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How do timing and narrative tone influence the impact of pro-environmental orientation on crowdfunding performance? Finance Research Letters (IF 7.4) Pub Date : 2025-02-01 Ruichen Ge, Sha Zhang, Hong Zhao
Pro-environmentally oriented entrepreneurial projects on crowdfunding platforms have great potential for contributing to sustainable development. Previous research on the impact of pro-environmental orientation in crowdfunding has yielded mixed results, suggesting the existence of boundary conditions. This study examines how the timing and the narrative tone moderate this effect. Analyzing entrepreneurial
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Corporate short-termism and the use of performance-sensitive debt Finance Research Letters (IF 7.4) Pub Date : 2025-02-01 Zixia Miao, Yiping Huang, Yingyi Lv
We develop a dynamic agency model to investigate the impacts of performance-sensitive debt (PSD) on managers’ long-term and short-term efforts. Compared with straight debt, PSD reduces incentive costs and, in turn, increases long-term managerial effort. Moreover, PSD mitigates the excessive pursuit of short-term efforts when long-term and short-term efforts are substitutes, thereby alleviating short-termism
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How do financial markets price political uncertainty? Evidence from the 2024 United States presidential election Finance Research Letters (IF 7.4) Pub Date : 2025-01-31 Matthew Flynn, Augustine Tarkom
This study examines the relationship between perceived election outcomes and financial markets by analyzing the unique case of a United States presidential candidate with direct corporate interests. Focusing on Donald Trump's media company (DJT) and his 2024 presidential election odds from betting markets, we document robust evidence of market interdependence across multiple empirical specifications
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ESG transition incentives with loan guarantees Finance Research Letters (IF 7.4) Pub Date : 2025-01-31 Wenyang Xu, Zhaojun Yang, Nanhui Zhu
This paper develops a model of ESG transition in a loan–guarantee framework. By incorporating tax subsidies with loan guarantees, the financial stress due to the transition is alleviated. We find that the ESG ongoing input makes the transition postponed such that ESG transition investment threshold first increases and then decreases with the tax subsidy rate. At a sufficiently low transition cost,
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Does financial openness mitigate carbon emissions? Evidence from a cross-country study Finance Research Letters (IF 7.4) Pub Date : 2025-01-29 Xiaobo Fang, Dahai Fu, Yushi Xian, Ying Zhang
This study empirically investigates the impact of financial openness on carbon emission intensities at the country-level. Utilizing a fixed effects model and a comprehensive dataset across more than 100 countries from 1971 to 2019, we find that financial openness significantly reduces carbon emission intensities. The results are robust to various sensitivity analyses and control for potential endogeneity
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Risk spillovers between the BRICS and the U.S. staple grain futures markets Finance Research Letters (IF 7.4) Pub Date : 2025-01-28 Ying-Hui Shao, Yan-Hong Yang, Wei-Xing Zhou
This study examines spillover effects in the BRICS staple grain futures markets and their linkages with the U.S. markets. Results show that contemporaneous spillovers dominate, while net spillovers are driven by lagged connectedness. Systemic risk is lower in intra-BRICS markets than in those including the U.S., highlighting the U.S. grain market’s significant influence. Brazilian and U.S. grains,
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Predicting U.S. bank failures and stress testing with machine learning algorithms Finance Research Letters (IF 7.4) Pub Date : 2025-01-27 Wendi Hu, Chujian Shao, Wenyu Zhang
This study applies multiple machine learning models to forecast the bankruptcy of U.S. financial institutions from the year 2001 to 2023 using data from the Federal Deposit Insurance Corporation. To incorporate time dynamics, this paper employs exponentially weighted moving averages, enhancing the models’ predictive accuracy. The results show that the Random Forest model achieves the highest overall
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Dynamic tail risk connectedness among green REITs, sustainability products, and fossil energy assets under external shocks Finance Research Letters (IF 7.4) Pub Date : 2025-01-26 Liya Hau, Yao Ge, Yongmin Zhang, Weineng Zhu
This study employed a hybrid AS-CAViaR-TVP-VAR connectedness model to analyse the tail risk interconnectedness among green REITs, sustainability products, and fossil energy assets. Using daily data on twelve assets from January 1, 2015, to January 12, 2024, we found that the tail risk connectedness between green REITs and other markets intensifies under external shocks. Notably, green REITs in the
