Pub Date : 2025-08-13DOI: 10.1016/j.gfj.2025.101165
Santiago Guerrero-Escobar , Gerardo Hernández-del-Valle , Marco Hernández-Vega
Many companies are adopting ambitious greenhouse gas (GHG) emission-reduction targets that align with the Paris Agreement, regarding broader climate strategies. Despite this trend, empirical evidence on the implications to the financial market remains limited. This paper examines how committing to and setting GHG targets affect stock returns and volatility, using a daily panel of publicly listed companies from January 2015 to October 2024. We employ an event study framework, supplemented by a generalized autoregressive conditional heteroskedasticity model with a novel trend component. Our findings show that neither committing to nor setting a GHG target has a statistically significant impact on stock returns. However, both actions are associated with reductions in stock price volatility in a few countries, like Australia, Japan, South Africa, Taiwan, and New Zealand. This suggests that market responses to climate commitments can vary across regional and policy contexts.
{"title":"The stock market effects of committing and setting GHG targets: evidence from the science-based targets initiative","authors":"Santiago Guerrero-Escobar , Gerardo Hernández-del-Valle , Marco Hernández-Vega","doi":"10.1016/j.gfj.2025.101165","DOIUrl":"10.1016/j.gfj.2025.101165","url":null,"abstract":"<div><div>Many companies are adopting ambitious greenhouse gas (GHG) emission-reduction targets that align with the Paris Agreement, regarding broader climate strategies. Despite this trend, empirical evidence on the implications to the financial market remains limited. This paper examines how committing to and setting GHG targets affect stock returns and volatility, using a daily panel of publicly listed companies from January 2015 to October 2024. We employ an event study framework, supplemented by a generalized autoregressive conditional heteroskedasticity model with a novel trend component. Our findings show that neither committing to nor setting a GHG target has a statistically significant impact on stock returns. However, both actions are associated with reductions in stock price volatility in a few countries, like Australia, Japan, South Africa, Taiwan, and New Zealand. This suggests that market responses to climate commitments can vary across regional and policy contexts.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101165"},"PeriodicalIF":5.5,"publicationDate":"2025-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144852138","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 : 2025-08-10DOI: 10.1016/j.gfj.2025.101169
Yuanbiao Huang , Jinlei Li
We investigate how regulatory enforcement shapes bank liquidity creation, using a manually-collected dataset of administrative penalties combined with panel data for 368 Chinese commercial banks from 2010 to 2023. Employing a bank-level fixed-effects model, we find that enforcement causally enhances liquidity creation. This effect is not transitory, persisting for a 3-year period after sanctions. This positive effect operates through three channels: a strategic reallocation of bank portfolios, a strengthening of capital buffers, and an improvement in information disclosure. Furthermore, the effect is more pronounced for larger banks, for banks in regions with stronger supervisory capacity, and for sanctions targeting institutions rather than individual employees. Our study contributes to the literature by reframing the role of regulatory enforcement. We show that, rather than solely acting as a disciplinary constraint, well-designed sanctions can serve as a catalyst for beneficial adjustments in bank strategy and governance. This offers new insights into how supervisory design in emerging markets can bolster financial stability without compromising banks' financial intermediation capacity.
