Pub Date : 2024-11-01DOI: 10.1016/j.iref.2024.103711
Ly Thi Hai Tran , Tuan Ho , Hoai Thu Ho , Nam Duc Phung
Previous studies show that climate vulnerability affects capital structure. This research goes beyond by extending to cross-sessional analysis emphasizing the impact of climate vulnerability on capital structure conditional on firm-level financial constraints, country-level financial development, and the Paris Agreement. Using a sample of 15,612 firms across 13 Asian countries over the period from 2010 to 2020, we find that the effect of the vulnerability is more pronounced among firms with higher financial constraints and in countries with higher levels of financial development. We also find that the impact of climate vulnerability on corporate financial leverage is stronger after the Paris Agreement. Our findings are consistent with the argument that climate vulnerability incentivizes firms to lower their reliance on debt, and the heightened climate transition risk after the Paris Agreement intensifies this effect. This study provides insights into firms' capital structure choice behaviour when faced with climate change risks.
{"title":"Climate vulnerability and capital structure: Moderating effect of financial development, financial constraints, and 2015 Paris Agreement","authors":"Ly Thi Hai Tran , Tuan Ho , Hoai Thu Ho , Nam Duc Phung","doi":"10.1016/j.iref.2024.103711","DOIUrl":"10.1016/j.iref.2024.103711","url":null,"abstract":"<div><div>Previous studies show that climate vulnerability affects capital structure. This research goes beyond by extending to cross-sessional analysis emphasizing the impact of climate vulnerability on capital structure conditional on firm-level financial constraints, country-level financial development, and the Paris Agreement. Using a sample of 15,612 firms across 13 Asian countries over the period from 2010 to 2020, we find that the effect of the vulnerability is more pronounced among firms with higher financial constraints and in countries with higher levels of financial development. We also find that the impact of climate vulnerability on corporate financial leverage is stronger after the Paris Agreement. Our findings are consistent with the argument that climate vulnerability incentivizes firms to lower their reliance on debt, and the heightened climate transition risk after the Paris Agreement intensifies this effect. This study provides insights into firms' capital structure choice behaviour when faced with climate change risks.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103711"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663081","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103721
Huixiao Guo , Ruohan Wang , Xinya Wang
The absence of formal regulation poses private lending a significant risk source for China's financial system. By analyzing over four million court dispute documents from 2011 to 2020 across 288 prefecture-level cities, we construct a private lending risk index to investigate the correlation between FinTech development and private lending risk. Our findings indicate that the development of FinTech leads to a significant increase of the private lending risk, with digitization level exerting the most significant promoting effect on lending risk. The micro-level analysis reveals that FinTech development attracts customers of higher quality through competitive effects, thereby lowering the threshold for participation in private lending groups and consequently amplifying lending risks. These findings remain robust to a series of tests, including various specifications and instrumental variable approaches. Moreover, the positive relationship between FinTech and private lending risks is more pronounced in contexts characterized by weaker financial supervision, limited supply of formal finance, and lower economic development.
{"title":"Does the development of FinTech increase the risk of private lending ? Evidence from China","authors":"Huixiao Guo , Ruohan Wang , Xinya Wang","doi":"10.1016/j.iref.2024.103721","DOIUrl":"10.1016/j.iref.2024.103721","url":null,"abstract":"<div><div>The absence of formal regulation poses private lending a significant risk source for China's financial system. By analyzing over four million court dispute documents from 2011 to 2020 across 288 prefecture-level cities, we construct a private lending risk index to investigate the correlation between FinTech development and private lending risk. Our findings indicate that the development of FinTech leads to a significant increase of the private lending risk, with digitization level exerting the most significant promoting effect on lending risk. The micro-level analysis reveals that FinTech development attracts customers of higher quality through competitive effects, thereby lowering the threshold for participation in private lending groups and consequently amplifying lending risks. These findings remain robust to a series of tests, including various specifications and instrumental variable approaches. Moreover, the positive relationship between FinTech and private lending risks is more pronounced in contexts characterized by weaker financial supervision, limited supply of formal finance, and lower economic development.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103721"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142698474","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103736
Mingye Ai, Wei Zhang, Shurong Du, Xiaohan Yu, Yan Bu
As a pivotal driver of high-quality development, the impact of digitalization on industrial green transformation remains somewhat opaque. This study utilizes panel data from 35 industrial sectors in China, covering the years 2005–2021, to construct a fixed effects model that explores the relationship between digitalization and industrial green transformation, as well as its potential mechanisms. The results show that digitalization has a significant role in promoting industrial green transformation, a conclusion validated even after robustness tests. Furthermore, heterogeneity analysis reveals that industries characterized by low energy consumption, low pollution, and large scale experience a more pronounced positive effect from digitalization on industrial green transformation. The mechanism analysis reveals that digitalization propels industrial green transformation by enhancing the capability for green technological innovation. Moreover, digitalization expedites technological transformation, thereby fostering capital renewal and bolstering end-of-pipe treatment capabilities, all of which collectively propel the industrial green transformation. This study contributes to the novel insights from the dual perspectives of green technological innovation and technological transformation, which provides policy implications for developing countries worldwide to enhance industrial green transition through digitalization.
