Pub Date : 2026-01-03DOI: 10.1016/j.gfj.2026.101233
Tom Aabo , Viktor Raaby Jensen
CEOs matter, and beauty matters. Based on social identity theory, we argue that women and men are likely to be held to different beauty standards by the boards of directors when these boards select the new CEO. Our empirical results support our arguments. Specifically, we investigate 959 CEO turnovers in non-financial S&P 1500 firms in the period from 2008 to 2022. We find that newly appointed female CEOs are significantly more attractive than their male peers. Thus, the median female CEO is more attractive than a male CEO at the 75th percentile level. We find no indication of an economic rationale for such a biased beauty preference. When investors are informed of the new CEO, they value CEO beauty equally across the two genders (i.e., no gender bias). The discrimination by the boards of directors seems to be related to women's minority status (i.e., we get similar results for non-white candidates) rather than the sexualization of women although we cannot rule out that both may coincide. Our findings are robust and economically significant. Thus, they are important in understanding the lack of gender equality and the avenues through which women face (beauty) discrimination in the upper echelons.
{"title":"Only attractive women are welcome: Board bias and CEO selection","authors":"Tom Aabo , Viktor Raaby Jensen","doi":"10.1016/j.gfj.2026.101233","DOIUrl":"10.1016/j.gfj.2026.101233","url":null,"abstract":"<div><div>CEOs matter, and beauty matters. Based on social identity theory, we argue that women and men are likely to be held to different beauty standards by the boards of directors when these boards select the new CEO. Our empirical results support our arguments. Specifically, we investigate 959 CEO turnovers in non-financial S&P 1500 firms in the period from 2008 to 2022. We find that newly appointed female CEOs are significantly more attractive than their male peers. Thus, the median female CEO is more attractive than a male CEO at the 75th percentile level. We find no indication of an economic rationale for such a biased beauty preference. When investors are informed of the new CEO, they value CEO beauty equally across the two genders (i.e., no gender bias). The discrimination by the boards of directors seems to be related to women's minority status (i.e., we get similar results for non-white candidates) rather than the sexualization of women although we cannot rule out that both may coincide. Our findings are robust and economically significant. Thus, they are important in understanding the lack of gender equality and the avenues through which women face (beauty) discrimination in the upper echelons.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101233"},"PeriodicalIF":5.5,"publicationDate":"2026-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145977096","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 : 2026-01-03DOI: 10.1016/j.gfj.2026.101234
Guangrui Liu , Ying Fang , Jiani Yan , Ming Zhou , Zixin He
Industrial policies generate both positive and negative information effects. Existing research largely emphasizes their signaling benefits while overlooking potential adverse impacts. Using the High-Tech Enterprise Identification Policy (HTEP) as a quasi-natural experiment, this study applies a staggered difference-in-differences model to examine how industrial policy influences stock price crash risk. The findings reveal that HTEP produces an information concealment effect that heightens crash risk. This effect is most pronounced among nonstate-owned and pseudo high-tech enterprises, where controlling shareholders conceal negative information for tax arbitrage and equity transfer, further increasing risk. Channel analysis indicates that HTEP intensifies information asymmetry among external investors, amplifying market instability. Grounded in Type II agency theory, the study identifies research and development information manipulation as a new mechanism linking industrial policy to crash risk, thereby expanding the theoretical framework of stock price dynamics. These results provide empirical evidence on the information effects of industrial policy and offer policy insights to improve the design and execution of innovation-driven industrial strategies worldwide.
