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War discourse and global equity returns Finance Research Letters (IF 7.4) Pub Date : 2024-09-11 Jiazhen Wang, Yvonne Fang, Xiaolu Hu, Angel Zhong
This study investigates the asset pricing implications of war risks in global stock markets. We employ a novel war discourse index developed by Hirshleifer et al. (2023a), which captures market attention to war through news. Extending this approach to both developed and emerging markets, we uncover a significantly positive relation between war risks and global stock market excess returns, which is
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Negative performance feedback and firms’ CSR strategy selection: Conformity or differentiation? Finance Research Letters (IF 7.4) Pub Date : 2024-09-10 Sailin Zhu, Xin Zhang
Drawing on the behavioral theory of the firm (BTOF), studies debate about whether underperforming firms will engage in more corporate social responsibility (CSR). In this study, we categorize CSR into CSR conformity and CSR differentiation, and find that underperforming firms are more likely to increase CSR conformity but decrease CSR differentiation. Furthermore, market strategy deviation strengthens
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The impact of climate policy uncertainty on the Italian financial market Finance Research Letters (IF 7.4) Pub Date : 2024-09-10 Caterina Di Tommaso, Matteo Foglia, Vincenzo Pacelli
In this paper, we develop the Climate Policy Uncertainty Index (CPU) for the Italian context based on news from major Italian newspapers. The CPU index exhibits distinct movements around major national and international climate events. We also investigate the effects of CPU on the Italian financial market. The results provide evidence that a shock CPU has a negative impact on financial market performance
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The Parabolic Relationship of Tax Avoidance and Cost of Public Debt Finance Research Letters (IF 7.4) Pub Date : 2024-09-10 Mariya Letdin, Cathryn M. Meegan, Miles A. Romney
We find that, contrary to prior findings, tax avoidance has a non-linear relationship with cost of debt. Debtholders reward increasing tax avoidance with decreasing bond yields for “undersheltering” firms until reaching a minimum yield. Beyond that minimum yield, as tax avoidance increases, debtholders penalize firms with increasing costs of debt. We use secondary bond market as our empirical setting
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The nexus between local government debt risk, real estate sector, and financial stability Finance Research Letters (IF 7.4) Pub Date : 2024-09-10 Yulong Li
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Tail risks in household finance Finance Research Letters (IF 7.4) Pub Date : 2024-09-06 Omid M. Ardakani, Rawan Ajina
We introduce a measure to quantify shared information within household financial portfolios under extreme events. We employ mutual information and copula entropy to capture tail dependencies among investment assets. We then study the impact of socio-economic factors on proactive financial behaviors using data from the 2022 Survey of Consumer Finances and highlight the necessity for tail-informed diversification
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Compensation stickiness and firms' innovative capacity Finance Research Letters (IF 7.4) Pub Date : 2024-09-05 Zhe Tao, Hanchao Liu
This paper selects data from A-share listed companies in Shanghai and Shenzhen from 2010 to 2022 for empirical analysis. The empirical findings show that pay stickiness has a significant negative impact on the innovation ability of enterprises. There is a difference in the impact of pay stickiness on the innovation ability of state-owned enterprises and non-state-owned enterprises; the independence
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Not all VIXs are (Informationally) equal: Evidence from affine GARCH option pricing models Finance Research Letters (IF 7.4) Pub Date : 2024-09-05 Marcos Escobar-Anel, Lars Stentoft, Xize Ye
This paper examines which VIX maturity to use in affine GARCH model estimation, when the objective is to do option pricing. Utilizing the Model Confidence Set approach repeatedly, we rank the best VIXs across different dynamic models. Our results highlight the importance of estimating with VIXs and show that with the appropriate VIX a reduction of up to 38% in option pricing errors can be obtained
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The impact of CEO hedging on corporate ESG performance: Evidence from the United States Finance Research Letters (IF 7.4) Pub Date : 2024-09-04 Yanuo Wang, Zhengying Xie, Haipeng Geng, Jorry Croce
Corporate ESG performance is increasingly recognized as crucial for sustainable development, yet the impact of CEO behavior on this metric remains understudied. This paper investigates how CEO hedging affects corporate ESG performance, addressing a significant gap in the literature. Using data from U.S. listed companies from 2013 to 2021, we employ regression analysis and propensity score matching