{"title":"The impact of digitalization on the green transformation of China's industrial sectors: The mediating role of green technology innovation and technological transformation","authors":"Mingye Ai, Wei Zhang, Shurong Du, Xiaohan Yu, Yan Bu","doi":"10.1016/j.iref.2024.103736","DOIUrl":"10.1016/j.iref.2024.103736","url":null,"abstract":"<div><div>As a pivotal driver of high-quality development, the impact of digitalization on industrial green transformation remains somewhat opaque. This study utilizes panel data from 35 industrial sectors in China, covering the years 2005–2021, to construct a fixed effects model that explores the relationship between digitalization and industrial green transformation, as well as its potential mechanisms. The results show that digitalization has a significant role in promoting industrial green transformation, a conclusion validated even after robustness tests. Furthermore, heterogeneity analysis reveals that industries characterized by low energy consumption, low pollution, and large scale experience a more pronounced positive effect from digitalization on industrial green transformation. The mechanism analysis reveals that digitalization propels industrial green transformation by enhancing the capability for green technological innovation. Moreover, digitalization expedites technological transformation, thereby fostering capital renewal and bolstering end-of-pipe treatment capabilities, all of which collectively propel the industrial green transformation. This study contributes to the novel insights from the dual perspectives of green technological innovation and technological transformation, which provides policy implications for developing countries worldwide to enhance industrial green transition through digitalization.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103736"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142699111","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103710
Bin Wang , Yonghong Ma , Beier Luo , Daqian Shi , Shan Jiang
Based on the framework of government-enterprise collusion and proactive government regulation, this study examines the impact of the Environmental Protection Agency (EPA) regulatory distance on corporate environmental information disclosure (EID) using data from listed companies in China from 2009 to 2021. The results of the study show that: (1) The closer the geographical distance between the local EPA and the company, the poorer the quality, which verifies the collusion effect. Our results are robust after a series of robustness checks. (2) The collusion effect of geographical distance primarily works by enhancing the ability of companies to seek environmental protection. (3) The impact is greater when the sample company belongs to non-sub-provincial municipal, pollution industry, state-owned, large-scale, and mature enterprises. (4) The central environmental inspections and media attention can alleviate the collusion effect of environmental regulatory distance. This study provides new empirical evidence for the " distance decay effect " in geo-economics and offers new insights from the perspective of geo-economics for measuring government-enterprise collusion.
{"title":"Environmental supervision distance, government-enterprise collusion and corporate environmental information disclosure","authors":"Bin Wang , Yonghong Ma , Beier Luo , Daqian Shi , Shan Jiang","doi":"10.1016/j.iref.2024.103710","DOIUrl":"10.1016/j.iref.2024.103710","url":null,"abstract":"<div><div>Based on the framework of government-enterprise collusion and proactive government regulation, this study examines the impact of the Environmental Protection Agency (EPA) regulatory distance on corporate environmental information disclosure (EID) using data from listed companies in China from 2009 to 2021. The results of the study show that: (1) The closer the geographical distance between the local EPA and the company, the poorer the quality, which verifies the collusion effect. Our results are robust after a series of robustness checks. (2) The collusion effect of geographical distance primarily works by enhancing the ability of companies to seek environmental protection. (3) The impact is greater when the sample company belongs to non-sub-provincial municipal, pollution industry, state-owned, large-scale, and mature enterprises. (4) The central environmental inspections and media attention can alleviate the collusion effect of environmental regulatory distance. This study provides new empirical evidence for the \" distance decay effect \" in geo-economics and offers new insights from the perspective of geo-economics for measuring government-enterprise collusion.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103710"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142698413","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103727
Constant L. Yayi
We examine the moderating role of US Preferential Trade Agreements (PTAs) in the trade effects of Trade Policy Uncertainty (TPU) using disaggregated at 2-digit product-level data from 1995 to 2020. Our analysis reveals several key insights. First, US PTAs alleviate the adverse effects of trade policy uncertainty on bilateral exports to the United States. The results indicate that exporters with no trade agreements with the US endure the full effects of TPU, while their counterparts with trade agreements experience a significant reduction in adverse effects. Specifically, we note that in the absence of any trade agreements between the US and its trading partners, the elasticity of exports to the US with respect to TPU is between−0.03 and −0.05. Second, we observe substantial heterogenous uncertainty-reducing effects of US PTAs across income groups. The moderating role of US trade agreements appears to be most effective in low-income and lower-middle-income countries, while it is non-existent for upper-middle- and high-income countries. Finally, we uncover that the content of provisions embedded in the PTAs significantly matters to the extent of the expected moderating role of PTAs. These insights contribute to the broader understanding of trade policy's role in shaping international trade patterns and offer practical implications for policymakers and trade negotiators.
