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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Although the prices of cryptocurrencies remained volatile for the past decade, the factors that impact the price dynamics of the new type of investment instrument have not been fully identified yet. In this study, we recognize the dual nature of cryptocurrencies, that is, being a software program and a financial instrument, and examine the impact of software advancement on the price dynamics of cryptocurrencies. The open-source software (OSS) platform functionality enables social behaviors that we use as signals. Using data from the largest OSS platform, we establish the connection between open-source activities and the price movement of cryptocurrency. In particular, as project popularity (forks and watches) and users' feedback (issues) increase, the market price increases by 4.3 percent, 2.4 percent, and 4.4 percent per annum, respectively. On the contrary, the number of code corrections (pull requests) is negatively related to prices leading to a 5 percent annual price decrease. Our results suggest that OSS contributions create a perfect selection mechanism, where higher quality projects receive more developers' attention and user feedback, whereas lower quality projects do not, thus creating the separating equilibrium. [ABSTRACT FROM AUTHOR]

As a novel financial instrument, green bonds require further research to understand their causal effects and theoretical mechanisms on sustainable development fully. This paper constructs a theoretical model that characterizes the issuance of green bonds as the extent to which social planners prioritize environmental benefits in bond markets. In this model, we define sustainable development as the geometric mean of environmental factor inputs and final production output. By maximizing consumer utility, this model elucidates the direct and non-linear relationship between green bonds and sustainable development. The paper empirically investigates this proposition using data from 19 European countries between 2018 and 2022. The results indicate that: (1) Green bonds significantly promote sustainable development. This financial instrument, designed to raise funds for environmental projects, can indeed promote sustainable development through clean and green resource allocation. (2) The promotional effect of green bonds on sustainable development increases significantly with improvements in innovation efficiency, industrialization rates, and savings rates. This finding elaborates on the conditions under which the positive impact of green bonds on sustainable development is enhanced. (3) Green bonds only promote sustainable development when a country's factor endowment structure reaches a specific threshold. Beyond this threshold, as the factor endowment structure becomes very high, the country's sustainable development gains sufficient momentum, diminishing the role of green bonds. This finding suggests that the positive impact of green bonds on sustainable development is contingent upon certain properties reflecting the economic basis. [ABSTRACT FROM AUTHOR]

China faces serious health problem and health inequality, it needs to be noticed that knowing the distribution and shortage of health capital is necessary to provide targeted strategies for investing health. However, currently existed generic measuring instruments for health capital were developed in Western countries or decades ago, there lacks suitable measuring items that adapt to Chinese contemporary socio-culture and economy, as well as the characteristics of workforce. This study aims to develop one measuring instrument of health capital to adapt China's special social-culture and economic status, as well as the characteristics of workforce. We develop a set of multi-dimensional measuring scale of health capital and collect the qualitative data through semi-structured interviews conducted in-person or online platform, we get 200 valid samples through the first round of trial survey, and 1795 valid samples from the second round of formal survey. By using reliability and validity test and both exploratory and confirmatory factor analysis check, we get 21 items with four factor structures, named by physical, mental, social adaptation and moral health, to form the measuring instrument of health capital. Health capital index of workforce in China is 66.04, and the highest sub-index is moral health (85.43), followed by physical health (61.14), social adaptation (52.31) and mental health (33.20). Further analysis show that eastern China and the marginal areas in city agglomeration get better health capital index. The health capital index of Chinese workforce located in the range of "medium", and the sub-themes of mental health and social adaptation get a poor performance. These findings indicated that strengthening the mental health and social adaptation is the key way to decline the regional gap of health capital in the future. Target policy of providing healthcare facilities of mental health and continue skill training system is necessary to improve workforce' health capital. [ABSTRACT FROM AUTHOR]

Green finance plays a critical role in promoting regional green innovation. However, the precise influence of green finance on diverse facets of green innovation remains underexplored. This study empirically analyses the diverse effects of green finance on heterogeneous green innovation by applying the negative binomial model, the threshold model, andthe spatial error model using China's regional data from 2010 to 2019. The results indicate that green finance has a positive impact on regional green innovation performance, primarily through significant contributions to fossil energy carbon reduction, energy conservation and recovery, and clean energy technology innovation. The effect of green finance is also influenced by the level of local environmental supervision, exhibiting a significant threshold effect. In addition, the development of green innovation in the region can have a siphoning effect on the resources of surrounding areas, hindering their innovation development. These findings highlight the necessity for strategic government policy-making, which should leverage the diverse impacts of green finance on various forms of green innovation. Customizing green financial instruments to suit regional environmental regulatory conditions and the green innovation levels of neighboring regions could significantly aid in promoting regional green transformation and growth. [ABSTRACT FROM AUTHOR]

