1,076 research outputs found
Interplay between oil prices, country risks, and stock returns in the context of global conflict: A PVAR approach
Get PDFEmploying the panel vector autoregressive (PVAR) modeling, we analyze the interplay among oil prices, country risks, and stock returns across twenty-nine economies from February 2005 to August 2020. We find that, in the short run, rising oil prices temporarily boost stock prices by reducing country risk. However, over longer horizons, reductions in country risk are linked to lower stock returns. Moreover, in the interaction between stock and oil markets we identify the heterogeneity of three forms of country risk: economic, financial, and political, particularly when comparing developed and developing economies. Findings, offering new insights into the linkages between oil and stock markets, especially in the context of increased global conflict context, are of much value for investment strategies and policy formulations aimed at mitigating risk
The information environment and ecological environment perspectives: Capital market openness and firm ESG rating divergence
Get PDFAmid increasing demands for green economic growth, firms must adapt their business models and development strategies. However, most of the studies on this topic focus on examining the economic consequences of differences in firms’ environmental, social, and governance (ESG) ratings and ignore the external influences that lead to differences in information environments. This paper explores the impact of capital market openness on firm ESG rating divergence and conducts a related mechanism analysis. It is found that capital market openness creates an information environment concern effect that is generated by analysts’ concerns, audit quality, and investors’ concerns, which in turn exacerbates firm ESG rating divergence. A moderating effect test shows that the pressure created by government and public concerns regarding the ecological environment generates an ecological environment concern effect on firm ESG performance and effectively decreases the firm ESG rating divergence caused by the information concern effect
Influence of green ICT and socioeconomic factors on sustainable development: Evidence from Chinese provinces
Get PDFWe examine the impact of green information communication technology, while considering the conditioning role of other seminal factors. Using panel quantile-quantile granger causality testing and method of moments quantile regression for Chinese provinces for 2000–2019, we find that green information communication technology promotion, human capital, and urbanization positively impact green growth, while globalization, energy intensity, and carbon emissions are not significant. Results highlight the importance of green information communication technology for sustainable development
Digital financial inclusion, the belt and road initiative, and the Paris agreement: Impacts on energy transition grid costs
Get PDFWe investigate how digital financial inclusion, the Belt and Road Initiative, and the Paris Agreement influence the energy transition grid cost. We propose two new Kendall and Spearman wavelet cross-quantile correlation methods and utilize data from June 1, 2018, to July 31, 2024. Our findings indicate that digital financial inclusion, the Paris Agreement, and artificial intelligence significantly reduce grid costs in the short and long run. Additionally, the Belt and Road Initiative has substantial potential to decrease grid costs, particularly during bullish market conditions in the long run. Conversely, GCOVOL significantly increases grid costs, especially in the long run
Dynamic spillover effects and interconnectedness of DeFi assets, commodities, and Islamic stock markets during crises
Get PDFDecentralized Finance (DeFi) assets, commodities, and Islamic stock market cointegration are affected by technological innovations, market dynamics, investor behavior, and crises. This study investigates the dynamics of returns and volatility for three DeFi assets, six commodities, and three Islamic stock markets from December 2019, to March, 2023, and identifies higher spillover effects during crises. Links among the Cross-DeFi, commodity, and Islamic markets significantly influence returns and volatility during crises. Notably, the commodities index emerged as a pivotal and substantial transmitter of risk during the Russian-Ukraine war crisis, with Emerging Markets (EM) being a key recipient. However, during the COVID-19 pandemic, livestock indices assume the role of prominent risk-return spillover receivers. The findings indicate robust returns and volatility interconnected between DeFi assets and Islamic markets with a moderate level of connectivity among commodity groups. WDI, ACWI, and EM explained 75 % of the variance observed during crisis episodes. This study formulates strategic portfolio management within and between connectedness among return volatilities by highlighting the stability of DeFi assets, the diversification potential in commodities, and a balanced option in Islamic markets. Our study provides a deep and insightful understanding of the stakeholders across markets during crises
ESG stock markets and clean energy prices prediction: Insights from advanced machine learning
