Finance Research Letters最新文献

This study uses listed companies from China's Shanghai and Shenzhen stock markets to examine how the level of higher education attained by corporate executives affects the company's human capital investment, based on Upper Echelons Theory. The findings suggest a positive correlation: higher education levels among executives lead to increased investment in human capital. Further analysis reveals that this effect is most pronounced in large-scale and non-state-owned enterprises, suggesting that the benefits of higher education on human capital investment are facilitated by the company's scale and institutional flexibility.

To clarify the effect of green supply chain collaboration (GSCC) on the HSE performance of manufacturing SMEs, through theoretical and literature analysis, a conceptual model of the effect of GSCC on the HSE performance of manufacturing SMEs is constructed, and the model and hypotheses are empirically tested using structural equation modeling. The research results show that GSCC positively affects the HSE performance of manufacturing SMEs; the HSE implementation motivation plays a mediating role between GSCC and HSE resources; the HSE resources play a mediating role between GSCC and HSE performance of manufacturing SMEs.

This paper investigates the impact of CSR conformity on stock liquidity from a legitimacy perspective. Based on the sample of Chinese listed firms from 2009 to 2021, the results reveal that CSR conformity mitigates legitimacy pressures, thereby significantly improving stock liquidity. Notably, this effect is primarily driven by the increased involvement in stakeholder-related CSR activities rather than third-party CSR activities. In addition, this liquidity-boosting effect is more pronounced in firms with more analyst attention and with higher institutional investor shareholding.

Using China's Cultural Revolution as a shock to risk attitude, this study examines how CEOs’ early-life experiences impact stock price crash risk. We find that CEOs who experienced the Cultural Revolution in their early life are more risk-averse and less inclined to withhold negative news, resulting in a reduced level of stock price crash risk. Further, the more severe the CEO's exposure to the Cultural Revolution, the more pronounced the Cultural Revolution effect. Additional analysis suggests that CEOs’ Cultural Revolution effect is more salient in firms with weak regional law enforcement. Our study highlights the enduring impact of influential socio-political events during early life on the decision-making processes of CEOs.

This study examines the impact of the business environment on economic development quality in 66 Belt and Road Initiative countries from 2015 to 2020. It finds that the business environment significantly boosts economic development quality, with the total labor force serving as a mediating variable. Further analysis shows that the impact is more pronounced in countries with higher economic development levels, providing insights and a framework for countries aiming to enhance their economic development quality.

This paper employs the green technology classification published by the Japan Patent Office to estimate the values of green and non-green innovations. By computing patent values based on stock price reactions to the announcement of patent issuance, this paper finds that, on average, green patents have higher values than non-green patents in the pooled sample. However, results from the matched sample indicate the presence of selection biases.

This study examines the impact of geopolitical risk on corporate bankruptcy. We utilize a global dataset of 36,802 firms from 42 countries covering 2004-2022. Our baseline result indicates that geopolitical risk increases firm bankruptcy risk. Our results remain robust after controlling for endogeneity using 2SLS, propensity score, and entropy balancing techniques, as well as using alternative proxies. Our analysis shows that high cash flow and strong creditor rights help mitigate bankruptcy risk, while high leverage and aggressive earnings management stimulates it. Our findings provide insights for policymakers and industry practitioners to formulate effective strategies to mitigate bankruptcy risk in globalization.

We propose augmented momentum and reversal trading strategies that incorporate considerations of market entry timing. Market entry timing is determined by two criteria: (1) low uncertainty of the model used to forecast trading return, and (2) a positive forecasted return. Utilizing daily data from the Chinese stock market, we demonstrate that while canonical momentum and reversal trading strategies typically yield negative returns and skewness, our augmented strategies consistently exhibit positive returns and skewness. Additionally, we show that implementation of the two criteria does not significantly diminish trading opportunities, with identified market entry days evenly distributed throughout the sample period.

Banking institutions are crucial in providing capital to firms, making credit resources a vital requirement for enterprises' operations. How to ensure credit capital resources is imperative to consistently and proficiently facilitate firms' green innovation. Based on a sample of A-share listed companies from 2013 to 2022, this study reveals a significant enhancement of joint credit systems in corporate green innovation. The finding indicates that a joint credit system, represented by the Administration of Joint Credit, can stimulate corporate green innovation activities. This impact operates mainly through alleviating corporate financing constraints, improving management levels, and promoting real estate investment.

We examine the relation between liquidity hoarding and bank profitability in the context of economic policy uncertainty (EPU). Using data on bank liquidity hoarding from Berger et al. (2022), we find that liquidity hoarding is negatively associated with profitability when EPU is low, but positively associated with profitability when EPU is high. Our results hold both in normal and crisis periods, and for banks of different sizes.