Pub Date : 2026-01-03DOI: 10.1016/j.ribaf.2026.103287
Tianlei Pi, Linke Jiao, Yuhan Zhou, Jin Shi
Based on the sample data of Chinese A-share listed companies from 2010 to 2022, this paper explores whether the biodiversity risk faced by enterprises affect their greenwashing behavior. The study shows a significant positive correlation between biodiversity risk and corporate greenwashing. Further analysis reveals that biodiversity risk influences corporate greenwashing primarily by intensifying financing constraints and affecting government subsidies. The heterogeneity test results show that the above positive correlation varies significantly depending on the nature of firm ownership, the level of institutional investors' shareholding, and the degree of pollution of enterprises. This research provides new evidence for understanding the relationship between biodiversity risk and corporate environmental behavior.
{"title":"Biodiversity risk and corporate greenwashing: Evidence from China","authors":"Tianlei Pi, Linke Jiao, Yuhan Zhou, Jin Shi","doi":"10.1016/j.ribaf.2026.103287","DOIUrl":"10.1016/j.ribaf.2026.103287","url":null,"abstract":"<div><div>Based on the sample data of Chinese A-share listed companies from 2010 to 2022, this paper explores whether the biodiversity risk faced by enterprises affect their greenwashing behavior. The study shows a significant positive correlation between biodiversity risk and corporate greenwashing. Further analysis reveals that biodiversity risk influences corporate greenwashing primarily by intensifying financing constraints and affecting government subsidies. The heterogeneity test results show that the above positive correlation varies significantly depending on the nature of firm ownership, the level of institutional investors' shareholding, and the degree of pollution of enterprises. This research provides new evidence for understanding the relationship between biodiversity risk and corporate environmental behavior.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103287"},"PeriodicalIF":6.9,"publicationDate":"2026-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145927985","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}
Biodiversity loss represents a critical global challenge that is critically underfunded due to market failures rooted in information frictions. Analyzing a comprehensive dataset of Chinese A-share listed firms from 2011 to 2023, we demonstrate that the synergy between digital and green finance (DGF) significantly enhances corporate biodiversity attention (CBIO). Grounded in information friction theory, we posit that this synergy operates through external pressure and internal response channels. These effects are amplified by strong enforcement, digital infrastructure, and climate risk awareness, and are most pronounced in less-developed and non-traditional industrial regions. Our findings demonstrate that architecting integrated digital-green financial ecosystems, rather than isolated policies, is essential to aligning finance with biodiversity goals. Our findings demonstrate that architecting integrated digital-green financial ecosystems, not isolated policies, is essential to aligning finance with biodiversity goals.
{"title":"Leveraging digital-green finance synergies to accelerate biodiversity conservation and sustainability","authors":"Hongyu Guo , Mbarek Rahmoune , Ahmed Imran Hunjra , Xiaoli Xu","doi":"10.1016/j.ribaf.2026.103282","DOIUrl":"10.1016/j.ribaf.2026.103282","url":null,"abstract":"<div><div>Biodiversity loss represents a critical global challenge that is critically underfunded due to market failures rooted in information frictions. Analyzing a comprehensive dataset of Chinese A-share listed firms from 2011 to 2023, we demonstrate that the synergy between digital and green finance (DGF) significantly enhances corporate biodiversity attention (CBIO). Grounded in information friction theory, we posit that this synergy operates through external pressure and internal response channels. These effects are amplified by strong enforcement, digital infrastructure, and climate risk awareness, and are most pronounced in less-developed and non-traditional industrial regions. Our findings demonstrate that architecting integrated digital-green financial ecosystems, rather than isolated policies, is essential to aligning finance with biodiversity goals. Our findings demonstrate that architecting integrated digital-green financial ecosystems, not isolated policies, is essential to aligning finance with biodiversity goals.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103282"},"PeriodicalIF":6.9,"publicationDate":"2026-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145927983","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 : 2025-12-31DOI: 10.1016/j.ribaf.2025.103269
Senliulu Fu, Kun Su, Miaomiao Zhang
In promoting high-quality economic development, this study investigates the relationship between corporate financialization and total factor productivity (TFP) through the lens of internal resource allocation. Using a sample of Chinese non-financial listed firms from 2007 to 2022, we identify an inverted U-shaped relationship between financialization and TFP, with investment efficiency and corporate innovation as key underlying mechanisms. Additionally, gambling culture positively moderates this relationship and intensifies the curve’s steepness, while Confucian culture negatively moderates this relationship and flattens the curve. Heterogeneity analysis reveals that the curve is steeper for state-owned enterprises (SOEs) compared to non-SOEs, and the turning points shift to the right under higher financing constraints. Our further categorization of financial assets into monetary, investment, and speculative types demonstrates that monetary financial assets, characterized by more precautionary savings, exert a more significant nonlinear impact on TFP than the other two types. These findings illustrate the nuanced effects of corporate financialization on TFP and offer practical insights for leveraging financial assets to enhance high-quality economic development.
