Pub Date : 2026-02-02DOI: 10.1016/j.frl.2026.109596
Xinwei Guo, Zhongguo Li
We comprehensively explore how governance education investment affects firms’ social responsibility behavior. Based on a dataset spanning from 2015 to 2024, the study provides robust evidence that government investment in education strongly enhances the social responsibility performance of firms. The positive effect is further amplified among firms located in economically underdeveloped areas and highly polluting ones. Further investigation uncovers that rural-born executives and highly educated employees are core economic channels. These results are robust to a number of econometric checks. Overall, by shedding light on the unintentional consequences of government education investment, our paper enriches the relevant literature.
{"title":"Impacts of governments’ education investment on firms’ social responsibility behavior","authors":"Xinwei Guo, Zhongguo Li","doi":"10.1016/j.frl.2026.109596","DOIUrl":"10.1016/j.frl.2026.109596","url":null,"abstract":"<div><div>We comprehensively explore how governance education investment affects firms’ social responsibility behavior. Based on a dataset spanning from 2015 to 2024, the study provides robust evidence that government investment in education strongly enhances the social responsibility performance of firms. The positive effect is further amplified among firms located in economically underdeveloped areas and highly polluting ones. Further investigation uncovers that rural-born executives and highly educated employees are core economic channels. These results are robust to a number of econometric checks. Overall, by shedding light on the unintentional consequences of government education investment, our paper enriches the relevant literature.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109596"},"PeriodicalIF":6.9,"publicationDate":"2026-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146111034","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 : 2026-02-02DOI: 10.1016/j.frl.2026.109599
Jing Xu , Yanfang Liu , Chaoxia Yao
This paper uses a sample of listed companies from China's Shanghai and Shenzhen A-shares from 2012 to 2023 to systematically explore the impact, mechanisms, and differences of Confucian academy construction on the moral risk of corporate executives. The study finds that constructing Confucian academies can effectively reduce the moral risk of corporate executives; violations by listed companies play an intermediary role in the relationship between the construction of Confucian academies and the moral risk of corporate executives; the impact of Confucian academy construction on the moral risk of corporate executives shows heterogeneity between state-owned enterprises (SOEs) and private enterprises (PEs); and it also displays heterogeneity between profitable and unprofitable enterprises.
{"title":"Can the construction of confucian academies reduce the moral risk of executives? An analysis based on the intermediary effect of violations by listed companies","authors":"Jing Xu , Yanfang Liu , Chaoxia Yao","doi":"10.1016/j.frl.2026.109599","DOIUrl":"10.1016/j.frl.2026.109599","url":null,"abstract":"<div><div>This paper uses a sample of listed companies from China's Shanghai and Shenzhen A-shares from 2012 to 2023 to systematically explore the impact, mechanisms, and differences of Confucian academy construction on the moral risk of corporate executives. The study finds that constructing Confucian academies can effectively reduce the moral risk of corporate executives; violations by listed companies play an intermediary role in the relationship between the construction of Confucian academies and the moral risk of corporate executives; the impact of Confucian academy construction on the moral risk of corporate executives shows heterogeneity between state-owned enterprises (SOEs) and private enterprises (PEs); and it also displays heterogeneity between profitable and unprofitable enterprises.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"93 ","pages":"Article 109599"},"PeriodicalIF":6.9,"publicationDate":"2026-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146111038","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 : 2026-01-31DOI: 10.1016/j.frl.2026.109595
Chao Meng , Yimei Zhang
This study uses data of China’s A-share listed firms spanning 2012–2022 to analyze the effect of value-added tax (VAT) credit refunds on export competitiveness. Additionally, it explores the characteristics of heterogeneity, analyzing the connection between tax policy and competitiveness. Notably, VAT credit refunds significantly improve firms’ export competitiveness. Mediation effect test concludes that firms’ cash flow and research and development investment play a partial intermediary role between VAT credit refunds and firm export competitiveness. Heterogeneity analysis indicates that the improvement effect is more significant in firms issuing standard audit opinions; firms with financial backgrounds; firms with directors, supervisors, and senior executives; and firms without overseas backgrounds. This study provides empirical evidence and policy reference for improving the VAT credit refund policy and assisting firms enhance their export competitiveness.
