Pub Date : 2025-01-13DOI: 10.1016/j.irfa.2025.103930
Keyu Wu , Kaixin Zheng
This study examines the impact of tax incentives for upstream and downstream enterprises on the technological innovation of midstream enterprises from a supply chain perspective. By constructing an econometric model to examine A-share listed companies' financial data, supply chain information, and national tax survey data spanning 2010–2022, the study reveals that tax incentives for downstream enterprises significantly propel midstream enterprises' technological innovation and upgrading. Mechanism analysis demonstrates that tax incentives enhance downstream enterprises' profitability and order volume, subsequently increasing midstream enterprises' human capital and fixed asset investment, driving technological innovation. Furthermore, midstream enterprises that are nonstate-owned and operate in industries with low-concentration ratios (i.e., highly competitive environments) are more likely to improve technological innovation capabilities in response to tax incentives for downstream enterprises.
{"title":"Tax incentives, supply chain spillovers, and enterprise technological innovation","authors":"Keyu Wu , Kaixin Zheng","doi":"10.1016/j.irfa.2025.103930","DOIUrl":"10.1016/j.irfa.2025.103930","url":null,"abstract":"<div><div>This study examines the impact of tax incentives for upstream and downstream enterprises on the technological innovation of midstream enterprises from a supply chain perspective. By constructing an econometric model to examine A-share listed companies' financial data, supply chain information, and national tax survey data spanning 2010–2022, the study reveals that tax incentives for downstream enterprises significantly propel midstream enterprises' technological innovation and upgrading. Mechanism analysis demonstrates that tax incentives enhance downstream enterprises' profitability and order volume, subsequently increasing midstream enterprises' human capital and fixed asset investment, driving technological innovation. Furthermore, midstream enterprises that are nonstate-owned and operate in industries with low-concentration ratios (i.e., highly competitive environments) are more likely to improve technological innovation capabilities in response to tax incentives for downstream enterprises.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103930"},"PeriodicalIF":7.5,"publicationDate":"2025-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142990540","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 : 2025-01-09DOI: 10.1016/j.irfa.2025.103919
Huijing Li , Danjue Clancey-Shang , Chengbo Fu , Tianze Li
In this paper, we examine the ESG performance of traditional energy firms relative to their non-energy counterparts. Our findings reveal that energy firms outperform non-energy firms in ESG metrics. Within the energy sector, firms in the USA and Europe lead in ESG performance, while those in Japan, Australia, India, and China trail. These results hold even after controlling for other firm characteristics and remain robust to Propensity Score Matching (PSM) analysis. Additionally, we identify financial flexibility as a key driver of this relationship. Specifically, the positive association between being an energy firm and higher ESG performance is more pronounced in firms with greater net cash flow.
{"title":"Does the world need more traditional energy? A comparative analysis of ESG activities, free cash flow, and capital market implications","authors":"Huijing Li , Danjue Clancey-Shang , Chengbo Fu , Tianze Li","doi":"10.1016/j.irfa.2025.103919","DOIUrl":"10.1016/j.irfa.2025.103919","url":null,"abstract":"<div><div>In this paper, we examine the ESG performance of traditional energy firms relative to their non-energy counterparts. Our findings reveal that energy firms outperform non-energy firms in ESG metrics. Within the energy sector, firms in the USA and Europe lead in ESG performance, while those in Japan, Australia, India, and China trail. These results hold even after controlling for other firm characteristics and remain robust to Propensity Score Matching (PSM) analysis. Additionally, we identify financial flexibility as a key driver of this relationship. Specifically, the positive association between being an energy firm and higher ESG performance is more pronounced in firms with greater net cash flow.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103919"},"PeriodicalIF":7.5,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096483","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 : 2025-01-09DOI: 10.1016/j.irfa.2025.103920
Jian Yao , Cunyi Yang
This study explores the role of financial technology (Fintech) in influencing climate risks within financial markets by introducing the Climate Risk Index in Financial Markets (CRIFM), which measures the return differences between green and traditional markets. Through theoretical analysis and empirical research, we find that the development of Fintech significantly increases climate risk in financial markets. The research identifies two main pathways: first, Fintech enhances investment efficiency, directing capital more effectively toward high-return green projects; second, it reduces information asymmetry, increasing transparency and trust in green investments. Our findings suggest that Fintech is essential in helping investors identify and evaluate climate-friendly companies, thereby supporting the growth of green investments. Based on these results, we recommend that governments and regulatory bodies actively promote Fintech innovations and their application in green finance to improve market fairness and transparency, ultimately contributing to sustainable development goals.
