Search Results (68)

Recent theoretical and empirical studies highlight that information asymmetry and owner–manager conflict of interest can distort corporate investment decisions. Building on this premise, we hypothesize that superior environmental, social, and governance (ESG) performance mitigates these frictions by (H1) alleviating financing constraints and (H2) intensifying external analyst scrutiny. To test these hypotheses, we examine all Shanghai and Shenzhen A-share non-financial firms from 2009 to 2023. Using panel fixed-effects and two-stage least squares with an industry–province–year instrument, we find that higher ESG performance significantly reduces investment inefficiency; the effect operates through both lower financing constraints and greater analyst coverage. Heterogeneity analyses reveal that the improvement is pronounced in small non-state-owned, non-high-carbon firms but absent in large state-owned high-carbon emitters. These findings enrich the literature on ESG and corporate performance and offer actionable insights for regulators and investors seeking high-quality development. Full article

This study investigates the relationship between overconfidence and meme stock valuation, drawing on panel data from 28 meme stocks listed from 2019 to 2024. The analysis incorporates key financial indicators, including Tobin’s Q ratio, market capitalization, return on assets, leverage, and volatility. A range of overconfidence proxies is employed, including changes in trading volume, turnover rate, changes in outstanding shares, and alternative measures of excessive trading. We observe a significant positive relationship between overconfidence (as measured by changes in trading volume) and firm valuation, suggesting that investor biases contribute to notable pricing distortions. Leverage has a significant negative relationship with firm valuation. In contrast, market capitalization has a significant positive relationship with firm valuation, implying that meme stock investors respond to both speculative sentiment and traditional firm fundamentals. Robustness checks using alternative proxies reveal that turnover rate and changes in the number of shares are negatively related to valuation. This shows the complex dynamics of meme stocks, where psychological factors intersect with firm-specific indicators. However, results from a dynamic panel model estimated using the Dynamic System Generalized Method of Moments (GMM) show that the turnover rate has a significantly positive relationship with firm valuation. These results offer valuable insights into the pricing behavior of meme stocks, revealing how investor sentiment impacts periodic valuation adjustments in speculative markets. Full article

Financial support for agriculture has mainly focused on grain production, while insufficient efforts have been made to ensure water security, potentially intensifying water pressure in grain production (WPGP). This study applies the entropy weight Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method to measure WPGP from the perspective of sustainable agricultural water use, investigating the impact of agricultural fiscal expenditure on WPGP. Our findings reveal several key points. First, there is a clear linkage between the spatial and temporal patterns of fiscal support and WPGP. Projections indicate that water pressure for grain production in China will continue to rise from 2019 to 2030, with the fastest increases in the Northeast and Huang-Huai-Hai regions, at 20.53% and 13.39%, respectively. Second, agricultural fiscal expenditure distorts the allocation of grain production factors, causing cultivation areas to expand beyond local water resource capacity and, thus, exacerbating WPGP. This effect exhibits a time lag due to the gradual nature of factor allocation. Further analysis shows that in non-major grain-producing regions, lower production efficiency and higher opportunity costs of factor use weaken the impact of fiscal expenditure on WPGP compared to major grain-producing regions. Third, in regions with advanced technical conditions for grain production, the negative impact of agricultural fiscal expenditure on WPGP is mitigated by higher irrigation technology levels, improved water allocation efficiency, and lower water demand per unit of grain. Fourth, the public good characteristics of water resources and water conservancy facilities—namely, strong externalities and non-exclusivity—along with the agronomic demonstration effect, lead to a spatial spillover effect of agricultural fiscal expenditure on WPGP. Full article

Developing countries face a disproportionate degree of threat from climate change. As such, they require and receive significant financial support to address the menace. However, little is known about the potential externalities of this form of external liquidity for the business sector. This paper evaluates the impact of climate finance on the ease of doing business (EODB). On the one hand, climate finance might lead to an improved business environment as the funds facilitate infrastructure provision, technological innovation, and international collaboration for recipient countries. On the other hand, however, the business environment might be negatively impacted by complex new regulations, disruptive technological transitions, market distortions, and resource diversions. Countries receiving climate funds may also introduce new environmental and business regulations, implement new technologies, and divert resources to new programs to justify the receipt of aid or demonstrate a commitment to balancing economic development with environmental objectives. We theorize that given the expected disruptions to business, climate finance should negatively impact the EODB. We also argue that this negative impact will be more severe for resource-rich countries than for their resource-poor peers. Countries rich in natural resources might experience higher disruptions to business operations as they attempt to balance resource-dependent economic operations with environmental objectives mandated by climate finance. Utilizing panel data for 86 recipient countries for the 2002–2021 period, we test our hypotheses using the Generalized Methods of Moments (GMM) technique. The baseline results suggest that climate finance has a weak positive impact on the EODB. However, as argued, resource-dependence heterogeneity analysis reveals that climate finance significantly negatively disrupts the EODB in resource-rich countries. Furthermore, a sectoral comparative analysis shows that while climate finance has a significant positive impact on the growth of the service sector, it significantly slows the growth of the resource sector, affirming the argument that climate finance might attract higher disruptions to resource-dependent business operations. By implication, lowly diversified economies might realize more negative than positive effects of climate finance, and investors should consider providing support to ease the pains of transitioning from resource-intensive growth to clean energy-driven development strategies. Full article

