Search Results (6,182)

The Basel Accords refer to a series of international banking regulatory frameworks developed by the Basel Committee on Banking Supervision to strengthen the stability and resilience of the global banking system. Introduced as Basel I, Basel II, and Basel III, these accords establish minimum capital requirements, risk management standards, and supervisory principles for internationally active banks. Their primary purpose is to reduce the risk of bank failure, promote financial stability, and enhance consistency in banking regulation across jurisdictions. The Basel III framework and its 2017 Final Reforms represent the most advanced stage of this regulatory evolution, addressing weaknesses revealed by the global financial crisis and subsequent regulatory experience. Banking institutions play a central role in economic development, making their stability essential. The global financial crisis that began in 2007 exposed significant weaknesses in existing regulatory frameworks and led to the failure of several major banks, despite the earlier establishment of Basel I and Basel II by the Basel Committee on Banking Supervision. These shortcomings prompted the development of the Basel III framework as a direct response to the crisis. However, early criticisms of the initial Basel III Accord, particularly regarding variability in risk-weighted assets, reliance on internal models, and opportunities for regulatory arbitrage, led the Basel Committee to issue the Basel III Final Reforms in 2017, which represented a substantial upgrade to the post-crisis regulatory architecture. This study reviews the evolution of the Basel Accords; examines the key components of Basel I, Basel II, and Basel III; and analyses the enhancements introduced through the Basel III Final Reforms. It also considers the major arguments and criticisms surrounding these accords, highlighting the persistent challenges of achieving global regulatory consistency. Given the inability of earlier Basel frameworks to prevent bank failures and the fact that many jurisdictions have yet to fully implement the 2017 reforms, the paper underscores the need for ongoing evaluation of international banking regulation as national authorities adapt and refine their supervisory approaches to strengthen financial stability. Full article

Forest Rights Mortgage Loans (FRMLs) have grown quickly in China’s collective forest areas, even though the basic conditions for this type of lending remain far from ideal. In many places, forest holdings are small and scattered, property rights are complex and not fully consolidated, and channels for disposing of collateral are limited. Under these circumstances, the Fulin Loan Model (FLM) in Fujian provides a useful case for understanding how forest-rights lending can still function in practice. Drawing on fieldwork, semi-structured interviews, and process tracing, this study explores both how the model was established and how it has been sustained over time. The analysis suggests that the FLM is neither a straightforward market-based lending tool nor merely a top-down policy arrangement. Rather, it relies on a more mixed form of governance in which local government support, banking procedures, and village-level social relations are brought together through specific organizational arrangements. These arrangements help lower the costs of early institutional experimentation, distribute and manage lending risks, and translate locally rooted trust into a form of credit support that formal financial institutions can recognize. As a single-case study, the FLM points to one possible way in which rural finance can be made workable under conditions of incomplete markets and strong social embeddedness. Full article

This paper examines whether climate, geopolitical and economic policy uncertainty indices improve Value-at-Risk (VaR) and Expected Shortfall (ES) forecasts for green and brown stocks. We extend the Realized-ES-CAViaR framework by incorporating physical and transition climate risk, geopolitical risk and economic policy uncertainty indices alongside a high-low range volatility estimator. Using daily data for the iShares Global Clean Energy ETF (ICLN) and the iShares Global Energy ETF (IXC) over the period January 2012–December 2024, we evaluate alternative model specifications at the 1% and 2.5% risk levels through backtesting procedures, strictly consistent scoring rules and the Model Confidence Set methodology. Results reveal a pronounced asymmetry in the predictive content of risk indices across asset classes and quantile levels. Transition climate risk dominates tail-risk forecasting at the 1% level for both asset classes, while geopolitical risk and economic policy uncertainty emerge as the leading factors at the 2.5% level for green and brown stocks, respectively. These findings highlight the heterogeneous channels through which uncertainty shocks propagate into financial tail-risk, with direct implications for risk management and regulatory oversight during the low-carbon transition. Full article

