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Finance in a Sustainable Environment: Uncertainty and Decision Making

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (31 July 2020) | Viewed by 6979

Special Issue Editors


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Guest Editor
Department of Business Management, Faculty of Business and Economics, Universitat Rovira i Virgili, 43204 Reus, Spain
Interests: financial markets; financial risk management; financial mathematics; banking; application fuzzy sets in finance; uncertainty; bioeconomy

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Guest Editor
Department of Business Management, Faculty of Business and Economics, Universitat Rovira i Virgili, 43204 Reus, Spain
Interests: financial markets; financial risk management; memory; artificial neural networks; self-organizing maps; uncertainty
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Decision-making processes for Economics and Business in the 21st century are conditioned by two important factors: on the one hand, because of the great importance of environmental, sustainability, and social responsibility issues and, on the other hand, because of the uncertain evolution of macroeconomic and business.

Based on this reality, traditional decision-making models are no longer valid in some cases.

Firstly, it is necessary to take into account some variables such as greenhouse gases emissions, waste treatment, clean production, recycling, working conditions, transparent and reliable information, etc. Furthermore, there are several variables that can be measured in quantitative terms, but others are more complex to analyze. That is why it would be necessary to consider a different approach. On the other hand, the existence is currently unthinkable of models that use some variables as certain to predict the future, assuming the stationarity of the economic system.

With this Special Issue, we propose to give the opportunity to researchers to present models, algorithms or procedures that could facilitate decision-making processes in a financial context, but considering corporate social responsibility, sustainability, and being transparent and reliable. As this information used to be incomplete and uncertain, these models must help to approach realities by being laxer, which means perhaps less bright, but trying to reach a high level of reality.

Prof. Antonio Terceño
Dr. Maria Teresa Sorrosal-Forradellas
Guest Editors

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 100 words) can be sent to the Editorial Office for announcement on this website.

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. Sustainability is an international peer-reviewed open access semimonthly 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 2400 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

  • Uncertainty
  • Decision making
  • Social responsibility
  • Sustainable finance
  • Social and sustainability factors

Published Papers (2 papers)

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Research

24 pages, 439 KiB  
Article
Impact of Economic Policy Uncertainty on Trade Credit Provision: The Role of Social Trust
by Peng Liu and Daxin Dong
Sustainability 2020, 12(4), 1601; https://doi.org/10.3390/su12041601 - 20 Feb 2020
Cited by 15 | Viewed by 3100
Abstract
This paper explores the impact of economic policy uncertainty (EPU) on trade credit while taking into account the interactive role of social trust. The analysis is based on the panel data econometric model with fixed effects. Using firm-level data across 16 economies from [...] Read more.
This paper explores the impact of economic policy uncertainty (EPU) on trade credit while taking into account the interactive role of social trust. The analysis is based on the panel data econometric model with fixed effects. Using firm-level data across 16 economies from 1995Q1 to 2015Q1, we find that (i) there exists a negative and highly significant relationship between economic policy uncertainty and the provision of trade credit; (ii) this relation is weaker for firms in countries with higher levels of social trust; and (iii) the effects of EPU and social trust are both more substantial for firms in more financially constrained industries. The impact of social trust is not a result of people’s high confidence in government, an effective legal system of enforcing contracts, a high-quality institutional system or an excellent system of protecting shareholders. Our result is robust if we exclude business cycle effects or use an alternative measure of financial constraints. Full article
(This article belongs to the Special Issue Finance in a Sustainable Environment: Uncertainty and Decision Making)
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14 pages, 434 KiB  
Article
On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region
by Chunling Li, Khansa Pervaiz, Muhammad Asif Khan, Faheem Ur Rehman and Judit Oláh
Sustainability 2019, 11(23), 6636; https://doi.org/10.3390/su11236636 - 24 Nov 2019
Cited by 29 | Viewed by 3554
Abstract
In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that [...] Read more.
In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that financial markets are sensitive to CR announcements, and market reactions to such announcements (both upgrading and degrading) are not the same. Using the framework of an autoregressive distributed lag setting, the present study attempted to empirically test the linear and non-linear impacts of CR on financial market development (FMD) in the European region. Nonlinear specification is capable to capture asymmetries (upgrades and downgrades) in the estimation process, which have not been considered to date in financial market literature. Overall findings identified long-term asymmetries, while there was little evidence supporting the existence of short-term asymmetries. Thus, the present study has extended the financial market literature on the subject of the asymmetrical impact of a sovereign CR on European FMD and provides useful input for policy formation taking into account these nonlinearities. Policies solely based upon linear models may be misleading and detrimental. Full article
(This article belongs to the Special Issue Finance in a Sustainable Environment: Uncertainty and Decision Making)
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