{"title":"The nonlinear linkage between corporate financialization and total factor productivity: Evidence from China","authors":"Senliulu Fu, Kun Su, Miaomiao Zhang","doi":"10.1016/j.ribaf.2025.103269","DOIUrl":"10.1016/j.ribaf.2025.103269","url":null,"abstract":"<div><div>In promoting high-quality economic development, this study investigates the relationship between corporate financialization and total factor productivity (TFP) through the lens of internal resource allocation. Using a sample of Chinese non-financial listed firms from 2007 to 2022, we identify an inverted U-shaped relationship between financialization and TFP, with investment efficiency and corporate innovation as key underlying mechanisms. Additionally, gambling culture positively moderates this relationship and intensifies the curve’s steepness, while Confucian culture negatively moderates this relationship and flattens the curve. Heterogeneity analysis reveals that the curve is steeper for state-owned enterprises (SOEs) compared to non-SOEs, and the turning points shift to the right under higher financing constraints. Our further categorization of financial assets into monetary, investment, and speculative types demonstrates that monetary financial assets, characterized by more precautionary savings, exert a more significant nonlinear impact on TFP than the other two types. These findings illustrate the nuanced effects of corporate financialization on TFP and offer practical insights for leveraging financial assets to enhance high-quality economic development.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103269"},"PeriodicalIF":6.9,"publicationDate":"2025-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145886215","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 : 2025-12-31DOI: 10.1016/j.ribaf.2025.103272
Conrado Diego García-Gómez , Ender Demir , José María Díez-Esteban
This study investigates the effect of climate risk vulnerability on IPO activity across 28 OECD countries between 1995 and 2020. Using the ND-GAIN Climate Vulnerability Index, we find that greater climate vulnerability is associated with a decline in IPO activity in terms of the number of offerings and total proceeds. These findings suggest that elevated climate risks heighten financial uncertainty, discouraging firms from going public and dampening investor interest. Importantly, we show that this negative effect is lower in countries with higher levels of climate readiness. Among the six sectoral components of the index, only infrastructure shows a negative and significant relationship with IPO activity. Our results are robust to a range of model specifications, lagged analyses, and instrumental variable approaches.
{"title":"How climate vulnerability affects IPO activity: Evidence from OECD countries","authors":"Conrado Diego García-Gómez , Ender Demir , José María Díez-Esteban","doi":"10.1016/j.ribaf.2025.103272","DOIUrl":"10.1016/j.ribaf.2025.103272","url":null,"abstract":"<div><div>This study investigates the effect of climate risk vulnerability on IPO activity across 28 OECD countries between 1995 and 2020. Using the ND-GAIN Climate Vulnerability Index, we find that greater climate vulnerability is associated with a decline in IPO activity in terms of the number of offerings and total proceeds. These findings suggest that elevated climate risks heighten financial uncertainty, discouraging firms from going public and dampening investor interest. Importantly, we show that this negative effect is lower in countries with higher levels of climate readiness. Among the six sectoral components of the index, only infrastructure shows a negative and significant relationship with IPO activity. Our results are robust to a range of model specifications, lagged analyses, and instrumental variable approaches.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"84 ","pages":"Article 103272"},"PeriodicalIF":6.9,"publicationDate":"2025-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146080003","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 : 2025-12-31DOI: 10.1016/j.ribaf.2025.103273
Hai Jiang, Shuangyi Chen, Peng Chen
Our paper examines the impact of online judicial auctions (OJAs) on bank risk-taking by developing a theoretical model and providing empirical evidence from data on China’s commercial banks over the period 2010–2021. Using unique regional OJA data, we find that the implementation of OJAs contributes positively to banks’ stability, with results remaining valid across endogeneity tests and robustness checks. This stabilizing effect is particularly pronounced for local banks and intensifies as auctions progress. Banks burdened by non-performing loans and those with weaker risk mitigation capacity derive greater benefits from OJAs. Our analysis further reveals complementary effects between OJAs and non-performing asset marketization. We document the mechanisms contributing to the positive effect of OJAs, including improving judicial efficiency and strengthening banks’ ability to manage profitability and maintain adequacy.
