Article
Economics
Alok Johri, Shahed Khan, Cesar Sosa-Padilla
Summary: Empirical studies have shown that fluctuations in the world interest rate have an impact on the sovereign spreads in emerging economies, with the volatility having a major effect. The model suggests that a rise in the world interest rate leads to an average 1.4-times increase in spreads, with a larger increase in high volatility states. Additionally, fluctuations in the world interest rate can generate considerable co-movement in sovereign yields across nations.
JOURNAL OF INTERNATIONAL ECONOMICS
(2022)
Article
Economics
Md Nurul Kabir, Sohanur Rahman, Md Arifur Rahman, Mumtaheena Anwar
Summary: This study examines the impact of carbon emissions on firms' default risk and finds a significant negative effect, with environmental commitments and green initiatives mitigating the impact while environmental controversies exacerbate it. The research also identifies ROA and cash flow volatility as potential channels through which emissions affect default risk, emphasizing the importance of considering credit risk implications of firm-level emissions in policy decisions by stakeholders.
ECONOMIC MODELLING
(2021)
Article
Business, Finance
Trung K. Do
Summary: Using a large sample of firms from 36 countries between 2002 and 2016, this study finds that corporate social responsibility (CSR) is negatively associated with default risk, with a stronger effect in the long term. The impact of CSR on firm default probability is greater in countries with weaker capital markets and legal institutions. These findings provide evidence supporting the role of CSR in filling institutional voids.
FINANCE RESEARCH LETTERS
(2022)
Article
Hospitality, Leisure, Sport & Tourism
Syed Jawad Hussain Shahzad, Elie Bouri, Roman Ferrer
Summary: Despite its implications for the Travel and Leisure (T & L) industry's health and stability, there has been limited research on default risk. This study examines the transmission of default risk among US T & L firms from July 22, 2008, to December 9, 2022, with a focus on the impact of COVID-19. The findings indicate significant default risk transmission, particularly in the long-term, and attribute this transmission to macro-financial variables influenced by the pandemic, such as news market sentiment and stock market volatility.
INTERNATIONAL JOURNAL OF HOSPITALITY MANAGEMENT
(2023)
Article
Environmental Sciences
Obaid Ur Rehman, Xiaoxing Liu
Summary: The study found a positive correlation between corporate default risk and environmental deterioration, particularly in low-income and highly uncertain countries. Additionally, the negative impact of corporate default risk on the environment is more pronounced in countries with higher population density and less forest area.
ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
(2022)
Article
Green & Sustainable Science & Technology
Xiaowei Chuai, Qinli Lu, Xianjin Huang, Runyi Gao, Rongqin Zhao
Summary: The study found that China's construction activities have a significant impact on resource utilization and air pollution both domestically and internationally, suggesting recommendations for strengthening environmental protection and efficient resource use.
JOURNAL OF CLEANER PRODUCTION
(2021)
Article
Development Studies
Jindao Chen, Yuhong Wang, Qian Shi, Xu Peng, Juhuan Zheng
Summary: Global warming is a serious issue faced by humans with the construction industry playing a significant role in combating it. A study comparing CO2 emissions in the construction industry worldwide in 2009 showed that China, India, the USA, Russia, and Japan were the largest emitters. The differences in emission intensities between regions were mainly driven by production structure effect and energy intensity effect.
SUSTAINABLE DEVELOPMENT
(2021)
Article
Business, Finance
Kwangwon Ahn, Joetta Forsyth, Hanwool Jang, Dongshin Kim
Summary: Mortgages play a crucial role in the US economy. This paper investigates the cost of choosing fixed-rate mortgages (FRMs) over adjustable rate mortgages (ARMs), and proposes a payment-saving strategy to address payment shocks. It finds that FRM borrowers pay higher interest to avoid potential ARM payment shocks.
FINANCE RESEARCH LETTERS
(2022)
Article
Economics
Svetlana Drljaca Kanazir
Summary: This research aims to investigate the impact of borrower's size on the cyclicality of credit risk using data from the Serbian banking sector. The study finds that macroeconomic factors have a long term relationship with loan default rates in all risk segments, except for the small- and medium-sized enterprises segment where GDP as an explanatory variable is not statistically significant.
