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Volume 18
Issue 10
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J. Risk Financial Manag., Volume 18, Issue 10 (October 2025) – 17 articles

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19 pages, 581 KB  
Article
Unveiling the Future of FinTech: Exploring the Behavioral Intentions Behind FinTech Adoption
by Attila Kurucz, Tamás Vinkóczi, Borbála Tamás and Ewelina Idziak
J. Risk Financial Manag. 2025, 18(10), 546; https://doi.org/10.3390/jrfm18100546 - 26 Sep 2025
Abstract
In addition to the technological aspects of FinTech solutions, it is important to consider user willingness, particularly among the digitally savvy Generation Z. We conducted a survey in Hungary and Poland to gather information on young people’s use of FinTech applications and their [...] Read more.
In addition to the technological aspects of FinTech solutions, it is important to consider user willingness, particularly among the digitally savvy Generation Z. We conducted a survey in Hungary and Poland to gather information on young people’s use of FinTech applications and their attitudes towards FinTech services. In our research, we built on the already known technology adoption model (UTAUT) and combined it with an attitudinal study. To determine the factors that influence the propensity to use these services, we developed a hypothetical model and tested it with the results of the first round of the survey (n = 117). CB-SEM was used to investigate the relationship between attitudes, social influence, and intention to use behavior. The paper presents the significant relationship characteristics, model structure, and potential business applications of the results. Full article
(This article belongs to the Section Financial Technology and Innovation)
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20 pages, 1447 KB  
Article
Foreign Finance and Renewable Energy Transition in D8 Countries: The Moderating Role of Globalization
by Nesrine Gafsi
J. Risk Financial Manag. 2025, 18(10), 545; https://doi.org/10.3390/jrfm18100545 - 25 Sep 2025
Abstract
This study looks at the role of foreign finance in promoting the shift to renewable energy in the Developing-8 (D8) countries—Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey—between 2000 and 2023, with particular focus given to the moderating role of globalization. Utilizing [...] Read more.
This study looks at the role of foreign finance in promoting the shift to renewable energy in the Developing-8 (D8) countries—Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey—between 2000 and 2023, with particular focus given to the moderating role of globalization. Utilizing an unbalanced panel dataset covering eight D8 countries over 2000–2023 and applying advanced econometric techniques, including System-GMM, Common Correlated Effects, nd Driscoll–Kraay estimators, the analysis accounts for slope heterogeneity, cross-sectional dependence, and possible endogeneity. The results indicate that foreign finance, and particularly foreign direct investment (FDI), is highly significant in enhancing the supply and demand of renewable energy. Globalization also has an amplification effect as it spurs technology transfer, policy convergence, and market access. The combined impact of foreign finance and globalization is significant and positive in all specifications, indicating that the optimal benefits of foreign capital inflows are realized in highly integrated economies. Alternative globalization measures and tests of renewable energy robustness confirm the stability of the findings. It argues that institutionally reinforcing the foundations, strengthening global integration, and channeling foreign finance into green sectors are central policies for fostering renewable energy transitions in developing economies. This paper provides three contributions to the existing literature. First, it is the pioneering paper that examines systematically the moderating function of globalization on the foreign finance–renewable energy transition nexus in the D8 economies. Second, it applies the latest econometric techniques—System-GMM, CCE, and Driscoll–Kraay—that control for slope heterogeneity, cross-sectional dependence, and endogeneity. Third, it offers policy recommendations for emerging economies on how best to mobilize foreign finance in a globalization context. Unlike prior works that examine these dimensions separately, this study highlights their joint influence, thereby contributing a dual perspective that has been largely absent from the literature. Full article
(This article belongs to the Section Economics and Finance)
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25 pages, 1845 KB  
Article
Economic Freedom and Banking Performance: Capital Buffers as the Key to Profitability and Stability in Liberalized Markets
by Wahyu Ario Pratomo, Ari Warokka, Rizky Yudaruddin and Aina Zatil Aqmar
J. Risk Financial Manag. 2025, 18(10), 544; https://doi.org/10.3390/jrfm18100544 - 25 Sep 2025
Abstract
This study examines the moderating effect of bank capitalization on the relationship between economic freedom and banking performance, offering comparative evidence from both advanced and emerging economies. Using an unbalanced panel of 213 countries from 1993 to 2018, this study applies a two-step [...] Read more.
