Pub Date : 2025-01-11DOI: 10.1016/j.pacfin.2025.102671
Zhiling Cao , Xinbei Du , Lili Zhao
The study examines the impact of institutional investors' corporate site visits on the executive pay gap. Using data covering all A-share listed companies in China, our findings reveal a substantial reduction in the executive pay gap attributable to corporate site visits. This effect is more pronounced among non-state-owned firms and companies in a declining life cycle. We propose that corporate site visits enhance transparency in company information, thereby mitigating the executive pay gap by making it harder for powerful executives to leverage their authority for pay increases. In addition, we find that institutional investor ownership and corporate site visits serve as substitutes in mitigating the executive pay gap, and a reduced pay gap leads to enhanced future corporate performance. Furthermore, our study underscores corporate site visits as an effective channel for institutional investors to access firm-specific internal information and conduct corporate governance.
{"title":"Institutional investors' information access and executive pay gaps: Evidence from corporate site visits in China","authors":"Zhiling Cao , Xinbei Du , Lili Zhao","doi":"10.1016/j.pacfin.2025.102671","DOIUrl":"10.1016/j.pacfin.2025.102671","url":null,"abstract":"<div><div>The study examines the impact of institutional investors' corporate site visits on the executive pay gap. Using data covering all A-share listed companies in China, our findings reveal a substantial reduction in the executive pay gap attributable to corporate site visits. This effect is more pronounced among non-state-owned firms and companies in a declining life cycle. We propose that corporate site visits enhance transparency in company information, thereby mitigating the executive pay gap by making it harder for powerful executives to leverage their authority for pay increases. In addition, we find that institutional investor ownership and corporate site visits serve as substitutes in mitigating the executive pay gap, and a reduced pay gap leads to enhanced future corporate performance. Furthermore, our study underscores corporate site visits as an effective channel for institutional investors to access firm-specific internal information and conduct corporate governance.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102671"},"PeriodicalIF":4.8,"publicationDate":"2025-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151945","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 : 2025-01-10DOI: 10.1016/j.pacfin.2025.102667
Lin Zhang, Sinmyong Sok
This paper employs a multi-period difference-in-differences (DID) approach based on the launch of public data platforms by local governments to examine the impact of open government data platform construction on corporate stock liquidity. The findings indicate that the establishment of open government data platforms significantly increases stock liquidity. Mechanism analysis reveals that this effect is primarily achieved by reducing information asymmetry between informed and uninformed traders, improving firms' utilization of data as a production factor, and mitigating corporate maturity mismatches. The heterogeneity analysis further reveals that firms with higher institutional ownership, better information environments, and those in highly competitive industries benefit more in terms of stock liquidity from the construction of government data platforms. These findings suggest that the development of open government data platforms plays a crucial role in enhancing the efficiency and transparency of capital markets.
{"title":"The impact of government open data platform construction on corporate capital market performance: Evidence from stock liquidity","authors":"Lin Zhang, Sinmyong Sok","doi":"10.1016/j.pacfin.2025.102667","DOIUrl":"10.1016/j.pacfin.2025.102667","url":null,"abstract":"<div><div>This paper employs a multi-period difference-in-differences (DID) approach based on the launch of public data platforms by local governments to examine the impact of open government data platform construction on corporate stock liquidity. The findings indicate that the establishment of open government data platforms significantly increases stock liquidity. Mechanism analysis reveals that this effect is primarily achieved by reducing information asymmetry between informed and uninformed traders, improving firms' utilization of data as a production factor, and mitigating corporate maturity mismatches. The heterogeneity analysis further reveals that firms with higher institutional ownership, better information environments, and those in highly competitive industries benefit more in terms of stock liquidity from the construction of government data platforms. These findings suggest that the development of open government data platforms plays a crucial role in enhancing the efficiency and transparency of capital markets.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102667"},"PeriodicalIF":4.8,"publicationDate":"2025-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151916","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 : 2025-01-10DOI: 10.1016/j.pacfin.2025.102672
Xi Chen , Qinggang Wang , Shuai Wang
With the rapid development of the digital economy, digital transformation has become a strategic choice for enterprises across various industries. This study selects a sample of A-share listed companies in China from 2007 to 2021 to investigate how enterprise digital transformation impacts bank credit loans. The findings suggest that enterprise digital transformation is conducive to obtaining more such loans. The effect remains significant after mitigating potential endogeneity problems through instrumental variable and difference-in-difference methods. Mechanism tests show that enterprise digital transformation affects the amount of bank credit loans by improving enterprises' operating efficiency, enhancing external supervision, and mitigating default risk. Heterogeneity tests reveal that the promotion effect is more pronounced among companies with weak competitiveness, a low proportion of institutional investors, and low solvency. Overall, these findings provide theoretical and practical insights into how enterprises can use digital transformation to increase bank credit loans, as well as providing a reference for how enterprises can capitalize on the facilitative role of digital technology, which in turn promotes their development.
