Search Results (198)

The current study explores how corporate governance affects firm performance. It also examines the link between corporate governance and firm performance within capital structure, focusing on how financing decisions may moderate this relationship.—This analysis covers 215 non-financially registered firms listed on the Pakistan Stock Exchange from 2010 to 2022. To assess the quality of governance in these sample firms, a governance index incorporating 29 provisions is utilized. In addition, the book value of the debt-to-equity ratio determines the capital structure, whereas ROA and ROE serve as indicators of business performance. The methodology relies on panel data techniques, specifically the Fixed Effects Model and Random Effects Model, as determined by the Hausman test. Furthermore, multiple additional tests are conducted to verify the robustness of the analysis. Regression analysis shows that corporate governance significantly increases profitability (i.e., ROA and ROE), while capital structure significantly decreases it. Furthermore, when examining the capital structure’s moderating effect, the results indicate that the interaction variable significantly enhances firm performance. Still, it is more significant in terms of ROA than ROE, suggesting that market participants consider leverage not a good disciplinary mechanism, as high leverage introduces financial risk and obligations (such as interest payments) that can reduce firms’ ability to translate good governance practices into performance. Interactive variables have a weaker effect on profitability, as measured by ROE. Furthermore, these findings are more prevalent in larger, higher-level, and better-governed firms. The study’s findings could help lenders assess a company’s governance structure before making financial decisions. Similarly, investors should examine the quality of corporate governance and the company’s capital structure decisions. Managers should be extremely cautious when deciding how much long-term debt to include in their capital structure. The study indicates that capital structure plays an additional role in how corporate governance affects a company’s performance. This role is not often explored in research, especially in emerging markets. Full article

Digital technologies have fundamentally changed how public administration operates, moving it from traditional bureaucratic structures toward more efficient and responsive systems. This study analyzes the links between e-government usage (measured as the percentage of individuals who interact with public authorities via online platforms), governance quality, and fiscal performance across ten Central and Eastern European countries from 2010 to 2023. Using a fixed-effects panel data model, we investigate whether higher e-government usage is associated with stronger government effectiveness, improved budget balances, and more sustainable public debt levels, while controlling for key macroeconomic and structural factors. Employing a fixed-effects panel data model, we examine whether greater use of e-government services is associated with stronger government effectiveness, improved budget balances, and more sustainable public debt levels, while accounting for key macroeconomic and structural factors. The findings show a positive and statistically significant association between e-government usage and government effectiveness. The links to fiscal outcomes are more nuanced: e-government usage is associated with better budget balances, mainly through indirect channels such as higher tax compliance and tighter expenditure control. In contrast, its association with public debt levels is weaker and appears to depend more strongly on broader macroeconomic conditions. Overall, the findings suggest that greater e-government usage is associated with improvements in governance quality in the CEE region, although its contribution to long-term fiscal sustainability remains conditional on the quality of existing institutions. Full article

Agricultural enterprises serve as the cornerstone of food security. However, they operate under significant resource constraints and environmental risks. Adopting a systems lens, this study examines digitalization as a critical variable reshaping the input–output logic of agribusinesses. Using a longitudinal panel dataset of Chinese listed agricultural firms from 2013 to 2022 and Ordinary Least Squares regression, the study empirically identifies the mechanisms driving ESG performance. The results demonstrate that digitalization significantly enhances overall ESG performance, functioning as a governance mechanism that improves internal resource integration and transparency. Critically, the moderation analysis reveals a dynamic substitution relationship among system elements. Traditional inputs, specifically management expenses, financial slack, and intangible assets, exert significant negative moderating effects. This confirms the logic of factor substitution, suggesting that as digitalization advances, traditional governance modes relying on high administrative costs face diminishing marginal returns. In the environmental dimension, digitalization facilitates a transition from post-event remediation to whole-process control through intelligent traceability, effectively internalizing external constraints and reducing waste emissions. Additionally, heterogeneity analysis highlights significant structural variations. The ESG-enhancing effect of digitalization is more pronounced in firms characterized by high financial leverage, low long-term debt, and low industry concentration. Spatially, the marginal improvement is stronger in Western regions compared to the East, underscoring the Hu Huanyong Line as a critical structural boundary. Ultimately, digitalization serves as a core governance element that drives the structural transformation from traditional operating paradigms to digital governance architectures, thereby providing a robust pathway for corporate sustainability. Full article

