Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103894
Qian Zhang , Lian Guo , Diqiang Chen , Shini Lei
Using the 2013 and 2015 waves of the China Household Finance Survey (CHFS), this study explores mobile internet use and examines its impacts on households' financial literacy. Our findings provide robust evidence that mobile internet use increases households' financial literacy. Moreover, the mechanism test shows that mobile internet use improves financial literacy mainly through: enhancing information flow about finance and engaging in economic activities. Interestingly, we explore the effects of mobile internet use on financial literacy among different people, and we find that the positive impact of mobile internet use on financial literacy is more pronounced in households who are older, lower educated and those who live in rural and western areas. Overall, our findings imply that mobile internet plays a positive role in facilitating financial inclusion by improving financial literacy.
{"title":"Does mobile access to the internet increase household financial literacy?","authors":"Qian Zhang , Lian Guo , Diqiang Chen , Shini Lei","doi":"10.1016/j.irfa.2024.103894","DOIUrl":"10.1016/j.irfa.2024.103894","url":null,"abstract":"<div><div>Using the 2013 and 2015 waves of the China Household Finance Survey (CHFS), this study explores mobile internet use and examines its impacts on households' financial literacy. Our findings provide robust evidence that mobile internet use increases households' financial literacy. Moreover, the mechanism test shows that mobile internet use improves financial literacy mainly through: enhancing information flow about finance and engaging in economic activities. Interestingly, we explore the effects of mobile internet use on financial literacy among different people, and we find that the positive impact of mobile internet use on financial literacy is more pronounced in households who are older, lower educated and those who live in rural and western areas. Overall, our findings imply that mobile internet plays a positive role in facilitating financial inclusion by improving financial literacy.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103894"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103897
Yunqiu Zhan , Dongfei Gao , Muzi Feng , Shen Yan
This paper explores the impact of digital finance on rural farmers' household income, using data from the China Rural Revitalization Comprehensive Survey and the China Digital Financial Inclusion Index. By employing a multivariate Logit model to analyze 18,684 valid farmer household samples, this study reveals that digital finance and its three key dimensions—breadth of coverage, depth of usage, and level of digitization—all have significant positive effects on rural farmers' per capita income. Moreover, this study elucidates how non-agricultural employment acts as an intermediary factor, emphasizing that digital finance encourages rural farmers to engage in non-agricultural employment, elevating household net per capita income. Furthermore, endogeneity tests, robustness checks, and heterogeneity analyses confirm the positive impact of digital finance on rural farmers' income. Notably, the heterogeneity analysis indicates that digital finance primarily influences the non-agricultural business income of rural farmer households. By providing financing convenience and market information resources, digital finance aids farmers in expanding their business scale, enhancing operational efficiency, and ultimately leading to income growth.
{"title":"Digital finance, non-agricultural employment, and the income-increasing effect on rural households","authors":"Yunqiu Zhan , Dongfei Gao , Muzi Feng , Shen Yan","doi":"10.1016/j.irfa.2024.103897","DOIUrl":"10.1016/j.irfa.2024.103897","url":null,"abstract":"<div><div>This paper explores the impact of digital finance on rural farmers' household income, using data from the China Rural Revitalization Comprehensive Survey and the China Digital Financial Inclusion Index. By employing a multivariate Logit model to analyze 18,684 valid farmer household samples, this study reveals that digital finance and its three key dimensions—breadth of coverage, depth of usage, and level of digitization—all have significant positive effects on rural farmers' per capita income. Moreover, this study elucidates how non-agricultural employment acts as an intermediary factor, emphasizing that digital finance encourages rural farmers to engage in non-agricultural employment, elevating household net per capita income. Furthermore, endogeneity tests, robustness checks, and heterogeneity analyses confirm the positive impact of digital finance on rural farmers' income. Notably, the heterogeneity analysis indicates that digital finance primarily influences the non-agricultural business income of rural farmer households. By providing financing convenience and market information resources, digital finance aids farmers in expanding their business scale, enhancing operational efficiency, and ultimately leading to income growth.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103897"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103890
Francis Osei-Tutu , Daniel Taylor , Isaac S. Awuye
Language shapes its speakers' cognition and decision-making. Consequently, recent studies have examined the effects of linguistic structures like future time reference and gender marking on financial reporting behavior, though the evidence remains fragmented and inconclusive. This paper systematically reviews the academic literature on the effects of linguistic features on financial reporting. Our review suggests that the effects of future time reference on financial reporting quality are less clear-cut than those revealed in individual studies, which are often based on directional hypotheses. Also, while languages that grammatically associate the present with the future promote future-oriented behaviors, they may nevertheless induce greater market volatility. Furthermore, we document that gendered languages hamper female participation in corporate activities. By addressing gaps and limitations in existing studies, the paper proposes directions for future research to deepen our understanding of how linguistic structures shape financial reporting decisions.