The global landscape of sustainability challenges has become increasingly complex, characterized by varying regulatory frameworks and market maturity across different nations. The financial significance of environmental, social, and governance (ESG) factors is influenced by industry and firm-specific attributes. Therefore, this study employs an integrated decision support framework that combines grey relational analysis (GRA) models including Deng’s GRA, absolute GRA, and a second synthetic grey relational analysis (SSGRA) with firm-level panel regressions to compare ESG and financial performance linkages across 11 Middle East and Africa (MEA) countries and industrial sectors. Furthermore, the study utilized a sensitivity analysis to check the robustness of SSGRG. Results indicate considerable variability in the relationships between ESG and financial performance across the region. The economies of the Gulf Cooperation Council (GCC) showed the most robust positive relationship between ESG factors and financial performance based on SSGRG, with Kuwait (0.82), Qatar (0.81), and Saudi Arabia (0.80) predominantly influenced by the social and governance dimensions. Conversely, a weak correlation was demonstrated in Egypt (0.54), Nigeria (0.53), and Kenya (0.56). Moreover, financials, communication services, and materials sectors exhibit the greatest integration of ESG factors into financial performance, with composite SSGRG values ranging from 0.75 to 0.78. In contrast, the information technology and energy sectors demonstrate weak association, with composite SSGRG values falling below 0.60. Furthermore, a conservative maximin analysis reveals that corporate governance in Kenya and environmental performance in Oman are identified as the weakest relationship at the country level, while governance in the information technology and energy sectors, environmental management in real estate, and social performance in consumer discretionary sectors are highlighted as weak connections. This study addresses a gap in the literature by developing a novel decision-support framework, providing fresh empirical evidence from emerging markets, and offering theoretical insights into the into influence of stakeholder and institutional factors on ESG value creation. This study provides implications for investors, corporate managers, and policymakers on sustainable finance in emerging markets and presents a decision-making framework that emphasizes ESG initiatives to enhance financial performance. Full article

The digital transformation of entrepreneurial finance has progressed beyond basic FinTech adoption toward the deeper digitalization of financial processes and the integration of artificial intelligence (AI). Yet, firms, particularly non-financial SMEs, vary substantially in their ability to convert these technologies into superior entrepreneurial, market, and financial outcomes. This study develops and tests a capability-based model explaining how FinTech-enabled financial process digitalization (FPD) and AI use shape entrepreneurship by influencing entrepreneurial performance outcomes. In line with current developments in digital finance, AI use is conceptualized as an embedded and complementary feature of FinTech-enabled financial process digitalization rather than an independent technological category. Drawing on the resource-based view and behavioral finance, we propose digital financial capability (DFC) as a central mechanism through which FinTech-enabled digitalized finance creates value, while credit fear is conceptualized as a behavioral constraint that limits entrepreneurial outcomes. We further posit customer satisfaction as a market-facing outcome linking financial capabilities to firm performance. Using survey data from 318 non-financial SMEs operating in Greece and applying Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings show that FPD and AI use significantly enhance DFC, which in turn increases customer satisfaction and entrepreneurial performance. In addition, financial process digitalization reduces credit fear, thereby mitigating its negative impact on entrepreneurial performance. By shifting the focus from technology adoption toward AI-supported capability development within digitally enabled financial processes and behavioral mechanisms, this study advances FinTech and entrepreneurship research and offers actionable insights for managers and policymakers seeking to leverage digital finance for sustainable entrepreneurial value creation. Full article

A major connectivity gap arises from the misalignment between the forward-looking climate disclosures required by IFRS S2 and the historically rooted asset valuations mandated by IAS 36. This misalignment can cause the overvaluation of carbon-intensive assets and disrupt capital allocation decisions. This research specifically examines transition risks, such as carbon pricing, regulatory shocks, and technological disruption, and quantifies the financial externality using a combination of deterministic impairment testing and stochastic climate scenarios. We create a constructive framework and develop a model of a Synthetic Representative Firm, calibrated to major integrated steel producers in Europe. To generate nonlinear Green Swan shocks for Value-in-Use, the process combines Monte Carlo simulation with the Merton Jump-Diffusion model. This comparison shows the difference between the steady Management View and the volatile Market View. Empirical results reveal a material Sustainability Discount, representing a substantial erosion in the recoverable amount under IFRS S2 transition risk scenarios compared to the IAS 36 Deterministic Baseline. Simulations show a strong probability of asset stranding due to restricted cost pass-through, indicating that older assets may face elevated impairment risks under disorderly transition scenarios. Traditional deterministic models may not fully capture aspects of Double Materiality, potentially leaving balance sheets less responsive to transition risks. Integrating digitalization and the Circular Carbon Economy (CCE) framework presents a strategic method for averting value destruction. Therefore, this research supports the integration of stochastic transition risk modeling into impairment testing to achieve faithful financial representation. Full article

