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This study aims to develop a novel approach for predicting default risk in bancassurance, which plays a crucial role in the relationship between interest rates in banks and premium rates in insurance companies. The proposed method aims to improve default risk predictions and assist with client segmentation in the banking system.

This research introduces the group method of data handling (GMDH) technique and a diversified classifier ensemble based on GMDH (dce-GMDH) for predicting default risk. The data set comprises information from 30,000 credit card clients of a large bank in Taiwan, with the output variable being a dummy variable distinguishing between default risk (0) and non-default risk (1), whereas the input variables comprise 23 distinct features characterizing each customer.

The results of this study show promising outcomes, highlighting the usefulness of the proposed technique for bancassurance and client segmentation. Remarkably, the dce-GMDH model consistently outperforms the conventional GMDH model, demonstrating its superiority in predicting default risk based on various error criteria.

This study presents a unique approach to predicting default risk in bancassurance by using the GMDH and dce-GMDH neural network models. The proposed method offers a valuable contribution to the field by showcasing improved accuracy and enhanced applicability within the banking sector, offering valuable insights and potential avenues for further exploration.

In 2018, the International Financial Reporting Standard 9-Financial Instruments became mandatory, effectively changing the underlying accounting principles of financial instruments. This paper systematically reviews the academic literature on the implementation effects of IFRS 9, providing a coherent picture of the state of the empirical literature on IFRS 9.

The study thrives on a systematic review approach by analyzing existing academic studies along the following three broad categories: adoption and implementation, impact on financial reporting, and risk management and provisioning. The study concludes by providing research prospects to fill the identified gaps.

We document data-related issues, forecasting uncertainties and the interaction of IFRS 9 with other regulatory standards as implementation challenges encountered. Also, we observe cross-country heterogeneity in reporting quality. Furthermore, contrary to pre-implementation expectations, we find improvement in risk management. This suggests that despite the complexities of the new regulatory standard on financial instruments, it appears to be more successful in achieving the intended objective of enhancing better market discipline and transparency rather than being a regulatory overreach.

As the literature on IFRS 9 is burgeoning, we provide state-of-the-art guidance and direction for researchers with a keen interest in the economic significance and implications of IFRS 9 adoption. The study identifies gaps in the literature that require further research, specifically, IFRS 9 adoption and firm’s hedging activities, IFRS 9 implications on non-financial firms. Lastly, existing studies are mostly focused on Europe and underscore the need for more research in under-researched jurisdictions, particularly in Asia and Africa. Also, to standard setters, policymakers and practitioners, we provide some insight to aid the formulation and application of standards.

The blue and green firms are notable contributors to sustainable development. Similar to other businesses in circular economies, blue and green firms also face financing constraints. This paper aims to assess whether blue and green lending help in optimizing the interest rate spreads and the likelihood of default.

This analysis is based on an unbalanced panel of banks from 20 eurozone countries for eleven years between 2012 and 2022. The key indicators of banking include interest rate spread and a market-based probability of default. The paper assesses how these indicators are influenced by exposure to green and blue firms after controlling for several exogenous factors.

The results show a positive relationship between green and blue lending and spread, while there is a negative link with the probability of default. This confirms that the blue and green exposure positively supports the credit portfolio both in terms of profitability and risk management.

The banking system is among the key contributors to corporate finance and to enable continuous access to sustainable finance, the banking firms must be incentivized. While many studies analyze the impact of green lending, to the best of the authors’ knowledge, this study is among the very few that extend this analysis to blue economy firms.

This research paper aims to investigate reinforced concrete (RC) walls' behaviour under fire and identify the thermal and mechanical factors that affect their performance.

A three-dimensional (3D) finite element (FE) model is developed to predict the response of RC walls under fire and is validated through experimental tests on RC wall specimens subjected to fire conditions. The numerical model incorporates temperature-dependent properties of the constituent materials. Moreover, the validated model was used in a parametric study to inspect the effect of the fire scenario, reinforcement concrete cover, reinforcement ratio and configuration, and wall thickness on the thermal and structural behaviour of the walls subjected to fire.

