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on Corporate Finance |
| By: | Muhammad Ansar Majeed (KEDGE Business School [Marseille]); Irfan Ullah (Jiangxi Normal University [Nanchang]); Tanveer Ahsan (ESC [Rennes] - ESC Rennes School of Business); Bakr Al-Gamrh (ESC [Rennes] - ESC Rennes School of Business) |
| Abstract: | Financial limitations can influence how effectively corporations invest, with influential CEOs playing a key role in making investment choices. This study investigates the link between CEO power and investment effectiveness in the context of financial limitations, using a dataset of Chinese firms listed from 2005 to 2022. We observe a negative association between CEO power and investment efficiency. Nonetheless, powerful CEOs facing financial pressures can notably enhance investment efficiency through adept strategic choices. Our findings remain robust across a range of alternative measures of investment efficiency and financial constraints, as well as various econometric specifications. Further examination shows that the investment inefficiencies associated with powerful CEOs mainly arise from overinvestment, while external governance factors, such as analyst coverage and media attention, as well as CEO gender, significantly impact the relationship between CEO power and investment efficiency. This research contributes to the existing body of knowledge on CEO power by integrating agency theory and strategic choice frameworks to clarify the relationship between CEO power and investment efficiency in financially constrained situations. |
| Keywords: | Financial constraints, Investment efficiency, CEO power, External governance, CEO gender |
| Date: | 2025–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05224745 |
| By: | Klaus Friesenbichler; Agnes Kügler |
| Abstract: | We study the short- and medium-term extensive and intensive margins of intangible investments in firm growth processes. The intensive and extensive margins of investment are both highly skewed and differ across sectors. Less productive firms are less likely to invest in intangibles, while incorporated firms are more likely to do so. Intangible capital only complements physical capital for a limited number of firms. Intangible investment is positively associated with short-term productivity growth, particularly among firms that consistently invest over time. The medium-term effects on productivity are limited and are largely confined to top-performing firms. We find systematic short-term effects of intangible investment on employment growth. Regular investment patterns correlate with higher employment growth over both time horizons. These results challenge the conventional assumption that intangible capital uniformly enhances firm performance. They also highlight the importance of sustained investment behavior and sectoral context. |
| Keywords: | intangible capital, employment, productivity, investment, firm growth, sample selection, Austria, microdata |
| Date: | 2025–09–17 |
| URL: | https://d.repec.org/n?u=RePEc:wfo:wpaper:y:2025:i:711 |
| By: | Anaya Longaric, Pablo; Kostakis, Vasileios; Parisi, Laura; Vinci, Francesca |
| Abstract: | Europe’s lack of energy independence raises concerns about its vulnerability to external energy shocks, such as Russia’s 2022 invasion of Ukraine. This paper examines how energy shocks impact firm-level investment, comparing European and US firm responses. Using global oil supply news shocks, S&P’s Compustat data, and a local projections approach, the study reveals that European firms significantly cut capital and R&D expenditures after an oil shock, unlike US firms. The disparity is primarily driven by financially constrained firms in energy-intensive sectors. Additionally, differences in capital market structures play a role, as European firms relying more on market-based financing reduce investment by less. Lastly, our analysis confirms that the US shale revolution was a contributing factor in shaping Europe’s relative vulnerability. These findings highlight the need for national and EU policies to securethe energy supply, lower prices, and deepen capital markets, enhancing resilience and future competitiveness amid energy volatility. JEL Classification: D22, E22, F15, Q43 |
| Keywords: | competitiveness, corporate investment, energy, oil shocks |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253116 |
| By: | Tristan Jourde; Quentin Moreaux |
| Abstract: | This paper introduces a market-based framework to study the effects of tail climate risks in the financial sector. In addition to identifying the financial institutions most vulnerable to physical and transition climate risks, our framework explores the potential for these risks to induce contagion effects in the financial sector. Based on the securities of large European financial institutions (including the UK) spanning from 2005 to 2022, we show that, unlike physical risk, transition risk significantly and increasingly influences systemic risk in the financial sector. We also examine the potential levers available to financial institutions and regulators to address climate-related financial risk. |
| Keywords: | Climate Risks, Contagion, ESG, Financial Stability, Systemic Risk |
| JEL: | G10 G20 G32 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:993 |
| By: | Olfa Daghsni (RED-ISGG - Recherche, Entreprises et décision - ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès)); Jamel Eddine Henchiri (RED-ISGG - Recherche, Entreprises et décision - ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès)) |
| Abstract: | The purpose of this research is to ensure the factors that influence the attitude of SMEs towards Islamic banking services. The data of 28 entrepreneurs of SMEs were collected through an interviewer-administered questionnaire using a random sampling technique. This study uses a theoretical model based on the theory of planned behavior. To analyze the data obtained from the questionnaire, exploratory factor analysis techniques are used. The study has found significant impact of the quality of service, knowledge of Islamic finance, religious belief and support for business on the attitude towards Islamic banking, among SMEs in the south- west region of Tunisia. The results identify important factors that Islamic can use to update their strategies to attract potential customers and expand their customer base by adopting innovative financial solutions for small and medium-sized enterprises (SMEs). |
| Keywords: | The South West Region of Tunisia, Attitude, Theory of Planned Behavior, MENA, small business, Tunisia, SME Financing, Mena region, Small And Medium Sized Enterprises |
| Date: | 2025–03–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05252681 |
| By: | Byker, Tanya (Middlebury College); Malik, Sara (University of Utah); Patel, Elena (University of Utah); Sandvik, Jason (University of Arizona) |
| Abstract: | We use administrative data from the U.S. Census to estimate the effect of female director representation on workplace gender diversity and women’s earnings. Using a difference-in-differences estimator that correctly accounts for variation in treatment timing, we show that first-time female director appointments lead to subsequent increases in workplace gender diversity. We find that the effects are driven by the improved retention of female workers in the middle and upper quartiles of the firm’s overall earnings distribution. We find suggestive evidence that the effects are due to the newly appointed female directors’ influence on corporate policy, as we observe stronger effects when the director is placed on one of the board’s three core committees. |
| Keywords: | wage, directors, corporate board, women, committee |
| JEL: | J13 J30 J31 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18125 |