Pub Date : 2025-02-01DOI: 10.1016/j.irfa.2024.103823
Thanh Tran , Harvey Nguyen , Mia Hang Pham
This paper examines how financial market participants incorporate corporate culture, an important value-relevant information, into their investment decisions. Utilizing firm-level corporate culture measures derived from the earnings conference call transcripts, we find that firms with stronger cultural values are associated with higher stock liquidity. We identify three channels through which corporate culture affects stock liquidity: reducing information risk, enhancing trust, and increasing investor recognition. In addition, we find that stronger corporate culture is significantly associated with higher stock price informativeness and future stock returns, and lower level of default risk and informed trading. Overall, our findings highlight the importance of corporate culture in enhancing financial market quality.
{"title":"Do financial markets value corporate culture?","authors":"Thanh Tran , Harvey Nguyen , Mia Hang Pham","doi":"10.1016/j.irfa.2024.103823","DOIUrl":"10.1016/j.irfa.2024.103823","url":null,"abstract":"<div><div>This paper examines how financial market participants incorporate corporate culture, an important value-relevant information, into their investment decisions. Utilizing firm-level corporate culture measures derived from the earnings conference call transcripts, we find that firms with stronger cultural values are associated with higher stock liquidity. We identify three channels through which corporate culture affects stock liquidity: reducing information risk, enhancing trust, and increasing investor recognition. In addition, we find that stronger corporate culture is significantly associated with higher stock price informativeness and future stock returns, and lower level of default risk and informed trading. Overall, our findings highlight the importance of corporate culture in enhancing financial market quality.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"98 ","pages":"Article 103823"},"PeriodicalIF":7.5,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143149089","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 : 2025-01-31DOI: 10.1016/j.irfa.2025.103972
Zhi Yu , Qun Wang , Xiangfang Zhao , Qiong Zhao
Based on a sample of listed Chinese firms in heavily polluting industries, we investigate the role of female executives in corporate green business philosophy using information extracted from management discussion and analysis sections of annual reports. Our results indicate that female executives have a significant positive effect on corporate green business philosophy. Additional analyses show that women possess a stronger concept of environmental protection and are more willing to participate in environmental protection activities than men and have superior communication skills and social capabilities, which is the potential mechanism through which female executives influence corporate green business philosophy. We also report that the intensity of environmental regulation from the local government moderates this effect. Moreover, the impact of female executives on a firm's green business philosophy is more pronounced in firms with smaller management heterogeneity, non-state-owned firms, those with high institutional investor shareholdings, and those with low shareholdings of the largest shareholder. Last, the corporate green business philosophy significantly reduces negative news of enterprises and enhances the individual stock return rate.
{"title":"Do female executives play a role in corporate green business philosophy?","authors":"Zhi Yu , Qun Wang , Xiangfang Zhao , Qiong Zhao","doi":"10.1016/j.irfa.2025.103972","DOIUrl":"10.1016/j.irfa.2025.103972","url":null,"abstract":"<div><div>Based on a sample of listed Chinese firms in heavily polluting industries, we investigate the role of female executives in corporate green business philosophy using information extracted from management discussion and analysis sections of annual reports. Our results indicate that female executives have a significant positive effect on corporate green business philosophy. Additional analyses show that women possess a stronger concept of environmental protection and are more willing to participate in environmental protection activities than men and have superior communication skills and social capabilities, which is the potential mechanism through which female executives influence corporate green business philosophy. We also report that the intensity of environmental regulation from the local government moderates this effect. Moreover, the impact of female executives on a firm's green business philosophy is more pronounced in firms with smaller management heterogeneity, non-state-owned firms, those with high institutional investor shareholdings, and those with low shareholdings of the largest shareholder. Last, the corporate green business philosophy significantly reduces negative news of enterprises and enhances the individual stock return rate.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103972"},"PeriodicalIF":7.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096481","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 : 2025-01-31DOI: 10.1016/j.irfa.2025.103964
Yasuhiro Iwanaga , Ryuta Sakemoto
Currency momentum portfolios have not generated positive returns after the global financial crisis. We propose conditional currency momentum strategies that incorporate information about the average forward discount, the currency market volatility, and the return dispersion of currency portfolios. Our strategy goes long in the momentum portfolio only when the average forward discount is positive, the volatility is low, and the return dispersion is low. We reveal that the conditional one-month currency momentum portfolio raises the Sharpe ratio by 0.69 and the certainty equivalent return by 6.6 % per annum.
