Search Results (1,552)

The prevailing view is that ESG performance contributes to corporate financial stability, particularly regarding long-term sustainability objectives. However, there is a notable lack of critical research exploring its short-term financial effects, especially within capital-intensive sectors experiencing green transformation. This study examines the theoretical gap by investigating whether increased ESG performance may unintentionally heighten the financial burden and default risk in the short run. To verify the stability of each variable in the series, we employed the short-panel unit root test on panel data from 234 Chinese energy industry companies covering the years 2015 to 2023. Including enterprise fixed effects as well as time fixed effects, we find that higher ESG ratings increase the possibility of default risk in the Chinese energy sector. This effect remains robust after controlling firm size, financial leverage, return on assets, return on equity, earnings per share, beta and firm age. In addition, we conduct robustness checks using alternative default risk measures, both endogeneity- and component-based, and the outcomes demonstrate that the impact is substantial and consistent. Consequently, we may draw the conclusion that raising the ESG rating has an adverse effect on reducing corporate default risk, which fills the knowledge gap regarding the influence of listed companies’ default risk on China’s energy sector. Moreover, it has been found that green innovation plays a strengthening role in the analysis of the interaction term between green innovation and ESG on default risk. This suggests that while green innovation is a strategic initiative aimed at long-term sustainability, it requires a significant amount of capital and resources in the short term, which may result in higher default risk in the beginning. Full article

Economic challenges place lower-income, economically marginalized families at heightened risk for experiencing financial stress, which is associated with a host of adverse family outcomes. Among lower-income families raising young children, existing economic challenges are often exacerbated by the added needs of children, including child-specific expenses (e.g., childcare) and decreased parental earning capacity. In these families, financial stress may strain the coparenting alliance; however, scant research has explored the association, particularly in families with young infants. Informed by family systems theory and the family stress model, the present study utilized an actor–partner interdependence model to explore the relationship between financial stress and the quality of the coparenting alliance within a sample of 214 lower-income opposite-sex couples with or expecting a new baby. This study further examined potential differences between (a) mothers and fathers, (b) cohabiting and married parents, and (c) those in different parenting contexts (i.e., new vs. established parents, recent vs. anticipated births). Results indicated that mothers’ and fathers’ perceptions of financial stress were negatively associated with their own report of coparenting alliance but not their partner’s coparenting alliance. This association was consistent across couple relationship structures and parenting contexts. Implications for policy and practices are provided. Full article

Many companies engage in earnings manipulation that obscures their actual financial condition and sustainability efforts, undermining the credibility of financial reports and eroding stakeholder trust. To address these concerns, the United Kingdom has strictly adhered to International Financial Reporting Standards (IFRS), enhancing financial transparency and reducing the risk of manipulation. This study applies agency theory to examine the effects of earnings management and IFRS adoption on corporate sustainability performance, while also assessing the moderating roles of institutional ownership and board independence. Data were drawn from 248 companies listed on the London Stock Exchange between 2002 and 2024, using purposive sampling and sourced from Thomson Reuters Eikon DataStream. Advanced estimation techniques, specifically the Augmented Mean Group (AMG) and fixed effects models with Driscoll-Kraay standard errors, were employed to address cross-sectional dependence and slope heterogeneity. The results indicate that earnings management, as measured by discretionary accruals, has a significant negative impact on sustainability performance. In contrast, the adoption of IFRS has a positive and significant influence on sustainability outcomes. Additionally, institutional ownership and board independence significantly moderate the adverse effects of earnings management, leading to improved sustainability performance. The findings suggest that managers should enhance the clarity and accountability of financial reporting by implementing robust internal systems aligned with IFRS, conducting regular compliance audits, and training finance staff on current disclosure standards. Full article

Many pharmacy students begin medicinal chemistry with limited experience in chemical structure interpretation and reactivity patterns, making it difficult to connect foundational concepts to real-world drug behavior. We introduced a low-stakes functional group analysis activity that included peer discussion and a follow-up quiz to improve learning and reduce student anxiety. We studied the impact of this activity by comparing Exam 1 scores across three cohorts: one before the activity (2022) and two after implementation (2023 and 2024). The average Exam 1 scores improved in the post-intervention years, and while the overall difference across cohorts did not reach statistical significance, post hoc analysis revealed a significant improvement between the 2022 and 2024 cohorts. The students who engaged more deeply, especially those who performed well on the quiz, consistently earned higher exam scores, with strong positive correlations observed in both years. These results suggest that simple, low-stakes activities that focus on core concepts can promote engagement and support student success, even in challenging, content-heavy courses like medicinal chemistry. Full article