{"title":"Financial technology and climate risks in the financial market","authors":"Jian Yao , Cunyi Yang","doi":"10.1016/j.irfa.2025.103920","DOIUrl":"10.1016/j.irfa.2025.103920","url":null,"abstract":"<div><div>This study explores the role of financial technology (Fintech) in influencing climate risks within financial markets by introducing the Climate Risk Index in Financial Markets (CRIFM), which measures the return differences between green and traditional markets. Through theoretical analysis and empirical research, we find that the development of Fintech significantly increases climate risk in financial markets. The research identifies two main pathways: first, Fintech enhances investment efficiency, directing capital more effectively toward high-return green projects; second, it reduces information asymmetry, increasing transparency and trust in green investments. Our findings suggest that Fintech is essential in helping investors identify and evaluate climate-friendly companies, thereby supporting the growth of green investments. Based on these results, we recommend that governments and regulatory bodies actively promote Fintech innovations and their application in green finance to improve market fairness and transparency, ultimately contributing to sustainable development goals.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103920"},"PeriodicalIF":7.5,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049705","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 : 2025-01-05DOI: 10.1016/j.irfa.2025.103916
Yiqi He , Zhihui Li , Xinyue Wang , Xi Chen
Government investment and Human capital flow significantly promote the improvement of urban innovation level. Government investment provides research and development funds and innovation resources for cities. Technological talents are an important support for national and regional innovation, and their mobility effect can accelerate the improvement of regional innovation development. The construction of smart cities attracts government investment and capital flow, thereby promoting urban innovation. Based on the panel data of 248 prefecture-level cities and quasi-natural experiments of smart city pilot projects from 2009 to 2021, this paper constructs a two-way fixed-effects model and uses the double-difference method to study the impact of smart city construction on the city's innovation level, focusing on the mediating effect of government investment and senior human capital flow in the process of smart city innovation stimulation, and further analyses the space of the mediating effect of talent agglomeration differences. The results of the study show that: (1) Smart city construction plays an important role in promoting urban innovation. (2) Smart city construction can promote urban innovation through human capital flow and government investment mechanism. (3) There is heterogeneity in the impact of smart city construction on the level of urban innovation. (4) In the eastern region, advanced human capital flow plays the most significant mediating effect in the process of smart city construction promoting urban innovation development.
{"title":"Government investment, human capital flow, and urban innovation: Evidence from smart city construction in China","authors":"Yiqi He , Zhihui Li , Xinyue Wang , Xi Chen","doi":"10.1016/j.irfa.2025.103916","DOIUrl":"10.1016/j.irfa.2025.103916","url":null,"abstract":"<div><div>Government investment and Human capital flow significantly promote the improvement of urban innovation level. Government investment provides research and development funds and innovation resources for cities. Technological talents are an important support for national and regional innovation, and their mobility effect can accelerate the improvement of regional innovation development. The construction of smart cities attracts government investment and capital flow, thereby promoting urban innovation. Based on the panel data of 248 prefecture-level cities and quasi-natural experiments of smart city pilot projects from 2009 to 2021, this paper constructs a two-way fixed-effects model and uses the double-difference method to study the impact of smart city construction on the city's innovation level, focusing on the mediating effect of government investment and senior human capital flow in the process of smart city innovation stimulation, and further analyses the space of the mediating effect of talent agglomeration differences. The results of the study show that: (1) Smart city construction plays an important role in promoting urban innovation. (2) Smart city construction can promote urban innovation through human capital flow and government investment mechanism. (3) There is heterogeneity in the impact of smart city construction on the level of urban innovation. (4) In the eastern region, advanced human capital flow plays the most significant mediating effect in the process of smart city construction promoting urban innovation development.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103916"},"PeriodicalIF":7.5,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096488","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}
Exploit a quasi-natural experiment created by China's anti-corruption campaigns, we investigate whether and how political corruption affects corporate tax strategies in this study. Taking advantage of a sample of Chinese listed companies, we find robust evidence that levels of local corruption are positively related to corporate tax avoidance. Moreover, we find that CEO traits, including gender, foreign experience, and tenure, perform a significant moderating role in the relationship we identified by influencing CEOs' perceptions of and propensity for bribery. Overall, our study sheds light on the implications of political corruption for corporate tax behavior, thus enriching the literature on corruption and corporate tax behavior.
