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1 – 10 of 321Yunshil Cha, Catherine Plante and Linda Ragland
In this study, we examine regulated public accessibility to municipalities’ financial reports and bond interest cost. In particular, we examine whether there is information…
Abstract
Purpose
In this study, we examine regulated public accessibility to municipalities’ financial reports and bond interest cost. In particular, we examine whether there is information content in a component of a constrained filing period that is useful to municipal bond market participants. The component of a filing period that we focus on is the period of time between an audit report date and a regulated public accessibility date.
Design/methodology/approach
To explore our research question, we collect a sample of observations from municipalities that: (1) are required to post annual/audit financial reports on a centralized state-level repository that includes a “transparent” date stamp on when reports are made publicly available and (2) have issued general obligation bonds. Our sample is limited to one observation per municipality. The sample period is 2006–2019. In terms of approach, we use an ordinary least square (OLS) regression model to empirically test whether the time period between municipalities’ audit report date and state-required repository filing date is associated with general obligation bond interest cost.
Findings
We find support for the idea that there is information content in a component of a constrained filing period. In particular, we hypothesize and find a positive association between the time period between an audit report date and a state filing date and general obligation bond interest cost. Seemingly, this component of time may provide something unique or not available in other components of a constrained filing period (e.g. the fiscal year-end date to the audit report date). In post hoc analyses, we also find that both components of the constrained filing period in our setting (i.e. the audit report date to state filing date and the fiscal year-end date to audit report date) need to be considered for either of the components to be significant. Moreover, although both components are necessary, the audit report date to state filing date component appears to have a slightly stronger association (in terms of statistical significance) with general obligation bond interest costs.
Research limitations/implications
To our knowledge, Illinois is the only state that provides a date stamp on when municipalities’ financial information is made publicly available on a centralized repository. As such we focus on municipalities in Illinois. While this increases the internal validity of our research, it potentially limits generalizability across other states. Also, as a reflection of the sample constraint, the number of observations in our study is relatively small. As part of post hoc analyses, we take a closer look at our sample, model and variables used to test our hypothesis.
Practical implications
For stakeholders, each component of a constrained filing period may provide unique information. For example, the time period between an audit report date and a regulated filing date may send a positive signal about the quality of financial management to investors. For regulators, requiring some sort of centralized public access to municipal financial reports that have transparent time constraints may help states provide stronger governance and help lower municipalities’ borrowing costs.
Originality/value
We use a novel approach (with the Illinois date stamp filing information) to examine our research question. Most prior research has often relied on an assumption that the time between fiscal year-end and the audit report date is the component of time that provides useful information to investors (e.g. Henke and Maher, 2016). In our setting, we explore and find that a component of a constrained filing time period (i.e. the date from an audit filing to a required public accessibility filing) may also provide impactful information to investors.
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Thereza Raquel Sales de Aguiar, Shamima Haque and Laura McCann
This study aims to investigate climate finance literature to understand whether and how research in this area is explored from an accounting perspective.
Abstract
Purpose
This study aims to investigate climate finance literature to understand whether and how research in this area is explored from an accounting perspective.
Design/methodology/approach
This study conducts a meta-analysis and narrative review of climate finance.
Findings
The issue of climate finance has received increasing attention in recent years because of international negotiations on climate change. The volume of literature examining climate finance has grown, particularly from a finance perspective. The literature analysed is diverse, using unique methodological and theoretical differences and providing insights into the effectiveness of policies and the impact of climate finance on capital markets, economic growth and the green economy. However, in spite of growing concerns regarding the accounting and reporting issues in climate finance, little attention has been paid to this topic from an accounting, accountability, audit or corporate disclosure perspective.
Originality/value
This study contributes to climate finance research by integrating insights from a dispersed and emerging body of literature by conducting meta-analysis and narrative review. Meta-analysis enables us to map the development of this specific literature and how it has changed over the years, whereas a narrative review serves as a basis for identifying research gaps and developing avenues for future research in accounting, accountability, audit and corporate disclosure.
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Chengli Zheng, Jiayu Jin and Liyan Han
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond…
Abstract
Purpose
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond option pricing model.
Design/methodology/approach
Describing the asset value behavior of green bond issuing enterprises through diffusion-jump processes to reflect the uncertainty brought by carbon emission reduction policies and technologies, using approximation methods to get the analytical pricing formula and then, using a fuzzification technique of Choquet expectation under λ-additive fuzzy measures after considering fuzzy factors, the paper provides fuzzy intervals for the parity coupon rates of green bonds with different subjective levels for investors.
