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Government reporting credibility as immunity: Evidence from a public health event Journal of Multinational Financial Management (IF 4.482) Pub Date : 2024-03-15 Christine Jiang, Xiaori Zhang, Bill Hu
We investigate the relationship between the credibility of officially reported COVID-19 infection cases and the direct effects of the public health crisis on stock market performance. Employing the law of left digits, we estimate the likelihood of misreporting in official data to evaluate government reporting credibility (RC). A higher deviation from expected Benford’s distributions implies a greater
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The international linkages of market risk perception Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-12-09 Pedro Serrano, Antoni Vaello-Sebastià, M. Magdalena Vich-Llompart
This article studies the international linkages of market risk perception, which embeds a statistical measure of risk as well as the subjective beliefs and preferences of the representative investor. We find high commonality between the risk perception of different countries/economic areas, with a first principal component explaining more than 80% of the total variability. The level of integration
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Religion and corporate innovation Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-12-05 Junyong Lee, Frederick Dongchuhl Oh, Donglim Shin
This study represents the first comprehensive analysis of the role of national religiosity in corporate innovation. Using a PCA method, we divide religiosity into five dimensions: ideological, ritualistic, experiential, intellectual, and consequential. For 1506 firms in 27 countries, we find that the ideological and ritualistic dimensions promote corporate innovation, whereas the experiential, intellectual
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Climate risk and bank stability: International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-10-19 Anh-Tuan Le, Thao Phuong Tran, Anil V. Mishra
The paper studies the association between climate risk and bank stability. Using an international sample of 6433 commercial banks in 109 countries between 2005 and 2019, we illustrate that increased climate risk leads to decreased bank stability. These findings are robust to alternative bank stability measures and after controlling for endogeneity by an instrumental variable and system GMM approach
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Culture and payout policy: International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-10-17 Mohamed Nasrallah Khiar, Maher Kooli
The purpose of the study is to examine the effect of national culture on corporate payout mix policy (dividends and share repurchases). Using an extensive data set covering 55 countries during 1980–2018, we find that the national cultural dimension significantly affects the payout policy mix, choice, and levels. Firms in countries with high uncertainty avoidance, masculinity, long-term orientation
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An alternative measure of profit shifting and corporate income tax losses Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-09-25 Marian Dobranschi, Danuše Nerudová, Veronika Solilová, Marek Litzman
The aim of this paper is to assess an alternative method of estimating the amount of profit shifting and corporate income tax revenue losses. We propose a nonstandard methodology to refine the measurement of profit shifting beyond the traditional semi-elasticity procedure. A four-stage Data Envelopment Analysis (DEA) is used to estimate the relative technical efficiency of profits before taxation reported
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Natural resource rents and access to finance Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-09-23 Mohammed Arshad Khan, Muhammad Atif Khan, Muhammad Asif Khan, Hamad Alhumoudi, Hossam Haddad
Broadening access to finance is among the top priorities for governments and international development organizations worldwide. This study examines the impact of natural resource rents on access to finance in financial institutions and financial markets across 109 countries from 1996 to 2020. The results of dynamic two-step system generalized method of moments estimation demonstrate that total natural
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Host country corruption and Japanese outward foreign direct investment: A sectoral and industry-level analysis Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-09-12 Andrzej Cieślik, Michael Ryan
Japan regained its status as the world’s largest source of outward FDI in 2018. This paper studies the relationship between host country corruption and Japanese outward manufacturing and service FDI into 179 countries for the years 1995–2019. Employing a negative binomial model, we find that host country corruption is negatively associated with Japanese MNE activity at both aggregated, sectoral and
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-09-03
Abstract not available
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The extreme risk connectedness of the global financial system: G7 and BRICS evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-08-18 Ning Chen, Shaofang Li, Shuai Lu
Using daily money, stock, bond, foreign exchange, and credit markets data in the G7 and BRICS between 2006 and 2022, this paper investigates the extreme risk interconnectedness across countries and markets. Specifically, we propose a multilayer nonlinear extreme risk spillover network based on the CAViaR model and nonlinear Granger causality test to capture extreme risk spillovers across and within
