Pub Date : 2023-10-31DOI: 10.1080/1351847x.2023.2264930
Jiani Fan, Xiuping Hua, Miao Wang, Yong Wang
ABSTRACTThis paper empirically examines the representation of female venture capitalists (VCs) on boards and how they exert substantial influence on firm innovation performance in China. We first identify a positive association between female VCs’ board participation and firm innovation, implying that Chinese female VCs contribute to growing resource commitments and greater success in innovation through quality board services in portfolio firms. We then show that firms with female VC board directors exhibit a lower adverse effect of managerial myopia, capital market pressure, and product market competition on innovation activities. These results are robust to the use of instrumental variable (IV) estimations, subsamples, and alternative variable definitions.KEYWORDS: Managerial short-termismcapital market pressureproduct market competitionJEL CLASSIFICATIONS: G30G34J16O30 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 Chinese high-tech industries include: Medical and Pharmaceutical Products, Aircraft and Spacecraft, Electronic and Telecommunications Equipment, Computer and Office Equipment and Medical Equipment and Meters.2 The PSM matching results are reported in Appendix 2. The differences in the average treatment effects (ATT) on R&D ratio and patent between the control and treatment for the two pairs of groups equal to 0.009 with t-value of 8.68 and 0.585 with t-value of 22.51 after matching, respectively.3 There are three broad categories of patents in China’s patent system, including new design, new utility and invention, arranged in order of increasing value in terms of commercial and innovation (Wang, Li, and Furman Citation2017).Additional informationFundingThis paper was supported by the National Office for Philosophy and Social Science of China under National Social Science Fund programs [grant number 20AJL017]. It was also supported by Ningbo Science and Technology Bureau under S&T Innovation 2025 Major and Special Program [grant number 2022Z243] and Soft Science Research Project (2022R018). All errors remain the responsibility of the authors.Notes on contributorsJiani FanJiani Fan is currently a lecturer in financial management at Ningbo University of Finance and Economics. She obtained her Ph.D. in digital technologies from the University of Nottingham Ningbo China. Her research interests encompass digital economies, corporate finance, and innovation finance. She has contributed articles to many international journals. Dr. Fan was the principal investigator for several research grants.Xiuping HuaXiuping Hua is currently a professor of finance at Nottingham University Business School China. She obtained her Ph.D. degree in Finance from the University of Sheffield Management School (UK). Prof. Hua's interests include financial technology, innovation finance, and inclusive finance. She has published articles in various academic journals and has also served as a principal investigator for many
摘要本文实证考察了中国女性风险资本家在董事会中的代表性及其对企业创新绩效的实质性影响。我们首先确定了女性风险投资家参与董事会与公司创新之间的正相关关系，这意味着中国女性风险投资家通过在投资组合公司中提供高质量的董事会服务，有助于增加资源承诺和更大的创新成功。结果表明，拥有女性风险投资董事的公司，其管理短视、资本市场压力和产品市场竞争对创新活动的负面影响较低。这些结果对于工具变量(IV)估计、子样本和替代变量定义的使用是稳健的。关键词:管理层短期利益资本市场压力产品市场竞争jel分类:G30G34J16O30披露声明作者未报告潜在利益冲突。注1中国高新技术产业包括:医疗医药产品、飞机航天器、电子通信设备、计算机和办公设备、医疗设备和仪表。2 PSM匹配结果见附录2。2.两对组的平均处理效应(ATT)对研发率和专利的影响，经配对后分别为0.009 (t值为8.68)和0.585 (t值为22.51)在中国的专利制度中，有三大类专利，包括新外观设计、新实用新型和发明，它们按照商业价值和创新价值的递增顺序排列(Wang, Li, and Furman Citation2017)。本文由中国国家哲学社会科学办公室国家社会科学基金项目[批准号20AJL017]资助。宁波科技局科技创新2025重大专项[批准号2022Z243]和软科学研究项目(2022R018)。所有错误由作者负责。作者简介范佳妮，现任宁波财经大学财务管理专业讲师。她在宁波诺丁汉大学获得数字技术博士学位。她的研究兴趣包括数字经济、企业金融和创新金融。她在许多国际期刊上发表过文章。范博士是几项研究资助的首席研究员。华秀萍，诺丁汉大学商学院金融学教授。她在英国谢菲尔德大学管理学院获得金融学博士学位。他的研究方向包括金融科技、创新金融和普惠金融。她曾在各种学术期刊上发表文章，并担任多项研究资助的首席研究员。王淼，现任宁波诺丁汉大学商业与经济学预科导师，同时也是宁波诺丁汉大学高等教育学院高级研究员。她在宁波诺丁汉大学获得金融学博士学位。她的主要研究领域包括创新、企业融资和政府补贴。她曾为各种国际期刊发表文章，并担任这些期刊的审稿人。王勇，现任北京大学经济学副教授、新结构经济研究院学术副院长。他在芝加哥大学获得经济学博士学位。在加入北京大学之前，他曾在香港科技大学和世界银行工作。主要研究领域:经济增长、产业升级、宏观发展、中印经济、新结构经济学。他在国际期刊上发表学术论文，并担任这些期刊的联合编辑和副编辑。他还参与了许多重要的政策项目。
