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Marketing scholars have extensively studied marketing's effect on firm value and have developed metrics and dashboards to help establish marketing accountability. However, empirical evidence of marketing accountability's specific outcomes is scarce and mainly derived from surveys. It also lacks consideration of outcomes beyond the marketing function's standing in the firm, thus overlooking possible downsides and outcomes with regard to external stakeholders such as investors. Using a natural experiment—Australia's change from a nonrestrictive to a restrictive accounting regime—this study investigates how accountability for the financial value of marketing assets (marketing asset accountability) affects a firm's marketing management focus on short-term vis-à-vis long-term marketing efficiency, its cost of capital, and the degree to which its stock price reflects actual future performance (i.e., stock price informativeness). The results show that marketing asset accountability improves long-term marketing efficiency, reduces cost of equity, and improves stock price informativeness, but does not consistently affect short-term marketing efficiency and cost of debt. Moreover, although marketing-intensive firms are commonly assumed to benefit most from marketing asset accountability, this is not the case. These results have implications for researchers, managers, and public policy decision makers. [ABSTRACT FROM AUTHOR]

It is well documented that since at least the 1970s investment-cash flow (I-CF) sensitivity has been decreasing over time to disappear almost completely by the late 2000s. Based on a neoclassical investment model with costly external financing, we show that this pattern can be explained by the gradual increase of capital adjustment costs, attributable to the accumulation of knowledge capital. The result is robust to a variety of approaches, including Euler equation estimation and the simulated method of moments. More generally, our findings demonstrate that I-CF sensitivity should only be interpreted as a joint measure of financial and real frictions. [ABSTRACT FROM AUTHOR]

To achieve California’s ambitious climate goals, a shift to hydrogen fuel for some transportation sectors may be essential.In this report, we explore the build-out of a hydrogen fuel distribution system including uptake of light-, medium-, and heavy-duty fuel cell electric vehicles. Our analysis of Base and High Case scenarios includes costs of building and operating a hydrogen vehicle and fuel system and estimates workforce impacts. We consider scenarios with about 125,000 vehicles by 2030 in the Base Case and 250,000 in the high case. This increases by an order of magnitude to 2045. Vehicle and station investment costs associated with the Base Case reach anywhere from $4 to 12 billion USD by 2030 and increase by a factor of eight by 2045. Costs per kg of hydrogen, including fuel transmission to stations and station costs delivered to vehicles, could be in the range of $4 to 8 per kg. This becomes $6 to 10/kg as a final delivered cost, if production of hydrogen were to cost $2/kg. Workforce impacts in the Base Case include 600 to 2,200 jobs created by 2030, rising rapidly thereafter. This report was prepared by the ITS-UC Davis Energy Futures Hydrogen Program in partnership with the UCLA Luskin Center for Innovation.

We identify a novel economic mechanism through which passive ownership positively affects informational efficiency in the cross-section of firms. Passive investors' inelastic demand lowers a firm's cost-of-capital, inducing it to take more risk. The higher cash flow variance, in turn, incentivizes active investors to acquire more precise private information, pushing up price informativeness for firms with high passive ownership. High passive ownership also implies higher stock prices and higher stock-return variances. An increase in the aggregate size of passive investors amplifies these cross-sectional differences. We also document complementarities in firms' real investment and investors' information choices that can cause information crashes. Received May 31, 2020; editorial decision January 4, 2023 by Editor Holger Mueller. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

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Rapid expansion of precarious employment carries risks of exacerbating the gender wage gap in China. This article finds an inverse relationship between flexibility and security in the labor market, disproportionately affecting women workers. Drawing from the Marxist-feminist theory of social reproduction, the study conceptualizes China’s social reproduction regime as developmentalist, characterized by ongoing tension between economic development and social reproduction. Promoting precarious work, which reflects the operational logic of the developmentalist social reproduction regime, is essentially transferring social reproduction cost from capital to labor. This cost is predominantly shouldered by precarious workers, particularly women, resulting in a widened gender wage gap. Using the China Labor-force Dynamic Survey, the study finds empirical support for the theorization that the gender wage gap among precarious workers is significantly larger than among non-precarious workers. The article proposes policies addressing the gap by shifting the cost of social reproduction from labor back to capital.HIGHLIGHTSGender wage gap is wider among precarious workers in China.Marxist-feminist theories help us to better understand GWG in precarious work.Women in precarious work face income loss risks and heavier domestic responsibilities.Developmentalist social reproduction regime seeks to balance growth and reproduction.The cost of social reproduction should be shifted back to capital.Gender wage gap is wider among precarious workers in China.Marxist-feminist theories help us to better understand GWG in precarious work.Women in precarious work face income loss risks and heavier domestic responsibilities.Developmentalist social reproduction regime seeks to balance growth and reproduction.The cost of social reproduction should be shifted back to capital. [ABSTRACT FROM AUTHOR]

Access to electricity is a key indicator of a country's development. In developing nations like Ethiopia, this metric is particularly crucial for assessing progress. Currently, about 45.8% of Ethiopia's population lacks access to electricity, with rural areas experiencing even higher rates, reaching 57.2%. The Southern Nations, Nationalities, and People's (SNNP) region faces the greatest challenge, with 62.1% of its population lacking electricity. Ethiopia aims to achieve universal electricity access by 2030, and microgrid (MG) development is expected to play a pivotal role in meeting this goal. This study employs a multi-tier framework (MTF) to categorize village households based on electricity access, considering factors like income level and willingness to pay, to support the MG development process. Three villages—Toba, Koza, and Womba—in the SNNP region were selected for optimal MG sizing. Sensitivity variables such as global horizontal irradiance (GHI) variation, photovoltaic (PV) and battery prices, battery usage limits, and capacity shortage levels were analyzed for their impact on net present cost (NPC), initial capital cost, and cost of energy (COE) using HOMER Pro software. For example, in the Toba MG, increasing the capacity shortage from 0 to 10% reduced the COE from 0.1195 $/kWh to 0.09104 $/kWh, a 23.82% decrease. Additionally, fluctuations in PV and battery prices had a direct impact on the system's NPC. The study also explored the impact of clustering the microgrids by interconnecting the three individual systems and conducting a techno-economic analysis. The comparison between standalone MG operation and clustered microgrids revealed that, despite the added cost of interconnection, the benefits in terms of technological, economic, and reliable operation of the clustered system were comparable to standalone microgrids. Finally, a feasibility study was conducted for the potential grid extension of the Toba MG, which is located 130 km from the nearest substation in Sawla. [ABSTRACT FROM AUTHOR]