{"title":"Do online judicial auctions matter for bank risk-taking? Evidence of Chinese commercial banks","authors":"Hai Jiang, Shuangyi Chen, Peng Chen","doi":"10.1016/j.ribaf.2025.103273","DOIUrl":"10.1016/j.ribaf.2025.103273","url":null,"abstract":"<div><div>Our paper examines the impact of online judicial auctions (OJAs) on bank risk-taking by developing a theoretical model and providing empirical evidence from data on China’s commercial banks over the period 2010–2021. Using unique regional OJA data, we find that the implementation of OJAs contributes positively to banks’ stability, with results remaining valid across endogeneity tests and robustness checks. This stabilizing effect is particularly pronounced for local banks and intensifies as auctions progress. Banks burdened by non-performing loans and those with weaker risk mitigation capacity derive greater benefits from OJAs. Our analysis further reveals complementary effects between OJAs and non-performing asset marketization. We document the mechanisms contributing to the positive effect of OJAs, including improving judicial efficiency and strengthening banks’ ability to manage profitability and maintain adequacy.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103273"},"PeriodicalIF":6.9,"publicationDate":"2025-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145886213","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 : 2025-12-30DOI: 10.1016/j.ribaf.2025.103270
Manuel Cano Rodríguez , María de la Paz Horno Bueno
We explore the impact of a country’s tax morale —defined as the intrinsic motivation and social norms that promote tax compliance— on corporate tax avoidance for both domestic firms and multinational corporations (MNCs). Our findings reveal that a strong tax morale environment deters tax avoidance for domestic companies. Moreover, our results indicate that the negative relationship between tax morale and tax avoidance is driven primarily by managers’ own tax morale rather than reputational concerns. For MNCs, our results reveal a more complex relationship between tax morale and income-shifting practices: While strong tax morale in the subsidiaries’ countries is associated with less income-shifting practices, parent companies headquartered in high-tax-morale countries engage more in these practices, possibly to bypass stricter norms at home. This study contributes to the literature by showing that tax morale plays a critical role in shaping corporate tax behavior, offering insights for policymakers on the importance of cultural and social contexts in reducing tax avoidance.
{"title":"The influence of the environment’s tax morale on corporate tax avoidance","authors":"Manuel Cano Rodríguez , María de la Paz Horno Bueno","doi":"10.1016/j.ribaf.2025.103270","DOIUrl":"10.1016/j.ribaf.2025.103270","url":null,"abstract":"<div><div>We explore the impact of a country’s tax morale —defined as the intrinsic motivation and social norms that promote tax compliance— on corporate tax avoidance for both domestic firms and multinational corporations (MNCs). Our findings reveal that a strong tax morale environment deters tax avoidance for domestic companies. Moreover, our results indicate that the negative relationship between tax morale and tax avoidance is driven primarily by managers’ own tax morale rather than reputational concerns. For MNCs, our results reveal a more complex relationship between tax morale and income-shifting practices: While strong tax morale in the subsidiaries’ countries is associated with less income-shifting practices, parent companies headquartered in high-tax-morale countries engage more in these practices, possibly to bypass stricter norms at home. This study contributes to the literature by showing that tax morale plays a critical role in shaping corporate tax behavior, offering insights for policymakers on the importance of cultural and social contexts in reducing tax avoidance.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103270"},"PeriodicalIF":6.9,"publicationDate":"2025-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145927978","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 : 2025-12-30DOI: 10.1016/j.ribaf.2025.103271
Dongliang Yuan , Jianglong Yu , Xiaojuan Yang , Rong Qin
Innovation investment is crucial for the sustainable development and competitive advantage of firms. Increasing attention is given to how to improve the efficiency of firm innovation investment in the academic field. This paper investigates the impact of director networks on firm innovation investment from the perspectives of information advantage, control advantage, and resource advantage. The results show that the position of director networks (centrality and structural holes) can enhance firm innovation investment. Agency costs and corporate governance exert an intermediary effect. The moderating effect indicates that environmental dynamism and redundant resources reinforce the role of director networks in promoting firm innovation investment. An examination of innovation segments and director types reveals that director networks exert a stronger positive influence on exploratory innovation. Director networks composed of independent directors and non-executive directors demonstrate a greater capacity to promote firm innovation. Heterogeneity analysis indicates that the impact of director networks on firm innovation is influenced by firm heterogeneity in digitalization, firm size, and marketization. This paper enriches and supplements the relevant research on director networks and innovation investment by providing evidence from Chinese listed companies and has important practical value and management implications.
