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Changes in the propagation of shocks along firm networks are important to understanding aggregate and cross-sectional features of stock returns. When calibrated to match key characteristics of supplier–customer networks in the United States, a model in which firms are interlinked via enduring relationships generates long-run consumption risks, high and volatile risk premiums, and a small and stable risk-free rate. The model also matches cross-sectional patterns of portfolio returns sorted by firm centrality, a feature unaccounted for by standard asset pricing models. (JEL C67, E30, G12, L14) [ABSTRACT FROM AUTHOR]

We document and explain the sharp performance deterioration of smart beta indexes after the corresponding exchange-traded funds (ETFs) are launched for investment. While smart beta is purported to deliver excess returns through factor exposures, the market-adjusted return of smart beta indexes drops from about 3% "on paper" before ETF listings to about −0.50% to −1% after ETF listings. This performance decline cannot be explained by variation in factor premia, strategic timing, or diminishing returns to scale. Instead, we find strong evidence of data mining in the construction of smart beta indexes, which helps ETFs attract flows, as investors respond positively to backtests. [ABSTRACT FROM AUTHOR]

In a general equilibrium framework, we show that banks may "buy" political influence at a discount: They offer disproportionately small campaign contributions compared to the influence they exert, thus generating abnormal returns. We distinguish between the direct effect of contributions which, as a cost, reduce bank returns, and the indirect effect of contributions which boost returns via inducing bank-favoring policies. Therefore, abnormal returns may or may not increase with the amount of contributions, depending on which effect dominates: Stricter capital requirements decrease contributions and abnormal returns. When politicians attach more weight to households' welfare, contributions increase and abnormal returns decrease. [ABSTRACT FROM AUTHOR]

Direct-to-consumer firms increasingly believe that influencer marketing is an effective option for seeding. However, the current managerially relevant question for direct-to-consumer firms of whether to target low- or high-followership influencers to generate immediate revenue is still unresolved. In this article, the authors' goal is to answer this question by considering for the first time the whole influencer-marketing funnel, that is, from followers on user-generated content networks (e.g., on Instagram), to reached followers, to engagement, to actual revenue, while accounting for the cost of paid endorsements. The authors find that low-followership targeting outperforms high-followership targeting by order of magnitude across three performance (return on investment) metrics. A mediation analysis reveals that engagement can explain the negative relationship between the influencer followership levels and return on investment. This is in line with the rationale based on social capital theory that with higher followership levels of an influencer, the engagement between an influencer and their followers decreases. These two findings are derived from secondary sales data of 1,881,533 purchases and results of three full-fledged field studies with hundreds of paid influencer endorsements, establishing the robustness of the findings. [ABSTRACT FROM AUTHOR]

We conjecture that mutual funds with large shares of outstanding bond issues are more inclined to internalize the negative price spillovers of fire sales and thus sell their holdings in those issues, to a lower extent, when they experience redemptions. We provide evidence consistent with this conjecture and further show that ownership concentration limits bonds' exposures to flow-induced fire sales. We exploit variation in negative spillovers arising from the Fed's SMCCF to confirm the economic mechanism and explore our findings' implications for fund performance and fire-sale spillovers to other funds. [ABSTRACT FROM AUTHOR]

We analyze how interdependencies in financial networks can lead to self-fulfilling insolvencies and multiple possible equilibrium outcomes. Multiplicity arises if a certain type of dependency cycle exists in the network. We show that finding the cheapest bailout policy that prevents self-fulfilling insolvencies is computationally hard, but that the optimal policy has intuitive features in some typical network structures. Leveraging indirect benefits ensures systemic solvency at a cost that never exceeds half of the overall shortfall. In core-periphery networks, it is optimal to bail out peripheral banks first as opposed to core banks. [ABSTRACT FROM AUTHOR]

We present a method for determining whether errors in expectations explain asset pricing puzzles without imposing assumptions about the error mechanism. Using accounting identities and survey forecasts, we find that errors in expected long-term inflation explain price variation, return predictability, and the rejection of the expectations hypothesis for aggregate stock and bond markets. Errors in short-term (long-term) nominal earnings growth expectations explain (do not explain) stock price variation and return predictability. The relevant errors are consistent with mistakes about the persistence of forecasted variables and the response to surprises. A simple framework based on fundamental extrapolation successfully replicates these findings. (JEL G40, G12, G14, E71) [ABSTRACT FROM AUTHOR]

Analyzing 48 foreign exchange (FX) rates and 1.2 million FX-related news articles over a 35-year period, using digital textual analysis, we find that a currency reversal investment strategy that buys (sells) currencies with low (high) media sentiment offers strong positive and statistically significant returns and Sharpe ratios. The results are robust and the strategy adds value over other currency premia determinants. Analysts' forecasts systematically mispredict the reversal strategy. This is the first article to show that price reversals based on media sentiment are a well-defined feature of the FX market. [ABSTRACT FROM AUTHOR]

The number of short campaigns by hedge funds has dramatically increased over the last two decades. Nearly 80% of campaigns are undertaken by activist hedge funds, particularly those that employ hostile tactics in their long campaigns. Short campaigns are associated with negative abnormal returns of –7%, with aggregate valuation effects similar in magnitude to the gains from long activism campaigns. In contrast to long campaigns, public communication is a critical component of short campaigns. We do not find evidence that such communication is manipulative. Overall, our analysis highlights the importance of short campaigns for understanding the economic impact of activist hedge funds. [ABSTRACT FROM AUTHOR]

