Interpreting complex financial regulatory texts, such as the Basel III Accords, can be challenging even for human experts. In this paper, we explore the potential of Large Language Models (LLMs) to perform such tasks. Specifically, we evaluate reasoning strategies, namely Chain-of-Thought (CoT) and Tree-of-Thought (ToT), in their ability to assign accurate risk weights to test cases based on the Basel III Standardized Approach (SA) for Credit Risk. Moreover, we propose and test a guided learning-based few-shot variant of CoT and ToT using human expert input. By evaluating 6,501 test cases, comprised of diverse exposure scenarios, our results demonstrate that few-shot prompting with CoT as well as ToT significantly enhances the LLMs’ accuracy in inferring risk weights. For one-shot CoT, we observe gains of almost 13 percentage points in accuracy with GPT-4o, whereas Claude 3 Sonnet shows gains of more than 10 percentage points. Albeit smaller in magnitude, one-shot ToT improvements are around 9 percentage points.
{"title":"Reasoning with financial regulatory texts via Large Language Models","authors":"Bledar Fazlija , Meriton Ibraimi , Aynaz Forouzandeh , Arber Fazlija","doi":"10.1016/j.jbef.2025.101067","DOIUrl":"10.1016/j.jbef.2025.101067","url":null,"abstract":"<div><div>Interpreting complex financial regulatory texts, such as the Basel III Accords, can be challenging even for human experts. In this paper, we explore the potential of Large Language Models (LLMs) to perform such tasks. Specifically, we evaluate reasoning strategies, namely Chain-of-Thought (CoT) and Tree-of-Thought (ToT), in their ability to assign accurate risk weights to test cases based on the Basel III Standardized Approach (SA) for Credit Risk. Moreover, we propose and test a guided learning-based few-shot variant of CoT and ToT using human expert input. By evaluating 6,501 test cases, comprised of diverse exposure scenarios, our results demonstrate that few-shot prompting with CoT as well as ToT significantly enhances the LLMs’ accuracy in inferring risk weights. For one-shot CoT, we observe gains of almost 13 percentage points in accuracy with GPT-4o, whereas Claude 3 Sonnet shows gains of more than 10 percentage points. Albeit smaller in magnitude, one-shot ToT improvements are around 9 percentage points.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101067"},"PeriodicalIF":4.3,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144511019","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 : 2025-09-01Epub Date: 2025-06-27DOI: 10.1016/j.jbef.2025.101079
Han Ren , Shiwei Sun , Zhengqiang Zhong , Song Wang
Understanding why females and males differ in financial risk-taking is important for both theory and practice. This study integrates neuroscience and behavioral data to examine how sex differences in brain structure-indexed by gray matter volume (GMV)-and brain function-indexed by resting-state functional connectivity (RSFC)-relate to financial risk propensity (FRP) among full-time employees (N = 144; 72 females, 72 males). We found that the association between FRP and GMV in the left superior parietal lobule (SPL), a region involved in emotion regulation and numerical processing, was positive in females but negative in males. Additionally, only in females was lower FRP linked to stronger RSFC between the left SPL and the right hippocampus, a region critical for future-oriented thinking and memory. We also found a significant indirect effect of FRP on the relationship between RSFC and willingness to take risks in investment and career domains for females, but not for males. These findings suggest that in females, greater neural integration of emotional control, numerical reasoning, and prospection may support more cautious financial decisions. This research offers new insights into the neural basis of sex differences in financial decision-making and carries important theoretical and practical implications.
