This study examines the impact of CEO political support on the market valuation of Russell 3000 firms following the 2024 U.S. presidential election. Using event study methodology and federal donations data, we find that both the relative share and absolute amount of CEO donations to the Republican Party positively relate to abnormal stock returns post-election, while Democratic support results in significant

This study investigates the factors influencing the frequency of generative AI usage among 315 investors, categorized into three groups: stock-only, crypto-only, and diversified. Through surveys and regression analyses, we explore how investment type, personality traits, and perceptions of AI affect adoption. The results reveal that diversified investors use AI most frequently. Narcissism and perceived

The study examines the return connectedness between climate policy uncertainty (CPU), clean energy, fossil energy, and food markets. Using the time-domain method of Diebold and Yilmaz, (2012) and frequency-domain methods of Baruník and Křhlík (2018), we find substantial spillover effects between these markets. Furthermore, high frequency domain is the primary driver of overall connectedness. In addition

The increasing prominence of ESG ratings is reshaping asset pricing by providing new approaches to assess risk and return in financial markets. This study conducts a bibliometric analysis of 392 publications from Scopus and Web of Science, covering research from 2005 to 2024. A notable acceleration in studies has been observed since 2018, with the USA and UK leading in contributions. The analysis identifies

The economies of each State are increasingly interconnected and depend on international trade. The intricate set of connections and transactions was put to the test during the Russia–Ukraine conflict. The TVP-VAR model is used to investigate the connectedness among G7 stock indices and commodity markets. Results show that spillovers are dynamic and crisis sensitive and the response at the war has been

This study examines the relationship between inclusive innovation and firm performance through the lens of social network theory. Empirical analysis reveals that inclusive innovation positively influences firm performance through three mediating mechanisms, namely, firm-rooted ability, social embeddedness, and value co-creation. This study identifies critical boundary conditions—the uniqueness of base-of-the-pyramid

This study demonstrates that non-response bias drives selective sample attrition in expectation surveys that require consecutive household responses. Examining 160,842 responses from 20,963 respondents in the Survey of Consumer Expectations (SCE) from June 2013 to April 2024, I show that 66.1 % of respondents who quit the consecutive survey before the completion of 12 tenures—the early quitters—only

This study examines the impact of cost-weighted geopolitical risk exposure in the supply chains of U.S. firms. Using a Difference-in-Differences (DiD) framework centered on the Russo-Ukrainian War, we find that treated firms experience a significant increase in credit default swap (CDS) spreads. In addition, these firms exhibit higher default probabilities and lower credit ratings, reflecting heightened

We show that carbon-intensive firms experienced significant negative cumulative abnormal returns when the historically unprecedented haze from Canadian wildfires reached the New York City area in June 2023. Our findings cannot be explained by energy price shocks, negative productivity effects of air pollution, aversion to highly polluting industries, or concurrent political events. Our results indicate

This study estimates the natural rate of bank defaults, the threshold below which systemic banking crises are unlikely, using a threshold model based on bank default rates and macroeconomic indicators. Analyzing global data from major crises over the past 40 years, we identify a critical default rate of 0.25 %, equivalent to one default per 400 banks annually. Aligned with a 'BBB' rating, this benchmark

This paper proposes a simple measure of the Fed's inattention to incoming information, based on the persistence of disagreement between the Fed and professional forecasters. I document a substantial degree of persistent disagreement over time and across variables, typically exceeding half. At a short horizon, there is also evidence of a significant attention advantage of the Fed over professional forecasters

Based on a survey of 2215 French investors, this study examines the impact of greenwashing perception on individual investment decisions. Our findings reveal that greenwashing perception is negatively related to green investing. Specifically, A one-point increase in greenwashing reduces investment likelihood by 1.68 percentage points. This perception discourages traditional investors from considering

Using corporate credit rating data and a new metric of the expected joint loss of the banking sector conditional on a systemic event (JLoss), this study documents a positive association between corporate credit risk and domestic banking fragility. It also documents that the relationship between corporate and sovereign credit ratings amplifies during periods of banking distress.