{"title":"Speaking business: A systematic literature review of linguistic structures and financial reporting behavior","authors":"Francis Osei-Tutu , Daniel Taylor , Isaac S. Awuye","doi":"10.1016/j.irfa.2024.103890","DOIUrl":"10.1016/j.irfa.2024.103890","url":null,"abstract":"<div><div>Language shapes its speakers' cognition and decision-making. Consequently, recent studies have examined the effects of linguistic structures like future time reference and gender marking on financial reporting behavior, though the evidence remains fragmented and inconclusive. This paper systematically reviews the academic literature on the effects of linguistic features on financial reporting. Our review suggests that the effects of future time reference on financial reporting quality are less clear-cut than those revealed in individual studies, which are often based on directional hypotheses. Also, while languages that grammatically associate the present with the future promote future-oriented behaviors, they may nevertheless induce greater market volatility. Furthermore, we document that gendered languages hamper female participation in corporate activities. By addressing gaps and limitations in existing studies, the paper proposes directions for future research to deepen our understanding of how linguistic structures shape financial reporting decisions.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103890"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142902014","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103901
Damian Honey , Tanveer Ahsan , Stefania Migliori
This study explores the relationship between corporate governance quality (CGQ) and corporate climate risk disclosure (CCRD), which aligns with the 13th Sustainable Development Goal. We apply text mining techniques to compute a unique CCRD score using manually collected annual reports of French SBF-120 nonfinancial firms listed from 2012 to 2022. Using an index-based measure of CGQ, the regression analyses investigate the association between CGQ and CCRD while considering the influence of the corporate governance committee. The empirical results reveal a substantive association between CGQ and CCRD: Better CGQ corresponds to higher CCRD, particularly after voluntary climate risk disclosure guidelines were introduced in 2017. The results also confirm the importance of the corporate governance committee, as its presence enhances the significance of the impact of CGQ on CCRD. These findings indicate that better CGQ reduces agency conflicts, aligns stakeholders' and managers' interests, and enhances the CCRD of French firms. These results are robust to alternative proxies of CCRD and CGQ and different regression models and techniques.
