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This study empirically investigates the effect of external financial market friction on restructuring activities, based on panel data of listed Chinese firms from 2004 to 2018. The results show that there is a positive correlation between financial market friction and the number of restructuring deals. We also find that high financial market friction increases preference for cash payments and the likelihood of mergers and acquisitions. These findings add to the restructuring literature by capturing heterogenous restructuring forms. They also deepen the understanding of the firm boundary theory, by suggesting that firms have incentives to increase their scopes when facing external market distress. [ABSTRACT FROM AUTHOR]

As a typical deviation from profit-maximizing, the revenue-maximizing behavior has explained the strategy of firms in many industries. This research first looks into the Chinese non-life insurance market and finds evidence of revenue-maximizing behavior of the non-life insurers. We construct a model based on game theory to reflect the revenue-maximizing behavior and calculate the Nash equilibrium of the game. The research finds that revenue-maximizing players will incur operation loss in the game; the insurers with less competitive strength will suffer more loss. The theoretical results are hence applied tests by case study on Chinese auto insurance industry. The panel cointegration test and the regression results reveal that a more liberalized regulatory regime will result in a lower price, while large insurers tend to take advantage of their market power to price at a higher level than smaller insurers, this finding corresponding to the result of our theoretical model. [ABSTRACT FROM AUTHOR]

Using a panel cointegration method incorporating structural breaks and cross‐sectional dependence, this paper explores the long‐run equilibrium relationship between innovation and foreign direct investment (FDI) in 30 OECD countries. The results from the panel stationary test show that FDI and innovation variables follow a stationary process with several structural breaks over the period 1999–2018. The results also suggest an equilibrium relationship with structural breaks between FDI and innovation in OECD countries. The panel dynamic OLS model with breaks further reveals that FDI is positively associated with innovation performance and vice versa in OECD countries. Therefore, this paper sheds light on the relationship between FDI and innovation in OECD countries. [ABSTRACT FROM AUTHOR]

This study first investigates different types of sanctions on energy security by employing data from a panel of target countries covering the period 1996–2014 and using the panel fixed effect model. Our evidence indicates that international sanctions do significantly negatively influence the energy security of target countries in some cases. Specifically, unilateral sanctions, U.S. sanctions, economic sanctions, and the intensity of sanctions have a significantly negative impact on energy security. However, plurilateral sanctions, EU sanctions, UN sanctions, and non-economic sanctions have no significant impact on the energy security of target countries. The results of endogeneity concerns are also consistent with the results of the basic regression analysis. Overall, our empirical findings merit particular attention from policy makers of target countries to ensure their energy security when facing international sanctions. [ABSTRACT FROM AUTHOR]

This paper contributes to mitigating the debate on whether carbon taxes have positive or negative effects on climate change by presenting an investigation on the relationship between carbon taxes and renewable energy consumption. Taking advantage of the panel CS-ARDL model, we distinctly inspect the dynamics of the CO2 tax–renewable energy consumption nexus in both short and long runs, based on a dataset of 39 economies covering 1991–2019. Our findings suggest that in the short run, a CO2 tax initially impedes renewable energy consumption but promotes it in the long run, with more significant effects observed in advanced economies. Additionally, the marginal effect of a CO2 tax on renewable energy consumption is not influenced by its initial level or change direction. In accordance with our findings, we provide several implications for decision-makers. • We investigate the relationship between CO2 tax and renewable energy consumption. • The data span covers 39 countries from 1991 to 2019. • A CO2 tax initially impedes renewable energy consumption in the short run. • It tends to promote renewable energy consumption in the long run. • The marginal effect of a CO2 tax on renewable energy consumption is not influenced by its initial level or change direction. [ABSTRACT FROM AUTHOR]

The spillover effects of European Union Allowances (EUA) spot and futures markets are important for investors in order to understand the relevance and risk management of product prices. This paper uses non-linear methods of Granger causality to test the mean spillover relationship between the two markets and then analyzes volatility spillovers between the two by the non-linear TVP-VAR spillover index. The results show that (1) the non-linear Granger causality test better reflects the mean spillover relationship between EUA spot and futures; (2) there is a bidirectional non-linear mean spillover effect between EUA spot and futures prices for the European Union Emissions Trading Scheme (EU ETS) phases II and III; and (3) volatility spillovers, appearing in EUA spot and future markets in both phases, work increasingly strong over time and are vulnerable to financial crises and extreme events. [ABSTRACT FROM AUTHOR]

The rapid spread of COVID-19 in 2020 has brought a profound impact on the global economy and forced countries around the world to adopt different intervention measures. Has COVID-19 and these government interventions affected exchange rate volatility? To answer the question, this research explores the impact of COVID-19 and the relevant government response policies on exchange rate volatility in 20 countries during the period of January 13, 2020 to July 21, 2020 by using system GMM estimation. The empirical results indicate that an increase in confirmed cases does significantly raise exchange rate volatility. The various policies adopted by governments in response to the pandemic, such as closing schools, restrictions on internal movements, and public information campaigns also inhibit exchange rate volatility. Furthermore, the economic response policies implemented by governments during the pandemic, including income support, fiscal measures, and international aid, have a restraining effect on exchange rate volatility. Our findings herein provide valuable information and implications for policymakers and financial investors around the world. [ABSTRACT FROM AUTHOR]