This study investigates the determinants of capital structure in Moroccan agricultural SMEs, with particular emphasis on the distinction between interest-bearing debt and non-interest-bearing liabilities in a context characterized by persistent credit constraints. While traditional capital structure theories typically treat debt as a homogeneous aggregate, such an approach may obscure important financing dynamics in financially constrained environments. Using a panel dataset of 52 agricultural SMEs observed over the period 2017–2022, the analysis employs a correlated random effects model to control for unobserved heterogeneity. The results indicate a negative relationship between profitability and both total and short-term debt, consistent with the predictions of the Pecking Order Theory. Liquidity, asset tangibility, and firm size are negatively associated with non-interest-bearing current liabilities, suggesting that trade-based financing may serve as an adjustment mechanism when access to formal credit is limited. In contrast, long-term debt is only weakly explained by firm-level characteristics, pointing to potential supply-side constraints in agricultural credit markets. Overall, the findings suggest that financing patterns in agricultural SMEs appear to be more closely associated with credit market imperfections than with optimal trade-off considerations. By distinguishing between different debt components, this study contributes to the literature by highlighting the importance of debt composition when analyzing capital structure in emerging and financially constrained economies. Full article

Utilising data from the selected companies listed on the Johannesburg Stock Exchange and using the Panel Autoregressive Distributed Lag (ARDL) specifically employing the Pooled Mean Group approach, this study examines the cointegrating and causal relationships among firm liquidity, performance and firm leverage. The results reveal a negative and significant long-run and short-run relationship between profitability and leverage. Conversely, higher leverage is found to diminish firm performance, consistent with trade-off theory implications regarding financial distress costs. On liquidity, results revealed a bidirectional long-run relationship among liquidity, leverage, and firm value as measured by Tobin’s Q. Also, liquidity plays a pivotal moderating role, where firms with stronger liquidity and profitability exhibit reduced reliance on external debt, highlighting the interplay between financial health and capital structure decisions. Additionally, a positive bidirectional relationship between Tobin’s Q and leverage suggests that growth opportunities and market valuation influence firms’ debt utilisation. The error correction terms confirm stable long-run equilibrium and moderate adjustment speeds. These results contribute to the understanding of optimal capital structure by integrating liquidity and performance factors and provide practical insights for corporate financial management and policy formulation. Full article

Retirement wealth is a core indicator of financial security, autonomy, and inequality in later life. This paper examines how cohort, institutional context, and social class interact to shape retirement wealth, focusing on Generation X. Gen X occupies a critical but understudied position in the life course between peak earning years and full retirement; they also came of age during a major restructuring of the U.S. economy that shifted financial risk from institutions to individuals. I compare Gen X retirement wealth to that of adjacent cohorts, evaluating how different asset and debt types contribute to cohort differences in retirement readiness. I also examine intra-cohort inequality by wealth class. Findings suggest that retirement wealth inequality is especially severe among those nearing and exiting the labor force. The analyses highlight how long-term economic security is socially structured and historically contingent—making retirement wealth a powerful lens for understanding inequality across time and class. Full article

This study seeks to establish how financial leverage mediates the relationship between corporate governance and the financial performance of 58 carbon-intensive firms listed on the Johannesburg Stock Exchange over the period 2015–2023. This study employed the two-step system generalised method of moments to address endogeneity issues. The results indicate that leverage negatively impacts a firm’s financial performance, but leverage does not mediate the relationship between corporate governance and a firm’s financial performance in carbon-intensive firms. The results of the study also reveal that board remuneration negatively influences a firm’s financial performance, yet board independence has an insignificant impact on firm performance. These results underscore the need for carbon-intensive companies to reassess their remuneration policies to ensure alignment with short-term financial benefits and long-term sustainability initiatives. The findings also suggest that sustainability projects financed predominantly by debt may negatively impact short-term financial performance, indicating the importance of a balanced capital structure during the decarbonisation process. Full article

