Pub Date : 2025-12-04DOI: 10.1016/j.pacfin.2025.103029
Hailun Xu , Xianghui Yuan , Liwei Jin , Jun Long , Gen Xu
This paper examines stock price prediction in the Chinese market using deep learning techniques applied to tick-level high-frequency data. We demonstrate that the high-frequency features constructed in this study capture significantly more predictive information than raw price and volume inputs, leading to measurable improvements in model performance. Beyond accuracy, we provide empirical evidence of three structural characteristics embedded in order flow data: nonlinearity, intertemporal stability, and path dependence properties that help explain the dynamics of the price formation process. Furthermore, we show that a universal model trained on data from multiple stocks consistently outperforms stock-specific models in out-of-sample prediction tasks. These findings offer both practical insights for developing robust trading strategies and theoretical implications for understanding the microstructural mechanisms of financial markets.
{"title":"Ascertaining price formation in financial markets with machine learning: Evidence from Chinese stocks","authors":"Hailun Xu , Xianghui Yuan , Liwei Jin , Jun Long , Gen Xu","doi":"10.1016/j.pacfin.2025.103029","DOIUrl":"10.1016/j.pacfin.2025.103029","url":null,"abstract":"<div><div>This paper examines stock price prediction in the Chinese market using deep learning techniques applied to tick-level high-frequency data. We demonstrate that the high-frequency features constructed in this study capture significantly more predictive information than raw price and volume inputs, leading to measurable improvements in model performance. Beyond accuracy, we provide empirical evidence of three structural characteristics embedded in order flow data: nonlinearity, intertemporal stability, and path dependence properties that help explain the dynamics of the price formation process. Furthermore, we show that a universal model trained on data from multiple stocks consistently outperforms stock-specific models in out-of-sample prediction tasks. These findings offer both practical insights for developing robust trading strategies and theoretical implications for understanding the microstructural mechanisms of financial markets.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103029"},"PeriodicalIF":5.3,"publicationDate":"2025-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840723","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 : 2025-12-03DOI: 10.1016/j.pacfin.2025.103020
Xinwei Liu , Jinge Fu , Chen Wang
This paper examines the effect of digitally enabled business environment reform on corporate financial distress in China. Exploiting a quasi-natural experiment arising from the 2021 national pilot program for business environment innovation, we implement a difference-in-differences (DiD) strategy using panel data on A-share non-financial listed firms from 2018 to 2024. Corporate financial health is assessed through the Altman Z-score and firm leverage. Empirical results demonstrate that the reform significantly alleviates financial distress, as evidenced by increased Z-scores and decreased leverage ratios. These findings remain robust across a variety of tests, including placebo regressions, alternative fixed effects, subsample tests, and clustering schemes. Further analysis reveals that the improvement in firms' financial health is partially mediated by enhanced information transparency, with greater media exposure facilitating more efficient financing conditions. The effect of the reform is also found to be more pronounced for firms facing greater financial constraints, such as smaller and younger enterprises, suggesting that institutional improvements help ease external financing barriers. Meanwhile, increased market competition induced by the reform has heterogeneous consequences, with state-owned enterprises experiencing a weaker or even adverse impact. Additionally, firms with stronger innovation capacity—proxied by higher R&D intensity—tend to benefit more from the reform, indicating that digital and institutional upgrading jointly enhance firm resilience. This study contributes to the literature on financial distress, institutional reform, and digital governance by providing novel evidence on how reforms that combine regulatory streamlining with digital empowerment can strengthen firm-level stability. The findings offer important policy implications for emerging markets seeking to optimize resource allocation and reduce financial vulnerability through business environment modernization.
