Theme: Climate policy uncertainty and crowdfunding success of renewable technology campaigns
Speaker: Professor Xiuping Hua, business school, University of Nottingham Ningbo China
Host: Siyang Tian, School of Accounting, SWUFE
Time: 15:00-16:30 pm, April 12, 2022
Place: ID: 806-329-370 (online)
Sponsor: School of Accounting, SWUFE
Introduction of the speaker:
Professor Xiuping Hua is currently a professor and doctoral supervisor of finance at the Business School of University of Nottingham Ningbo China, director of the block chain Laboratory of Ningbo University of Nottingham Ningbo Free Trade Zone, executive deputy director of Ningbo new structural economics research center and Secretary General of Inclusive Finance Research Center. She also serves as a member of the 15th Ningbo Municipal Committee of the Chinese people's Political Consultative Conference, vice president of Ningbo statistical association Expert director of Ningbo equity investment and venture capital industry association, independent director of listed company Tuobang shares and Dongguan bank, director of the Sixth Council of Ningbo Jiangbei District Institute of Finance and other social positions. She holds a double degree in law and economics from Peking University and a master's degree and a doctor's degree in finance from the University of Sheffield, UK. Previously, she served as a researcher of the China finance 40 people forum, a visiting scholar of the school of Asia and Africa at the University of London funded by the British Academy of Sciences, a visiting editor of the European Journal of finance, and a part-time vice president and partner of junrun capital. Her research focuses on China and European financial markets, and her interests include asset pricing, derivatives investment, financial technology, innovative finance and Inclusive Finance. She has been published in the Journal of International Money and Finance, European Journal of Finance, Journal of Accounting, Auditing and Finance, Review of Quantitative Finance and Accounting, Business History, International Business Review, Economic Modeling, Economic Research, Financial Research and other academic journals, as well as China Daily, 21st Century Economic Report, Peking University Business Review, Caixin.com, FT Chinese Network and other media magazines have published dozens of articles, and as the project leader, they have received a number of research project grants from governments, academic institutions and financial institutions at home and abroad.
Prior literature documents the political uncertainty and policy shift effects in financial markets. This study uses Trump’s withdrawal from the Paris Accord as an exogenous policy shock and investigates the impact of exposure to this major change in international climate policy coordination on technology crowdfunding outcomes. Results show that the funding success of renewable technology campaigns has been significantly affected by this climate policy shift by a reduction of 24 percent in success chance, while that of climate-neutral emerging technology campaigns improves about 18 percent. Further investigation indicates that the investor choice effect on funding success are heterogeneous across American and non-American backers. Mechanism tests suggest that rational preference, social responsibility and warm glow channels transmit the policy shift influence to investor decisions. Overall, empirical evidence shows the Trump administration’s policy shift induces new uncertainty in the crowdfunding markets and incurs negative externality upon environment-oriented social ventures. Previous studies have found that policy uncertainty will affect financial markets. This study applies Trump's withdrawal from the Paris climate agreement as an exogenous policy impact, and studies the impact of changes in international climate policy cooperation on science and technology crowdfunding. We found that the success rate of crowdfunding related to renewable energy decreased by 24%, while the success rate of crowdfunding related to climate and technology increased by 18%. Further research found that the success rate of projects funded by American investors and non-American investors was significantly different. Mechanism test found that investors' rational preference, social responsibility and climate warming may be potential mechanisms. To sum up, our empirical study found that the climate policy change caused by the trump administration has brought new uncertainty to the crowdfunding market, and their exit decision has brought negative externalities to environment related venture capital enterprises.
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