New brand launches are notoriously risky, with high failure rates. Yet, most research focuses on the out-of-store factors inherent to their success/failure, overlooking strategies that can be employed in-store. The present research addresses this oversight by examining the influence of two in-store factors, distraction and shelf position, and their impact on a new brand's visibility on the shelf. We draw on a unique data set featuring a real-life new brand entrant into the Australian market. Using an experimental design in a shopper laboratory, and mobile eye-tracking, we find that the new brand stands a greater chance of being noticed and visually attended to on the shelf when shoppers are distracted. This is attributed to shoppers dwelling longer in front of the fixture, being more open to new-to-the-consumer brands, and by negatively affecting the top-down processing of existing brands on the shelf. We also find that optimising shelf position, which is a common in-store marketing tactic for existing brands, may not produce the same return on investment for a new brand. The findings offer valuable theoretical and practical implications for improving the success rates of new brand launches, including selection of distribution channels, allocation of marketing resources, and the interplay between in-store and out-of-sore factors driving shopper behaviour. [ABSTRACT FROM AUTHOR]

This article investigates spillovers from foreign economies to the U.S. through changes in long-term Treasury yields. We document a decline in the contribution of U.S. domestic news to the variance of long-term Treasury yields and an increased importance of overnight yield changes, a proxy for foreign shocks' contribution to U.S. yields. A model that identifies U.S., Euro area, and U.K. shocks that move global yields suggests that foreign shocks account for at least 20% of the daily variation in long-term U.S. yields in recent years. We also document the predictability of long-term U.S. yields by the U.S.–foreign yield spread. [ABSTRACT FROM AUTHOR]

We estimate a narrative factor pricing model from news text of The Wall Street Journal. Our empirical method integrates topic modeling (LDA), latent factor analysis (IPCA), and variable selection (group lasso). Narrative factors achieve higher out-of-sample Sharpe ratios and smaller pricing errors than standard characteristic-based factor models and predict future investment opportunities in a manner consistent with the ICAPM. We derive an interpretation of the estimated risk factors from narratives in the underlying article text. 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]

We find that the Campbell–Cochrane external-habit model can generate a value premium if the persistence of the consumption surplus is sufficiently low. Such low persistence is supported by micro evidence on consumption. If the mean and conditional volatility of consumption growth are highly persistent, as in the Bansal–Yaron long-run risk model, then fast-moving habit can also generate, without eroding the value premium: i) empirically sensible long horizon return predictability; and ii) a price–dividend ratio for market equity that exhibits the high autocorrelation found in the data. Fast-moving habit also delivers several empirical properties of market-dividend strips. [ABSTRACT FROM AUTHOR]

Municipal bond markets began pricing sea-level rise (SLR) exposure risk in 2013, coinciding with upward revisions to worst-case SLR projections and accompanying uncertainty around these projections. The effect is larger for long-maturity bonds and not solely driven by near-term flood risk. We use a structural model of credit risk to quantify the implied economic impact and distinguish between the effects of underlying asset values and of uncertainty. The SLR exposure premium exhibits a trend different from house prices and is unaffected by house price controls. Together, our results highlight the importance of climate uncertainty in driving municipal bond prices. 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]

Return on investment for many college degrees has decreased over the years, and the decisions of high school students on which college/university to attend and what major to select carry increasingly burdensome financial consequences. Colleges and universities display a conflict of interest between a desire to increase enrollment and disclosing the waning return on investment to consumers. This conflict of interest creates an asymmetry of information for a high school student, leading to a decrease in effective financial decision making. Financial professionals are uniquely positioned to help students navigate this decision-making process using the transtheoretical model of change. [ABSTRACT FROM AUTHOR]

This paper documents that U.S. equity returns are large and positive during the opening hours of European markets. These returns are pervasive and highly economically and statistically significant. Consistent with models of inventory risk, we demonstrate a strong relationship with order imbalances at the close of the preceding U.S. trading day. Rationalizing unconditionally positive "overnight drift" returns, we uncover an asymmetric reaction to demand shocks: market sell-offs generate robust positive overnight reversals, while reversals following market rallies are much more modest. We argue that demand shock asymmetry can arise in inventory management models with time-varying market maker risk-bearing capacity. 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]

Going public by merging with a Special Purpose Acquisition Company (SPAC) is much more expensive than conducting a traditional IPO. We rationalize why some companies merge with a SPAC by listing the potential benefits. We analyze the agency problems that certain SPAC features address. SPAC IPO investors and deal sponsors have earned remarkably high annualized average returns, although we warn that recent deals are likely to disappoint. Public investors in the merged companies have earned very low market-adjusted returns on an equally weighted basis, although high redemptions on the worst deals have limited the amount of money that they lost. 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]

