Search Results (628)

Climate change and low-carbon transition policies affect sustainable development by changing firms’ financing costs and investors’ capital allocation. This paper investigates whether and how climate-related information is priced in China’s equity market, focusing on firm-level carbon intensity and exposure to climate policy uncertainty (CPU). First, univariate-sorted portfolio tests confirm the existence of a carbon premium, as firms with high carbon intensity earn significantly higher average returns. However, the unconditional relation between CPU exposure and stock returns is insignificant. Bivariate-sorted portfolios reveal a strong interaction between the carbon premium and the CPU premium. The carbon premium is higher for firms with high exposure to CPU, whereas a significant and negative CPU premium appears among low-carbon firms and, in sector-level tests, is concentrated in non-energy firms. Further analysis demonstrates clear differences between energy and non-energy sectors, which may be attributable to cash flow risks and uncertainty in growth options. The findings contribute to climate-related asset pricing and sustainable finance research by showing that transition-risk pricing depends on the interaction between carbon exposure and policy uncertainty. Full article

Traditional olive groves are widely recognised as providers of landscape, environmental and cultural public goods in Mediterranean rural areas, but their long-term economic viability remains uncertain. This study assesses the income gap between traditional, intensive and super-high-density (SHD) olive-growing systems in a representative hill olive-growing area in Tuscany (central Italy), characterised by physical and structural conditions typical of traditional Mediterranean systems. Using a discounted cash-flow framework, the analysis compares long-term financial performance through standard investment appraisal indicators and uses the Equivalent Annual Value (EAV) as a policy-relevant benchmark for calibrating support. The results reveal a clear structural divergence: while intensive and SHD systems achieve higher profitability and faster capital recovery, the traditional system exhibits a persistent income disadvantage under market conditions. The estimated EAV gap amounts to approximately 950 €/ha relative to the intensive system and 3104 €/ha relative to the SHD system—values that represent the additional annual support required to preserve traditional olive groves and prevent abandonment. These values can also be interpreted as the annual private opportunity cost of maintaining traditional olive landscapes rather than converting them to more financially competitive systems. Break-even analysis further shows that the traditional system requires an oil price of at least 9.6 €/kg to achieve economic viability without public support, compared to 6.97 €/kg and 4.13 €/kg for the intensive and SHD systems, respectively. The findings highlight a structural misalignment between private profitability and social value, suggesting that the conservation of traditional olive landscapes cannot rely on market mechanisms alone and requires targeted, evidence-based policy instruments. Full article

E-commerce has reshaped short-term financial management by altering transaction speed, payment structures, and supply chain coordination. This study examines how large publicly listed e-commerce firms, viewed as complex digital business systems, adjusted their working capital policies during and after the COVID-19 shock. The sample is based on the 100 largest e-commerce companies worldwide by market capitalization, as reported by CompaniesMarketCap (February 2026), and is reduced to 76 firms from 23 countries due to data availability, yielding 802 firm-year observations. Firm-level data are obtained from LSEG Datastream, while macroeconomic variables are sourced from the World Bank. The analysis distinguishes between two dimensions of working capital: flow-based operational adjustment, measured by the cash conversion cycle (CCC), and stock-based balance-sheet adjustment, captured by net working capital relative to total assets (WC/TA). Fixed-effects models with firm-clustered standard errors are employed. The results indicate a substantial contraction of the CCC during the pandemic, followed by partial persistence of that contraction rather than a return to pre-pandemic norms. In contrast, WC/TA remains broadly stable during the crisis but declines in the post-pandemic period, suggesting a delayed balance-sheet adjustment. Business-model heterogeneity is not statistically significant, which may reflect a common system-level response across e-commerce firm types. Leverage and supply-chain pressures are associated with working capital intensity (WC/TA), while inflation shapes operate cycle duration (CCC). The findings are consistent with a two-stage adaptive response to systemic disruption. Full article

The economic resilience of agricultural enterprises is increasingly relevant for maintaining processing continuity and food quality in highly perishable agro-food chains. This study examines the associations between financial knowledge, financial management competency, business liquidity, and operational food-processing continuity in Türkiye’s tea sector. A quantitative cross-sectional design was employed, using structured survey data from 203 senior managers across 86 public and private tea-processing firms in Rize Province. The data were analysed using Ordinary Least Squares regression, mediation analysis, exploratory factor analysis, and robustness checks in accordance with OECD/INFE guidelines. Results indicate a significant deficit in theoretical financial knowledge (mean score: 4.47/10) alongside widespread overconfidence among 85% of managers. Applied financial management competency is positively associated with perceived business liquidity (β = 0.336, p < 0.001), suggesting that practical budgeting, cash-flow planning, and financial decision-making capabilities are relevant to maintaining operational funding capacity. In contrast, cash-flow difficulties are not significantly explained by firm-level financial knowledge, managerial competency, liquidity, or ownership structure (R² = 0.014, p = 0.722), indicating that these difficulties may reflect broader seasonal and sector-wide financing constraints. The findings challenge the assumption of a linear relationship between theoretical financial knowledge and managerial outcomes. They suggest a dual policy approach that combines applied financial management training with structural financing mechanisms to ensure the continuity of fresh leaf procurement and processing. While the study does not directly measure food safety, post-harvest losses, or SDG outcomes, the results have potential implications for reducing processing disruptions and supporting more resilient agro-food processing systems. Full article