{"title":"Why do females display lower financial risk propensity than males? Evidence from structural MRI and resting-state fMRI","authors":"Han Ren , Shiwei Sun , Zhengqiang Zhong , Song Wang","doi":"10.1016/j.jbef.2025.101079","DOIUrl":"10.1016/j.jbef.2025.101079","url":null,"abstract":"<div><div>Understanding why females and males differ in financial risk-taking is important for both theory and practice. This study integrates neuroscience and behavioral data to examine how sex differences in brain structure-indexed by gray matter volume (GMV)-and brain function-indexed by resting-state functional connectivity (RSFC)-relate to financial risk propensity (FRP) among full-time employees (N = 144; 72 females, 72 males). We found that the association between FRP and GMV in the left superior parietal lobule (SPL), a region involved in emotion regulation and numerical processing, was positive in females but negative in males. Additionally, only in females was lower FRP linked to stronger RSFC between the left SPL and the right hippocampus, a region critical for future-oriented thinking and memory. We also found a significant indirect effect of FRP on the relationship between RSFC and willingness to take risks in investment and career domains for females, but not for males. These findings suggest that in females, greater neural integration of emotional control, numerical reasoning, and prospection may support more cautious financial decisions. This research offers new insights into the neural basis of sex differences in financial decision-making and carries important theoretical and practical implications.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101079"},"PeriodicalIF":4.3,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144500897","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 : 2025-09-01Epub Date: 2025-07-04DOI: 10.1016/j.jbef.2025.101081
Zilong Liu, Hongyan Liang
This study investigates whether credit scoring systems inherently disadvantage women within the subprime borrowing context, where alternative credit data is frequently used. While recent advancements in machine learning and alternative data usage promise greater fairness and accuracy in lending, our findings highlight systemic biases embedded within current credit scoring models. Using a comprehensive sample of alternative borrowers, our analysis reveals that women consistently receive lower credit scores than men, despite exhibiting lower default rates and controlling for extensive credit risk variables. Furthermore, credit scores demonstrate systematically reduced predictive accuracy for women compared to men, underscoring gender biases embedded within these scoring systems. These findings emphasize the urgent need to recalibrate credit scoring models to enhance fairness, accuracy, and financial inclusivity.
{"title":"Are credit scores gender-neutral? Evidence of mis-calibration from alternative and traditional borrowing data","authors":"Zilong Liu, Hongyan Liang","doi":"10.1016/j.jbef.2025.101081","DOIUrl":"10.1016/j.jbef.2025.101081","url":null,"abstract":"<div><div>This study investigates whether credit scoring systems inherently disadvantage women within the subprime borrowing context, where alternative credit data is frequently used. While recent advancements in machine learning and alternative data usage promise greater fairness and accuracy in lending, our findings highlight systemic biases embedded within current credit scoring models. Using a comprehensive sample of alternative borrowers, our analysis reveals that women consistently receive lower credit scores than men, despite exhibiting lower default rates and controlling for extensive credit risk variables. Furthermore, credit scores demonstrate systematically reduced predictive accuracy for women compared to men, underscoring gender biases embedded within these scoring systems. These findings emphasize the urgent need to recalibrate credit scoring models to enhance fairness, accuracy, and financial inclusivity.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101081"},"PeriodicalIF":4.3,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144595732","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 : 2025-09-01Epub Date: 2025-07-24DOI: 10.1016/j.jbef.2025.101086
Malvika Chhatwani
We investigate the impact of financial overconfidence on credit card behavior among men and women. We operationalize financial overconfidence as a discrepancy between objective and subjective financial literacy. Utilizing a dataset comprising 19,795 individuals, our analysis reveals a significant positive relationship between financial overconfidence and credit card delinquency. Further, we also find that financial overconfidence is significantly weaker among women as compared to men. Our findings are robust to several robustness tests using additional control variables or different operationalizations of independent and dependent variables. These findings offer intriguing practical implications, suggesting a gender-specific intervention to address the effects of financial overconfidence on credit card usage. The theoretical and practical contributions of our research are discussed.
{"title":"Girls will be girls? The gendered effect of financial overconfidence on credit card delinquency","authors":"Malvika Chhatwani","doi":"10.1016/j.jbef.2025.101086","DOIUrl":"10.1016/j.jbef.2025.101086","url":null,"abstract":"<div><div>We investigate the impact of financial overconfidence on credit card behavior among men and women. We operationalize financial overconfidence as a discrepancy between objective and subjective financial literacy. Utilizing a dataset comprising 19,795 individuals, our analysis reveals a significant positive relationship between financial overconfidence and credit card delinquency. Further, we also find that financial overconfidence is significantly weaker among women as compared to men. Our findings are robust to several robustness tests using additional control variables or different operationalizations of independent and dependent variables. These findings offer intriguing practical implications, suggesting a gender-specific intervention to address the effects of financial overconfidence on credit card usage. The theoretical and practical contributions of our research are discussed.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101086"},"PeriodicalIF":4.7,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144722944","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 : 2025-09-01Epub Date: 2025-08-08DOI: 10.1016/j.jbef.2025.101085
Pablo Brañas-Garza , Jaromír Kovářík , Ericka G. Rascón Ramírez
How can we promote the adoption of mobile banking among the socially and economically disadvantaged? We compare the effectiveness of two strategies, seeded diffusion via incentivized local leaders and a traditional marketing campaign, to promote the adoption of mobile banking among poor women in rural Peru. For the first one, we exploit the existence of local leaders who were trained by a local firm to promote the diffusion of a mobile banking application. For the second, we take advantage of an on-going traditional marketing campaign at the regional level. Our findings show that the personalized seeded diffusion via local leaders is an effective promotion strategy. It significantly outperforms the traditional campaign, during which adoption rates are statistically indistinguishable from zero. We additionally show that the seeded incentivized diffusion relies on features of the underlying community networks known to promote diffusion of information and trust. Our results emphasize the necessity of personalized approaches to promote technological products such a mobile banking among vulnerable populations.
