Search Results (570)

As the global economy undergoes rapid digital transformation, cryptocurrencies have emerged as a prominent alternative class of financial assets. Their decentralized nature, pseudonymity, and lack of centralized oversight have attracted considerable interest among investors while simultaneously raising significant concerns among regulators and compliance professionals. While cryptocurrencies offer benefits such as enhanced accessibility and transactional privacy, they also pose notable risks, particularly their potential misuse in financial crimes, including money laundering. This study explores the perceived risks associated with cryptocurrencies in the context of money laundering, drawing on insights from a survey conducted among 50 financial sector professionals. A quantitative research design was employed, using a structured online questionnaire to assess participants’ awareness, investment behavior, and perceptions of the role of cryptocurrencies in illicit finance and financial system security. The results reveal a complex perspective: while 70% of respondents acknowledged the potential for cryptocurrencies to facilitate money laundering, 60% expressed support for their wider adoption. Notably, statistically significant correlations emerged between active investment in cryptocurrencies and the belief that they could enhance financial market security and reduce laundering risks. However, self-reported knowledge levels and general awareness did not show a significant relationship with perceived risk. The findings underscore the importance of a balanced approach to regulation, one that fosters innovation while mitigating illicit finance risks. The study recommends increased investment in user education, the development of blockchain analytics, the adoption of global regulatory standards and enhanced international cooperation to ensure the responsible evolution of the cryptocurrency ecosystem. Full article

This article aims to create insights concerning the remuneration of executives (also known as vice chancellors (VCs)) in higher education in South Africa. Their remuneration is a trending and contentious topic in the media and literature within the South African context. The motivation for conducting this study is that there are no clear indicators, norms, or standards to measure salaries. Therefore, this study is grounded in agency and institutional theories. Moreover, prior to this study, there were no longitudinal studies in the South African context that have analysed VCs’ salaries, using predictors like student enrolment, return on assets, debt ratio, and revenue. The research design was longitudinal, while the research approach was quantitative. The universities that did not meet the requirements for 2016 to 2023 were excluded from the analysis, which was conducted using Python, version 3.11.7, Python Software Foundation: Wilmington, DE, USA, 2025. Since the data points were small (n = 8), bootstrapping was used to resample 1000 samples. The correlation results showed a significant relationship with the fixed salary, whereas the regression results were not significant. It was found that the VCs’ salary is a larger portion of the fixed salary, and the historical data (2013 to 2016) showed an upward trend; the forecast from 2024 to 2026 showed a flat trend. The forecasts are salient and create insights that will assist remuneration practitioners to budget for VCs’ salaries in order to attract, motivate, and retain them. Full article

This study investigates the multifractal characteristics and nonlinear cross-correlations between two major carbon credit indices—S&P Global Carbon Index and EEX Global Carbon Index—and key global financial assets: the Euro/US Dollar exchange rate, Dow Jones Industrial Average, gold, Western Texas Intermediate, and Bitcoin. Using daily data from August 2020 to June 2025, we apply the Asymmetric Multifractal Detrended Cross-Correlation Analysis framework to examine the strength, asymmetry, and persistence of interdependencies across varying fluctuation magnitudes. Our findings reveal consistent multifractality in all asset pairs, with stronger multifractal spectra observed in those linked to Bitcoin and Western Texas Intermediate Crude Oil price. The analysis of generalized Hurst exponents indicates higher persistence for small fluctuations and antipersistent behavior for large fluctuations, particularly in pairs involving the S&P Global Carbon Index. We also detect significant asymmetry in the cross-correlations, especially under bearish trends in Bitcoin and Western Texas Intermediate. Surrogate data tests confirm that multifractality largely stems from fat-tailed distributions and temporal correlations, with genuine multifractality identified in the S&P Global Carbon Index–Dow Jones Industrial average pair. These results highlight the complex and nonlinear dynamics governing carbon markets, offering critical insights for investors, policymakers, and regulators navigating the intersection of environmental and financial systems. Full article

In this study, we aim to provide a comprehensive analysis of the risk management potential of sectoral Credit Default Swaps (CDSs) within financial portfolios. Our objectives are threefold: (i) to investigate the safe haven properties of sectoral CDSs; (ii) to assess their hedging effectiveness and evaluate the diversification benefits of incorporating sectoral CDSs into both conventional and Islamic stock market portfolios; and (iii) to compare these findings with those obtained from alternative assets such as the VSTOXX, gold, and Bitcoin indices. To achieve this, we estimate time-varying hedge ratios using a range of multivariate GARCH (MGARCH) models and subsequently compute hedging effectiveness metrics. Conditional correlations derived from the Asymmetric Dynamic Conditional Correlation (ADCC) model are employed in linear regression analyses to assess safe haven characteristics. This methodology is applied across different subperiods to capture the impact of the crypto currency bubble and the COVID-19 pandemic on hedging performance. Full article