{"title":"Conditional currency momentum portfolios","authors":"Yasuhiro Iwanaga , Ryuta Sakemoto","doi":"10.1016/j.irfa.2025.103964","DOIUrl":"10.1016/j.irfa.2025.103964","url":null,"abstract":"<div><div>Currency momentum portfolios have not generated positive returns after the global financial crisis. We propose conditional currency momentum strategies that incorporate information about the average forward discount, the currency market volatility, and the return dispersion of currency portfolios. Our strategy goes long in the momentum portfolio only when the average forward discount is positive, the volatility is low, and the return dispersion is low. We reveal that the conditional one-month currency momentum portfolio raises the Sharpe ratio by 0.69 and the certainty equivalent return by 6.6 % per annum.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103964"},"PeriodicalIF":7.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143341989","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 : 2025-01-31DOI: 10.1016/j.irfa.2025.103976
Zhongyi Xiao , Yuanling Li , Cheng Xiang
This study explores suppliers' attitudes towards customer firms' digital transformation and its consequences from the perspective of trade credit. It finds that Chinese public firms with a higher level of digital transformation receive more trade credit from suppliers. Mechanism tests show that digital transformation improves firms' information environment and technical efficiency while reducing financial performance volatility. This, in turn, decreases the information asymmetry and default risks suppliers face, enhancing firms' access to trade credit from suppliers. Further analysis reveals that this effect is stronger in firms with larger sizes, higher market shares, stronger profitability, and lower bankruptcy risks and is more pronounced for firms headquartered in provinces with lower levels of social trust or weaker law enforcement. Finally, we highlight the economic outcomes of this effect by showing that receiving more trade credit helps firms alleviate financing constraints, reduce debt costs, and improve investment efficiency.
{"title":"Do suppliers value customer firms' digital transformation? Evidence from trade credit provision","authors":"Zhongyi Xiao , Yuanling Li , Cheng Xiang","doi":"10.1016/j.irfa.2025.103976","DOIUrl":"10.1016/j.irfa.2025.103976","url":null,"abstract":"<div><div>This study explores suppliers' attitudes towards customer firms' digital transformation and its consequences from the perspective of trade credit. It finds that Chinese public firms with a higher level of digital transformation receive more trade credit from suppliers. Mechanism tests show that digital transformation improves firms' information environment and technical efficiency while reducing financial performance volatility. This, in turn, decreases the information asymmetry and default risks suppliers face, enhancing firms' access to trade credit from suppliers. Further analysis reveals that this effect is stronger in firms with larger sizes, higher market shares, stronger profitability, and lower bankruptcy risks and is more pronounced for firms headquartered in provinces with lower levels of social trust or weaker law enforcement. Finally, we highlight the economic outcomes of this effect by showing that receiving more trade credit helps firms alleviate financing constraints, reduce debt costs, and improve investment efficiency.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103976"},"PeriodicalIF":7.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096482","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 : 2025-01-31DOI: 10.1016/j.irfa.2025.103983
Lili Yan , Neil M. Kellard , Lyudmyla Lambercy
The dynamic conditional correlation (DCC) and co-range models are two main frameworks used to incorporate range-based univariate volatility. Using the two approaches, we construct novel multivariate range-based EGARCH (REGARCH) models: a DCC-REGARCH and co-range REGARCH (CRREGARCH) model, and a co-range CARR (CRCARR) model. We compare these models with five existing models over twelve forecast horizons, ranging from one to twelve weeks, covering currencies and ETFs. Among the eight models, the DCC-REGARCH and CRREGARCH models show the best performance in out-of-sample forecasting of the variance-covariance matrix across a range of market conditions and forecast horizons. These models also generate the lowest variance and turnover for global minimum-variance (GMV) portfolios in the majority of cases.