This study examines the moderating effect of bank capitalization on the relationship between economic freedom and banking performance, offering comparative evidence from both advanced and emerging economies. Using an unbalanced panel of 213 countries from 1993 to 2018, this study applies a two-step System Generalized Method of Moments approach to address dynamic effects, endogeneity, and unobserved heterogeneity. The results show that economic freedom exerts a negative and significant impact on bank profitability (ROA and ROE), particularly in emerging markets with weaker institutional safeguards. Strong internal capital buffers, on the other hand, mitigate these adverse effects and enhance resilience, supporting stable profitability under liberalized conditions. Regulatory capital shows a less consistent and sometimes restrictive role. Disaggregated results indicate that equity buffers most effectively cushion the risks of financial and investment freedom, whereas trade freedom is less sensitive to capital levels. The findings emphasize that successful liberalization depends on institutional capacity and capitalization strength, highlighting the importance of tailored prudential frameworks. The study contributes to debates on financial liberalization, Basel III, macroprudential regulation, and bank risk management, underscoring that a “one-size-fits-all” liberalization strategy may undermine stability and efficiency unless supported by robust capital buffers. Full article
(This article belongs to the Section Economics and Finance)
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18 pages, 301 KB  
Article
An Empirical Comparative Analysis of the Gold Market Dynamics of the Indian and U.S. Commodity Markets
by Swaty Sharma, Munish Gupta, Simon Grima and Kiran Sood
J. Risk Financial Manag. 2025, 18(10), 543; https://doi.org/10.3390/jrfm18100543 - 25 Sep 2025
Abstract
This study examines the dynamic relationship between the gold markets of India and the United States from 2005 to 2025. Recognising gold’s role as a hedge and safe-haven during market uncertainty, we employ the Autoregressive Distributed Lag (ARDL) model to assess long-term co-integration [...] Read more.
This study examines the dynamic relationship between the gold markets of India and the United States from 2005 to 2025. Recognising gold’s role as a hedge and safe-haven during market uncertainty, we employ the Autoregressive Distributed Lag (ARDL) model to assess long-term co-integration and apply the Toda–Yamamoto causality test to evaluate directional influences. Additionally, the Generalised Autoregressive Conditional Heteroskedasticity (GARCH) (1, 1) model is applied to examine volatility spillovers. Results reveal no long-term co-integration between the two markets, suggesting they function independently over time. However, unidirectional causality is observed from the U.S. to the Indian gold market, and the GARCH model confirms bidirectional volatility transmission, indicating interconnected short-run dynamics. These findings imply that gold market shocks in one country may affect short-term pricing in the other, but not long-term trends. From a portfolio diversification and risk management perspective, investors may benefit from allocating assets across both markets. This study contributes a novel empirical framework by integrating ARDL, Toda–Yamamoto Granger causality, and GARCH(1, 1) models over a two-decade period (2005–2025), incorporating post-COVID market dynamics. The combination of these methods, applied to both an emerging (India) and developed (U.S.) economy, provides a comprehensive understanding of gold market interdependence. In doing this, the paper offers valuable insights into causality, volatility transmission, and diversification potential. The econometric rigour of the study is enhanced through residual diagnostic tests, including tests of normality, autocorrelation, and other heteroscedasticity tests, as well as VAR stability tests. These ensure strong inference and model validity; more specifically, they are pertinent to the analysis of financial time series. Full article
(This article belongs to the Section Financial Markets)
19 pages, 2320 KB  
Article
AI as a Decision Companion: Supporting Executive Pricing and FX Decisions in Global Enterprises Through LSTM Forecasting
by Wesley Leeroy and Gordon C. Leeroy
J. Risk Financial Manag. 2025, 18(10), 542; https://doi.org/10.3390/jrfm18100542 - 25 Sep 2025
Abstract
Global enterprises face increasingly volatile market conditions, with foreign exchange (FX) movements often forcing executives to make rapid pricing and strategy decisions under uncertainty. While artificial intelligence (AI) has transformed operational decision-making, its role in supporting board-level strategic choices remains underexplored. This paper [...] Read more.
