Global Finance Journal最新文献

英文中文

Balancing the books: The role of energy-related uncertainty in corporate leverage

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2025-01-17 DOI: 10.1016/j.gfj.2025.101077

Xinhui Huang , Lukai Yang

This study explores the influence of energy-related uncertainty (EUI) on corporate leverage. Using a novel and comprehensive uncertainty index regarding energy sectors, we find compelling evidence that firms adopt conservative financing strategies during uncertainty times as both book- and market-leverage decreases in response to heightened EUI. We determine that the elevated cost of borrowing driven by EUI is a possible mechanism deterring firms from debt financing, thereby reducing corporate leverage. Furthermore, the impact of EUI is notably pronounced for short-term leverage as opposed to long-term leverage. Cross-sectionally, we observe that the negative connection between EUI and corporate leverage is mitigated by state ownership, indicating that firms are more willing to take on debt with government backing. Furthermore, our results withstand a series of robustness checks, affirming the credibility of our findings. Overall, our study holds extensive implications for companies, stakeholders, and policymakers due to the prevailing yet impactful nature of energy uncertainty.

引用次数: 0

Asymmetric time-frequency risk spillovers between the Fourth Industrial Revolution assets and commodity futures: Is economic policy uncertainty a driving factor?

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2025-01-11 DOI: 10.1016/j.gfj.2025.101076

Xianfang Su , Yachao Zhao

This study examines the asymmetric time-frequency risk spillovers between the Fourth Industrial Revolution assets and commodity futures by utilizing a time-varying parameter vector autoregressive connectedness approach. The results indicate that financial technology stocks, artificial intelligence stocks, and blockchain stocks are net transmitters of spillovers in relation to energy, metal, and agriculture futures. Moreover, the spillover effect is asymmetric, with spillovers triggered by bad news dominating those sourced from good news. Also, risk spillovers are exceedingly intense in the short term in comparison with the medium term and long term. Further dynamic analyses show that the outbreak of the COVID-19 pandemic and the Russia-Ukraine conflict substantially enhanced risk spillovers. Finally, this study finds that economic policy uncertainty has a significantly positive impact on the asymmetric time-frequency spillover effects, indicating its role as a driving factor of spillover effects. These findings have great significance for investors and policymakers.

{"title":"Asymmetric time-frequency risk spillovers between the Fourth Industrial Revolution assets and commodity futures: Is economic policy uncertainty a driving factor?","authors":"Xianfang Su , Yachao Zhao","doi":"10.1016/j.gfj.2025.101076","DOIUrl":"10.1016/j.gfj.2025.101076","url":null,"abstract":"<div><div>This study examines the asymmetric time-frequency risk spillovers between the Fourth Industrial Revolution assets and commodity futures by utilizing a time-varying parameter vector autoregressive connectedness approach. The results indicate that financial technology stocks, artificial intelligence stocks, and blockchain stocks are net transmitters of spillovers in relation to energy, metal, and agriculture futures. Moreover, the spillover effect is asymmetric, with spillovers triggered by bad news dominating those sourced from good news. Also, risk spillovers are exceedingly intense in the short term in comparison with the medium term and long term. Further dynamic analyses show that the outbreak of the COVID-19 pandemic and the Russia-Ukraine conflict substantially enhanced risk spillovers. Finally, this study finds that economic policy uncertainty has a significantly positive impact on the asymmetric time-frequency spillover effects, indicating its role as a driving factor of spillover effects. These findings have great significance for investors and policymakers.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"64 ","pages":"Article 101076"},"PeriodicalIF":5.5,"publicationDate":"2025-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143169333","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}

引用次数: 0

Do R&D subsidies promote or inhibit firm R&D collaboration? An empirical analysis on the role of risk tolerance in China

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2025-01-07 DOI: 10.1016/j.gfj.2025.101075

Duan Liu , Tingfang Zhang , Yuntian Jiang , Hong Wan

Previous studies on behavioral additionality theory suggest that government R&D subsidies can positively influence R&D collaboration by enhancing firms' learning capabilities. However, few studies address the potential impact of R&D subsidies on firms' risk tolerance for innovation uncertainty. This study examines how government R&D subsidies influence R&D collaboration, using a sample of Chinese firms listed on the Growth Enterprises Market between 2009 and 2020. Our findings reveal a negative behavioral additionality of R&D subsidies on collaboration: subsidies increase firms' risk tolerance for innovation uncertainty, motivating them to pursue independent innovations and, in turn, reducing their engagement in R&D collaboration. Heterogeneity analysis further shows that this inhibitory effect of R&D subsidies is more pronounced in firms with lower financial constraints, in more competitive industries, and in non-state-owned enterprises.

