Investor Protection Research Articles

Does the green financial policy promote growth quality? Evidence from China

ABSTRACT The deterioration of the pollution problem has heightened the focus on growth quality. However, the relationship between green financial policies and growth quality remains underexplored. This study aims to investigate the causal relationship between China’s green credit policy and growth quality, measured through improvements in urban green total factor productivity (GTFP). To achieve this, we employ a Difference-in-Differences (DID) model, treating the implementation of China’s green credit policy in 2007 as an almost ideal quasi-natural experiment. The empirical findings reveal that (1) the green credit policy has contributed to the improvement of urban GTFP, (2) this positive effect is more pronounced in cities with higher fixed asset investment ratio, abundant educational resources and advanced financial development and (3) the promoting effect is primarily driven by three mechanisms: the upgrading of industrial structure, the driving force of innovations and the increase in environmental protection investment. Overall, this study reveals the micro mechanism behind the positive influence of green financial policies on growth quality. Accordingly, we provide policy-makers of developing countries with valuable insights into tailoring effective strategies for long-term economic development.

Green finance and “greenization” of enterprise’s technology: based on evolutionary game theory and empirical test in China

ABSTRACT Green innovation emerges as a pivotal breakthrough for expediting the shift towards a sustainable green development model. Green Finance Reform and Innovation Pilot Zones (GFRIPZ), functioning as a comprehensive policy initiative, harness diverse policy instruments to catalyse the green transformation of enterprises. Constructing a tripartite game model (government, banks, enterprises), this study sheds light on the green evolution of enterprises’ strategic behaviour with the incentive of GFRIPZ, and explains the underlying mechanism of green finance for green innovation. Data of Chinese listed companies (2007–2019) are used to test the mechanism and specific effect of green finance with the difference-in-differences method. The findings reveal that green finance effectively promotes enterprises’ adoption of green innovation strategies. The mechanism appears to be that green finance promotes green innovation by increasing environmental protection investment, reducing financing constraints and improving total factor productivity. Meanwhile, enterprise digitization and industry-finance integration play a positive synergistic role in connecting green finance and green innovation. Besides, the promoting effect of green finance on green innovation in large, non-polluting and mature enterprises is more prominent relative to that in others. This study elucidates the micro-mechanisms underlying green finance system design that foster green innovation and achieve high-quality economic development.

Green finance and ESG performance of enterprises: Evidence from Green Finance Reform and Innovation Pilot Zone

ABSTRACT Corporate ESG performance holds a critical role in driving the shift towards sustainable production. Green finance promotes the green transformation of enterprises by altering the allocation of financial resources, which plays a crucial role in enhancing corporate ESG performance. Based on data from Chinese listed companies between 2012 and 2020, this study innovatively employs the triple difference methodology to explore the impact of the Green Finance Reform and Innovation Pilot Zones (GFRI) policy on the ESG performance of heavily polluting enterprises. Our findings reveal a significant improvement in ESG performance, especially in environmental protection and social responsibility scores. Mechanism tests reveal that GFRI policy enhances ESG performance by promoting green innovation, increasing investment in environmental protection, and reducing agency costs. For state-owned enterprises and enterprises whose CEO has environmental protection experience, GFRI policy has a greater promotion effect on ESG performance. Furthermore, GFRI policy has stronger effects in regions with stringent environmental regulations and on companies in growth and maturity stages. We further provide new theoretical explanations and empirical evidence for the green transformation of economic development in developing countries.

Growth-tolerance tradeoffs shape the survival outcomes and ecophysiological strategies of Atlantic Forest species in the rehabilitation of mining-impacted sites.

