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Sustainable Financial Markets

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (31 October 2019) | Viewed by 214820

Special Issue Editor

Dr. Francisco Guijarro

E-Mail Website1 Website2
Guest Editor
Faculty of Business Administration and Management, Universitat Politècnica de València, 46022 Valencia, Spain
Interests: financial markets; trading strategies; valuation; sustainability
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Sustainability plays a key role in the development of new policies and regulations for stock markets. Investors, regulators, and private companies must work together to improve corporate transparency in financial markets, and account for comparability measures across different markets. New approaches for including ethical issues in the development of artificially intelligent agents should be also considered, along with a proper modeling of investment decisions and the development of innovative and effective financial instruments for investors. This Special Issue will gather original research in the field of sustainable financial markets, and how participants are integrating environmental, social, and governance criteria into investment decisions. Suitable topics include, but are not limited to, the following: ethical exchange, price setting, ethical public offerings, supporting start-up finance, social and environmental criteria in investments, trading markets strategies, automated strategies for derivatives, foreign exchange market, social trading, sustainable investments, fintech, green banking, and sustainable crowdfunding.

Prof. Francisco Guijarro
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • sustainable investments
  • sustainable banking
  • socially responsible funds
  • algorithmic trading

Published Papers (19 papers)

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Research

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20 pages, 742 KiB  
Article
Performance and Resilience of Socially Responsible Investing (SRI) and Conventional Funds during Different Shocks in 2016: Evidence from Japan
by Saiful Arefeen and Koji Shimada
Sustainability 2020, 12(2), 540; https://0-doi-org.brum.beds.ac.uk/10.3390/su12020540 - 10 Jan 2020
Cited by 12 | Viewed by 4015
Abstract
Socially responsible investing (SRI) reap the benefits of a social consensus and is often presented as a solution to conciliate finance and sustainable development. This article investigates the performance and resilience of both socially responsible and conventional funds listed in the Japan Investment [...] Read more.
Socially responsible investing (SRI) reap the benefits of a social consensus and is often presented as a solution to conciliate finance and sustainable development. This article investigates the performance and resilience of both socially responsible and conventional funds listed in the Japan Investment Trust Association (JITA) during two economic shocks (the U.S. election and Brexit) in 2016. To see the immediate reaction in fund performance around different shocks, an event study with market model using ordinary least square (OLS), an event study with market model using exponential generalized autoregressive heteroscedasticity (EGARCH) and an event study with Fama–French multi-factor model was used to avoid common features of return data such as non-normality, heteroscedasticity, and cross-correlation. This study found that the recent U.S. election had a significant positive effect whereas the Brexit referendum event had a significant negative shock on fund returns in Japan around the event window. It is evident from the empirical findings that, compared to conventional funds, socially responsible funds were more resilient to uncertainty around the recent U.S. presidential election whereas conventional funds were more sensitive during the Brexit referendum. The important implications of these findings are the optimal strategies of institutional or individual investors who have direct or indirect exposure to the fund volatility risk in Japan. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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17 pages, 927 KiB  
Article
An Empirical Investigation to the “Skew” Phenomenon in Stock Index Markets: Evidence from the Nikkei 225 and Others
by Yizhou Bai and Zhiyu Guo
Sustainability 2019, 11(24), 7219; https://0-doi-org.brum.beds.ac.uk/10.3390/su11247219 - 16 Dec 2019
Cited by 4 | Viewed by 9944
Abstract
The skew processes have recently received much attention, owing to their capacity to describe controlled dynamics. In this paper, we employ the skew geometric Brownian motion (SGBM) to depict nine major stock index markets. The skew process not only shows us where the [...] Read more.