Global enterprises face increasingly volatile market conditions, with foreign exchange (FX) movements often forcing executives to make rapid pricing and strategy decisions under uncertainty. While artificial intelligence (AI) has transformed operational decision-making, its role in supporting board-level strategic choices remains underexplored. This paper examines how AI and advanced analytics can serve as a ‘decision companion’ for management teams and executives confronted with global shocks. Using Roblox Corporation as a case study, we apply a Long Short-Term Memory (LSTM) neural network to forecast bookings and simulate counterfactual scenarios involving euro depreciation and European price adjustments. The analysis reveals that a ten percent depreciation of the euro reduces consolidated bookings and profits by approximately six percent, and that raising European prices does not offset these losses due to demand elasticity. Regional attribution shows that the majority of the decline is concentrated in Europe, with only minor spillovers elsewhere. The findings demonstrate that AI enhances strategic agility by clarifying risks, quantifying trade-offs, and isolating regional effects, while ensuring that ultimate decisions remain with human executives. Full article
(This article belongs to the Special Issue Machine Learning, Economic Forecasting, and Financial Markets)
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21 pages, 1478 KB  
Article
Working Capital Management and Profitability in India’s Cement Sector: Evidence and Sustainability Implications
by Ashok Kumar Panigrahi
J. Risk Financial Manag. 2025, 18(10), 541; https://doi.org/10.3390/jrfm18100541 - 25 Sep 2025
Abstract
This study investigates the impact of working capital management (WCM) on profitability in the Indian cement industry, an energy-intensive sector central to the country’s infrastructure growth. Using a balanced panel of listed firms over 2010–2024, we employ pooled OLS, two-way fixed effects, quantile [...] Read more.
This study investigates the impact of working capital management (WCM) on profitability in the Indian cement industry, an energy-intensive sector central to the country’s infrastructure growth. Using a balanced panel of listed firms over 2010–2024, we employ pooled OLS, two-way fixed effects, quantile regressions, and dynamic system GMM to address heterogeneity and endogeneity concerns. The results demonstrate that reductions in the cash conversion cycle (CCC), accelerated receivables collection, leaner inventories, and prudent use of payables significantly improve profitability. Quantile regressions reveal that highly profitable firms capture larger absolute gains from CCC reductions, while size-split analysis indicates that smaller and liquidity-constrained firms achieve proportionally greater marginal relief. These findings represent complementary perspectives rather than unified statistical relationship, a limitation we acknowledge. Dynamic estimates confirm the robustness of results after accounting for persistence and reverse causality. Beyond firm-level outcomes, the study contributes conceptually by linking WCM efficiency to sustainability financing: liquidity released from shorter operating cycles can be redeployed into green and energy-efficient investments, offering a potential channel for ESG alignment in carbon-intensive industries. Policy implications highlight the role of digital reforms such as TReDS and e-invoicing in strengthening liquidity efficiency, particularly for mid-sized firms. The findings extend the international WCM profitability literature, provide sector-specific evidence for India, and suggest new avenues for integrating financial and sustainability strategies. Full article
(This article belongs to the Section Business and Entrepreneurship)
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18 pages, 538 KB  
Article
Real Options for IFRS-S1 and S2 2024 Mandatory Disclosures: An Alternative Approach to Capital Budgeting Valuation
by Victor Manuel Castillo Delgadillo and Luz del Carmen Díaz-Peña
J. Risk Financial Manag. 2025, 18(10), 540; https://doi.org/10.3390/jrfm18100540 - 25 Sep 2025
Abstract
The new financial standards, IFRS S1 and S2, have not only modified the way financial reporting is presented to diverse stakeholders but have also increased uncertainty. These changes make traditional valuation methods inadequate. This article proposes the development of a valuation framework using [...] Read more.
The new financial standards, IFRS S1 and S2, have not only modified the way financial reporting is presented to diverse stakeholders but have also increased uncertainty. These changes make traditional valuation methods inadequate. This article proposes the development of a valuation framework using Real Options Valuation (ROV), which incorporates the disclosures required by S1 and S2 as inputs to the valuation model. The framework proposes a quarterly decision rule for deferring investments, parameters aligned with the new sustainability disclosures, and notes in the financial statements proposed as voluntary reporting. The results show that, under regulatory uncertainty and its associated implications, the deferral option is a more effective technique than the Net Present Value method. For professionals responsible for the valuation process, the proposed model serves as a practical guide for applying the ROV within the capital budgeting process. For investors, it provides an additional element of transparency through disclosure and alignment with other existing accounting standards. This work lays the groundwork for future empirical applications as companies adapt to the implementation of new accounting standards and their associated reporting. Full article
(This article belongs to the Special Issue Financial Accounting)
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25 pages, 427 KB  
Article
Committee Diversity Effect on Corporate Investment Risk Practices
by Chung-Chieh Li, John Sands, Lyn Daff, Adam G. Arian and Richard Busulwa
J. Risk Financial Manag. 2025, 18(10), 539; https://doi.org/10.3390/jrfm18100539 - 24 Sep 2025
Abstract
Background: This study examines how diversifying committees influence corporate investment risk practices, specifically in decision-making and resource allocation strategies. Previously, board diversity was commonly used in studies, but committee diversity was often overlooked, even though committees are delegated with providing recommendations for board [...] Read more.
