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The risk associated with the dramatic volatility of oil prices has become an important factor affecting the stability of the financial system. Through a complex network viewpoint, this study uses firm-level data to investigate systemic financial risk contagion from the oil market to the financial markets. Our study considers the risk amplification effect in financial network and provides an in-depth empirical analysis of risk contagion among financial institutions under the oil market risk shock. According to the findings of this paper, systemic financial risk increases dramatically during oil crisis events. This paper also captures important characteristics of the network, including major risk receivers and risk transmitters, and finds that banks suffer more risk losses from the oil market. Furthermore, considering the important role of the financial system in the macro economy, the systemic financial risk caused by oil market risk has long-term negative effects on economic output. • This study examines the risk contagion from oil market to financial markets from complex network perspective. • This paper suggests that systemic financial risk rises significantly during oil crisis events. • This paper finds that banks suffer more risk losses from the oil market risk. • Systemic financial risk caused by oil market risk has long-term negative effects on economic output. [ABSTRACT FROM AUTHOR]

Highlights • We propose some improved sparse and stable portfolio models by combining the shrinkage method and objective function L1 regularization method. • We investigate the combination of the constant correlation and objective function L1 regularization method. • Empirical studies show the proposed strategies offer lower levels of variances and higher risk-adjusted returns. Abstract Parameter uncertainty and estimation errors often cause the presence of unstable asset weights and the poor performance of portfolio model. In addition, in the real world, most investors prefer to choose a small number of stocks to invest. In this paper, we propose some improved sparse and stable portfolio models by combining the shrinkage method and objective function L 1 regularization method. An 'optimal' shrinkage constant is obtained by minimizes the expected distance between the shrinkage estimator and the true covariance matrix. Moreover, we investigate the combination of the constant correlation and objective function L 1 regularization method. Empirical studies show that the proposed strategies have better out-of-sample performance than many other strategies for tested datasets. [ABSTRACT FROM AUTHOR]

• Investigating the factor impacting stock price crash risk from the standpoint of the spillover effect. • The stock price crash risk of interlocked firms significantly decreases after the frauds of fraudulent firms are reported. • The interlocked firms with a high level of information asymmetry and industrywide competition are more sensitive to frauds. • Sitting on more than three boards does not prevent or facilitate interlocked directors from learning from fraud. This paper examines the spillover effect of corporate frauds on interlocked firms that share at least one director with the fraudulent firms. We document a reduction of stock price crash risk of interlocked firms following the frauds. Our findings imply that the spillover effect is mainly motivated by the experiences that interlocked directors learned during frauds. Furthermore, we show that frauds have a stronger effect on the stock price crash risk when interlocked firms are exposed to higher levels of information asymmetry and industry-level competition. We find no evidence that the busyness of the interlocked directors affects the spillover effect. [ABSTRACT FROM AUTHOR]

Promoting the coupled development of water, energy, and food (WEF) subsystems is a critical step to enhance synergies and increase efficiencies in the WEF nexus. However, the evolution and obstacles of coupled development are largely ignored. This study developed a framework dividing links in the nexus to select indicators and integrated models for the degree of coordination and obstacle diagnosis to explore the coupled development of the WEF nexus from 2000 to 2020 in the water-scarce megacities of Beijing and Tianjin. The results show that the average coordination degree of the WEF nexus in Beijing (0.315) and Tianjin (0.317) is at a low level, indicating a limited interaction between the WEF subsystems, while the coordinated development degree of the WEF nexus is increasing. The order degree of the WEF subsystems shows a two-level hierarchical structure, indicating that both similarities and differences are included in place-specific characteristics. Furthermore, obstacle factors are identified from water and energy subsystems, in which environmental water use (W3) and the energy consumption per gross domestic production unit (E4) played the most significant roles and require a higher priority in policy response. The results in this paper complement obstacle factor analysis in WEF nexus practice, and provide operational indicators for nexus governance. [Display omitted] • Linkages are divided into one-, two-, and three-resource scales. • The number of related official documents is used to define the weight of subsystems. • The water subsystem dominated the coupled development of the water-energy-food nexus. • The order degree of subsystems show a two-level hierarchical structure. • Key obstacle factors are identified from water and energy subsystems. [ABSTRACT FROM AUTHOR]