{"title":"Enterprise digital transformation and bank credit loans—Empirical evidence from listed companies in China","authors":"Xi Chen , Qinggang Wang , Shuai Wang","doi":"10.1016/j.pacfin.2025.102672","DOIUrl":"10.1016/j.pacfin.2025.102672","url":null,"abstract":"<div><div>With the rapid development of the digital economy, digital transformation has become a strategic choice for enterprises across various industries. This study selects a sample of A-share listed companies in China from 2007 to 2021 to investigate how enterprise digital transformation impacts bank credit loans. The findings suggest that enterprise digital transformation is conducive to obtaining more such loans. The effect remains significant after mitigating potential endogeneity problems through instrumental variable and difference-in-difference methods. Mechanism tests show that enterprise digital transformation affects the amount of bank credit loans by improving enterprises' operating efficiency, enhancing external supervision, and mitigating default risk. Heterogeneity tests reveal that the promotion effect is more pronounced among companies with weak competitiveness, a low proportion of institutional investors, and low solvency. Overall, these findings provide theoretical and practical insights into how enterprises can use digital transformation to increase bank credit loans, as well as providing a reference for how enterprises can capitalize on the facilitative role of digital technology, which in turn promotes their development.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102672"},"PeriodicalIF":4.8,"publicationDate":"2025-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151918","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 : 2025-01-09DOI: 10.1016/j.pacfin.2025.102669
Paul Gerrans , Arvid O.I. Hoffmann , Simon J. McNair , Jason I. Pallant
Whereas prior financial education research has focused on increasing objective financial knowledge, recent research highlights the importance of also accounting for individuals' subjective financial knowledge, financial attitudes, and beneficial psychological traits related to personal financial management. However, a holistic perspective of how financial education changes these different domains of financial literacy is lacking, and insights into potential heterogeneity in individuals' response to education interventions is missing. We utilize data from a personal financial management unit at a large Australian university to address this literature gap. We employ Latent Transition Analysis to identify six latent financial literacy states and find that financial education, together with confidence in financial information search, can explain transitions to higher objective and subjective financial knowledge states, more positive financial attitudes, and more beneficial psychological traits related to managing personal finances. We highlight variation in unit response across states, providing practitioners and policy makers with actionable insights.