Background: This study examines how diversifying committees influence corporate investment risk practices, specifically in decision-making and resource allocation strategies. Previously, board diversity was commonly used in studies, but committee diversity was often overlooked, even though committees are delegated with providing recommendations for board decisions. Methods: Using information on committee presence, size, gender representation, and independent and non-executive members, we build a detailed diversity composite index. We capture this information from various sources such as corporate official disclosures, corporate websites, and other relevant disclosures. We combine this data with financial and investment information collected through secondary data, including Bloomberg and Refinitiv databases about companies listed on the ASX 300 in the Australian equity market from 2018 to 2020. Results: Our findings show that diversity plays a much more critical role in enhancing long-term strategic investment decisions than in driving short-term operational gains. Conclusions: Additional investigations have shown that increased diversity enhances corporate resource allocation, generating optimal investment and investment efficiency levels. These findings highlight the strategic importance of diversity as a contributor to good governance and better financial performance. Full article
(This article belongs to the Section Sustainability and Finance)
34 pages, 633 KB  
Article
Corporate Governance and Tax Avoidance: Evidence from Greek Service-Sector Firms
by Vasileios Giannopoulos, Maria Vlachakou, Spyridon Kariofyllas and Ilias Makris
J. Risk Financial Manag. 2025, 18(10), 538; https://doi.org/10.3390/jrfm18100538 - 24 Sep 2025
Abstract
This study investigates the relationship between corporate governance mechanisms and tax avoidance in Greek service-sector firms over the period 2014–2023. Using panel data, the analysis evaluates the influence of board characteristics, audit committees, auditor quality, and ownership structures on firms’ tax behavior. The [...] Read more.
This study investigates the relationship between corporate governance mechanisms and tax avoidance in Greek service-sector firms over the period 2014–2023. Using panel data, the analysis evaluates the influence of board characteristics, audit committees, auditor quality, and ownership structures on firms’ tax behavior. The results reveal that traditional governance mechanisms—such as board size, independence, audit committee composition, and gender diversity—do not significantly constrain tax avoidance, reflecting the formalistic rather than substantive adoption of governance practices in Greece. In contrast, external audit quality and ownership structure emerge as critical determinants. Engagement with high-quality auditors, particularly Big 4 firms, is associated with reduced tax aggressiveness, while state ownership similarly curbs avoidance, consistent with reputational and political accountability incentives. Conversely, managerial and foreign ownership are positively related to aggressive tax planning. The findings underscore the contextual nature of governance effectiveness: in weak enforcement environments, formal mechanisms serve largely symbolic roles, whereas external oversight and ownership incentives carry greater weight. This study contributes to agency and institutional theory by highlighting the limits of formal governance reforms absent substantive independence and enforcement. Full article
(This article belongs to the Section Business and Entrepreneurship)
19 pages, 317 KB  
Article
The Influence of Institutional Pressures and Personal Attributes on Perceived Importance of Financial Reporting Among Micro-Entrepreneurs: Evidence from Malaysia
by Mazni Abdullah and Nur Jannah Jamaluddin
J. Risk Financial Manag. 2025, 18(10), 537; https://doi.org/10.3390/jrfm18100537 - 24 Sep 2025
Viewed by 40
Abstract
This study examines the influence of institutional pressures and personal attributes on the perceived importance of financial reporting among micro-entrepreneurs in Malaysia. Survey data from 194 micro-entrepreneurs were analyzed using ordinary least squares (OLS) regression to test the proposed hypotheses. The results indicate [...] Read more.
