CEO regulatory focus on digital transformation: Evidence from China.

Digital transformationsw has become crucial for business to stay competitive in today's technology-driven world. Research shows CEOs' characteristics can influence firms' digital transformation, however, this work has not considered the role of CEO regulatory focus. In this paper, we build a framework to understand the relationship between CEO regulatory focus and firm's digital transformation. Build on regulatory focus theory, we argue that CEO promotion focus is positively associated with enterprise digital transformation, whereas CEO prevention focus is negatively associated with enterprise digital transformation. We further identify two contextual factors that moderating the relationship between CEO regulatory focus and digital transformation. Specifically, we find CEO power and economic policy uncertainty strengthen the relationship between CEO regulatory focus and enterprise digital transformation. We find strong support for our hypotheses in a sample of 2696 Chinese publicly listed firms between 2008 and 2023. Our findings have significant implications for understanding the role of CEO regulatory focus on digital transformation.

Comparative impacts of energy, climate, and economic policy uncertainties on renewable energy.

The ongoing adjustment and fluctuation of energy, climate, and economic policies leads to potential policy uncertainty. The potential uncertainty arising from these policies has a wide range of effects on renewable energy technology, leading to changes in investment decisions or consumption patterns. Hence, given the worldwide shift towards sustainable technologies, it is critical to assess how these policy uncertainties will affect renewable power. Given this backdrop, this study delves into the impact of energy policy uncertainty, climate policy uncertainty, economic policy uncertainty, and government effectiveness on renewable energy in the United States. The cross-quantilogram (CQ) methodology is employed by using monthly data from 2002 to 2022. The outcomes reveal that energy policy uncertainty effectively promotes renewable energy in the short run, whereas it serves as a barrier to the adoption of renewables in the long run. Economic policy uncertainty reduces renewable energy consumption in the short run, but it increases in the long run. Moreover, climate policy uncertainty accelerates the transition to low-carbon energy sources. Finally, government effectiveness is a significant supportive element of the energy transition towards renewables.

Improve carbon emission efficiency: What role does the ESG initiatives play?

Driven by the "dual carbon" goal, it is essential to investigate whether companies can enhance carbon emission efficiency by improving Environmental, Social, and Governance (ESG) performance. This study investigates the relationship between ESG ratings and carbon emission efficiency among Chinese A-share listed companies. The study reveals that a higher ESG rating significantly improves carbon efficiency. Mechanism studies indicate that the effect of ESG mainly comes from easing financing constraints, promoting green innovation, and strengthening supervision. Additionally, the study finds that the impact of ESG on carbon emission efficiency is more pronounced in non-heavy polluting and non-state-owned enterprises. Economic policy uncertainty diminishes the positive effects of ESG initiatives on carbon efficiency, while enhanced governmental concerns to environmental significantly bolsters these impacts. This paper offers empirical insights that can inform adjustment of policies concerning ESG performance and carbon emission.

Disaster risk financing and insurance for earthquake-prone state buildings in Indonesia.

Indonesia situated within the volatile Ring of Fire, faces recurring and devastating earthquakes that pose significant economic threats. The Government of Indonesia (GoI) has initiated a disaster risk financing strategy to address these challenges. However, the implementation of disaster insurance within this strategy remains limited. This study examined the GoI's disaster risk financing methods, assessed the effectiveness of existing disaster insurance practices, and proposed strategies for improving disaster risk reduction (DRR). Literature review was used to analyse disaster fund and insurance implementation. A building vulnerability simulation, based on Federal Emergency Management Agency's (FEMA) P-154 rapid visual screening, determined the appropriate financing strategy. State buildings were assessed using nine vulnerability factors and categorised by seismicity. The research found that disaster financing mostly relied on national funds to cover all disaster damages. Existing disaster insurance lacked clarity in defining insurable buildings, resulting in broad inclusion. Vulnerability assessments showed that each building type exhibited different potential earthquake damage levels. Consequently, insurance coverage is recommended for high-damage categories but discouraged for low to moderately vulnerable buildings. Contribution: This study offered insights into Indonesia's current disaster risk financing and insurance landscape, and provides a strategic framework for optimising these mechanisms to better protect state buildings from earthquake-related risks.