The skew processes have recently received much attention, owing to their capacity to describe controlled dynamics. In this paper, we employ the skew geometric Brownian motion (SGBM) to depict nine major stock index markets. The skew process not only shows us where the “support” and “resistance” levels are, but also how strong the force is. However, the densities of the skew processes make it challenging to estimate the parameters in a convenient manner. For the sake of overcoming this challenge, we adopt a Bayesian approach, which plays an important role in allowing us to estimate the parameters by conditional probability densities without having to evaluate complex integrals. Furthermore, we also propose the likelihood ratio tests and significance tests for the skew probability. In the empirical study, our findings reveal that skew phenomenon exists in the global stock markets and that the SGBM model works better than the traditional GBM model, as well as performing competitively, compared to the GBM-jump model (GBM-J) and Markov regime switching GBM model (GBM-MRS). In addition, we explore the possible reasons behind the skew phenomenon in stock markets, the price clustering phenomenon and herd behaviors can help to explain the skew phenomenon. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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15 pages, 965 KiB  
Article
Monetary Policy, Industry Heterogeneity and Systemic Risk—Based on a High Dimensional Network Analysis
by Yaya Su, Zhehao Huang and Benjamin M. Drakeford
Sustainability 2019, 11(22), 6222; https://0-doi-org.brum.beds.ac.uk/10.3390/su11226222 - 06 Nov 2019
Cited by 2 | Viewed by 2448
Abstract
We utilized a high dimensional financial network to investigate the systemic risk contagion between different industries in China and to explore the impacts of monetary policy and industry heterogeneity factors. The empirical results suggest that the total level of systemic risk increased quite [...] Read more.
We utilized a high dimensional financial network to investigate the systemic risk contagion between different industries in China and to explore the impacts of monetary policy and industry heterogeneity factors. The empirical results suggest that the total level of systemic risk increased quite significantly during the 2008 global crisis and the 2015–2016 Stock Market Disaster. The energy, material, industrial, and financial sectors are the top systemic risk contributors. Industry heterogeneity variables such as the leverage ratio, book-to-market ratio, return on assets (ROA) and size have significant impacts on the systemic risk, but their effects on the systemic risk contribution are more pronounced than those on the systemic risk sensitivity. Moreover, monetary policy can effectively suppress the systemic risk diffusion derived from the leverage ratio. These results are essential for investors and regulators of risk management. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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18 pages, 442 KiB  
Article
Changing the Accounting System to Foster Universities’ Financial Sustainability: First Evidence from Italy
by Ferdinando Di Carlo, Guido Modugno, Tommaso Agasisti and Giuseppe Catalano
Sustainability 2019, 11(21), 6151; https://0-doi-org.brum.beds.ac.uk/10.3390/su11216151 - 04 Nov 2019
Cited by 12 | Viewed by 3597
Abstract
According to the European University Association, nowadays financial sustainability is one of the key challenges for Higher Education Institutions. The financial sustainability of public universities is threatened by cutbacks in public funding and by society’s growing demand for improvements to the volume and [...] Read more.
According to the European University Association, nowadays financial sustainability is one of the key challenges for Higher Education Institutions. The financial sustainability of public universities is threatened by cutbacks in public funding and by society’s growing demand for improvements to the volume and quality of services provided. A recent reform in Italy has determined that universities are required to move to accrual accounting, starting from the assumption that this system responds more effectively to issues relating to financial stability control. This paper evaluates whether the new financial reporting system is better placed to represent the universities’ conditions of financial sustainability. Moreover, specific measures have been developed to investigate which financial strategies, if any, have been adopted in Italian universities to react to the new competitive context. Working in collaboration with practitioners from the HE sector, the research team developed a framework based on specific financial ratios to assess the financial sustainability of these institutions and to analyse their financial strategies. The findings reveal that, notwithstanding some common features, there are significant variations between Italian universities and they are addressing the new challenges with a range of different approaches. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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22 pages, 4937 KiB  
Article
The Comovement of Exchange Rates and Stock Markets in Central and Eastern Europe
by Simona Moagăr-Poladian, Dorina Clichici and Cristian-Valeriu Stanciu
Sustainability 2019, 11(14), 3985; https://0-doi-org.brum.beds.ac.uk/10.3390/su11143985 - 23 Jul 2019
Cited by 11 | Viewed by 4198
Abstract
This paper analyses the link between exchange rates and stock markets in four Central and Eastern European countries. We simultaneously explore the comovements of foreign exchange markets and stock markets at the cross-country level and the link between these two markets within each [...] Read more.
