Research in International Business and Finance最新文献

The processes of digitalization transform the current banking sectors. Digitalization and the increasing role of FinTech are driving the platformization of banking services, affecting the participants involved in their development and operation. This article examines the relationship between capturing value by different banking platforms' participants and the process of their inclusivity and associated vulnerability. The conflict of basic goals is analyzed through the lens of Paradox Theory. Our contribution is a theoretical model that helps understand how the banking platform's inclusiveness leads to value co-creation while introducing vulnerabilities. The governance structure is essential for the context of value co-creation in banking platforms. The model of governance defines the relations between different platform co-creators and their inclusiveness in a particular model. This research refers to the European Union financial market. The motivation for this focus is the regulatory solutions, embracing open banking and open finance. Understanding these dynamics is essential for shaping future policies and ensuring the sustainable development of banking platforms.

This study investigates the moderating influence of institutional quality on the relationship between green finance and sustainable development goals. The study takes data from 46 countries, including 22 developed and 24 developing countries, from 2013 to 2022. We use feasible generalized least square method for analyzing the data. Findings direct that green financing and institutional quality significantly enhance sustainable development goals. Further, regression outcomes also prove the moderating effect of institutional quality in our analysis. The interactive role of institutional quality significantly improves the influence of green finance on sustainable development goals. The strong quality of institutions certifies that investment in green finance is effectively allocated, strengthening their favorable impacts on social and environmental outcomes. Understanding this relationship is vital for policymakers and management to exploit the benefits of green finance investment in attaining sustainable development goals.

Corporate philanthropy plays an important role in enhancing firm reputation and financial performance. Further, board structure has the responsibility to make philanthropic decisions. This study investigates the moderating role of board structure on the relationship between corporate philanthropy and financial performance. We apply fixed effect model for analysing the results, while generalized method of moments (GMM) is employed to check the robustness of the results. We find that corporate philanthropy has a significant positive impact on financial performance. Further, results provide support for the moderating role of board attributes. The findings suggest that the policymakers should take appropriate decisions regarding corporate philanthropy while considering other factors such as board attributes.

This study constructs spillover indices from a volatility spillover network perspective using the Quantile Vector Autoregression (QVAR) model, capturing the RMB exchange rate's tail risk and time-frequency effects across varying shock sizes. Empirical results show that the QVAR-based spillover index more effectively captures the tail risk spillover effects across different quantiles. In the time domain, spillovers between RMB exchange rates are dynamic and particularly sensitive to extreme contingencies. In the frequency domain, RMB exchange rates demonstrate significant spillovers, primarily at low frequencies. During extreme upward events, dynamic observations show high-frequency spillovers surpassing low-frequency ones as dominant drivers in the tail spillovers of the RMB exchange rate. Additionally, the analysis of tail dependence indicators indicates a strong asymmetry in RMB exchange rate correlations, emphasizing market participants' heightened sensitivity to unfavorable shocks. These findings can serve as a reference for policymakers to strengthen risk management of the RMB exchange rate.

In this study, we analyze the performance of mutual fund managers who operate in emerging markets. Emerging stock markets differ from mature markets in significant ways, such as weak prosecution for insider trading, poor corporate governance practices, and a lack of liquidity, which create market inefficiencies that active investment strategies can exploit. We evaluate conditional alphas and multiple measures of liquidity, with a focus on equity funds that invest in emerging markets to achieve abnormal returns. Our analysis shows that smaller funds are significantly impacted by liquidity and that conditioning for public information has a significant effect on the distribution of returns. We find evidence of positive abnormal returns, which suggests that active management in emerging markets can be profitable.

This paper examines the impact of economic uncertainty on firms' overall environmental and social governance (ESG) performance in 3448 companies in 40 economies from 2006 to 2022. It is found that the overall ESG performance of corporations improves with increasing economic uncertainty for both, but more so in developed countries than developing countries. Higher competition further strengthens this relationship indirectly in developed countries but directly weakens it in developing countries. The results are also robust to run different model specifications, samples, and time selections. The findings are consistent with the Stakeholder Theory in developing country firms and a larger group of developed country firms. The results also highlight the substantial influence of economic uncertainty on corporate ESG policies, shedding light on the uncertainty-mitigating aspects of corporate ESG performance.

This paper tries to uncover the corporate governance effects of digital finance based on the corporate tax avoidance perspective. We find strong evidence that digital finance is negatively associated with corporate tax avoidance. The governance role digital finance plays is primarily mediated through the mechanisms of resource allocation and information governance effects. Further analysis shows that the negative effects of digital finance are more pronounced among higher profitability and non-state-owned firms. Additionally, multiple major shareholders and stronger internal control quality(corporate internal governance) as well as higher institutional investor shareholding and more analyst attention(corporate external governance) can strengthen their negative connection, manifesting the complementarity between digital finance and modern corporate governance mechanisms. Overall, this paper reveals the spillover effects of changes in the financial development environment on corporate tax avoidance strategies. It also contributes to enriching the literature on the corporate governance value of digital finance and the factors influencing corporate tax avoidance.

The paper studies the determinants of the interest rate spreads in Estonia, a country that stands out among European countries for its wide spreads and highly concentrated banking sector. Four distinct credit markets are considered for housing loans, consumer loans, long-term corporate loans and short-term corporate loans. The paper uses quarterly panel data from 2000Q1–2021Q1. It uses a two-stage approach to disaggregate the observed spread into a component determined by the bank-specific factors and a component determined by the market-specific factors, which is called pure spread. For each of the two components, we find substantial differences in the determinants of the spreads across different types of loan. While credit risk is important for long-term corporate and housing loans, inverse efficiency is significant in the segment of short-term loans. The contribution of market concentration to the pure spread is larger for household loans than for corporate loans.

This paper investigates the relationship between positive language use in equity crowdfunding pitches and fundraising outcomes, with a focus on the moderating role of punctuation. By analyzing 772 campaigns across 25 platforms in France, Israel, Italy, Turkey, and the United Arab Emirates, the study provides evidence of an inverted U-shaped relationship. Results, framed within signaling theory, reveal that while initial positive language boosts equity collection among backers, further use beyond the inflection point leads to worsening fundraising outcomes. Additionally, punctuation dampens the initial positive effects of positive language use and mitigates the negative returns associated with further positive language use. The paper discusses theoretical implications for academia and practical implications for practitioners and policymakers.

We examine how the COVID-19 pandemic affected the mergers of special purpose acquisition companies (SPACs) in Korea, where SPACs—since their introduction in 2010—have played a significant role in private company public listings. After the COVID-19 outbreak, SPACs were less likely to merge, but for those which chose to do so, merger announcement returns were on average higher, particularly for those that waited to merge until after the stock market recovered its pre-pandemic value. We also find evidence that SPAC holding period returns from the SPAC’s initial public offering to merger consummation (or liquidation, in the case of SPACs that failed to complete a merger) were on average higher after the outbreak. Overall, our results suggest that, despite their limited lifespan and agency issues, SPACs may operate more efficiently and perform better during periods of economic downturn.