{"title":"Regulatory enforcement actions and bank liquidity creation: Evidence from China","authors":"Yuanbiao Huang , Jinlei Li","doi":"10.1016/j.gfj.2025.101169","DOIUrl":"10.1016/j.gfj.2025.101169","url":null,"abstract":"<div><div>We investigate how regulatory enforcement shapes bank liquidity creation, using a manually-collected dataset of administrative penalties combined with panel data for 368 Chinese commercial banks from 2010 to 2023. Employing a bank-level fixed-effects model, we find that enforcement causally enhances liquidity creation. This effect is not transitory, persisting for a 3-year period after sanctions. This positive effect operates through three channels: a strategic reallocation of bank portfolios, a strengthening of capital buffers, and an improvement in information disclosure. Furthermore, the effect is more pronounced for larger banks, for banks in regions with stronger supervisory capacity, and for sanctions targeting institutions rather than individual employees. Our study contributes to the literature by reframing the role of regulatory enforcement. We show that, rather than solely acting as a disciplinary constraint, well-designed sanctions can serve as a catalyst for beneficial adjustments in bank strategy and governance. This offers new insights into how supervisory design in emerging markets can bolster financial stability without compromising banks' financial intermediation capacity.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101169"},"PeriodicalIF":5.5,"publicationDate":"2025-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144813839","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 : 2025-08-08DOI: 10.1016/j.gfj.2025.101168
Jimmy A. Saravia , Silvia Saravia-Matus , Cristhian J. Cachope , Paula M. Almonacid
This study aims to test a corporate governance mechanism described by Jensen and Meckling in their classic theory of the agency costs of outside equity, focusing on Latin American companies characterized by controlling shareholders who own a large percentage of their firms' shares. Our findings align with the theory: Ownership concentration gives controlling shareholders significant influence over their firms, enabling them to reduce agency costs when selling shares or issuing new equity, as their interests align with those of outside shareholders. Higher market valuations and better investment performance evidence this. However, we also find that this influence allows controlling shareholders to act opportunistically when increasing their ownership stakes or during stock repurchases, as interests are not aligned, leading to adverse effects on firm performance. Thus, high ownership stakes provide controlling shareholders with influence, but whether this influence positively or negatively impacts performance depends on the specific context of equity transactions. This paper sheds new light on the ambivalent role of ownership concentration, offering insights relevant to improving monitoring and regulation in markets with weak institutions.
{"title":"Ownership concentration and equity transactions: The ambivalent role of controlling shareholders in firm performance in Latin American contexts","authors":"Jimmy A. Saravia , Silvia Saravia-Matus , Cristhian J. Cachope , Paula M. Almonacid","doi":"10.1016/j.gfj.2025.101168","DOIUrl":"10.1016/j.gfj.2025.101168","url":null,"abstract":"<div><div>This study aims to test a corporate governance mechanism described by Jensen and Meckling in their classic theory of the agency costs of outside equity, focusing on Latin American companies characterized by controlling shareholders who own a large percentage of their firms' shares. Our findings align with the theory: Ownership concentration gives controlling shareholders significant influence over their firms, enabling them to reduce agency costs when selling shares or issuing new equity, as their interests align with those of outside shareholders. Higher market valuations and better investment performance evidence this. However, we also find that this influence allows controlling shareholders to act opportunistically when increasing their ownership stakes or during stock repurchases, as interests are not aligned, leading to adverse effects on firm performance. Thus, high ownership stakes provide controlling shareholders with influence, but whether this influence positively or negatively impacts performance depends on the specific context of equity transactions. This paper sheds new light on the ambivalent role of ownership concentration, offering insights relevant to improving monitoring and regulation in markets with weak institutions.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101168"},"PeriodicalIF":5.5,"publicationDate":"2025-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144852137","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 : 2025-08-07DOI: 10.1016/j.gfj.2025.101166
Haibo Wang
This paper analyzes global supply chain investment risk factors (i.e., energy market, investor sentiment, and global shipping costs). It then presents portfolio strategies responsive to dynamic risks. We employ a time-varying vector autoregression model to examine the spillovers and interconnectedness among these factors from January 5, 2010, to June 29, 2023, using a set of environmental, social, and governance (ESG) indexes. Hedge ratios (HRs) and hedging effectiveness (HE) are calculated to determine optimal long and short positions for these portfolios. We then assess the impact of extreme events on risk spillovers and investment strategies by comparing periods before and after COVID-19. Our results show that risk shocks drive dynamic connectedness among infrastructure portfolios, and we highlight how extreme events affect spillovers and investment outcomes. Portfolios with higher ESG scores exhibit stronger connectedness with other portfolios and factors. Net total directional connectedness indicates that West Texas Intermediate (WTI), the Baltic Exchange Dry Index, and the investor sentiment volatility index (VIX) are consistent net receivers of spillover shocks, while the GLFOX portfolio alternates as a time-varying receiver and transmitter. Pairwise connectedness analysis reveals that WTI and VIX are predominantly receivers, whereas CSUAX, GII, and FGIAX portfolios act as net transmitters. COVID-19 altered the structure of dynamic connectedness across portfolios: shifts in mean HR and HE suggest that long/short position weights underwent structural changes post-outbreak, and portfolios with higher ESG scores demonstrated superior hedging ability. These findings offer valuable insights for investors adjusting hedging strategies in global supply chain infrastructure investments.
