Pub Date : 2025-01-21DOI: 10.1016/j.iref.2025.103906
Zhongsheng Zhou , Jingyao Zhang , Chao He
Exploring how Chinese manufacturing companies integrate digital technology to transform, upgrade, and enhance strategic risk management is essential in the digital economy age. Our study reveals that the performance expectation gap (both the historical performance expectation gap and the industry performance expectation gap) serves as a critical pathway through which digital transformation negatively influences strategic risk-taking. Furthermore, the study highlights that managers’ digital cognition can moderate the inverse relationship between digital transformation and strategic risk-taking. This moderating effect is particularly significant in companies with a concentrated R&D organizational structure, high levels of resilience, and more educated and higher R&D human resources. This study advances the research on strategic risk-taking and offers guidance for decision-making related to enterprise digital transformation and strategic risk management, thereby providing theoretical and practical value.
{"title":"Manufacturing enterprise digital transformation, manager cognition, and strategic Risk-Taking—Evidence from China","authors":"Zhongsheng Zhou , Jingyao Zhang , Chao He","doi":"10.1016/j.iref.2025.103906","DOIUrl":"10.1016/j.iref.2025.103906","url":null,"abstract":"<div><div>Exploring how Chinese manufacturing companies integrate digital technology to transform, upgrade, and enhance strategic risk management is essential in the digital economy age. Our study reveals that the performance expectation gap (both the historical performance expectation gap and the industry performance expectation gap) serves as a critical pathway through which digital transformation negatively influences strategic risk-taking. Furthermore, the study highlights that managers’ digital cognition can moderate the inverse relationship between digital transformation and strategic risk-taking. This moderating effect is particularly significant in companies with a concentrated R&D organizational structure, high levels of resilience, and more educated and higher R&D human resources. This study advances the research on strategic risk-taking and offers guidance for decision-making related to enterprise digital transformation and strategic risk management, thereby providing theoretical and practical value.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103906"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151881","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 : 2025-01-21DOI: 10.1016/j.iref.2025.103912
Jinhua Zhang , Shuangyu Chen , John W. Goodell , Anna Min Du
The integration of digital technologies in credit and insurance services has important implications for the economic well-being of rural households. This paper utilizes cross-sectional data from a 2022 survey conducted with 476 rural households in China to explore the influence of digitally coordinated credit and insurance (DCCI) on economic well-being. Results indicate that DCCI significantly enhances both net incomes and farm incomes of rural households. Particularly, younger households, those engaged with digital technologies, and those facing high natural risks see greater benefits. Additionally, we find that reducing credit rationing and enhancing risk resilience are key mechanisms through which DCCI improves economic outcomes. The robustness of these results is confirmed through various analytical methods and measures. This study highlights the important role of digital transformation in the credit and insurance sectors for fostering economic growth in the rural sectors of emerging markets.
{"title":"Digital credit and insurance: Improving economic well-being for rural households","authors":"Jinhua Zhang , Shuangyu Chen , John W. Goodell , Anna Min Du","doi":"10.1016/j.iref.2025.103912","DOIUrl":"10.1016/j.iref.2025.103912","url":null,"abstract":"<div><div>The integration of digital technologies in credit and insurance services has important implications for the economic well-being of rural households. This paper utilizes cross-sectional data from a 2022 survey conducted with 476 rural households in China to explore the influence of digitally coordinated credit and insurance (DCCI) on economic well-being. Results indicate that DCCI significantly enhances both net incomes and farm incomes of rural households. Particularly, younger households, those engaged with digital technologies, and those facing high natural risks see greater benefits. Additionally, we find that reducing credit rationing and enhancing risk resilience are key mechanisms through which DCCI improves economic outcomes. The robustness of these results is confirmed through various analytical methods and measures. This study highlights the important role of digital transformation in the credit and insurance sectors for fostering economic growth in the rural sectors of emerging markets.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103912"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151296","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 : 2025-01-21DOI: 10.1016/j.iref.2025.103911
Runhua Xue , Jiebin Chen
This paper addresses the gap in existing literature regarding the factors that stabilize New Quality Productivity Forces (NQPF) within firms, particularly in the context of innovation-driven development and technological progress. While prior research has explored individual elements such as Environmental, Social, and Governance (ESG) performance, patent quality, and digital transformation, remains limited understanding of how these factors interact to influence SNQPF, particularly in the context of China's modernization drive. To fill this gap, we develop and empirically test a framework that examines the combined effects of ESG practices, patent quality, and digital transformation on SNQPF using a dataset spanning 2008 to 2022, comprising 3751 firm-year observations. The findings reveal that ESG performance significantly drives SNQPF improvement, aligning with China's focus on high-quality development that integrates economic growth with environmental and social responsibility. Additionally, we find that patent quality and digital transformation positively moderate the relationship between ESGP and SNQPF, highlighting the importance of technological innovation and intellectual property in fostering sustainable economic growth. This study provides new insights into optimizing ESG management strategies and contributes to the broader understanding of how innovation and sustainability practices interact to enhance SNQPF, supporting China's long-term modernization goals.