Drawing upon more than 12 million observations over the period from 1996 to 2020, we find that allowing for nonlinearities significantly increases the out-of-sample performance of option and stock characteristics in predicting future option returns. The nonlinear machine learning models generate statistically and economically sizable profits in the long-short portfolios of equity options even after accounting for transaction costs. Although option-based characteristics are the most important standalone predictors, stock-based measures offer substantial incremental predictive power when considered alongside option-based characteristics. Finally, we provide compelling evidence that option return predictability is driven by informational frictions and option mispricing. 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]

Research background and significance: As China's economy continues its rapid expansion, the issue of environmental degradation has escalated, particularly within industries with significant environmental impact, such as steel, chemical, pharmaceutical sectors. These sectors are confronted with profound environmental and social responsibility challenges. The development of robust Environmental, Social, and Governance (ESG) systems has therefore become essential for improving environmental performance, meeting social responsibilities, and optimizing corporate governance structures. This study investigates the impact of ESG system implementation on the financial performance of enterprises within these environmentally impactful industries, offering a scientific foundation and practical guidance for corporate leaders and policymakers to facilitate green transformation and sustainable development. Methods and data: This research integrates empirical analysis with case studies, employing a dataset of 2,376 observations from 792 listed companies within industries with significant environmental impact, spanning the period from 2019 to 2021. The data, sourced from the Wind database, were analyzed using multiple regression techniques. The findings reveal a significant positive relationship between overall ESG scores and corporate performance, measured by Return on Equity (ROE) and Return on Assets (ROA). All three ESG dimensions—environmental (E), social (S), and governance (G)—exhibit positive impacts on corporate performance. Furthermore, factors such as company size and growth rate are positively correlated with performance, whereas leverage ratio is negatively correlated. To further substantiate the empirical findings, a case study of Hunan Valin Steel Co., Ltd. was conducted. Results and conclusions: The findings of this study demonstrate that the implementation of ESG systems substantially enhances the financial performance of enterprises within industries characterized by significant environmental impacts. Specifically, investments in environmental protection led to greater resource utilization efficiency, social responsibility initiatives foster enhanced employee productivity and customer loyalty, and strong corporate governance improves management structures and decision-making processes. The case study of Hunan Valin Steel Co., Ltd. reinforces these results, illustrating that a comprehensive ESG framework not only helps such enterprises achieve their environmental and social responsibility objectives but also markedly improves their financial outcomes. This research provides robust empirical evidence and actionable management recommendations for ESG system implementation in environmentally impactful industries, along with scientific support for informed policymaking. [ABSTRACT FROM AUTHOR]

The healthcare sector is ubiquitously plagued by workforce shortages in economies around the globe. The fragility of this structural shortage becomes apparent when external shocks, such as the COVID-19 pandemic, exacerbate the lack of workers in clinical practice. In this article, we summarize current trends in healthcare workforce development across the globe, review theoretical concepts of workforce shortages, and discuss policies to address them. In practice, developed countries often address workforce shortages with targeted migration policies. However, targeted workforce migration policies only intensify workforce shortages in low-and middle-income countries. Theoretical macroeconomic models suggest that supply shortages may result from too low wages, supply lagging behind demand, and social perception. Changes in the wage rate cannot sufficiently increase the supply of health professionals as scholars find inelastic wages for physicians and nurses. Nonpecuniary factors such as working conditions, job satisfaction, and intrinsic motivation are at least equally important as financial incentives. In conclusion, increased wages can only be part of a heterogeneous policy plan to address shortages. Migration and retirement levels of health professionals can temporarily mitigate workforce shortages but rarely change the underlying systemic issues. Increasing the number of places available in medical and nursing schools while also improving, both, financial and nonfinancial incentives for employees are long-term structural policy options. [ABSTRACT FROM AUTHOR]

The outbreak of the COVID-19 pandemic had tremendously impacted the tourism sector. The worldwide movement restrictions implemented during the pandemic had put a halt on international travel and changed tourists' travel behaviour. Tourism Malaysia reported a great drop in the country's tourism revenue for 2020 and 2021, resulting from the COVID-19 hit. To cope with the catastrophic effects of the pandemic on tourism performance, domestic tourism has been the main focus to draw local tourists' attention away from the hazards of uncertainty. In this context, the stakeholders' understanding of Malaysian tourists' travel behaviour intentions following this catastrophe is vital to develop long-term recovery strategies and ensuring the sustainability of the tourism industry, moving forward. Studies which attempt to discover tourists' travel behaviour intentions, especially in light of COVID-19's unprecedented impact on Malaysians, are still very limited in number. This study, therefore, investigated the factors that affected Malaysian tourists' travel behaviour intentions after the COVID-19 pandemic. Relying on the enhanced Theory of Planned Behaviour, the factors constraining travel such as attitudes, subjective norms, perceived behaviour control, and perceived risks, which are highly related to tourists' travel behavioural intentions, were selected. Through a quantitative research approach, questionnaires were distributed to Malaysian tourists. The total sample size was 300 respondents. The findings demonstrate that most of the Malaysian tourists' travel behavioural intentions were affected by attitudes, subjective norms, perceived behaviour control, and perceived risks. However, perceived behaviour control was found to have the greatest impact on Malaysian tourists' travel behaviour intentions, followed by attitude, subjective norms, and perceived dangers. It was revealed that their travel behaviour intentions were influenced by the COVID-19 pandemic. Thus, considering the travel behaviour intentions of the Malaysian tourists, a comprehensive plan must be devised to enable stakeholders involved in tourism recovery post-COVID-19 to develop focused marketing or promotional strategies to generate significant influence and return on investment in order to stimulate the performance of the tourism industry. [ABSTRACT FROM AUTHOR]