{"title":"More than objective knowledge: Exploring heterogeneity in individuals' response to a financial education initiative across multiple financial literacy domains","authors":"Paul Gerrans , Arvid O.I. Hoffmann , Simon J. McNair , Jason I. Pallant","doi":"10.1016/j.pacfin.2025.102669","DOIUrl":"10.1016/j.pacfin.2025.102669","url":null,"abstract":"<div><div>Whereas prior financial education research has focused on increasing <em>objective financial knowledge</em>, recent research highlights the importance of also accounting for individuals' <em>subjective financial knowledge, financial attitudes,</em> and <em>beneficial psychological traits</em> related to personal financial management. However, a holistic perspective of how financial education changes these different domains of financial literacy is lacking, and insights into potential heterogeneity in individuals' response to education interventions is missing. We utilize data from a personal financial management unit at a large Australian university to address this literature gap. We employ Latent Transition Analysis to identify six latent financial literacy states and find that financial education, together with confidence in financial information search, can explain transitions to higher objective and subjective financial knowledge states, more positive financial attitudes, and more beneficial psychological traits related to managing personal finances. We highlight variation in unit response across states, providing practitioners and policy makers with actionable insights.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102669"},"PeriodicalIF":4.8,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-09DOI: 10.1016/j.pacfin.2025.102668
Thi Bao Ngoc Nguyen , Dun-Yao Ke , Xuan-Qi Su
This study tests the influence of acquiring firms' CEOs with elite education—graduating from prestigious institutions—on shareholder value in mergers and acquisitions (M&A). Utilizing a manually compiled dataset of Taiwanese firms from 2007 to 2020, we find that firms led by elite-educated CEOs, particularly those with advanced degrees in engineering and technology, experience significantly positive M&A announcement-period returns. These results remain robust across alternative tests, addressing concerns about sample selection and endogeneity. Further analysis highlights that CEO attributes, such as prior M&A experience, shorter tenure, or advanced age, amplify the positive influence of elite education. Additionally, firms led by elite-educated CEOs demonstrate stronger growth opportunities, better credit quality, and lower capital costs, aligning with the Managerial Growth Potential and Trustworthiness Hypothesis. Lastly, elite educational ties between acquiring and target firm CEOs enhance trust and communication, further boosting M&A returns, consistent with the Information Communication Hypothesis. Overall, our pioneering work underscores the critical role of leadership's educational pedigree in driving successful corporate acquisitions.
{"title":"Do CEOs with elite education matter? Evidence from shareholder value in mergers and acquisitions","authors":"Thi Bao Ngoc Nguyen , Dun-Yao Ke , Xuan-Qi Su","doi":"10.1016/j.pacfin.2025.102668","DOIUrl":"10.1016/j.pacfin.2025.102668","url":null,"abstract":"<div><div>This study tests the influence of acquiring firms' CEOs with elite education—graduating from prestigious institutions—on shareholder value in mergers and acquisitions (M&A). Utilizing a manually compiled dataset of Taiwanese firms from 2007 to 2020, we find that firms led by elite-educated CEOs, particularly those with advanced degrees in engineering and technology, experience significantly positive M&A announcement-period returns. These results remain robust across alternative tests, addressing concerns about sample selection and endogeneity. Further analysis highlights that CEO attributes, such as prior M&A experience, shorter tenure, or advanced age, amplify the positive influence of elite education. Additionally, firms led by elite-educated CEOs demonstrate stronger growth opportunities, better credit quality, and lower capital costs, aligning with the Managerial Growth Potential and Trustworthiness Hypothesis. Lastly, elite educational ties between acquiring and target firm CEOs enhance trust and communication, further boosting M&A returns, consistent with the Information Communication Hypothesis. Overall, our pioneering work underscores the critical role of leadership's educational pedigree in driving successful corporate acquisitions.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102668"},"PeriodicalIF":4.8,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151476","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 : 2025-01-07DOI: 10.1016/j.pacfin.2024.102633
Sen Yan, Yuqiao Guo, Wen Qiao
This paper establishes a negative association between irrational unlucky beliefs and investment performance, using evidence from an Asian-culture rooted superstition that the “zodiac birth year” brings people bad luck. With longitudinal brokerage data of 22,646 Chinese retail investors, we document a significant “zodiac birth year” effect: the birth year investors under-perform non-birth-year peers by around 1.16 % per annum. This effect is robust across different performance metrics and model specifications, and appear more pronounced among male investors. Results from a small controlled experiment confirm that birth year individuals appear more pessimistic about their personal luck, which, in turn, negatively influences their expectation on stock market returns and risk-taking behaviors. Furthermore, we find evidence supporting that the unlucky beliefs make birth year investors more susceptible to investment bias, including inactive trading, risk aversion in stock selection and the incidence of the disposition effect. Overall, our results reveal the large economic costs imposed by irrational beliefs on investor outcomes, even in good economic times.