{"title":"ESG performance and stability of New Quality Productivity Forces: From perspective of China's modernization construction","authors":"Runhua Xue , Jiebin Chen","doi":"10.1016/j.iref.2025.103911","DOIUrl":"10.1016/j.iref.2025.103911","url":null,"abstract":"<div><div>This paper addresses the gap in existing literature regarding the factors that stabilize New Quality Productivity Forces (<em>NQPF</em>) within firms, particularly in the context of innovation-driven development and technological progress. While prior research has explored individual elements such as Environmental, Social, and Governance (<em>ESG</em>) performance, patent quality, and digital transformation, remains limited understanding of how these factors interact to influence S<em>NQPF</em>, particularly in the context of China's modernization drive. To fill this gap, we develop and empirically test a framework that examines the combined effects of ESG practices, patent quality, and digital transformation on <em>SNQPF</em> using a dataset spanning 2008 to 2022, comprising 3751 firm-year observations. The findings reveal that <em>ESG</em> performance significantly drives <em>SNQPF</em> improvement, aligning with China's focus on high-quality development that integrates economic growth with environmental and social responsibility. Additionally, we find that patent quality and digital transformation positively moderate the relationship between <em>ESGP</em> and <em>SNQPF,</em> highlighting the importance of technological innovation and intellectual property in fostering sustainable economic growth. This study provides new insights into optimizing <em>ESG</em> management strategies and contributes to the broader understanding of how innovation and sustainability practices interact to enhance <em>SNQPF</em>, supporting China's long-term modernization goals.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103911"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151888","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 : 2025-01-21DOI: 10.1016/j.iref.2025.103907
Xiaohan Si , Shuai Zhang
Carbon emissions play a crucial role in the quantitative assessment of ESG sustainability disclosure. Existing literature has extensively explored the relationship between carbon emissions and firm value. In this study, we analyze data on bond issuances from Chinese listed companies to investigate the impact of carbon emission disclosure on bond credit spreads. Our findings indicate that carbon emission disclosure has a negative relationship with bond credit spreads. Specifically, we demonstrate that disclosing carbon emissions provides new information to the market, influencing credit spreads. The effect of this disclosure on bond credit spreads is particularly significant for firms with higher earnings management, those located in areas with stricter environmental regulations, firms operating in low-carbon industries, and bonds with covenants. Additionally, we assess the methods of carbon emission disclosure and find that quantitative approaches are more beneficial than qualitative ones. Finally, we confirm that the disclosure of other pollutants also contributes to a reduction in credit spreads. Overall, our results highlight the existence of a carbon premium in the bond market, indicating that information related to carbon emissions is already partially reflected in bond pricing.
