Search Results (95)

This study examines the impact of overall Environmental, Social, and Governance (ESG) performance and its pillars on the default probability of Australian-listed firms. Using a panel dataset spanning 2014 to 2022 and applying the Generalized Method of Moments (GMM) regression, we find that firms with higher ESG scores exhibit a significantly lower likelihood of default. Disaggregating the ESG components reveals that the Environmental and Social pillars have a negative association with default risk, suggesting a risk-mitigating effect. In contrast, the Governance pillar demonstrates a positive relationship with default probability, which may reflect potential greenwashing behavior or an excessive focus on formal governance mechanisms at the expense of operational and financial performance. Furthermore, the analysis identifies trade credit financing (TCF) as a partial mediator in the ESG–default risk nexus, indicating that firms with stronger ESG profiles rely less on external short-term financing, thereby reducing their default risk. These findings provide valuable insights for corporate management, investors, regulators, and policymakers seeking to enhance financial resilience through sustainable practices. Full article

In Latin America, over 50% of the population has relied on loans from family members or friends, reflecting the importance of trust-based networks in response to financial exclusion. This study examines how distrust in the formal financial system influences the use of informal borrowing. Using data from 17 countries for the years 2014, 2017, and 2021, and applying a fixed-effects logistic regression model by country and time, we confirm that rising distrust significantly increases the likelihood of turning to loans from personal networks. This relationship intensifies in times of crisis. Beyond this, we find that macroeconomic variables such as GDP per capita and unemployment also significantly affect informal borrowing behavior. This research contributes to the literature by integrating institutional, economic, and social variables, highlighting the role of interpersonal trust as a form of social capital. It also advances the field of personal finance by revealing an everyday strategy of financial resilience. Finally, this study offers relevant implications for public policy, advocating for a more realistic and context-sensitive approach to financial inclusion, especially in regions where credit constraints in the formal sector have pushed households to seek more accessible and flexible alternatives. Full article

This study examines how entrepreneurial finance, entrepreneurial networking, and entrepreneurial culture contribute to sustainable business among culinary micro-enterprises in Bandung City, Indonesia. This study fills a gap in the literature by highlighting that micro-enterprises’ sustainability, from economic, social, and environmental aspects, is not always underpinned by formal institutional support. Using a qualitative approach and semi-structured interviews with 10 culinary micro-enterprise owners whose businesses have been able to survive across generations, this study found that business owners manage their finances adaptively, build trust-based social networks, and apply local cultural values to sustainable business practices. The findings show that trust and flexibility in informal funding play a crucial role in entrepreneurial finance, while challenging the view that access to formal financing is the main prerequisite for sustainability. Entrepreneurial culture proves to be a strategic internal resource in strengthening environmentally friendly practices. The originality of this study offers an alternative perspective that is more contextualized and grounded in understanding the sustainability strategies of micro-enterprises in developing countries. Full article

The lack of transparency in many AI systems continues to hinder their adoption in critical domains such as healthcare, finance, and autonomous systems. While recent explainable AI (XAI) methods—particularly those leveraging large language models—have enhanced output readability, they often lack traceable and verifiable reasoning that is aligned with domain-specific logic. This paper presents Nomological Deductive Reasoning (NDR), supported by Nomological Deductive Knowledge Representation (NDKR), as a framework aimed at improving the transparency and auditability of AI decisions through the integration of formal logic and structured domain knowledge. NDR enables the generation of causal, rule-based explanations by validating statistical predictions against symbolic domain constraints. The framework is evaluated on a credit-risk classification task using the Statlog (German Credit Data) dataset, demonstrating that NDR can produce coherent and interpretable explanations consistent with expert-defined logic. While primarily focused on technical integration and deductive validation, the approach lays a foundation for more transparent and norm-compliant AI systems. This work contributes to the growing formalization of XAI by aligning statistical inference with symbolic reasoning, offering a pathway toward more interpretable and verifiable AI decision-making processes. Full article

