Search Results (232)

Green Total Factor Productivity (GTFP) serves as a pivotal indicator for balancing high-quality economic growth with increasingly stringent environmental regulations. However, empirical evidence regarding whether and how firm-level GTFP is associated with enhanced Environmental, Social, and Governance (ESG) performance in emerging markets remains limited. This study addresses this gap by examining the GTFP–ESG nexus within the macro-context of China’s “Dual-Carbon” goals (aiming for peak carbon emissions by 2030 and carbon neutrality by 2060). Utilizing an unbalanced panel dataset of Chinese A-share listed companies strictly covering the period from 2011 to 2022 (with 2010 data exclusively used for one-period lagged variables), we construct firm-level GTFP metrics using a non-radial SBM-DDF global Malmquist–Luenberger index—incorporating both desirable economic outputs and undesirable environmental emissions—and link them with Huazheng ESG ratings. To ensure robust empirical identification, we employ two-way fixed-effects models with lagged variables, propensity score matching (PSM), and an instrumental variable two-stage least squares (IV-2SLS) approach utilizing the leave-one-out provincial average GTFP as an instrument. The results indicate a significant positive association between GTFP and overall ESG performance, as well as its three sub-pillars. Specifically, a one-standard-deviation increase in GTFP corresponds to a 0.15-standard-deviation increase in the ESG score, a marginal effect of profound economic significance, providing robust associational insights via the IV estimates. Mechanism analyses reframe traditional mediation as descriptive associational pathways, revealing that digital transformation, green innovation, and information transparency serve as significant channels, theoretically demonstrating how resource efficiency translates into social legitimacy. Heterogeneity tests show that this association is more pronounced for non-state-owned enterprises, firms in eastern China, and those with lower financing constraints. These findings unpack the “black box” between technical efficiency and sustainability, providing empirical support for policymakers to align corporate productivity with international disclosure standards (such as the EU’s CSRD). Full article

This paper examines whether the interaction between credit risk and liquidity conditions helps explain bank stability in a fragile and institutionally constrained banking environment. Using an annual panel of 13 Palestinian banks over 2011–2024 and measuring stability by the (log) Z-score, we estimate static panel models (pooled OLS, fixed effects, and random effects), a simultaneous two-stage least squares (2SLS) system to probe the direction of causality between credit risk and liquidity, and a dynamic panel GMM specification to address persistence and endogeneity. The static models show that credit risk is negatively associated with stability and that the interaction term is economically meaningful but not robust across static specifications. In the dynamic GMM model, credit risk remains significantly destabilizing, liquidity holdings are stabilizing, and the interaction term is positive and significant—consistent with liquidity buffers mitigating the adverse stability implications of higher credit risk. The 2SLS system suggests no strong contemporaneous reciprocal causality between credit risk and liquidity once controls are included, while regulatory and conflict-period dummies are associated with shifts in the risk profiles. The results highlight the importance of integrated risk management and liquidity buffers for banking stability in high-uncertainty contexts. Full article

Achieving sustainable development requires moving beyond pollution metrics to holistic measures, such as the load capacity factor (LCF), which balances ecological demand and supply. While recent studies have provided important insights into the determinants of LCF in OECD countries, further research is needed to incorporate additional determinants and updated estimation approaches. This study addresses this gap by examining the impacts of financial innovation, forestry, urbanization, population, and economic growth on the LCF in Organization for Economic Cooperation and Development (OECD) economies from 1990 to 2023. Using second-generation panel econometric methods, including tests for cross-sectional dependence, slope heterogeneity, second-generation unit roots, and cointegration techniques, this paper confirms a stable long-run relationship among the variables. The core analysis applies the method of moments quantile regression to uncover the heterogeneous effects across the LCF distribution. The results indicate that financial innovation consistently enhances the ratio of biocapacity to ecological footprint. In contrast, economic growth and urbanization exert significant negative pressure on the LCF, whereas population size shows a uniformly detrimental effect. Forestry has a positive but less pronounced influence. Robustness checks using fully modified ordinary least squares, dynamic ordinary least squares, and panel-corrected standard errors confirm these results. The present study concludes that targeted financial innovation and stringent urban demographic policies support OECD nations in improving ecological balance and reducing ecological deficits. Full article

This study investigates the impact of revenue diversification on the performance and stability of listed Tunisian banks over the period 2008–2023, with the objective of assessing whether diversification strategies enhance bank performance and promote financial stability in an emerging-market context. The analysis relies on a panel dataset of Tunisian listed banks and employs a two-stage least squares (2SLS) estimation approach to address potential endogeneity issues, using ownership structure as an instrumental variable. Bank performance is measured by Return on Assets (ROA) and Net Interest Margin (NIM), while financial stability is captured by the Z-score. The empirical results show that revenue diversification has a positive and significant effect on bank performance, as measured by ROA, and on financial stability. However, it exerts a negative and significant impact on NIM, indicating that although diversification improves overall performance and strengthens stability, it may weaken traditional intermediation income. This study contributes to the limited literature on banking in emerging markets by jointly examining performance and stability effects while addressing endogeneity concerns through robust econometric techniques, and by providing new evidence from the Tunisian banking sector, which has experienced significant political and economic disruptions during the study period. Full article

