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This study examines whether CFO gender is associated with corporate cash holdings in the context of China, one of the largest emerging market countries. We find that firms with female CFOs have more cash holdings than those with male CFOs. Next, we find that the positive relationship between female CFOs and cash holdings is less pronounced in firms with high financial leverage than those with low financial leverage. We further find that the negative moderating effect of financial leverage on the relationship between female CFOs and cash holdings is stronger for firms with a lower presence of female board members. Our main result is robust to an alternative measure of cash holdings and endogeneity concerns. This study provides meaningful implications for developing and emerging market countries by elucidating the relationship between female CFOs and cash holdings. The empirical evidence can also help shareholders and bondholders better understand the female CFO—cash holdings nexus in light of financial leverage and the presence of female board members. Highlights: We examine whether CFO gender is associated with corporate cash holdings in the context of China. We find that firms with female CFOs have more cash holdings than those with male CFOs. We find that the positive relation between female CFOs and cash holdings is less pronounced for firms with high financial leverage than those with low financial leverage. We further find that the negative moderating effect of financial leverage on the relation between female CFOs and cash holdings is stronger for firms with a lower presence of female board members. Our study provides meaningful implications for developing and emerging market countries by shedding light on the relation between female CFOs and cash holdings. Our empirical evidence can also help shareholders and bondholders better understand the female CFOs-cash holdings nexus in light of financial leverage and the presence of female board members. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the impact of financial inclusion and bank stability on agricultural productivity in Sub-Saharan Africa (SSA). Design/methodology/approach: The study used 38 countries in the SSA with data spanning between 2004 and 2021. The data were analyzed using the two-step system generalized method of moments (GMM) and the panel-corrected standard error (PCSE) model. Findings: The study found a positive effect of financial inclusion and bank stability on agricultural productivity. The study also discovered that while the access component of financial inclusion has a negative influence on agricultural productivity, the usage dimension has a positive impact. Research limitations/implications: The study suggests to policymakers that an inclusive and stable financial system improves agricultural productivity. The findings recommend that policymakers should empower farmers to leverage financial inclusion. Originality/value: This study provides insightful discussion on the impact of financial inclusion and its various dimensions and bank stability on agricultural productivity in SSA. [ABSTRACT FROM AUTHOR]

The purpose of this research is to use the meta-analysis approach to analyze and combine the conflicting and inconsistent results obtained in past researches in the field of investigating the effects of the characteristics of companies on the audit report lag. Company characteristics include company size, company profitability, company age, Company loss and company leverage. In the research conducted in the past years, the audit report lag is known as the dependent variable and the specific characteristics of the companies as the independent variable. To achieve the research objectives from the approach [28] and also, to apply Cochran-Egger's Q tests, Including 77 studies including 27 domestic studies during the years 2013 to 2022 and 50 foreign studies during the years 2010 to 2023 were reviewed. The results indicate that there is no significant relationship between the size of the company and the independent audit report lag, But there is a negative relationship between profitability, age and the independent audit report lag, Also, there is a positive relationship between the leverage and the loss of the company with the audit report lag. [ABSTRACT FROM AUTHOR]

Purpose: The relationship between leverage and firm performance has been a subject of great interest to researchers, but the empirical findings are, at best, mixed. Against this background, we attempt to investigate this controversial issue by hypothesizing the nonlinearity of this relationship. Specifically, we aim to determine whether there exists an optimal threshold of firm size above which increasing levels of debt stop undermining (or start enhancing) firm performance. Design/methodology/approach: Our study uses a nonlinear modeling specification, that is, the Panel Smooth Transition Regression (PSTR) model proposed by González et al. (2005). This model is a fixed-effects panel that accounts for cross-country heterogeneity and time variability, while also allowing for smooth transitions between a limited number of "extreme regimes." Findings: The study reveals a statistically significant negative relationship between leverage and firm performance for firms below size thresholds. But after exceeding these thresholds, firms can experience a substantial increase in accounting and financial performance. Originality/value: The authors offer novel insights into the contingent role played by firm size on the capital structure–performance nexus. To our knowledge, few studies have delved into the threshold effects of leverage on firm performance. The threshold firm size level can be considered, therefore, as a benchmark for firms in optimizing their capital structure. From this perspective, small-sized firms are invited to prioritize internal financing to avoid the detrimental impact of depts on their performance. However, large-sized firms may find it advantageous to leverage external financing through debt in order to potentially enhance their performance. [ABSTRACT FROM AUTHOR]

This research mainly explored the effects of mergers and acquisitions (M&As) on the financial performance of Chinese listed companies and the determinants of post-M&A financial performance of mergers by incorporating adjustments for business cycle fluctuations. The research was divided into two parts. The first part applied data envelopment analysis (DEA) models for the calculation of the financial performance scores of mergers and non-mergers in six major sectors before and after M&As. Comparative analyses of financial performance trends between mergers and non-mergers in similar sectors revealed that M&As often decrease financial performance scores of mergers compared with non-mergers. The second part adopted regression analyses and robustness test to evaluate the effects of listing duration, financial leverage level, free cash flow and target type on post-M&A financial performance. The results showed that mergers' sufficient listing duration, high financial leverages, adequate free cash flow and asset as target had significant positive impact on the post-M&A performance of mergers. Opposite to the free cash flow hypothesis, this study revealed that free cash flow is beneficial for mergers in China. These findings emphasized that lack of experience and managerial hubris are the primary factors contributing to the underperformance observed within the Chinese M&A market. [ABSTRACT FROM AUTHOR]