{"title":"Reducing financial distress through digital institutional reform: Evidence from China's business environment pilot","authors":"Xinwei Liu , Jinge Fu , Chen Wang","doi":"10.1016/j.pacfin.2025.103020","DOIUrl":"10.1016/j.pacfin.2025.103020","url":null,"abstract":"<div><div>This paper examines the effect of digitally enabled business environment reform on corporate financial distress in China. Exploiting a quasi-natural experiment arising from the 2021 national pilot program for business environment innovation, we implement a difference-in-differences (DiD) strategy using panel data on A-share non-financial listed firms from 2018 to 2024. Corporate financial health is assessed through the Altman <em>Z</em>-score and firm leverage. Empirical results demonstrate that the reform significantly alleviates financial distress, as evidenced by increased <em>Z</em>-scores and decreased leverage ratios. These findings remain robust across a variety of tests, including placebo regressions, alternative fixed effects, subsample tests, and clustering schemes. Further analysis reveals that the improvement in firms' financial health is partially mediated by enhanced information transparency, with greater media exposure facilitating more efficient financing conditions. The effect of the reform is also found to be more pronounced for firms facing greater financial constraints, such as smaller and younger enterprises, suggesting that institutional improvements help ease external financing barriers. Meanwhile, increased market competition induced by the reform has heterogeneous consequences, with state-owned enterprises experiencing a weaker or even adverse impact. Additionally, firms with stronger innovation capacity—proxied by higher R&D intensity—tend to benefit more from the reform, indicating that digital and institutional upgrading jointly enhance firm resilience. This study contributes to the literature on financial distress, institutional reform, and digital governance by providing novel evidence on how reforms that combine regulatory streamlining with digital empowerment can strengthen firm-level stability. The findings offer important policy implications for emerging markets seeking to optimize resource allocation and reduce financial vulnerability through business environment modernization.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103020"},"PeriodicalIF":5.3,"publicationDate":"2025-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145737605","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 : 2025-12-02DOI: 10.1016/j.pacfin.2025.103021
Kuan-Cheng Ko , Shu-Feng Wang , Wen-Chi Lo , Pei-Chun Tsai (Anny)
Guo (2023) finds that the size effect is predictable by the forward-looking signals, providing a plausible explanation for the disappearance of the size effect in the U.S. since its discovery. We obtain strong evidence that forward-looking signals are effective in predicting the size premium in Taiwan, where evidence of the size effect is inconclusive. In contrast to the U.S. evidence, this study shows that information barriers have limited impact on the predictable size effect in Taiwan. Moreover, stock illiquidity and limits-to-arbitrage based on limit-hit frequency provide better explanatory power for predicting the size effect in Taiwan.
{"title":"Forward-looking signals and the predictability of size effect in the Taiwan stock market","authors":"Kuan-Cheng Ko , Shu-Feng Wang , Wen-Chi Lo , Pei-Chun Tsai (Anny)","doi":"10.1016/j.pacfin.2025.103021","DOIUrl":"10.1016/j.pacfin.2025.103021","url":null,"abstract":"<div><div>Guo (2023) finds that the size effect is predictable by the forward-looking signals, providing a plausible explanation for the disappearance of the size effect in the U.S. since its discovery. We obtain strong evidence that forward-looking signals are effective in predicting the size premium in Taiwan, where evidence of the size effect is inconclusive. In contrast to the U.S. evidence, this study shows that information barriers have limited impact on the predictable size effect in Taiwan. Moreover, stock illiquidity and limits-to-arbitrage based on limit-hit frequency provide better explanatory power for predicting the size effect in Taiwan.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103021"},"PeriodicalIF":5.3,"publicationDate":"2025-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145790908","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 : 2025-12-02DOI: 10.1016/j.pacfin.2025.103017
Jiazhu Li , Haojun Wang
In today's volatile global business environment, uncertainty has become the norm. Firms must therefore enhance strategic flexibility to adapt to dynamic changes. Real options theory provides a framework for flexible decision-making under uncertainty, enabling firms to capture future growth opportunities. Yet, prior studies offer mixed evidence on how real options investment affects firm performance, especially over the long term. This study develops a theoretical framework grounded in organizational learning to examine this relationship and explores how different forms of uncertainty shape the value creation of real options investments. Using data on Chinese listed firms from 2007 to 2023, we find that real options investment improves long-term performance, and its effect is strengthened under higher uncertainty. The study integrates real options and organizational learning theories, offering new insights for strategic investment decisions in complex and uncertain environments.