{"title":"Assessing dynamic connectedness in global supply chain infrastructure portfolios: The impact of risk factors and extreme events","authors":"Haibo Wang","doi":"10.1016/j.gfj.2025.101166","DOIUrl":"10.1016/j.gfj.2025.101166","url":null,"abstract":"<div><div>This paper analyzes global supply chain investment risk factors (i.e., energy market, investor sentiment, and global shipping costs). It then presents portfolio strategies responsive to dynamic risks. We employ a time-varying vector autoregression model to examine the spillovers and interconnectedness among these factors from January 5, 2010, to June 29, 2023, using a set of environmental, social, and governance (ESG) indexes. Hedge ratios (HRs) and hedging effectiveness (HE) are calculated to determine optimal long and short positions for these portfolios. We then assess the impact of extreme events on risk spillovers and investment strategies by comparing periods before and after COVID-19. Our results show that risk shocks drive dynamic connectedness among infrastructure portfolios, and we highlight how extreme events affect spillovers and investment outcomes. Portfolios with higher ESG scores exhibit stronger connectedness with other portfolios and factors. Net total directional connectedness indicates that West Texas Intermediate (WTI), the Baltic Exchange Dry Index, and the investor sentiment volatility index (VIX) are consistent net receivers of spillover shocks, while the GLFOX portfolio alternates as a time-varying receiver and transmitter. Pairwise connectedness analysis reveals that WTI and VIX are predominantly receivers, whereas CSUAX, GII, and FGIAX portfolios act as net transmitters. COVID-19 altered the structure of dynamic connectedness across portfolios: shifts in mean HR and HE suggest that long/short position weights underwent structural changes post-outbreak, and portfolios with higher ESG scores demonstrated superior hedging ability. These findings offer valuable insights for investors adjusting hedging strategies in global supply chain infrastructure investments.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101166"},"PeriodicalIF":5.5,"publicationDate":"2025-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144810653","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 : 2025-08-07DOI: 10.1016/j.gfj.2025.101167
Tiantian Tang , Jiahui Guo , Liping Zou , Lu Luo
This study investigates the performance of environmental, social, and governance (ESG) funds compared with their conventional counterparts in China's financial market, using quarterly stockholding data from 2018 to 2021. The findings show that ESG funds consistently outperform conventional ones in generating risk-adjusted excess returns. ESG funds also exhibit lower tendencies toward window dressing and maintain longer investment horizons, reflecting their commitment to long-term objectives and reduced focus on short-term gains. Probit model results reveal that fund managers' personal characteristics—particularly gender and investment style—significantly influence the likelihood of a fund being classified as an ESG fund. Additionally, a trading strategy that mimics ESG principles by investing in high-ESG-rated stocks and divesting from low-rated ones generates positive returns, underscoring the profitability of ESG-based investment strategies. This research provides valuable insights into China's ESG fund landscape and emphasizes its growing role in promoting sustainable development within the global financial ecosystem.