Due to their vast number and heterogeneity, local public administrations can act as entry points (or attack surfaces) for adversaries targeting national infrastructure. The individual vulnerabilities of these entities function as entry points that can be exploited to compromise higher-level government assets. This study presents a nationwide risk analysis of the exposed perimeter of 7000 municipalities, achieved through the massive collection of 93 technological and contextual variables over three consecutive years and the application of supervised machine learning algorithms. The findings of this study demonstrate that geographical factors are a key predictor of external perimeter cyber risk, suggesting that supra-local entities providing unified, shared security services are better positioned in terms of risk exposure and therefore more resilient. Furthermore, the analysis confirms, contrary to conventional wisdom, that IT budget allocation lacks a significant statistical correlation with external perimeter risk mitigation. It is concluded that large-scale data collection frameworks, enhanced by Artificial Intelligence, provide policymakers with an objective and transparent tool to optimize cybersecurity investments and protection strategies. Full article

Museums play a crucial role in sustainable urban regeneration by maintaining and promoting cultural identity, fostering education, enhancing economic growth, among other factors. The purpose of this study is to scrutinize the dynamic connection between the role of museums and the viable development of cities as well as the salience of this interdependence. Using a qualitative approach, case study and comparative analysis, we examine social, economic, cultural, technological, and environmental criteria as a framework, aiming to elucidate and highlight the significance of implementing cultural policies for the sustainable development of cities in contemporary globalized societies. The correlation under investigation is revealed by evaluating and comparing Athens and Singapore based on the landmark museum of each city. The main argument, derived from the analysis, is that traditional practices function as custodians of heritage, operating as interdisciplinary platforms that foster innovation, inclusivity, and cultural diplomacy. Despite differences in governance and orientation, both case studies reveal how tailored cultural policies can utilize the assets of each institution to support cohesive urban identities and foster cross-cultural engagement. Full article

Carbon emissions in the building materialization stage are highly significant and concentrated. Quantification at this stage is essential for assessing carbon reduction potential, guiding energy-saving strategies, and supporting China’s “dual carbon” goals in the construction sector. Distinct from conventional environmental and energy economics analytical approaches, the building carbon emissions in the materialization stage (BCEMS) in 30 provinces of China from 2010 to 2021 were calculated using multi-source data, and the characteristics of their spatio-temporal evolution were analyzed. The key influencing factors were identified using a geographic detector, and their spatial heterogeneity was analyzed with the Geographically and Temporally Weighted Regression (GTWR) model from a geographical analysis perspective. The results indicated the following: (1) From 2010 to 2021, BCEMS exhibited a trend of an “initial increase followed by a decrease and subsequent fluctuation”, with an average annual growth rate of 4.28%. Building materials were the largest contributor to BCEMS, particularly cement and steel. Spatially, the emissions displayed a pattern of “higher in the east, lower in the west”. High–high-agglomeration areas remained stable over time, primarily in Zhejiang and Fujian provinces, while low–low-agglomeration areas were concentrated in Xinjiang. (2) Single-factor detection revealed that fixed assets, population density, and the liabilities of construction enterprises were the dominant factors driving the emissions’ spatial evolution. Two-factor interaction detection identified the economic society and the construction industry as the key influencing domains. (3) The economic development level and the total population showed a positive correlation with BCEMS, with the effect intensity increasing from west to east. The urbanization level and fixed assets also generally showed a positive correlation with BCEMS; however, their effect intensity initially increased positively from west to east and then turned into a negative enhancement. The findings provide references for implementing regionally differentiated carbon reduction measures and promoting green and low-carbon urban transformation in China’s construction industry. Full article