Prohexadione calcium is a growth regulator, which manages excessive vine growth in peanut (Arachis hypogaea L.) by reducing shoot internode length. To test the effect of prohexadione calcium on peanut, a field experiment was conducted at the West Florida Research and Education Center in Jay, FL, during 2021 and 2022. The objective was to determine peanut response at different rates (untreated control, 70, 105, 140, and 175 g a.i. ha−1 of prohexadione calcium). Data were collected on yield, peg strength, above‐ and belowground biomass, plant height, and total sound mature kernels. Additionally, return on investment for prohexadione calcium application was also calculated. Prohexadione calcium application resulted in significant reduction of peanut plant height. The application rate of 105 g a.i. ha−1 resulted in significantly greater normalized difference vegetation index as compared to untreated control. Belowground, aboveground, and total biomass did not significantly differ between the 140 g a.i. ha−1 rate and untreated control. However, peanut peg strength increased significantly at the 140 g a.i. ha−1 treatment compared to the untreated control. Peanut yield ranged from 6.65 to 7.15 Mg ha−1 among different treatments; however, the differences among treatments were not significant. Similarly, the total sound mature kernels and return on investment did not differ significantly under different prohexadione calcium treatments. Considering that peanut response to prohexadione calcium is difficult to observe in small plots, it is important to test the effect of prohexadione calcium on peanut production under on‐farm large plot conditions. Core Ideas: Prohexadione calcium significantly reduced peanut plant height under all rates.Peanut peg strength improved significantly under labeled rate (140 g a.i. ha−1).Reduced rates (105 g a.i. ha−1) of prohexadione calcium showed similar yield as labeled rates (140 g a.i. ha−1).Greater return on investment was observed under reduced rates (105 g a.i. ha−1). [ABSTRACT FROM AUTHOR]

Finding effective phosphorus (P) recommendation strategies to optimize corn (Zea mays L.) yield under varying yield levels and environmental conditions is continuously sought after. A 16‐year study was conducted in Concord, NE, on Nora silt loam soil initially measuring 16 ± 3 mg kg−1 Bray‐1 P. The study evaluated the impact of different P fertilization strategies on corn yield across various growing conditions (dry, normal, and wet years). Treatments included no P or N (NPNN), no P (NP), P applied at crop removal phosphorus (CRP), and maintaining soil P at 15 (B15), 30 (B30), and 45 (B45) mg kg−1 Bray‐1 P, with similar nitrogen (N) rates except for NPNN. Results showed a 25% and 33% reduction in soil test phosphorus (STP) for NPNN and NP treatments, respectively. The total P required by B30 and B45 treatments was 1.8 times more than that for CRP and B15. Although B30 and B45 treatments increased corn grain P concentration by 6%–12% compared to B15 and CRP, they did not increase yields in normal and dry years. The NP led to yield reductions of 9% and 12% in normal and wet years, respectively. In contrast, CRP achieved an 8% higher yield than B15 during wet years. Economic analysis revealed that B45 yielded a 56% higher net return in normal years, while CRP offered the highest return on investment (ROI) at 4.9. This study highlights the complexity of managing soil P under varying environmental conditions, emphasizing that while maintaining higher STP levels (B30 and B45) can enhance grain P concentration, it does not significantly boost yield and ROI compared to CRP and B15. Core Ideas: Applying P based on crop removal increases soil test phosphorus (STP) over time.Continued P application based on crop removal phosphorus (CRP) reduces yield loss risk compared to maintaining soil at critical level (15 ppm Bray‐1 P).High STP levels (>30 Bray‐1 P mg kg−1) increase grain P concentration and removal without consistent yield improvement.CRP‐based application maximizes net income and return on investment compared to maintaining soil at critical P levels. [ABSTRACT FROM AUTHOR]