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Pension levels, social activities, and household consumption Finance Research Letters (IF 7.4) Pub Date : 2025-01-25 Bowen Qu
Using CHARLS2020 data, this paper conducts a comprehensive exploration of the deep-seated connections between pension levels, social engagement, and household spending. The findings indicate that elevated pension levels notably boost household consumption, with social activities serving as a crucial intermediary in this dynamic. Furthermore, the research uncovers diverse influences of gender, income
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A novel content-based approach to measuring monetary policy uncertainty using fine-tuned LLMs Finance Research Letters (IF 7.4) Pub Date : 2025-01-25 Arata Ito, Masahiro Sato, Rui Ota
Policy uncertainty is a potential source for reducing policy effectiveness. Existing studies have measured policy uncertainty by tracking the frequency of specific keywords in newspaper articles. However, this keyword-based approach fails to account for the context of articles and differentiate the types of uncertainty that such contexts indicate. This study introduces a new method for measuring different
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ESG incidents and M&A decisions Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Hongyu Cai, Qiyun Deng
We investigate how environmental, social, and governance (ESG) incidents influence mergers and acquisitions (M&A) decisions using a novel RepRisk dataset integrating ESG incidents with M&A transactions. Employing probit and Poirier bivariate probit models to address partial observability issues, we find that ESG incidents, especially environmental and social issues, significantly reduce merger success
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Cross-country gender bias and corporate cash holdings Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Jaroslav Horvath, Kyre Dane Lahtinen
We document a novel cross-country relationship between gender bias, as portrayed in a country’s folklore, and firms’ corporate cash holdings, while controlling for firm characteristics, country-specific macroeconomic attributes, governance factors, and cultural differences. We show that firms tend to hold significantly less cash in countries with a more pronounced Male Bias, defined as men being portrayed
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Risk evolution along the oil and gas industry chain: Insights from text mining analysis Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Shanshan Feng, Ke Ma, Gongpin Cheng
Focusing on five critical stages, this study uses text mining and topic modeling to analyze the evolving risks in the oil and gas industry chain (2019–2023). Findings highlight the COVID-19 pandemic and global energy transition as key drivers transforming localized risks into complex, multidimensional challenges. The phased risk analysis framework offers valuable insights for energy finance policymakers
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Unpacking the impact of the capital requirement regulation on non-performing loan dynamics in EU banks Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Inga Urbonaviciute
In the wake of the global financial crisis, an increasing trend in non-performing loans has led to significant risks to financial stability. The 2014 Capital Requirements Regulation was introduced to tackle systemic vulnerabilities in the banking sector by setting an 8% risk-weighted capital requirement. This study demonstrates that stricter capital regulation increases the costs of holding risky assets
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Impact of judgment readability on financial crimes Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Jalaj Pathak
Using NLP techniques, we extract the financial judgments from the overall set of supreme court judgments and find a one-unit increase in readability, implying harder-to-comprehend supreme court judgments, is significantly associated with a 2% increase in financial crimes for the next year. The results hold true for different categories of financial crimes and are robust to the other proxies for readability
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Do good and talk about it: The impact of investor relations quality on ESG ratings Finance Research Letters (IF 7.4) Pub Date : 2025-01-22 Lennart Bock, Toni W. Thun, Henning Zülch
This study provides robust evidence that higher investor relations (IR) quality goes in tandem with enhanced ESG ratings. Building on the extensive data from an established investor relations award in Germany, covering the largest listed firms between 2014 and 2022, we use both panel-data and two-stage least-squares regressions to analyze the effect of IR quality on ESG ratings. Our results hold true
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Enhancing high-dimensional dynamic conditional angular correlation model based on GARCH family models: Comparative performance analysis for portfolio optimization Finance Research Letters (IF 7.4) Pub Date : 2025-01-21 Zhangshuang Sun, Xuerui Gao, Kangyang Luo, Yanqin Bai, Jiyuan Tao, Guoqiang Wang