The initial performance of seedlings of tree species from different functional groups, regarding the growth-defense tradeoff, might determine its long-term success during the rehabilitation of mining areas. We monitored the field performance of six native tree species of the Atlantic Forest in the Fundão dam tailing that has been under rehabilitation for 35months. Additionally, we explored the morphophysiological traits driving the superior performance of three species. The study examined the survival strategies of pioneer species (Anadenanthera colubrina, Bixa orellana, Peltophorum dubium) and secondary species (Cedrela fissilis, Handroanthus impetiginosus, Handroanthus serratifolius), as well as the photosynthetic, nutritional, and antioxidant metabolism of the successful species. Most species accumulated excessive Fe in their leaves, except for the pioneer species A. colubrina and P. dubium. However, the nutritional status of the plants, concerning leaf nutrient concentration, was adequate for their growth in the waste. The species A. colubrina, C. fissilis, and H. serratifolius exhibited poor physiological performance, primarily due to substrate compaction and excessive foliar metal concentrations. The successful performance of P. dubium was attributed to avoidance mechanisms, allowing a cost-effective growth-defense tradeoff, thus maintaining photosynthetic efficiency at the expense of energy investment in antioxidant protection. The excess Fe allocation in the photosynthetic tissues of B. orellana was linked to a greater investment in antioxidant metabolism, which was related to the protection of the photosynthetic machinery. The Fe hyperaccumulation in H. impetiginosus led to increased oxidative damage, which was mitigated by investments in tolerance mechanisms, including photosynthetic adjustments (stomatal limitation, non-photochemical energy dissipation), as well as the activation of the enzymatic antioxidant system. The persistence and success of the Atlantic Forest tree species were not related to their ecological successional classification. Instead, it was the different mechanisms of tolerance and avoidance that allowed both pioneer and secondary species to thrive in the impacted area.

The Impact of the River Chief System on Corporate ESG Performance: Evidence from China

This paper takes the implementation of the River Chief System (RCS) as a case study representing government-led environmental governance policies. Based on the sample of 11,654 observations of Chinese A-share-listed companies spanning the years 2009 to 2021, it empirically examines the effect of the RCS on corporate Environmental, Social, and Governance (ESG) performance and the macro- and micro-mechanisms utilizing a staggered Difference-in-Differences (DID) model, controlling for companies’ financial and organizational structure characteristic variables, cities’ economic characteristic variables, and firm-year two-way fixed effects. The results indicate that the implementation of the RCS significantly enhances corporate ESG performance, a conclusion supported by various robustness checks such as the parallel trend test and placebo test. Further investigation reveals that implementing the RCS, at the micro level, boosts corporate green technology innovation, increases environmental protection investment, and, at the macro level, heightens public environmental attention, thus improving corporate ESG performance. Heterogeneity analysis finds that the RCS has a more pronounced impact on enhancing ESG performance for enterprises in central and western regions of China, state-owned enterprises, enterprises with political connections, and enterprises in mature and declining stages. These research findings of this paper provide valuable insights for local governments seeking to enhance the RCS, enrich environmental governance frameworks, and facilitate corporate green transformation.

Advancing Asset Tokenization in the European Union and Latvia: A Regulatory and Policy Perspective

Our study examines the regulatory challenges and opportunities of asset tokenization within the context of the European Union (EU), emphasizing the balance between technological innovation and investor protection in the digital economy. Focusing on 2023 EU Markets in Crypto-Assets Regulation and its application in Latvia, we utilize comparative legal and integrative literature review methodologies to explore how regulatory frameworks can enhance investor accessibility, liquidity, and transparency in digital transactions. Our findings emphasize the importance of strong legal frameworks in promoting economic growth and protecting investors, thereby contributing to a more inclusive financial ecosystem. By examining the regulatory landscape for distributed ledger technology, we provide insights into how regulations can balance innovation in asset management with the imperative of investor protection. We offer a broad analysis of the intersection between legal frameworks and technological advancements in Latvia, illustrating how diverse regulatory approaches can support both economic development and investor interests. Our research originality lies in its focus on the EU’s regulatory diversity, particularly in Latvia, and its implications for broader European and international regulatory environments. Our study contributes to ongoing discussions on optimizing regulatory strategies to facilitate secure and advantageous financial technologies, reflecting the diversity of legal and economic approaches across Europe.

Comply-or-explain regulation and investor protection

Comply-or-explain regulation and investor protection

Does a not-for-profit minority institutional shareholder promote corporate green innovation? A quasi-Natural experiment.