This study examines the influence of institutional pressures and personal attributes on the perceived importance of financial reporting among micro-entrepreneurs in Malaysia. Survey data from 194 micro-entrepreneurs were analyzed using ordinary least squares (OLS) regression to test the proposed hypotheses. The results indicate that institutional pressures from Malaysian regulatory bodies, particularly the Inland Revenue Board, and the financial literacy of micro-entrepreneurs are significantly associated with stronger perceptions of the importance of financial reporting. These findings offer practical insights for policymakers and stakeholders seeking to enhance reporting practices and promote financial literacy within the microenterprise sector. While prior research has largely concentrated on small and medium-sized enterprises (SMEs), the financial reporting practices of micro-enterprises remain underexplored, despite their distinctive characteristics and critical role in the economy. By addressing this gap, this study enriches the financial reporting literature and advances a broader understanding of micro, small, and medium-sized enterprises (MSMEs). Full article
(This article belongs to the Special Issue Financial Accounting)
26 pages, 2438 KB  
Systematic Review
Sustainability Practices, Corporate Value, and Financial Risk: Is There an Academic Consensus? A Systematic Bibliometric Review
by Felippe Aparecido Cippiciani, José Roberto Ferreira Savoia, Frédéric de Mariz and Daniel Reed Bergmann
J. Risk Financial Manag. 2025, 18(10), 536; https://doi.org/10.3390/jrfm18100536 - 24 Sep 2025
Viewed by 92
Abstract
This study presents a systematic review and bibliometric analysis of the relationship between sustainability practices—commonly framed within the environmental, social, and governance (ESG) framework—and both corporate value creation and financial risk mitigation. Our primary objective is to assess how ESG initiatives affect firm [...] Read more.
This study presents a systematic review and bibliometric analysis of the relationship between sustainability practices—commonly framed within the environmental, social, and governance (ESG) framework—and both corporate value creation and financial risk mitigation. Our primary objective is to assess how ESG initiatives affect firm outcomes, with particular emphasis on risk reduction, a dimension less explored in the economic and financial literature. The search was conducted in the Web of Science database on 15 June 2024, using the keywords “ESG and Financial Risk” and “ESG and Valuation,” yielding 1074 initial records. After applying inclusion and exclusion criteria, we analyzed the final sample through descriptive and frequency-based methods. Findings reveal no clear consensus on the connection between ESG and value creation, with results varying across sectors, firm sizes, regions, and specific ESG components. In contrast, the evidence supporting the link between ESG practices and financial risk mitigation is stronger: 68% of the reviewed studies reported a positive relationship, while only 5% found negative effects. This review underscores the potential of sustainability as a risk-management mechanism and highlights research gaps that warrant deeper exploration. Limitations include heterogeneity of methodologies, metrics, and contexts among the studies reviewed. Full article
(This article belongs to the Section Applied Economics and Finance)
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30 pages, 434 KB  
Article
Do Strategic Orientations and CSR Disclosures Affect Investment Efficiency? Evidence from Textual Analysis in Emerging Markets
by Zabihollah Rezaee and Javad Rajabalizadeh
J. Risk Financial Manag. 2025, 18(10), 535; https://doi.org/10.3390/jrfm18100535 - 24 Sep 2025
Viewed by 74
Abstract
This study explores how firms’ strategic orientations—operational efficiency, customer intimacy, and product innovation—along with corporate social responsibility (CSR) disclosure, influence investment efficiency in emerging markets. Using 1594 firm-year observations from companies listed on the Tehran Stock Exchange (TSE) between 2015 and 2024, we [...] Read more.