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Environmental policies on the systematic risk of critical metals companies Finance Research Letters (IF 7.4) Pub Date : 2024-09-04 Boris Pastén-Henríquez, Pablo Tapia-Griñen, Jorge Sepúlveda-Velásquez
The increase in natural disasters due to climate change has prompted the adoption of measures to mitigate it, like the use of renewable energy sources. This study suggests that the transition risk associated with these policies will rise the demand for critical metals, increasing the systematic risk for companies that produce them. Using Bayesian structural time series, we find evidence suggesting
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A study on the impact of digital governance on disclosure quality of listed companies Finance Research Letters (IF 7.4) Pub Date : 2024-09-02 Cuiping Hu, Xianzi Yang
Through empirical analyses, this paper confirms the beneficial influence of digital governance on the information disclosure quality of listed companies. Additionally, it uncovers the intermediary roles played by managerial transaction costs and human capital structure. Furthermore, the study investigates the varying impacts of corporate geographical location and property rights characteristics on
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Major sporting events, corporate social responsibility, and the value of sports-listed companies Finance Research Letters (IF 7.4) Pub Date : 2024-09-02 Zhengqiang Chen, Hua Ying, Qiaoyan Chen
This study explores the interconnection among major sporting events, corporate social responsibility (CSR), and the valuations of sports-listed companies. Sporting events now serve as global engagement platforms beyond mere competition. Through a mixed-methods approach including literature reviews, quantitative financial analyses, and qualitative CSR strategy explorations, this research examines how
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Nonlinear relationship between cryptocurrency returns and price sensitivity to market uncertainty Finance Research Letters (IF 7.4) Pub Date : 2024-08-31 SeungOh Han
This paper examines the relationship between cryptocurrency returns and price sensitivity to unexpected changes in market uncertainty, as measured by U.S. stock market volatility, from June 2018 to February 2023. Cryptocurrencies with intermediate uncertainty risk earn a risk-adjusted weekly return of 5.73% higher than those with low and high uncertainty risk, after controlling for market, size, reversal
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Approximate utility Finance Research Letters (IF 7.4) Pub Date : 2024-08-30 Philip H. Dybvig, Shu Li
Approximating arbitrage or a perfect hedge in a limit implies approximation in utility (formally, expected utilities are continuous in ), if and only if the utility function is bounded above and below by quadratics. We characterize when some special utility functions are continuous for all random consumptions with a common lower bound. Only linear, quadratic, and, in some cases, translated SAHARA utilities
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Information acquisition, market professional and discretionary liquidity trading Finance Research Letters (IF 7.4) Pub Date : 2024-08-30 Yu Ma, Hong Liu, Qingshan Yang
We analyze an insider trading strategy and market professionals’ information acquisition strategies, and explore their impact on market liquidity and price efficiency in endogenous noise trading. Our findings highlight the negative precision effect on market professionals’ information acquisition. With an increase in market professionals, two opposing effects emerge on market liquidity and price efficiency:
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Corporate net income smoothing: A variance decomposition approach Finance Research Letters (IF 7.4) Pub Date : 2024-08-29 Antonio Renzi, Pietro Taragoni, Gianluca Vagnani
This study introduces an enriched framework depicting the channels through which managers can mitigate sales shock impacts on firm net income and dividends. Employing variance decomposition, this study provides insights into the proportion of sales shocks absorbed through different firm-level net income smoothing channels. We control for the nature (positive vs. negative) and duration (persistent vs
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Middle East conflict and energy companies: The effect of air and drone strikes on global energy stocks Finance Research Letters (IF 7.4) Pub Date : 2024-08-29 Mohammad Zoynul Abedin, Michael A. Goldstein, Nidhi Malhotra, Miklesh Prasad Yadav
The recent April 2024 Israel-Iran conflict had a notable impact on global energy markets. Returns on the top ten global energy stocks indicate investor apprehension up to 10 days before the event started on April 13, 2024. Energy stocks had significant negative returns on the event day itself, with positive CAARs pre-event and negative CAARs post-event. The dynamic market response highlights the heightened
