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From governance to stability: How party organizations in private enterprises influence stock price crash risk Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Huan Wang, Shui Li, Hengtao Liu
This article delves into the data of A-share listed private companies from 2010 to 2022, utilizing a DID model to conduct a comprehensive study on how the establishment of party organizations affects the risk of stock price crashes. The research reveals that party organizations significantly mitigate the risk of stock price crashes in private enterprises, particularly in areas with higher marketization
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Family firm successions: First-generation transitions in Latvia Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Jānis Bērziņš, Anete Pajuste
We examine the emergence, succession, and performance of the initial cohort of family firms in Latvia. Latvia offers a natural setting to examine succession challenges faced by first-generation firms because a majority of these firms were established shortly after the country regained independence in the early 1990s. Our findings indicate that in 44% of sample firms the founding family did not have
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The impact of geopolitical risk on sustainable markets: A quantile-time-frequency analysis Finance Research Letters (IF 10.4) Pub Date : 2024-04-16 Mohamad Husam Helmi, Ahmed H. Elsayed, Rabeh Khalfaoui
We examine the impact of Geopolitical Risk (GPR) on green, clean, and socially responsible markets by employing the newly proposed Wavelet Quantile Correlation, Cross-quantilogram and Causality-in-quantiles. Unlike earlier studies, we incorporate the GPR index to encompass the risk linked to conflict, acts of terrorism, and political tensions. In brief, our findings show that GPR emerges as a significant
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Heterogeneous dependence of the FinTech Index with Global Systemically Important Banks (G-SIBs) Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Hongjun Zeng, Mohammad Zoynul Abedin, Brian Lucey
This paper aims to investigate the Granger causality relationship in quantile between the FinTech Index and globally systemically important banks (G-SIBs). The result was observed that at the median and under conditions of extreme quantiles in the FinTech Index, there was no Granger causality relationship between the FinTech Index and the vast majority of systemically important banks. Our research
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CFO narcissism and corporate digital transformation✰ Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Wenyun Yao, Mengjiao Ni, Yuhang Qian, Shujing Yang, Xiaona Cui
CFO narcissism plays an essential role in the corporate digital transformation. This study empirically examines the relationship between CFO narcissism and corporate digital transformation using non-financial listed companies in the Shanghai and Shenzhen stock markets from 2010 to 2021 as a research sample. We found that CFOs' narcissistic tendencies promoted a risk-taking spirit, stronger decision-making
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FinTech and banks: Strategic partnerships that circumvent state usury laws Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Gregory Elliehausen, Simona M. Hannon
This paper investigates the role of interest rate regulation of consumer credit and institutional risk segmentation in FinTech lenders’ efforts to solicit new customers in the personal loan market. We find that strategic partnerships between FinTech companies and specialist banks target marginal-risk, near-prime and low-prime consumers, living in states with low interest rate ceilings for unsecured
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A critical analysis of the Weighted Least Squares Monte Carlo method for pricing American options Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 R. Mark Reesor, Lars Stentoft, Xiaotian Zhu
Least-squares Monte Carlo generates regression-based continuation value estimators that are heteroscedastic. Fabozzi et al. (2017) propose weighted least-squares regression to correct for this. We show that heteroscedastic-corrected estimators are more accurate than uncorrected estimators far from the exercise boundary and where the exercise decision is obvious. However, the corrected estimators do
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Assessing the volatility of green firms Finance Research Letters (IF 10.4) Pub Date : 2024-04-15 Lorán Chollete, Keener Hughen, Ching-Chih Lu, Weijia Peng
Environmentally responsible (‘green’) firms have important asset pricing implications. Whilst green firms’ performance has been formally studied in terms of returns and pricing (Bolton and Kacperczyk, 2022; Pástor et al., 2022), far less is known about their volatility. We analyze the volatility of green and brown firms from 2012 to 2021, through the multiple lens of GARCH, machine learning, and historical
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Debt vulnerabilities and house price responses to external shocks Finance Research Letters (IF 10.4) Pub Date : 2024-04-12 Hyunjoon Lim
