The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence

This study investigates the relationship between environmental, social, and governance (ESG) performance and financial reporting quality (FRQ) through the use of data from Datastream, Refinitive Eikon and ASSET4 databases. The initial sample of the study covers all available firms in ASSET4. After eliminating firms with missing data, the final sample of the study consists of 16,072 firm-year observations from 35 countries, covering the years from 2010 to 2017. Several FRQ proxies and firms’ ESG performance indicators are used in the study. The panel regression findings reveal that firms’ ESG performance has a positive impact on FRQ. In other words, it has been found that improving the ESG performance of firms yields higher FRQs. As for ESG pillars, this study finds a positive and statistically significant relationship between FRQ and environmental and governance pillars. The study extends the literature by providing international evidence not only about the aggregate effects of firms’ ESG performance on FRQ but also the effects of each of the three ESG pillars on FRQ.

Effect of Loss-of-Function Genetic Variants in PCSK9 on Glycemic Traits, Neurocognitive Impairment, and Hepatobiliary Function

<strong>OBJECTIVE:</strong> To evaluate the association between <i>PCSK9 </i>predicted loss-of-function variants (pLoF) and glycemic traits, hepatobiliary function and neurocognitive traits. <p><strong>RESEARCH DESIGN AND METHODS:</strong> We identified carriers of <i>PCSK9</i> pLoF in UK Biobank exome sequencing data. We assessed the aggregate effects of these variants on lipid/lipoprotein traits, which served as a positive control. Association of <i>PCSK9 </i>pLoF carrier status and glycemic traits, hepatobiliary function, neurocognitive traits was then evaluated as a measure for adverse effects. </p> <p><strong>RESULTS:</strong> We identified 374 individuals with 41 pLoF variants. As expected, we found that <i>PCSK9</i> pLoF carriers had significantly lower LDL-C (<i>P</i> = 7.4 × 10^-55) and apoB levels (<i>P</i> = 7.6 × 10^-50) compared with noncarriers. However, we found no significant associations between pLoF carrier-status and glycemic traits, hepatobiliary function and neurocognitive traits (<i>P</i> > 0.05).</p> <p><strong>CONCLUSIONS</strong>: Our results do not support adverse effects of <i>PCSK9 </i>pLoF on glycemic traits, hepatobiliary function or neurocognitive traits.</p>

Effect of Loss-of-Function Genetic Variants in PCSK9 on Glycemic Traits, Neurocognitive Impairment, and Hepatobiliary Function

<strong>OBJECTIVE:</strong> To evaluate the association between <i>PCSK9 </i>predicted loss-of-function variants (pLoF) and glycemic traits, hepatobiliary function and neurocognitive traits. <p><strong>RESEARCH DESIGN AND METHODS:</strong> We identified carriers of <i>PCSK9</i> pLoF in UK Biobank exome sequencing data. We assessed the aggregate effects of these variants on lipid/lipoprotein traits, which served as a positive control. Association of <i>PCSK9 </i>pLoF carrier status and glycemic traits, hepatobiliary function, neurocognitive traits was then evaluated as a measure for adverse effects. </p> <p><strong>RESULTS:</strong> We identified 374 individuals with 41 pLoF variants. As expected, we found that <i>PCSK9</i> pLoF carriers had significantly lower LDL-C (<i>P</i> = 7.4 × 10^-55) and apoB levels (<i>P</i> = 7.6 × 10^-50) compared with noncarriers. However, we found no significant associations between pLoF carrier-status and glycemic traits, hepatobiliary function and neurocognitive traits (<i>P</i> > 0.05).</p> <p><strong>CONCLUSIONS</strong>: Our results do not support adverse effects of <i>PCSK9 </i>pLoF on glycemic traits, hepatobiliary function or neurocognitive traits.</p>

Trade Policy is Real News: Theory and Evidence

We evaluate the aggregate effects of changes in trade barriers when these changes can be implemented slowly over time and trade responds gradually to changes in trade barriers because firm-level trade costs make exporting a dynamic decision. Our model shows how expectations of changes in trade barriers affect the economy. We find that while decreases in trade barriers increase economic activity, expectations of lower future trade barriers temporarily decrease investment, hours worked, and output. Further- more, canceling an expected decline in future trade barriers raises investment and output in the short run but substantially lowers medium-run growth. These effects are larger when the expected reform is bigger. In the data, we find that countries with more trade growth after the General Agreement on Tariffs and Trade (GATT) rounds decreased investment and hours worked in the years leading to the tariff cuts, as predicted by our model.

On inequality, growth and trust: some evidence from the lab

In a novel experimental design, we investigate the impact of exogenous variation in economic growth and inequality on trusting behaviour. In addition to a control with uniform endowment, three treatments were implemented where the initial endowment is exogenously changed to produce inequality and three growth scenarios where average endowments increase (boom), decrease (recession) or remain unaltered (steady state). We find that aggregate trust and trustworthiness both decrease due to the induced heterogeneity in endowments. Also, trust (but not trustworthiness) decreases (increases) due to recessions (booms). The impact of inequality on trust is greatest in a recession and absent in a boom. These aggregate effects are driven mainly by the reactions of those who, after treatment, end up at the bottom of the endowment distribution. These findings are close in sign and in the order of magnitude to those reported in observational studies on the relationship between growth, inequality and trust.

Can CO2 Emission Reduction and Economic Growth Be Compatible? Evidence From China

The influence of low-carbon energy on economic development is a vital issue. Using the provincial panel data in China from 2000 to 2017, this work investigated the aggregate effects of low-emission electricity. The results showed that 1) when the ratio of low-emission electricity to total electricity increases by 1%, the GDP per capita will increase by 0.16% and CO2 emissions will decrease by 0.848%. In other words, low-emission electricity can achieve the goal of low-carbon economic development; 2) the self-supply of low-emission electricity, rather than trade and efficiency, is the main reason for China’s boosted economic growth; and 3) low-emission electricity increases the regional economic gap in China. The effects of pollution inhibition and economic promotion on low-emission electricity in developed areas are significantly greater than those in less developed areas. Thus, the low-emission electricity policy in China should benefit the economy and avoid the excessive economic gap among regions. Policymakers should vigorously promote the low-emission electricity revolution and pay attention to the inclination of energy policy to the central and western regions.

Meta-Analysis of Seven Standard Experimental Paradigms Comparing Student to Non-student

This study embarked on the very challenging proposition of systematically organizing and classifying an assortment of experimental economics essays pertinent to seven experiments performed with both non-student and student populations. The experiments were the Dictator game, Stag Hunt – Coordination game, Risk Aversion Measurement (as measured by the players type of lottery choice), Trust game, Guessing game, Prudence Measurement, and the Guessing game. This meta-analysis reviewed 126 published and unpublished papers collected from several journals and papers provided by several authors via the Google Groups "Economic Science Association - Experimental Methods Discussion" group. Ultimately, only 39 studies were utilized due to methodological alignment. While some studies showed statistically significant differences between non-students and students as indicated by their respective 95% confidence intervals, the overall random-effects model of each of the seven games showed not to be statistically significant. This study contributes to the literature in three important ways. First, the study generates a comprehensive inventory and review of experiments comparing student to non-student populations for the last four decades; second, the study points out a possible limitation when combining several studies of the same game, despite following similar protocols, suggesting that compounded contextual complexities might diminish aggregate effects of the individuals’ behavioral responses to the financial incentives, and third, the study indicates that generalizations from one experimental economic study, may not render a solid base for extending statistical extrapolations applicable to the total population since the aggregate effects do not indicate substantial differences.