This paper analyses the link between exchange rates and stock markets in four Central and Eastern European countries. We simultaneously explore the comovements of foreign exchange markets and stock markets at the cross-country level and the link between these two markets within each country while employing a Dynamic Conditional Correlation Mixed Data Sampling (DCC-MIDAS) model. Such an approach to financial markets conveys a much more visible picture of the existing patterns of financial integration between these markets that would otherwise be neglected. The estimates reveal significant differences between the patterns of correlation in our sample countries. First, the paper finds a quite low degree of convergence between foreign exchange markets, with rising correlations during some of the crisis episodes. Second, both the 2004 European Union enlargement and the European sovereign debt crisis underpin the stock market comovements in the Central and Eastern European countries. Third, the correlations between the exchange rate returns and stock markets rise mostly during the European sovereign debt crisis and to a lesser extent during the global financial crisis, revealing signs of contagion and lower portfolio diversification opportunities. These results are of utmost relevance for the process of financial integration and they also have important implications for policy makers, risk management, and investors. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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29 pages, 1559 KiB  
Article
Research on Trade Credit and Bank Credit Based on Dynamic Inventory
by Quansheng Lei, Zhelian Xu and Siqi Yang
Sustainability 2019, 11(13), 3608; https://0-doi-org.brum.beds.ac.uk/10.3390/su11133608 - 30 Jun 2019
Cited by 4 | Viewed by 2524
Abstract
Trade credit is a short-term business financing based on purchases between the retailer and the supplier. This paper considers a supply chain consisting of a well-funded supplier and a capital-constrained retailer. At the beginning of each sales season, the retailer need to place [...] Read more.
Trade credit is a short-term business financing based on purchases between the retailer and the supplier. This paper considers a supply chain consisting of a well-funded supplier and a capital-constrained retailer. At the beginning of each sales season, the retailer need to place an order from the supplier to meet the stochastic demand. The capital-constrained retailer determines the order quantity and whether to borrow loans from a bank or the supplier or just use its initial capital, according to its finance and stock status with the wholesale price provided by the supplier. We build the Stackelberg game with the supplier as the leader and divide the retailer’s initial inventory and capital into different wealth regions to discuss the optimal strategies of different wealth regions. We extend to the two-period dynamic financing model based on dynamic inventory and capital flow so as to obtain the optimal strategy matrix of the retailer and the supplier under bank and trade credit. Numerical results validate our theoretical analysis of bank credit and supplier credit with dynamic inventory under different period setting. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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19 pages, 1295 KiB  
Article
A Scoping Review of Barriers to Investment in Climate Change Solutions
by Sarah Hafner, Olivia James and Aled Jones
Sustainability 2019, 11(11), 3201; https://0-doi-org.brum.beds.ac.uk/10.3390/su11113201 - 08 Jun 2019
Cited by 19 | Viewed by 6632
Abstract
The finance sector has engaged with policy development processes associated with climate solutions for well over a decade, with the aim of overcoming barriers to investment. In this paper we analyse 31 practice-based policy reports which highlight key barriers to such investing. We [...] Read more.
The finance sector has engaged with policy development processes associated with climate solutions for well over a decade, with the aim of overcoming barriers to investment. In this paper we analyse 31 practice-based policy reports which highlight key barriers to such investing. We use those practice-based policy reports to identify themes associated with barriers to investment to conduct a scoping literature review of academic research. We identify 91 relevant papers and use content analysis to summarise the barriers identified in a structured way to help inform the research landscape in a timely manner. Given the urgency of this issue, we call on the academic community to focus more effort in this new and emerging discipline and, in particular, on the need for an independent view on the validity of some of the claims made in these practice-based policy reports. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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14 pages, 904 KiB  
Article
Selecting Socially Responsible Portfolios: A Fuzzy Multicriteria Approach
by Fernando García, Jairo González-Bueno, Javier Oliver and Nicola Riley
Sustainability 2019, 11(9), 2496; https://0-doi-org.brum.beds.ac.uk/10.3390/su11092496 - 28 Apr 2019
Cited by 31 | Viewed by 5004
Abstract
We propose a multi-objective approach for portfolio selection, which allows investors to consider not only return and downside risk criteria but also to include environmental, social and governance (ESG) scores in the investment decision-making process. Owing to the uncertain environment of portfolio selection, [...] Read more.
