Search Results (113)

Cross-industry and cross-country evidence from the ESG–firm value literature indicates no consensus on the ESG performance impact on corporate financial performance. Stemming from the ongoing debate over whether ESG principles enhance or hinder value creation, this study investigates the effect of Environmental, Social, and Governance (ESG) performance on firm value through three proxies: Tobin’s Q (TQ), Price to Book ratio (PB), and Price to Earnings ratio (PE). Using a cross-country and cross-sectoral comparative approach, the study employs static and dynamic panel regression analyses, along with principal component analysis, to test the hypothesized relationships across nine MENA region countries and ten sectors between 2017 and 2022. To the best of the authors’ knowledge, this is the first study to examine ESG’s impact on TQ, PB, and PE while offering a comparative analysis in the MENA region. Empirical results reveal a significantly positive relationship between ESG scores and firm value using TQ and PB ratios, but this relationship is insignificant with the PE ratio. This study contributes to the ESG and financial decision-making literature, providing insights for investors on portfolio optimization and sustainable investing. The findings offer recommendations that further benefit businesses, policymakers, and decision-makers in enhancing their understanding of ESG implications. Full article

This study assesses the financial soundness of Sudanese commercial banks during escalating civil conflict by integrating Altman’s Z-score models with scenario-based stress testing. Using audited financial data from 2016 to 2022 (pre-war) and projections through to 2028, the analysis evaluates resilience under low- and high-intensity conflict scenarios. Altman’s Model 3 (for non-industrial firms) and Model 4 (for emerging markets) are applied to capture liquidity, retained earnings, profitability, and leverage dynamics. The findings reveal relative stability between 2017–2020 and in 2022, contrasted by significant vulnerability in 2016 and 2021 due to macroeconomic deterioration, sanctions, and political instability. Liquidity emerged as the most critical driver of Z-score performance, followed by earnings retention and profitability, while leverage showed a context-specific positive effect under Sudan’s Islamic finance framework. Stress testing indicates that even under low-intensity conflict, rising liquidity risk, capital erosion, and credit risk threaten sectoral stability by 2025. High-intensity conflict projections suggest systemic collapse by 2028, characterized by unsustainable liquidity depletion, near-zero capital adequacy, and widespread defaults. The results demonstrate a direct relationship between conflict duration and systemic fragility, affirming the predictive value of Altman’s models when combined with stress testing. Policy implications include the urgent need for enhanced risk-based supervision, Basel II/III implementation, crisis reserves, contingency planning, and coordinated regulatory interventions to safeguard the stability of the banking sector in fragile states. Full article

In this study, we utilize a unique quarterly dataset of non-GAAP earnings to re-examine the “informational” role of non-GAAP earnings from the perspective of value relevance and earnings predictability in the post-Reg G period. We find that non-GAAP earnings are more value relevant and can better predict future operating earnings of a firm compared to equivalent GAAP earnings. Additionally, we also find empirical evidence suggesting that the difference in the value relevance and earnings predictability between non-GAAP and equivalent GAAP earnings can vary across but cannot be completely mitigated by firm-level characteristics, such as the market value of equity, accruals quality, analyst coverage, and managerial ability of a firm. Moreover, our supplementary analysis reveals that the superior value relevance and predictive power of non-GAAP earnings persist even after the SEC’s release of the Compliance and Disclosure Interpretations (C&DI) in 2010. Overall, our empirical evidence suggests a superior “informational” role of non-GAAP earnings to equivalent GAAP earnings in terms of valuation and predictability on future operating performance in the post-Reg G period. Full article

Timely and informed decision-making is essential for the successful execution of construction projects, where delays and cost overruns frequently pose significant risks. Earned value analysis (EVA) provides a robust, integrated framework that combines scope, schedule, and cost performance to support proactive project control. This study investigates the effectiveness of EVA as a decision-support tool by applying it to two real-life construction case studies. Key performance indicators, including Cost Performance Index (CPI), Schedule Performance Index (SPI), Estimate at Completion (EAC), and Estimate to Complete (ETC), are calculated and analyzed over a specific monitoring period. The analysis revealed a 15.36% cost savings and a 10.42% schedule improvement during the monitored period. By comparing planned and actual performance data, the study demonstrates how EVA enables early detection of deviations, thereby empowering project managers to implement timely corrective actions. The findings highlight EVA’s practical utility in improving project transparency, enhancing cost and schedule control, and supporting strategic decision-making in real-world construction environments. Full article