Corporations develop, own, operate, and direct a majority of all assets in the built environment (BE), and the development and operation of these assets is a significant component of global sustainability. In recent years corporate sustainability action for large companies has trended toward becoming embedded within corporate environmental, social, and governance (ESG) programs. However, ESG strategies and their impacts are only beginning to be understood by large corporations, with little definition for how to apply, measure, and assess the effectiveness of ESG practices. Every industry sector has some connection to the BE, and construction engineering, and management (CEM) professionals contribute to all phases of the BE life cycle, including development, design, construction, and operations. As such, CEM professionals are vital in developing and implementing sustainability practices specifically for corporations with large footprints in the BE. The purpose of this research was to assess the extent to which the BE is impacted by corporate sustainability practice through ESG programs. The research utilized a grounded theory approach to explore sustainability practices directly associated with the BE from companies within all 11 Global Industry Classification Standard (GICS) sectors. It presents a representative model that encapsulates current organizational ESG strategy, through the development of ESG action categories. A total of 24 different ESG action categories are presented and defined. The research further identifies those ESG actions commonly applied by large corporations and how these actions differ by GICS sector. This research indicates that over half of corporate ESG actions are related to the BE. Ultimately, this paper demonstrates the necessary role that CEM professionals should play in influencing sustainability practice through ESG strategy and action within the BE. Practical Applications: ESG is a rising topic in corporate sustainability and is becoming increasingly tied to financial instruments such as sustainable investment indexes or green bonds. The rise of ESG presents both a challenge and an opportunity for CEM professionals. Large entities are expected to publish ESG reports sharing their sustainability progress, including entities in which CEM professionals are key figures, such as power utilities. The advent of ESG reporting presents a challenge to CEM professionals because they need to learn to navigate ESG reporting or risk losing access to valuable funding opportunities when subject to ESG measurement and evaluation. It also presents an opportunity for CEM professionals because they are uniquely qualified to lead ESG efforts as BE experts. ESG and the BE are strongly related, with most ESG work being environmental in nature. CEM professionals have been actively involved in improving the sustainability of BE assets as they relate to the environment for many years. To leverage this experience, CEM professionals need to take an active part in recommending improvements to corporate ESG strategy. Corporations themselves must also actively seek to engage CEM professionals in their ESG decision making processes and advisory boards. [ABSTRACT FROM AUTHOR]

This work aims to address the optimal allocation instability problem of Markowitz's modern portfolio theory in high dimensionality. We propose a combined strategy that considers covariance matrix estimators from Random Matrix Theory (RMT) and the machine learning allocation methodology known as Nested Clustered Optimization (NCO). The latter methodology is modified and reformulated in terms of the spectral clustering algorithm and Minimum Spanning Tree (MST) to solve internal problems inherent in the original proposal. Markowitz's classical mean-variance allocation and the modified NCO machine learning approach are tested on the financial instruments that compose the S&P 500 index listed on the New York Stock Exchange (NYSE) from 2012 to 2021. The modified NCO algorithm achieves stable allocations by incorporating RMT covariance estimators. A particular combination of covariance estimators, known as two-step estimators involving a hierarchical clustering technique, achieves the best portfolio performance. Surprisingly, a common pattern suggests that the improvement in performance is agnostic to the allocation strategy and, in fact, relies heavily on the covariance estimator selection. Our results suggest that the amount of leverage can be drastically reduced in investment strategies through RMT inference and statistical learning techniques. [ABSTRACT FROM AUTHOR]

Our understanding of innovation policies has been enhanced. However, there is still a gap in conceptualizing the effectiveness of one of innovation policy's most important tools: financial incentives (FIs). Scholars developed an understanding of the effectiveness of direct versus indirect FIs, but there is no clear theoretical framework that delineates what kind of financial instruments impact what kind of innovation under what conditions. This paper analyzes the different working and operational logic of the wide array of employed FI worldwide to develop what is, to the best of our knowledge, the first conceptual framework discerning what financial tools fit what aims and contexts. This framework allows the development of testable hypotheses as well as the development of incentives tailored differently for different national innovation missions and market structures, suggesting that the growing reliance among OECD countries on indirect FIs in the form of tax incentives is less then optimal. [ABSTRACT FROM AUTHOR]