{"title":"Diffusion of mobile banking among rural women: Incentivizing local leaders vs. a marketing campaign","authors":"Pablo Brañas-Garza , Jaromír Kovářík , Ericka G. Rascón Ramírez","doi":"10.1016/j.jbef.2025.101085","DOIUrl":"10.1016/j.jbef.2025.101085","url":null,"abstract":"<div><div>How can we promote the adoption of mobile banking among the socially and economically disadvantaged? We compare the effectiveness of two strategies, seeded diffusion via incentivized local leaders and a traditional marketing campaign, to promote the adoption of mobile banking among poor women in rural Peru. For the first one, we exploit the existence of local leaders who were trained by a local firm to promote the diffusion of a mobile banking application. For the second, we take advantage of an on-going traditional marketing campaign at the regional level. Our findings show that the personalized seeded diffusion via local leaders is an effective promotion strategy. It significantly outperforms the traditional campaign, during which adoption rates are statistically indistinguishable from zero. We additionally show that the seeded incentivized diffusion relies on features of the underlying community networks known to promote diffusion of information and trust. Our results emphasize the necessity of personalized approaches to promote technological products such a mobile banking among vulnerable populations.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101085"},"PeriodicalIF":4.7,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144911899","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 : 2025-09-01Epub Date: 2025-07-04DOI: 10.1016/j.jbef.2025.101080
Zunaidah Sulong , Md. Habibur Rahman Fuszder , Mohammad Abdullah , Emmanuel Joel Aikins Abakah
This paper investigates the influence of cybersecurity risk on banks’ risk-taking behavior. Utilizing data from U.S. banks spanning 1998–2018, we find that heightened cybersecurity risk is associated with increased risk-taking by banks. These findings remain robust across various alternative proxies and persist even after addressing endogeneity issues. Further analysis indicates that this positive relationship is more pronounced among banks facing greater competitive pressure, higher IT investment, increased deposit withdrawals, and more negative disclosure sentiment. Conversely, the relationship is attenuated in banks with substantial goodwill and a more positive disclosure tone. Sub-sample analyses show that the effect is particularly strong for smaller banks and those with elevated financial vulnerability. These findings have important implications for the digital transformation of the banking sector.
{"title":"Cybersecurity risk and bank risk-taking","authors":"Zunaidah Sulong , Md. Habibur Rahman Fuszder , Mohammad Abdullah , Emmanuel Joel Aikins Abakah","doi":"10.1016/j.jbef.2025.101080","DOIUrl":"10.1016/j.jbef.2025.101080","url":null,"abstract":"<div><div>This paper investigates the influence of cybersecurity risk on banks’ risk-taking behavior. Utilizing data from U.S. banks spanning 1998–2018, we find that heightened cybersecurity risk is associated with increased risk-taking by banks. These findings remain robust across various alternative proxies and persist even after addressing endogeneity issues. Further analysis indicates that this positive relationship is more pronounced among banks facing greater competitive pressure, higher IT investment, increased deposit withdrawals, and more negative disclosure sentiment. Conversely, the relationship is attenuated in banks with substantial goodwill and a more positive disclosure tone. Sub-sample analyses show that the effect is particularly strong for smaller banks and those with elevated financial vulnerability. These findings have important implications for the digital transformation of the banking sector.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101080"},"PeriodicalIF":4.3,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144581231","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 : 2025-09-01Epub Date: 2025-06-25DOI: 10.1016/j.jbef.2025.101078
Augustine Tarkom , Leiza Nochebuena-Evans , Haibo Wang
This paper examines how female Chief Financial Officers (CFOs) influence working capital management in U.S. public firms, documenting that female CFOs are associated with significantly lower working capital days compared to their male counterparts. Our analysis reveals several important conditions that enhance female CFOs’ effectiveness. We find that their effectiveness strengthens with greater board gender diversity, diverse international representation, and formal business education, suggesting complementary effects between female executive leadership and board composition. The effectiveness of female CFOs is more pronounced in firms with higher compensation levels and in environments characterized by lower market concentration, higher competitive threats, and broader firm scope. These effects are further amplified under stronger network connectivity, higher managerial ability, and co-opted boards, but independent of the specific committee or board roles held. Our findings remain robust to multiple endogeneity tests, including system GMM estimation, propensity score matching, entropy balancing, copula approaches. Our study contributes to the literature on gender in corporate finance by identifying working capital management as an important channel through which female executives enhance operational efficiency, while also highlighting the organizational and market conditions that amplify their effectiveness. Offering a business case for maintaining and strengthening diversity initiatives even in the face of social anti-activism pressures.
