Pub Date : 2026-01-20DOI: 10.1016/j.iref.2026.104924
Merve Coskun , Nigar Taspinar , Gbenga Adamolekun
This paper examines dynamic, frequency-based volatility connectedness using daily data from October 24, 2018, to July 6, 2023. It covers indices in artificial intelligence and Fintech, along with key green market indicators like clean energy, green bonds, and carbon emissions. The dynamic analysis shows that volatility connectedness peaks during major global shocks, such as the COVID-19 pandemic, and increases again during the Russia-Ukraine conflict. Frequency analysis reveals that short-term connectedness is dominant, although significant long-term connectedness also exists. Additionally, AI and Fintech are identified as the primary sources of volatility across different time horizons. Robustness tests confirm the reliability and consistency of these findings. Overall, our study highlights the growing integration between technology-driven and environmentally focused markets, especially in times of crisis.
{"title":"FinTech, AI and green outcomes","authors":"Merve Coskun , Nigar Taspinar , Gbenga Adamolekun","doi":"10.1016/j.iref.2026.104924","DOIUrl":"10.1016/j.iref.2026.104924","url":null,"abstract":"<div><div>This paper examines dynamic, frequency-based volatility connectedness using daily data from October 24, 2018, to July 6, 2023. It covers indices in artificial intelligence and Fintech, along with key green market indicators like clean energy, green bonds, and carbon emissions. The dynamic analysis shows that volatility connectedness peaks during major global shocks, such as the COVID-19 pandemic, and increases again during the Russia-Ukraine conflict. Frequency analysis reveals that short-term connectedness is dominant, although significant long-term connectedness also exists. Additionally, AI and Fintech are identified as the primary sources of volatility across different time horizons. Robustness tests confirm the reliability and consistency of these findings. Overall, our study highlights the growing integration between technology-driven and environmentally focused markets, especially in times of crisis.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104924"},"PeriodicalIF":5.6,"publicationDate":"2026-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146035648","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 : 2026-01-20DOI: 10.1016/j.iref.2026.104945
Aktham Maghyereh , Basel Awartani
This paper examines the influence of ESG factors on the systemic risk of oil and gas companies using firm-level data from 2004 to 2024. We find that firms with high (low) ESG scores consistently contribute less (more) to systemic risk. This effect is stronger among large, high-emission firms. The relationship between ESG and systemic risk is non-linear, with diminishing benefits beyond a certain ESG threshold—where further ESG improvement may increase systemic risk. During the 2014–2016 oil price collapse, firms with stronger ESG profiles contribute less to systemic risk. These findings underscore the role of corporate sustainability in mitigating sector-wide financial vulnerabilities.
{"title":"Does ESG shape systemic risk in oil and gas exploration?","authors":"Aktham Maghyereh , Basel Awartani","doi":"10.1016/j.iref.2026.104945","DOIUrl":"10.1016/j.iref.2026.104945","url":null,"abstract":"<div><div>This paper examines the influence of ESG factors on the systemic risk of oil and gas companies using firm-level data from 2004 to 2024. We find that firms with high (low) ESG scores consistently contribute less (more) to systemic risk. This effect is stronger among large, high-emission firms. The relationship between ESG and systemic risk is non-linear, with diminishing benefits beyond a certain ESG threshold—where further ESG improvement may increase systemic risk. During the 2014–2016 oil price collapse, firms with stronger ESG profiles contribute less to systemic risk. These findings underscore the role of corporate sustainability in mitigating sector-wide financial vulnerabilities.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104945"},"PeriodicalIF":5.6,"publicationDate":"2026-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146036002","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 : 2026-01-20DOI: 10.1016/j.iref.2026.104925
Ahmed S. Alanazi, Hayat Khan
We examine the impact of three dimensions of governance regulations introduced by Saudi Arabia's Ministry of Sport on the on-field performance of football clubs in the 240 matches of the 2021/22 Saudi Pro League season. We find that those aspects of governance that have reputationalor commercialvalue such as the rules related to marketing activities and events and social responsibility improve the on-field performance of football clubs. Conversely, the “culture shock” induced by the management dimensions of the regulations negatively affects on-field performance. The negative impact of this culture shock on our performance variable is consistently significant. This finding highlights the importance of controlling for the culture shock aspect when analyzing the social and economic impact of corporate governance, which is often overlooked. It also suggests that new governance regulations should be implemented carefully, with attention to the methods of adaptation and confidence building.