The United Nations 2030 Agenda promotes sustainability through 17 Sustainable Development Goals (SDGs). In this study, an index based on key SDG 12 indicators related to responsible consumption and production patterns is constructed to rank EU countries according to their level of compliance. The results show that Italy, the Netherlands and France leading the implementation of sustainable practices

We analyze whether a large language model can generate investment portfolios with varying risk appetites and evaluate their performance against benchmarks. We prompt different ChatGPT models to create portfolios for different risk appetites of retail investors, focusing on U.S. and European equity markets. Our study reveals that higher-risk portfolios yield higher returns. GPT-4o outperforms in the

This paper empirically examines the impact of fintech on the decoupling behavior of corporate social responsibility (CSR). The results show that the fintech increases CSR decoupling by promoting corporate violations and enhancing risk-taking behaviors. Further analysis shows that the influence of fintech on CSR decoupling is more pronounced in firms operating within highly legal environments and highly

We investigate the optimal investment and dynamic attention allocation strategies of DC pension plan. The market price of stock risk is an affine function of observable and unobservable factors. The fund manager can acquire news signal to improve the predictability of stock returns with costs. The optimal strategies are derived explicitly. Through numerical analysis, we find that if the fund manager

We investigate the impact of the 2023 banking crisis, the most significant banking system turmoil since the Global Financial Crisis (GFC), on co-movement between the United States (U.S.) and global banking sectors. Using wavelet coherence and beta regressions, we find strong contagion during the crisis. The crisis primarily impacted co-movement through a change in U.S. monetary policy and heightened

We study the relationship between country-level investment opportunities and international labor mobility in Europe. Based on a gravity model analogous to those frequently utilized in the international trade literature, we find that (1) migration is not sensitive to investment opportunities at home and (2) individuals who migrate are more likely to move to countries with higher investment opportunities

The European Banking Authority (EBA) provides limited standardization for Credit Spread Risk in the Banking Book (CSRBB), delegating its assessment to individual financial institutions. This has led to significant variation in how CSRBB guidelines are interpreted and applied across the banking sector. This study investigates how to model plausible but unlikely credit spread shocks using Principal Component

This study explores dynamic contracting in venture capital investment, where entrepreneurial compensation integrates absolute and relative performance. We identify a paradox in investment strategies based on startup efficiency: fixed capital suits efficient startups, while dynamic investment benefits inefficient ones. If the Venture Capitalist (VC) can switch strategies, starting with dynamic early-stage

We develop a tractable dynamic asset pricing model for cryptocurrencies that addresses users’ concerns about model uncertainty. Our paper provides a closed-form solution to token pricing, yielding homothetic and homogeneous robust decisions. A key insight is that the rate of robust adoption may either increase or decrease relative to tokenless economy, depending on the trade-off between the token-appreciation

This study investigates the impact of war-related risk on stock market volatility using a war discourse index. Drawing on a century of data, we show that the index significantly predicts U.S. stock market volatility up to 12 months ahead. This predictive power remains robust after accounting for macroeconomic conditions, market variables, and geopolitical risk. Furthermore, forecasts yield economically

We examine the impact of climate policy uncertainty (CPU) on corporate environmental risk-taking and stock performance. Environmental incidents, especially those related to climate change, increase following high CPU periods. Furthermore, CPU lowers future stock returns, with a stronger effect following environmental incidents. We underscore the role of CPU in corporate risk-taking on environmental

This study investigates the impact of geopolitical risk on the currency denomination of offshore corporate bonds. By analyzing a sample of listed firms across 27 economies from 2010 to 2023, we find that elevated geopolitical risk is associated with reduced offshore corporate bond issuance in local currency. This association is weaker in bonds with shorter maturity or higher credit rating, in firms

Amid the recent ESG de-institutionalization by major financial institutions, this study investigates market responses to ESG factors during two major events that shake the U.S. stock market in 2024: (1) an economic shock and (2) a political shock tied to Trump’s election victory. Overall, the market reacts negatively to higher-ESG stocks during both events. However, the economic shock does not trigger

This study examines how symbolic temporal landmarks, specifically corporate anniversaries, influence firm performance. Temporal landmarks simplify managerial decision-making by focusing attention and aligning strategic actions with stakeholder expectations. We investigate whether managers use anniversaries to enhance financial performance, potentially through earnings management (EM), while minimizing

We find that Chapter 11 bankruptcy cases are more likely to result in emergence if decided shortly before a gubernatorial election, where the incumbent seeks re-election. However, firms emerging from bankruptcy during this period have a lower chance of long-term survival. This suggests that governors promote the survival of bankrupt firms, even those without a sustainable business model, to enhance

This paper examines the impact of investor investigation activities on the refinancing sponsorship and underwriting expenses of listed companies, utilizing data from the Science and Technology Innovation Board (STIB) and Growth Enterprise Market (GEM) spanning the period from 2018 to 2023. Our findings reveal that investor research negatively affects the refinancing sponsorship and underwriting costs

This study utilizes the implementation of the Anti-Monopoly Law (AML) as a quasi-natural experiment and examines its impact on corporate governance using a sample of A-share listed companies from 2004 to 2022. Using a DID model, the analysis demonstrates that the implementation of the AML significantly improves corporate governance. Mechanism analysis indicates that this effect is primarily achieved