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The sources of economic uncertainty: Evidence from eurozone markets Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-08-16 Konstantina Liosi
This study examines the sources of economic uncertainty in Euro Area countries with a special focus on the effects of the ECB’s monetary policy on economic uncertainty, for the period between 2001 and 2020. The contribution of the research lies (a) on the employment of an uncertainty factor that combines information from different uncertainty variables, rather than just one as in many previous studies
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Further evidence on the returns to technical trading rules: Insights from fourteen currencies Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-08-02 Everton Dockery, Ivan Todorov
This work studies the returns to technical trading rules utilising a sample of 14 currency pairs by applying five trading rules: Filter rules, Trading Range Breakout, Moving Average, and Bollinger bands over varying market conditions. The mixed results indicate that technical analysis based on the applied trading rules is appropriate for the trading strategies examined. The one per cent filter, 150-day
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Do financial and governmental institutions play a mediating role in the spillover effects of FDI? Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-07-17 Hyun-Jung Nam, Jeongseok Bang, Doojin Ryu
We investigate the effects of foreign direct investment (FDI) on technological change in the Association of South East Asian Nations member countries. Our analysis underscores the pivotal roles that financial and governmental institutions play as mediators in the relationship between FDI and technological change. Our empirical results based on the 25 years panel dataset from 1996 to 2020 reveal that
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-06-01
Abstract not available
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International knowledge transfers and capital structure of multinational affiliates: Evidence from expatriate managers as the transfer agents Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-05-20 Youngho Kang, Ryoonhee Kim, Unjung Whang
This study investigates how knowledge transfers within multinational corporations affect the financing decisions of foreign affiliates using a unique dataset on Korean multinationals and their foreign affiliates’ employment structure. We document that affiliates with more expatriate managers tend to maintain lower financial leverage, suggesting that the greater number of expatriate managers facilitate
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Dynamic connectedness between credit and liquidity risks in euro area sovereign debt markets Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-05-05 Marta Gómez-Puig, Mary Pieterse-Bloem, Simón Sosvilla-Rivero
We examine the dynamic interconnections between sovereign credit and liquidity risks in ten euro area countries at the 5-year maturity with daily CDS data from IHS Markit and high-frequency data from MTS between 2008 and 2018 using the extended TVP-VAR connectedness approach of Antonakakis et al. (2020). We find that, for most of the period, net connectedness is from credit risk to liquidity risk,
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Does performance-chasing behavior matter? International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-04-20 Jennifer Eunkyeong Lee, Hoon Cho, Doojin Ryu, Sangik Seok
We use funds of hedge funds data from more than 40 countries to analyze how investors’ performance-chasing behaviors affect subsequent fund performance. Fund performance improves when investors are sensitive to past performance. Higher flow-performance sensitivity (FPS) leads to better subsequent performance. A one-standard-deviation increase in FPS is associated with an increase of around 1% per annum
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Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-04-03 Isaac K. Ofori, Emmanuel Y. Gbolonyo, Marcel A. Toyo Dossou, Richard K. Nkrumah, Emmanuel Nkansah
The study employs macro data for 42 African countries to examine the interactive and threshold effects of financial development in the remittances-inclusive growth relationship. First, evidence based on the system GMM estimator shows that remittances are not statistically significant in promoting inclusive growth in Africa. Notably, across the economic growth and income inequality dimensions of inclusive
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International transmission of exchange rate volatility: Evidence from FIEs’ investments in China Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-03-24 Yanke Dai, Baoxin Li, Yangfei Xu
This paper studies the cross-border transmission of exchange rate volatility through foreign-invested enterprises (FIEs)’ investments. We find that exchange rate volatility in FIEs’ home countries reduces the investments made by FIEs, which is exacerbated in industries with greater external finance dependence. We further confirm that the reduction in investment is due to a decrease in financial support
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-03-08
Abstract not available
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Economic policy uncertainty and carbon footprint: International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-02-16 Chwee-Ming Tee, Wai-Yan Wong, Chee-Wooi Hooy
Economic policy uncertainty is an evolving area of research that may affect environmental issues such as the carbon footprint. However, from a global perspective, it is not known whether economic policy uncertainty is significantly related to it. Motivated by this gap in the literature, we investigate the impact of economic policy uncertainty on carbon footprint. Using a sample of 2782 firms from 60