{"title":"Sports governance and football club performance","authors":"Ahmed S. Alanazi, Hayat Khan","doi":"10.1016/j.iref.2026.104925","DOIUrl":"10.1016/j.iref.2026.104925","url":null,"abstract":"<div><div>We examine the impact of three dimensions of governance regulations introduced by Saudi Arabia's Ministry of Sport on the on-field performance of football clubs in the 240 matches of the 2021/22 Saudi Pro League season. We find that those a<em>spects of governance that have reputational</em> <em>or commercial</em><em>value such as the rules related to marketing activities and events and social responsibility improve the on-field performance of football clubs. Conversely, the “culture shock” induced by the management dimensions of the regulations negatively affects on-field performance.</em> The negative impact of this culture shock on our performance variable is consistently significant. This finding highlights the importance of controlling for the culture shock aspect when analyzing the social and economic impact of corporate governance, which is often overlooked. It also suggests that new governance regulations should be implemented carefully, with attention to the methods of adaptation and confidence building.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104925"},"PeriodicalIF":5.6,"publicationDate":"2026-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146189414","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 : 2026-01-19DOI: 10.1016/j.iref.2026.104927
Yongmei Cai, Jinyin Guo, Chengyue Shen
This study treats the Chinese government's 2015 Green Data Center Pilot Policy as a quasi-natural experiment. Using panel data from 281 prefecture-level Chinese cities from 2010 to 2022, this study employs a double machine learning model to empirically examine the impact of the Green Data Center Pilot Policy on urban economic resilience, the heterogeneity of its effects, and the mechanisms through which it operates. The results reveal that green data centers can significantly enhance urban economic resilience. This conclusion remains robust after a series of tests, encompassing instrumental variable estimation, excluding outliers, adjusting sample splitting ratios, varying the sample periods, and controlling for other concurrent policies. Heterogeneity analysis reveals that the pilot policy's effect on urban economic resilience is influenced by urban resource endowment, city status, and energy consumption. Specifically, the pilot policy has a stronger positive effect on economic resilience in nonresource-based cities, central cities, and cities with lower energy consumption levels, while its impact on other cities is relatively weaker. Further mechanism tests demonstrate that digital finance and green innovation are significant channels through which the pilot policy enhances urban economic resilience. These findings have important policy implications for Chinese government agencies, indicating the need to promote the coordinated development of digitalization and environmental sustainability in economic and social systems.