{"title":"Can value-added tax reform improve the export competitiveness? Evidence from China","authors":"Chao Meng , Yimei Zhang","doi":"10.1016/j.frl.2026.109595","DOIUrl":"10.1016/j.frl.2026.109595","url":null,"abstract":"<div><div>This study uses data of China’s A-share listed firms spanning 2012–2022 to analyze the effect of value-added tax (VAT) credit refunds on export competitiveness. Additionally, it explores the characteristics of heterogeneity, analyzing the connection between tax policy and competitiveness. Notably, VAT credit refunds significantly improve firms’ export competitiveness. Mediation effect test concludes that firms’ cash flow and research and development investment play a partial intermediary role between VAT credit refunds and firm export competitiveness. Heterogeneity analysis indicates that the improvement effect is more significant in firms issuing standard audit opinions; firms with financial backgrounds; firms with directors, supervisors, and senior executives; and firms without overseas backgrounds. This study provides empirical evidence and policy reference for improving the VAT credit refund policy and assisting firms enhance their export competitiveness.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"93 ","pages":"Article 109595"},"PeriodicalIF":6.9,"publicationDate":"2026-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146187308","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109591
Oguzhan Cepni , Ufuk Can , Ahmet Faruk Aysan
This paper investigates how abnormal weather shocks influence U.S. state-level municipal bond returns, offering evidence on the pricing of climate risk in local public debt markets. Using a composite index of standardized weather anomalies and a panel local projections framework, we find delayed but persistent negative effects of abnormal weather shocks on municipal bond returns. Returns remain stable initially but decline by about 35 basis points after four to six months and by 40 basis points after one year, indicating gradual repricing as fiscal and credit conditions adjust. Furthermore, we document partisan asymmetries: bonds issued by Republican-led states exhibit sharper short-term declines, reflecting weaker climate policies and adaptation efforts. Over the medium term, the effects converge across states, suggesting that abnormal weather shocks ultimately impose real and widespread fiscal costs on municipalities, regardless of political orientation.
{"title":"Abnormal weather shocks and US state level municipal bond returns","authors":"Oguzhan Cepni , Ufuk Can , Ahmet Faruk Aysan","doi":"10.1016/j.frl.2026.109591","DOIUrl":"10.1016/j.frl.2026.109591","url":null,"abstract":"<div><div>This paper investigates how abnormal weather shocks influence U.S. state-level municipal bond returns, offering evidence on the pricing of climate risk in local public debt markets. Using a composite index of standardized weather anomalies and a panel local projections framework, we find delayed but persistent negative effects of abnormal weather shocks on municipal bond returns. Returns remain stable initially but decline by about 35 basis points after four to six months and by 40 basis points after one year, indicating gradual repricing as fiscal and credit conditions adjust. Furthermore, we document partisan asymmetries: bonds issued by Republican-led states exhibit sharper short-term declines, reflecting weaker climate policies and adaptation efforts. Over the medium term, the effects converge across states, suggesting that abnormal weather shocks ultimately impose real and widespread fiscal costs on municipalities, regardless of political orientation.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109591"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089527","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109590
Nutao Yu, Cao Peng, Kejin Chen
This paper takes listed companies on the Shanghai and Shenzhen Chinese A-share markets from year 2011 to 2022 as the research sample, quantifies government attention to new quality productive forces through the frequency of related terms in local government work reports, and examines its impact effect and mechanism on the labor income share within the jurisdiction. The study finds that the increase in government attention to new quality productive forces significantly raises the labor income share of enterprises, and this conclusion remains valid after a series of robustness tests. Mechanism testing reveals that government attention to new quality productive forces enhances the labor income share by promoting increased corporate R&D investment and human capital adjustments. Heterogeneity analysis finds that the promotion effect is more pronounced for enterprises that are non-state-owned, in the manufacturing sector, or located in high marketization regions. The conclusions of this paper can provide certain policy implications for the government to develop new quality productive forces and increase the labor income share of enterprises to some extent.