This study analyses the economic impact of tourism in Iceland, focusing on its contributions to GDP, employment, and foreign currency earnings. This study employs descriptive and comparative secondary data analysis based on available statistics and an extensive literature review to assess the sector’s development, resilience, and sustainability within global and national contexts. The findings confirm that tourism is a key pillar of Iceland’s economy, surpassing traditional export industries in value and generating significant employment opportunities. However, the sector’s volatility exposed during the COVID-19 pandemic and its dependence on international markets reveal structural vulnerabilities that threaten a sustainable future. Beyond economic considerations, this study critically engages with the growing pressures of over-tourism, seasonality, and environmental degradation, particularly in ecologically sensitive areas. Recent scholarship and policy shifts emphasise the need for sustainability indicators, equitable taxation mechanisms, and participatory governance to guide Iceland’s tourism development. This research highlights that balancing economic growth with environmental limits and community well-being is essential for building a more resilient and future-proof tourism model. These insights help inform policymakers, stakeholders, and researchers in aligning tourism strategies with sustainability and diversification goals. Full article

This research empirically investigates how the adoption of restricted stock units (RSUs) affects earnings per share (EPS) and operating profit, focusing on variations across industries. RSUs have emerged as a strategic compensation tool for promoting alignment between employee interests and long-term organizational objectives, while overcoming the short-sighted focus typically associated with conventional stock options. However, previous studies have mainly focused on analyzing the average effect of RSU or verifying only whether there is a short-term improvement in performance after its introduction, and there has been no sufficient review of the long-term effects. In addition, there is a lack of analyses on how the effects of RSU differ by industry. To fill this research gap, this study applied hierarchical regression analysis to S&P 500 company data from 1997 to 2023 to compare and analyze the differential effects of RSU by industry. The analysis showed that the EPS and operating income were only significantly affected by some industries in the early stages of RSU introduction, but the EPS and operating income were significantly improved in all industries in the long term. In addition, it was confirmed that the effects of RSU differ depending on the characteristics of the industry. This study empirically verifies the long-term effects of RSU and the differences by industry, offering practical insights for executives and shareholders when utilizing RSUs as a forward-looking compensation mechanism that fosters sustainable performance and enduring corporate value. Full article

With the expansion of global trade, China’s commodity futures market has become increasingly intertwined with regional maritime logistics. The Ningbo Containerized Freight Index (NCFI), as a key regional indicator, reflects freight rate fluctuations and logistics efficiency in real time. However, limited research has explored how commodity futures data can enhance NCFI forecasting accuracy. This study aims to bridge that gap by proposing a hybrid deep learning model that combines recurrent neural networks (RNNs) and gated recurrent units (GRUs) to predict NCFI trends. A comprehensive dataset comprising 28,830 daily observations from March 2017 to August 2022 is constructed, incorporating the futures prices of key commodities (e.g., rebar, copper, gold, and soybeans) and market indices, alongside Clarksons containership earnings. The data undergo standardized preprocessing, feature selection via Pearson correlation analysis, and temporal partitioning into training (80%) and testing (20%) sets. The model is evaluated using multiple metrics—mean absolute Error (MAE), mean squared error (MSE), root mean square error (RMSE), and R²—on both sets. The results show that the RNN–GRU model outperforms standalone RNN and GRU architectures, achieving an R² of 0.9518 on the test set with low MAE and RMSE values. These findings confirm that integrating cross-market financial indicators with deep sequential modeling enhances the interpretability and accuracy of regional freight forecasting. This study contributes to sustainable shipping strategies and provides decision-making tools for logistics firms, port operators, and policymakers seeking to improve resilience and data-driven planning in maritime transport. Full article