Climate‐change futures provide a platform for low‐carbon portfolios and energy market risk hedging. Climate changes induce uncertainty in energy‐commodity markets. We investigate the potential of diversifying and hedging energy‐commodity market risk with climate‐change futures, using dynamic conditional correlation (DCC)‐ordinary least squares (OLS) incorporating quantile‐dummies and cross‐quantilogram (CQ) approaches. DCC‐OLS models reveal that the World and USA climate‐change futures exhibit that they can be diversifiers for oil, ethanol, gasoil, and gasoline. These futures also exhibit hedging features for natural gas, coal, and heating oil. Euro climate‐change futures demonstrate hedging capabilities for all energy commodities except oil and gasoil. World, USA, and Euro climate‐change futures have the potential to serve as safe‐haven financial instruments in the face of the high volatility of Brent crude oil, gasoil, and heating oil. The CQ reveals that World, USA, and Euro climate‐change futures exhibit hedging and safe‐haven capacity against oil, natural gas, coal, gasoil, gasoline, and heating futures. Climate‐change futures may protect financial investments during extreme volatility in energy commodities. [ABSTRACT FROM AUTHOR]

To cope with severe climate change, traditional emission reduction and environmental protection measures must be supported by financial instruments. The paper investigates green financial options, measured by the green cryptocurrency (Solana) and carbon emissions allowances, under fractal Brownian motions with jump detection. To this purpose, after observing the dynamic price correlations between all the variables. We introduce a mixed fractional Brownian motion model for the two types of green financial assets with possible jumps driven by an independent Poisson process. Then, pricing European green crypto options and carbon options in a generalized mixed fractional Brownian Motion with jumps detection. This research aims to explore the strategy of European contingent claims written on the underlying asset of green financial assets. When the underlying asset prices follow the mixed fractional Brownian motion with jumps the valuation of European call and put green financial options can be discovered. The finding provides a meaningful and enlightening reference to avoiding green investment risk. More generally, it could be beneficial for responsible investment and risk management in green financial markets under green financial regulations to protect investors and public interests. [ABSTRACT FROM AUTHOR]

This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on the post-adoption impact of IFRS 9. We then discuss conceptual issues associated with the business model and cash flow characteristics assessment in IFRS 9, as well as issues associated with the presentation of fair value changes in other comprehensive income (OCI) and modifications to contractual cash flows. Finally, we identify gaps in the literature and provide suggestions for future research that can help inform accounting standard setters. [ABSTRACT FROM AUTHOR]

Green bonds have become a vital financial instrument to promote green development globally in the face of various environmental challenges. This paper investigates the impact of China's A-share listed companies' green bond issuance on ESG performance and the potential mechanisms from 2011–2021, using propensity score matching and double difference method (PSM-DID). The study finds that green bonds improve corporate ESG performance by enhancing environmental information disclosure, encouraging green innovation, and improving green reputation. Moreover, heavily polluting industries benefit more from green bond issuance in terms of ESG performance improvement. These findings contribute to understanding the benefits of green bond market in developing countries. [ABSTRACT FROM AUTHOR]

Global biodiversity is in decline, and businesses and society are being required to urgently create new operating models to ameliorate the crisis. Among the strategies proposed to do this, implementing the concept of nature positive has captured worldwide attention. Critical to its success will be effective collaboration between ecologists and businesspeople, driven by a shared understanding of key nature positive terminology, concepts, and risks. To this end, we introduce three core aspects: the ecological concepts in the definition of nature positive (health, abundance, diversity, and resilience), a typology of financial instruments that may be applied to achieving nature positive, and an overview of risks to biodiversity and society. The pivotal findings include that ecological complexity and uncertainty belie the simplicity of the definition of nature positive and that managing risk requires embedding aspirations into existing and emerging biodiversity conservation and restoration science and policy. Although it is challenging, nature positive deserves pursuit. [ABSTRACT FROM AUTHOR]

