Value Of Assets Research Articles

The impact of institutionalized representation: creditors' committees and the resolution of corporate liquidation bankruptcies

We utilize micro-level data on corporate liquidation bankruptcies in Slovenia to conduct the first systematic quantitative investigation of the impact of creditors' committees (CCs) on liquidation bankruptcy outcomes. Slovenian law permits, but does not mandate, the establishment of a CC in liquidation bankruptcy proceedings, ensuring variation in CC incidence across cases. To address the non-random formation of CCs, we use propensity score matching and employ a rich set of covariates. Our findings reveal that CCs boost the liquidation value of bankrupt debtors' assets, thereby facilitating recovery, particularly for priority and ordinary unsecured creditors. Additionally, CCs elevate the overall rate of creditors' recovery relative to the value of liquidated assets. However, CCs also prolong the duration of proceedings and increase the likelihood of litigation. Our analysis thus underscores the multifaceted nature of the effect of institutionalized creditor representation on the efficacy of liquidation bankruptcy proceedings.

Impact of Financial Intermediation and Regulatory Frameworks on Financial Deepening and Economic Growth: Insights from Lesotho

Purpose: The purpose of this study is to analyse the impact of financial intermediation and regulatory frameworks on financial deepening and economic growth in Lesotho, utilizing data from 2003 to 2022. The objective is to explore the relationships between selected financial and economic indicators and assessing their influence on financial deepening. Methodology: This study utilized secondary time series data, which poses challenges regarding authenticity and reliability since it was collected by external parties. However, these concerns were addressed by using data from reputable global agencies like the IMF, World Bank, and the Central Bank of Lesotho’s annual report from 2003 to 2022. The analysis was conducted using the Ordinary Least Squares (OLS) regression method. Findings: The findings highlight the complex role of financial intermediation and regulatory frameworks in shaping financial deepening and economic growth. Higher cash reserve ratios and treasury bill rates negatively affect financial deepening by reducing liquidity and increasing credit costs. However, increased commercial bank deposits with the central bank positively contribute to financial stability and deepening. Moderate inflation also fosters financial deepening by raising the nominal value of financial assets. While ATMs per capita enhance financial access and growth, an increase in bank branches per capita shows inefficiencies, underscoring the need for effective infrastructure and service delivery. Unique Contribution to Theory, Policy and Practice: The study suggests that policymakers should adjust cash reserve requirements, monitor credit expansion to avoid over-lending, and improve banking infrastructure. It highlights the need for careful interest rate management and promoting financial innovation to enhance market depth.

HANZE v2.1: an improved database of flood impacts in Europe from 1870 to 2020

Abstract. Assessing long-term trends in flood losses and attributing them to climatic and socioeconomic changes requires comprehensive and systematic collection of historical information. Here, we present flood impact data for Europe that are part of the HANZE (Historical Analysis of Natural HaZards) database. The dataset covers riverine, pluvial, coastal, and compound floods that have occurred in 42 European countries between 1870 and 2020. The data were obtained by extensive data collection from more than 800 sources ranging from news reports through government databases to scientific papers. The dataset includes 2521 events characterized by at least one impact statistic: area inundated, fatalities, persons affected. or economic loss. Economic losses are presented both in the original currencies and price levels and with the inflation and exchange rate adjusted to the 2020 value of the euro. The spatial footprint of affected areas is consistently recorded using more than 1400 subnational units corresponding, with minor exceptions, to the European Union's Nomenclature of Territorial Units for Statistics (NUTS) level 3. Daily start and end dates, information on causes of the events, notes on data quality issues or associated non-flood impacts, and full bibliography of each record supplement the dataset. Apart from the possibility of downloading the data (https://doi.org/10.5281/zenodo.8410025; Paprotny, 2023a), the database can be viewed, filtered, and visualized online at https://naturalhazards.eu (last access: 4 November 2024). The dataset is designed to be complementary to HANZE-Exposure, a high-resolution model of historical exposure changes (such as population and asset values) and be easily usable in statistical and spatial analyses, including multi-hazard studies.

