Research explores how local communities and corporations interact in finance.
problem Impact of local government subsidies and corporate bankruptcy on bond yields.
method Difference-in-differences analysis, econometric models, deep-learning model.
result Corporate subsidies and bankruptcy filings affect bond yields significantly.
A new ride-hailing subsidy system uses deep causal networks to estimate consumer elasticity.
problem Estimating consumer elasticity with subsidies in ride-hailing industry.
method Introduces a consumer subsidizing system using deep causal networks to address confounding effects.
result Effective in estimating the uplift effect of subsidies without confounding.
Study evaluates UK CDC schemes, finding intergenerational cross-subsidies in flat-accrual schemes and dynamic-accrual schemes can reduce but not eliminate them.
problem Intergenerational cross-subsidies in UK CDC schemes, particularly in flat-accrual schemes.
method Comparison of flat-accrual and dynamic-accrual CDC schemes, analysis of performance and level of cross-subsidies.
result Dynamic-accrual schemes can reduce but not eliminate intergenerational cross-subsidies, while flat-accrual schemes often have significant cross-subsidies.
New CDC scheme avoids intergenerational subsidies, offering better outcomes.
problem Intergenerational cross-subsidies in UK CDC schemes.
method Collective-Drawdown CDC approach using explicit insurance contracts.
result Better pension outcomes with no intergenerational cross-subsidies.
Privacy subsidy found in market trading with noisy direction signals.
problem Analyzing welfare and bid-ask spread in a market with privacy mechanisms.
method Closed-form derivation of bid-ask spread and welfare under flip-noise direction observation.
result Privacy subsidy of μηΔ from liquidity pool to traders, robust across models. Continuous-time Kyle model shows privacy subsidy from noise-perturbed order flow.
problem Quantifying break-even fees for committed-AMM exchanges under privacy-aggregated information.
method Extended Nakamura's (2026) single-period result to continuous-time, observing order flow perturbed by Brownian noise.
result Cumulative privacy subsidy is identified as equivalent to Loss-Versus-Rebalancing in price observation gap.
This paper improves bond market making by adjusting hit-ratios for client flow quality.
problem Economic misleading of raw hit-ratios in corporate bond market making.
method Stochastic-control framework with residual-quality-adjusted hit-ratio.
result Optimal quotes decompose into various components, improving service/economics frontier.
Subsidized insurance reduces poverty by providing social benefits and lowering government costs.
problem Reducing poverty through effective social protection mechanisms.
method Modeling household capital dynamics under four insurance frameworks (uninsured, insured, insured with subsidies, insured with flexible premiums) to assess poverty reduction and governmental costs.
result Subsidized insurance schemes provide maximum social benefits while reducing governmental costs, effectively reducing poverty.
Botswana's agricultural credit scheme is unsustainable and needs reform.
problem The current scheme is unsustainable and based on flawed actuarial principles.
method Proposes a new subsidy and premium rate setting method considering non-drought years.
result A sustainable agricultural credit guarantee scheme is recommended.
Privacy-preserving crypto exchanges adjust prices based on Gaussian noise.
problem Ensuring fair pricing in privacy-preserving cryptocurrency exchanges.
method Derive Kyle equilibrium with Gaussian noise perturbation, rescaling price-impact and strategy factors.
result Identify a privacy subsidy as a transfer from LP pool to traders, invariant to noise.
The study examines how board diversity and CSR committee composition affect corporate governance and financial performance.
problem The relationship between corporate social responsibility (CSR) and corporate governance.
method Theoretical model development based on management and corporate governance theories, focusing on board diversity and CSR committee composition.
result Cognitive and demographic characteristics of board members provide more insights into the link between corporate governance and CSR.
COF algorithm minimizes cost in multi-armed bandits with known costs and reward constraints.
problem Minimizing cost while meeting a minimum reward requirement in uncertain environments.
method COF algorithm that intelligently combines samples from all arms to gauge feasibility and minimize cost.
result COF achieves instance-dependent upper bounds on cumulative cost and quality regret.
CCR-CNN uses CNN to predict corporate credit ratings from financial data.
problem Lack of data and limited model performance in predicting corporate credit ratings.
method Transform corporations into images and use CNN to analyze complex feature interactions.
result CCR-CNN outperforms state-of-the-art methods in predicting corporate credit ratings.
Study shows corporate governance improves stock liquidity with noise traders' participation.
problem Improving liquidity of listed companies' stocks.
method Theoretical model with heterogeneity of investors' beliefs.
result Corporate governance and noise traders' participation synergistically improve stock liquidity.