Time-frequency co-movements between commodities and global economic policy uncertainty across different crises.

Commodity futures constitute an attractive asset class for portfolio managers. Propelled by their low correlation with other assets, commodities begin gaining popularity among investors, as they allow to capture diversification benefits. This comprehensive study examines the time and frequency spillovers between the Economic Policy Uncertainty [1] and a broad set of commodities encompassing ferrous, non-ferrous, and precious metals, food, and energy commodities over a period from December 1997 to April 2022, which includes various political, economic and health crises. The novelty of this research lies in its extensive temporal and categorical coverage, providing an understanding of how different types of commodities respond to various crises. Furthermore, our study breaks new ground by employing wavelet analysis to gain detailed insights in both time and frequency domains in the financial time series of interest, providing a deeper understanding of the co-movements and lead-lag relationships. Specifically, we introduce the Cross Wavelet Transform (XWT) and Wavelet Coherence (WTC) analysis. Our findings demonstrate that not all crises uniformly impact commodities. Notably, during the global financial crisis and the COVID-19 pandemic, co-movements between commodities became significantly stronger. These results highlight the heterogeneity within the commodity asset class, where individual commodities exhibit diverse underlying dynamics. Importantly, the proposed methodology facilitates the extraction of robust results even when dealing with nonlinearities and nonstationary time series data. Consequently, our work offers valuable insights for policymakers (including regulatory bodies), investors, and fund managers.

The Role of Race in Deaths of Despair in Brazil: Is it a White People Problem?

BACKGROUND: A new paradigm has been discussed regarding the impact of economic cycles on the mortality pattern from specific causes. These causes are called deaths of despair, and they selectively impact specific demographic groups. Also, low- and middle-income countries are most affected due to their economic and social instability. In this sense, the objective of study was to compare the magnitude of disparity in deaths from despair according to sex, age, and race in Brazil. METHODS: We performed Poisson regression modeling to estimate the magnitude of the association between sex, age group, race, and deaths from despair. Also, we estimated the relationship of time as a proxy of economic crisis phase and deaths of despair. RESULTS: We found an association between mortality from despair and male sex (PR = 6.15, 95%CI 6.09-6.22); emphasis on the age groups from 40 to 49 years old (PR = 2.45, 95% CI 2.41-2.48) and 50 to 59 years old (PR = 2.39, 95% CI 2.36-2.43); and brown (PR = 1.21, 95% CI 1.20-1.22) and black race (PR = 1.36, 95% CI 1.34-1.37). CONCLUSIONS: The present study preliminarily presents the effect of the economic crisis and mortality in the population, with demographic differences. Association with race was opposite to that verified in the original study in the USA, which suggests that this variable should be analyzed in the light of structural context.

Exploring the mediating role of financial inclusion in the relationship between economic policy uncertainty and CO2 emissions: A global perspective.

This study examines the connection between economic policy uncertainty (EPU), CO2 emissions, and financial inclusion in developed and developing countries. Using the data from 2004 to 2021, advanced statistical techniques are employed, including Sobel test, to explore the mediating effect of financial inclusion on the relationship between economic policy uncertainty (EPU) and CO2 emissions. There is a dearth of research examining these three variables together in a single study. Similarly, using financial inclusion as a mediator in the relation of EPU and CO2 emissions is a novel concept. This article employs a multi-indicator approach to measure key variables like CO2 emissions and financial inclusion. The results indicate that uncertainties in economic policies contribute in practices that lead to higher CO2 emissions in overall panel data of 44 countries. In addition, when considering the relationship between EPU and FI, the results indicate a significant and negative relationship between EPU and FI. If there is uncertainty in economic policies, it may lead toward challenges and hurdles in financial inclusion. When the mediating affect was checked, it was found financial inclusion acts as a significant mediator in the relationship between EPU and CO2 emissions, depicting that financial inclusion fosters the environmental quality and mitigates the potential harmful effects of environmental aspects of economic policy uncertainty. Therefore, policies that promote financial inclusion should be given top priority by governments, particularly in emerging nations. Financial literacy and bank service accessibility should be promoted. These measures would lessen the impact of staggering economic policies on CO2 emissions. It is necessary for policymakers to include environmental factors, specifically those relating to carbon emissions, into economic strategies. This requires encouraging industries to adopt eco-friendly practices and coordinating economic strategies with sustainability objectives.