{"title":"Trade under trade policy uncertainty: The moderating roles of US preferential trade agreements and their heterogenous effects","authors":"Constant L. Yayi","doi":"10.1016/j.iref.2024.103727","DOIUrl":"10.1016/j.iref.2024.103727","url":null,"abstract":"<div><div>We examine the moderating role of US Preferential Trade Agreements (PTAs) in the trade effects of Trade Policy Uncertainty (TPU) using disaggregated at 2-digit product-level data from 1995 to 2020. Our analysis reveals several key insights. First, US PTAs alleviate the adverse effects of trade policy uncertainty on bilateral exports to the United States. The results indicate that exporters with no trade agreements with the US endure the full effects of TPU, while their counterparts with trade agreements experience a significant reduction in adverse effects. Specifically, we note that in the absence of any trade agreements between the US and its trading partners, the elasticity of exports to the US with respect to TPU is between−0.03 and −0.05. Second, we observe substantial heterogenous uncertainty-reducing effects of US PTAs across income groups. The moderating role of US trade agreements appears to be most effective in low-income and lower-middle-income countries, while it is non-existent for upper-middle- and high-income countries. Finally, we uncover that the content of provisions embedded in the PTAs significantly matters to the extent of the expected moderating role of PTAs. These insights contribute to the broader understanding of trade policy's role in shaping international trade patterns and offer practical implications for policymakers and trade negotiators.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103727"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142698479","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}
By acknowledging the crucial role of the CSR committee in shaping ethical practices within organizations, this research aims to uncover potential connections between corporate ethical supervisory and the prevalence of manipulative actions by corporate executives. Using a sample of Us-listed companies, the findings support the notion that robust CSR frameworks such as the presence of a CSR committee reduce the motivations of manipulative tendencies by executives (measured by restatements). Contrary to conventional beliefs, our findings suggest that the size of the CSR committee does not influence the manipulative tendencies, whereas, the strength of female directors and a higher number of independent directors on the CSR committee has a positive and substantial influence on ethical decision-making, reducing the inclination towards manipulative intentions. Supporting the stakeholder theory notion, we suggest firms with CSR committees display a genuine commitment to stakeholder interests, exhibiting better performance in both social and financial activities. Our study contributes to the ongoing discourse on corporate governance, ethical decision-making, and the broader implications for organizational behavior and outcomes.
{"title":"Ethical guardians: The multifaceted impact of CSR committee on executives manipulation tendencies","authors":"Asif Saeed , Samreen Hamid , Phassawan Suntraruk , Narjess Toumi","doi":"10.1016/j.iref.2024.103718","DOIUrl":"10.1016/j.iref.2024.103718","url":null,"abstract":"<div><div>By acknowledging the crucial role of the CSR committee in shaping ethical practices within organizations, this research aims to uncover potential connections between corporate ethical supervisory and the prevalence of manipulative actions by corporate executives. Using a sample of Us-listed companies, the findings support the notion that robust CSR frameworks such as the presence of a CSR committee reduce the motivations of manipulative tendencies by executives (measured by restatements). Contrary to conventional beliefs, our findings suggest that the size of the CSR committee does not influence the manipulative tendencies, whereas, the strength of female directors and a higher number of independent directors on the CSR committee has a positive and substantial influence on ethical decision-making, reducing the inclination towards manipulative intentions. Supporting the stakeholder theory notion, we suggest firms with CSR committees display a genuine commitment to stakeholder interests, exhibiting better performance in both social and financial activities. Our study contributes to the ongoing discourse on corporate governance, ethical decision-making, and the broader implications for organizational behavior and outcomes.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103718"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663031","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103719
Chenwei Sun , Justin Jin , Khalid Nainar , Gerald Lobo
This study examines the impact of firms’ corporate social responsibility (CSR) on state crime rates in the U.S. from 2004 to 2020. Our research bolsters the expanding work under the Law and Political Economy Project out of Yale University and Economics of Crime Working Group of National Bureau of Economic Research (NBER). Our empirical results show that states with domiciled firms having better CSR performance exhibit significantly lower crime rates. This lower crime incidence is driven by the environmental, social, and governance dimensions of CSR. Our study is the first to document the societal impact of CSR by analyzing state crime rates, and we conclude that CSR activities have positive externalities on society.
