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The Effect of the Current Expected Credit Loss Model on Conditional Conservatism of Banks and Its Spillover Effect on Borrower Conservatism The Accounting Review (IF 4.4) Pub Date : 2024-07-29 Xinrong Qiang, Jing Wang
ABSTRACT Under the Current Expected Credit Loss (CECL) model, banks should fully recognize expected lifetime credit losses upon loan origination while gradually recognizing interest revenues. This timelier recognition of losses versus gains (i.e., conditional conservatism) makes banks more capital constrained. To mitigate this, banks may (1) offset timelier credit losses by lowering conservatism in
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Tax Policy and Abnormal Investment Behavior Rev. Financ. Stud. (IF 6.8) Pub Date : 2024-07-25 Qiping Xu, Eric Zwick
This paper studies tax-minimizing investment, whereby firms tilt capital purchases toward year-end to reduce taxes. We use this pattern to characterize how taxes affect investment behavior. We exploit variation in firm tax positions from administrative data to confirm that tax minimization causes spikes. Spikes increase when firms face financial constraints or higher option values of waiting. Cumulative
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Switching Costs and Market Power in Auditing: Evidence from a Structural Approach The Accounting Review (IF 4.4) Pub Date : 2024-07-25 Qiang Guo, Christopher Koch, Aiyong Zhu
ABSTRACT This study provides novel evidence on the magnitude of switching costs in auditing. Using a discrete choice approach, we infer switching costs from clients’ audit firm choices. The demand estimation reveals that switching costs are significant and vary by direction, with the highest costs associated with switching from non-Big 4 to Big 4 audit firms. Counterfactual analyses of forced switches
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The Mortgage‐Cash Premium Puzzle J. Financ. (IF 7.6) Pub Date : 2024-07-24 MICHAEL REHER, ROSSEN VALKANOV
All‐cash homebuyers account for one‐third of U.S. home purchases between 1980 and 2017. We use multiple data sets and research designs to robustly estimate that mortgaged buyers pay an 11% premium over all‐cash buyers to compensate home sellers for mortgage transaction frictions. A dynamic, representative‐seller model implies only a 3% premium, which would suggest an 8% puzzle. Accounting for heterogeneity
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Does Sovereign ESG Shape Corporate Cash Management in Emerging Markets? Finance Research Letters (IF 7.4) Pub Date : 2024-07-23 Abdullah A Aljughaiman, Thamir Al Barrak, Kaouther Chebbi
Environmental, social, and governance aspects are becoming increasingly crucial factors for investors decisions. This paper examines the effect of sovereign environmental, social, and governance (SESG) practices on the cash-holding decisions of firms in the Gulf Cooperation Council (GCC) region. Utilizing firm-level data from 2010 to 2022, we find that improved SESG standards lead firms to reduce their
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Excess goodwill and enterprise litigation risk Finance Research Letters (IF 7.4) Pub Date : 2024-07-23 Muyun Wang, Ying Zhang
Corporate mergers and acquisitions (M&A) are now a common strategic choice for enterprises. As such, goodwill, which is a core asset of M&A activities, is pivotal for financial valuation and accounting. However, the phenomenon of ‘excess goodwill’, resulting from overvaluation due to management overconfidence and performance promises, poses significant risks, including potential financial statement
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From Man vs. Machine to Man + Machine: The art and AI of stock analyses J. Financ. Econ. (IF 10.4) Pub Date : 2024-07-22 Sean Cao, Wei Jiang, Junbo Wang, Baozhong Yang
An AI analyst trained to digest corporate disclosures, industry trends, and macroeconomic indicators surpasses most analysts in stock return predictions. Nevertheless, humans win “Man vs. Machine” when institutional knowledge is crucial, e.g., involving intangible assets and financial distress. AI wins when information is transparent but voluminous. Humans provide significant incremental value in “Man
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Can the development of Fintech mitigate Non-Performing Loan risk? Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Yuanzhe Chai, Suchao Sun
This paper examines how commercial banks’ fintech development can mitigate non-performing loan (NPL) risk. This study adopted a two-fixed model and examined listed commercial banks from 2011 to 2022. Findings indicate that fintech development can mitigate NPL risk through pre-lending and post-loan cost reduction and revenue growth effects. This study contributes to theory and practice for advancing