{"title":"Impact of perceived unlucky years on investment performance: Evidence from Chinese cultural beliefs","authors":"Sen Yan, Yuqiao Guo, Wen Qiao","doi":"10.1016/j.pacfin.2024.102633","DOIUrl":"10.1016/j.pacfin.2024.102633","url":null,"abstract":"<div><div>This paper establishes a negative association between irrational unlucky beliefs and investment performance, using evidence from an Asian-culture rooted superstition that the “zodiac birth year” brings people bad luck. With longitudinal brokerage data of 22,646 Chinese retail investors, we document a significant “zodiac birth year” effect: the birth year investors under-perform non-birth-year peers by around 1.16 % per annum. This effect is robust across different performance metrics and model specifications, and appear more pronounced among male investors. Results from a small controlled experiment confirm that birth year individuals appear more pessimistic about their personal luck, which, in turn, negatively influences their expectation on stock market returns and risk-taking behaviors. Furthermore, we find evidence supporting that the unlucky beliefs make birth year investors more susceptible to investment bias, including inactive trading, risk aversion in stock selection and the incidence of the disposition effect. Overall, our results reveal the large economic costs imposed by irrational beliefs on investor outcomes, even in good economic times.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102633"},"PeriodicalIF":4.8,"publicationDate":"2025-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151943","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}
We apply a new, nonparametric approach to study time-varying herding behavior. Using this approach to compare herding behavior between the A-share, Hong Kong, and the U.S. stock markets over the past two decades, we present several new findings. First, before the Global Financial Crisis, the A-share stock market exhibited a pro-longed yet weakening herding behavior, which was mainly driven by non-fundamental factors. Second, periods with no herding and periods with adverse herding alternated between 2008 and 2021. Adverse herding, mainly driven by fundamental factors, intensified during market turbulence. Third, both the Hong Kong and the U.S. stock markets displayed adverse herding behavior persistently. In sum, our approach provides some new evidence on time-varying herding in both emerging and developed markets.
{"title":"The evolution of herding behavior in stock markets: Evidence from a smooth time-varying analysis","authors":"Shuo Xing , Tingting Cheng , Liping Qiu , Xiaoyang Li","doi":"10.1016/j.pacfin.2025.102664","DOIUrl":"10.1016/j.pacfin.2025.102664","url":null,"abstract":"<div><div>We apply a new, nonparametric approach to study time-varying herding behavior. Using this approach to compare herding behavior between the A-share, Hong Kong, and the U.S. stock markets over the past two decades, we present several new findings. First, before the Global Financial Crisis, the A-share stock market exhibited a pro-longed yet weakening herding behavior, which was mainly driven by non-fundamental factors. Second, periods with no herding and periods with adverse herding alternated between 2008 and 2021. Adverse herding, mainly driven by fundamental factors, intensified during market turbulence. Third, both the Hong Kong and the U.S. stock markets displayed adverse herding behavior persistently. In sum, our approach provides some new evidence on time-varying herding in both emerging and developed markets.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102664"},"PeriodicalIF":4.8,"publicationDate":"2025-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151911","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 : 2025-01-06DOI: 10.1016/j.pacfin.2025.102665
Zejun Zhang, Zhao Wang, Lixin Cai
Financial fraud of listed companies is a frequent problem in the capital market. Due to factors such as information asymmetry and inadequate regulation, financial fraud severely restricts stakeholders' capital allocation behavior and hinders the sustainable development of the capital market. However, existing research lacks systematic and quantitative insights into the characteristics of firms involved in financial fraud, making it difficult to achieve quantitative identification of most such firms. This limitation arises from a predominant focus on the causal relationships between various financial indicators and financial fraud. In this paper, we integrate machine learning and enterprise portrait methods, using listed companies in the Chinese capital market as research subjects to predict corporate financial fraud. Firstly, a comprehensive system of indicators is established, covering seven dimensions: basic corporate information, profitability, solvency, operating efficiency, capital structure, corporate governance, and emotional attitude. Subsequently, the feature visualization portrait is created using Gaussian mixture model (GMM) clustering and label classification, while the predictive role of multidimensional enterprise portrait features in assessing the risk of corporate financial fraud is examined. The results indicate that unstructured indicators, such as Management Discussion and Analysis (MD&A), can significantly enhance predictive capability for corporate financial fraud. The SHapley Additive exPlanations (SHAP) method is introduced to reveal the influencing factors and characteristics of financial fraud. The empirical findings show that firms involved in financial fraud typically exhibit characteristics such as shorter listing times, weaker solvency and operating efficiency, higher capital structure, and poor corporate governance ability. Moreover, the XGBoost model demonstrates superior predictive performance among various models. The findings of this study provide a new perspective for in-depth exploration of the impact mechanisms of financial fraud and related regulatory warnings. These findings contribute to enhancing the effectiveness of governance and the capital allocation function within the capital market.
