Given that growing inflows into ESG-labelled funds have increased significantly in recent years, as well as the ongoing evolving EU regulation on these, the (climate) resilience in ESG-labelled ETFs compared to their conventional peers is of considerable interest to academics, practitioners, and regulators. We explore if the equity ETFs in the European market are affected by climate change, putting emphasis on the equity ESG-labelled ETFs. After estimating the economic losses from extreme climate events by using the climate-related expected shortfall, we identify no significant resilience of the equity ESG-labelled ETFs compared to their conventional counterparties. We conclude that the current green labels under Articles 8 and 9 of the Sustainable Finance Disclosure Regulation (SFDR) have provided little reliability, and that there is a need for considering the geographical allocation in regulatory standards on the climate criteria of ESG-label funds to enhance potential future climate-induced volatility on these ETFs, as well as to offer important guidance for policy makers and finance professionals.
{"title":"Exploring the climate resilience of ESG and conventional ETFs: Evidence from the European region","authors":"Annarita Trotta , Fabio Piluso , Eugenia Strano , Danilo Ceraso","doi":"10.1016/j.ribaf.2026.103313","DOIUrl":"10.1016/j.ribaf.2026.103313","url":null,"abstract":"<div><div>Given that growing inflows into ESG-labelled funds have increased significantly in recent years, as well as the ongoing evolving EU regulation on these, the (climate) resilience in ESG-labelled ETFs compared to their conventional peers is of considerable interest to academics, practitioners, and regulators. We explore if the equity ETFs in the European market are affected by climate change, putting emphasis on the equity ESG-labelled ETFs. After estimating the economic losses from extreme climate events by using the climate-related expected shortfall, we identify no significant resilience of the equity ESG-labelled ETFs compared to their conventional counterparties. We conclude that the current green labels under Articles 8 and 9 of the Sustainable Finance Disclosure Regulation (SFDR) have provided little reliability, and that there is a need for considering the geographical allocation in regulatory standards on the climate criteria of ESG-label funds to enhance potential future climate-induced volatility on these ETFs, as well as to offer important guidance for policy makers and finance professionals.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103313"},"PeriodicalIF":6.9,"publicationDate":"2026-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025130","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-16DOI: 10.1016/j.ribaf.2026.103311
Jia Jiang , Hui Zheng , Zihao Xu
Based on manually collected accounting supervision data from 2006 to 2021, this study examines the impact of the policy on short-term debt for long-term investment (SDLI). Results indicate that firms identified with accounting information quality issues experience an increase in SDLI. Mechanism analysis reveals that these firms face both reputational damage and constrained external financing. Furthermore, heterogeneity analyses indicate that the effect is more pronounced among firms in the growth stage, with less asset reversibility, and with higher risk-taking. The research enriches the literature on government regulation and SDLI, offering valuable insights for policymakers and corporate risk management.
{"title":"Short debt, long pain: How does accounting supervision amplify Chinese corporate maturity mismatch?","authors":"Jia Jiang , Hui Zheng , Zihao Xu","doi":"10.1016/j.ribaf.2026.103311","DOIUrl":"10.1016/j.ribaf.2026.103311","url":null,"abstract":"<div><div>Based on manually collected accounting supervision data from 2006 to 2021, this study examines the impact of the policy on short-term debt for long-term investment (<em>SDLI</em>). Results indicate that firms identified with accounting information quality issues experience an increase in <em>SDLI</em>. Mechanism analysis reveals that these firms face both reputational damage and constrained external financing. Furthermore, heterogeneity analyses indicate that the effect is more pronounced among firms in the growth stage, with less asset reversibility, and with higher risk-taking. The research enriches the literature on government regulation and <em>SDLI</em>, offering valuable insights for policymakers and corporate risk management.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103311"},"PeriodicalIF":6.9,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025137","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates the impact of higher education development on regional entrepreneurial vitality in China, using panel data from 31 provinces between 2011 and 2021. The findings demonstrate that advanced higher education systems significantly enhance regional entrepreneurship by supplying high-level talent, fostering research innovation, and driving resource agglomeration—especially in economically advanced regions. From an international business and finance lens, the study underscores higher education as a strategic economic asset that strengthens innovation capacity and competitiveness in regional markets. Crucially, the development of financial technology (fintech) significantly moderates this relationship by enabling more efficient capital flows, expanding financial inclusion, and accelerating commercialization of innovation. Additionally, regional innovation networks serve as transmission channels, amplifying the impact of higher education through talent mobility, industrial clustering, and cross-sector collaboration. Trust-based partnerships within these networks reduce innovation risks and support smoother exchange of resources. The integration of fintech further enhances network scale and connectivity, fostering dynamic, multi-path entrepreneurial ecosystems. Policy recommendations include region-specific strategies for higher education investment, strengthening cross-regional innovation infrastructure, and deepening the integration of education, fintech, and industry to support globally oriented, innovation-led growth.
