfs.70005

Chih-Yuan Cheng, Yun-Lan Tseng

{"title":"Directors' and Officers' Liability Insurance, Liquidity Risk, and Stock Returns: Evidence from Taiwan's Stock Market","authors":"Chih-Yuan Cheng, Yun-Lan Tseng","doi":"10.1111/ajfs.70005","DOIUrl":"https://doi.org/10.1111/ajfs.70005","url":null,"abstract":"This study reveals a notable anomaly in Taiwan's stock market, where stocks with substantial directors' and officers' (D&O) insurance coverage tend to yield higher expected returns, partly due to their exposure to liquidity risk. First, firms purchasing extensive D&O insurance coverage experience increased stock illiquidity, which is influenced by the inadequate quality of information disclosure. This observation supports the moral hazard-based information opacity hypothesis. Second, we introduce an illiquidity-based mimicking factor and show that portfolios with higher (lower) D&O insurance coverage display positive (negative) loadings on this factor, underscoring the importance of liquidity risk in asset pricing. Third, this market-wide illiquidity mimicking factor explains approximately one-third of the observed premium associated with variations in D&O insurance coverage across certain model specifications. This research challenges the behavioral mispricing hypothesis by highlighting the liquidity-driven covariance risk linked to the D&O insurance anomaly, thereby providing fresh insights into asset pricing dynamics in emerging markets.","PeriodicalId":8570,"journal":{"name":"Asia-Pacific Journal of Financial Studies","volume":"54 3","pages":"365-395"},"PeriodicalIF":1.8,"publicationDate":"2025-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144493010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"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

Ex-Officers on the Board: Military Experience and Corporate Ethics 前董事会成员：军事经验和企业道德

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-06-13 DOI: 10.1111/ajfs.70008

Hyun-Dong Kim, Taeyeon Kim, Ji Yeol Jimmy Oh, Kwangwoo Park

引用次数: 0

Relaxation of Antitrust Regulations and Shareholder Returns: Evidence from the Korean Market* 反垄断规制放宽与股东回报：来自韩国市场的证据*

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-06-10 DOI: 10.1111/ajfs.70010

Hye Seok Kim, Chung Young Chung, Hong Kee Sul, Farzan Yahya

引用次数: 0

Friendly Juridical Representative Directors and Managerial Investment Decisions—Yes, the Derivatives Hedging Matter* 友好的法人代表董事和管理投资决策——是的，衍生品对冲问题*

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-05-26 DOI: 10.1111/ajfs.70006

Pei-Yu Weng, Ching-Lung Chen, Yu-Shen Lin

{"title":"Friendly Juridical Representative Directors and Managerial Investment Decisions—Yes, the Derivatives Hedging Matter*","authors":"Pei-Yu Weng, Ching-Lung Chen, Yu-Shen Lin","doi":"10.1111/ajfs.70006","DOIUrl":"https://doi.org/10.1111/ajfs.70006","url":null,"abstract":"Under Article 27 of Taiwan's Company Act, juridical entities can designate representatives to act as directors of firms in which they invest. This institutional feature has raised concerns regarding the effectiveness with which such representative directors (particularly the friendly representative directors, FDIRs) can monitor and/or advise on firm operations. This study first examines whether FDIRs are associated with investee overinvestment. Prior studies have found that financial derivatives are important tools for risk management, reducing cost of capital and preventing underinvestment. This study extends these works and further examines whether the relationship between FDIRs and overinvestment is moderated by the use of hedging derivatives. Empirical results show that the proportion of FDIRs is negatively associated to firm overinvestment, suggesting that FDIRs improve the monitoring and/or advising functions of firm investment activities. A further test reveals that this negative relationship is pronounced for firms that are not engaged in derivative hedging activities. This implies that FDIRs are likely to incorporate managerial hedging programs into their monitoring and/or advising functions when examining firm investment decisions, thereby restraining overinvestment in firms that are not engaged in derivative hedging. Collectively, this study provides evidence that, in emerging markets like Taiwan, FDIRs tend to inhibit overinvestment, and this behavior is actually moderated by firm hedging derivatives activity.","PeriodicalId":8570,"journal":{"name":"Asia-Pacific Journal of Financial Studies","volume":"54 3","pages":"309-339"},"PeriodicalIF":1.8,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144492613","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"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

Stock Market Reactions to Supply Chain Disruptions and Recovery from the 2022 Shanghai Lockdown* 股市对供应链中断的反应和2022年上海封锁后的复苏*

