Search Results (381)

The paper examines the key determinants of European banks’ profitability by analyzing the return on assets (ROA), return on equity (ROE), net interest margin (NIM), and the risk-adjusted measures of profitability, RAROAA and RAROAE, across 34 European countries during the period from 2013 to 2018—a time characterized by economic recovery and significant regulatory reforms, including the implementation of Basel III standards. Using the Generalized Method of Moments (GMM) approach and data of 3076 European banks, the research addresses the complex interplay between internal (bank-specific) factors and external factors, including macroeconomic and industry-specific factors. The results show that profitability is positively associated with a higher capital adequacy, liquidity risk, and income diversification, but not for risk-adjusted profitability ratios. Credit risk, management efficiency, and excessive size have a negative effect on all studied profitability measures. Macroeconomic conditions, in particular, GDP growth and inflation, also have a significant impact on profitability. The findings offer valuable insights for policymakers, regulators, and financial institutions aiming to enhance profitability while maintaining the stability of the European banking sector. Full article

This study proposes a nonlinear programming model for the optimization of water and land allocation in a 1000 ha orchard over a 20-year period to maximize farmers’ net profits. Different scenarios were evaluated, including equitable and unrestricted land allocation, and the risks associated with fruit production were considered. Additionally, a sensitivity analysis that focused on the variability of labor and water availability was conducted. The results reveal that with equitable land allocations and no constraints on the cultivated area, cherry emerges as the most profitable crop, although there are large risks associated with its price volatility. The introduction of risk and land allocation constraints highlights the importance of crop diversification in mitigating economic risks. A sensitivity analysis indicated that reductions in water and labor availability significantly affect the optimal cropping pattern of an orchard, suggesting that the efficient and adaptive management of resources is required. The proposed optimal cropping pattern maintains the economic viability of the orchard even with 70% and 24% reductions in water and labor, respectively. This approach underscores the importance of implementing resilient and sustainable agricultural strategies to ensure food security and increase economic stability in the face of changing climatic and labor conditions. Full article

The Eastern Cape Province of South Africa is largely rural, with agriculture as the main livelihood for many households. However, the province has a semi-arid climate and reliance on rain-fed agriculture, which makes the region highly vulnerable to climate-related risks, particularly droughts. Smallholder farmers, who play a crucial role in food production and local economies, face significant challenges due to limited access to resources like irrigation, modern technology, and financial support, exacerbating their vulnerability to climate variability. These droughts cause severe losses in agricultural productivity, threatening food security, increasing poverty, and driving rural migration. Despite the potential benefits of adaptation strategies, many farmers lack the tools and knowledge to effectively cope with the increasing frequency and severity of droughts. This study examines how smallholder farmers in South Africa’s Eastern Cape Province perceive, experience, and cope with drought risk and its food and nutrition security implications. Using structured questionnaires, the authors collected data from 160 smallholder farmers and employed statistical analysis techniques, including a multinomial logit model. The study found that smallholder farmers understand drought risk but continue to face high vulnerability to adverse effects such as water scarcity, crop failure, increased disease incidence, and rising temperatures. Socioeconomic and institutional factors significantly influenced the adaptation strategies chosen by smallholder farmers. This study suggests that a combination of localized and modern adaptation approaches, supported by various institutional, policy, and technological interventions, is essential to enhance the resilience of these farmers. Specifically, localized strategies such as using traditional water management systems and crop diversification were effective in addressing region-specific climate challenges. At the same time, modern approaches like climate-resilient crop varieties and early-warning systems provided broader, more scalable solutions. Institutional support measures, such as access to climate information and extension services, policy interventions promoting sustainable practices, and technological advancements in irrigation and seed technologies, were key factors in improving adaptive capacity and reducing vulnerability. There is an urgent need to provide comprehensive support and empower farmers to adapt effectively, protect their livelihoods, and contribute to broader food security and poverty reduction efforts. This study highlights the importance of understanding and addressing the perceptions and experiences of smallholder farmers facing drought risk to ensure sustainable food production, income generation, and poverty alleviation. Full article