This paper investigates whether the responses of house prices to external shocks, including US monetary policy and global geopolitical risk shocks vary, depending on country-specific vulnerabilities. We find that the responses of emerging market economies’ housing prices to both US monetary policy shocks and geopolitical risk shocks are higher in magnitude and duration than those of advanced economies
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Intellectual property protection and M&A performance Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Weibo Li, Bingru Yuan
This investigation delves into the connection between the safeguarding of intellectual property and the outcomes of corporate mergers and acquisitions (M&As) and the mechanisms underlying this relationship. The research uses yearly data from 2009 to 2022, encompassing A-share listed companies in Shanghai and Shenzhen, and empirically examines how intellectual property protection influences corporate
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Commercial paper popularization and enterprise risk taking Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Mingguo Huangfu, Zejun Wang, Jiatong Li, Xinhai Ye, Xiaoye Wang, Mengyao Chen
This paper constructs accounts receivable commercial paper indicators based on the choice of payment instruments when enterprises sell on credit and selects listed manufacturing enterprises from 2015 to 2022 as data samples for the study. It is found that increasing the proportion of commercial paper payments in credit sales can effectively mitigate the risk-taking of enterprises; the establishment
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Commonality in volatility among green, brown, and sustainable energy indices Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Ameet Kumar Banerjee, Ahmet Sensoy, Molla Ramizur Rahman, Alessia Palma
Based on research conducted by Chordia et al. in 2000, we analyzed the volatility of energy indices to determine whether there is a commonality among them. Our dataset included green, sustainable, and brown energy indices, and we discovered that there is indeed a commonality in energy markets, with brown energy exhibiting the least commonality. Furthermore, we found that the commonality in volatility
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From symbolic to substantive green innovation: How does ESG ratings optimize corporate green innovation structure Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Zhihe Zhang, Yufei Hou, Zixuan Li, Mulin Li
Green innovation, primarily substantive green innovation, is critical for improving corporate sustainable development. In contrast to existing literature, this paper examines how environment, society, and governance (ESG) optimizes corporate green innovation structure from an innovation motivation perspective. Based on A-share listed firms, this study reveals a significant enhancement of ESG ratings
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Market liquidity, credit maturity structure and asset mismatch in manufacturing firms Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Lianjun Yao, Yuting Qiu
Based on the period from 2011 to 2021 and considering macroeconomic data, this paper analyzes the relationship between market liquidity and asset mismatch in manufacturing firms. Specifically, this paper reveals that market liquidity can mitigate manufacturing firms` asset mismatch by optimizing credit maturity structure. Further, heterogeneous effects exist in the impact of the policy above, both
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How does digital transformation promote supply chain diversification? From the perspective of supply chain transaction costs Finance Research Letters (IF 10.4) Pub Date : 2024-04-11 Junjie Cai, Ismawati Sharkawi, Shairil Izwan Taasim
Companies must implement digital transformation to achieve supply chain diversification with the current volatile economic conditions, which is crucial for their survival and as a fundamental measure to ensure industrial supply chain resilience and security. Based on A-listed companies, this paper systematically examines the impact of digital transformation on supply chain diversification, exploring
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The role of principal-agent in corporate financialization and green innovation Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Yijing Huang, Zongyu Xu
This paper explores the relationship between corporate financialization and green innovation with a sample of A-share listed companies in China from 2012 to 2022. It is found that the crowding-out effect of corporate financialization on green innovation is greater than the reservoir effect, thus inhibiting green innovation. However, internal control capability and equity incentives can alleviate principal-agent
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The role of FinTech lenders in mortgage market: Evidence from corporate relocations Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Shiang Liu, Changyu Yang
This study investigates how FinTech lenders respond to the surge in mortgage demand caused by corporate headquarter relocations. We find that FinTech lenders tend to increase mortgage supply and loosen underwriting criteria as compared to non-FinTech lenders. The competitive advantage obtained from mortgage securitization enables FinTech lenders to capture growth opportunities.
