Pub Date : 2025-12-01Epub Date: 2025-10-27DOI: 10.1016/j.gfj.2025.101179
Hao Dong , Chengcheng Li , Xiaoqiong Wang
This paper examines the relationship between top executives’ social ties with the media and firm greenwashing activities. We find that firms with media connections are more likely to engage in greenwashing practices. Although these ties enhance environmental, social, and governance (ESG) disclosures, they do not significantly improve actual ESG performance. Media connections improve a firm’s ESG disclosure by enhancing its ability to package ESG reports and disseminate “soft” and favorable information about the firm. The effect of media connections on greenwashing is more pronounced among firms in polluting industries, those subject to mandatory ESG disclosure requirements, and firms attracting high investor attention. Our findings support the strategic media management hypothesis.
{"title":"Friendly press, fading greens: The effect of media connection on firm greenwashing","authors":"Hao Dong , Chengcheng Li , Xiaoqiong Wang","doi":"10.1016/j.gfj.2025.101179","DOIUrl":"10.1016/j.gfj.2025.101179","url":null,"abstract":"<div><div>This paper examines the relationship between top executives’ social ties with the media and firm greenwashing activities. We find that firms with media connections are more likely to engage in greenwashing practices. Although these ties enhance environmental, social, and governance (ESG) disclosures, they do not significantly improve actual ESG performance. Media connections improve a firm’s ESG disclosure by enhancing its ability to package ESG reports and disseminate “soft” and favorable information about the firm. The effect of media connections on greenwashing is more pronounced among firms in polluting industries, those subject to mandatory ESG disclosure requirements, and firms attracting high investor attention. Our findings support the strategic media management hypothesis.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101179"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417011","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 : 2025-12-01Epub Date: 2025-10-04DOI: 10.1016/j.gfj.2025.101198
Yunji Hwang , Jonghan Park , Kevin H. Kim , Seung Hun Han
This study investigates how terrorist attacks affect female CEO compensation. Using terrorist attacks, as exogenous events, in the United States from 1992 to 2021, we find that firms located near terrorist attacks subsequently provide higher compensation to female CEOs than their male counterparts. This effect is more pronounced for female CEOs who serve as board chairs. Additionally, firms led by female CEOs experience lower stock volatility and earnings volatility. Overall, our findings suggest that given the heightened uncertainty firms face following the attacks, they have incentives to offer higher compensation to retain female executives, thereby ensuring leadership continuity and benefiting from female leadership during a crisis period.
{"title":"Female CEOs in turbulent times: The effect of terrorist attacks on executive compensation","authors":"Yunji Hwang , Jonghan Park , Kevin H. Kim , Seung Hun Han","doi":"10.1016/j.gfj.2025.101198","DOIUrl":"10.1016/j.gfj.2025.101198","url":null,"abstract":"<div><div>This study investigates how terrorist attacks affect female CEO compensation. Using terrorist attacks, as exogenous events, in the United States from 1992 to 2021, we find that firms located near terrorist attacks subsequently provide higher compensation to female CEOs than their male counterparts. This effect is more pronounced for female CEOs who serve as board chairs. Additionally, firms led by female CEOs experience lower stock volatility and earnings volatility. Overall, our findings suggest that given the heightened uncertainty firms face following the attacks, they have incentives to offer higher compensation to retain female executives, thereby ensuring leadership continuity and benefiting from female leadership during a crisis period.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101198"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267633","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 : 2025-12-01Epub Date: 2025-11-10DOI: 10.1016/j.gfj.2025.101210
Tianchen Wang , Xuesong Wu , Qun Mi
This study uses data from publicly listed companies from 2008 to 2023 and treats the establishment of Free Trade Zones (FTZs) as a quasinatural experiment to examine how institutional openness affects the labor income share of enterprises. The results show that FTZs establishment significantly increases the labor income share of firms within these regions. Further analysis reveals two promotion channels: improvements in regional human capital structure and acceleration of technological innovation within enterprises. However, the rise in digitalization within FTZs can offset part of this positive effect. Heterogeneity analysis indicates that the impact is stronger for labor-intensive and nonstate-owned enterprises with higher levels of digitalization, higher wages in digital firms, and more advanced human capital structures.
