Pub Date : 2024-09-21DOI: 10.1016/j.iref.2024.103657
Jia He, Xixi Shen
This paper examines the effect of network centrality, a measure of the extent and strength of a firm's connections formed by institutional investor cross-ownership (IICO), on corporate green innovation. Using a sample of Chinese-listed firms between 2003 and 2019, we demonstrate that corporate green innovation is positively correlated with the network centrality of IICO. This finding is more pronounced for firms that have low R&D investment and for non-state-owned firms than for other firms. Regarding the influence mechanisms, we find that network centrality promotes green innovation by enabling information transmission, alleviating managers' career concerns, and enhancing external monitoring. Further analyses suggest that network centrality affects both the quantity and the quality of corporate green innovation. Our paper provides insight into how to promote green innovation and accelerate the transformation of firms toward sustainable practices.
{"title":"Institutional investor cross-ownership networks and green innovation: Evidence from China","authors":"Jia He, Xixi Shen","doi":"10.1016/j.iref.2024.103657","DOIUrl":"10.1016/j.iref.2024.103657","url":null,"abstract":"<div><div>This paper examines the effect of network centrality, a measure of the extent and strength of a firm's connections formed by institutional investor cross-ownership (IICO), on corporate green innovation. Using a sample of Chinese-listed firms between 2003 and 2019, we demonstrate that corporate green innovation is positively correlated with the network centrality of IICO. This finding is more pronounced for firms that have low R&D investment and for non-state-owned firms than for other firms. Regarding the influence mechanisms, we find that network centrality promotes green innovation by enabling information transmission, alleviating managers' career concerns, and enhancing external monitoring. Further analyses suggest that network centrality affects both the quantity and the quality of corporate green innovation. Our paper provides insight into how to promote green innovation and accelerate the transformation of firms toward sustainable practices.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103657"},"PeriodicalIF":4.8,"publicationDate":"2024-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142323205","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 : 2024-09-20DOI: 10.1016/j.iref.2024.103625
Rene Zamarripa
This paper reconsiders whether monetary policy in small open economies responds to exchange rates by studying possible parameter instabilities in a Dynamic Stochastic General Equilibrium model. The main focus of the paper is to revisit preceding evidence on the response to exchange rate movements by the Bank of England and determine if its reaction function has remained constant throughout the sample. To this end, I estimate a small open economy general equilibrium model using Bayesian econometric techniques over rolling windows. I find overwhelming evidence of shifts in several parameters, including those related to the policy rule. Furthermore, posterior odds tests reveal a time-varying response to exchange-rate fluctuations by the monetary authorities. The results favor the model with the nominal exchange rate embedded in the policy rule for the initial subsamples. However, the evidence steadily evolves across windows and ultimately changes to prefer the model specification with no exchange rate. The paper also documents evident variations in the model dynamics derived from the instability of parameters via rolling-window impulse response functions and variance decomposition analysis.
{"title":"Parameter instabilities and monetary policy in a small open economy: Evidence from an estimated model for the UK","authors":"Rene Zamarripa","doi":"10.1016/j.iref.2024.103625","DOIUrl":"10.1016/j.iref.2024.103625","url":null,"abstract":"<div><p>This paper reconsiders whether monetary policy in small open economies responds to exchange rates by studying possible parameter instabilities in a Dynamic Stochastic General Equilibrium model. The main focus of the paper is to revisit preceding evidence on the response to exchange rate movements by the Bank of England and determine if its reaction function has remained constant throughout the sample. To this end, I estimate a small open economy general equilibrium model using Bayesian econometric techniques over rolling windows. I find overwhelming evidence of shifts in several parameters, including those related to the policy rule. Furthermore, posterior odds tests reveal a time-varying response to exchange-rate fluctuations by the monetary authorities. The results favor the model with the nominal exchange rate embedded in the policy rule for the initial subsamples. However, the evidence steadily evolves across windows and ultimately changes to prefer the model specification with no exchange rate. The paper also documents evident variations in the model dynamics derived from the instability of parameters via rolling-window impulse response functions and variance decomposition analysis.</p></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103625"},"PeriodicalIF":4.8,"publicationDate":"2024-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1059056024006178/pdfft?md5=741df2c4e93ad8971ef28a1562e9cdd2&pid=1-s2.0-S1059056024006178-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142271992","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}
This research underscores the critical role of green innovation in advancing corporate sustainability and green transformation. Analyzing 9048 panel data points from China between 2010 and 2021, we applied a series of fixed effect models to assess how venture capital (VC) influences corporate green innovation. The study examined the effect of VC on two key business aspects: the costs of debt financing and the propensity for corporate risk-taking. The findings confirm that venture capital is essential in promoting corporate green innovation by lowering debt-related financial burdens and diminishing firms' inclination to take risks. Additionally, our heterogeneity analysis indicates that venture capital's impact is more pronounced within eastern China and among state-owned enterprises, suggesting regional and ownership-based variations in green innovation dynamics.
