Search Results (536)

Ecosystem services—the benefits humans derive from nature—are foundational to environmental sustainability and economic well-being, with carbon sequestration and storage standing out as critical regulating services in the fight against climate change. This study presents a comprehensive financial valuation of the carbon sequestration, storage and product substitution ecosystem services provided by the Hungarian forest-based sector. Using a multi-scenario framework, four complementary valuation concepts are assessed: total carbon storage (biomass, soil, and harvested wood products), annual net sequestration, emissions avoided through material and energy substitution, and marketable carbon value under voluntary carbon market (VCM) and EU Carbon Removal Certification Framework (CRCF) mechanisms. Data sources include the National Forestry Database, the Hungarian Greenhouse Gas Inventory, and national estimates on substitution effects and soil carbon stocks. The total carbon stock of Hungarian forests is estimated at 1289 million tons of CO₂ eq, corresponding to a theoretical climate liability value of over EUR 64 billion. Annual sequestration is valued at approximately 380 million EUR/year, while avoided emissions contribute an additional 453 million EUR/year in mitigation benefits. A comparative analysis of two mutually exclusive crediting strategies—improved forest management projects (IFMs) avoiding final harvesting versus long-term carbon storage through the use of harvested wood products—reveals that intensified harvesting for durable wood use offers higher revenue potential (up to 90 million EUR/year) than non-harvesting IFM scenarios. These findings highlight the dual role of forests as both carbon sinks and sources of climate-smart materials and call for policy frameworks that integrate substitution benefits and long-term storage opportunities in support of effective climate and bioeconomy strategies. Full article

This study evaluates the risk-adjusted performance of Hospitality REITs using multi-factor asset pricing models and downside risk measures with the aim of assessing their diversification potential and crisis sensitivity. Unlike prior studies that examine REITs in aggregate, this study isolates Hospitality REITs to explore their unique cyclical and macroeconomic sensitivities. This study looks at the risk-adjusted performance of Hospitality Real Estate Investment Trusts (REITs) in relation to more general REIT indexes and the S&P 500 Index. The study reveals that monthly returns of Hospitality REITs increasingly move in tandem with the stock markets during financial crises, which reduces their historical function as portfolio diversifiers. Investing in Hospitality REITs exposes one to the hospitality sector; however, these investments carry notable risks and provide little protection, particularly during economic upheavals. Furthermore, the study reveals that Hospitality REITs underperform on a risk-adjusted basis relative to benchmark indexes. The monthly returns of REITs show significant volatility during the post-COVID-19 era, which causes return-to-risk ratios to be below those of benchmark indexes. Estimates from multi-factor models indicate negative alpha values across conditional models, indicating that macroeconomic variables cause unremunerated risks. This industry shows great sensitivity to market beta and size and value determinants. Hospitality REITs’ susceptibility comes from their showing the most possibility for exceptional losses across asset classes under Value at Risk (VaR) and Conditional Value at Risk (CvaR) downside risk assessments. The findings have implications for investors and portfolio managers, suggesting that Hospitality REITs may not offer consistent diversification benefits during downturns but can serve a tactical role in procyclical investment strategies. Full article

This study investigates the impact of environmental, social, and governance (ESG) disclosure on value creation in a balanced panel of 100 non-financial Sharia-compliant firms listed on the Saudi Stock Exchange over the period 2014–2023. The analysis employs a combination of econometric techniques, including fixed effects models with Driscoll–Kraay standard errors, Pooled Ordinary Least Squares (POLS) with Driscoll–Kraay standard errors and industry and year dummies, and two-step system generalized method of moments (GMM) estimation to address potential endogeneity and omitted variable bias. Value creation is measured using Tobin’s Q (TBQ), Return on Assets (ROA), and Return on Equity (ROE). The models also control for firm-specific variables such as firm size, leverage, asset tangibility, firm age, growth opportunities, and market capitalization. The findings reveal that ESG disclosure has a positive and statistically significant effect on firm value across all three performance measures. Furthermore, firm size significantly moderates this relationship, with larger Sharia-compliant firms experiencing greater value gains from ESG practices. These results align with agency, stakeholder, and signaling theories, emphasizing the role of ESG in enhancing transparency, reducing information asymmetry, and strengthening stakeholder trust. The study provides empirical evidence relevant to policymakers, investors, and firms striving to achieve Saudi Arabia’s Vision 2030 sustainability goals. Full article

