Pub Date : 2026-06-01Epub Date: 2026-02-09DOI: 10.1016/j.ememar.2026.101450
Yue Xu , Wei Jiang , Sujuan Xie
To maximize the value of their business alliances, suppliers and their major customers may engage in collusive behavior that leverages information sharing and other cooperative mechanisms. Using a unique financial dataset covering the three years before Chinese firms' initial public offerings (IPOs) and data on the top five customers disclosed in Chinese supplier firms' prospectuses, we examine whether supplier–customer ownership connections facilitate opportunistic accrual-based earnings management. We find that ownership connections are significantly associated with higher pre-IPO earnings management, a result that is robust to an instrumental variable approach, propensity score matching, and alternative definitions of key measures. Further analyses reveal that the IPO review committee of the China Securities Regulatory Commission (CSRC) detects such behavior when earnings manipulation is severe, while investors fail to recognize it at the time of listing but gradually adjust in the post-IPO period. The impact of ownership connections on opportunistic earnings management is more pronounced for firms without political connections, in durable goods industries, and located in regions with a weak legal environment. Overall, our findings suggest that supplier–customer ownership connections can serve as a structural mechanism enabling collusive financial reporting prior to IPOs.
{"title":"Interconnected ownership and earnings management: Supplier-customer collusion in China's IPO context","authors":"Yue Xu , Wei Jiang , Sujuan Xie","doi":"10.1016/j.ememar.2026.101450","DOIUrl":"10.1016/j.ememar.2026.101450","url":null,"abstract":"<div><div>To maximize the value of their business alliances, suppliers and their major customers may engage in collusive behavior that leverages information sharing and other cooperative mechanisms. Using a unique financial dataset covering the three years before Chinese firms' initial public offerings (IPOs) and data on the top five customers disclosed in Chinese supplier firms' prospectuses, we examine whether supplier–customer ownership connections facilitate opportunistic accrual-based earnings management. We find that ownership connections are significantly associated with higher pre-IPO earnings management, a result that is robust to an instrumental variable approach, propensity score matching, and alternative definitions of key measures. Further analyses reveal that the IPO review committee of the China Securities Regulatory Commission (CSRC) detects such behavior when earnings manipulation is severe, while investors fail to recognize it at the time of listing but gradually adjust in the post-IPO period. The impact of ownership connections on opportunistic earnings management is more pronounced for firms without political connections, in durable goods industries, and located in regions with a weak legal environment. Overall, our findings suggest that supplier–customer ownership connections can serve as a structural mechanism enabling collusive financial reporting prior to IPOs.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101450"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146174009","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 : 2026-06-01Epub Date: 2025-12-16DOI: 10.1016/j.ememar.2025.101431
Karam Kim , Jonathan A. Batten , Doojin Ryu
This study examines whether market sentiment affects innovation investment by firms in an emerging market, focusing on Korean firms. We find a significantly positive relationship between market sentiment and innovation investment. For financially constrained firms, sentiment increases both innovation and physical investment, which indicates reliance on sentiment driven equity financing. Firms that are affiliated with chaebols are more likely to adjust research and development investment in response to market sentiment. During periods of high market uncertainty such as the COVID 19 period, the effect of market sentiment on research and development decisions is stronger for financially unconstrained firms. Managerial sentiment amplifies the effect of market sentiment on innovation but does not influence physical investment. Our results show that sentiment acts as an alternative financing mechanism that supports innovation in financially constrained firms.
