Pub Date : 2025-03-10DOI: 10.1016/j.bir.2025.03.002
Ali Haruna , Wissal Sahel , Muhamadu Awal Kindzeka Wirajing , Poutong Rais Herman
This study examines the effects of Islamic finance on the resilience of Cameroonian SMEs during the COVID-19 pandemic and the Russia-Ukraine war. Analyzing data from 1358 SMEs using a multivariate probit model, we find that Islamic finance significantly boosts strategies like online marketing, new raw material sourcing, and product development. Mediation analysis shows these effects are direct and mediated through increased R&D expenditure. The results highlight Islamic finance's role in enhancing SME resilience and urge policymakers to improve the accessibility and adoption of Islamic finance products. This can be achieved by integrating Islamic finance education into SME support programs and supporting the development of Islamic finance operations to foster entrepreneurship and economic resilience.
{"title":"Steadfast in crisis: Can Islamic finance enhance Cameroonian SMEs’ resilience strategies against the COVID-19 pandemic and the Russia/Ukraine war?","authors":"Ali Haruna , Wissal Sahel , Muhamadu Awal Kindzeka Wirajing , Poutong Rais Herman","doi":"10.1016/j.bir.2025.03.002","DOIUrl":"10.1016/j.bir.2025.03.002","url":null,"abstract":"<div><div>This study examines the effects of Islamic finance on the resilience of Cameroonian SMEs during the COVID-19 pandemic and the Russia-Ukraine war. Analyzing data from 1358 SMEs using a multivariate probit model, we find that Islamic finance significantly boosts strategies like online marketing, new raw material sourcing, and product development. Mediation analysis shows these effects are direct and mediated through increased R&D expenditure. The results highlight Islamic finance's role in enhancing SME resilience and urge policymakers to improve the accessibility and adoption of Islamic finance products. This can be achieved by integrating Islamic finance education into SME support programs and supporting the development of Islamic finance operations to foster entrepreneurship and economic resilience.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 3","pages":"Pages 633-647"},"PeriodicalIF":6.3,"publicationDate":"2025-03-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143859790","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 : 2025-03-08DOI: 10.1016/j.bir.2025.03.001
Umer Sahil Maqsood , Qian Li , Hadi Hussain , Murtaza Hussain , R.M. Ammar Zahid
The growing compensation disparity between CEOs and employees has become a global concern, underscoring the need for regulatory measures to ensure fair and equitable remuneration practices. Drawing insights from China's government regulation of CEO compensation (GRCC) for state-owned enterprises (SOEs), this study investigates the impact of GRCC on fraudulent activities within SOEs. Using data from China's A-share listed firms between 2010 and 2022 and applying logit regression models within a difference-in-difference framework, our empirical findings show a significant reduction in fraud following the implementation of GRCC. Additionally, the effect of GRCC is more pronounced in local SOEs compared to their central counterparts. Channel analysis reveals that GRCC promotes CEO political promotion, improves the quality of internal controls, and alleviates financial constraints within firms, which collectively reduce fraudulent activities. The results remain robust across various endogeneity tests, parallel trend assumptions, propensity score matching, placebo tests and alternative variable measurements.
