Top Research Papers on Finance

This paper surveys the field of asset pricing. The emphasis is on the interplay between theory and empirical work, and on the tradeoff between risk and return. Modern research seeks to understand the behavior of the stochastic discount factor (SDF) that prices all assets in the economy. The behavior of the term structure of real interest rates restricts the conditional mean of the SDF, while patterns of risk premia restrict its conditional volatility and factor structure. Stylized facts about interest rates, aggregate stock prices, and cross-sectional patterns in stock returns have stimulated ...

Abstract Identifying the intersection between digital finance, green finance and social finance is important for promoting sustainable financial, social and environmental development. This paper suggests a link between digital finance, green finance and social finance. Using a simple conceptual model, I show that digital finance offers a smooth, efficient and seamless channel for individuals and corporations to fund social projects that deliver a social dividend, and green projects lead to a sustainable environment. The implication is that digital finance is both an enabler and a channel for e...

PurposeThis paper analyzes global interest in Internet information about decentralized finance (DeFi), embedded finance (EmFi), open finance (OpFi), ocean finance (OcFi) and sustainable finance (SuFi) and the relationship among them.Design/methodology/approachThe paper used a comparative methodology based on regression and correlation analyses to assess global interest in Internet information about DeFi, EmFi, OpFi, OcFi and SuFi.FindingsThe findings reveal that global interest in Internet information about EmFi was more popular in Asian and European countries. Global web search for Internet i...

This work presents BloombergGPT, a 50 billion parameter language model that is trained on a wide range of financial data, and constructs a 363 billion token dataset based on Bloomberg's extensive data sources, perhaps the largest domain-specific dataset yet.

Clean energy is currently a top priority on the global agenda, and green bonds have emerged as a key response from financial markets. However, while these bonds aim to reduce carbon emissions, they may create perverse incentives. Brazil has made significant investments in eolic parks in recent years, with players issuing green bonds to finance these activities. One region that has seen high levels of investment is the interior of Bahia state, which has historically had low levels of economic and social development. Unfortunately, the production of wind energy in this region has been marked by ...

To protect environmental sustainability, organizations are moving their focus towards greening the business process. Similarly to any other business function, financial management has also turned to environmentally friendly activities. Green finance is a new financial pattern that integrates environmental protection and economic profits. This paper analyses the publications on green finance, and their intellectual structure and networking. The bibliometric data on green finance research have been extracted from the Scopus database. This study finds the most productive countries, universities, ...

It is demonstrated that the recently released AI chatbot ChatGPT can significantly assist with finance research, and that the extent of private data and researcher domain expertise input, are key factors in determining the quality of output.

The development of digital finance in China has significantly reduced enterprise financial risk, and for enterprises with low debt levels and enterprises located in the eastern region, digital finance plays a more critical role in reducing financial risk.

Employs business concepts and analyses to explore the operations and activities of media firms and the forces and issues that affect them.

The central question is what the financial system is for? Standard texts list five main functions: channelling savings into real investment; transferring risk; maturity transformation (including smoothing of lifecycle consumption); effecting payments; and making markets. But looking at how financial companies make their money, it is extraordinarily difficult to see how closely this corresponds to the stated functions, and it is often difficult to explain why the rewards can be so high. Any explanation must also explain why the system is so prone to boom and bust.

Recent changes in workplace and corporate board diversity policies and a series of court rulings have signalled a fundamental change in the treatment of lesbian, gay, bisexual, transgender and queer (henceforth LGBTQ) people in the corporate world. In this paper, we survey the burgeoning literature on the role of sexual orientation in finance. Studies show that there is a positive relationship between the adoption of LGBTQ-friendly policies and firm performance. We identify the factors that influence a firm ’ s decision to adopt LGBTQ-friendly policies. We also provide evidence that sexual pre...

Third-party sellers on online platforms primarily rely on banks to meet their financing requirements and are often constrained by the lack of sufficient working capital. Online platforms such as Amazon and Alibaba have ushered new dynamics in the e-commerce financing landscape by offering working capital loans to these sellers and directly competing with banks, and influencing the market intensity. This paper studies how the competition between third-party sellers on platforms affects sellers’ strategic financing choices: platform financing (P) vs bank financing (B). We examine how the financi...