This study explores how firms’ strategic orientations—operational efficiency, customer intimacy, and product innovation—along with corporate social responsibility (CSR) disclosure, influence investment efficiency in emerging markets. Using 1594 firm-year observations from companies listed on the Tehran Stock Exchange (TSE) between 2015 and 2024, we combine quantitative analysis with textual evidence from Management Discussion and Analysis (MD&A) reports. The findings show that operational efficiency and customer intimacy are generally linked to lower investment efficiency, reflecting possible resource misallocation and short-term priorities. In contrast, product innovation has a more nuanced impact: it improves investment efficiency in R&D-intensive sectors and during stable economic periods. CSR disclosure is also negatively associated with investment efficiency, suggesting that while CSR reporting enhances legitimacy and stakeholder trust, it may shift managerial attention and resources away from core investments. Robustness checks—including firm fixed effects, alternative keyword dictionaries, placebo tests, and endogeneity controls—support these results. Additional sub-sample analyses indicate that strategic orientations and CSR disclosure also function as channels of financial innovation: operational efficiency fosters disciplined resource allocation, product innovation supports sustainable growth, and customer intimacy strengthens transparency and stakeholder engagement. Full article
(This article belongs to the Special Issue The Economics of Corporate Social Responsibility and Financial Innovation)
23 pages, 1125 KB  
Article
The Mediating Roles of Corporate Reputation, Employee Engagement, and Innovation in the CSR—Performance Relationship: Insights from the Middle Eastern Banking Sector
by Khodor Shatila, Carla Martínez-Climent and Sandra Enri-Peiró
J. Risk Financial Manag. 2025, 18(10), 534; https://doi.org/10.3390/jrfm18100534 - 23 Sep 2025
Viewed by 28
Abstract
This study investigates how Corporate Social Responsibility (CSR) influences financial performance in the Middle Eastern banking sector through the mediating roles of corporate reputation, employee engagement, and innovation orientation. Drawing on stakeholder theory and the resource-based view, a survey of 297 senior banking [...] Read more.
This study investigates how Corporate Social Responsibility (CSR) influences financial performance in the Middle Eastern banking sector through the mediating roles of corporate reputation, employee engagement, and innovation orientation. Drawing on stakeholder theory and the resource-based view, a survey of 297 senior banking executives was analyzed using structural equation modeling. The results show that CSR has both a direct positive impact on financial performance and an indirect effect by strengthening intangible resources. Among the mediators, innovation orientation emerged as the strongest pathway, followed by employee engagement and reputation. Collectively, the model accounted for more than 60% of the variance in financial performance, confirming that socially responsible strategies are not symbolic but yield tangible economic value. In the Middle Eastern banking sector—characterized by regulatory turbulence, cultural expectations, and digital transformation—CSR initiatives such as financial inclusion programs, green financing, and Sharia-compliant services provide both legitimacy and resilience. These findings highlight the strategic importance of embedding CSR into banking practices, showing that socially responsible institutions not only secure reputational gains but also cultivate motivated employees, foster innovation, and achieve sustainable profitability. By situating CSR within the unique context of Middle Eastern banking, this study extends the literature on CSR—performance linkages in emerging markets and demonstrates how intangible capabilities can be mobilized to secure long-term financial sustainability. Full article
(This article belongs to the Special Issue Sustainability and CSR in Financial Management: Strategies and Risk Implications)
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22 pages, 349 KB  
Article
CEO Entrenchment and the Information in Dividend Decreases
by Joseph T. Halford and Anni Wang
J. Risk Financial Manag. 2025, 18(10), 533; https://doi.org/10.3390/jrfm18100533 - 23 Sep 2025
Viewed by 158
Abstract
We use unique hand-collected data to conduct an initial examination of the relationship between the information in dividend decreases and proxies of chief executive officer (CEO) entrenchment. The evidence suggests that CEO entrenchment weakens the negative stock market reaction to dividend decreases. However, [...] Read more.
We use unique hand-collected data to conduct an initial examination of the relationship between the information in dividend decreases and proxies of chief executive officer (CEO) entrenchment. The evidence suggests that CEO entrenchment weakens the negative stock market reaction to dividend decreases. However, the evidence relating CEO entrenchment to long-term firm outcomes is mixed. Following dividend cuts, CEO entrenchment is associated with better short-term profitability, but bankruptcy is more likely. Following dividend suspensions, long-term profitability is worse, but bankruptcy is less likely. Overall, the evidence is consistent with the notion that entrenched CEOs obscure the bad news in dividend announcements, which is later revealed in the long run. Full article
(This article belongs to the Special Issue Corporate Dividend Payout Policy)
24 pages, 345 KB  
Article
Global Financial Stress and Its Transmission to Cryptocurrency Markets: A Cointegration and Causality Approach
by Sisira Colombage, Asanga Jayawardhana and Giles Oatley
J. Risk Financial Manag. 2025, 18(10), 532; https://doi.org/10.3390/jrfm18100532 - 23 Sep 2025
Viewed by 160
Abstract
This study examines links between global financial stress and cryptocurrency returns from 1 January 2017 to 31 January 2025, while explicitly accounting for commodity markets. We use an econometric toolkit: unit-root and cointegration testing, ARDL bounds, Toda–Yamamoto causality, and a two-state Markov Switching [...] Read more.