{"title":"How does government attention to new quality productive forces affect corporate labor income share?","authors":"Nutao Yu, Cao Peng, Kejin Chen","doi":"10.1016/j.frl.2026.109590","DOIUrl":"10.1016/j.frl.2026.109590","url":null,"abstract":"<div><div>This paper takes listed companies on the Shanghai and Shenzhen Chinese A-share markets from year 2011 to 2022 as the research sample, quantifies government attention to new quality productive forces through the frequency of related terms in local government work reports, and examines its impact effect and mechanism on the labor income share within the jurisdiction. The study finds that the increase in government attention to new quality productive forces significantly raises the labor income share of enterprises, and this conclusion remains valid after a series of robustness tests. Mechanism testing reveals that government attention to new quality productive forces enhances the labor income share by promoting increased corporate R&D investment and human capital adjustments. Heterogeneity analysis finds that the promotion effect is more pronounced for enterprises that are non-state-owned, in the manufacturing sector, or located in high marketization regions. The conclusions of this paper can provide certain policy implications for the government to develop new quality productive forces and increase the labor income share of enterprises to some extent.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109590"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089524","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109594
Dong Chen
Using data spanning 2011–2021 from a sample of Chinese A-share-listed firms, this study examines how digital leadership influences the efficiency of corporate labor investment. Notably, digital leadership enhances labor investment efficiency, and this relationship operates through two complementary mechanisms: improved strategic agility and enhanced information transparency. Contextual variations in findings show strong effects in non-state-owned enterprises (SOEs) and eastern regions with better developed digital infrastructures, offer valuable insights for enterprises optimizing human resource allocation through digital transformation, and provide policy implications for balanced regional digital development.
{"title":"How does digital leadership influence the efficiency of corporate labor investment?","authors":"Dong Chen","doi":"10.1016/j.frl.2026.109594","DOIUrl":"10.1016/j.frl.2026.109594","url":null,"abstract":"<div><div>Using data spanning 2011–2021 from a sample of Chinese A-share-listed firms, this study examines how digital leadership influences the efficiency of corporate labor investment. Notably, digital leadership enhances labor investment efficiency, and this relationship operates through two complementary mechanisms: improved strategic agility and enhanced information transparency. Contextual variations in findings show strong effects in non-state-owned enterprises (SOEs) and eastern regions with better developed digital infrastructures, offer valuable insights for enterprises optimizing human resource allocation through digital transformation, and provide policy implications for balanced regional digital development.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109594"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089525","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109593
Hong Chen , Yuheng Meng , Lifu Liu , Minrui Du
This paper uses data on Chinese A-share private listed companies from 2007 to 2023 to examine how state-owned capital participation in “reverse mixed-ownership reform” affects excess goodwill, from both the perspective of “articulated rules” and “unarticulated rules.” The empirical results show that state-owned capital participation significantly curbs excess goodwill in private enterprises, and this finding remains robust after a series of endogeneity and robustness checks. Mechanism tests suggest that the effect operates mainly through strengthened governance and information channels. Further analysis indicates that the inhibitory effect is more pronounced when industrial state-owned capital participates, and state-owned capital participation also significantly alleviates the risk of subsequent goodwill impairment. This paper develops a theoretical framework linking state-owned capital participation to excess goodwill in private enterprises, sheds light on the institutional logic underlying China’s “mixed-ownership reform,” and tells a Chinese story of complementary advantages among heterogeneous shareholders.
{"title":"How does state-owned capital participation suppress excess goodwill in private enterprises?","authors":"Hong Chen , Yuheng Meng , Lifu Liu , Minrui Du","doi":"10.1016/j.frl.2026.109593","DOIUrl":"10.1016/j.frl.2026.109593","url":null,"abstract":"<div><div>This paper uses data on Chinese A-share private listed companies from 2007 to 2023 to examine how state-owned capital participation in “reverse mixed-ownership reform” affects excess goodwill, from both the perspective of “articulated rules” and “unarticulated rules.” The empirical results show that state-owned capital participation significantly curbs excess goodwill in private enterprises, and this finding remains robust after a series of endogeneity and robustness checks. Mechanism tests suggest that the effect operates mainly through strengthened governance and information channels. Further analysis indicates that the inhibitory effect is more pronounced when industrial state-owned capital participates, and state-owned capital participation also significantly alleviates the risk of subsequent goodwill impairment. This paper develops a theoretical framework linking state-owned capital participation to excess goodwill in private enterprises, sheds light on the institutional logic underlying China’s “mixed-ownership reform,” and tells a Chinese story of complementary advantages among heterogeneous shareholders.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109593"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089528","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109579
Huiling Huang , Yixiang Tian
Green bond pricing is distorted by unpriced positive externalities, leading to suboptimal investment. To correct this market failure, we develop an integrated framework that incorporates green reputation, carbon quota trading, and subsidies to internalize these externalities. We quantify operational boundaries for these policy instruments, establishing a prioritized market-led, trading-regulated, subsidy-supported intervention sequence. Numerical results reveal a clear hierarchy: for low-cost projects, reputation mechanisms are sufficient for effective pricing. For projects with moderate costs, carbon quota trading becomes the dominant mechanism, while subsidies provide essential support for the highest-cost projects. This suggests that effective pricing depends on a targeted approach, leveraging different market and policy instruments according to the cost structure.
