Stablecoins facilitate large volumes of on-chain payments, raising urgent questions about stability and regulation. This paper reviews recent studies on the economic design of stablecoins and the determinants of their price stability. It also introduces a cross-country dataset covering 40 jurisdictions. Using hand-collected documents and an LLM-assisted evaluation, we score legislation, licensing, reserve requirements, disclosure, and currency restrictions. Then, we construct composite indicators of openness and risk containment. By linking these measures to institutional-quality data from the Quality of Government database, we discovered that stronger rule of law, protection of rights, and higher order and security are associated with more comprehensive and enforceable frameworks. This study expands the law-and-finance literature to include digital assets, providing global policy insights and lessons for sustainable financial development.

This paper investigates how historically intensive irrigation systems influenced enduring institutional and cultural traits that constrain firms’ access to finance. Combining geo-climatic measures of irrigation potential with firm-level data from 174 ethnic regions across 146 countries, we find that historically irrigated societies are characterised by weaker property rights, lower trust in financial institutions, and greater reliance on internal financing. Firms in these regions report more severe financial obstacles and higher rejection rates from banks. Implementing a spatial regression discontinuity design around the Lower Rhine and using irrigation potential as an instrument, we provide evidence consistent with a long-term influence of historical irrigation on modern credit frictions. The effects are most evident among privately owned domestic firms, unaffiliated firms, and those with higher female ownership. These findings indicate that ancient irrigation infrastructure is associated with persistent imprints on contemporary financial markets.

As firms increasingly exaggerate artificial intelligence (AI) adoption in disclosures, we analyze market responses to unsubstantiated AI claims. Using BERT-based text classification and AI patent data for U.S. firms (2018-2023), we find that such narratives initially attract investors but ultimately yield negative market reactions and sustained underperformance. Results demonstrate market penalties for AI overclaiming through both short-term investor responses and long-term operational outcomes, extending narrative economics to emerging technologies. The study highlights that while narratives can mobilize attention, markets ultimately punish rhetoric that outpaces implementation.

This paper develops a transparent, data-driven strategy for timing the corporate bond market using real-time macro-financial predictors. We implement a forecast combination approach—conceptually aligned with ensemble learning in machine learning—to dynamically adjust exposure to the bond market based on expected excess returns. The resulting managed portfolio significantly outperforms traditional static strategies and leading factor models, both in- and out-of-sample, delivering higher Sharpe ratios, investor utility, and robustness to transaction costs and leverage constraints. Our strategy proves particularly effective during periods of macroeconomic turbulence, capturing countercyclical return patterns and enhancing portfolio performance when economic conditions shift rapidly. By sidestepping black-box algorithms, our work contributes to the literature on AI-assisted investing by demonstrating how interpretable, real-time prediction models can improve portfolio allocation in fixed-income markets.

We examine how reductions in medical expenditure risk shape household portfolio choices. Exploiting the 2017 inclusion of cancer treatment drugs in China's National Basic Medical Insurance Medicine List, we implement a difference-in-differences design comparing high-risk and low-risk insured individuals. The results show that households facing elevated cancer risk became significantly more likely to hold risky assets after the reform. These findings provide novel causal evidence that mitigating health-related background risk encourages financial risk-taking.

This paper studies the role of directors with prior experience of working in the charity sector (here labelled 'charity directors') in determining the corporate social responsibility (CSR) activity of firms on whose boards they sit. We predict that these charity directors shape the ethical climate of their boards and influence their CSR policies. The findings on firms across 50 countries show that the presence of such directors on a board is positively associated with the firm's environmental and social (E&S) performance. Such charity directors exert more influence following disasters that exogenously increase societal demand for CSR, suggesting a causal interpretation of their role. We further show that charity directors play a more active role in those countries where societal norms stress the importance of E&S issues. This does not seem to be a manifestation of organizational slack, as the link between charity directors and CSR is stronger in the presence of good corporate governance. Furthermore, the death of a charity director leads to a negative market reaction, suggesting that their efforts are in line with shareholder interests.

Using the case of the pogroms that took place in the historical region of the 'Pale of Settlement' in Eastern Europe, this paper analyzes the cultural legacy of ethnic violence and its long-term economic impact on access to finance and on corporate innovation. We find that firms in regions with a higher historical intensity of ethnic persecution face greater financial constraints, relying more on internal finance and experiencing reduced access to external finance. These financial limitations are linked to sluggish innovation activities among present-day firms. We propose that a mechanism of financial antipathy, rooted in a persistent anti-market culture fostered by historical ethnic animosity, explains these effects and reflects a long-term degradation of local social capital. Our results are supported by causal evidence using instrumental variables based on the precursors of historical inter-ethnic violence. The animosity and discrimination against the minority group appear to transfer to the broader economic activities in which that group was involved, creating lasting economic consequences for the majority population - consequences that continue to affect financial development and innovation to the present day.