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Russia-Ukraine conflict: The effect on European banks’ stock market returns Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-02-15 António Miguel Martins, Pedro Correia, Ricardo Gouveia
We examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (February 24, 2022) on the largest European listed banks. Using an event study, for the 100 largest European listed banks, we observe a negative and statistically significant stock price reaction at and around the beginning of the military conflict. These results are consistent with investor
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COVID-19 pandemic impact on banking sector: A cross-country analysis Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-02-03
This study examines the effects of the COVID-19 outbreak on the performance and stability of the banking sector. Our sample consists of 2073 banks in 106 countries from 2016Q1 to 2021Q2. We employ several alternative bank performance and stability measures for a comprehensive analysis and robustness. The findings show that the COVID-19 outbreak has significantly reduced bank performance and stability
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Does foreign institutional ownership matter for stock price synchronicity? International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-01-11 Tung Lam Dang, Thi Thuy Anh Vo, Xuan Vinh Vo, Linh Thi My Nguyen
We investigate the relation between foreign institutional ownership and stock price synchronicity, and whether this relation varies across country-level institutional and information infrastructures. Using a comprehensive dataset for firms across 40 countries over the period between 2000 and 2016, we document the following notable findings. First, foreign institutional ownership is negatively associated
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Financial openness and financial market development Journal of Multinational Financial Management (IF 4.482) Pub Date : 2023-01-11 Jittima Tongurai, Chaiporn Vithessonthi
In this paper, we empirically study the linkages between financial openness and financial development using a sample of 164 countries during 1960–2020. Based on the results of the estimation of systems of equations, we find that the relationship between relative financial openness and relative banking sector development is positive and bidirectional. Likewise, the relationship between relative financial
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Social trust and the choice between bank debt and public debt: Evidence from international data Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-12-24 Sharif Mazumder, Ramesh Rao
Motivated by existing research on the informational and monitoring role of social trust, we examine how social trust affects firms’ choice between bank debt and public debt. Using firm-level data from 33 countries, we document that higher social trust is associated positively (negatively) with the long-term public (bank) debt ratio. The findings are robust when we control for other important country-level
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-11-27
Abstract not available
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The impact of climatic disaster on corporate investment policy Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-11-17 Zhi-Yuan Feng, Chou-Wen Wang, Yu-Hong Lu
Extreme weather events have been occurring in recent years with high frequency and resulting in enormous physical and monetary damages. There is a large strand of literature illustrating how past disaster experiences alter individuals’ behavioral decisions in the future, leading them to make inappropriate decisions. In view of this, the main topic of this research is to explore whether companies choose
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Climate change exposure, risk management and corporate social responsibility: Cross-country evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-10-22 William Mbanyele, Linda Tinofirei Muchenje
We examine how climate change risk impacts corporate social responsibility using an international firm-level sample. Exploiting a new firm-level measure of climate change risk, we find that firms significantly adjust their CSR standards upwards in response to climate change risk shocks. Using the difference in difference (DiD) approach and natural disaster shocks as plausibly exogenous shocks to climate
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Foreign bank lending: The role of home country culture during prosperous and crisis periods Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-09-13 Krzysztof Jackowicz, Oskar Kowalewski, Łukasz Kozłowski
We investigate whether a home country’s culture determines lending behavior of foreign bank subsidiaries in host countries during both prosperous and difficult economic periods. We employ a dataset of foreign-owned banks originating from 46 home countries and operating in 47 host countries during 1996–2018. The results show that, in general, only certain cultural dimensions of the home country influence
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-08-29
Abstract not available
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Financial structure and bank relationships of Italian multinational firms Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-08-23 Raffaello Bronzini, Alessio D’Ignazio, Davide Revelli
This paper examines the financial structure and bank relationships of multinational firms in Italy, a large European country strongly reliant on bank debt. We show that multinationals are, on average, more leveraged than non-internationalized companies. Moreover, multinationals have larger shares of both financial debt and bank debt as a percentage of total debt, benefit from lower interest rates,