{"title":"Pricing Green Bonds Under Externalities: How do market signals and government intervention affect project emission reduction and bond pricing?","authors":"Huiling Huang , Yixiang Tian","doi":"10.1016/j.frl.2026.109579","DOIUrl":"10.1016/j.frl.2026.109579","url":null,"abstract":"<div><div>Green bond pricing is distorted by unpriced positive externalities, leading to suboptimal investment. To correct this market failure, we develop an integrated framework that incorporates green reputation, carbon quota trading, and subsidies to internalize these externalities. We quantify operational boundaries for these policy instruments, establishing a prioritized market-led, trading-regulated, subsidy-supported intervention sequence. Numerical results reveal a clear hierarchy: for low-cost projects, reputation mechanisms are sufficient for effective pricing. For projects with moderate costs, carbon quota trading becomes the dominant mechanism, while subsidies provide essential support for the highest-cost projects. This suggests that effective pricing depends on a targeted approach, leveraging different market and policy instruments according to the cost structure.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109579"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146075702","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 : 2026-01-30DOI: 10.1016/j.frl.2026.109592
Yaodan Hu, Sirui Chen, Wen Zheng, Zhen Zhu
This study investigates whether local executives help curb corporate "Greenwashing" using a sample of China’s non-financial A-share listed firms over 2008–2022. Results indicate that firms led by local executives are significantly less likely to engage in greenwashing. This relationship holds under multiple robustness checks. Mechanism analysis reveals that the curbing effect is driven by executives' hometown identity, reputational pressure, and long-term decision-making. The results highlight the importance of informal-governance via executive regional ties in promoting credible environmental disclosure and reducing opportunistic environmental claims.
{"title":"Can local executives effectively curb corporate \"greenwashing\" ?","authors":"Yaodan Hu, Sirui Chen, Wen Zheng, Zhen Zhu","doi":"10.1016/j.frl.2026.109592","DOIUrl":"10.1016/j.frl.2026.109592","url":null,"abstract":"<div><div>This study investigates whether local executives help curb corporate \"Greenwashing\" using a sample of China’s non-financial A-share listed firms over 2008–2022. Results indicate that firms led by local executives are significantly less likely to engage in greenwashing. This relationship holds under multiple robustness checks. Mechanism analysis reveals that the curbing effect is driven by executives' hometown identity, reputational pressure, and long-term decision-making. The results highlight the importance of informal-governance via executive regional ties in promoting credible environmental disclosure and reducing opportunistic environmental claims.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109592"},"PeriodicalIF":6.9,"publicationDate":"2026-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089526","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 : 2026-01-29DOI: 10.1016/j.frl.2026.109589
Haohua Liu, Qiang Pan
This study investigated the impact of digital finance on the supply chain resilience of manufacturing firms. The results indicate that digital finance significantly improves the supply chain resilience of manufacturing firms. Mechanistically, digital finance enhances the supply chain resilience of manufacturing firms through three channels: alleviating financing constraints, promoting digital transformation of firms, and boosting innovation capacity. Heterogeneity analysis suggests that this resilience-enhancing effect is more pronounced for large firms, firms with high financial risk, and firms in regions with improved digital infrastructure. The findings of this paper offer valuable insights into the relationship between digital finance and supply chain resilience, holding critical implications for both policymakers and corporate managers to formulate resilience strategies.
{"title":"Digital finance and supply chain resilience of manufacturing firms","authors":"Haohua Liu, Qiang Pan","doi":"10.1016/j.frl.2026.109589","DOIUrl":"10.1016/j.frl.2026.109589","url":null,"abstract":"<div><div>This study investigated the impact of digital finance on the supply chain resilience of manufacturing firms. The results indicate that digital finance significantly improves the supply chain resilience of manufacturing firms. Mechanistically, digital finance enhances the supply chain resilience of manufacturing firms through three channels: alleviating financing constraints, promoting digital transformation of firms, and boosting innovation capacity. Heterogeneity analysis suggests that this resilience-enhancing effect is more pronounced for large firms, firms with high financial risk, and firms in regions with improved digital infrastructure. The findings of this paper offer valuable insights into the relationship between digital finance and supply chain resilience, holding critical implications for both policymakers and corporate managers to formulate resilience strategies.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"92 ","pages":"Article 109589"},"PeriodicalIF":6.9,"publicationDate":"2026-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146071785","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}
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