International Journal of Finance & Economics最新文献

This study uses data from 31 provinces in China between 2006 and 2020 to investigate the impact of financial structure on economic resilience. The findings show a significant inverted U-shaped relationship between financial structure and economic resilience. Financial structure has a positive effect on economic resilience before reaching the inflection point; however, the impact becomes negative after reaching it. Endogeneity and robustness tests support this conclusion. Furthermore, factors such as crises, economic development levels, and the financial ecosystem moderate the relationship between financial structure and economic resilience. Finally, convergence tests reveal that disparities in financial structure and economic resilience across different regions in China are gradually narrowing, with financial structure converging towards the inflection point.

This study explores how FinTech advancements, economic policy uncertainty (EPU), and social media sentiments affect bank stock returns in the United States. We analysed data from 338 listed banks between 2010 and 2022, using a two-step Generalised Method of Moments estimator to address potential biases. Our findings show that EPU has the most significant negative impact on bank stock returns, highlighting the importance of stable policies for maintaining investor confidence. While FinTech advancements generally boost bank performance, they can temporarily hurt profitability due to initial costs and market scepticism. Positive social media sentiments, especially from platforms like Twitter, significantly enhance investor confidence and bank stock returns. However, when combined with high EPU, the positive effects of FinTech and social media are diminished, showing the density of these interactions. Robustness checks, including feasible generalised least squares and control variables such as unemployment, political stability, and the Z-Score, confirm the consistency of our results. This study provides valuable insights for policymakers, financial institutions, and researchers, emphasising the need for strategies that integrate technological, social and policy factors to support financial stability and market performance.

This paper examines the short-term market reaction of aircraft commercial manufacturers and airline industry for eight Boeing aircraft incidents occurred in the first semester of 2024. Using an event study, we observe a negative and statistically significant stock price reaction for Boeing around the dates of the aircraft incidents and positive statistically significant abnormal returns to its rivals Airbus and Embraer. The competitive effect explains this result. As for the airline industry, the results do not show the existence of statistically significant effects on share prices. The absence of fatalities associated with these events helps to explain the lack of statistical significance for airline industry. However, a more detailed analysis of the sample reveals different patterns of behaviour of airline share prices—a negative and statistically significant abnormal return for airline firms with a fleet with a high weight of Boeing aircraft, for low-cost carriers and for airlines with a poor safety record. Since all of these airlines use Boeing aircrafts, it seems there is a ‘guilt by association’ effect. These reactions are also reinforced or mitigated by airline-specific characteristics such as size, leverage, and firm age. Practical implications of our findings are provided.

As carbon neutrality and peak CO₂ emissions approach, an increasing number of enterprises are being required—either willingly or under duress—to disclose their commitments to combating climate change. In response, Chinese listed enterprises are showing that they are willing to embrace social responsibility and maintain environmental reputation by actively taking part in the Carbon Disclosure Project (CDP). The motivation behind and efficacy of these disclosures, however, remain unclear due to the inherent challenge of integrating environmentally beneficial activities into the supply base. Accordingly, this study examines the relationship between upstream supply chain and climate change disclosure levels of enterprises through the lens of dynamic operational capability. Using an ordinal logistic regression analysis of 1092 climate change disclosures of Chinese listed enterprises, we find that enterprises with high supplier concentration have higher levels of climate change disclosure. This impact is further amplified in firms with higher levels of lean production and high absorptive capacity, yet attenuated in firms that prefer to use a differentiation strategy. In addition, this study further utilises climate change disclosure rating as a mediating effect to explore its effectiveness on enterprises' profitability. Overall, this study reveals the significance of supplier concentration and key dynamic operational capabilities to climate change disclosure, contributing to the stream of environmental disclosure in suppliers' cooperation.

Understanding the cyclical nature of the public debt-to-GDP ratio is essential for policy decision-making. This article proposes a theoretical framework to explain the dynamics of the public debt-to-GDP ratio over the business cycle by categorising them into three phases. There is a bounded interval within which the public debt-to-GDP ratio is in the counter-cyclical phase, increasing in booms and decreasing in recessions. The debt-to-GDP ratio is in the accumulation phase when it is below the interval and in the reduction phase when it is above the interval. Importantly, the accumulation or reduction phase is expected to be followed by the counter-cyclical phase. The bounded interval is not static, implying the significant recurrence of the counter-cyclical phase and the time-varying cyclical properties of the debt-to-GDP ratio. This study further proposes an iteration scheme to estimate the interval. Empirical results from five developed and five developing countries indicate that the patterns of the three phases differ across countries but exhibit similar trends within each country group. External factors such as income risks and austerity can change the bounds of the interval, thereby shifting the public debt dynamics to the accumulation or reduction from the counter-cyclical phase.