Recent years have seen a rise in combining deep learning and technical analysis for stock price prediction. However, technical indicators are often prioritized over technical charts due to quantification challenges. While some studies use closing price charts for predicting stock trends, they overlook charts from other indicators and their relationships, resulting in underutilized information for predicting stock. Therefore, we design a novel framework to address the underutilized information limitations within technical charts generated by different indicators. Specifically, different sequences of stock indicators are used to generate various technical charts, and an adaptive relationship graph learning layer is employed to learn the relationships among technical charts generated by different indicators. Finally, by applying a GNN model combined with the relationship graphs of diverse technical charts, temporal patterns of stock indicator sequences are captured, fully utilizing the information between various technical charts to achieve accurate stock price predictions. Additionally, we further tested our framework with real-world stock data, showing superior performance over advanced baselines in predicting stock prices, achieving the highest net value in trading simulations. Our research results not only complement the existing applications of non-singular technical charts in deep learning but also offer backing for investment applications in financial market decision-making. Full article

Prior research often portrays Corporate Social Responsibility (CSR) as a coercive institutional force compelling firms to passively conform for legitimacy. More recent studies, however, suggest firms actively pursue CSR to gain sustainable competitive advantages. Yet, how and when CSR buffers firms against adverse shocks of crises remains insufficiently understood. This study addresses this gap by using multiple regression analysis to examine the buffering effects of CSR investments during the COVID-19 crisis, which severely disrupted capital markets and firm valuation. Drawing on signaling theory and CSR literature, we analyze the stock market performance of China’s A-share listed firms using a sample of 2577 observations as of the end of 2019. Results indicate that firms with higher CSR investments experienced significantly greater cumulative abnormal returns during the pandemic. Moreover, the buffering effect is amplified among firms with higher debt burdens, greater financing constraints, and those operating in regions with stronger social trust and more severe COVID-19 impact. These findings are robust across multiple robustness checks. This study highlights the strategic value of CSR as a resilience mechanism during crises and supports a more proactive view of CSR engagement for sustainable development, complementing the traditional legitimacy-focused perspective in existing literature. Full article

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 critical topic in financial research. This study examines the volatility and tail risk of gold, crude oil, Bitcoin, and selected stock markets. Methodologically, we propose two improved Value at Risk (VaR) forecasting models that combine the autoregressive (AR) model, Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) model, Extreme Value Theory (EVT), skewed heavy-tailed distributions, and a rolling window estimation approach. The model’s performance is evaluated using the Kupiec test and the Christoffersen test, both of which indicate that traditional VaR models have become inadequate under current complex risk conditions. The proposed models demonstrate superior accuracy in predicting VaR and are applicable to a wide range of financial assets. Empirical results reveal that Bitcoin and the Chinese stock market exhibit no leverage effect, indicating distinct risk profiles. Among the assets analyzed, Bitcoin and crude oil are associated with the highest levels of risk, gold with the lowest, and stock markets occupy an intermediate position. The findings offer practical implications for asset allocation and policy design. Full article

Over the past decade, multifactor models have shown enhanced capability compared to single-factor models in explaining asset return variability. Given the common assertion that higher risk tends to yield higher returns, this study empirically examines the augmented human capital six-factor model’s performance on thirty-two portfolios of non-financial firms sorted by size, value, profitability, investment, and labor income growth in the Indian market over the period July 2010 to June 2023. Moreover, the current study extends the Fama and French five-factor model by incorporating a human capital proxy by labor income growth as an additional factor thereby proposing an augmented six-factor asset pricing model (HC6FM). The Fama and MacBeth two-step estimation methodology is employed for the empirical analysis. The results reveal that small-cap portfolios yield significantly higher returns than large-cap portfolios. Moreover, all six factors significantly explain the time-series variation in excess portfolio returns. Our findings reveal that the Indian stock market experienced heightened volatility during the COVID-19 pandemic, leading to a decline in the six-factor model’s efficiency in explaining returns. Furthermore, Gibbons, Ross, and Shanken (GRS) test results reveal mispricing of portfolio returns during COVID-19, with a stronger rejection of portfolio efficiency across models. However, the HC6FM consistently shows lower pricing errors and better performance, specifically during and after the pandemic era. Overall, the results offer important insights for policymakers, investors, and portfolio managers in optimizing portfolio selection, particularly during periods of heightened market uncertainty. Full article

