1,721,009 research outputs found
Mind the ESG valuation gap - A chatGPT routine to assess ESG value integration in annual reports
No full textThis white paper exposes the gap between sustainability talk and true value creation. Discover why most disclosures overwhelm rather than inform, and how to fix it. Prof Verousis introduces a ChatGPT-powered tool that scans annual reports for real ESG integration. It tests claims against six value-linked pillars: strategy, risk, opportunity, valuation, governance, and disclosure. The result? A clear, comparable ESG integration score that cuts through greenwash. Use it to benchmark peers, track progress, and pinpoint where value is at risk. It works for investors, analysts, executives, and even companies checking their own narrative. Case studies show the wide gap between leaders and laggards. The tool links ESG to cash flow, capital costs, and growth potential. It’s free, scalable, and ready to deploy. Transform ESG from a checkbox to a valuation driver
On the underestimation of risk in hedge fund performance persistence: geolocation and investment strategy effects
Get PDFDespite the exponential increase in the literature related to the performance of Alternative Investment Funds (AIFs), risk management with respect to the measurement of performance persistence remains largely unexplored. In this paper, we investigate the impact of geolocation and investment strategy effects on the estimation of risk in performance persistence measurement dynamics. This aspect of risk in performance persistence is crucial as it allows us to show the combined effects of geolocation and investment strategy choice on risk-adjusted performance persistence. We report strong performance persistence when analysing the individual domicile or strategy. However, as we move to consider a combination of both domicile and the investment strategy, we can observe diminished persistence as well as its loss and reversal. The results of our cross-comparison show that the sole reliance on the individual domicile/investment strategy focused clusters can be grossly misleading and lead to capital losses
Bid-ask Spreads, Commissions, and Other Costs
Get PDFThis chapter examines trading costs associated with buying and selling securities in organized exchanges such as the New York Stock Exchange. Costs are categorized as commission charges determined by the exchange and cost components of the bid‐ask spread determined by market participants. The bid‐ask spread consists of three main components: (1) order processing costs associated with the cost of providing liquidity, (2) inventory costs due to short‐term order imbalances, and (3) adverse selection costs related to the cost of trading with informed traders. Spreads and commission charges are currently at very low levels in developed markets and have led to a great expansion in algorithm trading and trading volume. Trading costs for emerging markets are considerably higher than for the more developed markets. Market capitalization and liquidity differences explain some of the variability in trading costs in exchanges around the world. Besides firm‐specific differences, a second element of variability is attributed to differences in market structures
On the underestimation of risk in hedge fund performance persistence: geolocation and investment strategy effects.
Get PDFDespite the exponential increase in the literature related to the performance of Alternative Investment Funds (AIFs), risk management with respect to the measurement of performance persistence remains largely unexplored. In this paper, we investigate the impact of geolocation and investment strategy effects on the estimation of risk in performance persistence measurement dynamics. This aspect of risk in performance persistence is crucial as it allows us to show the combined effects of geolocation and investment strategy choice on risk-adjusted performance persistence. We report strong performance persistence when analysing the individual domicile or strategy. However, as we move to consider a combination of both domicile and the investment strategy, we can observe diminished persistence as well as its loss and reversal. The results of our cross-comparison show that the sole reliance on the individual domicile/investment strategy focused clusters can be grossly misleading and lead to capital losses
Advances in Blockchain Research and Cryptocurrency Behaviour
No full textThe advent of Central Bank Digital Currencies (CBDCs) represents a transformative milestone in modern banking, capturing the attention of policymakers, financial institutions, and academics alike. This chapter provides a comprehensive overview of the expanding body of literature on CBDCs. It delves into the critical aspects that define their significance and potential challenges within the banking sector. The primary objective of this chapter is to dissect the foundational elements crucial for the success of CBDC initiatives. It also aims to uncover how CBDCs have the potential to reshape the dynamics of monetary policy transmission and influence the stability of the banking sector, necessitating a delicate balance. Moreover, as the narrative progresses, the focus shifts to the potential of CBDCs to enhance financial inclusion and their role in optimising payment systems. CBDCs are examined for their capacity to ignite financial innovation through integration with the existing infrastructure and the creation of novel financial products. Lastly, this chapter sheds light on the intricate legal and regulatory framework surrounding CBDCs. This framework encompasses both national and international coordination, cybersecurity concerns, and data privacy. Additionally, it discusses the imperative need for the transformation of commercial banking models driven by CBDCs, which, in turn, requires the adaptation of business strategies to remain competitive
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