Investor Protection Research Articles

Does executive environmental protection experience reduce enterprise energy consumption intensity?

This study examines the problem of enterprise energy consumption intensity from the perspective of executive environmental protection experience using data for China's A-share listed enterprises from 2007 to 2021. It is revealed that executive environmental protection experience has negatively impact on the enterprise energy consumption intensity. Moreover, the negative effect of executive environmental protection experience on enterprise energy consumption intensity is particularly pronounced in non-state-owned and low-energy consuming enterprises. According to mechanism study, the three primary approaches are low-carbon technology innovation, enterprise environmental protection investment, and recruiting green investors. In addition, media attention positively moderates the relationship between executive environmental protection experience and enterprise energy consumption intensity. The conclusions help to understand the influence mechanism of executive environmental protection experience on the enterprise energy consumption intensity at the micro level and have implications for pushing enterprise to save energy.

Assessing the role of public, media, and government attention on air pollution governance in China

Attention from social subjects, such as the government, public, and media, serves as a vital diver for urban environmental improvement. While most empirical studies about environmental attention have discussed only one or two of these subjects so far, the literature overlooks the potential collective influence. Drawing on the concept of attention and stakeholder theory, this paper integrates government, public, and media into a unified framework. Utilizing data from Chinese prefecture-level cities spanning from 2012 to 2020, this paper reveals how multi-subject attention influences air quality, including its spatial spillover effects and specific mechanisms. This study finds that 1) multi-subject attention could effectively inhibit air pollution, the direct effects of government, public, and media attention are -7.278, -0.077, and -0.502, respectively. 2) Only the public and media attention have significant cross-city suppressing effects on air pollution. Specifically, the spillover effects of the public and media attention's proxy variables are -4.003 and -1.850. 3) Overall, multi-subject attention can effectively reduce air pollution by establishing environmental laws and regulations, strengthening environmental enforcement, and increasing environmental protection investment. However, there are significant differences in the ways government, public, and media attention improve air quality in local and surrounding cities through these three mechanisms.

Does environmental regulation promote enterprise environmental protection investments? A quasi-natural experiment from river chief system in the Yangtze river delta of China

The investment decisions of enterprises are affected by environmental regulations designed to protect the environment, so environmental regulations may change companies' investment behavior in environmental protection. This study focuses on the River Chief System (RCS)1, an innovative environmental regulation related to river governance which officially launched in China in 2014. Based on data collected from heavy-polluting companies in the Yangtze River Delta, we use the difference-in-differences model (DID Model)2 and focus on RCS's impacts on micro-environmental protection investments. Our findings reveal that the RCS is conducive to expanding the scale of enterprises' environmental protection investments. Industrial structural upgrades appear to have a masking effect wherein the one-sided pursuit of industrial structural upgrades may slow economic growth and cause enterprises to reduce the scale of environmental investments. We recommend that the allocation of environmental investment should be based on the characteristics of local markets and public participation, and maintain a balance between secondary and tertiary industries, government and business incentives.

The Efficiency of Financing Environmental Protection Measures in the Context of Ukraine’s Future Membership in the EU

In recent decades, humanity has had a significant negative impact on the environment. This problem can be solved only by establishing a rational environmental management policy and ensuring an effective financial policy in the context of balancing emissions and expenditures on environmental protection measures. The purpose of this article is to analyze the efficiency of financing environmental protection measures by determining the dependence of pollutant emissions on environmental protection expenditures in Ukraine and the European Union. The following methods were used for the study: analysis, synthesis, generalization, comparison, specification, and statistical and graphical methods. The statistical information was systematized on the basis of open data from the Open Budget web portal, the State Statistics Service, and Eurostat. This study identified the dynamics of revenues from environmental taxes in Ukraine; taxes on air emissions prevail. Most of the expenditures are made from the state budget. According to the functional classification, environmental expenditures are mainly aimed at preventing and eliminating environmental pollution. The dynamics of capital investments in environmental protection were also studied. To assess the effectiveness of the state policy in the field of environmental protection, we analyzed the dependence of pollutant emissions in Ukraine, Poland, and Romania on the amount of environmental expenditures and investments in this area and revenues from environmental tax. In Ukraine, the amount of pollutants released into the atmosphere depends mostly on investments in this area; in Poland—on revenues from environmental taxes; and in Romania—on expenditures on environmental protection. It has been established that the obtained models are adequate and can be used to build future forecasts of pollutant emissions. Directions for the development of financial and environmental policy are proposed. Post-war restoration of the environmental situation should be carried out on the basis of sustainable development, focusing on the European Green Deal A triple-task approach should be implemented, including environmental restoration, the minimization of negative climate change and balanced use of resources, and the expansion of powers of the relevant ministry with a focus on the strategic goals of the state policy. It is necessary to develop methodological recommendations according to international standards to assess the real state of the environment.