Data centers are critical digital infrastructure supporting cloud computing, artificial intelligence, and global information services. Despite their high-reliability design, they remain vulnerable to fire incidents due to continuous operation, high electrical loads, dense power systems, and the increasing use of lithium-ion batteries. Although such events are rare, their consequences can be severe, including service disruption, equipment damage, financial loss, and risks to data integrity. This study presents a systematic literature review of fire safety risk management frameworks in data centers, following PRISMA guidelines. Peer-reviewed studies published between 2020 and 2025 were retrieved from Scopus and Web of Science, screened, and appraised using structured quality criteria. Twelve empirical studies were synthesized and benchmarked against NFPA 75 and NFPA 76 standards. The findings are organized into three domains: Strategic Management, Fire Risk, and Fire Preparedness. The results show a strong focus on technical prevention and electrical hazards, while organizational readiness, emergency response, and recovery remain underexplored. Benchmarking indicates that industry standards adopt a more comprehensive lifecycle approach than the academic literature. This study reframes data center fire safety as a socio-technical reliability system and highlights critical gaps, providing a foundation for future research and improved fire safety governance and resilience. Full article

Crypto-asset markets have been rapidly evolving during the past years, being under the spotlight of a diverse set of actors in the financial ecosystem, including investors, financial institutions, regulators and academics. Their potential interconnections with the traditional financial markets are important, and identifying them can provide useful insight in a diversity of areas such as risk contagion and mitigation, price formation, portfolio management and regulatory framework design. In order to identify such interconnections, various lines of research are followed. Specifically, the correlation between prominent stock market indices and crypto-assets from 2018 to 2025 is examined, while their volatility is also evaluated. Furthermore, the relevant effect of news, events and announcements is explored. The results are based on both daily and high-frequency datasets, with the use of the latter focusing on intra-day variation. The analysis of the results identifies existing interconnections between 2020 and 2025, as well as the important respective impact of news and announcements. An additional generic outcome is the usefulness of high-frequency datasets in the crypto-asset context. The conclusions are useful for all actors in the financial ecosystem. Future work can focus on the extension of the research to additional markets or crypto-assets. Full article

Non-convex stochastic optimization presents fundamental mathematical challenges across machine learning, wireless networks, data center resource allocation, and optical wireless communication systems, where complex loss landscapes with multiple local minima and saddle points impede classical variational inference methods. This paper introduces the Quantum-Inspired Variational Inference (QIVI) framework, which systematically integrates quantum mechanical principles (superposition, entanglement, and measurement operators) into classical variational inference through rigorous mathematical formulations grounded in Hilbert space theory and operator algebras. We develop a unified optimization framework that encodes classical parameters as quantum-inspired states within finite-dimensional complex Hilbert spaces, employing unitary evolution operators and adaptive basis selection governed by gradient covariance eigendecomposition. The core mathematical contribution establishes that QIVI achieves a convergence rate of $\mathit{O}({log}^{2}T/T^{1/2})$ for $\sigma$-strongly non-convex functions, provably improving upon the classical $\mathit{O}\left(T^{-1/4}\right)$ rate, yielding a theoretical speedup factor of $1.85$–$1.96\times$. Comprehensive experiments across synthetic benchmarks, Bayesian neural networks, and real-world applications in network optimization and financial portfolio management demonstrate 23–$47\%$ faster convergence, 15–$35\%$ superior objective values, and 28–$46\%$ improved uncertainty calibration. The principal contributions include: (i) a rigorous Hilbert space-based mathematical framework for quantum-inspired variational inference grounded in operator algebras, (ii) a novel hybrid quantum–classical algorithm (QIVI) with adaptive basis selection via gradient covariance eigendecomposition, (iii) formal convergence proofs establishing provable improvement over classical methods, (iv) comprehensive empirical validation across diverse problem domains relevant to machine learning and network optimization, and (v) demonstration of the framework’s applicability to optimization problems arising in wireless networks, data center resource allocation, and network system design. Statistical validation using the Friedman test (${\chi }^2=847.3$, $p<0.001$) and post hoc Wilcoxon signed-rank tests with Holm–Bonferroni correction confirm that QIVI’s improvements over all baseline methods are statistically significant at the $\alpha =0.05$ level across all benchmark categories. The framework discovers $18.1$ out of 20 true modes in multimodal distributions versus $9.1$ for classical methods, demonstrating the potential of quantum-inspired optimization approaches for challenging stochastic problems arising in machine learning, wireless communication, and network optimization. Full article