{"title":"Higher education, fintech, and regional entrepreneurship: Insights from China's innovation ecosystem","authors":"Jingming Chen , Xiaojie Zhao , Suhang Zheng , Danni Zhou , Xuanmei Cheng","doi":"10.1016/j.ribaf.2026.103310","DOIUrl":"10.1016/j.ribaf.2026.103310","url":null,"abstract":"<div><div>This study investigates the impact of higher education development on regional entrepreneurial vitality in China, using panel data from 31 provinces between 2011 and 2021. The findings demonstrate that advanced higher education systems significantly enhance regional entrepreneurship by supplying high-level talent, fostering research innovation, and driving resource agglomeration—especially in economically advanced regions. From an international business and finance lens, the study underscores higher education as a strategic economic asset that strengthens innovation capacity and competitiveness in regional markets. Crucially, the development of financial technology (fintech) significantly moderates this relationship by enabling more efficient capital flows, expanding financial inclusion, and accelerating commercialization of innovation. Additionally, regional innovation networks serve as transmission channels, amplifying the impact of higher education through talent mobility, industrial clustering, and cross-sector collaboration. Trust-based partnerships within these networks reduce innovation risks and support smoother exchange of resources. The integration of fintech further enhances network scale and connectivity, fostering dynamic, multi-path entrepreneurial ecosystems. Policy recommendations include region-specific strategies for higher education investment, strengthening cross-regional innovation infrastructure, and deepening the integration of education, fintech, and industry to support globally oriented, innovation-led growth.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103310"},"PeriodicalIF":6.9,"publicationDate":"2026-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-15DOI: 10.1016/j.ribaf.2026.103307
Jiayi Yan , Zishen Tang , Kai Yang , Donghui Li , Xinyue Fan
We investigate how digital-innovation spillovers along the supply chain affect equity capital costs using a sample of Chinese listed A-share companies from 2009 to 2021. Empirical results indicate that focal firms’ digital innovation reduces their supply chain partners’ equity costs. This effect is more pronounced when focal firms are nonstate-owned and have less bargaining power in the supply chain. The key mechanisms include increased digital-innovation output and enhanced firm value for supply chain partners. Additionally, focal firms’ strategic information disclosure and technical expertise in management strengthen the cost-reducing effect, while default risk weakens it. This spillover effect is further amplified when supply chain partners have higher levels of research and development human capital. Our results remain robust after accounting for various robustness checks.
{"title":"Digital innovation and the cost-of-equity capital: Evidence from the supply chain","authors":"Jiayi Yan , Zishen Tang , Kai Yang , Donghui Li , Xinyue Fan","doi":"10.1016/j.ribaf.2026.103307","DOIUrl":"10.1016/j.ribaf.2026.103307","url":null,"abstract":"<div><div>We investigate how digital-innovation spillovers along the supply chain affect equity capital costs using a sample of Chinese listed A-share companies from 2009 to 2021. Empirical results indicate that focal firms’ digital innovation reduces their supply chain partners’ equity costs. This effect is more pronounced when focal firms are nonstate-owned and have less bargaining power in the supply chain. The key mechanisms include increased digital-innovation output and enhanced firm value for supply chain partners. Additionally, focal firms’ strategic information disclosure and technical expertise in management strengthen the cost-reducing effect, while default risk weakens it. This spillover effect is further amplified when supply chain partners have higher levels of research and development human capital. Our results remain robust after accounting for various robustness checks.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103307"},"PeriodicalIF":6.9,"publicationDate":"2026-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-14DOI: 10.1016/j.ribaf.2026.103308
Raymond Kwong , Helen S.M. Wong , Man Lung Jonathan Kwok
This study examines whether and how firms adopt environmental, social, and governance (ESG) strategies in response to performance shortfalls, and whether such adoption yields subsequent financial benefits. Drawing on the behavioral theory of the firm, we conceptualize ESG adoption as a strategic response to negative performance feedback. Using a propensity score matched sample of 1516 firms across 38 countries, we identify ESG responses based on substantial increases in ESG scores and link them to prior underperformance, measured primarily via return on assets. Employing a propensity score matching combined with difference-in-differences framework, we find that ESG adoption following shortfalls is associated with significant long-term improvements in firm performance. Disaggregating ESG into its core dimensions reveals that environmental initiatives yield the most immediate performance gains, while social and governance initiatives exhibit relatively less prominent delayed benefits, with governance delivering the largest long-term effects. These findings highlight the heterogeneous value of ESG components and underscore the importance of timing and strategic fit. Our study contributes to literatures on ESG, turnaround strategies, and performance feedback by framing ESG not as static virtue-signaling, but as a deliberate recovery mechanism.
