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The real and financial effects of internal liquidity: Evidence from the Tax Cuts and Jobs Act J. Financ. Econ. (IF 10.4) Pub Date : 2025-02-08 James F. Albertus, Brent Glover, Oliver Levine
The Tax Cuts and Jobs Act unlocked as much as $1.7 trillion of U.S. multinationals’ foreign cash. We examine the real and financial response to this liquidity shock and find that firms did not increase capital expenditures, employment, R&D, or M&A, regardless of financial constraints. On the financial side, firms paid out only about one-third of the new liquidity to shareholders and retained half as
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An asymmetric volatility analysis of the negative oil price during the first COVID-19 wave International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-07 Carolin Birnstengel, Bernd Süssmuth
For the first time ever, oil futures were negatively priced on April 20, 2020. We modify an investment model to fit the financial markets context of information processing and arrival. It is able to explain a negative price dip. Its joint interpretation with estimates from GARCH models captures some central institutional setups of the market. We show not only storage uncertainty, in particular, due
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Upward Influencers in Teams Journal of Accounting Research (IF 4.9) Pub Date : 2025-02-07 Wei Cai, Yaxuan Chen, Jee‐Eun Shin
Upward influencers, employees who are more favorably perceived by their supervisors than their peers and subordinates, are predicted by economic and accounting theories and are found to be ubiquitous in many organizations. Despite their prevalence, the role of upward influencers in teams remains underexplored. This paper fills this void by using proprietary data from a service‐providing organization
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Auditors’ decision-making aid for going concern audit opinions through machine learning analysis Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-02-07 E.Jin Lee, Dave Tahmoush
Prior going concern studies often use regression techniques. Such techniques do not often examine the complex intertwined relationships between factors and therefore have limited value as a decision process aid. However, this study overcomes these limitations by employing a hierarchical machine learning method, a decision tree model, to discover potential interactions to create an understandable decision
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Assessing Firm ESG Performance Through Corporate Survival: The Moderating Role of Firm Size International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-05 Massimo Postiglione, Cristian Carini, Alberto Falini
This study explores the relationship between Corporate Survival (CS), measured through both an accounting-based model (Altman Z-Score) and a market-based model (Merton Distance to Default), and ESG performance, measured through Refinitiv ESG ratings. Based on an IQR-normalized sample of data from non-financial companies listed on the STOXX 600 European index, the study conducted a fixed-effects regression
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Uncertainty, macroeconomic activity and commodity price: A global analysis International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-04 Yifan Shen, Jia He, Xunpeng Shi, Ting Zeng
We adopt a rich global dataset to extend the conventional forecast-error-based uncertainty measure to the international context and construct a proxy of global macroeconomic uncertainty. Our proxy displays significant independent variations from popular regional or country-specific uncertainty measures, and can serve as an alternative to the global economic policy uncertainty (EPU) index among others
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The informational role of forex option volume International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-01 Kun Bao, Denghui Chen, Chen Gu, Erlina Papakroni, Raluca Stan, Muhan Wang
This paper investigates the effect of foreign exchange (FX) option trading volume on the underlying EUR/USD futures market. Our in-sample and out-of-sample tests show that the FX put-call volume ratio can predict future exchange rate changes. Greater put-call volume ratios predict a depreciation of the Euro relative to the US dollar. The predictability is prevalent in times of high uncertainty in the
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Optimal conversion ratio of contingent capital under issuance constraints International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-01 Sijia Zhang, Xin Xia, Liu Gan
We develop a model of banking to clarify how contingent convertible bonds (CoCos) affect banks’ financing and investment policies when they face the upper limit of CoCo issuance. We then discuss the optimal conversion ratio of CoCos. In contrast to the frictionless setting, banks with more dilutive terms optimally choose to delay investment and issue first larger and then smaller CoCos. For banks with