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-04-11 DOI: 10.1111/ajfs.70003

Kyunghee Song, Yun Shin Lee, Moon Su Koo

{"title":"Stock Market Reactions to Supply Chain Disruptions and Recovery from the 2022 Shanghai Lockdown*","authors":"Kyunghee Song, Yun Shin Lee, Moon Su Koo","doi":"10.1111/ajfs.70003","DOIUrl":"https://doi.org/10.1111/ajfs.70003","url":null,"abstract":"This paper investigates the effects of the 2022 Shanghai lockdown and its subsequent lifting on global supply chains during the COVID-19 pandemic. We first identify four focal firms—Tesla, Volkswagen, SAIC Motors, and General Motors—most frequently cited in the news articles as experiencing supply chain disruptions due to the lockdown. Using an event study methodology, we estimate abnormal stock returns for these focal firms and their tier-1 global suppliers following the lockdown and its lifting announcements. We find significant and systematic stock market reactions for the suppliers of the focal firms, whereas the focal firms themselves do not exhibit statistically significant stock reactions. Specifically, suppliers experienced significantly negative abnormal returns during the lockdown, with the opposite effect observed upon the lifting of the lockdown. Furthermore, supplier characteristics such as capital expenditure and inventory turnover significantly influenced cumulative abnormal returns during the lockdown, while leverage and R&D intensity affected returns during the lifting event. Compared to the suppliers of benchmark firms, those of the focal firms experienced significantly more negative cumulative abnormal returns in the lockdown case, while no significant difference was observed between them in the lifting case.","PeriodicalId":8570,"journal":{"name":"Asia-Pacific Journal of Financial Studies","volume":"54 2","pages":"152-187"},"PeriodicalIF":1.8,"publicationDate":"2025-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajfs.70003","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143852999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"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

Concentrate or Diversify? Economic Policy Uncertainty and Supplier-Base Concentration 集中还是分散？经济政策不确定性与供应商集中度

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-03-24 DOI: 10.1111/ajfs.70002

Ran Duan, Chengda Liu

引用次数: 0

ESG Controversies and Firm Value: Moderating Role of ESG Performance* ESG争议与企业价值：ESG绩效的调节作用*

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-02-28 DOI: 10.1111/ajfs.70001

Hyeong Joon Kim, Tae-Wook Ahn, Junesuh Yi

{"title":"ESG Controversies and Firm Value: Moderating Role of ESG Performance*","authors":"Hyeong Joon Kim, Tae-Wook Ahn, Junesuh Yi","doi":"10.1111/ajfs.70001","DOIUrl":"https://doi.org/10.1111/ajfs.70001","url":null,"abstract":"This study investigates the impact of a firm's environmental, social, and governance (ESG) controversies on its value and examines the moderating role of ESG initiatives in mitigating this impact. It further explores how this moderating effect varies based on factors such as reputational risk, external monitoring, agency motivations, and the recurrence of controversies. Using a novel machine learning approach, this study measures ESG controversies among publicly traded Korean firms by analyzing over 20 million news articles from major Korean media outlets. The findings indicate that ESG controversies negatively affect firm value, but this adverse impact is mitigated by stronger ESG performance, underscoring the insurance-like role of ESG. The moderating effect is particularly significant for firms facing high reputation risk, greater external monitoring, or with ESG activities that are less likely to be driven by agency motives. Moreover, non-repetitive ESG controversies exert a more substantial negative effect on firm value compared to repetitive ones, highlighting the crucial role of ESG in these situations. Consistent results are observed using short-term firm value measures, such as cumulative abnormal returns surrounding the release of ESG controversy news. Overall, this study contributes to the ESG literature by demonstrating that ESG can provide shareholders with an insurance-like benefit, supporting stakeholder theory.","PeriodicalId":8570,"journal":{"name":"Asia-Pacific Journal of Financial Studies","volume":"54 2","pages":"228-269"},"PeriodicalIF":1.8,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143852677","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"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

Big Data and Machine Learning in ESG Research* ESG研究中的大数据和机器学习*

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2025-01-27 DOI: 10.1111/ajfs.12503

Kai Li

引用次数: 0

Acknowledgement 确认

IF 1.8 4区经济学

Asia-Pacific Journal of Financial Studies Pub Date : 2024-12-12 DOI: 10.1111/ajfs.12502

引用次数: 0

Judicial Effectiveness and Cost of Debt: Evidence From A Quasi-Natural Experiment in China* 司法效力与债务成本：来自中国准自然实验的证据*

IF 1.8 4区经济学