Do ESG Risk Scores Influence Financial Distress? Evidence from a Dynamic NDEA Approach

Financial distress is a research topic in finance that has attracted attention from academia following past financial crises. Although previous studies associate financial distress with several elements, the relationship between distress and ESG has not been broadly explored. This paper investigates these issues by elaborating a Dynamic Network DEA model to address the underlying connections between accounting and financial indicators. Thus, a model that includes profit and loss, balance sheet, and capital and operating expenditures indicators is demonstrated under the dynamic network structure to compute financial-distress efficiency scores. Then, the impact of carryovers is considered for the accurate calculation of efficiency scores for the three substructures. The influence of contextual variables, such as socioeconomic and macroeconomic variables, and whether the firm owns an ESG Risk Score or not, is assessed through a stochastic non-linear model that combines three distinct regression types: Simplex, Tobit, and Beta. The results indicate that firms that hold an ESG Risk Score are less prone to be in financial distress, and Governance Score is negatively associated with financial distress efficiency.

The impact of social welfare and COVID-19 stringency on the perceived utility of food apps: A hybrid MCDM approach.

The COVID-19 pandemic has created enormous challenges for society due to the various ways of impacting health. This paper focuses on the impact of the COVID-19 pandemic on people's food consumption patterns in the online environment. We investigate food app reviews and examine whether countries with a high rate of success with COVID-19 control consume more unhealthy food through mobile apps. We also investigate whether the population of countries with low social welfare eat more unhealthy food during the COVID-19 pandemic compared to countries with high social welfare. We take a hybrid multi-criteria decision making (MCDM) approach to calculate indexes based on the technique for order of preference by similarity to an ideal solution, complex proportional assessment, and VlseKriterijuska Optimizacija I Komoromisno Resenje. Results show that country social welfare and success in COVID-19 control negatively affect the perceived utility of the apps. Also, success in COVID-19 control and the perceived utility of food apps positively affect the proportion of unhealthy reviews, whereas social welfare has a negative impact. The results have important implications for public health policymakers, showing that the online food environment can be an important setting for interventions that seek to incentivize healthy eating.