With the growth of the new energy sector, China's energy industry is experiencing significant transformations. This research aims to evaluate the technological progress and changes in scale efficiency of listed companies in China's energy industry, with a particular focus on the comparison between new and traditional energy sectors. This research investigates various efficiency values, types of returns to scale, the role of patents in fostering technological progress, and the influence of financial leverage on scale efficiency changes, a comprehensive evaluation of the industry that offers a critical foundation for formulating targeted strategies. This research uses data from A-share listed energy companies spanning from 2017 to 2023, constructs input–output indicators centered on research and development (R&D) and profitability, and applies the DEA model to examine the operating efficiency of energy listed companies. A Malmquist indices is developed to analyze the dynamic evolution of technological change and scale efficiency change. In contrast to the conventional approach of using DEA efficiency scores as the dependent variable in Tobit regressions, this research uses the Malmquist indices, which more effectively captures the dynamic evolution of technological progress and scale efficiency. The study empirically assesses the impact of patent accumulation on technological progress through a Tobit panel model with random effects and the effect of financial leverage on scale efficiency changes using a Tobit four-stage incremental regression. Finally, the study draws the following conclusions: 1. In terms of industry static correlation, listed new energy companies exhibit polarization in returns to scale types; in contrast, traditional energy listed companies have a more stable and mature returns to scale structure. 2. In terms of dynamic correlation, technological progress in the new energy sector is substantial, while the traditional energy sector faces bottlenecks; efficiency changes in both industries are dependent on scale efficiency changes, rather than pure efficiency changes. 3. Regarding influencing factors for new energy listed companies, patent accumulation has a limited impact on technological progress, while financial leverage and scale efficiency change exhibit a non-linear relationship, with an inflection point effect observed in companies with high financial leverage. Finally, this study offers targeted policy recommendations for new energy and traditional energy listed companies based on the findings. [ABSTRACT FROM AUTHOR]

Artificial intelligence (AI)-based applications contribute to monitoring financial transactions and detect fraudulent activity in real-time by analyzing transaction patterns, consumer behavior, and other statistics, making them essential for quickly addressing potential threats in the fight against financial crime dynamics. Leveraging financial crime systems with intelligent supervised neuro-structures exploiting nonlinear autoregressive exogenous networks integrating damped least square (NARX-DLS) optimization methods to achieve an appropriate degree of accuracy and adaptability for the estimation of complex nonlinear financial crime differential systems (NFCDSs). The representative NFCDS for financial crime indicators is expressed as susceptible individuals, financial criminals, individuals under prosecution, imprisoned individuals, and honest individuals. The Adams numerical solver accomplishes the acquisition of synthetic data for the layer structure NARX-DLS algorithm execution to solve NFCDSs for various financial crime parameters, such as recruitment rate, influence rate, conversion rate to honest people, financial criminal prosecution rate per capita, discharge and acquittal rate from prosecutions, percentage of discharge rate from prosecution, transition rate to prison, and freedom rate. A sturdy overlap between the solutions of NARX-DLSs and the reference numerical results of NFCDSs implies that the error value is close to a desirable value of zero. The effectiveness of the NARX-DLSs is evidenced by including a variety of assessment metrics that carefully examine the model's correctness and efficacy, including mean square error-based convergence arches, adaptive regulating parameters, error distribution, and input-error/cross-correlation analyses. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the impact of firm indicators on litigation risk in the Jordanian financial sector from 2017 to 2021, where the relationship between firm indicators and litigation risk in the Jordanian financial sector is a crucial area of research that can help financial institutions understand the factors that increase their probability of litigation risk. Design/methodology/approach: The sample for this study comprised 92 publicly traded financial firms listed on the Amman Stock Exchange. The study used a quantitative research approach to analyse the relationship between four firm indicators (profitability, firm size, leverage and age) and their impact on litigation risk in the Jordanian financial sector from 2017 to 2021. Findings: Our findings reveal that firm size has a significant positive impact on litigation risk, whereas profitability was found to have no significant impact on litigation risk. Moreover, the authors found that financial leverage substantially positively impacts litigation risk levels. However, the firm age was found to have no significant impact on litigation risk. Originality/value: The results provide valuable insights into factors contributing to litigation risk in the Jordanian financial sector and the findings can inform strategic decisions for financial firms as they seek to manage litigation risk and improve financial performance. The study contributes to the existing literature on litigation risk by examining the impact of multiple firm indicators on litigation risk in the context of the Jordanian financial sector. [ABSTRACT FROM AUTHOR]

The article discusses the importance of forensic accounting in preventing and reducing fraud in businesses. It covers various topics related to forensic accounting, such as the impact of corporate governance and information technology on fraud detection, the role of forensic accounting skills in fraud detection, and the determinants of litigation risk in the financial sector. The research emphasizes the need for strong corporate governance practices, tailored information technology techniques, and increased awareness to effectively prevent fraud and improve financial reporting quality. The study also highlights the significance of integrating forensic accounting education within the accounting profession to enhance fraud detection efforts. [Extracted from the article]