{"title":"Green data center pilots and urban economic resilience: Causal inference based on double machine learning","authors":"Yongmei Cai, Jinyin Guo, Chengyue Shen","doi":"10.1016/j.iref.2026.104927","DOIUrl":"10.1016/j.iref.2026.104927","url":null,"abstract":"<div><div>This study treats the Chinese government's 2015 Green Data Center Pilot Policy as a quasi-natural experiment. Using panel data from 281 prefecture-level Chinese cities from 2010 to 2022, this study employs a double machine learning model to empirically examine the impact of the Green Data Center Pilot Policy on urban economic resilience, the heterogeneity of its effects, and the mechanisms through which it operates. The results reveal that green data centers can significantly enhance urban economic resilience. This conclusion remains robust after a series of tests, encompassing instrumental variable estimation, excluding outliers, adjusting sample splitting ratios, varying the sample periods, and controlling for other concurrent policies. Heterogeneity analysis reveals that the pilot policy's effect on urban economic resilience is influenced by urban resource endowment, city status, and energy consumption. Specifically, the pilot policy has a stronger positive effect on economic resilience in nonresource-based cities, central cities, and cities with lower energy consumption levels, while its impact on other cities is relatively weaker. Further mechanism tests demonstrate that digital finance and green innovation are significant channels through which the pilot policy enhances urban economic resilience. These findings have important policy implications for Chinese government agencies, indicating the need to promote the coordinated development of digitalization and environmental sustainability in economic and social systems.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104927"},"PeriodicalIF":5.6,"publicationDate":"2026-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146035999","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 : 2026-01-19DOI: 10.1016/j.iref.2026.104909
Zhenkun Cai , Lili Wang , Enyu Zhao , Mingzhu Zhou
Geopolitical risks (GPRs) are reshaping global energy trade and influencing energy security in profound ways. This study examines how GPRs have impacted fossil fuel imports from 2000 to 2022. We find that rising GPRs not only reduce imports from high-risk nations but also lead to broader declines across other markets, revealing a spillover effect beyond simple market substitution. The effects vary significantly across energy types, with coal and oil imports being more sensitive to GPRs. Countries with abundant energy resources or political/military alliances are more resilient to GPR shocks. Additionally, nations with strong renewable energy potential are more likely to transition to renewables in response to GPRs, rather than relying on fossil fuel imports from other markets. This highlights the negative spillover effects of GPRs on global fossil fuel trade and offers new insights into their role in global energy dynamics.
{"title":"A bad apple: The spillover effects of geopolitical risks on traditional energy trade","authors":"Zhenkun Cai , Lili Wang , Enyu Zhao , Mingzhu Zhou","doi":"10.1016/j.iref.2026.104909","DOIUrl":"10.1016/j.iref.2026.104909","url":null,"abstract":"<div><div>Geopolitical risks (GPRs) are reshaping global energy trade and influencing energy security in profound ways. This study examines how GPRs have impacted fossil fuel imports from 2000 to 2022. We find that rising GPRs not only reduce imports from high-risk nations but also lead to broader declines across other markets, revealing a spillover effect beyond simple market substitution. The effects vary significantly across energy types, with coal and oil imports being more sensitive to GPRs. Countries with abundant energy resources or political/military alliances are more resilient to GPR shocks. Additionally, nations with strong renewable energy potential are more likely to transition to renewables in response to GPRs, rather than relying on fossil fuel imports from other markets. This highlights the negative spillover effects of GPRs on global fossil fuel trade and offers new insights into their role in global energy dynamics.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104909"},"PeriodicalIF":5.6,"publicationDate":"2026-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146074650","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 : 2026-01-17DOI: 10.1016/j.iref.2026.104922
Mahmoud Hassan , Ji-Yong Lee , Marc Kouzez
Green finance and energy taxes are the main national climate governance tools that have been appearing rapidly around the world in recent years. However, there is a paucity of empirical knowledge regarding the effectiveness of these instruments in stimulating green innovation in Europe. Employing data from 15 European Union countries from 2005 to 2021, we explore the impact of these tools on green innovation. Using sophisticated panel econometric methods, our findings show that green finance and energy taxes drive green innovation. The analysis also reveals a unidirectional influence of energy taxes and green finance on green innovation. A deeper analysis reveal that these tools are more effective in promoting green innovation in countries with low levels of energy taxes. The findings of this study yield important policy implications, suggesting that strengthening green finance, in combination with maintaining relatively low levels of energy taxation, may play a crucial role in fostering and accelerating green innovation in Europe.