{"title":"How does venture capital play a role in corporate green innovation? Evidence from China","authors":"Peiyou Yu , Hui Dai , Jianhua Zhu , Shigeyuki Hamori , Rebecca Kechen Dong , Xiaoguang Yue","doi":"10.1016/j.iref.2024.103654","DOIUrl":"10.1016/j.iref.2024.103654","url":null,"abstract":"<div><div>This research underscores the critical role of green innovation in advancing corporate sustainability and green transformation. Analyzing 9048 panel data points from China between 2010 and 2021, we applied a series of fixed effect models to assess how venture capital (VC) influences corporate green innovation. The study examined the effect of VC on two key business aspects: the costs of debt financing and the propensity for corporate risk-taking. The findings confirm that venture capital is essential in promoting corporate green innovation by lowering debt-related financial burdens and diminishing firms' inclination to take risks. Additionally, our heterogeneity analysis indicates that venture capital's impact is more pronounced within eastern China and among state-owned enterprises, suggesting regional and ownership-based variations in green innovation dynamics.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103654"},"PeriodicalIF":4.8,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142312535","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 : 2024-09-19DOI: 10.1016/j.iref.2024.103653
Bing Zhang , Hongbing Zhu
We use an alternative sorting method which groups stocks into return intervals rather than percentiles to test the relationship between the T+1 trading mechanism and the short-term contrarian effect in the China's A-share market. Our sample period is from January 2010 to December 2020. China's stock market exhibits a significant contrarian effect in daily, weekly, and monthly frequencies, while the momentum effect is not significant. This paper argues that the special T+1 trading mechanism of China's stock market is the reason for this typical anomaly. The essence of the T+1 trading mechanism is a marketability put option, and this paper takes the volatility as the core of the analysis. This study shows that stock market volatility has a significant impact on the overnight return, with higher volatility leading to a higher discount. Through different daily, weekly, and monthly frequency groupings, the study finds that the winner's portfolio would reverse significantly in the next period. Under the T+1 mechanism, the high return stock portfolio is also characterized by high volatility and high turnover. The contrarian effect of China's stock market is unique in that both the winner's portfolio and the loser's portfolio will fall, but the winner's portfolio will fall more. The reversal of the winner's portfolio dominates in the entire market. The paper provides a new explanation for the contrarian effect and adds a unique explanation to the study of worldwide contrarian effect.