Long-duration energy storage (LDES) is a key resource in enabling zero-emissions electricity grids but its role within different types of grids is not well understood. Using the Switch capacity expansion model, we model a zero-emissions Western Interconnect with high geographical resolution to understand the value of LDES under 39 scenarios with different generation mixes, transmission expansion, storage costs, and storage mandates. We find that a) LDES is particularly valuable in majority wind-powered regions and regions with diminishing hydropower generation, b) seasonal operation of storage becomes cost-effective if storage capital costs fall below US$5 kWh−1, and c) mandating the installation of enough LDES to enable year-long storage cycles would reduce electricity prices during times of high demand by over 70%. Given the asset and resource diversity of the Western Interconnect, our results can provide grid planners in many regions with guidance on how LDES impacts and is impacted by energy storage mandates, investments in LDES research and development, and generation mix and transmission expansion decisions. This study models a zero-emissions Western North American grid to provide guidelines and understand the value of long-duration storage as a function of different generation mixes, transmission expansion decisions, storage costs, and storage mandates. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of economic policy uncertainty on local government debt issuance in China and identifies a transmission channel through the cost of capital. Our findings demonstrate that economic policy uncertainty raises the cost of external financing for local governments, leading to decreased levels of debt issuance. Specifically, a 1% increase in uncertainty related to economic policy variations leads to a reduction in government debt issuance of 0.0478%. In addition, our analysis reveals that local governments located in regions experiencing lower fiscal pressure, lower economic catch‐up pressure, and higher sensitivity to uncertainty are more responsive to economic policy uncertainty changes. [ABSTRACT FROM AUTHOR]

The conventional packed bed humidifiers encounter significant drawbacks such as scale formation, spray nozzle clogging, corrosion, and relatively poor effectiveness, which adversely affect their reliability and lifespan, thereby escalating their operational and capital costs. To tackle these issues, bubble column humidifiers have been proposed. The bubble column design ensures maximum air–water interaction, enhancing component effectiveness, while obviating the need for atomizers, thereby decreasing maintenance expenses, and enhancing heat and mass transfer efficiency. Moreover, studies related to a moving streams multi-stage bubble column HDH design are lacking. Therefore, this study aims to provide a theoretical analysis of various configurations of multi-stage moving streams bubble column humidifiers, aiming to bridge the performance knowledge gap between moving stream and nonmoving stream bubble column humidifiers. A mathematical model based on heat and mass transfer was developed and validated against published data. The effect of multistaging, water inlet temperature, air inlet temperature, and inlet relative humidity on the total effectiveness, outlet humidity ratio and outlet air temperature are studied. Results reveal that multistaging is effective in boosting the maximum effectiveness of single stage bubble column humidifier from 27% and 33% to about 94% and 94%, for the parallel and series configurations, respectively. Furthermore, both series and parallel configurations show similar performance with a slightly higher performance for the series arrangement. Additionally, this study discusses the operational and maintenance differences between the parallel and series multi-stage bubble column humidifiers, with the series configuration having a more straightforward operation compared to the parallel arrangement. However, the parallel configuration requires less complicated maintenance in comparison to the series multi-stage configuration. The outcomes of this study are pivotal to understanding the optimum operating conditions of the humidifier for its possible integration with the dehumidifier. Consequently, an improved humidification dehumidification (HDH) desalination system can be attained. [ABSTRACT FROM AUTHOR]

The management bodies of medical institutions for hospital care organize and direct the compilation and implementation of the financial activity of the medical facility. They develop and approve internal rules and procedures for the organization of accounting reporting in medical institutions for hospital care. The aim of the present study is to investigate the change of costs by types and their structure in the University and national Multiprofile hospitals for active treatment of the public health care system in Bulgaria. The change in costs in general for hospitals and specifically for their inpatients, as well as the capital costs for the acquisition of fixed assets, was studied. All medical institutions under the central authority of the Ministry of Health - including specialized and university hospitals are obliged to work according to the Uniform Methodology for separate reporting of costs in health institutions by types of costs and types of institutions. The costs of hospital care are constantly increasing, following the increase in the number of hospitalizations, and reaching proportions that pose a risk to the fiscal stability of the system. It is a positive fact that with the highest absolute size and relative share, personnel costs are increasing. [ABSTRACT FROM AUTHOR]

This paper investigates the inefficiencies of inputs in the hotel industry. To do this, we apply the weighted Russell directional distance model (Barros et al., 2012; Chen et al., 2014) considering an input-oriented approach. This model allows to obtain not only aggregate inefficiency measures, but also their components. In a second stage, we analyze the individual and overall efficiency measures considering several factors in a truncated Bayesian Tobit regression. The empirical analysis is based on the hotel sector of two mature Spanish destinations (the Canary and Balearic Islands). Results show that although hotels located in both regions obtain high efficiency levels, they are notably inefficient in terms of capital costs management. Furthermore, overall results show that Canarian hotels are less efficient than Balearic hotels in the management of all inputs. Finally, the type of chain and location variables appear to affect the overall and individual efficiency scores obtained by Canarian hotels. [ABSTRACT FROM AUTHOR]

Using a proprietary data set from the Shanghai and Shenzhen Stock Exchanges, we examine the relationship between Supply Chain Finance (SCF) and strategic change in core firms. Our analysis reveals that SCF facilitates strategic change in growing firms but hinders it in declining firms, with no significant effect on mature firms. In growing firms, SCF enhances risk‐taking capacity and reduces equity costs, while in declining firms, it stabilizes supply chains and increases customer concentration. In mature firms, SCF leads to strategic inertia. Economic tests suggest SCF aids firms in establishing unique competitive advantages at various stages of their life cycles. [ABSTRACT FROM AUTHOR]

