Pub Date : 2025-12-29DOI: 10.1016/j.frl.2025.109446
Xinyi Yang , Haiqing Shao , Qiang Hao , Yue Li
This study takes Chinese A-share listed companies as its research sample to empirically examine the impact of top management team (TMT) heterogeneity on corporate merger and acquisition (M&A) performance. The findings reveal that TMT heterogeneity exerts a significant positive influence on M&A performance. This enhancement effect is primarily realized through the strengthening of corporate dynamic capabilities. Further analysis of moderating effects indicates that internal pay disparity weakens the positive effect of TMT heterogeneity, whereas high financing efficiency provides crucial resource support, thereby strengthening this positive relationship. Heterogeneity analysis shows that the value-creating effect of TMT heterogeneity in M&As is more pronounced in firms with higher cost of equity capital, abundant slack resources, and higher ownership concentration.
{"title":"Dynamic capabilities as an enabling mechanism: Top management team heterogeneity and M&A performance","authors":"Xinyi Yang , Haiqing Shao , Qiang Hao , Yue Li","doi":"10.1016/j.frl.2025.109446","DOIUrl":"10.1016/j.frl.2025.109446","url":null,"abstract":"<div><div>This study takes Chinese A-share listed companies as its research sample to empirically examine the impact of top management team (TMT) heterogeneity on corporate merger and acquisition (M&A) performance. The findings reveal that TMT heterogeneity exerts a significant positive influence on M&A performance. This enhancement effect is primarily realized through the strengthening of corporate dynamic capabilities. Further analysis of moderating effects indicates that internal pay disparity weakens the positive effect of TMT heterogeneity, whereas high financing efficiency provides crucial resource support, thereby strengthening this positive relationship. Heterogeneity analysis shows that the value-creating effect of TMT heterogeneity in M&As is more pronounced in firms with higher cost of equity capital, abundant slack resources, and higher ownership concentration.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109446"},"PeriodicalIF":6.9,"publicationDate":"2025-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145922506","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 : 2025-12-28DOI: 10.1016/j.frl.2025.109447
Leqiong Gu , Chaoran Zhou , Ying Xie
Against the backdrop of rising volatility in global capital markets and the growing influence of media, understanding how media attention shapes stock price crash risk is of both theoretical and practical importance. Using data from Chinese A-share listed firms, this study examines the impact of media supervision on stock price crash risk. The results show that greater media attention significantly increases the likelihood of stock price crashes. Mechanism analyses suggest that media coverage amplifies investor pessimism and managerial negative sentiment, leading to the accumulation of bad news and increased information asymmetry, thereby intensifying crash risk. Media pressure also affects firms’ information disclosure quality, constituting an additional transmission channel. Moreover, the study identifies a nonlinear effect: moderate media attention enhances information transparency and reduces the probability of stock price crashes. Overall, this research advances understanding of how media influences extreme downside risk and offers policy implications for promoting more regulated media reporting, improving information transparency, and strengthening investor education.
{"title":"Information monitoring or emotional contagion? A mechanism analysis of media attention's impact on stock price crash risk","authors":"Leqiong Gu , Chaoran Zhou , Ying Xie","doi":"10.1016/j.frl.2025.109447","DOIUrl":"10.1016/j.frl.2025.109447","url":null,"abstract":"<div><div>Against the backdrop of rising volatility in global capital markets and the growing influence of media, understanding how media attention shapes stock price crash risk is of both theoretical and practical importance. Using data from Chinese A-share listed firms, this study examines the impact of media supervision on stock price crash risk. The results show that greater media attention significantly increases the likelihood of stock price crashes. Mechanism analyses suggest that media coverage amplifies investor pessimism and managerial negative sentiment, leading to the accumulation of bad news and increased information asymmetry, thereby intensifying crash risk. Media pressure also affects firms’ information disclosure quality, constituting an additional transmission channel. Moreover, the study identifies a nonlinear effect: moderate media attention enhances information transparency and reduces the probability of stock price crashes. Overall, this research advances understanding of how media influences extreme downside risk and offers policy implications for promoting more regulated media reporting, improving information transparency, and strengthening investor education.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109447"},"PeriodicalIF":6.9,"publicationDate":"2025-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145922503","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 : 2025-12-28DOI: 10.1016/j.frl.2025.109445
Meifang Yao, Shuangyuan Yang
This paper focuses on A-share listed companies in China and systematically examines the relationship between digital business model innovation (DBMI), operational efficiency (OE), and corporate financial performance based on panel data from 2013 to 2023. The research findings indicate that DBMI significantly enhances corporate financial performance; OE plays a partial mediating role between DBMI and corporate financial performance; and there is significant heterogeneity in the mediating role of OE across companies with varying levels of digital infrastructure. The conclusion provides empirical evidence for enterprises to improve operational performance through digital transformation and offers references for policymakers to promote the deep integration of digital and real economies.