{"title":"Regulating CEO compensation: A remedy for corporate misconducts in China's state-owned enterprises","authors":"Umer Sahil Maqsood , Qian Li , Hadi Hussain , Murtaza Hussain , R.M. Ammar Zahid","doi":"10.1016/j.bir.2025.03.001","DOIUrl":"10.1016/j.bir.2025.03.001","url":null,"abstract":"<div><div>The growing compensation disparity between CEOs and employees has become a global concern, underscoring the need for regulatory measures to ensure fair and equitable remuneration practices. Drawing insights from China's government regulation of CEO compensation (GRCC) for state-owned enterprises (SOEs), this study investigates the impact of GRCC on fraudulent activities within SOEs. Using data from China's A-share listed firms between 2010 and 2022 and applying logit regression models within a difference-in-difference framework, our empirical findings show a significant reduction in fraud following the implementation of GRCC. Additionally, the effect of GRCC is more pronounced in local SOEs compared to their central counterparts. Channel analysis reveals that GRCC promotes CEO political promotion, improves the quality of internal controls, and alleviates financial constraints within firms, which collectively reduce fraudulent activities. The results remain robust across various endogeneity tests, parallel trend assumptions, propensity score matching, placebo tests and alternative variable measurements.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 3","pages":"Pages 617-632"},"PeriodicalIF":6.3,"publicationDate":"2025-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143860093","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 : 2025-03-02DOI: 10.1016/j.bir.2025.02.008
Serdar Yaman , Mert Baran Tuncel
This paper explores the benefits of sectoral diversification in equity investments, comparing traditional and modern portfolio management frameworks for investors with different risk perceptions. We use monthly price data on 200 companies, listed on the Borsa Istanbul, for the period January 2019–August 2024. The analysis employs an equal-weighted (EW) strategy, grounded in traditional portfolio theory, and strategies for risk-averse investors (RAI) and risk-tolerant investors (RTI), based on modern portfolio theory. We find that sectoral diversification can mitigate risks associated with poor performance in a specific sector. Modern portfolio management, which uses both intra- and inter-sectoral diversification, outperforms traditional methods. Our results show that the impact of sectoral diversification on utility maximization differs significantly by the type of investor. For RAI, sectoral diversification provides minimal benefits for maximizing utility, whereas, for RTI, it offers significant advantages. These conclusions are reached based on 11 risk-adjusted performance measurement and a Value-at-Risk analysis.
{"title":"The benefits of sectoral diversification for investors with different risk perceptions","authors":"Serdar Yaman , Mert Baran Tuncel","doi":"10.1016/j.bir.2025.02.008","DOIUrl":"10.1016/j.bir.2025.02.008","url":null,"abstract":"<div><div>This paper explores the benefits of sectoral diversification in equity investments, comparing traditional and modern portfolio management frameworks for investors with different risk perceptions. We use monthly price data on 200 companies, listed on the Borsa Istanbul, for the period January 2019–August 2024. The analysis employs an equal-weighted (EW) strategy, grounded in traditional portfolio theory, and strategies for risk-averse investors (RAI) and risk-tolerant investors (RTI), based on modern portfolio theory. We find that sectoral diversification can mitigate risks associated with poor performance in a specific sector. Modern portfolio management, which uses both intra- and inter-sectoral diversification, outperforms traditional methods. Our results show that the impact of sectoral diversification on utility maximization differs significantly by the type of investor. For RAI, sectoral diversification provides minimal benefits for maximizing utility, whereas, for RTI, it offers significant advantages. These conclusions are reached based on 11 risk-adjusted performance measurement and a Value-at-Risk analysis.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 3","pages":"Pages 597-616"},"PeriodicalIF":6.3,"publicationDate":"2025-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143859789","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 : 2025-03-01DOI: 10.1016/j.bir.2025.01.001
Hasan Kazak , Walid Mensi , Mehmet Akif Gunduz , Abdullah Kilicarslan , Ahmet Tayfur Akcan
This study investigates the relationship between gold prices, agricultural commodity prices (rice, flour, bean, chickpea, lentil, and sugar), and Turkish stock markets. Using the Fourier Toda-Yamamoto causality test and wavelet coherency approach, we find that gold prices significantly influence agricultural commodity prices, emphasizing gold's pivotal role in agricultural market dynamics. Portfolio diversification incorporating gold and agricultural commodities mitigates risks, enhancing portfolio resilience. The BIST100 index and agricultural spot commodity prices exhibit differential impacts depending on specific products. Wavelet coherence analysis reveals time-varying dependencies, suggesting investors leverage their investments in BIST100 and gold for diversification with agricultural commodities. Our findings present agricultural commodities as alternative investment instruments, subject to favorable market conditions. The portfolio analysis uncovers nuanced relationships between commodities and indices, guiding investors in diversification and real asset investments. This research contributes novel perspectives, emphasizing the viability of agricultural commodities in diversified portfolios.
