Open Access. Powered by Scholars. Published by Universities.®
Finance and Financial Management Commons™
Open Access. Powered by Scholars. Published by Universities.®
- Discipline
-
- Social and Behavioral Sciences (224)
- Portfolio and Security Analysis (223)
- Economics (142)
- Finance (134)
- Corporate Finance (103)
-
- Asian Studies (90)
- International and Area Studies (90)
- Strategic Management Policy (28)
- Technology and Innovation (24)
- Physical Sciences and Mathematics (18)
- Business Law, Public Responsibility, and Ethics (13)
- Environmental Sciences (12)
- Marketing (10)
- Public Affairs, Public Policy and Public Administration (10)
- Management Sciences and Quantitative Methods (9)
- Organizational Behavior and Theory (9)
- Real Estate (9)
- Economic Policy (8)
- Operations and Supply Chain Management (8)
- Entrepreneurial and Small Business Operations (6)
- Human Resources Management (6)
- Sociology (6)
- E-Commerce (5)
- Medicine and Health Sciences (5)
- Accounting (4)
- Agribusiness (4)
- Public Health (4)
- Business Administration, Management, and Operations (3)
- Keyword
-
- Hedge funds (27)
- Singapore (24)
- Liquidity (20)
- Return predictability (18)
- Corporate governance (16)
-
- Institutional investors (12)
- Analysts (11)
- Short selling (11)
- Cryptocurrency (10)
- Finance (10)
- ESG (9)
- COVID-19 (8)
- Climate change (8)
- Price discovery (8)
- Volatility (8)
- China (7)
- Market efficiency (7)
- Momentum (7)
- Options (7)
- Persistence (7)
- Return Predictability (7)
- Risk (7)
- Risk management (7)
- Sustainability (7)
- Agency problems (6)
- ETFs (6)
- FinTech (6)
- Institutional trading (6)
- Mispricing (6)
- Mutual funds (6)
- Publication Year
Articles 121 - 150 of 700
Full-Text Articles in Finance and Financial Management
Know Thyself: Access To Own Credit Report And The Retail Mortgage Market, Amit Kumar
Know Thyself: Access To Own Credit Report And The Retail Mortgage Market, Amit Kumar
Research Collection Lee Kong Chian School Of Business
Borrowers may misestimate their probability of mortgage approval in the absence of precise signals of creditworthiness. Credit reports, which contain such signals, became easily accessible for all U.S. consumers since 2005, while it was already the case in seven states. A difference-in-differences strategy exploiting this change shows that pool quality of mortgage applicants improved as a result—approvals increased, whereas subsequent delinquencies decreased. These findings are consistent with a mechanism where under-estimators enter the applicant pool and over-estimators drop out, because easier access to credit reports reduces misestimation of one’s own probability of mortgage approval. Additional findings rule out supply-driven explanations.
Internal Capital Markets And Predictability In Complex Ownership Firms, Ran Chang, Angelica Gonzalez, Sergei Sarkissian, Jun Tu
Internal Capital Markets And Predictability In Complex Ownership Firms, Ran Chang, Angelica Gonzalez, Sergei Sarkissian, Jun Tu
Research Collection Lee Kong Chian School Of Business
Using global cross-firm ownership data, we find that both stock returns and cash-flow news of ownership-linked firms predict focal firm's returns for all types of ownership structures: subsidiary-parent, parent-subsidiary, subsidiary-subsidiary, and parent-parent. This effect, observed only after the establishment of cross-firm ownership, is not subsumed by focal firm or industry momentum, or alternative inter-firm relations, including customer-supplier links and shared analyst coverage. Our findings are explained by mispricing due to internal capital markets - a mechanism unique to complex ownership firms. Higher internal capital market activity among ownership-linked firms also induces larger investments and lower external financing of the focal …
Do Large Gains Make Willing Sellers?, Dong Hong, Roger Loh, Mitch Warachka
Do Large Gains Make Willing Sellers?, Dong Hong, Roger Loh, Mitch Warachka
Research Collection Lee Kong Chian School Of Business
Using unique real estate data that allow for accurately-measured capital gains, we examine whether sell propensities depend on the magnitude of a seller's capital gain. We find that short-term sell propensities are flat over losses and increasing in gains. Consistent with their higher sell propensities, selling prices are lower for properties with larger gains. Large-sized short-term stock investments also have sell propensities that are flat over losses and increasing in gains, although the sell propensities of typical-sized short-term stock investments are V-shaped (Ben-David and Hirshleifer (2012)). Our findings provide empirical support for the realization utility theories of Barberis and Xiong …
Teaching Users About Real World Of Finance, Aurobindo Ghosh
Teaching Users About Real World Of Finance, Aurobindo Ghosh
Research Collection Lee Kong Chian School Of Business
In a commentary, SMU Assistant Professor of Finance (Education) and Director of Citi-Foundation SMU Financial Literacy Programme for Young Adults Aurobindo Ghosh shared his views on the metaverse and the opportunities to make money in the metaverse economy. While pointing out that lowering the cost of service and standardising service, as a virtual banking establishment, might increase customer experience for financial services, Asst Prof Ghosh cited a 2021 survey conducted by the Citi-Foundation SMU Financial Literacy Programme which found evidence that financial inclusion among young adults reduces impediments to banking like access to branches and documentation requirements.