{"title":"Does sentiment influence corporate innovation investment?","authors":"Karam Kim , Jonathan A. Batten , Doojin Ryu","doi":"10.1016/j.ememar.2025.101431","DOIUrl":"10.1016/j.ememar.2025.101431","url":null,"abstract":"<div><div>This study examines whether market sentiment affects innovation investment by firms in an emerging market, focusing on Korean firms. We find a significantly positive relationship between market sentiment and innovation investment. For financially constrained firms, sentiment increases both innovation and physical investment, which indicates reliance on sentiment driven equity financing. Firms that are affiliated with chaebols are more likely to adjust research and development investment in response to market sentiment. During periods of high market uncertainty such as the COVID 19 period, the effect of market sentiment on research and development decisions is stronger for financially unconstrained firms. Managerial sentiment amplifies the effect of market sentiment on innovation but does not influence physical investment. Our results show that sentiment acts as an alternative financing mechanism that supports innovation in financially constrained firms.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101431"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145947974","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 : 2026-06-01Epub Date: 2026-01-22DOI: 10.1016/j.ememar.2026.101440
Nursultan Abdullaev , Rustam Ibragimov
Several works in the literature have focused on the analysis of key stylized facts of financial and cryptocurrency returns linked to fundamental problems of efficiency and predictability of financial and cryptocurrency markets, including heavy tails, absence of linear autocorrelations and volatility clustering. This paper provides a study of the above properties of Bitcoin and Ethereum markets using recently proposed robust, valid and statistically justified definitions of and methods for inference on market (in)efficiency, volatility clustering, and nonlinear dependence in return time series. In contrast to existing approaches, the inference methods used in the analysis are robust to heavy-tailedness, dependence and nonlinear dynamics of returns. The results of the study indicate that Bitcoin and Ethereum returns exhibit heavy tails, uncorrelatedness over time and volatility clustering largely similar to those in developed financial markets. The analysis has important implications for cryptocurrency pricing, market efficiency, econometric modelling, risk management, market participants and regulators.
{"title":"Stylized facts of cryptocurrency markets: Robust definitions and inference approaches","authors":"Nursultan Abdullaev , Rustam Ibragimov","doi":"10.1016/j.ememar.2026.101440","DOIUrl":"10.1016/j.ememar.2026.101440","url":null,"abstract":"<div><div>Several works in the literature have focused on the analysis of key stylized facts of financial and cryptocurrency returns linked to fundamental problems of efficiency and predictability of financial and cryptocurrency markets, including heavy tails, absence of linear autocorrelations and volatility clustering. This paper provides a study of the above properties of Bitcoin and Ethereum markets using recently proposed robust, valid and statistically justified definitions of and methods for inference on market (in)efficiency, volatility clustering, and nonlinear dependence in return time series. In contrast to existing approaches, the inference methods used in the analysis are robust to heavy-tailedness, dependence and nonlinear dynamics of returns. The results of the study indicate that Bitcoin and Ethereum returns exhibit heavy tails, uncorrelatedness over time and volatility clustering largely similar to those in developed financial markets. The analysis has important implications for cryptocurrency pricing, market efficiency, econometric modelling, risk management, market participants and regulators.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101440"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146174008","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}
This study examines how bank ownership types and governance changes affect small business lending in Indonesia from 2009–2019. Using a novel two-stage estimation approach proposed by Kripfganz and Schwarz (2019), we analyse differences between domestic and foreign banks, as well as the static, selection, and dynamic effects of ownership changes. The Indonesian context is particularly relevant due to banking sector reforms, including foreign acquisition limits and consolidation policies implemented after the 1997–1998 Asian financial crisis. We contribute to the literature by: (i) focusing on a large, profitable emerging market dominated by government-owned banks; (ii) investigating both static ownership and structural changes; (iii) including foreign acquiring banks in our analysis of foreign ownership; and (iv) applying an innovative econometric methodology that offers advantages over traditional GMM estimators. We find no statistically significant differences in the proportion of small business loans between these bank types, whether measured as a percentage of total loans or total assets. However, when analysing sub-periods (2009–2014 and 2015–2019), the results suggest that foreign banks became less oriented towards SME lending after 2015, coinciding with changes in the Indonesian banking industry. The differences among static, selection and dynamic effects are only substantial regarding their magnitude, but not their significance. Hence, by examining whether the effects of changes in governance on small business lending remain constant or evolve over time following ownership transitions, we provide insights into the sustainability of banking sector reforms and their impact on SME financing. Our findings also have implications for understanding how SME access to finance in emerging markets is impacted by bank governance. In addition, our methodological application could be considered to reassess the impact of different bank property types in other contexts, given the robustness it confers to the results.