Healthcare professionals require comparable knowledge and abilities in hospital financial administration. In addition, many physicians are not equipped to manage the leadership roles that healthcare systems require, namely the capacity to express a vision, convey it to others, garner willing support for it, and enable others to be leaders in return. Previous studies have demonstrated that physicians often lack financial literacy, while a recent systematic review and meta-analysis showed that healthcare professionals lack adequate financial literacy, although top healthcare practitioners and executive nurse leaders are encouraged to develop knowledge and abilities outside of their clinical specialty. The need for medical practitioners to receive training and experience in medical leadership has also been discussed in earlier studies. In Greece, evidence regarding the financial literacy levels and leadership skills among healthcare professionals is lacking, although physicians and nurses are required to obtain managerial and administrative roles as they progress in their positions. Our objective was to assess healthcare professionals’ levels of financial literacy and investigate the relationship between financial literacy and leadership skills in Greece. We conducted a prospective, multi-centered, question-based survey among healthcare professionals in several institutions in Northern Greece. Participants were asked to fill out basic demographic questions, the OECD/INFE Toolkit for Measuring Financial Literacy and Financial Inclusion 2022, and the Leadership Skills questionnaire, translated into Greek. The factorability of the questionnaires was examined with factor analysis, while the internal consistency was examined with Cronbach’s alpha. A linear correlation of leadership scores with financial literacy scores was performed with the Spearman rho, and multivariate regression analysis examined the correlation of the leadership score with financial literacy scores, adjusted for the type of task, education, status, gender, and age. The overall financial literacy score for all healthcare professionals was 69.14 ± 13.25%, which was higher compared to the average for the Greek population. Male healthcare professionals with administrative tasks had significantly higher overall financial literacy and digital financial literacy scores than females, or professionals without administrative tasks, as well as higher scores in all areas of leadership. Physicians had significantly higher overall financial literacy scores than nurses and significantly lower digital financial behavior and digital finance trend scores. Still, physicians scored significantly lower than nurses in all areas of leadership skills. There was a strong correlation between overall financial and digital financial literacy scores with leadership skills scores. Future research is warranted to explore how formal financial and leadership education included in the training programs of healthcare professionals would empower physicians by enabling them to make proactive decisions regarding their financial and managerial destiny. Full article

The European Commission (EC) is taking steps towards the implementation of a Galileo Timing Service. This service is now formally part of the mission of the Galileo Second Generation, and it puts emphasis on serving critical infrastructure. Implementing a proper service implies putting all the necessary elements in place to be able to meet the defined level of performance. In order to ensure the correct processing of the service’s signals and a minimum level of performance of the user receiver, corresponding standards are needed. Therefore, a fundamental element in the Galileo Timing Service concept is the standardization of Galileo Timing Receivers. The STARLITE project (Preparation of Standards for Galileo Timing Receivers) funded by the EC is the first international initiative to develop standards for GNSS Timing Receivers. The target users for the standard are all Galileo Timing users, with a special focus on critical infrastructure within the telecommunications, finance and energy sectors. The standard leverages the specificities of the Galileo Timing Service. This will become fundamental in order to ensure the end-to-end performance for those users operating a receiver compliant with the standard. At the same time, the standard allows the use of other systems to further enhance the performance. The project helped to establish a formal Working Group (WG9) for the development of the standard under CEN/CENELEC JTC5. Full article

Considering refugees’ employment challenges in their host countries, they often need to create jobs by starting ventures and embracing self-employment. However, this requires financing. This study seeks to assess the roles of formal and informal financing in self-employment while also looking at the drivers of financing decisions and self-employment among refugees in an urban setting. Using the extension of the Blinder–Oaxaca decomposition pioneered by Fairlie, this study found informal financing to be significantly associated with an individual’s decision to be self-employed, while formal financing is not. Male refugees who access informal financing have a higher probability of embracing self-employment than refugee women and Kenyan nationals; this calls for actions that encourage forming community-based organizations that promote affirmative action and steer the use of informal finance. Full article

