Article
Business, Finance
Jiaxin Wang, Xue Yuan, Xiang Huang, Chengxin Liu, Pengdong Zhang
Summary: This research investigates the impact of digitalization on the completion probability of cross-border M&A. By analyzing a sample of Chinese firms listed on the A-share market between 2005 and 2021, it is found that firm digitization significantly promotes the completion of cross-border M&A. This finding remains consistent after conducting a series of robustness tests. Further analysis reveals that the promotion effect is more pronounced in samples with high finance constraints, technology-based M&A transactions, and short institutional distances. Additionally, evidence is provided to support that digitalization facilitates cross-border M&A by enhancing firms' innovation capabilities and reducing management myopia, shedding new light on the behavior of publicly traded corporations in international settings.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Hui Hong, Lijun Jiang, Cheng Zhang, Zhonggang Yue
Summary: This research specifies the difference in herding across China's conventional and new energy stock markets and finds that herding is stronger for new energy stocks. The study also reveals that during the COVID-19 pandemic, new energy stock investors tend to follow market consensus, while conventional energy stock investors are not influenced. Furthermore, information arrivals from the new energy market help weaken herding in the conventional energy market, highlighting the importance of information dissemination.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Coskun Tarkocin, Murat Donduran
Summary: This research utilizes supervised machine learning models to provide banks with early warnings of liquidity stress using market-based indicators, contributing to bank liquidity risk management. By analyzing publicly available data from 2007 to 2021, including the periods of the global financial crisis and the COVID-19 crisis, and conducting backtesting using COVID-19 crisis data, the study shows that the ensemble model with the RUSBoost algorithm can predict risky days more accurately, thus greatly contributing to bank risk management.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Carlos Esparcia, Tarek Fakhfakh, Francisco Jareno
Summary: This study empirically assesses the diversification benefits of different types of cryptocurrencies by including them in asset allocation strategies. The results show that traditional and green cryptocurrencies offer diversification opportunities for short-term investment horizons, while stablecoins can serve as safe haven assets for long-term investment horizons.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Jiexiang Huang, Helen Roberts, Eric K. M. Tan
Summary: This study examines the relationship between uncertain media tone and CEO risk-taking incentives, corporate investment, and financial policies. The findings suggest that CEOs who attract greater uncertain media tone are more inclined to take risks. The study also highlights the significance of uncertainty in executive decision-making.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Wei Yao, Constantinos Alexiou
Summary: This study investigates the transmission mechanism between speculative activity, inventory arbitrage activity, and commodity prices under the US quantitative easing (QE) policy. Using a TVP-VAR model, the study finds evidence that supports Frankel's model on the short-term transmission effect of inventory arbitrage activity and speculative activity on the real interest rate and commodities' real prices during the US QE policy period. Furthermore, it is found that speculative activity enhances the effect of the interest rate on commodities' prices in the current period, while the evidence regarding the relationship between inventory arbitrage activity and interest rate on commodities' prices is mixed.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Yanping Pu, Xueping Liang
Summary: This paper focuses on the relationship between fertility and population employment, and studies the influence of second-child birth behavior on residents' self-employment. The findings indicate that the second-child fertility rate has a significant positive impact on the self-employment rate. The results of PSM-DID regression show that residents' second-child birth behavior has a significant positive impact on residents' self-employment income. Therefore, second-child birth behavior will promote residents' self-employment.
FINANCE RESEARCH LETTERS
(2024)
Article
Business, Finance
Chao Xu, Guanglin Sun, Tao Kong
Summary: This study empirically examines the impact and mechanism of digital transformation on corporate green innovation in China. The results show that digital transformation has a significant and positive impact on corporate green innovation. The research also highlights that the mediation mechanism between corporate R&D investment and government green subsidies is significant, and digital transformation promotes green innovation by increasing these investments. Moreover, the impact of digital transformation on state-owned and large-scale corporations is greater. The findings indicate the importance of digital transformation for promoting sustainable development in China's economy.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Yongqiang Chu, Luca X. Lin, Zhanbing Xiao
Summary: Lenders' simultaneous equity holdings introduce conflicts of interest among syndicated loan members. Financial covenant design is used to address within-syndicate conflicts and improve contracting efficiency. Loans with higher conflicts rely less on performance-based covenants and more on capital-based covenants to align shareholder-creditor interest and incentivize shareholder monitoring. These conflicts can reduce capital flexibility and renegotiation efficiency for borrowers.
