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Entropy-Based Applications in Economics, Finance, and Management, 4th Edition

A special issue of Entropy (ISSN 1099-4300). This special issue belongs to the section "Multidisciplinary Applications".

Deadline for manuscript submissions: 30 April 2026 | Viewed by 3045

Special Issue Editor


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Guest Editor
Faculty of Computer Science, Bialystok University of Technology, Wiejska Street 45A, 15-351 Bialystok, Poland
Interests: information theory; econometrics; statistics; empirical finance; financial economics; operations research in finance; computational economics; stock market microstructure; computing in social science
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Following the success of the three volumes of this Special Issue, with this fourth volume, we aim to provide a forum for the presentation of entropy-based applications in economics, finance, and management studies. The concept of entropy originates from thermodynamics, but it is utilized in many research fields to characterize the complexity of systems and to investigate the information content of probability distributions. Entropy is a general measure, and therefore many definitions and applications have been proposed in the literature.

Areas of interest include, but are not limited to, the following topics:

  • Entropy-based applications in portfolio selection, asset pricing, and risk management;
  • Entropy measures as indicators for systematic risk and market informational efficiency;
  • Entropy optimization approaches in economics and finance;
  • Entropy-based applications in market microstructure research;
  • Shannon theory in multi-criteria decision-making methods with applications to economic and management problems;
  • Structural entropy in network-based applications in economics, finance, and management;
  • Entropy measures in econophysics.

Theoretical and empirical contributions addressing any of the aforementioned topics are especially welcome.

Prof. Dr. Joanna Olbryś
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Entropy is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • information entropy
  • fuzzy entropy
  • maximum entropy
  • copula entropy
  • structural entropy
  • transfer entropy
  • permutation entropy
  • slope entropy
  • approximate entropy
  • sample entropy

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Published Papers (4 papers)

