Pub Date : 2025-02-28DOI: 10.1016/j.frl.2025.107046
Bilal Al-Dah , Mustafa A. Dah , Moataz El-Helaly
We examine the relation between board diversity and Related Party Transactions (RPTs), as well as the consequent impact on firm performance. We posit that board diversity has a favorable influence on RPTs and their value implications. Our results suggest that board diversity is positively (negatively) related to the likelihood of Business (Non-Business) RPT engagements. Moreover, board diversity enhances the positive impact of Business RPTs on firm performance while mitigating the negative effects of Non-Business RPTs. Overall, our findings support theories on the motivations behind different types of RPTs and highlight the essential role of board diversity in elevating internal monitoring.
{"title":"Board diversity and related party transactions","authors":"Bilal Al-Dah , Mustafa A. Dah , Moataz El-Helaly","doi":"10.1016/j.frl.2025.107046","DOIUrl":"10.1016/j.frl.2025.107046","url":null,"abstract":"<div><div>We examine the relation between board diversity and Related Party Transactions (RPTs), as well as the consequent impact on firm performance. We posit that board diversity has a favorable influence on RPTs and their value implications. Our results suggest that board diversity is positively (negatively) related to the likelihood of Business (Non-Business) RPT engagements. Moreover, board diversity enhances the positive impact of Business RPTs on firm performance while mitigating the negative effects of Non-Business RPTs. Overall, our findings support theories on the motivations behind different types of RPTs and highlight the essential role of board diversity in elevating internal monitoring.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107046"},"PeriodicalIF":7.4,"publicationDate":"2025-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143534234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107092
Lingxiao Tang, Kenan Li , Tao Xu
This study explores the moral hazard arising from currency swaps conducted by the People's Bank of China (PBoC), namely, its negative impact on foreign exchange reserves. On the basis of data from 183 economies from 2007 to 2022, this study uses the difference-in-differences (DiD) method and finds that the PBoC's currency swaps have generated moral hazard, leading to a decrease in foreign exchange reserves. The negative impact of the PBoC's currency swaps on the foreign exchange reserves of emerging economies and capital account open economies is greater, and moral hazard is stronger. The moderation analysis indicates that as political ties between China and other countries strengthen, the negative impact of the PBoC's currency swaps on foreign exchange reserves increases, and moral hazard intensifies. These findings have practical implications for enhancing the operational mechanism of central bank currency swaps as well as managing swap risks and costs.
{"title":"Do the People's Bank of China's currency swaps cause moral hazard?","authors":"Lingxiao Tang, Kenan Li , Tao Xu","doi":"10.1016/j.frl.2025.107092","DOIUrl":"10.1016/j.frl.2025.107092","url":null,"abstract":"<div><div>This study explores the moral hazard arising from currency swaps conducted by the People's Bank of China (PBoC), namely, its negative impact on foreign exchange reserves. On the basis of data from 183 economies from 2007 to 2022, this study uses the difference-in-differences (DiD) method and finds that the PBoC's currency swaps have generated moral hazard, leading to a decrease in foreign exchange reserves. The negative impact of the PBoC's currency swaps on the foreign exchange reserves of emerging economies and capital account open economies is greater, and moral hazard is stronger. The moderation analysis indicates that as political ties between China and other countries strengthen, the negative impact of the PBoC's currency swaps on foreign exchange reserves increases, and moral hazard intensifies. These findings have practical implications for enhancing the operational mechanism of central bank currency swaps as well as managing swap risks and costs.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107092"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107111
Siyu Fan , Yifei Wu , Ruochen Yang
Using site visit transcripts from Chinese-listed firms, we propose a generative large language model (LLM)-based approach to quantify firm-level supply chain risks. We validate our measure by showing that it varies intuitively over time and across industries, and it correlates with higher capital costs, greater stock return volatility, and larger inventory reserves. Furthermore, we identify distinct categories of supply chain risks at both the micro and macro levels, finding that supply chain concentration drives micro-level risks, while exposure to overseas markets and macroeconomic conditions drives macro-level risks. Our findings highlight the capability of LLMs to assess supply chain risk.
