International Journal of Finance & Economics最新文献

Although the importance of environmental, social and governance (ESG) practices on corporate performance has been acknowledged in the literature, the impact of ESG performance on corporate export intensity within the manufacturing sector has attracted limited attention. Additionally, the influence of corporate ownership structure on the association between ESG performance and export intensity remains understudied. We fill this gap by using data from 2012 to 2022 of Chinese listed manufacturing companies in the Shanghai Stock Exchange and Shenzhen Stock Exchange to examine the impact of corporate ESG performance on export intensity and the role of ownership structure in this link. Results indicate that enhanced ESG performance is positively related to export intensity. Such an effect is weakened for state-owned enterprises. We further propose that the potential mechanisms include alleviating financing constraints, promoting innovation, mitigating principal–agent problems and elevating reputation levels. The ownership structure significantly moderates the positive impact of ESG performance on export intensity. We suggest that small-scale enterprises are more prone to be influenced by the positive effect of ESG performance on export intensity than larger ones. Moreover, among the ESG subdimensions, the environmental and governance dimensions play more significant roles in enhancing export intensity than the social dimension. The findings shed light on how to reap ESG benefits for export-oriented manufacturing enterprises and promote their export intensity for firms' stakeholders and policymakers, thus providing practical policy recommendations.

Using a panel of 23 advanced economies over the period 1990–2020, this paper investigates the effect of structural reforms and institutional improvements on the probability of starting a fiscal adjustment, as well as on the probability that this fiscal adjustment will be successful and expansionary. We find that labour and product market reforms, institutional improvements in government efficiency, and enhanced financial development and access to money and capital markets have positive effects on the initiation and successful conclusion of a fiscal adjustment. At the same time, these factors increase the probability that a successful fiscal adjustment will also become expansionary, that is, it will lead to an increase in economic activity. The political ideology of the ruling party plays an important role in the interaction between reforms, institutional changes and fiscal adjustments.

This study uses the spatial panel model to explore the cross-agency spillover effects of bank internal regulation on systemic risk and the moderating effect of bank FinTech in the relationship between them. We construct spatial weight matrices for asset and liability homogenisation to capture the channels of systemic risk transmission in banks. The text analysis approach is used to measure the internal regulation of the bank and the FinTech level. Empirical results demonstrate that the local bank's internal regulation can significantly reduce its own systemic risk. The neighbouring banks' internal regulation can significantly reduce the systemic risk of the local bank. As the bank FinTech level increases, the role of bank internal regulation in reducing systemic risk will gradually decline. Additionally, both asset and liability homogenisation are potential channels for systemic risk spillover.

This study investigates financial stress connectedness across diverse levels of stress using the novel quantile connectedness methodology between 10 Asian economies and the United States considering 15 years of data. We find that the size of connectedness increases due to the spillover of financial stress shock at both higher (right tail) and lower (left tail) quantiles than at the median. However, the impact of US financial stress on the regional connectedness of Asian countries is relatively larger at the median quantile than at the 5th and 95th quantiles. This impact is very marginal for European countries across the quantiles. Hong Kong and Singapore emerged as the major economies across the quantiles of financial stress shock spillover both in the regional and global systems. In the rolling window framework, while the total financial stress spillover indices vary in a small range, the net directional position of each country changes from transmitter to receiver of financial stress and vice versa throughout the study period in both regional and global systems. The major policy implication for the Asian countries is to bring regional orientation to their policies related to trade and capital flows.

This study examines the asymmetric effect in the globalisation–poverty relationship in Africa from 1980 to 2020, focusing on low-income and middle-income countries. It investigates the roles of institutional quality and economic growth in this context. The research employs the Generalised Method of Moments (GMM), dynamic panel threshold analysis, and Method of Moments Quantile Regression (MM-QR). Findings indicate that in low-income African countries, globalisation is associated with poverty reduction, as shown by linear regression analysis. However, in middle-income countries, a threshold at 60% suggests that beyond this point, globalisation does not significantly reduce poverty. The MM-QR further confirms that globalisation's poverty-reducing effects are primarily seen around the median income level, rather than across the entire income spectrum. These results underscore the importance of considering income levels when evaluating globalisation's impact on poverty. Policymakers should note that the benefits of globalisation for poverty reduction vary with a country's income level. To maximise globalisation's poverty-reducing potential, economic growth should be promoted alongside it. This study highlights the need for context-specific approaches and policies to effectively harness globalisation's benefits for poverty reduction in Africa.

The frequent shocks arising from policy reforms, trade tensions and black swan events have significantly contributed to fluctuations in the foreign exchange (FX) markets. By employing the method of Granger causality in risk with multiple quantiles, this paper examines extreme risk spillovers between onshore and offshore Renminbi (RMB) FX markets from a directional perspective. The results indicate asymmetric spillover effects, with particular emphasis on the direction of appreciation risks. Additionally, we highlight that major financial events influence the direction of risk spillovers through information transmission mechanisms. For instance, the ‘811 reform’ amplifies offshore market spillovers, Sino–U.S. trade tensions enhance depreciation spillovers from the onshore market and the COVID-19 pandemic underscores the heightened significance of the extreme risk spillovers. Further mechanism and portfolio analyses confirm that both policy-driven and market-driven factors significantly impact extreme risk spillovers. Specifically, lower interest rates or an expanded money supply may trigger offshore appreciation risks, potentially serving as a hedge against onshore depreciation risks.

India's financial technology (FinTech) industry has experienced rapid growth in recent years. This has led to a greater emphasis on the connection between FinTech and cost efficiency. This research paper aims to investigate if banks with greater FinTech adoption exhibit greater cost efficiency and compare this Fintech influence on cost efficiency across various banks. To accomplish the research objectives, a novel Fintech index to measure FinTech innovation from both supply and demand perspectives is developed using data mining techniques and web crawler technology for Indian commercial banks. Further, to evaluate the relationship between Fintech and cost efficiency, efficiency scores are calculated using DEA (Data Envelopment Analysis) and the empirical analysis is conducted using a two-step system GMM (Generalised Method of Moments). The study reveals a positive association between Fintech development and cost efficiency. The higher the level of Fintech adoption, the greater the cost efficiency observed in banks. Additionally, the impact of FinTech on cost efficiency varies based on bank characteristics, with private sector banks experiencing a more substantial effect than Public Sector Banks (PSBs) and small banks benefiting more than large banks. This study pioneers the development of a Fintech index for scheduled commercial banks in India, offering valuable insights into the impact of FinTech on cost efficiency within emerging economies.

The study highlights the sustainable determinants of Foreign Direct Investment (FDI) inflows that the host nations entail by boosting foreign trade with the rest of the world. We cumulate four pillars of sustainability (environmental, economic, governance, and social) and identify the influence each pillar has on FDI inflows. The study uses a two-step system and difference Generalised Method of Moments (GMM) to assess the dynamic panel data for the top 20 emerging nations specified by IMF from 2005 to 2019. The results exhibit that past year values of FDI inflows influence the current year values, and a significant relationship exists between sustainable determinants and FDI inflows arriving in emerging economies. The pollution haven hypothesis has also been observed by deploying linear and non-linear associations of carbon emissions. Through the findings, we conclude that the quality of FDI must improve for host nations to prosper along the other dimensions of sustainability. The results also suggest that host countries' MNEs and businesses adopt sustainable practices and innovative strategies to automate FDI towards the attainment of sustainable development goals (SDGs) by 2030. The implications will aid host economies' policymakers in reiterating the sustainable determinants of FDI and foreign investors in acknowledging the choice of the economy to invest in.