{"title":"Climate governance and green innovation in Europe: New perspective","authors":"Mahmoud Hassan , Ji-Yong Lee , Marc Kouzez","doi":"10.1016/j.iref.2026.104922","DOIUrl":"10.1016/j.iref.2026.104922","url":null,"abstract":"<div><div>Green finance and energy taxes are the main national climate governance tools that have been appearing rapidly around the world in recent years. However, there is a paucity of empirical knowledge regarding the effectiveness of these instruments in stimulating green innovation in Europe. Employing data from 15 European Union countries from 2005 to 2021, we explore the impact of these tools on green innovation. Using sophisticated panel econometric methods, our findings show that green finance and energy taxes drive green innovation. The analysis also reveals a unidirectional influence of energy taxes and green finance on green innovation. A deeper analysis reveal that these tools are more effective in promoting green innovation in countries with low levels of energy taxes. The findings of this study yield important policy implications, suggesting that strengthening green finance, in combination with maintaining relatively low levels of energy taxation, may play a crucial role in fostering and accelerating green innovation in Europe.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104922"},"PeriodicalIF":5.6,"publicationDate":"2026-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146036000","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 : 2026-01-16DOI: 10.1016/j.iref.2026.104916
B.S. Prashanth , Manoj Kumar , Ariful Hoque , Nasser Al Muraqab , Immanuel Azaad Moonesar , Udo Christian Braendle , Ananth Rao
The development of online banking has brought about an increase in fraudulent operations, which is a major problem for banks. This study delves into the urgent requirement for interpretable, scalable, and top-notch fraud detection systems by using TabNet, an adaptable deep learning framework, on a Kaggle dataset consisting of actual bank transactions in India. Maximizing operational risk management by improving the accuracy of transaction anomaly detection and ensuring regulatory compliance through transparent models is the goal.
We utilize a supervised learning pipeline that incorporates the Synthetic Minority Over-sampling Technique (SMOTE) to ensure that classes are balanced. Subsequently, we conduct thorough exploratory data analysis (EDA) to identify patterns of fraud, both during specific times and across behaviors. On this dataset, five different deep learning architectures are tested: DNN, GRU, LSTM, CNN1D, and TabNet. Assessment of predictive performance was carried out using a 3-fold cross-validation framework. With a ROC-AUC of 0.9739 and an accuracy of 97.39 %, TabNet considerably outperformed the competition. The method of sparse feature selection used improved interpretability, generalized better on tabular data, and produced fewer false positives and negatives.
Critical insights for operational fraud detection systems and a contribution to the broader literature on explainable AI (XAI) in financial decision-making are offered by the findings. Goals 8 and 16 of the Sustainable Development Agenda are supported by this study, which promotes inclusive economic growth and institutional transparency. Supporting strong, policy-compliant, and interpretable decision-support systems, it also offers practical use for real-time implementation in banking infrastructure.
{"title":"Prediction of bank transaction fraud using TabNet—an adaptive deep learning architecture","authors":"B.S. Prashanth , Manoj Kumar , Ariful Hoque , Nasser Al Muraqab , Immanuel Azaad Moonesar , Udo Christian Braendle , Ananth Rao","doi":"10.1016/j.iref.2026.104916","DOIUrl":"10.1016/j.iref.2026.104916","url":null,"abstract":"<div><div>The development of online banking has brought about an increase in fraudulent operations, which is a major problem for banks. This study delves into the urgent requirement for interpretable, scalable, and top-notch fraud detection systems by using TabNet, an adaptable deep learning framework, on a Kaggle dataset consisting of actual bank transactions in India. Maximizing operational risk management by improving the accuracy of transaction anomaly detection and ensuring regulatory compliance through transparent models is the goal.</div><div>We utilize a supervised learning pipeline that incorporates the Synthetic Minority Over-sampling Technique (SMOTE) to ensure that classes are balanced. Subsequently, we conduct thorough exploratory data analysis (EDA) to identify patterns of fraud, both during specific times and across behaviors. On this dataset, five different deep learning architectures are tested: DNN, GRU, LSTM, CNN1D, and TabNet. Assessment of predictive performance was carried out using a 3-fold cross-validation framework. With a ROC-AUC of 0.9739 and an accuracy of 97.39 %, TabNet considerably outperformed the competition. The method of sparse feature selection used improved interpretability, generalized better on tabular data, and produced fewer false positives and negatives.