This work discusses the theory and strategies of finance. Financing strategies are essential factorsthat play significant roles during the lifetime of a client to assist clients inmeeting financial goals such as education planning, investment planning,retirement savings, and income planning.With an uncertain economy, afinancial planner is needed to help consumers prioritize their finances to achieve long‐term financial stability throughout these tough times. Thereare numerous options for financing financial goals. These various optionsoften make financial management much more difficult for a...

Several papers argue that financial economics faces a replication crisis because the majority of studies cannot be replicated or are the result of multiple testing of too many factors. We develop and estimate a Bayesian model of factor replication, which leads to different conclusions. The majority of asset pricing factors: (1) can be replicated, (2) can be clustered into 13 themes, the majority of which are significant parts of the tangency portfolio, (3) work out-of-sample in a new large data set covering 93 countries, and (4) have evidence that is strengthened (not weakened) by the large nu...

ABSTRACT We use Chinese listed firms from 2011 to 2018 to explore whether and how financial technology impacts corporate debt-financing constraints and costs. Using two forms of financial technology cases in China, we explain why technology innovation in the financial industry flourishes and contributes to alleviating debt-financing constraints and reducing debt-financing costs. We empirically document that financial technology helps alleviate firms’ financing constraints and reduce firms’ debt-financing costs. We also find that financial technology plays a more significant role for private-ow...

The authors focus on blockchain‐based securities trading, in which blockchain technology plays a vital role in financial services as it ultimately lifts trust and frees the need for third‐party verification by using consensus‐based verification.

Health financing has become an important part of the health system strengthening in order to achieve Universal Health Coverage (UHC) and to provide equitable health services without financial burden to the users.

Supply chain finance (SCF) as a crucial approach plays a key role in improving commitment, trust, financial flows, and profitability in a supply chain (SC). Many industrial organisations finance th...

This article examined how to work transactions that are stored in the digital ledgers are recorded in the Blockchain to show that Blockchain has made the financial sector to great peak and got a good reputation among the people who thought it would not work well.

Description: This is a doctoral-level course, intended to prepare students for research in Quantitative Finance. The course will provide an introduction to continuous time Finance. The topics covered include portfolio management, derivative pricing, risk measures and equilibrium asset pricing, both in complete and incomplete markets. If time permits, we will also cover term structure models and credit risk. In the first two weeks of the course we will cover elements from stochastic calculus that will be used throughout the class. Prerequisites: There are no formal course prerequisites, but thi...

The purpose of this study is to determine whether there is a relationship between financial behavior based on income, financial literacy and a personal lifestyle. This study uses primary data through a data collection process by distributing questionnaires online (using Google Forms) among the total of 50 respondents. The data analysis technique used here is SPSS, version 25. The results of this study indicate that there is a significant positive effect between financial literacy variables and financial behavior. Meanwhile, income and lifestyle variables seem to have no influence on financial ...

ABSTRACT This article explores the interactive effects of digital finance and environmental, social responsibility, and corporate governance (ESG) performance on corporate financing efficiency using data envelopment analysis (DEA) and panel data analysis. Our empirical results demonstrate that higher ESG performance and digital finance enhance corporate financing efficiency at the 1% significance level, and digital finance alleviates the positive marginal effect of ESG performance on corporate financing efficiency.

The “big data” phenomenon is defined as a combination of three features: large size, high dimension, and complex structure, which is discussed to discuss how new research builds on these features to push the frontier on fundamental questions across areas in finance.

Our legacy financial infrastructure has both limited growth opportunities and contributed to the inequality of opportunities. Around the world, 1.7 billion are unbanked. Small businesses, even those with a banking relationship, often must rely on high-cost financing, such as credit cards, because traditional banking excludes them from loan financing. High costs also impact retailers who lose 3% on every credit card sales transaction. These total costs for small businesses are enormous by any metric. The result is less investment and decreased economic growth. Decentralized finance, or DeFi, po...

Over 40% of firms that make payouts also raise capital during the same year, resulting in 31% of aggregate share repurchases and dividends being externally financed, primarily with debt. Most externally financed payouts are the result of firms persistently setting payouts above free cash flow. The management of leverage and cash for tax optimization purposes is a key—but not the only—driver of payout-financing behavior. Debt-financed payouts are associated with increased firm financial fragility during the COVID-19 and other crises—but internally funded payouts are not. Our results highlight t...

