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We differentiate the effects of passive institutional investors, which mainly refer to index funds that adopt a passive portfolio strategy, on firms’ innovation activities and innovation strategies. Relying on plausibly exogenous variation in passive institutional ownership generated by Russell 1000/2000 index reconstitutions, we find that, with larger passive institutional ownership, while firms’ countable innovation activities increase, they shift their innovation strategies by focusing more on exploitation of existing knowledge instead of exploring new technology. Enhanced monitoring by passive institutional investors through active votes could explain their positive effects on firms’ innovation activities. Increasing risk aversion on the part of passive institutional investors appears the underlying force that drives firms’ shift to incremental innovation. Our paper uncovers a subtle relation between institutional investors and innovation, which is largely ignored by earlier studies.

Macroeconomics --- Economics: General --- International Economics --- Foreign Exchange --- Informal Economy --- Underground Econom --- Economic & financial crises & disasters --- Economics of specific sectors --- Currency crises --- Informal sector --- Economics

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This paper provides new estimates of the housing stock, construction rates and price developments by city tier in China in order to understand where imbalances might be concentrated, and the implications of any significant contraction. We also update estimates of the size of China’s rapidly evolving real estate sector through 2021, allowing one to look at the initial impact of COVID-19, as well as extending the analysis to incorporate urban-expansion related infrastructure construction. We argue that China overall faces imbalances between supply and demand for housing stock, but the problem is significantly deeper outside tier 1 cities.

Macroeconomics --- Economics: General --- Infrastructure --- Investments: Stocks --- Real Estate --- Investments: General --- International Finance: Other --- Financial Crises --- Real Estate Markets, Spatial Production Analysis, and Firm Location: General --- Economic Development: Urban, Rural, Regional, and Transportation Analysis --- Housing --- Investment --- Capital --- Intangible Capital --- Capacity --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Housing Supply and Markets --- Economic & financial crises & disasters --- Economics of specific sectors --- Investment & securities --- Property & real estate --- National accounts --- Stocks --- Financial institutions --- Housing prices --- Prices --- Depreciation --- Currency crises --- Informal sector --- Economics --- Saving and investment --- China, People's Republic of

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Fintech, which delivers financial services digitally, promises to promote financial inclusion and close the gender gap. Using a novel fintech dataset for 114 economies worldwide, this paper shows that fintech adoption significantly improves female employment and reduces gender inequality, the effect being more pronounced in firms without traditional financial access. Fintech not only increases the number and ratio of female employees in the workforce, but also mitigates financial constraints of female-headed firms. Digital divide and poor institutions weaken such benefits. Endogeneity is accounted for by a fixed effects identification strategy. We conclude by providing policy recommendations and outlining avenues for future research.

China, People's Republic of --- Macroeconomics --- Economics: General --- Industries: Financial Services --- Women''s Studies' --- Gender Studies --- Labor --- Corporate Finance --- Financial Institutions and Services: General --- Demand and Supply of Labor: General --- Innovation --- Research and Development --- Technological Change --- Intellectual Property Rights: General --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Economics of Gender --- Non-labor Discrimination --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Corporate Finance and Governance: General --- Economic & financial crises & disasters --- Economics of specific sectors --- Computer applications in industry & technology --- Gender studies --- women & girls --- Social discrimination & equal treatment --- Labour --- income economics --- Ownership & organization of enterprises --- Fintech --- Technology --- Women --- Gender --- Gender inequality --- Small and medium enterprises --- Economic sectors --- Currency crises --- Informal sector --- Economics --- Financial services industry --- Technological innovations --- Sex discrimination --- Economic theory --- Small business --- Income economics --- Women & girls --- Women's Studies

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This paper examines the effect of international trade on corporate market power in emerging market economies and developing countries, with a special focus on sub-Saharan Africa. The analysis is based on a large firm-level dataset, tariff data by sector and agreggate indicators of international trade for the period 2000-17. Greater trade liberalization and trade integration are associated with significant declines in market power, with the effect being more pronounced for firms in the manufacturing and ICT sectors, private sector firms, and firms with higher initial markups. Firms in sub-Saharan Africa tend to experience signficantly lower markups after allowing greater trade integration. The effects of trade liberalization on market power materializes over time, and there are significant complementarities between trade reforms and real sector reforms.

Papua New Guinea --- Exports and Imports --- Macroeconomics --- Taxation --- Market Structure and Pricing: General --- Trade: General --- Capitalist Systems: Planning, Coordination, and Reform --- Trade Policy --- International Trade Organizations --- Institutions and the Macroeconomy --- International economics --- Public finance & taxation --- Trade liberalization --- Tariffs --- Trade barriers --- Structural reforms --- Imports --- Commercial policy --- Tariff

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Climate change poses an unprecedented challenge to the world economy and the global financial system. This paper sets out to understand and quantify the impact of climate mitigation, with a focus on climate-related news, which represents an important information source that investors use to revise their subjective assessments of climate risks. Using full-text data from Financial Times from January 2005 to March 2022, we develop machine learning-based indicators to measure risks from climate mitigation, and the direction of the risk is identified through manual labels. The documented risk premium indicates that climate mitigation news has been partially priced in the Canadian stock market. More specifically, stock prices react positively to market-wide climate-favorable news but they do not react negatively to climate-unfavorable news. The results are robust to different model specifications and across equity markets.

Macroeconomics --- Economics: General --- Environmental Economics --- Environmental Policy --- Industries: Energy --- Finance: General --- Portfolio Choice --- Investment Decisions --- Climate --- Natural Disasters and Their Management --- Global Warming --- Environmental Economics: Government Policy --- Nonrenewable Resources and Conservation: General --- Price Level --- Inflation --- Deflation --- General Financial Markets: General (includes Measurement and Data) --- Economic & financial crises & disasters --- Economics of specific sectors --- Climate change --- Environmental policy & protocols --- Petroleum, oil & gas industries --- Finance --- Environment --- Climate policy --- Oil sector --- Economic sectors --- Asset prices --- Prices --- Currency crises --- Informal sector --- Economics --- Climatic changes --- Environmental policy --- Petroleum industry and trade --- Stock exchanges