Asymmetric economic effects via the dependence structure of green bonds and financial stress index

Τσαγκανός, Αθανάσιος; Argyropoulou, Despoina; Androulakis, G

doi:10.1016/j.jeca.2022.e00264

Cited by 10 publications

(10 citation statements)

References 28 publications

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“…These governance mechanisms are board diversity, risk management committees, foreign investors, independent directors, ownership concentration, institutional ownership, block ownership, CEO's dual roles and family ownership. In addition, Tsagkanos et al (2022) show that in contrast with financial stress theory, there is a causal relationship between green bonds and financial stress. They recommend green bonds as a corporate governance mechanism.…”

Section: Theoretical Principles and Hypothesis Developmentmentioning

confidence: 65%

The Effect of Corporate Governance Structure on Fraud and Money Laundering

Mousavi

Zimon

Salehi

et al. 2022

Risks

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This paper aims to assess the effect of corporate governance mechanisms, including board members’ and audit committee members’ characteristics, particularly their independence, expertise in terms of finance and industry and efforts on the level of fraud and money laundering (ML) in financial statements of the listed firm on the Tehran Stock Exchange. The procedure of the study is descriptive correlation based on published information from firms listed on the Tehran Stock Exchange from 2014 to 2020, using a sample of 154 firms with 1071 observations. The method used for hypothesis testing is linear regression using panel data. The Benish model is used measure the level of fraud in financial statements, and for ML, the auditors’ opinion are used. The results show that board characteristics, including independence, financial expertise, industry expertise and board effort, as well as audit committee features, such as independence, financial expertise, industry expertise and audit committee effort, have a significant and negative impact on the fraudulent financial reporting and ML. Moreover, since this paper was carried out in an emerging financial market, particularly in Iran, to figure out the effect of corporate governance structures on financial statement fraud and ML, it can provide helpful information for investors and policymakers in this regard.

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Section: Theoretical Principles and Hypothesis Developmentmentioning

confidence: 65%

The Effect of Corporate Governance Structure on Fraud and Money Laundering

Mousavi

Zimon

Salehi

et al. 2022

Risks

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“…In doing so, it extends the work of He et al. (2021), who do not consider non-energy stocks, and Tsagkanos et al. (2022), who focus on green bonds.…”

Section: Introductionmentioning

confidence: 82%

“…The transmission of financial instability to the real economy has been widely discussed in the literature (Tsagkanos et al. , 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

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The dance of dependence: a macro-perspective on financial instability and its complex influence on the Euro-American green markets

Gaies

Chaâbane

2023

JES

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PurposeThis study adopts a new macro-perspective to explore the complex and dynamic links between financial instability and the Euro-American green equity market. Its primary focus and novelty is to shed light on the non-linear and asymmetric characteristics of dependence, causality, and contagion within various time and frequency domains. Specifically, the authors scrutinize how financial instability in the U.S. and EU interacts with their respective green stock markets, while also examining the cross-impact on each other's green equity markets. The analysis is carried out over short-, medium- and long-term horizons and under different market conditions, ranging from bearish and normal to bullish.Design/methodology/approachThis study breaks new ground by employing a model-free and non-parametric approach to examine the relationship between the instability of the global financial system and the green equity market performance in the U.S. and EU. This study's methodology offers new insights into the time- and frequency-varying relationship, using wavelet coherence supplemented with quantile causality and quantile-on-quantile regression analyses. This advanced approach unveils non-linear and asymmetric causal links and characterizes their signs, effectively distinguishing between bearish, normal, and bullish market conditions, as well as short-, medium- and long-term horizons.FindingsThis study's findings reveal that financial instability has a strong negative impact on the green stock market over the medium to long term, in bullish market conditions and in times of economic and extra-economic turbulence. This implies that green stocks cannot be an effective hedge against systemic financial risk during periods of turbulence and euphoria. Moreover, the authors demonstrate that U.S. financial instability not only affects the U.S. green equity market, but also has significant spillover effects on the EU market and vice versa, indicating the existence of a Euro-American contagion mechanism. Interestingly, this study's results also reveal a positive correlation between financial instability and green equity market performance under normal market conditions, suggesting a possible feedback loop effect.Originality/valueThis study represents pioneering work in exploring the non-linear and asymmetric connections between financial instability and the Euro-American stock markets. Notably, it discerns how these interactions vary over the short, medium, and long term and under different market conditions, including bearish, normal, and bullish states. Understanding these characteristics is instrumental in shaping effective policies to achieve the Sustainable Development Goals (SDGs), including access to clean, affordable energy (SDG 7), and to preserve the stability of the international financial system.

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“…Researchers proposed an interesting model for analyzing structural changes in an open economy, oriented on the export of raw materials; some aspects of this model were applied in this work (Romero-Ávila, 2008;Spellman, 2013;Thorbjörnsson et al, 2015;Tsagkanos and Siriopoulos, 2015;Vad Mathiesen, 2015;Schmidt et al, 2019;Tsagkanos et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Energy stability and decarbonization in developing countries: Random Forest approach for forecasting of crude oil trade flows and macro indicators

Nyangarika

Mikhaylov

Muyeen

et al. 2022

Front. Environ. Sci.

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The paper observes the dependence of the main macroeconomic indicators in developing countries from the change in world prices for crude oil. We analyzed a system of simultaneous equations, which makes it possible to verify some of these hypotheses, and developed the model to forecast the impact of oil prices on budget revenues. The practical significance of this work lies in the structuring of existing knowledge on the impact of oil crisis. The results of this work can be considered confirmation of the hypothesis of the sensitivity of U.S. macroeconomic indicators to the dynamics of oil prices. Outcomes assume stable growth even in the period of shock prices for oil, which is confirmed by the statistics that were used in the model. Deep decarbonization modeling is a trend in industrial facilities that are used by developing countries. The major challenge is the issue of availability that is applicable to the countries that want to utilize this facility in their communities. Industrial modeling toward decarbonization is now a developing mechanism to curb the growing issue of atmospheric pollution. This paper proves the relevance of promoting deep decarbonization applied by the developing countries.

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Asymmetric economic effects via the dependence structure of green bonds and financial stress index

Cited by 10 publications

References 28 publications

The Effect of Corporate Governance Structure on Fraud and Money Laundering

The Effect of Corporate Governance Structure on Fraud and Money Laundering

The dance of dependence: a macro-perspective on financial instability and its complex influence on the Euro-American green markets

Energy stability and decarbonization in developing countries: Random Forest approach for forecasting of crude oil trade flows and macro indicators

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