The paper explores the potential of CRM as a strategic element (along with performance, customer and bank perspectives, and demographic changes) for employee retention (using the Indian banking system as an example). The banking industry was chosen for this study because it is a service sector where transactions involving sensitive products (financial instruments) attract maximum attention from both employees and customers in the long run. To achieve this goal, the authors identified the main factors of customer relationship management that make it effective. The study investigated the relationship between CRM practices, the efficiency of banking operations, and the retention of bank employees. The analysis showed that bank employees have a much greater potential to influence the effectiveness of its activities than clients. Therefore, banks’ management should pay more attention to the recruitment of personnel, not only to the CRM system. The article specifically investigated the rationality of the relationship between CRM, bank branch efficiency, employee retention, and demographic variables. This allowed for several options for banks’ strategies in forming a stable staff of employees to be proposed. An important result of the study was the justification of the modification and addition of the ISM (Interpretive Structural Modelling) mechanism, which received a new name - RISM (Rational Interpretive Structural Modelling). Without violating the basic rules of ISM, the new mechanism allows to achieve better results, as it enables the development of a strategy for independent variables with a more accurate prediction of results. [ABSTRACT FROM AUTHOR]

Investment funds manage a portfolio composed of financial instruments; therefore, their accounting reports should undergo a careful process of preparation and auditing. The main purpose of this study is to analyze the effect of being audited by a Big Four audit company on funds' risk-adjusted performance. The database is composed of equity funds from the Brazilian financial market, with daily returns spanning from January 2005 to March 2023. The funds' performance was measured based on three indicators, including the Sharpe Ratio and Jensen's Alpha. Fama and MacBeth regressions were used to test the hypotheses. The main findings indicate that the benefits of audit quality also include a positive effect on the risk-adjusted performance of investment funds, as the coefficient of the variable "Big Four" was positive and significant based on the proxies for risk-adjusted performance. This study advances this area of research by demonstrating the effects of the type of audit on the risk-adjusted performance indicators of investment funds. [ABSTRACT FROM AUTHOR]

Life insurance serves as an important financial instrument, which effectively safeguards the family against adverse financial consequences resulting from an untimely demise of the primary breadwinner. This research paper delves into the factors that impact the purchasing intentions of life insurance among married working professionals. Employing Structural Equation Modelling (SEM), the study analyses the impact of saving motives and financial literacy on life insurance purchasing intentions. The findings suggest that saving motives and financial literacy have a positive and significant effect on the purchase intention of life insurance. Furthermore, the paper demonstrates that incorporating continuous manifest variables enhances the model fit and provides more accurate estimates of the relationships between variables. This provides valuable insights for life insurance providers, enabling them to gain a better understanding of the factors influencing consumers' purchase intentions. [ABSTRACT FROM AUTHOR]

Innovations in aligning investment with sustainability led to impact investing, enabling investors to achieve conventional financial returns and measurable social and environmental returns. Since its inception in 2007, it has grown manifolds, with significant efforts being made to create a global ecosystem. However, due to limited academic literature, the theme is yet to garner the scholarly interest it deserves. In this study, we analyse and visualise a knowledge map of the impact investment research field through a comprehensive bibliometric analysis by employing a research corpus of 421 studies sourced from Web of Science and Scopus. We identify the growth trajectory, geographical concentration, productive and influential authors, journals and significant articles and examine the inter‐disciplinarity of the field. The major research themes interlinked with impact investing included; social entrepreneurship, social innovation, social finance, impact investment market, innovative financial instruments, financialisation of essential services and impact reporting. To drive the field forward, future research needs to develop an impact investment ecosystem, address behavioural issues, stakeholder management and institutional context in impact investment theme, develop and diffuse innovative financial instruments, develop a framework for standardised accounting and reporting practices to measure financial and non‐financial dimensions, tackle impact washing by fund managers, address lack of financial access to the third sector and develop the legal and regulatory framework for third sector organisations. [ABSTRACT FROM AUTHOR]

The study aimed to address the farmers financing practices in Poland, France, Germany and Romania and to develop recommendations for reducing credit constraints in Ukrainian agriculture. Providing farms with financial resources is one of the most critical tasks for maintaining national resilience and stability in difficult times of military resistance. The study analysed statistical and economic indicators, the structure of farms and land use, financial instruments, features of financial institutions, practices and experience in lending in Poland, France, Germany, Romania and Ukraine. The impact of gross fixed capital formation on the volume of farm sales in comparable countries was addressed. The main reasons for the shortage of financing for medium, small, and micro-enterprises in the agro-industrial sector and numerous households that run private farms without establishing a legal entity were identified. The study noted that the main consequences of limited access to credit are low efficiency of land use, a decrease in gross domestic product and a deterioration in the viability of farms. The study analysed the impact of the state programme “Affordable Loans 5-7-9%” and other programmes to support medium, small and micro enterprises created with the help of international partners on the financial support of agricultural businesses. In recent years, these new financial instruments have significantly increased access to loans for farmers. The study addressed proposals of economic scientists of these countries on the elimination of credit restrictions in the activity of small agricultural producers. The analysis highlights the problems of farmers' lending that are common to all countries, as well as the many years of experience that have gradually resolved these issues. Recommendations on the implementation of the necessary measures for the timely receipt of affordable credit resources by small rural enterprises and family farms in Ukraine have been developed