{"title":"Multivariate range-based EGARCH models","authors":"Lili Yan , Neil M. Kellard , Lyudmyla Lambercy","doi":"10.1016/j.irfa.2025.103983","DOIUrl":"10.1016/j.irfa.2025.103983","url":null,"abstract":"<div><div>The dynamic conditional correlation (DCC) and co-range models are two main frameworks used to incorporate range-based univariate volatility. Using the two approaches, we construct novel multivariate range-based EGARCH (REGARCH) models: a DCC-REGARCH and co-range REGARCH (CRREGARCH) model, and a co-range CARR (CRCARR) model. We compare these models with five existing models over twelve forecast horizons, ranging from one to twelve weeks, covering currencies and ETFs. Among the eight models, the DCC-REGARCH and CRREGARCH models show the best performance in out-of-sample forecasting of the variance-covariance matrix across a range of market conditions and forecast horizons. These models also generate the lowest variance and turnover for global minimum-variance (GMV) portfolios in the majority of cases.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"100 ","pages":"Article 103983"},"PeriodicalIF":7.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143387882","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 : 2025-01-31DOI: 10.1016/j.irfa.2025.103957
Youwei Peng , Ruoshui Bai , Yonghao Guan
New quality productive forces are green productive forces. As an important policy tool, green taxes and fees can affect corporate environmental, social, and governance (ESG) performance, promoting economic green transformation and high-quality development. This study empirically analyses the data of A-share listed companies from 2012 to 2022 and found that green taxes and fees significantly enhance the ESG performance of enterprises. However, in enterprises that bear substantial green tax burdens, such as those with heavy pollution loads, the enhancement effect of green taxes and fees on ESG performance is not as prominent as in other enterprises. Conversely, enterprises with lower institutional investor shareholding ratios and higher market valuations exhibit a stronger enhancement effect of green taxes and fees on their ESG performance. This result shows that the green tax system has achieved positive results and has practical significance in realizing the national “carbon neutrality and carbon peak” strategy. To better use the effect of green taxes and fees on the ESG performance of enterprises, expanding the scope of environmental protection tax, introducing a targeted tax system for heavily polluting enterprises, and promoting the promulgation and implementation of ESG mandatory disclosure policy.
{"title":"Impact of green taxes and fees on corporate ESG performance","authors":"Youwei Peng , Ruoshui Bai , Yonghao Guan","doi":"10.1016/j.irfa.2025.103957","DOIUrl":"10.1016/j.irfa.2025.103957","url":null,"abstract":"<div><div>New quality productive forces are green productive forces. As an important policy tool, green taxes and fees can affect corporate environmental, social, and governance (ESG) performance, promoting economic green transformation and high-quality development. This study empirically analyses the data of A-share listed companies from 2012 to 2022 and found that green taxes and fees significantly enhance the ESG performance of enterprises. However, in enterprises that bear substantial green tax burdens, such as those with heavy pollution loads, the enhancement effect of green taxes and fees on ESG performance is not as prominent as in other enterprises. Conversely, enterprises with lower institutional investor shareholding ratios and higher market valuations exhibit a stronger enhancement effect of green taxes and fees on their ESG performance. This result shows that the green tax system has achieved positive results and has practical significance in realizing the national “carbon neutrality and carbon peak” strategy. To better use the effect of green taxes and fees on the ESG performance of enterprises, expanding the scope of environmental protection tax, introducing a targeted tax system for heavily polluting enterprises, and promoting the promulgation and implementation of ESG mandatory disclosure policy.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"100 ","pages":"Article 103957"},"PeriodicalIF":7.5,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143387768","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 : 2025-01-30DOI: 10.1016/j.irfa.2025.103971
Puliang Du , Runsheng Gu , Ling Luo , Fei Xie , Chenyang Zhang
This study investigates the incremental benefits of ESG criteria on investment portfolio performance, with a particular focus on the non-linear attributes of ESG factors. Employing linear regression models, the research establishes that ESG factors contribute supplementary information to investment portfolios, thereby augmenting the models' explanatory power regarding returns. The integration of ESG data with financial data within an asset pricing framework is further explored, revealing that non-linear integration surpasses conventional linear integration techniques. The findings indicate that the positive impact of ESG information on investment portfolios intensifies with the maturation of regulatory frameworks, manifesting a distinctive efficacy in non-linear models that transcends the capabilities of traditional financial metrics. While ESG metrics offer significant insights for portfolio construction, their correlation with corporate performance is not strictly linear. Moreover, the study demonstrates that the efficacy of ESG varies across different corporate entities, influenced by sector-specific and market capitalization factors. This variability suggests that the strategic application of ESG in investment strategies, when combined with other financial indicators, is more likely to maximize the value of ESG data.