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Research

19 pages, 325 KB  
Article
The Impact of Green FinTech Promote Corporate Carbon Neutrality: Evidence from the Perspective of Financing Incentives and Scale Quality
by Lei Zhuang and Chuang Wu
Entropy 2026, 28(1), 6; https://doi.org/10.3390/e28010006 - 20 Dec 2025
Viewed by 447
Abstract
As an in-depth integration of green capital chains and technological innovation chains, green fintech provides strong support for enterprises in promoting green and low-carbon development and achieving carbon neutrality. Based on relevant data from Chinese listed companies between 2014 and 2023, this study [...] Read more.
As an in-depth integration of green capital chains and technological innovation chains, green fintech provides strong support for enterprises in promoting green and low-carbon development and achieving carbon neutrality. Based on relevant data from Chinese listed companies between 2014 and 2023, this study constructs indices for green fintech development and corporate carbon neutrality to empirically examine the impact of green fintech on corporate carbon neutrality. Benchmark regression results show that green fintech exerts a significantly positive effect on corporate carbon neutrality. A mediation analysis of financing incentives indicates that alleviating corporate financing constraints and reducing financial distress are effective pathways through which green fintech facilitates carbon neutrality. Furthermore, a moderating effect analysis reveals that green fintech plays a more pronounced role in enhancing carbon neutrality for enterprises with higher audit quality and larger operational scales. Accordingly, policy recommendations are proposed, focusing on establishing a green fintech service-sharing platform, providing targeted policy support, and improving carbon information disclosure mechanisms. Full article
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19 pages, 1866 KB  
Article
A Cognitive Perspective on Information Frictions in Labor Markets
by Zeqiang Zhang and Ruxin Chen
Entropy 2025, 27(12), 1182; https://doi.org/10.3390/e27121182 - 21 Nov 2025
Viewed by 504
Abstract
During the Great Recession, labor markets often exhibit a slow unemployment recovery and persistent outward shifts in the Beveridge curve, which suggests a decline in the efficiency of the job-matching process. While it is often explained by worker search intensity, we argue that [...] Read more.
During the Great Recession, labor markets often exhibit a slow unemployment recovery and persistent outward shifts in the Beveridge curve, which suggests a decline in the efficiency of the job-matching process. While it is often explained by worker search intensity, we argue that the direction of search behavior also matters by proposing a stylized theoretical model based on the Free Energy Principle. Through modeling agents who actively divide their effort between applying for jobs and learning about the market’s new state, our framework shows that agents endogenously shift effort from applications to learning when their uncertainty is high. Building on this micro-foundation, we design a macroeconomic model where matching efficiency is no longer an external parameter but is instead governed by two cognitive factors: the share of unemployed workers with misaligned beliefs and the average learning effort of the informed. Simulation results show that a structural shock will divert effort to learning and depress matching by creating widespread uncertainty, and the subsequent slow recovery is governed by the realignment of collective beliefs. Our work provides a cognitive explanation for this observed persistence of unemployment and the shift of the Beveridge curve. Full article
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28 pages, 986 KB  
Article
Unlocking Carbon Emissions and Total Factor Productivity Nexus: Causal Moderation of Ownership Structures via Entropy Methods in Chinese Enterprises
by Ruize Cai, Jie You and Minho Kim
Entropy 2025, 27(10), 1048; https://doi.org/10.3390/e27101048 - 9 Oct 2025
Cited by 1 | Viewed by 848
Abstract
Amidst global imperatives for environmental sustainability, this study investigates the nexus between carbon emissions reduction (CER), ownership structures, and total factor productivity (TFP) in Chinese enterprises—recognized as vital economic drivers facing carbon emissions pressures. Based on the theoretical frameworks of innovation offsets, agency [...] Read more.
Amidst global imperatives for environmental sustainability, this study investigates the nexus between carbon emissions reduction (CER), ownership structures, and total factor productivity (TFP) in Chinese enterprises—recognized as vital economic drivers facing carbon emissions pressures. Based on the theoretical frameworks of innovation offsets, agency cost theory, and upper echelons theory, with data from CSMAR (2009–2023), we proposed a positive effect of CER on TFP while examining the moderating roles of ownership structure metrics: chairman shareholding ratio, manager shareholding ratio, and ownership–control separation ratio. TFP estimation employed dual approaches: mean consolidation (TFP-Mean) and entropy weighting (TFP-Entropy) methods. The results confirmed CER exerts significantly positive impacts on TFP, with ownership structures demonstrating statistically significant yet directionally heterogeneous moderation effects. Heterogeneity analysis reveals heightened TFP sensitivity to carbon emission initiatives among private enterprises, foreign-owned enterprises, and small enterprises. Notably, the entropy weighting method exhibits substantial comparative advantages in TFP measurement. These findings underscore that advancing TFP necessitates simultaneously optimizing carbon emissions efficiency and ownership governance. Full article
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34 pages, 9259 KB  
Article
Dynamic Evolution and Convergence of the Coupled and Coordinated Development of Urban–Rural Basic Education in China
by Fangyu Ju, Qijin Li and Zhiyong Chen
Entropy 2025, 27(10), 1021; https://doi.org/10.3390/e27101021 - 28 Sep 2025
Viewed by 730
Abstract
Understanding the coupled and coordinated development of China’s urban and rural basic education systems is crucial for fostering their interaction and synergistic growth. Using China’s provincial panel data from 2011 to 2023, this study measures the coupled and coordinated development level of urban–rural [...] Read more.
Understanding the coupled and coordinated development of China’s urban and rural basic education systems is crucial for fostering their interaction and synergistic growth. Using China’s provincial panel data from 2011 to 2023, this study measures the coupled and coordinated development level of urban–rural basic education (CCD-URBE) via the entropy weight method, G1-method and coupling coordination degree model. On this basis, the Dagum Gini coefficient decomposition method, traditional and spatial Markov chain models, as well as convergence test models are employed for empirical research. The results show that: (1) During the study period, the CCD-URBE across the nation and the four major regions improves significantly. Both intra-regional and inter-regional disparities show a consistent downward trend. Inter-regional disparities are the main source of the overall disparities, and the contribution rate of transvariation density to the overall disparities exhibits the most significant increase. (2) The CCD-URBE demonstrates strong stability, as most regions tend to maintain their original CCD-URBE grades. Meanwhile, neighborhood grades moderate the local transition probability significantly. Neighborhoods with high CCD-URBE promote the upward improvement of the local CCD-URBE, while those with low CCD-URBE inhibit it. (3) The CCD-URBE across the nation and the four major regions shows obvious trends of σ-convergence, absolute β-convergence, and conditional β-convergence. The central region, which has lower CCD-URBE, exhibits higher convergence speed. Based on these findings, targeted policy implications are derived. Full article
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