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Frog in the Pan and the market-state effect on momentum Finance Research Letters (IF 10.4) Pub Date : 2024-04-10 Valentina Galvani
Momentum profitability depends on the market state, with protracted market gains (UP state) heralding momentum profits and prolonged market declines (DOWN state) ushering momentum losses. Previous literature documents a monotonic negative relationship between information discreteness and momentum, consistent with the Frog in the Pan (FIP) hypothesis. This study shows that the relationship is exclusive
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Corporate social responsibility and corporate fraud: The mediating effect of analyst attention Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Ying Wang, Peisen Tai, Mengmiao Pang
This article delves into the relationship between corporate social responsibility (CSR) and corporate fraud from the perspective of analyst attention. By selecting listed companies as research samples, the regression results demonstrate that the manifestation of CSR inhibits the occurrence of corporate fraud, reducing both the tendency and intensity of fraud. Analyst attention plays a partial mediating
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Nonparametric statistical inference for stochastic optimal control problems and its applications for financial investment Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Yang Liu, Yanzi Liang, Xinchen Lan, Zheng Lu
Against a backdrop of financial decision-making, this study examines nonparametric statistical inference problems in stochastic optimal control problems. First, we construct a nonparametric estimation model using the wavelet estimation method for drift and diffusion coefficients. In this study, we focus on stochastic linear–quadratic (SLQ) problems, solved using Riccati equations, and apply this to
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How does digital finance reduce urban crime rate? Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Lin Li, Chenghao Sun
The fast development of digital finance led to profound changes in various aspects of social life, including social governance. This paper analyzes the impacts of digital finance on urban crime rates, focusing on the cost-benefit analysis of crime and verifying that digital finance can potentially decrease urban crime rates significantly. This impact is mainly attributed to digital money's transactional
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The impact of the percentage of female directors on corporate ESG score Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Yiyi Fan, Shanshan Li, WenQi Yang
This study systematically analyzes the relationship between the percentage of female directors and ESG score using A-share listed companies from 2010 to 2021 as the research sample. The results show that the percentage of female directors is positively related to ESG score, green innovation plays a mediating role, and media attention plays a significant positive moderating role. Further research suggests
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Decomposing risk spillover effect in international stock market: A novel intertemporal network topology approach Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Xu Zhang, Zhiyu Lv, Muhammad Abubakr Naeem, Abdul Rauf, Jiawen Liu
This paper investigates the intertemporal risk effects in global stock markets using a novel network topology based on relative importance analysis. The rolling time window approach identifies dynamic and asymmetric risk spillovers. The results reveal complex and asymmetric intertemporal risk spillovers in international stock markets. Europe and America are the main risk transmitters. Countries in
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Media pressure, internal control, and corporate environmental information disclosure Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Jing Zhang, Lu Zhang, Mancen Zhang
This article delves into the intricate connection between media pressure, corporate environmental information disclosure, and internal controls. It uncovers that media pressure and internal controls exert a substantial influence on corporate environmental information disclosure. Media pressure serves as a catalyst, compelling companies to bolster their environmental information disclosure in response
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The impact of digital financial development on rural household income mobility Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Nana Yang, Xugao Ao, Yongqian Tu
We explore the mechanisms through which the development of digital finance affects income mobility among rural households. By synthesizing existing literature and empirical data, this paper finds that digital financial development significantly enhances income mobility among rural households, leading to improved income growth and position. Furthermore, developing digital finance promotes entrepreneurial