Project-based organizations (PBOs) face persistent challenges in managing workload fluctuations that influence performance, competitiveness, and resource sustainability. Although previous research has explored bidding strategies and project inflows and outflows, few studies have systematically modeled workload-capacity dynamics or assessed policy responses to manage them effectively. To address this gap, this study develops a system dynamics (SD) model that integrates both pre-award and post-award project phases with internal and external organizational processes. Data for model development were drawn from the literature, industry reports, and expert interviews, resulting in the identification of 28 variables organized into subsystems covering demand, capacity planning, work execution, competitiveness, and financial performance. The model was validated through dimensional and structural tests, expert review, and further examined using social network analysis (SNA) and sensitivity analysis. The SNA results identified workload, production rate, and organizational capacity as the most influential variables. Sensitivity analysis conducted through Monte Carlo experiments, employing screening, regression, and ANOVA (analysis of variance) methods, revealed that capacity adjustment flexibility, minimum capacity, and demand level are critical factors influencing organizational stability. The validated model was then applied to evaluate policy alternatives under two distinct market conditions. Findings indicate that in lowest-price environments, a competitive, market-share-oriented policy enhances utilization and responsiveness, whereas in average-price markets, a stable capacity policy yields more sustainable outcomes. These results demonstrate how project-based organizations can strategically adjust bidding and capacity policies to stabilize workload dynamics and improve long-term operational resilience under different market conditions. The study contributes theoretically by extending the application of SD modeling to workload-capacity management in PBOs and contributes practically by offering a decision-support tool that helps managers assess capacity strategies, reduce risks, and align organizational policies with long-term sustainability objectives. Full article

Latin America faces growing challenges in the management of municipal solid waste (MSW). This is particularly evident in medium-sized and metropolitan cities where rapid urbanization, limited infrastructure, and high proportions of organic waste (40–70%) converge. This review synthesizes the most recent advances in organic waste management, valorization strategies, environmental performance, and policy frameworks in Mexico and Latin America. To provide a comprehensive overview, evidence from studies on informal recycling systems, route optimization, sustainable landfill siting, food waste valorization, life cycle assessments (LCAs), and biogas production is integrated. Techno-economic analyses of energy recovery from organic fractions are specifically reviewed. This review highlights that valorization of organic waste through composting, anaerobic digestion, food supplementation, and bioproduct generation can reduce greenhouse gas emissions by 40–70% compared to landfilling, with AD–composting hybrids achieving the highest reductions of 60–70%. Community composting achieved moderate reductions, 30–50%, but at significantly lower cost and with greater social co-benefits. These alternatives for valorizing the organic fraction extend the lifespan of both confined and open landfills. It also contributes to mitigating the public health impacts related to open dumping, disease vectors, and contaminated leachate. In short, this review also highlights shortcomings in policy coherence, financial mechanisms, source separation, and technology adoption. A strategic framework is proposed that prioritizes decentralized treatment systems, the integration of informal recyclers, tax incentives, community-based waste separation, and planning based on Life Cycle Assessment (LCA). The findings point to a viable strategy for transitioning from landfill dependency to circular waste management systems that improve the quality of life for the population of Latin America and the Caribbean. Full article

