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on Corporate Finance |
| By: | Siavash Mohades; Maria Savona |
| Abstract: | This paper investigates whether investments in data affect firms’ R&D and whether the two are productivity-enhancing complements. We conceptualise and test whether investments in data reduce market uncertainty, thereby mitigating the inherent uncertainty of R&D and enhancing research and innovation investment. Using Italian firm-level data from 2002 to 2024 and exploiting the GDPR as an instrument, we identify a positive causal effect of data on R&D investment. Moreover, we find that data and R&D are complementary in enhancing both short- and long-term productivity. Our analyses also identify a positive role of R&D for productivity only when firms are data-intensive. |
| Keywords: | uncertainty, data, R&D, digitalisation, innovation, productivity |
| JEL: | D22 D25 D82 O31 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12230 |
| By: | Mahabubur Rahman (ESC [Rennes] - ESC Rennes School of Business); M Ángeles Rodríguez-Serrano (Universidad de Sevilla = University of Seville); Md Tareq Bin Hossain (TU - Thammasat University) |
| Abstract: | While prior studies broadly explored the consequences of environmental innovation, the implications of environmental product innovation for firm performance have received relatively scant research attention. Past studies theorizing that environmental product innovation has a linear effect on firm performance have reported mixed results, indicating that the association between the two is far more complex than conceptualized by earlier research. Drawing on the natural resource-based view of the firm and the resource dependence theory, this study theorizes that the impact of environmental product innovation on firm growth follows a curvilinear (inverted Ushaped) pattern. It is also posited that this curvilinear relationship is moderated by marketing intensity, sustainability disclosure strategy and a firm's propensity to engage in deviant corporate practices. Using a sample of U.S.-based firms and employing an endogeneity-robust econometric modelling technique, this study demonstrates that the effect of environmental product innovation on firm growth is initially positive but subsequently becomes negative. Further, this research shows that this curvilinear relationship between environmental product innovation and firm growth is moderated by a firm's sustainability disclosure strategy (the curve flattens), marketing intensity (the curve flattens) and by a firm's level of engagement in deviant corporate practices (the curve steepens). The results are robust to additional sensitivity analyses. |
| Keywords: | Sustainability disclosure, Deviant corporate practices, Marketing intensity, Firm growth, Environmental product innovation |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05280178 |
| By: | Holmberg, Johan (Department of Economics, Umeå University); Selin, Håkan (Institute for Evaluation of Labour Market and Education Policy (IFAU) and UCFS) |
| Abstract: | Several papers examine how firms react to dividend tax reforms. But can tax reforms affect firm behavior without even occurring? An increase in the dividend tax on shares of Swedish closely-held corporations, scheduled for January 1, 2018, was canceled at short notice. In a difference-in-difference setting, we examine how firms reacted to the government’s announced reform plans. We find that dividend payments increased in the “pre-reform years” and declined sharply in 2018, especially for cash-rich firms. This led to a reduction in the cash holdings, with potential implications for firm activity. |
| Keywords: | Owner level taxes; tax planning; investments |
| JEL: | G35 H32 |
| Date: | 2025–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:umnees:1040 |
| By: | Juan Cortina; Claudio Raddatz; Sergio Schmukler; Tomas Williams |
| Abstract: | This paper investigates how firms use green versus conventional debt and the associated firm- and aggregate-level environmental consequences. Employing a dataset of 127, 711 global bond and syndicated loan issuances by non-financial firms across 85 countries during 2012-23, the paper documents a sharp rise in green debt issuances relative to conventional issuances since 2018. This increase is particularly pronounced among large firms with high carbon dioxide emissions. Local projections difference-in-differences estimates show that, compared to conventional debt, green bond and loan issuances are systematically followed by sustained reductions in carbon intensity (emissions over income) of up to 50 percent. These reductions correspond to as much as 15 percent of global annual emissions. Green bonds contribute to reducing emissions by providing financing to large, high-emitting firms, whose improvements in carbon intensity have significant aggregate consequences. Syndicated loans do so by channeling a larger volume of financing to a wider set of firms. |
| Keywords: | carbon emissions; corporate bonds; firm growth; green debt; green transition; sustainability; syndicated loans. |
| JEL: | F33 G00 G01 G15 G21 G23 G31 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:gwc:wpaper:2025-012 |
| By: | Victoria Ivashina |
| Abstract: | This paper provides a comprehensive introduction to private debt, examines the key drivers behind its expansion, and frames the discussion around potential risk accumulation in the broader economy. Overall, the development of private debt can be viewed as the emergence of a new technology that facilitated the expansion of the high-yield corporate debt market into the middle market. Throughout its history, the evolution of the high-yield debt and the rise of private debt have been closely intertwined with the growth of private equity. Historically, banks have not had significant exposure to financing buyouts or other highly leveraged transactions, whether in the large-cap or mid-cap segments. |
| JEL: | G01 G1 G2 G23 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34426 |
| By: | Anne Epaulard; Chloé Zapha |
| Abstract: | We estimate the impact of a 2009 reform that merged small bankruptcy courts on the quality of their rulings. A conceptual framework enables us to link difference-in-difference estimates to the impact of the reform on Type 1 errors (restructuring a non-viable firm) and Type 2 errors (liquidating a viable firm). We apply this framework to an (almost) exhaustive sample of 600, 000 bankruptcy cases in France that started between 2000 and 2019. The reform unambiguously reduces Type 1 errors while having no impact on Type 2 errors. Post-merger court behavior is determined more by that of the absorbing court than by that of the absorbed one. |
| Keywords: | Corporate Bankruptcy, Commercial Courts |
| JEL: | G33 K22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:1015 |
| By: | Birthal, Pratap S.; Hazrana, Jaweriah; Roy, Devesh; Satyasai, K. J. S |
| Abstract: | Climate change is one of the biggest challenges to sustainable development of agriculture, and consequently to the livelihood of farming communities, and the governments’ efforts to improve food and nutrition security and reduce poverty, especially in countries more exposed to climate risks and dominated by small-scale producers who often lack finance for investment in risk management. During the past two decades, climate finance for agriculture has attracted considerable attention in policy debates, yet agriculture’s share in the total climate finance has remained minimal. Empirical evidence presented in this paper distinctly highlight the role of finance in building resilience of agriculture. These provide a basis for a change in policy stance to emphasize climate finance in investment and credit planning in agriculture, and the need for innovative approaches to deliver finance that is climate sensitive. Climate risks are predicted to be severe in plausible future climate scenarios; hence, the need for climate finance for agriculture cannot be understated. Current level of climate finance for agriculture is not commensurate with its requirement. Today’s investments in climate actions will shape future trajectory of agricultural growth, and its economic and social outcomes. I hope this paper will be useful for policymakers, financial institutions and other stakeholders to take informed decisions on financing agriculture for risk management. |
| Keywords: | Agribusiness, Agricultural Finance, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Risk and Uncertainty, Sustainability |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:icarpp:344992 |