This paper examines the financial health risks that private sector water, sanitation, and hygiene (WASH) businesses in rural Vietnam face. It investigates the challenges faced by water operators and sanitation suppliers involved in donor-funded development projects aimed at supporting poor and vulnerable households. Through surveys and focus group discussions with 15 suppliers who worked in public–private partnerships, this research examines the financial risk factors affecting water and sanitation suppliers and their impact on financial viability through two case studies. For water operators, the risks primarily involve infrastructure management, operational costs, and revenue instability. In the sanitation sector, risks center around fluctuating material prices, limited business expansion capital, and household affordability. This study highlights the dual role of government and donor subsidies, which enhance service accessibility but potentially distort market dynamics. It also underscores the need for targeted financial and policy interventions, including better access to microfinance, regulatory improvements, and human resource development. The findings aim to inform strategies for government, donors, and private sector actors in similar WASH development contexts to enhance financial sustainability, ensuring inclusive WASH services in underserved areas. This paper contributes to policy discussions by proposing mechanisms to balance public–private collaboration while fostering market resilience and equitable access to WASH services in emerging economies similar to that of Vietnam. Full article

This study comparatively examines the determinants of yield spreads for Sukuk and conventional bonds, with a particular focus on the role of firms’ environmental, social, and governance (ESG) performance. Using a dataset comprising 744 bond-year observations from issuers in countries with prominent dual financial systems—namely, Saudi Arabia, UAE, Turkey, Malaysia, and Indonesia—over the period 2008 to 2022, this analysis identifies distinct mechanisms that influence yield spreads in these asset classes. For robustness, the sample excludes financial institutions to prevent industry-weight distortion and to account for their distinct risk–return profiles, which require differentiated valuation approaches for conventional bonds and Sukuk. Drawing primarily on decoupling, information asymmetry, and legitimacy theories, our empirical results reveal that robust ESG performance is significantly associated with lower yield spreads for both Sukuk and conventional bonds. Moreover, the study explores the moderating effect of investment horizons on the ESG–yield spreads relationship, uncovering evidence of differentiated investor behavior in relation to yield curve positioning. These findings, robust across various regression specifications, underscores the pivotal role of ESG factors as firm-level drivers of financing costs, offering new insights for scholars, policymakers, and practitioners in the sustainable finance domain. Full article

Firms frequently face a tradeoff between the advantages of upholding sustainability and ESG performance and the expenses associated with participating in ESG initiatives. This tension leads to an increase in greenwashing practices, which ultimately undermines genuine sustainability efforts and misleads stakeholders. Motivated by this trend, our study examines the influence of a macro-level factor, specifically local city-level governments’ GDP manipulation, on the extent of firms’ greenwashing, highlighting how government behavior can distort sustainable business practices. Using the data of the publicly traded Chinese manufacturing companies during the period of 2007–2019, we find a positive and significant relationship between the extent to which firms engage in greenwashing and the extent of local city-level governments’ GDP manipulation. Additional analysis reveals that firms’ financial constraints and external monitoring are the channels through which governments influence firms’ greenwashing. In addition, the finding of a positive association between firm greenwashing and government GDP manipulation is more pronounced in regions with a less developed marketization index, in periods before China’s anti-corruption campaign, in state-owned firms, and in firms at the business life cycle of the mature stage. Our study addresses a gap in the literature by demonstrating how government economic interventions influence firms’ sustainability performance. Full article