We propose a multi-objective approach for portfolio selection, which allows investors to consider not only return and downside risk criteria but also to include environmental, social and governance (ESG) scores in the investment decision-making process. Owing to the uncertain environment of portfolio selection, the return and ESG score of each asset are considered as independent L-R power fuzzy variables. To make the model more realistic, we take budget, floor ceiling and cardinality constraints into account. In order to select the optimal portfolio along the efficient frontier, we apply the Sortino ratio in a credibilistic environment. The subsequent empirical application uses a data set from Bloomberg’s ESG Data in combination with US Dow Jones Industrial Average data. The experimental results show that the proposed model offers promising results for socially responsible investors seeking ethical and sustainability goals beyond the return-risk trade-off and its ability to beat the benchmark. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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14 pages, 1065 KiB  
Article
The Inclusion of Socially Irresponsible Companies in Sustainable Stock Indices
by Iván Arribas, María Dolores Espinós-Vañó, Fernando García and Paula Beatriz Morales-Bañuelos
Sustainability 2019, 11(7), 2047; https://0-doi-org.brum.beds.ac.uk/10.3390/su11072047 - 06 Apr 2019
Cited by 32 | Viewed by 6094
Abstract
Social rating agencies implement complex filters to identify the companies with the best sustainable and social performance and help investors select the companies for their sustainable portfolios. This study analysed whether companies that are defined as ethical, sustainable and socially responsible by those [...] Read more.
Social rating agencies implement complex filters to identify the companies with the best sustainable and social performance and help investors select the companies for their sustainable portfolios. This study analysed whether companies that are defined as ethical, sustainable and socially responsible by those agencies actually deserve this label. More specifically, the inclusion in the prestigious Dow Jones Sustainability Index (DJSI) World of companies that have been involved in controversies according to the Thomson Reuters Eikon database was studied. The results show that the inclusion of irresponsible companies in the DJSI Index is a fact. This outcome is in line with previous studies that criticise the methodologies applied by social rating agencies and those which outline the similarity of sustainable and conventional portfolios. The results may explain the contradictory conclusions regarding the performance of sustainable and conventional mutual funds in numerous studies. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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15 pages, 289 KiB  
Article
Asymmetric Cost Behavior and Investment in R&D: Evidence from China’s Manufacturing Listed Companies
by Renji Sun, Kung-Cheng Ho, Yan Gu and Chang-Chih Chen
Sustainability 2019, 11(6), 1785; https://0-doi-org.brum.beds.ac.uk/10.3390/su11061785 - 25 Mar 2019
Cited by 8 | Viewed by 3723
Abstract
Asymmetric cost behavior or stickiness has drawn attention in recent years. Although studies have focused on the causes of and factors contributing to cost stickiness, few have investigated its economic consequences. This paper empirically examines how firms’ asymmetric behavior influences their research and [...] Read more.
Asymmetric cost behavior or stickiness has drawn attention in recent years. Although studies have focused on the causes of and factors contributing to cost stickiness, few have investigated its economic consequences. This paper empirically examines how firms’ asymmetric behavior influences their research and development (R&D) investment. Because cost stickiness increases innovation failure cost, we expect cost stickiness to reduce R&D expenditure. By using data from Chinese listed manufacturing firms between 2007 and 2015, we empirically test and confirm this hypothesis. On average, with one standard deviation added to the mean, R&D expenditure over total asset and that over total sales are reduced by 2.7% and 2.2%, respectively. Furthermore, the dampening effect of cost stickiness on R&D investment becomes more prominent with increasing risks faced by firms. Only SG&A cost stickiness exerts a dampening effect on R&D, whereas cost of goods sold (COGS) and total cost stickiness demonstrate no significant effects. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
20 pages, 7633 KiB  
Article
Assessing the Sustainability of High-Value Brands in the IT Sector
by María Ángeles Alcaide, Elena De La Poza and Natividad Guadalajara
Sustainability 2019, 11(6), 1598; https://0-doi-org.brum.beds.ac.uk/10.3390/su11061598 - 15 Mar 2019
Cited by 13 | Viewed by 3417
Abstract
Nowadays, companies have more freedom on how they can report their corporate social responsibility (CSR) actions and outcomes, despite them being increasingly important for how investors and shareholders can obtain knowledge about companies’ non-financial aspects. This is why more importance is being attached [...] Read more.