{"title":"Carbon emission disclosure and carbon premium ——evidence from the Chinese bond market","authors":"Xiaohan Si , Shuai Zhang","doi":"10.1016/j.iref.2025.103907","DOIUrl":"10.1016/j.iref.2025.103907","url":null,"abstract":"<div><div>Carbon emissions play a crucial role in the quantitative assessment of ESG sustainability disclosure. Existing literature has extensively explored the relationship between carbon emissions and firm value. In this study, we analyze data on bond issuances from Chinese listed companies to investigate the impact of carbon emission disclosure on bond credit spreads. Our findings indicate that carbon emission disclosure has a negative relationship with bond credit spreads. Specifically, we demonstrate that disclosing carbon emissions provides new information to the market, influencing credit spreads. The effect of this disclosure on bond credit spreads is particularly significant for firms with higher earnings management, those located in areas with stricter environmental regulations, firms operating in low-carbon industries, and bonds with covenants. Additionally, we assess the methods of carbon emission disclosure and find that quantitative approaches are more beneficial than qualitative ones. Finally, we confirm that the disclosure of other pollutants also contributes to a reduction in credit spreads. Overall, our results highlight the existence of a carbon premium in the bond market, indicating that information related to carbon emissions is already partially reflected in bond pricing.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103907"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151880","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 : 2025-01-21DOI: 10.1016/j.iref.2025.103900
Yuan Gao , Jianjun Li , Yaping Wu
This paper examines the impact of product market competition on corporate tax avoidance by constructing a difference-in-differences model using a quasi-natural experiment of the Anti-Trust Law. The results indicate that the implementation of the Anti-Trust Law significantly increases the degree of tax avoidance of monopolistic firms by more than 0.01 compared to competitive firms. The main conclusion still holds after a series of robustness tests. Declining corporate performance, increased business risk and subjective dissatisfaction towards regulatory authorities constitute the main reasons. Heterogeneity analysis reveals that the promotion effect of the Anti-Trust Law on corporate tax avoidance is more pronounced for firms located in regions with lower levels of tax administration, firms whose income tax is collected and administered by local tax bureaus, firms with lower quality of information disclosure and private firms. The results provide empirical evidence of the differentiated impact of the Anti-Trust Law on corporate tax avoidance behavior of different firms.
{"title":"Competition and tax avoidance: Evidence from quasi natural experiment of the implementation of Anti-Trust Law","authors":"Yuan Gao , Jianjun Li , Yaping Wu","doi":"10.1016/j.iref.2025.103900","DOIUrl":"10.1016/j.iref.2025.103900","url":null,"abstract":"<div><div>This paper examines the impact of product market competition on corporate tax avoidance by constructing a difference-in-differences model using a quasi-natural experiment of the Anti-Trust Law. The results indicate that the implementation of the Anti-Trust Law significantly increases the degree of tax avoidance of monopolistic firms by more than 0.01 compared to competitive firms. The main conclusion still holds after a series of robustness tests. Declining corporate performance, increased business risk and subjective dissatisfaction towards regulatory authorities constitute the main reasons. Heterogeneity analysis reveals that the promotion effect of the Anti-Trust Law on corporate tax avoidance is more pronounced for firms located in regions with lower levels of tax administration, firms whose income tax is collected and administered by local tax bureaus, firms with lower quality of information disclosure and private firms. The results provide empirical evidence of the differentiated impact of the Anti-Trust Law on corporate tax avoidance behavior of different firms.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103900"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151298","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 : 2025-01-21DOI: 10.1016/j.iref.2025.103903
Xin Liu , Zhao Xu , Kailai Zhang , Zhiyong Kang , Xinyue Xie
As a crucial strategy for China's opening up and economic reform, development zones have undergone phases of initiation, boom and stable development since the establishment of Special Economic Zones (SEZs) in 1980, ultimately becoming engines for regional economic growth. In 2009, the Chinese government initiated the process of upgrading provincial-level development zones to national-level development zones, marking the beginning of a transformation in China's development zones from ‘quantitative change’ to ‘qualitative change’. What impact will the gradually implemented upgrading policy for development zones have on urban entrepreneurship? This study uses China's upgrading policy for development zones as a quasi-natural experiment and analyzes data from 2528 districts (or counties) from 2006 to 2019, employing the multi-period difference-in-differences (DID) method to examine the impact of upgrading development zones on entrepreneurial activity in both the local and surrounding areas. The study finds that the implementation of the upgrading policy for development zones significantly enhances the entrepreneurial activity in the local district (or county), but it has a certain suppressive effect on the entrepreneurial activity in the surrounding districts (or counties). After conducting various robustness tests, the conclusions remain valid. Further analysis reveals that the effects of the upgrading policy for development zones on entrepreneurial activity are notably influenced by the heterogeneity of urban characteristics and entrepreneurial enterprise characteristics. Mechanism tests indicate that business environment, preferential policies and agglomeration effects impact the entrepreneurial activity in the districts (or counties). The findings of this study expand the existing literature on the upgrading of development zones and entrepreneurship, providing relevant insights into how to further improve the development zone system and adjust its policy framework to promote innovative and entrepreneurial economic development.
