Journal of Corporate Finance最新文献

英文中文

Adoption of central bank digital currencies: Initial evidence from China

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-12 DOI: 10.1016/j.jcorpfin.2025.102735

HaiChen Bai , Lin William Cong , Mei Luo , Ping Xie

Central banks all over the world are at various stage of developing central bank digital currency (CBDC). Few countries have launched the CBDC or widely used it in the economy. In addition to surveying the literature, which features extremely scarce empirical studies due to data limitations, this paper provides likely the earliest and the most comprehensive empirical documentation of the adoption of China's CBDC (e-CNY) after the central bank launched and actively promoted it in pilot regions using both regulatory power and economic incentives. We find that regions with active promotions for e-CNY plausibly witness more frequent and larger e-CNY transactions, more wallet creations, and greater merchant adoption. However, despite the strong intervention, individual users mostly stick to existing electronic payment Apps and are reluctant to switch to e-CNY. Given the world eagerly learns from China's experiment and China plans to expand the application scope of e-CNY as a general payment tool domestically and internationally with added smart-contract functions, we discuss primary challenges and potential paths forward for the development of e-CNY and CBDCs in general.

{"title":"Adoption of central bank digital currencies: Initial evidence from China","authors":"HaiChen Bai , Lin William Cong , Mei Luo , Ping Xie","doi":"10.1016/j.jcorpfin.2025.102735","DOIUrl":"10.1016/j.jcorpfin.2025.102735","url":null,"abstract":"<div><div>Central banks all over the world are at various stage of developing central bank digital currency (CBDC). Few countries have launched the CBDC or widely used it in the economy. In addition to surveying the literature, which features extremely scarce empirical studies due to data limitations, this paper provides likely the earliest and the most comprehensive empirical documentation of the adoption of China's CBDC (e-CNY) after the central bank launched and actively promoted it in pilot regions using both regulatory power and economic incentives. We find that regions with active promotions for e-CNY plausibly witness more frequent and larger e-CNY transactions, more wallet creations, and greater merchant adoption. However, despite the strong intervention, individual users mostly stick to existing electronic payment Apps and are reluctant to switch to e-CNY. Given the world eagerly learns from China's experiment and China plans to expand the application scope of e-CNY as a general payment tool domestically and internationally with added smart-contract functions, we discuss primary challenges and potential paths forward for the development of e-CNY and CBDCs in general.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"91 ","pages":"Article 102735"},"PeriodicalIF":7.2,"publicationDate":"2025-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Do “say-on-pay” votes affect M&A decisions?

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-11 DOI: 10.1016/j.jcorpfin.2025.102733

Shantanu Dutta , Micah S. Officer , Ruixiang Wang , Pengcheng Zhu

This paper demonstrates that firms receiving above-industry-average support in their “say-on-pay” (SoP) votes engage in more M&A transactions in the subsequent year. Our empirical findings suggest that high levels of SoP voting support may boost managerial confidence, thereby stimulating increased pursuit of acquisitions. Moreover, we observe that managers garnering higher SoP vote support are more likely to secure shareholders' backing in M&A votes, receive higher compensation in successful deals, and face a reduced likelihood of forced turnover following unsuccessful deals. Additionally, we find that both short-term and long-term M&A performance significantly improves in deals announced by managers receiving higher SoP voting support. These findings contribute to our understanding of the relation between shareholder support for CEOs and firm investment.

引用次数: 0

Does stakeholder orientation mitigate shareholder-employee conflicts? Evidence from a quasi-natural experiment

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-07 DOI: 10.1016/j.jcorpfin.2025.102736

Douglas Cumming , Fanyu Lu , Limin Xu , Chia-Feng (Jeffrey) Yu

This paper examines the influence of stakeholder orientation on the shareholder-employee conflict characterized by the propensity of firms to engage in share purchases and leave employee pensions underfunded. Utilizing the enactment of US state-level constituency statutes, we find that firms in states that have adopted constituency statutes exhibit a weaker share repurchase-pension underfunding propensity, especially those with high default risk. The mechanism is through union intervention and labor representatives on boards. The effect is moderated for firms headquartered in high-social-capital regions, operating with higher human capital, possessing a history of employee litigation, and maintaining lower and short-horizon institutional ownership. After implementing constituency statutes, share repurchase announcements are associated with lower returns for firms with higher pension deficits. Our findings suggest that stakeholder orientation can discipline the shareholder-employee conflict.

引用次数: 0

A review of DAO governance: Recent literature and emerging trends

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-03 DOI: 10.1016/j.jcorpfin.2025.102734

Jungsuk Han , Jongsub Lee , Tao Li

Decentralized autonomous organizations (DAOs) have emerged as a new organizational structure that leverages smart contracts and blockchain technology. Academics and practitioners have paid significant attention to DAOs, yet DAO decision-making processes and the broader implications remain under-studied. This paper aims to fill this gap in the literature. First, we compare the proposal- and voting-based governance mechanisms of DAOs with those of traditional corporate governance. Second, we introduce various novel voting models adopted by DAOs. Third, we discuss DAOs' drawbacks and highlight a unique agency problem arising from large token holders, termed “whales,” within these organizations. The concentrated ownership such whales, whose interests may diverge from those of smaller token holders (i.e., users), obtain can result in governance vulnerabilities. After discussing recent instances of investor activism and contentious votes involving DAOs, we conclude by surveying the literature on the optimal DAO design.