This paper examines the evolution of the Portuguese residential real estate market during the first twenty-five years of the 21st century, focusing on the short-run determinants of housing transaction values. Using quarterly data from 2000 to 2025, the study applies an econometric time-series framework that explicitly addresses non-stationarity. The model evaluates the dynamic effects of macroeconomic performance, housing credit conditions, indicators of household financial stress, interest rates, confidence measures and demographic factors. Results show that housing market dynamics in Portugal are predominantly driven by GDP growth, with effects persisting across several quarters. Credit-related variables, particularly housing lending conditions and indicators of household financial fragility, exert significant influence. In contrast, short-term interest rates, confidence indicators and immigration flows do not exhibit statistically significant independent short-run effects. The findings highlight the relevance of macroeconomic and financial channels in shaping housing market fluctuations, supporting the need for coordinated housing and macroprudential policies to mitigate cyclical risks. The study provides a long-term empirical assessment of housing market dynamics in a Southern European economy that experienced financial crises, sovereign debt adjustment and post-pandemic recovery, integrating macroeconomic and financial determinants within a unified short-run analytical framework. Full article

Ornamental horticulture represents one of the dominant pathways for the introduction of alien plant species and has played a central role in shaping current and future invasion dynamics. Many ornamental plants escape cultivation after long lag phases, driven by high propagule pressure, human-mediated selection of functional traits, and increasing climatic suitability. As a result, ornamental species contribute substantially to Europe’s invasion debt, with many future invasions already “locked in” under ongoing global change. In this review, we synthesize current knowledge on the invasive risk of ornamental plants in Europe, examining introduction pathways, biological traits promoting invasiveness, the role of climate change, and the ecological, economic, and social impacts associated with ornamental plant invasions. We highlight that beyond biodiversity loss, invasive ornamental plants pose underappreciated threats to agriculture and related activities, including increased management costs, weed problems in managed landscapes, and disruption of water management and irrigation infrastructure, particularly through invasive aquatic species. We further review tools for risk assessment and prevention, including weed risk assessment frameworks, green lists, horizon scanning, and climate-informed spatial forecasting, emphasizing the importance of proactive, pathway-based approaches. Where prevention fails, management of established invasive ornamentals relies on integrated strategies combining mechanical, chemical, and biological control, often generating large quantities of biomass and long-term economic costs. We discuss the emerging but still limited potential of invasive plant biomass valorization as a complementary management option, highlighting both opportunities and constraints. Finally, we discuss implications for horticultural practices, policy development, and future research, arguing that reconciling ornamental horticulture with biodiversity conservation and sustainable agriculture will require anticipatory governance, stakeholder engagement, and climate-aware decision-making. By aligning horticultural innovation with invasion risk awareness, it may be possible to reduce future invasions while maintaining the social and economic benefits of ornamental plant use in Europe. Full article

Policy instability and regulatory barriers remain key obstacles to the long-term viability of agriphotovoltaics (APV) deployment. The Penthéréaz case in Switzerland provides empirical evidence of how cooperative governance and collective self-consumption can restore project feasibility after subsidy withdrawal. Using a single-case study and process-tracing approach based on cooperative documentation and regulatory records, the analysis explains how Penthéréaz Énergie Photovoltaïque S.A. cooperative (PEP)., initially structured as a subsidy-dependent venture, transitioned into a resilient collective self-consumption network supported by a private micro-grid. Following the withdrawal of federal feed-in tariffs, the project faced major economic risk and responded through decentralized financial restructuring, including community-funded debt at a 2% interest rate. The installation comprises 1180 photovoltaic panels with an installed capacity of 283 kWp, producing approximately 290,000 kWh per year while providing water-tightness and light permeability for agricultural infrastructure. The findings further indicate that operational success contributed to Swiss regulatory adjustments, enabling private distribution networks to cross public roads and secure geographic continuity for local energy sharing. With a reported self-consumption rate of 40% across a diversified user base including agri-food and residential consumers, the case demonstrates the operational value of local load-matching. The findings propose six context-dependent lessons derived from a single case, emphasizing governance capacity, tariff risk management, regulatory adaptability, and demand-oriented system design. Full article

The effect of corporate social responsibility (CSR) disclosure on zero-leverage policies is examined for listed firms at the Pakistan Stock Exchange (PSX) from 2010 to 2021. Binary logistic regression models show a statistically significant positive relationship between CSR disclosure and zero leverage. Increased CSR disclosure raises the propensity of firms to have zero leverage. Moreover, the negative effect of CSR disclosure on debt ratios further confirms these findings. Results show that highly disclosed CSR firms face less information asymmetry and prefer equity financing over bank debt. Regulators should develop incentive programs to increase their CSR disclosure and strengthen stakeholders’ relationships. Full article