JOURNAL OF FINANCIAL INTERMEDIATION
(2024)
Article
Business, Finance
Tania Babina, Anastassia Fedyk, Alex He, James Hodson
Summary: This study examines the use and economic impact of AI technologies, measuring firm-level AI investments using employee resumes. The findings show a significant increase in AI investments across industries. Companies investing in AI experience higher growth in sales, employment, and market valuations, primarily driven by increased product innovation. The growth powered by AI is concentrated among larger firms and is associated with higher industry concentration.
JOURNAL OF FINANCIAL ECONOMICS
(2024)
Article
Business, Finance
Hiroyuki Kasahara, Yasuyuki Sawada, Michio Suzuki
Summary: This paper examines the consequences of government capital injections into financially distressed banks during the 1997 Japanese banking crisis. The results suggest that the injections primarily benefited high-productivity firms and struggling zombie firms, with the former experiencing positive labor and total factor productivity growth. However, there is no evidence of these injections promoting investments among firms.
JOURNAL OF BANKING & FINANCE
(2024)
Article
Business, Finance
Zhang-HangJian Chen, Wang-Long Wu, Sai-Ping Li, Kun Bao, Kees G. Koedijk
Summary: This research investigates the dynamic interplay between information diffusion on social media platforms and the co-movement of excess stock returns. The findings reveal that stocks with higher information diffusion exhibit swifter responsiveness to new information and demonstrate superior performance in hedging strategies.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Jianhui Ni, Jia Ruan
Summary: This study explores the impact of foreign monetary policy changes on systemic financial risk in China and finds significant time-varying characteristics in the contagion paths of financial risks and the spillover effects of external monetary policy risks through different channels. Asset price markets contribute the most to financial risk input pressure, while financial institutions and foreign exchange markets are the main senders of systemic risk.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Kai Yan, Ziyi Zhang, Lisi Yang, Yuqiang Cao, Yaowen Shan
Summary: The development of a national innovation system relies on the development of financial markets. This study explores the impact of financial innovation on green innovation within the national innovation system framework. The study finds that financial innovation increases firms' loan ratio, reduces the cost of debt, and improves corporate maturity match, thereby promoting green innovation.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Tahsin Imtiazul Huq, M. Kabir Hassan, Reza Houston, M. Sydul Karim
Summary: When foreign state-owned enterprises (SOEs) enter the US market by acquiring domestic targets, they increase competition and pressure domestic competitors. In response, competitors change their behavior. Political connections of domestic competitors play a significant role in the negative response to SOE acquisitions. US target firms benefit from resources obtained from SOEs, offering better and cheaper products and increasing market share. After SOE acquisitions, competitors' profitability and lobbying activity decrease, while efficiency increases.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Miklesh Prasad Yadav, Mohammad Zoynul Abedin, Neena Sinha, Vandana Arya
Summary: This study investigates the connection between Artificial intelligence stocks and agri-commodity stocks during COVID-19 and the Russia-Ukraine invasion. The results show that Microsoft is the highest receiver and contributor of shocks during COVID-19, while US rice and US corn are the least receiver and contributor of shocks.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Han Zhang, Yuan Li, Chenlei Xiao, Xiaoyan Wang
Summary: This study demonstrates that deregulating market access can significantly reduce the cost of corporate debt financing, mainly by reducing transaction costs. Additionally, the implementation of the pilot project has a significant effect on reducing debt financing costs for companies with low marketization degree of credit fund allocation or non-SOE firms.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Hu Wang
Summary: The study finds that better ESG performance of funds reduces their vulnerability. The impact of ESG performance on vulnerability is mediated through investor attention channel and fundamental channel. Lower network centrality, stronger liquidity timing ability, and the proposal of dual carbon goals enhance the negative impact of ESG performance on vulnerability.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Matthias X. Hanauer, Maarten Jansen, Laurens Swinkels, Weili Zhou
Summary: This study compares commonly employed asset pricing models in the Chinese A-shares market and finds that the q-factor model performs well when using factor models developed for the U.S. equity market. However, the ranking of asset pricing models changes when transaction costs are considered, resulting in a three-factor model comprising a market, size, and earnings-based value factor.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Marek A. Dabrowski, Monika Papiez, Slawomir Smiech
Summary: This paper examines the impact of exchange rate regimes on output volatility and finds that the exchange rate regime does not directly affect output volatility but modifies the importance of its determinants. Specifically, under a pegged regime, trade openness reduces output volatility while financial development has the opposite effect. Additionally, large economies experience lower output volatility regardless of the exchange rate regime, with floating rate regimes showing a more pronounced beneficial size effect.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