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Environmental tightening, labor slackening: Unveiling the inefficiencies in labor investment International Review of Financial Analysis (IF 7.5) Pub Date : 2025-02-01 Chien-Chiang Lee, Chih-Wei Wang, Weizheng Lin, Fang-Yi Lee
This paper investigates the impact of environmental policy stringency (EPS) on labor investment inefficiency using a dataset of firms from 37 countries. Our study contributes to the literature by addressing a gap in understanding how stringent environmental policies influence corporate labor decisions, particularly regarding inefficient labor investments. To deal with potential endogeneity, we employ
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How do timing and narrative tone influence the impact of pro-environmental orientation on crowdfunding performance? Finance Research Letters (IF 7.4) Pub Date : 2025-02-01 Ruichen Ge, Sha Zhang, Hong Zhao
Pro-environmentally oriented entrepreneurial projects on crowdfunding platforms have great potential for contributing to sustainable development. Previous research on the impact of pro-environmental orientation in crowdfunding has yielded mixed results, suggesting the existence of boundary conditions. This study examines how the timing and the narrative tone moderate this effect. Analyzing entrepreneurial
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Corporate short-termism and the use of performance-sensitive debt Finance Research Letters (IF 7.4) Pub Date : 2025-02-01 Zixia Miao, Yiping Huang, Yingyi Lv
We develop a dynamic agency model to investigate the impacts of performance-sensitive debt (PSD) on managers’ long-term and short-term efforts. Compared with straight debt, PSD reduces incentive costs and, in turn, increases long-term managerial effort. Moreover, PSD mitigates the excessive pursuit of short-term efforts when long-term and short-term efforts are substitutes, thereby alleviating short-termism
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Return Predictability, Expectations, and Investment: Experimental Evidence Rev. Financ. Stud. (IF 6.8) Pub Date : 2025-02-01 Marianne Andries, Milo Bianchi, Karen K Huynh, Sébastien Pouget
In an investment experiment, we show variations in information afect beliefs and decision-making within the information-beliefs-decisions chain. Subjects observe the time series of a risky asset and a signal that, in random rounds, helps predict returns. Subjects form extrapolative forecasts following a signal they perceive as useless, and their investment decisions underreact to their beliefs. If
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Website disclosure and financial performance: Evidence from U.S. hospitals using a textual analysis approach Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-02-01 Yangmei Wang, Tiankai Wang, Yuewu Li, Jiao Li
Although a website is widely available for a hospital to communicate with its stakeholders, the impact of hospital website disclosure has been under-investigated by prior studies. By employing textual analysis techniques to analyze the website content of U.S. hospitals, we explore the relationship between hospital website disclosure and financial performance. We find that a higher degree of hospital
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Financial Inclusion Across the United States J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-31 Motohiro Yogo, Andrew Whitten, Natalie Cox
We study retirement and bank account participation for the universe of U.S. households with a member aged 50 to 59 in the administrative tax data. ZCTA-level average income, income inequality, and racial composition predict retirement account participation for low-income households, conditional on household income and regional price parities. Income inequality also predicts bank account participation
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Feedback Effects and Systematic Risk Exposures J. Financ. (IF 7.6) Pub Date : 2025-01-31 SNEHAL BANERJEE, BRADYN BREON‐DRISH, KEVIN SMITH
We model the “feedback effect” of a firm's stock price on investment in projects exposed to a systematic risk factor, like climate risk. The stock price reflects information about both the project's cash flows and its discount rate. A cash‐flow‐maximizing manager treats discount rate fluctuations as “noise,” but a price‐maximizing manager interprets such variation as information about the project's
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Wealth and Insurance Choices: Evidence from U.S. Households J. Financ. (IF 7.6) Pub Date : 2025-01-31 MICHAEL J. GROPPER, CAMELIA M. KUHNEN
Using administrative data for 63,000 individuals across 2,500,000 person‐month observations, we find that wealthier individuals have better life insurance coverage, controlling for the value of the asset insured, namely, the consumption needs of dependents. This positive wealth‐insurance correlation, which is surprising given the prevailing view that wealth substitutes for insurance, persists after
