International Review of Economics & Finance最新文献

In the new era of green and low-carbon economic transformation, servitization transformation enhances the production efficiency and perceptual capabilities of manufacturing firms and offers a novel approach to fulfilling environmental, social, and governance (ESG) responsibilities. This study employs a sample of Chinese-listed manufacturing firms from 2009 to 2021 to provide a theoretical analysis of the intrinsic mechanisms by which servitization transformation impacts ESG performance, including the roles played by total factor productivity, human capital, and firm goodwill. We then empirically examine the impact and mechanisms by which servitization transformation impacts the ESG performance of firms, finding the following. First, servitization transformation significantly improves ESG performance and this conclusion still holds following a series of robustness tests. Second, servitization transformation enhances ESG performance through the following three channels: improving total factor productivity, optimizing the structure of human capital, and accumulating firm goodwill. Third, the ESG performance of state-owned, high-tech, and large firms is more sensitive to servitization transformation. This study enriches and expands the application of servitization transformation research to manufacturing, providing policy insights that would allow manufacturing firms to better fulfill their ESG responsibilities and promote green and sustainable economic development.

This study aims to investigate the dynamic relationship between inflation, exchange rate, and economic growth in Ethiopia for the period 1991–2020. This is because of rampant inflation, continuously devalued domestic currency, and the declining growth rate of the country due to violent conflicts. The study uses the ARDL model for short-run and long-run dynamics, the Bound test of co-integration to confirm if the target variables go together or not, and Granger causality tests are performed to detect dynamic effects. The ARDL model estimates suggested that inflation and exchange rate are negatively related to economic growth. This implies that an increase in the price level reduces the production of goods and services, while devaluation has a negative impact by reducing imports of intermediate goods. Thus, increasing domestic resource mobilization, improving regulatory quality, and deepening the financial sector can be viewed as solutions to decrease chronic foreign exchange shortages, lower inflation, and boost economic growth rates.

The increasing influence of media coverage on corporate financial outcomes has become a critical area of study; however, the intricate relationships among media reporting, social trust, and corporate financing efficiency remain underexplored. This study examines how different types of media coverage impact corporate financing efficiency, while considering the moderating role of social trust. We employ two-way fixed-effects and moderating effects models to analyze these relationships using data from A-share listed companies in China from 2004 to 2022. The findings reveal that positive and neutral media coverage significantly enhances corporate financing efficiency, with positive coverage exhibiting a stronger effect. In contrast, negative media coverage substantially diminishes financing efficiency. Notably, social trust amplifies the impact of all types of media coverage, intensifying both positive and negative effects. We also find that state-owned enterprises are more sensitive to media coverage than non-state-owned counterparts. These results contribute to the understanding of information dissemination in financial markets and highlight the importance of social context in shaping corporate financial outcomes. Our study offers valuable insights for developing corporate communication strategies and targeted policymaking, emphasizing the need for proactive media management and consideration of social trust in financial environments. Future research could explore these dynamics in diverse cultural and economic settings to further elucidate the complex interplay between media, social trust, and corporate finance.

Utilizing panel data from listed companies in China spanning from 2012 to 2022, this study explores the correlation between big data capabilities, ESG (Environmental, Social, and Governance) performance, and enterprise value. The findings reveal that strong big data capabilities contribute to an increase in enterprise value. Additionally, improved ESG performance also leads to an augmentation in enterprise value, while exerting a favorable moderating effect. Furthermore, there exists a disparity in how ESG performance impacts the value of state-owned and non-state-owned enterprises, with a more pronounced effect observed in state-owned enterprises.

We study the high-frequency impact of monetary policy decisions on the structure of financial market networks, using 1-second return data for 10 industry-level equity indices in the United States. We find that FOMC meetings and policy surprises have a significant influence on network connectedness in returns, volatility, skewness, and kurtosis. The information related to policy decisions instantly shocks and is quickly dissipated throughout the financial network. Network connectedness shocks are positively impacted by the magnitude of interest rate surprises, with asymmetric effects by sign and nonlinear effects being weak. Our results have implications for monetary policy, systemic risk, and asset pricing.

This paper empirically examines the impact of share repurchase on corporate cash holding decisions by selecting A sample of stock repurchase of A-share listed companies in Shanghai and Shenzhen from 2007 to 2020. The results show that share repurchase can reduce the level of corporate cash holdings, and there is heterogeneity in financing constraints, dividend distribution and investment opportunities.

Overseas investment by Chinese enterprises is one of the critical trends in China's economic development in recent years, and more and more Chinese enterprises have begun to look at overseas markets to seek broader development space and resources. The study chooses publicly traded firms on the Shanghai and Shenzhen stock exchanges from 2011 to 2022 as its primary investigation pool, and confirms a series of findings:economic policy uncertainty negatively affects enterprises' overseas investment; good bank-enterprise relationship helps to improve Chinese enterprises' overseas investment. A good bank-enterprise relationship can help enterprises obtain financial support better, thus expanding overseas investment; government subsidies can drive Chinese enterprises to increase overseas investment. Government subsidies can mitigate the risk of Chinese enterprises' overseas investment to a certain extent, thus promoting the increase of Chinese enterprises' overseas investment; the impact of policy uncertainty on non-state-owned enterprises' overseas investment is more significant than that of state-owned enterprises.

This study explores the complex interdependencies among five major financial assets—S&P 500, Bitcoin, Crude Oil, Gold, and USD/EUR—from April 2015 to September 2022, emphasizing the importance of understanding global financial dynamics for robust financial management. We quantitatively analyze daily causal relationships using conditional transfer entropy, a method that surpasses traditional correlation analyses. By incorporating the effective federal funds rate into our models, we enhance predictive accuracy and account for monetary policy impacts, ensuring our findings are relevant to current economic conditions. Our results reveal significant causal networks, providing key insights into asset interdependencies that support advanced hedging strategies and effective diversification. This research improves prediction models through the innovative use of network-based features and offers practical strategies for managing multinational financial assets, with relevance across various economic scenarios.

Based on the classification of Chinese listed companies, this paper selects the financial statement data of Chinese listed companies from 2008 to 2022 to conduct an empirical study, and the empirical results confirm that Government subsidies can promote enterprises to enhance the efficiency of technological innovation; Market competition can encourage enterprises to enhance the efficiency of technological innovation and The impact of government subsidies on the efficiency of technological innovation of non-state enterprises is more significant, while other information remains unchanged. The impact of government subsidies on the technological innovation efficiency of non-state-owned enterprises is more significant. Through empirical research, this paper understands the impact of government subsidies and market competition on the technological innovation efficiency of enterprises, which is conducive to providing a reference for the government to formulate enterprise subsidy policies.

This paper conducts an empirical examination using listed companies on China's Shanghai and Shenzhen A-share markets from 2010 to 2020. The findings indicate that digital transformation has a significant positive effect on the quality of management's earnings forecast. Mechanism analysis reveals that this effect is more pronounced in companies with lower internal control indices, higher levels of corporate governance, and higher agency costs. Digital transformation enhances the quality of corporate information disclosure and mitigates information asymmetry, further improving management's earnings forecast level. Through heterogeneity analysis, further research finds that companies lacking a technical background among senior executives, those in less competitive industries, those with poor growth, and non-state-owned enterprises, experience a more significant positive impact on the quality of management earnings forecasts from digital transformation. The conclusions provide new evidence for continuing to advance digital transformation and elucidate the benign cycle mechanism between the capital market and the national economy. This study also proposes new perspectives for the regulation of predictive information disclosure by enterprises.