The study aims to critically assess the safe-haven properties of Bitcoin and a diverse set of commodities in mitigating stock market risks during periods of extreme financial turbulence. Specifically, this research seeks to evaluate the effectiveness of these assets as hedging tools or diversifiers in the portfolios of both OPEC and non-OPEC countries, focusing on their behavior during the COVID-19 pandemic. We employ a wavelet coherence approach to analyze the dynamic relationships between the variables. Portfolio optimization is conducted using CVaR to assess the effectiveness of these assets as safe havens, hedges, or diversification tools in mitigating financial risks during periods of heightened market volatility. The diversification benefits of commodities and Bitcoin in OPEC and non-OPEC stock portfolios decrease over time as their co-movement with stock markets increases. During the COVID-19 period, BTC did not act as a safe haven. However, gold served as a hedge for non-OPEC countries. Using CVaR, we found that BTC provides stronger diversification benefits than commodities, followed by gold. We examine the safe-haven role of Bitcoin and various commodities, specifically within the context of both OPEC and non-OPEC countries. Our study offers a more comprehensive analysis of how BTC and commodities function as portfolio assets during financial stress, providing valuable insights for investors and policymakers. Full article

Entrepreneurship is considered one of the key factors in facilitating a company’s pursuit of sustainable development. The findings of this study can help firms improve their entrepreneurial capacity and highlight its significance for sustainable development; therefore, the levels of entrepreneurship serve as indicators of the potentials of enterprises to achieve sustainable development goals. The existing literature has explored whether there are differences in the approaches between family and non-family firms as well as in their levels of entrepreneurship. Contributing to this ongoing debate, this article aims to compare the levels of entrepreneurship between these two types of companies in a selected small and medium-sized enterprise (SME) sector. The analysis encompasses eight dimensions of entrepreneurship: risk-taking, innovativeness, proactiveness, inter-organizational cooperation, competitiveness, diversification, flexibility, and digitalization. This study was conducted on a sample of 145 small printing companies that operated in Poland in 2023. The results of the statistical analysis revealed that family firms exhibited a higher level of entrepreneurship when treated as a multidimensional construct. Moreover, family firms outperformed non-family firms across all of the analyzed dimensions, with statistically significant differences being observed in four dimensions: innovativeness, proactiveness, diversification, and competitiveness. This study confirmed the existing indications in the literature that family firms demonstrated higher levels of entrepreneurship, which may suggest their greater potential in pursuing sustainable development. The novelty of this research lies in its multidimensional approach, which offers a comprehensive analysis that integrates eight dimensions of entrepreneurship. This allowed for a deeper understanding of entrepreneurial behaviors and attitudes when highlighting the unique characteristics of family and non-family firms. The findings are particularly relevant for the owners and managers of family and non-family businesses; they provide tools for diagnosing entrepreneurship levels in a more comprehensive manner and applying tailored management practices for addressing areas that require improvement. One limitation of this study is its focus on a single sector; this may have affected the generalizability of the results. Future research could explore governance and ownership structures when analyzing entrepreneurial dimensions—particularly in the context of family firms. Full article

The study examines the time-varying correlation and return spillover mechanism among developed (U.S.) and emerging (BRIC) stock markets during major crises from 2000 to 2023, namely the global financial crisis, COVID-19, and the Russia–Ukraine war. To do so, we used dynamic conditional correlation (DCC-GARCH) and time-varying parameter vector autoregression (TVP-VAR) models. This study finds that the nature of market crises plays a significant role in the interrelationship and return spillover mechanisms among the U.S. and BRIC stock markets. The interconnectedness of the stock markets was strengthened by crises such as the GFC and the COVID-19 pandemic. On the other hand, the Russia–Ukraine war temporarily disrupted the interrelationships between the markets. The study yields valuable insight to local and international investors in portfolio diversification and risk management strategies during market turbulence. Full article