{"title":"The impact of governance quality on corporate climate risk disclosure: The role of the governance committee","authors":"Damian Honey , Tanveer Ahsan , Stefania Migliori","doi":"10.1016/j.irfa.2024.103901","DOIUrl":"10.1016/j.irfa.2024.103901","url":null,"abstract":"<div><div>This study explores the relationship between corporate governance quality (CGQ) and corporate climate risk disclosure (CCRD), which aligns with the 13th Sustainable Development Goal. We apply text mining techniques to compute a unique CCRD score using manually collected annual reports of French SBF-120 nonfinancial firms listed from 2012 to 2022. Using an index-based measure of CGQ, the regression analyses investigate the association between CGQ and CCRD while considering the influence of the corporate governance committee. The empirical results reveal a substantive association between CGQ and CCRD: Better CGQ corresponds to higher CCRD, particularly after voluntary climate risk disclosure guidelines were introduced in 2017. The results also confirm the importance of the corporate governance committee, as its presence enhances the significance of the impact of CGQ on CCRD. These findings indicate that better CGQ reduces agency conflicts, aligns stakeholders' and managers' interests, and enhances the CCRD of French firms. These results are robust to alternative proxies of CCRD and CGQ and different regression models and techniques.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103901"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142975142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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 : 2025-02-01DOI: 10.1016/j.irfa.2024.103893
Liang Hu, Shishuo Chen
Our study using data from 2126 China's listed firms from 2008 through 2019 investigates the influence of ownership types on corporate environmental investment by using ordinary least squares regression model. Our findings indicate that privately-owned enterprises exhibit lower levels of CEI than state-owned enterprises. Moreover, heterogeneity analysis indicates that the negative influence of private ownership on CEI is stronger for the firms in pollution industries yet weaker in regions with strong Buddhism culture. Furthermore, large firm size attenuates, but R&D intensity amplifies, the negative impact of private ownership. Our research provides evidence to CEI literature by revealing the impact of private ownership and offers advice to firms and governments.
{"title":"Ownership types and corporate environmental investment: Contingent effects of institutional and corporate factors","authors":"Liang Hu, Shishuo Chen","doi":"10.1016/j.irfa.2024.103893","DOIUrl":"10.1016/j.irfa.2024.103893","url":null,"abstract":"<div><div>Our study using data from 2126 China's listed firms from 2008 through 2019 investigates the influence of ownership types on corporate environmental investment by using ordinary least squares regression model. Our findings indicate that privately-owned enterprises exhibit lower levels of CEI than state-owned enterprises. Moreover, heterogeneity analysis indicates that the negative influence of private ownership on CEI is stronger for the firms in pollution industries yet weaker in regions with strong Buddhism culture. Furthermore, large firm size attenuates, but R&D intensity amplifies, the negative impact of private ownership. Our research provides evidence to CEI literature by revealing the impact of private ownership and offers advice to firms and governments.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103893"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143149091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2025.103963
Sijia Zhang , Xin Xia , Liu Gan
We develop a model of banking to clarify how contingent convertible bonds (CoCos) affect banks’ financing and investment policies when they face the upper limit of CoCo issuance. We then discuss the optimal conversion ratio of CoCos. In contrast to the frictionless setting, banks with more dilutive terms optimally choose to delay investment and issue first larger and then smaller CoCos. For banks with a weak (strong) issuance constraint, given high (low) asset volatility or low (high) deposit account service income, mandatory conversion to equity CoCos (permanent full write–down CoCos) are preferred. These findings may provide an explanation for why these two types of CoCos prevail in the market.
{"title":"Optimal conversion ratio of contingent capital under issuance constraints","authors":"Sijia Zhang , Xin Xia , Liu Gan","doi":"10.1016/j.irfa.2025.103963","DOIUrl":"10.1016/j.irfa.2025.103963","url":null,"abstract":"<div><div>We develop a model of banking to clarify how contingent convertible bonds (CoCos) affect banks’ financing and investment policies when they face the upper limit of CoCo issuance. We then discuss the optimal conversion ratio of CoCos. In contrast to the frictionless setting, banks with more dilutive terms optimally choose to delay investment and issue first larger and then smaller CoCos. For banks with a weak (strong) issuance constraint, given high (low) asset volatility or low (high) deposit account service income, mandatory conversion to equity CoCos (permanent full write–down CoCos) are preferred. These findings may provide an explanation for why these two types of CoCos prevail in the market.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"100 ","pages":"Article 103963"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143357379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using an event study approach, this paper examines the impact of the ECB's 2022 climate stress test on the share prices of European banks. We provide novel evidence that investors reacted negatively to both the announcement of the stress test and the publication of the results, even though there was no direct impact on regulatory capital and no detailed disclosure for individual institutions. Our unique dataset combines granular information on bank branch locations with geospatial data on several physical risks (landslides, floods and extreme temperatures) and shows that banks with branches in areas most exposed to physical risks had lower abnormal returns relative to their peers. We also examine the role of being signatory of the Principles for Responsible Banking, finding different results for the announcement and the results' disclosure dates. These results show that investors are pricing in both banks' physical risk exposure and their commitment to responsible banking, even though the regulatory framework for climate risk management is still evolving. Our findings have important implications for investors in assessing climate-related risks in their portfolios, for banks that should develop strategies to manage and mitigate these risks, not only to meet regulatory requirements, but also to preserve their market value and stakeholders' trust, as well as for policymakers in designing effective climate risk disclosure and management frameworks for the banking sector.
