Abstract We explore whether a greater amount of environmental disclosure can reduce firm's ex ante cost equity. This could occur because the quantity information changes investors' risk perception company, thereby influencing its Our study is cross‐country analysis 1481 multinational corporations (MNCs) across 43 countries and territories from 2013 to 2019. Firstly, we measure as equity by employing five different valuation models, all based on analysts' forecasted data. then investigate...

Abstract Environmental, Social and Governance (ESG) issues have become particularly relevant in the agendas of policymakers, investment decisions by companies asset allocation process investors. However, transition to a greener more sustainable economic system is not without risks. The literature has investigated relationship between ESG risk different ways, through multiple perspectives approaches. We select all documents with “ESG” “Risk” title, abstracts keywords available Scopus and,...

<ns4:p>Purpose This paper reviews the existing literature on divergence of Environmental, Social, and Governance (ESG) ratings explores various aggregation methods. It highlights challenges posed by inconsistent ESG their implications for investment decisions. Design/methodology/approach The study conducts a comprehensive review prior research focusing ratings, examining correlation levels methodologies employed to assess corporate sustainability. also investigates traditional techniques...

Abstract The diffusion of Environmental, Social and Governance (ESG) metrics is increasingly affecting corporates behaviour their ability to attract investors. Corporate ESG practices are nowadays considered as a key element in evaluating creditworthiness the cost capital, direct funds best‐performing companies that limit harmful impact on planet societies. Due this increased interest by companies, investors policymakers, high number scores have been developed, each with different...

Abstract This paper identifies banks born with a digital business model (‘neobanks’) and examines their performance riskiness vis-à-vis traditional peers. We propose novel approach to identify neobanks, based on non-financial hand-collected data, 65 neobanks operating in Europe. show that perform worse than peers, while recording similar level of risk. Namely, charge higher interest income, record impairment charges, face non-staff expenses. Further analysis suggests the presence economies...

Abstract With the emergence of Fintech lending, small firms can benefit from new channels financing. In this setting, creditworthiness and decision to extend credit are often based on standardized advanced machine-learning techniques that employ limited information. This paper investigates ability machine learning correctly predict risk ratings for firms. By employing a unique proprietary dataset invoice lending activities, shows overperform traditional techniques, such as probit, when set...

This paper examines whether and how soft information in corporate loan applications influences the lending decision process, organizational frictions moderate this influence. In context, refers to text data collected, analyzed, transmitted by officers bank's headquarters. Using a proprietary dataset from large European bank, study finds that impacts both outcomes speed of decisions. However, effect is moderated distance between officer Additionally, we provide evidence embedded comments...

This study investigates the impact of financial and non-financial factors on a firm's ex-ante cost capital, which is reflection investors' perception riskiness. Departing from previous literature, we apply XGBoost algorithm two explainable Artificial Intelligence methods, namely Shapley value approach Lorenz Model Selection to sample more than 1,400 listed companies worldwide. Results confirm relevance key indicators such as firm size, ROE, portfolio risk, but also individuate features...

In this paper, we compare two different approaches to estimate the credit risk for small- and mid-sized businesses (SMBs), namely a classic parametric approach, by fitting an ordered probit model, non-parametric calibrating machine learning historical random forest (HRF) model. The models are applied unique proprietary dataset comprising granular firm-level quarterly data collected from European investment bank international insurance company on sample of 464 Italian SMBs over period...

This article aims to evaluate the market performance of European tourism industry from 2004 2014, a period that includes financial and economic crises, highlight which macroeconomic factors influenced stock returns. The Stoxx Europe 600 Travel &amp; Leisure price index is used proxy performance, multifactor model employed individuate variables are able drive performance. Results by conditions uncertainty, measured through Chicago Board Options Exchange Volatility (VIX). Despite importance in...

This paper provides a review of theoretical contributions and empirical studies on the external internal mechanisms corporate governance insurance companies their effects performance and/or risk. Thanks to analysis published between 1985 2019 through bibliometric tools, we are able illustrate networks scientific collaborations (co-authorship) relationships most used terms, also highlighting significant groups scholars research strands. Additionally, carries out meta-analysis around thirty...

Listing firms are subject to underpricing mainly because of asymmetries information, but IPOs backed by a venture capitalist generally found be less underpricing. Although this condition is commonly verified the empirical evidence, consistent number studies finds contrasting results. This paper aims answer question: do capitalists effectively reduce at IPO? Evidence provides negative answer, with venture-backed having higher especially in US markets. Meta-regression results confirm different...

The research analyses the operation of FinTech companies, highlighting benefits and risks that their development generates in terms competitive stimulus within financial system streamlining its operating mechanisms, broadening accessibility services for customers improving satisfaction needs, correct efficient allocation resources to benefit economic growth, as well transparent management information linked services, especially when directed at retail investors.First all, work qualifies type...

FinTech is a new part of the financial industry that radically innovating way services are built and offered. In this paper, we analyse characteristics, their activities related risks, highlighting analogies differences in performed by intermediaries markets subject to specific regulation. general, study underlines opportunity pursue an effective balance between urge stimulate innovation competition bring benefits customers, on one hand, need ensure market stability both at micro...