{"title":"Digital business model innovation, operational efficiency, and corporate financial performance","authors":"Meifang Yao, Shuangyuan Yang","doi":"10.1016/j.frl.2025.109445","DOIUrl":"10.1016/j.frl.2025.109445","url":null,"abstract":"<div><div>This paper focuses on A-share listed companies in China and systematically examines the relationship between digital business model innovation (DBMI), operational efficiency (OE), and corporate financial performance based on panel data from 2013 to 2023. The research findings indicate that DBMI significantly enhances corporate financial performance; OE plays a partial mediating role between DBMI and corporate financial performance; and there is significant heterogeneity in the mediating role of OE across companies with varying levels of digital infrastructure. The conclusion provides empirical evidence for enterprises to improve operational performance through digital transformation and offers references for policymakers to promote the deep integration of digital and real economies.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109445"},"PeriodicalIF":6.9,"publicationDate":"2025-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844763","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109437
Prince Bosompim , Richmond Essieku , Jodi Letikiewicz
Study investigates whether the source of financial information (offline or online social networks) influences consumer trust in artificial intelligence-generated and human expert financial advice, specifically housing investment. Using nationally representative survey data from a randomized experiment conducted by the SSRS and FINRA Investor Education Foundation, we estimate causal effects through propensity score matching and inverse probability weighting techniques. We find that offline sources increase trust in human experts, particularly among individuals with higher financial literacy and those in midlife. In contrast, online sources are associated with greater trust in artificial intelligence, especially among younger adults, political liberals, and mobile home residents. These results suggest that trust in financial advice is shaped by the social context in which information is received, offering implications for policy and platform design in the digital finance era.
{"title":"In whom we trust? Social networks and trust in AI vs. human experts financial advice","authors":"Prince Bosompim , Richmond Essieku , Jodi Letikiewicz","doi":"10.1016/j.frl.2025.109437","DOIUrl":"10.1016/j.frl.2025.109437","url":null,"abstract":"<div><div>Study investigates whether the source of financial information (offline or online social networks) influences consumer trust in artificial intelligence-generated and human expert financial advice, specifically housing investment. Using nationally representative survey data from a randomized experiment conducted by the SSRS and FINRA Investor Education Foundation, we estimate causal effects through propensity score matching and inverse probability weighting techniques. We find that offline sources increase trust in human experts, particularly among individuals with higher financial literacy and those in midlife. In contrast, online sources are associated with greater trust in artificial intelligence, especially among younger adults, political liberals, and mobile home residents. These results suggest that trust in financial advice is shaped by the social context in which information is received, offering implications for policy and platform design in the digital finance era.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109437"},"PeriodicalIF":6.9,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844770","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109439
Qihui Sun , Cheng Zhang , Yangyang Yao
Facing the practical demand of building a green, low-carbon, and circular development economic system under the "carbon peak and neutrality" goals, guiding patient capital with long-term characteristics to support firm green innovation is crucial. Using Chinese A-share listed firms as a sample, this paper theoretically analyzes and empirically tests the impact of patient capital on firm green low-carbon cycle innovation. The study finds that patient capital significantly promotes firm green low-carbon cycle innovation, and this conclusion remains robust after a series of robust tests. Mechanism analysis indicates that patient capital primarily promotes firm green low-carbon cycle innovation by overcoming corporate short-termism, alleviating financing constraints, enhancing green innovation quality, and promoting the agglomeration of green star inventors. Heterogeneity analysis shows that the promoting effect of patient capital is more significant for non-state-owned enterprises, small and medium-sized enterprises, firms with high analyst coverage, non-dual-role firms, and in regions with strong environmental regulations or weak financial development. The conclusions of this paper offer valuable insights for understanding the governance and financial functions of patient capital, thereby guiding long-term capital to empower high-quality economic development.