{"title":"Only strong short-term contrarian effect exists in Chinese stock market: The role of the T+1 trading mechanism","authors":"Bing Zhang , Hongbing Zhu","doi":"10.1016/j.iref.2024.103653","DOIUrl":"10.1016/j.iref.2024.103653","url":null,"abstract":"<div><div>We use an alternative sorting method which groups stocks into return intervals rather than percentiles to test the relationship between the T+1 trading mechanism and the short-term contrarian effect in the China's A-share market. Our sample period is from January 2010 to December 2020. China's stock market exhibits a significant contrarian effect in daily, weekly, and monthly frequencies, while the momentum effect is not significant. This paper argues that the special T+1 trading mechanism of China's stock market is the reason for this typical anomaly. The essence of the T+1 trading mechanism is a marketability put option, and this paper takes the volatility as the core of the analysis. This study shows that stock market volatility has a significant impact on the overnight return, with higher volatility leading to a higher discount. Through different daily, weekly, and monthly frequency groupings, the study finds that the winner's portfolio would reverse significantly in the next period. Under the T+1 mechanism, the high return stock portfolio is also characterized by high volatility and high turnover. The contrarian effect of China's stock market is unique in that both the winner's portfolio and the loser's portfolio will fall, but the winner's portfolio will fall more. The reversal of the winner's portfolio dominates in the entire market. The paper provides a new explanation for the contrarian effect and adds a unique explanation to the study of worldwide contrarian effect.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103653"},"PeriodicalIF":4.8,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142315390","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 : 2024-09-19DOI: 10.1016/j.iref.2024.103644
Pearlean Chadha , Jenny Berrill
We provide an alternative perspective on the benefits of investing in Multinational Companies (MNCs) using a unique hand-collected dataset on the location of UK firm's sales and subsidiaries from 1998 to 2015. We find that investors can gain diversification benefits from investing in MNCs, but not necessarily firms with the greatest global reach. We also show that firm's returns tend not to be influenced by the geographical regions where they report sales and subsidiaries. The results suggest a new category of firms that may be beneficial for diversification - firms that are significantly influenced by the stock markets of a geographical region but do not report sales or subsidiaries in that region. This implies that investors should analyse the geographical regions that influence firm returns rather than the location of their sales and subsidiaries. Intuitively, these should be the same, but our results show a difference between the geographical location of a firm's sales and subsidiaries, and the regions that influence the firm returns. We recommend that investors look beyond the location of MNC activities and investigate the geographical regions that influence firms' returns when creating portfolios.
{"title":"International operations and international influences – Investing in UK firms","authors":"Pearlean Chadha , Jenny Berrill","doi":"10.1016/j.iref.2024.103644","DOIUrl":"10.1016/j.iref.2024.103644","url":null,"abstract":"<div><p>We provide an alternative perspective on the benefits of investing in Multinational Companies (MNCs) using a unique hand-collected dataset on the location of UK firm's sales and subsidiaries from 1998 to 2015. We find that investors can gain diversification benefits from investing in MNCs, but not necessarily firms with the greatest global reach. We also show that firm's returns tend not to be influenced by the geographical regions where they report sales and subsidiaries. The results suggest a new category of firms that may be beneficial for diversification - firms that are significantly influenced by the stock markets of a geographical region but do not report sales or subsidiaries in that region. This implies that investors should analyse the geographical regions that influence firm returns rather than the location of their sales and subsidiaries. Intuitively, these should be the same, but our results show a difference between the geographical location of a firm's sales and subsidiaries, and the regions that influence the firm returns. We recommend that investors look beyond the location of MNC activities and investigate the geographical regions that influence firms' returns when creating portfolios.</p></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103644"},"PeriodicalIF":4.8,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1059056024006361/pdfft?md5=f221b200aa11e985b01751349b61917a&pid=1-s2.0-S1059056024006361-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142271990","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 : 2024-09-18DOI: 10.1016/j.iref.2024.103647
Hai Hong Trinh , Thao Phuong Tran
The study provides global evidence on the effects of news-based geopolitical risk (GPR), events, and associated risks on the financial stability of banking systems. With extensive large panel data from 179 economies over the past decades, we document strong adverse effects of GPR on financial stability with the predicted decrease (increase) in the bank (non-performing loans) Z-score. Commercial banking systems are heterogeneously exposed to GPR. Possible mechanisms to mitigate the effects of GPR include multidimensional financial development, enhanced world governance, and public finance. Our findings are robust with a battery of econometric approaches controlling for time-varying macroeconomic factors and banking characteristics (e.g., capitalization, concentration, performance) across countries and regions. The impacts of GPR on global financial stability are persistent when we control for systematic banking crises, economic policy, world uncertainty, and global uncertainty spillovers. While higher capitalized banks could secure ample financial stability with substantial military expenditure, the Asia Pacific and emerging economies are sensitive to widespread GPR. The study highlights the roles of institutional quality and world governance factors through times of uncertainty. In The context of global risks, greater global and comprehensive collaborations with mitigated GPR threats are inevitable for our inclusive growth toward Sustainable Development Goals. Our findings are critical to policymakers, advisers, and economists for our global financial stability and sustainable development.