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 paper addresses the lack of hedging effectiveness that yellow corn 1-month futures of the Chicago Mercantile Exchange (CME) offer for cross-hedging the price of Mexican white corn. For this purpose, the authors tested 1013 combinations (portfolios) of the ten most traded futures on the CME and the New York Mercantile Exchange (NYMEX). The results suggest that using a 51.6741% corn and a 48.3259% wheat portfolio mimics the white corn price with a hedging effectiveness of 0.6180. To test the practical use of such a portfolio, the authors backtested its use from 1 January 2000 to 9 February 2025 as a balancing short position for sale of white corn at t + 1. By using the corn–wheat portfolio, the simulated seller (farmer or intermediary) would have earned MXN 5.7664 per kilo traded. The results in this paper provide the first solution to the Mexican white corn cross-hedging problem with a futures portfolio. This hedge can be used as the balancing (short) position for the strike or minimum buy price that the Mexican Government or a financial institution could offer to farmers and intermediaries to enhance food security. 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

Smallholder irrigation farmers play a vital role in sustaining rural communities in South Africa. However, the performance of smallholder irrigators, both as income generators and job creators, has come under scrutiny in recent years. In Limpopo province, a study was conducted in the Vhembe District using cross-sectional data from 95 independent and 165 public smallholder irrigators, which are privately established farmers and users of government-supported and managed irrigation systems, respectively. Qualitative data were collected through questionnaires, key informant interviews, and group discussions. Quantitative data were analyzed by SPSS version 30 using themes and codes, employing inferential statistical methods such as chi-square and t-tests to assess variables related to agrifood systems, crop selection, and market access. The study found that smallholders predominantly favor the production of grains, vegetables, and horticultural crops, with a statistically significant (p < 0.05) similarity between independent and public irrigators. Public irrigators dominate within irrigation schemes at 64% of the total, with X² of 22.7 with 0.001 p-value. Amongst the groups, the income distribution shows a statistically significant difference in earnings between independent and public irrigators (χ² = 25.83, p < 0.001). Informal and formal markets are accessible and available to 59% of independent irrigators, but 30% of public irrigators only access the informal market (p < 0.001). The major identified challenge across all smallholders is the lack of food value addition and commercial packaging. The study recommends the development of food value addition initiatives, adoption of climate-smart practices, maintenance of infrastructure, and improvement of market access to enhance productivity and sustainability. Full article

This study investigated the effects of firm characteristics (external investment and co-CEO structures), managerial characteristics (CEO’s experience and age), and COVID-19 on earnings management in small- and medium-sized enterprises (SMEs). Examining the data of 18,873 Korean SMEs between 2015 and 2020, this study determined the factors influencing discretionary accruals in SMEs. Discretionary accruals were estimated using firms’ financial statements, and the effects of firm and CEO characteristics on the magnitude of the absolute value of discretionary accruals were estimated using random effects panel regression models. The results revealed that SMEs with co-CEO structures (vs. those with single-CEO structures), those led by more experienced CEOs (vs. those with less experienced CEOs), and those led by older CEOs (vs. those with younger CEOs) engage in less earnings management. Conversely, SMEs with external investors engage in greater earnings management than those without external investors. The results also showed that SMEs engaged in less earnings management during the COVID-19 period than during non-COVID-19 periods. Overall, this study is significant because it focuses on SMEs, a group often overlooked in earnings management research, and provides empirical evidence of how COVID-19, a global economic shock, influenced SMEs’ earnings management practices. Full article

The individual’s willingness to pay (WTP) for environmental reduction programs is one way of gauging society’s environmental consciousness. We explore the determinants of an individual’s WTP for a product produced from carbon capture and utilization (CCU) technology in Qatar. A representative questionnaire sample was administered to 1012 respondents in Qatar on habits, perceptions, economic and religious attitudes related to environmental consciousness, and WTP. The findings reveal that environmental concern is significantly enhanced by environmental consciousness, awareness, and education, while environmental awareness also positively influences perceived social norms regarding others’ environmental awareness. Further, environmental consciousness, religiosity, and education are significantly positively associated with the WTP for an eco-friendly product. Also, those who earn high incomes have a greater WTP for eco-friendly products with premium prices of 10–75% higher. Respondents motivated by religious obligation have a significantly greater WTP for eco-friendly products with a 10–30% price premium. These findings imply the need for context-specific strategies that leverage cultural values, address income disparities, and effectively communicate the benefits of green choices to drive the adoption of green products. Full article