{"title":"Patient capital and firm green low-carbon cycle innovation","authors":"Qihui Sun , Cheng Zhang , Yangyang Yao","doi":"10.1016/j.frl.2025.109439","DOIUrl":"10.1016/j.frl.2025.109439","url":null,"abstract":"<div><div>Facing the practical demand of building a green, low-carbon, and circular development economic system under the \"carbon peak and neutrality\" goals, guiding patient capital with long-term characteristics to support firm green innovation is crucial. Using Chinese A-share listed firms as a sample, this paper theoretically analyzes and empirically tests the impact of patient capital on firm green low-carbon cycle innovation. The study finds that patient capital significantly promotes firm green low-carbon cycle innovation, and this conclusion remains robust after a series of robust tests. Mechanism analysis indicates that patient capital primarily promotes firm green low-carbon cycle innovation by overcoming corporate short-termism, alleviating financing constraints, enhancing green innovation quality, and promoting the agglomeration of green star inventors. Heterogeneity analysis shows that the promoting effect of patient capital is more significant for non-state-owned enterprises, small and medium-sized enterprises, firms with high analyst coverage, non-dual-role firms, and in regions with strong environmental regulations or weak financial development. The conclusions of this paper offer valuable insights for understanding the governance and financial functions of patient capital, thereby guiding long-term capital to empower high-quality economic development.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109439"},"PeriodicalIF":6.9,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844765","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109442
Li Meng , Jintao Zhang , Pai Pang
Corporate social responsibility (CSR) disclosures play an increasingly important role in shaping firms’ information environments and investor perceptions, particularly in emerging markets characterized by strong regulatory interventions. This study examines how tax enforcement reforms influence firms’ CSR disclosure strategies. Leveraging the merger of China’s State Tax and Local Tax Bureaus as a quasinatural experiment, we employ a difference-in-differences model to investigate its impact on CSR report readability. Notably, tax enforcement reform is correlated with significantly reduced CSR report readability, indicating that firms may strategically obscure weaker social responsibility performance through less transparent disclosure. Heterogeneity tests indicate that firms with stronger profitability and higher government subsidies face more pronounced shocks. The findings contribute to the literature on tax enforcement and CSR disclosure by demonstrating the unintended nonfinancial consequences of institutional reforms.
{"title":"Unintended consequences of tax enforcement reform: Evidence from corporate social responsibility report readability","authors":"Li Meng , Jintao Zhang , Pai Pang","doi":"10.1016/j.frl.2025.109442","DOIUrl":"10.1016/j.frl.2025.109442","url":null,"abstract":"<div><div>Corporate social responsibility (CSR) disclosures play an increasingly important role in shaping firms’ information environments and investor perceptions, particularly in emerging markets characterized by strong regulatory interventions. This study examines how tax enforcement reforms influence firms’ CSR disclosure strategies. Leveraging the merger of China’s State Tax and Local Tax Bureaus as a quasinatural experiment, we employ a difference-in-differences model to investigate its impact on CSR report readability. Notably, tax enforcement reform is correlated with significantly reduced CSR report readability, indicating that firms may strategically obscure weaker social responsibility performance through less transparent disclosure. Heterogeneity tests indicate that firms with stronger profitability and higher government subsidies face more pronounced shocks. The findings contribute to the literature on tax enforcement and CSR disclosure by demonstrating the unintended nonfinancial consequences of institutional reforms.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109442"},"PeriodicalIF":6.9,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844768","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109440
Wei Zhang , Yiling Guo , Chunxia Li , Guanying Wang
Cultural superstition embedded in the Chinese almanac generates a systematic yet transient anomaly in financial markets. We develop a sentiment-decay model that formalizes the full dynamic of this mispricing, from initial underreaction through delayed arbitrage to complete long-run reversal. Analyzing 3624 initial public offerings (IPOs) from 2001 to 2022, we document a significant short-term discount for firms listing on inauspicious days. This discount fully reverses within three years, consistent with a sentiment-driven underreaction distinct from firm fundamentals and robust to endogeneity in listing date selection. We further show that market frictions moderate the anomaly by affecting both the depth of the initial discount and the pace of correction, yet never prevent its ultimate reversal. Our findings thus characterize deep-seated cultural beliefs as a self-correcting market friction, reconciling behavioral biases with long-run market efficiency.