{"title":"Bank ownership, governance changes, and small business lending in Indonesia: A two-stage estimation approach","authors":"Ririen Setiati Riyanti , Iván Arribas , Silvia Pazzi , Emili Tortosa-Ausina","doi":"10.1016/j.ememar.2026.101452","DOIUrl":"10.1016/j.ememar.2026.101452","url":null,"abstract":"<div><div>This study examines how bank ownership types and governance changes affect small business lending in Indonesia from 2009–2019. Using a novel two-stage estimation approach proposed by Kripfganz and Schwarz (2019), we analyse differences between domestic and foreign banks, as well as the static, selection, and dynamic effects of ownership changes. The Indonesian context is particularly relevant due to banking sector reforms, including foreign acquisition limits and consolidation policies implemented after the 1997–1998 Asian financial crisis. We contribute to the literature by: (i) focusing on a large, profitable emerging market dominated by government-owned banks; (ii) investigating both static ownership and structural changes; (iii) including foreign acquiring banks in our analysis of foreign ownership; and (iv) applying an innovative econometric methodology that offers advantages over traditional GMM estimators. We find no statistically significant differences in the proportion of small business loans between these bank types, whether measured as a percentage of total loans or total assets. However, when analysing sub-periods (2009–2014 and 2015–2019), the results suggest that foreign banks became less oriented towards SME lending after 2015, coinciding with changes in the Indonesian banking industry. The differences among static, selection and dynamic effects are only substantial regarding their magnitude, but not their significance. Hence, by examining whether the effects of changes in governance on small business lending remain constant or evolve over time following ownership transitions, we provide insights into the sustainability of banking sector reforms and their impact on SME financing. Our findings also have implications for understanding how SME access to finance in emerging markets is impacted by bank governance. In addition, our methodological application could be considered to reassess the impact of different bank property types in other contexts, given the robustness it confers to the results.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101452"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146174007","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 : 2026-06-01Epub Date: 2026-01-09DOI: 10.1016/j.ememar.2026.101437
Mingxing Shao , Tingyu Zhao , Wen Wen
Non-local chamber of commerce (NLC) is a private sector business association based on hometown networks that aims to assist in the development of member firms. We explore its effect on corporate innovation. Using a large sample of Chinese public companies from 2007 to 2020, we find a significantly positive effect on corporate innovation after firms join NLCs, indicating that NLCs help enhance corporate innovation. The finding remains robust after employing the instrumental variable approach, the Heckman two-stage model, propensity score matching, the entropy balancing approach, the difference-in-differences model, and several other robustness tests. Further analyses reveal that alleviating financing constraints, developing business partners, and improving information transparency are potential mechanisms through which non-local chambers of commerce help promote corporate innovation. Cross-sectional analyses reveal that the impact of NLCs on corporate innovation is more pronounced for firms operating in regions with lower social trust, tighter financing environments, and more competitive industries. Overall, the findings highlight the role of informal business networks in advancing corporate innovation in emerging markets.
