Pub Date : 2024-08-25DOI: 10.1016/j.frl.2024.106007
Taking China's Shenzhen and Shanghai A-share non-financial listed companies as a research sample from 2018 to 2022, this study explores the relationship between executive team's digital background and corporate innovation. The empirical study shows that executive team's digital background can significantly promote corporate innovation. Financial flexibility plays a mediating role in the relationship between executive team's digital background and corporate innovation. In non-state-owned firms with longer executive tenure, executive team's digital background has a more significant effect on corporate innovation. This study provides theoretical support and practical guidance for strengthening corporate innovation.
{"title":"Executive team's digital background, financial flexibility and corporate innovation: Evidence from China","authors":"","doi":"10.1016/j.frl.2024.106007","DOIUrl":"10.1016/j.frl.2024.106007","url":null,"abstract":"<div><p>Taking China's Shenzhen and Shanghai A-share non-financial listed companies as a research sample from 2018 to 2022, this study explores the relationship between executive team's digital background and corporate innovation. The empirical study shows that executive team's digital background can significantly promote corporate innovation. Financial flexibility plays a mediating role in the relationship between executive team's digital background and corporate innovation. In non-state-owned firms with longer executive tenure, executive team's digital background has a more significant effect on corporate innovation. This study provides theoretical support and practical guidance for strengthening corporate innovation.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142097099","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 : 2024-08-25DOI: 10.1016/j.frl.2024.106008
This study investigates the impact of innovation-driven development on corporate green innovation. Leveraging China's national innovation-driven pilot policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach to demonstrate that this policy significantly boosts corporate green innovation. Our findings reveal three key mechanisms through which innovation-driven development fosters green innovation: stimulating R&D investment, enhancing green innovation efficiency, and promoting corporate social responsibility. Heterogeneity analysis indicates that the policy's effects are more pronounced for firms with higher analyst attention, stricter financing constraints, and more stringent environmental regulations.
{"title":"Innovation-driven development and corporate green innovation","authors":"","doi":"10.1016/j.frl.2024.106008","DOIUrl":"10.1016/j.frl.2024.106008","url":null,"abstract":"<div><p>This study investigates the impact of innovation-driven development on corporate green innovation. Leveraging China's national innovation-driven pilot policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach to demonstrate that this policy significantly boosts corporate green innovation. Our findings reveal three key mechanisms through which innovation-driven development fosters green innovation: stimulating R&D investment, enhancing green innovation efficiency, and promoting corporate social responsibility. Heterogeneity analysis indicates that the policy's effects are more pronounced for firms with higher analyst attention, stricter financing constraints, and more stringent environmental regulations.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142089376","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 : 2024-08-23DOI: 10.1016/j.frl.2024.106001
We are among the first to examine the influence of carbon assurance on trade credit. Drawing on a sample of publicly listed U.S. firms, we document that firms with high carbon assurance obtain more trade credit from their suppliers. Our channel analysis tests show that high carbon assurance translates into higher trade credit by reducing risk and information asymmetry. Our results are robust with alternative model specifications, trade credit and carbon assurance measures, 2SLS IV analysis, PSM estimates, and Heckman-two stage approach to address possible endogeneity.
我们是最早研究碳保证对贸易信贷影响的研究者之一。通过对美国上市公司的抽样调查,我们发现高碳排放保证的公司从其供应商那里获得了更多的贸易信贷。我们的渠道分析测试表明,高碳排放保证通过降低风险和信息不对称转化为更高的贸易信贷。我们采用了其他模型规格、贸易信贷和碳保证度量、2SLS IV 分析、PSM 估计以及 Heckman 两阶段方法来解决可能存在的内生性问题,结果是稳健的。
{"title":"Does firm-level carbon assurance matter for trade credit?","authors":"","doi":"10.1016/j.frl.2024.106001","DOIUrl":"10.1016/j.frl.2024.106001","url":null,"abstract":"<div><p>We are among the first to examine the influence of carbon assurance on trade credit. Drawing on a sample of publicly listed U.S. firms, we document that firms with high carbon assurance obtain more trade credit from their suppliers. Our channel analysis tests show that high carbon assurance translates into higher trade credit by reducing risk and information asymmetry. Our results are robust with alternative model specifications, trade credit and carbon assurance measures, 2SLS IV analysis, PSM estimates, and Heckman-two stage approach to address possible endogeneity.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1544612324010316/pdfft?md5=6bcbc36823250e59a4967b203abdacb2&pid=1-s2.0-S1544612324010316-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142057955","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 : 2024-08-23DOI: 10.1016/j.frl.2024.105989
Under the background of local governments no longer guaranteeing minimum traffic volumes after 2020 in China, how to price the highway concessions securities has become an urgent problem that needs to be solved. This paper develops a novel pricing model for highway concession securities in Chongqing, China, post-2020, using ARIMA-EGARCH, Nelson-Siegel, and DCF models on 754,416 toll records. The main results are as follows: China's new budget law can influence the financing effect of highway securitization. The ratio of priority bonds would be overestimated, and the default probability would increase under the normal distribution hypothesis. In addition, the financing capacity of pool issuance securitization is better than the respective issuance. Our findings indicate that pooled issuance securitization enhances financing capacity more effectively than individual issuances. Legislative adjustments significantly influence the effectiveness of highway securitization, highlighting the need for a data-driven approach to account for traffic volume risks.
