This investigation explores whether sustainable finance and renewable energy could facilitate U.S. carbon neutrality. We perform the time-varying parameter-stochastic volatility-vector ...auto-regression (TVP-SV-VAR) model to obtain the changing relations among U.S. sustainable finance (SF), renewable energy (RE) and carbon dioxide emission (CO2). The empirical outcomes reveal a short-term negative effect from RE to CO2, indicating that renewable energy consumption could promote U.S. carbon neutrality. This effect is asymmetrical, and it could be observed that RE increase has a greater effect on CO2 than RE reduction. Also, the development of sustainable finance could facilitate U.S. carbon neutrality, and the direct impact is longer and more significant than RE, but the indirect effect of SF on CO2 by influencing RE is hysteretic. Besides, the asymmetric effect reveals that the negative direct impact of SF increase on CO2 is smaller than SF reduction, and the latter's indirect effect is more rapid than the former. Against the backdrop of global warming and frequent extreme weather, the above conclusions have meaningful practical applications for the U.S. to achieve carbon neutrality targets through developing sustainable finance and renewable energy.
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•This paper explores the effects of SF and RE on U.S. carbon neutrality.•The facilitation of SF on U.S. carbon neutrality is more influential than that of RE.•There is a hysteretic indirect effect of SF on CO2 by influencing RE.•The negative effect of RE reduction on CO2 is smaller than that of RE increase.•The direct and indirect effects of SF on CO2 are asymmetric.
This paper studies whether differences in credit rationing exist, based on firms’ activities in sustainable sectors, recently identified by the European Commission in the EU Taxonomy Regulation. To ...this aim, we use the World Bank Enterprise Surveys, including a sample of more than 28,900 firms from 66 developing and emerging countries, over the waves 2006–2020. We find that firms operating in sustainable sectors are around 1.6% less likely to be financially constrained, controlling for other firm-level characteristics. The magnitude of the effect is larger for small and young firms. Moreover, our results show that firms operating in sustainable sectors are more likely to receive external financing if they operate in countries where environmental issues are more relevant and where financial systems and the business environment are less developed.
ABSTRACT Objective to analyze the possibility of using golf as a metaphor for teaching finance. Study reports on a pilot experience of teaching finance using golf as a metaphor.Golf can be a means of ...promoting the engagement of finance students. Theoretical framework: a normative and positive economic decision theory is used as a framework. Sports can be a means of engaging students in finance education programs. Golf, in particular, can fulfill this role and serve as a powerful tool for building and maintaining social networks relevant to high-level professionals. Methods: thirty undergraduate students voluntarily participated in a pilot teaching program over five days. The program included sessions (in the field) on the fundamentals of golf and financial decisions, and students looked for synergies between these two domains. Participants showed a high level of interest in both the sports practice sessions and the finance activities. Results: the results suggest that psychological errors common to golf and financial behavior-for example, overoptimism, overconfidence, and emotional judgments-can be diagnosed and addressed through sports practice. In addition, the participants’ self-assessment indicates the possibility that the program can induce behaviors in line with the corporate environment. Conclusions: Despite golf’s contribution to the teaching of business subjects, it is still absent from formal curricula.
RESUMO Objetivo: analisar a possibilidade do emprego do golfe como metáfora para o ensino de finanças. Este estudo relata uma experiência piloto de ensino de finanças com o emprego da prática do golfe como metáfora. O golfe pode ser um meio para promover o engajamento de estudantes de finanças. Marco teórico: teoria normativa e positiva da decisão econômica. A prática esportiva pode ser um meio de engajar estudantes em programas de ensino de finanças. O golfe, em especial, pode desempenhar esse papel, além de constituir uma poderosa ferramenta de construção e manutenção de redes sociais relevantes ao profissional de alto nível. Métodos: trinta estudantes, em nível de graduação, voluntariamente inscritos participaram do programa piloto de ensino ao longo de cinco dias, com sessões (em campo) de fundamentos do golfe e de decisões financeiras, buscando sinergias entre esses dois domínios. Constata-se o interesse elevado dos participantes tanto nas sessões de prática esportiva como nas atividades de finanças. Resultados: os resultados sugerem que erros psicológicos comuns ao golfe e ao comportamento financeiro, e.g., excesso de otimismo, excesso de confiança e julgamentos emocionais, podem ser diagnosticados e endereçados por meio da prática esportiva. Em adição, a autoavaliação realizada pelos participantes sugere a possibilidade de que o programa possa induzir comportamentos alinhados com o ambiente corporativo. Conclusões: em que pese a contribuição do golfe para o ensino de disciplinas da área de negócios, ele ainda é ausente dos currículos formais.