{"title":"Connections between gold, main agricultural commodities, and Turkish stock markets","authors":"Hasan Kazak , Walid Mensi , Mehmet Akif Gunduz , Abdullah Kilicarslan , Ahmet Tayfur Akcan","doi":"10.1016/j.bir.2025.01.001","DOIUrl":"10.1016/j.bir.2025.01.001","url":null,"abstract":"<div><div>This study investigates the relationship between gold prices, agricultural commodity prices (rice, flour, bean, chickpea, lentil, and sugar), and Turkish stock markets. Using the Fourier Toda-Yamamoto causality test and wavelet coherency approach, we find that gold prices significantly influence agricultural commodity prices, emphasizing gold's pivotal role in agricultural market dynamics. Portfolio diversification incorporating gold and agricultural commodities mitigates risks, enhancing portfolio resilience. The BIST100 index and agricultural spot commodity prices exhibit differential impacts depending on specific products. Wavelet coherence analysis reveals time-varying dependencies, suggesting investors leverage their investments in BIST100 and gold for diversification with agricultural commodities. Our findings present agricultural commodities as alternative investment instruments, subject to favorable market conditions. The portfolio analysis uncovers nuanced relationships between commodities and indices, guiding investors in diversification and real asset investments. This research contributes novel perspectives, emphasizing the viability of agricultural commodities in diversified portfolios.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 296-310"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.bir.2025.01.010
Şerife Akıncı Tok , Savaş Tarkun
This study analyzes the dynamic connectedness between the Baltic Dirty Tanker Index (BDTI) and sector indexes in the stock exchanges of the BRIC countries, focusing on the chemical, oil, and raw materials sectors. Using daily data from January 1, 2015, to September 30, 2024, the analysis reveals significant pairwise relationships, highlighting the sensitivity of these sector indexes to shipping costs. The findings indicate that during periods of heightened market volatility, the BDTI has substantial influence, especially on Russia's chemical and India's oil and gas sectors. These results suggest that geopolitical risks and market uncertainty can significantly amplify interdependence. Based on these insights, proactive policies aimed at stabilizing shipping costs and improving cooperation among the BRIC countries are recommended to mitigate the impact of unexpected increases in freight rates. This study offers valuable information for policy makers, investors, and industry representatives for strengthening risk management strategies in shipping and logistics.
{"title":"Dynamic dependence between sectoral indexes of BRIC countries and the baltic dirty tanker index: An investigation using the generalized R2 approach","authors":"Şerife Akıncı Tok , Savaş Tarkun","doi":"10.1016/j.bir.2025.01.010","DOIUrl":"10.1016/j.bir.2025.01.010","url":null,"abstract":"<div><div>This study analyzes the dynamic connectedness between the Baltic Dirty Tanker Index (BDTI) and sector indexes in the stock exchanges of the BRIC countries, focusing on the chemical, oil, and raw materials sectors. Using daily data from January 1, 2015, to September 30, 2024, the analysis reveals significant pairwise relationships, highlighting the sensitivity of these sector indexes to shipping costs. The findings indicate that during periods of heightened market volatility, the BDTI has substantial influence, especially on Russia's chemical and India's oil and gas sectors. These results suggest that geopolitical risks and market uncertainty can significantly amplify interdependence. Based on these insights, proactive policies aimed at stabilizing shipping costs and improving cooperation among the BRIC countries are recommended to mitigate the impact of unexpected increases in freight rates. This study offers valuable information for policy makers, investors, and industry representatives for strengthening risk management strategies in shipping and logistics.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 265-274"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.bir.2025.01.004
Hüseyin Kaya , Yasir Küçükşahin , Mücahit Çitil
In this study, we investigate the impact of geopolitical risks on financial fragility of firms across 40 countries in the period from 1990 to 2022. The Altman Z-Score is used as an indicator of financial fragility, while the Geopolitical Risk Index is employed as a measure of geopolitical risk. The analysis includes firm-specific indicators and macroeconomic factors from a novel panel dataset. We use panel fixed-effect estimation method and employ system GMM for robustness check. We also examine the relationship according to three different income level groups of countries. The results reveal that geopolitical risks significantly increase the financial fragility of firms, and this effect is stronger in upper middle-income countries. Along with macroeconomic environment and firm characteristics, firms’ heightened sensitivity to geopolitical instability emphasizes the essential role of geopolitical stability in maintaining firm financial health.