The developed 3D FE model successfully predicted the response of experimentally tested RC walls under fire conditions. Results showed that the fire resistance of the walls was highly compromised under hydrocarbon fire. In addition, the minimum wall thickness specified by EC2 may not be sufficient to achieve the desired fire resistance under considered fire scenarios.

There is limited research on the performance of RC walls exposed to fire scenarios. The study contributed to the current state-of-the-art research on the behaviour of RC walls of different concrete types exposed to fire loading, and it also identified the factors affecting the fire resistance of RC walls. This guides the consideration and optimisation of design parameters to improve RC walls performance in the event of a fire.

This study examines how assurors make sense of sustainability assurance (SA) work and how interactions with assurance team members and clients shape assurors’ sensemaking and their actual SA work.

To obtain detailed accounts of how SA work occurs on the ground, this study explores three SA engagements by interviewing the main actors involved, both at the client firms and at their Big Four assurance providers.

Individual assurors’ (i.e. partners and other team members) sensemaking of SA work results in the crafting of their logics of action (LoAs), that is, their meanings about the objectives of SA work and how to conduct it. Without organizational socialization, team members may not arrive at shared meanings and deviate from the team-wide assurance approach. To fulfill their objectives for SA work, assurors may engage in socialization with clients or assume a temporary role. Yet, the role negotiations taking place in the shadows of the scope negotiations determine their default role during the engagement.

Two options are available to help SA statement users gauge the relevance of SA work: either displaying the SA work performed or making it more uniform.

This study theoretically grounds how assurors make sense of SA work and documents how (the lack of) professional socialization, organizational socialization and socialization of frequent interaction partners at the client shape actual SA work. Thereby, it unravels the SA work concealed behind SA statements.

Even though it is widely used, reinforced concrete (RC) is susceptible to damage from various environmental factors. The hazard of a fire attack is particularly severe because it may cause the whole structure to collapse. Furthermore, repairing and strengthening existing structures with high-performance concrete (HPC) has become essential from both technical and financial points of view. In particular, studying the postfire behavior of HPC with normal strength concrete substrate requires experimental and numerical investigations. Accordingly, this study aims to numerically investigate the post-fire behavior of reinforced composite RC slabs.

Consequently, in this study, a numerical analysis was carried out to ascertain the flexural behavior of simply supported RC slabs strengthened with HPC and exposed to a particularly high temperature of 600°C for 2 h. This behavior was investigated and analyzed in the presence of a number of parameters, such as HPC types (fiber-reinforced, 0.5% steel, polypropylene fibers [PPF], hybrid fibers), strengthening side (tension or compression), strengthening layer thickness, slab thickness, boundary conditions, reinforcement ratio and yield strength of reinforcement.

The results showed that traction-separation and full-bond models can achieve accuracy compared with experimental results. Also, the fiber type significantly affects the postfire performance of RC slab strengthened with HPC, where the inclusion of hybrid fiber recorded the highest ultimate load. While adding PPF to HPC showed a rapid decrease in the load-deflection curve after reaching the ultimate load.

The proposed model accurately predicted the thermomechanical behavior of RC slabs strengthened with HPC after being exposed to the fire regarding load-deflection response, crack pattern and failure mode. Moreover, the considered independent parametric variables significantly affect the composite slabs’ behavior.

This study aims to investigate whether various types of risks faced by the publicly listed commercial banks of India and Bangladesh are driven by market power and provides comparative insights from both economies.

By using the adjusted Lerner index to gauge bank market power and applying the generalised methods of moments (GMM) regression approach, the research delved into the relationship between bank market power and three distinct facets of risk across a sample of 26 publicly listed commercial banks in India and 22 listed banks in Bangladesh spanning from 2011 to 2022.