Bank operations are contingent upon investor confidence, particularly during periods of economic distress. If investor confidence drops, a bank faces difficulties obtaining money, higher borrowing costs, and lower stock values. Non-performing loans (NPLs) potentially jeopardize a bank’s long-term viability and short-term profitability, and investors are naturally wary of institutions that pose a high credit risk. The purpose of the study was to explore how non-performing loans influence investor confidence in banks. A purposive sampling technique was used to identify 253 New York Stock Exchange banks in the Thomson Reuters Eikon DataStream that satisfied all the inclusion and exclusion selection criteria. The Common Correlated Effects Mean Group (CCEMG) and Generalized Method of Moments (GMM) models were used to analyze the data, providing insight into the relationship between the variables. The study discovered that NPLs had a negative and significant influence on price–earnings (P/E) and price-to-book value (P/B) ratios. Furthermore, the bank’s age was found to have a positive and significant relationship with the P/E and P/B ratio. The moderating relationship between NPLs and bank age was found to have a negative and significant influence on price–earnings (P/E) and price-to-book value (P/B) ratios. The findings underscore the importance of asset quality and institutional reputation in influencing market perceptions. Bank managers should focus on managing non-performing loans effectively and leveraging institutional credibility to sustain investor confidence, particularly during financial distress. Full article

In response to growing environmental concerns, hydrogen production has emerged as a critical element in the transition to a sustainable global economy. We evaluate the impact of hydrogen production on both the financial performance and market value of energy sector companies, using balanced panel data from 288 European-listed firms over the period of 2018 to 2022. The findings reveal a paradox. While hydrogen production imposes significant financial constraints, it is positively recognized by market participants. Despite short-term financial challenges, companies engaged in hydrogen production experience higher market value, as investors view these activities as a long-term growth opportunity aligned with global sustainability goals. We contribute to the literature by offering empirical evidence on the financial outcomes and market valuation of hydrogen engagement, distinguishing between production and storage activities, and further categorizing production into green, blue, and gray hydrogen. By examining these nuances, we highlight the complex relationship between financial market results. While hydrogen production may negatively impact short-term financial performance, its potential for long-term value creation, driven by decarbonization efforts and sustainability targets, makes it attractive to investors. Ultimately, this study provides valuable insights into how hydrogen engagement shapes corporate strategies within the evolving European energy landscape. Full article

Forest carbon sink (FCS) is essential for achieving carbon neutrality and supporting sustainable development in ecologically fragile, resource-based cities such as those on the Loess Plateau. Despite the success of national afforestation programs, economic valuations of FCS at the city level remain limited. This study develops an integrated framework combining carbon stock estimation, regional carbon pricing, and net present value (NPV)-based valuation. Using Shenmu City in Shaanxi Province as a case study, forest carbon stocks from 2010 to 2023 are estimated based on the 2006 IPCC Guidelines. Future stocks (2024–2060) are projected using the GM (1,1) model. A dynamic pricing mechanism with a government-guaranteed floor price is applied under three offset scenarios (5%, 10%, 15%). The results show that Shenmu’s forest carbon stock could reach 20.67 million tonnes of CO₂ by 2060, and under a 15% offset scenario, the peak NPV reaches CNY 4.02 billion. Higher offset ratios increase FCS value by 18–22%, reflecting the growing scarcity of carbon credits. The pricing model improves market stability and investor confidence. This study provides a replicable approach for carbon sink valuation in semi-arid areas and offers policy insights aligned with SDG 13 (Climate Action) and SDG 15 (Life on Land). Full article

Sentiment analysis is widely applied in the financial domain. However, financial documents, particularly those concerning the stock market, often contain complex and often ambiguous information, and their conclusions frequently deviate from actual market fluctuations. Thus, in comparison to sentiment polarity, financial analysts are primarily concerned with understanding the underlying rationale behind an article’s judgment. Therefore, providing an explainable foundation in a document classification model has become a critical focus in the financial sentiment analysis field. In this study, we propose a novel approach integrating financial domain knowledge within a hierarchical BERT-GRU model via a Query-Guided Dual Attention (QGDA) mechanism. Driven by domain-specific queries derived from securities knowledge, QGDA directs attention to text segments relevant to financial concepts, offering interpretable concept-level explanations for sentiment predictions and revealing the ’why’ behind a judgment. Crucially, this explainability is validated by designing diverse query categories. Utilizing attention weights to identify dominant query categories for each document, a case study demonstrates that predictions guided by these dominant categories exhibit statistically significant higher consistency with actual stock market fluctuations (p-value = 0.0368). This approach not only confirms the utility of the provided explanations but also identifies which conceptual drivers are more indicative of market movements. While prioritizing interpretability, the proposed model also achieves a 2.3% F1 score improvement over baselines, uniquely offering both competitive performance and structured, domain-specific explainability. This provides a valuable tool for analysts seeking deeper and more transparent insights into market-related texts. Full article