Inflation Expectations Of Households And The Upgrading Channel, Sumit Agarwal, Yeow Hwee Chua, Changcheng Song
Inflation Expectations Of Households And The Upgrading Channel, Sumit Agarwal, Yeow Hwee Chua, Changcheng Song
Research Collection Lee Kong Chian School Of Business
Motivated by the evidence that households purchased better quality goods across time in Singapore, we use a survey experiment to study the relationship between consumption upgrading and households’ beliefs about inflation. We find that providing price information on better-quality products will lead to higher inflation expectations. The effects on inflation expectations are smaller when price information on both higher- and lower-quality products is made available, suggesting that product replacement increases inflation expectations. Additional tests show that our results are not driven by mixing price with quality or numeracy. Our findings highlight the relationship between product replacement, product variety, and inflation …
A Black-Scholes User's Guide To The Bachelier Model, Jaehyuk Choi, Minsuk Kwak, Chyng Wen Tee, Yumeng Wang
A Black-Scholes User's Guide To The Bachelier Model, Jaehyuk Choi, Minsuk Kwak, Chyng Wen Tee, Yumeng Wang
Research Collection Lee Kong Chian School Of Business
To cope with the negative oil futures price caused by the COVID-19 recession, global commodity futures exchanges switched the option model from Black-Scholes to Bachelier in April 2020. This study reviews the literature on Bachelier's pioneering option pricing model and summarizes the practical results on volatility conversion, risk management, stochastic volatility, and barrier options pricing to facilitate the model transition. In particular, using the displaced Black-Scholes model as a model family with the Black-Scholes and Bachelier models as special cases, we not only connect the two models but also present a continuous spectrum of model choices.
Market Manipulation Around Seasoned Equity Offerings: Evidence Prior To The Global Financial Crisis Of 2007-2009, Charlie Charoenwong, Kuan Yong David Ding, Ping Wang
Market Manipulation Around Seasoned Equity Offerings: Evidence Prior To The Global Financial Crisis Of 2007-2009, Charlie Charoenwong, Kuan Yong David Ding, Ping Wang
Research Collection Lee Kong Chian School Of Business
Since the adoption of the SEC’s Rule 10b-21 in 1988, many researchers have been concerned over the effectiveness of short sales constraints in preventing manipulative trading in the derivatives market. We analyze whether options can be used as synthetic short sale instruments to manipulate stock prices before a seasoned equity offer. Due to the existence of strict short sales constraints in the equity market and market makers’ anticipation of manipulative trading, it would be very costly for a manipulator to drive stock prices down artificially either by short selling in the equity market or by using synthetic short sales in …
Can Shorts Predict Returns? A Global Perspective, Ekkehart Boehmer, Zsuzsa R. Huszar, Yanchu Wang, Xiaoyan Zhang, Xinran Zhang
Can Shorts Predict Returns? A Global Perspective, Ekkehart Boehmer, Zsuzsa R. Huszar, Yanchu Wang, Xiaoyan Zhang, Xinran Zhang
Research Collection Lee Kong Chian School Of Business
Using multiple short-sale measures, we examine the predictive power of short sales for future stock returns in 38 countries from July 2006 to December 2014. We find that the days-to-cover ratio and the utilization ratio measures have the most robust predictive power for future stock returns in the global capital market. Our results display significant cross-country and cross-firm differences in the predictive power of alternative short-sale measures. The predictive power of shorts is stronger in countries with nonprohibitive short sale regulations and for stocks with relatively low liquidity, high shorting fees, and low price efficiency.
