In order to fully capture the substantive spatial effect, linear and varying coefficient effects of regressors, and space–time correlations of disturbances, this paper introduces a new fixed effects partially linear varying coefficient spatial autoregressive model (PLVCSARM) with disturbances correlated in space and time. Its profile quasi-maximum likelihood estimators (PQMLEs) are constructed. Under

This paper selects the data of listed companies from 2012 to 2021 as the research sample to explore the relationship between analyst coverage and corporate financing decisions. It is found that the higher the analyst coverage, the more enterprises tend to engage in debt financing. The role of analyst coverage on corporate financing methods is more evident in non-state-owned and small-scale enterprises

Abstract not available

We test whether the inclusion of green asset ETFs in portfolios yields better outcomes for investors. We use a mean-variance optimization framework to construct optimal portfolios with and without green assets and compare their performance over different time horizons and market conditions. Our results show that the portfolios that combine green assets with other broader market indices generate higher

Existing studies have focused disproportionately on the impact of mixed ownership reform while ignoring the influence of reverse mixed ownership reform. Considering this, we explore the effects of the latter on corporate leverage manipulation. We find that state-owned capital injection can inhibit corporate leverage manipulation, and the possible mechanisms are the “resources effect” and the “governance

This paper analyzes the relationship between corporate financialization and credit spreads of bond issuance. We find that the increase of corporate financialization can significantly reduce the issuance credit spreads of bond-issuing enterprises; the increase of corporate financialization reduces the credit spreads of corporate bond issuance through the improvement of corporate business performance

We structurally estimate an investment-based asset pricing model, in which firms' exposure to macroeconomic risk is unknown. Bayesian beliefs about this parameter are updated from firms' and industry peers' comovement between their productivity and consumption growth. The model implies that discount rates rise endogenously with the perceived risk exposure of firms, thereby depressing investment and

Regulators are increasingly seeking ways to incentivize firms to improve corporate social responsibility (CSR) while minimizing criticism of direct interventions in firm behavior. This study takes advantage of two exogenous regulatory shocks initiated by the Consumer Financial Protection Bureau (CFPB) in the US. In 2011, the CFPB enabled the private filing of consumer complaints against financial firms

We present a rational expectations model of credit-driven crises, providing a new perspective to explain why credit booms can lead to severe financial crises and aftermath slow economic recoveries. In our model economy, banks can operate in two types of business. They are sequentially aware of the deterioration of fundamentals of the speculative business and decide whether to continue credit extension

This study investigates the impact of futures on earnings management in the gold mining industry. Using quarterly data from a global sample of gold firms between 2003 and 2019, we find evidence of income-increasing accruals and real earnings management during contango periods (when futures price exceed the current spot price). Conversely, gold firms use income-decreasing accruals and real earnings

Utilising a unique hand-collected dataset, this paper examines the relationship between media coverage of chief executive officers (CEOs) and cash holding. Using a sample of all stocks listed on the S&P 500 over the period 2005–2020, we find a positive and significant relationship between CEO media coverage and cash holdings. Our additional analyses demonstrate that CEO mobility and firm age positively

We analyze the market reaction of 137 Silicon Valley Bank (SVB) depositors and 251 SVB borrowers to the bank's collapse. Depositor shares experience a -5.12% abnormal return (AR) on the event date (March 10, 2023), and a -12.38% cumulative abnormal return (CAR) over a 30-day post-event window. More surprisingly, the borrowers also experience a similar event-day AR (-4.16%) and an even worse 30-day

In 2022, a policy increased mortgage guarantee fees for government-sponsored enterprises (GSE) purchases in high-cost areas. Given that the adjustment is specific to selected loan types, we employ a difference-in-differences approach to evaluate the shifts in origination charges for affected mortgages relative to unaffected ones. We find that the increases in origination charges only encapsulate a

This paper uses the data of A-share listed enterprises in Shanghai and Shenzhen from 2010 to 2022 as samples for empirical analysis. The empirical research finds that tax credit reporting has A significant positive impact on the labor investment efficiency of enterprises, and this impact is achieved by reducing the internal and external financing constraints of enterprises. In addition, the heterogeneity

This paper selects A-share listed companies in 2018-2022 as a research sample and examines the relationship between ESG performance and listed companies' solvency. It is found that the company's current ESG performance is positively correlated with its current solvency, and there is no lag; the correlation between high-pollution enterprises for solvency and ESG performance is more potent than that