{"title":"ESG as a turnaround strategy: Evidence from global firms facing performance shortfalls","authors":"Raymond Kwong , Helen S.M. Wong , Man Lung Jonathan Kwok","doi":"10.1016/j.ribaf.2026.103308","DOIUrl":"10.1016/j.ribaf.2026.103308","url":null,"abstract":"<div><div>This study examines whether and how firms adopt environmental, social, and governance (ESG) strategies in response to performance shortfalls, and whether such adoption yields subsequent financial benefits. Drawing on the behavioral theory of the firm, we conceptualize ESG adoption as a strategic response to negative performance feedback. Using a propensity score matched sample of 1516 firms across 38 countries, we identify ESG responses based on substantial increases in ESG scores and link them to prior underperformance, measured primarily via return on assets. Employing a propensity score matching combined with difference-in-differences framework, we find that ESG adoption following shortfalls is associated with significant long-term improvements in firm performance. Disaggregating ESG into its core dimensions reveals that environmental initiatives yield the most immediate performance gains, while social and governance initiatives exhibit relatively less prominent delayed benefits, with governance delivering the largest long-term effects. These findings highlight the heterogeneous value of ESG components and underscore the importance of timing and strategic fit. Our study contributes to literatures on ESG, turnaround strategies, and performance feedback by framing ESG not as static virtue-signaling, but as a deliberate recovery mechanism.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103308"},"PeriodicalIF":6.9,"publicationDate":"2026-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979036","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-13DOI: 10.1016/j.ribaf.2026.103305
Yeshen Liu , Kaixi Song , Longhui Xu , Zhe Song
Grounded in expectancy violations theory (EVT), this study examines the impact of corporate Environmental, Social, and Governance (ESG) ratings on exploitative and exploratory innovation using a sample of Chinese A-share listed companies from 2009 to 2021. The findings indicate that ESG ratings promote firms’ exploitative innovation while constraining exploratory innovation. Furthermore, we construct a proxy for managerial ESG risks attention using a large language model (LLM) approach, providing empirical support for the theoretical mechanism of EVT. External stakeholder attention amplifies the positive effect of ESG ratings on exploitative innovation and the negative effect on exploratory innovation. Compared to Governance (G), the effects of Environmental (E) and Social (S) are more pronounced in promoting (suppressing) firms’ exploitative (exploratory) innovation. The heterogeneity analysis reveals that firms will place greater emphasis on balancing exploitative and exploratory innovation under conditions of resource abundance (e.g., high organizational slack, low financing constraints, state ownership, limited market competition, and high corporate reputation) and limited technological accumulation. Further analysis demonstrates that firms with higher ESG ratings benefit from exploitative innovation, which drives short- and medium-term performance growth. Overall, our research deepens the understanding of the complex relationship between ESG and corporate innovation.