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Regulatory Fragmentation J. Financ. (IF 7.6) Pub Date : 2025-01-31 JOSEPH KALMENOVITZ, MICHELLE LOWRY, EKATERINA VOLKOVA
Regulatory fragmentation occurs when multiple federal agencies oversee a single issue. Using the full text of the Federal Register, the government's official daily publication, we provide the first systematic evidence on the extent and costs of regulatory fragmentation. Fragmentation increases the firm's costs while lowering its productivity, profitability, and growth. Moreover, it deters entry into
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Crisis Interventions in Corporate Insolvency J. Financ. (IF 7.6) Pub Date : 2025-01-31 SAMUEL ANTILL, CHRISTOPHER CLAYTON
We model the optimal resolution of insolvent firms in general equilibrium. Collateral‐constrained banks lend to (i) solvent firms to finance investments and (ii) distressed firms to avoid liquidation. Liquidations create negative fire‐sale externalities. Liquidations also relieve bank balance–sheet congestion, enabling new firm loans that generate positive collateral externalities by lowering bank
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Conditional currency momentum portfolios International Review of Financial Analysis (IF 7.5) Pub Date : 2025-01-31 Yasuhiro Iwanaga, Ryuta Sakemoto
Currency momentum portfolios have not generated positive returns after the global financial crisis. We propose conditional currency momentum strategies that incorporate information about the average forward discount, the currency market volatility, and the return dispersion of currency portfolios. Our strategy goes long in the momentum portfolio only when the average forward discount is positive, the
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How do financial markets price political uncertainty? Evidence from the 2024 United States presidential election Finance Research Letters (IF 7.4) Pub Date : 2025-01-31 Matthew Flynn, Augustine Tarkom
This study examines the relationship between perceived election outcomes and financial markets by analyzing the unique case of a United States presidential candidate with direct corporate interests. Focusing on Donald Trump's media company (DJT) and his 2024 presidential election odds from betting markets, we document robust evidence of market interdependence across multiple empirical specifications
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ESG transition incentives with loan guarantees Finance Research Letters (IF 7.4) Pub Date : 2025-01-31 Wenyang Xu, Zhaojun Yang, Nanhui Zhu
This paper develops a model of ESG transition in a loan–guarantee framework. By incorporating tax subsidies with loan guarantees, the financial stress due to the transition is alleviated. We find that the ESG ongoing input makes the transition postponed such that ESG transition investment threshold first increases and then decreases with the tax subsidy rate. At a sufficiently low transition cost,
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Strategic arbitrage in segmented markets J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-30 Svetlana Bryzgalova, Anna Pavlova, Taisiya Sikorskaya
We propose a model in which arbitrageurs act strategically in markets with entry costs. In a repeated game, arbitrageurs choose to specialize in some markets, which leads to the highest combined profits. We present evidence consistent with our theory from the options market, in which suboptimally unexercised options create arbitrage opportunities for intermediaries. We use transaction-level data to
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Central Bank–Driven Mispricing J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-30 Loriana Pelizzon, Marti G. Subrahmanyam, Davide Tomio
We explore whether Quantitative Easing (QE) negatively affected the functioning of the treasury market. Focusing on the arbitrage between European sovereign bonds and their futures contracts, we show that the scarcity of treasuries created by QE led to a disconnect between the prices of identical assets. We identify three channels: reduced bond market liquidity, increased funding costs in the repo
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The enhanced gain effects of ESG's non-linearity on portfolios: An asset pricing tree model perspective International Review of Financial Analysis (IF 7.5) Pub Date : 2025-01-30 Puliang Du, Runsheng Gu, Ling Luo, Fei Xie, Chenyang Zhang
This study investigates the incremental benefits of ESG criteria on investment portfolio performance, with a particular focus on the non-linear attributes of ESG factors. Employing linear regression models, the research establishes that ESG factors contribute supplementary information to investment portfolios, thereby augmenting the models' explanatory power regarding returns. The integration of ESG