{"title":"Institutional openness and the labor income share of enterprises - A decade and a half of empirical evidence from China's free trade zones","authors":"Tianchen Wang , Xuesong Wu , Qun Mi","doi":"10.1016/j.gfj.2025.101210","DOIUrl":"10.1016/j.gfj.2025.101210","url":null,"abstract":"<div><div>This study uses data from publicly listed companies from 2008 to 2023 and treats the establishment of Free Trade Zones (FTZs) as a quasinatural experiment to examine how institutional openness affects the labor income share of enterprises. The results show that FTZs establishment significantly increases the labor income share of firms within these regions. Further analysis reveals two promotion channels: improvements in regional human capital structure and acceleration of technological innovation within enterprises. However, the rise in digitalization within FTZs can offset part of this positive effect. Heterogeneity analysis indicates that the impact is stronger for labor-intensive and nonstate-owned enterprises with higher levels of digitalization, higher wages in digital firms, and more advanced human capital structures.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101210"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145520085","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 : 2025-12-01Epub Date: 2025-10-17DOI: 10.1016/j.gfj.2025.101205
Anh Tuan Le , Harvey Nguyen , Cuong Nguyen
This study investigates the cross-sectional asset pricing implications of investor regret in the Chinese stock market. Using a comprehensive sample spanning January 2000 to November 2021, we find that regret is positively related to the cross-section of future equity returns. A strategy that involves longing a portfolio with the highest regret and shorting a portfolio with the lowest regret generates annualized risk-adjusted returns of 11.64 %. In addition, the regret premium is more pronounced for stocks with high arbitrage limits and information frictions. The regret anomaly persists after considering established asset pricing factors through extensive sensitivity analyses. Overall, our findings remain consistent with our hypothesis that regret-averse investors generally avoid stocks that generate high regret as these stocks have reduced overall utility compared with others. Consequently, these high regret stocks tend to deliver higher future returns in equilibrium. Our results provide valuable insights for policymakers and regulators to better understand how investors' emotional behaviors such as regret can affect stock dynamics, particularly in emerging and retail-driven markets.
{"title":"Regret to reward: Investor regret and the cross-sectional stock returns in the Chinese market","authors":"Anh Tuan Le , Harvey Nguyen , Cuong Nguyen","doi":"10.1016/j.gfj.2025.101205","DOIUrl":"10.1016/j.gfj.2025.101205","url":null,"abstract":"<div><div>This study investigates the cross-sectional asset pricing implications of investor regret in the Chinese stock market. Using a comprehensive sample spanning January 2000 to November 2021, we find that regret is positively related to the cross-section of future equity returns. A strategy that involves longing a portfolio with the highest regret and shorting a portfolio with the lowest regret generates annualized risk-adjusted returns of 11.64 %. In addition, the regret premium is more pronounced for stocks with high arbitrage limits and information frictions. The regret anomaly persists after considering established asset pricing factors through extensive sensitivity analyses. Overall, our findings remain consistent with our hypothesis that regret-averse investors generally avoid stocks that generate high regret as these stocks have reduced overall utility compared with others. Consequently, these high regret stocks tend to deliver higher future returns in equilibrium. Our results provide valuable insights for policymakers and regulators to better understand how investors' emotional behaviors such as regret can affect stock dynamics, particularly in emerging and retail-driven markets.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101205"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362531","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 : 2025-12-01Epub Date: 2025-10-31DOI: 10.1016/j.gfj.2025.101208
Qifa Xu , Changyu Ruan , Cuixia Jiang , Li Li
Despite growing attention to the impact of ESG performance on corporate finance, particularly debt financing costs at the firm level, spillover effects at the supply chain level remain underexplored. Using data from Chinese A-share listed companies over the 2012–2023 period, we build supply chain networks to examine the spillover effects of core enterprises' ESG performance to node enterprises. The empirical results confirm that core enterprises' good ESG performance can significantly reduce node enterprises' debt financing costs even after a series of robustness tests. This reduction effect is achieved through increasing the supply chain liquidity or reducing supply chain disruption risk. Heterogeneity analyses demonstrate that the reduction effect is more prominent when core and node enterprises share consistent characteristics and are located in different provinces. Overall, our findings advance the understanding of ESG spillover effects within supply chain networks and highlight supply chain ESG management's important role in corporate finance.