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Is it a matter of governance or judicial favoritism? Legal expertise at an executive level and its use in cases of corporate financial fraud Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Yingzhi Nie, Yanhua Na, Peng Chen
This study examines how executives’ legal expertise affects corporate financial fraud and the mechanism behind this using data from A-listed companies between 2011 and 2021. Findings show a positive correlation between executives’ legal backgrounds and corporate financial fraud, which is mainly driven by external audit quality and corporate social responsibility. This finding provides evidence of how
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Digital transformation and the herd behavior of corporate investment Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Xiaoyun Li, Qianning Wang, Tong Wu, Qing Bian
Digital technology is a widespread integration of the benefits of digital transformation into all aspects of modern company operations. This paper examines how digital transformation affects firms’ investment herd behaviour. Based on listed firms from 2012 to 2022, this paper adopts a two-fixed model to explore the effects and underlying mechanisms. The findings indicate that digital transformation
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The Lower the Integrity, the Higher the Risk: How Does the Lack of Corporate Integrity Exacerbate Risk? Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Ying Chen, Fei Gao
Corporate integrity is not only a core element of its success but also plays a crucial role in the development of the corporation itself, consumers, investors, and society as a whole. This paper focuses on companies listed on the A-share market from 2017 to 2022, delving into the impact of corporate integrity on business risk. The findings indicate a significant negative correlation between corporate
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Guest Editorial: Sustainable and Socially Responsible Finance – University of Bologna, Forli Campus - 2022 Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Giovanni Cardillo, Andi Duqi, Salvatore Perdichizzi, Giuseppe Torluccio
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Energy market uncertainties and exchange rate volatility: A GARCH-MIDAS approach Finance Research Letters (IF 7.4) Pub Date : 2024-07-22 Afees A. Salisu, Ahamuefula E. Ogbonna, Rangan Gupta, Qiang Ji
In this paper, we employ the generalized autoregressive conditional heteroscedasticity-mixed data sampling (GARCH-MIDAS) framework to forecast the daily volatility of 19 dollar-based exchange rate returns based on monthly metrics of oil price uncertainty (OPU), and relatively broader global and country-specific energy market-related uncertainty indexes (EUI). We find that the global EUIs tend to perform
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Valuing Financial Data Rev. Financ. Stud. (IF 6.8) Pub Date : 2024-07-22 Maryam Farboodi, Dhruv Singal, Laura Veldkamp, Venky Venkateswaran
How should an investor value financial data? The answer is complicated because it depends on the characteristics of all investors. We develop a sufficient statistics approach that uses equilibrium asset return moments to summarize all relevant information about others’ characteristics. Our approach values public or private data, data about one or many assets, and data relevant for dividends or sentiment
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The ESG-efficient frontier under ESG rating uncertainty Finance Research Letters (IF 7.4) Pub Date : 2024-07-20 Messaoud Chibane, Mathieu Joubrel
The impact of ESG score uncertainty on the risk-return profile of socially responsible optimal portfolios is analyzed. Focusing on the 109 largest French company stock prices between 2021 and 2024, uncertainty about ESG score is measured through the lens of investors’ assessment rather than from ESG rating agencies. The efficient frontier is generalized by introducing the degree of investors’ social
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CEO-employee pay ratio and labor investment efficiency Finance Research Letters (IF 7.4) Pub Date : 2024-07-20 Yulin Li, Chee Seng Cheong, Jean Canil
This paper investigates the impact of CEO-to-median employee pay ratios on labor investment efficiency. Drawing on competing predictions from Talent Assignment Theory and Equity Theory, we examine how pay disparity between CEOs and average workers influences suboptimal investment in labor (). Our analysis finds a significant negative relationship between pay ratios and inefficient investment in labor