Findings
The paper proposes and argues the classical and fuzzy option pricing methods in turn for both corporate ordinary bonds and green bonds, considering carbon risk or climate risk. It implements the scenario analysis varying with industry emission standards and discusses the sensitiveness of the related key parameters of the option.
Practical implications
The fuzzy option pricing for the green bonds provides the scope of the variable equilibrium values, operational theoretical supports and some policy implications of carbon reduction and promoting green funding.
Originality/value
The logic of introducing the fuzziness of the option pricing for the green bonds lies with considering the existence of fuzzy information about the project supported by the green bond and the subjectivity of investors and it also responds to changes in technological uncertainty and policy uncertainty in the process of “carbon peaking and carbon neutrality.”
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Mohamed Hessian, Alaa Mansour Zalata and Khaled Hussainey
This study examines the effect of non-audit fees (NAF) provisions on interest payments classification shifting. In addition, we investigate to what extent the NAF economic bonding…
Abstract
Purpose
This study examines the effect of non-audit fees (NAF) provisions on interest payments classification shifting. In addition, we investigate to what extent the NAF economic bonding and interest payments classification shifting is contingent on internal governance and firm financial well-being.
Design/methodology/approach
This study employed probit regression using a sample of UK non-financial firms indexed in FT UK (500) over the period from 2009 to 2017.
Findings
We find evidence that the economic bonding of NAF between external auditors and their clients is more likely to encourage managers in UK firms to manipulate operating cash flows through interest payment classification shifting. In addition, and interestingly, our results evince that classification-shifting may be the less costly and soft choice of managers in firms with strong governance and charging higher NAF. Furthermore, we show that financially distressed firms associated with their auditors in purchasing non-audit services are more prone to attempting to manipulate and engage in interest payments classification-shifting. Our result did not provide a significant effect of external auditor tenure on the interest payments classification shifting.
Research limitations/implications
Our findings are subject to the following limitations: First, this study uses a composite index to measure the quality of internal corporate governance. It focuses only on the board of directors, but this index does not reflect other internal governance mechanisms. Second, this study is subject to limited study time due to the implementation of key IFRS standards (IFRS 9 Financial Instruments and IFRS 15 Revenue from Contract with Customers) from 2018–2019.
Practical implications
This study was motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 audit firms to move more audit time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAF that are potentially useful to regulators, shareholders and investors.
Originality/value
It is motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 to move more audit firm time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAS that are potentially useful to regulators, shareholders and investors.
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Consumers send billions of messages with high ephemerality each day, yet the effects of this type of communication are relatively unknown. Online ephemeral communication refers to…
Abstract
Purpose
Consumers send billions of messages with high ephemerality each day, yet the effects of this type of communication are relatively unknown. Online ephemeral communication refers to sending and receiving information with a predetermined, finite lifespan in computer-mediated environments. The purpose of this paper is to conceptually understand online marketing communications with high ephemerality relative to messages with low ephemerality within a consumer’s goal system.
Design/methodology/approach
This paper is an attempt to conceptually understand how high ephemerality differs from low ephemerality, particularly as online ephemeral communication has emerged and is widely used by consumers and firms. Goal systems theory is applied to understand how ephemerality is a means for consumers to reach their communication goals.
Findings
Consumers are more likely to use messages with high ephemerality to impress with narrowly relevant content, regulate emotions, build social relationships, persuade others through peripheral cues and protect privacy, but messages with high ephemerality are less likely to help consumers manage their impression, acquire or share useful information or present strong arguments. It is also proposed that messages with high ephemerality can help marketers increase interest through frequent peripheral cues, including fun and friendly content, drive sales by creating a sense of urgency and increase loyalty, but are less likely to increase awareness, build interest through flattering or informative content or drive sales through transactional messages.
Research limitations/implications
This study primarily advances the goal systems literature by introducing ephemerality. The defining feature of ephemerality, lifespan, also has research implications for studies of word-of-mouth marketing. The propositions in this study are ready for empirical investigation as to when consumers and firms choose to send messages with low or high ephemerality.
Practical implications
Firms need to understand how consumers are using messages sent with low and high ephemerality in order for firms to best move consumers through the sales funnel.
Originality/value
To the best of the author’s knowledge, this is the first paper to differentiate messages with low and high ephemerality, identify the presence and effects of ephemerality in offline and online communication and explain how and why sending messages with low or high ephemerality can help consumers and firms reach their communication goals. There is only one other paper in marketing on ephemerality in online marketing communications and no other conceptual work.
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We investigate connections between the development of Fintech and the blue economy from September 14th, 2020, to August 11th, 2023.
