Global inflation is high, and economic recovery is slow, leading to frequent monetary policy adjustments aimed at maintaining financial stability and accelerating recovery. To study the effects of monetary policies on the systemic risk of financial n...
The research aims to evaluate financial instruments on household uptake of energy efficiency and renewable energy towards different risk scenarios. The study addresses the problem of behavioral response to financial incentives when technological, fin...
As investment portfolios become increasingly diversified and financial asset risks grow more complex, accurately forecasting the risk of multiple asset classes through mathematical modeling and identifying their heterogeneity has emerged as a critica...
The present study is part of the context in which Romania adopted the European Parliament Directive 2007/60/EC on flood risk assessment and management. Therefore, the aim of this research is to assess the risk induced by a hydrological hazard, expres...
The landscape of financial credit risk models is changing rapidly. This study takes a brief look into the future of predictive modelling by considering some factors that influence financial credit risk modelling. The first factor is machine learning....
The model of financial risk prediction we developed and present in our paper is based on the theoretical assumption that there exists a significant relationship between actual economic situation and values. This assumption confirmed by the research i...
The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of thi...
This study explores the application of generative artificial intelligence (AI) in financial risk forecasting, aiming to assess its potential in enhancing both the accuracy and interpretability of predictive models. Traditional methods often struggle...
As financial institutions become increasingly reliant on similar foundational AI models, cloud infrastructure, data providers, and AI middleware platforms, diverse firms may begin to interpret and respond to market signals in increasingly similar way...
With the accelerated development of economic globalization, it is of great significance to strengthen the ability to measure, evaluate, and warn of systemic financial risks for preventing and defusing financial risks. Thus, this research established...
An effective financial risk forecast depends on the selection of important indicators from a broad set of financial indicators that are often correlated with one another. In this paper, we address this challenge by proposing a Cox model with a graph...
Bank telemarketing campaigns often experience low subscription rates due to customer heterogeneity and severe class imbalance, which pose challenges for reliable predictive modeling. This study investigates a data-driven approach that integrates synt...
Our paper employs complex network theory and the SEIQRS epidemic model based on the dynamics of differential equations to investigate the contagion mechanisms of financial risk within banking systems and to evaluate rescue strategies. A scale-free in...
The issue of the debt, bankruptcy or non-bankruptcy of a company is presented in this article as one of the ways of conceiving risk management. We use the Amadeus database to obtain the financial and accounting data of Slovak enterprises from 2015 an...
In recent years, local governments have boosted their local economies by raising large amounts of debt. Even though the state further strictly controls local government debt, the hidden debt formed by the local government borrowing in disguised form...
This paper endeavors to enhance the prediction of volatility in financial markets by developing a novel hybrid model that integrates generalized autoregressive conditional heteroskedasticity (GARCH) models and long short-term memory (LSTM) neural net...
Predicting financial distress is one of the most well-known issues in corporate finance. Investors and other stakeholders often use prediction models as relevant tools for identifying weaknesses to eliminate potential threats to business partners. Th...
This paper aims to tackle the problem of low accuracy in predicting financial distress in Chinese industrial enterprises, attributable to data imbalance and insufficient information. It utilizes annual data on systemic risk indicators and financial m...
This study examines the long-term financial sustainability of commercial banks, emphasizing the crucial role of credit risk management. Given that the core function of credit creation inherently exposes banks to credit risk, this analysis evaluates h...
Linking textual information in finance reports to the stock return volatility provides a perspective on exploring useful insights for risk management. We introduce different kinds of word vector representations in the modeling of textual information:...
With the proliferation of mobile devices and payment systems in modern financial services, there is an increasing need to process and analyze continuous streams of transaction data for credit risk assessment. Leveraging the inherent symmetries in fin...
This paper develops an approach based on Gram–Charlier-like expansions for modeling financial series to take in due account features such as leptokurtosis. A Gram–Charlier-like expansion adjusts the moments of interest of a given distribu...
Modeling risk evolution in financial networks presents both practical and theoretical challenges, particularly during periods of heightened systemic stress. This issue has gained urgency recently in China as it faces unprecedented financial strain, l...
Understanding how financial management practices translate into firm-level financial sustainability remains an important yet insufficiently explored issue. This study examines how financial discipline and financial risk management contribute to finan...
To systematically examine the impact of climate risks on China’s financial system, this study employs the EGARCH-SGED model to precisely fit financial market volatility based on China’s Climate Change News Index. It then combines the LASS...