The continual evolution of SARS-CoV-2 has significantly influenced the global response to the COVID-19 pandemic, with the emergence of highly transmissible and immune-evasive variants posing persistent challenges. The Omicron variant, first identified in November 2021, rapidly replaced the Delta variant, becoming the predominant strain worldwide. In Florida, Omicron was first detected in December 2021, leading to an unprecedented surge in cases that surpassed all prior waves, despite extensive vaccination efforts. This study investigates the molecular evolution and transmission dynamics of the Omicron lineages during Florida’s Omicron waves, supported by a robust dataset of over 1000 sequenced genomes. Through phylogenetic and phylodynamic analyses, we capture the rapid diversification of the Omicron lineages, identifying significant importation events, predominantly from California, Texas, and New York, and exportation to North America, Europe, and South America. Variants such as BA.1, BA.2, BA.4, and BA.5 exhibited distinct transmission patterns, with BA.2 showing the ability to reinfect individuals previously infected with BA.1. Despite the high transmissibility and immune evasion of the Omicron sub-lineages, the plateauing of cases by late 2022 suggests increasing population immunity from prior infection and vaccination. Our findings underscore the importance of continuous genomic surveillance in identifying variant introductions, mapping transmission pathways, and guiding public health interventions to mitigate current and future pandemic risks. Full article

In recent years, strawberry cultivation in Spain has been increasingly affected by new and re-emerging fungal diseases. The most significant emerging diseases in Spain include those caused by Neopestalotiopsis spp. Maharachch., K.D.Hyde & Crous and Fusarium oxysporum f. sp. fragariae Winks & Y.N. Williams. These pathogens are difficult to control due to their pathogenic variability (presence of pathotypes and/or races), the lack of knowledge about the susceptibility of the different cultivars, the limited availability of effective fumigants, and the absence of sufficient information about their sources of inoculum. Both pathogens can cause root and crown rot, leading to plant collapse and significant losses for strawberry producers. Several factors have contributed to the rise of these diseases in Spain: (i) the gradual ban on key soil fumigants has left the crop vulnerable; (ii) there has been a notable diversification in the origin of mother plants used in cultivation, with plants now sourced from various countries, increasing the risk of long-distance pathogen spread; (iii) the introduction of numerous new strawberry varieties, which exposes more genotypes to pathogenic infections; and (iv) changes in planting times, leading to younger and more vulnerable plants being exposed to heat stress, as well as an increase in disease susceptibility. Neopestalotiopsis spp. and Fusarium oxysporum f. sp. fragariae have also become major threats to strawberry crops worldwide, spreading through nursery plants and the movement of plant material. The latest research findings in Spain on both pathogens are highlighted in this manuscript. Full article

This study analyses the impact of two major macroeconomic shocks—the COVID-19 pandemic and the Ukraine war—on the financial stability of LPP SA, a leading apparel company in Poland and Central and Eastern Europe. This research uses the coefficient of variation to assess changes in financial volatility and evaluates the effectiveness of LPP SA’s risk management strategies. The findings reveal that, while the COVID-19 pandemic had a more destabilising effect on the company’s performance, the Ukraine war’s impact was mitigated by strategic diversification and resource reallocation. The study’s implications are relevant for risk management practices in the apparel industry and other consumer-driven sectors. Full article

This study clarifies the impact of global supply chain risks on global logistics companies, with a focus on the potential implications for sustainable supply chain management. The study employs the vector auto-regression model to examine the relationship between the Global Supply Chain Pressure Index (GSCPI) and the stock prices of global logistics companies, yielding the following results. First, the GSCPI does not have a statistically significant effect on most global logistics firms, except for shipping companies, which tend to be negatively impacted by supply chain disruptions. The t-statistics of the GSCPI on air cargo, integrated logistics, and pipeline companies were below the threshold of 1.291, corresponding to a 90% confidence level, which indicates that these results were not statistically significant. Therefore, logistics companies should prioritize the development of resilient and sustainable supply chain strategies incorporating alternative energy sources, such as liquefied hydrogen, ammonia, green methanol, and liquefied natural gas, to enhance their ability to respond to unexpected situations. Second, contrary to other logistics sectors, shipping enterprises have been positively impacted by the GSCPI, suggesting that they may find new opportunities during periods of global instability. By adopting eco-friendly fuel alternatives and green technologies, shipping companies can capitalize on these opportunities and contribute to the global transition toward sustainable logistics practices. These findings suggest that global logistics companies, including pipeline, air cargo, and integrated logistics companies, should develop resilient global supply chain management strategies that incorporate supply chain platforms, nearshoring, and import diversification. This study offers important implications for entrepreneurs and policymakers, emphasizing the role of sustainable energy solutions in stabilizing global supply chains. Full article