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Social trust, green finance, and enterprise innovation Finance Research Letters (IF 10.4) Pub Date : 2024-04-09 Haocheng Zan, Kailin Jiang, Jing Ma
After COVID-19, economic development has been relatively unstable, and social trust has new requirements for corporate innovation. This article explores the impact of these factors using data for A-share listed companies in Shanghai and Shenzhen from 2010 to 2022 as research samples. The research results are as follows: (1) Social trust positively impacts promoting improved corporate innovation. (2)
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Impacts of gender inequality on international trade and innovation Finance Research Letters (IF 10.4) Pub Date : 2024-04-05 Doojin Ryu, Hyun-Jung Nam
Analyses of the recent ASEAN dataset indicate that gender inequality may reduce FDI's positive effects on international trade. Gender inequality negatively affects innovation in which international trade plays a mediating role. Improving education and employment opportunities for women boosts the productivity and competitiveness of trade sectors, leading to innovation activities for sustainable growth
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Does war spread the herding effect in stock markets? Evidence from emerging and developed markets during the Russia-Ukraine war Finance Research Letters (IF 10.4) Pub Date : 2024-04-04 Natividad Blasco, Luis Casas, Sandra Ferreruela
This paper investigates the influence of the Russia-Ukraine conflict on herding behavior in global stock markets. Examining MSCI World and MSCI Emerging indexes alongside Russia, the study explores imitation tendencies before the invasion, immediately after commencement of war, and during an extended war period. Findings reveal that emerging markets facing heightened geopolitical risk, either due to
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Analyzing the influence of environmental protection law amendments on financing efficiency in Chinese industrial enterprises: A retrospective examination Finance Research Letters (IF 10.4) Pub Date : 2024-04-03 Yue Liu, Zhi Li, Wenxuan Huang
This study investigates the impact of the implementation of the Environmental Protection Law on financing efficiency in industrial enterprises. The PSM-DID analysis reveals statistically significant differences in financing efficiency between the treated and control groups, indicating a substantial impact of environmental protection policies on firms' environmental practices. The analysis of fixed
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Executive network centrality and corporate merger and acquisition efficiency: A governance effect or collusion effect? Finance Research Letters (IF 10.4) Pub Date : 2024-04-03 Ceng Hou, Beiwei Li
This paper empirically analyzes the impact of executive network centrality on corporate merger and acquisition efficiency by constructing an empirical econometric model. The research results show that the enhancement of executive network centrality is conducive to the governance effect, thereby significantly improving the efficiency of corporate mergers and acquisitions. The results of heterogeneity
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Social trust, audit quality and institutional investor herd behaviour Finance Research Letters (IF 10.4) Pub Date : 2024-04-03 Haoyu Wang, Yan Zhang
Trust is essential for a well-functioning market economy and is influenced by social institutions and technical advancement, not just cultural traditions. This paper examines how social trust affects institutional investor herd behaviour. Based on data from 2011 to 2021, this paper adopts a fixed effect model to explore the effects and underlying mechanisms. The findings indicate that increasing social
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Environmental regulation and corporate financial risk: The role of credit guarantees Finance Research Letters (IF 10.4) Pub Date : 2024-04-03 Junfeng Wang, Huimin Wang
This research explores the relationship between environmental regulation and corporate financial risk in the face of increasing public environmental concerns worldwide. Taking advantage of public-listed firms in Shanghai and Shenzhen stock markets from 2010 to 2022, this study finds strong evidence that environmental regulations inversely affect corporate financial risk after controlling for various
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An affine term structure model with Fed chairs’ speeches Finance Research Letters (IF 10.4) Pub Date : 2024-04-03 Eunmi Ko
I analyze the impact of the sentiment expressed in speeches by Fed chairs on Treasury bond yields, using an affine term structure model. The speeches by Fed chairs are numerically evaluated to generate three sentiment factors: negative, neutral, and positive. The variance decomposition analysis indicates that sentiment factors account for a considerable portion of the variance in yield forecasts.