{"title":"The spillover effect of core enterprises' ESG performance on node enterprises' debt financing costs","authors":"Qifa Xu , Changyu Ruan , Cuixia Jiang , Li Li","doi":"10.1016/j.gfj.2025.101208","DOIUrl":"10.1016/j.gfj.2025.101208","url":null,"abstract":"<div><div>Despite growing attention to the impact of ESG performance on corporate finance, particularly debt financing costs at the firm level, spillover effects at the supply chain level remain underexplored. Using data from Chinese A-share listed companies over the 2012–2023 period, we build supply chain networks to examine the spillover effects of core enterprises' ESG performance to node enterprises. The empirical results confirm that core enterprises' good ESG performance can significantly reduce node enterprises' debt financing costs even after a series of robustness tests. This reduction effect is achieved through increasing the supply chain liquidity or reducing supply chain disruption risk. Heterogeneity analyses demonstrate that the reduction effect is more prominent when core and node enterprises share consistent characteristics and are located in different provinces. Overall, our findings advance the understanding of ESG spillover effects within supply chain networks and highlight supply chain ESG management's important role in corporate finance.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101208"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466445","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 : 2025-12-01Epub Date: 2025-10-27DOI: 10.1016/j.gfj.2025.101206
Michelle Xuan Mi, Rumi Masih
This paper examines the resilience of private equity (PE) and venture capital (VC) returns to economic and market shocks, exploring their role as alternative asset classes within diversified institutional portfolios. Despite the increasing allocation to these illiquid and untransparent assets, little is understood about their shock resilience, econometric exogeneity, and diversification properties when combined with liquid assets such as equities, bonds, and commodities. We use a Vector Autoregression (VAR) framework to analyze PE and VC performance over thirty years, assessing their reactivity and adaptability to fluctuations in traditional asset classes and macroeconomic indicators. Our findings show that while PE and VC are sensitive to immediate market changes, they demonstrate substantial long-term resilience, regaining equilibrium aftershocks. This reveals that PE/VC is an ideal asset class for diversification within institutional portfolios as a buffer against market volatility without sacrificing returns.
{"title":"How resilient are PE/VC returns to real shocks?","authors":"Michelle Xuan Mi, Rumi Masih","doi":"10.1016/j.gfj.2025.101206","DOIUrl":"10.1016/j.gfj.2025.101206","url":null,"abstract":"<div><div>This paper examines the resilience of private equity (PE) and venture capital (VC) returns to economic and market shocks, exploring their role as alternative asset classes within diversified institutional portfolios. Despite the increasing allocation to these illiquid and untransparent assets, little is understood about their shock resilience, econometric exogeneity, and diversification properties when combined with liquid assets such as equities, bonds, and commodities. We use a Vector Autoregression (VAR) framework to analyze PE and VC performance over thirty years, assessing their reactivity and adaptability to fluctuations in traditional asset classes and macroeconomic indicators. Our findings show that while PE and VC are sensitive to immediate market changes, they demonstrate substantial long-term resilience, regaining equilibrium aftershocks. This reveals that PE/VC is an ideal asset class for diversification within institutional portfolios as a buffer against market volatility without sacrificing returns.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101206"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466446","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 : 2025-12-01Epub Date: 2025-11-02DOI: 10.1016/j.gfj.2025.101209
William Mbanyele , Ying Liu , Xinwei Qu , Hongyun Huang
This paper investigates whether institutional investors respond to green industrial policies. Although previous research has largely emphasized the adverse effects of climate risks on investor behavior, little evidence exists on how supportive policy shocks shape capital allocation. Using data from 3554 Chinese listed firms between 2013 and 2023, we assess whether institutional investors increase holdings in policy-endorsed firms. Results show that institutional investors substantially raise ownership in green factory firms, with stronger effects among both green-focused and general investors. Two mechanisms (i.e., signaling and strategic resource advantages) appear to drive this response. Moreover, policy-endorsed firms later exhibit higher firm value, better environmental disclosure quality, and greater environmental protection investment. These findings demonstrate that green industrial policies can redirect capital by influencing investor demand, providing timely evidence on the link between finance and sustainability.