Inflation And Ukraine War Make It Challenging For Our Beloved Value Stores To Survive, Aurobindo Ghosh, Taimur Baig
Inflation And Ukraine War Make It Challenging For Our Beloved Value Stores To Survive, Aurobindo Ghosh, Taimur Baig
Research Collection Lee Kong Chian School Of Business
In a joint commentary, SMU Assistant Professor of Finance (Education) and Principal Investigator of DBS-SKBI Singapore Index of Inflation Expectations Project Aurobindo Ghosh and Chief Economist and Managing Director at DBS Bank Dr Taimur Baig discussed how global inflationary pressures and rising commodity prices due to war in Ukraine and sanctions against Russia are culminating into a perfect storm and making it challenging for value stores to survive. They also gave advice on what value stores can do to survive this perfect storm.
Investor Sentiment And Paradigm Shifts In Equity Premium Forecasting, Liya Chu, Kai Li, Tony Xue-Zhong He, Jun Tu
Investor Sentiment And Paradigm Shifts In Equity Premium Forecasting, Liya Chu, Kai Li, Tony Xue-Zhong He, Jun Tu
Research Collection Lee Kong Chian School Of Business
This study investigates the impact of investor sentiment on excess equity return forecasting. A high (low) investor sentiment may weaken the connection between fundamental economic (behavioral-based non-fundamental) predictors and market returns. We find that although fundamental variables can be strong predictors when sentiment is low, they tend to lose their predictive power when investor sentiment is high. Non-fundamental predictors perform well during high-sentiment periods while their predictive ability deteriorates when investor sentiment is low. These paradigm shifts in equity return forecasting provide a key to understanding and resolving the lack of predictive power for both fundamental and non-fundamental variables debated …
Why Commonality Persists?, Chyng Wen Tee, Raja Velu, Zhaoque Zhou
Why Commonality Persists?, Chyng Wen Tee, Raja Velu, Zhaoque Zhou
Research Collection Lee Kong Chian School Of Business
We show that order flows do not exhibit predictive power on asset returns, and their relationships have been static over time. We use a reduced-rank regression formulation to model both returns and the order flows as endogenous variables, and use investors' sentiment and attention as exogenous factors. We provide empiricalevidence to demonstrate that cross-sectional commonality in attention (sentiment) is linearly (nonlinearly) associated with both returns and order flows at the intraday level, while the sentiment and attentionmeasures themselves exhibit a nonlinear mutual relationship, thus revealing the multi-dimensional aspect of the commonality relationship.
Unconventional Monetary Policy And Disaster Risk: Evidence From The Subprime And Covid–19 Crises, Gustavo S. Cortes, George P. Gao, Felipe B. G. Silva, Zhaogang Song
Unconventional Monetary Policy And Disaster Risk: Evidence From The Subprime And Covid–19 Crises, Gustavo S. Cortes, George P. Gao, Felipe B. G. Silva, Zhaogang Song
Research Collection Lee Kong Chian School Of Business
We compare the interventions conducted by the Federal Reserve in response to the subprime and COVID–19 crises with respect to their effectiveness in reducing disaster risk. Using model-free measures of disaster risk derived from daily options data, we document that interventions in response to both crises reduced tail risks in domestic equity markets. The spillover effects of the two crises have been markedly dissimilar. While subprime interventions are generally characterized by negative spillovers to international equity markets, policy responses to the COVID–19 crisis are generally associated with positive spillovers. We interpret these results as consistent with the different degrees of …
Do Underwriters Short-Change Corporations Issuing Bonds?, Choo Yong, Jeremy Goh, Lisa Yang
Do Underwriters Short-Change Corporations Issuing Bonds?, Choo Yong, Jeremy Goh, Lisa Yang
Research Collection Lee Kong Chian School Of Business
We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead-manage their own bond offerings the underpricing is significantly less as compared to other non-self-marketed offerings. These findings are robust across various matched samples and selection models. Our results suggest that the bond offering process is characterized by substantive agency conflicts between shareholders of corporations (issuers) and underwriters.
Expected Return, Volume, And Mispricing, Yufeng Han, Dashan Huang, Dayong Huang, Guofu Zhou
Expected Return, Volume, And Mispricing, Yufeng Han, Dashan Huang, Dayong Huang, Guofu Zhou
Research Collection Lee Kong Chian School Of Business
We find that expected return is related to trading volume positively among underpriced stocks but negatively among overpriced stocks. As such, trading volume amplifies mispricing. Our results are robust to alternative mispricing and trading volume measures, alternative portfolio formation methods, and controlling for variables that are known to have amplification effects on mispricing. By attributing trading volume to investor disagreement, we show that our results are consistent with the recent theoretical model of Atmaz and Basak (2018) in that investor disagreement predicts stock returns conditional on expectation bias.