This paper comprehensively examines the existence and significance of a contemporaneous/intertemporal risk-return trade-off for crude oil futures using high-frequency transaction data. The results reveal that the contemporaneous relation between risk (volatility risk, downside risk or jump risk) and return in the crude oil futures market is negative and statistically significant and that the contemporaneous negative relation between downside risk and return is stronger than the two others. However, the intertemporal volatility/jump risk-return relationship is insignificant, and there is weak negative correlation between downside risk and expected return in the crude oil futures market. These findings can be explained by the asymmetric effect of risk on returns. The findings are robust across different samples and different measures of volatility, downside and jump risks. Thus, there is no risk-return trade-off in the crude oil futures market. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of geopolitical risks on investor attention and speculation in the oil market using the causality tests and the time-varying parameter vector autoregression model. In particular, we consider two types of geopolitical risks: acts and threats. The empirical results based on the sample from 2004 to 2021 show that geopolitical acts and threats linearly and nonlinearly cause investor attention. They can also affect speculation through the causality from investor attention to speculation. Based on the time-varying parameter vector autoregression model, we further find that geopolitical acts and threats present positively time-varying effects on investor attention. Speculation responses to geopolitical acts and threats are heterogeneous over time. Moreover, the impact of investor attention on speculation is time-varying but positive, indicating that geopolitical risks can increase speculation through investor attention. Our findings are important to policymakers and investors, as they reveal potential associations of geopolitical risks with investor attention and speculation. • Nonlinear and time-varying impact of geopolitical risks on oil market is assessed. • Oil market variables mainly include investor attention and speculation. • Two types of geopolitical risks including GPAI and GPTI is used. • GPAI and GPTI linearly or nonlinearly cause investor attention and speculation. • Impacts of GPAI and GPTI on investor attention and speculation are time-varying. [ABSTRACT FROM AUTHOR]

We comprehensively examine the contemporaneous/intertemporal risk-return relationship in the crude oil futures market. Our empirical results, based on high-frequency transaction data, suggest the contemporaneous relation between risk (volatility risk, downside risk or jump risk) and return in the crude oil futures market is negative and statistically significant, and the contemporaneous negative relation between downside risk and return is stronger than two others. However, the intertemporal volatility/jump risk-return relationship is insignificant, and there is weak negative correlation between downside risk and excepted return in the crude oil futures market. [ABSTRACT FROM AUTHOR]

• This paper constructs a carbon market attention index to measure investors' attention to the EU CET market. • Explores the heterogeneity of carbon market attention effect on the EUA returns under different market conditions. • Test whether there is a lag effect between carbon market attention and the EUA returns. • There is a reversal effect between carbon market attention and the EUA returns. Mainly occurs during bullish market conditions. This paper investigates the relationship between carbon market attention (CMA) and the European Union's carbon emission allowance (EUA) returns under different market conditions. Further, explore whether there is a lag effect between CMA and the EUA returns. The result shows that CMA has a negative effect on the EUA returns. Meanwhile, the influence strength shows a gradually increasing trend, mainly under bullish market conditions. Moreover, we find a lag effect of reversal relationship between CMA and the EUA returns. This effect occurs mainly under bullish market conditions and shows a trend of first increasing and then decreasing. [ABSTRACT FROM AUTHOR]

Global energy systems must be restructured to accommodate low-carbon energy sources and technologies to improve the socio-economic welfare of the state and reduce energy impacts on the environment. While nuclear energy has long been controversial, especially among environmentalists, numerous advocates now argue that it should be considered a clean energy source to boost human welfare, achieve energy security, and combat climate change. This research intends to study the properties of nuclear energy, public debt, trade globalization, and their impacts on human development in a heterogeneous panel of sixteen OECD nations for the dataset from 1990 to 2019 using the novel cross-sectional augmented autoregressive distributed lag model and Dumitrescu and Hurlin panel causality test. The empirical results suggest that nuclear energy and trade globalization boost human development, while higher public debt lowers human development in the long and short run. The findings recommend that the development and expansion of nuclear energy consumption and trade liberalization are crucial for enhancing the social welfare of OECD nations, which must also lower their public debt levels to achieve inclusive and sustainable growth. [Display omitted] [ABSTRACT FROM AUTHOR]