{"title":"Female venture capitalists on boards and firm innovation in China","authors":"Jiani Fan, Xiuping Hua, Miao Wang, Yong Wang","doi":"10.1080/1351847x.2023.2264930","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2264930","url":null,"abstract":"ABSTRACTThis paper empirically examines the representation of female venture capitalists (VCs) on boards and how they exert substantial influence on firm innovation performance in China. We first identify a positive association between female VCs’ board participation and firm innovation, implying that Chinese female VCs contribute to growing resource commitments and greater success in innovation through quality board services in portfolio firms. We then show that firms with female VC board directors exhibit a lower adverse effect of managerial myopia, capital market pressure, and product market competition on innovation activities. These results are robust to the use of instrumental variable (IV) estimations, subsamples, and alternative variable definitions.KEYWORDS: Managerial short-termismcapital market pressureproduct market competitionJEL CLASSIFICATIONS: G30G34J16O30 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 Chinese high-tech industries include: Medical and Pharmaceutical Products, Aircraft and Spacecraft, Electronic and Telecommunications Equipment, Computer and Office Equipment and Medical Equipment and Meters.2 The PSM matching results are reported in Appendix 2. The differences in the average treatment effects (ATT) on R&D ratio and patent between the control and treatment for the two pairs of groups equal to 0.009 with t-value of 8.68 and 0.585 with t-value of 22.51 after matching, respectively.3 There are three broad categories of patents in China’s patent system, including new design, new utility and invention, arranged in order of increasing value in terms of commercial and innovation (Wang, Li, and Furman Citation2017).Additional informationFundingThis paper was supported by the National Office for Philosophy and Social Science of China under National Social Science Fund programs [grant number 20AJL017]. It was also supported by Ningbo Science and Technology Bureau under S&T Innovation 2025 Major and Special Program [grant number 2022Z243] and Soft Science Research Project (2022R018). All errors remain the responsibility of the authors.Notes on contributorsJiani FanJiani Fan is currently a lecturer in financial management at Ningbo University of Finance and Economics. She obtained her Ph.D. in digital technologies from the University of Nottingham Ningbo China. Her research interests encompass digital economies, corporate finance, and innovation finance. She has contributed articles to many international journals. Dr. Fan was the principal investigator for several research grants.Xiuping HuaXiuping Hua is currently a professor of finance at Nottingham University Business School China. She obtained her Ph.D. degree in Finance from the University of Sheffield Management School (UK). Prof. Hua's interests include financial technology, innovation finance, and inclusive finance. She has published articles in various academic journals and has also served as a principal investigator for many","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135808271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-31DOI: 10.1080/1351847x.2023.2269993
Chuangxia Huang, Yanchen Deng, Xiaoguang Yang, Yaqian Cai, Xin Yang
AbstractFor systemic risk, the impact of the financial network's characteristics remains imperfectly understood at best, even if the view that network structure is closely related to systemic risk has become a broad consensus. By choosing S&P 500 constituents as the research sample, we investigate the structural characteristics of the Engle-Granger networks and explore the impact of network centrality on one-quarter-ahead systemic risk. We find that a firm's network centrality is positively related to both dimensions of its systemic risk (i.e. the firm's vulnerability to, and contribution to, system-wide downturns). The results remain robust after we consider the potential endogeneity and various sensitivity checks. An examination of potential