{"title":"ESG and firms’ exploitative versus exploratory innovation: Evidence from a large language model approach","authors":"Yeshen Liu , Kaixi Song , Longhui Xu , Zhe Song","doi":"10.1016/j.ribaf.2026.103305","DOIUrl":"10.1016/j.ribaf.2026.103305","url":null,"abstract":"<div><div>Grounded in expectancy violations theory (EVT), this study examines the impact of corporate Environmental, Social, and Governance (ESG) ratings on exploitative and exploratory innovation using a sample of Chinese A-share listed companies from 2009 to 2021. The findings indicate that ESG ratings promote firms’ exploitative innovation while constraining exploratory innovation. Furthermore, we construct a proxy for managerial ESG risks attention using a large language model (LLM) approach, providing empirical support for the theoretical mechanism of EVT. External stakeholder attention amplifies the positive effect of ESG ratings on exploitative innovation and the negative effect on exploratory innovation. Compared to Governance (G), the effects of Environmental (E) and Social (S) are more pronounced in promoting (suppressing) firms’ exploitative (exploratory) innovation. The heterogeneity analysis reveals that firms will place greater emphasis on balancing exploitative and exploratory innovation under conditions of resource abundance (e.g., high organizational slack, low financing constraints, state ownership, limited market competition, and high corporate reputation) and limited technological accumulation. Further analysis demonstrates that firms with higher ESG ratings benefit from exploitative innovation, which drives short- and medium-term performance growth. Overall, our research deepens the understanding of the complex relationship between ESG and corporate innovation.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103305"},"PeriodicalIF":6.9,"publicationDate":"2026-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979038","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-13DOI: 10.1016/j.ribaf.2026.103299
Xinyan Xie, Junfeng Li, Kai Wu
This study investigates the influence of local optimistic expectations on corporate capital structure decisions. Leveraging a sample of Chinese A-share listed firms from 2010 to 2022, we document a robust positive association between regional optimism and corporate leverage ratios. This effect is particularly salient among firms that rely on short-term debt and operate in financially constrained regions. Instrumental variable regressions substantiate a causal interpretation of these findings. The results remain robust across a battery of sensitivity tests, including alternative variable definitions and sample restrictions. Mechanism analysis indicates that optimism shapes capital structure by driving investment expansion and amplifying the transmission of market sentiment. Collectively, our findings underscore the pivotal role of collective sentiment in shaping micro-level financial policies.
{"title":"Local optimistic expectations and corporate capital structure decisions","authors":"Xinyan Xie, Junfeng Li, Kai Wu","doi":"10.1016/j.ribaf.2026.103299","DOIUrl":"10.1016/j.ribaf.2026.103299","url":null,"abstract":"<div><div>This study investigates the influence of local optimistic expectations on corporate capital structure decisions. Leveraging a sample of Chinese A-share listed firms from 2010 to 2022, we document a robust positive association between regional optimism and corporate leverage ratios. This effect is particularly salient among firms that rely on short-term debt and operate in financially constrained regions. Instrumental variable regressions substantiate a causal interpretation of these findings. The results remain robust across a battery of sensitivity tests, including alternative variable definitions and sample restrictions. Mechanism analysis indicates that optimism shapes capital structure by driving investment expansion and amplifying the transmission of market sentiment. Collectively, our findings underscore the pivotal role of collective sentiment in shaping micro-level financial policies.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103299"},"PeriodicalIF":6.9,"publicationDate":"2026-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145969433","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-13DOI: 10.1016/j.ribaf.2026.103300
Abu Bakkar Siddik , Noor ul Amin
{"title":"Corrigendum to “Disruptive innovation or systemic resilience? Investigating the impact of artificial intelligence on banking stability” [Res. Int. Bus. Financ. 82 (2026) 103245]","authors":"Abu Bakkar Siddik , Noor ul Amin","doi":"10.1016/j.ribaf.2026.103300","DOIUrl":"10.1016/j.ribaf.2026.103300","url":null,"abstract":"","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103300"},"PeriodicalIF":6.9,"publicationDate":"2026-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146023341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-13DOI: 10.1016/j.ribaf.2026.103306
Boqi Yu , Wendi Li , Qi Li , Liangcheng Wang
Financial analysts are sophisticated market participants in corporate governance, but they also impose pressure on managers to adopt trade-off strategies when allocating resources across the triple bottom line. Using a sample of Chinese listed firms, this study investigates the impact of analyst coverage on corporate sustainable development. Our empirical results indicate that analyst coverage overall enhances corporate sustainable development, showing a bright side. The potential mechanisms suggest that analyst coverage enhances corporate information disclosure, improves corporate governance quality, and alleviates financing constraints. However, our cross-sectional tests reveal that analyst coverage has a potential dark side, as it enhances the economic performance of small and medium-sized enterprises (SMEs) while weakening their social and environmental performance, and it enhances the social performance of labor-intensive enterprises (LIEs) and the environmental performance of high-carbon emission enterprises (HCEs) while weakening their economic performance. Our findings provide new evidence for a dialectical understanding of the two-sided role of analysts in corporate sustainable development.