Although the transition to electric vehicles (EVs) is well underway and expected to continue in global car markets, most vehicles on the world’s roads will be powered by internal combustion engine vehicles (ICEVs) and fossil fuels for the foreseeable future, possibly well past 2050. Thus, good environmental performance and effective emission control of ICE vehicles will continue to be of paramount importance if the world is to achieve the stated air and climate pollution reduction goals. In this study, we review 228 publications and identify four main issues confronting these objectives: (1) cheating by vehicle manufacturers, (2) tampering by vehicle owners, (3) malfunctioning emission control systems, and (4) inadequate in-service emission programs. With progressively more stringent vehicle emission and fuel quality standards being implemented in all major markets, engine designs and emission control systems have become increasingly complex and sophisticated, creating opportunities for cheating and tampering. This is not a new phenomenon, with the first cases reported in the 1970s and continuing to happen today. Cheating appears not to be restricted to specific manufacturers or vehicle types. Suspicious real-world emissions behavior suggests that the use of defeat devices may be widespread. Defeat devices are primarily a concern with diesel vehicles, where emission control deactivation in real-world driving can lower manufacturing costs, improve fuel economy, reduce engine noise, improve vehicle performance, and extend refill intervals for diesel exhaust fluid, if present. Despite the financial penalties, undesired global attention, damage to brand reputation, a temporary drop in sales and stock value, and forced recalls, cheating may continue. Private vehicle owners resort to tampering to (1) improve performance and fuel efficiency; (2) avoid operating costs, including repairs; (3) increase the resale value of the vehicle (i.e., odometer tampering); or (4) simply to rebel against established norms. Tampering and cheating in the commercial freight sector also mean undercutting law-abiding operators, gaining unfair economic advantage, and posing excess harm to the environment and public health. At the individual vehicle level, the impacts of cheating, tampering, or malfunctioning emission control systems can be substantial. The removal or deactivation of emission control systems increases emissions—for instance, typically 70% (NO_x and EGR), a factor of 3 or more (NO_x and SCR), and a factor of 25–100 (PM and DPF). Our analysis shows significant uncertainty and (geographic) variability regarding the occurrence of cheating and tampering by vehicle owners. The available evidence suggests that fleet-wide impacts of cheating and tampering on emissions are undeniable, substantial, and cannot be ignored. The presence of a relatively small fraction of high-emitters, due to either cheating, tampering, or malfunctioning, causes excess pollution that must be tackled by environmental authorities around the world, in particular in emerging economies, where millions of used ICE vehicles from the US and EU end up. Modernized in-service emission programs designed to efficiently identify and fix large faults are needed to ensure that the benefits of modern vehicle technologies are not lost. Effective programs should address malfunctions, engine problems, incorrect repairs, a lack of servicing and maintenance, poorly retrofitted fuel and emission control systems, the use of improper or low-quality fuels and tampering. Periodic Test and Repair (PTR) is a common in-service program. We estimate that PTR generally reduces emissions by 11% (8–14%), 11% (7–15%), and 4% (−1–10%) for carbon monoxide (CO), hydrocarbons (HC), and oxides of nitrogen (NO_x), respectively. This is based on the grand mean effect and the associated 95% confidence interval. PTR effectiveness could be significantly higher, but we find that it critically depends on various design factors, including (1) comprehensive fleet coverage, (2) a suitable test procedure, (3) compliance and enforcement, (4) proper technician training, (5) quality control and quality assurance, (6) periodic program evaluation, and (7) minimization of waivers and exemptions. Now that both particulate matter (PM, i.e., DPF) and NO_x (i.e., SCR) emission controls are common in all modern new diesel vehicles, and commonly the focus of cheating and tampering, robust measurement approaches for assessing in-use emissions performance are urgently needed to modernize PTR programs. To increase (cost) effectiveness, a modern approach could include screening methods, such as remote sensing and plume chasing. We conclude this study with recommendations and suggestions for future improvements and research, listing a range of potential solutions for the issues identified in new and in-service vehicles. Full article