Motivated by the unprecedented levels of economic policy uncertainty (EPU) recently experienced in Europe, we study how EPU affects capital structure and whether cultural, institutional, and financial conditions and corporate diversification moderate this relationship in a sample of 3175 firms from eleven European countries. Firstly, our results indicate that financial leverage is positively related to EPU, with this relationship being moderated by uncertainty avoidance, institutional quality, and financial development. Secondly, corporate debt is positively related to corporate diversification. This relationship is stronger for unrelated than for related diversification. In addition to the direct effect, both types of diversification indirectly moderate the positive influence of EPU on leverage, with this effect being stronger for unrelated diversification. Our results show that debt and uncertainty avoidance, institutional quality, and financial development work as substitute mechanisms to alleviate the agency costs caused by EPU and that corporate diversification reduces the informational gap between firm insiders and outside investors exacerbated by EPU. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the relationship between Shariah compliance and corporate capital structure decisions. This study explores the variation of capital structure speed of adjustment. Design/methodology/approach: The authors' sample includes a sample of the largest 200 nonfinancial firms trading in the Malaysian and Pakistan stock markets. This study uses ordinary least squares and dynamic two-step system generalized method of moments to test the hypotheses of the study. Findings: The results show that Shariah-compliant firms use a lower level of leverage than the noncomplaint firms. Moreover, while both types of firms have optimal capital structures, the speed of adjustment toward the targets is slower for Shariah-complaint firms than non-Shariah-compliant firms. This variation can be seen through the different levels of market imperfection experienced by the two types of firms. Shariah-compliant firms follow Islamic rules that restrict the type and degree of leverage, thus affecting the availability of external funding to Shariah-compliant firms. Research limitations/implications: The findings call for more development and innovation of financing instruments that comply with Shariah rules that will increase of supply of external funds for Shariah-compliant firms and, thus, reduce market imperfections that are faced by Shariah-compliant firms. Originality/value: The study contributes to the limited number of studies that examine the nexus between conventional corporate theories and Islamic corporate finance. [ABSTRACT FROM AUTHOR]

Driven by positive accounting, agency, and political and economic theories, this study examines the relationship between research and development (R&D) intensity and earnings management for listed pharmaceutical companies in the Amman Stock Exchange (ASE) between 2008 and 2021. Employing panel regression methods, the results reveal a positive association between R&D investment and earnings manipulation. Specifically, after two or three R&D delays, the association survived. Moreover, firm size negatively affects earnings management, showing that larger firms have less tendencies to conduct earning manipulation. Furthermore, financial leverage and earnings management are strongly connected, showing that firms may utilize earnings management to avoid credit covenants. The findings emphasize distortions in R&D reporting and profit management within Jordan's financial reporting practices. Enhancing the accuracy of R&D investment disclosures, minimizing profit manipulation, and fostering greater transparency are crucial. Jordan's regulators should improve capitalization standards, transparency, auditing, and shareholder activism. [ABSTRACT FROM AUTHOR]

Legislative regulations have recognized the significance of board independence in enhancing the board's role and strengthening its autonomy, which are among the key features that mitigate conflicts of interest between management and shareholders. External auditing serves as a pivotal element of corporate governance, acting as a monitoring mechanism to reduce information asymmetry and safeguard principal interests by ensuring the accuracy and fairness of financial statements. This, in turn, reassures data users and stakeholders. The study aimed to examine the effect of board independence on enhancing external auditor independence among 72 Jordanian service companies listed on the Amman Stock Exchange from 2017 to 2021, with a study sample of 62 companies. The findings revealed a negative impact of board member independence on external auditor independence, as measured by audit firm size. However, company size positively influenced external auditor independence, while no effect was found for financial leverage or company age. The findings highlight the need for companies to strengthen internal controls and governance practices to enhance external auditor independence. Additionally, they suggest that company size plays a crucial role, while other factors like financial leverage and company age may have limited impact, indicating areas for further exploration in future research. [ABSTRACT FROM AUTHOR]

Purpose: Financing the capital-constrained farmers to facilitate the production of agri-products is one of the greatest challenges facing the farming supply chain in the developing countries. In this study, we investigate the optimal financing scheme for the farming supply chain under random yield and investment information asymmetry environment to support rural economic development. Design/methodology/approach: We analyze a stylized model of farming supply chain where the capital-constrained farmer produces and sells agri-products through the agribusiness firm, and investigate the optimal financing scheme incorporating the investment information asymmetry and the challenge of yield uncertainty. Findings: The results show that there is no one financing scheme equilibrium dominates for all situations, the financing scheme equilibrium is affected by the bank's supervision cost to monitor the farmer's moral hazard behavior, the variance of random yield and the farmer's initial capital. The preference of the financing scheme for the agribusiness firm may be different from that for the farmer. The agribusiness firm might suffer from overfinancing problem under trade credit financing when the bank's supervision cost is larger and the farmer's own initial capital is lower; the higher variance of random yield will flare up the effect. Practical implications: This study sheds light on the choice of financing scheme under random yield and investment information asymmetry environment. This problem is particularly important for developing economies. Financing the capital-constrained farmers not only increases supplies of food and industrial raw materials, but also reduces poverty. The findings provide managerial implications for practitioners for how to leverage different financing scheme to support rural economic development. Originality/value: This study develops new theoretical model for farming supply chain financing incorporating the challenge of yield uncertainty and investment information asymmetry, the two prominent factors that would impact the financial risk significantly. We analyze the equilibrium under both bank financing and trade credit financing schemes, and the results suggest that the financing scheme equilibrium is affected by the bank's supervision cost to monitor the farmer's moral hazard behavior, the variance of random yield and the farmer's initial capital. The agribusiness firm might suffer from overfinancing problem under trade credit financing. [ABSTRACT FROM AUTHOR]