This paper analyses the key arguments in favour of and against regulation of DeFi in the context of the recent crypto asset market instability, including a breakdown of various theories of liability under which regulators seek to identify bad actors and penalise harmful activity.

Fulfillment of capital for business actors is very important and a supporting factor for the smooth running of a business, as is the case with BMT Mandiri Sejahtera East Java which provides financing products in the form of Qardh Pasar which aims to assist market traders in meeting capital for their business. This study aims to determine the effect of Qardhul Hasan (Market Qardh) financing on increasing the income of market traders on customers at BMT Mandiri Sejahtera East Java Branch Sembayat Gresik with indicators measuring the amount of financing, time period, and service fees. The existen...

Since World War II, Italy‟s economic growth has been one of the highest in the world. The objective of this study is to examine the structure of the Italian economy and causes of this growth. It was found that small and medium-sized firms, most of them family-owned, have been the dynamic force behind the country‟s extraordinary economic performance. The vital role of the family and that of the entrepreneur – as the supreme spirit of enterprise and initiative - has been paramount in this process. Production by small and medium-sized firms have concentrated in a specific geographical area called...

The emergence of cryptocurrencies/crypto assets has allowed the provision of a new form of financial services, including payments and loans, known as decentralised finance (DeFi). Crypto assets currently represent only about 1 percent of total global financial assets and it is unlikely, in its current form, that DeFi will become a substitute for the traditional financial system, for three reasons.

ABSTRACT With regard to lending to small and micro enterprises (SMEs), the cost of traditional finance is mainly marginal. By contrast, the cost of Internet finance is mainly fixed, and the average cost of Internet finance is largely reduced. From the perspective of cost structure and size changes, we build dynamic equilibrium models. We prove that the transition from traditional to Internet finance will increase the number of SMEs obtaining loans and the aggregate output. We also conduct a quantitative analysis with the result revealing that Internet finance will increase China’s credit-acces...

Financial processes have changed how economic growth is carried out, yet little research has been done examining how financialization affects the well-established association between economic activity and emissions. We construct fixed effects regression analyses with robust standard errors for 172 nations between 1960 and 2014. In this article, we estimate financial processes’ moderation of the association between GDP per capita and CO2 emissions per capita, as well as whether or not such processes reduce the environmental intensity of manufacturing activities. We find that financialization d...

This article explore works by five authors who deal with the financial costs of trying to get pregnant, being pregnant and giving birth in Japan today. It explores new reproductive technologies and the problems when people other than married women try to access them. The underlying message is that if a woman wants to try something her own way then there are steep costs associated  with it and perhaps, by alleviating these costs, this could contribute to increasing the birthrate.

The 2030 Agenda for Sustainable Development, adopted at the UN General Assembly in New York in 2015, then implemented by the European Union, respectively by Romania (through Romania’s Sustainable Development Strategy 2030), is a historic document, through its 17 goals, which promotes a sustainable future for all citizens. Structured on the three pillars of sustainable development – economic, social and environmental – it highlights one of the priorities of global sustainable development and a major concern of our time – environmental protection. Two of the Sustainable Development Goals of the ...

This paper incorporates diagnostic expectations into a general equilibrium macroeconomic model with a financial intermediary sector. Diagnostic expectations are a forward-looking model of extrapolative expectations that overreact to recent news. Frictions in financial intermediation produce nonlinear spikes in risk premia and slumps in investment during periods of financial distress. The interaction of sentiment with financial frictions generates a short-run amplification e↵ect followed by a long-run reversal effect, termed the feedback from behavioral frictions to financial frictions. The m...

A decision framework is proposed to guide financial professionals in selecting the appropriate LLM solution based on their use case constraints around data, compute, and performance needs and provides a pathway from lightweight experimentation to heavy investment in customized LLMs.

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Analysis of the effect of digital finance, digital marketing and digital payment variables on finance performance in Indonesia shows that the digital finance had a positive and significant effect on the finance performance.

This paper attempts to formulate new theories of sustainable finance, meeting a need to establish a set of propositions that can help us understand the behaviour and actions of economic agents towards sustainable finance. The paper used a literature survey to establish a theoretical relationship between sustainable finance and the actions of economic agents. The paper proposed six theories of sustainable finance, namely, the priority theory of sustainable finance, the resource theory of sustainable finance, the peer emulation theory of sustainable finance, the life span theory of sustainable f...