{"title":"Predicting financial fraud in Chinese listed companies: An enterprise portrait and machine learning approach","authors":"Zejun Zhang, Zhao Wang, Lixin Cai","doi":"10.1016/j.pacfin.2025.102665","DOIUrl":"10.1016/j.pacfin.2025.102665","url":null,"abstract":"<div><div>Financial fraud of listed companies is a frequent problem in the capital market. Due to factors such as information asymmetry and inadequate regulation, financial fraud severely restricts stakeholders' capital allocation behavior and hinders the sustainable development of the capital market. However, existing research lacks systematic and quantitative insights into the characteristics of firms involved in financial fraud, making it difficult to achieve quantitative identification of most such firms. This limitation arises from a predominant focus on the causal relationships between various financial indicators and financial fraud. In this paper, we integrate machine learning and enterprise portrait methods, using listed companies in the Chinese capital market as research subjects to predict corporate financial fraud. Firstly, a comprehensive system of indicators is established, covering seven dimensions: basic corporate information, profitability, solvency, operating efficiency, capital structure, corporate governance, and emotional attitude. Subsequently, the feature visualization portrait is created using Gaussian mixture model (GMM) clustering and label classification, while the predictive role of multidimensional enterprise portrait features in assessing the risk of corporate financial fraud is examined. The results indicate that unstructured indicators, such as Management Discussion and Analysis (MD&A), can significantly enhance predictive capability for corporate financial fraud. The SHapley Additive exPlanations (SHAP) method is introduced to reveal the influencing factors and characteristics of financial fraud. The empirical findings show that firms involved in financial fraud typically exhibit characteristics such as shorter listing times, weaker solvency and operating efficiency, higher capital structure, and poor corporate governance ability. Moreover, the XGBoost model demonstrates superior predictive performance among various models. The findings of this study provide a new perspective for in-depth exploration of the impact mechanisms of financial fraud and related regulatory warnings. These findings contribute to enhancing the effectiveness of governance and the capital allocation function within the capital market.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102665"},"PeriodicalIF":4.8,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151930","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 : 2025-01-02DOI: 10.1016/j.pacfin.2024.102661
Qianwen Li , Tingyu Qian , Hui Wang , Chuanwang Sun
Green housing development has progressed over the past two decades; however, the pricing advantages and influencing factors remain inadequately defined. Particularly, the effects of green housing ratings on prices and purchasing decisions have not been thoroughly researched. A dataset comprising 14,335 items (4101 groups) was compiled of second-hand green housing transactions from spatial and temporal dimensions across various Chinese cities. To manage data clustering and enhance model robustness, the Bootstrap algorithm sampling and geographically weighted Lasso regression were utilized. The findings reveal several insights: (1) The spatial dimension notably impacts second-hand green housing prices, with regional differences evident in the effects of identical variables. This suggests that policy should be locally adapted, requiring nuanced and differentiated regulatory strategies. (2) Macroeconomic indicators, such as Gross Domestic Product, Per Capita Disposable Income, and residential commercial property sales, positively influence housing prices. Monitoring these economic indicators for timely policy adjustments is advised. (3) At the microeconomic level, the architectural features of second-hand green housing negatively affect prices in the northeast and southwest regions. Conversely, neighborhood characteristics negatively impact prices in the southeast coastal region but positively influence them in central and northeastern regions. These results suggest that regular assessments of neighborhood characteristics and stringent regulation of architectural features by the government are necessary to maintain housing stock quality. This research offers enhanced insights into price formation in the second-hand green housing market and presents vital evidence for precise policy formulation and sustainable real estate development.