This study investigates the relationship between corporate social responsibility performance and financial performance among firms listed on the Johannesburg Stock Exchange in South Africa. Utilising a multi-metric approach, the research incorporates corporate social responsibility scores; environmental, social, and governance ratings; and the social pillar score to provide a comprehensive analysis. Data from 104 companies with 624 observations from 2017 to 2022 was analysed. This quantitative study employs a Generalised Least Squares estimation, and the findings reveal a significant positive correlation between corporate social responsibility performance and several key financial metrics, including return on assets, earnings per share, market value added, and Tobin’s Q ratio. The results suggest that companies prioritising corporate social responsibility initiatives are likely to experience improved financial outcomes. Furthermore, the study examines the influence of board characteristics on financial performance, identifying a positive effect of gender diversity and negative impacts from board independence and meeting frequency. Overall, this research contributes to the literature on corporate social responsibility and financial performance by highlighting the importance of corporate social responsibility in driving sustainable business practices and enhancing firm performance within the context of an emerging economy. The findings underscore the need for firms to integrate corporate social responsibility into their strategies to promote long-term success while addressing societal challenges. Full article

Alcohol use is closely related to health, emotional state, and social behavior. However, no clear consensus exists on how socioeconomic factors influence drinking habits or how the COVID-19 pandemic affected alcohol use. This study examines these relationships in Japan using panel data from a questionnaire survey (2014–2022), consisting of 10,836 responses provided by 1289 respondents, and logistic regression analysis. The results revealed that males, individuals aged 40–69, cigarette smokers, and those who exercise regularly are more likely to drink alcohol, whereas those working at least 2 days per week, earning higher incomes, and in good health are less likely to drink alcohol. The impact of COVID-19 on drinking behavior varied by region, with significant effects observed in specific regions. Additionally, an identified decline in alcohol use since 2016 highlights rising health awareness and shifting values, particularly among younger generations. These findings underscore the strong association between drinking behavior and socioeconomic attributes and emphasize the need to consider regional differences in policy and cultural influences. Overall, this study provides key insights for future research and public health policies on alcohol use in Japan. Full article

Restricted stock units (RSUs) are a key component of executive compensation schemes, aligning executive incentives with the long-term goals of the company and compensating for the limitations of traditional stock options. This study empirically analyzes the impact of RSUs on corporate performance, particularly earnings per share (EPS) and operating profit. S&P 500 companies’ 27 years of data from 1997 to 2023 were used to evaluate the change in performance before and after the introduction of RSUs, and a paired t-test and hierarchical regression analysis were applied. The research results show that the introduction of RSUs has a stronger performance improvement effect in the 6th to 10th year after the introduction, suggesting that over time, even if RSUs cause short-term cost burdens, they increase the company’s financial stability in the long term and contribute to sustainable growth. In addition, the same analysis was conducted by setting not only EPS but also operating profit as an alternative variable, and it was confirmed that RSUs also have a positive impact on actual profitability improvement. This study emphasizes the need for companies to design RSUs as a strategic compensation system for long-term value creation, not as a short-term performance reward, and suggests the need for a further analysis of the effects of RSUs in various industries and regions. Full article

The subject of this research is the performance of stocks on the Bulgarian Stock Exchange (BSE). The main issue of interest is whether the index price levels are supported by fundamentals or if there is a bubble or undervaluation on the BG stock market. The purpose of this research is to explore the true level of indexes at the BSE, as dictated by fundamentals, and compare it with actual index levels. The research method is based on the comparative analysis of price-earnings ratios (PEs) and price-to-book ratios (PBVs) of the index during the analyzed period. The 2024 PE and PBV of the index are compared with fundamental PE and PBV ratios of the BGBX 40 index, which are derived from the fundamentals, determining the value of stocks in the index. The actual PE and PBV ratios of BGBX 40 look rather low compared with the ones in the leading developed stock markets. At the same time, however, the results of this analysis show that these current PE and PBV ratios are much higher than the benchmark values of the fundamental PE and PBV ratios. In this regard, the current price levels of stocks at the Bulgarian Stock Exchange in 2024 do not seem supported by fundamentals. Full article

Blockchain tokens have accumulated tremendous market value but remain highly controversial, given their price volatility and seemingly speculative nature. Ironically, this very characteristic can foster token retention as users wait for occasions of appreciation. In this paper, we conduct an empirical analysis with 58 tokens in two steps: first, an investigation of the drivers of user activity and token price volatility using a new blockchain token classification framework, searching for possible tokenomics links. Our findings suggest that there is an intrinsic relationship between the way tokens are used as a means of exchange and how token usage dynamics influence user engagement oppositely to market stability. Only some features, such as earning potential and voting rights, foster token-holding strategies, while only Ethereum ecosystem membership has positive effects on price volatility. Second, we analyze the direct relationship between price volatility and active users. Results show that, on average, a 10% increase in volatility is related to a decrease in active addresses ranging between 3.96% and 5.88%. The finding is supportive of the hypothesis that token price volatility may be treated as an opportunity to increase token retention. Full article

