Global Finance Journal最新文献

Women are severely underrepresented in the upper echelons. We show that female CEOs score higher (lower) than their male peers on personality traits that correlate positively (negatively) with leadership. Thus, it seems that female CEOs must be more “leaderlike” to emerge and survive on a non-level playing field. The degree of female underrepresentation is not uniform across industries. CEO personality traits differ 1) across industries and 2) between genders. Thus, we argue and show that the (lack of) alignment between the CEO personality traits of the industry and the personality traits of female CEOs is a likely explaining factor for the relative over- and underrepresentation of female CEOs in specific industries. Our findings are important in understanding one of the industry-related obstacles that women face in reaching the upper echelons in the corporate world.

This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial Durbin model. Based on the panel data of 273 Chinese cities from 2011 to 2020, the empirical results demonstrate that local and neighboring financing constraints mediate more than 50% of the direct impact of local digital finance on the quantity and quality of green innovation. Moreover, these financing constraints completely mediate the indirect impact of neighbors' digitalization levels, one of the three indicators of digital finance. This underscores the importance of addressing financing constraints and fostering regional cooperation to enhance the efficacy of digital finance in advancing green technology.

This study investigates the interconnectedness of upside and downside tail risks between tech-industry tokens and equities, focusing on uncertainties and portfolio implications. We estimate tail-risk measures at various quantiles using the conditional autoregressive value-at-risk method and investigate selected assets' static and dynamic connectedness using a time-varying parameter-vector autoregression approach. The findings reveal a moderate level of time-varying tail-risk interconnectedness. Furthermore, we examine the role of global uncertainty factors in tail-risk contagion and identify the factors driving connectedness. Moreover, this study analyzes portfolio implications, offering insights into effective risk management strategies and the potential benefits of diversification. These findings have significant implications for investors, regulators, and policymakers in risk management in the technology industry.

The increasing digitalisation of the financial sector can potentially steer cities towards carbon neutrality, especially through digital finance. We conduct a panel data analysis of Chinese prefecture-level cities from 2014 to 2020 using a spatial econometric model to explore the effect of digital finance on energy transition. Further, we explore the spatial spillover effect and its moderating mechanism. Our results confirm a significant positive correlation between digital finance and energy transition efficiency. Moreover, digital finance is found to engender positive spatial spillover effects on energy transition in neighbouring cities. Finally, the analysis of the moderating effect reveals that digital economy policies can amplify the positive correlation between digital finance and energy transition. This finding highlights the importance and positive role of digital finance in realising energy transition.

Foreign investors are playing an increasingly important role in China's capital market, and the impact of northbound funds on Knightian uncertainty has attracted much academic attention. Based on the characteristics of northbound funds' trading behavior and investors' shareholding stability, this study divides them into long-term investors and short-term opportunists. It also examines the effect of long- and short-term foreign investors on individual stock Knightian uncertainty. The study finds that higher stability of northbound fund shareholding lowers the Knightian uncertainty of individual stocks, and long-term foreign institutional investors contribute to market stability. Furthermore, long-term investments in northbound funds can reduce Knightian uncertainty by improving the information environment, influencing the trading behavior of institutional investors, boosting investor confidence, and helping investors form consistent expectations. In conclusion, short-term foreign investors aggravate market volatility, whereas long-term foreign institutional investors help stabilize the market.

Monetary policy operations affect bank balance sheets (BBSs). This study develops a balance sheet model to examine the impacts of monetary policy operations on banks' ability to supply funds. That ability is assessed using the balance sheet capacities provided by regulatory risk management instruments. The balance sheet approach views a monetary policy operation as a transaction between the central bank and a commercial bank, modeling the transaction as multiple changes to the BBS. This study identifies and distinguishes the effects of multiple changes in the BBS on balance sheet capacity. A balance sheet change resulting from a monetary policy operation may positively or negatively affect balance sheet capacity. Thus, a monetary policy may have a positive and a negative effect simultaneously. Positive (negative) effects result from balance sheet changes that reduce (increase) bank risks, as measured by regulations. As regulatory stringency decreases, the positive effects increase, whereas the negative effects remain unchanged. A BBS capacity channel of monetary policy is also shown.

This study aims to examine the effect of national culture on the choice of exit mechanism for private firms. Using an international dataset of private firms covering 60 countries from 1985 to 2019, we find that private firms in countries with high uncertainty avoidance, masculinity, indulgence vs. restraint, and individualism and low power distance and long-term orientation are more inclined to exit through mergers and acquisitions. Conversely, private firms in countries with low uncertainty avoidance, masculinity, indulgence vs. restraint, and individualism and high power distance and long-term orientation are more inclined to exit through initial public offerings. Our findings are robust to control for firm and country characteristics, market conditions, funds demand, payment method, subperiods, subsamples, cultural proxies, and composite cultural profile index. Overall, our findings underscore the importance of cultural dimensions in understanding exit mechanisms for private firms.

This study employs the thermal optimal path method to establish a framework for dynamic nonlinear connections between Chinese carbon and foreign exchange markets. Subsequently, it examines the effects of extreme weather events on the lead–lag role played by carbon. The empirical results indicate that China's carbon market typically lags behind its currency exchange market. Compared to the Hubei carbon market, the Guangdong carbon market experiences synchronized price movements between carbon and foreign exchange due to high pricing efficiency. Furthermore, shocks from extreme weather events can attract public attention to the carbon market and cause the typical lead–lag structure to reverse, whereupon the carbon market leads the foreign exchange market under such shocks, especially during heat waves. Our findings have implications for investors aiming for positive cumulative returns on hedging portfolios and policymakers wishing to bolster the financial market's ability to withstand exogenous shocks.

The undeniable significance of small and medium-sized enterprises (SMEs) and startups in fostering economic development and prosperity serves as the backdrop for this study. The primary goal of this research is to determine how various factors influence the digitalization of financial accounting within SMEs and startups. An analysis is carried out using data from a cohort of 200 Chinese SMEs, all listed and sourced from the China Stock Market & Accounting Research database's financing reports from 2010 to 2020. The findings suggest that environmental, social, and governance investment and loans obtained by these SMEs positively promote digitalization. Meanwhile, financial fraud acts as a barrier to the expansion of digitalization within their financial structures. Notably, total income and transaction costs exhibit a mixed pattern of effects, acting as long-term enablers of digitalization. Moreover, the Chinese government's establishment of an electronic financial accounting standard framework and provision of incentive packages can expedite the digitalization of financial accounting in Chinese SMEs.

This paper investigates the impact of asset-based uncertainty on the asymmetric return connectedness and hedging effectiveness of regional environmental, social and governance (ESG) equity markets from January 2017 to December 2022. The results of the asymmetric time-varying parameter vector autoregressive connectedness approach show strong dynamic connectedness within regional ESG markets, with the dominance of negative returns intensifying during COVID-19. Quantile regressions reveal that uncertainty in crude oil and bond markets negatively affects asymmetric return connectedness across bearish, normal and bullish market periods, whereas uncertainty in stock, gold and exchange rate markets has a positive impact. Overall, asset-based uncertainty influences negative return connectedness more than positive return connectedness, and a varied influence of asset-based uncertainty is noted during COVID-19 and the Russia–Ukraine war. A portfolio analysis shows that all ESG markets significantly contribute to higher hedging effectiveness, with a portfolio constructed based on the minimum connectedness approach outperforming the other portfolios. The findings provide policy implications for portfolio and risk management strategies.