Corporate venture capital is in the midst of a renaissance. The end of 2015 marked all-time highs both in the number of corporate firms participating in VC deals and in the amount of capital being deployed by corporate VCs. This paper explores, rather than defines, how these firms find success in the wake of this sudde…
Framework integrates financial and annual report data for better corporate credit ratings.
problem Lack of insights from non-financial data in credit rating models.
method Uses FinBERT to extract features from annual reports and combines them with financial data.
result Improves credit rating accuracy by 8-12%.
Study finds it hard to establish common factor pricing in corporate bonds.
problem Difficulty in establishing common factor pricing in corporate bonds.
method Portfolio- and bond-level analyses using multifactor models.
result Common factor pricing in corporate bonds is not significantly explanatory.
CAI automates extraction and validation of corporate GHG emission metrics.
problem Manual extraction of corporate GHG emission metrics is labor-intensive and error-prone.
method CAI uses LLMs to automate extraction and validation of metrics from corporate disclosures.
result CAI improves data collection efficiency and accuracy by automating the process.
Study finds corporate boards with women appoint more women, leading to better profitability.
problem Influence of female board members on corporate profitability.
method Analysis of Japanese corporate boards and their interlocks.
result Corporate boards with women appoint more women, leading to higher profitability.
Study examines UK firms' financial performance linked to corporate governance.
problem Impact of corporate governance on UK firms' financial performance.
method Cross-sectional regression analysis of 252 firms in 2014.
result Corporate governance mechanisms have mixed effects on financial performance.
The VIX is used to model corporate bond volatility and returns.
problem Modeling volatility and returns for corporate bonds using observable data.
method Applied stochastic volatility models using the VIX index to corporate bond rates and spreads.
result Residuals of corporate bond returns divided by VIX are closer to Gaussian white noise.
Large corporate credit models may be adapted for small business risk assessment.
problem Limited data and lack of credit analysts for small businesses.
method Adapting large corporate credit risk models for small businesses.
result Adapted models can predict small business credit risk effectively.
AI analyzes corporate ESG filings to identify key dimensions and investor reactions.
problem Lack of reliable ESG ratings systems in corporate filings.
method AI techniques to separate and measure ESG dimensions and investor responses.
result AI can improve ESG ratings systems by identifying key dimensions and investor reactions.
A government has to finance a risk for its population. It shares the charges among the population with a fixed scale based on economic criteria. Various organisms have to collect and to redistribute fairly the subsidies. Under these conditions, when the size of the organisms is varied, the distribution's laws of the cr…
Religious adherence reduces corporate greenwashing behavior.
problem Greenwashing behavior by corporations.
method Analysis of a large US firm sample (2005-2019), focusing on selective disclosure.
result Religious adherence correlates with lower greenwashing behavior.
Develops a new model to better predict corporate bond yields.
problem Persistent shifts in interest rates undermine single-regime models.
method Regime-switching generalized CIR model with two-state short-rate process and credit factors.
result The model improves joint curve fit and delivers interpretable probabilities.
Traded corporations are required by law to have a majority of outside directors on their board. This requirement allows the existence of directors who sit on the board of two or more corporations at the same time, generating what is commonly known as interlocking directorates. While research has shown that networks of …
In a market system, regulations are designed to prevent or rectify market failures that inhibit fair exchange, such as monopoly or transactions with hidden costs. Because regulations reduce profits to those possessing unfair advantage, these advantaged corporations (whether individuals, companies, or other collective o…
This study finds ESG rating disagreement reduces corporate productivity, especially in certain types of firms.
problem The impact of ESG rating disagreement on corporate productivity.
method Analysis of A-share listed companies data from 2015 to 2022 using XGBoost regression and SHAP.
result ESG rating disagreement reduces corporate productivity, especially in certain types of firms.
Paper proposes a new trading strategy using corporate event detection from news articles.
problem Predicting stock movements based on corporate events from news articles.
method Bi-level event detection model: low-level for token-level event identification, high-level for article-level event identification.
result The proposed strategy outperforms existing models in stock prediction metrics.
We consider the relationship between economic activity and intervention, including monetary and fiscal policy, using a universal dynamic framework. Central bank policies are designed for growth without excess inflation. However, unemployment, investment, consumption, and inflation are interlinked. Understanding dynamic…
China integrates ESG into corporate strategy for sustainable growth.
problem Corporate focus on short-term financial metrics.
method Deep integration of ESG principles into corporate culture and strategy.
result Companies are expected to fulfill social responsibilities and create long-term value.