Adaptation to climate variability and household welfare outcomes in Uganda

Over the last one decade, most of the empirical studies on climate variability have largely concentrated on assessing the effect of climate variability on agriculture. Little attention has been given to the analysis of what factors determine the decision to adapt to climate variability and what impact does it has on welfare of the adapting households. This paper therefore, assesses the determinants of adaptation to climate variability and how it influences welfare of the farming households in Uganda. To achieve this, the study utilizes six waves of Uganda National Panel survey collected by Uganda Bureau of Statistics spanning over a period of 10 years from 2009 to 2019 and the switching regression model for empirical analysis. The findings indicate that adapting to climate variability is beneficial to adaptors as it safeguards welfare deterioration. On the other hand, presence of climate variability, age of the household head, the value of household assets, location, formal land ownership, having main occupation as agriculture and availability of extension services were identified as key determinants of the decision to adapt to climate variability among farming households in Uganda. These findings thus highlight the importance to have measures to improve adaptation process at the same time enhancing household welfare.

The CAPM: Exploring its Empirical Evidence on NSE Nifty-From the Period 2008 to 2023

The issue of forecasting or predicting asset returns is fundamental to financial economics and most often the Capital Asset Pricing Model (CAPM) is adopted for estimating the expected rate of return based on systematic risk. This paper focuses on the empirical testing of the CAPM in the Indian market based on the Nifty 50 index from April 2008 to March 2023, which covers the period of the COVID-19 pandemic, the Goods and Services Tax (GST) reforms and demonetisation. In the context of this study, Lintner, Miller and Scholes, Black, Jensen and Scholes tests are used with a new dataset to examine the CAPM. This study examines the empirical validity of the CAPM in the context of the Indian market, more specifically the Nifty 50 index, during a period of significant economic change. Thus, the analysis is centred around the interaction of systematic risk, residual variance and average returns. The study identifies a positive but non-significant relationship between average returns with systematic risk and a slightly higher risk-free return compared to that of Lintner. The variance of residuals also helps to explain average returns, while at the same time, actual returns are higher than market returns. The findings of the current study partially support Lintner, Miller and Scholes’ earlier work while not supporting Black, Jensen and Scholes’(BJS) conclusions. In the context of the BJS methodology, 38 per cent of the securities have significant non-zero alphas, which means CAPM does not operate perfectly in the Indian market. The findings that alphas are non-zero indicate the inefficiency of the National Stock Exchange (Nifty 50), therefore, the need for regulation by agencies such as the Securities and Exchange Board of India (SEBI) arises. Equity analysts and portfolio managers must not only use CAPM for asset valuation blindly without appreciating its empirical flaws. This paper revisits the CAPM with recent data thus enriching the limited literature on the CAPM in the Indian scenario where CAPM has however a very restricted application in explaining asset returns in the context of the Nifty 50.

Will fighting climate change affect commercial banks? A carbon tax policy simulation

Policies implemented to address climate change, especially carbon tax policies, have profound impacts on risk management and credit losses in the financial system. Existing research suggests that climate risks may lead to high‑carbon-emission companies facing asset stranding and credit downgrades; however, their specific effects on credit losses in the banking system have not been thoroughly elucidated. This study uses data from 21 listed Chinese commercial banks and 3163 firms for 2020, applying climate stress-testing to construct 16 carbon tax scenarios. These scenarios simulate the effects of a carbon tax on firms' asset values and financial stability and estimate the potential transmission of these effects to credit losses in Chinese commercial banks. Our findings reveal that introducing a carbon tax significantly increases bank credit losses, with credit losses escalating exponentially as tax rates increase. State-owned commercial banks experience the highest losses, followed by joint-stock and city banks. The primary contributors to these credit losses are high‑carbon industries such as electricity, manufacturing, and transportation. These findings underscore how carbon tax policies can decrease firms' asset values and thereby increase banks' credit risks, providing essential insights for policymakers designing climate policies.