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Block trade contracting J. Financ. Econ. (IF 10.4) Pub Date : 2024-07-19 Markus Baldauf, Christoph Frei, Joshua Mollner
We study the optimal execution problem in a principal–agent setting. A client contracts to purchase from a dealer. The dealer hedges, buying from the market, creating temporary and permanent price impact. The client chooses a contract, which specifies payment as a function of market prices; hidden action precludes conditioning on the dealer’s hedging trades. We show the first-best benchmark is theoretically
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The impact of the 2008 Global Financial Crisis on the efficiency and profitability of the U.S. small banks Finance Research Letters (IF 7.4) Pub Date : 2024-07-19 Rasoul Rezvanian, Seyed Mehdian
This paper uses data from 732 U.S. small banks operating between 2001 and 2021 to examine the cost efficiency, profitability, and the association between cost efficiency and profitability pre-during and post-2008 Global Financial Crisis (2008 GFC). In step 1, using Data Envelopment Analysis (DEA), the cost efficiency of small U.S. banks is estimated. The results indicate that the overall efficiency
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Issue Information ‐ Standing Call for Proposals for Journal of Accounting Research (IF 4.9) Pub Date : 2024-07-19
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Issue Information ‐ Request for Papers Journal of Accounting Research (IF 4.9) Pub Date : 2024-07-19
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Very Noisy Option Prices and Inference Regarding the Volatility Risk Premium J. Financ. (IF 7.6) Pub Date : 2024-07-18 JEFFERSON DUARTE, CHRISTOPHER S. JONES, JUNBO L. WANG
The stylized fact that volatility is not priced in individual equity options does not withstand scrutiny. First, we show that the average return of heavily traded deep out‐of‐the‐money call options on stocks is −116 basis points per day. Second, Fama‐MacBeth estimates of the volatility risk premium in stock options are similar to those in S&P 500 Index call options. Third, the mean return of heavily
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On the Magnification of Small Biases in Hiring J. Financ. (IF 7.6) Pub Date : 2024-07-18 SHAUN WILLIAM DAVIES, EDWARD D. VAN WESEP, BRIAN WATERS
We analyze a setting in which a board must hire a chief executive officer (CEO) after exerting effort to learn about the quality of each candidate. Optimal effort is asymmetric, implying asymmetric likelihoods of each candidate being chosen. If the board has an infinitesimal bias in favor of one candidate, it allocates effort to maximize the likelihood of that candidate being chosen. Even when the
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Anomaly Time J. Financ. (IF 7.6) Pub Date : 2024-07-18 BOONE BOWLES, ADAM V. REED, MATTHEW C. RINGGENBERG, JACOB R. THORNOCK
We examine the timing of returns around the publication of anomaly trading signals. Using a database that captures when information is first publicly released, we show that anomaly returns are concentrated in the first month after information release dates, and these returns decay soon thereafter. We also show that the academic convention of forming portfolios in June underestimates predictability
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Predicting oil prices: A comparative analysis of machine learning and image recognition algorithms for trend prediction Finance Research Letters (IF 7.4) Pub Date : 2024-07-18 Ahmet Göncü, Tolga U. Kuzubaş, Burak Saltoğlu
This paper investigates the effectiveness of machine learning algorithms, including logistic regression, artificial neural networks, support vector machines, gradient boosting algorithms (XGBoost, ExtraTrees), random forests, and convolutional neural network (CNN) for trend prediction of daily spot oil prices across horizons of 1 to 8 days. We utilize a comprehensive set of features, including technical
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Treasury Richness J. Financ. (IF 7.6) Pub Date : 2024-07-17 MATTHIAS FLECKENSTEIN, FRANCIS A. LONGSTAFF
We provide estimates of Treasury convenience premia across the entire term structure of Treasury bills, notes, and bonds over more than a quarter of a century and document a variety of key stylized facts about their time‐series and cross‐sectional patterns. These results raise concerns about the evolving nature of Treasury markets and suggest that investors may now place less weight on the traditional
