Article
Business, Finance
Chaeyoon Baek, Seungho Baek, Mina Glambosky
Summary: This study finds that small, low-credit quality, and financially distressed companies are more vulnerable to labor market changes, resulting in a deterioration in equity value.
FINANCE RESEARCH LETTERS
(2024)
Article
Business, Finance
Jin Boon Wong, Qin Zhang
Summary: This paper examines the financial implications of ESG reputational risks and finds that investors penalize firms with excessive cash holdings when these risks intensify. However, cash distributions can mitigate shareholders' antipathy towards excessive cash holdings.
FINANCE RESEARCH LETTERS
(2024)
Article
Business, Finance
Martijn A. Boermans, Bram van der Kroft
Summary: Credit rating-based capital regulation increases the systematic risk taken on by financial institutions. This paper reveals the interconnected channels through which this risk hoarding affects financial stability, showing that institutions reduce their capital buffers by hoarding bonds with high systematic credit risk and increasing portfolio concentration. Additionally, fire sales of bonds increase when the regulatory advantages of seeking systematic yield disappear. The study establishes a causal relationship between the severity of fire sales and the tendency for regulated institutions to seek bonds with high systematic credit risk, which leads to a 16% reduction in capital buffer during economic downturns.
JOURNAL OF BANKING & FINANCE
(2024)
Article
Business, Finance
Thanh Cong Nguyen, Vitor Castro, Justine Wood
Summary: This paper assesses the impact of different types of financial crises on social protection spending. The findings suggest that social protection spending increases when financial crises occur, particularly in the aftermath of banking crises. However, currency and debt crises have a detrimental effect on social protection spending, posing a threat to social wellbeing.
FINANCE RESEARCH LETTERS
(2024)
Article
Business, Finance
Grazia Onorato, Francesca Pampurini, Anna Grazia Quaranta
Summary: This study compares the efficiency levels of FinTech firms and traditional banks in the lending sector and finds that banks tend to be more efficient. The results are significant for both corporate and regulatory purposes.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Nicholas Garvin
Summary: This paper models emergency liquidity injection policies aimed at preventing bank failures caused by illiquidity. The study finds that to effectively address liquidity risk, governments need to formulate a range of policies, including requiring banks to collateralize emergency lending with illiquid securities, and setting penalty rates for such loans.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Ben Z. Schreiber
Summary: This study examines the influence of revenue diversification on profitability, capital, and credit risk in US banks, and finds significant differences between different sized banks in terms of the impact of diversification measures on these factors.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Benjamin Keddad, Jean Robert Obiang Obiang
Summary: This paper enriches the debate on the dual nature of microfinance and its pursuit of profitability over social objectives. Through analyzing the determinants of deposit volatility in Gabon, it finds that inflation affects deposit volatility in the short term, while the business cycle and governance have long-term impacts. These findings have important implications for poverty reduction in Gabon where microfinance can play a crucial role.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Cheng Zhang, Yuyao Zhu, Limin Zhang
Summary: As China transitions to high-quality development, digital inclusive finance has the potential to promote common prosperity. However, its effect on enhancing commonality is not significant. The breadth of coverage, depth of usage, and digitization level of digital inclusive finance contribute to promoting both common prosperity and affluence. In the eastern region of China, digital inclusive finance plays a better role in promoting common prosperity.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Hunghua Pan, Yi-Ping Liao, Chen-Chiao Yu
Summary: This study examines the role of busy compensation committee members in effectively monitoring executive compensation. The results show that the presence of busy members on the compensation committee is negatively related to excess executive compensation. However, this effect is weakened by low attendance rate and strengthened by long-term experience. The practical implication is that firms should consider recruiting busy members to control overpayment issues.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Tarek Bouazizi, Khaled Guesmi, Emilios Galariotis, Samuel A. Vigne
Summary: This study utilizes the ARMA(r, s)-Spline-GJR(p, q) model and PLS regression to analyze the impact of the Covid-19 pandemic on oil price volatility, revealing a correlation between the pandemic and other major crises. The findings provide valuable guidance for investors, hedgers, speculators, and governments in decision-making during crises.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Dror Parnes
Summary: The copper-to-gold ratio often contains short-term credible information about the 10-year U.S. Treasury yield, particularly in recent years and during periods of minimal economic shocks. However, false signals in this leading indicator are common, mainly during global macroeconomic turbulence.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Lidan Li, Jie Han, Shenwei Mo, Yupeng Yang
Summary: Through empirical analysis and mechanism analysis, this study finds that competition has a negative impact on private firms' polluting behavior. The effect is more pronounced when the focal firm faces more market competition or stronger environmental regulation, when it is larger or located closer to its peer IPO firm, or when its post-IPO performance is better. Mechanism analyses show that focal firms reduce pollution by increasing environmental investment and improving green research and development.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Ketan Reddy, Subash Sasidharan
Summary: This study uses large-scale panel data of Indian manufacturing firms at the firm-product level to examine the relationship between global value chain participation and firm performance. The findings indicate that firms participating in the global value chain experience a productivity premium and a decrease in markups, primarily due to rising costs associated with imported intermediate inputs.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Bader Jawid Alsubaiei, Giovanni Calice, Andrew Vivian
Summary: This paper investigates the impact of oil market volatility on mutual fund performance and the ability of fund managers to select stocks and time oil volatility. The study finds that oil market volatility significantly harms mutual fund performance and reduces managers' stock selection ability. However, the evidence on whether fund managers can improve performance by timing oil market volatility is mixed.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Muhammad Abubakr Naeem, Ioannis Chatziantoniou, David Gabauer, Sitara Karim
Summary: This study examines the contemporaneous transmission mechanism across the G20 stock market returns using a novel R2 connectedness framework. The findings show that this transmission mechanism is heterogeneous over time and dependent on economic events. The study also discusses measures of connectedness during different crisis periods and dynamic net total directional connectedness measures. The findings are important for investors and portfolio managers.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Qiongyu Huang, Ruiyao Zhang, Siyao Li, Jingjing Li, Qiong Yao
Summary: Using a sample of publicly-listed Chinese firms from 2008 to 2017, this study examines the impact of financial advisors' industry expertise on the quality of material asset reorganization M&As. The findings show that acquirers who engage financial advisors with industry expertise experience less inflated goodwill, fewer impairments, and better long-term operational performance, particularly in cross-region and complex M&A transactions with severe information asymmetry. The study also suggests that the positive effect of engaging financial advisors with industry expertise is more pronounced in M&As with poorer corporate governance, and is more significant in non-state-owned enterprises and deals involving multiple financial advisors.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Bowo Setiyono, U'um Munawaroh
Summary: This study investigates the bank lending behaviors during the Covid-19 period and examines the impact of related party lending on rural bank risk. The findings suggest a negative association between related party lending and rural bank risk, and the relationship is weakened by the Covid-19.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Akwasi A. Ampofo, Reza Barkhi
Summary: This paper examines the moderating effect of ethical corporate citizenship on the influence of CEO power on financial leverage, cost of debt, dividend payout, and firm value. The findings suggest that powerful CEOs in companies with ethical corporate citizenship tend to borrow more at cheaper rates, pay higher dividends, and their power is not linearly related to firm value.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Xiaoyuan Wan, Jiachen Zhang
Summary: This paper proposes an event-based approach to estimate COVID risk for individual stocks and examines its relation with future stock returns. The results show a positive relation between high COVID risk and future stock returns, indicating an initial overreaction to COVID shock.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