This study aims to examine gaps in the current AML framework related to cryptocurrency and digital assets. We focused on money laundering typologies involving the conversion of illicit funds into clean value through cryptocurrency-based purchases of vouchers, gift cards, and other non-traditional instruments. We examined the existing literature on cryptocurrency and digital assets to identify gaps in detection and classification by mapping platform features and transaction pathways using an original dataset. The work adopts the Placement Layering Integration model. It conceptualises a laundering pathway that operates outside regulated intermediaries via crypto acquisition, voucher purchases on low Know Your Customer (KYC) platforms, redemption into goods, and informal resale for cash. The analysis revealed that most platforms required minimal verification for transactions, and many supported privacy coins that can hide the flow of funds from standard detection techniques. These features create conditions for cross-border money transfers that may fall outside law enforcement oversight. Such mechanisms can lead to undeclared remittance and potential tax evasion. This study contributes to the understanding of cryptocurrency related financial crime within broader money laundering typologies. It contributes to AML frameworks by identifying a shadow payment architecture, proposing targeted reforms to extend AML coverage to voucher intermediaries, and highlights areas for future research and policy improvements. Full article

Decarbonising the residential building sector requires not only technical solutions, but also financially viable delivery models. This paper examines the economic performance of Energy Plus Service (EPS) schemes applied to deep renovation projects under uncertainty, with particular attention to the role of project scale and market conditions. The analysis is based on a portfolio of 21 residential buildings in Northern Italy and combines a Discounted Cash Flow (DCF) model with Monte Carlo simulation. Key sources of uncertainty include renovation costs, post-retrofit energy performance, rental values, and electricity prices, allowing for the estimation of probabilistic Net Present Value (NPV) outcomes. The results show a clear impact of residential asset spatial scale on financial outcomes. Small projects are generally unprofitable, while medium-sized assets are highly sensitive to uncertainty. Larger projects, instead, display a much higher likelihood of positive financial outcomes. Sensitivity analysis indicates that financial performance is driven mainly by investment costs and rental income, while energy-related variables play a more limited role. The findings suggest that the viability of EPS models depends as much on market conditions as on technical performance, pointing to a potential misalignment between energy policy objectives and private investment incentives. Results suggest that projects approaching 160 m² are more likely to achieve a 50% probability of a positive NPV, indicating a potential scale threshold beyond which EPS schemes become significantly more bankable and below which aggregation or additional de-risking measures are likely to be required. Full article

Gold mining firms operate in an environment characterized by substantial commodity price volatility, capital intensity, and long investment horizons. Traditional deterministic financial planning frameworks are insufficient to capture the nonlinear and asymmetric risks associated with gold price fluctuations. This study develops a simulation-based scenario planning framework for gold mining firms, integrating deterministic scenario analysis with stochastic price modeling. Using a stylized and benchmark-calibrated financial model intended for methodological illustration rather than firm-specific forecasting, the study evaluates the impact of gold price uncertainty on key financial indicators, including EBITDA, free cash flow, and net present value. Monte Carlo simulations indicate substantial dispersion in financial outcomes, with approximately 28% of simulated realizations producing negative Net Present Value outcomes under baseline assumptions. The results further demonstrate that volatility significantly amplifies downside exposure despite positive expected returns, thereby highlighting the limitations of deterministic planning approaches. The findings suggest that probabilistic scenario-based financial planning provides a more comprehensive framework for evaluating financial resilience and tail-risk exposure in commodity-dependent industries. Full article