{"title":"Impact of geopolitical risk on firm financial fragility: International evidence from listed companies","authors":"Hüseyin Kaya , Yasir Küçükşahin , Mücahit Çitil","doi":"10.1016/j.bir.2025.01.004","DOIUrl":"10.1016/j.bir.2025.01.004","url":null,"abstract":"<div><div>In this study, we investigate the impact of geopolitical risks on financial fragility of firms across 40 countries in the period from 1990 to 2022. The Altman Z-Score is used as an indicator of financial fragility, while the Geopolitical Risk Index is employed as a measure of geopolitical risk. The analysis includes firm-specific indicators and macroeconomic factors from a novel panel dataset. We use panel fixed-effect estimation method and employ system GMM for robustness check. We also examine the relationship according to three different income level groups of countries. The results reveal that geopolitical risks significantly increase the financial fragility of firms, and this effect is stronger in upper middle-income countries. Along with macroeconomic environment and firm characteristics, firms’ heightened sensitivity to geopolitical instability emphasizes the essential role of geopolitical stability in maintaining firm financial health.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 286-295"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The potential risks associated with controlling shareholders' equity pledges pose significant challenges to capital market stability and development. Therefore, effective mechanisms to constrain equity pledges have become a key focus of scholarly investigation. This study examines the impact of common institutional ownership on controlling shareholders’ equity-pledging behavior using data from Chinese A-share listed firms between 2010 and 2021. The findings reveal that common institutional ownership significantly reduces equity-pledging activities among controlling shareholders. This relationship is robust across various tests, including the Heckman two-step model and instrumental variable approach. Mechanism analysis suggests that common institutional ownership influences equity pledging mainly through scale effects, board appointments, and exit threats. Moreover, the effect is stronger when long-term independent institutional investors are involved. These findings contribute to the literature by highlighting factors influencing equity pledges and showing how common institutional ownership reduces the risks associated with controlling shareholders' equity pledges.
{"title":"Can common institutional ownership constrain the equity pledges of controlling shareholders? Evidence from Chinese listed companies","authors":"Fangfang Zhou , Lianghua Chen , Libin Zhao , Xiangfei Fu","doi":"10.1016/j.bir.2025.01.008","DOIUrl":"10.1016/j.bir.2025.01.008","url":null,"abstract":"<div><div>The potential risks associated with controlling shareholders' equity pledges pose significant challenges to capital market stability and development. Therefore, effective mechanisms to constrain equity pledges have become a key focus of scholarly investigation. This study examines the impact of common institutional ownership on controlling shareholders’ equity-pledging behavior using data from Chinese A-share listed firms between 2010 and 2021. The findings reveal that common institutional ownership significantly reduces equity-pledging activities among controlling shareholders. This relationship is robust across various tests, including the Heckman two-step model and instrumental variable approach. Mechanism analysis suggests that common institutional ownership influences equity pledging mainly through scale effects, board appointments, and exit threats. Moreover, the effect is stronger when long-term independent institutional investors are involved. These findings contribute to the literature by highlighting factors influencing equity pledges and showing how common institutional ownership reduces the risks associated with controlling shareholders' equity pledges.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 311-322"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.bir.2025.01.003
Xin Xiang , Xu He
Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a sample of firms that are simultaneously listed on the Chinese A-share market and the Hong Kong Stock Exchange, the study finds that cross-listed firms have more green patent applications, patent grants, and citations than non-cross-listed firms. The transmission mechanisms suggest that cross-listed firms are motivated by foreign investors’ expectations of sustainable growth to engage in green innovation. Furthermore, in developed capital markets, high-quality firms can receive capital at low costs and use it to support valuable green innovation. As a result, cross-listed firms demonstrate better environmental performance after cross-listing, and green innovation products (patents) enable cross-listed firms to improve their financial performance. Overall, we establish a relationship between cross-listing and green innovation and highlight a new factor that leads firms to undertake valuable green innovation.