The impact of the absorption of European funds in Romania, in the context of financial stability, is a complex subject, approached with the aim of balancing the associated benefits and risks. ...Absorption of funds contributes to economic growth, infrastructure development and job creation, supporting the private sector and innovation. However, administrative difficulties and the need to comply with EU rules pose risks. Transparent and efficient management is essential to prevent corruption. Overall, absorption of EU funds can strengthen national budgets and reduce regional disparities. It is crucial that Romania adapts to European requirements and manages funds responsibly to maximize the positive impact on the country's financial stability. The overall objective is to analyze the impact of these funds on economic growth, infrastructure, and the reduction of regional disparities. The aim of the research is to assess how the absorption of European funds influences financial stability in the context of compliance with EU standards and to propose directions for efficient and transparent management.
•Impact of investor attention on green bond market performance.•Generalized forecast error decompositions are estimated to capture spillovers between investor attention and green bond ...market.•Time-varying impact of investor attention on green bond returns and volatility.•Feedback effect between the green bond market performance and investor attention.
This paper is the first empirical study of the link between investor attention and the green bond market performance. Using daily data of investor attention and green bond indexes, we find that investor attention can influence green bond returns and volatility, however, this relationship is time varying. Our results are relevant for investors as they shed light into the newly developed and fast growing green bond market. Our findings also emphasize the importance of appropriate information and attention for directing financial flows towards sustainable investment.
Corporate green bonds Flammer, Caroline
Journal of financial economics,
November 2021, 2021-11-00, 20211101, Letnik:
142, Številka:
2
Journal Article
Recenzirano
I examine corporate green bonds, whose proceeds finance climate-friendly projects. These bonds have become more prevalent over time, especially in industries where the environment is financially ...material to firm operations. I show that investors respond positively to the issuance announcement, a response that is stronger for first-time issuers and bonds certified by third parties. The issuers improve their environmental performance post-issuance (i.e., higher environmental ratings and lower CO2 emissions) and experience an increase in ownership by long-term and green investors. Overall, the findings are consistent with a signaling argument—by issuing green bonds, companies credibly signal their commitment toward the environment.
Sustainable finance is a rich field of research. Yet, existing reviews remain limited due to the piecemeal insights offered through a sub-set rather than the entire corpus of sustainable finance. To ...address this gap, this study aims to conduct a large-scale review that would provide a state-of-the-art overview of the performance and intellectual structure of sustainable finance. To do so, this study engages in a review of sustainable finance research using big data analytics through machine learning of scholarly research. In doing so, this study unpacks the most influential articles and top contributing journals, authors, institutions, and countries, as well as the methodological choices and research contexts for sustainable finance research. In addition, this study reveals insights into seven major themes of sustainable finance research, namely socially responsible investing, climate financing, green financing, impact investing, carbon financing, energy financing, and governance of sustainable financing and investing. To drive the field forward, this study proposes several suggestions for future sustainable finance research, which include developing and diffusing innovative sustainable financing instruments, magnifying and managing the profitability and returns of sustainable financing, making sustainable finance more sustainable, devising and unifying policies and frameworks for sustainable finance, tackling greenwashing of corporate sustainability reporting in sustainable finance, shining behavioral finance on sustainable finance, and leveraging the power of new-age technologies such as artificial intelligence, blockchain, internet of things, and machine learning for sustainable finance.
Sustainable finance is a form of financing provided by Financial Institutions (FIs) to debtors by considering sustainability aspects into their decisions. Sustainable finance has not become a serious ...concern and orientation of FIs in providing credit or financing to debtors. Problem financing reflects the problem of two conflicting economic actors (agency). By conducting an analysis of sustainable financial performance and agency relationship analysis, this study shows that assessing the sustainability performance of a company (the debtor) required detail criteria and indicators of sustainable finance. When disbursing credit, banks cannot only look at the financial health and stability of a company. This is because companies that already have sustainability certification and fulfill administrative aspects still have unresolved Environmental, Social and Governance (ESG) issues. The involvement of the parties in building an “Information Hub” (coordination forum) related to ESG practices centered in the regions is important.
In Search of Sustainable Finance Ján Mazur; Sabina Petrovičová
Bratislava law review (Online),
07/2024, Letnik:
8, Številka:
1
Journal Article
Recenzirano
Odprti dostop
Financial market is expected to play an important role in transition towards more sustainable setup of the business environment. The European Commission published the EU’s Strategy for Financing the ...Transition to a Sustainable Economy in 2021, requiring the inclusion of environmental, social and governance considerations into investment decision making. Yet, small, open EU economies, such as Slovakia, are in a specific position when implementing this legal framework. For instance, Slovakia does not have any meaningful stock market to speak of, although its bond and collective investment markets perform better. To assess the adoption of sustainable finance elements and to assess the convergence on the Slovak bond market towards standard practice, we investigated current practices on the corporate bond market of nonfinancial corporations. We conducted our research through a review of corporate bonds prospectuses published during 2020-22, in which, to assess current market practices, we examined and evaluated selected criteria and indicators related to issuers and bonds and compared them. These criteria include for example issuer´s business and purpose of finance, form, yield, security, or transferability of bonds. We find that relevant variable criteria and indicators related to reviewed bonds, compared in our research, are similar, indicating that the market converged into a standard practice. Finally, we find almost no evidence of adoption of the sustainable finance elements although there are hints of market uptake of sustainable practices.
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