Risk modelling of ESG (environmental, social, and governance), healthcare, and financial sectors

Abstract

Climate change poses enormous ecological, socio‐economic, health, and financial challenges. A novel extreme value theory is employed in this study to model the risk to environmental, social, and governance (ESG), healthcare, and financial sectors and assess their downside risk, extreme systemic risk, and extreme spillover risk. We use a rich set of global daily data of exchange‐traded funds (ETFs) from 1 July 1999 to 30 June 2022 in the case of healthcare and financial sectors and from 1 July 2007 to 30 June 2022 in the case of ESG sector. We find that the financial sector is the riskiest when we consider the tail index, tail quantile, and tail expected shortfall. However, the ESG sector exhibits the highest tail risk in the extreme environment when we consider a shock in the form of an ETF drop of 25% or 50%. The ESG sector poses the highest extreme systemic risk when a shock comes from China. Finally, we find that ESG and healthcare sectors have lower extreme spillover risk (contagion risk) compared to the financial sector. Our study seeks to provide valuable insights for developing sustainable economic, business, and financial strategies. To achieve this, we conduct a comprehensive risk assessment of the ESG, healthcare, and financial sectors, employing an innovative approach to risk modelling in response to ecological challenges.

Does ESG Performance Affect the Enterprise Value of China’s Heavily Polluting Listed Companies?

“…Based on this logical reasoning, a mechanism framework of ESG rating influencing the value of enterprises is established in this paper, which includes three components: green technology innovation [45][46][47], internal control, and financing cost, as shown in Figure 1.…”

Socioeconomic and Cultural Factors and Juvenile Delinquency in Pakistan: A Critical Analysis of Structural Theories

“…Additionally, the family structure effect study conducted by Chaudhry et al (2023) has shown that the underprivileged communities are the most affected ones when it comes to juvenile delinquency, and not so much other families. The sense of direction and parental authority, and even more, the financial hardship, sometimes increase the proportion of delinquent behaviors that are involved by adolescents.…”

“…Research has proven that poorer youth, especially those experiencing poverty, are more likely to be in crime due to frustration and isolation (Malik et al, 2020). A country's cultural norms and values also play an essential role in classifying juvenile delinquency in Pakistan (Chaudhry, Chen, Ahmed, & Nasir, 2023;Malik et al, 2020). Family interaction, community assistance systems, and religion are other factors that further influence youth behaviors (Saeed, Khan, Gul, & Sadiq, 2017;Shahzad et al, 2017).…”