Using panel data consisting of 116 countries, this research investigates the effects of natural hazards on financial systems, including banking system, insurance system, and stock markets. Considering the moderating effects of financial risk, we introduce the interaction between natural hazards and financial risk and also analyze the heterogeneity of income level. Our main conclusions are as follows. (1) Though natural hazards do not significantly influence the banking system directly, they do impact the banking system through financial risk. The moderating effects of natural hazards on the banking system through financial risk are significantly negative. (2) The impacts of natural hazards on the insurance system are dynamic and last over a long period, while the moderating effects of natural hazards through financial risk are significantly negative. (3) The effects of natural hazards on the stock markets and the moderating effects through financial risk are significantly negative. (4) The negative effects of natural hazards on the financial system through financial risk are higher in low-income countries than those in high-income countries. From these results, we offer policy implications such as establishing a complete economic system and lowering the financial risk. [ABSTRACT FROM AUTHOR]

As a key concern for human survival and development, environmental issues have been widely perceived to be impacted by various political institutional factors. A considerable body of literature has attempted to investigate how different political factors affect environmental policymaking and outcomes. In this paper, we critically review related scholarly works published in peer‐reviewed economic journals in the past 30 years, with an emphasis on the empirical literature. Political institutional factors considered in this survey include corruption, the general concept and specific elements of democracy, and the vertical structure of environmental regulation authority within different levels of governments (i.e. environmental federalism). Studies focusing on the interplay of these factors are also highlighted. Based on a critical review, we provide a guide to the datasets, methodologies, and main findings of the literature. We also point out the existing gaps, and put forward suggestions for future research directions. [ABSTRACT FROM AUTHOR]

To investigate the effects of regulation on environmental pollution under Chinese-style fiscal decentralization, this research analyzes annual data over the period 2003 to 2017 covering 30 provinces in China with the spatial economic model. The empirical results show significant spatial agglomeration effects on the emissions of wastewater, sulfur dioxide, and solid waste. Environmental regulation helps reduce discharge of wastewater and solid waste, but does not help reduce the emission of sulfur dioxide; because there is significantly positive externality in treating pollutants with high fluidity, cost is larger than revenue for local governments. The relationship between fiscal decentralization and pollutants shapes an inverted U-shaped curve. We finally offer some implications in accordance with our empirical finding, such as the intensity of environmental regulation should be suitable for economic development, different measures should be taken based on the fluidity of pollutants, and a new evaluation system should be established. [ABSTRACT FROM AUTHOR]

This paper firstly investigates the frequency- and time-varying co-movement and causal relationship between crude oil prices (proxied by the West Texas Intermediate, Brent, Dubai and Nigerian Forcados spot oil prices) and geopolitical risks based on the wavelet analysis over the period of 1985–2016. Overall, our results demonstrate significant dynamic co-movement and causality in the varying time–frequency domains. We find high degree of co-movement between geopolitical risks and oil prices at high frequencies (in the short run) for the entire sample period; however, such a correlation does not exist at low frequencies (in the long run) for most of the sample period. We also find distinct patterns of causal relationships between geopolitical risks and oil prices across different benchmark markets. Results are robust when we control for global economic outlook. Our findings provide valuable implications for policy makers and oil market investors based on the dynamic relationship between geopolitical risks and oil prices. [ABSTRACT FROM AUTHOR]

Background: Loss of the neuromonitoring signal (LOS) during thyroidectomy signifies recurrent laryngeal nerve (RLN) injury, which is one of the common complications, especially by traction injury. Transient intraoperative LOS means spontaneous recovery of nerve function during surgery or within 6-month post-surgery. Few articles discuss intraoperative recovery time and transient LOS, and there is no consensus on the risk factors for RLN traction injury and its recovery course; thus, we wanted to determine the maximum intraoperative recovery time. Materials and methods: This retrospective study included patients who had undergone thyroidectomies at Tainan National Cheng Kung University Hospital between January 2015 and August 2018. A total of 775 patients (with 1000 nerves at risk) who underwent intermittent intraoperative neuromonitoring during thyroidectomy were included in this study. The LOS nerves were divided into 4 groups based on the LOS subtype and the intraoperative status of the recovery. The postoperative vocal cord function was determined by thyroid ultrasound and/or laryngoscope. All the patients would be followed up postoperatively in 2–3 days, 1 week, 2 weeks, and 4–6 weeks. Results: LOS occurred in 67 of 775 (8.6%) patients and in 70 of 1000 nerves at risk (7.0%). There were 2 in 70 nerves (2.9%) with LOS type 1 (segmental nerve traction injury) with intraoperative recovery (Group 1), 5 (7.1%) with LOS type 1 without intraoperative recovery (Group 2), 47 (67.1%) with LOS type 2 (global injury) with intraoperative recovery (Group 3), and 16 (22.8%) with LOS type 2 without intraoperative recovery (Group 4). All LOS type 1 (segmental nerve injury) nerves had pathologic lesions near the RLN or vagus nerve, but none had invaded the nerves (p < 0.05). The resolving time intraoperatively in the 2 patients in Group 1 was 5 min and 10 min, respectively. The resolving time intraoperatively in Group 3 was 1–20 min, and the average time was 4.8 min. In Group 2, 3 injured nerves recovered within 6 weeks postoperatively, and 2 nerves in 12 weeks. In Group 4, all the 16 injured nerves recovered within 6 weeks postoperatively. Conclusion: Applying intermittent intraoperative neuromonitoring during thyroidectomy, traction recurrent laryngeal nerve injury still happened in 7.0%. 70% of the injured nerves recovered the function intraoperatively after releasing the traction, and the longest duration of recovery is 20 min. [ABSTRACT FROM AUTHOR]