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This study evaluates the relevancy of economic globalization, financial development, and clean energy, in strengthening the environmental sustainability of the next 11 economies over a time period pertaining to 1995–2018. In order to achieve the objective of this study, the advanced panel estimation techniques of unit root testing, and the cointegration analysis have been applied due to the presence of the cross-sectional-dependence and heterogeneity of the slope parameters in the panel data. The long-run output coefficients have been estimated through the Cross-Sectional Autoregressive Distributive Lag Model (CS-ARDL). Moreover, the causality test for a heterogeneous panel has also been employed in order to determine the causal relationships among the variables that are under study. Our empirical findings of these tests indicate that financial development and economic globalization tend to contribute to the deterioration of environmental quality, but clean energy is productive for its improvement. The bi-directional causal relationship is recognized to exist between CO2 emission and all the variables. Based on these findings, the study recommends adopting economic growth policies that are aligned with the defined environmental regulations, thus promoting the use of more clean energy resources. These include resources such as renewable energy and incorporating the environmental welfare goals into financial development plans in N11 economies.

The novel Covid-19 virus has changed the dynamics of ‘flight to safety’ investment for various economies. Thus, the hedging ability of the stocks must be revisited in the scenario of this pandemic. For this purpose, specifically understanding the importance of a semi-strong form of an efficient market hypothesis is important. This was to observe the speed at which the markets react to the news announcement, and how rapidly they absorb new information to regain thier position in the market. Hence, this study conducts an event study analysis on Pakistan’s emerging market to detect the financial and non-financial stock price reactions towards the lockdown announcement, following the spread of Covid-19 in Pakistan. The daily data on the KSE-100 index for thirty different industries, comprising of ninety firms, spanning from December 12, 2019, till June 7, 2020, was collected and analyzed. The abnormal returns were recorded to be at around 21 [10. þ10] and 41 days [20, þ20] event window, around the day of the lockdown announcement. These abnormal returns were obtained through the market model regression. The data collected implied that most of the industries were stable and behaved well before the event day, while the affected sectors recovered fairly quickly. Therefore, it has been affirmed that Pakistan’s equity portfolios are informationally efficient, and can benefit the investors during a pandemic.

By aiming to understand the importance of the ongoing effects of COVID-19 on several economies, this study attempts to highlight the impact of COVID-19 confirmed cases and deaths occurring in the most affected countries of the world such as China and the USA, especially in the context of their respective currencies. For this purpose, the daily data from January 22, 2020, till May 7, 2021, has been taken into account, and then has been analyzed to examine the linear relationship between the currency and proxies of the COVID-19 pandemic. Moreover, the (autoregressive distributed lag) ARDL model has been employed in order to fulfil the research objective with numerous statistical diagnostic measures, so as to validate the model. The results indicate that the exchange rate is affected negatively due to the effect of COVID-19 cases and deaths in particular countries. Moreover, the effect of the pandemic is not limited to the short run only, but also in the long run, as it is hurting the financial backbone of China and the USA.

This study evaluates the relevancy of economic globalization, financial development, and clean energy, in strengthening the environmental sustainability of the next 11 economies over a time period pertaining to 1995–2018. In order to achieve the objective of this study, the advanced panel estimation techniques of unit root testing, and the cointegration analysis have been applied due to the presence of the cross-sectional-dependence and heterogeneity of the slope parameters in the panel data. The long-run output coefficients have been estimated through the Cross-Sectional Autoregressive Distributive Lag Model (CS-ARDL). Moreover, the causality test for a heterogeneous panel has also been employed in order to determine the causal relationships among the variables that are under study. Our empirical findings of these tests indicate that financial development and economic globalization tend to contribute to the deterioration of environmental quality, but clean energy is productive for its improvement. The bi-directional causal relationship is recognized to exist between CO2 emission and all the variables. Based on these findings, the study recommends adopting economic growth policies that are aligned with the defined environmental regulations, thus promoting the use of more clean energy resources. These include resources such as renewable energy and incorporating the environmental welfare goals into financial development plans in N11 economies.

The novel Covid-19 virus has changed the dynamics of ‘flight to safety’ investment for various economies. Thus, the hedging ability of the stocks must be revisited in the scenario of this pandemic. For this purpose, specifically understanding the importance of a semi-strong form of an efficient market hypothesis is important. This was to observe the speed at which the markets react to the news announcement, and how rapidly they absorb new information to regain thier position in the market. Hence, this study conducts an event study analysis on Pakistan’s emerging market to detect the financial and non-financial stock price reactions towards the lockdown announcement, following the spread of Covid-19 in Pakistan. The daily data on the KSE-100 index for thirty different industries, comprising of ninety firms, spanning from December 12, 2019, till June 7, 2020, was collected and analyzed. The abnormal returns were recorded to be at around 21 [10. þ10] and 41 days [20, þ20] event window, around the day of the lockdown announcement. These abnormal returns were obtained through the market model regression. The data collected implied that most of the industries were stable and behaved well before the event day, while the affected sectors recovered fairly quickly. Therefore, it has been affirmed that Pakistan’s equity portfolios are informationally efficient, and can benefit the investors during a pandemic.

By aiming to understand the importance of the ongoing effects of COVID-19 on several economies, this study attempts to highlight the impact of COVID-19 confirmed cases and deaths occurring in the most affected countries of the world such as China and the USA, especially in the context of their respective currencies. For this purpose, the daily data from January 22, 2020, till May 7, 2021, has been taken into account, and then has been analyzed to examine the linear relationship between the currency and proxies of the COVID-19 pandemic. Moreover, the (autoregressive distributed lag) ARDL model has been employed in order to fulfil the research objective with numerous statistical diagnostic measures, so as to validate the model. The results indicate that the exchange rate is affected negatively due to the effect of COVID-19 cases and deaths in particular countries. Moreover, the effect of the pandemic is not limited to the short run only, but also in the long run, as it is hurting the financial backbone of China and the USA.