For over a century now, one of the central debates of economic policy has been around fiscal policy. Taxation and government spending have been a feature of most political campaigns, with one (more vocal) side claiming that taxation chokes economic growth and benefits special interests, while leaving a legacy of debt. Another side sees taxation as a necessary tool for creating equal opportunity and ensuring adequate investment in collective public goods, including human capital. Using newly constructed datasets that we will make available, we take a fresh look at fiscal policy on the global level and across U.S. states, measuring its effects on growth and equity. We utilize a new technique, functional data analysis (FDA). We find limited evidence for both the conservative and progressive arguments around fiscal policy in the short term. Rather, the data suggest persistent fiscal patterns across space and time that reflect long-term social value choices around the tradeoffs of growth vs. public investment and equity. Full article

Wood flooring manufacturers face complex challenges in dynamically allocating resources across multi-channel markets, characterized by channel conflicts, demand uncertainty, and long-term cumulative effects of decisions. Traditional static optimization or myopic approaches struggle to address these intertwined factors, particularly when critical market states like brand reputation and customer base cannot be precisely observed. This paper establishes a systematic and theoretically grounded online decision framework to tackle this problem. We first model the problem as a Partially Observable Stochastic Dynamic Game. The core innovation lies in introducing an unobservable market position vector as the central system state, whose evolution is jointly influenced by firm investments, inter-channel competition, and macroeconomic randomness. The model further captures production lead times, physical inventory dynamics, and saturation/cross-channel effects of marketing investments, constructing a high-fidelity dynamic system. To solve this complex model, we propose a hierarchical online learning and control algorithm named L-BAP (Lyapunov-based Bayesian Approximate Planning), which innovatively integrates three core modules. It employs particle filters for Bayesian inference to nonparametrically estimate latent market states online. Simultaneously, the algorithm constructs a Lyapunov optimization framework that transforms long-term discounted reward objectives into tractable single-period optimization problems through virtual debt queues, while ensuring stability of physical systems like inventory. Finally, the algorithm embeds a game-theoretic module to predict and respond to rational strategic reactions from each channel. We provide theoretical performance analysis, rigorously proving the mean-square boundedness of system queues and deriving the performance gap between long-term rewards and optimal policies under complete information. This bound clearly quantifies the trade-off between estimation accuracy (determined by particle count) and optimization parameters. Extensive simulations demonstrate that our L-BAP algorithm significantly outperforms several strong baselines—including myopic learning and decentralized reinforcement learning methods—across multiple dimensions: long-term profitability, inventory risk control, and customer service levels. Full article

This paper examines the impact of fiscal policy responses on unemployment across EU countries from 2019 to 2024, a period marked by the COVID-19 pandemic as a shock event. A detailed monthly panel data set is used in this study, employing a fixed-effects estimation model with government spending, revenue, and debt as core variables, along with the COVID-19 dummy as a control variable. The findings reveal a strong association between government spending and revenue in reducing unemployment, aligned with countercyclical fiscal policy support. Conversely, increasing government debt is strongly linked to higher unemployment, indicating a risk of excessive borrowing that could hinder future labor market recovery. Moreover, uncertain external economic conditions, such as the COVID-19 pandemic, have further intensified labor market distortions. Finally, the results highlight that fiscal policies can effectively mitigate unemployment in the short term; however, excessive debt may pose challenges to long-term fiscal sustainability. This study underscores the importance of well-structured and timely coordinated fiscal policy frameworks that promote employment stabilization, while ensuring long-term debt sustainability. Full article

Families raising children with autism face financial planning challenges, particularly in countries with limited social support. Using data from 497 Chinese families, this study examined saving behavior for children with autism. Results showed that only 46% of families had saved for their children’s future, with an average of 104,000 RMB. Key predictors of saving probability included debt (β = −0.02, p < 0.05), financial skills (β = 0.10, p < 0.01), financial attitude (β = 0.09, p < 0.05), and subjective financial well-being (β = 0.09, p < 0.05). Factors associated with savings amount were assets (β = 0.12, p < 0.05), debt (β = −0.07, p < 0.05), financial attitude (β = 0.57, p < 0.001), and subjective financial well-being (β = 0.56, p < 0.001). Findings highlight the need for financial capability interventions and policy support to help families manage debt, build assets, and improve long-term financial planning. Full article