{"title":"The effectiveness of female chief financial officers in managing working capital: Evidence from US-listed firms","authors":"Augustine Tarkom , Leiza Nochebuena-Evans , Haibo Wang","doi":"10.1016/j.jbef.2025.101078","DOIUrl":"10.1016/j.jbef.2025.101078","url":null,"abstract":"<div><div>This paper examines how female Chief Financial Officers (CFOs) influence working capital management in U.S. public firms, documenting that female CFOs are associated with significantly lower working capital days compared to their male counterparts. Our analysis reveals several important conditions that enhance female CFOs’ effectiveness. We find that their effectiveness strengthens with greater board gender diversity, diverse international representation, and formal business education, suggesting complementary effects between female executive leadership and board composition. The effectiveness of female CFOs is more pronounced in firms with higher compensation levels and in environments characterized by lower market concentration, higher competitive threats, and broader firm scope. These effects are further amplified under stronger network connectivity, higher managerial ability, and co-opted boards, but independent of the specific committee or board roles held. Our findings remain robust to multiple endogeneity tests, including system GMM estimation, propensity score matching, entropy balancing, copula approaches. Our study contributes to the literature on gender in corporate finance by identifying working capital management as an important channel through which female executives enhance operational efficiency, while also highlighting the organizational and market conditions that amplify their effectiveness. Offering a business case for maintaining and strengthening diversity initiatives even in the face of social anti-activism pressures.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101078"},"PeriodicalIF":4.3,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144500896","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 : 2025-09-01Epub Date: 2025-08-15DOI: 10.1016/j.jbef.2025.101095
CHARISA DE KLERK , ZACK ENSLIN , JOHN HALL
Over the past few years professional skepticism has received attention from various stakeholders such as policymakers, practitioners, regulators, and the public. The interest was driven by financial professionals’ failure to apply professional skepticism and the damage it has caused the reputation of the accounting profession. This study investigates the relationship between professional skepticism as a trait and decision-making biases, while also exploring how factors such as gender, age, experience, and personality traits influence financial professionals’ susceptibility to decision-making biases. The study adopted an advanced statistical technique using structural equation modelling to explore the relationship between professional skepticism and decision-making biases. Online surveys were distributed and completed by professional accountants who have professional accreditation with the International Auditing and Assurance Board (IAASB). Findings revealed the presence to a significant extent among financial professionals of confirmation bias, misconceptions of regression to the mean bias, conjunctive event bias, overconfidence bias, and affect bias. Further findings reveal that specific constructs within the professional skepticism trait such as questioning mind, suspension of judgement, search for knowledge, and self-determining, show significant positive (and in some instances negative) relationships with decision-making biases. Gender, experience, and personality traits (such as extraversion and neuroticism) were found to influence susceptibility to certain biases. This research contributes to literature, offering insights into the relationship between professional skepticism and decision-making biases, underlining the importance of understanding skepticism’s implications for decision-makers.
