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Understanding the transmission of volatility across markets is essential for managing risk and financial stability, especially under crisis periods during which an extreme event occurring in one market is easily transmitted to another market. To gain such an understanding and enrich the related literature, we examine in this article the system of volatility spillovers across various equity markets and asset classes using a quantile‐based approach, allowing us to capture spillovers under normal and high volatility states. The sample period is 16 March 2011–10 November 2020 and the employed dataset comprises 12 implied volatility indices representing a forward‐looking measure of uncertainty of global equities, strategic commodities and the US Treasury bond market. The results show that the identity of transmitters and receivers of volatility shocks differ between normal and high volatility states. The US stock market is at the centre of volatility spillovers in the normal volatility state. European and Chinese stock markets and strategic commodities (e.g. crude oil and gold) become major volatility transmitters in the high volatility state, after acting as volatility receivers during normal periods. Furthermore, we study the drivers of implied volatility spillovers using regression models and find that US Default spread contributes to the total volatility spillover index in both volatility states, whereas TED spread plays a significant role in the normal volatility state. As for the role of short rate and risk aversion, it is significant in the high volatility state. These findings matter to the decision‐making process of risk managers and policymakers. [ABSTRACT FROM AUTHOR]

Based on impression management and principal‐agent theory, this article considers Chinese A‐share listed companies from 2014 to 2020 to explore whether vertical interlocking promotes the sustainable development of enterprises from the perspective of environmental, social, and governance (ESG) report greenwashing. The results show that vertical interlocking increases ESG report greenwashing and hides negative ESG information; these results remained valid through a series of robustness tests. Mechanism analysis shows that the purpose of ESG report greenwashing by vertically interlocked executives is to hollow out minority shareholders rather than to cover up earnings management to conceal actual ESG information. The vertical interlocking of executives more significantly promotes ESG report greenwashing when the property is state‐owned, has poor internal supervision mechanisms, has a large executive team and has no senior executives with green experience. This study furthers the relevant research on the factors affecting the sustainable development of enterprises and enriches and expands studies of the role of the vertical interlock from the perspective of information concealing, providing a more in‐depth reference for promoting the sustainable development of enterprises. [ABSTRACT FROM AUTHOR]

We examine the motivation for green mergers and acquisitions (green M&As) in heavily polluting firms by considering the relationship between investors' green M&A preferences and managerial decisions. Using data on green M&As conducted by heavily polluting firms in China for the 2008–2019 period, we construct an index of investors' green M&A preferences, and find that when investors give a higher (lower) premium to green M&As, heavily polluting firms prefer to implement (avoid) green M&As. The relationship is time-varying, consistent with the catering effect. Simultaneously, when compared with non-SOEs, SOEs have a stronger green M&A catering effect. Finally, we find that managers can use investor preference as a substitute for media supervision to promote green M&A of heavily polluting firms. [ABSTRACT FROM AUTHOR]