This study introduces a novel forecasting framework that identifies and predicts recurrently emerging structural patterns in stock trends using rising visibility graphs (RVGs) and the Weisfeiler–Lehman (WL) subtree kernel. The proposed method, RVGWL, addresses a key limitation of traditional visibility graphs, namely the structural indistinguishability between rising and falling trends, by selectively constructing edges only along upward price movements. This approach produces graph representations that capture direction-sensitive market dynamics and facilitate the extraction of meaningful topological features from price data. By applying the WL kernel, RVGWL quantifies structural similarities between graph-transformed time series, enabling the identification of structurally similar preceding patterns and the probabilistic forecasting of their subsequent trajectories based on nine canonical trend templates. Experiments on time series data from four major stock indices and their constituent stocks during the year 2023—characterized by diverse market regimes across the U.S., Japan, the U.K., and China—demonstrate that RVGWL consistently outperforms classical rule-based strategies. These results support the predictive value of recurring topological structures in financial time series and higight the potential of structure-aware forecasting methods in quantitative analysis. Full article

To facilitate the adoption of a food safety standard by producers, it is essential to understand their perception of it. However, few empirical studies have examined how livestock farmers perceive food safety standards in Vietnam. This research examines sheep farmers’ attitudes towards Vietnamese Good Agricultural Practices (VietGAP), a type of a food safety standard in Vietnam. A sample size of 109 farmers was selected for interviews and a structured questionnaire was generated to collect data. Descriptive and bivariate analyses were employed. The study results show that sheep farmers were well aware of most VietGAP requirements. They perceived that adopting VietGAP requires practical changes in sheep farming systems, including: selecting breeding stock from clear sources to ensure sheep product traceability, collecting and treating wastes daily to protect the environment, and frequent sterilization of sheep cages. The farmers were changing several practices to comply with VietGAP. Key changed practices identified included: bought breeding stock from clear and reliable sources, frequent collecting and treating of sheep wastes, and used veterinary medicine according to instructions of veterinary medicine producers. Statistically significant relationships existing between the sheep farmers’ perceptions and their education level (Pearson = 0.229, p = 0.017), farm size (Pearson = −0.193; p = 0.049), gender (Eta = 0.173, p = 0.060), practice of using labours (Eta = 0.202, p = 0.028), training participation (Eta = 0.211, p = 0.022), credit participation (Eta = 0.177, p = 0.050), community-based organisations (Eta = 0.153, p = 0.087), and veterinary/extension contacts (Eta = 0.217, p = 0.019) were found. This means that a male sheep farmer who had a higher education level, possessed a smaller farm, practiced hired labours, participated in training/credit programs, was a member of community-based organisation, and had contacts with veterinary/extension workers likely perceived VietGAP better than their counterparts. Based on the findings of this study, it is recommended that the promotion of VietGAP for livestock farmers should be developed and carried out as joint attempts along the value chain actors. New food marketing practices and legal framework and policy for using safe food certifications are required to address to promote farmers’ adoption of VietGAP and facilitate transition towards a sustainable agri-food system in Vietnam. This study provides significant insights into safety food standard adoption by livestock farmers and highlights aspects that require to be considered when developing policies to improve the adoption of safety food standards in developing countries. Full article

This study investigates whether and how the complexity of derivative use influences the stock price crash risk in China’s capital market, a critical question given the growing use of derivatives in emerging economies where governance structures and disclosure standards vary widely. While prior research has examined the binary effects of derivative usage, limited attention has been paid to the multidimensional complexity of such instruments and its informational consequences. Using a novel hand-collected dataset of annual reports from Chinese A-share-listed firms between 2010 and 2023, we develop and implement new indicators that capture both the economic complexity (diversity and scale) and accounting complexity (reporting dispersion and fair-value hierarchy) of derivative use. Our analysis shows that higher complexity is associated with a significantly lower likelihood of stock price crashes. This effect is especially pronounced in non-state-owned firms and those with weaker internal-control systems, suggesting that derivative complexity can enhance information transparency and serve as a substitute for other governance mechanisms. These findings challenge the conventional view that complexity necessarily increases opacity and highlight the importance of disclosure quality and institutional context in shaping the market consequences of financial innovation. Full article