Pub Date : 2026-01-01Epub Date: 2025-10-24DOI: 10.1016/j.jcorpfin.2025.102909
Muhan Hu, Linxiang Ma
We examine how competition affects the economic returns firms derive from their patented innovations. Using a stock market-based measure that reflects the discounted cash flows of newly granted patents, we document a robust negative relationship between competition intensity and the economic value of patents. To establish causality, we implement a quasi-experimental design and consider horizontal M&A as events that are likely to reduce competition for non-merging industry peers. Leveraging the random timing of peers’ patent grant dates within a narrow window around M&A announcements, we show that patents granted immediately after such events on average experience a 2.8% increase in value. This effect is stronger for deals that are more likely to be anti-competitive, but is absent for non-horizontal mergers that are unlikely to alter competition intensity. Overall, we offer new insights into the competition-innovation relationship by showing that competition weakens the economic returns that incentivize firm innovation.
{"title":"Competition and the value of innovation","authors":"Muhan Hu, Linxiang Ma","doi":"10.1016/j.jcorpfin.2025.102909","DOIUrl":"10.1016/j.jcorpfin.2025.102909","url":null,"abstract":"<div><div>We examine how competition affects the economic returns firms derive from their patented innovations. Using a stock market-based measure that reflects the discounted cash flows of newly granted patents, we document a robust negative relationship between competition intensity and the economic value of patents. To establish causality, we implement a quasi-experimental design and consider horizontal M&A as events that are likely to reduce competition for non-merging industry peers. Leveraging the random timing of peers’ patent grant dates within a narrow window around M&A announcements, we show that patents granted immediately after such events on average experience a 2.8% increase in value. This effect is stronger for deals that are more likely to be anti-competitive, but is absent for non-horizontal mergers that are unlikely to alter competition intensity. Overall, we offer new insights into the competition-innovation relationship by showing that competition weakens the economic returns that incentivize firm innovation.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102909"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-09DOI: 10.1016/j.jcorpfin.2025.102904
Rodney J. Garratt , Maarten R.C. van Oordt
This paper develops the concept of a “crypto multiplier,” which measures the equilibrium response of a cryptocurrency’s market capitalization to aggregate inflows and outflows of investors’ funds. The crypto multiplier takes high values when a large share of a cryptocurrency’s coins is held as an investment rather than being used as a means of payment. Blockchain data show that the share of coins held for the purpose of making payments is rather small for major cryptocurrencies suggesting large crypto multipliers. Our results highlight the need for market participants to be vigilant when accepting block holdings of a cryptocurrency as collateral or as compensation for seed funding. The crypto multiplier indicates that the liquidation value of block holdings of cryptocurrencies can be substantially below their prevailing market values.
{"title":"The crypto multiplier","authors":"Rodney J. Garratt , Maarten R.C. van Oordt","doi":"10.1016/j.jcorpfin.2025.102904","DOIUrl":"10.1016/j.jcorpfin.2025.102904","url":null,"abstract":"<div><div>This paper develops the concept of a “crypto multiplier,” which measures the equilibrium response of a cryptocurrency’s market capitalization to aggregate inflows and outflows of investors’ funds. The crypto multiplier takes high values when a large share of a cryptocurrency’s coins is held as an investment rather than being used as a means of payment. Blockchain data show that the share of coins held for the purpose of making payments is rather small for major cryptocurrencies suggesting large crypto multipliers. Our results highlight the need for market participants to be vigilant when accepting block holdings of a cryptocurrency as collateral or as compensation for seed funding. The crypto multiplier indicates that the liquidation value of block holdings of cryptocurrencies can be substantially below their prevailing market values.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102904"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325954","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-22DOI: 10.1016/j.jcorpfin.2025.102911
Soomi Jang , Tunde Kovacs , Heeick Choi
This study uses an external shock, the 2008 Court of Appeals Federal Circuit (CAFC) ruling that weakened patent property rights of inventor-employees and strengthened those of employers, to examine employee option grants' effectiveness in motivating innovation. Firms that experience a decrease in the property rights of inventor-employees subsequently increase the value, number, delta, and vega of employee option grants, as well as innovation activities following the CAFC ruling. Our evidence suggests that employee stock option compensation is an important factor motivating employees to innovate.