{"title":"Political corruption and corporate tax avoidance: A quasi-natural experiment","authors":"Chunguang Ma , Shunfei Feng , Wenhui Huang , Aoyun Chen","doi":"10.1016/j.irfa.2025.103917","DOIUrl":"10.1016/j.irfa.2025.103917","url":null,"abstract":"<div><div>Exploit a quasi-natural experiment created by China's anti-corruption campaigns, we investigate whether and how political corruption affects corporate tax strategies in this study. Taking advantage of a sample of Chinese listed companies, we find robust evidence that levels of local corruption are positively related to corporate tax avoidance. Moreover, we find that CEO traits, including gender, foreign experience, and tenure, perform a significant moderating role in the relationship we identified by influencing CEOs' perceptions of and propensity for bribery. Overall, our study sheds light on the implications of political corruption for corporate tax behavior, thus enriching the literature on corruption and corporate tax behavior.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103917"},"PeriodicalIF":7.5,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143096485","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 : 2025-01-04DOI: 10.1016/j.irfa.2025.103914
Zhengyong Zhang, Wanjing Cui, Xiaoxiao Deng
Enterprise upgrading is the micro-foundation for fostering high-quality economic development. The values and cognitive traits of executives, as the formulators and executors of enterprise upgrading strategies, are internalized into the decision-making process, which in turn affect the behavior and performance of the enterprise. Based on data from A-share listed companies in China from 2009 to 2022, this study examines the impact of executives' green experience on enterprise upgrading, drawing on upper echelons theory and branding theory. Findings indicate that executives' green experience contributes to enterprise total factor productivity (TFP). Moreover, the role of executives' green experience varies: the more power executives have within the team and the more work experience they have with green practices, the greater their effect on promoting TFP. This effect is most evident in non-state-owned and non-heavily polluting enterprises. The conclusions remain valid after conducting the endogeneity and robustness tests. Mechanism test results reveal that executive green experience improves firms' TFP by attracting green investors, thereby strengthening external oversight of environmental governance and by enhancing the efficiency of green innovation. Further studies show that establishing a sustainability committee amplifies the positive impact of executives' green experience on TFP. However, when an enterprise has an excess of redundant resources, this contribution is diminished. This study not only enriches the literature on the governance effect of executives' green experience in terms of high-quality development but also provides valuable insights for regulators seeking to guide and oversee enterprise upgrading.
{"title":"Can executive green experience improve enterprise total factor productivity? Evidence from China","authors":"Zhengyong Zhang, Wanjing Cui, Xiaoxiao Deng","doi":"10.1016/j.irfa.2025.103914","DOIUrl":"10.1016/j.irfa.2025.103914","url":null,"abstract":"<div><div>Enterprise upgrading is the micro-foundation for fostering high-quality economic development. The values and cognitive traits of executives, as the formulators and executors of enterprise upgrading strategies, are internalized into the decision-making process, which in turn affect the behavior and performance of the enterprise. Based on data from A-share listed companies in China from 2009 to 2022, this study examines the impact of executives' green experience on enterprise upgrading, drawing on upper echelons theory and branding theory. Findings indicate that executives' green experience contributes to enterprise total factor productivity (TFP). Moreover, the role of executives' green experience varies: the more power executives have within the team and the more work experience they have with green practices, the greater their effect on promoting TFP. This effect is most evident in non-state-owned and non-heavily polluting enterprises. The conclusions remain valid after conducting the endogeneity and robustness tests. Mechanism test results reveal that executive green experience improves firms' TFP by attracting green investors, thereby strengthening external oversight of environmental governance and by enhancing the efficiency of green innovation. Further studies show that establishing a sustainability committee amplifies the positive impact of executives' green experience on TFP. However, when an enterprise has an excess of redundant resources, this contribution is diminished. This study not only enriches the literature on the governance effect of executives' green experience in terms of high-quality development but also provides valuable insights for regulators seeking to guide and oversee enterprise upgrading.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"99 ","pages":"Article 103914"},"PeriodicalIF":7.5,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143135949","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 : 2025-01-01DOI: 10.1016/j.irfa.2024.103867