</div><div>Critical insights for operational fraud detection systems and a contribution to the broader literature on explainable AI (XAI) in financial decision-making are offered by the findings. Goals 8 and 16 of the Sustainable Development Agenda are supported by this study, which promotes inclusive economic growth and institutional transparency. Supporting strong, policy-compliant, and interpretable decision-support systems, it also offers practical use for real-time implementation in banking infrastructure.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104916"},"PeriodicalIF":5.6,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146036060","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 : 2026-01-16DOI: 10.1016/j.iref.2026.104918
Shun Li , Yang Liu
Based on the GARCH-MIDAS model, this study systematically examines the impact of U.S.-China geopolitical tensions on the volatility of the spot gold market. By introducing a monthly U.S.-China tension index (UCT), we quantify the explanatory power of bilateral geopolitical friction on long-term volatility in the gold market. Empirical results indicate that the gold market exhibits significant volatility clustering, and the UCT significantly amplifies long-term volatility. This reflects the fact that rising geopolitical tensions trigger risk-averse behavior in the market, driving capital reallocation toward safe-haven assets, such as gold. After incorporating monthly realized volatility (RV) as a control variable, the UCT remains statistically significant, further validating its independent information-additive value. Out-of-sample forecasting results indicate that the two-factor model, including UCT and RV, outperforms the single-factor model in volatility forecasting, with stronger predictive capability and greater stability. This study validates the need to incorporate the gold market into a systemic risk monitoring and early warning system centered on geopolitical risk. It proposes it as an important reference indicator for macroprudential regulation.
{"title":"A new perspective on gold as a risk hedge: Long-term impacts of bilateral political tensions between the U.S. and China","authors":"Shun Li , Yang Liu","doi":"10.1016/j.iref.2026.104918","DOIUrl":"10.1016/j.iref.2026.104918","url":null,"abstract":"<div><div>Based on the GARCH-MIDAS model, this study systematically examines the impact of U.S.-China geopolitical tensions on the volatility of the spot gold market. By introducing a monthly U.S.-China tension index (UCT), we quantify the explanatory power of bilateral geopolitical friction on long-term volatility in the gold market. Empirical results indicate that the gold market exhibits significant volatility clustering, and the UCT significantly amplifies long-term volatility. This reflects the fact that rising geopolitical tensions trigger risk-averse behavior in the market, driving capital reallocation toward safe-haven assets, such as gold. After incorporating monthly realized volatility (RV) as a control variable, the UCT remains statistically significant, further validating its independent information-additive value. Out-of-sample forecasting results indicate that the two-factor model, including UCT and RV, outperforms the single-factor model in volatility forecasting, with stronger predictive capability and greater stability. This study validates the need to incorporate the gold market into a systemic risk monitoring and early warning system centered on geopolitical risk. It proposes it as an important reference indicator for macroprudential regulation.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104918"},"PeriodicalIF":5.6,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146035967","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 : 2026-01-16DOI: 10.1016/j.iref.2026.104920
Zhuang Yang , Fuxiang Wu , Ziyang Yue
Artificial intelligence (AI) technology, widely regarded as a general-purpose technology (GPT), has important implications for firms' international expansion, yet evidence on its relationship with outward foreign direct investment (OFDI) remains limited. Based on a panel dataset of Chinese listed firms from 2012 to 2023, this study investigates whether AI technology enhances firms' OFDI in emerging markets using panel Probit and panel Tobit models. The results demonstrate that firms' AI technology has a significant positive impact on their OFDI, as reflected in the OFDI decision, OFDI breadth, and OFDI depth. This relationship is mediated by the firms' total factor productivity (TFP) and dynamic capabilities. Furthermore, the impact of AI technology on OFDI is moderated by industry competition. This study deepens the understanding of the effects of AI technology on firms’ OFDI and complements the issue of the relationship between GPT and firm internationalization.