Intergenerational succession is an important issue in family firm research. Utilising data from Chinese family firms, we examine the impact of second-generation involvement (i.e., involving second-generation family members as directors or top executives) on earnings management. Our results indicate that second-generation involvement can decrease earnings management, particularly regarding real earnings management. This suggests that second-generation managers have incentives to protect the family's reputation and prioritise long-term benefits, thus avoiding the negative consequences of real earnings management on socioemotional wealth. The heterogeneity analysis shows that the curbing effect on real earnings management is stronger when second-generation members have longer tenure, higher education levels, overseas backgrounds, and are female, older, or in key positions. Additionally, the effect is more pronounced in firms with greater institutional ownership and analyst coverage. This study provides valuable insights into the relationship between second-generation involvement and earnings management in family firms.

This study examines the influence of environmental, social, and governance (ESG) performance on analysts' tracking decisions. This study develops a theoretical model involving managers, funds, and brokers. The model finds that under optimal decision-making conditions, ESG ratings have a positive impact on analyst coverage. Empirical research indicates that ESG performance positively influences analyst coverage in subsequent years. All causal inference methods confirm the significant positive causal effect of ESG performance on analysts' tracking decisions. Heterogeneity analysis shows that analysts pay more attention to ESG ratings for companies with higher market value. The mechanism analysis suggests that strong ESG performance can increase analyst coverage by reducing information asymmetry and attracting mutual fund investors. These findings provide valuable insights into the relationship between ESG performance and analysts' behaviour.

Corporate charitable donations, a form of corporate social responsibility (CSR) initiative, are increasingly important for improving a firm's reputation and fostering long-term societal benefits. Nevertheless, despite the increasing level of interest in corporate donations among managers, academics, and the business community, literature on how and whether corporate donations impact earnings management is still scarce. As a result, this study aims to examine the relationship between corporate charitable donations and earnings management (EM) practices, considering the interacting role of boardroom gender diversity. Based on stakeholder theory, we posit that donating firms behave ethically to meet shareholders' needs and society expectations, thereby eliminating the opportunistic perspective of earnings management. Furthermore, the presence of female directors' acts as a signal for financial reporting quality and mitigates the agent-principal conflicts of interests. By using a fixed effect regression on panel data of 79 Turkish-listed firms from 2008 to 2022, the results show that corporate donations are positively associated with discretionary accruals, suggesting that donating firms are more likely to engage in earnings management. The results also show that gender diversity on boards helps greatly in mitigating the positive link between corporate donations and income-increasing abnormal accruals. Our findings have important implications for investors when assessing donating firms since such donations may be used as a strategy mechanism to window-dress their reputation. This article advances our understanding of the interplay among corporate donations, board gender diversity, and earnings management in an emerging market.

In today's competitive global economy, innovation is crucial for growth, competitiveness and societal progress. This study examines the relationship between various economic uncertainties and innovation outputs from 1987 to 2022 in the United States and Japan. Using the PMG-ARDL model, it analyzes the effects of economic policy uncertainty (EPU), monetary policy uncertainty (MPU), trade policy uncertainty (TPU) and fiscal policy uncertainty (FPU) on innovation. Pre-estimation techniques, including CD analysis, unit root analysis and cointegration analysis, ensure methodological rigour. The findings indicate that EPU, MPU, TPU and FPU negatively affect ICT exports and patent applications (PTA), as uncertainties hinder business decision-making and investment in research and development. However, MPU and TPU positively affect innovation in Japan, and MPU has a positive effect in the United States. These results highlight the importance of considering country-specific dynamics in policy formulation. Policymakers should enhance transparency, stability and communication to foster innovation. This study contributes by exploring the diverse impacts of economic uncertainties on innovation.

Utilising Twitter's daily negative investor sentiment index based on the Russian–Ukrainian war event, this study explores the impact of the investor sentiment index on company stock market returns and liquidity through a comprehensive analytical framework of panel regression and panel vector autoregression models. The results show that there is a negative correlation between the Twitter-based negative investor sentiment index and company stock returns, the direction of company stock inflows, and a positive correlation with stock trading volume; companies that do not respond to decisions promptly after the issuance of sanctions are more significantly affected by investor sentiment. Meanwhile, the findings of this study remain robust after using a system-generalised method of moments model to consider potential endogeneity and replacing the samples in different periods. Finally, the paper gives insights into the role of government agencies, investors and firms in facing major event shocks and predicting stock market performance.