{"title":"ESG fund performance and fund manager trading strategy: Evidence from China","authors":"Tiantian Tang , Jiahui Guo , Liping Zou , Lu Luo","doi":"10.1016/j.gfj.2025.101167","DOIUrl":"10.1016/j.gfj.2025.101167","url":null,"abstract":"<div><div>This study investigates the performance of environmental, social, and governance (ESG) funds compared with their conventional counterparts in China's financial market, using quarterly stockholding data from 2018 to 2021. The findings show that ESG funds consistently outperform conventional ones in generating risk-adjusted excess returns. ESG funds also exhibit lower tendencies toward window dressing and maintain longer investment horizons, reflecting their commitment to long-term objectives and reduced focus on short-term gains. Probit model results reveal that fund managers' personal characteristics—particularly gender and investment style—significantly influence the likelihood of a fund being classified as an ESG fund. Additionally, a trading strategy that mimics ESG principles by investing in high-ESG-rated stocks and divesting from low-rated ones generates positive returns, underscoring the profitability of ESG-based investment strategies. This research provides valuable insights into China's ESG fund landscape and emphasizes its growing role in promoting sustainable development within the global financial ecosystem.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101167"},"PeriodicalIF":5.5,"publicationDate":"2025-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144892902","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 : 2025-07-30DOI: 10.1016/j.gfj.2025.101163
Peiyuan Zhu
In prevailing theories of capital structure, the role of voting power is often neglected. However, voting mechanisms are critical in financing decisions, as shareholders typically place high value on maintaining control, and voting power is central to that control. This study introduces a financing theory that posits companies are more likely to pursue equity financing when incoming shareholders are unable to challenge the voting power of incumbent shareholders. The theory suggests that in certain ownership structures, newly entering large shareholders cannot meaningfully influence voting outcomes, prompting existing shareholders to favor equity financing. In contrast, when ownership structures allow new shareholders to significantly affect voting results, firms tend to prefer internal or debt financing. To evaluate this theory, the study conducts an empirical analysis using data from Chinese listed companies. The findings support the model's predictions and further reveal that this effect also impacts firm growth and dividend policies.
{"title":"How do voting powers matter in equity finance? Evidence from chinese private placements","authors":"Peiyuan Zhu","doi":"10.1016/j.gfj.2025.101163","DOIUrl":"10.1016/j.gfj.2025.101163","url":null,"abstract":"<div><div>In prevailing theories of capital structure, the role of voting power is often neglected. However, voting mechanisms are critical in financing decisions, as shareholders typically place high value on maintaining control, and voting power is central to that control. This study introduces a financing theory that posits companies are more likely to pursue equity financing when incoming shareholders are unable to challenge the voting power of incumbent shareholders. The theory suggests that in certain ownership structures, newly entering large shareholders cannot meaningfully influence voting outcomes, prompting existing shareholders to favor equity financing. In contrast, when ownership structures allow new shareholders to significantly affect voting results, firms tend to prefer internal or debt financing. To evaluate this theory, the study conducts an empirical analysis using data from Chinese listed companies. The findings support the model's predictions and further reveal that this effect also impacts firm growth and dividend policies.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101163"},"PeriodicalIF":5.5,"publicationDate":"2025-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144773098","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 : 2025-07-26DOI: 10.1016/j.gfj.2025.101158
Sang Baum Kang , Satwik Sinha , Jiyong Eom
High-yield green bonds are corporate bonds rated BB+ or below, specifically designated to finance environmentally friendly projects. The market for these bonds is approximately one-fifth the size of the investment-grade green bond market and has been steadily growing. However, this segment has received little attention in the literature. In this study, we make the first attempt to examine the pricing of high-yield green bonds, both theoretically and empirically. We propose a novel economic model in which the credit spread of high-yield green bonds depends not only on the probability of financial success, but also on the environmental success probability of the projects financed by the bond and the investor’s willingness to trade financial return for environmental return. The credit spread of a high-yield green bond can be lower than that of a conventional (or brown) bond only if some investors have confidence in the issuer’s ability to deliver environmental value by successfully implementing green projects. Empirically, we investigate whether such a negative wedge between green and brown credit spreads exists in the high-yield bond market, using a standard matching methodology. We find that the mean credit spread of high-yield green bonds is lower than that of their brown counterparts, although the difference is not statistically significant.