Entrepreneurship plays a crucial role in driving innovation, productivity, and economic growth, with universities emerging as key actors within entrepreneurial ecosystems. This study seeks to expand the understanding on the role of Latin American universities on entrepreneurial ecosystems by examining the case of alumni from Escuela Politécnica Nacional (EPN). Employing a mixed-methods approach, this research explores individual, organizational, and institutional dynamics within the Ecuadorian entrepreneurial ecosystem. Results indicate that universities like EPN nurture professional and technical capabilities but face institutional obstacles that restrict their capacity to foster knowledge-based, high-growth ventures. This study highlights several institutional-level barriers, including market dominance, limited access to formal financing, corruption, and complex regulations, that limit innovation. Thus, universities in the region play an important role in preparing potential entrepreneurs, yet their impact is ultimately restricted by contextual factors. To overcome these challenges, universities can strengthen their support by integrating entrepreneurship education, networking opportunities, early-stage venture experiences, and exposure to role models or success stories. Particularly in contexts like Ecuador, fostering self-efficacy, resilience, and opportunity recognition can boost entrepreneurial behavior. In addition, enhancing university–industry collaboration, encouraging business transparency, improving funding accessibility, and supporting knowledge-intensive businesses are essential steps to harness the full potential of universities in the entrepreneurial ecosystem. Full article

This study examines the mutual relationships among ESG performance, total factor productivity (TFP), and energy efficiency (EE) in a sample of Chinese A-share listed firms from 2010 to 2022. This study shows that ESG has a significant promotional effect on TFP. Reducing financing constraints and inefficient investment are among the mediating mechanisms, and the latter plays a greater role. Heterogeneity analyses suggest that state-owned enterprises (SOEs) and heavy-polluting enterprises (HPEs) should be consistently committed to ESG responsibility fulfillment. Formal environmental regulation (FER) can be complementary to ESG, but informal environmental regulation (IER) has the opposite effect. TFP was instead suppressed by the triple combined effect of ESG with these two. The results of the threshold effects of ESG and EE indicate that the positive impact on EE becomes more pronounced as ESG performance improves. However, ESG performance varies across subdimensions. As green technology research and development efficiency (GRDE) and green technology transformation efficiency (GTTE) improve, stronger ESG promotes EE. This threshold effect also exhibits heterogeneity with respect to the ownership structure. Moreover, there is bidirectional causality between EE and TFP, and EE has a stronger positive effect on TFP. These findings reveal the optimal paths and potential risks for moving toward sustainability for firms. Full article

The high-quality development of China’s fishery economy serves as its core objective, with robust financial support playing a pivotal role. This study employs provincial panel data spanning 2005 to 2020 and utilizes the entropy method to evaluate the level of high-quality development in China’s fishery economy across three dimensions: fundamental security, sustainability, and comprehensive efficiency. From the perspectives of formal and informal finance, it compares their support effects on different aspects of high-quality development in China’s fishery economy, while also exploring the mechanisms underlying these effects by considering factors such as industrial uncertainty and economic scale. The findings indicate that, overall, the support provided by both formal and informal finance for high-quality development in the fishery economy is insufficient. Further analysis reveals a significant threshold effect of fishery economic scale, with turning points at 108.44 billion CNY and 232.98 billion CNY for formal and informal finance, respectively. For higher-level indicators, such as sustainability and comprehensive efficiency, formal and informal financial systems demonstrate complementary roles, depending on the scale of the regional fishery economy. Furthermore, industrial uncertainty serves as a significant mediating factor only for formal financial support, with the levels of sustainability and comprehensive efficiency most affected. Full article

By exploring the positive elements of traditional business culture and combining them with modern enterprise management concepts, this paper aims to realize the sustainable development of enterprises and cultural heritage and innovation. In this context, this study empirically examines the impact and mechanisms of merchant guild culture (MGC) on corporate innovation, using A-share listed companies from 2010 to 2022 as a sample. The findings indicate that MGC positively influences contemporary corporate innovation through both external and internal channels. External channels include alleviating financing constraints and enhancing ESG performance, and internal influence channels such as improving integrity and emphasizing human capital. Additionally, social networks strengthen the relationship between MGC and corporate innovation. Furthermore, using the legal environment as a moderating variable has led to the discovery of a certain substitution relationship between formal and informal institutions. A heterogeneity analysis further shows that the effect of MGC on innovation is more pronounced in enterprises with low-risk preference and a foreign cultural impact. Full article