{"title":"Non-local chambers of commerce and corporate innovation","authors":"Mingxing Shao , Tingyu Zhao , Wen Wen","doi":"10.1016/j.ememar.2026.101437","DOIUrl":"10.1016/j.ememar.2026.101437","url":null,"abstract":"<div><div>Non-local chamber of commerce (NLC) is a private sector business association based on hometown networks that aims to assist in the development of member firms. We explore its effect on corporate innovation. Using a large sample of Chinese public companies from 2007 to 2020, we find a significantly positive effect on corporate innovation after firms join NLCs, indicating that NLCs help enhance corporate innovation. The finding remains robust after employing the instrumental variable approach, the Heckman two-stage model, propensity score matching, the entropy balancing approach, the difference-in-differences model, and several other robustness tests. Further analyses reveal that alleviating financing constraints, developing business partners, and improving information transparency are potential mechanisms through which non-local chambers of commerce help promote corporate innovation. Cross-sectional analyses reveal that the impact of NLCs on corporate innovation is more pronounced for firms operating in regions with lower social trust, tighter financing environments, and more competitive industries. Overall, the findings highlight the role of informal business networks in advancing corporate innovation in emerging markets.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101437"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146024679","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 : 2026-06-01Epub Date: 2025-12-09DOI: 10.1016/j.ememar.2025.101425
Anna Burova , Elena Deryugina , Nadezhda Ivanova , Maxim Morozov , Natalia Turdyeva
The energy transition and the climate policies accompanying it represent one of the major challenges for the Russian economy. Using a CGE model and a firm-level financial model, we evaluate transition risks for Russia's financial system. Our analysis reveals that the main costs to Russia from global net-zero efforts are largely exogenous, stemming from a decline in the value of its energy products rather than from domestic climate policies. Moreover, the effects of global climate actions in the Net Zero scenario exceed those of implementing a domestic emissions trading system aligned with Russia's low-carbon development strategy. The granular data in the satelite financial models makes it possible to evaluate the concentration of sectoral debt burden and estimate the impact of climate regulations on sectors' equity valuations.
{"title":"Transition to a low-carbon economy and its implications for financial stability in Russia","authors":"Anna Burova , Elena Deryugina , Nadezhda Ivanova , Maxim Morozov , Natalia Turdyeva","doi":"10.1016/j.ememar.2025.101425","DOIUrl":"10.1016/j.ememar.2025.101425","url":null,"abstract":"<div><div>The energy transition and the climate policies accompanying it represent one of the major challenges for the Russian economy. Using a CGE model and a firm-level financial model, we evaluate transition risks for Russia's financial system. Our analysis reveals that the main costs to Russia from global net-zero efforts are largely exogenous, stemming from a decline in the value of its energy products rather than from domestic climate policies. Moreover, the effects of global climate actions in the Net Zero scenario exceed those of implementing a domestic emissions trading system aligned with Russia's low-carbon development strategy. The granular data in the satelite financial models makes it possible to evaluate the concentration of sectoral debt burden and estimate the impact of climate regulations on sectors' equity valuations.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101425"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146078826","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 : 2026-06-01Epub Date: 2026-02-02DOI: 10.1016/j.ememar.2026.101447
Martin Hodula , Lukáš Pfeifer , David Pacoň
This paper examines the design and outcomes of mortgage payment holidays introduced during the COVID-19 pandemic. The Czech Republic provides a useful setting, combining a broad legislative moratorium with a subsequent, eligibility-based bank moratorium. Using confidential loan-level data, we document that legislative moratoria were used mainly as a precautionary liquidity tool, while bank moratoria were accessed predominantly by higher-risk borrowers. A central contribution of the paper is to provide loan-level evidence on mortgage performance after these programs ended. We find that arrears rose only moderately once repayments resumed, though the increase was noticeably larger for bank-moratoria borrowers, reflecting their weaker risk profiles. We further show that stricter borrower-based regulations (LTV, DTI, DSTI) in place before the pandemic were associated with lower moratoria uptake and reduced post-moratoria arrears. The results illustrate how the interaction between program design and pre-existing regulation shaped both the use of payment holidays and their credit-risk implications.