In this paper, we shed light on the impact of leverage on efficiency by introducing a new banking efficiency indicator that includes efficiency and stability conditions. This indicator relies on the leverage as a proxy of a bank's risk and stability. Banks' leverage played an important role in the last financial crash as well as in the Basel III regulatory rules. The results of the econometric investigation using a large sample of American commercial banks show that profit efficiency indicators including leverage are better predictors of future profits than current indicators, including other measures of bank risk. This is particularly evident for the period during the 2007–2009 financial crisis. Our findings have important policy implications, particularly in light of the recently implemented optimal leverage ratio. [ABSTRACT FROM AUTHOR]

Previous literature indicates that digitalization offers enterprises competitive advantages. However, However, its potential impact on risk management remains uncertain. Thus, this study explores the causality between digital transformation and systematic risk of Chinese public companies during 2007–2020. We developed a digital‐related keywords dictionary using textual analysis to identify investments in digital assets which serve as a measure of corporate digitalization. Our findings suggest a negative correlation between digital transformation and enterprise systematic risk. This relationship is further supported by robustness tests, adjustments for endogeneity, and random forest predictions. The risk‐reducing effect of digitalization is more pronounced in non‐state‐owned, small, high‐asset‐density, and low‐investor‐attention enterprises. Additionally, we explore potential mechanisms: the financial leverage channel, operating leverage channel, and investor loyalty channel. Empirical observations indicate that enterprise digitalization: (1) lowers financing costs, curbing an inclination towards excessive debt; (2) enhances operational cost management and stimulates sales growth; and (3) boosts long‐term investor holdings, decreases stock price synchronization, and mitigates crash risks. This study offers new insights into assessing the sustainability of digitalization and mitigating systematic risks of enterprises. [ABSTRACT FROM AUTHOR]

This article develops the Two-Country HANK model(Heterogeneous Agents New Keynesian) in the context of trade frictions between China and the United States. Diverging from the conventional RANK (Representative Agent New Keynesian) model, our approach more accurately mirrors real-world economic dynamics by incorporating household heterogeneity and financial market frictions. Our investigation into the effects of reciprocal tariff impositions by these nations has revealed several critical insights. First, tariffs induce a measure of economic downturn in both countries. While a larger country can inflict more significant harm on a smaller one at a lower cost, it is not immune to output reductions. Second, the imposition of tariffs amid trade disputes alters the investment landscape of the smaller country, exacerbating the disparity in foreign investment holdings between wealthier and poorer households and thereby affecting wealth inequality. Lastly, although monetary policy can invigorate investment via financial leverage in the face of trade-induced recessions, its short-term benefits on output are constrained due to its limited capacity to boost labor effectively. [ABSTRACT FROM AUTHOR]

This study investigates the impact of the board's social capital on the investment efficiency of listed companies in the Tehran Stock Exchange. Based on the theoretical foundations, the board social capital as a socialbehavioral factor can affect the problem of over or under-investment (both of which are examples of the inefficiency of investment decisions). Therefore, when the board's social capital is at a high and favorable level, company managers show less opportunistic behavior and do their best to increase cooperation and interaction within the company, which leads to the strengthening of investment efficiency. In terms of purpose, the current research is the applied-developmental type and takes a descriptive-correlational manner. We measured board social capital using the Co-Working Experience index. Investment efficiency is also measured through under- and overinvestment using the Richardson (2006) model. The control variables also include the size of the board of directors, the independence of the board of directors, the size of the company, the ratio of net profit to sales, the rate of return on assets, and the level of financial leverage. The statistical population of the research includes 183 companies admitted to the stock exchange from 2016 to 2022. In order to test the research hypothesis, a multivariate regression model has been fitted using the panel data method with the fixed effects approach. The results of the research indicate that the hypotheses of the research are confirmed, and there is a positive and significant relationship between the social capital of the board of directors and investment efficiency. [ABSTRACT FROM AUTHOR]

Green finance plays a pivotal role in advancing sustainable urban development by enhancing energy efficiency and supporting low-carbon transitions. This study empirically demonstrates that green finance maturity (GFM), which reflects the development and effectiveness of green financial systems, has a significant positive impact on urban energy efficiency (UEE). Using panel data from Chinese prefecture-level cities spanning 2006 to 2021, the analysis shows that a one-unit increase in GFM improves UEE by 0.221 standard deviations. Mechanism analysis reveals that this effect is primarily mediated through technological advancements and improvements in innovation capacity. Further heterogeneity analysis highlights that GFM's impact is more pronounced in non-resource-based cities and in regions characterized by advanced financial systems, greater global market integration, and higher levels of urbanization. These findings offer valuable, context-specific insights for policymakers seeking to leverage green finance maturity as a tool to promote sustainable urban development across diverse socio-economic and institutional settings. [ABSTRACT FROM AUTHOR]

This study investigates the mitigating effects of green finance on Dutch disease in China, using panel data from 30 provinces (excluding Tibet, Hong Kong, and Macau) from 2011–2021. Employing dynamic threshold effect models and mediation effect models, it identifies a resource curse phenomenon at the provincial level, indicative of Dutch disease, which negatively impacts economic growth. The research demonstrates that green finance plays a significant role in alleviating the Dutch disease effect, with its impact varying across different regions and conditions. Notably, areas like the Eastern regions, zones with weak natural resource endowments, financial reform pilot zones, and regions with lower levels of manufacturing development show stronger mitigation effects. The study also highlights the spending and resource transfer effects as key mechanisms through which the resource curse suppresses manufacturing by diminishing export competitiveness and transferring labor away from manufacturing, thereby hindering productivity improvements. Based on these findings, the study recommends enhancing resource management, strengthening green financial systems, focusing on heterogeneity effects, and leveraging green finance to limit the growth of resource-dependent industries, thus breaking the transmission mechanism of Dutch disease and its exacerbating effects on the resource curse. [ABSTRACT FROM AUTHOR]