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Avoiding jumps in the rotation matrix of time-varying factor models Finance Research Letters (IF 7.4) Pub Date : 2024-07-17 Ying Lun Cheung
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Do investors in dirty and clean cryptocurrencies care about energy efficiency in the same way? Finance Research Letters (IF 7.4) Pub Date : 2024-07-16 Barbara Będowska-Sójka, Agata Kliber
This paper examines the environmental awareness of cryptocurrency investors. We study cryptocurrencies of different consensus protocols, categorised as clean and dirty. Within the non-linear autoregressive distributed lag model (NARDL), we verify whether short- or long-run dependency exists between cryptos’ prices or volatility and the Index of Cryptocurrency Environmental Attention, ICEA. We find
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Strategic Disclosure Incentives in a Multisegment Firm The Accounting Review (IF 4.4) Pub Date : 2024-07-16 Tyler Atanasov
ABSTRACT This paper presents a unifying model of disclosure in the presence of competitors and supply market reliance to examine the role of multisegment operations on disclosure choice. A firm’s private information can have varying demand implications for its own portfolio of segments and for its competitors’ portfolios of segments. In multisegment firms, cross-firm spillovers of information discourage
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Under the Hood of Activist Fraud Campaigns: Private Information Quality, Disclosure Incentives, and Stock Lending Dynamics The Accounting Review (IF 4.4) Pub Date : 2024-07-16 Byung Hyun Ahn, Robert M. Bushman, Panos N. Patatoukas
ABSTRACT Although activist short sellers can play a crucial role in fraud detection, they have come under scrutiny following accusations of systematically disseminating false negative information. We develop a framework delineating the roles of campaign-specific private information quality and short-selling dynamics in shaping disclosure incentives. We predict that the act of disclosure combined with
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Multinational corporations and share pledging of the controlling shareholder International Review of Financial Analysis (IF 7.5) Pub Date : 2024-07-15 Chufu Wen, Fenghua Wen, Diyue Lin, Lili Zhao
We identify the difference in share pledging of the controlling shareholders between multinational corporations (MNCs) and domestic corporations (DCs). Specifically, we find that the controlling shareholders' share pledge rate of MNCs are significantly lower compared with that of DCs. Moreover, we draw the conclusion that the alleviation of financial constraints prompts controlling shareholders in
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Contagious corporate reputation risk: Uncovering the pandemic's impact Finance Research Letters (IF 7.4) Pub Date : 2024-07-15 Zhen Xi, Yawen Xia, Rubi Yang, Ran Hu, Jing Zhao
Firms' Reputation Risk Index () co-move with their industry and local peers in the US market, suggesting that managers follow their industry and local peers to conduct ESG-related irresponsible activities. Moreover, the co-movement with local peers is attenuated during the COVID-19 pandemic period, and the reduction is more significant in democratic states with stringent social distancing policies
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Do heuristics matter for financial literacy? The impact of better heuristics awareness to financial literacy Finance Research Letters (IF 7.4) Pub Date : 2024-07-15 Francisco Pitthan, Kristof De Witte
Policymakers are increasingly focused on improving citizens’ financial well-being through better financial literacy. Traditional strategies emphasize financial education to boost financial knowledge, while recently behavioural-based education focus on issues like behavioural biases and emotional influences. This paper suggests a randomized controlled-study to assess if financial education including
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The equity market response to climate change litigation Finance Research Letters (IF 7.4) Pub Date : 2024-07-15 Zhenshu Wu, Rui Zhong
We document a significant decline in defendants' stock prices after the filing of litigation cases on climate change issues in the US. Economically, we document a 0.5% decline on the filing day and a 2.7% cumulative abnormal decline in the eight days following the filing. Cross-sectional analysis shows that the negative response is more pronounced in firms with greater external financial constraints