{"title":"A study of the impact of real option investment on firms' long-term performance under uncertainty: Empirical evidence from China","authors":"Jiazhu Li , Haojun Wang","doi":"10.1016/j.pacfin.2025.103017","DOIUrl":"10.1016/j.pacfin.2025.103017","url":null,"abstract":"<div><div>In today's volatile global business environment, uncertainty has become the norm. Firms must therefore enhance strategic flexibility to adapt to dynamic changes. Real options theory provides a framework for flexible decision-making under uncertainty, enabling firms to capture future growth opportunities. Yet, prior studies offer mixed evidence on how real options investment affects firm performance, especially over the long term. This study develops a theoretical framework grounded in organizational learning to examine this relationship and explores how different forms of uncertainty shape the value creation of real options investments. Using data on Chinese listed firms from 2007 to 2023, we find that real options investment improves long-term performance, and its effect is strengthened under higher uncertainty. The study integrates real options and organizational learning theories, offering new insights for strategic investment decisions in complex and uncertain environments.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103017"},"PeriodicalIF":5.3,"publicationDate":"2025-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685108","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 : 2025-12-02DOI: 10.1016/j.pacfin.2025.103019
Feng Guo , Fujun Lai
This paper examines the role of CNY, onshore RMB FX rate, in RCEP currency bloc. Using weekly FX data (2015–2025) across eleven currencies, we employ a dual-method approach: Markov-switching models to study regime-dependent forex co-movements, and a TVP-VAR-SV model for system-wide dynamic connectedness. Three main findings emerge. First, the anchor effects of CNY exhibit significant heterogeneity across RCEP currencies, with effects strong for trade-integrated economies but weak where policy autonomy dominates. Second, the effects also exhibit regime-dependent asymmetry: heightened CNY volatility prolongs turbulent states for currencies of export-oriented economies, whereas CNY stability anchors calm states for financially integrated partners. Third, while CNY functions as a net transmitter of systemic risks within RCEP forex markets, its spillovers evolve non-monotonically with global shocks and regional integration phases. Overall, our findings characterize RMB’s identifiable yet circumscribed emergence as a regional forex anchor; RMB internationalization within RCEP remains substantive but structurally bounded.
本文探讨在岸人民币汇率在RCEP货币集团中的作用。使用11种货币的每周外汇数据（2015-2025），我们采用双方法方法：马尔可夫切换模型研究依赖于制度的外汇协同运动，以及tpv - var - sv模型研究系统范围的动态连通性。主要有三个发现。首先，人民币的锚定效应在RCEP各国货币中表现出显著的异质性，对贸易一体化经济体的锚定效应较强，但在政策自主主导的经济体中锚定效应较弱。其次，这种影响也表现出依赖于制度的不对称：人民币波动加剧延长了出口导向型经济体货币的动荡状态，而人民币稳定则为金融一体化伙伴的平静状态奠定了基础。第三，虽然人民币在RCEP外汇市场中是系统性风险的净传递者，但其溢出效应随着全球冲击和区域一体化阶段而非单调地演变。总体而言，我们的研究结果表明，人民币作为区域外汇锚的崛起是可识别的，但受到限制；RCEP框架下的人民币国际化仍具有实质性，但存在结构性限制。
{"title":"Does RMB drive the dynamic of RCEP regional currency FXs?","authors":"Feng Guo , Fujun Lai","doi":"10.1016/j.pacfin.2025.103019","DOIUrl":"10.1016/j.pacfin.2025.103019","url":null,"abstract":"<div><div>This paper examines the role of CNY, onshore RMB FX rate, in RCEP currency bloc. Using weekly FX data (2015–2025) across eleven currencies, we employ a dual-method approach: Markov-switching models to study regime-dependent forex co-movements, and a TVP-VAR-SV model for system-wide dynamic connectedness. Three main findings emerge. First, the anchor effects of CNY exhibit significant heterogeneity across RCEP currencies, with effects strong for trade-integrated economies but weak where policy autonomy dominates. Second, the effects also exhibit regime-dependent asymmetry: heightened CNY volatility prolongs turbulent states for currencies of export-oriented economies, whereas CNY stability anchors calm states for financially integrated partners. Third, while CNY functions as a net transmitter of systemic risks within RCEP forex markets, its spillovers evolve non-monotonically with global shocks and regional integration phases. Overall, our findings characterize RMB’s identifiable yet circumscribed emergence as a regional forex anchor; RMB internationalization within RCEP remains substantive but structurally bounded.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103019"},"PeriodicalIF":5.3,"publicationDate":"2025-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685216","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 : 2025-12-01DOI: 10.1016/j.pacfin.2025.103016
Minghao Zhu , Haimeng Shi , Rong Kong , Zarqa Khalid , Maaz Hassan , Zhe Chen
Improving household financial health has become a central goal of inclusive finance initiatives as digital finance continues to reshape financial access globally. This study investigates how digital finance influences household financial health in China and whether its benefits extend to families facing different types of risk. Using nationally representative household panel survey data from three survey waves for the period of 2015 to 2019, we empirically identify both the direct effects of digital finance and the mechanisms through which these effects operate. The results show that the greater use of digital finance is associate with improvements in household financial health. Further analysis demonstrates that these gains are driven by expanding access to financial information, diversifying financial products, and strengthening social interaction. Moreover, the presence of robust digital infrastructure amplifies these positive effects. Importantly, digital finance helps households maintain stronger financial health when confronted with health, unemployment, and income risks. Overall, the findings highlight digital finance as an effective pathway to financial resilience and provide practical insights for policymakers seeking strengthen digital financial inclusion in developing economies.
