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This research investigates the bidirectional cointegration relationship between environmental, social, and governance (ESG) performance and corporate green innovation with a panel of 770 Chinese listed firms during the 2011–2020. We find that there exists a long‐run bidirectional comovement between ESG performance and corporate green innovation output. ESG performance exerts a short‐run and long‐run causal link with green innovation output. The panel cointegration test and VECM estimation also support that ESG performance moves together with green innovation output for clean industries, while ESG performance only presents a long‐run relationship to green invention patents output for pollution industries. Our findings offer important value for policymakers and enterprises to propose an effective strategy to stimulate green innovation and improve ESG score. [ABSTRACT FROM AUTHOR]

What are the relationships between corporate environmental, social, and governance (ESG), corporate social responsibility (CSR), and stock returns? Existing research has affirmed the impact of ESG or CSR on stock returns, but the discussion on the cointegration relationship among these three variables is still insufficient. Therefore, we use panel data of ESG ratings, CSR scores, and annual stock returns of 684 Chinese‐listed companies from 2011 to 2020 to verify the relationship between the variables through panel CADF and Westerlund tests. Meanwhile, we use PMG estimation to find that, in the long run, CSR significantly promotes the improvement of corporate stock returns, but ESG hurts the stock returns of most corporates. Further research proves that the impact of ESG on stock returns closely relates to corporate profitability. Our findings provide valuable policy implications for both developing and semi‐efficient market countries to help them improve their ESG and CSR performance. [ABSTRACT FROM AUTHOR]

This study investigates the long-run co-movement between venture capital and technological innovation for 28 provinces (including autonomous regions) in China, using the panel cointegration and panel-based error correction model over the 2001-2012 period. Our results confirm that venture capital and innovation have long-run cointegrated relationships as well as bidirectional causality for the whole country. Analysis of sub-samples again discovers similar results in both the eastern and central regions, but not in the western region. The policy implication shows that China's development of innovations should be based on more venture capital input and that the government should establish a long-run innovation policy to accelerate the development of venture capital. We also offer several constructive suggestions for governments in the western provinces. [ABSTRACT FROM AUTHOR]

The issue of asymmetry and nonlinearity in the context of economic voting was proposed as far back as the 1970s. The aim of this paper is to revisit the economic voting phenomenon by investigating the asymmetric cointegration between government popularity and economic conditions in Taiwan over the period from 1992 to 2007. We employ an advanced threshold autoregressive model and find strong evidence of threshold cointegration relationships between our observed variables. Furthermore, an asymmetric error correction model indicates that voters use different economic indicators to evaluate government popularity in different regimes and the speed of adjustment to the long-run equilibrium is more rapid in the lower regime and slower in the higher regime. Finally, the evidence shows that the economic voting behavior is supported by the presence of the threshold effects. Based on the nonlinear, asymmetric and threshold effects, we are able to provide several critical implications concerning the governance of the incumbent political party, particularly, in relation to the promotion of economic policy aimed at improving its popularity. [ABSTRACT FROM AUTHOR]

This paper adopts an advanced panel cointegration method which incorporates multiple structural breaks to examine the long-run relationship between real output (RGDP) and the Konjunkturforschungsstelle (KOF) index of globalization (overall and its three main sub-indices), employing annual data of G7 countries from 1970 to 2006. Our empirical findings provide strong evidence that overall globalization and its social dimension are cointegrated with RGDP, and most of the structural break points are discovered during the period of the oil crisis (the mid-1970s) and the process of European Union integration. In addition, in evaluating whether or not the structural breaks affect the RGDP through globalization, we discover that both the overall globalization index and the social globalization index have a directly positive impact on RGDP but indirectly exhibit negative impacts on real output via the channel of social globalization. [ABSTRACT FROM AUTHOR]

A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999 ) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS. [ABSTRACT FROM AUTHOR]

Using panel data unit root tests and panel cointegration tests, as well as estimation techniques appropriate for heterogeneous panels such as the full modified OLS, this paper re-examines the long-run co-movement and the causal relationship between GDP and social security expenditure in a bivariate model, employing data on 25 OECD countries from 1980 to 2001. Our cointegration test results show strong evidence in favour of the existence of a long-run equilibrium cointegrating relationship between GDP and social security expenditure after allowing for a heterogeneous country effect. Regarding the panel-based error correction model, we find that GDP and social security expenditure lack short-run causality, but reveal the existence of long-run bidirectional causality. This shows that, in the long run, economic growth must be based on a social welfare policy that should be carried out, and economic growth can facilitate contiguous development in a social welfare policy. Lastly, we also provide evidence to support that social security expenditure can affect growth through the savings and human capital accumulation in OECD countries. [ABSTRACT FROM AUTHOR]

This paper investigates the long-run cointegration relationship between shale gas production and natural gas prices during the period from January 2007 to December 2016 for 16 states in the U.S., by utilizing the Generalized Least Squares (GLS) based univariate unit root test, the PANICCA panel unit root test, the cointegration tests of Gregory and Hansen (1996), Westerlund and Edgerton (2008) as well as Banerjee and Carrión-i-Silvestre (2015) tests with structural breaks. The empirical finding shows that the mean-reverting property exists in both variables, and most structural breaks emerge around 2007–2009 and 2011–2014, during the period when shale gas production sharply increased, the global financial crisis erupted, and external energy shocks emerged. We also find a strong cointegrated relationship, denoting a long-run equilibrium property appears among the variables. Overall, we demonstrate an interaction nexus between price and production variables and put forward some vital implications for authorities and gas market participants. Unlabelled Image • This paper investigates the long-run trend of shale gas development by applying unit root tests structural breaks. • Employing monthly data from January 2007 to December 2016 of shale gas withdrawals in the U.S. • Our results also indicate that most external shocks to shale gas productions are transitory and that the trend soon converges • Most structural breaks emerge around 2007–2011. [ABSTRACT FROM AUTHOR]

Globally, nations are increasingly focusing on green innovation in their environmental protection efforts as part of sustainable development, and digital finance is playing a vital role in enhancing green innovation. Employing annual data from 220 prefecture-level cities between 2011 and 2019, we empirically analyze the connections among environmental performance, digital finance, and green innovation via the Karavias panel unit root test with structural breaks, the Gregory-Hansen structural break cointegration test and pooled mean group (PMG) estimation. The following four points are the key conclusions: (1) The results support cointegration links between these variables when structural breaks are considered. (2) The PMG estimation outcomes indicate that green innovation and digital finance may have a favorable long-term effect on environmental performance. (3) For better environmental performance and more green innovation, the level of digitalization of digital finance is crucial. (4) The potential of digital finance and green innovation to improve environmental performance has not been fully realized in the western region of China. • The relationship among environmental performance, green innovation, and digital finance is investigated. • The entropy method is used to evaluate the environmental performance. • Green innovation benefits environmental performance in the long run. • Digital finance improves environmental performance through providing financial support to green innovation. • There is cointegration relationship among the three variables after considering structural breaks. [ABSTRACT FROM AUTHOR]