{"title":"Employee stock options and innovation: Evidence from an exogenous shock to employee intellectual property rights","authors":"Soomi Jang , Tunde Kovacs , Heeick Choi","doi":"10.1016/j.jcorpfin.2025.102911","DOIUrl":"10.1016/j.jcorpfin.2025.102911","url":null,"abstract":"<div><div>This study uses an external shock, the 2008 Court of Appeals Federal Circuit (CAFC) ruling that weakened patent property rights of inventor-employees and strengthened those of employers, to examine employee option grants' effectiveness in motivating innovation. Firms that experience a decrease in the property rights of inventor-employees subsequently increase the value, number, delta, and vega of employee option grants, as well as innovation activities following the CAFC ruling. Our evidence suggests that employee stock option compensation is an important factor motivating employees to innovate.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102911"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-21DOI: 10.1016/j.jcorpfin.2025.102908
Matthias Nadler, Katrin Schuler, Fabian Schär
Reliable asset price data are critical for the functioning of decentralized finance (DeFi) protocols, particularly those involving collateralized lending. The accuracy of blockchain-based price oracles directly affects key processes such as collateral valuation, liquidation, and risk management. This paper presents a comprehensive empirical analysis of Chainlink Price Feeds (CPFs), the dominant oracle infrastructure in DeFi. We compile a novel dataset of over 150 million observations from 40 CPFs on Ethereum over an 18-month period, matched to benchmark prices from a centralized exchange. To identify the determinants of oracle inaccuracy, we estimate pooled OLS and fixed effects regressions, relating price deviations to design parameters, reporter dynamics, and market conditions. We then introduce a Markov-like state transition framework to model the resolution of target corridor violations, using multinomial logistic regression to estimate transition probabilities. Finally, we exploit position-level data from one of the largest decentralized lending markets and apply entity fixed effects regressions to examine how users adjust collateralization in response to oracle design. Our findings highlight economically significant deviations that are systematically related to oracle accuracy configurations and market stress, and show that users internalize these risks in their financial decisions. The results offer new insights for the design of resilient oracle systems and the management of risk in decentralized financial markets.
{"title":"Blockchain price oracles: Accuracy and violation recovery","authors":"Matthias Nadler, Katrin Schuler, Fabian Schär","doi":"10.1016/j.jcorpfin.2025.102908","DOIUrl":"10.1016/j.jcorpfin.2025.102908","url":null,"abstract":"<div><div>Reliable asset price data are critical for the functioning of decentralized finance (DeFi) protocols, particularly those involving collateralized lending. The accuracy of blockchain-based price oracles directly affects key processes such as collateral valuation, liquidation, and risk management. This paper presents a comprehensive empirical analysis of Chainlink Price Feeds (CPFs), the dominant oracle infrastructure in DeFi. We compile a novel dataset of over 150 million observations from 40 CPFs on Ethereum over an 18-month period, matched to benchmark prices from a centralized exchange. To identify the determinants of oracle inaccuracy, we estimate pooled OLS and fixed effects regressions, relating price deviations to design parameters, reporter dynamics, and market conditions. We then introduce a Markov-like state transition framework to model the resolution of target corridor violations, using multinomial logistic regression to estimate transition probabilities. Finally, we exploit position-level data from one of the largest decentralized lending markets and apply entity fixed effects regressions to examine how users adjust collateralization in response to oracle design. Our findings highlight economically significant deviations that are systematically related to oracle accuracy configurations and market stress, and show that users internalize these risks in their financial decisions. The results offer new insights for the design of resilient oracle systems and the management of risk in decentralized financial markets.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102908"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145417375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-11-04DOI: 10.1016/j.jcorpfin.2025.102915
Anand M. Goel , Hongju Ren
We document that culture and cultural perception both influence financial decisions. We examine the impact of clan culture, an important dimension of Chinese culture, on individual lending behavior. Using data from RenRenDai, a leading peer-to-peer lending platform in China, we find that borrowers from regions with higher clan culture are more likely to get loans funded, attract larger bids from lenders, get loans funded faster, are less likely to default, and repay a larger fraction of their loans. These effects are more pronounced when there is greater information asymmetry, borrowers are older or from rural areas, and the legal environment is weaker. These results are robust to alternative measures of clan culture. Lenders rely less on culture as a signal of creditworthiness for borrowers with observable default history. Our results suggest that clan culture acts as a substitute for formal institutional mechanisms and participants in the peer-to-peer market use information about clan culture as a proxy for economic factors, improving efficiency of financial decisions.
