Featured Articles

Climate risk and bank stability: International evidence

An article by Anh-Tuan Le and Thao Phuong Tran (UEH-ISB) and   Anil V. Mishra (WSU-SoB) was published in the Journal of Multinational Financial Management, a Q1 publication in Finance in 2023.

The paper studies the association between climate risk and bank stability. Using an international sample of 6433 commercial banks in 109 countries between 2005 and 2019, we illustrate that increased climate risk leads to decreased bank stability. These findings are robust to alternative bank stability measures and after controlling for endogeneity by an instrumental variable and system GMM approach.

Further analysis shows that the negative impact of climate risk on bank stability is more pronounced in small banks and banks that have low capital. In addition, we also find better institutional governance, bank supervision, and regulations can eliminate the adverse impact of climate risk.

Our results are neither determined by the effect of the financial crisis nor by the heterogeneity of different regions. Overall, our findings add a novel determinant of bank stability globally.

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Evaluating the impact of marketing interventions on sugar-free and sugar-sweetened soft drink sales and sugar purchases in a fast-food restaurant setting

An article by Aila Khan (Marketing), Anna Evangelista (Economics) and Maria Estela Varua (Economics) was published in the BMC Public Health Journal, a scholarly high-impact Q1 publication in August 2023.

The paper examines the effects of a manufacturer-initiated multicomponent intervention on the sales of sugar-free (SFD) and sugar-sweetened (SSD) soft drinks and the amount of sugar people purchase in a fast-food restaurant setting. Based on the natural experiment conducted in Western Sydney by Coca-Cola Australia, the interrupted time-series analysis shows that the interventions significantly increased SFD sales and reduced sugar purchases in the short run. Aside from free coupons, the findings support the recommendation for fast food restaurants to nudge customers towards choosing SFDs through point-of-purchase displays and the replacement of popular SSDs with their SFD counterparts. Aside from analysing the effects of marketing interventions on curbing sugar purchases, the study also highlights the role of industry in addressing a public health issue.

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