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Does financial openness mitigate carbon emissions? Evidence from a cross-country study Finance Research Letters (IF 7.4) Pub Date : 2025-01-29 Xiaobo Fang, Dahai Fu, Yushi Xian, Ying Zhang
This study empirically investigates the impact of financial openness on carbon emission intensities at the country-level. Utilizing a fixed effects model and a comprehensive dataset across more than 100 countries from 1971 to 2019, we find that financial openness significantly reduces carbon emission intensities. The results are robust to various sensitivity analyses and control for potential endogeneity
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Crypto Crashes: An examination of the Binance and FTX scandals and associated accounting challenges The British Accounting Review (IF 5.5) Pub Date : 2025-01-29 Milind Tiwari, You Zhou, Jamie Ferrill, Marcus Smith
This article offers a comprehensive analysis of the treatment of cryptocurrencies and cryptocurrency exchanges in accounting, emphasizing the challenges they present to traditional accounting and auditing practices within current regulatory frameworks. The cryptocurrency sector has experienced multiple disruptions in recent years. By analysing two case studies representing such disruptions – Binance
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Artificial intelligence auditability and auditor readiness for auditing artificial intelligence systems Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-29 Yueqi Li, Sanjay Goel
As the business community races to implement artificial intelligence (AI), there are several challenges that need to be addressed such as fairness and biases, transparency, denial of individual rights, and dilution of privacy. AI audits are expected to ensure that AI systems function lawfully, robustly, and follow ethical standards (e.g., fairness). While the auditability for financial audits and information
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Adaptive structural audit processes as shaped by emerging technologies Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-29 Navitha Singh Sewpersadh
This study investigates how audit firms integrate emerging technologies to transform traditional audit methodologies and enhance audit quality. Using a qualitative research approach, the findings highlight that centralized audit platforms streamline documentation, promote knowledge sharing, and facilitate more effective internal reviews. Advanced Data Analytics (ADAs) such as the General Ledger (GL)
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Optimal policy for behavioral financial crises J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-28 Paul Fontanier
Should policymakers adapt their macroprudential and monetary policies when the financial sector is vulnerable to belief-driven boom-bust cycles? I develop a model in which financial intermediaries are subject to collateral constraints, and that features a general class of deviations from rational expectations. I show that distinguishing between the drivers of behavioral biases matters for the precise
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Risk spillovers between the BRICS and the U.S. staple grain futures markets Finance Research Letters (IF 7.4) Pub Date : 2025-01-28 Ying-Hui Shao, Yan-Hong Yang, Wei-Xing Zhou
This study examines spillover effects in the BRICS staple grain futures markets and their linkages with the U.S. markets. Results show that contemporaneous spillovers dominate, while net spillovers are driven by lagged connectedness. Systemic risk is lower in intra-BRICS markets than in those including the U.S., highlighting the U.S. grain market’s significant influence. Brazilian and U.S. grains,
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Application of consumer search volume in auditing Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-28 Pei Li
The application of nonfinancial information in auditing has allowed external auditors to effectively analyze corporate financial performance and assess fraud risk. This study examines whether the consumer search volume can be employed as a source of nonfinancial information in external audits to improve the accuracy of accounting estimates and help detect fraud in the financial statements. The consumer
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Predicting U.S. bank failures and stress testing with machine learning algorithms Finance Research Letters (IF 7.4) Pub Date : 2025-01-27 Wendi Hu, Chujian Shao, Wenyu Zhang
This study applies multiple machine learning models to forecast the bankruptcy of U.S. financial institutions from the year 2001 to 2023 using data from the Federal Deposit Insurance Corporation. To incorporate time dynamics, this paper employs exponentially weighted moving averages, enhancing the models’ predictive accuracy. The results show that the Random Forest model achieves the highest overall
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The Financial Consequences of Pretrial Detention Rev. Financ. Stud. (IF 6.8) Pub Date : 2025-01-27 Pablo Slutzky, Sheng-Jun Xu