{"title":"Information concealment effects or signaling effect of industrial policy: Evidence from stock price crash risk","authors":"Guangrui Liu , Ying Fang , Jiani Yan , Ming Zhou , Zixin He","doi":"10.1016/j.gfj.2026.101234","DOIUrl":"10.1016/j.gfj.2026.101234","url":null,"abstract":"<div><div>Industrial policies generate both positive and negative information effects. Existing research largely emphasizes their signaling benefits while overlooking potential adverse impacts. Using the <em>High-Tech Enterprise Identification Policy</em> (HTEP) as a quasi-natural experiment, this study applies a staggered difference-in-differences model to examine how industrial policy influences stock price crash risk. The findings reveal that HTEP produces an information concealment effect that heightens crash risk. This effect is most pronounced among nonstate-owned and pseudo high-tech enterprises, where controlling shareholders conceal negative information for tax arbitrage and equity transfer, further increasing risk. Channel analysis indicates that HTEP intensifies information asymmetry among external investors, amplifying market instability. Grounded in Type II agency theory, the study identifies research and development information manipulation as a new mechanism linking industrial policy to crash risk, thereby expanding the theoretical framework of stock price dynamics. These results provide empirical evidence on the information effects of industrial policy and offer policy insights to improve the design and execution of innovation-driven industrial strategies worldwide.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101234"},"PeriodicalIF":5.5,"publicationDate":"2026-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145925163","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 : 2025-12-30DOI: 10.1016/j.gfj.2025.101231
Haneen Abedalqader , Shao-Chi Chang
This paper aims to examine how trade policy uncertainty (TPU) affects firm-specific stock price crash risk and the extent to which corporate disclosures and governance can mitigate this vulnerability. Using a global panel database of publicly listed firms from 17 countries over the period 2010–2023, we find a positive and significant relationship between TPU and stock price crash risk, suggesting that firms exposed to trade policy shocks are more vulnerable to sudden negative price movements. As a result of opacity, firms with less transparent geographical segment disclosure tend to hoard bad news, suggesting that opacity compounds this tendency. Furthermore, we investigate how segment reporting complexity, supply chain concentration, and governance mechanisms serve as moderating factors. We find that high segment reporting complexity and supply chain concentration exacerbate the TPU-crash risk relationship by increasing operational and informational opacity. The TPU-induced crash risk decreases with strong institutional ownership and enhanced analyst coverage, but increases with high information asymmetry. In light of rising global trade policy uncertainty, geographical segment disclosure, operational structure, and governance are crucial to moderating firm-level financial fragility.
{"title":"Trade policy uncertainty and stock price crash risk: The role of geographic segment disclosure","authors":"Haneen Abedalqader , Shao-Chi Chang","doi":"10.1016/j.gfj.2025.101231","DOIUrl":"10.1016/j.gfj.2025.101231","url":null,"abstract":"<div><div>This paper aims to examine how trade policy uncertainty (TPU) affects firm-specific stock price crash risk and the extent to which corporate disclosures and governance can mitigate this vulnerability. Using a global panel database of publicly listed firms from 17 countries over the period 2010–2023, we find a positive and significant relationship between TPU and stock price crash risk, suggesting that firms exposed to trade policy shocks are more vulnerable to sudden negative price movements. As a result of opacity, firms with less transparent geographical segment disclosure tend to hoard bad news, suggesting that opacity compounds this tendency. Furthermore, we investigate how segment reporting complexity, supply chain concentration, and governance mechanisms serve as moderating factors. We find that high segment reporting complexity and supply chain concentration exacerbate the TPU-crash risk relationship by increasing operational and informational opacity. The TPU-induced crash risk decreases with strong institutional ownership and enhanced analyst coverage, but increases with high information asymmetry. In light of rising global trade policy uncertainty, geographical segment disclosure, operational structure, and governance are crucial to moderating firm-level financial fragility.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101231"},"PeriodicalIF":5.5,"publicationDate":"2025-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145884277","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 : 2025-12-21DOI: 10.1016/j.gfj.2025.101229
Silu Pang, Chunlin Cheng, Yihan Han, Guihong Hua
Retail investors' green interactions—their oversight and recommendations on corporate climate risks through official interactive platforms—have become a growing informal governance mechanism as climate change gains global prominence. Drawing on social exchange theory, this study examines how such interactions between retail investors and listed firms influence corporate climate risk exposure (CRE). Using data from China's investor-firm interactive platforms covering 1798 firms from 2014 to 2022, we find that green interactions significantly reduce CRE, with stronger effects among firms exhibiting higher social responsibility conformity and larger retail investor bases. Advocacy-oriented and information-oriented messages are most effective, and their impact is amplified by firms' response quality. We identify three mechanisms behind this relationship: heightened climate risk perception, lower information transmission costs, and strengthened investor trust. These findings deepen understanding of retail investor activism in corporate climate governance and offer insights for integrating grassroots engagement into climate policy and financial regulation.