{"title":"Director networks and firm innovation investment: Evidence from China","authors":"Dongliang Yuan , Jianglong Yu , Xiaojuan Yang , Rong Qin","doi":"10.1016/j.ribaf.2025.103271","DOIUrl":"10.1016/j.ribaf.2025.103271","url":null,"abstract":"<div><div>Innovation investment is crucial for the sustainable development and competitive advantage of firms. Increasing attention is given to how to improve the efficiency of firm innovation investment in the academic field. This paper investigates the impact of director networks on firm innovation investment from the perspectives of information advantage, control advantage, and resource advantage. The results show that the position of director networks (centrality and structural holes) can enhance firm innovation investment. Agency costs and corporate governance exert an intermediary effect. The moderating effect indicates that environmental dynamism and redundant resources reinforce the role of director networks in promoting firm innovation investment. An examination of innovation segments and director types reveals that director networks exert a stronger positive influence on exploratory innovation. Director networks composed of independent directors and non-executive directors demonstrate a greater capacity to promote firm innovation. Heterogeneity analysis indicates that the impact of director networks on firm innovation is influenced by firm heterogeneity in digitalization, firm size, and marketization. This paper enriches and supplements the relevant research on director networks and innovation investment by providing evidence from Chinese listed companies and has important practical value and management implications.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103271"},"PeriodicalIF":6.9,"publicationDate":"2025-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145886214","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 : 2025-12-24DOI: 10.1016/j.ribaf.2025.103266
Lu Zhang, You Zuo, Zhichao Yin
This study examines the impact of social networking on household financial vulnerability by using data from the China Household Finance Survey during the period of 2017–2021. We find that social networking helps households avoid financial vulnerability in China, especially during challenging times. Furthermore, social networking primarily supports households through information channels such as risk preference, financial literacy, and work stability. This study provides a precise identification of the supportive effects of social networking and contributes to a comprehensive understanding of households in emerging countries during major negative shocks, such as the COVID-19 pandemic.
{"title":"Helping hands during tough times: Social networking and household financial vulnerability","authors":"Lu Zhang, You Zuo, Zhichao Yin","doi":"10.1016/j.ribaf.2025.103266","DOIUrl":"10.1016/j.ribaf.2025.103266","url":null,"abstract":"<div><div>This study examines the impact of social networking on household financial vulnerability by using data from the China Household Finance Survey during the period of 2017–2021. We find that social networking helps households avoid financial vulnerability in China, especially during challenging times. Furthermore, social networking primarily supports households through information channels such as risk preference, financial literacy, and work stability. This study provides a precise identification of the supportive effects of social networking and contributes to a comprehensive understanding of households in emerging countries during major negative shocks, such as the COVID-19 pandemic.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"83 ","pages":"Article 103266"},"PeriodicalIF":6.9,"publicationDate":"2025-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145886212","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 : 2025-12-24DOI: 10.1016/j.ribaf.2025.103262
Haomin Wu , Yuting Yang , Jiani Wang
The rapid proliferation of fintech has disrupted the traditional balance between financial efficiency and stability, prompting regulators worldwide to adopt more adaptive oversight approaches. Adopting a flexible-regulation perspective, this study exploits the Pilot Project of Regulation on Fintech Innovation (PPRFI) as a quasi-natural experiment to examine how flexible fintech regulation affects corporate digital innovation. Based on a sample of Chinese A-share listed firms from 2018 to 2023, we find that PPRFI significantly increases both the quantity and quality of corporate digital innovation. Mechanism analysis further reveals that PPRFI primarily improves corporate digital innovation by facilitating corporate financing and enhancing information transparency. Cross-sectional analysis indicates that the positive effects of this flexible regulation are more pronounced in firms subject to severe financing constraints and high agency costs, and in those operating in high-technology, highly competitive industries. Moreover, we find that the impact of PPRFI is more prominent in regions with a better fintech environment and more advanced digital finance. Overall, our study sheds light on the positive role of flexible fintech regulation in promoting digital innovation.