引用次数: 0

Economic magnitudes within reason

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-03 DOI: 10.1016/j.jcorpfin.2024.102707

Zack Liu , Adam Winegar

A common method of calculating economic magnitudes is to multiply the regression coefficient of the variable of interest by its sample standard deviation. This method is often problematic in finance settings when researchers use granular fixed effects. We show that in many recently published finance papers and for many common finance variables, the sample standard deviation is much larger than the within-group variation that identifies the regression coefficient, and that within-group changes of this magnitude are rare. Without additional assumptions, this common approach can significantly inflate the economic magnitude of the identified effect and impact the comparison of effects among different variables of interest. We recommend using within-group measures of variation to improve the interpretation of economic magnitudes in this setting.

引用次数: 0

Corporate ownership and ESG performance

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2025-01-03 DOI: 10.1016/j.jcorpfin.2024.102732

Belén Villalonga , Peter Tufano , Boya Wang

Using a sample of 3083 firms from 62 countries over 18 years, we analyze how the structure and identity of firms' material owners influence their Environmental, Social, and Governance (ESG) performance. We find that firms with founding families or other individual investors as owners underperform, unless family members serve as CEOs, when they outperform all others. Non-family management and government entities also perform significantly better in most analyses. These results are robust to multiple data and methodological stress tests. Our findings show that ownership matters for ESG performance and give us an indication of the preferences of different types of owners regarding ESG.

引用次数: 0

Understanding stock price behavior around external financing

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2024-12-21 DOI: 10.1016/j.jcorpfin.2024.102730

Min Cao , J. Spencer Martin , Yaqiong Yao

The negative association between pre-financing price run-ups and post-financing price drift-downs is well documented in the literature. We find that firms experiencing pre-financing run-ups and firms experiencing post-financing long-term underperformance may not always be the same firms. The firms with high levels of cash flows experience pre-financing price run-ups but do not suffer post-financing price drift-downs. On the other hand, firms with low cash flow levels do not have pre-financing price run-ups but experience post-financing long-term underperformance even after controlling for various well-documented anomalies. Profitability analyses around external financing suggest that high-cash-flow firms' pre-financing price run-ups could be driven by their robust profitability, whereas low-cash-flow firms' post-financing underperformance might be attributable to their losses.

引用次数: 0

Beyond Russell reconstitution: A re-examination of methodologies for natural experiments

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2024-12-16 DOI: 10.1016/j.jcorpfin.2024.102685

Wei Wei , Alex Young

We develop a framework for screening and validating empirical designs in natural experiments. As an illustration of the framework, we establish a common testing ground for three popular research designs – instrumental variables (IV), fuzzy regression discontinuity (FRD), and difference-in-differences (DiD) – that exploit the annual Russell 1000/2000 Indexes reconstitution. Of the three designs, we find that only the IV approach spuriously detects large and statistically significant “effects” that by construction should be immaterial and statistically indistinguishable from zero. We advocate the use of simulation evidence to support key identifying assumptions for future research designs based on natural experiments.

引用次数: 0

Explaining the involvement and investment of women in business angel groups: The impact of organizational context and investment experience

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2024-12-16 DOI: 10.1016/j.jcorpfin.2024.102729

Laurence Cohen , Cristiano Bellavitis , Peter Wirtz

This research contributes to the scarce but growing literature on women angel investors. More specifically, leveraging stereotype threat theory, we investigate the role played by the social environment in shaping investing behavior across genders. This study offers a comparison between female angels from a stereotype-threat–free environment and (a) male angels, and (b) female angel investors investing in a strongly male-dominated environment. Using proprietary survey data of 96 business angels, our findings confirm that the social context plays an important role in explaining female investment behavior and involvement in BA-group activities. We find that women in a female-only group do not feature investment behavior that differs significantly from men. Whereas women who invest as a minority in a male-dominated environment tend to behave differently. Investment experience, however, moderates the influence of male-dominated environments on female investment behavior. The study confirms earlier exploratory findings related to the role of stereotype threat in female business angel activity at the individual level. Contributing to stereotype threat theory and gender studies in the business angel literature, our findings suggest that the historically marginal contribution of women is a result of the social construction of their role in the finance industry, in which stereotype threats may be particularly prevalent, rather than of supposedly innate features of gender.