引用次数: 0

Exploring a Quasi-absolute priority rule for pay-outs to operational creditors in bankruptcy resolutions: Evidence from India

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2025-01-05 DOI: 10.1016/j.gfj.2025.101074

S. Veena Iyer, Rohit Prasad

We show that the Absolute Priority Rule (APR), which prioritizes financial creditors over operational creditors in the distribution of proceeds in liquidation, is inappropriate and unfair during resolution and deprives the latter of their share of value in the reorganized concern. Using data from bankruptcy resolution cases under the Indian Insolvency and Bankruptcy Code (IBC) 2016, we examine an alternate Quasi-APR rule for equitable distribution and find that while in the aggregate, the operational creditors get pay-outs not significantly different from this rule, there is intra-group divergence created by the liquidation premium (the excess of resolution proceeds over liquidation value of assets), and the operational creditors' claim size. The actual dynamics conform to opportunistic behaviour by the financial creditors, moderated by certain factors. In the spirit of the modified Creditors' Bargain Theory and the Values-based theory, we propose the quasi-APR rule as a transparent and pragmatic solution towards value-conservation of the asset and equity. We recommend the Quasi APR-based payout to be made the minimum payout for the OCs.

{"title":"Exploring a Quasi-absolute priority rule for pay-outs to operational creditors in bankruptcy resolutions: Evidence from India","authors":"S. Veena Iyer, Rohit Prasad","doi":"10.1016/j.gfj.2025.101074","DOIUrl":"10.1016/j.gfj.2025.101074","url":null,"abstract":"<div><div>We show that the Absolute Priority Rule (APR), which prioritizes financial creditors over operational creditors in the distribution of proceeds in liquidation, is inappropriate and unfair during resolution and deprives the latter of their share of value in the reorganized concern. Using data from bankruptcy resolution cases under the Indian Insolvency and Bankruptcy Code (IBC) 2016, we examine an alternate Quasi-APR rule for equitable distribution and find that while in the aggregate, the operational creditors get pay-outs not significantly different from this rule, there is intra-group divergence created by the liquidation premium (the excess of resolution proceeds over liquidation value of assets), and the operational creditors' claim size. The actual dynamics conform to opportunistic behaviour by the financial creditors, moderated by certain factors. In the spirit of the modified Creditors' Bargain Theory and the Values-based theory, we propose the quasi-APR rule as a transparent and pragmatic solution towards value-conservation of the asset and equity. We recommend the Quasi APR-based payout to be made the minimum payout for the OCs.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"64 ","pages":"Article 101074"},"PeriodicalIF":5.5,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143169332","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}

引用次数: 0

Climate change and corporate credit worthiness: International evidence

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2025-01-02 DOI: 10.1016/j.gfj.2024.101073

Harvey Nguyen , Anh Viet Pham , Man Duy (Marty) Pham , Mia Hang Pham

This study examines how climate change risks affect corporate credit ratings worldwide. Using a comprehensive dataset of 4427 firms across 60 countries, we find that firms in countries more susceptible to climate change receive lower credit ratings. Such a negative relation ensues from inferior firm fundamentals, such as higher default risk and cash flow volatility associated with climate-change-related uncertainties. We also find that the adverse impact of climate change risks on credit ratings impedes firms' access to debt financing and increases the costs of holding credit default swaps. Further analyses reveal that institutional factors and market attention to climate change significantly shape rating agencies' responses to climate change risks.

引用次数: 0

Artificial intelligence, digital finance, and green innovation

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2024-12-26 DOI: 10.1016/j.gfj.2024.101072

Yang Song , Yue Zhang , Zhipeng Zhang , Jean-Michel Sahut

The high risks and uncertainties inherent in green innovation present challenges for traditional financial tools. Against this backdrop, AI has the potential to enhance both corporate green innovation efforts and financial efficiency by leveraging its strengths in data analysis and risk prediction. Nevertheless, the specific impacts and underlying mechanisms of AI's influence remain insufficiently explored. This study employs a two-way fixed-effects model to analyze data from 688 Chinese A-share companies from 2011 to 2020 to explore how AI influences corporate green innovation mechanisms. Our findings reveal that AI drives green innovation, mainly by enhancing digital finance. Moreover, we investigate AI's facilitating effects on green innovation across four dimensions: digital finance coverage, corporate cash flow, corporate growth, and regional environmental quality. The results indicate that AI contributes significantly to green innovation, especially within regions characterized by advanced digital finance, firms with abundant free cash flow, high-growth companies, and areas with lower environmental quality. These findings provide useful guidance for businesses and policymakers seeking to harness AI and digital finance to effectively drive green innovation.