Extensive and profound landscape alterations significantly contribute to ecological vulnerability in environmentally delicate regions. Existing research primarily emphasizes ecological risks caused by landscape alterations, while overlooking vulnerable characteristics of landscape functions; particularly lacking are studies on the driving mechanism of landscape ecological risk through the reciprocal relationship between landscape pattern risk and function risk. Based on these issues, this paper constructed a landscape pattern risk index (LPRI), a landscape function risk index (LFRI), and a landscape ecological risk index (LERI) in the counties of the dry–hot valley of the Jinsha River in southwest China. By employing a coupling degree and a coordination model, we analyzed temporal and spatial variations in the interaction between two types of ecological risk, thereby revealing the driving mechanisms of landscape ecological risk. The results indicated that the average LPRI values of the study area were 0.373, 0.327, and 0.427, respectively, while the average LFRI values were 0.451, 0.356, and 0.442 in 2000, 2010, and 2020, respectively. More than 90% of the study area exhibited a medium coupling relationship between the two types of ecological risks. The area proportion of the coupling coordination regions has increased from 25.58% to 31.07% from 2010 to 2020. The two types of risk exhibited a low level of constraint inhibition. Extremely evident expansion of high pattern–function risk areas and the area increase of coupling coordination region resulted in the acceleration of regional landscape ecological risk level. Increasing competition between market-driven land-use activities and ecological regulations from the government has rendered the diversification of landscape ecological risk sources and its underlying mechanisms intricate. This study serves as a model reference for assessing landscape ecological risk and a theoretical basis for sustainable landscape management and ecological regulation in the Yangtze River basin. Full article

As China’s financial markets become increasingly integrated and the carbon market undergoes financialization, the impact of carbon emission price fluctuations on financial markets has emerged as a key area of systemic risk research. This study employs the Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) model and the optimal Copula function to investigate the dynamic correlation between carbon prices and China’s financial markets. Building on this, the Monte Carlo simulation and Copula CoVaR models are used to explore the spillover effects of carbon price volatility on China’s financial markets. The findings reveal the following: (1) Carbon price fluctuations generate spillover effects on all financial markets, but the intensity varies across different markets. The foreign exchange market experiences the strongest spillover effect, followed by the bond market, while the stock and money markets are relatively less affected. (2) The optimal Copula functions differ between the carbon market and China’s financial markets, indicating heterogeneous characteristics across regional markets. (3) There is a degree of interdependence between the carbon market and various sub-markets in China’s financial system. The carbon market has the strongest positive correlation with the commodity market and a relatively high negative correlation with the real estate market. These findings underscore the importance of integrating carbon price volatility into financial risk management frameworks. For policymakers, it highlights the need to consider market stability measures when crafting carbon emission regulations. Market managers can leverage these insights to develop strategies that mitigate risk spillover effects, while investors can use this analysis to inform their portfolio diversification and risk assessment processes. Full article

