Empowering Sustainability Assurance

IGI Global eBooks, Journal Year: 2025, Volume and Issue: unknown, P. 63 - 106

Published: Feb. 26, 2025

This chapter explores how institutional investors and managerial engagement influence sustainability assurance, using ESG ratings as a proxy. Based on stakeholder agency theories, it examines the effects of long-term short-term practices engagement, measured by shareholdings, moderates these impacts. Data from China's A-share market (2013-2022) with fixed-effects panel analysis was utilized, robustness checks Bloomberg confirming findings. Heterogeneity firm characteristics pollution intensity further supports hypotheses. Results highlight engagement's role in aligning corporate investor expectations, offering insights to enhance assurance.

Language: Английский

Monte Carlo Simulations for Resolving Verifiability Paradoxes in Forecast Risk Management and Corporate Treasury Applications

International Journal of Financial Studies, Journal Year: 2025, Volume and Issue: 13(2), P. 49 - 49

Published: April 1, 2025

Forecast risk management is central to the financial process. This study aims apply Monte Carlo simulation solve three classic probabilistic paradoxes and discuss their implementation in corporate management. The article presents as an advanced tool for processes. method allows a comprehensive analysis of forecasts, making it possible assess potential errors cash flow forecasts predict value treasury growth under various future scenarios. In investment decision-making process, supports evaluation effectiveness projects by calculating expected net identifying risks associated with investments, allowing more informed decisions be made project implementation. used reducing volatility, which contributes lowering cost capital increasing company. Simulation also enables accurate liquidity planning, including forecasting availability determining appropriate reserves based on probability distributions. credit interest rate risk, enabling impact economic scenarios company’s obligations. context strategic extension decision tree analysis, where subsequent are results earlier ones. Creating models simulations makes take into account random variables key indicators, such free (FCF). Compared traditional methods, offers detailed precise approach decision-making, providing companies vital information uncertainty. emphasizes that use not only enhances management, but long-term value. entire process able move predicting flows discounted at capital. We both numerical analytical methods veridical paradoxes. Veridical type paradox result counterintuitive, turns out true after careful examination. means although initial reasoning may lead wrong conclusion, correct mathematical or logical confirms correctness results. An example Monty Hall’s problem, intuitive answer suggests equal success, while shows changing increases chances winning. method. following were used: conditional probability, Bayes’ rule multiple conditions. solved truth-type discovered why Hall problem was so widely discussed 1990s. differentiated problems using different numbers doors prizes.

Language: Английский

ESG Dynamics: Assessing the Link Between Sustainability Practices and the Cost of Capital

Corporate Social Responsibility and Environmental Management, Journal Year: 2025, Volume and Issue: unknown

Published: April 28, 2025

ABSTRACT This paper investigates the relationships between environmental, social, and governance performance cost of capital in European context. Using data from 489 publicly listed companies STOXX Europe 600 index over an 8‐year period (2015–2022), comprising 3317 firm‐year observations, we analyze variations this relationship time. Our findings indicate that with strong ESG tend to enjoy lower costs debt, reflecting favorable borrowing conditions perceived by debt financiers. Conversely, observe a positive equity, suggesting higher expected returns for equity investors due long‐term risk. Furthermore, temporal analysis reveals became more pronounced 2020 2022, potentially driven heightened attention sustainability practices regulatory interventions. study contributes theoretical understanding evolving role financial markets its implications corporate finance decisions.

Language: Английский