In this paper, we present a novel extension of the dynamic conditional angular correlation framework through several influential GARCH family models. This extension aims to enhance the precision in capturing volatility dynamics and broaden their applicability across diverse market conditions. Furthermore, the application of stock portfolio optimization based on the real financial data is conducted
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Comparative analysis of risk measures for optimal hedge ratio determination Finance Research Letters (IF 7.4) Pub Date : 2025-01-21 Fernanda Maria Müller, Leonardo Teixeira Spindler, Marcelo Brutti Righi
We present a comparative study of loss and loss-deviation measures for optimal hedge ratio estimation in a minimum-loss and loss-deviation framework. The study encompasses five equity market indices and their futures contracts, covering developed and emerging markets from 2006 to 2024. The results show that the Expected Loss Deviation (ELD) measure leads to an average 94.5% and 82% reduction of variance
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The impact of rating announcements on stock returns: A nonlinear assessment Finance Research Letters (IF 7.4) Pub Date : 2025-01-20 Marco Corazza, Giacomo di Tollo, Gianni Filograsso
The question of whether credit rating announcements by credit rating agencies can influence the short-run performance of firms has been long debated. Although evidence points to the occurrence of abnormal returns after the announcement, most event studies do not take into account the effect of potential non-linearities between the event and stock returns. This study proposes a novel approach to assess
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Can digital financial development improve the accuracy of corporate earnings forecasts Finance Research Letters (IF 7.4) Pub Date : 2025-01-20 Peipei Wang, Hongli Wang
Enhancing the precision of earnings forecasts contributes to heightened market openness, safeguards investors' interests, and fosters logical investment analysis. Based on A-share listed firms spanning 2011 to 2023, this paper explores how to enhance enterprises` earnings forecast accuracy in the digital era, examining the relationship between regional digital finance and corporate earnings forecast
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Trust as a driver in the DeFi market: Leveraging TVL/MCAP bands as confidence indicators to anticipate price movements Finance Research Letters (IF 7.4) Pub Date : 2025-01-18 Mar Grande, Javier Borondo
The modern digital world is increasingly embracing DeFi, which offers secure financial services on public blockchains. However, this emerging market still lacks widely accepted valuation models. In this paper, we introduce the TVL/MCAP bands as a market valuation indicator that captures investors’ trust in the market and is robust to price fluctuations. We show how crossovers on these bands alert about
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Holistic bidding strategies: Addressing target shareholders’ behavioral resistance in M&As Finance Research Letters (IF 7.4) Pub Date : 2025-01-18 Beni Lauterbach, Blake Loriot, Yevgeny Mugerman, Joshua Shemesh
The study examines how behavioral considerations of target shareholders affect deal completion likelihood. Lauterbach, Mugerman and Shemesh (2024) show that bidders adjust their offer prices to accommodate target shareholders’ loss aversion, and we find that these premium adjustments appear to mitigate potential bid resistance. Our tests, conducted in an extensive sample of all U.S. public firm merger
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Managerial overconfidence and corporate digital transformation Finance Research Letters (IF 7.4) Pub Date : 2025-01-17 Li Zhang, Xinwei Song
This study employs sample data from publicly listed companies between 2007 and 2022 to examine how managerial overconfidence influences corporate digital transformation. The findings reveal that managerial overconfidence exerts a considerable adverse effect on digital transformation, which is further exacerbated under conditions of limited funding. The research indicates that managerial overconfidence
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Mandatory CSR expenditure regulation and credit ratings: Evidence from India Finance Research Letters (IF 7.4) Pub Date : 2025-01-17 Neetu Yadav, Satish Kumar
This study investigates the impact of mandatory Corporate Social Responsibility (CSR) expenditure on credit ratings for 2759 firm-year observations from 2015 to 2023 in the Indian context. Our findings indicate that compliance with mandatory CSR spending significantly enhances credit ratings, particularly for firms with a history of voluntary CSR engagement. This suggests that rating agencies positively
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How do systematic risk spillovers reshape investment outcomes? Finance Research Letters (IF 7.4) Pub Date : 2025-01-17 Miaomiao Tao, David Roubaud, Aviral Kumar Tiwari, Emilson Silva