Hydropower-dependent electricity systems, such as Ecuador’s, face critical supply disruptions during droughts: a vulnerability exemplified by the 2024 power outages. This study assesses the technical, economic and environmental feasibility of a 200.84 MWp grid-connected solar photovoltaic (PV) plant proposed for the Pacific Refinery site in Manabi, Ecuador, as a strategy to diversify the energy matrix and reduce hydrological risk. Using site-specific solar resource data (4.65 kWh/m²/day) and PVSyst simulations, the plant achieves an annual energy production of 295 GWh with a performance ratio (PR) of 85.3%. A discounted cash flow analysis over 25 years, assuming a 7% discount rate and an electricity price of 60 USD/MWh, yields a net present value (NPV) of 104.9 MUSD, an internal rate of return (IRR) of 62.2%, and a levelized cost of energy (LCOE) of 14.5 USD/MWh, well below current industrial tariffs in Ecuador. Sensitivity analysis confirms project viability under ±15% variations in investment cost, energy price, and solar resource. Over its lifetime, the plant avoids 1.83 Mt of CO₂ emissions, supporting national decarbonization goals. The results demonstrate that large-scale PV deployment in high-radiation, low-latitude regions can be highly profitable and contribute to energy sovereignty in hydropower-dependent systems. Furthermore, this study provides a replicable model for repurposing unused industrial land for renewable energy generation, offering actionable insights for policymakers and investors in developing economies. Full article

The upper Sebou River occupies a strategic territory draining varied mountain reaches in northern Morocco. As such, it is rich in surface water resources and karst springs with important downstream uses. However, the variability of rainfall threatens its water potential, making it highly vulnerable and at risk of desiccation. This study explores rainfall trends and their effects on streamflow and water resource availability. Data from three stations representing the upstream section of the watershed, along with two streamflow series—one for the upper Sebou River (Pont Medz) and the other for the Aïn Timdrine karst spring—cover the period from 1956 to 2018. The methodology employs Mann–Kendall trend tests, Sen’s Slope test, and the Standardized Precipitation Index (SPI) for rainfall series, as well as the Streamflow Drought Index (SDI) for hydrological series. The results demonstrate a decline in rainfall since 1979, significant at the 5% threshold. This trend has an immediate impact on the flow rates of the area’s rivers and karst springs, which have also tended to decline, with a succession of dry years and seasons since 1980. This observation highlights the depletion of water resources of the fragile upper Sebou region in the face of decreasing rainfall and snowfall, compounded by the rampant and unsustainable exploitation of groundwater resources linked to the development of irrigated cash crops in the Middle Atlas Mountains. Full article

Valuation methodologies vary across industries because firms differ in capital intensity, asset life, earnings stability, and exposure to risk. This study examines the valuation approaches used by South African equity analysts across the diversified mining, platinum group metals mining, gold mining, retail, and banking sectors over the 2018–2026 period, with non-financial firm coverage extending to 2024 and banking sector coverage extending to 2026. Using qualitative document analysis of 201 equity research reports covering 24 Johannesburg Stock Exchange-listed companies, including 19 non-financial firms and the five largest South African banks, the study identifies clear clustering of valuation methods by industry. The findings show that resource-based sectors are predominantly valued using intrinsic approaches such as life-of-mine discounted cash flow (DCF) and risk-adjusted net present value (NPV), while retail firms are primarily valued using earnings-based multiples. Gold mining exhibits a hybrid valuation pattern, and banking institutions are valued using balance-sheet- and profitability-based approaches anchored on book value, return on equity, and dividend flows. Overall, the results suggest that valuation practices in the sampled equity research reports are strongly industry-specific and broadly aligned with the underlying economic characteristics of the sectors analysed. The study contributes to the limited empirical literature on professional valuation practice in African capital markets and provides insights relevant to analysts, investors, and regulators. Full article

CO₂ enhanced coalbed methane recovery (CO₂-ECBM) using huff-and-puff technology has attracted increasing attention as a promising approach to enhance the productivity of low-productivity coalbed methane (CBM) wells while simultaneously enabling CO₂ storage. However, the economic feasibility of this method and the optimal soaking time remains unclear. In this study, an economic evaluation model for CO₂ huff-and-puff CBM projects was developed based on the discounted cash flow method, incorporating key factors such as CBM price, government subsidies, carbon trading price, CH₄ separation cost, and CO₂ purchase and injection costs. Three representative scenarios were designed to evaluate the impacts of policy support and market conditions. The effects of CO₂ injection volume and soaking time on net cash flow (NCF), net present value (NPV), and dynamic payback period (DPP) were systematically investigated. The results indicate that CO₂ huff-and-puff is economically viable for enhancing CBM recovery. Increasing CO₂ injection volume markedly improves CH₄ production and project revenue, but also leads to higher initial investment and a longer payback period. The economic performance exhibits a non-monotonic dependence on soaking time, with an optimal range that maximizes NPV. Specifically, the optimal soaking time ranges from 30 to 60 days for injection volumes up to 2000 t, and from 60 to 90 days for higher injection volumes. External economic factors exert a strong influence on project performance: higher carbon trading prices and lower CO₂ purchase costs markedly improve profitability, while government subsidies effectively increase net returns and shorten the payback period. In the absence of subsidies, higher injection volumes are required to maintain economic viability. Overall, this study provides a comprehensive economic evaluation framework for CO₂ huff-and-puff CBM projects, identifies key operational and economic parameters for optimizing project performance, and offers theoretical support for field-scale applications. Nevertheless, the economic evaluation is based on deterministic numerical simulation results and simplified market assumptions. Long-term operational risks and geological heterogeneity are not explicitly considered, which may limit the applicability of the results under field conditions. Full article