Corporate bond factor research is flawed due to measurement errors and ex-post filtering.
problem Replication crisis in corporate bond factor research.
method Analysis of 108 signals across nine thematic clusters, correction of transaction prices and return filtering.
result Majority of previously documented factors do not produce statistically significant alphas after correction.
Corporate transparency reduces investors' disposition effect by increasing confidence in holding profitable and losing stocks.
problem Irrational disposition effect in investors selling profitable assets too soon and holding onto losing assets for too long.
method Examined the impact of corporate transparency on individual investors' disposition effect.
result Increased corporate transparency significantly reduces the disposition effect.
Tax systems ensure sustainable economic development by adjusting production technologies and gross output volumes.
problem Ensuring sustainable economic development through optimal tax systems.
method Explicit formulas and mathematical proofs for tax systems based on production technologies and gross output volumes.
result The vector of gross output must belong to the interior of the cone formed by the columns of the total cost matrix under perfect taxation systems.
Paper presents a faster method for computing cost of equity and performing comparable company analysis.
problem Tedium and subjectivity in traditional cost of equity and comparable company analysis methods.
method Uses spectral and agglomerative clustering to compute cost of equity and perform comparable company analysis.
result Reduces time required for comps by orders of magnitude and improves consistency and reliability.
Model for corporate bond pricing with credit rating migration, solving a double free boundary problem.
problem Corporate bond pricing with credit rating migration risks.
method Established a pricing model as a double free boundary problem, proving existence, uniqueness, and regularity of the solution.
result Two free boundaries are shown to be smooth and converge to a traveling wave solution as time goes to infinity.
Study evaluates neural networks for corporate credit rating assessment.
problem Improving machine learning algorithms for credit assessment.
method Analysis of four neural network architectures (MLP, CNN, CNN2D, LSTM) on financial data from energy, financial, and healthcare sectors.
result LSTM architecture consistently outperforms others in predicting corporate credit ratings.
QCML improves bond similarity learning in illiquid markets.
problem Improving similarity learning for illiquid corporate bonds.
method Quantum Cognition Machine Learning (QCML) for supervised distance metric learning.
result QCML outperforms classical tree-based models in high-yield markets.
Current study aims to provide new empirical evidence on the impact of debt on corporate profitability. This impact can be explained by three essential theories: signaling theory, tax theory and the agency cost theory. Using panel data sample of 2240 French non listed companies of service sector during 1999-2006. By uti…
This paper uses RL to optimize bid-ask spreads for illiquid corporate bonds.
problem Optimizing bid-ask spreads for illiquid corporate bonds.
method Data-driven approach using Reinforcement Learning.
result Trained RL agent's behavior shows reasonable optimal bid-ask spreads.
This study examines the execution phase of corporate share buy-backs, highlighting inefficiencies and costs.
problem Lack of research on share buy-back execution practices and associated costs.
method Comparative analysis of execution practices and fees charged to corporations and investors.
result Uncovered inefficiencies and frictional costs in share buy-back executions, advocating for transparency and fairness.
We compare observed corporate cumulative default probabilities to those calculated using a stochastic model based on an extension of the work of Black and Cox and find that corporations default as if via diffusive dynamics. The model, based on a contingent-claims analysis of corporate capital structure, is easily calib…
Corporate governance struggles to curb fraud in a globalized economy.
problem Lack of effective international regulations against corporate fraud.
method Analyzes historical economic crises and the role of corporate governance.
result Corporate governance is insufficient to prevent large business fraud.
Blockchain disrupts corporate finance, but challenges remain.
problem Challenges in adopting blockchain for corporate finance.
method Exploring the impact of blockchain on corporate finance valuation and capital allocation.
result Blockchain offers new perspectives but faces regulatory, environmental, and legal challenges.
The structure of the control network of transnational corporations affects global market competition and financial stability. So far, only small national samples were studied and there was no appropriate methodology to assess control globally. We present the first investigation of the architecture of the international …
Inappropriate and profane content on social media is exponentially increasing and big corporations are becoming more aware of the type of content on which they are advertising and how it may affect their brand reputation. But with a huge surge in content being posted online it becomes seemingly difficult to filter out …
This paper reviews digital transformation research from 2011-2024, focusing on corporate finance.
problem Lack of systematic review in digital transformation from corporate finance perspective.
method Combines bibliometric and content analysis methods.
result Emerging and rapidly growing focus on digital transformation, particularly in developed countries.