{"title":"Measuring firm-level supply chain risk using a generative large language model","authors":"Siyu Fan , Yifei Wu , Ruochen Yang","doi":"10.1016/j.frl.2025.107111","DOIUrl":"10.1016/j.frl.2025.107111","url":null,"abstract":"<div><div>Using site visit transcripts from Chinese-listed firms, we propose a generative large language model (LLM)-based approach to quantify firm-level supply chain risks. We validate our measure by showing that it varies intuitively over time and across industries, and it correlates with higher capital costs, greater stock return volatility, and larger inventory reserves. Furthermore, we identify distinct categories of supply chain risks at both the micro and macro levels, finding that supply chain concentration drives micro-level risks, while exposure to overseas markets and macroeconomic conditions drives macro-level risks. Our findings highlight the capability of LLMs to assess supply chain risk.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107111"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549982","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107028
Zhixiao Liu , Xue Zhang
The aging population is expanding globally, and addressing the challenges of elderly care is urgent. Using the 2019 China Household Finance Survey data, this study finds that commercial pension insurance significantly promotes households’ allocation of risky financial assets. We test the mechanisms using household risk perception and investment risk preference as mediating variables. Heterogeneity analysis reveals that the positive effect of commercial pension insurance on risky financial asset allocation is more significant in rural households with household registration, those with two sets of housing, and households in the northeast. The research findings of this article aim to promote the continuous improvement of China's elderly care system and provide important empirical evidence for the formulation of relevant policies.
{"title":"Commercial pension insurance and risky financial asset allocation: Evidence from elderly Chinese families","authors":"Zhixiao Liu , Xue Zhang","doi":"10.1016/j.frl.2025.107028","DOIUrl":"10.1016/j.frl.2025.107028","url":null,"abstract":"<div><div>The aging population is expanding globally, and addressing the challenges of elderly care is urgent. Using the 2019 China Household Finance Survey data, this study finds that commercial pension insurance significantly promotes households’ allocation of risky financial assets. We test the mechanisms using household risk perception and investment risk preference as mediating variables. Heterogeneity analysis reveals that the positive effect of commercial pension insurance on risky financial asset allocation is more significant in rural households with household registration, those with two sets of housing, and households in the northeast. The research findings of this article aim to promote the continuous improvement of China's elderly care system and provide important empirical evidence for the formulation of relevant policies.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107028"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107098
Yassine Boutouar , Maurizio La Rocca , Tiziana La Rocca , Augusto D'Amico
Equity crowdfunding (ECF) has emerged as an essential funding tool for sustainability-oriented ventures (SOVs). This study examines the relationship between sustainability orientation, high-tech sector affiliation such as information technology, pharmaceuticals, electronics, and telecommunications, and ECF campaign success in the Italian market. We analyze 140 ECF projects from 2017 to 2023, employing artificial intelligence techniques to classify campaign sustainability orientation. We examine the impact of SOVs on various ECF success metrics, including total funds raised, success ratio, and normalized success. Moreover, we explore the potential moderating role of high-tech sectors on the effect of sustainability orientation on campaign performance. Results reveal that SOVs have a significant positive impact on ECF success across multiple metrics, with the positive contribution of high-tech sector affiliation amplifying this effect.