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Currency denomination and borrowing cost: Evidence from global bonds Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-07-30 Bo Han
Global bonds are debt securities placed in multiple markets with globally connected trading and clearing mechanisms. This paper studies the relation between global bond issuers’ currency denomination decisions and prevailing borrowing costs. The results show that issuers of these globally fungible debt instruments make currency denomination decisions that are inconsistent with a belief in either covered
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Stock exchange governance and stock liquidity: International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-07-25 Selma Boussetta
This paper empirically investigates the effects of exchange demutualization on listed firms around the world. In particular, it examines how stock exchange demutualization affects stock liquidity and how the effect varies by exchange operating performance and country development level. We find that stock liquidity improves following exchange demutualization. Specifically, the effect is more evident
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Income diversification and bank performance nexus: Does corruption matter? Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-06-02 Bismark Addai, Wenjin Tang, Adjei Gyamfi Gyimah, Martinson Ankrah Twumasi
This study examines the impact of income diversification and corruption on banks’ performance. In particular, we focus on the impact of the extent of corruption in a country on the relationship between banks’ income diversification and performance. We utilize annual data on 715 banks from 52 countries in Africa over a period of eight years, 2011–2018. The results reveal that income diversification
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Editorial Board Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-05-31
Abstract not available
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Emerging market firm investments in advanced markets: A country of origin perspective Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-03-12 Rama Krishna Reddy, Sung- Jin Park, Scott Mooty
Drawing on the model of competitive advantages of nations and the concept of emerging market development heterogeneity, we argue the unique home country institutional and resource environments of emerging market firms influence the propensity of those firms to invest in advanced markets via mergers and acquisitions. Using data of 9157 cross-border M&A transactions originating from 60 emerging markets
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The role of private equity investments on exports: Evidence from OECD countries Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-03-05 Hernan Herrera-Echeverri, Debarshi K. Nandy, Daniel Fragua
We analyze the impact of private equity (PE) investments (both venture-backed and buyout deals) on export performance in a cross-country setting. Using a comprehensive database of 22 OECD countries and 12 aggregated industries, we find that PE has a positive effect on export density and export market share. We confirm this finding after controlling for potential endogeneity issues using an IV framework
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Media coverage and corporate risk-taking: International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-26 Xin Gao, Weidong Xu, Donghui Li
Employing a large sample of 13,449 firms across 40 countries, we find that firms with high media coverage tend to take risky investments. We further show that this positive relation is achieved through three plausible channels, namely, the information asymmetry channel, the capital-at-risk channel, and the business strategy channel, and is enhanced in countries with strong shareholder protection and
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How does firm size explain cross-country differences in ownership concentration? Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-24 Fariborz Moshirian, Thuy Thi Nguyen, Bohui Zhang
While a number of studies have examined ownership structure across countries, the literature has not yet reached a consensus as to how and why ownership concentration and the size sensitivity of ownership concentration vary across countries. Using a sample of 18,932 firms across 40 countries, we find that there is a negative relationship between firm size and ownership concentration and thus lower
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Stewardship, institutional investors monitoring, and firm value: Evidence from the United Kingdom Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-08 Nghia Huu Nguyen, Cheng-Yi Shiu
Stewardship encourages institutional investors to perform a monitoring function through cooperation and collective action. The United Kingdom was the first country to publish a Stewardship Code. This motivates us to investigate the monitoring role of institutional investors in the UK. We find that institutional ownership has a positive influence on firms' one-year future valuation and quality of corporate
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Foreign analysts and managerial investment learning from stock markets Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-08 Lingmin Xie, Zhian Chen, Donghui Li, Hongping Tan
This paper provides evidence on the role of foreign analysts in improving the informativeness of stock prices for corporate managers. Using a large sample of 15,623 firms in 42 economies, we find that foreign analysts improve managerial learning from stock markets as measured in terms of investment-to-price sensitivity. Consistent with the flow of information from global firms to local firms, we directly