channels reveals that centrally located firms in the network have a high extent of co-movement with the market, and are likely to trigger systemic market failures caused by stock price crashes in clusters once they fall into a downturn. We further show that the positive relation between network centrality and future systemic risk is more salient for financial firms and more pronounced during recessions.Keywords: Systemic risknetwork centralityco-integrationEngle-Granger testJEL classifications: G1G3G18 AcknowledgementsThe authors are grateful to the editor and anonymous reviewers for their constructive comments, which led to a significant improvement of our original manuscript.Disclosure statementNo potential conflict of interest was reported by the author(s).Data availability statementThe data that support the findings of this study are available from the corresponding author upon reasonable request.Notes1 The global financial crisis has revealed major deficiencies in Value-at-Risk (VaR), which has been criticized by many as incapable of capturing the systemic nature of risk since its focus is on an institution in isolation (Girardi and Ergün Citation2013).2 It is undeniable that the generalized variance decomposition method is more appealing in the high-frequency analysis of financial entities connectedness and the E-G method is suitable for studying non-stationary financial variables/time series, therefore, the two methods can be regarded as complementary rather than alternative.3 We define q as 5% and choose the S&P 500 index as proxy for the market index.4 The first network is established over the time period from Jan. 4, 2006 to Mar. 31, 2006. The second network is from Apr. 4, 2006 to Jun. 30, 2006. Similarly, the last network is from Oct. 8, 2020 to Dec. 31, 2020.5 The price series of the vast majority of stocks in our sample follow the I(1) process. This result is available upon request.6 For the network constructed in quarter t, blue represents stocks with market capitalization in quarter t rankings from 1 to 136 (large-size), red represents stocks ranked from 137 to 272 (medium-size), and yellow represents stocks ranked from 273 to 408 (small-size).7 The normalized number of edges is the fraction
{"title":"Financial network structure and systemic risk","authors":"Chuangxia Huang, Yanchen Deng, Xiaoguang Yang, Yaqian Cai, Xin Yang","doi":"10.1080/1351847x.2023.2269993","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2269993","url":null,"abstract":"AbstractFor systemic risk, the impact of the financial network's characteristics remains imperfectly understood at best, even if the view that network structure is closely related to systemic risk has become a broad consensus. By choosing S&P 500 constituents as the research sample, we investigate the structural characteristics of the Engle-Granger networks and explore the impact of network centrality on one-quarter-ahead systemic risk. We find that a firm's network centrality is positively related to both dimensions of its systemic risk (i.e. the firm's vulnerability to, and contribution to, system-wide downturns). The results remain robust after we consider the potential endogeneity and various sensitivity checks. An examination of potential channels reveals that centrally located firms in the network have a high extent of co-movement with the market, and are likely to trigger systemic market failures caused by stock price crashes in clusters once they fall into a downturn. We further show that the positive relation between network centrality and future systemic risk is more salient for financial firms and more pronounced during recessions.Keywords: Systemic risknetwork centralityco-integrationEngle-Granger testJEL classifications: G1G3G18 AcknowledgementsThe authors are grateful to the editor and anonymous reviewers for their constructive comments, which led to a significant improvement of our original manuscript.Disclosure statementNo potential conflict of interest was reported by the author(s).Data availability statementThe data that support the findings of this study are available from the corresponding author upon