{"title":"The role of sustainability and high-tech sector affiliation in shaping equity crowdfunding success: An AI perspective","authors":"Yassine Boutouar , Maurizio La Rocca , Tiziana La Rocca , Augusto D'Amico","doi":"10.1016/j.frl.2025.107098","DOIUrl":"10.1016/j.frl.2025.107098","url":null,"abstract":"<div><div>Equity crowdfunding (ECF) has emerged as an essential funding tool for sustainability-oriented ventures (SOVs). This study examines the relationship between sustainability orientation, high-tech sector affiliation such as information technology, pharmaceuticals, electronics, and telecommunications, and ECF campaign success in the Italian market. We analyze 140 ECF projects from 2017 to 2023, employing artificial intelligence techniques to classify campaign sustainability orientation. We examine the impact of SOVs on various ECF success metrics, including total funds raised, success ratio, and normalized success. Moreover, we explore the potential moderating role of high-tech sectors on the effect of sustainability orientation on campaign performance. Results reveal that SOVs have a significant positive impact on ECF success across multiple metrics, with the positive contribution of high-tech sector affiliation amplifying this effect.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107098"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143518914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107104
Tao Jiang, Jiabiao Fan
By implementing accurate credit risk pricing, companies can enhance their market comprehension, attract consumers, differentiate themselves from competitors, and expand their market share. Based on A-share listed firms spanning 2011 to 2023, this paper explores how the additional deduction for research and development expenses policy, optimizes enterprises` credit risk pricing ability. The findings confirm that implementing additional deductions for research and development expenses policy can promote enterprises` credit risk capability by driving the digital transition. This paper enriches the research framework on tax incentives, providing valuable insight for the government and management to achieve accurate credit risk pricing.
{"title":"How does the policy of additional deduction for research and development expenses affect credit risk pricing capability in enterprises?","authors":"Tao Jiang, Jiabiao Fan","doi":"10.1016/j.frl.2025.107104","DOIUrl":"10.1016/j.frl.2025.107104","url":null,"abstract":"<div><div>By implementing accurate credit risk pricing, companies can enhance their market comprehension, attract consumers, differentiate themselves from competitors, and expand their market share. Based on A-share listed firms spanning 2011 to 2023, this paper explores how the additional deduction for research and development expenses policy, optimizes enterprises` credit risk pricing ability. The findings confirm that implementing additional deductions for research and development expenses policy can promote enterprises` credit risk capability by driving the digital transition. This paper enriches the research framework on tax incentives, providing valuable insight for the government and management to achieve accurate credit risk pricing.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107104"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107103
Liang Pan, Yong Yang
This study investigates the effect of information disclosure on the investment efficiency of China's A-share listed companies over the period 2018–2022. Our results demonstrate that enhancing the quality of information disclosure leads to a substantial improvement in investment efficiency. By reducing information asymmetry and acting as a signaling mechanism, adequate information disclosure encourages greater investor propensity and investment scale, ultimately promoting investment efficiency. Additionally, we find that improving information disclosure quality mitigates the cost of financing constraints, thereby alleviating financial pressures associated with underinvestment.
{"title":"Enhancing investment efficiency through improved information disclosure","authors":"Liang Pan, Yong Yang","doi":"10.1016/j.frl.2025.107103","DOIUrl":"10.1016/j.frl.2025.107103","url":null,"abstract":"<div><div>This study investigates the effect of information disclosure on the investment efficiency of China's A-share listed companies over the period 2018–2022. Our results demonstrate that enhancing the quality of information disclosure leads to a substantial improvement in investment efficiency. By reducing information asymmetry and acting as a signaling mechanism, adequate information disclosure encourages greater investor propensity and investment scale, ultimately promoting investment efficiency. Additionally, we find that improving information disclosure quality mitigates the cost of financing constraints, thereby alleviating financial pressures associated with underinvestment.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107103"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143518907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-27DOI: 10.1016/j.frl.2025.107107
Ying Liu, Lei Zheng
This study delves into the impact of intelligent manufacturing (IM) capabilities on corporate investment efficiency using data from China's A-share listed companies from 2012 to 2022. Findings reveal that enhancements in IM capabilities significantly improve corporate investment efficiency; operational performance plays a positive moderating role in increasing investment efficiency through IM; operating costs exert a negative moderating influence; and the promotional effect of IM capabilities on investment efficiency is more pronounced in private enterprises.