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Inflexibility and corporate innovation: Cross-country evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-08 Jianjun Ge, Donghui Li, Yingzhao Ni, Shijie Yang
Employing an international sample from 25 economies, we investigate the relationship between firm-level scale inflexibility and corporate innovation. The baseline result shows that inflexibility is positively associated with innovation activities. In the mechanism analyses, we find that the positive relationship is mainly driven by firms with higher contraction inflexibility and in less stable external
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Does disinvestment from fossil fuels reduce the financial performance of responsible sovereign wealth funds? Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-02-03 Khalil Al Ayoubi, Geoffroy Enjolras
This paper examines the effects of negative screening on the financial performance of sovereign wealth funds (SWFs). SWFs have been under pressure to invest responsibly and divest from fossil fuel firms by their respective governments and citizens. Yet, such a strategy may reduce the financial performance of these funds. This study examines the extent to which excluding fossil fuel firms from SWF portfolios
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Product differentiation in the socially responsible mutual fund industry Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-01-14 Mercedes Alda, Fernando Muñoz, María Vargas
In this study, we analyse the effect of product differentiation on prices and client attraction in the socially responsible (SR) mutual fund industry. Using three proxies for differentiation, including a text-based indicator, a return-based indicator, and a portfolio-holding indicator, we analyse a sample of US SR equity mutual funds in the period 1999–2019. Our findings show that the text differentiation
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Liquidity Shocks, Price Volatilities, and Risk-managed Strategy: Evidence from Bitcoin and Beyond Journal of Multinational Financial Management (IF 4.482) Pub Date : 2022-01-12 Tao Tang, Yanchen Wang
This study examines the prediction power of market liquidity (the ease with which asset are traded) and funding liquidity (the ease with which traders can obtain funding) on the price volatilities of Bitcoin. We find that both market and funding liquidity shocks forecast future volatility. More importantly, liquidity shocks have a stronger and persistent effect on the long-term trend component of volatility
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Value creation and value destruction in investor-state dispute arbitration Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-12-13 Josef C. Brada, Chunda Chen, Jingyi Jia, Ali M. Kutan, M. Fabricio Perez
We investigate whether investor-state arbitration under investment protection treaties is valuable to foreign investors, and whether international arbitration has effects on firm value that are like those seen in domestic litigation. An event study of abnormal returns when claims for arbitration are filed and adjudicated show that firms gain in market value both at the time they file for arbitration
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Understanding the pricing of currency risk in global equity markets Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-12-11 G. Andrew Karolyi, Ying Wu
This paper explores potential economic mechanisms through which fluctuations in exchange rates are priced in international stock returns. Our investigation focuses on two currency risk factors – a dollar-risk factor and a carry-trade-risk factor – and their explanatory power for a variety of test assets comprised of monthly returns for over 47,000 stocks from 46 countries and over four decades. We
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Politics and equity markets: Evidence from Canada Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-12-08 Robert N. Killins, Thanh Ngo, Hongxia Wang
We examine how political power, polarization, and economic policy uncertainty (EPU) in Canada and the US affect the Canadian equity market from 1985 to 2019. We document little evidence of significant liberal government return premiums and the corresponding risk for the overall market and many industry sectors. Only the IT sector witnesses the “second half effect” of election cycles. The Canadian equity
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Country-segment disclosure of foreign operations from Central and Eastern Europe: Country-level determinants and value relevance Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-09-27 Alina Taran, Can Simga-Mugan, Marilena Mironiuc
Operating segments reporting represents a potential source of information about corporate foreign operations. This paper investigates the country-segment disclosure related to Central and Eastern European (CEE) operations - regarded as potential reporting segments - of multinational corporations (MNCs). The empirical analysis indicates limited information on country segments in general, and a few country
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Foreign-invested and domestic firm attributes and spillover effects: Evidence from Brazil Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-10-21 Bibhuti Sarker, John Serieux
This study focuses on productivity spillover effects of foreign direct investment (FDI) using firm-level panel data from Brazilian manufacturing firms. We seek to determine what attributes of foreign-invested enterprises (FIEs) and domestic firms are associated with the transfer and absorption of spillover effects, respectively. We find that when spillover effects are measured at the aggregate level