Financial leverage decisions are critical to firm performance, yet empirical studies lack consensus on the nature and strength of the relationship between financial leverage and financial performance, with varying impacts depending on performance measures. In Kiambu County, Kenya, poor financial performance among agricultural co-operative societies has hindered potential growth, prompting some farmers to abandon agriculture for real estate ventures. The research examined the effect of financial leverage on financial performance among 25 active agricultural co-operatives in Kiambu County, focusing on capitalization mix, interest coverage, and asset coverage as the independent variable measures. Grounded on the trade-off, pecking order and agency theories, this research adopted a positivist philosophy and utilized an explanatory research design. The analysis of secondary data (2013-2017) from audited financial statements and the Directorate of Co-operatives was conducted through the application of panel regression, descriptive statistical methods and correlation techniques. Diagnostic tests included normality, multicollinearity, autocorrelation, heteroscedasticity, stationarity, and effects modeling. Results revealed a significant positive effect of interest coverage (ß = 2.01937; P = 0.015) and a positive but insignificant effect of asset coverage (ß = 1.174203; P = 0.063) on financial performance. Capitalization mix negatively affected performance significantly (ß = - 0.2589299; P = 0.040). Based on the study findings, managers should formulate optimal debtequity strategies, reduce reliance on debt to mitigate financial risks and explore cheaper financing options to improve financial performance. [ABSTRACT FROM AUTHOR]

Financial technology (fintech) offers farmers the prospect of getting other sources of finance apart from financial assistance from the established official funding institutions. Farmers of fresh agricultural products (FAP) in Indonesia received financial offers from various fintech platforms. However, several platforms have failed to maintain their operations, resulting in negative consequences for the farming activities. This study's objective is to explore how fintech contributes to the sustainability of FAP by examining five key dimensions of sustainability: economic, social, environmental, technological, and institutional. Most extant literature primarily examines the determinants that impact an individual's interest in fintech lending. However, the existing research needs to dedicate more attention to the sustainability of the platform and the enterprises it finances, with a particular emphasis on the FAP sector. A quantitative methodology was utilized to design the study, and a proportional stratified random sampling method was employed to select 269 FAP producers as respondents. The data were analyzed using the multidimensional scaling (MDS) approach in rap-Agrifin using factors specifically designed to assess fintech sustainability in agribusiness. Fintech in the FAP supply chain is classified as quite sustainable, according to this study's multidimensional finding. Partially, the dimensions that acquire sufficiently sustainable value are the social, economic, and environmental dimensions, but the technological and institutional dimensions are less sustainable. This research demonstrates that the MDS approach in rap-Agrifin can effectively analyze sustainable finance in agriculture, highlighting the need for focused improvement on institutional and technological factors, particularly through the application of fintech. [ABSTRACT FROM AUTHOR]

The climate crisis calls for a reassessment of infrastructure's role in the energy transition. This urgency has catalysed an expanding green finance paradigm, which is reshaping the roles of states and private actors through the creation of green infrastructural projects. This article examines Thailand's northeast province, an emerging renewable energy hub, to explore how Cold War‐era geopolitical and military infrastructures are being repurposed as green assets. These upgrades, both technological and financial, align with reframing their historical political roles. The study reveals how infrastructure transformation involves shifts in the actors and mechanisms of financing. Once converted into green assets, these infrastructures serve as eco‐temporal fix, allowing the military junta to address political instability while promoting a green future. The article ultimately shows how speculative processes in transforming infrastructure enable financial capital accumulation and reinforce political legitimacy. [ABSTRACT FROM AUTHOR]

National economies can grow and develop depending on the development, application and export of innovative technology. Innovative technologies can emerge as a result of the evaluation of new ideas. The financing required by entrepreneurs in the process of transforming new ideas into a tangible product and obtaining a technological output can be provided through venture capital. Venture capital is a form of financing that refers to providing funds to entrepreneurs with a new idea but not sufficient financial resources, using equity or foreign resources. While venture capital contributes to the growth and development of entrepreneurial companies with an innovative technology product idea, it also contributes to economic development by accelerating the production and export of technological products. Venture capital funds and Venture Capital Investment Trusts are of great importance in encouraging venture capital. Venture Capital Investment Trusts are partnerships that make venture capital investments to a large extent together with capital market instruments and contribute to the growth of entrepreneurial companies. This study aims to evaluate the financial performance of Venture Capital Investment Trusts operating in Turkey and whose shares are traded in Istanbul Stock Exchange. In this context, the current ratio, asset turnover rate, financial leverage ratio, return on asset and return on equity ratios of six Venture Capital Investment Trusts, whose data were available for the 2019 - 2023 period, were calculated and analysed using CRITIC and TOPSIS methods. The findings obtained as a result of the analysis show that the current ratio is the most important and the profitability ratios are less important for Venture Capital Investment Trusts. However, findings were obtained in the study that the financial performance of Hedef and Verusatürk Venture Capital Investment s was better. In order to improve the financial performance of Venture Capital Investment Trusts, it may be beneficial to increase liquid assets, benefit from financial leverage and increase the equity level. [ABSTRACT FROM AUTHOR]