Modelling of Dividend Payout Policy for Polish Public Companies

Purpose: The purpose of this research is to identify drivers of dividend payouts in energy companies listed on the Warsaw Stock Exchange (WSE) in the pre-COVID-19 pandemic decade, taking into account potential determinants such as general economic situation, company’s financial efficiency, value of assets, lagged dividend payout, earnings, ownership of the company – main shareholders and structure of statutory bodies including women presence. Design/methodology/approach: Correlation analysis and pooled regression models to determine the potential determinants of payouts are used. Firms' financial performance is reflected by selected individual financial ratios and a specially constructed vector synthetic measure VSMD. Findings: Findings reveal that dividend payouts of energy companies in Poland are irregular. Dividend payments significantly depend on firms’ financial efficiency, the size of their assets, lagged dividend payouts and ownership model, while the gender structure of statutory bodies has no impact on dividend payouts. The dividend payment decisions are implied by the current economic situation. Research limitations/implications: Limitations arise from the longitudinal sample design and data selection. Only Poland is considering with rather small WSE market, and the study concerns 9 companies described by 14 financial ratios (already selected) and set of variables for each year in 10 years timespan. Our VSMD measure needs pattern and anti-pattern which requires data from the entire market to be determined. Thus, the list of diagnostic variables cannot be simply copied for different “national” markets. Originality/value: This study contributes to research on the determinants of dividend policy. It introduces to the investigation the author's synthetic measure of firm financial efficiency. Explains dividend payments in Polish energy companies in the period 2010-2019 proposes a consistent baseline for research after the pandemic and after the war in Ukraine.

Green disguise or real action? The truth behind corporate greenwashing under stringent climate policy

Stringent climate policies have significantly impacted corporate operations and asset values, subjecting companies to increased pressure regarding environmental and social responsibilities, which may lead to the adoption of disingenuous greenwashing practices. Utilizing data from 1219 listed companies on China's A-share market from 2011 to 2022, this study investigates the relationship between stringent climate policies and corporate greenwashing behavior. The findings of this paper are as follows: First, there is a significant positive correlation between stringent climate policies and corporate greenwashing behavior, which has been validated through robustness tests; second, the impact of climate policy on corporate greenwashing exhibits heterogeneity. Enterprises located in the western and eastern regions, those with insufficient technological content, labor-intensive, and highly polluting companies have a greater incentive to engage in greenwashing activities; finally, this study confirms the transmission pathways of internal financial distress and external environmental subsidies as climate risks contributing to corporate greenwashing. This paper holds certain reference value for the government in establishing and improving mechanisms for identifying corporate greenwashing behavior, setting corporate conduct standards, and perfecting the corresponding regulatory system.

Research on the Application of Mathematics in Finance

Abstract. Mathematics is a fundamental science and a problem-solving method that plays an important role in revealing the essential laws of the development of certain things. It has rigorous logic, high abstractness, and wide applicability. This brings great difficulties to enterprises, especially high school mathematics because it involves a wide range of knowledge points and complex calculations. Among them, the formation of financial mathematics has greatly promoted the development of China's financial industry. Moreover, in solving financial problems, relevant knowledge and theories of mathematics can be used to analyze and explore financial laws, and the application effect is significant, for example, using deterministic mathematical method and nondeterministic mathematical method to solving question about financial investment and returns; building securities investment portfolio model or asset valuation model to calculating and expressing some economic models. Based on this, this article discusses the application of mathematical knowledge to several financial problems, analyzes the current problems, and looks forward to the future of financial mathematics.

Legal Certainty in the Division of Joint Property after Divorce

This study aims to analyze the legal certainty in the distribution of joint property after divorce, with an emphasis on the challenges faced in the implementation of the law in Indonesia. The division of joint property is a crucial issue in the context of divorce which often causes disputes between former spouses, where the principles of justice and equality should take precedence. In this study, a normative juridical approach is used to examine laws and regulations, legal doctrines, and court decisions related to the division of common property, with a focus on Law Number 1 of 1974 concerning Marriage and the Civil Code. The results show that despite the legal provisions governing the division of common property, its implementation is often hampered by various factors, including differences in interpretation among judges, the existence of cultural values that influence decisions, and technical obstacles in asset valuation. Variations in court decisions create legal uncertainty that not only harms one party, but also impacts the welfare of children involved in divorce. Uncertainty about the rights and obligations of each party has the potential to cause prolonged conflicts and harm all parties. As part of the analysis, the study also highlights the social and economic impact of legal uncertainty in the distribution of assets, especially for the financially weaker parties. To improve fairness and certainty in the division of common property, this study recommends the need for more detailed and uniform guidelines in court decision-making procedures, as well as harmonization between national and local regulations. Thus, it is hoped that the process of distributing joint property after divorce can be carried out in a fairer, more efficient, and transparent manner, so that the interests of all parties, especially children, can be well protected.