{"title":"Artificial intelligence, digital finance, and green innovation","authors":"Yang Song , Yue Zhang , Zhipeng Zhang , Jean-Michel Sahut","doi":"10.1016/j.gfj.2024.101072","DOIUrl":"10.1016/j.gfj.2024.101072","url":null,"abstract":"<div><div>The high risks and uncertainties inherent in green innovation present challenges for traditional financial tools. Against this backdrop, AI has the potential to enhance both corporate green innovation efforts and financial efficiency by leveraging its strengths in data analysis and risk prediction. Nevertheless, the specific impacts and underlying mechanisms of AI's influence remain insufficiently explored. This study employs a two-way fixed-effects model to analyze data from 688 Chinese A-share companies from 2011 to 2020 to explore how AI influences corporate green innovation mechanisms. Our findings reveal that AI drives green innovation, mainly by enhancing digital finance. Moreover, we investigate AI's facilitating effects on green innovation across four dimensions: digital finance coverage, corporate cash flow, corporate growth, and regional environmental quality. The results indicate that AI contributes significantly to green innovation, especially within regions characterized by advanced digital finance, firms with abundant free cash flow, high-growth companies, and areas with lower environmental quality. These findings provide useful guidance for businesses and policymakers seeking to harness AI and digital finance to effectively drive green innovation.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"64 ","pages":"Article 101072"},"PeriodicalIF":5.5,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143169347","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}

引用次数: 0

Do institutional quality and trade openness enhance the role of financial openness in Eastern European financial development?

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2024-12-24 DOI: 10.1016/j.gfj.2024.101071

Hyun-Jung Nam , Jonathan A. Batten , Doojin Ryu

This study examines the impact of financial openness on financial development and the moderating roles of institutional quality and trade openness in Eastern European countries over several decades. We focus on the period following the Berlin Wall (post-1989) and the transition from centrally planned to market-oriented economies after 1991. Financial openness promotes financial development, with institutional quality strengthening this effect, whereas trade openness weakens the positive impact of financial openness. Our results suggest that excessive openness may hinder financial development in Eastern Europe, highlighting the need for a balanced approach to financial globalization, particularly in transitioning economies.

引用次数: 0

Real effects of media climate change concerns

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2024-12-22 DOI: 10.1016/j.gfj.2024.101069

Fereshteh Mahmoudian, Jamal A. Nazari, Ehsan Poursoleyman

This study addresses the calls in prior research for evidence on the real effects of preferences for climate change risk by investigating whether companies with opposing externalities—brown versus green companies—adjust their climate-related activities in response to exogenous shocks in public concern for climate change, as reflected in news articles. We find that although brown companies reduce their direct and indirect greenhouse gas (GHG) emissions, they do not invest heavily in climate projects, suggesting a preference for cost-effective measures. Further textual analysis reveals that brown companies tend to use less complex stand-alone reports when communicating with external stakeholders. However, although green companies have greater access to low-cost external financial resources during unexpected changes in public concern, we find no evidence that they use these resources to reduce direct GHG emissions. Instead, our findings indicate only limited participation in indirect GHG reduction initiatives, with no significant allocation of these financial resources to dedicated climate projects. This reluctance of green companies to undertake direct GHG reductions is consistent with ongoing anecdotal discussions regarding the challenges of achieving net-zero targets, prompting a call for further research into potential barriers to greener transitions.

