Financial Sector Research Articles

The nexus between the financial development and CO2 emissions: fresh evidence through time–frequency analyses

Climate change and environmental degradation threaten the world and global economic conditions. As one of countries’ most important economic components, the financial sector might be an effective tool for reducing and even reversing environmental degradation. The financial sector can affect sustainability through its lending and investment practices. The sector can play a role in financing sustainable projects and businesses, helping reduce CO2 emissions. By aligning its financial objectives with environmental protection, the financial sector can support the transition to a more sustainable future by helping reduce environmental degradation’s negative impacts. This paper examines the domestic financial sector’s impact on CO2 emissions in the United States over the 1990:Q1–2022:Q3 period. In this research, the nexus between the domestic financial sector (total debt securities, loans, liabilities, and total financial assets) and Carbon dioxide emissions in the U.S. is investigated by Morlet wavelet analysis. Rest of the world: sector discrepancy transactions, rest of the world: debt securities and loans, gross domestic product, and the square of the gross domestic product, are control variables in the estimated models. Partial wavelet coherency analyses prove that the financial sector reduces CO2 emissions at the 5–8-year frequency band during different subsample periods. The financial sector’s instruments can be effective in struggling with climate change.

Self-mentions and stakeholders in climate change discourse

Abstract The aim of this study is to provide an overview of the perspectives of various stakeholders involved in climate change discourse within the financial sector. This paper focuses on sustainability and analyzes a corpus of approximately 30,000 words derived from the sustainability reports of four of the top 100 banks, as identified in the 2022 Standard and Poor’s ranking. The study utilizes corpus analysis tools to identify metadiscursive interactional features of self-mention (Hyland, 2005) and references to stakeholders, highlighting how these banks position themselves and engage with stakeholders in discussions related to climate change. It contributes to the literature on financial discourse and climate change and offers insights for companies seeking financial support by aligning their applications with bank narratives.

Communication Strategies as a Catalyst for Trust Building During Banking Mergers: Lessons from Nepalese Bank

This study investigates the key determinants of customer satisfaction in the post-merger context ofNIC Asia Bank and Kumari Bank, with a focus on technological innovation, employee competence, andcommunication strategies. Drawing on theoretical frameworks such as Expectancy Disconfirmation Theoryand Post-Merger Integration Theory, the study integrates cultural integration as a moderating variable. Usinga stratified random sampling method, data were collected from 500 respondents representing diversecustomer segments. Quantitative analyses, including descriptive statistics, correlation, and regression models,reveal that employee competence (β = 0.50) is the most significant driver of satisfaction, followed bycommunication strategies (β = 0.40) and technological innovation (β = 0.35). Cultural integration (β = 0.20)amplifies these relationships, enhancing the customer experience during organizational transitions. Findingshighlight significant urban-rural disparities, with urban customers favoring digital banking and ruralcustomers relying on traditional services. Accessibility challenges were particularly pronounced in rural areas.This study provides actionable recommendations for banks navigating mergers, emphasizing the need forimproved digital infrastructure, tailored communication, workforce training, and cultural alignment to ensuresustained customer satisfaction and loyalty. These insights contribute to academic discourse and offer practicalstrategies for the financial sector.

Behavioral biases in conflict resolution in the financial sector: Empirical evidence from Bulgaria

Behavioral biases in conflict resolution in the financial sector: Empirical evidence from Bulgaria

Effects of Bank Capital and Lending on Leverage, Risk, and Growth of Nonfinancial Firms

ABSTRACTThis paper examines the impact of bank capital on the capital structure of nonfinancial firms, focusing on lenders and commercial borrowers from 2000 to 2019. We find a positive relationship between firm leverage and bank capital, with lending serving as a key channel for this effect. Additionally, increased lending is associated with higher firm risk and slower growth. Our deal‐level analysis reveals consistent findings with those at the firm level: greater lending is linked to higher spreads, more tranches, more secured loans, fewer lenders per deal, and longer maturities, all of which indicate increased borrower risk. This study offers new insights into how bank capital structure policies influence the financial structure of nonfinancial firms and contributes to the broader debate on the spillover effects of risk‐reduction measures in the financial sector, such as capital regulation, on the real economy.