The Democratization of Wealth Management: Hedged Mutual Fund Blockchain Protocol

We develop several innovations to bring the best practices of traditional investment funds to the blockchain landscape. Specifically, we illustrate how: (1) fund prices can be updated regularly like mutual funds; (2) performance fees can be charged like hedge funds; (3) mutually hedged blockchain investment funds can operate with investor protection schemes, such as high water marks; and (4) measures to offset trading related slippage costs when redemptions happen. Using our concepts – and blockchain technology – traditional funds can calculate performance fees in a simplified manner and alleviate several operational issues. Blockchain can solve many problems for traditional finance, while tried and tested wealth management techniques can benefit decentralization, speeding its adoption. We provide detailed steps – including mathematical formulations and instructive pointers – to implement these ideas and discuss how our designs overcome several blockchain bottlenecks, making smart contracts smarter. We provide numerical illustrations of several scenarios related to our mechanisms.

FDI IN INDIA: AN ANALYSIS OF LEGAL FRAMEWORKS AND INVESTOR PROTECTIONS

This paper provides a comprehensive analysis of Foreign Direct Investment (FDI) in India, focusing on the multifaceted legal frameworks and investor protection mechanisms that characterize the Indian investment landscape. As one of the world's fastest-growing economies, India presents significant opportunities for foreign investors seeking to tap into its vast market potential. However, the journey is not without challenges, including regulatory complexities, infrastructural inadequacies, and cultural differences that can impede investment processes. This study delves into various government initiatives aimed at fostering a conducive environment for FDI, including reforms that simplify regulations and promote transparency. Additionally, it examines the mechanisms in place to protect investors, such as the role of the Securities and Exchange Board of India (SEBI) and the establishment of grievance redressal systems. The findings underscore the importance of understanding both the opportunities and challenges inherent in the FDI landscape, offering valuable insights for potential investors and policymakers striving to enhance the investment climate in India.

Societal trust and information timeliness: international evidence

We investigate the association between societal trust and the timeliness with which value-relevant information is incorporated into stock price with a large sample of observations collected from 38 countries between 2000 and 2019. We find that in high trust countries, positive (negative) value-relevant information is impounded into stock price in a less (more) timely manner, mitigating imbalanced optimistically biased information timeliness (IOBIT). Results from robustness checks lend strong support to our inferences. Further analyses suggest that the relation between trust and IOBIT is more pronounced in emerging countries and in countries with weak investor protection, and lower levels of religiosity. The relation between trust and IOBIT is less pronounced in firms with strong corporate governance and lower managerial ability. Taken together, our study highlights the significant role that trust plays in affecting the efficiency of capital markets.

Individual investors and accounting information disclosure

This research aimed to understand the scientific productivity regarding accounting information within the environment of individual investors, focusing on the role of brokerage firms and social media in this informational context. The study conducted a bibliometric analysis that involved collecting international articles published over the last 33 years from the Scopus database. The methodology employed was bibliographic, documentary, descriptive, and quantitative. The final sample included 84 articles published between 1989 and 2021. It was observed that there has been an expansion in the discussion of the topic over the analyzed period, with contributions from researchers in 27 different countries. Co-authorship was primarily dominated by three researchers per article, with most authors contributing only one article in the field. The articles employ various approaches to understand the aspects and determinants affecting decision-making and the financial market. Points such as investor awareness, the role of brokerage firms and use of social media, new standards in financial reporting, wisdom of crowds, and investor attention and protection were discussed. Additionally, the research highlights the landscape, opportunities, and challenges in the field. This study becomes relevant for advancing academic knowledge and enhancing the efficiency and transparency of financial markets. It has the potential to trigger significant impacts on both accounting theory and the practical aspects of the financial industry.

