Research in International Business and Finance最新文献

New energy vehicle (NEV) as an environmentally friendly product, the willingness to pay (WTP) for the environmental value of NEVs represents an effective investment by consumers in sustainable development. Understanding the specific value and its changes is crucial for developing the NEV industry and the progress of sustainable development. (Lin and Tan, 2017) estimated the environmental value of NEVs in 2016. Considering the significant changes in the NEV industry since then, this study re-surveyed urban residents in five provinces of China in 2023, using an ordered probit model based on the contingent valuation method (CVM) to measure changes in their WTP for the environmental value of NEVs. The findings are as follows: (1) Since 2016, urban residents have perceived substantial changes in NEV prices, costs, and performances; (2) An increasing number of people are willing to purchase NEVs, but this is tempered by factors such as insufficient range, slower charging compared to refueling, and inadequate charging infrastructure; (3) The Chinese residents' WTP for the environmental value of NEVs is 28,500 RMB, which, after adjusting for price index effects, is significantly lower than the 30,600 RMB in 2016; (4) The reasons for the decreased WTP include reduced income, higher NEV prices, increased variety and improved performance, reduced incentive policies, adequate charging infrastructure, and worsening traffic congestion. Based on these empirical results, this paper offers targeted policy recommendations.

Global sovereign debt risks are escalating with the tightening of global liquidity. We apply the LASSO-VAR spillover model, network approach and block model to analyze the overall situation and time-varying characteristics of sovereign risk volatility spillover effects among 50 countries. The results show that there is a discernible cyclical pattern in the spillover effect of global sovereign risk volatility, with the spillover intensity progressively rising in each cycle, and more countries have emerged as "net risk exporters" recently. Countries and regions exhibit diverse risk spillover traits, and assume varying roles in the transmission of sovereign debt risks. The originator of a sovereign risk shock isn't necessarily its primary disseminator, underscoring the need to account for systemic significance and risk infectivity. The interlinkages among sovereign debt risk spillover blocks vary over time, given that the composition and attributes of these blocks change. Our findings provide implications for related regulators and investors.

This paper analyzes the impact of energy market conditions, specifically electricity and natural gas prices, on systemic risk in the Euro Area. We adopt the $CoVaR$ methodology introduced by Tobias and Brunnermeier (2016) to analyze shifts in the system’s value at risk, incorporating considerations for electricity and natural gas prices. Our findings reveal that energy-related variables influence systemic risk to a similar extent as other state variables, such as interbank spreads and market volatility. Notably, we find that electricity prices have a more pronounced impact on banks’ risk compared to natural gas prices. Moreover, we observe that the $\Delta CoVaR$ serves as a reliable measure of systemic stress conditions when compared to the CISS index established by the ECB. Specifically, the $\Delta CoVaR$ developed in this paper, based on data up to the year 2021, anticipates the stress in the system that the CISS index captures in 2022.

This study examines how institutional investor investment horizons impact stock price crash risk for China’s A-share firms from 2007 to 2019. Long-term investments by institutions significantly mitigate risk by curbing managerial myopia, enhancing transparency, and improving accountability, thus deterring self-serving behavior. Moreover, long-term shareholding and professional investment indeed strengthen institutional investor supervision and corporate governance, reducing stock price crash risk. This paper also discusses institutional investor characteristics, such as herding behavior, information competition, and cliques, as well as external environmental factors, such as investor protection and external monitoring, on institutional investor horizons. Furthermore, effective internal governance, such as diversity of board sources and the diligence of audit committees, can amplify the risk reduction effects of long-term institutional investment.

The Russian invasion of Ukraine in early 2022, triggered a wave of risk aversion in the global financial markets. In contrast to previous events, South American emerging economies experienced limited impact to this more restrictive global financial environment. To measure the financial conditions of these economies over time, we propose an International Financial Conditions Index for South American economies (IFCI-SA), built from a parametric factor model. This index includes standard variables provided by the literature, along with sovereign debt risk premia and the most relevant commodity prices for the region. We use our model and index to: (i) discuss South American financial conditions from 2007 to 2024; (ii) explain the impact of a particular global event like the Russo-Ukrainian war; (iii) decompose risk premia movements into global and domestic shocks; and (iv) test its forecasting capabilities.