In 2016, the China Securities Regulatory Commission authorized the China Securities Investor Services Center (CSISC), a not-for-profit institution, to buy and hold 100 shares of listed firms in pilot regions. Exploiting CSISC shareholding as an exogenous shock, we employ a difference-in-differences analysis of a sample of listed firms from to 2013-2017 to investigate whether CSISC shareholding can promote corporate green innovation. Our results show that CSISC shareholding play a significant role in promoting corporate green innovation. Channel tests indicate that CSISC shareholding can promote corporate green innovation by mitigating information asymmetry and alleviating agency conflicts. Our additional analyses reveal that corporate governance can moderate the impact of CSISC shareholding on green innovation, and CSISC shareholding has different impacts on green invention patents and green utility model patents. Our additional analyses also report that the difference in corporate green innovation between the treatment and control groups diminishes after implementing CSISC shareholding nationwide. Our findings contribute to the literature on the economic consequences of CSISC shareholding and extend the literature on the determinants of corporate green innovation in investor protection.

Study on current climate change issues and response strategies

Today, human activities are generating massive emissions of greenhouse gases, intensifying the issue of global climate change. This paper provides a comprehensive analysis of the current situation, impacts, and response strategies related to climate change. It also discusses the influences of climate change on agricultural production, socio-economic systems, and human health. Global warming, primarily caused by human-induced greenhouse gas emissions, has intensified due to feedback effects. Frequent extreme weather events and significant changes in ecosystems have profoundly affected agricultural production, socio-economic systems, and human health. To tackle climate change, mitigation and adaptation approaches are suggested, including the development of clean energy, ecosystem conservation, technological innovation, and policy support. It emphasizes the importance of international cooperation and points out that enhancing public education and participation is key to addressing climate change. In the future, global attention to and research on climate change must be continuously strengthened, and response strategies need to be constantly improved. Nations should further increase their investments in clean energy development, ecosystem protection, and technological innovation, faithfully fulfil international cooperation agreements, and jointly work to slow down the pace of climate change.

Willingness to pay for blue-green space and koala habitat protection following a Covid-19 versus bushfire experimental prime

Abstract Community-supported investment in blue-green space and fauna habitat protection is important, yet the drivers of willingness to pay (WTP) are poorly understood. Moreover, research on WTP for environmental services rarely considers the role of context in determining which services donors prefer. We address these gaps with a novel experimental approach (N = 360), randomly assigning participants to a condition priming either Covid19, the Australian 2019–2020 bushfires, or to one of two control conditions. We measured subsequent WTP for blue-green space and koala habitat, finding mostly non-significant effects for experimental condition on WTP, preparedness to donate, or the importance placed on investment. Both WTP for blue-green space and koala habitat was significantly associated with experience with bushfire, left-leaning political orientation, and higher blue-green space usage. Assessment of WTP for blue-green space in Australian cities indicates a positive attitude, especially among active users, although people are still willing to contribute to koala protection.

Role of digital technology in epidemic control: a scoping review on COVID-19 and Ebola

ObjectiveTo synthesise the role of digital technologies in epidemic control and prevention, focussing on Ebola and COVID-19.DesignA scoping review.Data sourcesA systematic search was done on PubMed, HINARI, Web of Science,...

Business Environment Optimization Effects on Enterprise Environmental Protection Investment

The business environment is essential for enterprise survival and development. A favorable business environment promotes high-quality enterprise development; however, research on its impact and mechanism regarding corporate environmental protection investment is lacking. This study examined China's Shanghai and Shenzhen A–share listed companies from 2010 to 2020 to explore the relation between the business environment and corporate environmental protection investment. We found that a positive business environment contributes to increased corporate environmental protection investment, alleviating financing constraints and promoting digital transformation as essential mechanisms. Heterogeneity analysis demonstrates that this promotion effect was more pronounced among nonstate-owned enterprises and nonheavy-polluting industry firms. This study augments the literature concerning business environments and firms’ environmental protection investment by elucidating their impact mechanism and providing a reference for government departments in optimizing business environments.