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AI-driven capital-skill complementarity: Implications for skill premiums and labor mobility Finance Research Letters (IF 7.4) Pub Date : 2024-08-29 Shuo Wang, Yuzhang Wang, Chengyou Li
To explain the newly discovered coevolution of capital and labor structures, this study presents a modified capital-skill complementarity hypothesis within the framework of structural transformation. We propose that artificial intelligence (AI) and skilled labor exhibit relative complementarity. Specifically, advancements in AI services or AI-enhanced technologies incentivize the mobilization of skilled
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Bridging the green gap: How digital financial inclusion affects corporate ESG greenwashing Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Weiping Li, Chang Shi, Zhongyi Xiao, Xuezhi Zhang
We examine whether and how the development of digital financial inclusion (DFI) affects firm environmental, social, and governance (ESG) greenwashing. Our findings indicate that local DFI prohibits firms' greenwashing behaviors. These conclusions are supported through robust analysis using a multidimensional fixed-effects model, alternative measures, and an instrumental variable approach. Our research
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Optimal dividend and risk control strategies for an insurer when there are multiple reinsurers with different risk attitudes Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Dingjun Yao, Hua Zhou, Gongpin Cheng
Suppose that insurer can control dividend, refinancing and reinsurance strategies dynamically. Different from the past, there are multiple reinsurers rather than sole reinsurer in the market. The insurer aim at finding the optimal strategies for maximizing the company’s value. It illustrates that refinancing can be considered iff the company has strong profitability; It should reduce reinsurance purchase
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Business environment and quality of economic development–Evidence from countries along the Belt and Road Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Jing Ma, Zhangyin He
This study examines the impact of the business environment on economic development quality in 66 Belt and Road Initiative countries from 2015 to 2020. It finds that the business environment significantly boosts economic development quality, with the total labor force serving as a mediating variable. Further analysis shows that the impact is more pronounced in countries with higher economic development
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Economic uncertainty and time-varying return predictability Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Li Liu
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Carbon pricing: Necessary but not sufficient Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Sean Cleary, Neal Willcott
Global carbon pricing has been recognized as one of the most efficient mechanisms that can be used to reduce CO emissions, but questions remain about the of the price and the of implementation. We examine this important issue by extending the Dynamic Integrated Climate and Economy (DICE) model to estimate global carbon prices that will be required to reach various warming scenarios. Our analysis suggests
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Effect of green supply chain collaboration on the HSE performance of manufacturing SMEs Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Hong Nai, Qiang Mei, Suxia Liu, Jingjing Zhang
To clarify the effect of green supply chain collaboration (GSCC) on the HSE performance of manufacturing SMEs, through theoretical and literature analysis, a conceptual model of the effect of GSCC on the HSE performance of manufacturing SMEs is constructed, and the model and hypotheses are empirically tested using structural equation modeling. The research results show that GSCC positively affects
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Guest Editorial: Recent advances and future directions in macrofinance: Geopolitical Risk and Uncertainty – University Jaume I - 2023 Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Laura Ballester, Ana González-Urteaga, Juan Angel Lafuente
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The endogenous growth and asset prices nexus revisited with closed-form solution Finance Research Letters (IF 7.4) Pub Date : 2024-08-28 Palma Filep-Mosberger, Lorant Kaszab
Endogenous growth models exhibit long-run risks, which are considered a potential explanation of the equity premium puzzle. Unlike previous literature, we use a closed-form solution of a simplified model to make the following contributions. First, we derive a set of conditions for a positive and large equity premium. Second, we match a key driver of endogenous growth, the R&D spending-to-GDP ratio
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Geopolitical conflict and firm bankruptcy risk Finance Research Letters (IF 7.4) Pub Date : 2024-08-26 Tonoy Roy, Rubaiyat Ahsan Bhuiyan, Sarwar Uddin Ahmed, Mohammad Abdullah
