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This paper aims to investigate the relationship between corporate tax avoidance and environmental, social and governance (ESG) performance and the moderating effect of financial constraints on the relationship between corporate tax avoidance and ESG performance.

The sample consists of a global data set involving 24,259 firm-year observations from 49 countries for the years 2011–2020. Corporate ESG performance was extracted from the Thomson Reuters database. The book-tax difference model was used for measuring corporate tax avoidance, while financially constrained firms were identified using the Kaplan and Zingales (1997) index.

The results show that firms with higher tax avoidance are associated with higher ESG performance, but lower ESG performance is shown for firms with higher financial constraints. The results further indicate that the positive impact of corporate tax avoidance on ESG performance becomes weaker for firms with higher financial constraints.

The findings imply that policymakers and regulators should focus on mechanisms to promote more internal funds to assist firms in pursuing ESG-related initiatives, such as through tax incentives. Investors should understand the “smokescreen” effect of corporate tax avoidance on ESG performance, especially for firms with financial constraints.

This analysis provides international evidence on the link between tax avoidance and ESG and considers the joint effect of pressures for internal funds, through tax and financing constraints, on corporate ESG performance.

The purpose of this study is to examine the nonlinear relationship between financial constraints and the chief executive officer (CEO) stock options compensation and to analyze whether the impact of financial constraints on the CEO stock options compensation changes at certain level of financial constraints or not.

This study is based on a sample of 90 French firms for the period extending from 2008 to 2019. To deal with the non-linearity, the authors use a panel threshold method.

Using different measures of financial constraints [KZ index (Baker et al., 2003), SA index (Hadlock and Pierce, 2010) and FCP index (Schauer et al., 2019)], the results reveal that the impact of the financial constraints (SA index and FCP index) is positive below the threshold value and it becomes negative above.

The non-linearity between financial constraints and CEO stock options shows that the level of financial constraints can be a major determinant of the CEO compensation structure. More specifically, this study sheds light on the key role played by the level of financial constraints and how this latter influence management decisions.

This paper is the first to the best of the authors' knowledge to examine the nonlinear relationship between financial constraints and the CEO stock options compensation using a panel threshold model.

This study delves into the nuanced relationship between financial constraints, ownership structures (state-owned and foreign) and innovation engagement within China’s A-share market, aiming to uncover how these dynamics vary across different industries and regional contexts.

By retrieving data from various datasets in China (2010–2022), this study analyzed the effectiveness of each variable, employing various dimensions to reflect innovation engagement among Chinese listed companies. Meanwhile, for the measurement of financial constraints, this study tested all four typical ones and opted for the KZ Index, as it is the most suitable for China’s A-share market. Then, by fixing the industry and year effects, the study examined the main and moderating effects. At last, in order to address endogeneity issues and capture the dynamic nature of innovation activities, this study follow the suggestion of Khatib (2024) and employed the two-step system Generalized Method of Moments (GMM) estimation.

The results demonstrate that while the government has introduced many policies to promote innovation, state-owned ownership does not consistently enhance innovation engagement as expected, especially when firms are in financial dilemma. Particularly, in Hi-tech industries, foreign ownership demonstrates greater interest and confidence in the innovation capabilities of China’s A-share market. Findings also reveal significant regional heterogeneity in the moderating role of ownership structures. While state-owned and foreign ownerships have a buffering effect against financial constraints in the eastern and western regions, but this effect is notably different in the middle part, even though it is China’s political heartland.

The findings offer a different insight for policymakers and corporate strategists, suggesting that targeted financial and regulatory policies that leverage specific ownership structures can foster innovation in different ways, particularly in financially constrained environments. However, how to stimulate innovation vitality in the middle part of China still requires further research.

This paper aims to attempt to examine some of the unique features of cryptocurrency and the reasons for its growing market acceptability. Given the expanding size of cryptocurrency markets, the present study strives to identify whether it can be used as an alternative financial asset in place of traditional financial assets to meet firms' financial constraints. It also provides issues for future research in the area of cryptocurrency markets.

This paper analysed 94 research papers from databases such as ScienceDirect, Proquest, EBSCO, Emerald Insight and Web of Science. Articles connected to cryptocurrency, financial assets and corporate financial constraints research were explored. VOSviewer software has been used to visualise the specified body of literature and identify eight clusters in previous literature using keyword and abstract analysis.