Financial Intermediaries And Contagion In Market Efficiency: The Case Of Etfs, Claire Yurong Hong, Frank Weikai Li, Avanidhar Subrahmanyam
Financial Intermediaries And Contagion In Market Efficiency: The Case Of Etfs, Claire Yurong Hong, Frank Weikai Li, Avanidhar Subrahmanyam
Research Collection Lee Kong Chian School Of Business
Capital constraints of financial intermediaries can affect liquidity provision. We investigate whether these constraints spillover and consequently cause contagion in the degree of market efficiency across assets managed by a common intermediary. Specifically, we provide evidence of strong comovement in pricing gaps between ETFs and their constituents for ETFs served by the same lead market maker (LMM). The effects are stronger for ETFs that are more illiquid and volatile, when the underlying constituents of the ETFs are more costly to arbitrage, and for LMMs with more constrained capital. Using extreme disruptions in debt markets during COVID-19 as an experiment, we …
How Do Firms Respond To Reduced Private Equity Buyout Activity?, Yi-Hsin Lo
How Do Firms Respond To Reduced Private Equity Buyout Activity?, Yi-Hsin Lo
Research Collection Lee Kong Chian School Of Business
This paper presents new evidence on the economic role of private equity buyouts by exploiting the staggered adoption of the constructive fraud provision by U.S. state courts. The law unintentionally shifts the credit default risk borne by existing unsecured creditors of the buyout target to the selling shareholders and lenders in the form of ex-post litigation risk, thereby discouraging buyout activity. Using a difference-in-differences framework, I find that firms raise less capital, reduce payouts and investments, and form alliances with employees. Firms also avoid positive NPV projects that carry too much risk. These findings are consistent with managers enjoying a …
Special Issue On Green And Ethical Finance, Thorsten Beck, David G. Fernandez, Bihong Huang, Peter Morgan
Special Issue On Green And Ethical Finance, Thorsten Beck, David G. Fernandez, Bihong Huang, Peter Morgan
Research Collection Lee Kong Chian School Of Business
This special issue includes several papers that focus on green and ethical finance. The climate change challenge has raised important questions about the financial sector's role in realizing a carbon-neutral global economy. The global financial crisis also brought critical ethical and governance questions for financial sector actors to the forefront. Such developments have together increased attention to environmental, social and governance (ESG) issues among financial sector practitioners, regulators, and investors. Recently, there has been an increasing focus of finance researchers on issues related to ESG and climate change, reflected also in the increasing number of submissions and published papers in …
Impact Measurement And Standards, Angeline Chua, Hao Liang, Wanyi Yang
Impact Measurement And Standards, Angeline Chua, Hao Liang, Wanyi Yang
Research Collection Lee Kong Chian School Of Business
Despite rapid economic growth and increasing interest in impact investment worldwide, less attention has been paid to the question of whether this growth is sustainable for people and the planet. In an ideal scenario, growth would happen within planetary and social boundaries. However, current financial value is often prioritised and achieved at cost to society and the environment. For example, small farmers in Indonesia have long practised slash-and-burn agriculture, and in recent decades large companies have industrialised the practice. The peatland blazes in Indonesia release smoke and large amounts of greenhouse gases, which impact both Indonesia itself, and neighbouring countries …
Investing In Low-Trust Countries: On The Role Of Social Trust In The Global Mutual Fund Industry, Massimo Massa, Chengwei Wang, Hong Zhang, Jian Zhang
Investing In Low-Trust Countries: On The Role Of Social Trust In The Global Mutual Fund Industry, Massimo Massa, Chengwei Wang, Hong Zhang, Jian Zhang
Research Collection Lee Kong Chian School Of Business
We hypothesize that social trust, in mitigating contracting incompleteness, may have an important effect on the activeness and effectiveness of delegated portfolio management. Using a complete sample of worldwide open-end mutual funds, we find that trust is positively associated with the activeness of funds and that trust-related active share delivers superior performance (e.g., approximately 2% per year for cross-border investments). Moreover, "trust in the market" and "trust in managers" play important yet different roles for different types of cross-border delegated portfolio management. Our results suggest that trust acts as a fundamental building block for delegated portfolio management.