{"title":"The enhanced gain effects of ESG's non-linearity on portfolios: An asset pricing tree model perspective","authors":"Puliang Du , Runsheng Gu , Ling Luo , Fei Xie , Chenyang Zhang","doi":"10.1016/j.irfa.2025.103971","DOIUrl":"10.1016/j.irfa.2025.103971","url":null,"abstract":"<div><div>This study investigates the incremental benefits of ESG criteria on investment portfolio performance, with a particular focus on the non-linear attributes of ESG factors. Employing linear regression models, the research establishes that ESG factors contribute supplementary information to investment portfolios, thereby augmenting the models' explanatory power regarding returns. The integration of ESG data with financial data within an asset pricing framework is further explored, revealing that non-linear integration surpasses conventional linear integration techniques. The findings indicate that the positive impact of ESG information on investment portfolios intensifies with the maturation of regulatory frameworks, manifesting a distinctive efficacy in non-linear models that transcends the capabilities of traditional financial metrics. While ESG metrics offer significant insights for portfolio construction, their correlation with corporate performance is not strictly linear. Moreover, the study demonstrates that the efficacy of ESG varies across different corporate entities, influenced by sector-specific and market capitalization factors. This variability suggests that the strategic application of ESG in investment strategies, when combined with other financial indicators, is more likely to maximize the value of ESG data.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103971"},"PeriodicalIF":7.5,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096480","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 : 2025-01-30DOI: 10.1016/j.irfa.2025.103979
Juan Chen , Chenyan Liu , Daxiang Jin , Zuoping Xiao
This study empirically investigates how economic policy uncertainty (EPU) affects China's urban construction investment (UCI) bond financing costs, revealing a positive relationship. Moreover, UCI corporations operating in regions with higher marketization face lower bond financing costs, and are better equipped to mitigate the adverse effects of EPU on UCI bond financing costs. Conversely, increases in the degree of dependence on land finance increase UCI bond financing costs and exacerbate the adverse effect of EPU on these costs. Further analysis reveals that local government debt levels and land prices are channels through which EPU affects UCI bond financing costs.
{"title":"Impact of economic policy uncertainty on China's urban construction investment bond financing costs","authors":"Juan Chen , Chenyan Liu , Daxiang Jin , Zuoping Xiao","doi":"10.1016/j.irfa.2025.103979","DOIUrl":"10.1016/j.irfa.2025.103979","url":null,"abstract":"<div><div>This study empirically investigates how economic policy uncertainty (EPU) affects China's urban construction investment (UCI) bond financing costs, revealing a positive relationship. Moreover, UCI corporations operating in regions with higher marketization face lower bond financing costs, and are better equipped to mitigate the adverse effects of EPU on UCI bond financing costs. Conversely, increases in the degree of dependence on land finance increase UCI bond financing costs and exacerbate the adverse effect of EPU on these costs. Further analysis reveals that local government debt levels and land prices are channels through which EPU affects UCI bond financing costs.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"100 ","pages":"Article 103979"},"PeriodicalIF":7.5,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143322679","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 : 2025-01-30DOI: 10.1016/j.irfa.2025.103977
Minghui Li , Yiran Song
The creation of bank liquidity is the primary function of banks. In China, because bank executives generally have both political and salary incentives, a bank's liquidity creation is susceptible to both factors. This study uses micro data on commercial banks from 2006 to 2017 to examine this topic and draws four conclusions. First, political and salary incentives are important factors influencing the liquidity creation of commercial banks in China. In particular, these incentives are stronger for bank presidents than for chairpersons. Second, under banks' executive promotion and compensation system, the political incentives for the president and chairperson in large (small and medium-sized) banks are effective (ineffective), whereas the opposite holds for the salary incentives. Third, the introduction of the “restricted salary order” in 2015 severely restricted the salary incentives of the presidents of small and medium-sized banks but not those of the chairperson. Fourth, the liquidity injected by the “Four Trillion” stimulus package changed the political incentives for the presidents and chairpersons of large banks but not those of the presidents and chairpersons of small and medium-sized banks.