Road freight transport is the key driver of the European economy and society; thus, distortion of its operation would have negative influence on growth and well-being. For that reason, implementation of European policies, including transport decarbonization, should be comprehensively evaluated from an environmental, social and economic perspective. In that case, introduction of electric trucks will create a mutual impact on the market and on haulage companies. The main research problem is to assess the future impact of decarbonization on the international road freight transport market structure on the supply side and the competitiveness of companies operating there. Today, a number of small and medium companies, to a great extent from Eastern Europe, render transportation services, creating a competitive structure with high flexibility, accessibility and low prices. Shifting towards electric trucks, with significantly higher upfront costs, will redefine the market structure, eliminating the small carriers and activating horizontal integration. The key objective of this research is to identify the main factors and challenges related to electric truck implementation and define crucial areas of its impact on future market structure. The research shows that the improvement of environmental performance requires low- or zero-emission trucks, where the battery technology is a leading solution. Thus, fleet renewal needs additional financial support from the public side. Different measures are available in European countries, so the level of support is not equal from a competitiveness perspective. Battery truck selling, as well as sustainable strategies, refer mostly to huge transport companies. On the other hand, the case of Polish truckers shows that the economic viability of SMEs is poor; thus, the introduction of BET would be beyond its reach. The research findings could be treated as recommendations for market regulators (EC), where the tempo of implementation, as well as availability of public support programs, should be rethinking. As a result, the costs of the transition will be covered by citizens, as customers, in the prices of products and transport service, or as taxpayers, in public support programs, mainly consumed by large market stakeholders. Full article

Background/Objectives: Our background comprises the previously identified consequences of bipolar disorder’s chronicity, which significantly affects not only the patients but also their caregivers, leading to challenges in caregivers’ physical, emotional, and financial well-being. This impact on caregivers’ quality of life (QOL) is often overlooked in the context of patient-centered care for bipolar disorder. Our objective was to explore how patient-centered care in bipolar disorder management affects caregivers, with a focus on improving both patient and caregiver outcomes. Methods: We performed a thematic qualitative synthesis of reviewed literature and case studies to explore the intersection of patient-centered care in bipolar disorder management and its impact on caregivers. This comprehensive review allowed us to identify key behavioral patterns and emotional fluctuations in patients that significantly affect caregiver well-being, with a focus on the challenges caregivers face due to the unpredictability of mood episodes and the lack of adequate support in current care models. Results: In the results, we identified that while patient-centered care enhances patient outcomes, it also exacerbates the strain on caregivers if their needs are not adequately addressed. Specific behavioral pathways and emotional fluctuations in bipolar disorder impact caregivers, such as the unpredictability of mood episodes, cognitive distortions during manic and depressive phases, and the emotional toll of managing crises. This article also emphasizes the role of patient-centered care, which places the patient at the core of treatment decisions, but often neglects the strain placed on caregivers. Conclusions: We conclude that a holistic approach to care, which includes caregiver support and resources, is essential for improving the QOL of both patients and caregivers. Future research is needed to develop strategies and interventions that better support caregivers and enhance their overall well-being, ensuring that patient care models are truly comprehensive. Full article

Digital finance can reduce the urban–rural income gap, but the digital divide may limit this effect. This study develops a theoretical framework to explore the interactions between digital finance, the digital usage gap, and income disparity. Using data from 274 Chinese cities, the research applies a two-way fixed-effects and threshold effect model. The results indicate that disparities in digital usage not only diminish but may also distort the convergence benefits of digital finance, producing a U-shaped relationship that exhibits variability across dimensions and regions. Additionally, traditional financial systems appear to moderate this U-shaped pattern by delaying the point at which digital finance begins to widen the urban–rural income gap. However, the extent of this alleviation is influenced by the digital usage is divisive. Once digital technology adoption exceeds a threshold, the negative effect becomes positive, narrowing the urban–rural income gap. Consequently, policy initiatives should prioritize improving financial conditions in rural areas, accelerating the digital transformation of conventional finance, bolstering digital education in rural regions, and addressing the disparities in digital usage. Full article

This paper presents a novel methodology to generate Digital Elevation Models (DEMs) in flat areas, incorporating river channels from relatively coarse initial data. The technique primarily utilizes filtered dense point clouds derived from SfM-MVS (Structure from Motion-Multi-View Stereo) photogrammetry of available crewed aerial imagery datasets. The methodology operates under the assumption that the aerial survey was carried out during low-flow or drought conditions so that the dry (or almost dry) riverbed is detected, although in an imprecise way. Direct interpolation of the detected elevation points yields unacceptable river channel bottom profiles (often exhibiting unrealistic artifacts) and even distorts the floodplain. In our Fluvial Domain Method, channel bottoms are represented like “highways”, perhaps overlooking their (unknown) detailed morphology but gaining in general topographic consistency. For instance, we observed an 11.7% discrepancy in the river channel long profile (with respect to the measured cross-sections) and a 0.38 m RMSE in the floodplain (with respect to the GNSS-RTK measurements). Unlike conventional methods that utilize active sensors (satellite and airborne LiDAR) or classic topographic surveys—each with precision, cost, or labor limitations—the proposed approach offers a more accessible, cost-effective, and flexible solution that is particularly well suited to cases with scarce base information and financial resources. However, the method’s performance is inherently limited by the quality of input data and the simplification of complex channel morphologies; it is most suitable for cases where high-resolution geomorphological detail is not critical or where direct data acquisition is not feasible. The resulting DEM, incorporating a generalized channel representation, is well suited for flood hazard modeling. A case study of the Ranchería river delta in the Northern Colombian Caribbean demonstrates the methodology. Full article