{"title":"Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence","authors":"Xin Xiang , Xu He","doi":"10.1016/j.bir.2025.01.003","DOIUrl":"10.1016/j.bir.2025.01.003","url":null,"abstract":"<div><div>Green innovation is a costly and risky process that enables firms to improve their energy efficiency and maintain sustainable growth. In this study, we investigate whether cross-listing shares in developed markets encourages firms from developing markets to engage in green innovation. By analyzing a sample of firms that are simultaneously listed on the Chinese A-share market and the Hong Kong Stock Exchange, the study finds that cross-listed firms have more green patent applications, patent grants, and citations than non-cross-listed firms. The transmission mechanisms suggest that cross-listed firms are motivated by foreign investors’ expectations of sustainable growth to engage in green innovation. <span>Furthermore</span>, in developed capital markets, high-quality firms can receive capital at low costs and use it to support valuable green innovation. As a result, cross-listed firms demonstrate better environmental performance after cross-listing, and green innovation products (patents) enable cross-listed firms to improve their financial performance. Overall, we establish a relationship between cross-listing and green innovation and highlight a new factor that leads firms to undertake valuable green innovation.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 323-336"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510011","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.bir.2025.01.005
Pedro Piccoli
In this paper, I document that investor attention negatively predicts betting against beta returns. Using Google Search Volumes toward US market indices as my proxy to attention, I find that this relation holds after controlling for competitive factors and different search terminologies and in all the other G7 countries. The results also indicate that investor attention presents a unique capacity to explain future betting against beta (BAB) performance that is not shared by other famous variables, such as liquidity constraints, sentiment, lottery demand or volatility. On aggregate, the findings suggest that individual investors play a relevant role on BAB performance.
{"title":"When to bet against beta? Ask Google","authors":"Pedro Piccoli","doi":"10.1016/j.bir.2025.01.005","DOIUrl":"10.1016/j.bir.2025.01.005","url":null,"abstract":"<div><div>In this paper, I document that investor attention negatively predicts betting against beta returns. Using Google Search Volumes toward US market indices as my proxy to attention, I find that this relation holds after controlling for competitive factors and different search terminologies and in all the other G7 countries. The results also indicate that investor attention presents a unique capacity to explain future betting against beta (BAB) performance that is not shared by other famous variables, such as liquidity constraints, sentiment, lottery demand or volatility. On aggregate, the findings suggest that individual investors play a relevant role on BAB performance.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 374-387"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510014","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.bir.2025.01.006
Shan Jin, Christopher Gan, Zhaohua Li
This study uses a novel measure of climate change exposure at the firm level to investigate the impact of climate change on the value of Asia-Pacific non-financial firms. We examine whether increased carbon disclosure mitigates this impact. The findings reveal that a one-standard-deviation increase in climate change exposure reduces firm value by 4.14%, with this decline primarily driven by climate change-related opportunities and regulatory shock exposure. However, a higher level of carbon transparency significantly mitigates the negative effects of climate change exposure on firm value. Our heterogeneity analysis reveals that the moderating role of carbon transparency is more pronounced among firms operating in environments of lower institutional quality. These findings offer useful practical insights that can help policymakers and governance bodies design effective environmental disclosure regulations and robust institutional frameworks to reduce the adverse effects of climate change exposure on firm value.
{"title":"Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency","authors":"Shan Jin, Christopher Gan, Zhaohua Li","doi":"10.1016/j.bir.2025.01.006","DOIUrl":"10.1016/j.bir.2025.01.006","url":null,"abstract":"<div><div>This study uses a novel measure of climate change exposure at the firm level to investigate the impact of climate change on the value of Asia-Pacific non-financial firms. We examine whether increased carbon disclosure mitigates this impact. The findings reveal that a one-standard-deviation increase in climate change exposure reduces firm value by 4.14%, with this decline primarily driven by climate change-related opportunities and regulatory shock exposure. However, a higher level of carbon transparency significantly mitigates the negative effects of climate change exposure on firm value. Our heterogeneity analysis reveals that the moderating role of carbon transparency is more pronounced among firms operating in environments of lower institutional quality. These findings offer useful practical insights that can help policymakers and governance bodies design effective environmental disclosure regulations and robust institutional frameworks to reduce the adverse effects of climate change exposure on firm value.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 360-373"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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