Background and aim: Cereals’ iron content is a major contributor to dietary iron intake in Europe and a potential for biofortification. A simulation of daily iron intake from wheat and rice over the next 20 years will be quantified. Methods: Food items, and energy and iron intake by age classes are estimated using the Italian dietary survey (IV SCAI). Iron intake and adequacy estimation trends were categorized in four scenarios compared to a baseline (basic scenario; only climate change effects): over wheat and rice biofortification effects (scenario 1); over the shift in whole wheat consumption of up to 50% of the total amount of wheat-based foods (scenario 2); over the shift in brown rice consumption up to 100% of the total amount of rice (scenario 3); over the cumulative effects of biofortifications and whole wheat and brown rice consumption (scenario 4). Results: Increasing the iron intake from wheat and rice biofortification and the shift in whole wheat consumption is similar and sufficient to recover the baseline iron depletion effect due to climate change. The shift in brown rice consumption produces a negligible increment in iron intake. The cumulative effects of the corrective actions considered in the scenarios can significantly reduce the iron intake inadequacy, despite not reaching the recommended levels. Conclusions: Corrective actions including biofortification and whole grain consumption are still far from ensuring the full recovery in children and females of fertile age as at-risk groups of iron deficiency. Further actions are needed considering other biofortified food sources, fortified foods, and/or dietary food diversification. Full article

In this study, we examine the critical question of whether global equity and bond assets (both green and non-green) offer effective hedging and safe haven properties against stock market risks in South Asia, with a focus on Bangladesh, India, Pakistan, and Sri Lanka. The increasing integration of global financial markets and the volatility experienced during recent economic crises raise important questions regarding the resilience of South Asian markets and the potential protective role of global assets. Drawing on methods like VaR and CVaR tail risk estimators, the DCC-GJR-GARCH time-varying connectedness approach, and cost-effectiveness tools for hedging, we analyze data spanning from 2014 to 2022 to assess these relationships comprehensively. Our findings demonstrate that stock markets in Bangladesh experience lower levels of downside risk in each quantile; however, safe haven properties from the global financial markets are effective for Bangladeshi, Indian, and Pakistani stock markets during the crisis period. Meanwhile, the Sri Lankan stock market neither receives hedging usefulness nor safe haven benefits from the same marketplaces. Additionally, global green assets, specifically green bond assets, are more reliable sources to ensure the safest investment for South Asian investors. Finally, the portfolio implications suggest that while traditional global equity assets offer ideal portfolio weights for South Asian investors, global equity and bond assets (both green and non-green) are the cheapest hedgers for equity investors, particularly in the Bangladeshi, Pakistani, and Sri Lankan stock markets. Moreover, these results hold significant implications for investors seeking to optimize portfolios and manage risk, as well as for policymakers aiming to strengthen regional market resilience. By clarifying the protective capacities of global assets, particularly green ones, our study contributes to a nuanced understanding of portfolio diversification and financial stability strategies within emerging markets in South Asia. Full article

Our investigation, bolstered by the robust gravity trade model and panel data econometric technique, underscores the pivotal factors that influence trade interactions between Saudi Arabia and the BRICS nations—Brazil, Russia, India, China, and South Africa. The study, spanning from 1998 to 2023, delves into key economic metrics such as the gross domestic product, exchange rate fluctuations, inflationary trends, political conditions, and trade deals. We employ a range of econometric strategies, including pooled Ordinary Least Squares (OLS) and fixed effects models, to reveal that the GDP of BRICS states consistently and significantly impacts trade volumes. Specifically, a 1% increase in the GDP of partner countries correlates with a 0.37% rise in trade volume within the pooled OLS model. This effect amplifies to 1.43% when adjusting for temporal and country-specific factors in the fixed effects, underscoring the importance of accommodating unobserved heterogeneity, which refers to the unmeasured factors that can influence the relationship between GDP and trade volume. The political stability of BRICS nations mitigates transactional risks and promotes more stable trade relationships, thereby enhancing trade flows. Fluctuations in exchange rates exert positive and significant effects. This indicates that a more robust Saudi Riyal, an essential policy instrument, can enhance trade by increasing the competitiveness of Saudi exports. This study demonstrates that economic magnitude, political stability, and exchange rates affect Saudi Arabia’s trade with BRICS nations. These results bolster the Kingdom’s Vision 2030 objectives for economic diversification. This research advocates for stable political climates and strategic trade agreements to enhance trade relations. This study asserts that this approach will guarantee sustainable growth and diminish the Kingdom’s reliance on oil exports, instilling optimism in the Saudi economy. Full article