To address escalating climate challenges, China has implemented a multi-tiered low-carbon policy framework aimed at achieving carbon peaking and carbon neutrality, profoundly reshaping firms’ strategic and financial behaviors. Using a panel of Chinese listed firms from 2007 to 2022, this study examines how low-carbon policies affect corporate earnings management choices and the underlying mechanisms. The results show that low-carbon policies significantly restrain accrual-based earnings management while simultaneously promoting real earnings management, indicating a clear substitution effect; these findings remain robust across multiple robustness checks. Mechanism analyses reveal that rising financing costs and enhanced digital transformation induced by low-carbon policies curb accrual-based earnings management, whereas increased financial risk and weakened debt-paying ability stimulate real earnings management. Further heterogeneity analyses suggest that the inhibitory effect on accrual-based earnings management is stronger among firms subject to greater analyst coverage and media scrutiny, while the shift toward real earnings management is more pronounced among firms with weaker profitability and those located in regions with lower innovation capacity. Overall, this study deepens the understanding of the microeconomic consequences of low-carbon policies and provides policy-relevant insights for refining green regulatory frameworks and promoting sustainable corporate development. Full article

After major disruptive events, particularly natural and human-made disasters, community leaders face the challenge of rebuilding societal infrastructure and managing the allocation of funds, which can affect the duration of recovery periods. Decision-makers must quickly determine how to allocate financial resources while minimizing population distress. Conventional methods of assessing damage and evaluating relief requirements fall short of meeting the urgent recovery needs after a disaster, potentially leading to negative effects on communities, such as involuntary relocation and neighborhood gentrification. The study evaluates current methods and technologies to propose a new approach that leverages low-cost consumer drones and modern image analysis techniques to support initial damage assessments and track recovery progress, thereby promoting the dynamic allocation of limited resources. Using low-cost drone imagery enables rapid, cost-effective data collection and dynamic analysis through iterative reviews during the disaster response and recovery phases that can adjust baseline disaster funding allocations. The study investigates the potential of temporary blue tarp roofs (“blue roofs”) as a metric for recovery progress during the 2020 tornado in Middle Tennessee and conducts an R-squared and error analysis. The goal of this research is to evaluate an affordable and efficient data analysis method (e.g., modern image analysis; artificial intelligence; low-cost drones) that can improve post-disaster resource allocation and inform decision-making for governmental and planning officials. Full article

Large-scale infrastructure development disrupts not only the material foundations of agrarian livelihoods but also the social and ecological systems through which households manage uncertainty. This study argues that the livelihood shifts observed among households affected by the construction of the Bili-Bili Reservoir in Lanna Sub-district, Gowa Regency, Indonesia, are best understood as products of contextual rationality operating at the individual level and enacted through household-level strategies. Using a qualitative phenomenological approach with 15 purposively selected informants, each representing a distinct household directly affected by the reservoir’s construction functioned as a structural shock that exceeded the adaptive capacity of the existing agrarian system, triggering differentiated household responses—including reservoir fisheries, small-scale trade, home-based enterprise, and labor migration—whose variation reflects systematic differences in individual skills, asset endowments, and social capital access rather than arbitrary or purely compelled choice. Theoretically, this study advances the sustainable livelihoods framework by specifying the mechanism linking individual rationality to household adaptive outcomes, and by showing how social capital—in its bonding, bridging, and linking dimensions—shapes the option set within which rational calculations are made. These findings suggest that post-displacement livelihood recovery is more effectively supported by policies that strengthen social network structures alongside physical and financial provision. Full article

The adoption of biogas technology in smallholder livestock systems is increasingly recognized as a dual solution for rural energy transition and livestock waste management; however, actual implementation remains limited due to low community readiness, particularly driven by knowledge gaps and resource constraints. This study examines the determinants of community readiness for biogas adoption in rural Indonesia, addressing the limited attention of prior studies to readiness factors at the household level. A cross-sectional survey of 98 smallholder cattle farmers was conducted using structured questionnaires, and the data were analyzed using descriptive statistics and multiple linear regression to identify key determinants of readiness. The results indicate generally positive perceptions toward biogas, with knowledge, prior waste processing experience, perception scores, education level, and herd size significantly influencing readiness (p < 0.05). While awareness of biogas benefits and willingness to process manure emerged as key drivers, limited technical knowledge and time and cost constraints remained major barriers, suggesting an awareness–adoption gap. These findings align with behavioral adoption frameworks, highlighting the roles of knowledge, perceived benefits, and enabling conditions in shaping adoption readiness. Policy interventions emphasizing capacity-building, financial incentives, and adaptable biogas technologies are therefore essential to support rural adoption. Full article