Topic Review
Earthquake Catastrophe Bond Pricing
The potential for economic losses due to earthquakes keeps increasing due to the development of the socioeconomic system and urbanization. The disaster management funds are insufficient to cover the losses suffered. Therefore, there is a need for an alternative funding mechanism linked to the financial market, such as catastrophe bonds.
  • 553
  • 28 Nov 2022
Topic Review
Bank Capital Structure and Its Determinants
Financial institutions, particularly banks, have long grappled with the dilemma of structuring their capital optimally. This process, commonly referred to as capital structure decision-making, is of paramount importance, especially within the financial services sector, where strict regulations are imposed by reserve and central banks in alignment with global Basel guidelines. 
  • 551
  • 10 Nov 2023
Topic Review
Environmental, Social and Governance
The world is constantly changing, and with an evolving global environmental crisis, there is a growing trend of Corporate Social Responsibility, and Environmental, Social, and Governance (ESG) disclosure initiatives. The final report on the new E.U. taxonomy for sustainable activities was released in 2020, making ESG disclosure more relevant. Environmental, Social, and Governance refers to non-financial information about how a firm deals with issues on this matter, and its importance for firm valuation is growing. Even though ESG information might lack standardisation, scholars argue that it can help adapt to environmental changes and even be a part of a company’s competitive strategy.
  • 550
  • 15 Aug 2022
Topic Review
Unbiased Expectation Theory
Unbiased expectation theory (UET), which posits that long-term interest rates are determined by the market’s expectations of future short-term interest rates, is a fundamental concept in the field of fixed-income securities. According to the expectation hypothesis, forward interest rates should be unbiased estimates of expected future spot interest rates.
  • 538
  • 09 Jan 2024
Topic Review
Heterogeneity of Corporate Financialization and Total Factor Productivity
The most important stylized fact about the Chinese economy is the tendency toward financialization, which is referred to as a key feature of capital extension following the reversal of the real economy. Corporate financialization can be defined as a firm making substantial investments in financial assets. Some empirical research provides evidence that corporate financialization can stimulate the short-term performance of firms and reach higher production efficiency yields, while over-financialization may hinder economic growth by extracting additional profits from the economy into the financial sector, thereby reducing production efficiency. The capital misallocation causes poor allocation of resources, leading to a negative effect on aggregate total factor productivity (TFP).
  • 537
  • 13 Jun 2022
Topic Review
Green Finance of Chinese Commercial Banks
Green finance is a sustainable force in promoting green development. China’s social financing structure determines the key role that green credit plays in sustainable development. Under the dual pressure of future economic downturn and huge capital gaps, it is worth exploring whether to continue promoting green credit that conforms to the long-term market mechanism.
  • 535
  • 11 May 2022
Topic Review
Exploring the Connection between Clean and Dirty Energy
This study investigates the relationship between clean and dirty energy markets, specifically focusing on clean energy stock indexes and their potential as hedging assets and safe havens during periods of global economic uncertainty. The research analyzes five clean energy indexes and four dirty energy indexes from May 2018 to May 2023, considering events such as the global pandemic and the Russian invasion of Ukraine. The main objective is to examine the causal relationship among different stock indexes pertaining to dirty and clean energy by using the Granger causality test (VAR Granger Causality/Block Exogeneity Wald Test) to determine whether clean energy indexes can predict future prices of dirty energy indexes. However, the findings reveal that clean and dirty energy indexes do not exhibit hedging characteristics or serve as safe havens during times of economic uncertainty, rejecting the research question. These results have important implications for investment strategies, as assets lacking safe haven characteristics may not preserve portfolio efficiency in uncertain times. The study's insights provide valuable guidance for investors, policymakers, and participants in energy financial markets. It highlights the need to adapt investment approaches and seek alternative options to navigate uncertain economic conditions effectively.
  • 534
  • 27 Jul 2023
Topic Review
Offshore Software R&D
Offshore Software R&D is the provision of software development services by a supplier (whether external or internal) located in a different country from the one where the software will be used. The main reason behind companies using offshore software development services is the higher development cost of the local service providers. The global software R&D services market, as contrasted to ITO and BPO, is rather young and currently is at a relatively early stage of development.
  • 527
  • 28 Nov 2022
Topic Review
Open Innovation: SDG-4 Quality Education
The introduction of sustainable development goals has made sustainability a top priority for most nations. This has raised the investment into the educational system for potential growth and for creating an innovation culture in any country; the role of institutional investors in the development of financing clean energy infrastructure, entrepreneurial development, poverty reduction, and driving corporate social responsibility and firm development has been found significant.
  • 523
  • 14 Mar 2022
Topic Review
Time Series Prediction for Future Stock Markets
There has been a great deal of attention paid to investors’ stock predictions, leading researchers to propose a variety of models. Time-series-based linear models include the auto-regressive integrated moving average (ARIMA), exponential smoothing model (ESM), and generalized auto-regressive conditional heteroskedasticity (GARCH). Stock returns can be difficult to predict because the data are nonstationary or nonlinear in nature, and linear models have trouble capturing their patterns. The linear models are also called statistical models.
  • 521
  • 17 Mar 2023
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