Dehua Shen , Yuyan Chang , John W. Goodell , Shaen Corbet
Inferior levels of information transparency have, for some time, been positively associated with lower levels of idiosyncratic volatility, particularly when explaining the elevated synchronicity of emerging stock markets. While idiosyncratic volatility reflects firm-specific information, in environments of reduced property-right protection, firm-specific information is found to be inefficiently valued. However, when considering Chinese firms, we find that elevated idiosyncratic volatility is associated with reduced rather than improved transparency. Utilising related bond characteristics and unique data inferring information risk while controlling for other factors, such as default risk, we find that bonds issued by firms with higher idiosyncratic volatility possess lower credit ratings and higher yield spreads. Additionally, firms with higher idiosyncratic volatility are prone to issue callable bonds to mitigate under-investment problems. Therefore, idiosyncratic volatility is found to be positively associated with elevated information risk, while higher, rather than lower, idiosyncratic volatility is identified as a pronounced characteristic directly related to more opaque information quality. Results are robust after controlling for market development, regulatory maturity, and increasing globalisation.
{"title":"Does idiosyncratic volatility always reflect transparency? Evidence from Chinese equity and bond markets","authors":"Dehua Shen , Yuyan Chang , John W. Goodell , Shaen Corbet","doi":"10.1016/j.irfa.2024.103867","DOIUrl":"10.1016/j.irfa.2024.103867","url":null,"abstract":"<div><div>Inferior levels of information transparency have, for some time, been positively associated with lower levels of idiosyncratic volatility, particularly when explaining the elevated synchronicity of emerging stock markets. While idiosyncratic volatility reflects firm-specific information, in environments of reduced property-right protection, firm-specific information is found to be inefficiently valued. However, when considering Chinese firms, we find that elevated idiosyncratic volatility is associated with reduced rather than improved transparency. Utilising related bond characteristics and unique data inferring information risk while controlling for other factors, such as default risk, we find that bonds issued by firms with higher idiosyncratic volatility possess lower credit ratings and higher yield spreads. Additionally, firms with higher idiosyncratic volatility are prone to issue callable bonds to mitigate under-investment problems. Therefore, idiosyncratic volatility is found to be positively associated with elevated information risk, while higher, rather than lower, idiosyncratic volatility is identified as a pronounced characteristic directly related to more opaque information quality. Results are robust after controlling for market development, regulatory maturity, and increasing globalisation.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"97 ","pages":"Article 103867"},"PeriodicalIF":7.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143102761","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}
We present a multi-objective portfolio optimization framework that accounts for both systemic risk arising from overlapping portfolios and individual risk. To address non-convexity in the objective function, we introduce an Evolutionary Search algorithm that enables efficient exploration of the solution space. Applying our framework to EBA data on sovereign exposures, we find that minimizing systemic risk results in highly concentrated and diverse portfolios, adding empirical evidence to a growing literature on the ambiguous effects of diversification on systemic risk. In contrast, individual risk optimal allocations exhibit high portfolio diversification and homogeneity. By characterizing a set of Pareto frontiers, we identify a trade-off between the two risk components. Even a small preference for minimizing systemic risk leads to optimal portfolios on the frontier that differ significantly from the observed ones, suggesting potential inefficiencies in actual portfolio structures.