{"title":"Intelligent manufacturing level and corporate investment efficiency","authors":"Ying Liu, Lei Zheng","doi":"10.1016/j.frl.2025.107107","DOIUrl":"10.1016/j.frl.2025.107107","url":null,"abstract":"<div><div>This study delves into the impact of intelligent manufacturing (IM) capabilities on corporate investment efficiency using data from China's A-share listed companies from 2012 to 2022. Findings reveal that enhancements in IM capabilities significantly improve corporate investment efficiency; operational performance plays a positive moderating role in increasing investment efficiency through IM; operating costs exert a negative moderating influence; and the promotional effect of IM capabilities on investment efficiency is more pronounced in private enterprises.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107107"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549980","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines, from the perspectives of executive and R&D personnel, whether equity incentives influence the financialization of enterprises, and investigates the underlying mechanism through which this influence operates. Findings reveal that equity incentives for corporate executives contribute to reducing corporate financialization. Furthermore, equity incentives decrease excess cash holdings in enterprises, which subsequently mitigates the degree of corporate financialization. Notably, compared to state-owned enterprises (SOEs), equity incentives for executives in non-SOEs yields a more significant reduction in corporate financialization.
{"title":"Investigation into the effects of equity incentives for executives and R&D personnel on corporate financialization","authors":"Sichong Chen , Shan Liang , Meng Chen , Didi Zhang","doi":"10.1016/j.frl.2025.107102","DOIUrl":"10.1016/j.frl.2025.107102","url":null,"abstract":"<div><div>This study examines, from the perspectives of executive and R&D personnel, whether equity incentives influence the financialization of enterprises, and investigates the underlying mechanism through which this influence operates. Findings reveal that equity incentives for corporate executives contribute to reducing corporate financialization. Furthermore, equity incentives decrease excess cash holdings in enterprises, which subsequently mitigates the degree of corporate financialization. Notably, compared to state-owned enterprises (SOEs), equity incentives for executives in non-SOEs yields a more significant reduction in corporate financialization.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107102"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143534241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The aim of the paper is to analyze the literature that investigates the connection between fintech, crowdfunding, entrepreneurs, academic spinoffs, startups, SMEs, and sustainability to provide insights into how this relationship is influencing researchers. Crowdfunding serves as a crucial element of the fintech ecosystem, promoting financial inclusion and empowering businesses that use these technologies. The Latent Dirichlet Allocation (LDA) method was used to carefully analyze the literature in the field. The findings highlight how crowdfunding facilitates creative enterprises (academic spinoffs, startups, and SMEs) and corresponds with the increasing need for sustainable business practices, offering a foundation for future research in this multidisciplinary field.
{"title":"The link between crowdfunding and sustainability: A literature review in the field of entrepreneurs and academic spinoffs","authors":"Giovanni Baldissarro , Elisa Farinelli , Gianpaolo Iazzolino , Riccardo Maiolini , Donato Morea","doi":"10.1016/j.frl.2025.107097","DOIUrl":"10.1016/j.frl.2025.107097","url":null,"abstract":"<div><div>The aim of the paper is to analyze the literature that investigates the connection between fintech, crowdfunding, entrepreneurs, academic spinoffs, startups, SMEs, and sustainability to provide insights into how this relationship is influencing researchers. Crowdfunding serves as a crucial element of the fintech ecosystem, promoting financial inclusion and empowering businesses that use these technologies. The Latent Dirichlet Allocation (LDA) method was used to carefully analyze the literature in the field. The findings highlight how crowdfunding facilitates creative enterprises (academic spinoffs, startups, and SMEs) and corresponds with the increasing need for sustainable business practices, offering a foundation for future research in this multidisciplinary field.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"77 ","pages":"Article 107097"},"PeriodicalIF":7.4,"publicationDate":"2025-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143518915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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