This study examines how operational efficiency, credit risk, and third-party funds affect the stock prices of banks listed on the Indonesia Stock Exchange, with financial performance acting as a mediating variable. Focusing on banks included on the m...
This paper examines the impact of country risk on banking sector stability, employing the CAMELS framework, within 13 Middle Eastern and North African (MENA) countries for 1984–2024. The analysis exploits the impact of political, economic, and...
Financialization has contributed to economic growth but has caused scandals, misselling, rogue trading, tax evasion, and market speculation. To a certain extent, it has also created problems in social and economic instability. It is an important aspe...
30 May 2024
The prediction of bankruptcy risk poses a formidable challenge in the fields of economics and finance, particularly within the healthcare industry, where it carries significant economic implications. The burgeoning field of healthcare electronic comm...
This paper analyzes solvency dynamics in Ecuador’s mutualist segment by modeling the joint behavior of the productive-assets-to-total-assets ratio (PATR) and portfolio-specific delinquency rates. Using monthly supervisory data from the Superint...
Many industries put on a show of sustainability to draw in investors even though they are not financially viable. This study examines how real-earnings management (REM) moderates the relationship between credit risk (CR) and financial sustainability...
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 an...
The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use ea...
The carbon–financial nexus helps firms evaluate susceptibility to carbon risk more effectively. This is the first research article to model the short- and long-run co-integrating association between European financial markets, the CBOE oil pric...
Understanding the time dynamics of systemic risk in banking networks is crucial for preventing financial crises and ensuring economic stability. This paper aims to quantify key transition times in the evolution of distress within a banking system usi...
The financial early warning mechanism of listed companies has an important strategic value for maintaining the stability of the capital market and preventing systemic financial risks. This study proposes a hybrid model (EBWO-BP) based on the improved...
Accurate corporate credit ratings are essential for financial risk assessment; yet, traditional methodologies relying on manual evaluation and basic statistical models often fall short in dynamic economic conditions. This study investigated the poten...
This study explored the complex interplay and potential risk of financial contagion across major financial indices, focusing on the Bucharest Exchange Trading Investment Funds Index (BET-FI), along with global indices like the S&P 500, Nasdaq Com...
This paper investigates investment and output dynamics in a simple continuous time setting, showing that financing constraints substantially alter the relationship between net worth and the decisions of an optimizing firm. In the absence of financing...
Although employed women represent one of the fastest-growing segments of the investor population in emerging economies, their investment decision-making is still largely modelled through fragmented, single-determinant frameworks that treat women as a...
With the continuous integration of globalization and financial markets, the linkage of global financial risks has increased significantly. This study examines the risk spillover effects and transmission dynamics among the financial markets in G20 cou...
Financial instability is traditionally measured using indicators such as volatility levels, financial stress indices, or forecast errors, limiting the ability to capture the state-conditional and distributional properties of market dynamics. In this...
This paper considered a dependent discrete-time risk model, in which the insurance risks are represented by a sequence of independent and identically distributed real-valued random variables with a common Gamma-like tailed distribution; the financial...
Credit risk evaluation is a key factor in financial intermediation, regulatory capital provision, and risk management in the portfolio. In this study, we compare the deep learning performance for probability-of-default (PD) estimation with a structur...
Physical climate hazards—floods, storms, heatwaves, and wildfires—are increasingly disrupting banking operations and generating growing litigation and legal-risk exposures, yet operational risk remains one of the least studied channels th...
The global financial market has become extremely interconnected as it demonstrates strong nonlinear contagion in times of crisis. As a result, it is necessary to measure financial systemic risk in a comprehensive and nonlinear approach. By establishi...
In this paper, we aim to provide a new algorithm for managing financial risk in portfolios containing multiple high-volatility assets. We assess the variability of volatility with the Volterra model, and we construct an estimator of the Value-at-Risk...
The avenue to find a balanced assessment of systemic financial institutions needs the integration of macro and micro granular datasets. This paper investigates how macroeconomic shocks affect systemic risk through several transmission channels. Emplo...
Volatility in financial markets refers to the variation in asset prices over time. High volatility indicates increased risk, making its evaluation essential for effective risk management. Various methods are used to assess volatility, with the standa...
This paper proposes a novel censored autoregressive conditional Fréchet (CAcF) model with a flexible evolution scheme for the time-varying parameters, which allows deciphering tail risk dynamics constrained by price limits from the viewpoints...
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