• Investigating both short- and long-run quantile effects of commodity and EMVID indices on the stock market by the QARDL modeling. • This paper pre-dominantly compares the magnitude of the effect in China and the USA. • The performance of the US commodity negatively affects the stock across almost all quantiles. • The EMVID index is positively correlated with the stock market for both countries during the pandemic. We investigate short and long-run effects of commodities and the EMVID indices in stocks. It pre-dominantly compares the magnitude of the effect in China and the USA and analyzes the differences utilizing the QARDL method. It becomes evident that the impacts of the EMVID and commodity indexes vary depending on the stock market developments. The short-run results reveal that the US stocks are negatively affected by the extreme quantiles, while almost all quantiles are negatively affected by commodity shocks in the long-run before pandemic. During the COVID-19 outbreak, the EMVID index is positively correlated with the stocks for both countries. [ABSTRACT FROM AUTHOR]

• The impact of oil price shocks on the risk-return relation in the Chinese stock market is examined. • The decomposition method newly developed by Ready (2018) is used. • Oil demand shock and oil risk shock can Granger cause risk-return relation. • Oil demand and risk shocks positively and negatively affect risk-return relation, respectively. • Significant effects are mainly found after oil financialization. This article contributes to the literature on the oil-stock nexus by examining the impact of the supply, demand, and risk shocks of oil prices on the risk-return relation in the Chinese stock market. We find that oil demand shock and oil risk shock rather than oil supply shock can Granger cause the stock risk-return relation. Further analysis based on regression models shows that oil demand shock and oil risk shock positively and negatively affect the stock risk-return relation, respectively. Especially, these significant effects are mainly presented in the post-financialization period of the oil market. [ABSTRACT FROM AUTHOR]

• Relationship between ECX EUA carbon futures prices and the S&P green bonds index. • Use the MODWT method to form short-, medium-, and long-term perspectives. • Carbon price Granger causes green bonds revealed from the quantile Granger test. • The asymmetric influence of the carbon price revealed by the QQ regression. • The carbon price mostly positively affects green bonds. The 26th edition of the United Nations climate change conference (COP26) underlines the importance of financial products and markets related to "carbon" (e.g., carbon and green bond markets). We, to our knowledge, are the first to construct a framework based on multiple time scales and market conditions to quantify the interrelationship between the carbon futures and green bond markets. Specifically, we estimate it from short-, medium-, and long-term perspectives and different market conditions by combining the maximum overlap discrete wavelet transform (MODWT) and two quantile methods to decompose the sequences into various frequencies and quantiles. We find that the carbon futures price unilaterally Granger causes the green bond index and empirically analyzes the asymmetric impact of the carbon futures with a two-dimensional quantile model constructed by the quantile-on-quantile (QQ) regression approach. We find positive effects of the carbon futures in the medium to long term and erratic performance in the short term. The effects are more pronounced when both markets are in an extreme state. Our findings enrich the research related to eco-economy and carbon finance, providing a more comprehensive and detailed research framework, and helping others optimize investment portfolios and policy arrangements. [ABSTRACT FROM AUTHOR]

• Place the stock, commodity, and carbon markets under a unified framework to analyze volatility risk. • Evaluate the effects of extreme event shocks on the stock, commodity, and carbon markets. • Explore the impact, speed, and magnitude of the market volatility interactions among the markets in China. This study adopts the time-varying parameter vector autoregression approach to examine dynamic volatility interactions of the stock, commodity, and carbon markets in China, with specific focus on the effects of extreme event shocks on market interactions. According to the results, a bidirectional Granger causality is observed between the stock and commodity market volatility, whereas these markets unidirectionally Granger cause the carbon market. Furthermore, the impacts of the carbon market on the stock and commodity markets substantially fluctuate, whereas interactions of the stock and commodity markets are relatively smooth. In particular, sudden extreme events have significant effects on market volatility interactions. [ABSTRACT FROM AUTHOR]