In the United States, a significant number of criminal defendants are held in pretrial detention and face substantial financial burdens. Matching individual-level criminal case records to household-level financial data, we exploit the quasi-random assignment of court commissioners to study how pretrial detention affects household solvency. We find that pretrial detention results in higher rates of
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The benefits of small business FinTech lending: Evidence from entrepreneurs’ consumption structure The British Accounting Review (IF 5.5) Pub Date : 2025-01-27 Yan Luo, Shu Tian, Ningyu Zhou
Utilizing data on 160,000 individually-owned micro and small enterprises (MSEs) and the consumption of their entrepreneurs from the Ant Group, the FinTech giant, we show that MSEs' usage of FinTech credit is followed by a significant reduction in their entrepreneurs' food consumption as a percentage of total consumption, which is driven by an increase in their non-food consumption. It confirms FinTech
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Examining blockchain's role in supply chain finance structure and governance International Review of Financial Analysis (IF 7.5) Pub Date : 2025-01-26 Sang Hoo Bae, Sara Saberi, Mahtab Kouhizadeh, Joseph Sarkis
Can innovative technologies address the challenge of information asymmetry that has long plagued the financial services industry? This study investigates a three-tier supply chain model, consisting of a core buyer firm, suppliers, and sub-suppliers. It explores the impact of blockchain-enabled financing (BF) on the supply chain finance's structure and governance. Utilizing a circular city model, this
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National risk preference, insurance development and exports-a study based on the world values survey International Review of Financial Analysis (IF 7.5) Pub Date : 2025-01-26 Xiaohui Zeng, Danna Xing, Qilin Zhan, Xiuzhen Mu
Based on the data from the World Values Survey and the World Integrated Trade Solution for 23 exporting countries (regions) from 1993 to 2021, this paper studies the impact of national risk preference on exports, and investigates the moderating effect of insurance development level on this impact. The results show that national risk preference has a significant positive effect on the exports of exporting
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Dynamic tail risk connectedness among green REITs, sustainability products, and fossil energy assets under external shocks Finance Research Letters (IF 7.4) Pub Date : 2025-01-26 Liya Hau, Yao Ge, Yongmin Zhang, Weineng Zhu
This study employed a hybrid AS-CAViaR-TVP-VAR connectedness model to analyse the tail risk interconnectedness among green REITs, sustainability products, and fossil energy assets. Using daily data on twelve assets from January 1, 2015, to January 12, 2024, we found that the tail risk connectedness between green REITs and other markets intensifies under external shocks. Notably, green REITs in the
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Designing Stress Scenarios J. Financ. (IF 7.6) Pub Date : 2025-01-25 CECILIA PARLATORE, THOMAS PHILIPPON
We study the optimal design of stress scenarios. A principal manages the unknown risk exposures of agents by asking them to report losses under hypothetical scenarios before taking remedial actions. We apply a Kalman filter to solve the learning problem, and we relate the optimal design to the risk environment, the principal's preferences, and available interventions. In a banking context, optimal
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Pension levels, social activities, and household consumption Finance Research Letters (IF 7.4) Pub Date : 2025-01-25 Bowen Qu
Using CHARLS2020 data, this paper conducts a comprehensive exploration of the deep-seated connections between pension levels, social engagement, and household spending. The findings indicate that elevated pension levels notably boost household consumption, with social activities serving as a crucial intermediary in this dynamic. Furthermore, the research uncovers diverse influences of gender, income
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A novel content-based approach to measuring monetary policy uncertainty using fine-tuned LLMs Finance Research Letters (IF 7.4) Pub Date : 2025-01-25 Arata Ito, Masahiro Sato, Rui Ota
Policy uncertainty is a potential source for reducing policy effectiveness. Existing studies have measured policy uncertainty by tracking the frequency of specific keywords in newspaper articles. However, this keyword-based approach fails to account for the context of articles and differentiate the types of uncertainty that such contexts indicate. This study introduces a new method for measuring different
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The Fed and the Secular Decline in Interest Rates Rev. Financ. Stud. (IF 6.8) Pub Date : 2025-01-25 Sebastian Hillenbrand