{"title":"Green dreams, risky assets? A study of high-yield green bonds","authors":"Sang Baum Kang , Satwik Sinha , Jiyong Eom","doi":"10.1016/j.gfj.2025.101158","DOIUrl":"10.1016/j.gfj.2025.101158","url":null,"abstract":"<div><div>High-yield green bonds are corporate bonds rated BB+ or below, specifically designated to finance environmentally friendly projects. The market for these bonds is approximately one-fifth the size of the investment-grade green bond market and has been steadily growing. However, this segment has received little attention in the literature. In this study, we make the first attempt to examine the pricing of high-yield green bonds, both theoretically and empirically. We propose a novel economic model in which the credit spread of high-yield green bonds depends not only on the probability of financial success, but also on the environmental success probability of the projects financed by the bond and the investor’s willingness to trade financial return for environmental return. The credit spread of a high-yield green bond can be lower than that of a conventional (or brown) bond only if some investors have confidence in the issuer’s ability to deliver environmental value by successfully implementing green projects. Empirically, we investigate whether such a negative wedge between green and brown credit spreads exists in the high-yield bond market, using a standard matching methodology. We find that the mean credit spread of high-yield green bonds is lower than that of their brown counterparts, although the difference is not statistically significant.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101158"},"PeriodicalIF":5.5,"publicationDate":"2025-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144780840","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 : 2025-07-25DOI: 10.1016/j.gfj.2025.101157
Jiaming Su, Yongqiao Wang
Hydroclimate can cause huge damage to human production and business activities. To evaluate whether stock markets efficiently price the hydroclimatic risk, the paper calculates the Hydroclimatic Sensitivity Score (HSS) for listed firms of China based on the Palmer Drought Severity Index (PDSI) in 1990 – 2022. HSS measures the firm-level physical risk associated with hydroclimate. Empirical results of the Fama–Macbeth regression indicate a significant relationship between HSS and stock return. Portfolios based on HSS exhibit significant positive , which confirms the existence of hydroclimatic mispricing. Mechanism analysis shows that both the firm scale and the long-term debt tolerance can reduce a firm’s HSS, thus causing underpricing of hydroclimatic risk.
{"title":"Hydroclimatic risk mispricing: Evidence from China","authors":"Jiaming Su, Yongqiao Wang","doi":"10.1016/j.gfj.2025.101157","DOIUrl":"10.1016/j.gfj.2025.101157","url":null,"abstract":"<div><div>Hydroclimate can cause huge damage to human production and business activities. To evaluate whether stock markets efficiently price the hydroclimatic risk, the paper calculates the Hydroclimatic Sensitivity Score (HSS) for listed firms of China based on the Palmer Drought Severity Index (PDSI) in 1990 – 2022. HSS measures the firm-level physical risk associated with hydroclimate. Empirical results of the Fama–Macbeth regression indicate a significant relationship between HSS and stock return. Portfolios based on HSS exhibit significant positive <span><math><mi>α</mi></math></span>, which confirms the existence of hydroclimatic mispricing. Mechanism analysis shows that both the firm scale and the long-term debt tolerance can reduce a firm’s HSS, thus causing underpricing of hydroclimatic risk.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101157"},"PeriodicalIF":5.5,"publicationDate":"2025-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144714495","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}
Given shipping's pivotal role in global trade, this study investigates interdependencies between the Baltic Dry Index and various financial and commodity markets, including equities, bonds, real estate, currency, bitcoin, crude oil, natural gas, gold, silver, copper, and zinc. Using the R2 decomposed connectedness approach for the period 1/1/2012–1/31/2025, the analysis reveals moderate volatility spillovers, notably amplified by geopolitical conflict more than the health crisis. Key findings identify gold and equities as primary shock emitters, while currency and bonds function as major receivers. Shipping generally displays neutral behavior within the network. Portfolio analysis shows that most sampled assets significantly reduce risk for shipping investors. Conversely, shipping effectively minimizes risk for bitcoin and natural gas portfolios. Significant heterogeneity in hedging effectiveness is documented across distinct crisis episodes. These results underscore the imperative for shipping investors to employ tailored hedging strategies and offer policymakers insight into shipping's contained systemic footprint on contagion dynamics.