reasonable request.Notes1 The global financial crisis has revealed major deficiencies in Value-at-Risk (VaR), which has been criticized by many as incapable of capturing the systemic nature of risk since its focus is on an institution in isolation (Girardi and Ergün Citation2013).2 It is undeniable that the generalized variance decomposition method is more appealing in the high-frequency analysis of financial entities connectedness and the E-G method is suitable for studying non-stationary financial variables/time series, therefore, the two methods can be regarded as complementary rather than alternative.3 We define q as 5% and choose the S&P 500 index as proxy for the market index.4 The first network is established over the time period from Jan. 4, 2006 to Mar. 31, 2006. The second network is from Apr. 4, 2006 to Jun. 30, 2006. Similarly, the last network is from Oct. 8, 2020 to Dec. 31, 2020.5 The price series of the vast majority of stocks in our sample follow the I(1) process. This result is available upon request.6 For the network constructed in quarter t, blue represents stocks with market capitalization in quarter t rankings from 1 to 136 (large-size), red represents stocks ranked from 137 to 272 (medium-size), and yellow represents stocks ranked from 273 to 408 (small-size).7 The normalized number of edges is the fraction","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135929405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-26DOI: 10.1080/1351847x.2023.2271523
Wanyi Chen, Siyuan Liang, Liguang Zhang
{"title":"Tax uncertainty and corporate innovation output: evidence from China","authors":"Wanyi Chen, Siyuan Liang, Liguang Zhang","doi":"10.1080/1351847x.2023.2271523","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2271523","url":null,"abstract":"","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"141 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134907847","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-10DOI: 10.1080/1351847x.2023.2259438
Guangzi Li, Yili Lian, Yi Zhang
AbstractThis study examines the relationship between labor unions and firms’ decisions to violate debt covenants. We find that firms with high unionization rates are more likely to violate debt covenants than firms with low unionization rates. This relationship is stronger for firms with larger cash reserves. Our analysis also reveals that debt covenant violations lead to a lower probability of a strike. Additionally, we find that high-unionization firms are in better financial condition prior to covenant violations than low-unionization firms. Our study confirms the existing literature by showing that long-term abnormal stock returns after covenant violations are significantly positive. However, our results also show that high-unionization firms experience smaller stock returns compared to low-unionization firms. Furthermore, we provide evidence that high-unionization firms tend to manipulate earnings downward before covenant violations. These findings suggest that firms may strategically violate debt covenants to gain bargaining flexibility and force labor unions to make concessions in subsequent negotiations.KEYWORDS: Labor unionunion electiondebt covenantcovenant violationearnings managementJEL CLASSIFICATIONS: G31G32J51 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 http://finance.wharton.upenn.edu/~mrrobert/styled-9/styled-11/index.html.2 Covenant violation is disclosed in quarterly reports, thus the date of covenant violation disclosed in quarterly report may differ from the date when the violation actually took place. We follow Nini, Smith, and Sufi (Citation2012) and calculate the long-term stock return after covenant violations based on the disclosure date of covenant violation in quarterly reports.Additional informationNotes on contributorsGuangzi LiGuagzi Li is a professor at Institute of Finance and Banking at Chinese Academy of Social Sciences.Yili LianYili Lian is an associate professor of finance at California State University at Stanislaus.Yi ZhangYi Zhang is an associate professor of finance at Southwestern University of Finance and Economics.