{"title":"Green interactions and corporate climate risk exposure: Evidence from China's investor-firm digital interactive platforms","authors":"Silu Pang, Chunlin Cheng, Yihan Han, Guihong Hua","doi":"10.1016/j.gfj.2025.101229","DOIUrl":"10.1016/j.gfj.2025.101229","url":null,"abstract":"<div><div>Retail investors' green interactions—their oversight and recommendations on corporate climate risks through official interactive platforms—have become a growing informal governance mechanism as climate change gains global prominence. Drawing on social exchange theory, this study examines how such interactions between retail investors and listed firms influence corporate climate risk exposure (CRE). Using data from China's investor-firm interactive platforms covering 1798 firms from 2014 to 2022, we find that green interactions significantly reduce CRE, with stronger effects among firms exhibiting higher social responsibility conformity and larger retail investor bases. Advocacy-oriented and information-oriented messages are most effective, and their impact is amplified by firms' response quality. We identify three mechanisms behind this relationship: heightened climate risk perception, lower information transmission costs, and strengthened investor trust. These findings deepen understanding of retail investor activism in corporate climate governance and offer insights for integrating grassroots engagement into climate policy and financial regulation.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101229"},"PeriodicalIF":5.5,"publicationDate":"2025-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840172","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}
This paper examines the pricing of multivariate crash risk (MCRASH), which measures the conditional probability that a stock crashes when one or more systematic risk factors crash. Using data from 48 countries between 1992 and 2021, we show that MCRASH is a robust predictor of expected stock returns. The premium is stronger in emerging markets and concentrated in cyclical industries, consistent with differences in institutional quality, earnings cyclicality, and macroeconomic exposure. We also document that cultural dimensions condition the pricing of MCRASH. Individualism and uncertainty avoidance strengthen the premium, trust dampens it, and power distance intensifies it during high-volatility states. These results highlight the state-dependent role of culture in shaping investor responses to systemic risk.
{"title":"Multivariate crash risk and worldwide stock returns","authors":"Emawtee Bissoondoyal-Bheenick, Vuong Thao Tran, Angel Zhong","doi":"10.1016/j.gfj.2025.101230","DOIUrl":"10.1016/j.gfj.2025.101230","url":null,"abstract":"<div><div>This paper examines the pricing of multivariate crash risk (MCRASH), which measures the conditional probability that a stock crashes when one or more systematic risk factors crash. Using data from 48 countries between 1992 and 2021, we show that MCRASH is a robust predictor of expected stock returns. The premium is stronger in emerging markets and concentrated in cyclical industries, consistent with differences in institutional quality, earnings cyclicality, and macroeconomic exposure. We also document that cultural dimensions condition the pricing of MCRASH. Individualism and uncertainty avoidance strengthen the premium, trust dampens it, and power distance intensifies it during high-volatility states. These results highlight the state-dependent role of culture in shaping investor responses to systemic risk.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101230"},"PeriodicalIF":5.5,"publicationDate":"2025-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145836806","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 : 2025-12-18DOI: 10.1016/j.gfj.2025.101228
Yuanqi Zhou , Ya Zhang , Zhenghua Shuai , Yu-en Lin
Share pledging is not strictly regulated in emerging markets, making it into a mechanism for controlling shareholders to cash out financing. Using data from Chinese listed companies (2008–2020), this study examines the relationship between controlling shareholder share pledging and corporate investment efficiency by incorporating the reinvestment behavior of pledged funds into an analytical framework. Results reveal a significant negative correlation between share pledging and investment efficiency by reducing information transparency, weakening corporate social responsibility(CSR), and damaging the effectiveness of internal control. However, pledged fund inflow can alleviate financing constraints and function as a reservoir to improve investment efficiency. When pledged funds flow into the enterprise, the reservoir effect becomes dominant, particularly in firms experiencing underinvestment issues. In this scenario, share pledges alleviate financing constraints, improve corporate investment efficiency. In contrast, when pledged funds flow out of the enterprise, weakened corporate governance from equity pledges triggers the tunneling effect, which exacerbates agency conflicts and reduces investment efficiency. Further analysis reveals that the tunneling effect is weaker for companies with high audit quality, strong media attention, and check-and-balance ownership. These findings, which remain robust after a series of tests including instrumental variable method(IV), propensity score matching(PSM), and alternative variable measurements, contribute to understanding share pledges' actual impact and mechanisms on firm-level resource allocation, yielding significant theoretical and practical insights for improving corporate governance and regulatory systems in emerging markets.