Economic policy uncertainty and financial system efficiency.

Economic policy uncertainty (EPU) adversely affects financial system functioning with potentially critical repercussions for economies and corporations worldwide. Financial system efficiency (FSE) has a vital influence on fostering optimal economic growth and development; however, the impact of EPU on FSE remains under-explored. This study investigates the effect of EPU on FSE along with its components financial institution efficiency (FIE) and financial market efficiency (FME). Using data from 22 countries over a 20-year period (2002-2021), our analysis reveals a significant negative effect of EPU on FSE, FIE and FME. Notably, our split-sample analysis highlights the accentuated adverse effects of EPU in high-EPU regimes, emphasising the importance of vigilance during periods of elevated policy uncertainty. We conduct a series of sensitivity tests, including alternative measures of EPU, FSE, FIE and FME, and apply two-stage least squares and two-step dynamic system generalised method of moments estimators and introduce additional control variables. These tests consistently reaffirm the core conclusions of our study. Finally, we discuss the implications of our findings for policymakers.

Economic policy uncertainty and enterprise export resilience in China: Does the digital economy matter?

In the new era of international trade, escalating uncertainty and the swift development of the digital economy stand out as two pivotal transformations. These phenomena individually exert significant influences on enterprises' exports; however, their combined effects on export resilience remain underexplored. Hence, drawing on existing theories, this paper analyzes the weakening effect of economic policy uncertainty on export resilience and explores the influence of regional digital economic development on this attenuation effect. Furthermore, empirical tests are conducted using micro-level data from China. The study findings reveal: (1) Economic policy uncertainty weakens firms' export resilience by increasing transaction costs; (2) Digital economic development mitigates this weakening effect by reducing transaction costs, with a more pronounced effect observed among highly efficient firms. The findings suggest that amid escalating uncertainty, vigorously promoting digital economic development holds profound policy significance for the high-quality development of international trade.

Unveiling asymmetry impacts of economic policy uncertainty on climate change: fresh insights into African Countries.

This study investigates the influence of economic policy uncertainty on climate change in selected African countries within asymmetric settings. Although previous research has examined the impact of various economic factors on climate change, the asymmetric effects of economic policy uncertainty have not been thoroughly explored, particularly in African countries. We analyze annual data spanning from 1980 to 2017 by utilizing three models: Panel Pooled Mean Group-Autoregressive distributed lag model (ARDL-PMG), Panel Pooled Mean Group-non-linear autoregressive distributed lag model (NARDL-PMG), and Dumitrescu-Hurlin asymmetric causality tests. According to the results of ARDL-PMG estimation, economic policy uncertainty has a detrimental impact on climate change in the long run. However, the NARDL-PMG estimation suggests that a positive shock in economic policy uncertainty negatively affects long-term climate change mitigation. However, a negative shock has a beneficial effect on climate change in the long term. In African nations, positive and negative changes in economic policy uncertainty failed to generate any significant climate change effects in the short run. The results also reveal that both positive and negative shocks in economic policy may cause climate change in a one-way direction. Based on the findings of our study, we recommend that African policymakers implement programs aimed at reducing economic policy uncertainties to help mitigate the effects of climate change.

Is the EU steering national social and health policy making? A case-study on Finland's national reform.