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The study aims to monitor whether the implementation of investment projects in the 2014-2020 programming period is in line with the approved national strategic framework for economic integration of the regions in Bulgaria. The focus of the report is on financial instruments as an alternative form of financing. A method of deduction was used to describe the financial instruments. In order to investigate the effectiveness of the implementation of investments through them, an analysis of 10 selected municipal projects was made by tracking the progress of the financial resource absorption on a quarterly basis. From the official website of the Institute for Market Economics, data on the level of asymmetry of the different regions in terms of investments made and infrastructure are obtained. As a result of the study, it was found that despite the successful implementation of the Operational Programme "Regions in Growth" 2014-2020, the imbalance in the development of the different regions in Bulgaria remains significant. The lack of sufficient administrative capacity of municipalities and various procedural delays make municipal projects financed by the financial instrument unfeasible within the deadlines set for them. The findings of the study could be useful while new financial instruments in Bulgaria are implementing. The increased risk of non-compliance with municipal projects has be taken into consideration along with targeted action for the economic and social integration of Bulgaria's lagging regions

Rural development is often hindered by the lack of human and social capital. The LEADER program is one of the European Union's financial instruments destined to improve the rural areas governance by introducing a set of institutional changes including new local policies, practices and actors. These changes translate into the seven principles at the heart of the LEADER philosophy: partnership, integrated and multisectoral strategy, area-based approach, bottom-up approach, cooperation, networking and innovation. This article focuses on assessing the commitment of the Local Action Groups (LAGs) to the LEADER principles in a post-socialist country based on the perception of local actors. In this respect, we combined a quantitative (survey) with a qualitative approach (interview) for evaluating the degree of LEADER principles implementation. The study brings evidence on the specific principles which seem more difficult to integrate and provides a basis for future policy design. [ABSTRACT FROM AUTHOR]

This paper discusses time-varying causalities between climate policy uncertainty (CPU) and green finance market, and filling the research gap in revealing their internal dynamic connections. Using rolling-window technique, the empirical findings demonstrate that CPU exert positive and negative impact on green finance market, represented by the green bond index (GBI) during certain time intervals, which do not entirely support theoretical basis. Similarly, the study also uncovers inconsistent conclusions regarding the influence from GBI to CPU among different causal periods, indicating the function of green finance in alleviating climate change is complex. These deviations between variables can be attributed to factors, such as early-stage green bond market, shifts in climate policies, the impact of COVID-19, and underlying macroeconomic fundamentals. The study identifies heterogeneities of the causal relationships in different time intervals, and the bidirectional influence under specific circumstances, offering fresh insights for existing theoretical framework. Several policy implications are thus provided from multiple aspects, such as standardization of green bonds, innovation of green financial instruments, and development of long-term climate governance strategies. These measures can facilitate a positive role for climate policy and green finance in pursuing harmonious development. [ABSTRACT FROM AUTHOR]

Copyright of Economica: Revistă Ştiinţifico-Didactică is the property of Academy of Economic Studies of Moldova (AESM) / Academia de Studii Economice din Moldova (AESM) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of AL-MUZARA'AH - Journal of Islamic Economics & Finance is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Islamic banking and sukuk, in the context of modern economic development, serve not only as financial instruments but also as vehicles to propagate ethical values and justice in society. In responding to the demands of the times, Islamic banking and sukuk have evolved into key players shaping the direction of global financial and economic development. The aim of this research is to analyze the crucial role of Islamic banking and sukuk as alternative financing sources in development. This research method utilizes literature review and employs descriptive analysis. The results show that Islamic banking in Indonesia plays a crucial role in supporting development financing, providing alternatives for individuals and the government interested in engaging in economic activities in line with Sharia principles. The financing provided by Islamic banking includes various types, such as murabahah financing (sale and purchase with fixed profit), mudarabah (investment cooperation), and musyarakah (ownership cooperation). Sukuk, as a Sharia financing instrument, has become the primary choice of the Indonesian government to support development projects. By issuing sukuk, the government can access substantial funds from the financial market, both at the national and international levels. Sukuk in Indonesia is often used to finance largescale infrastructure projects such as toll roads, ports, and energy projects. [ABSTRACT FROM AUTHOR]