{"title":"Share pledging by controlling shareholders and firm investment efficiency: Evidence from China","authors":"Yuanqi Zhou , Ya Zhang , Zhenghua Shuai , Yu-en Lin","doi":"10.1016/j.gfj.2025.101228","DOIUrl":"10.1016/j.gfj.2025.101228","url":null,"abstract":"<div><div>Share pledging is not strictly regulated in emerging markets, making it into a mechanism for controlling shareholders to cash out financing. Using data from Chinese listed companies (2008–2020), this study examines the relationship between controlling shareholder share pledging and corporate investment efficiency by incorporating the reinvestment behavior of pledged funds into an analytical framework. Results reveal a significant negative correlation between share pledging and investment efficiency by reducing information transparency, weakening corporate social responsibility(CSR), and damaging the effectiveness of internal control. However, pledged fund inflow can alleviate financing constraints and function as a reservoir to improve investment efficiency. When pledged funds flow into the enterprise, the <em>reservoir effect</em> becomes dominant, particularly in firms experiencing underinvestment issues. In this scenario, share pledges alleviate financing constraints, improve corporate investment efficiency. In contrast, when pledged funds flow out of the enterprise, weakened corporate governance from equity pledges triggers the tunneling effect, which exacerbates agency conflicts and reduces investment efficiency. Further analysis reveals that the <em>tunneling effect</em> is weaker for companies with high audit quality, strong media attention, and check-and-balance ownership. These findings, which remain robust after a series of tests including instrumental variable method(IV), propensity score matching(PSM), and alternative variable measurements, contribute to understanding share pledges' actual impact and mechanisms on firm-level resource allocation, yielding significant theoretical and practical insights for improving corporate governance and regulatory systems in emerging markets.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101228"},"PeriodicalIF":5.5,"publicationDate":"2025-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840171","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 : 2025-12-13DOI: 10.1016/j.gfj.2025.101227
Zhuhua Jiang , Oguzhan Ozcelebi , Zheng Lü , Rim El Khoury , Seong-Min Yoon
This study examines how financial uncertainty shocks shape global bond funds’ return and volatility dynamics focusing on four key indicators: equity market volatility (VIX), bond market volatility (MOVE), central bank digital currency uncertainty (CBDCU) and geopolitical risk (GPR). Using weekly data from 2015 to 2024 across four major global bond funds (BNDX, TPINX, MGBIX and FGBFX), we employ a multi-method empirical framework that integrates TVP-SV-VAR, BEKK-multivariate generalised autoregressive conditional heteroscedasticity (MGARCH), CCC-MGARCH and wavelet quantile regression to capture time variation, volatility spillovers and distributional effects. The findings reveal heterogeneous and asymmetric responses to uncertainty shocks wherein MOVE and GPR exert persistent volatility effects, VIX generates short-term flight-to-safety flows and CBDCU introduces asymmetric risks through safe-haven dynamics and disintermediation. Fund behaviour is highly conditional—BNDX demonstrates temporary safe-haven behaviour under digital monetary shocks, MGBIX provides long-term diversification benefits, FGBFX serves as a conditional safe haven and TPINX disproportionately transmits shocks due to its emerging market (EM)/high-yield exposure. These results challenge the perception of global bond funds as uniformly defensive assets and underscore the importance of aligning fund selection with uncertainty source and investment horizon. Beyond investment insights, this study has relevant policy implications, indicating how CBDCU can be incorporated into regulatory stress tests, EM-focused funds require closer macro-prudential monitoring and policymakers should adapt liquidity and duration risk frameworks to evolving sources of systemic uncertainty.
