Asia-Pacific Financial Markets

Huynh, Toan Luu Duc; Walther, Thomas; Utz, Sebastian

doi: 10.1007/s10690-022-09362-ypmid: N/A

Schäfer, Theresa; Utz, Sebastian

doi: 10.1007/s10690-021-09332-wpmid: N/A

We study the financial stability of Values-Based Banks (VBBs) and Global Systemically Important Banks (GSIBs), and how regulatory changes in the aftermath of the financial crisis affected bank stability. These two types of banks allow contrasting an environmental and social impact banking approach to a conventional one. VBBs exhibit significantly higher financial stability before and during the financial crisis. However, regulatory changes in the aftermath of the financial crisis requiring higher capital buffer, have significantly affected GSIBs and rendered the difference in stability levels insignificant.

Murshed, Muntasir; Elheddad, Mohamed; Ahmed, Rizwan; Bassim, Mohga; Than, Ei Thuzar

doi: 10.1007/s10690-021-09335-7pmid: N/A

Phasing out fossil fuel dependency to adopt renewable energy technologies is pertinent for both ensuring energy security and for safeguarding the well-being of the environment. However, financial constraints often restrict the developing countries, in particular, from undergoing the renewable energy transition that is necessary for easing the environmental hardships. Against this background, this study makes a novel attempt to evaluate the impacts of FDI inflows on enhancing renewable energy use and attaining environmental sustainability in Bangladesh between 1972 and 2015. Using the autoregressive distributed lags with structural break approach to estimate the short- and long-run elasticities, it is found that FDI inflows enhance the share of renewable electricity output in the total electricity output levels of the country. Besides, FDI inflows are also evidenced to directly hamper environmental quality by boosting the ecological footprints figures of Bangladesh. Hence, it can be said that FDI promotes renewable electricity generation in Bangladesh but transforms the nation into a pollution haven. However, although FDI inflows cannot directly reduce the ecological footprints, a joint ecological footprint mitigation impact of FDI inflows and renewable electricity generation is evidenced. Besides, the findings also verify the authenticity of the Environmental Kuznets Curve hypothesis in Bangladesh’s context. Therefore, economic growth can be referred to as being both the cause and the panacea to the environmental problems faced by Bangladesh. These results, in a nutshell, calls for effective measures to be undertaken for attracting the relatively cleaner FDI in Bangladesh whereby the objectives of renewable energy transition and environmental sustainability can be achieved in tandem. In line with these findings, several appropriate financial globalization policies are recommended.

Huynh, Anh Ngoc Quang; Duong, Duy; Burggraf, Tobias; Luong, Hien Thi Thu; Bui, Nam Huu

doi: 10.1007/s10690-021-09338-4pmid: N/A

This paper is the first empirical paper to study the relationship between Bitcoin energy consumption and its market. Using the variance decompositions in combination with realized semi-variances for daily data, we find a relationship between Bitcoin energy consumption and its returns as well as volumes. Additionally, the directional impact from Bitcoin trading volumes to its energy consumption is higher than returns in the long run. The second Bitcoin crash also induces a higher connectedness of energy usage. Finally, we found the predictive power of energy on Bitcoin returns and volume. It holds true for the opposite predictive direction. Our results draw a challenge to the cryptocurrency ecosystems to sustainably innovate to impede their carbon footprint.

Huynh, Anh Ngoc Quang; Duong, Duy; Burggraf, Tobias; Luong, Hien Thi Thu; Bui, Nam Huu

doi: 10.1007/s10690-021-09345-5pmid: N/A

In the original publication of the article, the acknowledgement section has been missed to update.

Wu, Chunying; Xiong, Xiong; Gao, Ya

doi: 10.1007/s10690-021-09346-4pmid: N/A

This paper investigates the impact of ESG certification on the pricing efficiency in Chinese listed firms and examines the internal mechanism of this impact. Empirical findings identify that stocks included in the ESG lists have relatively better pricing efficiency performances. Added to (Removed from) the ESG lists can be a certification of good (bad) ESG performance and improve (lessen) the pricing efficiency. Two potential internal mechanisms of the improvement of ESG certification on pricing efficiency performances might be the improvement of stock liquidity and the reduction of information asymmetry.

Zhang, Yongjie; Li, Yue; Shen, Dehua

doi: 10.1007/s10690-021-09348-2pmid: N/A

The prices of carbon emission markets are widely concerned for a long time. This paper firstly employs the Baidu Index as the novel proxy for investor attention and investigates the connection between investor attention and both returns and ranged-based volatilities of the six main carbon emission allowances in China. We adopt the novel nonparametric wavelet-based Granger causality test due to the inherent non-stationarity and nonlinearity characteristics of the carbon prices. We find there exists a bidirectional Granger causal relationship between investor attention and the two variables of the carbon market. Besides, the short-term cycle length is the most common Granger causality in our study. These results can help participants and scholars in China to forecast the price of carbon emission market. The government could employ investor attention to stimulate the carbon emission market.