Studies reveal that cryptocurrency markets are independent of traditional financial markets and cryptocurrency returns have less correlation with traditional financial asset classes. This can be an advantage to firms, especially during times of crisis when traditional financial assets are impacted by significantly lower returns, while cryptocurrencies can serve as an alternative. Realtime data reveals that during the pandemic, cryptocurrencies had the maximum growth in returns which also happened to be a time when firms faced severe cash constraints. While accepting cryptocurrency as a means of exchange is still under review by regulatory authorities, it can be considered an alternative asset for investment purposes. Firms can take advantage of it to overcome financial constraints and thus reap the gains from holding crypto assets for precautionary reasons.

The present study investigates using cryptocurrency as an alternative financial asset to solve the financial constraint problem in corporates. The issues regarding volatility, cyber securities, gold returns, long-term and short-term returns have been some of the most prominent studies in the area of cryptocurrency. The present study uses eight theme-based clusters to identify the role of cryptocurrency as an alternative investment class and examines evidence-based research regarding the financial returns from holding cryptocurrency over certain traditional asset classes such as gold, currency or stocks. In recent years, it has been found that investors' growing interest in holding cryptocurrency as part of their financial portfolio has led to the substantial appreciation of cryptocurrency prices. To the best of the authors’ knowledge, the study will be a novel attempt to identify the role of cryptocurrency as an antidote to the companies’ financial constraints and liquidity issues.

This study aims to investigate the relationship between stock liquidity, future investment, future investment efficiency and the moderating effect of financial constraints.

To serve the purpose of the study, the data of 178 companies listed on the Tehran Stock Exchange in 2012–2017 were examined. In this research, two Amihud liquidity and stock trading turnover measures were taken for the liquidity. Due to variance heterogeneity, the FGLS test was used. Moreover, a modified multiple regression analysis was used to investigate the moderating role of financial constraints.

The results showed a significant positive relationship between the firm stock liquidity in the current year and the next year investment; the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment; the firm stock liquidity (based on the trading turnover index) in the current year and the next year investment efficiency; and the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment efficiency. Moreover, financial constraints negatively moderated the relationship of firm stock liquidity (based on trading turnover index) in the current year and investment in the next year; investment in the next two years; investment efficiency in the next year; and investment efficiency in the next two years.

Given the importance of investment and investment efficiency in emerging markets especially in Asian emerging markets, and because the predicted impacts through financing constraints are usually unclear, this paper attempted to fill the existing gap and be innovative in this regard.

The purpose of this study is to identify and evaluate the primary constraints that quantity surveying firms in Nigeria encounter while integrating indoor environmental quality (IEQ) principles into building designs.

The study used a quantitative approach by administering a well-structured questionnaire to 114 quantity surveyors. The collected data were analyzed using methods such as frequencies, percentages, mean item scores, Kruskal–Wallis test and exploratory factor analysis.

The top five ranked constraints were limited access to funding or financing options, limited availability of green materials, limited availability of insurance for sustainable buildings, limited availability of sustainable design resources and limited diversity and inclusivity within the design profession. Based on the factor analysis, the study identified six clusters of constraints: structural-related constraints, technical-related constraints, financial-related constraints, capacity-related constraints, legal-related constraints and culture-related constraints.

This study has several practical implications for quantity surveying firms, policymakers and industry stakeholders involved in building design and construction in Nigeria. The findings of this study can also inform future research on the integration of IEQ principles into building designs.

By identifying and structuring the clusters of constraints faced by quantity surveying firms in Nigeria when implementing IEQ principles, this study provides a novel approach to understanding the challenges associated with IEQ implementation in the building sector. This understanding can guide policymakers, industry stakeholders and quantity surveying firms in developing effective strategies to overcome these constraints and promote IEQ principles in building design and construction.

Is access to finance a constraint for small and medium enterprises (SMEs) development or a result of SMEs constraint? Considering the demand-side of the credit market, this paper aims to assess the effect of nonfinancial services (NFS) on financial access through demand for financing (direct effect) and access to finance (indirect effect).

Using data from a five-year comprehensive entrepreneurship program on a package of technical assistance, the author uses two impact assessment methods: before/after and propensity score matching approaches.