As part of the European Semester, Finland received country-specific recommendations (CSRs) in 2013-2020 that encouraged the reform of national social and health services. These recommendations were part of efforts to balance public finances and implement public-sector structural reforms. Finland has been struggling to reform the national social and health care system since 2005. Only on 1 January 2023 did the new wellbeing services counties become liable for organizing social, health, and rescue services. Studying the CSRs for Finland enables us to understand better what genuinely occurs at the EU member state level. This data-driven case study aims to disclose the relevance of the European Semester for Finland in the pursuit of a national social and health system reform. The mixed-method approach is based on the research tradition of governance, and the study contains features of data sourcing and methodological triangulation. Empirically, the research material consists of Finland's official policy documents and anonymous semi-structured elite interviews. The study highlights that although the received CSRs on the need to restructure social and health services corresponded to Finland's views, their influence to national reform efforts was limited. The CSRs were administered according to the established formal routines, but separately from the national reform preparations. The CSRs, however, delivered implicit steering, which were considered to affect social and health policy making in various ways.

Unlocking the path to environmental sustainability: navigating economic policy uncertainty, ICT, and environmental taxes for a sustainable future.

The study aims to gauge the impact of economic policy uncertainty, ICT, and environmental tax on environmental sustainability, which is measured by carbon emission and ecological footprint in a panel of 22 nations from 1997 to 2021. The present study has implemented the advanced panel data estimation techniques, including continuously updated fully modified (CUP-FM) and continuously updated bias-corrected (CUP-BC), dynamic seemingly unrelated regressions (DSUR), and nonlinear autoregressive distributed lagged (NARDL) in documenting the elasticities of target variables. Moreover, the directional causality has been tested through the D-H causality test. Study findings documented a positive and statistically significant linkage between EPU and environmental degradation. That is, EPU amplifies the emission of CO2 and ecological instability. The effects of ET and ICT are positively associated with environmental sustainability; that is, ET and ICT control the emission of CO2 and bring ecological improvement. This study contributes to the existing body of literature by conducting a thorough analysis of the relationship between various factors and their impact on environmental degradation. The study emphasizes the significance of every factor in influencing environmental outcomes. It provides policy suggestions to reduce CO2 emissions and promote ecological sustainability. The findings add valuable insights to the ongoing conversation about how to tackle environmental challenges in our constantly evolving world.

Land-Water-GHG-Food Nexus performance and physical-socio-economic-policy factors influencing rice cultivation in Central Thailand.

Agriculture activity contributes to greenhouse gas (GHG) emissions through its utilization of land, water, and energy for food production. Hence, the interactions between land, water, and GHG emissions in agricultural production need to be comprehensively studied. The study aimed to assess the Land-Water-GHG-Food Nexus Index (LWGFNI) of rice cultivation across various land suitability classes in Central Thailand and determining the physical, socio-economic, and policy factors that can influence farmers' decisions to choose for cultivating rice instead of shifting to other crops. The results indicated that the highest LWGFNI score was 0.69 for the rice grown in the moderate suitability land class which revealed a lower use of land and water resources as well as GHG emissions compared to other levels of land suitability. The LWGFNI scores of major rice cultivation were greater compared to the second rice in all four-land suitability. The use of fertilizers had a crucial role in enhancing productivity levels and was a significant factor in the generation of GHG emissions. Hence, improving effective production should consider the appropriate use of fertilizer. The physical, socio-economic, and policy-related aspects that significantly influenced farmers' decisions on cultivation of rice included topography, water resources, inherited professions, price guarantee, and knowledge/training factors. The methodology used and results obtained can help policy makers to plan the use of water and land resources efficiently and appropriately with local resources based on land suitability class. The assessment results revealed the GHG hotspots and the strategies to mitigate GHG emissions associated with rice cultivation.

Regional and periodic asymmetries in the effect of Russia-Ukraine war on global stock markets.

This study aims to investigate regional and periodic asymmetries in the impact of the outbreak of the Russia-Ukraine war on global equity markets. Employing the event study methodology, the current study examines global stock market reactions within a 61-day window centred around the event day, i.e., February 24, 2022. MSCI equity indices of 47 sample countries have been utilized to ensure uniformity in the index development methodology. They provide broader coverage of global equity markets by including large and mid-cap companies, representing approximately 85% of the free float-adjusted market capitalization for each sampled country. The study extends the event window to 61 days to assess the enduring effects of the war over a relatively longer period. The research delineates regional and periodic asymmetries and posits that the impact of the war on a market is contingent upon its geographical proximity and trade relations with Russia and Ukraine. Additionally, the impact is stronger during a shorter window surrounding the event date but diminishes over the extended period.