{"title":"Artificial intelligence technology and firms’ OFDI: Evidence from China","authors":"Zhuang Yang , Fuxiang Wu , Ziyang Yue","doi":"10.1016/j.iref.2026.104920","DOIUrl":"10.1016/j.iref.2026.104920","url":null,"abstract":"<div><div>Artificial intelligence (AI) technology, widely regarded as a general-purpose technology (GPT), has important implications for firms' international expansion, yet evidence on its relationship with outward foreign direct investment (OFDI) remains limited. Based on a panel dataset of Chinese listed firms from 2012 to 2023, this study investigates whether AI technology enhances firms' OFDI in emerging markets using panel Probit and panel Tobit models. The results demonstrate that firms' AI technology has a significant positive impact on their OFDI, as reflected in the OFDI decision, OFDI breadth, and OFDI depth. This relationship is mediated by the firms' total factor productivity (TFP) and dynamic capabilities. Furthermore, the impact of AI technology on OFDI is moderated by industry competition. This study deepens the understanding of the effects of AI technology on firms’ OFDI and complements the issue of the relationship between GPT and firm internationalization.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104920"},"PeriodicalIF":5.6,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146036067","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 : 2026-01-15DOI: 10.1016/j.iref.2026.104902
Bowen Ding , Sumei Luo , Guangyou Zhou
Against the backdrop of global warming, businesses have emerged as key players in improving resource efficiency and combating pollution. Clarifying the intrinsic link between corporate ESG practices and carbon performance is of great significance. Using data from Chinese A-share listed enterprises from 2009 to 2021, this study empirically examines the specific impact and mechanisms through which corporate ESG practices affect carbon performance. The findings indicate that corporate ESG practices can actually undermine carbon performance, challenging the perception that such practices are substantive rather than superficial. This negative effect is attributed to internal agency conflicts and the resulting phenomenon of “greenwashing”. Moreover, this negative relationship is more pronounced in heavily polluting companies, non-SOE enterprises, and companies with high ESG rating discrepancies. Further analysis reveals that greenwashing is more prevalent among Category B and C enterprises, with Category B showing the most pronounced tendency. Additionally, certain enterprises exhibit greenwashing behaviors across the E, S, and G dimensions, facilitated by earnings management and inefficient investments. On the other hand, internal controls and oversight by institutional investors serve as key governance mechanisms that mitigate the adverse effects of greenwashing. The theoretical contribution of this study lies in revealing the unintended negative consequences of ESG ratings and the motivations and methods behind corporate“greenwashing.. ”Practically, it offers insights for policymakers to strengthen environmental regulations and guide businesses toward pollution control, carbon reduction, and sustainable development.
{"title":"Substance over form: A carbon performance examination on corporate ESG practices","authors":"Bowen Ding , Sumei Luo , Guangyou Zhou","doi":"10.1016/j.iref.2026.104902","DOIUrl":"10.1016/j.iref.2026.104902","url":null,"abstract":"<div><div>Against the backdrop of global warming, businesses have emerged as key players in improving resource efficiency and combating pollution. Clarifying the intrinsic link between corporate ESG practices and carbon performance is of great significance. Using data from Chinese A-share listed enterprises from 2009 to 2021, this study empirically examines the specific impact and mechanisms through which corporate ESG practices affect carbon performance. The findings indicate that corporate ESG practices can actually undermine carbon performance, challenging the perception that such practices are substantive rather than superficial. This negative effect is attributed to internal agency conflicts and the resulting phenomenon of “greenwashing”. Moreover, this negative relationship is more pronounced in heavily polluting companies, non-SOE enterprises, and companies with high ESG rating discrepancies. Further analysis reveals that greenwashing is more prevalent among Category B and C enterprises, with Category B showing the most pronounced tendency. Additionally, certain enterprises exhibit greenwashing behaviors across the E, S, and G dimensions, facilitated by earnings management and inefficient investments. On the other hand, internal controls and oversight by institutional investors serve as key governance mechanisms that mitigate the adverse effects of greenwashing. The theoretical contribution of this study lies in revealing the unintended negative consequences of ESG ratings and the motivations and methods behind corporate“greenwashing.. ”Practically, it offers insights for policymakers to strengthen environmental regulations and guide businesses toward pollution control, carbon reduction, and sustainable development.</div></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":"106 ","pages":"Article 104902"},"PeriodicalIF":5.6,"publicationDate":"2026-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146036062","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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