{"title":"Does firms’ corporate social responsibility reduce crime?","authors":"Chenwei Sun , Justin Jin , Khalid Nainar , Gerald Lobo","doi":"10.1016/j.iref.2024.103719","DOIUrl":"10.1016/j.iref.2024.103719","url":null,"abstract":"<div><div>This study examines the impact of firms’ corporate social responsibility (CSR) on state crime rates in the U.S. from 2004 to 2020. Our research bolsters the expanding work under the Law and Political Economy Project out of Yale University and Economics of Crime Working Group of National Bureau of Economic Research (NBER). Our empirical results show that states with domiciled firms having better CSR performance exhibit significantly lower crime rates. This lower crime incidence is driven by the environmental, social, and governance dimensions of CSR. Our study is the first to document the societal impact of CSR by analyzing state crime rates, and we conclude that CSR activities have positive externalities on society.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103719"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142663085","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103686
Yuxuan Li , Yingxue Zheng , Xuesong Li , Zi Mu
This paper constructs an analytical framework of digital transformation affecting enterprise ESG performance based on the investment perspective. And empirical analyses are conducted using firm-level panel data of Chinese A-share listed companies from 2009 to 2020 in the China's Stock Markets. It is found that digital transformation significantly improves enterprise ESG performance. Digital transformation improves enterprise ESG performance by enhancing risk-taking capacity, mitigating agency conflicts, and suppressing management overconfidence. Heterogeneity analyses show that the effects of digital transformation on capital investment efficiency and firms' ESG performance are more pronounced among firms in mature and declining stages. Digital transformation has a significant impact on capital investment efficiency and corporate ESG performance in both technology-intensive and capital-intensive firms. These findings are crucial for understanding the key role of digital transformation in shaping long-term economic growth potential and sustainability from an investment perspective.
本文基于投资视角，构建了数字化转型影响企业ESG绩效的分析框架。并利用 2009 年至 2020 年中国 A 股上市公司的公司层面面板数据进行了实证分析。研究发现，数字化转型能显著提高企业的环境、社会和治理绩效。数字化转型通过提高风险承担能力、缓解代理冲突和抑制管理层过度自信来改善企业ESG绩效。异质性分析表明，数字化转型对资本投资效率和企业环境、社会和治理绩效的影响在处于成熟期和衰退期的企业中更为明显。数字化转型对技术密集型企业和资本密集型企业的资本投资效率和企业环境、社会和公司治理绩效都有重大影响。这些发现对于从投资角度理解数字化转型在塑造长期经济增长潜力和可持续性方面的关键作用至关重要。
{"title":"The impact of digital transformation on ESG performance","authors":"Yuxuan Li , Yingxue Zheng , Xuesong Li , Zi Mu","doi":"10.1016/j.iref.2024.103686","DOIUrl":"10.1016/j.iref.2024.103686","url":null,"abstract":"<div><div>This paper constructs an analytical framework of digital transformation affecting enterprise ESG performance based on the investment perspective. And empirical analyses are conducted using firm-level panel data of Chinese A-share listed companies from 2009 to 2020 in the China's Stock Markets. It is found that digital transformation significantly improves enterprise ESG performance. Digital transformation improves enterprise ESG performance by enhancing risk-taking capacity, mitigating agency conflicts, and suppressing management overconfidence. Heterogeneity analyses show that the effects of digital transformation on capital investment efficiency and firms' ESG performance are more pronounced among firms in mature and declining stages. Digital transformation has a significant impact on capital investment efficiency and corporate ESG performance in both technology-intensive and capital-intensive firms. These findings are crucial for understanding the key role of digital transformation in shaping long-term economic growth potential and sustainability from an investment perspective.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103686"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142553399","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103713
Cong Zhang , Jianhua Yang
The rapid advancement of artificial intelligence (AI) and increasing emphasis on corporate sustainability have sparked interest in their potential relationship. This study examines the influence of AI adoption on Environmental, Social, and Governance (ESG) performance in Chinese firms, investigating both direct effects and the mediating role of absorptive capability. Our two-way fixed effects models reveal that AI adoption significantly enhances environmental and social performance, while showing limited impact on governance aspects. The analysis demonstrates that absorptive capability partially mediates this relationship, suggesting AI enhances ESG performance both directly and indirectly by improving firms' ability to assimilate and apply sustainability knowledge. Heterogeneity analyses indicate that AI's sustainability benefits vary across organizational life cycles, with mature firms showing strongest effects, and across industry types, with non-polluting sectors demonstrating greater improvements. These findings remain robust to various endogeneity tests, including propensity score matching and Heckman correction procedures. Our study contributes to the growing literature on technology and sustainability by providing empirical evidence of AI's differential effects across ESG dimensions and identifying important boundary conditions for its effectiveness in enhancing corporate sustainability in emerging economies.