{"title":"Payment holidays, credit risk, and borrower-based limits: Insights from the Czech mortgage market","authors":"Martin Hodula , Lukáš Pfeifer , David Pacoň","doi":"10.1016/j.ememar.2026.101447","DOIUrl":"10.1016/j.ememar.2026.101447","url":null,"abstract":"<div><div>This paper examines the design and outcomes of mortgage payment holidays introduced during the COVID-19 pandemic. The Czech Republic provides a useful setting, combining a broad legislative moratorium with a subsequent, eligibility-based bank moratorium. Using confidential loan-level data, we document that legislative moratoria were used mainly as a precautionary liquidity tool, while bank moratoria were accessed predominantly by higher-risk borrowers. A central contribution of the paper is to provide loan-level evidence on mortgage performance after these programs ended. We find that arrears rose only moderately once repayments resumed, though the increase was noticeably larger for bank-moratoria borrowers, reflecting their weaker risk profiles. We further show that stricter borrower-based regulations (LTV, DTI, DSTI) in place before the pandemic were associated with lower moratoria uptake and reduced post-moratoria arrears. The results illustrate how the interaction between program design and pre-existing regulation shaped both the use of payment holidays and their credit-risk implications.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101447"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146174120","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 : 2026-06-01Epub Date: 2026-02-03DOI: 10.1016/j.ememar.2026.101439
Narjess Boubakri, Efe Cotelioglu, Anis Samet
We investigate how government ownership affects stock price crash risk in banks using an international sample of developed and emerging economies from 2002 to 2023. While state ownership that embodies soft budget constraints may reduce crash risk, it could also increase this risk due to the extreme agency problems and political interference. Using a sample of 529 banks from 38 countries, we find that government ownership significantly lowers banks’ crash risk, primarily through enhanced perceptions of sovereign support. This effect appears to be more pronounced during the global financial crisis and in countries with higher government subsidies, which provides support to the soft budget constraint channel. However, the effect diminishes in countries with left-leaning governments, where political interference undermines the stabilizing benefits of state ownership. We further show that the stabilizing effect of government ownership is concentrated in countries with stronger governance institutions. Our results remain robust after addressing potential endogeneity through instrumental variables and propensity score matching.
{"title":"Government ownership and stock price crash risk in banks: International evidence","authors":"Narjess Boubakri, Efe Cotelioglu, Anis Samet","doi":"10.1016/j.ememar.2026.101439","DOIUrl":"10.1016/j.ememar.2026.101439","url":null,"abstract":"<div><div>We investigate how government ownership affects stock price crash risk in banks using an international sample of developed and emerging economies from 2002 to 2023. While state ownership that embodies soft budget constraints may reduce crash risk, it could also increase this risk due to the extreme agency problems and political interference. Using a sample of 529 banks from 38 countries, we find that government ownership significantly lowers banks’ crash risk, primarily through enhanced perceptions of sovereign support. This effect appears to be more pronounced during the global financial crisis and in countries with higher government subsidies, which provides support to the soft budget constraint channel. However, the effect diminishes in countries with left-leaning governments, where political interference undermines the stabilizing benefits of state ownership. We further show that the stabilizing effect of government ownership is concentrated in countries with stronger governance institutions. Our results remain robust after addressing potential endogeneity through instrumental variables and propensity score matching.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101439"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146174119","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 : 2026-06-01Epub Date: 2026-01-13DOI: 10.1016/j.ememar.2026.101438
Wencheng Cao , Yuan George Shan , Joey Wenling Yang
Using a sample of the listed state-owned enterprises (SOEs) in China, this study investigates the impact of the compliance management reform on opportunistic insider trading. The results show that the reform significantly constrains opportunistic insider selling by executives in SOEs, while having insignificant impact on insider purchases. Mechanism analyses suggest that the effect primarily operates through improvements in corporate governance quality and reductions in information asymmetry. Moreover, the inhibitory effect of compliance management is more pronounced among local SOEs, firms subject to weaker external oversight, those located in regions with underdeveloped institutional environments, and it primarily suppresses opportunistic insider selling by directors and senior management. Additional analysis indicates that compliance management significantly mitigates stock price crash risk and contributes to capital market stability. This study contributes to the literature on the determinants of opportunistic insider trading by highlighting the role of compliance management as an external governance mechanism. It also provides practical implications for policymakers aiming to integrate government regulation with internal compliance practices to promote the high-quality development of capital markets.