Article
Engineering, Industrial
Peng Yan, Junying Liu, Xianbo Zhao, Martin Skitmore
Summary: This research aims to develop a decision method for international construction project managers to generate appropriate risk response strategies, considering their different risk preferences. The study finds that PMs with higher risk aversion may result in a higher mitigation ratio of expected losses of risk events and a higher total cost of risk response.
ENGINEERING CONSTRUCTION AND ARCHITECTURAL MANAGEMENT
(2022)
Article
Business, Finance
Egidio Palmieri, Greta B. Ferilli, Valeria Stefanelli, Enrico F. Geretto, Maurizio Polato
Summary: Using a sample of 211 European listed firms from 2013 to 2022, this study examines the impact of ESG performance, combined with industry and stock index membership, on firms' probability of default (PD). The findings suggest that improvements in environmental scores decrease PD; however, controlling for industry and stock index increases firms' riskiness. From a banking perspective, it is recommended to integrate ESG scores into lending practices, considering industry or stock index. Policymakers and regulators are encouraged to promote the adoption of ESG metrics in assessing credit risk.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Luca Agnello, Vitor Castro, Ricardo M. Sousa
Summary: The US is the main source of global spillovers in terms of natural interest rate co-movement, with global/common factors being the key drivers. Spillovers among natural interest rates have been increasing since the late nineties, spiking at times of economic recessions, US monetary policy tightening, global financial crisis, and Eurozone sovereign debt crisis. Policy implications include the need for monetary policy coordination, complementing monetary policy with macro-financial tools, a cautious approach to monetary normalization due to spikes in financial markets' volatility, and a lower new normal level for real policy rates.
JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY
(2022)
Article
Environmental Sciences
Muhammad Salman Hassan, Yousaf Ali, Antonella Petrillo, Fabio De Felice
Summary: The construction industry consumes 3 billion tons of natural raw materials annually and accounts for 40% of the global waste generated. Implementing Circular Economy practices in the construction industry can address resource wastage and negative impacts on the ecosystem. However, the concept of circular construction is still in its developmental stage and is more vulnerable to risks compared to traditional construction. This study aims to identify and assess the risks associated with implementing Circular Economy practices in the construction sector of a developing country. A novel hybrid fuzzy Multi-Criteria Decision Making approach is proposed to analyze the identified risks, and the lack of political support and incentives, difficulty in selecting circular construction experts, profit uncertainty, and circular material quality are identified as the most critical risks. Legislative authorities are recommended to develop a framework that promotes and supports circular construction, and this study contributes to filling the gap in literature by assessing the risks of Circular Economy practices in the construction industry of Pakistan.
SCIENCE OF THE TOTAL ENVIRONMENT
(2023)
Article
Green & Sustainable Science & Technology
Yuchun Tang, Nini Xia, Liz Varga, Yongtao Tan, Xinjie Hua, Qiming Li
Summary: This study combines sustainability and incremental perspectives to explore the concept of sustainable international competitiveness and its impact. By analyzing statistical data from provincial regions in China, it is found that most regions independently develop overseas construction projects, resulting in random distribution of domestic competitiveness. Moreover, spatiotemporal differentiation characteristics show geographical expansion of competitiveness decline in aggregation regions, as well as robust polarization effect and path-dependent effect in dispersion regions. The determinant influential factors of sustainable international competitiveness vary with increasing competitiveness.
JOURNAL OF CLEANER PRODUCTION
(2022)
Article
Statistics & Probability
Shengjie Yue, Chaoqun Ma, Xinwei Zhao, Chao Deng
Summary: This paper investigates the pricing issue of power exchange options with default risk, taking into account the dynamics of the underlying assets and the counterparty asset as well as stochastic interest rate. The proposed model provides a closed-form solution for the price of power exchange option with default risk, and a fast Fourier transform (FFT) algorithm for quick computation. The results demonstrate the accuracy and efficiency of the FFT, and show the factors influencing the price of the option.
COMMUNICATIONS IN STATISTICS-THEORY AND METHODS
(2023)