How does voluntary environmental information disclosure affect corporate green financing capability? Evidence from Chinese heavy polluting industries

Compared with traditional financing, green financing has certain advantages in promoting firms' green transformation and advancing sustainable social development, as related funds are primarily used for environmental project investments and interest rates are relatively lower. Therefore, improving corporate green financing capability is a valuable topic for research, particularly for heavy polluting firms. Corporate voluntary environmental information disclosure (EID), i.e., a new type of informal voluntary environmental regulation, may be an effective way to improve firms' green financing capabilities, as it can provide corporate environmental information to financial institutions and reduce the information gap. However, limited studies have explored the potential relationship between them. To fill this gap, our study adopts panel data of heavy polluting firms during 2008–2022 to explore whether and how voluntary EID affects corporate green financing capabilities in China. Benchmark, robustness, and endogeneity tests confirm that the more environmental information is voluntarily disclosed on different aspects, the better corporate green financing capability will be enhanced. In addition, we conduct several supplementary tests for in-depth exploration, with three notable findings. First, corporate voluntary EID has a stronger influence on green financing capability when a firm has more environmental protection investments and higher returns on such investments. Second, voluntary EID has a stronger impact on non-politically connected firms (in the eastern region) than on politically connect firms (in middle and western regions). Third, voluntary EID can improve firms’ green financing capabilities, which increases research and development investments and improves green total factor productivity. Our study confirms the significance of corporate voluntary EID in improving green financing capability and further promoting sustainable social development, in addition to providing recommendations for policymakers and corporate managers on how to enhance corporate green financing capability.

SEBI’S ATTITUDE TOWARDS MARKET PLAYERS AND PRESENT STATUS OF INVESTORS

Small investors contribute significantly to national savings, which may be utilized to develop the nation's capital. In recent memory, investor complaints have escalated, and in order to safeguard investors, SEBI has issued recommendations for issuing businesses, brokers, and other intermediaries. SEBI is the regulator for the securities market in India. It was formed officially by the Government of India. It has been found that SEBI played a major role in the development of the Indian capital market. The present study aims to analyse the roles and responsibilities of a capital market regulator and to assess the SEBI’s attitude towards market players. SEBI should develop a specialized investment protection website. This website should receive widespread awareness. Every prospectus for an IPO should include a sentence advising investors to check the Investors Protection website before investing. SEBI automatically receives a copy of any complaints submitted with the stock exchange or investor organization. The issue may be tracked, and if it is not handled within an acceptable time window, an automated notice can appear on SEBI's server. This would indicate to SEBI that it should intervene now to examine further in this specific issue.

FISCAL DECENTRALIZATION: A BIBLIOMETRIC ANALYSIS OF FIFTY YEARS OF STUDY

Abstract. Investment activities in the Republic of Kazakhstan are fraught with significant corruption risks, stemming from imperfect legislation and the intricacies of bureaucratic procedures involved in implementing investment projects. This article aims to investigate the role of the prosecutor's office in preventing corruption within the realm of private investment in Kazakhstan. To achieve this objective, an analysis of regulatory legal documents governing the prosecutor's office's mandate to safeguard the interests of private investors in Kazakhstan was conducted. Additionally, a content analysis of publications detailing successful cases of investor support within the prosecutor's office was undertaken. The study culminates in an evaluation of the effectiveness of this anticorruption mechanism as an alternative to the utilization of corrupt practices by private enterprises in their interactions with authorities. Keywords: corruption, investment, protection of investors, prosecutor’s office, anti-corruption mechanism.

Investment Law and the Right to Regulate Public Health and Environmental Protection

This article explores the tension between investment law protections and a state’s right to regulate public health and environmental protection. International investment agreements (IIAs) provide strong protections for foreign investors, often limiting host states’ regulatory freedoms. This dynamic can create challenges when states seek to implement policies for public welfare that may impact foreign investments. The study examines case law, such as Philip Morris v. Uruguay and Vattenfall v. Germany, to highlight conflicts between investor rights and regulatory measures. Through a review of recent treaties, including the Comprehensive Economic and Trade Agreement (CETA) and the United States-Mexico-Canada Agreement (USMCA), the article identifies emerging mechanisms like explicit right-to-regulate clauses, carve-outs, and interpretive guidelines designed to balance investment protection with the public interest. The results indicate that some protections are provided by new treaty provisions, but interpretive flexibility and a lack of automaticity in procedural aspects of arbitration can create as-yet unresolved challenges. It recommends that investment law reforms go further and focus on placing the public interest at the heart of investment law, establishing an architecture supportive of sustainable development, and enabling states to respond to pressing health and environmental problems without running the risk of investor claims.