Analisis Financial Distress Menggunakan Metode Altman Z-Score Pada PT Sepatu Bata Tbk Periode 2021-2023

PT Sepatu Bata Tbk is one of the companies listed on the IDX which is engaged in the footwear industry and produces various types of leather shoes and sandals. The company's finances began to deteriorate in 2020, and continues to this day. In its latest financial report, Bata posted losses for four consecutive years. The research objectives to be achieved in this study are to determine the analysis of the level of bankruptcy using the Altman Z-Score method at PT Sepatu Bata Tbk for the 2021-2023 period. The analysis technique used in this study is to use the Altman Z-Score model. in 2021 a Z-Score value of 2.55 was obtained. With an assessment criterion of 1.81 < 2.55 < 2.99, which means that PT Sepatu Bata Tbk is in the gray area category. From this study, it was found that in 2022, a Z-score value of 1.64 was obtained with an assessment criterion of 1.64 < 1.81, which means that PT Sepatu Bata Tbk is in the bankrupt category. While in 2023, a Z-score value of 0.48 was obtained with an assessment criterion of 0.48 < 1.81, which means that PT Sepatu Bata Tbk is in the bankrupt category. PT Sepatu Bata Tbk in 2021 has an X1 ratio of 0.1815. In 2022 the value of the X1 ratio of PT Sepatu Bata Tbk decreased, namely 0.0121. Then in 2023 the X1 ratio value decreased again, namely -0.0847. The decrease in the X1 ratio value of PT Sepatu Bata Tbk every year is caused by the unstable value of current assets, current debt, and total assets of PT Sepatu Bata Tbk. Ratio X3 of PT Sepatu Bata Tbk in 2021 has a value of -0.297. In 2022 the X3 ratio also has a value of -0.09. In 2023 the value of the X3 ratio of PT Sepatu Bata Tbk decreased, namely -0.27. The minus value in the X3 ratio of PT Sepatu Bata is because the company suffered losses in those 3 years. From the research it can be concluded that PT Sepatu Bata Tbk for the period 2021-2023 using the Altman Z-score model, the results obtained in 2021 PT Sepatu Bata Tbk is in a gray area, which means that the company is in an unhealthy financial condition and is not bankrupt either. Meanwhile, in 2022 and 2023 PT. Sepatu Bata Tbk is in bankrupt condition, which means that the company's financial condition is not healthy

Examining the Impact of Digital Economy on Consumer Preferences in the Metaverse Era: An Empirical Study on the Role of NFTs and Tokenization in Changing Purchase Intentions

This study aims to investigate the impact of the digital economy on consumer preferences in the Metaverse era, focusing on the role of Non-Fungible Tokens (NFTs) and tokenization in changing purchase intentions. Using a mixed-methods approach, this study combines quantitative and qualitative analysis to gain a comprehensive understanding of the key determinants of consumer purchase intentions in a rapidly evolving digital context. The results of the quantitative analysis show that perceived value, trust in blockchain technology, and user experience significantly influence consumer purchase intentions towards NFTs. Qualitative analysis through in-depth interviews reveals that scarcity, digital ownership, and community involvement are the main factors driving NFT adoption, while lack of technological understanding and regulatory uncertainty are the main barriers. This study also introduces novelty through the use of machine learning-based sentiment analysis and social network analysis to explore the role of social interactions in the formation of purchase intentions. These findings make important contributions to the literature on the digital economy by offering new insights into consumer dynamics in the Metaverse and highlighting the need for marketing strategies that focus on creating community value and immersive user experiences. Practical implications of this study include the need for consumer education and clear regulations to increase NFT adoption, as well as marketing strategies that leverage the emotional value and scarcity of digital assets. This research contributes to a better understanding of consumer behavior in the digital age and offers recommendations for further research in this area.

Assessment of solvency-liquidity relationship in food and meat producing organizations

Cash flow management in commercial organizations of the production sector is one of the key problems of financial management in the post-crisis stages of the pandemic and its overcoming, which requires new solutions. This article presents practical solutions for improving financial management in the context of liquidity-solvency relationship, cash flow, and current asset valuation in six leading companies that produce food and meat products by capitalization listed on the world stock exchange and studied. Since the role of artificial intelligence is highly valued in the current period, financial management professionals have also started to use various learning forecasting models in order to increase the efficiency of their decision-making. Forecasting the capital structure in commercial organizations with an artificial intelligence model is a completely new approach in the financial management system, the main task of which is to define the preferred ratio of the components of liabilities in connection with the minimum cost of capital.