{"title":"Impact of culture in peer-to-peer lending","authors":"Anand M. Goel , Hongju Ren","doi":"10.1016/j.jcorpfin.2025.102915","DOIUrl":"10.1016/j.jcorpfin.2025.102915","url":null,"abstract":"<div><div>We document that culture and cultural perception both influence financial decisions. We examine the impact of clan culture, an important dimension of Chinese culture, on individual lending behavior. Using data from RenRenDai, a leading peer-to-peer lending platform in China, we find that borrowers from regions with higher clan culture are more likely to get loans funded, attract larger bids from lenders, get loans funded faster, are less likely to default, and repay a larger fraction of their loans. These effects are more pronounced when there is greater information asymmetry, borrowers are older or from rural areas, and the legal environment is weaker. These results are robust to alternative measures of clan culture. Lenders rely less on culture as a signal of creditworthiness for borrowers with observable default history. Our results suggest that clan culture acts as a substitute for formal institutional mechanisms and participants in the peer-to-peer market use information about clan culture as a proxy for economic factors, improving efficiency of financial decisions.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102915"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145575920","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-10DOI: 10.1016/j.jcorpfin.2025.102905
Siti Farida , Jana P. Fidrmuc , Chendi Zhang
We show that acquisitions of private targets increase the quantity, quality, and value of the acquiring firms’ patents more than acquisitions of public targets. Private-target acquisitions also foster significantly greater innovation synergies, increase the total number of inventors, and promote new collaborations among inventors. These outcomes are associated with the acquirers’ expertise in identifying innovative private targets, are more pronounced in industries with breakthrough technologies, and are not driven by targets with existing patent portfolios. We also find that the patenting increases explain away the higher announcement returns for private versus public-target acquisitions. Overall, our results underscore the role of complementary innovation capabilities in driving value creation through the integration of private targets with publicly listed acquirers.
{"title":"M&As and innovation: Evidence from acquiring private firms","authors":"Siti Farida , Jana P. Fidrmuc , Chendi Zhang","doi":"10.1016/j.jcorpfin.2025.102905","DOIUrl":"10.1016/j.jcorpfin.2025.102905","url":null,"abstract":"<div><div>We show that acquisitions of private targets increase the quantity, quality, and value of the acquiring firms’ patents more than acquisitions of public targets. Private-target acquisitions also foster significantly greater innovation synergies, increase the total number of inventors, and promote new collaborations among inventors. These outcomes are associated with the acquirers’ expertise in identifying innovative private targets, are more pronounced in industries with breakthrough technologies, and are not driven by targets with existing patent portfolios. We also find that the patenting increases explain away the higher announcement returns for private versus public-target acquisitions. Overall, our results underscore the role of complementary innovation capabilities in driving value creation through the integration of private targets with publicly listed acquirers.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102905"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145269776","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-07-21DOI: 10.1016/j.jcorpfin.2025.102855
Feng Cao , Haitong Li , Xueyan Zhang , Hong Zou
Leveraging the China Securities Regulatory Commission's annual random inspection exercise as a quasi-natural experiment, we document that the risk scrutiny of preventive regulatory enforcement creates regulatory uncertainty about inspected firms to business partners, leading them to reduce the provision of trade credit. Reduced access to trade credit is more pronounced for firms with weak bargaining power, high opacity, or low financial resilience. Reduced access is also evident in both ‘compliant’ and non-compliant firms, though the reduction gradually subsides as uncertainty dissipates in different ways for the two types of inspected firms. Our findings uncover an important unintended effect of preventive regulation and have implications for policy making.
