Abstract Analyzing the Korean market dataset of 2,958 unique non-financial firms from 2001 to 2024, we examine how different dimensions of geopolitical risk shape firms’ liquidity management. We distinguish between localized geopolitical risk, rooted in inter-Korean tensions, and broader global risk. Using a panel regression framework, we find that localized risk increases firms’ cash holdings, consistent with precautionary motives, whereas global risk reduces cash reserves, suggesting that distant shocks are perceived as less immediate and may create growth opportunities. Decomposing global risk reveals that geopolitical acts exert strong negative effects, which dominate the positive impact of geopolitical threats. These effects are more pronounced among younger and non-manufacturing firms. Crisis-interaction tests with the COVID-19 and global financial crisis periods show that firms’ liquidity decisions are crisis-dependent. Mediation analysis indicates that firms’ long-term investment serves as a transmission channel linking geopolitical risk to cash decisions. Results remain robust across alternative cash measures, additional macro controls, and after addressing endogeneity. Overall, the findings highlight that firms adjust liquidity according to the source and proximity of geopolitical risk, underscoring the need for policies that strengthen short-term liquidity under localized tensions and enhance financing flexibility under global shocks.

Abstract Social trust is a key component of the social fabric behind institutions and economic outcomes. We contribute to this literature by looking at the role of social trust vis-a-vis corporate innovation performance across Chinese provinces. China, though very likely the most extraordinary emerging economy of the XXI century, is an insightful context, a vast territory with a remarkable socio-economic and institutional heterogeneity, particularly across its provinces. Using multiple data sources covering the period 2012–2017 our baseline model shows an increase in patents (applications and granted) in provinces with higher level of social trust. These results remain consistent to several sensitivity analyses including controlling for annual and industry fixed effects, and to a specific identification strategy using 2SLS estimation. Further model extensions also suggest that social trust is more impactful in provinces with lower quality of formal institutions, among non-state owned rather than state-owned firms, and among firms exhibiting more financial constraints. We argue that this work enriches the current debate regarding the role of cultural traits within different institutional frameworks. It also supports the perspective that policies formulated around the mobility of knowledgeable individuals across regions and institutions, along with collaborative research initiatives, can play a pivotal role.

Abstract Although narcissism has received extensive attention in the fields of psychopathology and social psychology, the theoretical understanding of how narcissism moderates consumers’ emotional reactions to brands remains promising yet underdeveloped. As such, this research seeks to utilize narcissism and self-concept to examine whether providing preferential treatment to consumers can influence their brand attitudes. Two experimental studies were conducted to test hypotheses. Study 1 examined the impact of measured consumer narcissism and manipulated self-concept on brand evaluations. A total of 226 participants were randomly assigned to a 2 (self-concept: actual-self vs. ideal-self) × 2 (preferential treatment: common vs. salient) factorial design. Study 2 explored the effect of manipulated narcissism on brand evaluations. A total of 211 participants were randomly assigned to a 2 (narcissism: low vs. high) × 2 (self-concept: actual-self oriented vs. ideal-self oriented) × 2 (preferential treatment: common vs. salient) factorial design. The findings indicate that consumers with varying levels of narcissism and self-concept respond differently to ads featuring different levels of preferential treatment (common vs. salient), leading to varied brand attitudes.

Abstract This paper explores eco-innovations as the key enabler of green transition and the main response to the climate change risks that firms increasingly face in all sectors. Taking a systems perspective and focusing on the barriers to eco-innovation, we discuss the most promising economic levers that could be engaged to accelerate eco-innovations and the green transition. We emphasise the complex and crucial roles in green transition played by policy-making and firm governance practices, firms’ sustainability-oriented and digitalisation capabilities as well as the need for extensive collaborations within and across firms. We bridge the literatures around climate change risks, firm capabilities and environmental policy to present a holistic reflection of what eco-innovations need to encompass in order to serve the green transition.