Purpose: This study demonstrates how becoming a high-reliability institution in health care is a priority, given the high-risk environment in which an error can result in harm. Literature conceptually supports the need for highly reliable health care facilities but does not show a comprehensive approach to operationalizing the concept into the daily workforce to support patients. The Veterans Health Administration closes the gap by documenting a case study that not only demonstrates specific actions and functions that create a high-reliability organization (HRO) for safety and improvement but also created a learning organization by spreading the knowledge to other facilities. Design/methodology/approach: The authors instituted a methodology consisting of assessments, training and educational simulations to measure, establish and operationalize activities that identified and prevented harmful events. Visual communication boards were created to facilitate team huddles and discuss improvement ideas. Improvements were then measured and analyzed for purposeful outcomes and return on investment (ROI). Findings: HRO can be operationalized successfully in health care systems. Measurable outcomes verified that psychological safety was achieved through the identification and participation of 3,184 process improvement projects over a five-year period, which yielded a US$2.8m ROI. Documented processes and activities were used for educational teachings, which were disseminated to other Veteran Affairs Medical Center's through the Truman HRO Academy. Practical implications: This case study is limited to one hospital in the Veterans Health Administration (VHA) network. As the VHA continues to deploy the methods outlined to other hospitals, the authors will perform incremental data collection and ongoing analysis for further validation of the HRO methods and operations. Hospitalists can adapt the methods in the case study for practical application in a health care setting outside of VHA. Although the model is rooted in health care, the methods may be adapted for use in other industries. Originality/value: This case study overcomes the limitations within literature regarding operationalizing HRO by providing actual activities and demonstrations that can be implemented by other health care facilities. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to evaluate how audit committee (AC) characteristics affect the performance of banks in Africa. Design/methodology/approach: The authors manually generated unbalanced panel data from 78 commercial banks operating in twelve (12) countries whose annual reports were published on the website of African Financials between 2010 and 2020. Findings: The results indicate that AC size has an insignificant positive association with bank performance (return on equity and Tobin's Q). AC independence has a significant positive association with bank performance. However, AC gender diversity has a significant negative association with bank performance. Besides, AC financial expertise has a significant positive and negative association with return on equity and Tobin's Q, respectively. Research limitations/implications: The study considered only 78 banks that operate in twelve (12) African countries. Besides, the authors consider only four (4) AC attributes. Practical implications: The findings suggest the need to maintain a smaller AC, appoint more independent members to AC, reduce the number of women appointed to AC and ensure most AC members have financial expertise. These measures could improve bank performance in Africa. Originality/value: Unlike previous African studies that are mostly restricted to a country level, the study examined how AC attributes influence the performance of banks that operate in Africa. [ABSTRACT FROM AUTHOR]

This paper empirically examines the heterogeneous impacts of sudden stops in international capital flows on economic growth. We identified 24 sudden stop episodes since 1990 and employed a counterfactual method with cross‐economy panel data to evaluate the impact of each episode on economic growth. The results indicate that 14 sudden stop episodes triggered significant economic decline, with varying magnitudes; 9 episodes were accompanied by insignificant economic downturn, and 1 episode was followed by economic growth. We further utilize the treatment effect derived from the counterfactual analysis to investigate the causes of these heterogeneous impacts of sudden stops on economic growth. Results obtained from the panel data model suggest that external debt, financial development, and real investment return are the main driving forces contributing to the observed heterogeneity. [ABSTRACT FROM AUTHOR]

Research Summary: Government involvement plays a significant role in fostering entrepreneurship. We examine how government involvement in venture capital (VC) investments shapes the decoupling between risk‐taking and investment returns. We distinguish government involvement through state ownership (GVC) and personal political connections (connected VC). We theorize that government involvement through GVC is associated with the downside risk–return paradox, that is, concurrent higher risk‐taking and lower‐than‐expected returns. In contrast, government involvement through connected VCs is linked to the upside risk–return paradox, that is, concurrent lower risk‐taking and higher‐than‐expected returns. Our theoretical predictions receive general support from analyses using longitudinal data from VC firms in China. Our study sheds light on the heterogeneity in the decoupling between risk and return and the underlying mechanisms through which governments influence entrepreneurship. Managerial Summary: Governments often seek to promote entrepreneurship; yet, their involvement in start‐ups tends to deviate from the conventional wisdom of a positive risk–return association. Government‐owned venture capital (VC) firms tend to take greater risks and invest in earlier‐stage start‐ups, but yield lower returns from their investments. Conversely, VC firms that have personal ties to government officials tend to take lower risks and prefer later‐stage start‐ups, yet achieve higher returns. These intriguing findings reveal the complexities of government participation in entrepreneurial activities and offer valuable insights for policy formulation. In addition, our findings highlight the importance for entrepreneurs to recognize diverse goals and resources in government involvement. Considering this when seeking external financing is helpful in positioning start‐ups for growth and success. [ABSTRACT FROM AUTHOR]

The most important goal of revaluation is providing reliable fair price information close to economic realities for different decision-makers. Emphasising conservatism, this research comparatively studies the relationship between book values of assets concerning the performance indicators of companies. The statistical population of the research includes 146 companies listed on the Tehran Stock Exchange from 2009 to 2020. The research methodology is correlational and post-event causal, and the correlation and regression tests are used to test hypotheses. The results show a significant direct relationship between the book value of assets and the rates of return on assets and equity. In addition, conditional conservatism significantly negatively affects the relationship between the asset value after revaluation and the future cash flows. It also has a significant positive effect on the relationship between the book value of assets and the rate of return on assets. [ABSTRACT FROM AUTHOR]

Adopting aggregation techniques in power sector modelling led to disregarding the key characteristics of regions in terms of resource use, which may not completely capture the bottlenecks in the energy transition. This study provides a holistic approach to estimate its impact on the transition of the European power system from the perspective of energy return on investment (EROI) by using six energy transition scenarios based on three different spatial representations. The findings indicate that EROI trends are highly dependent on the spatial representation, technology selection and energy mix. Further additional capacities of complementary technologies along with an upsurge in renewable capacities drive EROI values down. Disregarding the physical distances in the energy modelling results in large EROI enhancement due to the artificial smoothing effect of the aggregation method. EROI values of the aggregated scenarios remain between 18 and 24 by 2050. In the case of 20 independent sub‐regions, the lowest EROI is obtained at about 14 by 2050, due to the limitation on optimal resource utilisation. Interconnection of the sub‐regions, which represents the best proximation to the real situation, increases the EROI to 17 by 2050. [ABSTRACT FROM AUTHOR]