{"title":"Asymmetric impact of compliance management reform on opportunistic insider trading: Evidence from Chinese state-owned enterprises","authors":"Wencheng Cao , Yuan George Shan , Joey Wenling Yang","doi":"10.1016/j.ememar.2026.101438","DOIUrl":"10.1016/j.ememar.2026.101438","url":null,"abstract":"<div><div>Using a sample of the listed state-owned enterprises (SOEs) in China, this study investigates the impact of the compliance management reform on opportunistic insider trading. The results show that the reform significantly constrains opportunistic insider selling by executives in SOEs, while having insignificant impact on insider purchases. Mechanism analyses suggest that the effect primarily operates through improvements in corporate governance quality and reductions in information asymmetry. Moreover, the inhibitory effect of compliance management is more pronounced among local SOEs, firms subject to weaker external oversight, those located in regions with underdeveloped institutional environments, and it primarily suppresses opportunistic insider selling by directors and senior management. Additional analysis indicates that compliance management significantly mitigates stock price crash risk and contributes to capital market stability. This study contributes to the literature on the determinants of opportunistic insider trading by highlighting the role of compliance management as an external governance mechanism. It also provides practical implications for policymakers aiming to integrate government regulation with internal compliance practices to promote the high-quality development of capital markets.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"72 ","pages":"Article 101438"},"PeriodicalIF":4.6,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145981360","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 : 2026-03-01Epub Date: 2025-12-16DOI: 10.1016/j.ememar.2025.101429
Yang Hu , Wei Cui , Yongli Zhang
This paper investigates the impact of superstition, specifically beliefs in misfortune during one's zodiac year, on household consumption in China. Utilizing data from the China Family Panel Studies (CFPS), our analysis reveals a significant decrease in household consumption during individuals' zodiac year. Further exploration indicates that this decline is attributed to heightened risk perception and an “infectious effect”, where the superstition spread through social interactions. The zodiac effect is more pronounced among individuals with Eastern religious beliefs, the elderly, non-Communist Party members, those without college degrees, and urban residents. Additional scrutiny shows that this effect permeates various consumption categories, with an increased impact on durables. Importantly, no anticipatory or lingering impacts are observed, suggesting the effect is contained to the zodiac year. Although financial well-being remains unchanged, the decline in self-reported happiness points to non-monetary welfare losses stemming from superstitiously motivated consumption cuts.
{"title":"Effects of superstition on household consumption: Evidence from “zodiac-year” beliefs in China","authors":"Yang Hu , Wei Cui , Yongli Zhang","doi":"10.1016/j.ememar.2025.101429","DOIUrl":"10.1016/j.ememar.2025.101429","url":null,"abstract":"<div><div>This paper investigates the impact of superstition, specifically beliefs in misfortune during one's zodiac year, on household consumption in China. Utilizing data from the China Family Panel Studies (CFPS), our analysis reveals a significant decrease in household consumption during individuals' zodiac year. Further exploration indicates that this decline is attributed to heightened risk perception and an “infectious effect”, where the superstition spread through social interactions. The zodiac effect is more pronounced among individuals with Eastern religious beliefs, the elderly, non-Communist Party members, those without college degrees, and urban residents. Additional scrutiny shows that this effect permeates various consumption categories, with an increased impact on durables. Importantly, no anticipatory or lingering impacts are observed, suggesting the effect is contained to the zodiac year. Although financial well-being remains unchanged, the decline in self-reported happiness points to non-monetary welfare losses stemming from superstitiously motivated consumption cuts.</div></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":"71 ","pages":"Article 101429"},"PeriodicalIF":4.6,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145797803","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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