The increasing volume of textile waste in landfills and incineration poses severe environmental challenges. Waste valorisation of textile waste via anaerobic digestion (AD) is preferable, as it offers economic and environmental benefits, but it is hindered by textile complexity, necessitating effective pretreatment technologies to improve biogas production. This study aims to evaluate various pretreatment technologies for biogas production from textile fibres via AD. A weighted‐scoring analysis (WSA) assessed pretreatment methods based on technical, economic, environmental and operational criteria. Hydrothermal pretreatment emerged as the most technically effective method, scoring 140 owing to its substantial methane enhancement. Economically, shredding was the most viable option, scoring 125, as a consequence of low capital and O&M cost. Environmentally, hydrothermal and deep eutectic solvent (DES) pretreatments were top performers with 100 points owing to low environmental impact and positive heat reactions. In a case study conducted in the Auckland region, the potential environmental impact (PEI) obtained from hydrothermal and DES were 169 and 92 per year, respectively, resulting in minimal environmental impact. Operationally, ultrasonic and biological pretreatments scored highest owing to their ease of operation, and minimal health and safety requirements. Overall, hydrothermal pretreatment achieved the highest WSA score of 340, reflecting its balanced performance across all criteria. Hydrothermal pretreatment is the most promising technology for enhancing biogas production from textile waste. Its technical efficiency, economic feasibility and environmental benefits regarding the WSA score make it suitable for upscaling and providing a viable solution for managing textile waste in the AD plant. © 2024 The Author(s). Journal of Chemical Technology and Biotechnology published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry (SCI). [ABSTRACT FROM AUTHOR]

SUMMARY: We study the effect of borrower-lender cross-ownership on the demand for a borrower's external audit quality in syndicated loan settings. Cross-owners, which are institutional investors who hold the equities of both the borrower and the lead lender of syndicated loans, have the ability and incentive to increase the economic benefits accruing to both contracting parties. We hypothesize that cross-owners demand high-quality audits of the borrower's financial information as a delegated monitoring device to resolve the agency cost of debt and improve contract efficiency. Our evidence shows that cross-ownership is positively associated with higher borrower audit fees, our proxy for audit quality. We also find that the effect is more pronounced for larger loans. Overall, these results suggest that cross-owners view external audits to be a viable monitoring mechanism for improving overall debt contacting efficiency. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48. [ABSTRACT FROM AUTHOR]

The relationship between ESG and firm value has been a relevant subject of study in recent years. We conducted a hybrid literature review to understand the literature's findings on this relationship and its implications in terms of cost of capital. First, a keyword co‐occurrence analysis on a 122 ABS ranked journals articles selection from Scopus database was adopted to identify and investigate the main research fields of the current literature. Then a content analysis through the bibliographic coupling of the most globally cited contributions was made, defining a final sample of 50 articles obtained through a minimum threshold of at least 15 total global citations (TGCs). We found that studies on the cost of debt configuration are more aimed at determining the implications on firm value, while most contributions on the cost of equity focus on the assessment of the risk–return profile for the investor or the construction of an ESG portfolio. Furthermore, we found that most of the literature has a consensus view on the lack of transparency behind the ESG ratings and their construction methodology, stating that disagreement on ESG ratings not only limits the results of empirical analysis, but can also negatively affect firm value due to a higher level of uncertainty. [ABSTRACT FROM AUTHOR]

Japan has been at the forefront of global efforts to accelerate climate change mitigation. Japanese firms have led in the development of decarbonization technologies and have positively disclosed climate change‐related information based on the Task Force on Climate‐related Financial Disclosures recommendations to address climate change. We explore the relationship between corporate climate change mitigation actions and the cost of capital for 2100 Japanese listed companies from 2017 to 2021. The results reveal that a higher carbon intensity correlates with an increased cost of equity, debt, and weighted average cost of capital. Interestingly, although climate‐related information disclosure is associated with an increased cost of debt, it concurrently lowers the cost of equity and overall capital. This research recommends strategic approaches for firms to reduce their costs of capital while proactively combating climate change, highlighting the divergent responses of equity and bond markets to decarbonization initiatives. [ABSTRACT FROM AUTHOR]

We examine the effect of the U.S. Securities and Exchange Commission's (SEC) oversight on the cost of equity. We argue that companies near regulatory oversight by the SEC are subject to increased scrutiny. Such heightened scrutiny, which is associated with enhanced disclosure quality, ultimately leads to a reduction in the cost of equity. We find empirical evidence supporting this hypothesis. Importantly, the cost of equity declines significantly when firms relocate their headquarters close to SEC office. Our results suggest that SEC effective external monitoring lowers the cost of equity for firms with weak governance. [ABSTRACT FROM AUTHOR]

Faced with an unprecedented demand for long-term care, European health care systems are moving towards mixed care models, where the welfare state and informal caregivers share care responsibilities. While informal care is often viewed as a means of alleviating pressure on public care, it comes with significant economic costs for caregivers, their employers, and society at large. This study uses nationally representative data to estimate the total direct (informal care time and out-of-pocket costs) and indirect (productivity) economic costs of informal care in the Netherlands in 2019. Informal care time costs are estimated using the opportunity cost and the proxy good methods. Indirect costs are estimated using the human capital and friction cost approaches. Our results reveal the considerable annual societal cost of informal care in the Netherlands, ranging between €17.5 billion and €30.1 billion, depending on the valuation approach. These costs are equivalent to 2.15% and 3.71% of Dutch GDP in 2019, comparable to the public expenditure on long-term care in that year. Female caregivers account for slightly more than half (53%–57%) of the total costs. Around 57%–88% of these costs are in the form of informal care time. The main driver of indirect costs is the temporary cessation of work, which comprises 12%–17% of the total costs. Findings corroborate that substantial resources, yet thus far largely disregarded, are spent on informal care even in a country with a relatively generous public long-term care system. [ABSTRACT FROM AUTHOR]

High‐current‐density water electrolysis is considered a promising technology for industrial‐scale green hydrogen production, which is of significant value to energy decarbonization and numerous sustainable industrial applications. To date, substantial research advancements are achieved in catalyst design for laboratory‐based water electrolysis. While the designed catalysts demonstrate remarkable performance at laboratory‐based low current densities, they suffer from marked deteriorations in both activity and long‐term stability under industrial‐level high‐current‐density operations. To provide a timely assessment that helps bridge the gap between laboratory‐scale fundamental research and industrial‐scale practical water electrolysis technology, here the current advancements in various commercial water electrolyzers are first systematically analyzed, then the key parameters including work temperature, current density, lifetime of stacks, cell efficiency, and capital cost of stacks are critically evaluated. In addition, the impact of high current density on the electrocatalytic behavior of catalysts, including intrinsic activity, long‐term stability, and mass transfer, is discussed to advance the catalyst design. Therefore, by covering a range of critical issues from fundamental material design principles to industrial‐scale performance parameters, here the future research directions in the development of highly efficient and low‐cost catalysts are presented and a procedure for screening laboratory‐designed catalysts for industrial‐scale water electrolysis is outlined. [ABSTRACT FROM AUTHOR]