This study investigates the impact of financial performance and corporate governance mechanisms on environmental, social, and governance (ESG) disclosure in Saudi Arabia, a country undergoing significant institutional transformation under Saudi Vision 2030 and Tadawul’s 2021 ESG reporting reforms. While ESG research has gained traction globally, studies in emerging economies, particularly in the Gulf region, remain limited. This paper addresses this gap by examining whether profitability, measured by return on assets (ROA), and board size influence ESG disclosure. This study analyzes 260 firm-year observations of Saudi non-financial listed companies from 2009 to 2023. Using multiple regression analysis, including ordinary least squares (OLS), fixed effects (FE), and generalized method of moments (GMM), the analysis controls for endogeneity and ensures robust results. Findings indicate that board size had a negative and statistically significant relationship with ESG disclosure. The robustness tests confirm the inverse relationship between board size and ESG. ROA showed no correlation with ESG disclosure in the main findings; however, robustness tests revealed a negative and significant correlation. This study is the first to explore these impacts post Tadawul’s 2021 ESG guidelines. It also offers novel insights into ESG practices aligned with Saudi Vision 2030. This study contributes to the literature by situating ESG disclosure within the Saudi context, highlighting the unique role of governance dynamics in shaping sustainability practices in emerging markets. The results carry practical implications for policymakers, regulators, and corporate boards by recommending stronger governance frameworks, such as board-level ESG committees, executive compensation linked to ESG, and sector-specific disclosure standards. Full article

The knowledge economy has become ever more important for cities and regions, and different types of urban spaces have been created to accommodate its activities. One of the main assets of these spaces is vitality, a quality that is directly related to innovation and is oftentimes considered the result of spontaneous space arrangements. The recent literature, however, shows that urban vitality is not an intangible quality; it can be correlated to different place quality aspects, such as urban morphology, and measured through existing analytical methods. The aim of this paper is to systematize such indicators and use them to develop algorithms that can be subsequently incorporated into a computational tool for the assessment of knowledge territories during the early design stages, to support their spatial planning and development. The Paris-Saclay Urban Campus is used as a case study to understand and assess these vitality and place quality indicators in an existing benchmark. The results can contribute to the serendipity and the success of new or redeveloped knowledge and innovation areas. Full article

The “Lucid Waters and Lush Mountains are Invaluable Assets” idea (i.e., “Two Mountains” concept) has charted a new path for balancing economic and ecological needs. To systematically evaluate the extent to which China’s ecological conservation has supported economic development since 2012, an assessment indicator system was established that employs a coupling coordination degree (D) model, the entropy weight method, and statistical analysis. The results revealed significant correlations between ecological protection and economic development, and D increased from 2012 to 2023. D in China was good (0.6 < D ≤ 0.8) in this period, which indicates that ecological protection has played a growing role in supporting high-quality economic development and that notable progress has been made in the implementation of the “Two Mountains” concept. Both emission reduction and resource conservation were significantly correlated with D. Reducing carbon emissions and lowering energy consumption had stronger effects on coordinated development than reducing pollutant emissions and increasing water productivity. D was highest in East and South China. The “Two Mountains” concept should be implemented to balance ecological protection and economic development and enhance the economic benefits derived from ecological resources. Management measures should be implemented based on local conditions. Ultimately, these changes would help meet established sustainable development goals. Full article

The escalating frequency and severity of natural disasters present significant challenges to the stability and sustainability of global financial systems, with the US stock market being especially vulnerable. This study examines sector-level exposure and contagion dynamics during climate-related disaster events, providing insights essential for sustainable investing and resilient financial planning. Using an advanced econometric framework—dynamic conditional correlation GARCH (DCC-GARCH) augmented with Generalized Hyperbolic Processes (GHPs) and an asymmetric specification (ADCC-GARCH)—we model daily stock returns for 20 publicly traded US companies across five sectors (insurance, energy, automotive, retail, and industrial) between 2017 and 2022. The results reveal considerable sectoral heterogeneity: insurance and energy sectors exhibit the highest vulnerability, with heavy-tailed return distributions and persistent volatility, whereas retail and selected industrial firms demonstrate resilience, including counter-cyclical behavior during crises. GHP-based models improve tail risk estimation by capturing return asymmetries, skewness, and leptokurtosis beyond Gaussian specifications. Moreover, the ADCC-GHP-GARCH framework shows that negative shocks induce more persistent correlation shifts than positive ones, highlighting asymmetric contagion effects during stress periods. The results present the insurance and energy sectors as the most exposed to extreme events, backed by the heavy-tailed return distributions and persistent volatility. In contrast, the retail and select industrial firms exhibit resilience and show stable, and in some cases, counter-cyclical, behavior in crises. The results from using a GHP indicate a slight improvement in model specification fit, capturing return asymmetries, skewness, and leptokurtosis indications, in comparison to standard Gaussian models. It was also shown with an ADCC-GHP-GARCH model that negative shocks result in a greater and more durable change in correlations than positive shocks, reinforcing the consideration of asymmetry contagion in times of stress. By integrating sector-specific financial responses into a climate-disaster framework, this research supports the design of targeted climate risk mitigation strategies, sustainable investment portfolios, and regulatory stress-testing approaches that account for volatility clustering and tail dependencies. The findings contribute to the literature on financial resilience by providing a robust statistical basis for assessing how extreme climate events impact asset values, thereby informing both policy and practice in advancing sustainable economic development. Full article