We compute the daily ambiguity of the S&P 500 using high-frequency (one-minute) data from 1998 to 2022. Ambiguity is defined as the variability in return distributions throughout the trading day. The findings reveal that ambiguity fluctuates across weekdays with a clear tendency to peak on Mondays, drops significantly on Wednesdays and Thursdays, and rises slightly on Fridays, forming a smile-like

This study demonstrates that the tone of the risk factors section in the 10-K reports of U.S. public companies predicts returns on major U.S. stock indices. We created five tone indicators using text mining, the Loughran-McDonald dictionary, and AI-calibrated alternatives (GPT-3.5-turbo-0125, GPT-4, GPT-4o, and GPT-4o-mini). These indicators showed significant predictive power for weekly returns, with

Clayton Christensen's disruptive innovation theory highlights how technologies transform industries, but quantifying disruption remains challenging. This paper introduces Disruptor Detective, an AI-driven tool that evaluates companies using seven criteria of disruptive innovation, integrating financial data and natural language processing. Given the limited data available about private companies and

This paper investigates the impact of workplace inclusion—defined as the procedures organizations implement to integrate everyone in the workplace—on corporate financial performance, examining for the first time its effect on market valuation alongside profitability. We construct a composite, policy-based inclusion measure based on five observable components: flexible working hours, daycare services

This paper examines the impact of the recently developed investor sentiment index (Photo Pessimism) derived from a large sample of news photos on sustainable stock returns. Based on the quantile causality analysis, we demonstrate that Photo and Text Pessimism significantly influence S&P 500 ESG stock market returns, particularly at medium quantile levels. The findings also suggest that the Photo sentiment

This letter theoretically and empirically examines the impact of economic policy uncertainty (EPU) on business closures, using panel data from 26 countries over the period 2006–2022. We find that a one-unit increase in the EPU index significantly raises business closures by approximately 0.7 %–0.9 % per 1000 adults. Furthermore, we identify credit supply, household consumption, and stock market capitalization

We investigate the impact of the financial supervisory architecture on financial reporting outcomes by exploiting a quasi-natural experiment in Korea. In 2008, Korea consolidated financial policy-making and supervisory functions into a single entity. Employing a difference-in-differences approach with cross-country data, we provide novel evidence indicating that the financial reporting quality of Korean

This study aims to uncover dual asymmetries in Bitcoin by comparing it with the S&P 500. To achieve this goal, we utilized the fully unified GARCH model, which incorporates return-variance asymmetry, skew-GED errors, and structural breaks. Our comparative analysis using weekly data from 2010 to 2024 has revealed the following new findings. First, our fully unified GARCH model was effective in estimating

Understanding how the arrival of pre-market information triggers intraday circuit breakers in post-IPO stocks is central to analyzing market behavior in emerging markets, where information asymmetry and heightened volatility are common. Using data on newly listed stocks from the Turkish stock exchange, this paper examines the drivers of circuit breaker activations in the first year following IPOs.

Considering the enactment of the Insolvency and Bankruptcy Code (IBC) in India, we causally assess its impact on Indian firms’ audit fees. Using the difference-in-differences (DiD) technique, we find that financially distressed firms pay lesser audit fees than financially non-distressed firms in India post-bankruptcy reforms. The robustness of our findings is ensured using matching combined with DiD

This paper investigates the impact of climate risk on banks' credit risk. Using a sample of 102 banks across 21 countries in the European Economic Area (EEA) from Q3 2019 to Q2 2023, we develop a novel approach to quantifying climate risk based on banks' loan exposures to industries and countries. Our findings indicate that climate transition risk (CTR), climate physical risk (CPR), and total climate

We investigate the interrelationship between state-level economic policy uncertainty (SEPU), bank efficiency, and banks’ financial risk. Using a sample of US banks from 2011 to 2021, we show that banks with higher operational efficiency can mitigate the increased financial risk stemming from high SEPU. This association remains unchanged while considering the national-level economic policy uncertainty

This study quantitatively explores the relationships among the digital economy (DE), financial development, and industrial structure upgrading (ISU). Findings suggest that (1) the DE positively affects ISU; (2) financial development has a significantly positive spillover effect on ISU; and (3) under financial development regulation, the DE and ISU have an “inverted U-shaped” nonlinear relationship

This study investigates the impact of artificial intelligence (AI) adoption on credit risk assessment in OECD and BRICS economies by employing both System Generalized Method of Moments (GMM) and Random Forest models. As a first step, a composite AI Adoption Index is constructed to capture the technological maturity of financial institutions with indicators including banking technology spending, the