{"title":"Bank executive incentives and liquidity creation: Evidence from China","authors":"Minghui Li , Yiran Song","doi":"10.1016/j.irfa.2025.103977","DOIUrl":"10.1016/j.irfa.2025.103977","url":null,"abstract":"<div><div>The creation of bank liquidity is the primary function of banks. In China, because bank executives generally have both political and salary incentives, a bank's liquidity creation is susceptible to both factors. This study uses micro data on commercial banks from 2006 to 2017 to examine this topic and draws four conclusions. First, political and salary incentives are important factors influencing the liquidity creation of commercial banks in China. In particular, these incentives are stronger for bank presidents than for chairpersons. Second, under banks' executive promotion and compensation system, the political incentives for the president and chairperson in large (small and medium-sized) banks are effective (ineffective), whereas the opposite holds for the salary incentives. Third, the introduction of the “restricted salary order” in 2015 severely restricted the salary incentives of the presidents of small and medium-sized banks but not those of the chairperson. Fourth, the liquidity injected by the “Four Trillion” stimulus package changed the political incentives for the presidents and chairpersons of large banks but not those of the presidents and chairpersons of small and medium-sized banks.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103977"},"PeriodicalIF":7.5,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096478","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 : 2025-01-30DOI: 10.1016/j.irfa.2025.103968
Huailing Xie , Xiaodong Xu , Yuan-Teng Hsu
Green innovation is a pivotal strategy in corporate environmental governance. This study utilizes data from Chinese A-share private companies to investigate the impact of the gender of a chairperson's offspring on green innovation. Our findings reveal that chairpersons who are raising daughters are more inclined to foster green innovation, particularly green invention innovation, within their firms. This “daughter effect” is more pronounced in environmentally-sensitive industries, firms with greater financial flexibility, and firms led by chairpersons who were born in less-patriarchal regions. Our channel analysis suggests that chairpersons who are raising daughters allocate less financial asset and exhibit stronger environmental awareness. Furthermore, the green innovation associated with the “daughter effect” can attract government environmental subsidies for firms. Our research contributes to the literature on the role of a chairperson's family dynamics in fostering green innovation and highlights the broader influence of the “daughter effect” in shaping corporate leadership behavior.
{"title":"The daughter effect and green innovation: Evidence from China","authors":"Huailing Xie , Xiaodong Xu , Yuan-Teng Hsu","doi":"10.1016/j.irfa.2025.103968","DOIUrl":"10.1016/j.irfa.2025.103968","url":null,"abstract":"<div><div>Green innovation is a pivotal strategy in corporate environmental governance. This study utilizes data from Chinese A-share private companies to investigate the impact of the gender of a chairperson's offspring on green innovation. Our findings reveal that chairpersons who are raising daughters are more inclined to foster green innovation, particularly green invention innovation, within their firms. This “daughter effect” is more pronounced in environmentally-sensitive industries, firms with greater financial flexibility, and firms led by chairpersons who were born in less-patriarchal regions. Our channel analysis suggests that chairpersons who are raising daughters allocate less financial asset and exhibit stronger environmental awareness. Furthermore, the green innovation associated with the “daughter effect” can attract government environmental subsidies for firms. Our research contributes to the literature on the role of a chairperson's family dynamics in fostering green innovation and highlights the broader influence of the “daughter effect” in shaping corporate leadership behavior.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"100 ","pages":"Article 103968"},"PeriodicalIF":7.5,"publicationDate":"2025-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143377616","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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