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Time-varying causality among whisky, wine, and equity markets Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Vincent Fromentin, Bruno Pecchioli, David Moroz
Whisky has entered the category of alternative investment assets, with particularly attractive returns on certain bottles. The literature has shown the diversification benefits of investing in collectible assets, such as fine wine, but analyses dedicated to whisky investment remain scarce. Using different causality tests – parametric, non-parametric, and time-varying – applied to whisky, wine, and
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Measuring DeFi risk Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Jeremy Bertomeu, Xiumin Martin, Ibrahima Sall
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Supply Chain Finance and Innovation Investment: Based on financing constraints Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Jia Feng, JiJun Tang, Zhenyu Qi, Jialin Liu
We selected the data of listed small and medium-sized enterprises (SMEs) in China from 2012 to 2022 as the research sample to explore the impact of supply chain finance on SMEs' R&D investment. It is found that supply chain finance can effectively help SMEs to improve their R&D and innovation investment; internal control ability and risk-taking level play a moderating role in the impact of supply chain
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Repression or promotion? Transfer payments, ecological constraints, and enterprise development Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Hong Sun, Nanyang Cheng, Renjian Zhang, Wenxing Shen, Chunxia Miao
The establishment of national key ecological function areas constitutes a pivotal policy tool for China's environmental preservation and restoration initiatives. Nevertheless, the economic ramifications of policy implementation on the growth of regional enterprises remain substantial. This research employs the quasi-natural experiment framework provided by the national key ecological function area
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An economic definition of ‘Fear of Missing Out’ (FOMO) Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Mohammed Kaddouhah
This research note proposes a decision theoretic definition of the popular phenomenon of Fear of Missing Out (FOMO). Our definition assumes that FOMO causes individuals to base their decision-making utility on their own anticipated regret and the decisions made by individuals in their social peer group. We use an example related to asset trading in order to illustrate how to analyse decision-making
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Extremely stablecoins Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Julian Fernandez-Mejia
In this research, I explore the factors driving extreme fluctuations in stablecoin prices concerning financial and cryptocurrency market indices. Through quantile models, I reveal the directional predictability of diverse financial variables, capturing extreme price variations and return distribution fluctuations. The outcomes highlight asymmetric pricing reactions and the impact of stablecoin stability
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Developers’ leverage, capital market financing, and fire sale externalities✰ Finance Research Letters (IF 10.4) Pub Date : 2024-04-02 Kanis Saengchote
Leveraged developers facing rollover risk are more likely to engage in fire sales. Using COVID-19 as a natural experiment, we find evidence of fire sale externalities in the Thai condominium market. Specifically, properties resold by developers with higher leverage ratios are listed at lower prices. This trend is evident for listed developers, who have access to capital market financing, but not for
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Predicting stock market returns with average correlation and average variance: Decomposition approach Finance Research Letters (IF 10.4) Pub Date : 2024-04-01 Jong-Min Oh
Does the observed stock market return variance predict future stock market return? I demonstrate that decomposing individual stock returns into systematic and idiosyncratic parts and using these components separately in constructing the average correlation and the average variance of individual stock returns is crucial for predicting future stock market return. I find that only the average correlation
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Procrastination and intertemporal consumption: A three-period extension of the CAPM with irrational agents Finance Research Letters (IF 10.4) Pub Date : 2024-03-28 Helga Habis
In this paper, we investigate the capital asset pricing model (CAPM) derived from a three-period general equilibrium model incorporating time-inconsistent preferences. We define and consider two types of agents, i.e. they can be either sophisticated or naive. Sophisticated agents take into account their potentially changing future preferences when making a decision. Naive agents, on the other hand
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The impact of presidential economic approval rating on stock volatility: An industrial perspective Finance Research Letters (IF 10.4) Pub Date : 2024-03-28 Xiaodan Li, Xue Gong, Lu Xing
This paper examines the influence of presidential economic approval rating (PEAR) on stock volatility in different sectors. We find that PEAR significantly explain future stock volatility in Health Care, Consumer Staples, Information Technology and Telecom Services sectors both in- and out-of-sample. Interestingly, we find this explanatory power for all sectors exists only during the economic expansions