Download This Paper Open PDF in Browser Add Paper to My Library Share: Permalink Using these links will ensure access to this page indefinitely Copy URL How the Legacy of Climate Cooperation Shapes Corporate Resilience to Crisis 75 Pages Posted: 23 Feb 2024 See all articles by Ruoran ZhaoRuoran ZhaoUniversity of Edinburgh - Edinburgh Business SchoolWenxuan HouUniversity of Edinburgh - Business School Abstract This study reveals that historical climate-induced cooperation significantly enhances firms' resilience Historically, to manage climate uncertainty, extensive cooperation and exchange among communities fostered social capital accumulation. The hypothesis suggests that countries and ethnicities with ancestors who experienced fluctuating temperatures exhibit higher trust levels today, facilitating easier access to finance for firms and improving corporate crisis resilience. Results indicate that pre-industrial climate unpredictability provided firms with fewer financial challenges, particularly in regions historically incentivized to cooperate against climate risks. Long-term climate challenges positively affect firms' crisis survival and recovery capabilities, including during systemic banking crises and COVID-19, by reducing financial constraints through enhanced bank and supply chain lending, attributed to greater social capital. The study confirms this by linking temperature volatility to historical cooperation and present-day social trust. Keywords: Access to finance, Corporate resilience, Social capital, Cooperation, Weather risks Suggested Citation: Suggested Citation Zhao, Ruoran and Hou, Wenxuan, How the Legacy of Climate Cooperation Shapes Corporate Resilience to Crisis. Available at SSRN: https://ssrn.com/abstract=4733668 Ruoran Zhao University of Edinburgh - Edinburgh Business School ( email ) Wenxuan Hou (Contact Author) University of Edinburgh - Business School ( email ) 29 Buccleuch PlaceEDINBURGH, Scotland EH89JSUnited Kingdom Download This Paper Open PDF in Browser Do you have negative results from your research you’d like to share? Submit Negative Results Paper statistics Downloads 3 Abstract Views 20 92 References PlumX Metrics Related eJournals Banking & Insurance eJournal Follow Banking & Insurance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,782 PAPERS 31,548 This Journal is curated by: René M. Stulz at Ohio State University (OSU) - Department of Finance International Corporate Finance eJournal Follow International Corporate Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,034 PAPERS 8,531 This Journal is curated by: René M. Stulz at Ohio State University (OSU) - Department of Finance Monetary Economics: Financial System & Institutions eJournal Follow Monetary Economics: Financial System & Institutions eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 513 PAPERS 11,157 Feedback Feedback to SSRN Feedback (required) Email (required) Submit If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.

Top-down emission reduction target setting results in inability of local governments to develop differentiated plans for emission reduction. Forests have received considerable attention as an important source of carbon sequestration, especially following China's commitment to carbon neutrality. However, studies have paid little attention to spatiotemporal differences of downscale forest carbon sequestration in China over the long term due to data limitations, while also ignoring the large differences in forest carbon sequestration per unit area among different regions. Here, a basic dataset of forest carbon sequestration among counties and grids in China is constructed and the temporal drivers and spatial differences of forest carbon sequestration were investigated from the perspectives of counties' administrative boundaries and 0.5 by 0.5 degree grid combining modelling, GIS spatial analysis and a decomposition method. Changes in forest land use between 2000 and 2020 were also analysed. The results highlight the importance of forests in managing carbon sequestration among all types of terrestrial vegetation and the differences in forest carbon sequestration per unit area. The scale effect increased forest carbon sequestration in the first two periods (2000-2005 and 2005-2010), followed by a decrease since 2010. The intensity effect promoted carbon sequestration; in particular, a dramatic increase was observed from the second (2005-2010) to the third period (2010-2015). The heterogeneity of the scale effect of forest carbon sequestration increased compared to that of the intensity effect, both from administrative and geographical divisions. The scale and intensity effects of counties located in the northern regions of northeast China enhanced forest carbon sequestration, while counties located in southern and central China inhibited it during the study period. The scale effect of grids changed from enhanced to inhibited forest carbon sequestration mainly in northeast China near 120 degrees E, whereas the intensity effect of grids increased from inland regions in central China to eastern coastal regions during the study period. This study provides references for policymakers to set differentiated emission reduction targets considering the local forest carbon sequestration.

Property rights institution is crucial in the process of financial development. We argue that the formation of property rights institutions can be traced back to Neolithic Transformation, when the hunter-gatherers became the first farmers, and that agricultural endowment positively influence financial activities today. To test this hypothesis, we exploit several worldwide geo-referenced datasets. Our results show that an early Neolithic transformation predicts better financial development and property rights institutions of global countries, less financial constraints for firms, and easier access to finance for households. The positive effects hold when we use high-resolution regional measures, and when we instrument Neolithic timing using a set of biogeographical characteristics. Consistent with the financial constraint mitigation argument, our examination on firm sample shows that early transition reduces the sensitivity of investment to cash flows and reduces cash holdings. The effects are stronger for firms with more tangibles, which are more likely to benefit from good property rights institutions. Our results, based on records at the ethnicity-level, provide evidence on how the Neolithic transformation influenced the formation of property rights norms in the pre-industrial period, which helps to explain the persistence of development.