The oriental lily ‘Casa Blanca’ is one of the most popular and high-value flowers. The period for keeping these flowers refrigerated is limited. Therefore, forecasting the prices of oriental lilies is crucial for determining the optimal planting time and, consequently, the profits earned by flower growers. Traditionally, the prediction of oriental lily prices has primarily relied on the experience and domain knowledge of farmers, lacking systematic analysis. This study aims to predict daily oriental lily prices at wholesale markets in Taiwan using many-to-many Long Short-Term Memory (MMLSTM) models. The determination of hyperparameters in MMLSTM models significantly influences their forecasting performance. This study employs Optuna, a hyperparameter optimization technique specifically designed for machine learning models, to select the hyperparameters of MMLSTM models. Various modeling datasets and forecasting time windows are used to evaluate the performance of the designed many-to-many Long Short-Term Memory with Optuna (MMLSTMOPT) models in predicting daily oriental lily prices. Numerical results indicate that the developed MMLSTMOPT model achieves highly satisfactory forecasting accuracy with an average mean absolute percentage error value of 12.7%. Thus, the MMLSTMOPT model is a feasible and promising alternative for forecasting the daily oriental lily prices. Full article

The main objective of the paper is to assess the relationship between firms’ financial resilience and firms’ strategic sustainable development vulnerabilities, in the context of implications of the COVID-19 pandemic on firms’ business environment. Background: The last decade has emphasized an increase in business models’ uncertainty and risk exposure. The COVID-19 pandemic has highlighted the awareness in this direction, especially in a changing context, that looks more and more for corporate sector operations’ orientation towards sustainable development. The question we would address in this paper is how the nexus between corporate sustainability performance and corporate financial resilience is affected by management decision through process improvements, product quality assurance, or managers’ preference to improve corporate financials by earnings management practice instead, especially in the context of specific corporate financial risk management. Methods: The data are extracted from the Refinitiv database. The sample is limited to 275 European Union listed firms, selected based on data availability. The empirical analysis consists of an OLS multiple regression. For robustness purposes, a quantile regression model is estimated as well. Results: The approach considers implications of the pandemic on firms’ business environment and earnings management accounting based policies and strategies as well. The result suggests that alignment to sustainability frameworks lead to the deterioration of firms’ financial resilience. Similar results show the negative impact of firms’ financial vulnerability (credit default risk) on firms’ financial resilience. Instead, the risk of bankruptcy, firms’ liquidity, or high product quality and business process improvement determine the positive impact on firms’ financial resilience. Conclusions: The study highlights several insights both for management and policy makers. First, the results underline the relevance of management’s choice for earnings management on ensuring firms’ financial resilience, which ask for better corporate governance and high-quality and effective institutional regulatory and enforcement mechanisms. Second, the paper brings evidence on the impact of the COVID-19 pandemic on firms’ financial sustainable development. Third, the study emphasizes the importance of the efforts of corporate process improvements and high-quality products on generating value-add, by looking on the relevance of those drivers on the level of corporate economic value-add, a measure that limits the impact of discretionary management accrual-based accounting choices on our discussion. Full article

This study explores the evolution of price-to-book (P/B) ratios among European banks from 2005 to 2020, a period where most banks in different countries had a P/B ratio below 1. By dissecting banks’ accounting equity into investor contributions and earnings-derived components, this research aims to evaluate how each component of equity affects these ratios and investigates whether their dynamics shifted during the period. We address a gap in prior research that has not extensively examined how individual equity components affect the overall P/B ratio. This aspect is crucial, especially in scenarios where the increase of specific components compensates for declines in others, thereby stabilizing total equity values. Our methodology involves regression analyses using a panel data model with random effects. The findings reveal that earnings-related equity components significantly influence P/B ratios. In contrast, investor contributions, which strengthen the solvency of the entity, appear to have a minimal impact. Additionally, our analysis highlights a significant quadratic relationship between the P/B ratios and both the profit or loss reported on Income Statements and distributed dividends. Full article