This study examines links between global financial stress and cryptocurrency returns from 1 January 2017 to 31 January 2025, while explicitly accounting for commodity markets. We use an econometric toolkit: unit-root and cointegration testing, ARDL bounds, Toda–Yamamoto causality, and a two-state Markov Switching model to trace long-run equilibrium and transmission mechanisms across cryptocurrencies (BGCI), systemic stress (OFR-FSI), volatility measures (VIX, VVIX, VSTOXX, VVSTOXX, MOVE), major equities and bonds, and three commodities (gold, oil, copper). Results show robust long-run cointegration between BGCI and several financial variables, including S&P/ASX 200 and the Bloomberg Barclays Bond Index; models that include commodities continue to support these long-term links. Toda–Yamamoto tests reveal that stress and volatility indices unidirectionally transmit shocks to cryptocurrencies and commodities, while gold displays a bidirectional relationship with BGCI, indicating a conditional safe haven interaction. Markov Switching estimates show amplified co-movement among BGCI, gold and bonds in stress regimes, with the model predominantly remaining in a normal state. Overall, cryptocurrencies are embedded within the broader financial system; commodities, especially gold, are used to moderate the stress crypto transmission and offer conditional diversification value during turmoil. Full article
(This article belongs to the Special Issue The Future of Money: Central Bank Digital Currencies, Cryptocurrencies and Stablecoins, 2nd Edition)
16 pages, 291 KB  
Article
Founder CEOs and Utility Firms’ Financial Choices
by Md Asif Ul Alam, Md Maruf Ul Alam and Toufiq Nazrul
J. Risk Financial Manag. 2025, 18(10), 531; https://doi.org/10.3390/jrfm18100531 - 23 Sep 2025
Viewed by 166
Abstract
Founder CEOs lead a significant number of public U.S. firms, and these firms often differ from other firms led by non-founder CEOs in terms of various important firm characteristics. In our paper, we investigate the financial choices of founder-CEO-led firms and non-founder-CEO firms [...] Read more.
Founder CEOs lead a significant number of public U.S. firms, and these firms often differ from other firms led by non-founder CEOs in terms of various important firm characteristics. In our paper, we investigate the financial choices of founder-CEO-led firms and non-founder-CEO firms in a utility industry setting within the context of the U.S. Our results show that founder CEO status has a significant positive influence on financial choices (cash holdings, investment ratio, equity ratio, and interest coverage) of utility companies. After addressing potential causality and performing additional robust measures, our findings still hold and suggest that CEO origin is important for explaining variation in financial choices of utility companies. Overall, our findings make a valuable contribution to the literature on utility firms, founder CEOs, and CEO characteristics by connecting them through an angle that is previously unexplored. Full article
(This article belongs to the Special Issue Research on Corporate Governance and Financial Reporting)
16 pages, 287 KB  
Article
Do Active Sustainable Equity Funds Outperform Their Passive Peers? Evidence from the COVID-19 Pandemic
by Fei Fang and Sitikantha Parida
J. Risk Financial Manag. 2025, 18(10), 530; https://doi.org/10.3390/jrfm18100530 - 23 Sep 2025
Viewed by 160
Abstract
Sustainable investing has grown rapidly, but it remains unclear whether actively managed sustainable funds outperform passive ones. This study compares the performance of high-sustainable active U.S. equity mutual funds and their index peers from September 2018 to April 2022, dividing the period into [...] Read more.
Sustainable investing has grown rapidly, but it remains unclear whether actively managed sustainable funds outperform passive ones. This study compares the performance of high-sustainable active U.S. equity mutual funds and their index peers from September 2018 to April 2022, dividing the period into pre-crash, crash, and post-crash phases around the COVID-19 market downturn. On average, both active and index funds underperform, with the sharpest losses occurring during the crash. High-sustainable funds outperform low-sustainable ones, particularly during the crash. However, high-sustainable active funds do not outperform their passive counterparts in any period. These results suggest that active management does not offer greater downside protection and raise questions about the higher fees typically charged by actively managed sustainable funds. Full article
(This article belongs to the Section Financial Markets)
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