{"title":"Rethinking highway finance: A data-driven pricing model for concession securities in chongqing, China","authors":"","doi":"10.1016/j.frl.2024.105989","DOIUrl":"10.1016/j.frl.2024.105989","url":null,"abstract":"<div><p>Under the background of local governments no longer guaranteeing minimum traffic volumes after 2020 in China, how to price the highway concessions securities has become an urgent problem that needs to be solved. This paper develops a novel pricing model for highway concession securities in Chongqing, China, post-2020, using ARIMA-EGARCH, Nelson-Siegel, and DCF models on 754,416 toll records. The main results are as follows: China's new budget law can influence the financing effect of highway securitization. The ratio of priority bonds would be overestimated, and the default probability would increase under the normal distribution hypothesis. In addition, the financing capacity of pool issuance securitization is better than the respective issuance. Our findings indicate that pooled issuance securitization enhances financing capacity more effectively than individual issuances. Legislative adjustments significantly influence the effectiveness of highway securitization, highlighting the need for a data-driven approach to account for traffic volume risks.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142097097","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 : 2024-08-23DOI: 10.1016/j.frl.2024.105999
In response to the Global Financial Crisis of 2007–2009, by now, most of the financial transactions must be cleared through central counterparties operating a dynamic margin setting mechanism. High margin calls can reduce counterparty risk in a turbulent market, but at the same time, increase liquidity risk and escalate systemic risk. In this paper, we construct a theoretical model to address this challenge, deriving an optimal margin setting policy framed as a stochastic control problem. Our analysis reveals that an adaptive, countercyclical approach is superior to a purely risk-sensitive strategy, primarily by minimizing the expected loss for the clearing institution.
{"title":"Dynamic margin optimization","authors":"","doi":"10.1016/j.frl.2024.105999","DOIUrl":"10.1016/j.frl.2024.105999","url":null,"abstract":"<div><p>In response to the Global Financial Crisis of 2007–2009, by now, most of the financial transactions must be cleared through central counterparties operating a dynamic margin setting mechanism. High margin calls can reduce counterparty risk in a turbulent market, but at the same time, increase liquidity risk and escalate systemic risk. In this paper, we construct a theoretical model to address this challenge, deriving an optimal margin setting policy framed as a stochastic control problem. Our analysis reveals that an adaptive, countercyclical approach is superior to a purely risk-sensitive strategy, primarily by minimizing the expected loss for the clearing institution.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1544612324010298/pdfft?md5=2a71b7e56e0cd7b2571cb9df112db8fd&pid=1-s2.0-S1544612324010298-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142089377","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 : 2024-08-22DOI: 10.1016/j.frl.2024.105998
This study delves into the intricate relationship between female representation on corporate boards and firm valuation. By scrutinizing a comprehensive dataset comprising 15,813 unique firms spanning across 116 countries, our analysis elucidates the global ramifications of female board membership on firm value, employing Tobin's Q as a proxy measure. The findings of this research present compelling evidence supporting the notion that increased female representation on boards positively influences firm value. Moreover, this paper underscores the tangible benefits associated with the inclusion of female directors in boardrooms.
{"title":"Female board representation and firm value: International evidence","authors":"","doi":"10.1016/j.frl.2024.105998","DOIUrl":"10.1016/j.frl.2024.105998","url":null,"abstract":"<div><p>This study delves into the intricate relationship between female representation on corporate boards and firm valuation. By scrutinizing a comprehensive dataset comprising 15,813 unique firms spanning across 116 countries, our analysis elucidates the global ramifications of female board membership on firm value, employing Tobin's Q as a proxy measure. The findings of this research present compelling evidence supporting the notion that increased female representation on boards positively influences firm value. Moreover, this paper underscores the tangible benefits associated with the inclusion of female directors in boardrooms.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1544612324010286/pdfft?md5=23ee404f4e3de9b46a60affe2e14a30a&pid=1-s2.0-S1544612324010286-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142057954","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 : 2024-08-22DOI: 10.1016/j.frl.2024.105992
This study employs panel data from 30 provinces in China (excluding Tibet, Hong Kong, Macao, and Taiwan) spanning the years 2014 to 2020 to empirically analyze the financial support mechanisms for innovation in both technology start-ups and leading technology enterprises. The findings reveal significant heterogeneity in these mechanisms. Venture capital plays a prominent role in fostering innovation within technology start-ups, particularly in the incubation stage. Conversely, government support for these start-ups is relatively limited, primarily offered through initiatives such as technology enterprise incubators. In contrast, national fiscal policies exert a notably positive impact on the innovation activities of leading technology enterprises.