This paper examines stochastic cooperation in markets with two sellers who exhibit one-sided dependency. The independent seller’s pricing influences the dependent seller’s demand, but not vice versa. We study the one-dimensional hybrid game class whose parameter is the exogenously given probability of cooperation. In each game of this class, both sellers simultaneously choose prices that determine their endogenous threats, i.e., conflict profits. The sellers are aware of the cooperation probability but cannot condition prices on whether or not there is cooperation. We characterize the equilibrium prices and the sellers’ expected profits. Our main result shows that the independent seller earns higher expected profits when cooperation is more likely. In contrast, the dependent seller earns lower expected profits when the likelihood of cooperation is below a threshold that we characterize explicitly, and higher profits are earned thereafter. These findings suggest that, within our framework, antitrust concerns may be mitigated. Since dependent sellers can incur losses from cooperation, collusion attempts become less viable in markets with one-sided dependency. 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

Context: It has been claimed that recently, in England, the places with the greatest amount of housing built were the places that least needed them. This is an accusation that has echoes in a number of countries around the globe. The lack of construction leads to greater unaffordability and a lower level of economic activity than could have been achieved if labour, particularly those with high human capital, was not so constrained as to where they could afford to live. The recent National Planning Policy Framework for England imposes mandatory targets on housing planning authorities. As such, the following question is raised: will the targets result in additional residential homes being located in places of greater need than the prevailing pattern? Research Questions: The paper sets out to consider the spatial mismatch between housing additions and national benefit in terms of unaffordability and productivity. Specifically, do the concentrations of high and/or low rates of the prevailing rates of additional dwellings and the target rates of adding dwellings correspond with the clusters of high and/or low unaffordability and productivity? A further question considered is: does the spatial distribution of additional dwellings match the clusters of population growth? Method: The values of the variables are transformed at the first stage into Anselin’s LISA categories. LISA maps can reveal unusually high spatial concentrations of values, or clusters. The second stage entails comparing sets of the transformed data for agreement of the classifications. An agreement coefficient is provided by Fleiss’s kappa. Data: The data used is of additional dwellings, the total number of dwellings, population estimates, gross value added per hour worked (productivity data), and house price–earnings ratios. The period of study covers the eight years prior to 2020 and the two years after, omitting 2020 itself due to the unusual impact on economic activity. All the data is at local authority district level. Findings: The hot and cold spots of additional dwellings do not correspond those of house price–earnings ratios or productivity. However, population growth hot spots show moderate agreement with those of where additional dwellings are concentrated. This is in line with findings from elsewhere, suggesting that population follows housing supply. Concentrations of districts with relatively high targets per unit of existing stocks are found correspond (agree strongly) with clusters of house price–earnings ratios. Links between productivity and housing are much weaker. Conclusions: The strong link between targets and affordability suggests that if the targets are met, the claim that the places that build the most housing are the places that least need them can be challenged. That said, house-price–earnings ratios present a view of unaffordability that will favour greater building in the countryside rather than cities outside of London, which runs against concentrating new housing in urban areas consistent with fostering clusters/agglomerations implicit in the new modern industrial strategy. Full article

(1) Background: Psychological distress causes increased smoking frequency. Thus, financial distress (FD), a type of psychological distress, during the COVID-19 pandemic recession is possibly associated with increased smoking frequency. We studied the association between disrupted employment or earnings-associated FD and the number of cigarettes smoked daily, as well as the effects of pre-pandemic regular monthly incomes on the association. (2) Methods: We retrieved the collected data from a former nationwide and community-based study regarding the psycho-socio-economic characteristics of Thai people during the third wave of the COVID-19 pandemic in Thailand in 2021. The participants for this study were current smokers aged ≥ 18 years. General demographics, perceived FD, and pre-pandemic regular monthly incomes were analyzed. Descriptive statistics and multivariate logistic regression with sampling weight adjustments were the analyses used (p < 0.05). (3) Results: 849 current smokers were suitable for statistical analyses. We found that 664 (12.9%) of participants experienced FD, but it did not significantly affect smoking frequency. However, those who had FD and regularly earning ≥ THB 10,000 ($271.11 US) per month was significantly associated with increased daily cigarette use, after adjusting for age and sex (adjusted OR = 2.74; 95% CI = 1.18, 6.37, p = 0.020). (4) Conclusion: FD alone did not affect daily smoking frequency. Understanding the psycho-socio-economic factors is necessary for smoking control during the COVID-19 economic recession. Full article

This study explores how IFRS adoption is associated with analysts’ forecast accuracy, optimism, and dispersion in Saudi Arabia. Drawing on data from publicly listed firms from 2013 to 2020, we assess changes in forecasting behavior surrounding the IFRS transition, accounting for firm-specific and macroeconomic factors. We argue that IFRS is expected to support more transparent financial statements, reduce risk and uncertainty, and offer a standardized and detailed reporting framework that influences analysts’ predictive performance. The findings reveal more accurate forecasts and a decline in both optimism and dispersion following IFRS adoption, suggesting enhanced financial reporting quality and reduced uncertainty. These associations underscore IFRS’s potential role in refining analysts’ earnings predictions and promoting stock market transparency. Full article