Abstract
Purpose
We investigate connections between the development of Fintech and the blue economy from September 14th, 2020, to August 11th, 2023.
Design/methodology/approach
In this research, we use a cutting-edge model-free connectedness approach to investigate the relationships between FinTech and blue bond volatility. Our work is the first to investigate the effects of unknown events, such as the COVID-19 pandemic and Ukraine–Russia conflicts, on the interconnection of volatility derived from FinTech development and blue bond volatility.
Findings
Our results highlight the two-way relationship between the development of Fintech and the blue economy during our sample period. The net total connectedness shows that the blue economy index is a net shock receiver, especially in late 2021 and the second half of 2022, while most of the fintech indexes in our sample are mainly net shock transmitters. The Ukraine–Russia tension threatens the development of a sustainable blue economy. The development of Fintech plays an important role in promoting the blue economy.
Practical implications
Our results have important policy implications for investors and governments, as well as methods from the spillovers across the various indicators and their interconnections. Sharp information on the primary contagions among these indicators aids politicians in designing the most appropriate policies.
Originality/value
Our paper contributes to the literature in at least four ways. First, as previously stated, our article is the first to investigate the relationship between FinTech and blue bond volatility. Second, this study presented a framework for studying volatility interconnections between distinct variables that is more suited to analyzing these interconnections. In this research, we use a cutting-edge model-free connectedness approach to investigate the relationships between FinTech and blue bond volatility. Third, our work is the first to investigate the effects of unknown events such as the COVID-19 pandemic and Ukraine–Russia conflicts on the interconnection of volatility deriving from FinTech development and blue bond volatility. Lastly, our research provides a daily dataset for the BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF to analyze 50 businesses from various markets that are at the forefront of the responsible application of ocean resources and other ESG standards. The Global X FinTech ETF (FINX) and the ARK FinTech Innovation ETF (ARKF) seek exposure to companies developing financial technology innovations. The development sectors include insurance, investment, fundraising and third-party lending by utilizing cutting-edge mobile and digital technologies. Our time series runs from September 14th, 2020, to August 11th, 2023. By using this database, we provide a comprehensive analysis of the link between the volatilities arising from various markets.
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Burak Pirgaip and Ozgur Arslan-Ayaydin
This study aims to fill a gap in the literature by providing evidence for a “greenium” in the primary Sukuk market. The term “greenium” is defined in the study as the lower cost…
Abstract
Purpose
This study aims to fill a gap in the literature by providing evidence for a “greenium” in the primary Sukuk market. The term “greenium” is defined in the study as the lower cost of capital or reduced yields that green Sukuk may offer compared to non-green Sukuk, reflecting investor willingness to accept lower returns for green investments. Therefore, the main aim of this study is to investigate the potential role of “greenium” as an incentive for issuers to fund eco-friendly projects, contributing to a sustainable environment.
Design/methodology/approach
This study uses propensity score matching techniques to provide an accurate comparison of pricing differences between green and non-green Sukuk issued in global primary markets during the period 2017–2022.
Findings
The results reveal that green Sukuk signify a “greenium” effect. This suggests that investors find green Sukuk attractive, willing to accept lower returns. Given the positive investor response to green initiatives in the market, issuers can capitalize on the growing demand for green Sukuk, leading to low-cost funding.
Originality/value
This study makes an important contribution to the literature at the interface of Islamic finance and environmental sustainability. In particular, it stands out by focusing on the pricing dynamics in the green Sukuk market and highlights the potential benefits of issuing green Sukuk to help achieve sustainability goals while providing access to lower cost of capital for the transition to a low-carbon economy.
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Ameena Arshad, Shagufta Parveen and Faisal Nawaz Mir
The global economy is growing very fast, and it is also facing environmental challenges. Due to increased economic activities, global warming is rising as a result of greenhouse…
Abstract
Purpose
The global economy is growing very fast, and it is also facing environmental challenges. Due to increased economic activities, global warming is rising as a result of greenhouse gas emissions. Concepts like green finance and green investments are emerging to battle climate issues. The present study empirically examines the impact of green bonds on carbon dioxide (CO2) emissions in developing countries, as these countries are producing 63% of CO2 emissions around the globe.
Design/methodology/approach
To check this impact, pooled ordinary least squares (OLS), fixed effect and generalized method of moments (GMM) techniques are applied using the annual data of 65 developing countries from 2008 through 2021.