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Big data analytics, order imbalance and the predictability of stock returns Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-09-24 Erdinc Akyildirim, Ahmet Sensoy, Guzhan Gulay, Shaen Corbet, Hajar Novin Salari
Financial institutions have adopted big data to a considerable extent to provide better investment decisions. Consequently, high-frequency algorithmic traders use a vast amount of historical data with various statistical models to maximize their trading profits. Until recently, high-frequency algorithmic trading was the domain of institutional traders with access to supercomputers. Nowadays, any investor
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Do the specific countries in which a multinational corporation operates affect its private loan contracts? Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-08-05 Brandon Ater, Bowe Hansen
Previous research has shown that higher levels of firm globalization lead to a lower cost of private debt. However, this research generally treats globalization as a homogeneous attribute ignoring the specific countries in which a multinational corporation (MNC) operates. Using a sample of U.S. MNCs from 1999 through 2017, we relax this assumption and find that while the results from prior research
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Does mutual fund family size matter? International evidence Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-07-30 Yihao Chen, Antonio F. Miguel, Xiayue Liu
We use data from 33 countries to study how a fund’s affiliation with large families shapes the flow–performance relationship internationally. Our results show that the effect of family size on the fund flows’ response to performance depends on the sophistication of investors in a country. While less sophisticated investors are persuaded by the great visibility and strategies of funds that are affiliated
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Determinants of non-compliant equity funds with EU portfolio concentration limits Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-07-21 Lidia Loban, José Luis Sarto, Luis Vicente
This study identifies the determinants of domestic equity funds that fail to comply with the portfolio concentration limits of the EU Directive 2009/65/EC. This study also determines the characteristics of the stocks subject to these non-compliant portfolios. The empirical application to a comprehensive sample of domestic equity funds registered in the Eurozone provides significant information that
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The diverse effects of currency crises on multinational and local firms: The use of foreign currency debt Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-07-10 Jing Jin, Rose C. Liao, Gilberto Loureiro
Using a large sample of 1017 multinational parents with 13,758 affiliates and 3588 local firms in 26 countries, we examine the impact of currency crises on multinational firms and local firms between 2006 and 2014. We find that multinational affiliates use their internal capital markets to capitalize on the benefits of large currency depreciations and increase sales and investment significantly more
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The signaling role of covenants and the speed of capital structure adjustment under poor creditor rights: Evidence from domestically and cross-listed firms in Brazil Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-07-09 Tatiana Albanez, Rafael Schiozer
This paper studies how covenants affect the speed of capital structure adjustment in Brazil, an environment with poor creditor rights. Unlike previous evidence for developed countries, we find that the existence of debt covenants increases the speed of capital structure adjustment by more than 20% for firms that are only domestically listed. For firms that are cross-listed in the US, this effect is
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Is gold a safe haven for exchange rate risks? An empirical study of major currency countries Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-07-08 Kuan-Min Wang, Yuan-Ming Lee
This study uses a TVP-VAR model to test whether gold is a safe haven for exchange rate risks. The five major world currencies are examined: the Chinese renminbi, euro, British pound, Japanese yen, and U.S. dollar. The empirical results show that (1) gold cannot hedge currency depreciation in the long run; (2) gold can hedge currency depreciation dynamic risk in the short run; (3) gold can act as a
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Cross-listing and the alignment between short and long-run performance Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-06-22 Imen Ghadhab
This paper examines the alignment between initial price reaction and post-cross-listing performance for non-American firms cross-listed in the U.S. Using an event study methodology, we show that, while cross-listed firms exhibit long-term performance, short-term valuation gain is more important. We also find a significant difference between short and long-term price reactions, explained by legal investor
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The long-run performance of cross-border acquirers: An analysis of synergy sources Journal of Multinational Financial Management (IF 4.482) Pub Date : 2021-04-28 Junming Hsu, Tung-Hsiao Yang, Yi-Chi Tsai
This study examines the long-run stock performance of US firms conducting cross-border mergers and acquisitions and explores possible synergy sources by investigating three sets of factors: country differences, merger characteristics, and acquirers' operational variables. The results show that US cross-border acquirers underperform in the long run, a situation that does not significantly change according