By writing this paper, we aim to follow the evolution of Romanian retail investors' access to trading financial instruments and cryptocurrencies through online platforms or specialized applications. We will follow the historical evolution of the participation of Romanian retail investors in trading on the capital market, the way in which access to trading is achieved, focusing in particular on the impact brought by the emergence of online platforms and mobile applications on the field. We will analyze the increase in the number of individuals using these specialized trading platforms, the cost of trading, but also the impact that this wave of new investors has generated on the prices of financial instruments and cryptocurrencies traded. We will also follow the reaction of the financial supervisory authorities in relation to the phenomenon, on a wider European and American level. Last but not least, we will also analyze the recent reaction of the Romanian legislator to this new reality as well as the simplification attempts from the point of view of the declaration of taxable income resulting from the trading of financial instruments, indicating the financial advantages and disadvantages generated by the current legislation for the Romanian investor, natural person. [ABSTRACT FROM AUTHOR]

Copyright of Invest Journal of Sharia & Economic Law is the property of Invest Journal of Sharia & Economic Law and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Classic inventory theory suggests that inventory plays a vital role in matching demand and supply. This paper provides both country- and firm-level evidence that inventory can be used as a financial instrument to take advantage of arbitrage opportunities in financial markets with limited capital mobility. Using data from China customs' metal imports and firm-level inventory from metal processing industries, we show that firms can utilize the inventory of an imported product to carry lower cost capital into a country with strict capital controls and, thus, gain higher financial returns. Specifically, at the country level, we find that the level of imported metal commodities is positively associated with the expected returns from financial arbitrage. At the firm level, we find that a higher expected return from financial arbitrage will incentivize a firm to increase its inventory level through short-term borrowing. In addition, our evidence supports the notion that firms with higher liquidation value, larger size, and higher sales growth (i.e., firms with higher borrowing capacity) may be more active in using inventory as an instrument to seek higher financial gains. We also utilize a unique regulatory policy shock as a quasi-natural experiment to enhance the causality interpretation of our empirical findings. This paper was accepted by Vishal Gaur, operations management. Funding: This work was supported in part by the National Natural Science Foundation of China [Grant 72201230] and the Research Grants Council of Hong Kong, University Grants Committee [Grant 14504621]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4873. [ABSTRACT FROM AUTHOR]

This article refines the analysis of interest-bearing capital and debt in Marx's circuit of capital, incorporating Kōzō Uno's critique for a more precise depiction. It reassesses Marx's model of interest-bearing capital () and Uno's distinction between creditor and debtor roles, proposing an advanced model that highlights the role of financial instruments () and debt (). The form of money-lending capital for the creditor is articulated as , where represents the issuance of a loan and the collection of debt. On the other hand, the form of merchant capital with debt for the debtor is depicted as , incorporating both the borrowing () and repayment () processes within the form of merchant capital. This approach not only clarifies the transactions between creditors and debtors but also builds upon Uno's theoretical contributions, offering a comprehensive framework for understanding the dynamics of interest-bearing capital and the movement of capital with debt. The revision aims to elucidate the processes of loan issuance, debt collection, borrowing, and repayment, rectifying previous conceptual oversights and offering a solid foundation for future economic research. [ABSTRACT FROM AUTHOR]

The S&P 500 Index is considered the most popular trading instrument in financial markets. With the rise of cryptocurrencies over the past few years, Bitcoin has grown in popularity and adoption. This study analyzes the daily return distribution of Bitcoin and the S&P 500 Index and assesses their tail probabilities using two financial risk measures. As a methodology, we use Bitcoin and S&P 500 Index daily return data to fit the seven-parameter General Tempered Stable (GTS) distribution using the advanced fast fractional Fourier transform (FRFT) scheme developed by combining the fast fractional Fourier transform algorithm and the 12-point composite Newton–Cotes rule. The findings show that peakedness is the main characteristic of the S&P 500 Index return distribution, whereas heavy-tailedness is the main characteristic of Bitcoin return distribution. The GTS distribution shows that 80.05 % of S&P 500 returns are within − 1.06 % and 1.23 % against only 40.32 % of Bitcoin returns. At a risk level (α), the severity of the loss ( A V a R α (X) ) on the left side of the distribution is larger than the severity of the profit ( A V a R 1 − α (X) ) on the right side of the distribution. Compared to the S&P 500 Index, Bitcoin has 39.73 % more prevalence to produce high daily returns (more than 1.23 % or less than − 1.06 % ). The severity analysis shows that, at α risk level, the average value-at-risk ( A V a R (X) ) of Bitcoin returns at one significant figure is four times larger than that of the S&P 500 Index returns at the same risk. [ABSTRACT FROM AUTHOR]