{"title":"Flexible fintech regulation and corporate digital innovation: Evidence from a quasi-natural experiment","authors":"Haomin Wu , Yuting Yang , Jiani Wang","doi":"10.1016/j.ribaf.2025.103262","DOIUrl":"10.1016/j.ribaf.2025.103262","url":null,"abstract":"<div><div>The rapid proliferation of fintech has disrupted the traditional balance between financial efficiency and stability, prompting regulators worldwide to adopt more adaptive oversight approaches. Adopting a flexible-regulation perspective, this study exploits the Pilot Project of Regulation on Fintech Innovation (PPRFI) as a quasi-natural experiment to examine how flexible fintech regulation affects corporate digital innovation. Based on a sample of Chinese A-share listed firms from 2018 to 2023, we find that PPRFI significantly increases both the quantity and quality of corporate digital innovation. Mechanism analysis further reveals that PPRFI primarily improves corporate digital innovation by facilitating corporate financing and enhancing information transparency. Cross-sectional analysis indicates that the positive effects of this flexible regulation are more pronounced in firms subject to severe financing constraints and high agency costs, and in those operating in high-technology, highly competitive industries. Moreover, we find that the impact of PPRFI is more prominent in regions with a better fintech environment and more advanced digital finance. Overall, our study sheds light on the positive role of flexible fintech regulation in promoting digital innovation.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"82 ","pages":"Article 103262"},"PeriodicalIF":6.9,"publicationDate":"2025-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840360","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 : 2025-12-24DOI: 10.1016/j.ribaf.2025.103264
Jingpeng Chen , Haiying Lin
Different ESG rating agencies often produce significantly divergent assessments for the same firm, posing a substantial challenge for both stakeholders and firms. This divergence can mislead stakeholders, creating confusion and eroding trust in ESG assessments. Previous studies have primarily attributed ESG rating divergence to the lack of universal criteria among rating agencies. However, a more significant yet understudied factor is the information asymmetry between firms and rating agencies. Using a panel dataset of 22,314 firm-year observations from 4102 listed companies in China, we find support that explains how digitalization reduces ESG rating divergence. Drawing on signaling theory, we investigate the effect of firms' digitalization on ESG rating divergence. We argue that digitalization enables firms to reduce information asymmetry with rating agencies, thereby reducing ESG rating divergences. This effect is more pronounced for firms with greater media and analyst coverage. This study contributes to the literature on ESG reporting and information asymmetry, offering insights for practitioners to leverage digitalization to enhance ESG reporting transparency.
{"title":"Corporate digitalization and ESG rating divergence: Evidence from China","authors":"Jingpeng Chen , Haiying Lin","doi":"10.1016/j.ribaf.2025.103264","DOIUrl":"10.1016/j.ribaf.2025.103264","url":null,"abstract":"<div><div>Different ESG rating agencies often produce significantly divergent assessments for the same firm, posing a substantial challenge for both stakeholders and firms. This divergence can mislead stakeholders, creating confusion and eroding trust in ESG assessments. Previous studies have primarily attributed ESG rating divergence to the lack of universal criteria among rating agencies. However, a more significant yet understudied factor is the information asymmetry between firms and rating agencies. Using a panel dataset of 22,314 firm-year observations from 4102 listed companies in China, we find support that explains how digitalization reduces ESG rating divergence. Drawing on signaling theory, we investigate the effect of firms' digitalization on ESG rating divergence. We argue that digitalization enables firms to reduce information asymmetry with rating agencies, thereby reducing ESG rating divergences. This effect is more pronounced for firms with greater media and analyst coverage. This study contributes to the literature on ESG reporting and information asymmetry, offering insights for practitioners to leverage digitalization to enhance ESG reporting transparency.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"82 ","pages":"Article 103264"},"PeriodicalIF":6.9,"publicationDate":"2025-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145883514","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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