{"title":"Spotlight on physical risk: Assessing the banks' stock reaction to the ECB climate stress test","authors":"Franco Fiordelisi , Ornella Ricci , Gianluca Santilli","doi":"10.1016/j.irfa.2024.103882","DOIUrl":"10.1016/j.irfa.2024.103882","url":null,"abstract":"<div><div>Using an event study approach, this paper examines the impact of the ECB's 2022 climate stress test on the share prices of European banks. We provide novel evidence that investors reacted negatively to both the announcement of the stress test and the publication of the results, even though there was no direct impact on regulatory capital and no detailed disclosure for individual institutions. Our unique dataset combines granular information on bank branch locations with geospatial data on several physical risks (landslides, floods and extreme temperatures) and shows that banks with branches in areas most exposed to physical risks had lower abnormal returns relative to their peers. We also examine the role of being signatory of the Principles for Responsible Banking, finding different results for the announcement and the results' disclosure dates. These results show that investors are pricing in both banks' physical risk exposure and their commitment to responsible banking, even though the regulatory framework for climate risk management is still evolving. Our findings have important implications for investors in assessing climate-related risks in their portfolios, for banks that should develop strategies to manage and mitigate these risks, not only to meet regulatory requirements, but also to preserve their market value and stakeholders' trust, as well as for policymakers in designing effective climate risk disclosure and management frameworks for the banking sector.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103882"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142929226","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103891
Dingjun Yao, Kai Yan
The impact of seasonal shocks on China's agricultural supply chain is not well understood, as they pertain to the capital efficiency of small- and medium-sized enterprises. Because they are crucial to national strategy and social progress, we thoroughly investigate upstream and downstream enterprises in this context in terms of their financial indicators using a detailed multilayer double-market nested game. Focusing on receivables recovery pressure and average real rate of return, our model simulates three conditions: no financing, supply chain financing, and supply chain factor financing. The results highlight the potential effects of shocks on enterprise capital utilization rates, revealing that factoring can effectively reduce this impact and help maintain high capital utilization efficiency.
{"title":"Can factoring business alleviate the seasonal impact on agricultural supply chain enterprises?","authors":"Dingjun Yao, Kai Yan","doi":"10.1016/j.irfa.2024.103891","DOIUrl":"10.1016/j.irfa.2024.103891","url":null,"abstract":"<div><div>The impact of seasonal shocks on China's agricultural supply chain is not well understood, as they pertain to the capital efficiency of small- and medium-sized enterprises. Because they are crucial to national strategy and social progress, we thoroughly investigate upstream and downstream enterprises in this context in terms of their financial indicators using a detailed multilayer double-market nested game. Focusing on receivables recovery pressure and average real rate of return, our model simulates three conditions: no financing, supply chain financing, and supply chain factor financing. The results highlight the potential effects of shocks on enterprise capital utilization rates, revealing that <em>factoring</em> can effectively reduce this impact and help maintain high capital utilization efficiency.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103891"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148772","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2025.103918
Bingquan He , Lu Gan
Drawing upon a dataset encompassing non-financial listed firms in China spanning the years 2011 to 2022, this research delves into the influence exerted by CEO authority and technical background on the process of corporate digital transformation. Our findings suggest that an elevation in CEO power positively contributes to the advancement of corporate digital transformation. Furthermore, a discernible positive association exists between a CEO's technical background and the extent of corporate digital transformation. The analysis also uncovers that firm size acts as a moderator in the relationship linking CEO power to corporate digital transformation. Through mechanism exploration, we reveal that Research and Development (R&D) investment serves as a crucial mediator in this relationship. Additionally, an examination of heterogeneity highlights notable disparities in the impact of CEO power on digital transformation when comparing high-tech versus non-high-tech sectors. This study presents empirical insights elucidating the pivotal role of CEOs in driving corporate digital transformation and carries substantial implications for refining corporate governance frameworks and accelerating digital transformation efforts.