This paper documents a striking fact: a narrow window around Fed meetings captures the entire secular decline in U.S. Treasury yields. Yield movements outside this window are transitory and wash out over time. This is surprising because the forces behind the secular decline are thought to be independent of monetary policy. Long-term bond yields decline when the Fed cuts the short rate and when the
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How do women accounting and finance professors develop and leverage their capitals for career advancement? The British Accounting Review (IF 5.5) Pub Date : 2025-01-25 Meredith Tharapos, Brendan T. O'Connell, Nicola Beatson, Paul de Lange
This study examines women's career journeys to professorship in accounting and finance academia with a focus on the potential influence of various forms of capitals. Given the dearth of women at professorial level despite various institutional initiatives to reduce gender imbalances, it is critical that their careers be examined. We utilise the work of Bourdieu and studies on gender capital to interpret
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The volatility puzzle of the beta anomaly J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-24 Pedro Barroso, Andrew Detzel, Paulo Maio
This paper shows that leading theories of the beta anomaly fail to explain the anomaly’s conditional performance. Abnormal returns and Sharpe ratios of betting-against-beta (BAB) factors rise following months with below-median realized volatility, even controlling for mispricing, limits to arbitrage, lottery preferences, analyst disagreement, and sentiment. Moreover, the leverage constraints theory
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ESG: A panacea for market power? J. Financ. Econ. (IF 10.4) Pub Date : 2025-01-24 Philip Bond, Doron Levit
We study the equilibrium effects of the “S” dimension of ESG under imperfect competition. ESG policies are pledges made by firms that constrain managers to treat their stakeholders better than market conditions alone dictate. Moderate policies limit market power and prompt managers to be more competitive; aggressive polices backfire, both for adopting firms and intended beneficiaries. In contrast to
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Does the depth of digital trade rules promote bilateral value chain cooperation? International Review of Financial Analysis (IF 7.5) Pub Date : 2025-01-24 Mingkun Tang, Linshan Jiang, Yanbing Mao, Lei Cao
This study explores the impact of the depth of digital trade regulations on bilateral value chain (BVC) cooperation within the framework of regional trade agreements (RTAs) using the University of International Business and Economics global value chain database and the Trade Agreements Provisions on Electronic Commerce and Data database from 2001 to 2014. The number of digital trade provisions in RTAs
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Financing Infrastructure in the Shadow of Expropriation Rev. Financ. Stud. (IF 6.8) Pub Date : 2025-01-24 Viral V Acharya, Cecilia Parlatore, Suresh Sundaresan
We examine the optimal financing of infrastructure when governments can expropriate rents from private sector firms that manage infrastructure. While private firms need incentives to implement projects well, governments need incentives to limit expropriation. This double moral hazard limits the willingness of outside investors to fund infrastructure projects. Optimal financing contracts involve government
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A framework for dynamic blockchain-based data auditing Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-24 Zihao Liu, Huaping Wu
Accounting transactions and business data stored in blockchains are secure and resistant to tampering. Nonetheless, maintaining consistency between actual on– and off-chain data in blockchain auditing continues to be a significant challenge. We propose a dynamic validation model for blockchain data to address this challenge. Specifically, we adjusted the parameter selection rules in the traditional
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ISSUE INFORMATION J. Financ. (IF 7.6) Pub Date : 2025-01-23
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AMERICAN FINANCE ASSOCIATION J. Financ. (IF 7.6) Pub Date : 2025-01-23
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The Allocation of Socially Responsible Capital J. Financ. (IF 7.6) Pub Date : 2025-01-23 DANIEL GREEN, BENJAMIN N. ROTH
Portfolio allocation decisions increasingly incorporate social values. We develop a tractable framework to study how competition between investors to own socially valuable assets affects social welfare. Relative to the most common social‐investing strategies, we identify alternative strategies that result in higher impact and higher financial returns. We identify strategies for investors to have impact
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ESG incidents and M&A decisions Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Hongyu Cai, Qiyun Deng