We study the diffusion process for a controversial practice that involves multiple constituents with diverse motivations. In doing so, we uncover how conflicting judgments shape the diffusion process of a controversial practice. Using an inductive study that employs archival and interview data covering over 20 years, we examine the evolution of third-party ownership (TPO) in the global industry of football—a practice that transformed the ownership of football players from belonging to football clubs to being shared among investors like "pizza slices." We follow the TPO from its origins as an enabler for unfavored actors to join the industry to its enactment as an illegitimate financial instrument for exploitative profits. Our research unpacks the distinct mechanisms used to promote adoption and abandonment of an increasingly controversial practice; describes the mismatch between moral and economic arguments, and the tension that derailed the diffusion process; and identifies how the effectiveness of recalibration efforts depends on how much of practice's value relies on its opacity. Our study advances existing knowledge on the diffusion process of controversial practices in multi-constituent contexts, where the diversity of actors' interests and judgments makes it complex to predict the outcome. [ABSTRACT FROM AUTHOR]

The Seychelles blue bond is an innovative finance mechanism that has played a pivotal role in shaping the global landscape of blue bonds. Seychelles leadership in the blue economy sets a significant precedent. However, this precedent has also raised concerns among various stakeholders. This study evaluates of Seychelles' sovereign blue bond, which was co-developed by the government of Seychelles and the World Bank. Three themes are explored, how the blue bond relates to other actors and donors in the blue economy space of Seychelles; how the blue bond contributes to advancing the national agenda and blue economy of Seychelles; and the key strengths, enablers and weaknesses of the blue bond. A series of considerations for future blue financing and blue bond mechanisms are presented, based on the findings of this study, to ensure that financing extends beyond blue washing and contributes meaningfully to the holistic transition to a sustainable blue economy. Our findings imply significant considerations for stakeholders in sustainable finance, suggesting ways to enhance the efficacy of blue bonds and emphasising the need for further research on their long-term impact and integration with other financial instruments. [ABSTRACT FROM AUTHOR]

Since cryptocurrencies are among the most extensively traded financial instruments globally, predicting their price has become a crucial topic for investors. Our dataset, which includes fluctuations in Bitcoin's hourly prices from 15 May 2018 to 19 January 2024, was gathered from Crypto Data Download. It is made up of over 50,000 hourly data points that provide a detailed view of the price behavior of Bitcoin over a five-year period. In this study, we used potent algorithms, including gradient descent, attention mechanisms, long short-term memory (LSTM), and artificial neural networks (ANNs). Furthermore, to estimate the price of Bitcoin, we first merged two deep learning algorithms, LSTM and attention mechanisms, and then combined LSTM-Attention with gradient-specific optimization to increase our model's performance. Then we integrated ANN-LSTM and included gradient-specific optimization for the same reason. Our results show that the hybrid model with gradient-specific optimization can be used to anticipate Bitcoin values with better accuracy. Indeed, the hybrid model combines the best features of both approaches, and gradient-specific optimization improves predictive performance through frequent analysis of pricing data changes. [ABSTRACT FROM AUTHOR]