{"title":"Global banking systems, financial stability, and uncertainty: How have countries coped with geopolitical risks?","authors":"Hai Hong Trinh , Thao Phuong Tran","doi":"10.1016/j.iref.2024.103647","DOIUrl":"10.1016/j.iref.2024.103647","url":null,"abstract":"<div><div>The study provides global evidence on the effects of news-based geopolitical risk (GPR), events, and associated risks on the financial stability of banking systems. With extensive large panel data from 179 economies over the past decades, we document strong adverse effects of GPR on financial stability with the predicted decrease (increase) in the bank (non-performing loans) Z-score. Commercial banking systems are heterogeneously exposed to GPR. Possible mechanisms to mitigate the effects of GPR include multidimensional financial development, enhanced world governance, and public finance. Our findings are robust with a battery of econometric approaches controlling for time-varying macroeconomic factors and banking characteristics (e.g., capitalization, concentration, performance) across countries and regions. The impacts of GPR on global financial stability are persistent when we control for systematic banking crises, economic policy, world uncertainty, and global uncertainty spillovers. While higher capitalized banks could secure ample financial stability with substantial military expenditure, the Asia Pacific and emerging economies are sensitive to widespread GPR. The study highlights the roles of institutional quality and world governance factors through times of uncertainty. In The context of global risks, greater global and comprehensive collaborations with mitigated GPR threats are inevitable for our inclusive growth toward Sustainable Development Goals. Our findings are critical to policymakers, advisers, and economists for our global financial stability and sustainable development.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103647"},"PeriodicalIF":4.8,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1059056024006397/pdfft?md5=aafc8a14c6a1b04292dd0c102dbb6819&pid=1-s2.0-S1059056024006397-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142315389","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 : 2024-09-18DOI: 10.1016/j.iref.2024.103645
Noemi Giampaoli, Marco Cucculelli, Valerio Sullo
Identifying the business and financial cycles and their regimes is crucial for understanding the economy's state and financial market dynamics. Using a bivariate four-regime Markov-switching framework, we assess the accuracy of a model that identifies the business cycle by combining financial and real variables and compare it to a model that only uses real variables. We find that a model that incorporates information from a financial stress index outperforms a model based solely on real variables, not only during a financial crisis, but also, and more interestingly, during economic downturns. The empirical evidence provides insights for policymakers and investors to improve economic policy formulation, investment strategies, strategic decision-making, and proactive risk management. The results are robust to various model specifications.
{"title":"Business and financial cycle across regimes: Does financial stress matter?","authors":"Noemi Giampaoli, Marco Cucculelli, Valerio Sullo","doi":"10.1016/j.iref.2024.103645","DOIUrl":"10.1016/j.iref.2024.103645","url":null,"abstract":"<div><div>Identifying the business and financial cycles and their regimes is crucial for understanding the economy's state and financial market dynamics. Using a bivariate four-regime Markov-switching framework, we assess the accuracy of a model that identifies the business cycle by combining financial and real variables and compare it to a model that only uses real variables. We find that a model that incorporates information from a financial stress index outperforms a model based solely on real variables, not only during a financial crisis, but also, and more interestingly, during economic downturns. The empirical evidence provides insights for policymakers and investors to improve economic policy formulation, investment strategies, strategic decision-making, and proactive risk management. The results are robust to various model specifications.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103645"},"PeriodicalIF":4.8,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142358613","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 : 2024-09-18DOI: 10.1016/j.iref.2024.103648
Youxue Jiang
While China has made significant strides in poverty alleviation, the persistent urban-rural divide poses challenges for sustainable development. Previous studies have explored various factors influencing rural revitalization, yet the interplay between public service equalization, digital financial inclusion, and rural development remains understudied. This resfundearch investigates how public service equalization impacts rural revitalization in China and examines the moderating role of digital financial inclusion. Using panel data from 283 prefecture-level cities from 2011 to 2021, we employ a fixed-effects model and conduct robustness checks including endogeneity tests and alternative specifications. Our findings reveal that public service equalization positively influences rural revitalization, with both accessibility and beneficiality dimensions playing crucial roles. Importantly, digital financial inclusion enhances this positive impact, suggesting a synergistic effect. These results underscore the need for a holistic approach integrating public service provision and digital financial services to promote inclusive growth in rural China. By elucidating the mechanisms through which these factors interact, our study contributes to the broader literature on rural development and offers policymakers valuable insights for designing effective rural revitalization strategies.