РОЗВИТОК ТЕОРІЇ ІНВЕСТИЦІЙНОГО РИНКУ

The paper examines the essence of the investment market and defines its main tasks. The main conditions for the active development of the investment market have been identified and described. The main approaches to the definition of objects, subjects and intermediaries of the investment market are analyzed. The directions and methods of state regulation of the investment market are revealed. The peculiarities of the division of the investment market into the market of real investment and the market of financial investment have been established. The essence of the real investment market is revealed through the market of capital investments, the market of real estate and the market of goods and innovations. At the same time, the financial investment market includes the stock, money and credit markets. The main principles of the functioning of the investment market in Ukraine have been identified, among which the most important are the principles of equality, regulation, investor protection, control, efficiency, transparency and competitiveness. It is proven that the state regulation of the investment market is carried out by two methods: economic, which covers economic aspects that directly affect market decisions, and administrative, which covers administrative aspects of influence on the investment market. The division of investment market subjects depending on the type of assets sold on the investment market is substantiated. Such characteristic signs of the development of the investment market as increasing competition for investment assets, opportunities to support certain sectors of the economy, the use of financial opportunities of accelerated economic development, the collapse of the theory of free economic zones and priority development territories in Ukraine, the dominance of the interests of large economic entities, the gradual increase in the number of small, independent participants in the investment market, the growth of financial literacy of the population and their willingness to invest both directly as private investors and indirectly by acquiring the status of a client of insured companies.

The synergistic impact of incentive and regulatory environmental policies on firms’ environmental performance

The imperative to enhance corporate environmental performance is not only pivotal for a company’s growth but also crucial for fulfilling societal responsibilities and protecting global environmental interests. Recognizing the inadequacies of standalone environmental policies, our study delves into the synergistic effects of incentive-based and regulatory approaches on the environmental performance of listed firms in China. We meticulously examine the interplay between environmental punishment and subsidies over the period of 2015–2019. Our analysis reveals that a strategic combination of punishment and subsidies can substantially improve firms' environmental performance. This effect intensifies with the increasing amounts of fines and subsidies. Additionally, we explore the dynamic effects of policy implementation. Our results indicate that subsidies implemented either a year before or after the imposition of punishment might diminish the effectiveness of standalone environmental penalty policies. Furthermore, our findings suggest that diverse regulatory policies enhance firm environmental performance by promoting investments in environmental protection and fostering green innovation. This discovery highlights the need for a nuanced understanding of policy mixes and their implications for corporate environmental strategies.

The impact of low-carbon city pilot on carbon emissions of high-polluting enterprises − Based on financing constraint perspective

As the major contributor to climate change, enterprises in high-polluting industries have a large deal of potential to reduce their carbon emissions, and the efficacy of that reduction is correlated with the nation's overall environmental pollution and climate change. As a comprehensive environmental regulation policy, whether the low-carbon city pilot (LCCP) can promote the carbon emission reduction of high-polluting enterprises remains to be verified. Based on the data of all high-polluting listed companies in China during the period of 2010–2020, this study evaluates the implementation effect of the LCCP through the multi-period difference-in-differences model, and conducts a series of robustness tests. In addition, the implementation path, heterogeneity and industry spillover effects of the policy are also studied. The study shows that the LCCP policy significantly reduces the growth rate of carbon emissions of enterprises in high-polluting industries by 1.06 percentage points on average. Financing constraints play a negative moderating role between the LCCP and the growth rate of carbon emissions. The mechanism test demonstrates that the LCCP reduces the carbon emission growth rate of enterprises in high-polluting industries through enterprise technological innovation and increasing environmental protection investment level. Further analysis can also find that the LCCP has a more obvious emission reduction effect on state-owned enterprises and enterprises in areas with lax environmental law enforcement. And there is an economic spillover effect but no industrial spillover effect. In view of this, local governments should play a guiding role in the policy, continue to expand the scale of the LCCP and focus on non-state-owned enterprises to promote the green transformation of high-polluting enterprises. This study offers significant theoretical and practical reference value for the further implementation of environmental regulation in the field of environmental governance and the reduction of enterprise carbon emissions.

Institutional determinants of dividend policy of African listed firms

ABSTRACT This paper examines the institutional determinants shaping the dividend policy of 357 non-financial firms listed across 13 African markets. Utilising panel data estimation techniques, our findings indicate that weaker investor protection, increased financial development, high GDP growth, and greater press freedom are linked to higher dividend payouts, while corruption and property rights protection show no significant effects. Notably, financial market development positively impacts dividend policy, whereas the development of financial institutions does not. Policymakers should prioritise several key areas: strengthening investor protection to encourage diverse value creation and improve governance; enhancing financial market development to increase capital access and market efficiency; supporting press freedom to promote transparency and accountability; and fostering GDP growth to improve firm performance and boost dividend distributions. A balanced approach integrating financial development, press freedom, and economic growth is essential for optimising dividend policies and advancing sustainable economic development in Africa.