{"title":"Exploring the value of green: The impact factors on China's second-hand green housing prices based on geographically weighted Lasso regressions","authors":"Qianwen Li , Tingyu Qian , Hui Wang , Chuanwang Sun","doi":"10.1016/j.pacfin.2024.102661","DOIUrl":"10.1016/j.pacfin.2024.102661","url":null,"abstract":"<div><div>Green housing development has progressed over the past two decades; however, the pricing advantages and influencing factors remain inadequately defined. Particularly, the effects of green housing ratings on prices and purchasing decisions have not been thoroughly researched. A dataset comprising 14,335 items (4101 groups) was compiled of second-hand green housing transactions from spatial and temporal dimensions across various Chinese cities. To manage data clustering and enhance model robustness, the Bootstrap algorithm sampling and geographically weighted Lasso regression were utilized. The findings reveal several insights: (1) The spatial dimension notably impacts second-hand green housing prices, with regional differences evident in the effects of identical variables. This suggests that policy should be locally adapted, requiring nuanced and differentiated regulatory strategies. (2) Macroeconomic indicators, such as Gross Domestic Product, Per Capita Disposable Income, and residential commercial property sales, positively influence housing prices. Monitoring these economic indicators for timely policy adjustments is advised. (3) At the microeconomic level, the architectural features of second-hand green housing negatively affect prices in the northeast and southwest regions. Conversely, neighborhood characteristics negatively impact prices in the southeast coastal region but positively influence them in central and northeastern regions. These results suggest that regular assessments of neighborhood characteristics and stringent regulation of architectural features by the government are necessary to maintain housing stock quality. This research offers enhanced insights into price formation in the second-hand green housing market and presents vital evidence for precise policy formulation and sustainable real estate development.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102661"},"PeriodicalIF":4.8,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151475","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 : 2025-01-02DOI: 10.1016/j.pacfin.2024.102663
Chien-Chiang Lee , Chih-Wei Wang , Weizheng Lin , Yi-Hsin Chiu
In this paper, we investigate whether and how national happiness influences bank risk. Utilizing a comprehensive global sample of commercial banks from 68 countries, spanning the period from 2006 to 2020, we find that positive emotions, particularly happiness, are significantly linked to reduced bank risk. To address potential endogeneity and establish causal relationships, we employ quasi-experimental designs, leveraging external events such as the Beijing Olympics and the Delhi gang rape, along with an instrumental variable approach. Our mechanism analysis identifies political stability and education as key channels through which happiness affects bank risk. This study sheds light on the interaction between emotions and financial institutions, indicating that positive emotion is a crucial determinant of risk in financial markets and institutions.
{"title":"The role of happiness in bank risk: An international cross-country analysis","authors":"Chien-Chiang Lee , Chih-Wei Wang , Weizheng Lin , Yi-Hsin Chiu","doi":"10.1016/j.pacfin.2024.102663","DOIUrl":"10.1016/j.pacfin.2024.102663","url":null,"abstract":"<div><div>In this paper, we investigate whether and how national happiness influences bank risk. Utilizing a comprehensive global sample of commercial banks from 68 countries, spanning the period from 2006 to 2020, we find that positive emotions, particularly happiness, are significantly linked to reduced bank risk. To address potential endogeneity and establish causal relationships, we employ quasi-experimental designs, leveraging external events such as the Beijing Olympics and the Delhi gang rape, along with an instrumental variable approach. Our mechanism analysis identifies political stability and education as key channels through which happiness affects bank risk. This study sheds light on the interaction between emotions and financial institutions, indicating that positive emotion is a crucial determinant of risk in financial markets and institutions.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"90 ","pages":"Article 102663"},"PeriodicalIF":4.8,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143151934","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