ENGLISH FOR FINANCE STUDENTS - PART 2

In a world where financial landscapes are constantly evolving, understanding the intricacies of finance becomes not just an asset but a necessity. This book, encompassing a wide range of financial topics, is crafted to demystify the complex world of finance for learners, enthusiasts, and professionals alike. Each lesson in this book is designed as a standalone module, allowing readers to dive into topics at their own pace and according to their interests. Starting with the "Fundamentals of Financial Planning," we lay the groundwork for sound financial understanding. As we progress, topics like "Digital Banking and Online Finance" and "The Role of Technology in Modern Finance" explore the digital revolution reshaping the financial sector. We delve into specific markets with lessons on "Stock Market Indices," "Real Estate Investment Basics," and "Commodities Trading," offering insights into different investment avenues. The book also addresses critical issues such as "Financial Consumer Protection" and "Cybersecurity in Financial Transactions," emphasizing the importance of security in the digital age. Global financial mechanisms are unraveled in lessons like "Understanding the International Monetary Fund (IMF)" and "Global Trade Financing," providing a macroeconomic perspective essential for grasping international finance. The chapters on "The Rise of Cryptocurrencies" and "History of Ethereum" bring readers to the forefront of modern financial innovation, while "Understanding the OneCoin Scam and Scandal" and "Understanding Pyramid Schemes in Finance" serve as cautionary tales highlighting the importance of vigilance in investments. For entrepreneurs, "Financial Literacy for Entrepreneurs" and "Starting and Growing Your Business: Financial Strategies for Entrepreneurs" offer practical guidance on managing and growing a business effectively. We also explore economic systems and government policies in chapters like "Understanding the Communist Economic System" and "Understanding the Cuban Government and Economic System." As we approach the culmination of this journey, "Jobs That May Disappear Due to AI in the Future" and "Understanding the Possibility of a Global Financial Collapse" prompt readers to think about the future of finance and its challenges. This book is more than just a collection of financial lessons; it's a guide to navigating the ever-changing currents of the financial world. Whether you're a student, a professional, or simply curious about finance, these pages are designed to enlighten and empower you in your financial journey.

Exploring Challenges and Solutions in the Digital Transformation of Supply Chain Finance for Commercial Banks

The advent of digital technologies has made supply chain finance a focal point for commercial banks seeking to boost operational efficiency and strengthen market competitiveness. Nonetheless, the journey toward digital transformation in this sector is fraught with challenges spanning technological limitations, organizational barriers, and regulatory constraints. This study delves into the key obstacles faced by commercial banks in digitizing supply chain finance and offers targeted solutions. Through a comprehensive analysis of the digital transformation landscape, this research identifies prevalent issues and addresses the interconnected challenges across technology, organi-zational culture, and regulatory frameworks. Proposed strategies include fostering innovation in technology, reshaping organizational dynamics, and aligning with evolving regulatory policies. The findings offer actionable insights and theoretical guidance for commercial banks navigating their digital transformation journey in supply chain finance, contributing to the broader advancement of digitalization within the financial sector.

Asymmetric risk contagion effect of the interaction between the real economy and the financial sector—an analysis based on the domestic commodity price index

As the uncertainty of the global economy intensifies, domestic real economy risks and financial risks may interact and worsen under international risk shocks. Commodity prices are an important channel for transmitting international economic and financial risks. Taking January 2007 to July 2021 as the sample period and using data from nine commodity price indices and banking, diversified finance, and insurance industry indices, this article uses rolling regression method to construct different commodity price risk and financial sector risk indicators. Combined with a vector autoregressive model, the risk contagion effect is calculated. The analysis indicates that there exist significant asymmetric risk contagion effects between various commodities (with energy and steel having the largest risk spillover effects) and there are significant net risk spillover effects on financial sectors (with insurance having the largest risk spillover effect). There are asymmetric risk contagion effects among different financial sectors, with varying degrees of risk spillover effects on commodity prices (with the banking sector having the greatest risk spillover effects on commodity prices and other financial sectors, and diversified finance having the greatest risk spillover effect on commodities). During major global financial events, the risk spillover effects of commodities and input effects increase significantly due to the intensification of the risk spillover effects of energy, steel, and nonferrous metals. The risk spillover effect between commodities and the overall risk spillover effect have significantly increased. The financial sector’s overall net risk input effect has increased, while the net risk input effect of the insurance sector has also increased. These findings are significant for improving systemic financial risk monitoring indicators and adopting accurate prevention and control measures.