This article develops a new measure of the cost of capital, the empirical average cost of capital (EACC), which is consistent with existing methods of calculating the weighted average cost of capital but uses information from the firm's financial statements and requires fewer and less subjective inputs. Our model combines the regression-based approach of asset pricing models such as the CAPM with the Implied Cost of Capital's reliance on accounting and market price data. The EACC model is very flexible and can identify the optimal balance between accounting- and market-based data that should be used when estimating the cost of capital for individual firms as well as for industries and larger economic sectors. We find the EACC yields forecasts of future net operating profit after taxes that compare favourably to five published measures of the weighted average cost of capital and is robust to several alternative tests. Overall, the results suggest the EACC can be an effective complementary method for corporate managers, investors, financial analysts, accountants, regulators, and academics in deriving estimates of a company's or industry's cost of capital. [ABSTRACT FROM AUTHOR]

We examine feedstock cost and minimum selling price for ethanol production from corn stover as a function of scale, stover yield, participation rate, and price incentives for two conversion technologies: a conventional base case featuring thermochemical pretreatment with added cellulase, and an advanced case featuring consolidated bioprocessing with cotreatment (C‐CBP). Delivered feedstock cost ranged from $85 Mg−1 at small (10 million gallons year−1 or ~38 million L year−1) scale with high yield and participation rates to $124 Mg−1 at large scale (60 million gallons year−1 or 227 million L year−1) and low yield and participation rates. The minimum ethanol selling price (MESP) was approximately twofold lower for the advanced case compared with the base case. The payback period was several times lower for the advanced case compared with the base case, with increasing disparity at smaller scales, and was highly sensitive to ethanol price supports. For both C‐CBP and the conventional processing paradigm, MESP decreased with increasing scale, indicating that the cost penalty due to higher feedstock transport distances was more than outweighed by lower capital costs. However, the cost penalty for operation at small scale, expressed in $ gallon−1 ethanol, is lower for C‐CBP than for the conventional paradigm by roughly twofold. Particularly for initial applications of C‐CBP, we speculate that this cost penalty will likely be modest compared with the anticipated benefits of small‐scale operation such as increased opportunity to use existing infrastructure, easier plant siting and supply chain establishment, and lower total investment required. [ABSTRACT FROM AUTHOR]

Objectives: The association between ultra-processed foods (UPF) consumption and cognitive performance needs to be better characterized in adolescents, especially in lowincome settings, where the cost of human capital is high. This study investigated the association between cognitive performance and UPF in adolescents from the countryside of the Brazilian Northeast. Methods: Adolescents (15-18 years old) from three public high schools were included. Food intake was assessed using three 24-hour dietary recalls. The classification of foods as UPF was determined according to the Nova classification. Cognitive performance was evaluated using the Non-Verbal General Intelligence Test. Results: 116 adolescents were included, of which 50 (43.1%) showed low cognitive performance. The average energy intake was 1973.5 kcal, with 24.2% coming from UPF. Participants with low cognitive performance consumed 26.5% (95% CI: [22.2; 30.7]%) of daily energy intake from UPF compared to 22.5% ([18.8; 26.2]%) of those with mediumhigh cognitive performance (P = 0.17), without differences in energy and macronutrient intake. Conclusion: Despite similar UPF consumption compared to the Brazilian average, no association was found between UPF consumption and cognitive performance in this lowincome adolescent sample. [ABSTRACT FROM AUTHOR]

Onsite production of gigawatt-scale wind- and solar-sourced hydrogen (H2) at industrial locations depends on the ability to store and deliver otherwise-curtailed H2 during times of power shortages. Thousands of tonnes of H2 will require storage in regions where subsurface storage is scarce, which may only be possible using liquid organic H2 carriers. We evaluate aboveground system with a focus on providing technical insights into toluene/methylcyclohexane (TOL/MCH) storage systems in locations suitable for gigawatt-scale wind- and solar-powered electrolyzer systems in the United States. Here we show that the levelized cost of storage, at a national median of US dollar $1.84/kg-H2 is spatially heterogeneous, causing minor impact on the cost of H2 supply in the Midwest, and significant impact in Central California and the Southeast. While TOL/MCH may be the cheapest aboveground bulk storage solution evaluated, upfront capital costs, modest energy efficiency, reliance on critical materials and pre-sulfided catalysts, and greenhouse gas emissions from heating are opportunities for further development. Dedicated wind-sourced hydrogen (H2) can decarbonize industries but requires thousands of tonnes of H2 storage. Storing H2 as methylcyclohexane can outcompete alternative aboveground solutions with modest effects on delivery costs. [ABSTRACT FROM AUTHOR]

Implementing corporate social responsibility (CSR) and enterprise risk management (ERM) is becoming more important, since it is an indication of a long-term sustainable business. Investigating the effects of ERM, CSR, cost of capital (CoC), and company size on the value of manufacturing sector enterprises in Indonesia is the aim of this study. 56 manufacturing companies that are listed on the Indonesia Stock Exchange and that provide annual reports and detailed financial statements for the fiscal years 2016 through 2019 make up the study’s sample. Firm value is proxied by the Tobins’q (TQ) value. CoC is determined using WACC, CSR is evaluated using each company’s disclosure index, and the firm’s size is indicated by LnTotal Assets. The data in Eviews 12 was analyzed using panel data regression. The study results show that CSR and ERM are essential to raising a company’s worth. The company value increases with the degree of ERM and CSR adoption. The study also found a significant negative correlation between company size and worth. However, this study is unable to show how capital expenses affect the value of a company. [ABSTRACT FROM AUTHOR]

This study analyzes and determines the impact of financial performance, audit quality, corporate social responsibility (CSR) on firm value through cost of capital as mediation. This type of quantitative research uses an explanatory approach and causality of as many as 565 samples for 5 years in the ASEAN banking industry. The results of this study show that financial performance, audit quality, and CSR affect the company value . Banks with good financial performance, quality audits, and good CSR distribution will be able to improve the company’s image. For this reason, banking companies must improve financial performance, audit quality, and properly carry out responsibilities. Cost of capital becomes a mediating variable that strengthens the relationship of financial performance, audit quality, and CSR to company value. For banks when their financial performance is good, checks are carried out with good audit quality, channeling social responsibility well will be a trigger for increasing company value and will indirectly reduce capital costs that must be incurred by the company. [ABSTRACT FROM AUTHOR]