Wars inevitably result in an increase in the workforce of those with military experience. The military training associated with such experience promotes leadership skills and emphasizes a unique value system encompassing integrity, duty, selflessness and self-discipline. We hypothesize that directors with military experience encourage timely disclosure of firm-specific information, which leads to higher stock price informativeness. Based on a sample of listed firms in 46 countries over the period 1999–2016, we document that having a military director on board is positively related to stock price non-synchronicity, informed trading and shorter price response delay. Exploiting exogenous variations in the likelihood of having military directors that arise as a result of variations in the military talent pool, we confirm the causal inference of these results. Our findings suggest that military directors reduce corporate misconduct and improve the timely disclosure of information.

This paper examines the impact of passive investors on Corporate Social Responsibility (CSR) through the lens of a risk-management view of CSR, which emphasizes its insurance-like effects in adverse corporate events. Since passive investors have diversified away most idiosyncratic risks, we predict that they demand less CSR as a strategic approach to manage risks. Using the annual Russell 1000/2000 index reconstitution as an instrument for passive investor ownership, we document evidence consistent with our prediction. The negative effect is more pronounced among better-diversified passive investors and firms that are not in CSR-sensitive industries. We further show that passive investors hold back CSR activities through the channel of "voice" by reducing the number of socially responsible investment (SRI) proposals.

The global crisis of COVID-19 accentuates the existing vulnerabilities and represents a major challenge to sustainable development. This study addresses gender differences in the operation of global firms during the COVID-19 pandemic and is assessing the effectiveness of mitigation policies. Using survey data of 31,463 firms in 40 countries, we document that firms with more than 50% women of total workers (female-dominated firms) are more likely to be permanently closed than the others, and suffer more decrease in number of workers, operation hours, and sales. Female-dominated firms mainly rely on government grants as source of finance compared to other ways of financing, and they indeed are more likely to receive government support than other firms. Both firms’ performance and countries’ policy environment are driving the difference. Drawing on Institutional Theory, we explore the role of female-friendly policy environment on assisting vulnerable firms, and apply an IV approach to address the endogeneity issue. We find that supporting police measures could moderate difficulties faced by female-dominated firms. Our findings highlight the importance of the design of fiscal stimulus packages and social assistance programmes to cope with gender inequality in the Covid-19 pandemic and other possible disasters.

In recent years, digital finance has emerged as a significant trend in the financial industry.

Firms in transition economies often suffer financial constraints. In Initial Public Offerings (IPOs), however, many newly listed Chinese firms raise funds in excess of what is originally planned. This paper examines whether the excess IPO funds are wasted on value-destroying spending or enable firms to take growth opportunities. After controlling for the endogeneity issue, we find that Chinese firms with excess IPO funds have better post-IPO operating performance, especially those with limited financing channels. In revealing the mechanism, we find that excess IPO fundraising alleviates financial constraints and reduces cost of debt.

The Initial Coin Offerings (ICOs) markets have experienced dramatic development and turmoil worldwide. This paper studies signalling effects of CSR among global ICOs by asking if CSR narratives reflect values that highlight the interests of broad stakeholders, reduce information asymmetry, and improve fundraising outcomes. We construct a sample of ICOs across 44 countries from 2014 to 2018 and define socially responsible ICOs as those that serving education, environment, health, and poverty as described in their whitepapers. We find that ICOs from countries with a lower individualism and high benevolence culture are more likely have socially responsible goals. These projects tend to have better disclosure in whitepapers and are more active in engaging with stakeholders on social networking platforms. They are as competitive as ordinary ICOs in fundraising outcomes. Our analyses could advice entrepreneurial ventures on how to build legitimacy and inform investors of the strategy to verify signals in the risky private equity markets.

The historical process of financial technology is complex and diverse, tracing back to the origins of early computerized trading and evolving with the rise of the internet, mobile payments, and blockchain technology.

This paper examines the long-lasting impact of one of the deadliest pandemics in history on present-day financial development. Based on the variation in the severity of the 1918 influenza pandemic (Spanish flu) across the regions within Italy and the variation across 34 countries, we find that people living in the regions with higher historical death rates are associated with a lower level of present-day trust. As a result, firms in these regions face more financial obstacles and have greater difficulty in accessing both bank loans and trade credit. Furthermore, households in these regions display a lower take-up of credit cards and mortgages. They also use Fintech services less. Because laboratory results suggest that an avian H1N1 virus can form clear plaques at a lower temperature, we instrument the death rates with the temperature in autumn of 1918, and find the results remain consistent, confirming the causal link between the severity of the 1918 flu pandemic and present-day financial development.