Qualifying Assets as Strategic Intellectual Potential for Innovation Development of the EAEU

It has been noted that in the legislative acts of the United States and the European Union, clauses have appeared indicating an intensification of the process of assessing qualifying assets, which has never happened in history. Naturally, this extraordinary step raises the need to identify the reasons motivating this phenomenon. A logical assumption has been made about the existence of a connection between this event and an attempt to create countermeasures on the part of the US leadership to the threat of the fall of the dollar as an international currency.Aim. Such a large-scale assessment exercise is considered from the point of view of its enormous potential economic effect and is proposed for use, but in the direction of a completely different goal — the development of proposals not only and not so much for the assessment of qualifying assets, but for the use of this assessment as a stimulus for economic growth and growth in the well-being of workers within the EAEU member countries.Tasks. Investigation of the proposed qualifying asset valuation exercise. Conducting an analysis of problems associated with the widespread practice of taking into account valuations in the authorized capital of enterprises of the EAEU member countries.Methods. A systematic approach to studying the problem of valuation and accounting of qualifying assets. Study and analysis of many years of world experience in the problems of practical assessment of human capital and capitalization of intellectual property in Russia and abroad.Results. The way to use the assessment of qualifying assets and accounting in the authorized capital of enterprises is shown in the interests of accelerating their joint innovative development of the EAEU member countries, as well as stimulating and increasing the importance of education and living standards in general.Conclusions. The process of assessing and accounting for qualifying assets in the authorized capital of an enterprise, in principle, as a progressive phenomenon, is inevitable, it is only a matter of time. For the EAEU member countries, the introduction of this process into practice will accelerate their innovative development and increase the social significance of higher education. Similar conclusions should be extended to the BRICS and SCO member countries.

Financial Indicators Shaping Share Price Movement: Insight from the Dhaka Stock Exchange SME Board

This study intends to explore the parameters that influence the share price movement of companies listed under the SME board on Dhaka Stock Exchange (DSE). The small capital platform, popularly known as the SME board is a specialized to trade share of Small and Medium Sized Enterprises (SMEs). Based on secondary data, the present study used three independent variables, such as Earning Per Share (EPS), Price Earning (P/E) ratio, and Net Asset Value (NAV) per share to evaluate the fluctuations of share price in the market. All the companies listed on the DSE SME board were taken into consideration for the current study. Relevant Data concerning dependent and independent variables were collected from the DSE website. Average closing price of selected shares were collected during March 15, 2022–March 14, 2023. The study performed descriptive statistics, correlation, and regression analysis using Statistical Package for Social science (SPSS) software. The study revealed that the fluctuations of share price of SME companies was significantly influenced by EPS, Net Asset NAV per share, and P/E ratio. This maiden study is expected to have implications to companies intending to be listed, investors, regulators, and other stakeholders in Bangladesh.

ESG Scores’ Impact on Portfolio Performance, An Evidence from Indonesia

This study is to determine the effect of using the Refinitiv ESG score in stock picking and its impact on portfolio performance using the ESG Score. Methodology for this research using a two-sample t-test of Net Asset Value (NAV) price-return portfolios and the Sharpe ratio as a proxy for risk adjustment return for portfolio evaluation. The results of this study indicate that the use of a Refinitiv rating may serve as a suitable metric for stock selection strategy because companies with higher ESG scores tend to exhibit superior performance. Since ESG ratings in Indonesia are still difficult to obtain, those with access to ESG ratings will have more advantages. Greater return performance is followed by an increased level of risk. Given the assumption of a well-diversified portfolio, it is hypothesized that the increased risk can be attributed to a larger variance coefficient. So that the Sharpe ratio must be used for portfolio evaluation to measure risk-adjusted returns.

Spatial Assets Value Extraction and Integrated Utilization of Old Communities: Case of Central Guangzhou, China

Extracting the economic value by the integrated utilization of space in old communities is crucial for encouraging independent participation from enterprises and residents, reducing reliance on government leadership and fiscal investment. This study starts from the active perspective of spatial assets and constructs a value activation framework for old communities by balancing “endogenous demand” and “exogenous opportunities”. By enhancing the “economic value” through the “use value”, five methods for value extraction and overall project utilization paths are proposed, guided by a dynamic “cost-revenue” balance. Using multi-source data, we identify the spatial assets of 1096 old communities in central Guangzhou and apply a market comparison method for an economic value assessment. Additionally, this study offers recommendations on the timing and project portfolios for regeneration efforts, along with strategies for establishing a coordinating implementation entity and fund account. This research provides strategic insights for advancing the regeneration of old communities by tapping into their macro-level economic potential.