Precise, spatially explicit sub-provincial GDP estimates are essential for regional planning, especially in mountainous areas where official economic data remain spatially coarse and unevenly distributed. This study develops a multisource county-level GDP spatialization framework for Sichuan Province, China, integrating corrected NPP/VIIRS nighttime-light (NTL) data with Points of Interest (POIs), land-use structure indicators (proportion of farmland (PFL); proportion of construction land (PCL)), elevation, precipitation, accessibility and population density within a unified indicator system. Two regression approaches—Ordinary Least Squares (OLS) as a global benchmark and Geographically Weighted Regression (GWR) as the spatially adaptive primary model—are calibrated on county-level cross-sectional data for 2020 (n = 183) and evaluated using R², adjusted R², AICc and residual spatial diagnostics. The multisource GWR model achieves R² = 0.882 (adjusted R² = 0.872, AICc = 5712.26), substantially outperforming both the global OLS benchmark (R² = 0.801) and NTL-only GWR baseline (R² = 0.662), confirming that spatial nonstationarity is an intrinsic feature of the GDP–proxy relationship and that integrating complementary geospatial proxies is the primary pathway to improved estimation accuracy in topographically heterogeneous regions. The GWR-based GDP surface exhibits a pronounced basin–plateau contrast: high-value clusters concentrate along the Chengdu Plain and adjacent city corridors, while extensive low-value zones prevail across the western highlands (global Moran’s I = 0.33, Z = 14.26, p < 0.001). Spatially varying GWR coefficients reveal that elevation and precipitation constrain GDP most strongly in high-altitude counties, construction land exerts a consistently positive but spatially graded effect, and the influences of accessibility and population density are context-dependent and locally differentiated. These findings support differentiated territorial development policies: plateau counties require accessibility-first strategies; hill counties benefit from targeted small-city industrialization; and basin cores need managed growth to balance agglomeration advantages against congestion pressures. The framework relies exclusively on globally or nationally available data and is portable to other mountainous regions, though cross-regional validation and extension to multi-year panels using geographically weighted panel regression remain important directions for future work. Full article

This study explores the drivers of economic growth in the BRICS economies—Brazil, Russia, India, China, and South Africa—over the period 1994–2024, focusing on the roles of digital infrastructure and financial development. Using a balanced panel, we examine how internet connectivity and access to credit shape growth, both independently and in combination, while accounting for gross fixed capital formation, urbanization, and government expenditure. Given the macro-panel structure, which exhibits heteroskedasticity, serial correlation, and cross-sectional dependence, we employ robust estimation techniques, including Driscoll–Kraay standard errors (DKSE), Feasible Generalized Least Squares (FGLS), and Panel-Corrected Standard Errors (PCSE). To capture potential heterogeneity across different growth scenarios, we further apply the Method of Moments Quantile Regression (MMQR) as a robustness check. Our findings show that both internet connectivity and financial development consistently promote economic growth across all main specifications. Importantly, the interaction between these two factors is also significant, indicating that the benefits of digital infrastructure are stronger in countries with deeper financial systems, and vice versa. Among the control variables, capital accumulation and government spending positively contribute to growth, while urbanization exhibits a negative association, reflecting the structural challenges of rapid urban expansion. MMQR results confirm that these relationships hold across low-, medium-, and high-growth periods, highlighting their broad relevance. These findings highlight the synergistic role of technological and financial development and underscore the importance of integrated policies to sustain long-term, inclusive growth in the BRICS economies. This study suggests that policymakers should adopt integrated strategies that enhance digital connectivity, deepen financial development, and support productive public investment to sustain inclusive and resilient economic growth. Full article

This study analyzes the relationship between stock market returns and investment flows in investment funds in Spain. Through a quantitative analysis covering the period from December 2001 to June 2025, it examines not only the existence of a correlation but also its temporal structure, functional form, and heterogeneity across different geographical areas (U.S., Europe, Japan, and Spain). Using monthly data on net flows from INVERCO and market indices, the study employs Ordinary Least Squares (OLS) regression models, segmented regressions, and fixed-effects panel models to obtain robust estimates. The results confirm a positive and statistically significant relationship between past returns and subsequent investment flows, with a temporal lag ranging from one to three months. This delay varies notably by geographical region, suggesting the existence of different investor profiles and information channels. The study also finds evidence of a convex relationship, indicating that investors react asymmetrically, aggressively pursuing high returns more than penalizing low ones. These findings, interpreted through the lens of behavioral finance, point to pro-cyclical and reactive behavior of Spanish investors, driven by biases such as loss aversion, trend-following, and delays in information processing. The study contributes to the academic literature by providing updated and methodologically robust evidence on Spain, a market that has traditionally been underexplored, and offers practical implications for investors, fund managers, and regulators in terms of financial education and risk management. Full article