This study examines the impact of geopolitical risk on corporate bankruptcy. We utilize a global dataset of 36,802 firms from 42 countries covering 2004-2022. Our baseline result indicates that geopolitical risk increases firm bankruptcy risk. Our results remain robust after controlling for endogeneity using 2SLS, propensity score, and entropy balancing techniques, as well as using alternative proxies
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Market-based patent value of green transformation technologies Finance Research Letters (IF 7.4) Pub Date : 2024-08-26 Yosuke Kimura
This paper employs the green technology classification published by the Japan Patent Office to estimate the values of green and non-green innovations. By computing patent values based on stock price reactions to the announcement of patent issuance, this paper finds that, on average, green patents have higher values than non-green patents in the pooled sample. However, results from the matched sample
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Joint credit system and corporate green innovation: Evidence from a quasi-natural experiment on implementing the Administration of Joint Credit Finance Research Letters (IF 7.4) Pub Date : 2024-08-25 Liwen Sun, Ying Han
Banking institutions are crucial in providing capital to firms, making credit resources a vital requirement for enterprises' operations. How to ensure credit capital resources is imperative to consistently and proficiently facilitate firms' green innovation. Based on a sample of A-share listed companies from 2013 to 2022, this study reveals a significant enhancement of joint credit systems in corporate
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Liquidity hoarding and bank profitability: The role of economic policy uncertainty Finance Research Letters (IF 7.4) Pub Date : 2024-08-25 Jijun Niu
We examine the relation between liquidity hoarding and bank profitability in the context of economic policy uncertainty (EPU). Using data on bank liquidity hoarding from Berger et al. (2022), we find that liquidity hoarding is negatively associated with profitability when EPU is low, but positively associated with profitability when EPU is high. Our results hold both in normal and crisis periods, and
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Dynamic margin optimization Finance Research Letters (IF 7.4) Pub Date : 2024-08-23 Edina Berlinger, Zsolt Bihary, Barbara Dömötör
In response to the Global Financial Crisis of 2007–2009, by now, most of the financial transactions must be cleared through central counterparties operating a dynamic margin setting mechanism. High margin calls can reduce counterparty risk in a turbulent market, but at the same time, increase liquidity risk and escalate systemic risk. In this paper, we construct a theoretical model to address this
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Does firm-level carbon assurance matter for trade credit? Finance Research Letters (IF 7.4) Pub Date : 2024-08-23 Md Safiullah, Linh Thi My Nguyen
We are among the first to examine the influence of carbon assurance on trade credit. Drawing on a sample of publicly listed U.S. firms, we document that firms with high carbon assurance obtain more trade credit from their suppliers. Our channel analysis tests show that high carbon assurance translates into higher trade credit by reducing risk and information asymmetry. Our results are robust with alternative
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Financial literacy and digital product consumption - An analysis based on CFPS data Finance Research Letters (IF 7.4) Pub Date : 2024-08-22 Panlin Xie, Ke Fu
This study explores the profound connection between financial literacy and the utilization of digital products. The research uncovers a substantial rise in digital product usage as one's financial knowledge improves. Moreover, household income and social interaction serve as significant mediators in this relationship. Additional investigations revealed that gender, geographical location, and urban/rural
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A dynamic duration approach to venture capital exit Finance Research Letters (IF 7.4) Pub Date : 2024-08-22 Yuet-Yee Wong
This study explores the extent to which correlated multiple stage funding explains variation in the speed of venture exit. I cast venture capital matches in a multivariate survival setting. I construct a panel of nascent entrepreneurs using SDC Platinum-VentureXpert (1990–2000) and use it to estimate the model. I find significant correlation across funding stages. Market effects is the most important
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Female board representation and firm value: International evidence Finance Research Letters (IF 7.4) Pub Date : 2024-08-22 Wendi Huang
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Information flow dynamics between cryptocurrency returns and electricity consumption: A comparative analysis of Bitcoin and Ethereum Finance Research Letters (IF 7.4) Pub Date : 2024-08-22 Dora Almeida, Andreia Dionísio, Paulo Ferreira