This study develops a model elucidating the mechanism by which CEO exaggeration triggers stock price collapses. CEOs leverage private information to attract investment through premarket boasting. Two investor archetypes interpret this information differently: Type I investors, possessing superior analytical capabilities, accurately discern true value; Type II investors, who rely on CEO pronouncements

This study explores the impact of cultural diversity on corporate artificial intelligence (AI) development and its underlying mechanisms. Empirical analysis demonstrates that cultural diversity significantly enhances AI development within firms, primarily by fostering innovation. Heterogeneity analysis further reveals that this positive effect is more pronounced in firms with lower financial constraints

We empirically investigate the effect of active style drift (i.e., changes in style resulting from managers’ deliberate rebalancing) on mutual fund performance. Our measure of active style drift is based on monthly holdings data, which enables us to capture short-term changes in style. We examine all active equity mutual funds registered in Korea between 2009 and 2023 and find that intermediate-term

We develop a two-stage model of capital investment and labor-augmenting innovations, considering the implications of market power on investment decisions (investment size and timing) and welfare. Capital size decreases with market power, while labor-augmenting technological investment scale increases. An inverted U-shaped relationship exists between investment thresholds and market power, resulting

This paper investigates whether biodiversity risk drives firms’ digital transformation. We find that such risk positively influences digital efforts, especially among firms facing higher natural disaster exposure, policy uncertainty, and risk perception. The effect operates through disrupted supply chains, sustainability constraints, and incentives for green innovation, positioning digital transformation

Utilizing a dataset of publicly listed companies spanning from 2011 to 2022, this study investigates the mechanisms underlying the impact of digital asset allocation on corporate accounting information quality. The results reveal that digital asset allocation exerts a negative influence on the quality of accounting information within firms. Moreover, the size of the enterprise is found to be a significant

This paper develops a continuous-time search-and-matching model that integrates two key labor market frictions—imperfect information and financial constraints—into the Diamond-Mortensen-Pissarides framework. By endogenizing these frictions, we offer a new explanation for persistent unemployment, asymmetric recoveries, and endogenous hysteresis. The model shows how informational distortions and liquidity

The impact of artificial intelligence adoption on the green management capability of manufacturing enterprises is underexplored. This paper investigates the correlation between artificial intelligence adoption and green management capability spanning 2017 to 2023. The results indicate that the artificial intelligence adoption can promote manufacturing firms` green management capability. The positive

Using linear and quantile regressions and daily data covering August 7, 2015, to December 30, 2024, we show that the ratio of Bitcoin-to-gold (BG) prices exerts a significantly positive effect on U.S. stock returns during the COVID-19 pandemic and post-pandemic periods, which holds when accounting for volatility, term spread, default spread, inflation, and liquidity. No significant impact is observed

This research examines, conceptually and empirically, the impact of environmental regulation on corporate greenwashing. This research utilizes the New Environmental Protection Law as a natural experiment to investigate the causal relationship between environmental legislation and corporate greenwashing actions from 2009 to 2023. The results suggest that implementing the new Environmental Protection

This study empirically investigates the effects of digital economy enhancement on high-quality foreign trade development using the panel feasible generalized least squares method. The results indicate that digital economy development has a significant positive effect on regional openness and high-quality foreign trade, and regional openness has a mediating role in the process. Additionally, the promotional

As environmental awareness grows, governments and social groups increasingly recognize the importance of green credit. The expansion of green credit inevitably influences banks’ deposit-to-loan ratios. This paper examines the impact of green credit policies on commercial banks risk-taking using a mediation effect model to assess the role of the deposit-to-loan ratio. Findings indicate a negative correlation

This study analyzes the deposit channel, emphasizing how positive and negative deposit spreads affect the impact of monetary policy changes on loan supply differently. Using a sample of 703 banks from 11 countries in the Eurozone between 2010 and 2023, we find evidence supporting the deposit channel in markets with high concentrations when deposit spreads are positive, partially validating this deposit

As a crucial component of modern finance, digital finance significantly contributes to enhancing the green economic development. Based on the panel data from 2011 to 2021, this paper explored the impact of digital finance on the tourism green total factor productivity by double/debiased machine learning model and spatial durbin model. The research findings are as follows: (1) Digital finance has significant

We study a Black–Litterman and multi-factor (BL-MF) fusion model that integrates equilibrium expected returns and investor views information from the Black–Litterman framework with the return-factor correlation information captured in the multi-factor model. The optimal estimator derived from our model improves accuracy in estimating expected returns and covariance matrix. We build optimal portfolios