The impact of economy policy uncertainty and oil price shocks on G20 banks' stock performance: Wavelet coherence and non-parametric causality in quantiles approach.

This study employs nonparametric causality-in-quantiles and wavelet coherence techniques to examine the impact of economic policy uncertainty and oil price variations on bank stocks in twelve prominent global economies. The results reveal that the effects of both economic policy uncertainty and oil prices on bank stock values vary significantly across countries and over time. Notably, during stress periods, we observe an inverse relationship between economic policy uncertainty and bank stocks in multiple countries, namely, Brazil, Canada, France, India, Russia, and the USA, with Japan exhibiting a particularly strong and long-term adverse correlation. Similarly, the influence of oil prices is primarily observed during crisis periods, but it demonstrates a substantial co-movement with bank stocks across the sample countries except Brazil. Our empirical analysis holds valuable implications for policymakers, bankers, investors, and portfolio managers.

Narrative influence on support of a public policy: The case of nuclear power in The Netherlands.

We propose a new methodology to systematically transform presurveyed argument preferences into fictional narratives, that can help people to imagine the consequences of future events, and measure how they impact willingness to pay for a public policy. We apply narrative theory to construct two short narratives that depict an imaginary future, bleak due to climate change or energy dependence, and show experimentally that exposure to these narratives increases contributions in a Public Goods game, framed as payments toward the construction of new nuclear plant in The Netherlands. Our results suggest that fictional narratives can be used (and misused) as a tool of economic policy that allows conveying relevant information to people about complex issues. We discuss the ethical use of narratives and the value of their transparent construction for democratic will-formation and policy implementation when abstract factual information can be difficult to process or comprehend.

How does world economic policy uncertainty influence the carbon dioxide emission reporting and performance? Study of Fortune Global 500 firms.

This study contributes significantly to the field by utilising the World Economic Policy Uncertainty (WEPU) Index, as devised by (Ahir in Nat Bureau Econ Res 2022), to scrutinise its impact on carbon dioxide emission reporting and performance. Employing the generalised method of moments (GMM) on a substantial dataset of 604 Fortune Global 500 firms spanning from 2005 to 2020, our analysis reveals crucial insights. The research elucidates the dual influence of WEPU Index: a positive correlation with carbon dioxide emission reporting and a negative correlation aimed at mitigating adverse effects and promoting sustainable practices, thereby enhancing firm trust. Moreover, the findings shed light on how companies in emission-intensive industries tend to ramp up carbon dioxide emission reporting, potentially to bolster investor confidence, particularly during high WEPU Index periods. Furthermore, this study uncovers a compelling association between high emitters and lowered carbon dioxide emission performance, stemming from political and social pressures to integrate environmental considerations. Notably, this pressure intensifies during periods of increased WEPU Index. The empirical results presented in this study carry immediate practical implications. Specifically, they offer valuable insights for regulatory bodies and industry associations, guiding the development of enhanced environmental and social reporting regulations and guidelines, particularly concerning carbon emission reporting and performance.

Impact of oil price volatility and economic policy uncertainty on business investment - Insights from the energy sector.

This research employs a worldwide sample of 4017 energy sector companies from 1996 to 2022 to examine the effects of economic policy uncertainty (EPU) and oil price uncertainty (OPU) on corporate investment in oil/energy sector and this study analyze how market instability and international economic disasters shape the connection between OPU and business assets. GLM regression with firms-years fixed effects and firm-based clustering indicate that both OPU and EPU had a detrimental influence on corporate investment in energy sector. Generalized linear models provide a universal method for addressing various response modeling issues. It is also revealed that oil-producing nations experience OPU and EPU's negative effects more severely than oil-consuming nations. This paper also demonstrates that the link between corporate investment, OPU and EPU is influenced by nations that produce oil, market volatility, and global financial crises. Strong evidence was found supporting the notion that OPU and EPU had a statistically significant detrimental impact on business assets. The findings of the paper are consistent under a variety of robustness tests and show that the association between OPU and EPU and business assets still holds. The results have significant bearing on the asset strategies that company managers and governments should adopt in light of the volatility of oil prices and EPU and this study provide valuable insights for policymakers who are focused on achieving energy transition, enhancing energy security, and meeting environmental goals such as reducing greenhouse gas emissions.