At present there is no definite data regarding the number of MSMEs that utilize the Mudharabah scheme from both the East Java Cooperative Office and BPS because the provision of Mudharabah services is the right of MSMEs to provide capital, which is mostly provided by Islamic banks. Problems faced by MSME business actors include limited capital costs, deepening information technology and marketing. So it is necessary to develop a website-based e-Mudharabah system using the waterfall method and the system usability scale (SUS) testing method. The results of research on the e-Mudharabah website using the SUS testing method, obtained the results of respondents from investors, consultants, and MSME actors. The average conversion result was obtained with a result of 81,125 with the description “Excellent” with a B value scale where the conversion results were applied using the SUS method. [ABSTRACT FROM AUTHOR]

ABSTRACT It is a global priority to better manage the biosphere, but action must be informed by comprehensive data on the abundance and distribution of species. The acquisition of such information is currently constrained by high costs. DNA barcoding can speed the registration of unknown animal species, the most diverse kingdom of eukaryotes, as the BIN system automates their recognition. However, inexpensive sequencing protocols are critical as the census of all animal species is likely to require the analysis of a billion or more specimens. Barcoding involves DNA extraction followed by PCR and sequencing with the last step dominating costs until 2017. By enabling the sequencing of highly multiplexed samples, the Sequel platforms from Pacific BioSciences slashed costs by 90%, but these instruments are only deployed in core facilities because of their expense. Sequencers from Oxford Nanopore Technologies provide an escape from high capital and service costs, but their low sequence fidelity has, until recently, constrained adoption. However, the improved performance of its latest flow cells (R10.4.1) erases this barrier. This study demonstrates that a MinION flow cell can characterise an amplicon pool derived from 100,000 specimens while a Flongle flow cell can process one derived from several thousand. At $0.01 per specimen, DNA sequencing is now the least expensive step in the barcode workflow. [ABSTRACT FROM AUTHOR]

The Spherical Tokamak for Energy Production (STEP) programme hypothesizes that a compact machine offers a route to reduced capital cost that directly tackles the barrier to entry of this potentially transformative technology. History has shown that with an unsolved, complex and highly interdependent design challenge, there is a need to balance exploration of the problem with progress. Almost all complex systems arise from the evolutionary improvement of simpler systems which is an approach the programme has adopted by working through a virtual natural selection of design families towards a single concept consistent with the initiating hypothesis. Issues are uncovered and solved more rapidly this way because the effort is focused on an end. In this current phase, STEP has had to be an agile fast-moving programme to work with what emerges as well as what was planned, to sit with uncertainty and to embrace self-organizing principles. The complex decision-making and compromises in emerging trades have led to a concept respectful of the tight aspect ratio hypothesis which carefully balances cost, performance and deliverability. It remains a high-risk and high-reward programme, but the character of the challenge is better understood building confidence and enhancing capability to advance the evolving design further. This article is part of the theme issue 'Delivering Fusion Energy – The Spherical Tokamak for Energy Production (STEP)'. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the effect of Environmental, Social, and Governance (ESG) disclosure and tax avoidance on the cost of capital, with firm size serving as a moderating variable. The population of this study consists of all companies listed on the Indonesia Stock Exchange (IDX) that have been included in the SRIKEHATI index at least once, focusing on the 2018-2021 period. The sample was obtained through a purposive sampling method, and a total of 121 companies were included in the analysis. The results of the study show that ESG disclosure has a negative effect on the cost of capital, indicating that companies with better ESG practices can reduce their cost of capital. Conversely, tax avoidance was found to have a positive effect on the cost of capital, suggesting that companies engaging in tax avoidance face higher costs of capital due to the perceived risks or uncertainties related to their tax practices. Additionally, firm size was found to strengthen the relationship between ESG disclosure and tax avoidance on the cost of capital, indicating that larger firms experience more pronounced effects of ESG practices and tax strategies on their capital costs. This research contributes to the understanding of how ESG disclosure and tax strategies influence financing costs, especially for larger firms in the Indonesian market. [ABSTRACT FROM AUTHOR]

Purpose: Psychotic disorders are associated with substantial productivity costs; however no previous studies have compared these between schizophrenia spectrum (SSD) and other psychotic disorders (OP). The human capital method (HCM) and the friction cost method (FCM) are the two most common approaches to assess productivity costs. The HCM focuses on employees' perspectives on the costs, whereas the FCM demonstrates employers' perspectives. Studies comparing these methods when estimating the productivity costs of psychoses are lacking. Methods: Utilizing the Northern Finland Birth Cohort 1966 with linkages to national registers, we compared the adjusted productivity costs of SSD (n = 216) and OP (n = 217). The productivity costs were estimated from ages 18 to 53 including projections to statutory retirement age using the FCM and HCM. Results: When estimated via the HCM, productivity losses were higher for SSD (€193,940) than for OP (€163,080). However, when assessed using the FCM, costs were significantly lower for SSD (€2,720) than for OP (€4,430). Productivity costs varied by sex and various clinical and occupational factors. Conclusion: This study highlights how productivity costs vary by psychosis diagnosis. These differences should be noted when planning interventions. The low FCM estimates indicate the need of interventions before or during the early phases of psychoses. From a societal perspective, interventions are needed, particularly for those with highest HCM productivity losses, such as males with SSD. Besides psychiatric services, the roles of social services, employment agencies and occupational health care should be considered when helping individuals with psychoses to working life. [ABSTRACT FROM AUTHOR]