Stock Market Prediction Based Multi-Attribute Decision Making Model Using Picture Fuzzy Z^-Information

As demonstrated in the section above, the stock market place is a dynamic factor, which makes it possible for traders and investors to make good decisions based on the information acquired through accurate prediction. This research aims at improving the prediction of stock market by applying a new method to Multi-attribute Group Decision making (MAGDM). MAGDM goes through a cycle of evaluating and ranking several criteria hence enhancing the decision-making aspects further. To overcome the shortcomings of prior models, some EU and FU is incorporated by combining Zadeh’s Z^-numbers with Picture Fuzzy Sets (PFSs). This integration is to enhance the ability of the model to address completely unclear decisions utilizing the peculiarities of Z^-numbers. To compare decisions between decision-makers, we proposed picture fuzzy Z^-numbers (PFZ^N) and for their aggregation, introduced picture fuzzy weighted averaging, picture fuzzy ordered weighted averaging, picture fuzzy hybrid averaging, picture fuzzy weighted geometric, picture fuzzy ordered weighted geometric and picture fuzzy hybrid geometric operators based algebraic T-norm (T-N) and T-conorm (T-CNs) To verify the efficiency of our suggested technique, we compare these operators with the Combined Compromised Solution (CoCoSo) model focusing on the stock market analysis. Our results, therefore, show how these operators are important in improving decision making accuracy and precision in conditions of risk. This research laid down the basis for enhancing decision-making and dealing with uncertainty in different fields especially in the application of stock market prediction. The proposed methodology can be attributed to providing a systematic and a more efficient way of dealing with uncertainty which in one way or the other has an outcome of enhancing the credibility of the decision making process in the financial sector.

Machine learning-based cloud security system with multi authentication for data classification in Financial Sectors

Machine learning-based cloud security system with multi authentication for data classification in Financial Sectors

Mass subsidized mortgage: No extension, no termination?

After the launch of mass preferential mortgage program in 2020, subsidizing interest rates on housing loans has become a key factor affecting the primary housing market in Russia. In 2024, the portfolio of preferential mortgage lending approached RUB 9 trillion, indicating the high importance of this factor for the financial sector and the entire economy. Nevertheless, the effectiveness of subsidized mortgage programs and their effect on the socio-economic situation remain a subject of debate among economists, politicians and the public. The paper analyzes the impact of these programs on the residential real estate market, house prices and housing affordability. The core part of the paper contains the estimation of the scale of the substitution effect — the share of subsidized mortgage loans that would have been granted under market conditions. Based on the results obtained, alternative methods of housing support are proposed.

Determining Accounting Undergraduates' Intention to Become Shariah Auditors in Malaysia: A Theory of Planned Behavior Approach

This study investigates accounting students’ intention to become Shariah auditors based on the Theory of Planned Behavior encompassing attitude, subjective norms, and perceived behavioral control. It identifies the key factors influencing this career intention. Employing data of 127 accounting students across three Malaysian universities and utilizing analysis through Smart PLS, the study reveals that subjective norms and perceived behavioral control significantly impact students' intention to become Shariah auditors. These findings provide valuable insights for universities to enhance accounting curricula and programs, ultimately fostering a workforce proficient in Shariah principles and auditing. Additionally, the findings of the study aid in the development of skilled and competent Shariah auditors equipped to address the growing demands of the Islamic finance sector, thus benefiting academia, the industry, and future practitioners.

Mapping the landscape of exchange rate forecasting: a bibliometric study of the last three decades (1991–2022)

PurposeThe present paper aims to conduct a comprehensive scientific mapping of exchange rate forecasting, highlighting trends, developments, and methodological changes. This will provide research scholars, researchers, and policymakers valuable insights to facilitate predictions.Design/methodology/approachThe researchers performed a bibliometric analysis of exchange rate forecasting using a scientific search method on the Scopus database from 1991 to 2022. They applied a web interface program called Biblioshiny, part of the Bibliometric package built in R by Aria and Cuccurullo (2017). VOSviewer was used to identify the most influential journals, authors, countries, articles, citations, and co-citations from 1,602 documents.FindingsThe conceptual and intellectual framework of the papers under review provided an in-depth and comprehensive analysis of the domain. The research outcomes provided essential information on the subject matter, highlighting the need for further investigation. The study’s findings demonstrate the evolution of the theory of forecasting exchange rates reflecting continuous developments in the methodologies applied to forecast the exchange rates.Research limitations/implicationsThe scientific mapping of the present study’s bibliometric analysis is limited to the Scopus database because of its comprehensive coverage of high-quality journals and predefined structures compatible with Bibliometrix software.Practical implicationsThe study provides considerable insight into forecasting exchange rates and their interlinkages. By outlining the social and intellectual structure of the field, it directs upcoming scholars about the relevant topics, contexts and potential collaborations emerging in this field. The study also reveals the critical concerns in the area and leads to potential research opportunities.Social implicationsThe study sheds light on emerging trends and approaches to forecasting exchange rates and will provide valuable information and insights to policymakers, economists, investors and decision-makers in the financial sector. It will contribute to prioritising research in overlooked areas and support the formulation of effective policies.Originality/valueThis study contributes significantly by bringing together disparate literature on exchange rate forecasting, highlighting important journals, authors and documents, and examining the recent studies on the foreign exchange rate.