{"title":"Does digital finance improve household financial health? Evidence from China","authors":"Minghao Zhu , Haimeng Shi , Rong Kong , Zarqa Khalid , Maaz Hassan , Zhe Chen","doi":"10.1016/j.pacfin.2025.103016","DOIUrl":"10.1016/j.pacfin.2025.103016","url":null,"abstract":"<div><div>Improving household financial health has become a central goal of inclusive finance initiatives as digital finance continues to reshape financial access globally. This study investigates how digital finance influences household financial health in China and whether its benefits extend to families facing different types of risk. Using nationally representative household panel survey data from three survey waves for the period of 2015 to 2019, we empirically identify both the direct effects of digital finance and the mechanisms through which these effects operate. The results show that the greater use of digital finance is associate with improvements in household financial health. Further analysis demonstrates that these gains are driven by expanding access to financial information, diversifying financial products, and strengthening social interaction. Moreover, the presence of robust digital infrastructure amplifies these positive effects. Importantly, digital finance helps households maintain stronger financial health when confronted with health, unemployment, and income risks. Overall, the findings highlight digital finance as an effective pathway to financial resilience and provide practical insights for policymakers seeking strengthen digital financial inclusion in developing economies.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103016"},"PeriodicalIF":5.3,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145651874","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 : 2025-11-29DOI: 10.1016/j.pacfin.2025.103015
Jingjing Meng , Wenjing Song , Mei Yu , Zixuan Qin
China's options market has experienced rapid development. This study moves beyond the predominant focus on implied volatility to examine implied higher moments—specifically, skewness and kurtosis. These moments are crucial for characterizing the full distribution of expected returns: implied skewness captures the market's expectation of asymmetric tail risk, while implied kurtosis gauges the anticipated probability of extreme returns, reflecting market fears of disruptive volatility events. Unlike existing literature, we examine CSI 300 and CSI 500 ETF options alongside the SSE 50ETF. Utilizing high-frequency data from September 2022 to December 2024, we first confirm the informational superiority of model-free implied volatility (MFIV) in predicting realized volatility. We then systematically investigate the asymmetric relationship between returns and these implied higher moments using a nonparametric quantile regression model. Our findings indicate a pronounced asymmetry: in high-volatility regimes, negative returns disproportionately increase implied volatility. Conversely, when skewness and kurtosis are elevated, positive returns exert a stronger influence, suggesting that in extreme market states, positive shocks amplify concerns about potential bubbles or destabilizing rallies. This asymmetry persists under external shocks. Our research provides a basis for formulating condition-specific hedging strategies and offers new empirical evidence on pricing behaviors in China's multi-tiered options market.