{"title":"Bright side or dark side? The impact of analyst coverage on corporate sustainable development","authors":"Boqi Yu , Wendi Li , Qi Li , Liangcheng Wang","doi":"10.1016/j.ribaf.2026.103306","DOIUrl":"10.1016/j.ribaf.2026.103306","url":null,"abstract":"<div><div>Financial analysts are sophisticated market participants in corporate governance, but they also impose pressure on managers to adopt trade-off strategies when allocating resources across the triple bottom line. Using a sample of Chinese listed firms, this study investigates the impact of analyst coverage on corporate sustainable development. Our empirical results indicate that analyst coverage overall enhances corporate sustainable development, showing a bright side. The potential mechanisms suggest that analyst coverage enhances corporate information disclosure, improves corporate governance quality, and alleviates financing constraints. However, our cross-sectional tests reveal that analyst coverage has a potential dark side, as it enhances the economic performance of small and medium-sized enterprises (SMEs) while weakening their social and environmental performance, and it enhances the social performance of labor-intensive enterprises (LIEs) and the environmental performance of high-carbon emission enterprises (HCEs) while weakening their economic performance. Our findings provide new evidence for a dialectical understanding of the two-sided role of analysts in corporate sustainable development.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103306"},"PeriodicalIF":6.9,"publicationDate":"2026-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025132","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-12DOI: 10.1016/j.ribaf.2026.103303
Zhao Duan, Xiuping Zhai, Binglong Xia, Qiuyang Tu
This study investigates how culture shapes organizational behavior through individual-level internalization, focusing on the pathway from executive enculturation to firms’ external communication strategies. Using a novel proxy based on the semantic similarity between executives’ given names and a traditional virtue lexicon, we measure cultural enculturation at the individual level through natural language processing techniques. Analyzing data from Chinese A-share listed firms between 2010 and 2023, we find that executives with higher levels of cultural enculturation tend to guide their firms toward more restrained and pragmatic tones in financial disclosures. This effect is amplified in regions with stronger Confucian cultural presence and in firms with lower separation between ownership and control. Additional analyses show that enculturated executives are also associated with reduced spending on paid media and fewer instances of promotional news manipulation. By linking micro-level cultural traits to firm-level strategic communication, our findings contribute to cross-disciplinary research on culture and corporate behavior, and offer a scalable method for capturing deep-seated cultural orientation in international business settings.
{"title":"Nomen est omen? - Executive names and information release","authors":"Zhao Duan, Xiuping Zhai, Binglong Xia, Qiuyang Tu","doi":"10.1016/j.ribaf.2026.103303","DOIUrl":"10.1016/j.ribaf.2026.103303","url":null,"abstract":"<div><div>This study investigates how culture shapes organizational behavior through individual-level internalization, focusing on the pathway from executive enculturation to firms’ external communication strategies. Using a novel proxy based on the semantic similarity between executives’ given names and a traditional virtue lexicon, we measure cultural enculturation at the individual level through natural language processing techniques. Analyzing data from Chinese A-share listed firms between 2010 and 2023, we find that executives with higher levels of cultural enculturation tend to guide their firms toward more restrained and pragmatic tones in financial disclosures. This effect is amplified in regions with stronger Confucian cultural presence and in firms with lower separation between ownership and control. Additional analyses show that enculturated executives are also associated with reduced spending on paid media and fewer instances of promotional news manipulation. By linking micro-level cultural traits to firm-level strategic communication, our findings contribute to cross-disciplinary research on culture and corporate behavior, and offer a scalable method for capturing deep-seated cultural orientation in international business settings.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103303"},"PeriodicalIF":6.9,"publicationDate":"2026-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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