This study looks at how oversight committees affect CEO compensation governance and how this affects publicly traded banks’ financial performance. It specifically looks at how compensation committee mandates and structural traits affect how CEO compensation is matched to company performance results. The research employs a panel dataset of sample firms across the study period, combining financial performance metrics like return on equity (ROE) and return on assets (ROA). It draws on agency theory and corporate governance theories. In addition to firm-level controls, the research takes into account committee-level factors such independence, experience, frequency of meetings, and ownership. The findings obtained through panel regression methods and testing show that improved pay-performance sensitivity and improved financial performance do not correlate with committee influence, independence, or financial expertise. The importance of empowered oversight committees in reducing interagency conflicts of interest and fostering efficient governance is demonstrated by these findings. By emphasizing how internal governance frameworks can be used to produce long-term organizational goals, the study adds to the discussion surrounding executive compensation. Full article

The incorporation of environmental, social, and governance (ESG) concerns into corporate finance has accelerated globally; nevertheless, empirical data about its effects in the U.S. context is still scarce. This research examines the impact of sustainable financing on the financial performance of non-financial enterprises listed on the New York Stock Exchange (NYSE) from 2008 to 2024. This study used the stakeholder theory and other theories to analyze four aspects of sustainable finance: green financing efforts, emission reduction strategies, sustainable product initiatives, and environmental investment initiatives. The study implemented a dynamic panel regression model with the two-step Generalized Method of Moments (GMM) to mitigate endogeneity and omit variable bias. The findings indicate that green finance, emission reduction strategies, and sustainable product efforts have a positive and significant impact on Return on Assets (ROA) and Return on Net Operating Assets (RNOA), demonstrating their effectiveness in enhancing financial performance. Conversely, environmental investment programs exhibited a strong and negative correlation with financial success, indicating immediate cost implications. These findings emphasize the significance of strategic planning in sustainability investments and reinforce the necessity for legislative incentives to assist enterprises throughout the transition. This study enhances the literature by providing U.S.-specific, component-level insights into the financial implications of sustainable financing, therefore offering pragmatic counsel for managers, investors, and regulators. Full article

This article explores the relationship between corporate financial performance (CFP) and commitment to ESG (environmental, social and governance) practices, using a sample of companies listed on the S&P 500 and TSX 60 indices. By employing a linear regression model, the study examines how financial indicators such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), return on assets (ROA), Assets and Debt influence ESG scores. The results show that financial indicators such as EBITDA, ROA and Assets are positively associated with increased ability to commit resources to ESG practices, except in some cases like when costs associated with ESG initiatives can reduce the competitiveness and profitability of companies in the short term, where ROA is negatively correlated with the adoption of ESG criteria. Also, with regard to the size of companies, thanks to their greater resources, larger companies are more inclined to adopt ESG criteria. These findings enhance the understanding of financial conditions that enable or constrain ESG adoption and provide managerial insights for strategic resource allocation in the pursuit of sustainability goals. Full article

This paper uses a statistical test based on entropy theory to propose a new way to distinguish between interdependence, contagion, and the decoupling hypotheses in the context of shock transmission and spillover. Applying the proposed approach, the three hypotheses are examined when measuring the extent of shock spillover between selected developed and emerging markets during idiosyncratic crisis and normal periods. The US and EU are identified as developed economies. However, emerging markets are classified by regions to determine whether their responses to shocks from developed economies are homogeneous or heterogeneous depending on the region to which they belong. The suggested entropy test is based on the conditional correlations obtained from an asymmetric dynamic conditional correlation generalized autoregressive conditional heteroscedasticity (A-DCC GARCH) model. In addition to economic methods, statistical methods based on the regime-switching technique are used to date the different phases of the global financial crisis (GFC) and the European sovereign debt crisis (ESDC). Our findings show that all emerging markets decoupled from developed economies in at least one of the phases of the two crises. These findings provide valuable insights for policymakers, investors, and asset managers for portfolio allocation and financial regulations. Full article