Understanding energy consumption associated with cryptocurrency mining gained increasing attention, with the literature focusing mainly on Bitcoin. This study uses data from the two energy consumption indices, to estimate static and dynamic transfer entropies. The results provide a nuanced understanding of the bidirectional relationships and their implications. The dominant direction of information
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On the pricing of vulnerable Parisian options Finance Research Letters (IF 7.4) Pub Date : 2024-08-22 Zheng Liu, Dongchen Li, Linyi Qian, Jing Yao
Parisian options, serving as substitutes for barrier options, are frequently embedded in complex financial derivatives. Despite the considerable mathematical challenges in pricing, their significant applications in finance and insurance have generated extensive studies in the literature. However, the impact of counterparty risk has not been taken into account so far. To address this gap, we develop
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Digital financial inclusion, educational attainment and household consumption Finance Research Letters (IF 7.4) Pub Date : 2024-08-21 Lei Luo
This paper selects the survey data of CHFS in 2017, 2019, and 2021 as a sample to explore the relationship between digital financial inclusion, educational attainment, and household consumption and finds that the development of digital financial inclusion promotes residents' consumption; the educational attainment of residents is positively correlated with household consumption; the leverage of household
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Immigration remittances, agricultural investment, and household wealth accumulation Finance Research Letters (IF 7.4) Pub Date : 2024-08-20 Zhiming Yu, Kaihua Zhang, Zeyu Wang, Chen Liu
In this study, we will focus on examining how migrant remittances promote agricultural investment and increase household wealth accumulation. We find that migrant remittances have a positive effect on agricultural investment and household wealth accumulation. At the same time, we find that education levels have a moderating effect on migrant remittances, enhancing their impact on agricultural investment
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Does fiscal expenditure help to improve the fertility desire of rural families? An empirical study based on the CFPS database Finance Research Letters (IF 7.4) Pub Date : 2024-08-20 Hang Zhang, Lanyu Wu, Cheng Li Yuanhao
This paper empirically examines the impact of the level of fiscal expenditure in the micro-family's region on the fertility desire of rural families in China. The empirical results of this paper indicate that fiscal expenditure can significantly enhance the fertility desire of rural families. After a series of robustness tests, the baseline regression results still hold. Further heterogeneity analysis
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Financial technology, regional financial agglomeration, and urban economic resilience Finance Research Letters (IF 7.4) Pub Date : 2024-08-20 Bei He, Mingyue Tang, Chenming Zhang
Selecting the data of prefecture-level cities from 2012 to 2022, this study investigates the impact of financial technology on urban economic resilience, and explores the possible moderating effect of the degree of regional financial agglomeration. The conclusions show that financial technology promotes the establishment and improvement of urban economic resilience; the higher the degree of regional
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Effects of ESG performance and sustainability disclosure on GSS bonds’ yields and spreads: A global analysis Finance Research Letters (IF 7.4) Pub Date : 2024-08-20 Oliviero Roggi, Luca Bellardini, Sara Conticelli
This study investigates the effects of the issuer's environmental, social, and governance (ESG) performance on both the issue-specific yield and its spread vis-à-vis a sovereign comparable. A sample of 3,960 green, social, and sustainable (GSS) bonds issued in global capital markets was used for this purpose. The findings indicate a negative association between ESG performance and bond spreads, implying
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Impact orientation and venture capital financing: The interplay of governmental, social impact and traditional venture capital Finance Research Letters (IF 7.4) Pub Date : 2024-08-20 Valentina Lo Mele, Anita Quas, Patrick Reichert, Stefano Romito
In addition to traditional venture capital (VC), governmental VC and social impact VC investors have emerged as alternatives to fund entrepreneurial ventures, especially start-ups that incorporate social and/or environmental objectives into commercial operations. Using a sample of 15,510 VC-backed start-ups, we show that impact-oriented ventures are more likely to receive funding from alternative VCs
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Corporate credit mismatch, financial leverage and corporate investment efficiency Finance Research Letters (IF 7.4) Pub Date : 2024-08-19 Teng Qin, Shun Gong