{"title":"Exploring the synergistic effect of CEO power and technological expertise in driving corporate digital transformation","authors":"Bingquan He , Lu Gan","doi":"10.1016/j.irfa.2025.103918","DOIUrl":"10.1016/j.irfa.2025.103918","url":null,"abstract":"<div><div>Drawing upon a dataset encompassing non-financial listed firms in China spanning the years 2011 to 2022, this research delves into the influence exerted by CEO authority and technical background on the process of corporate digital transformation. Our findings suggest that an elevation in CEO power positively contributes to the advancement of corporate digital transformation. Furthermore, a discernible positive association exists between a CEO's technical background and the extent of corporate digital transformation. The analysis also uncovers that firm size acts as a moderator in the relationship linking CEO power to corporate digital transformation. Through mechanism exploration, we reveal that Research and Development (R&D) investment serves as a crucial mediator in this relationship. Additionally, an examination of heterogeneity highlights notable disparities in the impact of CEO power on digital transformation when comparing high-tech <em>versus</em> non-high-tech sectors. This study presents empirical insights elucidating the pivotal role of CEOs in driving corporate digital transformation and carries substantial implications for refining corporate governance frameworks and accelerating digital transformation efforts.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103918"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103898
Panpan Hao , Yuchen Wang , Liyan Fan
This study examines the impact of government-guided funds (GGF) on corporate green innovation using data from China's A-share listed companies from 2012 to 2022. Multiple regression model analyses found that government-guided fund investments significantly elevate the level of corporate green innovation, a conclusion supported by robustness and endogeneity tests. Furthermore, this study investigates the mediating role of social resources and the heterogeneous influence of firm ownership and regional location. Results indicate that government-guided funds directly and indirectly facilitate green innovation by increasing social resources. State-owned enterprises (SOEs) and enterprises located in eastern China exhibit more pronounced green innovation enhancement from government-guided fund investments, whereas the promotion effect is relatively weaker for non-SOEs and those in central and western China. Thus, this study suggests increasing investments in government-guided funds, improving the social resource support system, strengthening policy guidance and support, and fostering a corporate innovation culture. In summary, government-guided funds play a pivotal role in driving corporate green innovation; however, further refinement of policies and the social resource support system is necessary.
{"title":"Government-guided fund, social resources, and corporate green innovation","authors":"Panpan Hao , Yuchen Wang , Liyan Fan","doi":"10.1016/j.irfa.2024.103898","DOIUrl":"10.1016/j.irfa.2024.103898","url":null,"abstract":"<div><div>This study examines the impact of government-guided funds (GGF) on corporate green innovation using data from China's A-share listed companies from 2012 to 2022. Multiple regression model analyses found that government-guided fund investments significantly elevate the level of corporate green innovation, a conclusion supported by robustness and endogeneity tests. Furthermore, this study investigates the mediating role of social resources and the heterogeneous influence of firm ownership and regional location. Results indicate that government-guided funds directly and indirectly facilitate green innovation by increasing social resources. State-owned enterprises (SOEs) and enterprises located in eastern China exhibit more pronounced green innovation enhancement from government-guided fund investments, whereas the promotion effect is relatively weaker for non-SOEs and those in central and western China. Thus, this study suggests increasing investments in government-guided funds, improving the social resource support system, strengthening policy guidance and support, and fostering a corporate innovation culture. In summary, government-guided funds play a pivotal role in driving corporate green innovation; however, further refinement of policies and the social resource support system is necessary.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103898"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143149134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"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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