Findings
The results indicate that the overall effect of green bonds on CO2 emissions is negative, as more issuance of green bonds reduces CO2 emissions, confirming results from the existing empirical literature. The study found that more foreign direct investment (FDI) and urbanization lead to more CO2 emissions, while increase in trade openness helps reduce CO2 emissions. It was found that promoting green bonds will help to promote environmentally friendly projects that will help to reduce CO2 emissions. Rapid urbanization has led to more energy demand for various industries like manufacturing, transportation and residential sectors, which leads to more CO2 emissions.
Practical implications
The policymakers in these countries should make policies that help in reducing carbon emission by increasing green bonds and FDI in supporting projects that are environmentally friendly. Therefore, to mitigate such current and future issues, policymakers in developing countries need to give serious attention to this area to fulfill sustainable development goals.
Originality/value
This study presents a pioneering examination of green bonds and CO2 emissions in 65 lower- and middle-income countries (developing countries). We have tried to cover all developing countries that are causing more greenhouse gas emissions and need to shift to green finance strategies. It will be a contribution to the body of knowledge regarding the role of green bonds in reducing CO2 emissions. The present study will help in assessing the importance of green bonds in bringing low-carbon economies.
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Mohammad A. Gharaibeh and Jürgen Wilde
The purpose of this paper is to investigate the thermomechanical response of four well-known lead-free die attach materials: sintered silver, sintered nano-copper particles…
Abstract
Purpose
The purpose of this paper is to investigate the thermomechanical response of four well-known lead-free die attach materials: sintered silver, sintered nano-copper particles, gold-tin solders and silver-tin transient liquid phase (TLP) bonds.
Design/methodology/approach
This examination is conducted through finite element analysis. The mechanical properties of all die attach systems, including elastic and Anand creep parameters, are obtained from relevant literature and incorporated into the numerical analysis. Consequently, the bond stress-strain relationships, stored inelastic strain energies and equivalent plastic strains are thoroughly examined.
Findings
The results indicate that silver-tin TLP bonds are prone to exhibiting higher inelastic strain energy densities, while sintered silver and copper interconnects tend to possess higher levels of plastic strains and deformations. This suggests a higher susceptibility to damage in these metallic die attachments. On the other hand, the more expensive gold-based solders exhibit lower inelastic strain energy densities and plastic strains, implying an improved fatigue performance compared to other bonding configurations.
Originality/value
The utilization of different metallic material systems as die attachments in power electronics necessitates a comprehensive understanding of their thermomechanical behavior. Therefore, the results of the present paper can be useful in the die attach material selection in power electronics.
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Pawan Kumar, Sanjay Taneja and Ercan Ozen
The purpose of this study to brought new dimensions by inserting market conditions and investor sentiments as independent variable measure their impact on government policy…
Abstract
Purpose
The purpose of this study to brought new dimensions by inserting market conditions and investor sentiments as independent variable measure their impact on government policy formulation and sustainable development. This research also measures the moderating effective stakeholder engagement. Previous research has focused on demystifying the relationship between green bonds and sustainable development.
Design/methodology/approach
The analysis part of the research is initiated by factor analysis on the sample size of 100. After the construction of appropriate statements matching the research objective, it was circulated to the respondents of northern region of India. The sampling technique was random in nature through which data analysis on 700 respondents was done. For meeting research objectives present research applies PLS algorithm on the conceptual model framed through review of literature.
Findings
Out of all independent variables green bond issuance is having statistically significant impact on government policy formulation and investors’ sentiment is having statistically significant impact on sustainable development. Rest all other pairs are statistically insignificant. For an investor, it is necessary to understand that how its sentiments impacts government policy formulation and the health of ecology.
Practical implications
The research produced results with management implications for practitioners and policy makers that are very significant to the fields of sustainability, green finance and environmental policy. Green bonds also influence government policy, illustrating how green financing may revolutionize environmental laws and regulations.
Social implications
The social implications of this revelation are considerable. The research enhances knowledge about sustainable development by emphasizing the importance of green bonds in supporting environmentally friendly activities. It allows for transparent reporting, increasing social accountability and reputation while attracting environmentally conscious consumers and fostering community trust. According to the survey, investor sentiment and their enthusiasm for eco-friendly investments may push more money to efforts that are good for society and the environment. This study enhances consciousness about sustainable finance, which has the potential to inspire beneficial social shifts towards a more environmentally and socially equitable future.
Originality/value
These social ramifications manifest themselves in various socioeconomic and environmental issues of the society in addition to credit and public policy. Second, it is evident that green bond emissions are influencing government policy, demonstrating the power of financial instruments to encourage environmentally beneficial social outcomes by providing officials with an incentive to modify environmental regulations.
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