Using manually collected firm-level data on foreign subsidiaries, we examine the impact of internationalization on analysts’ earnings forecast bias in Chinese corporations. We find that analysts’ earnings forecast bias is stronger among multinational firms when compared with domestic firms, and the higher the level of internationalization, the greater the bias in analysts’ earnings forecasts. Various methods, such as the Heckman two-stage least squares, propensity score matching, and difference in difference tests, are employed to ensure the robustness of our results. The mechanism analysis indicates that oversea business complexity, information asymmetry and analysts’ experience are critical factors that moderate the relationship between international diversification and forecast bias. These findings have important implications for multinational corporations, analysts, and investors.

Two successive crises have raised the need to understand the dynamics of the global energy sector during these crises. This study examines the effects of the Russia-Ukraine War (RUW) and the COVID-19 pandemic on the energy sector across developed and emerging markets. Additionally, it examines the role of firm- and country-specific variables in stimulating energy stocks. We employ a rigorous event study methodology to analyse data from 387 firms spanning 44 countries and reveal that the RUW exerted a more significant global impact on the energy sector compared to the pandemic, both before and after the event day. Notably, emerging markets displayed early reactions before the global announcement of the COVID-19 pandemic. Remarkably, the American markets were hardest hit by the pandemic, while Asia and the Pacific, Europe, and the Middle East and Africa fared relatively better. Intriguingly, our cross-sectional analysis demonstrates that firm-specific characteristics (leverage and firm size) and the country-level governance variable, corruption control, influenced market performance during these events. Conversely, country-level development variables demonstrated minimal impact. This study enhances the understanding of how global crises uniquely impact the global energy sector. It also demonstrates how country-level governance variables could influence stock market returns.

This research paper explores the impact of board diversity on firm performance, with a particular focus on different types of board members. The study examines gender, age, tenure, education, and nationality diversity among board members for their effects on firm performance. Using a multi-country dataset and various performance proxies, the paper employs panel regression analysis to assess the relationships. The findings reveal nuanced effects of diversity, with gender diversity among independent and non-executive directors, age diversity among executive directors, and education diversity among executives showing positive impacts. The dominant pathway among these effects is the strategic role of directors, as suggested by the resource dependence theory. However, the paper also highlights the inappropriateness of a one-size-fits-all approach to board diversity, which can have either positive or negative effects depending on the context. Overall, the research contributes to the understanding of board diversity and its implications for corporate governance and firm performance.

Artificial intelligence (AI) and big data tokens have emerged as unique investment options, garnering interest due to their connectedness with other assets and financial markets. Utilizing Chang et al. (2000)'s cross-sectional absolute deviation (CSAD) model, we investigate static and time-varying herding in the AI and big data token markets. This research contributes to the growing discourse on AI and big data token investment through the lens of behavioral finance, with a particular focus on examining investor herding. The study's findings confirm market-wide herding of AI and big data tokens. The results suggest that investors exhibit herding in up markets, low volatility, and low volume days. Conversely, anti-herding is more prevalent in down markets, high volatility, and high volume days. Our analysis shows that herding is time-varying and emerges during a crisis period. The finding carries robust regulatory and policy implications to mitigate systemic risk and safeguard investor interests, ensuring market stability and resilience. The provided insights offer a valuable understanding of investors’ behavior across various market scenarios.

Using hand-collected accounting data on 154 European banks, we investigate the impact of ESG scores on the value-relevance of the fair value hierarchy (FVH) of financial instruments held on their balance sheets. Our findings are multi-faceted. Banks that possess an ESG score are valued at a premium on book value and the presence of the ESG score is associated with lower (higher) value-relevance of the reported fair value of Level 1 (Level 2 and 3) items. The value relevance of Level 2 and 3 FVH levels, however, decreases in the ESG score. These findings imply that, while availability of ESG scores proxies for market visibility, stock market investors either do not treat the ESG score as a reliable measure of ESG performance or, embracing the “overinvestment view” rather than the “risk mitigation view” of Corporate Social Responsibility (CSR), do not associate positive ESG performance to greater corporate transparency and trustworthiness.