{"title":"Information and stock returns: Evidence from high-frequency data in China's ETF options market","authors":"Jingjing Meng , Wenjing Song , Mei Yu , Zixuan Qin","doi":"10.1016/j.pacfin.2025.103015","DOIUrl":"10.1016/j.pacfin.2025.103015","url":null,"abstract":"<div><div>China's options market has experienced rapid development. This study moves beyond the predominant focus on implied volatility to examine implied higher moments—specifically, skewness and kurtosis. These moments are crucial for characterizing the full distribution of expected returns: implied skewness captures the market's expectation of asymmetric tail risk, while implied kurtosis gauges the anticipated probability of extreme returns, reflecting market fears of disruptive volatility events. Unlike existing literature, we examine CSI 300 and CSI 500 ETF options alongside the SSE 50ETF. Utilizing high-frequency data from September 2022 to December 2024, we first confirm the informational superiority of model-free implied volatility (MFIV) in predicting realized volatility. We then systematically investigate the asymmetric relationship between returns and these implied higher moments using a nonparametric quantile regression model. Our findings indicate a pronounced asymmetry: in high-volatility regimes, negative returns disproportionately increase implied volatility. Conversely, when skewness and kurtosis are elevated, positive returns exert a stronger influence, suggesting that in extreme market states, positive shocks amplify concerns about potential bubbles or destabilizing rallies. This asymmetry persists under external shocks. Our research provides a basis for formulating condition-specific hedging strategies and offers new empirical evidence on pricing behaviors in China's multi-tiered options market.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103015"},"PeriodicalIF":5.3,"publicationDate":"2025-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685107","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 : 2025-11-29DOI: 10.1016/j.pacfin.2025.103014
Rui Xu , Junqi Xie , Shumei Pang
This study examines whether and how industrial robot adoption affects the corporate strategy of the geographical distribution of customers. Using a sample of 6027 firm-year observations from the Chinese industrial enterprises for the period 2009–2022, we find that firm's robot adoption can significantly increase the geographical distance between enterprises and their customers to broaden the geographical distribution of the supply chain. Further mechanism tests show that the adoption of robots in production can improve a firm's product intrinsic competitiveness and alleviate a firm's external information constraint, thereby increasing the geographical distance between enterprises and their customers. In addition, we find that the above-mentioned effect of robot adoption on a firm's geographical distance between enterprises and their customers is more pronounced for firms headquartered in regions with better transportation infrastructure, firms that have high industry competition intensity, firms that have greater customer dependence. Tests of economic consequences reveal that, in scenarios of more robots, firms' strategic geographic adjustments in customer selection can favourably impact their supply chain management efficiency and operational risk. Altogether, this study provides micro evidence on the relationship between robot adoption and geographical distribution of the supply chain, providing significant implications for global supply chains.
{"title":"Industrial robot adoption and geographical customer distribution strategy: Evidence from China","authors":"Rui Xu , Junqi Xie , Shumei Pang","doi":"10.1016/j.pacfin.2025.103014","DOIUrl":"10.1016/j.pacfin.2025.103014","url":null,"abstract":"<div><div>This study examines whether and how industrial robot adoption affects the corporate strategy of the geographical distribution of customers. Using a sample of 6027 firm-year observations from the Chinese industrial enterprises for the period 2009–2022, we find that firm's robot adoption can significantly increase the geographical distance between enterprises and their customers to broaden the geographical distribution of the supply chain. Further mechanism tests show that the adoption of robots in production can improve a firm's product intrinsic competitiveness and alleviate a firm's external information constraint, thereby increasing the geographical distance between enterprises and their customers. In addition, we find that the above-mentioned effect of robot adoption on a firm's geographical distance between enterprises and their customers is more pronounced for firms headquartered in regions with better transportation infrastructure, firms that have high industry competition intensity, firms that have greater customer dependence. Tests of economic consequences reveal that, in scenarios of more robots, firms' strategic geographic adjustments in customer selection can favourably impact their supply chain management efficiency and operational risk. Altogether, this study provides micro evidence on the relationship between robot adoption and geographical distribution of the supply chain, providing significant implications for global supply chains.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103014"},"PeriodicalIF":5.3,"publicationDate":"2025-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145737602","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 : 2025-11-28DOI: 10.1016/j.pacfin.2025.103010
Yuanyuan Liu , Jingwen Zhang , Qingmiao Bi , Joseph Onochie
This study investigates how heightened market competition, induced by the staggered implementation of China's Market Access Negative List Reform, influences the performance and strategic behavior of family firms. Using a panel dataset of Chinese listed companies from 2012 to 2018, we find that: (1) family firms experienced a significant profitability decline of approximately 1.3 percentage points relative to non-family firms after the policy shock; (2) family firms with longer generational succession and more family members in management were associated with greater vulnerability when facing increased competition; and (3) these effects seem to be persistent, and family firms show indications of strategic responses that emphasize retrenchment and inward governance consolidation, while their relative disadvantage may further constrain their ability of family firms to pursue green and sustainable development goals. Our results indicate that external market-oriented reforms may coincide with heightened salience of internal governance vulnerabilities, potentially posing challenges to the resilience of family-owned enterprises in a rapidly evolving institutional environment.