{"title":"Explaining the involvement and investment of women in business angel groups: The impact of organizational context and investment experience","authors":"Laurence Cohen , Cristiano Bellavitis , Peter Wirtz","doi":"10.1016/j.jcorpfin.2024.102729","DOIUrl":"10.1016/j.jcorpfin.2024.102729","url":null,"abstract":"<div><div>This research contributes to the scarce but growing literature on women angel investors. More specifically, leveraging stereotype threat theory, we investigate the role played by the social environment in shaping investing behavior across genders. This study offers a comparison between female angels from a stereotype-threat–free environment and (a) male angels, and (b) female angel investors investing in a strongly male-dominated environment. Using proprietary survey data of 96 business angels, our findings confirm that the social context plays an important role in explaining female investment behavior and involvement in BA-group activities. We find that women in a female-only group do not feature investment behavior that differs significantly from men. Whereas women who invest as a minority in a male-dominated environment tend to behave differently. Investment experience, however, moderates the influence of male-dominated environments on female investment behavior. The study confirms earlier exploratory findings related to the role of stereotype threat in female business angel activity at the individual level. Contributing to stereotype threat theory and gender studies in the business angel literature, our findings suggest that the historically marginal contribution of women is a result of the social construction of their role in the finance industry, in which stereotype threats may be particularly prevalent, rather than of supposedly innate features of gender.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"91 ","pages":"Article 102729"},"PeriodicalIF":7.2,"publicationDate":"2024-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148549","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Beta estimation precision and corporate investment efficiency

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance

Pub Date : 2024-12-15 DOI: 10.1016/j.jcorpfin.2024.102728

Lee Biggerstaff, Brad Goldie, Haimanot Kassa

Survey evidence suggests most firms use the CAPM to estimate their cost of equity. Previous research has documented these estimates can be extremely imprecise. We study the impact of the precision of beta estimates on firm investment decisions, and find that firms with precise beta estimates invest closer to their expected levels. We employ quantile regressions to further examine the relationship between Beta Precision and investment levels and find that firms with more precise betas tend to avoid extremes in investment levels. Finally, we show that precision in the estimation of cost of equity is associated with higher risk-adjusted stock returns.

引用次数: 0

首页上一页

下一页尾页

类型

全部化学•材料生命科学医学物理工程技术环境•农林材料科学地球科学法学管理学化学环境科学与生态学计算机科学教育学经济学农林科学人文科学生物学数学物理与天体物理心理学综合性期刊其他工业工程理学历史学农学文学信息工程

数据库

全部 ACS Publications Elsevier ieeexplore Springer The Royal Society of Chemistry Wiley

期刊

Journal of Corporate Finance

全部 Acc. Chem. Res. ACS Applied Bio Materials ACS Appl. Electron. Mater. ACS Appl. Energy Mater. ACS Appl. Mater. Interfaces ACS Appl. Nano Mater. ACS Appl. Polym. Mater. ACS BIOMATER-SCI ENG ACS Catal. ACS Cent. Sci. ACS Chem. Biol. ACS Chemical Health & Safety ACS Chem. Neurosci. ACS Comb. Sci. ACS Earth Space Chem. ACS Energy Lett. ACS Infect. Dis. ACS Macro Lett. ACS Mater. Lett. ACS Med. Chem. Lett. ACS Nano ACS Omega ACS Photonics ACS Sens. ACS Sustainable Chem. Eng. ACS Synth. Biol. Anal. Chem. BIOCHEMISTRY-US Bioconjugate Chem. BIOMACROMOLECULES Chem. Res. Toxicol. Chem. Rev. Chem. Mater. CRYST GROWTH DES ENERG FUEL Environ. Sci. Technol. Environ. Sci. Technol. Lett. Eur. J. Inorg. Chem. IND ENG CHEM RES Inorg. Chem. J. Agric. Food. Chem. J. Chem. Eng. Data J. Chem. Educ. J. Chem. Inf. Model. J. Chem. Theory Comput. J. Med. Chem. J. Nat. Prod. J PROTEOME RES J. Am. Chem. Soc. LANGMUIR MACROMOLECULES Mol. Pharmaceutics Nano Lett. Org. Lett. ORG PROCESS RES DEV ORGANOMETALLICS J. Org. Chem. J. Phys. Chem. J. Phys. Chem. A J. Phys. Chem. B J. Phys. Chem. C J. Phys. Chem. Lett. Analyst Anal. Methods Biomater. Sci. Catal. Sci. Technol. Chem. Commun. Chem. Soc. Rev. CHEM EDUC RES PRACT CRYSTENGCOMM Dalton Trans. Energy Environ. Sci. ENVIRON SCI-NANO ENVIRON SCI-PROC IMP ENVIRON SCI-WAT RES Faraday Discuss. Food Funct. Green Chem. Inorg. Chem. Front. Integr. Biol. J. Anal. At. Spectrom. J. Mater. Chem. A J. Mater. Chem. B J. Mater. Chem. C Lab Chip Mater. Chem. Front. Mater. Horiz. MEDCHEMCOMM Metallomics Mol. Biosyst. Mol. Syst. Des. Eng. Nanoscale Nanoscale Horiz. Nat. Prod. Rep. New J. Chem. Org. Biomol. Chem. Org. Chem. Front. PHOTOCH PHOTOBIO SCI PCCP Polym. Chem.

﹀