We investigate the effects of domestic and cross-border systematic risk spillovers on corporate investment metrics, using stock indices comprising 212 energy firms across 36 countries, spanning July 1, 2009, to August 31, 2023, sourced from S&P Global Commodity Insights®. The two-layered network underscores the catastrophic consequences induced by the Russia–Ukraine conflict in Europe. Our regression
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Does increased digital transformation decrease corporate cash holdings? The moderating role of business environment quality Finance Research Letters (IF 7.4) Pub Date : 2025-01-16 Huong Vu Van, Cuong Ly Kim
Despite the growing impact of digital transformation on firms' financial performance, its effect on corporate cash holdings remains underexplored. This study addresses this research gap by investigating the relationship between digital transformation and corporate cash holdings in Vietnam. The findings, based on microeconometric analysis of Vietnamese-listed firms, indicate that digital transformation
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Trying to think: An experimental study of the impact of cognitive load on financial risk taking by groups Finance Research Letters (IF 7.4) Pub Date : 2025-01-16 E. Lahav, R. Manos, G. Kashy-Rosenbaum, N. Sitbon
In today's corporate arena, decision-making processes are performed by professional groups such as directorates and investment committees. These decisions are often made under cognitive load. This study explores the impact of cognitive load on group investment decisions. We conduct a game-like investment experiment involving individuals, groups, and gender-heterogeneous groups, with half of the participants
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Government governance, family financial support, and financial well-being of the elderly: Evidence from CHARLS Data Finance Research Letters (IF 7.4) Pub Date : 2025-01-15 Liuhui Yang, Ruoyi Li
Based on 2018 CHARLS data, this study examines how government governance affects elderly financial well-being, finding a significant positive impact via enhanced household support. Impacts vary across urban/rural areas and different care models, enriching governance-wellbeing theories and informing policy.
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Climate risks and the connectedness between clean and dirty energy markets Finance Research Letters (IF 7.4) Pub Date : 2025-01-15 Jingyan Huang, Zhenhua Liu, Kun Guo
Climate risks pose significant challenges and threats to complex energy market system. This paper illuminates the interactions between clean and dirty energy markets and further investigates their asymmetric responses to climate risks. The influence of climate risks extends beyond extreme values and has a substantial impact on the overall distribution of the connectedness between clean and dirty energy
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Asymmetric effects of media climate sentiment divergence on the volatility of green and grey energy stocks Finance Research Letters (IF 7.4) Pub Date : 2025-01-15 Yating Fu, Lingyun He, Yufei Xia, Rongyan Liu, Ling Chen
We analyze 542,496 posts from Sina Weibo and construct a media climate sentiment divergence (MCSD) indicator to investigate the asymmetric impact of disagreement on green and grey energy markets. To this end, a non-linear autoregressive distributed lag (NARDL) model with daily data from January 2, 2014 to September 28, 2023 is employed, and the results show that since the negative change is significantly
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Digital communication and informed trading: Evidence from social distancing orders Finance Research Letters (IF 7.4) Pub Date : 2025-01-15 JinGi Ha
This study investigates the relationship between digital communication and the probability of informed trading (PIN). Using social distancing orders in March 2020 as an exogenous shock, this study identifies digital communication among market participants and finds that PIN significantly decreased after the social distancing orders became effective. Robustness tests at the state level and using an
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Legal system environment and banking risk Finance Research Letters (IF 7.4) Pub Date : 2025-01-14 Ruiqi Yang, Man Guo
This study investigates the impact of the legal system environment—rule of law, government effectiveness, and political stability—on banking risk proxied by gross financial flows (GRFIN). Using panel data from 19 upper middle-income countries, we apply multiple econometric models. Macroeconomic variables such as trade openness, inflation rate and foreign direct investment have also been included. The
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Impact of green credit on financing constraints of energy-consuming firms Finance Research Letters (IF 7.4) Pub Date : 2025-01-14 Shanshan Zhao, Qiong Wu, Xiaodong Zhou
This study empirically investigates the influence of green credit on financing constraints faced by A-share-listed energy-consuming enterprises between 2012 and 2022. Findings reveal that green credit intensifies financing constraints for energy-consuming enterprises. Specifically, when considering enterprises with varying ownership structures, green credit exacerbates financing constraints for private