Get PDFIn the post-Paris agreement, the clean energy market has grown significantly due to its undeniable environmental sustainability. Therefore, this study aims to predict clean energy stock prices by analyzing ESG stock markets in ten countries using a batter of machine learning (ML) techniques and NGBoost. The analysis integrates Shapley Additive Explanations (SHAP) values to improve interpretability, offering insights into model performance. The dataset spans from January 1, 2014, to September 22, 2023, covering global crises such as the COVID-19 pandemic and the Russia-Ukraine conflict. Results indicate that NGBoost outperforms other models, with a significant correlation between clean energy stock prices and ESG market variables. Notably, ESG markets in India and the USA show strong predictive power for clean energy stocks, while those in Australia and South Africa contribute less. These findings underscore the potential of ML techniques in forecasting clean energy equity trends, providing insights for investors, policymakers, and venture capitalists. The study highlights the importance of considering the degree of market connectivity in portfolio construction, emphasizing a shift from traditional investments to sustainable ones like clean energy. This research adds value to clean energy market analysis by incorporating advanced ML methods and SHAP values, especially during periods of global disruption. These results are important for asset allocation and risk management, supporting investors in transitioning from ordinary to sustainable investments
Unlocking Funding Success for Generative AI Startups: The Crucial Role of Investor Influence
Get PDFGenerative AI (GAI) is transforming industries by enabling autonomous content creation. This study explores the impact of investor and technological influences on the funding of 556 GAI startups from 2010 to July 2024. Using principal component analysis, we find that investor influence significantly boosts funding across all levels, while technological influence is insignificant. The results highlight the crucial role of investor networks in securing financial resources for GAI startups. The study's implications suggest that entrepreneurs and policymakers should focus on building strong investor relationships to support the growth of GAI ventures
Renaissance of Climate Policy Uncertainty: The Effects of U.S. Presidential Election on Energy Markets Volatility
Get PDFThe global community has witnessed a burgeoning anxiety for accommodating the current climate changes. This heightened awareness has evoked a resurgence in the formulation and implementation of climate policies. Political events like the U.S. presidential election, may yield substantial influence over the trajectory of future climate policy formulation. In this paper, we scrutinize the impact of climate policy uncertainty (CPU) on energy market volatility against the backdrop of the 2024 presidential election of the U.S.. We provide evidence that the CPU has a strong effect on energy market volatilities in China, which is more pronounced during the U.S. presidential election episodes. Notably, our study uncovers a crucial effect of the CPU on energy market volatilities in China, which manifests in both short-term and long-term. The short-term impact tends to be insubstantial, while the long-term effect conveys its solid influence to energy markets, suggesting fruitful implications for energy market participants as well as climate policy makers
SMEs respond to climate change: Evidence from developing countries
Get PDFGiven the concerns stemming from climate change, it is important to investigate whether SMEs could become innovative (and thereby invest in technologies mitigating climate change) because of heightened climate change risk. This study explores the impact of climate change on SMEs' innovation from a resource-based view (RBV) standpoint. Using the generalized method of moments (GMM) estimation of panel data for 443 SMEs from 14 developing countries during the period 2007–2016, we found that climate change has a significant positive impact on SMEs' innovation performance. In economic terms, climate change of one standard deviation variation resulted in a 6.6 % increase in innovation investment. Interesting results emerged when the sample was divided into firms with high and low growth, high and low profit, and high and low slack resources, and industries with high and low vulnerability. The results show that SMEs' innovation response to climate change may vary substantially across firms and industries. In high-growth, high-slack-resources firms, and in highly profitable and non-vulnerable industries, SMEs' innovation responds positively to climate change. Our study contributes to the SME and climate change literature by being the first to examine the impact of climate change on SMEs' innovation. Managerial and policy implications are discussed
Commodity market stability and sustainable development: The effect of public health policies
Get PDFThis study explores the influence of public health policies on commodity market volatility during public health emergencies, such as pandemics, using data from China and the US. We investigate how stringent public health measures can mitigate the effects of pandemics on the stability of commodity markets by stabilizing domestic demand and supply of natural resources. Our findings highlight the interconnectedness between commodity market stability and oil production, showing that firms increase their oil inventories in response to oil market volatility as a precautionary measure. This action, in turn, affects the amount of oil available for production, impacting oil consumption and extraction rates. We demonstrate that stability in the oil market significantly influences not only oil consumption but also has broader implications for sustainable development, green asset markets, and carbon emissions
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