{"title":"Artificial intelligence and corporate ESG performance","authors":"Cong Zhang , Jianhua Yang","doi":"10.1016/j.iref.2024.103713","DOIUrl":"10.1016/j.iref.2024.103713","url":null,"abstract":"<div><div>The rapid advancement of artificial intelligence (AI) and increasing emphasis on corporate sustainability have sparked interest in their potential relationship. This study examines the influence of AI adoption on Environmental, Social, and Governance (ESG) performance in Chinese firms, investigating both direct effects and the mediating role of absorptive capability. Our two-way fixed effects models reveal that AI adoption significantly enhances environmental and social performance, while showing limited impact on governance aspects. The analysis demonstrates that absorptive capability partially mediates this relationship, suggesting AI enhances ESG performance both directly and indirectly by improving firms' ability to assimilate and apply sustainability knowledge. Heterogeneity analyses indicate that AI's sustainability benefits vary across organizational life cycles, with mature firms showing strongest effects, and across industry types, with non-polluting sectors demonstrating greater improvements. These findings remain robust to various endogeneity tests, including propensity score matching and Heckman correction procedures. Our study contributes to the growing literature on technology and sustainability by providing empirical evidence of AI's differential effects across ESG dimensions and identifying important boundary conditions for its effectiveness in enhancing corporate sustainability in emerging economies.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103713"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142698481","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 : 2024-11-01DOI: 10.1016/j.iref.2024.103717
Jinzhi Liu, Songhua Zhu
This study examines the impact of China's New Energy Pilot City Policy (REPCP) on green development in the manufacturing sector, focusing on the role of technological innovation. Using a Difference-in-Differences (DID) approach with firm-level data from 30 Chinese provinces and cities (2000–2021), the research analyzes how the policy affects firms' adoption of sustainable manufacturing practices. The findings reveal that the REPCP significantly promotes green development, particularly in regions with moderate levels of industrial development. Moreover, technological innovation amplifies the policy's positive impact, indicating a synergistic relationship. The analysis also finds that state-owned enterprises are more responsive to the policy than non-SOEs. This study contributes to the understanding of energy transition policies by providing empirical evidence of their efficacy in China's manufacturing sector, highlighting the importance of technological innovation, regional variations, and ownership structures in achieving sustainable manufacturing.
{"title":"Energy transition policy, technology innovation and sustainable manufacturing","authors":"Jinzhi Liu, Songhua Zhu","doi":"10.1016/j.iref.2024.103717","DOIUrl":"10.1016/j.iref.2024.103717","url":null,"abstract":"<div><div>This study examines the impact of China's New Energy Pilot City Policy (REPCP) on green development in the manufacturing sector, focusing on the role of technological innovation. Using a Difference-in-Differences (DID) approach with firm-level data from 30 Chinese provinces and cities (2000–2021), the research analyzes how the policy affects firms' adoption of sustainable manufacturing practices. The findings reveal that the REPCP significantly promotes green development, particularly in regions with moderate levels of industrial development. Moreover, technological innovation amplifies the policy's positive impact, indicating a synergistic relationship. The analysis also finds that state-owned enterprises are more responsive to the policy than non-SOEs. This study contributes to the understanding of energy transition policies by providing empirical evidence of their efficacy in China's manufacturing sector, highlighting the importance of technological innovation, regional variations, and ownership structures in achieving sustainable manufacturing.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103717"},"PeriodicalIF":4.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142698480","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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