{"title":"Systemic risk from overlapping portfolios: A multi-objective optimization framework","authors":"Alessandro Sulas , Dietmar Maringer , Sandra Paterlini","doi":"10.1016/j.irfa.2024.103794","DOIUrl":"10.1016/j.irfa.2024.103794","url":null,"abstract":"<div><div>We present a multi-objective portfolio optimization framework that accounts for both systemic risk arising from overlapping portfolios and individual risk. To address non-convexity in the objective function, we introduce an Evolutionary Search algorithm that enables efficient exploration of the solution space. Applying our framework to EBA data on sovereign exposures, we find that minimizing systemic risk results in highly concentrated and diverse portfolios, adding empirical evidence to a growing literature on the ambiguous effects of diversification on systemic risk. In contrast, individual risk optimal allocations exhibit high portfolio diversification and homogeneity. By characterizing a set of Pareto frontiers, we identify a trade-off between the two risk components. Even a small preference for minimizing systemic risk leads to optimal portfolios on the frontier that differ significantly from the observed ones, suggesting potential inefficiencies in actual portfolio structures.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"97 ","pages":"Article 103794"},"PeriodicalIF":7.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142793275","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 : 2025-01-01DOI: 10.1016/j.irfa.2024.103872
Yeshen Liu, Beibei Wang, Zhe Song
Existing research mainly focuses on the economic consequences of artificial intelligence (AI) applications for firms, while less attention is given to its non-economic effects. This study uses data from listed non-financial companies in China between 2008 and 2021, first comparing various methods to effectively measure firm-level AI application and then assessing its impact on corporate environmental performance. The findings indicate that AI application enhances the growth of environmental performance. This growth comes primarily through decreased operating costs, increased operational efficiency, and enhanced employee productivity. AI-powered growth is concentrated among manufacturing firms and is associated with larger fixed assets. Additionally, it is concentrated in firms with lower conventional low-skilled labor and is linked to higher unconventional high-skilled labor. We also find that AI application more effectively translates environmental performance into reputation and market value. Overall, this study offers valuable insights and implications for environmental governance in emerging market firms.
{"title":"Promoting or inhibiting: The impact of artificial intelligence application on corporate environmental performance","authors":"Yeshen Liu, Beibei Wang, Zhe Song","doi":"10.1016/j.irfa.2024.103872","DOIUrl":"10.1016/j.irfa.2024.103872","url":null,"abstract":"<div><div>Existing research mainly focuses on the economic consequences of artificial intelligence (AI) applications for firms, while less attention is given to its non-economic effects. This study uses data from listed non-financial companies in China between 2008 and 2021, first comparing various methods to effectively measure firm-level AI application and then assessing its impact on corporate environmental performance. The findings indicate that AI application enhances the growth of environmental performance. This growth comes primarily through decreased operating costs, increased operational efficiency, and enhanced employee productivity. AI-powered growth is concentrated among manufacturing firms and is associated with larger fixed assets. Additionally, it is concentrated in firms with lower conventional low-skilled labor and is linked to higher unconventional high-skilled labor. We also find that AI application more effectively translates environmental performance into reputation and market value. Overall, this study offers valuable insights and implications for environmental governance in emerging market firms.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"97 ","pages":"Article 103872"},"PeriodicalIF":7.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143102758","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 : 2025-01-01DOI: 10.1016/j.irfa.2024.103852
Yongjia Lin , Hong Deng , Yizhi Wang
This paper examines the influence of institutional investors’ site visits on corporate financialization of heavily polluted enterprises in China. We find that these visits significantly restrain corporate financialization, and this effect is robust after addressing concerns of endogeneity. Mechanism analyses show that institutional investors’ site visits affect corporate financialization by alleviating financing constraints and improving corporate governance. We also show that the impact is more pronounced for companies operating in regions with poor information environments, weaker financial development, and less robust legal frameworks. Moreover, our finding reveals that the impact is significant only for firms that are visited by “independent” institutional investors.
{"title":"Institutional investors’ site visits and corporate financialization in China","authors":"Yongjia Lin , Hong Deng , Yizhi Wang","doi":"10.1016/j.irfa.2024.103852","DOIUrl":"10.1016/j.irfa.2024.103852","url":null,"abstract":"<div><div>This paper examines the influence of institutional investors’ site visits on corporate financialization of heavily polluted enterprises in China. We find that these visits significantly restrain corporate financialization, and this effect is robust after addressing concerns of endogeneity. Mechanism analyses show that institutional investors’ site visits affect corporate financialization by alleviating financing constraints and improving corporate governance. We also show that the impact is more pronounced for companies operating in regions with poor information environments, weaker financial development, and less robust legal frameworks. Moreover, our finding reveals that the impact is significant only for firms that are visited by “independent” institutional investors.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":"97 ","pages":"Article 103852"},"PeriodicalIF":7.5,"publicationDate":"2025-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143102764","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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