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Time-frequency tail risk spillover between ESG climate and high-carbon assets: The role of economic policy uncertainty and financial Stress Finance Research Letters (IF 7.4) Pub Date : 2024-07-15 Zishan Huang, Huiming Zhu, Xi Deng, Tian Zeng
This study proposes the multiscale R decomposed connectedness approach to investigate the time-frequency contemporaneous and lagged risk spillover between ESG climate and high-carbon assets. We further track the time-varying predictive power of economic policy uncertainty (EPU) and financial stress (FSI) for risk contagion. In the risk connectedness between ESG and high-carbon assets, contemporaneous
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Digital transformation and high-quality development of sports-listed companies: An analysis of vocabulary from annual report texts Finance Research Letters (IF 7.4) Pub Date : 2024-07-15 Li Chao, Qin Hongdi, Chen Yijie
This paper selects sports-listed companies from 2013 to 2022 as the sample and employs text analysis methods to test the impact of digital transformation on the high-quality development of the sports industry. The study finds that digital transformation significantly improves high-quality development by improving the firm's market position and innovation level. These findings contribute to the promotion
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Technological Progress and Rent Seeking Rev. Financ. Stud. (IF 6.8) Pub Date : 2024-07-15 Vincent Glode, Guillermo Ordoñez
We model firms’ allocation of resources across surplus-creating (ie, productive) and surplus-appropriating (ie, rent-seeking) activities. Our model predicts that industry-wide technological advancements, such as recent progress in data collection and processing, induce a disproportionate and socially inefficient reallocation of resources toward surplus-appropriating activities. As technology improves
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Audit committee member busyness and risk factor disclosure The British Accounting Review (IF 5.5) Pub Date : 2024-07-15 Cristina Bailey, Joshua J. Filzen
Audit committees in the U.S. oversee risk management within organizations, including oversight of the disclosure of risk factors in periodic filings. Because audit committees have become increasingly over-burdened, we examine the impact of the busyness of audit committee members, measured via members’ service on other boards, on risk factor disclosures. We find firms with busy members issue disclosures
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Artificial intelligence co-piloted auditing Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2024-07-15 Hanchi Gu, Marco Schreyer, Kevin Moffitt, Miklos Vasarhelyi
This paper proposes the concept of artificial intelligence co-piloted auditing, emphasizing the collaborative potential of auditors and foundation models in the auditing domain. The paper discusses the future relationship and interactions of human auditors and AI, imagining an audit setup where auditors’ capabilities are enhanced through artificial intelligence across a variety of audit tasks. To exemplify
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Opacity and frequency dependence of beta Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Sana Ejaz, Vladimir Volkov
This paper examines the relationship between opacity and frequency dependence of systematic risk (), estimated over different horizons using Wavelet Transform, for small and large firms. The findings provide evidence for the frequency-specific nature of opacity and suggest that while opacity is positively related to the frequency dependence of beta for large firms at all frequencies, for small firms
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Risk exposure in ESG-driven portfolios: A wavelet study within the tail-concerned insurance sector Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Francisco Jareño, Carlos Esparcia, Giulia Fantini
This paper employs wavelet analysis methodology to examine the pairwise time-frequency connectedness and lead-lag relationships between ESG rating changes and insurance equity portfolios' risk exposure. Focusing on the influence of ESG rating changes rather than absolute levels, it contributes to existing research, shedding light on the nuanced dynamics within the insurance sector. The findings underscore
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How does a small firm end up with a more expensive loan guarantee when a cheaper and safer one was on offer? The intriguing case of two UK Covid-19 guarantee schemes Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Marc Cowling, Nick Wilson, Weixi Liu