Introduction: Among the 196 countries worldwide, 134 actively engage in basic space technology and services. Governments annually allocate $117 billion to space technology development. As of this writing, over 9,900 satellites orbit Earth, with telecommunication satellites comprising the largest segment at 3,135. The United States leads with 2,926 satellites, and an average of 197 launches occur annually to maximize space utilization. By 2028, over 15,000 active satellites are projected to be in Earth’s orbit. Despite economic challenges like poverty, inflation, and unemployment, many countries continue to invest in national space programs. Some nations, such as Saudi Arabia and the UAE, leverage their financial resources to participate in extensive space programs led by countries like China and the United States. This research aims to explore the reasons behind countries’ investments in national space programs, even in the face of economic constraints. It argues that not only are the costs of investing in space programs lower than the costs of not investing, but there are no viable alternatives. Methods: This article analyzes the political economy of space technology through analytic eclecticism, an approach that integrates causal mechanisms from multiple theories, models, and explanatory narratives across competing research traditions. The goal is to create a coherent and adaptable research framework capable of addressing complex problems, concepts, methods, and causal arguments. The study employs abductive reasoning, beginning with observations and then proposing the simplest and most plausible explanations Results and discussion: Using an integrated approach to political economy, this research examines space technology through the lens of four theoretical frameworks: economics, management, political economy, and international relations. According to the theory of multilateral monopoly, nations invest in developing indigenous space technology to escape dependency deadlocks caused by monopolistic control. Weaponized interdependence theory highlights how interdependence can be exploited, enabling governments controlling key nodes to wield their position as a tool of power. This poses threats to national security, driving countries to localize space technologies—such as satellite television, telecommunications, and navigation systems—to reduce reliance on external powers and mitigate risks of exploitation. Another critical dimension of space technology is its role in forming networks of influence, ranging from ordinary citizens to institutions, universities, and military centers. Space technology cascades through interconnected sectors, significantly influencing national authority, international prestige, and credibility. Conclusion: Space technology, with its dual-use capabilities for both civilian and military applications, impacts diverse aspects of human life. Considering intergovernmental interactions and the role of these technologies in international relations, space technology encompasses social, security, and political dimensions. Nations that invest in this domain achieve multiple objectives simultaneously, enhancing economic, political, and strategic advantages. Given the broad utility and transformative potential of space programs, investment in this sector remains a priority for both developed and developing nations. Space continues to be one of the most promising and beneficial areas of investment, with its significance expected to grow in the foreseeable future. [ABSTRACT FROM AUTHOR]

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Agency problems and informational asymmetries are widespread concerns in the information and communication technology (ICT) sector. Do they affect capital structure decisions? Do they make capital structure adjustments more costly? Do they function as debt control mechanisms? We address these questions using a dynamic adjustment model of capital structure for a panel of 85 ICT firms over the years 1990 to 2013, augmented by measures of agency costs and informational asymmetries, and expand on this literature to include two additional determinants: R&D activity as a direct measure of asymmetric information and asset turnover as an inverse measure of firm agency costs. We find that both agency costs and informational asymmetries play a significant role in managerial capital structure decisions, causing ICT firms to maintain a low level of debt. We also find that ICT firms adjust their capital structure more slowly than the average firms, as reported in the extant literature, and the speed of adjustment increases with firm size, growth opportunities, and distance from the target capital structure and decreases with default risk and agency costs. We estimate the model using several newly developed econometric methods, but the findings do not show any significant difference, a strong indication of the model's reliability. We reinforce the validity of our results by conducting robustness checks by splitting the sample into three subsamples. [ABSTRACT FROM AUTHOR]

Although Chinese regulatory authorities view corporate asset‐backed securitisation as a powerful tool for deleveraging, its effectiveness remains unexamined. Employing a look‐through approach to data from nonfinancial corporate asset‐backed securitisation transactions in China, we identify the actual originators and examine the impact of corporate asset‐backed securitisation on their leverage ratios. Regrettably, we find that corporate asset‐backed securitisation significantly increases the leverage ratio. This result holds true across both state‐owned and non‐state‐owned enterprises, as well as large‐scale and small‐scale enterprises. Finally, this study reveals that the effect of corporate asset‐backed securitisation on the leverage ratio is partially mediated by internal financing capacity. [ABSTRACT FROM AUTHOR]

Exploring the significance of ESG performance is especially crucial in the Middle East, North Africa, and Turkey (MENAT) area, where economic and cultural environments differ. The study aims to empirically assess the relationship between firms' dividend policy and ESG performance in MENAT, along with the moderating effect of audit quality. The research is novel in exploring this link in the MENAT region. The study uses dividend yield (DY) as the dependent variable and yearly ESG combined score from the Eikon Refinitiv database, which range from 0 to 100 as the primary independent variable, with control variables as retained earnings, profitability, firm size, and financial leverage. The results indicate a significant negative relationship between ESG scores and dividend yields, suggesting a trade-off between prioritizing ESG factors and short-term returns. The moderating effect of audit quality on the ESG-dividend policy connection is insignificant. Additionally, retained earnings and corporate size have positive effects on dividend policy, while financial leverage has a negative impact. Profitability shows an insignificant effect on dividend yield. [ABSTRACT FROM AUTHOR]