With the rapid development of digital finance, digital financial literacy is becoming increasingly important. This study examines the impact of digital financial literacy on household entrepreneurship and finds that it significantly promotes the occurrence of household entrepreneurship. To address potential endogeneity concerns, the study employs an instrumental variable approach, and the results remain robust after a series of checks. Heterogeneity tests reveal that the effect of digital financial literacy on household entrepreneurship is particularly pronounced in rural areas, underdeveloped regions, and lower-tier cities. Further analysis indicates that digital financial literacy also enhances household entrepreneurial investment levels, with a more significant impact on survival entrepreneurship investments. In mechanism tests, the study shows that access to formal finance partially mediates the relationship between digital financial literacy and household entrepreneurship. Additionally, our research also found that digital financial literacy can promote entrepreneurship among marginalized groups, such as women and individuals with lower levels of education. Our findings offer valuable insights for policymakers aiming to foster sustainable and inclusive development. In line with the United Nations’ 2030 Agenda for Sustainable Development, entrepreneurship is recognized as a key driver for achieving sustainable economic growth. Our study emphasizes the importance of promoting entrepreneurship by enhancing digital financial literacy among residents in underdeveloped areas, which is crucial for fostering inclusive growth, creating jobs, and reducing regional disparities, all of which contribute to long-term sustainable development. Full article

The sharing economy (SE) is a strongly contested idea, both conceptually and politically. This paper first explores multiple existing definitions, emphasizing the challenges in both conceptual and operational terms they usually entail. It is argued that most of the common definitions tend to exacerbate tensions between informativeness and veracity, resulting in the SE becoming a catch-all concept. Alternatively, it is often suggested to operationalize the concept by breaking it down among its main areas, such as consumption, knowledge, production, and finance. However, these kinds of classifications lack logical-formal consistency and substantive validity. The paper then addresses the political-normative debate by briefly presenting the three main existing perspectives on the SE: (i) as a more inclusive form of capitalism, (ii) as the advancement of the neoliberal agenda, and (iii) as a sort of emancipatory economy. The primary aim of this paper, however, is not to advocate for a singular viewpoint or scrutinize any particular author’s theory, but to examine three common errors that the emancipatory conception may easily fall into: (i) overemphasizing the role of communities in economic activity, (ii) attributing an inherent collaborative propensity to individuals, and (iii) understanding markets from an a-institutional and psychological standpoint. The conclusions suggest that to truly realize the emancipatory potential of the SE, the conception should distance itself from standard economic theory and adopt a more institutional approach akin to classical political economy. Full article

There is a consistent lack of consensus on critical elements in the study of construction governance. To advance the practice and theoretical development of project governance, this paper aims to construct a scale for the governance capabilities of participants in construction projects. By employing agency theory, stakeholder theory, resource dependence theory, and transaction cost economics, this study examines the governance capabilities of participants in construction projects and conceptualizes a comprehensive framework for governance capabilities. Based on post-positivism, the triangulation method was used to collect data, and the Governance Capability Scale was developed through a pre-survey and formal research. The research findings identify governance capabilities across eight dimensions and 47 measurement items, encompassing business, finance, human resources, learning and innovation, marketing, organizational management, project management, and procurement. The scale has satisfactory applicability. Among these constructs, only organizational management is negatively correlated with the other constructs. The findings significantly clarify capability constructs in construction governance, aiding project managers in achieving refined management during construction. Essentially, this study advances the knowledge base of project governance. This contribution not only supports the theoretical development of governance practices but also promotes high-quality development in the construction industry. Full article

Despite the MFI insurgency, agricultural financing remains critically low, even though microcredit is widely accepted as both a substitute and compliment to formal credit. Zimbabwe is an agro-based economy and very little is known about the determinants of microcredit demand and microcredit size in smallholder resettled sugarcane farmers. Research is concentrated in short-term agriculture activities. Thus, this study aims to fill the unattended gap in lagged returns agriculture activities such as sugarcane production which takes at least a year to mature, hence, the greater need for agriculture financing alternatives such as microfinance. The study examined the determinants of both microcredit demand and loan size (magnitude of microcredit participation) by smallholder resettled A2 sugarcane farmers in Chiredzi. Primary data from 370 smallholder resettled sugarcane farmers (214 borrower participants and 156 non-borrower participants) were used. Probit and Tobit regression models were used for data analysis in STATA. Operational costs, interest rate, grace period, and land size significantly affect both the demand for microcredit and microcredit size, while education, household farming assets, extension services, and payback period significantly affect microfinance demand, and risk attitude/perception additionally determine microcredit size. Special microfinance schemes best suitable for the agriculture sector and crop/plant-specific agriculture financing schemes, currency, and macroeconomic stability are the major policy recommendations. Full article