This paper selects the strategic differences of A-share listed companies in 2016-2021 as the research object and analyzes the impact of the company's strategic differences on the level of operating earnings management. It is found that real earnings management and count the earnings management have an impact on the total earnings management of the company, respectively, negatively affecting real earnings

This study takes the agriculture-related enterprises listed in Shanghai and Shenzhen stock markets of China as the research object to study the impact of digital inclusive finance on the agricultural factor mismatch of agriculture-related enterprises. The empirical results show that the improvement of the development level of digital inclusive finance can effectively reduce the price distortion of

Traditional financial institutions are increasingly engaging in mergers and acquisitions (’M&As’) with financial technology (’fintech’) firms. Utilizing signaling theory, we argue that investors perceive an acquirer’s first fintech deal as a signal of commitment to a digitalized future. Our findings, based on 1681 fintech and nonfintech M&A deals, reveal that acquirers exhibit a significantly higher

Green credit is financial institutions voluntarily carry out loans and project funding, taking environmental risks into consideration and it is the most influential in the world at present. In order to obtain the support of green credit, manufacturing firms need to continuously improve the environment performance for low-carbon projects to promote energy conservation and emission reduction. Manufacturing

This study takes the annual data of Shaanxi Western Mineral Energy Development Co. to analyze the impact of digitalization and green finance on the transformation of mineral energy enterprises. The two-way fixed effect model and mediated effect model are used for statistical analysis to calculate the intrinsic influence mechanism of the mediating variables on the variables through the relationship

Health care costs for U.S. employers have tripled over the past 20 years. Using firm-specific health expense data, I show that firms negatively adjust capital expenditures and R&D expenses in response to increases in health care costs. The effects are more pronounced for firms that are financially constrained, employ more high-skilled workers, and have less bargaining power relative to insurers. Furthermore

This paper pioneers exploring the risk contagion attributes of emerging NFT markets, characterized by considerable volatility, through a time-frequency risk spillover lens within the integrated Carbon-NFT-Stock system. Our findings are multifaceted. Firstly, NFT acts as the risk transmitter in extreme upside condition and receiver in extreme downside condition. Secondly, in extreme downside condition

This work discusses a three-tier supply chain finance system (SCFS) composed of a supplier, an electronic business (EB) platform and a financially distressed retailer, where the EB platform acts as both a seller and a financier. We build a multi-tier game model under revenue-sharing contract (RSC) and analyze the operational strategies for all members. We further examine how the commission rate influences

Using the formal implementation of the 2012 Green Credit Guidelines (GCG) as an exogenous shock to construct a quasi-natural experiment, we study the impact of green credit policies on the inefficient investment of heavily polluting enterprises in China's listed enterprises from 2008 to 2020. We find that green credit policies can significantly alleviate the inefficient investment of heavily polluting

This paper selects the relevant data of listed companies from 2015 to 2021 to study the relationship and influence mechanism between equity pledge behavior and debt financing cost of listed companies. It is found that controlling shareholders' equity pledge behavior affects the debt financing cost of listed companies, which makes the financing cost of listed companies increase; equity pledge mainly

This paper studies the relationship between air pollution and the quality of environmental information disclosure taking the A-share listed companies in Shanghai and Shenzhen from 2014 to 2020 as sample. The study found that: firstly, air pollution will reduce the quality of enterprise environmental information disclosure. The main reason is that senior executives living in air pollution areas are

We study the use and economic impact of AI technologies. We propose a new measure of firm-level AI investments using employee resumes. Our measure reveals a stark increase in AI investments across sectors. AI-investing firms experience higher growth in sales, employment, and market valuations. This growth comes primarily through increased product innovation. Our results are robust to instrumenting

Households tend to hold substantial amounts of non-financial assets in the form of consumer goods inventories that are unobserved by traditional measures of wealth, about $725 on average for products covered by our sample. Such holdings can eclipse total financial assets among households in the lowest income quintile. Households can obtain significant financial returns from strategically shopping and

This paper studies whether ChatGPT-4 with access to the internet is able to provide valuable investment advice and evaluate financial information in a timely manner. Using a live experiment, we find a positive correlation between ChatGPT-4 ratings and future earnings announcements and stock returns. We find evidence that ChatGPT-4 adjusts ratings in response to earnings surprises and news events information