{"title":"Sailing through uncertainty: Shipping's role in financial shock transmission and hedging strategies","authors":"Spyros Papathanasiou, Theodore Syriopoulos, Dimitris Kenourgios, Drosos Koutsokostas","doi":"10.1016/j.gfj.2025.101159","DOIUrl":"10.1016/j.gfj.2025.101159","url":null,"abstract":"<div><div>Given shipping's pivotal role in global trade, this study investigates interdependencies between the Baltic Dry Index and various financial and commodity markets, including equities, bonds, real estate, currency, bitcoin, crude oil, natural gas, gold, silver, copper, and zinc. Using the R<sup>2</sup> decomposed connectedness approach for the period 1/1/2012–1/31/2025, the analysis reveals moderate volatility spillovers, notably amplified by geopolitical conflict more than the health crisis. Key findings identify gold and equities as primary shock emitters, while currency and bonds function as major receivers. Shipping generally displays neutral behavior within the network. Portfolio analysis shows that most sampled assets significantly reduce risk for shipping investors. Conversely, shipping effectively minimizes risk for bitcoin and natural gas portfolios. Significant heterogeneity in hedging effectiveness is documented across distinct crisis episodes. These results underscore the imperative for shipping investors to employ tailored hedging strategies and offer policymakers insight into shipping's contained systemic footprint on contagion dynamics.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101159"},"PeriodicalIF":5.5,"publicationDate":"2025-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144722041","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 : 2025-07-24DOI: 10.1016/j.gfj.2025.101161
Weijie Tan , Yiqian Liu , Mingming Teng
News sentiment affects company practices. Using Baidu News reports spanning 2007–2022 on Chinese A-share listed companies as text data and machine learning and text analysis methods, this study measures environmental, social, and governance (ESG) news sentiment indices. This study examines the impact of ESG news sentiment on corporate financial asset allocation. Findings reveal that optimistic ESG news sentiment has a significant negative impact on corporate financial asset allocation. Mechanism analysis indicates that ESG news sentiment can restrain corporate financialization by facilitating corporate access to ESG-related financial support, reducing operational risks, and promoting real investments, which weakens risk aversion and profit-seeking motives. Further analysis reveals that the financialization governance function of ESG news sentiment is more prominent for private enterprises, during nonrecession periods, and for heavily polluting enterprises. Moreover, it is significant in regions with superior digital financial development and higher ESG governance intensity. From the perspective of ESG news content and information, the environmental and governance dimensions of news sentiment and neutral ESG news attention exhibit stronger financialization suppression effects. This study provides a new perspective for addressing financialization concerns and demonstrates the supervisory influence of the media on corporate sustainability.
{"title":"When ESG news talks: How media sentiment shapes corporate financial behavior in China","authors":"Weijie Tan , Yiqian Liu , Mingming Teng","doi":"10.1016/j.gfj.2025.101161","DOIUrl":"10.1016/j.gfj.2025.101161","url":null,"abstract":"<div><div>News sentiment affects company practices. Using Baidu News reports spanning 2007–2022 on Chinese A-share listed companies as text data and machine learning and text analysis methods, this study measures environmental, social, and governance (ESG) news sentiment indices. This study examines the impact of ESG news sentiment on corporate financial asset allocation. Findings reveal that optimistic ESG news sentiment has a significant negative impact on corporate financial asset allocation. Mechanism analysis indicates that ESG news sentiment can restrain corporate financialization by facilitating corporate access to ESG-related financial support, reducing operational risks, and promoting real investments, which weakens risk aversion and profit-seeking motives. Further analysis reveals that the financialization governance function of ESG news sentiment is more prominent for private enterprises, during nonrecession periods, and for heavily polluting enterprises. Moreover, it is significant in regions with superior digital financial development and higher ESG governance intensity. From the perspective of ESG news content and information, the environmental and governance dimensions of news sentiment and neutral ESG news attention exhibit stronger financialization suppression effects. This study provides a new perspective for addressing financialization concerns and demonstrates the supervisory influence of the media on corporate sustainability.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"67 ","pages":"Article 101161"},"PeriodicalIF":5.5,"publicationDate":"2025-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144722042","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}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号