Research background and significance: As China's economy continues its rapid expansion, the issue of environmental degradation has escalated, particularly within industries with significant environmental impact, such as steel, chemical, pharmaceutical sectors. These sectors are confronted with profound environmental and social responsibility challenges. The development of robust Environmental, Social, and Governance (ESG) systems has therefore become essential for improving environmental performance, meeting social responsibilities, and optimizing corporate governance structures. This study investigates the impact of ESG system implementation on the financial performance of enterprises within these environmentally impactful industries, offering a scientific foundation and practical guidance for corporate leaders and policymakers to facilitate green transformation and sustainable development. Methods and data: This research integrates empirical analysis with case studies, employing a dataset of 2,376 observations from 792 listed companies within industries with significant environmental impact, spanning the period from 2019 to 2021. The data, sourced from the Wind database, were analyzed using multiple regression techniques. The findings reveal a significant positive relationship between overall ESG scores and corporate performance, measured by Return on Equity (ROE) and Return on Assets (ROA). All three ESG dimensions-- environmental (E), social (S), and governance (G)--exhibit positive impacts on corporate performance. Furthermore, factors such as company size and growth rate are positively correlated with performance, whereas leverage ratio is negatively correlated. To further substantiate the empirical findings, a case study of Hunan Valin Steel Co., Ltd. was conducted. Results and conclusions: The findings of this study demonstrate that the implementation of ESG systems substantially enhances the financial performance of enterprises within industries characterized by significant environmental impacts. Specifically, investments in environmental protection led to greater resource utilization efficiency, social responsibility initiatives foster enhanced employee productivity and customer loyalty, and strong corporate governance improves management structures and decision-making processes. The case study of Hunan Valin Steel Co., Ltd. reinforces these results, illustrating that a comprehensive ESG framework not only helps such enterprises achieve their environmental and social responsibility objectives but also markedly improves their financial outcomes. This research provides robust empirical evidence and actionable management recommendations for ESG system implementation in environmentally impactful industries, along with scientific support for informed policymaking. [ABSTRACT FROM AUTHOR]

With a turbulent market and a desire to withstand force, many companies lower the production price of their products using different approaches. On the one hand, they often use lean principles to reduce production costs, while they are compelled by the government to adopt green practices on the other. The proposed approach (model) is a combination of green, lean sustainable improvement, leading a company through the green, lean process with measurable results and optimization functions. In addition to its return on investment (ROI), a company can calculate its output (from material to emission flow) based on its input. Based on the radar chart we have produced, they can also know what they have achieved and in which direction they need to optimize to develop in as green and sustainable a way as possible. One example of a Slovenian automotive company demonstrates how the implementation of the proposed measures can effectively reduce environmental impact, while also ensuring a quick return on investment. [ABSTRACT FROM AUTHOR]

This research provides valuable insights into the factors influencing company value within the manufacturing sector, specifically the cement subsector in Indonesia. Financial leverage, profitability, and dividend policy are key variables examined, as they significantly impact a company's financial health and market perception. Financial leverage reflects a company’s reliance on debt financing relative to equity, and the study shows that higher leverage can positively affect company value if managed effectively, thereby increasing returns for shareholders. Profitability, often measured through indicators such as Return on Assets (ROA) or Return on Equity (ROE), also plays a significant role in enhancing company value, as it reflects efficient resource management and attracts investor interest. Additionally, a consistent dividend policy reinforces the company’s reputation and draws investors, contributing positively to company value in the stock market. The findings emphasize that cement subsector companies with balanced leverage, solid profitability, and a consistent dividend policy tend to perform better in terms of company value, providing essential insights for stakeholders in optimizing strategies to maximize company value. [ABSTRACT FROM AUTHOR]

Globally, organizations invest an estimated USD 60 billion annually in leadership development; however, the workplace application of learning is typically low, and many programs underperform or fail, resulting in wasted time and money and potential harm. This article presents a novel theory- and evidence-informed framework to maximize the outcomes and return on investment (ROI) of leadership development programs. The foundation of the framework derives from four separate literature reviews: three systematic reviews on leadership development, including the only two to isolate gold-standard elements of effective design, delivery, and evaluation, and one on "training transfer". Informed by innovative principles of leadership development and unique theoretical models and frameworks, this framework consists of 65 evidence-informed strategies that can be applied as a foundation (9), and before (23), during (17), at the conclusion of (11), and sometime after (5), programs, to maximize impact and ROI. Implications for practice and further research are also presented. Given the stakes, there is an urgent need for evidence and tools to maximize the impact and ROI of leadership development. This novel framework provides robust theory- and evidence-informed guidance for governments, policymakers, and those funding, designing, delivering, and supporting development. [ABSTRACT FROM AUTHOR]