Nowadays, companies have more freedom on how they can report their corporate social responsibility (CSR) actions and outcomes, despite them being increasingly important for how investors and shareholders can obtain knowledge about companies’ non-financial aspects. This is why more importance is being attached to sustainability rankings as an additional tool to seek excellence and distinguish between companies. The main objective of the present research was to analyze the degree of similarity in sustainability valuations among the most important open-access sustainability rankings that have appeared in the last decade (Green Ranking, RepTrack, Global 100 most sustainable corporations, and Finance Yahoo Sustainability). The secondary objective was to study whether these rankings incorporated the most de facto prestigious brands, and the third objective was to learn of the influence of the level of controversy in Finance Yahoo Sustainability scores in technological companies. Our results reveal wide variability among open-access CSR rankings. Not all the most valued brands appear in the sustainability rankings, which indicates the differences between the rankings of brands and CSR rankings. Finally, the level of controversy was found to be an important aspect in companies’ CSR scores. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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24 pages, 1585 KiB  
Article
The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector
by Miklós Pakurár, Hossam Haddad, János Nagy, József Popp and Judit Oláh
Sustainability 2019, 11(4), 1113; https://0-doi-org.brum.beds.ac.uk/10.3390/su11041113 - 20 Feb 2019
Cited by 182 | Viewed by 112752
Abstract
Banks must meet the needs of their customers in order to achieve sustainable development. The aim of this paper is to examine service quality dimensions, by using the modified SERVQUAL model, which can be used to measure customer satisfaction, and the effect of [...] Read more.
Banks must meet the needs of their customers in order to achieve sustainable development. The aim of this paper is to examine service quality dimensions, by using the modified SERVQUAL model, which can be used to measure customer satisfaction, and the effect of these dimensions (tangibles, responsiveness, empathy, assurance, reliability, access, financial aspect, and employee competences) on customer satisfaction in Jordanian banks. Data were gathered from 825 customers in the Jordanian banking sector. The sample data were statistically analyzed through exploratory factor analysis by the SPSS program to determine service quality perception and customer satisfaction. The results illustrate that the modified SERVQUAL Model extracted four subscales in the new model instead of eight in the initial model. The first subscale contains four dimensions—assurance, reliability, access and employee competences. The second subscale consists of two dimensions—responsiveness and empathy. The third and fourth subscales—financial aspect and tangibility—are separate factors. Further studies should consider the dimensions of access, financial aspect, and employee competences as essential parts of service quality dimensions with the other subscales, so as to improve wider customer satisfaction in the banking sector. In the authors’ opinion, the modified SERVQUAL model is useful for addressing customer satisfaction in the banking sector. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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23 pages, 3661 KiB  
Article
Stock Market Integration of Pakistan with Its Trading Partners: A Multivariate DCC-GARCH Model Approach
by Ahmed Shafique Joyo and Lin Lefen
Sustainability 2019, 11(2), 303; https://0-doi-org.brum.beds.ac.uk/10.3390/su11020303 - 09 Jan 2019
Cited by 31 | Viewed by 7184
Abstract
A decade after the global financial crisis, the developments in stock market integration have increased the stability and liquidity of markets, and decreased the diversification benefits for investors. International trade is an important determinant of stock market interdependence. The objective of this study [...] Read more.
A decade after the global financial crisis, the developments in stock market integration have increased the stability and liquidity of markets, and decreased the diversification benefits for investors. International trade is an important determinant of stock market interdependence. The objective of this study is to analyze the co-movements and the portfolio diversification between the stock markets of Pakistan and its top trading partners, namely China, Indonesia, Malaysia, the United Kingdom, and the United States. We employed Dynamic Conditional Covariance (DCC)-Generalized Autoregressive Conditional Heteroscedasticity (GARCH) methodology with student t-distribution to examine time-varying correlation and volatilities of stock markets of Pakistan and its trading partners. We used Morgan Stanley capital international (MSCI) daily returns data of developed and emerging markets for the period 2005 to 2018. The results of the study highlighted that stock markets of Pakistan and its trading partners were closely integrated during the financial crisis of 2008, while the integration among stock markets decreased substantially after the period of financial crises. Furthermore, the results showed the slow decay process. Therefore, it is a positive sign for the Pakistani and international investors to diversify their portfolio among the stock markets of Pakistan and its trading partners. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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15 pages, 416 KiB  
Article
An Empirical Study on the Impact of Foreign Strategic Investment on Banking Sustainability in China
by Wanping Yang, Bingyu Zhao, Jinkai Zhao and Zhengda Li
Sustainability 2019, 11(1), 181; https://0-doi-org.brum.beds.ac.uk/10.3390/su11010181 - 01 Jan 2019
Cited by 7 | Viewed by 3126
Abstract
In order to improve the banking sustainability in China, China’s government has announced that the restrictions on foreign shareholding ratio in domestic banks will be canceled. However, the effectiveness of foreign strategic investment needs checking. In addition, under the new policy, the method [...] Read more.