Digital Innovation and Revolution in Financial Sector: The Role of Financial Products on Sustainable Performance under the Lens of Resource Based View

Digital Innovation and Revolution in Financial Sector: The Role of Financial Products on Sustainable Performance under the Lens of Resource Based View

Implementation of digital marketing strategies. Problems and benefits to the financial sector

Introduction: Financial digital marketing relies on different electronic media to reach a greater number of people who could become potential clients of different financial corporations through it. The objective pursued is to identify the problems and benefits that it has brought to the financial sector in terms of the use and implementation of digital marketing strategies. Methodology: The methodology of this study was based on a systematic review of primary information housed in open access databases, mainly Scopus, Web of Science and Google Scholar in the last five years (2020-2024). Results: Marketing strategies focus on directing resources toward opportunities that increase sales and provide long-term competitive advantages. In the financial services space, competition has driven a transformation towards customer satisfaction through a wide range of options. Conclusion: Digital marketing is essential and combining digital and traditional approaches is crucial to success, with conversion metrics playing a critical role. In less advanced regions, policies to support technological innovation are needed to harness digital potential. The financial sector has experienced greater competition and diversity, driven by digital marketing and the inclusion of fintech companies, which has benefited SMEs and entrepreneurs

A Combined Deep Learning Approach for Fraudulent Detection in The Financial Sector

A Combined Deep Learning Approach for Fraudulent Detection in The Financial Sector

Examining the Integration of Generative AI Models for Improved Risk Management Practices in the Financial Sector

Examining the Integration of Generative AI Models for Improved Risk Management Practices in the Financial Sector

Discovering causal relationships among financial variables associated with firm value using a dynamic Bayesian network

<p>This study investigated the causal relationships among financial variables associated with firm value using a Causal Dynamic Bayesian Network (CDBN), which is an extension of the basic Bayesian network that captures both temporal and contemporaneous causal relationships. The CDBN model was constructed using a panel dataset of listed manufacturing companies in Korea over a 14-year period (2009–2022). By visualizing the interactions between financial factors, the model makes it easy to understand their dynamic and instantaneous relationships, offering valuable insights into corporate finance. Key findings in the model include evidence of autocorrelation in all dynamic variables, a lagged feedback loop between the intangible assets ratio and firm value, the widespread impact of the COVID-19 pandemic on the financial sector, and important causal relationships involving key financial metrics such as the fixed assets ratio, firm value, and return on assets ratio.</p>

Digital Financial Development and Commercial Bank Stability

In today's economically globalized and rapidly evolving IT landscape, digital finance has emerged as a key driver in the financial sector. This research evaluates the stability of commercial banks by analyzing their profitability and risk-taking capacity, while also exploring the effects of digital financial development (DFD) on this stability. The outcomes suggest that DFD enhances both profitability and risk-taking capacity of commercial banks, ultimately strengthening their overall stability. Notably, operational efficiency plays a facilitating role in this process. Additionally, the study uncovers regional and size-based differences in the impact of DFD on commercial bank stability. Upon conducting robustness and endogeneity checks, the findings remain consistent, affirming the universal applicability and credibility of digital finance in bolstering commercial bank stability. These discoveries provide essential theoretical support and practical advice for strategic planning and policy-making in the digital finance era for commercial banks.

Crisis Monitoring in Financial Sectors Using CAMEL Partial Triadic Analysis Model

Crisis Monitoring in Financial Sectors Using CAMEL Partial Triadic Analysis Model