Introduction: Protocol-driven trial activities contribute to the utility gain demonstrated in the phase III clinical trial of a new drug. If this utility gain cannot be distinguished from the effects of the new drug itself, protocol-driven trial costs cannot be easily dismissed for consistency reasons. This study aims to estimate the impact of including per-patient costs of phase III clinical trials on the incremental cost-effectiveness ratio (ICER). Methods: The analysis utilized a modeling approach with secondary data from an ad-hoc literature review, considering both societal and payer perspectives. While the costs of phase III clinical trials may cancel out during the period of "normal" life-years due to the incremental cost calculation, they do not cancel out when differential early treatment termination occurs (e.g., due to differential mortality). Assuming the presence of differential mortality, per-patient phase III trial costs were calculated for the period of added life-years. These costs were then included in the ICER of a new drug, under the assumption that direct patient-related costs constitute 30–70% of the total trial costs. Capital costs were also incorporated from a societal perspective. Results: Based on assumptions of $40,000 out-of-pocket expenses per patient enrolled in a phase III trial and a life expectancy gain of three months, incremental costs increased by $27,000 from a societal perspective. From a payer perspective, the estimate was $12,000. Conclusions: The costs of phase III trials are a relevant component of the ICER, and excluding it is generally not appropriate for consistency reasons. Properly considering these trial costs is essential for a comprehensive evaluation of a new drug's cost-effectiveness. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the effect of ESG controversies and their moderating role in ESG performance and the cost of equity and overall, short-term and long-term debt capital relationship in European listed companies. Design/methodology/approach: The study employs two-way fixed effects panel linear regression models on the balanced longitudinal dataset of 231 European non-financial companies listed in the MSCI Europe Index in 2017–2022. To check the robustness, the study utilises the fixed effects logistic regression models with heteroskedasticity-consistent standard errors. Findings: The study reveals the significant effect of ESG performance (negative) and ESG controversies (negative) on the cost of debt capital and the substantial moderating effect of ESG controversies (positive). Additionally, it provides empirical evidence of the crossover moderating effect of ESG controversies in ESG performance and cost of equity relationship. Research limitations/implications: The findings contribute to corporate practice and empirically support legitimacy and stakeholder theories. Practical implications: Companies can utilise the results to proactively enhance their internal policies and behaviour to align with ESG practices and avoid ESG controversies, which will translate into reduced equity capital costs for shareholders and a lower cost of debt capital charged by creditors. Originality/value: To the best of the authors' knowledge, this is the first study to comprehensively investigate the influence of ESG controversies and their moderating effect in the context of the equity and debt capital cost for European listed companies. [ABSTRACT FROM AUTHOR]

As the largest emitter of greenhouse gases, the energy sector is expected to make significant investments in green transformation to help combat climate change. However, the effect of climate risk on sector firms' cost of capital has been neglected in the literature. This study fills this gap by investigating the impact of climate change and environmental performance on the cost of capital in the energy sector using a large sample of energy firms from 34 countries. Specifically, we comparatively examine the impact of climate risk on weighted average cost of capital, cost of debt, and cost of equity for fossil fuel and renewable energy firms. Moreover, we examine the moderating role of corporate environmental performance on the relationship between climate risk and the cost of capital. Our results suggest that energy firms domiciled in countries with higher exposure to climate change have a significantly higher weighted average cost of capital, cost of equity, and cost of debt than the firms domiciled in countries with lower exposure to climate change. However, this effect is significantly stronger for fossil fuel firms than for renewable energy firms. Importantly, energy firms, both fossil fuel and renewable energy, can mitigate the adverse effect of climate change on their cost of capital by engaging in pro‐environmental policies. These findings suggest that climate risk exposure and the environmental performance of energy firms are important factors to consider when designing policies to accelerate the green transformation of the energy sector. [ABSTRACT FROM AUTHOR]

Automated construction has become urgently needed because the construction industry faces labor safety and cost challenges. However, these developments require investments in new equipment to facilitate automation in construction, resulting in even higher capital costs. Therefore, the research proposes a gravity-triggered rotational connecting (GTRC) method for automating segmental bridge construction. In this automated construction method, a segment-to-segment connector is developed to exploit an eccentric moment introduced by gravity and achieve segmental connections. For implementation, a specific rigging method is presented for a conventional telescopic crane to maintain a particular orientation. Meanwhile, crane path planning is also proposed to guide one segment toward the other segment. A combined computational and experimental verification program is established and employs a simply supported bridge as an example for the proposed method. With the designed connector and rigging assembly, the proposed method is computationally and experimentally verified to automate segmental bridge construction. [ABSTRACT FROM AUTHOR]

Estimated marked‐to‐market values of guaranteeing debt ex ante for all available publicly traded US corporations from Q4 1971 to Q4 2022 reveal that the largest estimates periodically arise with a handful of large financial corporations, but significant estimates can arise for nonfinancial corporations. In real Q1 2010 US dollars, the aggregate cost of guaranteeing debt reached $983 billion in Q1 2009 and $284.78 billion in Q1 2020 during the COVID‐19 pandemic. Large observed guarantee estimates may reflect moral hazard, but also concerns about avoiding substantial increases in unemployment or maintaining the provision of essential services during national emergencies. [ABSTRACT FROM AUTHOR]

Private firms in China are contributing immensely to the country's economic growth. However, increasing the capital cost of private firms in China is a big challenge that needs to be addressed. This study intends to examine the role of optimal corporate social responsibility (CSR) investment while lowering the cost of equity capital and debt capital in Chinese private firms. In addition, this research study reveals the moderating role of state‐owned shares in the association between CSR and private firms' capital costs. By taking a sample of Chinese private firms from 2011 to 2021, this study employs the CSR optimization method. The findings show that CSR optimization tends to reduce the cost of equity capital and debt capital in Chinese private firms. Further investigation shows that over‐investment in CSR increases the cost of capital. Moreover, an increase in state‐owned shares strengthens the negative relationship between the cost of debt capital and optimal CSR investments. The present study's findings are helpful for Chinese firms to undertake optimal CSR investment. [ABSTRACT FROM AUTHOR]

A dual holder simultaneously owns (private) debt and equity in the same firm. Private debt has a tax advantage, a positive cashflow, which incentivizes its use. This cashflow leads to a lower net cost of debt, which again reduces default risk as well as the cost of external debt. The usual trade‐off between tax benefits and bankruptcy costs is altered. Debt priority affects both financing and default decisions. We find that an enterprise‐value maximizing firm should issue senior, external debt and junior, private debt, rather than debt with pari‐passu priority. Our analysis further highlights that tax authorities can effectively curtail the tax‐motivated use of private debt through straightforward measures. [ABSTRACT FROM AUTHOR]

This study examines the effect of cash flow risk on the implied cost of equity capital. Empirical results indicate that firms with higher levels of cash flow risk are associated with more expensive equity financing. This positive relationship holds firmly after addressing potential endogeneity and is robust to alternative measures of cash flow risk and the implied cost of equity capital. Moreover, under the influence of firm quality, the positive relationship is more pronounced for firms with younger age and smaller size. [ABSTRACT FROM AUTHOR]