{"title":"Public service equalization, digital financial inclusion and the rural revitalization: Evidence from Chinese 283 prefecture-level cities","authors":"Youxue Jiang","doi":"10.1016/j.iref.2024.103648","DOIUrl":"10.1016/j.iref.2024.103648","url":null,"abstract":"<div><div>While China has made significant strides in poverty alleviation, the persistent urban-rural divide poses challenges for sustainable development. Previous studies have explored various factors influencing rural revitalization, yet the interplay between public service equalization, digital financial inclusion, and rural development remains understudied. This resfundearch investigates how public service equalization impacts rural revitalization in China and examines the moderating role of digital financial inclusion. Using panel data from 283 prefecture-level cities from 2011 to 2021, we employ a fixed-effects model and conduct robustness checks including endogeneity tests and alternative specifications. Our findings reveal that public service equalization positively influences rural revitalization, with both accessibility and beneficiality dimensions playing crucial roles. Importantly, digital financial inclusion enhances this positive impact, suggesting a synergistic effect. These results underscore the need for a holistic approach integrating public service provision and digital financial services to promote inclusive growth in rural China. By elucidating the mechanisms through which these factors interact, our study contributes to the broader literature on rural development and offers policymakers valuable insights for designing effective rural revitalization strategies.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103648"},"PeriodicalIF":4.8,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142320273","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}
This paper applies text analysis method and Baidu sentiment tendency analysis model to identify the text characteristics of bank ESG information disclosure, and explores the impact of media attention and negative reports on the text of bank ESG as well as the influence mechanism. The study finds that the higher the media attention, the stronger the positive sentiment of bank ESG information disclosure text, and the lower the readability. Similarly, negative media coverage is positively related to the sentiment of bank ESG text, and negatively related to the readability of the text. Mechanism analysis shows that media attention and negative reports can inhibit banks' active risk-taking, increase analysts' attention to banks as well, and then affect banks' ESG disclosure behavior. Heterogeneity analysis shows that the impact of media attention and negative reports on ESG disclosure text is more obvious for banks with higher capital adequacy ratio and lower weighted risk assets ratio. This paper examines the impact of media governance on bank ESG disclosure behavior from the perspective of text big data analysis, which is a useful supplement to the research on ESG disclosure.