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Digital finance and firm green innovation: The role of media and executives Finance Research Letters (IF 7.4) Pub Date : 2025-01-14 Wenwen Wang
This study aims to explore the influence of digital finance on firm green innovation and its underlying mechanisms, using data of A-share listed companies from 2011 to 2022. Findings indicate that digital finance positively affects firm green innovation by accelerating digital transformation. Media coverage and green executive cognition positively influence the impact of digital finance on green innovation
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Digitalization intensity and its impact on financial performance: The role of scalable platforms Finance Research Letters (IF 7.4) Pub Date : 2025-01-14 Roberto Moro-Visconti, Javier Sánchez García, Joaquín López Pascual, Salvador Cruz Rambaud
This research investigates the impact of digital platforms on financial and economic outcomes, emphasizing EBITDA, market capitalization, and the capacity for debt financing. The research illustrates that digital platforms enhance revenue streams while simultaneously decreasing operational expenditures, thereby leading to an overall enhancement in financial performance. Utilizing a dynamic panel data
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Portfolio optimization using deep learning with risk aversion utility function Finance Research Letters (IF 7.4) Pub Date : 2025-01-13 Kenji Kubo, Kei Nakagawa
This paper explores portfolio optimization with deep learning (DL), which can model non-linear returns that traditional methods cannot capture. While Sharpe loss addresses the risk-return trade-off in DL-based portfolio construction, it has limitations, including interpretability issues with negative PnL and biased gradients under stochastic gradient descent (SGD). We propose a new loss function based
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North Korea threat risk, Korean business groups and corporate tax avoidance Finance Research Letters (IF 7.4) Pub Date : 2025-01-12 Gun Lee, Hongmin Chun
Using unique North Korea threat risk data, this paper investigates the impact of North Korea threat risk on corporate tax avoidance, with a particular focus on Korean business groups. Empirical results indicate that North Korea threat risk is positively associated with corporate tax avoidance, and this relationship is more pronounced among business groups. These findings suggest that Korean business
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Predicting break-even in FinTech startups as a signal for success Finance Research Letters (IF 7.4) Pub Date : 2025-01-09 Claudio Garitta, Laura Grassi
FinTech startups drive innovation and competition in the financial services industry. An early milestone for these startups is to achieve break-even, which sends out a positive signal to the market – and to potential partners and financial institutions – by demonstrating viability and lower perceived risks. Our analysis of proprietary survey data using logit and random forest, interpreted through SHAP
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Do AI incidents and hazards matter for AI-themed cryptocurrency returns? Finance Research Letters (IF 7.4) Pub Date : 2025-01-08 Jying-Nan Wang, Hung-Chun Liu, Yuan-Teng Hsu
Yes! We use a novel repository of AI incidents and hazards (AIIH) provided by OECD.AI to measure the risks and harms of AI systems and investigate their effects on returns of both AI-themed and non-AI cryptocurrencies. Employing an augmented GJR-GARCH model, our results show that AIIH has no effect on returns of the two types of cryptocurrencies before the launch of ChatGPT-3.5; however, after ChatGPT's
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When climate risk hits corporate value: The moderating role of financial constraints, flexibility, and innovation Finance Research Letters (IF 7.4) Pub Date : 2025-01-08 Mirza Muhammad Naseer, Yongsheng Guo, Xiaoxian Zhu
This study examines the relationship between firms’ exposure to climate risk and their market value using global data from 2002 to 2022. A significant negative relationship between climate risk and firm value is identified, with geographic variation in impact severity. Asia faces the highest risk, followed by Europe, North America, and others. Policy events like the Stern Review and the Paris Agreement
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Crowdfunding for sustainable development: Comparing stand-alone and combined applications Finance Research Letters (IF 7.4) Pub Date : 2025-01-08 Francesca Michelino, Vincenzo Varriale, Francesco Appio, Mauro Caputo
Sustainable crowdfunding practices (SCPs) are presented to analyse how and to what extent crowdfunding is able to promote sustainable development, when applied both stand-alone and in combination with other crowd and open-based technologies.