Delegated Gender Diversity, Hao Liang, Cara Vansteenkiste
Delegated Gender Diversity, Hao Liang, Cara Vansteenkiste
Research Collection Lee Kong Chian School Of Business
We revisit the value implications of female representation on boards by exploiting the board diversity campaign announcement by Norges Bank Investment Management (NBIM)—the world’s largest sovereign wealth fund. In February 2021, NBIM required its portfolio firms to have at least 30% female directors. Using NBIM’s announcement as a shock to investor expectations about female board representation, we document significantly positive returns for firms with a female director shortfall, concentrated in firms with low institutional ownership. Consistent with an investor demand view of board gender diversity, we find that these firms experienced a greater increase in ownership by socially responsible institutional …
Short Selling Etfs, Frank Weikai Li, Qifei Zhu
Short Selling Etfs, Frank Weikai Li, Qifei Zhu
Research Collection Lee Kong Chian School Of Business
We provide novel evidence that arbitrageurs use exchange-traded funds (ETFs) as an avenue to circumvent short-sale constraints at the stock level. Using a large sample of U.S. equity ETF holdings, we document that shorting activity on ETFs rises with the difficulty of shorting underlying stocks. Stocks heavily shorted via their holding ETFs underperform those that are lightly shorted. The return predictability of ETF shorting is distinct from stock-level shorting measures and is concentrated among stocks that face severe arbitrage constraints. These findings suggest that ETFs allow arbitrageurs to target overpriced stocks that are otherwise difficult to short.
Decentralizing Money: Bitcoin Prices And Blockchain Security, Emiliano S. Pagnotta
Decentralizing Money: Bitcoin Prices And Blockchain Security, Emiliano S. Pagnotta
Research Collection Lee Kong Chian School Of Business
We address the determination of bitcoin prices and decentralized security. Users forecast the transactional and resale values of holdings, pricing the risk of systemic attacks. Miners contribute resources to protect against attackers and compete for block rewards. Bitcoin's design leads to multiple equilibria: the same blockchain technology is consistent with sharply different price and security levels. Bitcoin's monetary policy can lead to welfare losses and deviations from quantity theory. Price-security feedback amplifies fundamental shocks' volatility impact and leads to boom and busts unconnected to fundamentals. We characterize how viability versus fiat currency depends on bitcoin's relative acceptability and inflation protection.
Flight To Bitcoin, Gloria Yang Yu, Jinyuan Zhang
Flight To Bitcoin, Gloria Yang Yu, Jinyuan Zhang
Research Collection Lee Kong Chian School Of Business
This paper uncovers an overlooked motivation of Bitcoin investment: investors hold Bitcoin as an asset on which government authorities have limited influence. Consistent with this motivation, we document a flight-to-Bitcoin (FTB) phenomenon whereby local demand for Bitcoin increases with local economic policy uncertainties and Bitcoin ownership shifts from centralized exchanges to decentralized wallets amid such turbulence. FTB is driven by investors’ lack of confidence in government as FTB is stronger in countries where the confidence in government is low and corruption incidents surge. Finally, a comparison with safe-haven assets further differentiates FTB from flight-to-safety.
Impact Assessment And Measurement With Sustainable Development Goals, Hao Liang, David Fernandez, Mikkel Larsen
Impact Assessment And Measurement With Sustainable Development Goals, Hao Liang, David Fernandez, Mikkel Larsen
Research Collection Lee Kong Chian School Of Business
With the rapid growth of sustainable and responsible investment and widespread adoption of the environmental, social, and governance (ESG) reporting and integration by organizations, how to assess and measure ESG impact has become a critical issue. Although the UN’s Sustainable Development Goals (SDGs) provide a useful framework for investors and organizations globally to align their standards, the SDGs are vague on how to implement them at an organizational or activity level. Current practice relies heavily on third-party ESG rating providers, whose scores mostly apply to public equities only. They also suffer from biases, inconsistencies, and a lack of sufficient disclosure. …
Race And Hedge Funds, Yan Lu, Narayan Y. Naik, Melvyn Teo
Race And Hedge Funds, Yan Lu, Narayan Y. Naik, Melvyn Teo
Research Collection Lee Kong Chian School Of Business
We find that minority operated funds deliver higher alphas, Sharpe ratios, and information ratios than do non-minority operated funds. Moreover, minority fund managers attended more selective schools, worked at higher status investment banks, and are more likely to hold post-graduate degrees. Yet, minority managers raise less start-up capital and attract lower investor flows. Racial homophily fuels investors' appetite for non-minority funds. To address endogeneity, we leverage on an event study of minority manager fund transitions and an instrumental variable analysis that exploits racial imprinting during childhood. The results suggest that minorities face significant barriers to entry in the hedge fund …