{"title":"How does green industrial policy influence institutional investor ownership? Evidence from a quasi-natural experiment","authors":"William Mbanyele , Ying Liu , Xinwei Qu , Hongyun Huang","doi":"10.1016/j.gfj.2025.101209","DOIUrl":"10.1016/j.gfj.2025.101209","url":null,"abstract":"<div><div>This paper investigates whether institutional investors respond to green industrial policies. Although previous research has largely emphasized the adverse effects of climate risks on investor behavior, little evidence exists on how supportive policy shocks shape capital allocation. Using data from 3554 Chinese listed firms between 2013 and 2023, we assess whether institutional investors increase holdings in policy-endorsed firms. Results show that institutional investors substantially raise ownership in green factory firms, with stronger effects among both green-focused and general investors. Two mechanisms (i.e., signaling and strategic resource advantages) appear to drive this response. Moreover, policy-endorsed firms later exhibit higher firm value, better environmental disclosure quality, and greater environmental protection investment. These findings demonstrate that green industrial policies can redirect capital by influencing investor demand, providing timely evidence on the link between finance and sustainability.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101209"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466444","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 : 2025-12-01Epub Date: 2025-10-24DOI: 10.1016/j.gfj.2025.101207
Yehwan Lee, Seung Hun Han
This study investigates how negative environmental, social, and governance (ESG) news about peer firms affects the investment efficiency of focal firms. Analyzing a panel of U.S. public firms from 2007 to 2020, we find that such news enhances investment efficiency, primarily by reducing underinvestment. Peer controversies appear to signal the focal firm's superior quality to capital providers, easing financing constraints and enabling projects previously delayed by lack of funding. The effect is stronger in highly competitive industries. In response, firms reallocate capital toward research and development and capital expenditures while cutting back on acquisitions. We propose a novel information-based mechanism, termed the “relative quality signal,” through which peer ESG failures highlight the focal firm's stronger governance and risk management. Unlike traditional learning or contagion effects that spread information or sentiment uniformly across firms, this signaling channel highlights heterogeneous investor responses: peer crises enhance the relative reputation of unaffected firms, offering a new perspective on intraindustry information transmission. Robustness tests using dynamic panel GMM and instrumental variable estimations confirm that the results are not driven by endogeneity. Our findings suggest that negative ESG events generate positive externalities for unaffected firms by alleviating information asymmetry and improving capital allocation. The results underscore that ESG news serves as a valuable market signal for investors and regulators, enhancing overall investment efficiency across industries.