Most countries introduced loan guarantee schemes in the Covid-19 pandemic, and the UK offered two schemes. The BBL scheme had a cap of £50,000, a 100 % guarantee, and a fixed interest rate of 2.5 %. The CBILS scheme had a cap of £5 m, an 80 % guarantee and lenders set interest rates. We exploit a behavioural anomaly that led to 9,989 firms taking a CBILS loan for a cash amount below the BBL loan cap
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Volatility or higher moments: Which is more important in return density forecasts of stochastic volatility model? Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Chenxing Li, Zehua Zhang, Ran Zhao
Extensions of the stochastic volatility (SV) model focus on improving volatility inference or modeling higher moments of the return distribution. This study investigates which extension can better improve return density forecasts. By examining various specifications with S&P 500 daily returns for nearly 20 years, we find that a more accurate capture of volatility dynamics with realized volatility and
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Digital finance, life cycle, and enterprise mergers and acquisitions Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Zhen Peng, Fan Bai, Feng Zhao
This study examine the relationship between digital finance and enterprise mergers and acquisitions. The study finds that: (1) Digital finance can significantly increase the probability of enterprise mergers and acquisitions; (2) The impact of digital finance on mergers and acquisitions varies across different enterprise life cycle stages, specifically in the growth and maturity stages, where the positive
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Low-carbon city pilot, external governance, and green innovation Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Lei Shi, Yanping Wang, Lei Jing
This study examines the impact of low-carbon city pilot policies on green innovation of enterprises. We find that: (1) The low-carbon city pilot policy significantly promotes green innovation in enterprises, while improving the quantity and quality of green innovation in enterprises. (2) R&D investment plays a mediating role in the relationship between the low-carbon city pilot policy and green innovation
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Does digitalization improve supply chain efficiency? Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Zhipeng Yu, Xiaonan Cao, Lu Tang, Taihua Yan, Zeyu Wang
Enhancing supply chain efficiency (SCE) is crucial for establishing a modern supply chain system. This study determines that (I) supply chain digitalization (SCD) has a significant positive impact on enhancing SCE; (II) SCD reduces information asymmetry between enterprises, driving all entities within the chain toward digital transformation, which improves overall SCE; and (III) state-owned enterprises
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Influence of enterprise innovation on auditor behavior Finance Research Letters (IF 7.4) Pub Date : 2024-07-14 Chunyu Xing, Xiaorui Li, Hang Meng
Enterprise innovation is accompanied by many uncertainties. This article studies the influence of enterprise innovation on auditor behaviors (e.g., fees, opinions, and quality). The results show that auditors tend to charge higher fees with increased enterprise innovation, but they are not inclined to issue non-standard opinions. Indeed, auditors will improve quality to cope with innovation, leading
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The use of machine learning algorithms to predict financial statement fraud The British Accounting Review (IF 5.5) Pub Date : 2024-07-14 Mark Lokanan, Satish Sharma
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Can higher federal funds rates control mortgage lending during periods of high inflation and high house prices? Finance Research Letters (IF 7.4) Pub Date : 2024-07-13 Mohammad Saiful Islam, Jascha-Alexander Koch
The U.S. is facing higher inflation since December 2020 along with higher house prices. After a sharp increase, house prices have started to decline very recently even more drastically – reminding us of the global financial crisis 2007–08. Rather late, from December 2021 onwards, the Fed started to increase the Fed funds rate. However, it is unclear whether the Fed funds rate can control bank lending
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Human Capital Portability and Careers in Finance Rev. Financ. Stud. (IF 6.8) Pub Date : 2024-07-13 Janet Gao, Wenyu Wang, Yufeng Wu