The Influence Of International Oil Price Fluctuation On The Exchange Rate Of Countries Along The “Belt And Road”, Yijing Wang, Xueqing Geng, Kun Guo
The Influence Of International Oil Price Fluctuation On The Exchange Rate Of Countries Along The “Belt And Road”, Yijing Wang, Xueqing Geng, Kun Guo
Research Collection Lee Kong Chian School Of Business
In recent years, the international crude oil price has become increasingly volatile. It influences the exchange rate changes of relevant countries through economic growth, price level, international balance of payments, and other channels. Such exchange rate fluctuations have caused certain risks for the development of China’s “Belt and Road” Initiative. This article analyzes the impact of oil price changes on the exchange rates of countries. Because the fluctuation of oil prices and exchange rates has shown the characteristics of multiple time scales, this study used the empirical mode decomposition (EMD) method to obtain the long-cycle and short-cycle sequences of oil …
Treasury Inconvenience Yields During The Covid-19 Crisis, Zhiguo He, Stefan Nagel, Zhaogang Song
Treasury Inconvenience Yields During The Covid-19 Crisis, Zhiguo He, Stefan Nagel, Zhaogang Song
Research Collection Lee Kong Chian School Of Business
In sharp contrast to most previous crisis episodes, the Treasury market experienced severe stress and illiquidity during the COVID-19 crisis, raising concerns that the safe-haven status of US Treasuries may be eroding. We document large shifts in Treasury ownership and temporary accumulation of Treasury and reverse repo positions on dealer balance sheets during this period. We build a dynamic equilibrium asset pricing model in which dealers subject to regulatory balance sheet constraints intermediate demand/supply shocks from habitat agents and provide repo financing to levered investors. The model predicts that Treasury inconvenience yields, measured as the spread between Treasuries and overnight-index …
Concept Links And Return Momentum, Qianqian Du, Dawei Liang, Zilin Chen, Jun Tu
Concept Links And Return Momentum, Qianqian Du, Dawei Liang, Zilin Chen, Jun Tu
Research Collection Lee Kong Chian School Of Business
Unlike traditional asset categories (e.g., industry classifications) that are generally defined clearly, some groups of stocks are tied to certain loosely defined “concepts” (e.g., e-commerce). When investors find it difficult to analyze ambiguous concept-oriented information, information diffuses slowly, creating “concept momentum”. Based on unique concept data in the Chinese stock market, this study constructs a concept-momentum strategy that involves buying stocks from past winning concepts and selling stocks from past losing concepts, which can generate pronounced abnormal returns. Neither risk factors, firm-level momentum, nor industry-level momentum can explain concept momentum. Furthermore, we find that both the underreaction and cross-stock lead-lag …
Climate Change And Sustainability In Asean Countries, David K. Ding, Sarah E. Beh
Climate Change And Sustainability In Asean Countries, David K. Ding, Sarah E. Beh
Research Collection Lee Kong Chian School Of Business
The ASEAN region is one of the most susceptible regions to climate change, with three of its countries—Myanmar, the Philippines, and Thailand—among those that have suffered the greatest fatalities and economic losses because of climate-related disasters. This paper reveals that the ASEAN’s environmental performance is sorely lagging other regions despite evidence of its cohesive and comprehensive efforts to mitigate emissions and build up adaptive capacity to climate-related disasters. Within the ASEAN, there exist gaps in environmental performance between each country. This suggests that increased cooperation between individual ASEAN countries is pertinent for the region to collectively combat climate change. In …
Outsourcing Climate Change, Rui Dai, Rui Duan, Hao Liang, Lilian Ng
Outsourcing Climate Change, Rui Dai, Rui Duan, Hao Liang, Lilian Ng
Research Collection Lee Kong Chian School Of Business
This paper examines whether and how firms combat climate change. Our study provides robust evidence that firms outsource part of their carbon emissions to foreign suppliers and shows how internal and external stakeholders significantly shape firms' environmental policies. Furthermore, firms tend to seek a foreign supplier and decrease their emission abatement efforts as pressure to reduce domestic emissions intensifies. These firms are also less incentivized to develop green technologies. Finally, we find that outsourcing emissions has real and economic consequences, with investors demanding a higher carbon premium for their exposures to carbon risks associated with increased outsourced emissions.