In order to improve the banking sustainability in China, China’s government has announced that the restrictions on foreign shareholding ratio in domestic banks will be canceled. However, the effectiveness of foreign strategic investment needs checking. In addition, under the new policy, the method by which banks formulate appropriate internal decisions about introducing foreign strategic investment is an important issue for bank managers. Continuous productivity growth will bring sustainable development; therefore, the aims of this paper are: (1) to find the relationship between foreign strategic investment and productivity change of China’s banks, and to verify the effectiveness of introducing foreign strategic investment; (2) to find the optimal foreign shareholding ratio; (3) to show how foreign strategic investment affects the productivity of China’s banks, i.e. the transmission mechanism between them, and to provide bank managers with evidence and support for making decisions on introduction of foreign strategic investment. This paper employs the Malmquist-Luenberger index and combines it with Epsilon-based-measure to derive a new index, i.e. the EBM-Malmquist-Luenberger index, to measure the dynamic productivity change of China’s banks. In addition, the dynamic panel data and system GMM estimator are used to analyze the transmission mechanism as well as the impact of foreign strategic investment on the productivity of China’s banks. The results revealed three facts. First, when the foreign shareholding ratio increases within a given range, foreign strategic investment continuously improves the productivity and sustainability of China’s banks. Second, an inverse N-shaped relation between foreign strategic investment and productivity growth of China’s banks is supported, and the optimal foreign shareholding ratio is 20.16%. Last but not least, foreign strategic investment improves the productivity and sustainability of China’s banks, mainly through changing scale efficiency. The results of this paper may provide support for policy formulation of China’s banks. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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18 pages, 678 KiB  
Article
Enabling Effective Social Impact: Towards a Model for Impact Scaling Agreements
by Jessica Aschari-Lincoln and Claus D. Jacobs
Sustainability 2018, 10(12), 4669; https://0-doi-org.brum.beds.ac.uk/10.3390/su10124669 - 07 Dec 2018
Cited by 5 | Viewed by 3071
Abstract
Scaling is a critical organizational phase for social organizations: their upfront financial needs increase dramatically. This paper responds—on the basis of initial research on capacity, up-, and deep scaling strategies—to the need for integrated knowledge on financing processes within the context of [...] Read more.
Scaling is a critical organizational phase for social organizations: their upfront financial needs increase dramatically. This paper responds—on the basis of initial research on capacity, up-, and deep scaling strategies—to the need for integrated knowledge on financing processes within the context of social organizations’ impact scaling phase. An exploration of a market leader’s processes uncovered both strengths and struggles, which in turn enabled new levels of understanding related to the research question, “How can impact scaling agreements enable effective social impact?” The fact that the financial provider examined in this empirical study lacked alignment in its scaling approach, goals, and reporting processes over time hampered its effectiveness and sustainability. The findings from this qualitative inter-temporal content analysis enable the development of a model for impact scaling agreements. This shows ongoing flows between the provider and recipient of financial and nonfinancial resources and impact information, as well as decision-making and reporting processes. The outcome of researching the question “how can impact scaling agreements enable effective social impact?” was the identification of three success enhancers for effective social impact scaling agreements to enable social impact: (1) Financial provider alignment pre- and per-engagement in terms of expectations with regard to scaling approach and goals; (2) Scaling approach coherence in terms of understanding and acting upon the inter-relatedness and, in fact, mutual dependency between capacity, up-, and deep scaling; (3) Impact reporting alignment of the target group with the financial recipient and the financial provider. This research makes a twofold contribution to the literature. First, the pivotal role of internal alignment between mission, strategy, reporting, and decision-making processes is explored; second, the three scaling strategies of capacity, up-, and deep scaling are established as interrelated dimensions of the same phenomenon. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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18 pages, 2981 KiB  
Article
Pattern Matching Trading System Based on the Dynamic Time Warping Algorithm
by Sang Hyuk Kim, Hee Soo Lee, Han Jun Ko, Seung Hwan Jeong, Hyun Woo Byun and Kyong Joo Oh
Sustainability 2018, 10(12), 4641; https://0-doi-org.brum.beds.ac.uk/10.3390/su10124641 - 06 Dec 2018
Cited by 28 | Viewed by 4907
Abstract
The futures market plays a significant role in hedging and speculating by investors. Although various models and instruments are developed for real-time trading, it is difficult to realize profit by processing and trading a vast amount of real-time data. This study proposes a [...] Read more.