{"title":"Can upgrading development zones enhance regional entrepreneurial activity? Evidence from Chinese enterprise registration data","authors":"Xin Liu , Zhao Xu , Kailai Zhang , Zhiyong Kang , Xinyue Xie","doi":"10.1016/j.iref.2025.103903","DOIUrl":"10.1016/j.iref.2025.103903","url":null,"abstract":"<div><div>As a crucial strategy for China's opening up and economic reform, development zones have undergone phases of initiation, boom and stable development since the establishment of Special Economic Zones (SEZs) in 1980, ultimately becoming engines for regional economic growth. In 2009, the Chinese government initiated the process of upgrading provincial-level development zones to national-level development zones, marking the beginning of a transformation in China's development zones from ‘quantitative change’ to ‘qualitative change’. What impact will the gradually implemented upgrading policy for development zones have on urban entrepreneurship? This study uses China's upgrading policy for development zones as a quasi-natural experiment and analyzes data from 2528 districts (or counties) from 2006 to 2019, employing the multi-period difference-in-differences (DID) method to examine the impact of upgrading development zones on entrepreneurial activity in both the local and surrounding areas. The study finds that the implementation of the upgrading policy for development zones significantly enhances the entrepreneurial activity in the local district (or county), but it has a certain suppressive effect on the entrepreneurial activity in the surrounding districts (or counties). After conducting various robustness tests, the conclusions remain valid. Further analysis reveals that the effects of the upgrading policy for development zones on entrepreneurial activity are notably influenced by the heterogeneity of urban characteristics and entrepreneurial enterprise characteristics. Mechanism tests indicate that business environment, preferential policies and agglomeration effects impact the entrepreneurial activity in the districts (or counties). The findings of this study expand the existing literature on the upgrading of development zones and entrepreneurship, providing relevant insights into how to further improve the development zone system and adjust its policy framework to promote innovative and entrepreneurial economic development.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103903"},"PeriodicalIF":4.8,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150416","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 : 2025-01-20DOI: 10.1016/j.iref.2025.103893
Aysha Akter , Mariem Khalifa , Mohammed Aminu Sualihu
In this study, we examine whether managers of diversified firms make efficient labor investment decisions. Using a sample of 36,102 firm-year observations over the period 1989–2021, we find that managers of diversified firms make inefficient labor investment decisions. This finding is robust to a battery of sensitivity tests, alternative model specifications, and endogeneity concerns. We further document that the positive relationship between diversification and inefficient labor investment is long lasting, but is attenuated when managers of diversified firms are granted equity incentives. Our results suggest that self-seeking managers may strategically use diversification to obfuscate their suboptimal behaviors. Overall, our findings provide valuable insights into the complexities of resource allocation strategies and contribute to a broader understanding of corporate decision-making.
{"title":"Diversified firms and corporate labor policy: The role of managerial equity incentives","authors":"Aysha Akter , Mariem Khalifa , Mohammed Aminu Sualihu","doi":"10.1016/j.iref.2025.103893","DOIUrl":"10.1016/j.iref.2025.103893","url":null,"abstract":"<div><div>In this study, we examine whether managers of diversified firms make efficient labor investment decisions. Using a sample of 36,102 firm-year observations over the period 1989–2021, we find that managers of diversified firms make inefficient labor investment decisions. This finding is robust to a battery of sensitivity tests, alternative model specifications, and endogeneity concerns. We further document that the positive relationship between diversification and inefficient labor investment is long lasting, but is attenuated when managers of diversified firms are granted equity incentives. Our results suggest that self-seeking managers may strategically use diversification to obfuscate their suboptimal behaviors. Overall, our findings provide valuable insights into the complexities of resource allocation strategies and contribute to a broader understanding of corporate decision-making.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103893"},"PeriodicalIF":4.8,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151285","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 : 2025-01-20DOI: 10.1016/j.iref.2025.103891
Taoxiong Liu, Ruofei Li, Simin Yuan
{"title":"Exploring the multifaceted dynamics of Chinese economy: Insights from the eighth international conference on the Chinese economy: Past, present and future","authors":"Taoxiong Liu, Ruofei Li, Simin Yuan","doi":"10.1016/j.iref.2025.103891","DOIUrl":"10.1016/j.iref.2025.103891","url":null,"abstract":"","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103891"},"PeriodicalIF":4.8,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150411","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 : 2025-01-19DOI: 10.1016/j.iref.2025.103875