Under the background of frequent occurrence of climate risk, climate risk avoidance of agribusiness can cause its own stock price volatility, in order to explore this effect, this paper takes Shanghai and Shenzhen A-share listed companies as research samples from 2010 to 2022, and analyzes in-depth the between them The final results of the study are as follows: (1) climate risk aversion in agricultural

This paper examines the effects of proximity in the consumer network structure on the diffusion of firms' new products. We find that the average path length of network on new products diffusion is unrelated to consumer preferences. The average path length of consumer network decreases the efficiency of new product diffusion. But under the similar preferences of consumers, the trend of changes of consumers

Integrated Thinking, the management approach associated with Integrated Reporting, has been hailed as a way of improving organisational decision-making and internal communication, leading to sustainable value creation. Yet Integrated Thinking remains poorly defined and understood. By analysing and synthesising the findings from an emerging body of case study evidence, this paper brings new theoretical

This paper analyzes the performance of Islamic banks (IBs) in Qatar compared to their conventional counterparts (CBs), considering the effects of four major events: The subprime crisis, economic blockade, Covid pandemic, and the Russian-Ukrainian conflict. We collected quarterly data from seven listed Qatari banks (4 CBs and 3 IBs). We examine and compare their performance and financial ratios evolution

In this study, we use intraday data on Bitcoin, Ethereum, Litcoin, and Monero, traded on the Bitfinex exchange, to investigate the impact of the crypto fear and greed index (FGI) on the pairwise price synchronicity of these cryptocurrencies. Based on data from February 2018 to June 2023, our results show that the relationship between investors’ collective sentiment (the FGI) and price synchronicity

Affine GARCH models have recently been explored in the context of portfolio optimization, although in a quite narrow setting in terms of utility functions and risk aversion. This work notably extends existing results, accommodating a richer class of objective functions for a large family of GARCH models. In particular, our approach allows for connections to constant proportion portfolio insurance (CPPI)

Based on the data from June 13, 2019 to September 1, 2023, this paper analyzes the impact of the grain futures market on the stock price volatility of listed agricultural companies. The results show that the composite price index of grain futures and the composite stock price index of listed agricultural companies are granger reasons for each other in the short term. The cointegration test shows that

This study investigates whether executives who concurrently hold director positions in other firms undergoing reputation-damaging incidents, such as fraud, are more likely to face forced turnovers. Using logistic regression with a matched sample, we find an increased likelihood of CEOs being replaced when their director-position interlocked firms go through negative events. The labor market further

Abstract not available

Amid an aging population and a growing role for private equity (PE) in the care of older adults, this paper studies how PE ownership affects U.S. nursing homes using patient-level Medicare data. We show that PE ownership leads to a patient population with lower health risk. However, after instrumenting for the patient-nursing home match, we find that PE ownership increases mortality by 11%. Declines

The classic view assumes banks prioritize immediate repayment by selling assets until default. We endogenize run frequency and study how general settlement rules trade off liquidity provision net of fire sale losses against induced run incentives. Panic runs are eliminated when all illiquid assets are sold under orderly resolution, but liquidity provision in a run is minimal. When suspension after

Financial markets reveal information that firm managers can utilize when making equity value-enhancing investment decisions. However, for firms with risky debt, such investments are not necessarily socially efficient. Despite this friction, we show that learning from prices improves investment efficiency. This effect is asymmetric, however, as investors learn less about projects that decrease the riskiness

Using panel data from 60 countries spanning from January 2006 to December 2021, we investigate how economic policy uncertainties (EPUs) affect two subcomponents of systemic risk (systemic linkage and individual risk), and differentiate the influences resulting from global and local EPU shocks. Our findings demonstrate that increased global shocks result in higher systemic linkages, while domestic uncertainties

This study investigates the interconnectedness of ASEAN-4, regional, and global financial markets by analyzing risk spillover layers using multilayer information spillover network topology across instruments including bonds, forex, and stocks. The findings uncover intricate relationships between markets. Extreme risk and volatility spillover layers may indicate early financial crises, while mean spillovers

This study performs a Bayesian assessment of a New Keynesian DSGE model that links the costly state-verification financial friction with financial constraints from the costly-enforcement problem. We also analyze three theoretical counterparts that contain either one financial rigidity or any of them. Therefore, we compare four DSGE models with each other and with a set of BVARs for U.S. data. We show