This study argues that different definitions/perceptions of risk information could affect investors' decisions differently. Using a sample of 328 non‐financial UK firms and departing from existing literature, this study measures corporate risk disclosure (RD) via computerized content analysis to capture four different perspectives of defining RD. This study investigates (i) the effects of these RD measures on the Cost of Capital (COC), (ii) the influence of analysts' coverage on the relationship between RD and COC, and (iii) whether the RD nature (favourable/unfavourable) might affect COC differently. Lenders and equity holders are found not to consider any risk information expressed as a variation around a target, while only lenders consider risk information that reveals negative outcomes. However, lenders and equity holders consider risk information that expresses negative and positive outcomes together. Besides, firms that disclose extra risk information and have a large analyst following suffer from a higher Cost of Equity (COE) compared with those with fewer analysts following. Additionally, lenders impose a lower interest rate on firms with a higher unfavourable RD, while equity holders ask for lower returns from the firms with a higher favourable RD. The study has significant implications for capital market participants, researchers, and policymakers. [ABSTRACT FROM AUTHOR]

Studies have argued that water risk affects corporate sustainability, but few of them have fully explored whether or not and how water resources have a direct impact on corporate finance and strategy. This study takes the listed companies in the Chinese A-share market from 2019 to 2023 as a sample to understand the threat of water vulnerability to corporate sustainability from the perspective of capital cost. This study argues that water vulnerability positively relates to corporate capital cost by increasing corporate financing constraints. Meanwhile, this study also examines the role of water regulation and water investment in the relationship between water vulnerability and corporate capital cost. Water regulation brings legitimate pressure to corporations and increases the transformation risks faced by them, so it has a positive moderating effect. Water investment can alleviate the vulnerability of local water resources and reduce the physical water risk faced by corporations, so it has a negative moderating effect. The study finds that the two measures mainly play a significant moderating effect on the cost of debt. In addition, the study finds that the positive relationship between water vulnerability and capital cost has industrial and firm-level heterogeneity, while the moderating effect of government water governance has only industrial heterogeneity. [ABSTRACT FROM AUTHOR]

The capture of value from public land has emerged as a central concern in recent scholarship on urban financialization. Drawing on the case of local authority housing companies in London, this paper explores why and how the local state is engaging in an increasingly speculative mode of land development, and with what effects. By conceptualizing state-led value capture as a political technology of risk management that operates across scales, I develop two key arguments. First, I argue that struggles over the allocation of the risks and costs of public debt have shaped local authorities' speculative engagement with land. Unlike the case of US municipalities that are structurally reliant on private bond markets, I show how local authorities' growth politics have been underwritten by the central state and accelerated by budgetary austerity. Second, I argue that this translocation of risk at the scale of the local gives rise to a form of state power organized around the allocation, production, and constant monitoring of financial and political risks. The politics of risk that underpin municipal experiments in state-led value capture combine an embrace of uncertainty and value expansion, with the principles of austerity budgeting, downscaling, and retrenchment. Ultimately, the effects of this form of state intervention are a heightening of uneven development, an exacerbation of local fiscal crisis, and a weakening of democratic governance. [ABSTRACT FROM AUTHOR]

During the construction of offshore wind farms (OWFs), the capital cost associated with the collector system topology (CST) constitutes a significant proportion of the overall investment. A more efficient solution for connecting submarine cables can lead to substantial cost savings. To address this challenge, this paper introduces a novel approach that divides wind turbines into groups by polar coordinates to satisfy the no cross constraint. Subsequently, meta-heuristic algorithms are employed to optimize the grouping arrangement through iterative processes. In this way, the complex high-dimensional and multi-parameter problem will be decomposed into multiple parts for resolution. This paper evaluates four optimization algorithms to compare their effectiveness in optimizing the grouping results. Two different OWF scenarios are considered in the case studies to assess the performance of the proposed algorithms. Through extensive simulations and case studies, the results demonstrate the effectiveness and robustness of proposed approaches in achieving high-quality solutions while satisfying the constraints imposed by OWF operations and environmental conditions. Among the four algorithms, the immune algorithm stands out for its superior ability to provide more cost-effective solutions, which suggest that the immune algorithm-based optimization method can significantly contribute to the design and development of efficient CST for OWFs. [ABSTRACT FROM AUTHOR]

The operations and maintenance phase is typically the longest phase within the building life cycle. Proper and consistent building maintenance is imperative for several reasons, including extending the life of buildings, improving occupants' comfort and safety, and ultimately saving on long-term costs. Budgets for maintenance should be foreseen. The costs of statutory periodic inspections, the costs of replacing worn materials and elements, the costs of periodic works and repairs, the costs of reactive maintenance and the costs of operation will be shown for the analyzed building—a school. This paper outlines the development of a 15-year maintenance plan and program for the building, covering the period from 2024 to 2038. The plan incorporates a discount rate of 3.64% and accounts for inflation when calculating costs. The present value of the costs of maintenance and operation of the building for 15 years is EUR 1,978,292.20 and the largest share of these costs is the operation cost of the building with EUR 1,599,002.18 (80.83%). A sensitivity analysis was conducted by varying the discount rate and analysis period, resulting in recalculated present values for maintenance costs. The analysis reveals a correlation of 26.73% between the present value of maintenance and operation costs over a 15-year period and the associated capital costs. [ABSTRACT FROM AUTHOR]

Background: Virtual interviews are still recommended for fellowship applications, 3 years after the beginning of the COVID-19 pandemic. Improving equity by reducing the cost for the applicants has been the most important reason for continuing virtual interviews. However, some argue that important information may be missed in a virtual setting. Our objective was to assess the perspective of Gastroenterology (GI) fellowship interviewers and applicants toward virtual interviews. Methods: We designed two different anonymous surveys directed at GI programs and GI applicants who were interviewed for GI fellowship programs from 2020 to 2022 and matched to a GI program. Survey links were emailed to the Program Directors (PDs) and Program Coordinators via the AGA listserv starting in January 2023. A descriptive analysis was performed using Excel, and Fisher's exact tests were performed using R version 4.3.1. Results: Sixty-one applicants and 79 interviewers responded to our survey. More than 80% of applicants strongly agreed (n = 36; 59%) and agreed (n = 14; 23%) that they would prefer in-person interviews if money was not an issue. When applicants were asked about the interview format in order of their preference, "in-person, hybrid, virtual" was the most popular answer (n = 16; 26.2%). Most interviewers (n = 47; 59.5%) do not prefer virtual interviews over in-person interviews. Furthermore, some interviewers were rarely able to judge the applicants' interpersonal (n = 17; 21.5%) and ethical skills (n = 16; 20.3%). These results differed according to the type of interviewer (p = 0.013 and 0.018, respectively). Conclusion: Based on our survey, most programs still prefer in-person interviews. Despite the several advantages of virtual interviews, the majority of applicants would prefer an in-person setting if the financial burden was not a factor. Nonetheless, many applicants think that the cost savings outweigh all the disadvantages associated with virtual interviews. The lack of empathy, personal connections, and engagement may impact the ability of interviewers to judge and ultimately rank a candidate. The virtual interview is here to stay, and we need input from the applicants and the interviewers to make the process more productive. [ABSTRACT FROM AUTHOR]