We empirically test the relationship between credit mismatch and corporate investment efficiency. The study analyzes the heterogeneity of mismatch direction, corporate nature, and corporate life cycle. Results reveal that corporate credit mismatch has a significant negative impact on corporate investment efficiency; corporate financial leverage fully mediates this impact, indicating that corporations
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Annual report restatement, media attention and corporate accounting information quality Finance Research Letters (IF 7.4) Pub Date : 2024-08-18 Dan Li
This study analyzes the relationship between annual report restatement, media attention and the quality of accounting information. The findings demonstrate that annual report restatement positively impacts enterprise accounting information quality, particularly when the restatement is caused by bad news. Annual report restatement affects the quality of accounting information by affecting the stock
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Corporate altruism, dual innovation and competitive advantage Finance Research Letters (IF 7.4) Pub Date : 2024-08-18 Jiahua Wu, Laibin Li, Ting Lin
This paper uses the questionnaire survey method and empirical analysis to analyze the impact of corporate altruism, dual innovation on competitive advantage, and the mediating role of dual innovation between corporate altruism and competitive advantage. The results show that corporate altruism has a significant positive effect on competitive advantage; altruism positively affects exploratory innovation;
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Environmental regulation, green technology innovation and enterprise performance Finance Research Letters (IF 7.4) Pub Date : 2024-08-17 Guancheng Wang, Xun Feng, Li Grace Tian, Yongqian Tu
This research examines the link between environmental regulation and enterprise performance, discovering that environmental regulation negatively affects enterprise performance in the short term while positively affecting it in the long term, with green technology innovation (GTI) acting as an intermediary factor. Moreover, the effects of environmental regulation on enterprise performance vary according
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Economic policy uncertainty, cross-border capital inflows and credit asset allocation risk Finance Research Letters (IF 7.4) Pub Date : 2024-08-17 Bojing Liu
This study investigates the impact of economic policy uncertainty on credit asset allocation risk with Chinese commercial banks as the research object. The study finds that economic policy uncertainty is positively related to credit asset allocation risk; cross-border capital inflows play a partly mediating role in the impact of economic policy uncertainty on credit asset allocation risk, and economic
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Beyond borders: Interlocking directorships and stock price reactions of Islamic firms Finance Research Letters (IF 7.4) Pub Date : 2024-08-16 Amal Alabbad, Andrea Schertler
Announcing a director's additional appointments may positively reflect the skills and negatively reflect the workload of the director and, therefore, may influence how investors perceive the shareholder value of the director's home firm. We examine the announcement effect of 276 additional appointments on the stock price of Islamic firms from 2010 to 2022. Event study tests show that the appointment
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Bilateral tax treaties network and global value chain position Finance Research Letters (IF 7.4) Pub Date : 2024-08-16 Xueyun Rong, Wenhong Yan, Yiyun Yang
This study investigates the effect of bilateral tax treaty (BTT) network centrality on countries’ global value chain (GVC) positions using a panel dataset of 62 economies from 2007 to 2021. Employing an instrumental variable approach, we find that higher BTT network centrality reduces a country's overall GVC position, with heterogeneous effects across sectors and participation types (forward and backward)
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Digital finance, government regulation, and corporate capital market efficiency Finance Research Letters (IF 7.4) Pub Date : 2024-08-15 Kefen Mou, Bing Xu
This study explores how digital finance affects corporate capital market efficiency, especially after the new Securities Law. Using data from A-share companies listed on Shanghai and Shenzhen exchanges (2017–2022), we find digital finance significantly boosts capital market efficiency, more so after the new law. Property rights and location also influence efficiency. Both media attention and green
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Does distrust in banks reduce bank risk-taking? Finance Research Letters (IF 7.4) Pub Date : 2024-08-15 Axelle Heyert, Laurent Weill
This paper investigates whether distrust in banks affects bank risk-taking. We test the hypothesis that increased distrust in banks prompts more vigilant monitoring by individuals, thus discouraging banks from engaging in risky behavior. Our analysis utilizes bank-level data from 85 countries spanning the years 2012-2022. We construct an indicator to measure distrust in banks using Google Trends for