This survey paper presents a comprehensive summary of the state of the art of quantum computing for financial applications, with particular emphasis on stochastic modeling, optimization, and machine learning, describing how these solutions can potentially help to solve financial problems more efficiently and accurately.

Abstract In this special issue, we unpack law and finance entities and consider their co-construction, entanglement and interchanging relationship. Adopting a processual sociology lens, we aim to connect micro-technical devices and controversies to the macroscopic big picture of financialized capitalism. We combine analytical tools from pragmatic sociology, emphasizing how social reality and institutions are (re-)enacted through trials, with a dynamic and historicized sociology of the state and the juridical field. Four avenues illustrate our research program on the sociology of financial law....

Jodi Ann Magnan MWF 11:00 am 11:50 am RLS RL1&2 ACTG 180 10 PAYROLL ACCOUNTING 3.00 Jodi Ann Magnan TR 10:00 am 11:20 am DUMNT 118 ACTG 180 20 PAYROLL ACCOUNTING 3.00 Ilene Standen MTWR 10:00 am 10:50 am MAIN MN1 ACTG 201 10 PRINCIPLES OF FINANCIAL ACCTG 4.00 Ilene Standen MTWR 11:00 am 11:50 am MAIN MN1 ACTG 202 10 PRINCIPLES OF MANAGERIAL ACCTG 4.00 Jodi Ann Magnan MWF 2:00 pm 2:50 pm MAIN MN2 ACTG 205 10 COMPUTERIZED ACCOUNTING 3.00 Ilene Standen F 10:00 am 11:50 am MAIN OFFIC ACTG 291 10 SPECIAL TOPICS 4.00

Purpose  – This study empirically analyzes the effect of the financing diversification with some control variables including both bank-specific variables such as bank's size, CAR, efficiency and the macroeconomic variables such as the inflation and exchange rate, on the Islamic bank's non-performing financing (NPF). Methodology  –  The aggregate Islamic bank data encompassing Islamic commercial banks and Islamic business units are used. The Autoregressive Distributed Lag Model (ARDL) is employed using the monthly data covering January 2011 to December 2019. Findings  –  The cointegration test ...

The textbook reveals the theoretical and practical aspects of the organization of finance as a socio-economic category. It examines the essence and functions of finance, their role in the reproduction process, the structure of the financial system of the state, the content of state and municipal finance, financial management bodies, the essence of the budget and state extra-budgetary funds, the organization of the budget process. The priorities and main directions of the state's financial policy, forms and methods of state financial control, trends in the development of public credit and publi...

A distinction between technical security and economic security is provided, connecting the latter with new models and thereby synthesizing insights from computer science, economics and finance, and the open research challenges in the ecosystem across these security types are outlined.

The paper provides the earliest evidences of behavioural anomalies reported by researchers in the stock markets and throws light on the significance of behavioural finance and its unique position in bridging the gaps between real life situations and traditional theories.

Housing is a major pre-requisite of human life. So, housing development and housing finance are the governmental priorities worldwide, and Government of India (GOI) is no exception. In India ‘Affordable Housing for All’ has been a national goal since 2017. Though this national goal was supposed to be attained by 2022, it could not be attained, partly because of the crisis due to the global pandemic, Covid-19. The revised target of the GOI is 2025. This paper looks into the major players in the housing finance market viz. Commercial Banks (CBs) and HFCs and their role in attaining the national ...

A survey of the most prominent smart contract applications in decentralized finance: token issuance, initial coin offerings, nonfungible tokens, decentralized exchanges, and protocols for loanable funds.

It is revealed that the digital transformation of banks significantly increases loan allocations to SMEs within the cultural industry and this development toward inclusive finance is further substantiated by robust empirical evidence.

The paper highlights the need for research in robustness, interpretability, and ethical considerations to ensure responsible use of ChatGPT technology in finance.

Sustained and stable external financing, affected by the financial environment, is a necessary condition to support the green technological innovation of enterprises. This paper focuses on the impact of bettering the financial environment of digital finance on enterprise green technological innovation, as well as the mediating role of financing costs and financial flexibility in this process. Using China’s data on manufacturing enterprises listed in Shanghai and Shenzhen from 2011 to 2018, the hypotheses are tested. The result suggests the following: (a) digital finance effectively promotes en...