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This study explores the relationship between R&D intensity, as a measure of innovation, and financial performance among S&P 500 companies over 100 quarters from 1998 to 2023, including multiple crisis periods. It challenges the conventional…

General Economics · Economics 2024-03-20 Panteleimon Kruglov , Charles Shaw

The spread of COVID-19 and ensuing containment measures have accentuated the profound interdependence among nations or regions. This has been particularly evident in tourism, one of the sectors most affected by uncoordinated mobility…

Physics and Society · Physics 2022-03-02 Manuel Chica , Juan M. Hernandez , Francisco C. Santos

Grave human toll notwithstanding, the COVID-19 pandemic created uniquely unstable conditions in financial markets. In this work we uncover and discuss relationships involving sentiment in financial publications during the 2020…

Computation and Language · Computer Science 2021-09-10 Philip Hossu , Natalie Parde

The financial industry should be involved in mitigating the risk of downturns in the financial wellbeing indices around the world by implementing well-developed financial tools such as insurance instruments on the underlying wellbeing…

Portfolio Management · Quantitative Finance 2023-03-13 Thilini V. Mahanama , Abootaleb Shirvani , Svetlozar Rachev

[Context] The COVID-19 pandemic has had a disruptive impact on how people work and collaborate across all global economic sectors, including the software business. While remote working is not new for software engineers, forced…

Microgrids present an effective solution for the coordinated deployment of various distributed energy resources and furthermore provide myriad additional benefits such as resilience, decreased carbon footprint, and reliability to energy…

Systems and Control · Electrical Eng. & Systems 2022-03-24 Sakshi Mishra , Ted Kwasnik , Kate Anderson

Efficient risk transfer is an important condition for ensuring the sustainability of a market according to the established economics literature. In an inefficient market, significant financial imbalances may develop and potentially…

General Economics · Economics 2023-08-17 Henry Skeoch , Christos Ioannidis

Modern macroeconomic theories were unable to foresee the last Great Recession and could neither predict its prolonged duration nor the recovery rate. They are based on supply-demand equilibria that do not exist during recessionary shocks.…

General Economics · Economics 2019-06-19 Peter Klimek , Sebastian Poledna , Stefan Thurner

Systemic risk is the risk that a company- or industry-level risk could trigger a huge collapse of another or even the whole institution. Various systemic risk measures have been proposed in the literature to quantify the domino and…

Risk Management · Quantitative Finance 2024-05-14 Tong Pu , Yifei Zhang , Yiying Zhang

Corporate insolvency can have a devastating effect on the economy. With an increasing number of companies making expansion overseas to capitalize on foreign resources, a multinational corporate bankruptcy can disrupt the world's financial…

Statistical Finance · Quantitative Finance 2018-02-16 Jacky C. K. Chow

Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate…

Risk Management · Quantitative Finance 2021-12-08 V. Macchiati , G. Brandi , G. Cimini , G. Caldarelli , D. Paolotti , T. Di Matteo

This paper investigates the impact of COVID-19 on financial markets. It focuses on the evolution of the market efficiency, using two efficiency indicators: the Hurst exponent and the memory parameter of a fractional L\'evy-stable motion.…

Statistical Finance · Quantitative Finance 2021-11-29 Ayoub Ammy-Driss , Matthieu Garcin

Corporate responses to illness is currently an ad-hoc, subjective process that has little basis in data on how disease actually spreads at the workplace. Additionally, many studies have shown that productivity is not an individual factor…

Computers and Society · Computer Science 2010-11-09 Benjamin Waber , Ellen Pollock , Manuel Cebrian , Riley Crane , Leon Danon , Alex Pentland

This paper proposes an addition to the firm-based perspective on intra-industry profitability differentials by modelling a business organisation as a complex adaptive system. The presented agent-based model introduces an endogenous…

Theoretical Economics · Economics 2023-11-13 Frederik Banning , Jessica Reale , Michael Roos

Cyber insurance is a complementary mechanism to further reduce the financial impact on the systems after their effort in defending against cyber attacks and implementing resilience mechanism to maintain the system-level operator even though…

Cryptography and Security · Computer Science 2023-12-06 Shutian Liu , Quanyan Zhu

The question of how to stabilize financial systems has attracted considerable attention since the global financial crisis of 2007-2009. Recently, Beale et al. ("Individual versus systemic risk and the regulator's dilemma", Proc Natl Acad…

Risk Management · Quantitative Finance 2014-01-30 Teruyoshi Kobayashi

Financial markets typically exhibit dynamically complex properties as they undergo continuous interactions with economic and environmental factors. The Efficient Market Hypothesis indicates a rich difference in the structural complexity of…

Signal Processing · Electrical Eng. & Systems 2022-12-06 Hongjian Xiao , Yao Lei Xu , Danilo P. Mandic

How do matching of spouses and the nature of work jointly shape the distribution of COVID-19 health risks? To address this question, I study the association between the incidence of COVID-19 and the degree of spousal sorting into…

General Economics · Economics 2021-09-06 Egor Malkov

This paper proposes a new measure of tail risk spillover. The empirical application provides evidence of significant volatility and tail risk spillovers from the financial sector to many real economy sectors in the U.S. economy in the…

Risk Management · Quantitative Finance 2022-02-07 Wan-Chien Chiua , Juan Ignacio Peña , Chih-Wei Wang

The concept of resilience embodies the quest towards the ability to sustain shocks, to suffer from these shocks as little as possible, for the shortest time possible, and to recover with the full functionalities that existed before the…

Physics and Society · Physics 2014-08-26 Tatyana Kovalenko , Didier Sornette