Xue Chen , Qiao Wang , Junting Zhou
Based on the POI open data of prefecture-level cities across China from 2012 to 2021, the causal relationship between construction of smart city and enhancement of urban convenience is identified by using the multi-temporal DID method. Through research, it is found that smart city construction significantly enhances urban convenience. According to the mechanism test, smart city construction promotes the enhancement of urban living convenience through resource allocation effect, innovation driving effect and entrepreneurship promotion effect; In addition, the heterogeneity test demonstrates that there are significant differences in the level of responses to policy due to different location factors, population size and functional positioning of each city, for example, the effects of policy are more obvious in central and western cities, non-coastal cities, cities with population of less than 3 million and non-resource-based cities. The findings confirm that the construction of smart cities can effectively enhance the convenience and improve the living standard of urban residents. Therefore, strengthen the cultivation of entrepreneurial and innovative talents, advancing the construction of new infrastructure, and promoting balanced regional development holds the key to promote the construction of modern generation in cities and effectively improve the process of building digital China.
{"title":"Construction of smart city and enhancement of urban convenience: A quasi-natural experiment based on a smart city pilot","authors":"Xue Chen , Qiao Wang , Junting Zhou","doi":"10.1016/j.iref.2025.103875","DOIUrl":"10.1016/j.iref.2025.103875","url":null,"abstract":"<div><div>Based on the POI open data of prefecture-level cities across China from 2012 to 2021, the causal relationship between construction of smart city and enhancement of urban convenience is identified by using the multi-temporal DID method. Through research, it is found that smart city construction significantly enhances urban convenience. According to the mechanism test, smart city construction promotes the enhancement of urban living convenience through resource allocation effect, innovation driving effect and entrepreneurship promotion effect; In addition, the heterogeneity test demonstrates that there are significant differences in the level of responses to policy due to different location factors, population size and functional positioning of each city, for example, the effects of policy are more obvious in central and western cities, non-coastal cities, cities with population of less than 3 million and non-resource-based cities. The findings confirm that the construction of smart cities can effectively enhance the convenience and improve the living standard of urban residents. Therefore, strengthen the cultivation of entrepreneurial and innovative talents, advancing the construction of new infrastructure, and promoting balanced regional development holds the key to promote the construction of modern generation in cities and effectively improve the process of building digital China.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103875"},"PeriodicalIF":4.8,"publicationDate":"2025-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151886","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 : 2025-01-19DOI: 10.1016/j.iref.2025.103895
Andrei Shynkevich
This study investigates the efficiency of wine market and explores the predictability in wine returns. Daily returns on a portfolio of wines denominated in the original currency of trade for the period exhibit significant positive serial correlation that persists further when wine returns are sampled at weekly and monthly frequencies. Abnormal excess returns on wine are earned by various trading strategies designed to exploit trending behavior in asset prices before trading fees. After accounting for market frictions such as transaction costs, the abnormal profitability from wine trading evaporates. Claims of inefficiency and return predictability in a market sensitive to market frictions can be exaggerated when the latter are ignored.
{"title":"Wine market efficiency: Is glass half full or half empty?","authors":"Andrei Shynkevich","doi":"10.1016/j.iref.2025.103895","DOIUrl":"10.1016/j.iref.2025.103895","url":null,"abstract":"<div><div>This study investigates the efficiency of wine market and explores the predictability in wine returns. Daily returns on a portfolio of wines denominated in the original currency of trade for the period exhibit significant positive serial correlation that persists further when wine returns are sampled at weekly and monthly frequencies. Abnormal excess returns on wine are earned by various trading strategies designed to exploit trending behavior in asset prices before trading fees. After accounting for market frictions such as transaction costs, the abnormal profitability from wine trading evaporates. Claims of inefficiency and return predictability in a market sensitive to market frictions can be exaggerated when the latter are ignored.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"98 ","pages":"Article 103895"},"PeriodicalIF":4.8,"publicationDate":"2025-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151283","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}
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