Showing papers in "International Review of Economics & Finance in 2018"

TL;DR: Using a large panel of 1086 non-financial firms from 2001 to 2013, the authors find that better governed firms are strongly associated with a lower level of default risk, and that the association is stronger among firms with more growth opportunities.

TL;DR: In this paper, the authors conduct a global empirical analysis of the relationship between the cash conversion cycle and corporate performance by adopting enterprises from different countries as samples and observe that an aggressive working capital policy can enhance corporate performance; however, this effect reduces or reverses when firms exist at the lower CCC level.

TL;DR: In this article, the authors re-explore the human capital-entrepreneurship relationship and attempt to clarify the mixed findings with regard to human capital's impact on entrepreneurial outcomes using data from Global Entrepreneurship Monitor.

TL;DR: Wang et al. as discussed by the authors used the output directional distance function to estimate the shadow prices and environmental technical efficiency of China's provincial SO2 emissions for 2001-2013, and found that the Chinese national average SO2 shadow price showed a fluctuating downward trend during the period of 2001-2012 and increased significantly in 2013.

TL;DR: In this article, the authors examined the connectedness of the sector CDS spreads for U.S. banks, financial services firms and insurers with major global factors including the US stock market volatility, Libor, Treasury bill rates and oil prices to gauge credit risk exposure.

TL;DR: In this article, the authors consider the timing of environmental policies with a consumer-friendly firm having abatement technology, and compare two market-based regulations: tradable permits and emission tax regulations when the government can credibly commit its policy.

TL;DR: This article examined the impact of external financing activities on earnings management decisions and further explored the role of enterprise risk management (ERM) as a potential moderating factor in this association, finding that managers use both real-activities and accrual-based earnings management when engaging in equity financing activities.

TL;DR: In this article, a quantification of the effects of the Shanghai-Hong Kong Stock Connect is presented, examining Northbound and Southbound flows of funds over the first two years of the Stock Connect.

TL;DR: In this article, the authors show that the IVOL anomaly is not subsumed by the MAX effect, instead, the effect of the MAX Effect is subsumed in the IVL anomaly, and that there are stronger limits to arbitrage in the Chinese stock market due to unique institutional settings.

TL;DR: In this article, the impact of China's financial liberalization policies on its stock market integration with the rest of the world during 2000-2015 was analyzed using weak-form measures.

TL;DR: In this article, the authors examined the speed of adjustment of cash holdings and extended the recent work that highlights the importance of accounting for heterogeneity of the adjustment speed of stock holdings and found that firms with cash deficits, rated firms and firms with financial surpluses have a slower speed of adjusting, while firms with excess cash, non-rated firms and non-rating firms that have financial deficit adjust towards the target faster.

TL;DR: In this paper, the influence of the composite index of investor sentiment on the time-varying long-term correlation of the U.S. stock and bond markets based on the DCC-MIDAS model was investigated.

TL;DR: In this article, the role of exchange rate risk in determining local currency sovereign bond yields in emerging market economies was explored and it was shown that the influence of exchange-rate volatility has strengthened over time, particularly since the US Federal reserve announced in May 2013 that it would reduce the pace and size of its large-scale asset purchases.

TL;DR: In this article, the authors introduce two new ways of measuring the social objectives of MFIs, reflecting market shares, for breadth and depth of outreach, and show that these new outreach indicators provide a better explanation of social performance of MFI than those commonly used in prior research.

TL;DR: Wang et al. as mentioned in this paper explored how product market competition affects the impact of corporate social responsibility (CSR) on firms' product market performance and the underlying mechanism, and they found that CSR significantly decreases firms' products market performance only in noncompetitive industries, primarily through the channel of weaker debt financing capability.

TL;DR: In this article, the authors found that the restriction of speculative housing purchase used as instruments for housing prices had significantly raised NPLs due to raising vacant houses, decreasing housing investment and profit of housing-related firms.

TL;DR: In this paper, the authors examined the effect of bank-appointed directors on corporate cash holdings for Indian firms and found that firms with bank-appointed directors hold less cash compared to firms without bank-recommended directors.

TL;DR: In this article, the authors evaluate the impact of credit constraint on entrepreneurship by utilizing 2011 China Household Finance and Survey micro-data and show that credit constraint significantly decreases the propensity of households to start businesses.

TL;DR: In this article, the authors examined and compared two policies (investment cost subsidy and tax rate reduction) for the host government to attract FDI and showed that the optimal policy for attracting FDI depends on the growth rate and the volatility of the profit as well as the discount rate.

TL;DR: In this article, the authors investigated environmental policies in free-entry mixed markets taking account of the excess burden of taxation and found that ex-post taxation imposes a lower (higher) tax level than ex-ante taxation, which induces a larger number of firms and a higher environmental damage.

TL;DR: This paper showed that variability in the home-country currency leads to greater volatility in ADRs as a 1% increase in exchange-rate volatility corresponds to an approximate 2 percent increase in ADR volatility and showed abnormal volatility in Chinese ADRs surrounding the largely unexpected 2005 unpegging of the Chinese Yuan to the U.S. dollar.

TL;DR: This article studied hedge fund return moments to macroeconomic and financial shocks depending on the phase of the business cycle and found that hedge funds seem to monitor their return co-skewness and co-kurtosis.

TL;DR: The authors analyzed the long-run relationship between U.S house prices and non-housing Consumer Price Index (CPI) over the monthly period 1953 to 2016 using a quantile cointegration analysis.

TL;DR: In this paper, the authors investigated the strategic environmental policies in a free entry oligopoly and found that in both cases, the emission tax/subsidy could be provided and the optimal level of tax is always less than the marginal environmental damage.

TL;DR: In this paper, a performance attribution model for equity fund portfolios is proposed, which analyses investment decisions based on portfolio holdings and measures the value added from different sources of performance such as past return strategies, security selection, market timing and passive timing.

TL;DR: In this article, the impact of a country's extra-financial performance on its sovereign bond spreads was studied and it was shown that a good social performance signals an emerging economy's long-term orientation and commitment to repay its debt in the future.

TL;DR: The authors found that an increase in CEO power by one standard deviation decreases the probability of paying dividends by 17.48% and 5.91% for dividend-paying firms, respectively.

TL;DR: This paper used constant market share analysis to decompose changes in the export shares of the Central and Eastern European (CEE) economies in the period since the 5th enlargement of the European Union (EU) and measure changes in export competitiveness.

TL;DR: In this article, the authors investigated the protectionist intent of EU food safety standards and found that heavily import dependent sectors are less protected than the rest of the countries. But no substantial rise in the usage of these measures as protectionism tool during the period of financial crisis.

TL;DR: In this paper, the authors examined the income distributional effect of firms which commit to environmental corporate social responsibility (ECSR) investments and found that ECSR investment raises capital rental cost and widens wage inequality between skilled and unskilled workers via the factor substitution effect, while the increased capital cost causes firms to exit in the long run.