Institutional mechanisms, ownership and bank risk-taking during crises

Previous studies indicate that prior period investor protection, quality of government/institution and ownership have little to no influence on bank risk-taking around crisis periods. Using contemporaneous data for 40 countries, we show that institutional mechanisms, investor protection, bank regulation and supervision (BRS) rules, and ownership, reduced bank risk-taking around the Global Financial Crisis (GFC) and the Eurozone Crisis/Sovereign Debt Crisis periods. Institutional mechanisms have the strongest risk-reducing impacts on bank risk-taking, whereas foreign and government ownership have the weakest impacts. The greater the distance from bank default the lower the likelihood of crisis regimes. Investor protection increased (decreased) the likelihood of the GFC (Eurozone Crisis) regimes. Government ownership increased (decreased) the likelihood of the GFC (Eurozone Crisis) regimes. Using a generalized bivariate copula function, we untangle the relation between crisis regimes and bank risk-taking by showing that higher risk-taking increases the likelihood of crisis regimes.

When does digital merger and acquisition create shareholder value? An empirical investigation in the Chinese context

In China, acquiring firms are increasingly focused on the immediate financial returns that digital mergers and acquisitions (DM&A) can help them achieve in the stock market, but there is little literature that examines which acquiring firms achieve greater returns. Based on signaling theory, this study conceptualizes DM&A announcements as signals released by the acquiring firms to the stock market and explores the factors influencing the Chinese stock market's reaction to such signals. This research empirically investigates potential influencing factors using a short-term event methodology together with regression analysis based on the data collected in China's Shanghai and Shenzhen stock markets during 2012–2021. The research finds that the Chinese stock market reacts more positively to DM&A announcements for acquiring firms with high executive shareholdings, high executive openness, strong digital innovation capabilities, and in regions with higher levels of investor protection. This study is the first attempt to explore the factors influencing the stock market's response to DM&A in the Chinese context.

OF WAR AND INTERNATIONAL INVESTMENT LAW

AbstractIn the past decade, the practice of investor–State arbitral tribunals addressing investment protection in the context of armed conflict and military occupation has expanded. This has prompted a growing interest in the relationship between international investment law and international humanitarian law (IHL), two regimes with markedly different relationships to war—IHL more pragmatic and international investment law more idealistic. This article argues that, while its lack of pragmatism might render international investment law ineffective in changing how war is conducted, it is the regime under which States are most likely to be held liable for the conduct of war. This is a result of its more robust primary obligations, more effective enforcement mechanisms and large awards of damages. Nevertheless, comparing international investment law and IHL does also reveal some similarities—the legacy, it is argued, of a time when the laws of war were more about protecting private property and neutral commerce than civilians. Putting these two regimes together in this way exposes international law's uneven distribution of protection in war.

Does digital inclusive finance promote carbon emission reduction of enterprises.

Can the information technology revolution lead to carbon emission reduction for firms? This study extends the limited evidence in the literature and investigate the role and mechanism of digital inclusive finance on enterprises' carbon emissions using panel data of 247 prefectural-level cities and 6019 industrial enterprises in China. Our findings indicate that digital inclusive finance can promote enterprise carbon emission reduction, and this effect remains significant after the instrumental variable estimation test. The effect has regional heterogeneity and the development of digital inclusive finance in the area east of Hu Huanyong line has a significant impact on reducing enterprise carbon emission. The role of digital inclusive finance is heterogeneous in enterprise ownership, with a remarkable effect in non-state-owned enterprises. Sub-dimension analysis indicates that the breadth of coverage, depth of use, and degree of digitalization of digital inclusive finance have differential effects on reducing enterprise carbon emissions. The stepwise regression method shows that the impact of digital inclusive finance on enterprise carbon emissions can be passed through effect of technological progress, environmental protection investment and financing constrain. This study has significant reference value for evaluating the impact of financial inclusion and policy implications in formulating differentiated strategies for achieving carbon emission reduction efficiency in enterprises.