{"title":"Preventive regulatory enforcement and access to trade credit: Evidence from a quasi-natural experiment","authors":"Feng Cao , Haitong Li , Xueyan Zhang , Hong Zou","doi":"10.1016/j.jcorpfin.2025.102855","DOIUrl":"10.1016/j.jcorpfin.2025.102855","url":null,"abstract":"<div><div>Leveraging the China Securities Regulatory Commission's annual random inspection exercise as a quasi-natural experiment, we document that the risk scrutiny of preventive regulatory enforcement creates regulatory uncertainty about inspected firms to business partners, leading them to reduce the provision of trade credit. Reduced access to trade credit is more pronounced for firms with weak bargaining power, high opacity, or low financial resilience. Reduced access is also evident in both ‘compliant’ and non-compliant firms, though the reduction gradually subsides as uncertainty dissipates in different ways for the two types of inspected firms. Our findings uncover an important unintended effect of preventive regulation and have implications for policy making.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102855"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325952","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-10DOI: 10.1016/j.jcorpfin.2025.102906
Dongmin Kong , Chenhao Liu , Wenxu Ye
We examine the impact of environmental regulations in export destinations on firms’ pollution emissions. Leveraging the passage of Permanent Normal Trade Relations (PNTR) by the United States – which eliminated tariff policy uncertainty for Chinese exports – we provide evidence that 1% increase of exports to highly regulated markets reduces smoke, SO, and waste gas emissions by 0.267%, 0.239%, and 0.026%, and water and coal usage by 0.185% and 0.242%, respectively. Our mechanism analysis reveals that firms adapt their environmental practices to comply with foreign regulations due to compliance costs, reputational concerns, and future growth opportunities.
{"title":"Greening through trade","authors":"Dongmin Kong , Chenhao Liu , Wenxu Ye","doi":"10.1016/j.jcorpfin.2025.102906","DOIUrl":"10.1016/j.jcorpfin.2025.102906","url":null,"abstract":"<div><div>We examine the impact of environmental regulations in export destinations on firms’ pollution emissions. Leveraging the passage of Permanent Normal Trade Relations (PNTR) by the United States – which eliminated tariff policy uncertainty for Chinese exports – we provide evidence that 1% increase of exports to highly regulated markets reduces smoke, SO<span><math><msub><mrow></mrow><mrow><mn>2</mn></mrow></msub></math></span>, and waste gas emissions by 0.267%, 0.239%, and 0.026%, and water and coal usage by 0.185% and 0.242%, respectively. Our mechanism analysis reveals that firms adapt their environmental practices to comply with foreign regulations due to compliance costs, reputational concerns, and future growth opportunities.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102906"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145325953","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-18DOI: 10.1016/j.jcorpfin.2025.102910
Bilal Al Dah , Mustafa A. Dah , Konstantinos Stathopoulos
Recent diversity, equity, and inclusion (DEI) initiatives have resulted in significant board refreshment, specifically in the characteristics and qualities of board members across various dimensions. To facilitate these changes, U.S. boardrooms are increasingly appointing inexperienced rookie directors. Our findings indicate that rookie refreshment enhances board monitoring effectiveness, as evidenced by improved CEO turnover–performance sensitivity, better CEO incentives, and higher earnings quality. While rookie refreshment does not enhance the board's advising capacity, it does not hinder it either. These findings challenge DEI critics who argue that rookie appointments result in inefficient firm-director matching, thereby hampering corporate governance. Moreover, we show that boards continue to benefit from seasoned director refreshment to improve advising effectiveness, as reflected in firms' investment efficiency and acquisition activities and performance. Overall, we posit that rookie directors enhance board effectiveness when their presence refreshes the board's composition relative to its prior attributes.