{"title":"Labor unions and debt covenant violations*","authors":"Guangzi Li, Yili Lian, Yi Zhang","doi":"10.1080/1351847x.2023.2259438","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2259438","url":null,"abstract":"AbstractThis study examines the relationship between labor unions and firms’ decisions to violate debt covenants. We find that firms with high unionization rates are more likely to violate debt covenants than firms with low unionization rates. This relationship is stronger for firms with larger cash reserves. Our analysis also reveals that debt covenant violations lead to a lower probability of a strike. Additionally, we find that high-unionization firms are in better financial condition prior to covenant violations than low-unionization firms. Our study confirms the existing literature by showing that long-term abnormal stock returns after covenant violations are significantly positive. However, our results also show that high-unionization firms experience smaller stock returns compared to low-unionization firms. Furthermore, we provide evidence that high-unionization firms tend to manipulate earnings downward before covenant violations. These findings suggest that firms may strategically violate debt covenants to gain bargaining flexibility and force labor unions to make concessions in subsequent negotiations.KEYWORDS: Labor unionunion electiondebt covenantcovenant violationearnings managementJEL CLASSIFICATIONS: G31G32J51 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 http://finance.wharton.upenn.edu/~mrrobert/styled-9/styled-11/index.html.2 Covenant violation is disclosed in quarterly reports, thus the date of covenant violation disclosed in quarterly report may differ from the date when the violation actually took place. We follow Nini, Smith, and Sufi (Citation2012) and calculate the long-term stock return after covenant violations based on the disclosure date of covenant violation in quarterly reports.Additional informationNotes on contributorsGuangzi LiGuagzi Li is a professor at Institute of Finance and Banking at Chinese Academy of Social Sciences.Yili LianYili Lian is an associate professor of finance at California State University at Stanislaus.Yi ZhangYi Zhang is an associate professor of finance at Southwestern University of Finance and Economics.","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"109 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136294551","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-15DOI: 10.1080/1351847x.2023.2254345
Abdullah AlGhazali, Richard Fairchild, Yilmaz Guney
Corporate dividend policy is a puzzle, especially when considering the effects of economic and behavioural factors. We develop a theoretical analysis of corporate dividend policy in order to analyse the effects of the complex mix of managerial moral hazard, overconfidence, and myopia on managerial incentives to increase or decrease dividends. Furthermore, we consider the effect of investor irrationality that drives corporate dividend catering behaviour. We investigate how this complex mix of economic and behavioural factors is likely to affect dividend policy. Our analysis provides a deep theoretical underpinning to understanding these effects and provides a basis for future empirical research.
{"title":"Corporate dividend policy, managerial overconfidence, myopia, and investor irrationality: a complex concoction","authors":"Abdullah AlGhazali, Richard Fairchild, Yilmaz Guney","doi":"10.1080/1351847x.2023.2254345","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2254345","url":null,"abstract":"Corporate dividend policy is a puzzle, especially when considering the effects of economic and behavioural factors. We develop a theoretical analysis of corporate dividend policy in order to analyse the effects of the complex mix of managerial moral hazard, overconfidence, and myopia on managerial incentives to increase or decrease dividends. Furthermore, we consider the effect of investor irrationality that drives corporate dividend catering behaviour. We investigate how this complex mix of economic and behavioural factors is likely to affect dividend policy. Our analysis provides a deep theoretical underpinning to understanding these effects and provides a basis for future empirical research.","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135393858","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-13DOI: 10.1080/1351847x.2023.2251532
Stylianos Asimakopoulos, Chardin Wese Simen, Andrew Vivian
We are currently facing great challenges around balancing environmental and social issues with economic development. This article provides an overview and insight into these challenges from a Finance perspective. It then introduces contemporary research that address specific points of interest.
{"title":"Sustainable finance and governance: an overview","authors":"Stylianos Asimakopoulos, Chardin Wese Simen, Andrew Vivian","doi":"10.1080/1351847x.2023.2251532","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2251532","url":null,"abstract":"We are currently facing great challenges around balancing environmental and social issues with economic development. This article provides an overview and insight into these challenges from a Finance perspective. It then introduces contemporary research that address specific points of interest.","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135690280","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-13DOI: 10.1080/1351847x.2023.2256799
Marie Racine
The impact of Corporate Social Responsibility with respect to Indigenous (CSRI) initiatives and issues on financial performance was studied using several CSRI metrics, both innovated (where necessary) and pre-existing (where possible). We find that CSRI initiatives based on dollar expenditures and firm website scores are positively associated with financial performance while increase to reputation risk has a negative impact. We also find that a CSRI score can only be moderated by an overall ESG score that is substantially stronger than the CSRI metric. In a world that increasingly emphasizes the importance of ‘truth and reconciliation’ with its Indigenous populations while meeting environmental resource needs, we must seek a path that recognizes and respects Indigenous rights and cultural practices. Providing well developed, consistently measured and acceptable CSRI metrics and assessing their impact on firm financial performance is a crucial step in this reconciliation process. This paper makes important contributions to that goal.