{"title":"Real effects of media climate change concerns","authors":"Fereshteh Mahmoudian, Jamal A. Nazari, Ehsan Poursoleyman","doi":"10.1016/j.gfj.2024.101069","DOIUrl":"10.1016/j.gfj.2024.101069","url":null,"abstract":"<div><div>This study addresses the calls in prior research for evidence on the real effects of preferences for climate change risk by investigating whether companies with opposing externalities—brown versus green companies—adjust their climate-related activities in response to exogenous shocks in public concern for climate change, as reflected in news articles. We find that although brown companies reduce their direct and indirect greenhouse gas (GHG) emissions, they do not invest heavily in climate projects, suggesting a preference for cost-effective measures. Further textual analysis reveals that brown companies tend to use less complex stand-alone reports when communicating with external stakeholders. However, although green companies have greater access to low-cost external financial resources during unexpected changes in public concern, we find no evidence that they use these resources to reduce direct GHG emissions. Instead, our findings indicate only limited participation in indirect GHG reduction initiatives, with no significant allocation of these financial resources to dedicated climate projects. This reluctance of green companies to undertake direct GHG reductions is consistent with ongoing anecdotal discussions regarding the challenges of achieving net-zero targets, prompting a call for further research into potential barriers to greener transitions.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"64 ","pages":"Article 101069"},"PeriodicalIF":5.5,"publicationDate":"2024-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143169327","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}

引用次数: 0

Money talks, green walks: Does financial inclusion promote green sustainability in Africa?

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2024-12-19 DOI: 10.1016/j.gfj.2024.101070

Samuel Fiifi Eshun , Evžen Kočenda

This study explores the dynamic relationship between financial inclusion and green sustainability across 38 African countries. We construct an environmental pollution index and a financial inclusion index covering the period 2000–2021 to account for the several dimensions within both indicators and employ them in the System GMM approach. We also test for intra-regional heterogeneity in Africa. Our empirical results show that financial inclusion, while economically beneficial, poses a significant risk of environmental degradation and has a distinctive inverted U-shaped relationship. A direct link between increases in financial inclusion and pollution alters at a turning point, beyond which further financial inclusion increases enhance green sustainability. The same pattern is observed for aggregate output. The results hold even when we control for a score of macro-level determinants. Our analysis highlights intra-regional heterogeneity, revealing differences in impact across income levels and regional groups within Sub-Saharan Africa. These results remain robust for alternative proxies of green sustainability. We offer valuable insights for policymakers to promote sustainability through inclusive financial practices and policies in Sub-Saharan Africa.

{"title":"Money talks, green walks: Does financial inclusion promote green sustainability in Africa?","authors":"Samuel Fiifi Eshun , Evžen Kočenda","doi":"10.1016/j.gfj.2024.101070","DOIUrl":"10.1016/j.gfj.2024.101070","url":null,"abstract":"<div><div>This study explores the dynamic relationship between financial inclusion and green sustainability across 38 African countries. We construct an environmental pollution index and a financial inclusion index covering the period 2000–2021 to account for the several dimensions within both indicators and employ them in the System GMM approach. We also test for intra-regional heterogeneity in Africa. Our empirical results show that financial inclusion, while economically beneficial, poses a significant risk of environmental degradation and has a distinctive inverted U-shaped relationship. A direct link between increases in financial inclusion and pollution alters at a turning point, beyond which further financial inclusion increases enhance green sustainability. The same pattern is observed for aggregate output. The results hold even when we control for a score of macro-level determinants. Our analysis highlights intra-regional heterogeneity, revealing differences in impact across income levels and regional groups within Sub-Saharan Africa. These results remain robust for alternative proxies of green sustainability. We offer valuable insights for policymakers to promote sustainability through inclusive financial practices and policies in Sub-Saharan Africa.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"64 ","pages":"Article 101070"},"PeriodicalIF":5.5,"publicationDate":"2024-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143169328","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}

引用次数: 0

Does ESG rating disagreement impede corporate green innovation?

IF 5.5 2区经济学 Q1 BUSINESS, FINANCE

Global Finance Journal

Pub Date : 2024-12-19 DOI: 10.1016/j.gfj.2024.101068

Jialei Zhu, Zhengde Xiong, Xinxin Lu, Zhu Yao

This paper investigates the effect of environmental, social, and governance (ESG) rating disagreement between agencies on corporate green innovation. Using a sample of Chinese-listed firms, we find that an increase in ESG rating disagreement causes a reduction in green innovation. Moreover, the negative effect becomes more pronounced when firms face poor information disclosure, higher information asymmetry, and greater information uncertainty. Additional analyses indicate that losing the corporate sustainability signal due to disagreement leads to detrimental economic consequences, which diminishes green innovation motivation. However, digitalization and analyst coverage can mitigate this negative link. Our paper provides new insights into the real effects of ESG rating disagreement on corporate green innovation.

引用次数: 0

首页上一页

下一页尾页

类型

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

数据库

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

期刊

Global Finance Journal

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

﹀