Bilal Haider Subhani

This study shifts attention from reported sustainability performance to recorded environmental misconduct in family firms. Building on stewardship theory and the socioemotional wealth perspective, we examine whether family executive representation (FER) is associated with environmental violations among Chinese listed family firms. Using 13,029 firm‐year observations from 2239 Chinese listed family firms during 2008–2022, we estimate ordinary least squares models with firm‐level controls, year and industry fixed effects, and firm‐clustered standard errors. The results indicate that higher FER is significantly associated with fewer environmental violations. This association is generally consistent across a broad set of additional tests, including alternative variable measures, endogeneity checks, and alternative estimation approaches. We further show that higher internal control quality (ICQI) and greater analyst coverage strengthen the negative association between FER and environmental violations. These findings suggest that internal control systems and external monitoring may condition the environmental relevance of family executives' long‐term orientation and reputational concerns. By examining recorded environmental violations rather than broad CSR or ESG indicators, this study offers a more direct view of environmental misconduct and contributes to family business, corporate governance, and sustainability research in an emerging‐market context.

Purpose: This study aims to examine how changes in USA–China tensions (UCTs) are associated with aggregate inward foreign direct investment (FDI) in the USA and China. It also distinguishes the directly observed investment risk from possible adaptive opportunities created through relocation, diversification and alternative market-entry strategies. Design/methodology/approach: The study uses panel data over 1993–2023 and establishes the regression by using the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model and Fully Modified Ordinary Least Squares (FMOLS) models. A geopolitical tension index, capturing trade disputes, sanctions and diplomatic frictions, is incorporated alongside relevant macroeconomic controls to ensure robustness. The dual-method approach allows for consistent inference under potential endogeneity and cross-sectional dependence. Findings: The empirical results from both CS-ARDL and FMOLS are consistent and reveal a significant negative association between UCTs and FDI inflows in both the short and long run. Heightened geopolitical uncertainty weakens investor confidence, while trade restrictions, tariffs and sanctions further discourage cross-border investment between the two economies. Research limitations/implications: The dependent variable is aggregate inward FDI for each country rather than origin-destination bilateral flows. The analysis therefore cannot separately estimate US investment in China and Chinese investment in the USA. Practical implications: For policymakers, the results highlight the importance of diplomatic stabilization and predictable trade policies to sustain international investment flows. For investors and multinational firms, the study underscores the need to integrate geopolitical risk into strategic location and diversification decisions. Governments seeking to attract diverted FDI can benefit by improving institutional quality and reducing policy uncertainty. Originality/value: This study contributes to the literature by providing a long-horizon (1993–2023) empirical assessment of geopolitical tensions and FDI using a robust dual-method strategy (CS-ARDL and FMOLS). It offers new evidence on how sustained USA–China frictions structurally alter bilateral investment behavior, positioning geopolitical risk as a central factor in global FDI reallocation.

Purpose: Rapid climate change has posed significant challenges globally, impacting various facets of socioeconomic development. Understanding the intersection of climate vulnerability (CVN), institutional quality (INQ) and innovation performance is crucial, especially within highly innovative nations. This study aims to investigate the relationship between CVN, INQ and innovation performance. Design/methodology/approach: The empirical analysis was conducted across the top ten innovative countries and by considering a wide range of data over the period 1995–2021. For regression analysis, the authors use fully modified ordinary least squares and dynamic ordinary least squares models. Findings: The study uncovers a negative impact of CVN on innovation performance and a positive association between INQ and innovation. Notably, INQ moderates the relationship between CVN and innovation. The study emphasizes strategic policies that fortify institutions, promote climate-resilient innovation and integrate innovative practices into climate adaptation strategies, propelling nations toward resilient and innovative development paths. Research limitations/implications: The analysis highlights the need for institutional strengthening and innovation-centric climate policies. Robust institutions play a pivotal role in fostering innovation amidst climate challenges. Originality/value: The study’s novelty lies in its holistic analysis of CVN, INQ and innovation within top innovative countries, uncovering the moderating effect of INQ on the climate–innovation nexus.