{"title":"Research on heterogeneous financial support mechanisms for innovation in different types of technology enterprises","authors":"","doi":"10.1016/j.frl.2024.105992","DOIUrl":"10.1016/j.frl.2024.105992","url":null,"abstract":"<div><p>This study employs panel data from 30 provinces in China (excluding Tibet, Hong Kong, Macao, and Taiwan) spanning the years 2014 to 2020 to empirically analyze the financial support mechanisms for innovation in both technology start-ups and leading technology enterprises. The findings reveal significant heterogeneity in these mechanisms. Venture capital plays a prominent role in fostering innovation within technology start-ups, particularly in the incubation stage. Conversely, government support for these start-ups is relatively limited, primarily offered through initiatives such as technology enterprise incubators. In contrast, national fiscal policies exert a notably positive impact on the innovation activities of leading technology enterprises.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142084103","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 : 2024-08-22DOI: 10.1016/j.frl.2024.105977
This study explores the profound connection between financial literacy and the utilization of digital products. The research uncovers a substantial rise in digital product usage as one's financial knowledge improves. Moreover, household income and social interaction serve as significant mediators in this relationship. Additional investigations revealed that gender, geographical location, and urban/rural status moderate the connection between financial literacy and digital product consumption. More precisely, males, individuals residing in the eastern region, and urban dwellers tend to enhance their digital product usage more significantly upon enhancing their financial literacy, as opposed to females, central/western region residents, and rural inhabitants.
{"title":"Financial literacy and digital product consumption - An analysis based on CFPS data","authors":"","doi":"10.1016/j.frl.2024.105977","DOIUrl":"10.1016/j.frl.2024.105977","url":null,"abstract":"<div><p>This study explores the profound connection between financial literacy and the utilization of digital products. The research uncovers a substantial rise in digital product usage as one's financial knowledge improves. Moreover, household income and social interaction serve as significant mediators in this relationship. Additional investigations revealed that gender, geographical location, and urban/rural status moderate the connection between financial literacy and digital product consumption. More precisely, males, individuals residing in the eastern region, and urban dwellers tend to enhance their digital product usage more significantly upon enhancing their financial literacy, as opposed to females, central/western region residents, and rural inhabitants.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142084106","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 : 2024-08-22DOI: 10.1016/j.frl.2024.105995
Parisian options, serving as substitutes for barrier options, are frequently embedded in complex financial derivatives. Despite the considerable mathematical challenges in pricing, their significant applications in finance and insurance have generated extensive studies in the literature. However, the impact of counterparty risk has not been taken into account so far. To address this gap, we develop a closed-form pricing framework for vulnerable Parisian options. Utilizing the Laplace transform and measure-change technique, we derive closed-form pricing formulas of Parisian options incorporating counterparty credit risk. Finally, we conduct numerical analyses to verify our pricing formulas’ accuracy and efficiency.
{"title":"On the pricing of vulnerable Parisian options","authors":"","doi":"10.1016/j.frl.2024.105995","DOIUrl":"10.1016/j.frl.2024.105995","url":null,"abstract":"<div><p>Parisian options, serving as substitutes for barrier options, are frequently embedded in complex financial derivatives. Despite the considerable mathematical challenges in pricing, their significant applications in finance and insurance have generated extensive studies in the literature. However, the impact of counterparty risk has not been taken into account so far. To address this gap, we develop a closed-form pricing framework for vulnerable Parisian options. Utilizing the Laplace transform and measure-change technique, we derive closed-form pricing formulas of Parisian options incorporating counterparty credit risk. Finally, we conduct numerical analyses to verify our pricing formulas’ accuracy and efficiency.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142048563","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 : 2024-08-22DOI: 10.1016/j.frl.2024.105997
Understanding energy consumption associated with cryptocurrency mining gained increasing attention, with the literature focusing mainly on Bitcoin. This study uses data from the two energy consumption indices, to estimate static and dynamic transfer entropies. The results provide a nuanced understanding of the bidirectional relationships and their implications. The dominant direction of information flow for Bitcoin is from electricity consumption to returns, while for Ethereum, it is from returns to electricity consumption, suggesting that Ethereum's returns significantly impact electricity consumption patterns. Results highlight the need for policies that integrate energy forecasting and environmental sustainability considerations and has significant implications for policymaking.
{"title":"Information flow dynamics between cryptocurrency returns and electricity consumption: A comparative analysis of Bitcoin and Ethereum","authors":"","doi":"10.1016/j.frl.2024.105997","DOIUrl":"10.1016/j.frl.2024.105997","url":null,"abstract":"<div><p>Understanding energy consumption associated with cryptocurrency mining gained increasing attention, with the literature focusing mainly on Bitcoin. This study uses data from the two energy consumption indices, to estimate static and dynamic transfer entropies. The results provide a nuanced understanding of the bidirectional relationships and their implications. The dominant direction of information flow for Bitcoin is from electricity consumption to returns, while for Ethereum, it is from returns to electricity consumption, suggesting that Ethereum's returns significantly impact electricity consumption patterns. Results highlight the need for policies that integrate energy forecasting and environmental sustainability considerations and has significant implications for policymaking.</p></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":null,"pages":null},"PeriodicalIF":7.4,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1544612324010274/pdfft?md5=2b5fa0c58e6ee0f54287ddd5ad8f9c05&pid=1-s2.0-S1544612324010274-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142048562","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}