In the residential housing sector, energy conservation issues may arise in the relationship between landlords and renters (a.k.a. tenants) due to principal-agent and information problems. An example is the split incentive, where one party makes the energy efficiency decisions while the other pays the energy bill. Herein, we investigate whether the landlord and renter split incentive problem may be more likely and more challenging for college student renters than those who are not college students. This may occur from landlords perceiving that college renters lack sufficient demand for energy efficient improvements. There is a lack of studies regarding the possibility that college renters may face greater exposure to the split incentive problem. We surveyed landlords to better understand their prior energy efficiency investment decisions and used a contingent valuation question to further investigate their choices for a hypothetical return on investment scenario. The landlords had various mixes of college students and non-students in their properties. Landlords renting one single-family property exclusively to college students had, on average, completed fewer major upgrades to their rental properties and were less likely to invest in a hypothetical insulation upgrade. [ABSTRACT FROM AUTHOR]

In response to biodiversity declines worldwide, over 190 nations committed to protect 30% of their lands and waters by 2030 (hereafter, 30×30). Systematic conservation planning and return on investment analysis can be helpful tools for determining where protection efforts could deliver the most efficient and effective reserve design, and supporting decision‐making when trade‐offs among objectives are required. Here, we propose a framework for efficient "30×30" implementation and apply it to the state of California (USA). Because conservation of a region's full suite of biodiversity is the primary objective of the global initiative, we prioritized representation in our analysis. We used Zonation to identify networks that close the gap in representation of major habitat types in California's protected area network and that also conserve the places important for biodiversity or climate change mitigation. We identified networks that are efficient relative to metrics likely to be important in implementation including land acquisition cost, number of transactions, and conservation benefit per hectare, and we illustrate not only trade‐offs associated with these metrics but also differences in the co‐benefits achieved. Five of the eight major habitat types in California are not currently protected at a 30% level statewide, and if representation was achieved solely through private land acquisition, targets could be met for as little as $5.84 billion, with as few as 364 transactions, or with 2.18 million additional conserved hectares. Implementation of 30×30 will likely require more flexibility than a single network design. A "no regrets" action would be to protect properties that were prioritized across all networks and additional implementation should include properties with characteristics of any of the individual networks. Our analytical framework and implementation guidance can be applied to other geographies and jurisdictions to increase the likelihood of both meeting 30×30 targets and delivering the conservation benefits they aim to secure. [ABSTRACT FROM AUTHOR]

Vietnam's economy and education system have had remarkable success in recent decades, yet there are concerns about the declining returns to higher education since 2008. We document this decline in returns to higher education and propose four hypotheses to explain it. Analysis of the VLSS/VHLSS and LFS data provides little evidence for three of four hypotheses. The fourth hypothesis is that changes in the demand for highly educated labor in Vietnam, perhaps due to recent changes in foreign direct investment inflows, rather than the labor supply, are perhaps the most important determinant of the returns to education across different levels. [ABSTRACT FROM AUTHOR]

State and federal governments invest millions of dollars in providing accurate and relevant information on expected outcomes to students pursuing higher education, but whether such information targets what students value about college is unclear. We use new survey data to identify the extent to which conventional indicators for college quality and returns correlate with collegegoers' satisfaction with their education. We find that alumni are on average very satisfied with their education, even among those with poor labor market outcomes. Our results suggest the consumptive value of higher education is much higher than economic models of college choices typically assume. [ABSTRACT FROM AUTHOR]

This paper estimates returns to education during a period of sharp wage cuts in Greece, considering both the endogenous nature of education and women's self-selection. Findings suggest that dramatic wage declines were followed by sharp decreases in returns to education, while the documented convergence of returns between genders is an added benefit. Once endogeneity is examined, using parental education and number of siblings in the household as instruments, and self-selection is accounted for, returns to education almost double compared to OLS. These findings are verified using several robustness tests and alternative specifications. [ABSTRACT FROM AUTHOR]

We contribute to the higher education returns discourse by examining perceptions among college graduates. Using 2021 U.S. Survey of Household Economics of Decisionmaking data, we observe that over 80% of degree holders perceive that they received positive financial returns from college, while only 7% of college degree holders regret their decision to go to university. However, 39% regret their major choice, and 24% regret their institution choice. Logistic regression reveals perceptions and regrets vary with field of study, gender, type of institution attended, student debt load, and age. [ABSTRACT FROM AUTHOR]

This study examines the impact of educational attainment on employment and earnings in Nepal. Using the Nepal Labour Force Survey 2017–2018 cycle, we employ an extended earnings function derived from the foundational Mincer equation to estimate returns to education. The results underscore the overall positive impact of education (1.76, 3.73, 7.68 and 11.00% increase in earnings by primary, secondary, bachelor's and master's degrees, respectively), which is lower than the average observed in other low– and middle– income countries, except in higher education. The results also indicate persisting disparities for females and disadvantaged groups. The study emphasizes the need for strategic interventions, improved educational infrastructure and inclusive policies to foster equitable opportunities. [ABSTRACT FROM AUTHOR]

We present new estimates of the internal rate of return to early childhood education. Utilizing the nationwide expansion of preschool education in Japan between 1960 and 1980, we initially assess the impact of preschool attendance on high school graduation and college enrollment for men. Subsequently, we compute the social rate of return to preschool attendance for men by drawing upon national wage statistics to project expected wage trajectories and referencing government documents to account for the social cost of preschools. Our findings indicate a social rate of return ranging from 5.7% to 8.1%, consistent with previous estimates in the literature. [ABSTRACT FROM AUTHOR]