How does firm-specific human capital shape careers in the finance industry? We build a dynamic model where workers accumulate portable and nonportable (firm-specific) human capital and learn about their match quality with employers. Estimating the model using granular data on M&A advisory bankers, we show that a large fraction of bankers’ human capital is nonportable, ranging from 12% to 46% across
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Just Friends? Managers’ Connections to Judges Journal of Accounting Research (IF 4.9) Pub Date : 2024-07-13 STERLING HUANG, SUGATA ROYCHOWDHURY, EWA SLETTEN, YANPING XU
We study the impact of social connections between judges and executives on the outcomes of Securities Class Action Litigation (SCAL). Judges who are socially connected to a firm's executives are significantly more likely to dismiss lawsuits against the firm. There is also evidence of faster resolution and lower payout amounts in connected cases. The favorable outcomes cannot be explained by the lower
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Fair value estimates for illiquid cryptocurrency Int. J. Account. Inf. Syst. (IF 4.1) Pub Date : 2024-07-13 Guangyue Zhang, Alexander Sannella, Gerard Brennan, Muhammad Talha Afzal
To address the need for reporting and disclosure of cryptocurrency holdings in compliance with the FASB guidance for the use of fair value measurements for cryptocurrency (FASB, 2023), this paper develops a modeling process for reporting entities to measure the market value of cryptocurrencies with limited or no observable transactions. In this valuation model, we consider the last observable market
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Unobserved Performance of Hedge Funds J. Financ. (IF 7.6) Pub Date : 2024-07-11 VIKAS AGARWAL, STEFAN RUENZI, FLORIAN WEIGERT
We investigate hedge fund firms’ unobserved performance (UP), measured as the risk‐adjusted return difference between a firm's reported gross return and its portfolio return inferred from its disclosed long‐equity holdings. Firms with high UP outperform those with low UP by 6.36% per annum on a risk‐adjusted basis. UP is negatively associated with a firm's trading costs and positively associated with
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Market-based debt-to-equity conversion and corporate green innovation Finance Research Letters (IF 7.4) Pub Date : 2024-07-11 Xin Gu
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Party organizations’ participation in board governance and corporate supply chain stability Finance Research Letters (IF 7.4) Pub Date : 2024-07-11 Tianbo Wang, Tong Zou, Liang Zhao
This study undertakes an empirical investigation into the impact of party organization engagement in board governance on the stability of corporate supply chains. The findings reveal the existence of an inverted U-shaped correlation between party organization involvement in governance and supply chain stability. Similarly, an inverted U-shaped relationship is observed between the party organization's
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Corporate financialization and litigation risk Finance Research Letters (IF 7.4) Pub Date : 2024-07-11 Yang Li, Xiaorong Lin, Xingfan Lei, Ji Ge, Jingyi Guo, Wenxin Xia
This study empirically analyses the impact of corporate financialization on litigation risk and finds that there is a U-shaped relationship between corporate financialization and litigation risk, whereby an increase in the level of financialization reduces litigation risk before a firm's level of financialization reaches the optimal level, and an increase in the level of financialization exacerbates
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The role of biodiversity risk in stock price crashes Finance Research Letters (IF 7.4) Pub Date : 2024-07-11 Chao Liang, Jinyu Yang, Lihua Shen, Dayong Dong
This study examines whether and how firms’ biodiversity risk exposure affects future stock price crash risk. By analyzing data from US listed companies, we find a significant and positive association between biodiversity risk exposure and future crash risk. The additional analysis indicates that the biodiversity-related transition risks caused by regulations still significantly increase future crash
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The Decision Relevance of Loan Fair Values for Depositors Journal of Accounting Research (IF 4.9) Pub Date : 2024-07-11 QI CHEN, RAHUL VASHISHTHA, SHUYAN WANG
Using a large sample of U.S. commercial banks from 1994 to 2019, we find that loan fair values are highly relevant for depositor decision making. A one‐standard‐deviation decrease in loan fair value performance is associated with more than 10% lower uninsured deposit flows than the sample average. Information in fair values about loan credit quality is quite limited and cannot account for the bulk