This study presents a model in which behavioral investors shape their current expectations based on statistical analysis of historical non-disclosure events. Investors may hold overly optimistic expectations following a non-disclosure event, thereby disrupting unravelling toward forthcoming disclosures. While a regulator can mandate disclosure, this protective intervention has its drawbacks. Overprotection

This study examines the relationship between environmental policy stringency (EPS) and bank risks, with an additional focus on exploring the influence of EPS on bank risks through the mechanism of green economy. The primary result of our study reveals that EPS can increase bank risks. Additionally, we find that EPS contributes to the mitigation of bank risks through the channel of green economy. Moreover

We develop the concept of auditor industry range as the extent to which an auditor has experiences in auditing clients from different industries, and we link this construct to auditor performance, drawing on prior research in psychology and cognitive science. We find that auditors with a wide range of industry experiences are more likely to require audit adjustments than auditors with a narrow range

We investigate the response of shareholders to Environmental, Social, and Governance-related reputational risk (ESG-risk), focusing exclusively on the impact of social media. Using a dataset of 114 million tweets about firms listed on the S&P100 index between 2016 and 2022, we extract conversations discussing ESG matters. In an event study design, we define events as unusual spikes in message posting

Abstract not available

This study presents a novel, thorough approach for central banks to identify and rate digital currency adoption obstacles. The study uses AHP and ANP to identify and prioritise CBDC adoption issues in two phases. The biggest hurdles identified are economic, technical, and financial.

We present empirical evidence at the firm-level regarding the influence of political advancement on robotic adoption. Our analysis indicates that the imperative of political elevation considerably augments the propensity of local enterprises to embrace robotic technologies. The robustness of our conclusions remains consistent across varied estimation specifications. Moreover, the implications are particularly

The aim of this paper is to identify potential determinants of bitcoin returns. We consider a wide range of various determinants including economic, financial and technology-related factors as well as uncertainty and attention indices. The analysis is conducted using LASSO models estimated using both frequentist and Bayesian methods. We evaluate the ability of these estimators to forecast bitcoin returns

We examine the effect of book-tax differences (BTDs) on firm value in the context of publicly traded firms in Russia. We find that BTDs are negatively related to firm value. We further find that the negative relation between BTDs and firm value is weaker with an increase in dividend payout. This finding indicates that dividend payout weakens the negative effect of BTDs on firm value. This effect is

We show that the performance of the new factor models of Hou et al. (2015) and Fama and French (2015) depends crucially on how their investment factor is constructed. Both models use growth in total assets to measure investment. Their ability to price the cross-section of returns decreases significantly when the investment factor is constructed using traditional investment measures, or measures that

Repo markets are an important first stage of monetary policy transmission. In the European repo market, the majority of participants, including non-dealer banks and non-banks, do not have access to centralized trading platforms. Rather, they rely on OTC intermediation by a small number of dealers that exert significant market power. Dealer market power causes the passthrough of the ECB's policy rate

We examine the relationship between geopolitical risks and foreign exchange markets using the Russia-Ukraine conflict as a natural experiment. Our main findings indicate that, due to intensified geopolitical risks, the conflict had a negative effect on foreign exchange rates. This adverse effect of geopolitical risks is more pronounced in countries with high reliance on Russian energy, countries with

Abstract not available

This paper assesses the impact of distinct types of financial crises on social protection spending using a panel of 105 countries over the period 1991–2019. The findings show that spending on social protection increases when financial crises strike, mainly in the aftermath of banking crises. However, currency and debt crises are detrimental to spending on social protection, threatening social wellbeing

Stress tests convey information about the strictness of future tests, creating incentives for banks to alter their future lending behavior. Regulators recognize and use this influence: they may conduct softer stress tests to encourage lending or tougher stress tests to reduce risk-taking. This information management can lead to inefficiencies when (a) the test loses credibility or (b) the test becomes

Although the detrimental impact of traffic congestion on firm operations and human health is widely acknowledged, it is unclear whether auditors perceive traffic congestion as a risk factor. We posit and find that the traffic congestion levels in audit clients' domicile cities are positively associated with audit fees. Using a structured equation model, we identify and illustrate several channels that