In the Kashmir region of Pakistan, the presence of Siwalik clays engenders serviceability issues to the infrastructure causing substantial loss of property. In this study, an attempt has been made to address these issues using polypropylene fibres (PPFs) as a sustainable modifier. These fibres were used in five different proportions, namely 0.25, 0.5, 0.75, 1 and 1.25% as partial replacement of base soil to analyse their impact on the engineering behaviour of matrices. Classification, compaction, indirect tensile, unconfined and triaxial compression, swell potential, consolidation and California bearing ratio (CBR) tests were conducted on controlled as well as reinforced-clay samples for comparative analyses. The maximum improvements were observed in unconfined compressive strength (109%), tensile strength (300%), cohesion (13%), friction angle (110%), soaked CBR (800%) and un-soaked CBR (550%). Besides, the reduction in swelling strain by 92% was also recorded corresponding to 1 kPa effective vertical stress. The capital cost analyses showed that PPFs reduced the costs of backfill behind the retaining wall and foundation soil beneath isolated footing by 21 and 44.5%, respectively. Moreover, the modifier had no adverse effect on the aqueous media. Conclusively, PPFs can be used as sustainable modifiers leading to a potential solution for serviceability issues. [ABSTRACT FROM AUTHOR]

Amidst increasing global attention on corporate environmental responsibility, the impact of carbon emission disclosure on financial outcomes remains a pertinent question. Existing literature suggests that transparency in carbon disclosure can influence investor perception and capital costs, yet detailed mechanisms and broader economic implications are less understood. In this study, using data from Chinese publicly traded companies from 2017 to 2022, we investigate how carbon emission disclosure affects the implied cost of capital, with a focus on the mediating role of stock liquidity. Our findings reveal that enhanced transparency in carbon reporting significantly lowers the implied cost of capital by improving stock liquidity, a previously underexplored channel. This effect is particularly pronounced in sectors with high carbon footprints and within regions emphasizing sustainable finance policies. The results underscore the economic benefits of environmental transparency, suggesting that robust disclosure practices can serve as a strategic tool for firms to reduce financing costs while contributing to broader sustainability goals. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide a conceptual understanding of the drivers and outcomes of actor opportunism in the context of the three key actors of the sharing economy – the service provider, the platform and the consumer. Design/methodology/approach: The research uses a conceptual approach by drawing on literature from within and outside of marketing. Findings: The current research introduces a conceptual framework of opportunism in the sharing economy with seven underlying propositions. The framework posits a U-shaped moderating effect of social capital for the relationship between opportunism and its drivers, actor vulnerability and asset specificity. Furthermore, a 2 × 2 matrix consisting of two types of opportunistic behaviors (active and passive) and two coping strategies by other actors (defensive and nondefensive) suggests that passive opportunism tends to lead to value codestruction independently of the coping strategies employed by other actors. Counterintuitively, the combination of active opportunism and defensive coping strategy presents an opportunity for value cocreation due to its potential to break up older structures and generate new ones. Research limitations/implications: While our research provides a higher-level understanding of opportunism pertaining to platform, consumers and service providers in the sharing economy, future research could situate our framework within specific regulatory environments, incorporate the role of competitors and examine individual interaction effects between type of opportunism and coping strategies. Practical implications: The framework enables service providers, platforms and consumers to identify drivers of opportunistic behaviors of their partners and discern instances in which opportunistic behaviors lead to value codestruction for all actors. Originality/value: This research transcends prior work on the bright and dark sides of the sharing economy by identifying its dynamic nature and examining the contributing role of opportunism. [ABSTRACT FROM AUTHOR]

The present study seeks to examine the interaction among three separate variables. The initial variable relates to the organization's life cycle and financial attributes. The second variable pertains to the procedures of firm management that influence performance and financial condition, as demonstrated by earnings management. Investors manage the impact of the previous two factors by weighing the risks and potential gains, which the corporation terms as "the cost of equity." We utilized these variables to analyze 15 Iraqi commercial banks that have been listed on the Iraq Stock Exchange for 10 years, equivalent to 150 observations. Our quantitative assessment of the study variables, conducted using models from the relevant literature, has yielded significant findings. We have uncovered a direct correlation between the life cycle and earnings management, indicating a beneficial association. Moreover, we have revealed that each factor exerts a unique and favourable influence on the cost of equity. The correlation between the life cycle and earnings management has led to an increase in the favourable influence of earnings management on the cost of equity. Conversely, the life cycle now has an inverse impact on the cost of equity, with the cost of equity being mainly influenced by the maturity stage. These findings have important implications for stock market traders, as they guide them to direct their investments towards banks that offer higher returns relative to the level of risk, considering the age group and the administration's approach to managing announced profits. This study's implications for stock market traders are significant, as it provides them with valuable insights for making informed investment decisions. It also serves as a guide for future studies in this field. [ABSTRACT FROM AUTHOR]

This study investigates the ESG performance–systemic risk (SR) nexus among Indian companies. Using the beta coefficient from the Capital Asset Pricing Model (CAPM) and statistical analysis, it explores how ESG performance affects SR. The findings reveal that firms with higher ESG scores have lower SR sensitivity. Notably, there is a significant difference in risk sensitivity between high- and low-ESG-rated companies, with ESG effects being less pronounced in high-cap firms compared to low-cap firms. Conversely, large firms, older firms, and those with lower borrowing costs show a diminished effect of ESG ratings on their SR sensitivity. These results underscore the importance of firm-specific characteristics in determining the efficacy of ESG strategies in risk mitigation. This study reveals that ESG performance reduces SR, with market valuation affecting this relationship. [ABSTRACT FROM AUTHOR]