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Nonlinear effect of CEO tenure on stock price crash risk Finance Research Letters (IF 7.4) Pub Date : 2024-08-13 Nikeel Nishkar Kumar, Rajesh Mohnot
This study investigates the nonlinear relationship between CEO tenure and stock price crash risk. Using data from publicly listed U.S. firms over the period from 2000 – 2022, we report an inverted U-shaped association between CEO tenure and stock price crash risk. Specifically, managers in their early tenure appear to hoard bad news up to a threshold. After this threshold, managers appear to engage
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Gradual market development reforms and venture capital strategy adjustments: Evidence based on industrial chain innovation and development Finance Research Letters (IF 7.4) Pub Date : 2024-08-13 Yu Ren, Xiongfei Liu, YuLong Zhang, Yi Zhu
This study explores the relationship between gradual market development reforms and venture capital strategy, focusing on the mediation of industrial chain innovation. The results indicate that market development reforms significantly facilitate the strategic adjustment of venture capital. Moreover, industrial chain innovation is an important mediator between market reforms and venture capital strategies
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The impact mechanism of enterprise financialization on firm innovation Finance Research Letters (IF 7.4) Pub Date : 2024-08-13 Chenghang Duan, Xinxu Chen
Financial market development provided enterprises with more financing options, which affected their innovation activities. This study is based on 1,274 manufacturing companies. We found a significant inverted U-shaped relationship between enterprise financialization and ambidextrous innovation, and financing constraints can negatively regulate this relationship. The inverted U-shaped impact was more
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Mitigating digital market risk with conventional, green, and Islamic bonds: Fresh insights from new hybrid deep learning models Finance Research Letters (IF 7.4) Pub Date : 2024-08-13 Mahdi Ghaemi Asl, Sami Ben Jabeur, John W. Goodell, Anis Omri
We examine the impact of conventional, green, and Islamic bonds on the long-term memory of cryptocurrency market risk. Utilizing a time-varying parameter vector autoregressive deep learning model, we integrate time-varying parameter vector autoregressive methods with advanced deep learning sequence modeling architectures, including temporal convolutional network, gated recurrent unit, and long short-term
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Religiosity, gambling attitudes, and fintech credit adoption Finance Research Letters (IF 7.4) Pub Date : 2024-08-11 Mohammad Hashemi Joo, Yuka Nishikawa, Krishnan Dandapani
We investigate how religious beliefs and gambling attitudes play a role in the adoption of fintech mortgage lending, a new type of lending facilitated by online platforms. Prior research suggests that religiosity is associated with greater risk aversion and that regions with a higher ratio of Catholics to Protestants exhibit a stronger inclination towards gambling. Based on these arguments and the
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Financial market volatility: Does banking concentration play a role? Finance Research Letters (IF 7.4) Pub Date : 2024-08-10 Mohammad Zeeshan
This study examines the relationship between banking concentration and financial market volatility in India. A challenge in analyzing this relationship is the differing frequencies of the data. Banking concentration data tends to be available quarterly compared to the high-frequency nature of volatility data of financial market. To address this issue, a GARCH–MIDAS model is employed, which is capable
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Controlling shareholders' stock pledges and stock price crash risks Finance Research Letters (IF 7.4) Pub Date : 2024-08-10 Haibo Ren, Yueping Xu, Jiangning Wu
This study explores the influence of controlling shareholders' stock pledges on the risk of stock price crashes. The findings reveal that controlling shareholders' stock pledges have a positive correlation with the risk of stock price crashes. Specifically, corporations with controlling shareholders who have pledged their stocks are exposed to a higher risk of stock price crashes. However, a strong
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When uncertainties matter: The causal effect of cryptocurrency investment on retirement hardship withdrawals Finance Research Letters (IF 7.4) Pub Date : 2024-08-08 Zefeng Bai, Pengcheng Wang, Hengwei Zhang
Cryptocurrencies are invested in by approximately 15% of U.S. households. However, the high volatility of these assets poses substantial financial risks, particularly as 40% of U.S. households already face potential retirement shortages. Therefore, the present study aims at investigating the impact of cryptocurrency investment on retirement borrowing. Our causal analysis of 1,912 respondents revealed