Earnings management is a widespread phenomenon in practice, with researchers therefore focusing on trying to understand what motives and factors lead to companies engaging in earnings management. In addition to internal financial and macroeconomic factors, the influence of institutional factors including corporate social responsibility (CSR) has been widely studied in recent years. In Lithuania, there have been no studies on the manipulation of accounting information in socially responsible companies. Therefore, this study aims to identify the impact of CSR on the application of earnings management in the context of internal financial and macroeconomic factors. The results of this study are significant as they not only enable assessing the impact of social responsibility on the application of earnings management in Lithuanian companies, but also the influence of macroeconomic factors such as the gross domestic product (GDP), inflation, foreign direct investment (FDI), average wages, and unemployment, as well as internal financial factors such as leverage, returns on assets (RoA), and the profitability of EBIT. The results show that CSR reduces the use of earnings management, regardless of whether it is accrual-based or real earnings management. Additionally, this analysis demonstrates that, among the internal financial factors, leverage carries the most substantial influence. The higher a company's leverage, the more inclined that company is to use earnings management. Exploring the impact of macroeconomic indicators, it was found that the GDP, inflation, and unemployment rate have a statistically significant impact on the use of earnings management, albeit only if the firm uses accrual-based earnings management and adopts a profit-enhancing strategy. [ABSTRACT FROM AUTHOR]

The primary goal of the study is to examine the factors affecting the financial leverage of unicorn start-ups in India. In order to achieve this goal, the study has employed the panel data techniques on the financial data of 25 start-ups unicorn of India from 2017 to 2021. The study has employed three proxies to measure the financial leverage namely short-run, long-run, and total debt ratio. The result of the study indicates that firm size and profitability are significantly negatively correlated with debt ratios, whilst tangibility, business risk, and firm age are positively and significantly associated. Moreover, short-term debt is found to be more prevalent in unicorn firms when we bifurcate total debt into short and long-term debt. As per the best of author's knowledge, this is the first research that identified the financial choice of startups. Furthermore, this study provides a pathway for conducting future study in this domain on startup firms' capital structure decisions. This study has major implications for unicorn managements in taking decisions regarding their finance choice that may lead them to plan adequately their capital structure more efficiently and effectively. [ABSTRACT FROM AUTHOR]

The rapid evolution and unprecedented advancements in large language models (LLMs) have ushered in a new era of innovation in the realm of machine learning, with far-reaching implications for the finance and investment management sectors. These models have exhibited remarkable prowess in contextual understanding, processing vast and complex datasets, and generating content that aligns closely with human preferences. The transformative potential of LLMs in finance has catalyzed a surge of research and applications. As the integration of LLMs into financial practices continues to accelerate, there is an urgent need for a systematic examination of their diverse applications, methodologies, and impact, which necessitates a comprehensive review and synthesis of recent developments in this rapidly evolving field. This article aims to bridge the gap between cutting-edge artificial intelligence technology and its practical implementation in finance, providing a robust framework for understanding and leveraging LLMs in financial contexts. The authors explore the application of LLMs on various financial tasks, focusing on their potential to transform traditional practices and drive innovation. The article is highlighted for categorizing the existing literature into key application areas, including linguistic tasks, sentiment analysis, financial time series, financial reasoning, and agent-based modeling. For each application area, the authors delve into specific methodologies, such as textual analysis, knowledge-based analysis, forecasting, data augmentation, planning, decision support, and simulations. Furthermore, the article provides a comprehensive collection of datasets, benchmarks, and useful code associated with mainstream applications, offering valuable resources for researchers and practitioners. The authors hope their work can help facilitate the adoption and further development of LLMs in finance and investment management. [ABSTRACT FROM AUTHOR]

Addressing global challenges together with weather exchange and environmental degradation calls for progressive financing solutions. Green finance has emerged as a crucial device for mobilizing capital to support sustainable development. This research examines the function of inexperienced finance in accomplishing the Sustainable Development Goals (SDGs), drawing insights from case studies and empirical analysis. The study unearths that green finance can undoubtedly contribute to realizing the SDGs, especially in areas like climate action, low-priced and easy strength, and enterprise, innovation, and infrastructure. However, the research also identifies key challenges, including the lack of standardization in defining "green" and the want for higher alignment among domestic financial frameworks and country wide SDG priorities. The paper affords policy recommendations for governments to create an allowing surroundings for green finance. This includes adopting a proactive method to fostering legal and regulatory frameworks that assist the mobilization of monetary resources for ecological, social, and monetary sustainability. The findings of this research can inform policymakers, financial institutions, and other stakeholders of their efforts to leverage green finance for sustainable improvement. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the prevalence of transfer pricing and earnings management activities, and how they are impacted by corporate governance mechanisms. Design/methodology/approach: Using the political cost theory, the study provides insights into how opportunistic managerial behaviours which have a strong link to profit shifting and tax evasion are driven by corporate governance using data from 16 listed firms for the period 2008–2020. Findings: The results reveal that the transaction-based transfer pricing model is better than the index-based model and the accrual-based earnings management model suits the political cost theory more than the real earnings management metric. Board size and female CEO increase transfer pricing aggressiveness but board independence, CEO tenure, CEO nationality and female Board Chairwomanship reduce transfer pricing aggressiveness. The findings also reveal the role of multinational enterprise status, private ownership, industry type, firm size, financial leverage, asset tangibility and firm age. For accrual-based earnings management, board independence, CEO tenure, and female Board Chairwomanship significantly decrease earnings management. Other factors include private ownership, firm size, and firm age. Practical implications: The findings of the study are relevant for shaping industry-level policies on earning management, transfer pricing and related-party transactions. Since these opportunistic managerial behaviours are the foremost drivers of tax avoidance and profit shifting, the findings of this study provide relevant insights for practitioners, tax and other regulatory authorities, policymakers and the academic community alike. Originality/value: This is among the premier studies on the transfer pricing and earnings management nexus with corporate governance factors using the political cost theory, especially in the developing country context. It also reveals the significant impact of gender and suggests the need for gender diversity in corporate management. [ABSTRACT FROM AUTHOR]