{"title":"Indigenous corporate responsibility and financial performance","authors":"Marie Racine","doi":"10.1080/1351847x.2023.2256799","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2256799","url":null,"abstract":"The impact of Corporate Social Responsibility with respect to Indigenous (CSRI) initiatives and issues on financial performance was studied using several CSRI metrics, both innovated (where necessary) and pre-existing (where possible). We find that CSRI initiatives based on dollar expenditures and firm website scores are positively associated with financial performance while increase to reputation risk has a negative impact. We also find that a CSRI score can only be moderated by an overall ESG score that is substantially stronger than the CSRI metric. In a world that increasingly emphasizes the importance of ‘truth and reconciliation’ with its Indigenous populations while meeting environmental resource needs, we must seek a path that recognizes and respects Indigenous rights and cultural practices. Providing well developed, consistently measured and acceptable CSRI metrics and assessing their impact on firm financial performance is a crucial step in this reconciliation process. This paper makes important contributions to that goal.","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135691539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-05DOI: 10.1080/1351847x.2023.2244553
Tinashe C. Bvirindi, Ode-Ichakpa Inalegwu
This study examines the evolution of the capital structure of European firms during the global financial crisis and European debt crisis. We compare the experiences of SMEs, listed firms and private firms in different industries and investigate the role of country and institutional factors in affecting capital structure. We find that SMEs, private firms, and non-listed firms experience lower declines in leverage relative to large firms during the global financial crisis and the European debt crisis. During these crises’ periods, SMEs experience steeper declines in debt maturity, which suggests reliance on short term debt that carries high roll over risks. This behaviour is protracted for firms in the agriculture industry. Both the global financial crisis and EU debt crisis have asymmetric effects on leverage, long term debt issuance and debt maturity across different industries, and across firms of different sizes. Moreover, in countries with more developed financial systems, stronger frameworks for insolvency, resolving firm insolvency, and strong systems for shareholder suits, and director liability, SMEs experience much lower reduction in leverage and debt maturity. This finding suggests that institutional factors help attenuate adverse capital supply shocks.
{"title":"The impact of the global financial crisis and the European sovereign debt crisis on the capital structure of firms in Europe: do SMEs, and listed firms respond the same?","authors":"Tinashe C. Bvirindi, Ode-Ichakpa Inalegwu","doi":"10.1080/1351847x.2023.2244553","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2244553","url":null,"abstract":"This study examines the evolution of the capital structure of European firms during the global financial crisis and European debt crisis. We compare the experiences of SMEs, listed firms and private firms in different industries and investigate the role of country and institutional factors in affecting capital structure. We find that SMEs, private firms, and non-listed firms experience lower declines in leverage relative to large firms during the global financial crisis and the European debt crisis. During these crises’ periods, SMEs experience steeper declines in debt maturity, which suggests reliance on short term debt that carries high roll over risks. This behaviour is protracted for firms in the agriculture industry. Both the global financial crisis and EU debt crisis have asymmetric effects on leverage, long term debt issuance and debt maturity across different industries, and across firms of different sizes. Moreover, in countries with more developed financial systems, stronger frameworks for insolvency, resolving firm insolvency, and strong systems for shareholder suits, and director liability, SMEs experience much lower reduction in leverage and debt maturity. This finding suggests that institutional factors help attenuate adverse capital supply shocks.","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135254838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-05DOI: 10.1080/1351847x.2023.2247440
Sze Nie Ung, Bartosz Gebka, Robert D. J. Anderson
{"title":"An enhanced investor sentiment index*","authors":"Sze Nie Ung, Bartosz Gebka, Robert D. J. Anderson","doi":"10.1080/1351847x.2023.2247440","DOIUrl":"https://doi.org/10.1080/1351847x.2023.2247440","url":null,"abstract":"","PeriodicalId":22468,"journal":{"name":"The European Journal of Finance","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91527779","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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