The results indicate that for Bangladesh, both “competition fragility” and “competition stability” viewpoints coexist simultaneously across all risk types, supporting a nonlinear relationship between market power and risk. However, in the Indian context, a nonlinear association exists only in the case of credit risk, while the relationship with insolvency risk is linear, substantiating the “competition fragility view”. Apart from market power and bank-specific variables, GDP growth rate has emerged as a prominent driver across all risk categories in both countries.

The filtration of banks is a limitation that might have influenced the outcomes. This study recommends that the Reserve Bank of India encourages further bank consolidation. Along the same line, Bangladesh Bank should closely oversee the growing competitive landscape. Furthermore, the regulators must monitor the elevated levels of non-performing loans to reduce credit risk so as to bolster the stability of their respective banking sectors.

This comparative study is the first attempt to analyse the market power and risk relationship and includes a novel bank-specific variable, i.e. technology, apart from other established variables.

Throughout the 21st century, US households have experienced unprecedented levels of leverage. This dynamic has been exacerbated by income shortfalls during the COVID-19 crisis. Leveraging and deleveraging decisions affect household consumption. This study investigates the effect of the dynamics of household leverage and consumption on the stock market.

The authors explore the relation between household leverage and consumption in the context of the consumption capital asset pricing model (CCAPM). The authors test the model's implication that leverage has a negative risk premium by transforming the asset pricing restriction into an unconditional linear factor model and estimate the model using the general method of moments procedure. The authors run time-series regressions to estimate individual stocks' exposures to leverage, and cross-sectional regressions to investigate the leverage risk premium.

The authors show that shocks to household debt have strong and lasting effects on consumption growth. The authors extend the CCAPM to accommodate this effect and find, using various test assets, a negative risk premium associated with household deleveraging. Looking at individual stocks the authors show that the deleveraging risk premium is not explained by well-known risk factors.

This paper contributes to the literature on the role of leverage in economics and finance by establishing a relation between household leverage and spending decisions. The authors provide novel evidence that households' leveraging and deleveraging decisions can be a fundamental and influential force in determining asset prices. Further, this paper argues that household leverage might explain the small, persistent, and predictable component in consumption growth hypothesised in the long-run risk asset pricing literature.

The purpose of this paper is to construct an index for systemic risk in China.

This paper develops a systemic risk index for China (SRIC) using textual information from 26 leading newspapers in China. Our index measures the systematic risk from 21 topics relating to China’s economy and provides narratives of the sources of systemic risk.

SRIC effectively predicts changes in GDP, aggregate financing to the real economy and the purchasing managers’ index. Moreover, SRIC explains several other commonly used macroeconomic indicators. Our risk measure provides a helpful monitoring tool for policymakers to manage systemic risk.

The paper construct an index of systemic risk based on the information extracted from newspaper articles. This approach is new to the literature.

This study focused on identifying critical factors governing the fire response of prestressed hollow-core slabs. The hollow-core slabs used as flooring units can be subjected to elevated temperatures during a fire. The fire response of prestressed hollow-core slabs is required to develop slabs with greater fire endurance. The present study aims to determine the extent to which the hollow-core slab can sustain load during a fire without undergoing progressive collapse under extreme fire and heating scenarios.

A finite element model was generated to predict the fire response of prestressed hollow core slabs under elevated temperatures. The accuracy of the model was predicted by examining thermal and structural responses through coupled temperature displacement analysis. A sensitivity analysis was performed to study the effects of concrete properties on prediction of system response. A parametric study was conducted by varying the thickness of the slab, fire and heating scenarios.

Thermal conductivity and specific heat of concrete were determined as sensitive parameters. The thickness of the slab was identified as a critical factor at a higher load level. Asymmetric heating of the slab resulted in higher fire resistance compared with symmetric heating.

This is the first study focused on studying the effect of modeling uncertainties on the system response by sensitivity analysis under elevated temperatures. The developed model with a parametric study helps in identifying critical factors for design purposes.