Protecting American investors in emerging markets: A comparative study

Emerging markets provide significant opportunities for American investors, but they also carry substantial risks, including political instability, regulatory unpredictability, and currency volatility. This comparative study examines the key challenges faced by American investors in emerging markets such as Brazil, India, and China, focusing on strategies and legal mechanisms available to protect their investments. The paper explores the role of bilateral investment treaties, which provide a legal framework ensuring fair treatment, safeguards against expropriation, and recourse through international arbitration. Additionally, the study evaluates the effectiveness of U.S. regulations such as the Foreign Corrupt Practices Act, which has helped reduce corruption risks but can create challenges in high-risk markets. Drawing on economic and legal data, this article proposes several policy recommendations to enhance protections for American investors, including the expansion of bilateral investment treaties and the strengthening of international arbitration mechanisms. Ultimately, this study underscores the need for robust legal and financial frameworks to foster investor confidence and promote stable growth in emerging markets.

Investor Protection and Corporate Responsibility in Multinational Holding Bankruptcy: The Virtue Dragon Indonesia and China Case

This research examines the implications of holding company bankruptcy on subsidiaries in Indonesia, focusing on capital market law and investor protection. The bankruptcy of a holding company can lead to operational disruptions for its subsidiaries, affecting market confidence and devaluing investments. Investors in these subsidiaries may face risks of unfair treatment during the bankruptcy process. The study explores Indonesia's legal framework, including the bankruptcy law and regulations enforced by the Otoritas Jasa Keuangan (OJK), which are aimed at protecting investors' rights and ensuring transparency. The case of Virtue Dragon Indonesia, a subsidiary of a Chinese holding company, highlights the complexities of cross-border bankruptcy and the challenges of safeguarding minority investors. The research underscores the need for stronger legal protections for investors and suggests improvements in Indonesia’s capital market laws to enhance investor confidence and market integrity.

Cross-Platform Advertising Integration Strategies from a Brand Communication Perspective Research

With the rapid development of digitalization and multi-media environment, cross-platform advertising integration has gradually become an important way of brand communication. From the perspective of brand communication and based on the significance of cross-platform advertising integration, this study puts forward the strategies of improving laws and regulations and regulatory mechanisms, strengthening R&D investment in data privacy and security protection, and cultivating and introducing composite talents in response to the problems of unsound laws, regulations and regulatory mechanisms, outstanding data privacy and security issues, and the lack of composite talents that exist in the cross-platform advertising integration, which provides a new perspective on the construction of the theoretical system of cross-platform advertising integration, and also provides a reference for brand communication practice in the digital era. It provides a new perspective for the construction of the theoretical system of cross-platform advertising integration, and also provides a reference for the communication practice of brands in the digital era.

The Impact of Complex Estimates of IFRS-9 on The Proportion of Key Audit Matters (KAM) Disclosures: Evidence from Jordanian Capital Market

This study seeks to provide fresh empirical evidence on the way complex IFRS-9 estimations affect Key Audit Matters (KAM) disclosure in Jordan, an impoverished nation. A robust year-industry fixed-effects OLS regression model has been employed to test the developed hypotheses over the period from 2017 to 2022. The investigation showed a substantial statistical relationship between each IFRS-9 complex estimate category (proxied by financial assets held for trade, sale, or maturity) and KAM proportions. The results concurred with nations that IFRS-9 caused capital market uncertainty. To reduce information asymmetry, auditors provide a large number of KAM in their reports to evaluate and appraise complicated estimations. This research may be utilised to set a financial reporting and disclosure policy for unfavourable scenarios. This study updates policymakers and standard-setters on the impact of ISA-701's KAM disclosure requirement. KAM research is helpful for evaluating confidence interval disclosures, external audits, and KAM disclosures' utility following IFRS implementation. Thus, regulatory agencies, standard-setters, stakeholders, and audit report consumers interested in KAM disclosures and ISA-701 implementation in developing nations could gain from this research. The findings may motivate academia to use similar data to other emerging nations to better understand how reporting KAMs influences audit methods. To author knowledge, this is one of the first empirical research to examine the influence of post-IFRS-9 audit processes and the first to refer to its correlation with KAM disclosures. This study is the first to evidence on the impact of IFRS-complex estimations on KAM proportions. How auditors handle investor protection after IFRS introduction and its extended reporting obligations in underdeveloped economies have received little attention. This study examines audit activity under a weak legal framework, unlike other auditing studies, which are highly regulated.