Analysis of Selling Price Determination in Maju Sejahtera Cooperative Beef Cattle Farming Business: Implementation of Accretion Accounting

Aims: This study aims to analyze the accounting for biological assets and the determination of selling prices in the Maju Sejahtera Livestock Production Cooperative (KPT) based on PSAK 69. Study Design: This study uses a qualitative descriptive method to describe how the accounting treatment of biological assets and the determination of the selling price in the Maju Sejahtera Livestock Production Cooperative (KPT) is based on PSAK 69. Place and Duration of Study: Determination of the research location was carried out purposively, namely at the Maju Sejahtera Livestock Production Cooperative, Tanjung Sari District, South Lampung Regency. This research was carried out from February to July 2024. Methodology: The data collection method in this study used semi-structured interviews and literature studies. Respondents were determined using purposive sampling. These criteria are that respondents must be involved in preparing financial reports and determining the selling price of cattle. Based on these criteria, the respondents of this research are the treasurer and marketing department who are members of KPT Maju Sejahtera, totaling 3 people. Meanwhile, secondary data was obtained through the documentation method, namely from the financial report data of KPT Maju Sejahtera. Results: KPT Maju Sejahtera at the end of each period did not require re-measurement of biological assets using fair value. KPT Maju Sejahtera has not grouped biological assets into productive and non-productive groups and has not reconciled changes in biological assets either narratively or quantitatively in presentation in the financial statements. In addition, KPT Maju Sejahtera discloses increases or decreases in the value of biological assets in the inventory account in the Balance Sheet, which should be disclosed in the Income Statement. Conclusion: The accounting treatment of KPT Maju Sejahtera's biological assets is in the form of recognition of biological assets, measurement of biological assets, presentation of biological assets, and mapping of biological assets are not in accordance with PSAK 69. In addition, the selling price set by KPT Maju Sejahtera is based on market prices, not based on costs incurred.

METODE MEAN-SEMIVARIANCE DALAM PEMBENTUKAN PORTOFOLIO REKSA DANA SAHAM TERBAIK BAROMETER BAREKSA

The most popular investment product today is mutual funds. One of the factors in selecting mutual funds is the low investment risk. This risk can be minimized again by combining several assets and then compiling them into a portfolio. The portfolio formation method used in this study is the Mean-Semivariance method and the Sharpe Index to calculate portfolio performance. The data used is the daily net asset value per unit of Mandiri Investa Atraktif Syariah, Rencana Cerdas, Manulife Saham SMC Plus and BNP Paribas Solaris for the period January 3 2022 to March 9 2023, Jakarta Composite Index (IHSG) data as a benchmark and BI-7 Day Reverse Repo Rate as a riskfree interest rate. The minimum risk of the portfolio will be achieved by compiling a portfolio of two mutual funds, namely Mandiri Investa Atraktif Syariah with a weight of 92,50% and the Smart Plan with a weight of 7,50% with an expected return rate of 0,00019 and a risk of 0,000000663. The Sharpe Index is 0.08971 indicating that the portfolio formed has good performance and can be used as a choice of investment assets by investors.

Operational Strategy Analysis of Fashion Brands to Develop Digital Assets Under the Sustainability Goals

This paper analyzes the strategic decisions of fashion brands regarding the development of digital assets based on blockchain technology, with a focus on achieving both sustainability and profitability goals. We first consider foundational factors such as the fashion value of products, their life cycle, and environmental taxes to construct a traditional fashion system involving the government, fashion brands, and consumers. Subsequently, we introduce a blockchain model that incorporates the added value of digital assets, the cost of technology, and the proportion of fashion consumers. Both models—traditional and digital—are solved mathematically, and numerical experiments are conducted to compare and analyze the impact of developing digital assets by fashion brands. The findings suggest that leveraging digital assets to enhance the fashion value of products can increase the profitability of fashion brands while also reducing environmental pollution caused by leftover inventory. Additionally, the development of digital assets may extend the life cycle of a product, although this does not always lead to improved environmental performance, highlighting a trade-off between the two objectives. Ultimately, the development of digital assets by fashion brands can result in a win-win for both profit and environmental performance, but this outcome is contingent on the cost of blockchain technology meeting specific conditions.