We investigate how environmental, social, and governance (ESG) incidents influence mergers and acquisitions (M&A) decisions using a novel RepRisk dataset integrating ESG incidents with M&A transactions. Employing probit and Poirier bivariate probit models to address partial observability issues, we find that ESG incidents, especially environmental and social issues, significantly reduce merger success
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Cross-country gender bias and corporate cash holdings Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Jaroslav Horvath, Kyre Dane Lahtinen
We document a novel cross-country relationship between gender bias, as portrayed in a country’s folklore, and firms’ corporate cash holdings, while controlling for firm characteristics, country-specific macroeconomic attributes, governance factors, and cultural differences. We show that firms tend to hold significantly less cash in countries with a more pronounced Male Bias, defined as men being portrayed
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Risk evolution along the oil and gas industry chain: Insights from text mining analysis Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Shanshan Feng, Ke Ma, Gongpin Cheng
Focusing on five critical stages, this study uses text mining and topic modeling to analyze the evolving risks in the oil and gas industry chain (2019–2023). Findings highlight the COVID-19 pandemic and global energy transition as key drivers transforming localized risks into complex, multidimensional challenges. The phased risk analysis framework offers valuable insights for energy finance policymakers
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Unpacking the impact of the capital requirement regulation on non-performing loan dynamics in EU banks Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Inga Urbonaviciute
In the wake of the global financial crisis, an increasing trend in non-performing loans has led to significant risks to financial stability. The 2014 Capital Requirements Regulation was introduced to tackle systemic vulnerabilities in the banking sector by setting an 8% risk-weighted capital requirement. This study demonstrates that stricter capital regulation increases the costs of holding risky assets
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Impact of judgment readability on financial crimes Finance Research Letters (IF 7.4) Pub Date : 2025-01-23 Jalaj Pathak
Using NLP techniques, we extract the financial judgments from the overall set of supreme court judgments and find a one-unit increase in readability, implying harder-to-comprehend supreme court judgments, is significantly associated with a 2% increase in financial crimes for the next year. The results hold true for different categories of financial crimes and are robust to the other proxies for readability
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Using process mining as an assurance tool in the three-lines-model Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-23 Marc Eulerich, Qing Huang, Justin Pawlowski, Miklos A. Vasarhelyi
One broadly accepted approach to structure the corporate governance of an organization is the so called “Three-Lines-Model” (TLM), which consists of different assurance providers like internal controls, risk management or internal auditing. While previous studies in the field of process mining showed different specific use cases in different related areas of this TLM, like e.g. internal controls, there
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Impact of reporting information security breaches, accounting quality, and the opportunistic disclosure of good news and bad news Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2025-01-23 Mukesh Garg, Tawei Wang, Carla L. Wilkin
Given the growing number and impact of information security breaches, we investigate and find a significant association between information security breaches and the risk of a stock price crash. In particular, for some information security breach firms, we find evidence of good news disclosures, with such disclosures being negatively associated with the risk of a stock price crash. Our results indicate
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Do good and talk about it: The impact of investor relations quality on ESG ratings Finance Research Letters (IF 7.4) Pub Date : 2025-01-22 Lennart Bock, Toni W. Thun, Henning Zülch
This study provides robust evidence that higher investor relations (IR) quality goes in tandem with enhanced ESG ratings. Building on the extensive data from an established investor relations award in Germany, covering the largest listed firms between 2014 and 2022, we use both panel-data and two-stage least-squares regressions to analyze the effect of IR quality on ESG ratings. Our results hold true
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Issue Information ‐ TOC Journal of Accounting Research (IF 4.9) Pub Date : 2025-01-22
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