The futures market plays a significant role in hedging and speculating by investors. Although various models and instruments are developed for real-time trading, it is difficult to realize profit by processing and trading a vast amount of real-time data. This study proposes a real-time index futures trading strategy that uses the KOSPI 200 index futures time series data. We construct a pattern matching trading system (PMTS) based on a dynamic time warping algorithm that recognizes patterns of market data movement in the morning and determines the afternoon’s clearing strategy. We adopt 13 and 27 representative patterns and conduct simulations with various ranges of parameters to find optimal ones. Our experimental results show that the PMTS provides stable and effective trading strategies with relatively low trading frequencies. Financial market investors are able to make more efficient investment strategies by using the PMTS. In this sense, the system developed in this paper contributes the efficiency of the financial markets and helps to achieve sustained economic growth. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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11 pages, 365 KiB  
Article
Enhancing Bank Loyalty through Sustainable Banking Practices: The Mediating Effect of Corporate Image
by Nicholas Igbudu, Zanete Garanti and Temitope Popoola
Sustainability 2018, 10(11), 4050; https://0-doi-org.brum.beds.ac.uk/10.3390/su10114050 - 05 Nov 2018
Cited by 38 | Viewed by 6931
Abstract
As the demand for a more sustainable society increases, adopting a sustainable banking approach serves as a competitive advantage for banks that are focused on attaining bank loyalty. This study revolves around understanding the role of sustainable banking practices in bank loyalty while [...] Read more.
As the demand for a more sustainable society increases, adopting a sustainable banking approach serves as a competitive advantage for banks that are focused on attaining bank loyalty. This study revolves around understanding the role of sustainable banking practices in bank loyalty while exploring the mediating effect of corporate image on the relationship between sustainable banking practices and bank loyalty. For this study, 511 questionnaires derived from customers of the banking sector were adopted. Results from structural equation modeling showed that sustainable banking practices positively and directly affected bank loyalty and corporate image, corporate image directly and positively affected bank loyalty, and corporate image also mediated the relationship between sustainable banking practices and bank loyalty. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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Review

Jump to: Research

18 pages, 751 KiB  
Review
Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review
by Ta Nhat Linh, Hoang Thanh Long, Le Van Chi, Le Thanh Tam and Philippe Lebailly
Sustainability 2019, 11(5), 1468; https://0-doi-org.brum.beds.ac.uk/10.3390/su11051468 - 09 Mar 2019
Cited by 64 | Viewed by 14192
Abstract
Agricultural sectors play an important role in the process of economic development of a country, especially in developing ones. Vietnam is known as an emerging market, which depends directly on agriculture-related activities for their livelihood, in which the issue of rural credit access [...] Read more.
Agricultural sectors play an important role in the process of economic development of a country, especially in developing ones. Vietnam is known as an emerging market, which depends directly on agriculture-related activities for their livelihood, in which the issue of rural credit access still remains a confounding problem. The paper focuses on the characteristics of rural credit markets, the determinants of farmer access to the markets, the socio-economic impacts of credit access in Vietnam and briefly comparing with those of some developing countries. This question is addressed by reviewing existing literature and empirical evidence, followed by a comprehensive case study in Vietnam. Comprehensive literature review with secondary data collection and key informant interviews are methods that are applied in this research. The results of this analysis indicate the features of Vietnam markets as participated constraints, government intervention, and segmentation. Other results reveal the significant determinants of credit accessibility. Impacts of credit access on output production, household income, and poverty reduction are highlighted in this paper. Some managerial implications are recommended for households through participation in lending networks; for financial institutions relating to expand target clients as well as capital allocation; and, for policy-makers via ensuring market competitiveness and sustainable development in the long run. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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Review
The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector
by Miklós Pakurár, Hossam Haddad, János Nagy, József Popp and Judit Oláh
Sustainability 2019, 11(5), 1248; https://0-doi-org.brum.beds.ac.uk/10.3390/su11051248 - 27 Feb 2019
Cited by 40 | Viewed by 8667
Abstract
The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external [...] Read more.
The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance. Full article
(This article belongs to the Special Issue Sustainable Financial Markets)
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