서울특별시 도시재생전략계획 변경이 호텔 부동산에 미치는 영향

This paper investigates the effects of the Seoul Metropolitan Government’s urban regeneration strategy plan revision on the hotel real estate market, focusing on legal scrutiny and support measures. The introduction outlines the significance of Seoul’s urban regeneration policy and introduces the potential implications of the revised strategy plan on the real estate market. Particularly emphasized is the role of hotel real estate in local economies and the tourism industry, highlighting the necessity for legal regulations and support measures. The paper is structured into three main sections. Firstly, it provides an overview of the current status and characteristics of Seoul’s hotel real estate market, including investment trends, price fluctuations, and key influencing factors. Secondly, it discusses the Seoul Metropolitan Government’s urban regeneration strategy plan and its amendments, elucidating their implications for the hotel real estate market. Lastly, it delves into the anticipated impact of these changes on the market and proposes corresponding strategies. This includes analyzing the effects of current real estate regulations and predicting the repercussions of the revised urban regeneration plan on the hotel real estate market. Additionally, it suggests legal and supportive measures to ensure sustainable growth and development in Seoul’s hotel real estate sector. In conclusion, the paper proposes policies aimed at revitalizing and sustaining growth in Seoul’s hotel real estate market. Recommendations include easing real estate regulations, enhancing investment attractiveness, strengthening public-private cooperation, and bolstering legal protection for investors. These proposals aim to foster sustainable development and contribute to the economic and tourism vibrancy of the region.

Perlindungan Hukum Terhadap Investor Dalam Kegiatan Investasi Digital Di Indonesia

The purpose of this research is to determine the legal protection for investors in digital investment activities in Indonesia, namely Law No. 8 of 1999 concerning Consumer Protection, Law No. 25 of 2007 concerning Capital Investment, Law No. 11 of 2008 concerning Information and Electronic Transactions (ITE), and BAPPETI Regulation No. 7 of 2022 concerning Determining the List of Crypto Assets That Can Be Traded. This research uses a type of empirical normative research. The study results and discussion of digital investment, such as cryptocurrency, create a legal relationship between investors and traders with rights and obligations regulated by CoFTRA regulations and the Currency Law. Investors have the right to clear information, benefits, and are obliged to understand risks and regulations. Traders are entitled to compensation and must provide information and protect investors' assets. The Investment Law and other rules protect investors, including the Consumer Protection Law and the Information and Electronic Transaction Law. This protection is essential to ensure investor safety from online investment risks, including illegal investments. The strategies to provide legal protection for investors are education, strengthening regulations and supervision, and implementing the precautionary principle. Law enforcement is also essential, including dispute resolution, criminal prosecution, and compensation. Firm and effective law enforcement can help prevent and eradicate illegal investment practices, protect, build trust and security, and encourage digital economic growth in Indonesia.

Positive impacts of green finance on environmental protection investment: Evidence from green finance reform and innovations pilot zone

After long-term development, the global economic level has improved significantly, but environmental issues generated by early extensive development seriously threaten the survival of human beings. China, in particular, urgently needs to promote sustainable development through green finance policies. For this reason, this paper regards the 2017 eight pilot zones in five provinces for green finance reform and innovations (GFRIs) as a quasi-natural experiment, and explores whether it can encourage investment in environmental protection in heavily polluting enterprises by using difference-in-differences-in-differences (DDD) model. The paper finds that: First, GFRIs can bolster investment in environmental protection in heavy polluting enterprises. The results remain consistent after several robustness checks, covering the placebo test, PSM-DID test and so on. Second, mechanism tests find that the policy promotes environmental protection investment by alleviating financing constraints and cutting financing costs. Third, heterogeneity analysis shows that the promotion effect of GFRIs on environmental protection investment is more pronounced for provinces with higher percentages of secondary industry GDP, large-scale enterprises, and enterprises with better ESG management. This paper demonstrates the beneficial influence of GFRIs on promoting the transformation of heavy polluting enterprises and provides suggestions for the improvement of such policies.

Sanctions against Individuals and Investment Law

Abstract The surge in international sanctions following Russia’s invasion of Ukraine in February 2022 marks a new development in international law in general and international investment law in particular. This article examines this recent development and the interplay between international sanctions and international investment law. Furthermore, the article discusses whether investment tribunals will rely on WTO jurisprudence when applying ‘essential security’ provisions in individual cases. By providing an examination of sanctions laws in the context of international investment law, the article highlights the complex dynamic between the right of states to limit investments on the basis of national security vis-á-vis the right of investors to enjoy investment protection as prescribed in numerous International Investment Agreements (IIAs).