{"title":"Superstition-driven IPO anomaly: Chinese almanac evidence","authors":"Wei Zhang , Yiling Guo , Chunxia Li , Guanying Wang","doi":"10.1016/j.frl.2025.109440","DOIUrl":"10.1016/j.frl.2025.109440","url":null,"abstract":"<div><div>Cultural superstition embedded in the Chinese almanac generates a systematic yet transient anomaly in financial markets. We develop a sentiment-decay model that formalizes the full dynamic of this mispricing, from initial underreaction through delayed arbitrage to complete long-run reversal. Analyzing 3624 initial public offerings (IPOs) from 2001 to 2022, we document a significant short-term discount for firms listing on inauspicious days. This discount fully reverses within three years, consistent with a sentiment-driven underreaction distinct from firm fundamentals and robust to endogeneity in listing date selection. We further show that market frictions moderate the anomaly by affecting both the depth of the initial discount and the pace of correction, yet never prevent its ultimate reversal. Our findings thus characterize deep-seated cultural beliefs as a self-correcting market friction, reconciling behavioral biases with long-run market efficiency.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109440"},"PeriodicalIF":6.9,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145882889","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109443
Chenyuan Li, Yunshui Zhou, Jingyuan Xiao
{"title":"Does Tourism Development Improve Women's Employment? Evidence from Belt and Road Countries","authors":"Chenyuan Li, Yunshui Zhou, Jingyuan Xiao","doi":"10.1016/j.frl.2025.109443","DOIUrl":"https://doi.org/10.1016/j.frl.2025.109443","url":null,"abstract":"","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"22 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844764","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109436
Kwamie Dunbar
{"title":"Editorial: FinTech for Inclusivity, Growth, and the Future","authors":"Kwamie Dunbar","doi":"10.1016/j.frl.2025.109436","DOIUrl":"https://doi.org/10.1016/j.frl.2025.109436","url":null,"abstract":"","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"183 1","pages":""},"PeriodicalIF":10.4,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145844766","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 : 2025-12-27DOI: 10.1016/j.frl.2025.109444
Yucheng Guo , Yibo Cao
This paper selects Chinese A-share listed companies from 2010 to 2023 as the research sample to examine the relationships among patent infringement litigation, IPO underpricing, and long-term market performance(LMP), as well as the moderating effect of investor protection. Empirical results show that patent infringement litigation hampers the LMP of listed companies; there is a significant positive correlation between IPO underpricing and LMP; the impact of patent infringement litigation and IPO underpricing on LMP differs significantly between firms with highly independent boards and those with less independent boards. Investor protection plays an important moderating role in both the relationship between patent infringement litigation and LMP and the relationship between IPO underpricing and LMP.
{"title":"Patent infringement litigation, ipo underpricing, and long-term market performance: An analysis of the moderating effect of investor protection in Chinese listed companies","authors":"Yucheng Guo , Yibo Cao","doi":"10.1016/j.frl.2025.109444","DOIUrl":"10.1016/j.frl.2025.109444","url":null,"abstract":"<div><div>This paper selects Chinese A-share listed companies from 2010 to 2023 as the research sample to examine the relationships among patent infringement litigation, IPO underpricing, and long-term market performance(LMP), as well as the moderating effect of investor protection. Empirical results show that patent infringement litigation hampers the LMP of listed companies; there is a significant positive correlation between IPO underpricing and LMP; the impact of patent infringement litigation and IPO underpricing on LMP differs significantly between firms with highly independent boards and those with less independent boards. Investor protection plays an important moderating role in both the relationship between patent infringement litigation and LMP and the relationship between IPO underpricing and LMP.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"91 ","pages":"Article 109444"},"PeriodicalIF":6.9,"publicationDate":"2025-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145882887","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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