The objective of this research is to analyze the relationship between ESG factors and financial development, measured by Domestic Credit to the Private Sector by Banks (DCB). The empirical analysis employs a balanced panel of 82 countries for the years 2016 to 2022, obtained from the World Bank database. The proposed econometric model incorporates multiple ESG factors, including environmental (E), social (S), and governance (G). The list of econometric models under consideration includes fixed effects, random effects, WLS (weighted least squares), dynamic panel, and fixed effects with HAC estimation. Based on the conducted tests, the fixed effects estimation method has been chosen because the presence of serial correlation, heteroskedasticity, and cross-sectional dependence suggests that other methods will not provide an adequate model. As a result, fixed effects enable obtaining reliable estimates regarding the relationships between ESG factors and DCB. In addition, a KNN (K-Nearest Neighbors) regression was used to analyze potential nonlinear effects of the factors. The results show the strong positive relationship between ESG factors and financial development. More specifically, the presence of clean energy sources is associated with a positive DCB, and the depletion of natural resources is negatively associated with DCB. Moreover, social and governance factors are positively associated with financial development. Full article

This article uses two waves of panel data from China Land Economic Survey (CLES) in Jiangsu Province and employs a fixed-effects two-stage least squares (FE-2SLS) approach to identify pension effects on farmers’ labor allocation and land transfer decisions. In the FE-2SLS models, pension is instrumented by the average pension of other households in the same village. The results show that pension promotes land transfer-out, reduces household farm labor input, and increases household off-farm labor input. We further identify intra-household heterogeneity behind the pension effects. Specifically, pensioners in a household tend to leave farming activities without transitioning to off-farm employment, while non-pensioners shift the labor from farm to off-farm employment. We also examine heterogeneity by household budget pressure using two grouping strategies based on shortage experience and a composite budget-constraint indicator. The results show that the pension effects are more clearly observed among households without budget shortage. The estimates for households with budget shortage are less precise. These findings suggest that pension effects are complex in driving farmers’ resource allocation in their households. However, Jiangsu Province provides a substantial number of off-farm employment opportunities and features a well-developed land transfer market. The estimated pension effect in this area may not be applicable to less developed regions. Full article

This study explores how board characteristics impact corporate cash flow risk in an emerging market setting. While previous research has examined firm risk, crash risk, and earnings quality, there is limited evidence on cash flow risk and its governance factors, especially in developing economies. To fill this gap, this study differentiates between volatility-based and distortion-based measures of cash flow risk and assesses how board attributes influence these aspects. Using a balanced panel of 327 non-financial firms listed in Vietnam from 2013 to 2023, cash flow risk is measured by the rolling five-year volatility of operating cash flows and short-term distortions shown in earnings–cash flow mismatches. To address endogeneity and dynamic persistence, the analysis uses the system generalized method of moments estimator, along with fixed-effects and feasible generalized least squares models for robustness. The findings suggest that board independence, gender diversity, and financial expertise are linked to lower cash flow risk, highlighting the importance of effective monitoring. Conversely, board meeting frequency is positively linked to risk, suggesting that boards tend to increase meeting frequency as a reactive response to heightened uncertainty. Board size and CEO duality do not show consistent effects. Focusing on Vietnam’s institutional context, this study provides evidence that governance mechanisms influence different dimensions of cash flow risk through separate channels, offering valuable insights for enhancing board effectiveness in emerging markets. Full article

This paper examines how openness of international trade is dynamically related to environmental sustainability in sixteen member states of the Southern African Development Community (SADC) between 2000 and 2024, taking into consideration institutional quality factors, economic development, and structural factors. The study uses the Panel Fully Modified Ordinary Least Squares (FMOLS), Pedroni panel cointegration tests, and quantile regression to examine the determination of per capita CO₂ emissions by using trade openness, GDP per capita, government effectiveness, energy use, natural resource rents, and urbanisation. The findings of cointegration prove a long-run equilibrium stability. FMOLS estimates show that trade openness positively but insignificantly increases the typically pooled long-run specifications through urbanisation and natural resource rents and negatively through GDP per capita, which is in line with the phase upper-Environmental Kuznets Curve. The outcome of quantile regression reveals a large distributional heterogeneity with the trade openness decreasing emissions only among high-emitting economies at the seventy-fifth and at the ninetieth percentile which is the imperative effect of the quantile technique demonstrating the need for country-differentiated trade and environmental policy across the SADC. Full article