{"title":"Rookie directors and board efficacy","authors":"Bilal Al Dah , Mustafa A. Dah , Konstantinos Stathopoulos","doi":"10.1016/j.jcorpfin.2025.102910","DOIUrl":"10.1016/j.jcorpfin.2025.102910","url":null,"abstract":"<div><div>Recent diversity, equity, and inclusion (DEI) initiatives have resulted in significant board refreshment, specifically in the characteristics and qualities of board members across various dimensions. To facilitate these changes, U.S. boardrooms are increasingly appointing inexperienced rookie directors. Our findings indicate that rookie refreshment enhances board monitoring effectiveness, as evidenced by improved CEO turnover–performance sensitivity, better CEO incentives, and higher earnings quality. While rookie refreshment does not enhance the board's advising capacity, it does not hinder it either. These findings challenge DEI critics who argue that rookie appointments result in inefficient firm-director matching, thereby hampering corporate governance. Moreover, we show that boards continue to benefit from seasoned director refreshment to improve advising effectiveness, as reflected in firms' investment efficiency and acquisition activities and performance. Overall, we posit that rookie directors enhance board effectiveness when their presence refreshes the board's composition relative to its prior attributes.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102910"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145359028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-09-11DOI: 10.1016/j.jcorpfin.2025.102893
Hao Wei, Yuan Liu
Using global corporate investment data from 2007 to 2022, this study employs a multi-period difference-in-differences methodology to investigate the impact of opening new international passenger flight routes on FDI. The empirical results are as follows: The launch of new international passenger air routes has significantly promotes multinational corporations'(MNCs') investment in China by shortening cross-border travel time. Results from heterogeneity analysis suggest that investment scale expansion in China is primarily concentrated among large-scale MNCs and capital-intensive MNCs. Mechanism analysis reveals that, alleviating information friction, enhancing financing capability, and reducing cultural barriers are crucial channels. Further analysis indicates that the launch of new international passenger flight routes substantially enhances China's market appeal to MNCs and raises MNCs' investment returns. Our research findings not only enrich the theoretical literature on the economic implications of “home bias” effect in international investment, but also offer empirical support for achieving the United Nations World Tourism Organization's sustainable development goal of “Tourism for Economic Growth”.
{"title":"New international flight routes and MNCs' investment","authors":"Hao Wei, Yuan Liu","doi":"10.1016/j.jcorpfin.2025.102893","DOIUrl":"10.1016/j.jcorpfin.2025.102893","url":null,"abstract":"<div><div>Using global corporate investment data from 2007 to 2022, this study employs a multi-period difference-in-differences methodology to investigate the impact of opening new international passenger flight routes on FDI. The empirical results are as follows: The launch of new international passenger air routes has significantly promotes multinational corporations'(MNCs') investment in China by shortening cross-border travel time. Results from heterogeneity analysis suggest that investment scale expansion in China is primarily concentrated among large-scale MNCs and capital-intensive MNCs. Mechanism analysis reveals that, alleviating information friction, enhancing financing capability, and reducing cultural barriers are crucial channels. Further analysis indicates that the launch of new international passenger flight routes substantially enhances China's market appeal to MNCs and raises MNCs' investment returns. Our research findings not only enrich the theoretical literature on the economic implications of “home bias” effect in international investment, but also offer empirical support for achieving the United Nations World Tourism Organization's sustainable development goal of “Tourism for Economic Growth”.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"96 ","pages":"Article 102893"},"PeriodicalIF":5.9,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145120168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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