Wali Ullah

We examine how corporate culture affects a customer firm’s ability to secure trade credit. Using a large US firm-level dataset of 46,020 firm-year observations spanning from 2002 to 2021, we document a positive and statistically significant association between strong corporate culture and the amount of trade credit received. Our results are robust to alternative specifications and endogeneity concerns, mitigated through two-stage least squares (2SLS) regressions using instrumental variables, entropy balancing, Heckman (1979) two-step correction and Oster (2019) test for omitted variable bias. The positive linkage is higher for companies with highly competent managers and those located in regions with high social capital. Our findings have implications for fostering trust and cooperation in business relationships.

This study inspects the asymmetric tail risk dynamics, efficiency, and interconnectedness among FinTech stocks, cryptocurrencies, and traditional assets. Firstly, we employ the Multifractal-Asymmetric Detrended Cross-Correlation Analysis to examine the cross-correlation patterns and efficiency dynamics of the analyzed assets. The findings reveal asymmetries in cross-correlations and the presence of multifractality, highlighting the nonlinear relationships among these assets and find FinTech assets are the most efficient. Secondly, we utilize the time domain quantile connectedness method to investigate tail risk connectedness, offering insights into the network’s shock transmission and spillover effects. Our analysis identifies the major risk transmitters (FinTech stocks) and receivers (bond), emphasizing the interconnectedness of the assets. Additionally, the study conducts bivariate portfolio analysis, considering short and long investment horizons, to guide asset allocation and hedging strategies. Our findings have significant implications for facilitating informed investment strategies and improving the stability and resilience of financial markets.

This study investigates the relationship between CEO narcissism and corporate greenwashing practices. Given the increasing scrutiny on corporate sustainability, understanding this relationship is crucial to promote genuine environmental practices. Utilising a comprehensive dataset for non-financial S&P 1500 firms from 2007 through to 2018, we find that firms led by narcissistic CEOs are more likely to engage in greenwashing. We further find this relationship to be more pronounced when narcissistic CEOs increasingly engage in CSR initiatives, employ greater financial leverage and face more financial constraints. Our findings suggest that narcissistic traits in CEOs can undermine genuine corporate sustainability efforts, highlighting the need for stronger governance and transparency measures. Our results remain robust to alternative specifications, endogeneity tests and promotes the significance of balanced financial decision-making and enhanced board oversight.

This paper investigates how major customer firms, managed by highly capable managers, can gain bargaining power over their suppliers. Our results document a positive association between managerial ability and the supply chain power a major customer firm holds over its suppliers.

This study aims to investigate how a firm’s management team’s capacity to efficiently use its resources affects the firm’s exposure to climate change. Specifically, the authors investigate the intriguing question – does managerial ability affect a firm’s climate change exposure? The analysis shows a negative, statistically significant impact of managerial ability on climate change exposure.

We investigate the impact of regional social capital on firms’ ability to attain bargaining power over their supply chain partners. Using ordinary least squares and instrumental variables estimations, we find a positive relationship between firm-level supply chain power and US county-level social capital.

This study examines the correlation between fiat currencies of the G7 and BRICS economies and non-fungible tokens (NFTs) and decentralized finance (DeFi). Our findings indicate a heterogenous relationship between currencies and digital assets.

Since the emergence of blockchain technology, several digital assets such as cryptocurrencies, DeFi, and NFTs have gained considerable attention from investors and policymakers. However, the blockchain market has significant negative ramifications for the environment that may transmit shocks towards eco-friendly financial assets. We find a low correlation between the blockchain market and green financial assets before the outbreak of COVID-19 and a strong correlation during the COVID-19 and the Russia-Ukraine war.

This study examines tail risk contagion across returns series of (i) ten major electricity markets and (ii) five raw materials used for electricity production during financial crises. We find significant contagion across the electricity markets during crises, particularly pronounced in extreme quantiles. We identify geopolitical risk as the substantial uncertainty factor driving the contagion across these electricity markets.