This study analyzed the impact of China’s Low-carbon City Pilot (LCCP) on firm productivity using firm-level financial data from the Chinese State Administration of Tax and patent data from the State Intellectual Property Office of the People’s Republic of China from 2007 to 2016, with the aim of clarifying the impact and mechanism of carbon regulation on firms’ productivity from the perspective of a developing country. By employing a staggered difference-in-differences model, we solved the analytical difficulties caused by the low-carbon pilot batch. Our findings revealed that the LCCP has a positive effect on firm productivity, with a 3% increase in total factor productivity (TFP). We concluded that environmental regulations can increase firms’ productivity. We also identified the mechanism, determining that the LCCP can increase firms’ research and development expenditure and the number of patents, advancing technological development. We also demonstrated that the dispersion of TFP across LCCPs has decreased, showing that low-productivity firms exit the market and the exit mechanism is improved, while resources are allocated more efficiently and market distortions are mitigated. This study contributes to the literature on climate policies on firms’ productivity and provides policymakers with valuable insights for balancing environmental regulations and firm productivity. Full article

Driven by positive accounting, agency, and political and economic theories, this study examines the relationship between research and development (R&D) intensity and earnings management for listed pharmaceutical companies in the Amman Stock Exchange (ASE) between 2008 and 2021. Employing panel regression methods, the results reveal a positive association between R&D investment and earnings manipulation. Specifically, after two or three R&D delays, the association survived. Moreover, firm size negatively affects earnings management, showing that larger firms have less tendencies to conduct earning manipulation. Furthermore, financial leverage and earnings management are strongly connected, showing that firms may utilize earnings management to avoid credit covenants. The findings emphasize distortions in R&D reporting and profit management within Jordan’s financial reporting practices. Enhancing the accuracy of R&D investment disclosures, minimizing profit manipulation, and fostering greater transparency are crucial. Jordan’s regulators should improve capitalization standards, transparency, auditing, and shareholder activism. Full article

Promoting green innovation is an important way to implement the dual carbon strategy and build an innovative country. Based on the panel data of 250 cities in China from 2011 to 2018, this paper constructs a two-way fixed-effect model, an intermediary effect model and a spatial Durbin model, and empirically studies the impact and mechanism of digital finance on urban green innovation. The results show that digital finance can improve the ability of urban green innovation, and its enabling effect mainly comes from improving the financial service model and improving the digital level. However, the role of digital finance in improving the efficiency of green innovation is not significant. Digital finance can promote urban green innovation by promoting the development of the Internet and alleviating the distortion of labor factors. A good environment for innovation will enhance the role of digital finance in promoting green innovation. Through further analysis, the spatial spillover effect of digital finance on green innovation at this stage is dominated by the siphon effect while the “trickle-down” effect is blocked. Full article

Innovation is a key driver of high-quality economic development. Building strong relationships between central and local financial authorities, with a clear division of powers and responsibilities and well-coordinated fiscal resources, is both practical and significant. Such collaboration enhances the government’s ability to support scientific and technological innovation, leading to improved outcomes. In this study, multiple mechanisms of fiscal decentralization and government innovation investment in regional innovation were explored based on Chinese-style fiscal decentralization, the theory of fiscal decentralization, and the innovation system. Provincial panel data from 2008 to 2021 were used to examine both the direct effect of fiscal decentralization and the mediating effect of government innovation investment on regional innovation. The results show that fiscal decentralization distorts the government’s fiscal expenditure behavior, significantly inhibiting regional innovation enhancement. The results of a mechanism analysis demonstrate that fiscal decentralization weakens the government’s support and guidance for scientific and technological innovation, but increasing innovation investment can offset this effect and enhance the regional innovation level. Overall, fiscal decentralization negatively affects regional innovation by inhibiting the government’s innovation investment. To address these challenges, the fiscal system requires deeper reform, adjusting the relationship between central and local governments. Additional measures should include improving the government’s performance appraisal system, guiding local authorities to adopt appropriate performance perspectives, increasing fiscal expenditure and the government’s role in scientific and technological innovation, and enhancing independent scientific and technological innovation. Full article