This article studies the determinants of the capital structure of 2694 small Ecuadorian companies throughout their organizational life cycle, breaking down their total liabilities in long‐ and short‐term leverage. The empirical investigation focuses on small and medium enterprises (SMEs) in the commercial sector, with 11,023 observations during the period 2015–2019. The results suggest both that information asymmetry and agency problems are important and that larger size and higher collateral are very important, for accessing long‐term leverage financing. Liquidity is negatively associated with leverage, while higher profitability is positively associated with lower levels of leverage. When internal finances are insufficient, commercial SMEs appear to be highly dependent on short‐term leverage financing, due to difficulties in accessing long‐term leverage. The main conclusion of this study is that small companies' capital structure follows the predictions formulated by the main financing theories, in agreement with the results of previous studies of SMEs. [ABSTRACT FROM AUTHOR]

This study aims to analyze and empirically test the impact of financial leverage on investment decisions, firms' value, and the role of investment decisions as a mediator. This study uses a quantitative approach with secondary data. Manufacturing companies listed on the Indonesia Stock Exchange in 2016-2022 are the research population. Sampling was done using purposive sampling, and a sample of 117 companies was obtained. The data analysis technique used structural equation modeling. The study's results showed that leverage did not affect investment decisions. However, leverage showed a positive effect on firms' value. Investment decisions have a positive effect on firms' value. Investment decisions can mediate the effect of leverage on firms' value. This study theoretically offers a framework for understanding the role of financial leverage on firm value through investment decisions. In addition, this study can be a reference for further research. Practically, this study can be a reference for investors in choosing stock investments and stakeholders in manufacturing companies to overcome obstacles, maximize market value, and optimize capital structure.

We study 6,083 European firms that were acquired between 1999 and 2015. Soon after the acquisition, the acquired firms promptly and substantially close the gap between their actual leverage ratios and their target (optimal) ratios. Firms that were over- (under-) leveraged at the start of their acquisition year move their debt-to-assets ratio from 34.1% to 20% (10% to 18.5%) by the end of the following year. Under-leveraged firms expand their assets rapidly following acquisition, as they gain improved access to investable resources. Our results are consistent with the trade-off theory of capital structure and with the existence of firm-specific target leverage ratios. [ABSTRACT FROM AUTHOR]

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The primary objective of this study is to investigate how various stock portfolio strategies affect the volatility of returns among companies listed on the Tehran Stock Exchange (TSE). A systematic elimination method selected 185 companies from 2011 to 2022. The return volatility of these companies, along with the stability of fluctuations, was analyzed across 16 sorted portfolios based on three characteristics: size, book-to-market (B/M) ratio, and financial leverage. Additionally, considering the leveraged structure of companies’ balance sheets, the extent of the leverage effect was examined in relation to the impact of positive and negative news on return fluctuations. The hybrid model ARMA(p, q)-GJR-GARCH(1, 1)-M was utilized to investigate this. The findings indicate that the volatility of returns and the stability of fluctuations within sorted portfolios vary across different groups. Furthermore, the influence of positive news on stock return volatility appears to be more pronounced in two specific portfolios: one consisting of large companies with a high B/M ratio and the other comprised of large companies with a low B/M ratio, compared to the impact of negative news. This disparity may be attributed to the dissemination of positive news within the market, wherein larger companies with low B/M ratios, due to their higher growth potential, and larger companies with high B/M ratios, due to their substantial capital and stable financial performance, have a greater impact on market expectations, thereby enhancing investor confidence.

Does capital structure matter for farms productivity? Do bank loans increase or decrease farms efficiency? To address this question, I use farm-level data for 2014–2020 from Amur region, which is one of the most typical Russian regions in terms of agricultural development. I find some evidence of a negative correlation between financial leverage and total factor productivity in Amur Oblast farms. I also observe a negative correlation between financial leverage and partial productivity measures such as labor productivity, crop yield, and return on fixed assets. The negative relationship between enterprise productivity and the share of loans in liabilities can be explained, on the one hand, by the fact that bank loans are more often used by struggling, inefficient agricultural enterprises, i. e. adverse selection may take place. On the other hand, the negative relationship between firm productivity and bank credit may be due to the non-market nature of the credit they receive, with the government subsidizing the interest rate and/or guaranteeing the loan obligations. As a result, farms face soft budget constraints that reduce the incentives of owners and management to improve farm efficiency. The two proposed explanations (adverse selection and soft budget constraints) are not mutually exclusive, but rather complementary

The article discusses the need for substantial improvements in the quality and quantity of financing for the Global South to achieve ambitious global climate targets set during COP28. Financial challenges in the Global South include limited fiscal space, high interest rates for renewable energy investments, and growing debt levels. Various studies estimate that developing countries may require $1-1.5 trillion annually in grant-equivalent terms to address mitigation, adaptation, and loss and damage related to climate change. The article emphasizes the importance of distinguishing between mobilization and provision of finance and highlights the need for international support to address climate change effectively. [Extracted from the article]