Assessing the effects of population-level political, economic and social exposures, interventions and policies on inclusive economy outcomes for health equity in high-income countries: a systematic review of reviews.

BACKGROUND: A fairer economy is increasingly recognised as crucial for tackling widening social, economic and health inequalities within society. However, which actions have been evaluated for their impact on inclusive economy outcomes is yet unknown. OBJECTIVE: Identify the effects of political, economic and social exposures, interventions and policies on inclusive economy (IE) outcomes in high-income countries, by systematically reviewing the review-level evidence. METHODS: We conducted a review of reviews; searching databases (May 2020) EconLit, Web of Science, Sociological Abstracts, ASSIA, International Bibliography of the Social Sciences, Public Health Database, Embase and MEDLINE; and registries PROSPERO, Campbell Collaboration and EPPI Centre (February 2021) and grey literature (August/September 2020). We aimed to identify reviews which examined social, political and/or economic exposures, interventions and policies in relation to two IE outcome domains: (i) equitable distribution of the benefits of the economy and (ii) equitable access to the resources needed to participate in the economy. Reviews had to include primary studies which compared IE outcomes within or between groups. Quality was assessed using a modified version of AMSTAR-2 and data synthesised informed by SWiM principles. RESULTS: We identified 19 reviews for inclusion, most of which were low quality, as was the underlying primary evidence. Most reviews (n = 14) had outcomes relating to the benefits of the economy (rather than access to resources) and examined a limited set of interventions, primarily active labour market programmes and social security. There was limited high-quality review evidence to draw upon to identify effects on IE outcomes. Most reviews focused on disadvantaged groups and did not consider equity impacts. CONCLUSIONS: Review-level evidence is sparse and focuses on 'corrective' approaches. Future reviews should examine a diverse set of 'upstream' actions intended to be inclusive 'by design' and consider a wider range of outcomes, with particular attention to socioeconomic inequalities.

The impacts of global economic policy uncertainty on green bond returns: A systematic literature review.

This study utilizes the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework to investigate the interconnectedness of green bond with various financial markets, aiming to clarify their relationship with global economic uncertainty and their impact on returns. After a comprehensive search of pertinent research papers from January 2016 to September 2023, 79 relevant articles were identified. The analysis delves into the evolution of research on green bonds' interactions with economic policy uncertainty considering the financial markets, analytical methodologies, contributions to the field, and the role of green bonds under both normal and extreme market conditions. The study reveals noteworthy findings: firstly, the interplay between green bonds and financial markets is influenced by macroeconomic factors, such as the COVID-19 pandemic and the Russia-Ukraine conflict in 2022, which were significant sources of economic policy uncertainty during the study period. Secondly, during times of global economic uncertainties, green Bonds act as net transmitters of spillovers in the short term but shifts to net receivers in the long term, positioning them as strategic hedging assets rather than safe-havens, particularly against spillovers from crude oil and CO2 emission in times of economic uncertainties. Additionally, the review highlights prevalent methodologies employed to assess the relationship between global economic policy uncertainty and green bonds. Some of which include quantile approaches, the Diebold & Yilmaz 2012 spillover index, as well as various models like VAR models, GARCH models, ARDL models. Notably, certain countries like China, the United Kingdom, and Vietnam emerge as key contributors to this research domain. The review not only consolidates existing knowledge but also provides valuable insights for investors and policymakers regarding green bonds in terms of risk management and asset allocation, while also pointing towards potential avenues for future research in this field.