Financial development has the capacity to assimilate economic, environmental, and political shocks to the maximum extent. Building on this strength, the present study investigates how Financial Sector Development (FSD) influences Environmental Protection Investment (EPIRR), while also accounting for the moderating role of Climate Policy Uncertainty (CPUI), using firm‐level data from Chinese A‐share listed companies spanning 2010 to 2022. To ensure robust and reliable findings, the study employs multiple methodological approaches. The findings show a strong positive relationship between FSD and EPIRR. It indicates that a stable and developed financial system improves credit access, lowers funding costs, and increases firms' ability to invest in environmental projects. It also encourages green products like sustainability‐linked loans and improves long‐term planning through stronger investor confidence. However, when CPUI is included as a moderating factor, the positive relationship weakens, which unveils that an uncertainty about future environmental rules makes firms and financial institutions cautious. As a result, they often delay or reduce their green investments due to unpredictable regulations, unclear enforcement, and uncertain returns on long‐term sustainability efforts. This study adds to theory by using the Resource‐Based View and Strategic Choice Theory to explain how FSD serves as a strategic resource and decision‐making driver for corporate green investment. Empirically, it advances the sustainability finance literature by employing rigorous econometric techniques and robustness checks, while also incorporating alternative measures of FSD, as well as heterogeneity analysis, channel exploration, and the entropy balancing approach. Practically, it underscores the role of a well‐developed financial sector in reducing financing barriers for green projects while highlighting the need for stable climate policies to foster long‐term sustainability investments. This study reconceptualized the traditional Pecking Order Theory by demonstrating that in a well‐developed financial system, firms prefer external funds over internal ones due to lower costs and reduced information gaps.

This study explores the supporting dynamics of the trade‐off notion and Porter's win–win hypothesis by conducting an empirical analysis between corporate climate investments (CCI) and strategic financial management approaches. For this purpose, we consider Chinese A‐shares listed corporations from 2010 to 2022. Utilizing a two‐step system generalized method of moment (GMM) for regression analysis; the findings reveal an inverse relationship between CCI and debt financing approach (DFA) because financial institutions incorporate environmental risks into their lending decisions, leading to higher interest rates that deter corporations from leveraging debt. However, a notable and positive correlation exists between the CCI and the equity financing approach (EFA). This relationship arises because investments in climate‐related initiatives significantly enhance a corporation's public image, demonstrating its commitment to environmental sustainability and social responsibility. Such actions foster investor goodwill and trust, aligning with broader sustainable development goals. Consequently, this alignment renders the EFA increasingly appealing to investors. These findings highlight the strategic importance of CCI in contemporary corporate finance, underlining their twofold capacity to foster corporate and environmental sustainability. Moreover, this study challenges the traditional Trade‐off paradigm, which posits that companies must choose between environmental sustainability and economic performance. In contrast, it supports Porter's win–win hypothesis, advocating for an integrated corporate strategy that aligns environmental and economic sustainability, highlighting the potential for businesses to achieve both objectives simultaneously.

In today's competitive global economy, innovation is crucial for growth, competitiveness and societal progress. This study examines the relationship between various economic uncertainties and innovation outputs from 1987 to 2022 in the United States and Japan. Using the PMG‐ARDL model, it analyzes the effects of economic policy uncertainty (EPU), monetary policy uncertainty (MPU), trade policy uncertainty (TPU) and fiscal policy uncertainty (FPU) on innovation. Pre‐estimation techniques, including CD analysis, unit root analysis and cointegration analysis, ensure methodological rigour. The findings indicate that EPU, MPU, TPU and FPU negatively affect ICT exports and patent applications (PTA), as uncertainties hinder business decision‐making and investment in research and development. However, MPU and TPU positively affect innovation in Japan, and MPU has a positive effect in the United States. These results highlight the importance of considering country‐specific dynamics in policy formulation. Policymakers should enhance transparency, stability and communication to foster innovation. This study contributes by exploring the diverse impacts of economic uncertainties on innovation.