{"title":"ESG news spillover and corporate investment efficiency","authors":"Yehwan Lee, Seung Hun Han","doi":"10.1016/j.gfj.2025.101207","DOIUrl":"10.1016/j.gfj.2025.101207","url":null,"abstract":"<div><div>This study investigates how negative environmental, social, and governance (ESG) news about peer firms affects the investment efficiency of focal firms. Analyzing a panel of U.S. public firms from 2007 to 2020, we find that such news enhances investment efficiency, primarily by reducing underinvestment. Peer controversies appear to signal the focal firm's superior quality to capital providers, easing financing constraints and enabling projects previously delayed by lack of funding. The effect is stronger in highly competitive industries. In response, firms reallocate capital toward research and development and capital expenditures while cutting back on acquisitions. We propose a novel information-based mechanism, termed the “relative quality signal,” through which peer ESG failures highlight the focal firm's stronger governance and risk management. Unlike traditional learning or contagion effects that spread information or sentiment uniformly across firms, this signaling channel highlights heterogeneous investor responses: peer crises enhance the relative reputation of unaffected firms, offering a new perspective on intraindustry information transmission. Robustness tests using dynamic panel GMM and instrumental variable estimations confirm that the results are not driven by endogeneity. Our findings suggest that negative ESG events generate positive externalities for unaffected firms by alleviating information asymmetry and improving capital allocation. The results underscore that ESG news serves as a valuable market signal for investors and regulators, enhancing overall investment efficiency across industries.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101207"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417008","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 : 2025-12-01Epub Date: 2025-10-22DOI: 10.1016/j.gfj.2025.101202
Zhen Wang, Kai Wu
This study investigates the influence of climate change exposure on institutional ownership worldwide. Leveraging a comprehensive dataset of firm-level climate change exposure, we document a negative association between climate change exposure and in- stitutional ownership, establishing causality through an instrumental variable approach and the difference-in-differences method. Short-term-oriented institutional investors drive the negative correlation between climate change exposure and institutional ownership. This relationship is particularly pronounced in firms with weaker corporate governance structures and poor information disclosure quality and in countries with stronger environmental policies and higher climate awareness. While institutions generally reduce their holdings in climate-exposed firms, those maintaining ownership positions demonstrate increased engagement in climate risk governance. Our findings emphasize the dual role of institutional investors in responding to climate risks and shaping corporate environmental governance.
{"title":"How do institutional investors respond to climate change exposure? International evidence","authors":"Zhen Wang, Kai Wu","doi":"10.1016/j.gfj.2025.101202","DOIUrl":"10.1016/j.gfj.2025.101202","url":null,"abstract":"<div><div>This study investigates the influence of climate change exposure on institutional ownership worldwide. Leveraging a comprehensive dataset of firm-level climate change exposure, we document a negative association between climate change exposure and in- stitutional ownership, establishing causality through an instrumental variable approach and the difference-in-differences method. Short-term-oriented institutional investors drive the negative correlation between climate change exposure and institutional ownership. This relationship is particularly pronounced in firms with weaker corporate governance structures and poor information disclosure quality and in countries with stronger environmental policies and higher climate awareness. While institutions generally reduce their holdings in climate-exposed firms, those maintaining ownership positions demonstrate increased engagement in climate risk governance. Our findings emphasize the dual role of institutional investors in responding to climate risks and shaping corporate environmental governance.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101202"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362530","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 : 2025-12-01Epub Date: 2025-10-11DOI: 10.1016/j.gfj.2025.101201
Tingting Liu , Yong Du , Shuying Tan , Shuhan Zhao
This paper investigates the peer effect of shadow banking among A-share nonfinancial firms in China's Shanghai and Shenzhen markets from 2007 to 2020, focusing on common analyst networks. The results reveal a significant peer effect, whereby firms imitate the shadow banking behavior of peers connected via shared analysts. This effect reduces firm performance and heightens stock price crash risk. The underlying mechanism is driven by information transmission and competitive pressure induced by common analysts. The study also proposes countermeasures for firms, analysts, and regulators, offering a novel perspective on addressing the “hollowing out” of the real economy.
{"title":"Peer effect of nonfinancial corporate shadow banking: Evidence from common analyst networks in China","authors":"Tingting Liu , Yong Du , Shuying Tan , Shuhan Zhao","doi":"10.1016/j.gfj.2025.101201","DOIUrl":"10.1016/j.gfj.2025.101201","url":null,"abstract":"<div><div>This paper investigates the peer effect of shadow banking among A-share nonfinancial firms in China's Shanghai and Shenzhen markets from 2007 to 2020, focusing on common analyst networks. The results reveal a significant peer effect, whereby firms imitate the shadow banking behavior of peers connected via shared analysts. This effect reduces firm performance and heightens stock price crash risk. The underlying mechanism is driven by information transmission and competitive pressure induced by common analysts. The study also proposes countermeasures for firms, analysts, and regulators, offering a novel perspective on addressing the “hollowing out” of the real economy.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"68 ","pages":"Article 101201"},"PeriodicalIF":5.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325001","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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