{"title":"Media attention, negative reports and textual information of banks’ ESG disclosure","authors":"Wei Zhou , Fangmin Chen , Yingying Zhu , Lizhu Xiang , Lingli Lei","doi":"10.1016/j.iref.2024.103583","DOIUrl":"10.1016/j.iref.2024.103583","url":null,"abstract":"<div><div>This paper applies text analysis method and Baidu sentiment tendency analysis model to identify the text characteristics of bank ESG information disclosure, and explores the impact of media attention and negative reports on the text of bank ESG as well as the influence mechanism. The study finds that the higher the media attention, the stronger the positive sentiment of bank ESG information disclosure text, and the lower the readability. Similarly, negative media coverage is positively related to the sentiment of bank ESG text, and negatively related to the readability of the text. Mechanism analysis shows that media attention and negative reports can inhibit banks' active risk-taking, increase analysts' attention to banks as well, and then affect banks' ESG disclosure behavior. Heterogeneity analysis shows that the impact of media attention and negative reports on ESG disclosure text is more obvious for banks with higher capital adequacy ratio and lower weighted risk assets ratio. This paper examines the impact of media governance on bank ESG disclosure behavior from the perspective of text big data analysis, which is a useful supplement to the research on ESG disclosure.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103583"},"PeriodicalIF":4.8,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142312534","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 : 2024-09-18DOI: 10.1016/j.iref.2024.103649
Fangfang Feng , Junjun Li , Feng Zhang , Jinghuan Sun
Environmental concerns have intensified the focus on sustainable innovation, with artificial intelligence (AI) emerging as a potential driver. However, the relationship between AI adoption and green innovation efficiency, particularly in emerging economies, remains unclear. This gap is crucial to address as it could reveal pathways to enhance sustainable development in rapidly growing markets. Here, we investigate how AI impacts green innovation efficiency in Chinese firms and examine the moderating effects of dynamic capabilities. Using panel data from 26,117 firm-year observations of Chinese A-share listed companies (2008–2022), we employ a novel text-based measure of AI adoption and assess green innovation efficiency through patent applications and R&D expenditure. Our findings reveal a significant positive relationship between AI adoption and green innovation efficiency, with dynamic capabilities enhancing this effect. The impact is stronger in non-state-owned and high-tech firms. These results demonstrate AI's potential as a catalyst for sustainable development and highlight the importance of organizational capabilities in realizing these benefits. Our study contributes to the evolving discourse on technology-driven sustainability, providing insights for both theory and practice in leveraging AI for green innovation in diverse economic contexts.
对环境问题的关注加强了对可持续创新的重视，而人工智能（AI）正成为一种潜在的驱动力。然而，人工智能的采用与绿色创新效率之间的关系，尤其是在新兴经济体，仍不明确。解决这一空白至关重要，因为它可以揭示在快速增长的市场中加强可持续发展的途径。在此，我们研究了人工智能如何影响中国企业的绿色创新效率，并考察了动态能力的调节作用。我们使用中国 A 股上市公司 26117 个公司年观测值（2008-2022 年）的面板数据，采用了一种新颖的基于文本的人工智能采用度量方法，并通过专利申请和研发支出来评估绿色创新效率。我们的研究结果表明，采用人工智能与绿色创新效率之间存在显著的正相关关系，动态能力增强了这一效应。非国有企业和高科技企业受到的影响更大。这些结果证明了人工智能作为可持续发展催化剂的潜力，并强调了组织能力在实现这些效益方面的重要性。我们的研究为不断发展的技术驱动可持续发展的讨论做出了贡献，为在不同经济背景下利用人工智能进行绿色创新的理论和实践提供了启示。
{"title":"The impact of artificial intelligence on green innovation efficiency: Moderating role of dynamic capability","authors":"Fangfang Feng , Junjun Li , Feng Zhang , Jinghuan Sun","doi":"10.1016/j.iref.2024.103649","DOIUrl":"10.1016/j.iref.2024.103649","url":null,"abstract":"<div><div>Environmental concerns have intensified the focus on sustainable innovation, with artificial intelligence (AI) emerging as a potential driver. However, the relationship between AI adoption and green innovation efficiency, particularly in emerging economies, remains unclear. This gap is crucial to address as it could reveal pathways to enhance sustainable development in rapidly growing markets. Here, we investigate how AI impacts green innovation efficiency in Chinese firms and examine the moderating effects of dynamic capabilities. Using panel data from 26,117 firm-year observations of Chinese A-share listed companies (2008–2022), we employ a novel text-based measure of AI adoption and assess green innovation efficiency through patent applications and R&D expenditure. Our findings reveal a significant positive relationship between AI adoption and green innovation efficiency, with dynamic capabilities enhancing this effect. The impact is stronger in non-state-owned and high-tech firms. These results demonstrate AI's potential as a catalyst for sustainable development and highlight the importance of organizational capabilities in realizing these benefits. Our study contributes to the evolving discourse on technology-driven sustainability, providing insights for both theory and practice in leveraging AI for green innovation in diverse economic contexts.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"96 ","pages":"Article 103649"},"PeriodicalIF":4.8,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142315388","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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