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This scholarly investigation scrutinizes the involvement of the private sector in environmentally sustainable projects, employing the cross-sectional autoregressive distributed lag methodology on yearly data spanning from 2000 to 2020 across 11 low and lower-middle-income Asian nations. It specifically assesses the influence of the good governance index. Findings indicate a notable correlation, where a 1% enhancement in the index corresponds to a 0.34% increase in private engagement in green projects in the short term and a 0.64% increase in the long term. The study underscores the significance of economic stability; a 1% escalation in uncertainty leads to a 0.56% short term and 0.73% long-term reduction in private participation. It underscores the driving role of gross domestic product growth and the proliferation of small and medium-sized enterprises, emphasizing the necessity for tailored financial instruments to stimulate private investment in green projects. Moreover, it explores practical policy avenues such as e-government services, information and communication technology-driven digital transformation, sustainable corporate governance, and issuance of state-backed green bonds to foster private-sector participation in eco-friendly initiatives. Future research avenues encompass examining the repercussions of the pandemic on private green investments and evaluating the efficacy of the public-private partnership model in green projects across these economies. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine some American-style financial instruments that lead to two-sided optimal hitting problems. We pay particular attention to derivatives that are similar to strangle options but have a quadratic payoff function. We consider these derivatives in light of much more general payoff structures under certain conditions which guarantee that the optimal strategy is an exit from a strip. Closed-form formulas for the optimal boundaries and the fair price are derived when the contract has no maturity constraints. We obtain the form of the optimal boundaries under the finite maturity horizon and approximate them by maximizing the financial utility of the derivative holder. The Crank–Nicolson finite difference method is applied to the pricing problem. The importance of these novel financial instruments is supported by several features that are very useful for financial practice. They combine the characteristics of the power options and the ordinary American straddles. Quadratic strangles are suitable for investors who need to hedge strongly, far from the strike positions. In contrast, the near-the-money positions offer a relatively lower payoff than the ordinary straddles. Note that the usual options pay exactly the overprice; no more, no less. In addition, the quadratic strangles allow investors to hedge the positions below and above the strike together. This is very useful in periods of high volatility when large market movements are expected but their direction is unknown. [ABSTRACT FROM AUTHOR]

The state has been pivotal in both facilitating financialization and dealing with its consequences, through which the state itself has also been reshaped. This paper proposes a "state selective financialization" framework to highlight the intentionality and selectivity of the state in (de)financialization. Based on practices in China, we examine the latest state efforts to reconfigure the land reserve system in order to cope with local financial risks associated with land-backed borrowing. The state de-leverages reserved land locally and uses it to secure bonds through a state-managed top-down process. The changing mechanism demonstrates the central state's intentional role in selecting financial instruments and recentralizing its control over land financialization, whereby it has tried to mitigate financial risks and oversee local development. Instead of financialization versus de-financialization, we find financialization in China is a selective governance tactic to address state concerns. Moreover, rather than seeing financialization as a process outside the state, this research emphasizes that selective financialization is an internal process to reconsolidate the power of the central state and rebuild alignment among multi-scalar state actors. [ABSTRACT FROM AUTHOR]

Bond is one of the most attractive financial instruments for both investors in the capital market and companies seeking funds for benefit. Investing in bonds often yields fixed income through coupons and also exposes investors to investment risk, such as credit risk. This credit risk encompasses the potential loss arising from a failure to meet credit payment obligations upon maturity, leading to a declaration of default. To proactively address this issue, there is a need to calculate the default probability of a company in order to gain insights into the entire default potential. Previous studies had predominantly employed bond models that assumed ln returns on assets follow a normal distribution. However, realworld ln returns on traded assets exhibited characteristics including excess kurtosis and heavy tails, which diverged from the assumptions of a normal distribution. The models developed on this assumption did not accurately reflect the nature of the data. In order to bridge this gap, this study aimed to introduce a novel approach for gauging default probability through the use of the Variance Gamma model. The chi-square test is used to determine goodness of fit. The Variance Gamma parameter estimation used Maximum Likelihood Estimation (MLE), with the initial value being the outcome of parameter estimation through the moment method. This approach assessed default probability in the context of both one-period and two-period coupon value payments. [ABSTRACT FROM AUTHOR]

The article examines the different meanings of contingent interest or contingent payments in cross-border lending transactions and the consequences of each provision, with a focus on the tax consequences for foreign holders of debt instruments issued by U.S. debtors. Topics include the application of tax rules dealing with Contingent Payment Debt Instruments (CPDI), the provisions governing convertible debt with contingent interest under the CPDI rules and the general portfolio interest rules.

The creation of Next Generation EU in response to the COVID-19 pandemic was a significant milestone in the European integration project. NGEU is an innovative financial instrument with the ambitious tasks to boost economic recovery and to finance long-term investments, thus raising the question if it can be viewed as a common fiscal capacity. The aim of the present article is to analyse in detail the structure of NGEU expenditure from the perspective of the public sector's three main functions (allocation, redistribution and stabilisation) and to draw conclusions about whether this instrument increases the EU's capacity to perform them. After a concise literature review of the main arguments in favour of a supranational fiscal capacity, the article examines in detail the expenditure side of NGEU's main component, the Recovery and Resilience Facility. It is concluded in the article that NGEU increases the EU's capacity to perform the redistribution function and to some extent the allocation function. However, it cannot be viewed as a macroeconomic stabilisation mechanism. The article discusses several challenges arising from the establishment of the fund. [ABSTRACT FROM AUTHOR]