{"title":"Professional skepticism and behavioral bias in financial professionals","authors":"CHARISA DE KLERK , ZACK ENSLIN , JOHN HALL","doi":"10.1016/j.jbef.2025.101095","DOIUrl":"10.1016/j.jbef.2025.101095","url":null,"abstract":"<div><div>Over the past few years professional skepticism has received attention from various stakeholders such as policymakers, practitioners, regulators, and the public. The interest was driven by financial professionals’ failure to apply professional skepticism and the damage it has caused the reputation of the accounting profession. This study investigates the relationship between professional skepticism as a trait and decision-making biases, while also exploring how factors such as gender, age, experience, and personality traits influence financial professionals’ susceptibility to decision-making biases. The study adopted an advanced statistical technique using structural equation modelling to explore the relationship between professional skepticism and decision-making biases. Online surveys were distributed and completed by professional accountants who have professional accreditation with the International Auditing and Assurance Board (IAASB). Findings revealed the presence to a significant extent among financial professionals of confirmation bias, misconceptions of regression to the mean bias, conjunctive event bias, overconfidence bias, and affect bias. Further findings reveal that specific constructs within the professional skepticism trait such as questioning mind, suspension of judgement, search for knowledge, and self-determining, show significant positive (and in some instances negative) relationships with decision-making biases. Gender, experience, and personality traits (such as extraversion and neuroticism) were found to influence susceptibility to certain biases. This research contributes to literature, offering insights into the relationship between professional skepticism and decision-making biases, underlining the importance of understanding skepticism’s implications for decision-makers.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101095"},"PeriodicalIF":4.7,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144878978","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 : 2025-09-01Epub Date: 2025-08-15DOI: 10.1016/j.jbef.2025.101093
Lihui Tian , Haifeng Wu , Xiaoman Zhu
This paper explores the impacts and mechanisms of climate risk perception on the realization of environmental responsibility from a micro-firm perspective. We selected the data of Chinese A-share listed companies from 2012 to 2022 as a sample, and used text mining techniques and machine learning algorithms to construct corporate-level climate risk perception indicators, and then examined the impact of climate risk perception on corporate environmental responsibility. The empirical results show that (i) Climate risk perception can effectively improve corporate environmental performance (E score). (ii) Climate risk perception can motivate corporations to achieve environmental responsibility through three channels: enhancing diversification, promoting green technology innovation, and increasing environmental investments. (iii) Expansion analyses show that financial support, economic policy synergies, and institutional synergies can enhance the facilitating effect of climate risk perception on corporate environmental responsibility. This study provides empirical evidence for corporations to address climate risks and achieve sustainable development.
{"title":"Does climate risk perception drive the realization of corporate environmental responsibility?","authors":"Lihui Tian , Haifeng Wu , Xiaoman Zhu","doi":"10.1016/j.jbef.2025.101093","DOIUrl":"10.1016/j.jbef.2025.101093","url":null,"abstract":"<div><div>This paper explores the impacts and mechanisms of climate risk perception on the realization of environmental responsibility from a micro-firm perspective. We selected the data of Chinese A-share listed companies from 2012 to 2022 as a sample, and used text mining techniques and machine learning algorithms to construct corporate-level climate risk perception indicators, and then examined the impact of climate risk perception on corporate environmental responsibility. The empirical results show that (i) Climate risk perception can effectively improve corporate environmental performance (E score). (ii) Climate risk perception can motivate corporations to achieve environmental responsibility through three channels: enhancing diversification, promoting green technology innovation, and increasing environmental investments. (iii) Expansion analyses show that financial support, economic policy synergies, and institutional synergies can enhance the facilitating effect of climate risk perception on corporate environmental responsibility. This study provides empirical evidence for corporations to address climate risks and achieve sustainable development.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101093"},"PeriodicalIF":4.7,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144861050","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 : 2025-07-16DOI: 10.1016/j.jbef.2025.101083
Yixuan Rui, Robert B. Durand
Hedge funds tend to significantly reduce their shareholdings when a firm’s short interest is high and its share price is close to its 52-week high. In addition, hedge funds in general are more likely to increase their holdings when the share price is falling away from its 52-week high and the short interest is low. Mutual funds, pension funds, and other institutional investors typically do not engage in such specialized trading strategies. The trading behavior of hedge funds demonstrates that they follow a contrarian strategy and use short interest to exploit the near-term reversal of price movements.
{"title":"Hedge Funds, Short Sales, and the 52-week High","authors":"Yixuan Rui, Robert B. Durand","doi":"10.1016/j.jbef.2025.101083","DOIUrl":"10.1016/j.jbef.2025.101083","url":null,"abstract":"<div><div>Hedge funds tend to significantly <em>reduce</em> their shareholdings when a firm’s short interest is high and its share price is close to its 52-week high. In addition, hedge funds in general are more likely to <em>increase</em> their holdings when the share price is falling away from its 52-week high and the short interest is low. Mutual funds, pension funds, and other institutional investors typically do not engage in such specialized trading strategies. The trading behavior of hedge funds demonstrates that they follow a contrarian strategy and use short interest to exploit the near-term reversal of price movements.</div></div>","PeriodicalId":47026,"journal":{"name":"Journal of Behavioral and Experimental Finance","volume":"47 ","pages":"Article 101083"},"PeriodicalIF":4.7,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144842626","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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