This paper uses the Mincerian approach in an experimental way to examine the impact of education on household incomes (not labor earnings) of all workers (not just employees) across 162 countries. Our results are broadly similar to the conventionally estimated rates of return to education after allowing for the fact that earnings are only a part of total household incomes. We then apply the results to the case of Arab countries and find that our experimental approach can promisingly be used for the study of the impact of education not just on individual earnings of employees but also on total household incomes of all workers and more broadly on the economy and the labor market. [ABSTRACT FROM AUTHOR]

Hotel managers in New Zealand do not calculate Human Capital Return on Investment (HCROI) and are unaware if they are over or underinvesting in their HC. While literature reports the complexity of such measurement, given the challenges of attracting, retaining and ongoing training of HC, it is surprising little has been done to examine how HCROI can add value to hotels and how it can be calculated. Hotel practitioners and hospitality researchers must collaborate to examine and define better HCROI and measurement tools to enable hotel managers to make more strategic HC decisions. [ABSTRACT FROM AUTHOR]

The present study conceptualizes and simulates a methanol production process through the direct hydrogenation of captured CO2. CuO/ZnO/ZrO2 was employed as the catalyst and Aspen HYSYS was used for the process simulation. Configurational optimization of the process flowsheet was carried out using a step-by-step hierarchical approach. Many alternate flowsheets have resulted, and their capital investment, product cost, and profitability measures were calculated. The discrimination among the competing flowsheets was carried out based on net profit and percent return on investment. The retained flowsheet was further analyzed for optimizing the recycle ratio and evaluating the effect of the price of captured CO2, green H2, natural gas (fuel), and catalyst on the economic performance of the plant. The optimum value of the recycle ratio was computed to be 4.23. Additionally, it was found that the price of H2 is the most important parameter in defining the feasibility and profitability of the process. Mathematical correlations were also developed that relate the profitability and price of the above-mentioned feed materials. [ABSTRACT FROM AUTHOR]

In today's data-driven marketing landscape, predicting customer responses to marketing campaigns is essential for optimizing both engagement and Return On Investment (ROI). This study aims to develop a predictive model using a Decision Tree (DT) to identify key factors influencing customer behavior and improve campaign targeting. The methodology involves building the DT model, initially achieving an accuracy of 87.3%. However, the model faced challenges with precision and recall due to class imbalance. To address this, a resampling technique was applied, which significantly improved model performance, increasing recall from 44% to 83.1% and the F1-score from 49% to 74.2%. Key influential features identified include the recency of a customer's purchase, their duration as a customer, and their response history to previous campaigns. This study demonstrates the practicality and interpretability of the DT model, offering actionable insights for marketing professionals seeking to enhance campaign effectiveness and customer targeting. [ABSTRACT FROM AUTHOR]

Management of reputational risk is crucial for financial institutions to establish a solid foundation for strategic decisions, gain customer trust, and enhance resilience against environmental adversities, as they largely operate on digital platforms. Since this becomes even more significant as online transactions and digital interactions amplify the visibility and potential impact of reputational issues in the context of electronic commerce, it is essential to thoroughly investigate environmental factors to achieve a comprehensive understanding of reputational risk. However, measuring and evaluating their influence on reputational risk is challenging due to their inherent connection to human perception. This study aims to explore the factors influencing reputational risk of financial organizations to mitigate potential reputational losses by addressing uncertainties associated with concepts such as vagueness. The employed methodology integrates the Decision-Making Trial and Evaluation Laboratory and Fuzzy Cognitive Map techniques using linguistic fuzzy terms. This approach focuses on both the direct effects of factors on reputational risk and the indirect effects arising from interdependencies between factors. Linguistic fuzzy variables enable us to consider the hesitation of the experts and the vagueness of human judgment. To validate the results, factors are also weighted using the fuzzy Stepwise Weight Assessment Ratio Analysis (SWARA) method. The most influential factors identified by both methods are market value, revenue, risk culture, shareholder value, firm performance, reputation awareness, and return on equity. Additionally, factors affecting other factors include firm performance, revenue, and growth opportunities. [ABSTRACT FROM AUTHOR]

Globally, high levels of economic policy uncertainty (EPU) have revamped the debate about its impact on different economic parameters of firms. In this regard, the literature exhibits three gaps. First, the effect of EPU on firm financial performance in an emerging economy context. Second, whether the influence of EPU on firm performance is asymmetric? Lastly, the moderating role of leverage in the relationship between EPU and firm performance. This paper fills all three gaps using the real options theory and investment irreversibility theory for India's NIFTY 100 firms over the period 2010–2019. The study applies several panel data econometrics models suitable to obtain comprehensive and robust results. Specifically, findings from the two‐step system GMM confirm that EPU negatively influences financial performance, which is significant for both accounting (return on assets, return on equity, net profit margin) and market (Tobin's Q) based measures. Moreover, the results of panel quantile regression reveal considerable heterogeneity in the EPU‐financial performance relationship. Further, higher levels of EPU appear to have unfavorable effects on excessively indebted firms. Overall, the study recommends that governments need to be alerted to the fact that mitigating EPU is crucial for promoting sustainable firm financial performance. [ABSTRACT FROM AUTHOR]