Improving window performance is a key strategy for reducing heating energy demand in residential buildings; however, the economic feasibility of upgrading to higher performance grades remains uncertain, particularly for single-detached houses. This study quantitatively evaluates the energy-saving performance and economic feasibility of window performance grade improvements in single-detached houses in South Korea. Heating energy demand was estimated using ECO2-OD (Energy Conservation Optimization Tool for One-zone Dwelling), the national standard simulation tool adopted for the Building Energy Efficiency Certification (BEEC) and Zero Energy Building (ZEB) certification systems. Representative residential prototypes constructed in 1980, 1987, and 2001 were analyzed to reflect differences in envelope performance associated with construction vintage. Window upgrades from the baseline grade to Grades 3, 2, and 1 using polyvinyl chloride (PVC) windows were simulated under consistent building geometry and operating conditions. Heating energy demand reductions were converted into annual energy cost savings using market-based natural gas prices. Economic feasibility was assessed using annual indicator-based metrics—unit cost of energy saving (UCES), payback period (PBP), and return on investment (ROI)—as well as discounted cash flow-based life-cycle metrics, including net present value (NPV) and discounted payback period (DPB). The results show that heating energy demand decreases consistently with improved window performance across all construction years; however, marginal energy savings diminish at higher performance grades, while investment costs increase. Upgrading from the baseline to intermediate performance grades yields the most favorable economic outcomes, particularly for houses constructed in 2001, whereas upgrades to the highest performance grade often fail to achieve economic feasibility when time value is considered. These findings indicate that uniform application of the highest-grade windows may not be economically optimal. Unlike previous studies that mainly focused on thermal performance or case-specific retrofit outcomes, this study compares multiple window performance grades across construction-year-specific single-detached house prototypes under a unified economic evaluation framework. This study highlights the importance of construction year-specific and performance-tiered retrofit strategies and provides quantitative evidence to support cost-effective window retrofit policies for single-detached residential buildings. Full article

This study examines whether firm-level digital transformation capability (DTC) is associated with stronger operational resilience and whether governance structures condition this relationship. Operational resilience is treated here as a business-sustainability dimension based on continuity and stability of operating outcomes, not as a broad measure of environmental, social, and governance (ESG), environmental, or social sustainability performance. Using an international firm-year panel that combines standardized financial data with disclosure-based measures of implemented digital practices and governance architecture, the analysis provides observational evidence on the role of DTC in strengthening firm adaptability. In the controlled fixed-effects models, DTC is positively associated with the sales resilience ratio (SRR) (β = 0.071) and the cash-flow stability index (CFSI) (β = 0.058); an interquartile increase in DTC corresponds to approximately 0.024 in SRR and 0.019 in CFSI, or roughly 16% and 10% of their sample standard deviations. The association is stronger in firms with stronger internal oversight, auditable review mechanisms, and external ecosystem monitoring. Mechanism analyses point to supply flexibility and data visibility as plausible transmission paths, while additional tests address reproducibility, disclosure-intensity bias, construct validity, alternative governance specifications, placebo timing, restricted-shock logic, and measurement boundaries. Overall, the findings provide evidence consistent with a contingent and observational association between DTC and operational resilience when digital capabilities are embedded within accountable governance frameworks. Full article

This article examines corporate risk management as a measurable and economically relevant driver of firm performance, with a specific focus on the integration of environmental, social, and governance (ESG) risks into the risk management process. We develop a Composite Risk Management Index (CRMI) based on a structured questionnaire that captures the frequency, depth, and integration of risk management practices, including explicit treatment of ESG-related risks. Using cross-sectional econometric models on a sample of medium-sized and large companies, we analyse the relationship between CRMI and multiple performance and stability indicators, including return on equity, return on assets, operating cash-flow efficiency, and financial stability. The results indicate a statistically and economically significant association between higher risk management maturity and superior business performance across all dimensions. The findings suggest that ESG risk governance, when embedded within an integrated risk management framework, contributes to value creation rather than representing a purely compliance-driven activity. From a sustainability perspective, the results demonstrate that ESG-integrated risk management enhances long-term corporate resilience and supports sustainable value creation. To support practical interpretation, the study is complemented by a web-based application that enables real-time self-assessment of risk management quality under conservative methodological assumptions. Full article