{"title":"The impact of financial uncertainty on the price dynamics of global bond funds","authors":"Zhuhua Jiang , Oguzhan Ozcelebi , Zheng Lü , Rim El Khoury , Seong-Min Yoon","doi":"10.1016/j.gfj.2025.101227","DOIUrl":"10.1016/j.gfj.2025.101227","url":null,"abstract":"<div><div>This study examines how financial uncertainty shocks shape global bond funds’ return and volatility dynamics focusing on four key indicators: equity market volatility (VIX), bond market volatility (MOVE), central bank digital currency uncertainty (CBDCU) and geopolitical risk (GPR). Using weekly data from 2015 to 2024 across four major global bond funds (BNDX, TPINX, MGBIX and FGBFX), we employ a multi-method empirical framework that integrates TVP-SV-VAR, BEKK-multivariate generalised autoregressive conditional heteroscedasticity (MGARCH), CCC-MGARCH and wavelet quantile regression to capture time variation, volatility spillovers and distributional effects. The findings reveal heterogeneous and asymmetric responses to uncertainty shocks wherein MOVE and GPR exert persistent volatility effects, VIX generates short-term flight-to-safety flows and CBDCU introduces asymmetric risks through safe-haven dynamics and disintermediation. Fund behaviour is highly conditional—BNDX demonstrates temporary safe-haven behaviour under digital monetary shocks, MGBIX provides long-term diversification benefits, FGBFX serves as a conditional safe haven and TPINX disproportionately transmits shocks due to its emerging market (EM)/high-yield exposure. These results challenge the perception of global bond funds as uniformly defensive assets and underscore the importance of aligning fund selection with uncertainty source and investment horizon. Beyond investment insights, this study has relevant policy implications, indicating how CBDCU can be incorporated into regulatory stress tests, EM-focused funds require closer macro-prudential monitoring and policymakers should adapt liquidity and duration risk frameworks to evolving sources of systemic uncertainty.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101227"},"PeriodicalIF":5.5,"publicationDate":"2025-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145790499","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 : 2025-12-02DOI: 10.1016/j.gfj.2025.101226
Weihan Li , Jin E. Zhang , Xinfeng Ruan , Pakorn Aschakulporn
This study aims to deepen the understanding of the Rare Disaster Concern Index () by redefining its concept, developing its exact model within the Gram–Charlier density, and constructing its time series to enhance its theoretical foundation and numerical application in capturing extreme market risks. Through comparative analysis with conventional indices across various term structures, we uncover the capability of the in reflecting higher-order risks in financial markets. Our findings demonstrate the heightened sensitivity of the to extreme market movements, especially within the left lower range, emphasizing its importance in strategic risk management and investment decision-making.
{"title":"The rare disaster concern index: RIX","authors":"Weihan Li , Jin E. Zhang , Xinfeng Ruan , Pakorn Aschakulporn","doi":"10.1016/j.gfj.2025.101226","DOIUrl":"10.1016/j.gfj.2025.101226","url":null,"abstract":"<div><div>This study aims to deepen the understanding of the Rare Disaster Concern Index (<span><math><mrow><mi>R</mi><mi>I</mi><mi>X</mi></mrow></math></span>) by redefining its concept, developing its exact model within the Gram–Charlier density, and constructing its time series to enhance its theoretical foundation and numerical application in capturing extreme market risks. Through comparative analysis with conventional indices across various term structures, we uncover the capability of the <span><math><mrow><mi>R</mi><mi>I</mi><mi>X</mi></mrow></math></span> in reflecting higher-order risks in financial markets. Our findings demonstrate the heightened sensitivity of the <span><math><mrow><mi>R</mi><mi>I</mi><mi>X</mi></mrow></math></span> to extreme market movements, especially within the left lower range, emphasizing its importance in strategic risk management and investment decision-making.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101226"},"PeriodicalIF":5.5,"publicationDate":"2025-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145684918","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 : 2025-11-28DOI: 10.1016/j.gfj.2025.101224
Cheng Zhang , Menghan Li , Zhuoer Yang , Cheng Liu
This study examines how retail investors' climate attention influences corporate green innovation using data from Chinese A-share listed firms from 2013 to 2023. We construct a novel measure of climate attention referencing investor interaction platforms and a climate-related dictionary, which captures firm-level retail investors' climate attention more precisely than existing search-based measures. Empirical results reveal that strong climate attention from investors considerably enhances the quantity and quality of corporate green innovation. The mechanism analysis reveals that this effect operates by boosting managerial awareness, media focus, and analyst coverage of climate-related issues. Notably, we further demonstrate that CEOs' green experience constitutes a key boundary condition. When CEOs lack such experience, investor attention has a more prominent influence on motivating green innovation. These findings demonstrate that retail investors are a unique monitoring force and they underscore the importance of managerial backgrounds in shaping firms' responses to climate change.