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The UK financial firms’ textual risk disclosure and market liquidity Finance Research Letters (IF 10.4) Pub Date : 2024-03-28 Tamer Elshandidy, Mohamed Elsayed
The informativeness of textual risk disclosure (TRD) of financial firms is unexplored in the extant literature. Employing a sample of UK FTSE all-share financial firms, this paper fills this gap in the literature by providing the first empirical evidence on the relationship between TRD and market liquidity. Consistent with the convergence argument for TRD, we find that TRD decreases the financial firms’
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Policy role, information disclosure, and enterprise innovation Finance Research Letters (IF 10.4) Pub Date : 2024-03-27 Yuhui Dai, Shaobo Hu, Zhenkai Zhai
The interactive relationship between policy, information disclosure and Enterprise innovation is crucial for the development of modern Enterprises. This paper examines how disclosure regulations imposed by regulators stimulate Enterprise innovation by shaping the dissemination of critical information that supports competitive advantage. This paper uses fixed effects and Bayesian model analysis methods
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Connectedness and co-movement between dirty energy, clean energy and global COVOL Finance Research Letters (IF 10.4) Pub Date : 2024-03-27 Chunlin Lang, Yang Hu, John W. Goodell, Yang (Greg) Hou
This paper examines dynamic connectedness and co-movement between dirty energy, clean energy and the global COVOL measure of Engle and Campos-Martins (2023) between January 2015 and May 2023 based on aggregated connectedness and wavelet coherence approaches. Our results show that COVOL and dirty energy are more closely linked in times of COVID-19 and geopolitical instability, while clean energy is
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Mergers of public sector banks: Best partner selection using a data-driven approach Finance Research Letters (IF 10.4) Pub Date : 2024-03-27 Meera Laetitia B Aranha, Mrutyunjay Mahapatra, Remya Tressa Jacob
This study investigates the selection of the best partners while merging the public sector banks in India. It is set in the context of the announcement of the mega-merger of multiple Indian public sector banks on 30th August 2019. Using the clustering technique (a machine learning approach) and Data Envelopment Analysis (DEA), we identify ideal merger combinations with better efficiency. The findings
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Supply chain spillover effect of media attention to customers from the perspective of real earnings management Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Yuchuan Lin, Xinpeng Xing
This paper investigates how media attention to customers affects the supplier's information environment from the perspective of real earnings management. Our empirical results for 2010–2020 reveal a negative association between media attention to customers and the supplier's real earnings management. Causality is established through the instrumental variable two-stage least squares approach. Cross-sectional
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Beyond innovation: Fintech credit and its ripple effects on traditional banking profitability Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Martin Hodula
This study examines the relationship between fintech credit growth and traditional banking sector profitability. It finds a robust negative relationship between the two, suggesting that a rise of alternative credit lines could rival traditional banking and even lead to subdued bank profitability. The negative relationship is stronger for banking sectors that are more concentrated and operate with higher
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Fintech lenders and borrowers screening: Superior abilities or lax practices? Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Khalil-Etienne Janbek, Franck Bancel
Fintech lenders target borrowers that commercial banks deem too risky. We hypothesize that such borrower selection is either due to superior screening abilities of Fintech lenders, or due to less rigorous screening practices from their part. We find evidence in favor of the “superior screening” hypothesis. Using data on U.S. conforming mortgage loans originated between 2012 and 2022, we show that Fintech
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Medical service reform and government regulation in electric power enterprises from the perspective of health economics Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Junling Wang, Xinyu Guo, Xueyun Rong, Zehao Wang
Drawing from the field of health economics, this study investigates the government's role in reforming health care delivery within the electric utilities sector. It identifies key systemic and institutional shortcomings in these utilities that have led to escalating health care costs. Utilizing statistical analysis and model simulations, the research further explores the impact of policy interventions
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Credit guarantee, financing structure, and firm ESG performance Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Minqiang Zhang, Xiaomei Guo, Xiaojian Lu, Yihuo Jiang