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Analyzing the transmission effects of monetary policy in production networks under economic policy uncertainty Finance Research Letters (IF 7.4) Pub Date : 2025-01-08 Pin Peng, Yuanzhi Kang, Wanli Huang
This study leverages the “National Economic Industry Classification (2017)” input–output table to construct a spatial weight matrix. It employs a fixed-effects spatial panel Durbin model to analyze the transmission effects of monetary policy through production networks to the real economy. The analysis reveals that production networks serve as a significant channel for monetary policy transmission
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New-type infrastructure and corporate digital transformation: Evidence from a multimethod machine learning approach Finance Research Letters (IF 7.4) Pub Date : 2025-01-07 Chen Chen, Zhixin Xue
This study is an exploration of the impact of new-type infrastructure on corporate digital transformation. The results show that the construction of new-type infrastructure has played a major role in corporate digital transformation. The heterogeneity tests indicate that this positive effect is more significant with higher levels of urbanization and higher levels of human capital at the regional level
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The green premium: How environmental consciousness elevates crowdfunding success Finance Research Letters (IF 7.4) Pub Date : 2025-01-07 Francesco Appio, Tarik Bazgour, Federico Platania, Celina Toscano Hernandez
This study investigates the impact of environmental orientation on the success of crowdfunding projects, using a comprehensive dataset from Kickstarter. By examining environmental keywords, geographic distribution of backers, and other project characteristics, we find that environmentally oriented projects achieve significantly higher success rates and funding levels. Notably, while sustainability
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Financing sustainable entrepreneurship: Unpacking the role of campaign information and risk disclosure in reward-based crowdfunding Finance Research Letters (IF 7.4) Pub Date : 2025-01-07 Christian Hopp, Pascal Dey, Maria Riniker, Matthias Rüdiger
Understanding how the descriptions of crowdfunding campaigns, and particularly the information on risks, affect the campaign success of sustainable enterprises remains a critical gap in the literature on entrepreneurial crowdfunding. This study analyzes how campaign information and risk disclosure affect the campaign success of sustainable enterprises. Using a dataset comprising 98,528 crowdfunding
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Rising tides, rising funds: Floods and climate mitigation campaigns in equity crowdfunding Finance Research Letters (IF 7.4) Pub Date : 2025-01-07 Monica Billio, Vincenzo Butticè, Francesca Di Pietro, Francesca Tenca, Silvio Vismara
Climate change presents an urgent global challenge, increasing the frequency of extreme weather events. This paper contributes to sustainability research by examining the impact of floods on local equity crowdfunding activity in Italy from 2014 to 2023. Our findings reveal that floods significantly increase the probability of launching crowdfunding campaigns focused on climate mitigation initiatives
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What you see is not what you get: ESG scores and greenwashing risk Finance Research Letters (IF 7.4) Pub Date : 2025-01-07 Manuel C. Kathan, Sebastian Utz, Gregor Dorfleitner, Jens Eckberg, Lea Chmel
This paper shows that ESG scores capture a company’s greenwashing behavior. Greenwashing accusations are most prevalent among large companies with high ESG scores. We empirically employ a novel theoretical model that distinguishes between the communication of a company’s environmental efforts (apparent environmental performance) and its actual environmental impact (real environmental performance).
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State-owned enterprises: A bibliometric review and research agenda Finance Research Letters (IF 7.4) Pub Date : 2025-01-06 Claudia Curi, Paolo Mancuso, Alessandro Scarpa
This paper presents a comprehensive bibliometric analysis of research on state-owned enterprises (SOEs) from 1994 to 2024. Using data from top-tier journals, we identify four major research themes: determinants of SOEs’ performance, corporate finance, corporate governance, and globalization. We identify key trends, research gaps, and emerging areas of interest, such as the intersection of sustainability
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Curvature and the mean-variance-ESG frontier: A new measure of risk-return-ESG trade-offs Finance Research Letters (IF 7.4) Pub Date : 2025-01-06 Amine Mounir
This article develops a measure of portfolio return, variance, and ESG trade-offs, using the concept of curvature in differential geometry. This measure assesses the return reduction or risk expansion when seeking higher ESG scores for a given optimal portfolio. The application of curvature across four global markets indicates that (1) investors in the global minimum variance and the maximum Sharpe
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Time-frequency volatility spillovers between CBDC uncertainty and cryptocurrencies Finance Research Letters (IF 7.4) Pub Date : 2025-01-05 Jieru Wan, Liyan Han, You Wu
