Finance Research Letters最新文献

This paper selects data from January 18, 2018, to May 6, 2024, as a sample to study the impact of cryptocurrency price volatility on the stock and gold markets. The empirical study finds that the price volatility of the cryptocurrency market causes the price of the stock market to fluctuate in the same direction, and the price volatility of the cryptocurrency market causes the price of the gold market to fluctuate in the opposite direction.

This paper investigates the impact of the RMB exchange rate regime reform on corporate risk-taking, utilizing Chinese non-financial firm-level data from 2000 to 2022. The results show that the RMB exchange rate regime reform helps decrease corporate risk-taking by decreasing the RMB exchange rate expectations uncertainty, enhancing capital allocation efficiency, and stabilizing the investor structure. These results remain robust to changing variable measurements and estimation methods, removing policy shocks and endogeneity concerns. Our findings highlight the significance of currency liberalization in stabilizing corporate risk attitudes and promoting the improvement of market efficiency.

In recent years, the high growth of house prices in G7 countries has attracted some attention from all sectors due to the role of the real estate bubble in the global financial crisis of 2008. In this research, we analyzed the house price bubbles and their determinants in G7 countries. Firstly, we detected multiple house price bubbles in G7 countries between 1970 and 2022 and located when the house price bubbles emerged and burst. Second, we investigated the determinants of house price bubbles in each country and in the G7 countries as a whole. The results show that the level of house price bubbles and their determinants is significantly diversified over countries. However, total population, size of private debt, GDP per capita, and urbanization are among the common drivers of the whole G7 countries. Based on these results, we provide some suggestions on the critical points for a stable real estate market development.

As firms increasingly invest in intelligent technologies while facing environmental pressures, it is crucial to understand the relationship between these investments and green innovation. This study aims to investigate how intelligent investment influences corporate green innovation, as well as the moderating roles of executive green perception and environmental regulation. Multiple regression analyses are employed to test our hypotheses through the use of panel data from Chinese A-share listed companies (2007–2022). According to the research findings, intelligent investment has a significant positive impact on green innovation, and this effect is further amplified by stronger executive green perception and more stringent environmental regulations. It is noteworthy that various types of firms are affected differently by this effect. State-owned enterprises and pollution-intensive industries exhibit stronger positive relationships, while non-high-tech sectors show more pronounced impacts. These findings enhance our understanding of how firms leverage technology to drive sustainable innovation, offering valuable insights for managers seeking to align tech investments with their goals of sustainability, and for legislators and administrators designing effective environmental regulations. It is recommended that policymakers take into account the establishment of regulatory frameworks that are conducive to intelligent investments, thereby fostering green innovation across various industries.

This study examined the impact of overconfidence in financial literacy on risky asset investments within retirement wealth reserves. We used data of 36,268 respondents of the “China Aging Finance Survey” (2020–2022). The findings reveal that overconfidence significantly drives households toward riskier investments, and the conclusions were reinforced through robustness checks. Furthermore, the effect was moderated by pension replacement rate satisfaction, willingness to pay for financial advice, and risk preferences. Heterogeneity analysis indicates that male respondents and less educated respondents were significantly affected by overconfidence. Moreover, respondents with basic pension insurance were likelier to opt for risky assets.

Stable transfer contracts are essential for the development of the land market. This analysis investigates the impacts of different institutions and their interactive effects on the stability of land transfer contracts in rural China. Based on a survey dataset of 833 farmers from three provinces, we demonstrate that tenure institutions have a significantly positive effect and that informal social relationships have a significantly negative effect. Additionally, rules that are relevant to village self-governance strengthen the effect of formal tenure institutions and weaken the effect of social relationships. This finding indicates that complementary and substitute interactive effects exist between these two groups of institutions.

This study examines the influence of platform characteristics — ownership stakes and underwriting fees — on the outcomes of equity crowdfunding campaigns and their ability to attract subsequent funding. Analyzing data from 2016 to 2022 across all U.S. equity crowdfunding platforms, our findings reveal that while platform ownership stakes positively correlate with immediate campaign success and follow-on funding, underwriting fees negatively impact success. However, these correlations weaken or reverse when analyzing the varying stakes taken within an individual platform like Wefunder and StartEngine. The findings highlight the importance of using multiple platforms in analyzing the impact of platform stakes on success.

This study employs a Bayesian Interacted Panel VAR model to estimate time-varying Generalized Forecast Error Variance Decomposition, analyzing how key determinants affect debt in Core and Peripheral Euro Area countries. Results highlight varying effects of determinants across periods and subgroups.

Environmental, Social, and Governance (ESG) investments are widely discussed in the stock market. Further, the debate on ESG investment profitability has garnered significant scholarly attention. This study examines the relationship between ESG investments and equity investment return (EIR) and whether this relationship is affected by investors' sophistication. The results suggest that while ESG investors generally gain relatively lower profits than others, sophisticated investors, characterized by greater financial knowledge, diversified investments, contrarian investment strategies, and not being influenced by familiar biases, can mitigate these lower returns. These findings enhance our understanding of ESG investments and offer valuable insights to guide investors in making sophisticated ESG investment decisions.

This paper examines the impact of firms' ESG competitive disadvantages on debt financing costs using data from Chinese A-share listed firms from 2011 to 2021. It reveals that (1) ESG competitive disadvantages heighten debt financing costs; (2) local environmental concerns and industry competition strengthen this relationship; (3) ESG competitive disadvantages increase financing costs through heightened financial risk and information asymmetry; and (4) this relationship is significant particularly for mature, declining, and privately-owned firms. This paper, for the first time, explores the penalisation mechanism of corporate negative ESG performance, providing new evidence to advocate for proactive ESG governance.