This empirical research investigates the complex relationships among credit guarantee mechanisms, financing structures, and environmental, social, and governance (ESG) performance among corporations. The study employs a rich dataset spanning corporations from 2000 to 2022. Econometric analyses reveal nuanced associations, including unexpected negative correlations between ESG combined scores and environmental
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How digital finance affects the sustainability of corporate green innovation Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Jinxuan Yang, Ning Hui
Through analysis, this study finds that digital finance can promote green innovation by alleviating financing constraints and reducing financing costs, with ESG ratings playing a moderating role in this relationship. Heterogeneity analysis reveals that the impact of digital finance on green innovation is more significant in non-high-tech and non-high-pollution industries. The findings provide strategic
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Digital HP finance's role in the economic resilience of enterprises’ digital transformation Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Ting Xu, Zhenni Shen, Hui Zhang, Chenglong Zhang, Honglei Huang
To promote digital transformation by enterprises and provide more convenient and efficient financial services, this study analyzes enterprise digital transformation's promotion mechanism and economic influence factors globally and clarifies the role of inclusive digital finance in self-regulation and reducing financing difficulties during enterprise transformation. Finally, an economic resilience model
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ESG performance and litigation risk Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Hua Zhang, Huaqing Zhang, Li Tian, Shengli Yuan, Yongqian Tu
We focus on the relationship between firms’ environmental, social, and governance (ESG) responsibility performance and litigation risk. This study finds that improving firm ESG responsibility performance is conducive to reducing firm litigation risk. At the same time, internal control plays an intermediary role in the impact of firms’ ESG responsibility performance on firm litigation risk. Improving
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Network centrality and credit risk: A comprehensive analysis of peer-to-peer lending dynamics Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Yiting Liu, Lennart John Baals, Jörg Osterrieder, Branka Hadji-Misheva
This letter analyzes credit risk assessment in the Peer-to-Peer (P2P) lending domain by leveraging a comprehensive dataset from Bondora, a leading European P2P platform. Through combining traditional credit features with network topological features, namely the degree centrality, we showcase the crucial role of a borrower’s position and connectivity within the P2P network in determining loan default
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Does air pollution change the business strategy for investment? The strategic influence of national governance Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Bingjun Zhou, Ke Gao, Jing Ning, Anqi Zhang, Jiapeng Dai
This research aims to investigate the connection between pollution secretions and corporate investment, with a particular focus on how national governance moderates this relationship. Utilizing a ten-year dataset (2010–2019) from publicly listed enterprises in BRICS countries, the study finds that air pollution negatively affects corporate investment by increasing operational risks and regulatory uncertainties
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Professional characteristics of board secretaries and litigation risks Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Yingrui Zhang, Zehan Li, Hui Dai, Liling Fu
This paper selects China's A-share listed companies from 2010 to 2022 as the research sample to investigate the impact of the financial and legal career background of the secretary of the board of directors on the litigation risk of listed companies. It is found that board secretaries with financial career background significantly increase the litigation risk of the company; board secretaries with
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The impact of mispricing and growth opportunities on mergers and acquisitions of public companies from the behavioral theory of the firm Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Baiyang Wei, Ye Sun
This paper examines the impact of the expectation gap of mispricing and growth opportunities on M&A motivation and performance from the perspective of the behavioral theory of the firm. The study proves that the expectation gap is a key factor that motivates firms to implement M&A decisions. When the expectation gap is negative, rational managers raise stock prices and improve the firm's operating
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How to improve the efficiency of green development? The role of digital finance Finance Research Letters (IF 10.4) Pub Date : 2024-03-26 Sen Yang, Jiawei Xu, Tianyi Lei, Mengdi Wang
This paper investigates the relationship between digital finance and the green development efficiency based on 283 prefecture-level cities from 2011 to 2019. The research results show that: (1) The development of digital finance can significantly enhance regional green development efficiency. (2) Digital finance enhances green development efficiency through innovation effect and allocation effect.