The author found significant changes in business practices for treated SMEs and entrepreneurs since both the number and frequency of good business practices increased for most of the SMEs in the program with a positive turnover effect. Evidence of the positive effects of NFS on demand for financing is found in SMEs but this does not involve more access to finance. Despite positive changes in business practices, small-size entrepreneurs continue to self-exclude for financing.

Different pass-throughs are operating within this “recycling” of entrepreneurial resources over time. The author shows the effectiveness of the knowledge on financing mechanism, financial conditions and government financial support, even if these mechanisms do not seem to lead to a significant improvement in access to finance.

Executive decisions regarding capital financing are an important management aspect, especially during financing constraints and growth opportunities. The current study examines the impact of managerial skills of a company on capital financing decisions. Furthermore, it analyzed this nexus in financing constraints and growth opportunity situations.

The authors use the GMM (generalized method of moments) estimation approach on a dataset of 20,651 firm-year observations of Chinese A-share companies from 2010 to 2019.

The authors’ findings are compatible with management signaling and reputation enhancement theories, since they show that managerial skill is connected with more substantial debt financing. Managers with high management skills are likely to have more debt financing as they can foresee the economic future of their companies and tactfully convey private information, lowering information inequality and enhancing their reputation. Furthermore, the authors also show that firms with restricted financial resources and growth opportunities make this relationship stronger. Capital structure and managerial skill findings are unaffected by alternative specifications, omitted factors, industry group bias and endogeneity.

This study sheds fresh light on the essential manager personality trait of managing ability and how it influences complicated corporate decision-making, particularly in the tough environment due to financing constraints and competitive growth. The authors argue that high-ability managers are compelled to use debt financing not only to lessen information asymmetry but also to guarantee that the market finds their superior ability. This work contributes significantly to the managerial ability literature and the capital structure literature supporting signaling theory.

Prior evidence that financial reporting quality (FRQ) of publicly listed firms improves investment efficiency in developed markets leaves unaddressed questions of whether this relationship holds in emerging and frontier markets and what channels influence this relationship. This study aims to test the role of financial constraints faced by firms and managerial risk-taking on the association of FRQ and investment efficiency in 13,231 publicly listed firms in 24 emerging and frontier markets.

Available accounting data from 1998 to 2022 are collected for all listed firms across 41 industries in 24 countries. Causal relationships are tested using fixed-effect regression analysis, several additional tests and robustness checks are applied using alternative proxies and concerns for endogeneity are addressed using two-stage least square and system generalised method of moments analysis.

Findings show that FRQ of firms in emerging and frontier markets positively affects investment efficiency, the affirmative impact of FRQ on investment efficiency is higher when firms are facing more financial constraints and when managerial risk-taking is lower and financial constraints and risk-taking have a more pronounced impact on the link between FRQ and investment efficiency in the under-investment scenario.

These findings contribute to the growing body of evidence, shedding light on the meticulous interplay between FRQ and investment efficiency in frontier and emerging markets. Specifically, the increased financial constraints encountered by firms and a more conservative approach to managerial risk-taking emerge as crucial factors complementing this relationship.

We examine how superstition shapes corporate tax avoidance and do so by taking a risk perspective and focusing on the zodiac-year belief prevalent in China.

We adopt a difference-in-differences research design to compare the degree of corporate tax avoidance in the CEOs’ zodiac year with that in the adjacent years. We do propensity-score matching to form a sample of Chinese listed firms for the regression analysis.

We find causal evidence that firms exhibit a greater magnitude of tax avoidance in the CEOs’ zodiac years, a result attributable to relatively weak tax enforcement in the Chinese context. We also find that the zodiac-year effect on corporate tax avoidance is more pronounced for firms with tight financial constraints, firms with high business risk, firms headquartered in regions with a high degree of superstition and non-state-owned firms.

This study is the first to show that superstition is a determinant factor of tax avoidance and contributes to the tax literature by shedding light on the behavioral risk factors that shape corporate tax avoidance. We take the perspective of CEOs’ risk appetite to analyze how tax avoidance is influenced by the CEOs’ trade-off between the costs and benefits of avoiding taxes. Our results suggest that, when CEOs are more risk-averse, they attach more importance to financial risk than the risk of reputational losses and litigation associated with corporate tax avoidance. The findings imply that tax avoidance can be curbed by increasing (or decreasing) the tax (financial) risk confronting the CEOs.