{"title":"Measuring climate attention from investor queries: How textual signals drive green innovation","authors":"Cheng Zhang , Menghan Li , Zhuoer Yang , Cheng Liu","doi":"10.1016/j.gfj.2025.101224","DOIUrl":"10.1016/j.gfj.2025.101224","url":null,"abstract":"<div><div>This study examines how retail investors' climate attention influences corporate green innovation using data from Chinese A-share listed firms from 2013 to 2023. We construct a novel measure of climate attention referencing investor interaction platforms and a climate-related dictionary, which captures firm-level retail investors' climate attention more precisely than existing search-based measures. Empirical results reveal that strong climate attention from investors considerably enhances the quantity and quality of corporate green innovation. The mechanism analysis reveals that this effect operates by boosting managerial awareness, media focus, and analyst coverage of climate-related issues. Notably, we further demonstrate that CEOs' green experience constitutes a key boundary condition. When CEOs lack such experience, investor attention has a more prominent influence on motivating green innovation. These findings demonstrate that retail investors are a unique monitoring force and they underscore the importance of managerial backgrounds in shaping firms' responses to climate change.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101224"},"PeriodicalIF":5.5,"publicationDate":"2025-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685473","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 : 2025-11-27DOI: 10.1016/j.gfj.2025.101223
WeiWei Li , Prasad Padmanabhan , Chia-Hsing Huang
This paper aims to investigate how climate change risks affect firms’ financing and investment decisions. Using annual data from Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges from 2007 to 2021, this study finds a statistically significant positive relationship between firm-level climate risk and asset-liability maturity mismatches, even after multiple robustness tests. Climate risks heighten mismatches by tightening financial constraints, worsening information asymmetry between insiders and outsiders, and increasing environmental, social, and governance-related investments. The effect is stronger among firms with weak banking relationships, no political connections, fewer institutional investors, smaller size, nonstate ownership, heavy pollution output, and higher proportions of female managers. Results further show that transition (policy) risks—rather than physical risks—drive the increase in mismatches. Finally, the 2015 Paris Climate Agreement appears to have weakened this linkage.
{"title":"Climate risk and asset-liability maturity mismatches","authors":"WeiWei Li , Prasad Padmanabhan , Chia-Hsing Huang","doi":"10.1016/j.gfj.2025.101223","DOIUrl":"10.1016/j.gfj.2025.101223","url":null,"abstract":"<div><div>This paper aims to investigate how climate change risks affect firms’ financing and investment decisions. Using annual data from Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges from 2007 to 2021, this study finds a statistically significant positive relationship between firm-level climate risk and asset-liability maturity mismatches, even after multiple robustness tests. Climate risks heighten mismatches by tightening financial constraints, worsening information asymmetry between insiders and outsiders, and increasing environmental, social, and governance-related investments. The effect is stronger among firms with weak banking relationships, no political connections, fewer institutional investors, smaller size, nonstate ownership, heavy pollution output, and higher proportions of female managers. Results further show that transition (policy) risks—rather than physical risks—drive the increase in mismatches. Finally, the 2015 Paris Climate Agreement appears to have weakened this linkage.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"69 ","pages":"Article 101223"},"PeriodicalIF":5.5,"publicationDate":"2025-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685472","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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