{"title":"Family firms performance under competitive pressure: Evidence from market access reforms in China","authors":"Yuanyuan Liu , Jingwen Zhang , Qingmiao Bi , Joseph Onochie","doi":"10.1016/j.pacfin.2025.103010","DOIUrl":"10.1016/j.pacfin.2025.103010","url":null,"abstract":"<div><div>This study investigates how heightened market competition, induced by the staggered implementation of <em>China's Market Access Negative List Reform</em>, influences the performance and strategic behavior of family firms. Using a panel dataset of Chinese listed companies from 2012 to 2018, we find that: (1) family firms experienced a significant profitability decline of approximately 1.3 percentage points relative to non-family firms after the policy shock; (2) family firms with longer generational succession and more family members in management were associated with greater vulnerability when facing increased competition; and (3) these effects seem to be persistent, and family firms show indications of strategic responses that emphasize retrenchment and inward governance consolidation, while their relative disadvantage may further constrain their ability of family firms to pursue green and sustainable development goals. Our results indicate that external market-oriented reforms may coincide with heightened salience of internal governance vulnerabilities, potentially posing challenges to the resilience of family-owned enterprises in a rapidly evolving institutional environment.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"96 ","pages":"Article 103010"},"PeriodicalIF":5.3,"publicationDate":"2025-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685103","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 : 2025-11-28DOI: 10.1016/j.pacfin.2025.103011
Bin Li , Jiawei Sun , Lei Xu , Fei Guo
Using a sample of Chinese A-share non-financial firms from 2013 to 2022, this paper empirically examines the impact of Fintech engagement on the speed of capital structure adjustment. The results show that firms engaging in Fintech activities significantly accelerate their capital structure adjustments, particularly when leverage is below the target level. Further heterogeneity analyses reveal that this positive effect is more pronounced in regions with stricter financial regulation, in firms with stronger financial affiliations, and among high-tech firms. In terms of adjustment mode, Fintech primarily facilitates capital structure adjustment by enhancing firms' debt financing capacity. Mechanism tests indicate that Fintech alleviates financing frictions and reduces agency costs, thereby expediting dynamic capital structure adjustment. This study confirms the effectiveness of Fintech activities in non-financial firms and contributes to the literature by revealing their economic consequences.
{"title":"Fintech engagement by non-financial firms and the speed of capital structure adjustment","authors":"Bin Li , Jiawei Sun , Lei Xu , Fei Guo","doi":"10.1016/j.pacfin.2025.103011","DOIUrl":"10.1016/j.pacfin.2025.103011","url":null,"abstract":"<div><div>Using a sample of Chinese A-share non-financial firms from 2013 to 2022, this paper empirically examines the impact of Fintech engagement on the speed of capital structure adjustment. The results show that firms engaging in Fintech activities significantly accelerate their capital structure adjustments, particularly when leverage is below the target level. Further heterogeneity analyses reveal that this positive effect is more pronounced in regions with stricter financial regulation, in firms with stronger financial affiliations, and among high-tech firms. In terms of adjustment mode, Fintech primarily facilitates capital structure adjustment by enhancing firms' debt financing capacity. Mechanism tests indicate that Fintech alleviates financing frictions and reduces agency costs, thereby expediting dynamic capital structure adjustment. This study confirms the effectiveness of Fintech activities in non-financial firms and contributes to the literature by revealing their economic consequences.</div></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"95 ","pages":"Article 103011"},"PeriodicalIF":5.3,"publicationDate":"2025-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145684818","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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