This study examines volatility spillovers between central bank digital currency (CBDC) uncertainty and cryptocurrencies in the time and frequency domains. Findings show that CBDC uncertainty transmits risk to cryptocurrencies, mainly in the short term. This risk contagion intensifies as countries advance their CBDC development. Moreover, good volatility from CBDC uncertainty to cryptocurrencies exceeds
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Using deep learning to predict energy stock risk spillover based on co-investor attention Finance Research Letters (IF 7.4) Pub Date : 2025-01-05 Jingjian Si, Xiangyun Gao, Jinsheng Zhou
The risk spillover of the energy stock market has become a research hot spot in the field of energy finance. Investors and regulators can avoid systemic risks through the risk spillover relationship among listed companies. Therefore, predicting the risk spillover of the energy stock market is necessary. This study proposes a new forecasting framework to predict the risk spillover among different listed
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Public debt and corporate debt: Is there a crowding out effect in Brazil? Finance Research Letters (IF 7.4) Pub Date : 2025-01-05 Carlos Stahlhoefer Hoerlle, Eduardo Kazuo Kayo
This study investigates the impact of public debt on the financing policy of Brazilian listed companies. The capital structure behavior of 451 listed companies from 1999 to 2020 is empirically analyzed using unbalanced panel data estimated with fixed effects. The results suggest a negative relationship between public debt and corporate leverage during this period, with a more significant effect on
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Generative AI-assisted evaluation of ESG practices and information delays in ESG ratings Finance Research Letters (IF 7.4) Pub Date : 2025-01-04 Qishu Wang
We explore the time-lag effects of Environmental, Social, and Governance (ESG) practices’ integration within firms from the NASDAQ 100 index, analyzing how this information is reflected over time through Generative AI. By employing ChatGPT-4 to assess ESG progress from 2011 to 2022 in their annual 10-K reports, we identify significant time-lagged effects between the AI-generated evaluations and the
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Gender disparity in the participation to equity crowdfunding campaigns Finance Research Letters (IF 7.4) Pub Date : 2025-01-04 Claudio Bonvino, Andrea Odille Bosio, Giancarlo Giudici
Despite the advent of equity crowdfunding increased democratization and access to capital resources and contributed to the financing of sustainable projects, there is puzzling evidence that women are less likely to invest in equity offers on the Internet. In this work, we point out the determinants that favor (or curb) women's participation in equity crowdfunding campaigns. Through different alternative
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Equity crowdfunding for sustainable oriented ventures: Lead investor impact on campaign success and post-campaign performance Finance Research Letters (IF 7.4) Pub Date : 2025-01-04 Nicola Del Sarto, Cristiano Bellavitis
This study examines how lead investors’ human capital influences equity crowdfunding (ECF) outcomes, focusing on campaign success and post-campaign performance, with a specific emphasis on Sustainable Oriented Ventures (SOVs). Using a two-step Heckman model on 508 Italian campaigns (2016–2020), we find that general human capital enhances campaign success universally, signaling credibility to investors
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Crowdfunding food waste related campaigns: The role of waste hierarchy classification and target market Finance Research Letters (IF 7.4) Pub Date : 2025-01-04 Ciro Troise, Stefania Testa, Enrico Battisti, Silvano Cincotti
This exploratory research investigates the success factors of food waste-related products and services in crowdfunding campaigns by focusing on two key aspects: the type of solution suggested in terms of waste management hierarchy classification (prevention versus reuse/recycle) and the target market (niche versus mass market). Specifically, 122 food waste-related campaigns launched on Kickstarter
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Beyond Green Labels: Assessing Mutual Funds’ ESG Commitments through Large Language Models Finance Research Letters (IF 7.4) Pub Date : 2025-01-04 Katherine Wood, Chaehyun Pyun, Hieu Pham
This paper investigates whether mutual funds that adopt ESG-related names follow through on the implied increase in ESG commitments. Utilizing Large Language Models (LLMs) to analyze mutual fund prospectuses, we find that, following a name change, funds increase their discussion of ESG and improve their holdings-based ESG scores. While we observe a positive correlation between a fund’s ESG content
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Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India Finance Research Letters (IF 7.4) Pub Date : 2025-01-03 Rajat Sharma, Sonia Chawla, Vishal Dagar, Leila Dagher
This study explores the impact of corporate SDG adoption on share price synchronicity in India's emerging market, focusing on the dissemination of firm-specific information. Using data from Indian firms, the analysis demonstrates that SDG adoption reduces share price synchronicity by enhancing stock market liquidity and attracting greater analyst coverage. The effect is stronger in non-state-owned
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