Exchange rate volatility creates uncertainty for firms in open economies, especially in emerging markets with structural vulnerability and shallow financial markets. This work examines the impact of exchange rate volatility on the cash-flow performance of non-financial firms in the Middle East and North Africa (MENA) region of 292 firms across 11 countries from 2014 to 2023. Heteroskedasticity, serial correlation and cross-sectional dependence were estimated using fixed effects, random effects and robustness estimation using Driscoll–Kraay standard errors and Feasible Generalized Least Squares (FGLS). Exchange rate volatility has no statistically significant impact on corporate cash flows across all specifications, confirming the existence of an exchange rate exposure puzzle in emerging markets. Firm size always appears to be the strongest and most robust predictor of liquidity performance. The macroeconomic growth effect is weaker and context dependent: It is insignificant with baseline panel estimations, is negative with Driscoll–Kraay corrections and is marginally positive with FGLS structural controls. Profitability and inflation are virtually nonexistent. These insights inform both financial risk management and policy actions aimed at enhancing corporate stability and supporting sustainable development in emerging markets. Full article

The deep integration of the digital and real economies is a critical force reshaping the global economic landscape. At the same time, new high-quality productive forces that are distinguished by their high level of efficiency, quality, and technology mark a new phase in productivity evolution. Understanding the spatial interplay between these two phenomena is crucial for coordinated development. This study empirically investigates their bidirectional relationship and spatial spillover effects. With panel data from 30 provinces in China (2011–2022), we use the Generalized Spatial Three-Stage Least Squares (GS3SLS) approach to estimate a spatial simultaneous equations model. The results reveal a significant bidirectional positive correlation, with the promotional effect of digital–real integration on new quality productive forces being slightly stronger. However, we also identify significantly negative spatial spillover effects between them. These findings underscore the necessity of strengthening their interactive development, fostering interregional cooperation, and optimizing source allocation to alleviate adverse spillovers. This study systematically examines their spatial dynamics and proposes policy recommendations to foster the coordinated advancement of both digital–real integration and New Quality Productive Forces. Full article

This study investigated the relationship between digital governance and sustainable development across the European Union (EU-27) during the period 2015–2023. Although digital transformation has become a central policy priority, empirical evidence on how e-government adoption contributes to sustainability performance remains limited. Using panel data from Eurostat and the UN Sustainable Development Solutions Network, the analysis employed advanced econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Method of Moments Quantile Regression (MMQR), to explore both long-run relationships and heterogeneous effects across countries. The model incorporates key indicators such as the percentage of individuals using e-government services, Gross Domestic Product (GDP) per capita growth, and Research and Development (R&D) expenditure, capturing, respectively, digital governance adoption, innovation potential, and economic capacity, as essential drivers of sustainable development. Results indicate a strong and statistically significant positive association between digital governance adoption and sustainable development outcomes. The quantile regression analysis reveals that this effect is more pronounced in countries with higher innovation intensity and stronger economic capacity, suggesting that digital governance amplifies sustainability benefits in countries with more advanced institutional and technological infrastructures. Robustness checks confirm the stability of the findings across multiple estimation techniques. The results underscore the need for inclusive and innovation-driven digital strategies to ensure that the benefits of digital governance are equitably distributed, ultimately enhancing the EU’s progress towards the Sustainable Development Goals. Full article

The joint influence of digital adoption in corporate governance and its impact on external assurance is a critical and emerging nexus in the literature concerning auditing and technological innovation, especially in volatile markets. Building on agency theory and resource dependence theory, this study investigates the nexus between corporate digital transformation (DT) and audit quality (AQ), while examining the moderating role of AC characteristics—specifically size, gender diversity, expertise, and activity—within the Egyptian context. Utilizing a sample of 120 non-financial firms listed on the Egyptian Exchange (EGX) from 2022 to 2024 (360 firm-year observations), the analysis employs Robust Least Squares (M-estimation) and Panel EGLS to ensure resilience against outliers and heteroscedasticity. The empirical findings provide robust evidence that digital transformation significantly enhances audit quality by constraining discretionary accruals, supporting the premise that technological integration improves monitoring and transparency. Moreover, the results reveal that the audit committee acts as a pivotal positive moderator, strengthening the digitalization-audit quality relationship; this impact is most pronounced in firms with larger, more gender-diverse, and financially expert audit committees. While audit committee activity shows a reactive correlation with accruals, its interaction remains essential for continuous monitoring in digital environments. Ultimately, this study offers novel insights for regulators and firms in emerging economies, highlighting that the benefits of technological adoption in financial reporting are maximized only when complemented by robust internal governance mechanisms, necessitating simultaneous investment in digital infrastructure and the fortification of audit committee attributes to ensure sustained audit market efficiency. Full article