Environmental regulation and corporate financialization: insight from Blue Sky Protection Campaign in China.

Environmental regulation restricts corporate pollution emissions and affects corporate investment decisions and asset allocation. Based on the data of A-share listed enterprises in China from 2013 to 2021 and the difference in differences (DID) model, this paper identifies the impact of environmental regulation on corporate financialization with the help of the "Blue Sky Protection Campaign (2018-2020)" (BSPC) of China. The results indicate that environmental regulation has a crowding-out effect on corporate financialization. Enterprises with stricter financing constraints receive more significant crowding-out effects. This paper provides a new perspective on the "Porter hypothesis." Under the constraint of financial resources and high environmental protection costs, enterprises carry out innovative activities and environmental protection investments by consuming financial assets to reduce the risk of environmental violations. The government's environmental regulation is an effective way to guide the financial development of enterprises, control environmental pollution, and promote enterprise innovation.

John Rex: the case for investment in antimicrobials.

John Rex talks to Gary Humphreys about the challenges faced in developing and bringing to market new antibiotics.

The use of innovative approaches to strengthen health system resilience during the COVID-19 pandemic: case studies from selected Commonwealth countries.

This article is part of the Research Topic 'Health Systems Recovery in the Context of COVID-19 and Protracted Conflict'. The COVID-19 pandemic has exposed the vulnerabilities and limitations of many health systems and underscored the need for strengthening health system resilience to make and sustain progress toward Universal Health Coverage (UHC), global health security and healthier populations in tandem. In response to the COVID-19 pandemic, Commonwealth countries have been practicing a combination of innovative integrated approaches and actions to build health systems resilience. This includes utilizing digital tools, improvements in all-hazard emergency risk management, developing multisectoral partnerships, strengthening surveillance and community engagement. These interventions have been instrumental in strengthening national COVID-19 responses and can contribute to the evidence-base for increasing country investment into health systems resilience, particularly as we look toward COVID-19 recovery. This paper gives perspectives of five Commonwealth countries and their overall responses to the pandemic, highlighting practical firsthand experiences in the field. The countries included in this paper are Guyana, Malawi, Rwanda, Sri Lanka, and Tanzania. Given the diversity within the Commonwealth both in terms of geographical location and state of development, this publication can serve as a useful reference for countries as they prepare their health systems to better absorb the shocks that may emerge in future emergencies.

For whom does it pay to be a moral capitalist? Sustainability of corporate financial performance of ESG investment.

This paper analyzes the risk-return characteristics of socially responsible investing by employing a time-varying capital gain and Sharpe ratio analysis for various investment horizons. We employ the MSCI ESG (environmental, social and governance) leaders indices in ten markets encompassing Australia, Canada, Europe, Japan, UK, USA, China, India, Russia, and South Africa. Our sample ranges from 2007-2020. We document that ESG investments have very desirable return and hedging attributes for investors in these markets, and especially so in the USA and emerging markets.

The NIH-led research response to COVID-19.

Investment, collaboration, and coordination have been key.

Green bonds' liquidity in COVID-19 and low carbon investments in China: A stochastic trend analysis.

Central banks and regulators increasingly consider climate-related financial risks (CRFR) relevant to their responsibilities for maintaining financial stability and using daily data from 2016 to 2021 for China. Specifically, we used the S&P Green Bond Price Index, the Solactive Global Solar Price Index, the Solactive Global Wind Price Index, and the S&P Global Clean Energy and Carbon Price Index as our data set. We use the TVP-VAR method to probe return spillovers and interconnectedness. We test several portfolio strategies, including the minimum variance portfolio, the minimum correlation portfolio, and the more recent minimum connectedness portfolio. However, the evolving policy structure for dealing with CRFR has generally focused on market-based solutions that attempt to address perceived data gaps that preclude the appropriate pricing of CRFR, even though CRFR is thought to have certain distinctive features. Disclosure and openness fall within this category. We propose limiting the approach's influence since CRFR is characterized by extreme attainability. A 'precautionary' financial policy option is presented as an alternative, providing a conceptual foundation for justifying more aggressive financial policy intervention in the present to better cope with these long-term dangers.

FDI and Wellbeing: A Key Node Analysis for Psychological Health in Response to COVID-19 Using Artificial Intelligence.

Developing countries are primary destinations for FDI from emerging economies following the World Investment Report 2022, including destinations in OECD countries. Based on three theoretical lenses and case analyses, we argue that Chinese outward FDI has impacts on wellbeing in destination countries, and that this is an important issue for psychological health in response to COVID-19. Based on the super-efficiency DEA approach, our study investigated the impact of Chinese outward FDI on wellbeing in OECD countries. We also applied a Tabu search to identify country groups based on the relationship between Chinese outward FDI and wellbeing and we developed a key node analysis of the country groups using an immune algorithm. This research has implications for public administrators in global governance and could help shape FDI policies to improve psychological health of the destination countries in response to COVID-19.

US public investment in development of mRNA covid-19 vaccines: retrospective cohort study.

OBJECTIVE: To estimate US public investment in the development of mRNA covid-19 vaccines. DESIGN: Retrospective cohort study. SETTING: Publicly funded science from January 1985 to March 2022. DATA SOURCES: National Institutes of Health (NIH) Report Portfolio Online Reporting Tool Expenditures and Results (RePORTER) and other public databases. Government funded grants were scored as directly, indirectly, or not likely related to four key innovations underlying mRNA covid-19 vaccines-lipid nanoparticle, mRNA synthesis or modification, prefusion spike protein structure, and mRNA vaccine biotechnology-on the basis of principal investigator, project title, and abstract. MAIN OUTCOME MEASURE: Direct public investment in research and vaccine development, stratified by the rationale, government funding agency, and pre-pandemic (1985-2019) versus pandemic (1 January 2020 to 31 March 2022). RESULTS: 34 NIH funded research grants that were directly related to mRNA covid-19 vaccines were identified. These grants combined with other identified US government grants and contracts totaled $31.9bn (£26.3bn; €29.7bn), of which $337m was invested pre-pandemic. Pre-pandemic, the NIH invested $116m (35%) in basic and translational science related to mRNA vaccine technology, and the Biomedical Advanced Research and Development Authority (BARDA) ($148m; 44%) and the Department of Defense ($72m; 21%) invested in vaccine development. After the pandemic started, $29.2bn (92%) of US public funds purchased vaccines, $2.2bn (7%) supported clinical trials, and $108m (<1%) supported manufacturing plus basic and translational science. CONCLUSIONS: The US government invested at least $31.9bn to develop, produce, and purchase mRNA covid-19 vaccines, including sizeable investments in the three decades before the pandemic through March 2022. These public investments translated into millions of lives saved and were crucial in developing the mRNA vaccine technology that also has the potential to tackle future pandemics and to treat diseases beyond covid-19. To maximize overall health impact, policy makers should ensure equitable global access to publicly funded health technologies.

Risk-return profile of environmentally friendly assets: Evidence from the NASDAQ OMX green economy index family.

The COVID-19 pandemic, geopolitical risks and net-zero targets have created not only pressures but incentives for energy investors. The renewable energy has become the largest energy sector and provided significant investment opportunities. However, companies operating in this sector are highly risky due to economic and political barriers. Therefore, it is of crucial importance for investors to properly assess the risk-return dynamics of these investments. This paper examines the risk-return characteristics of clean energy equities at a disaggregate level using a battery of performance metrics. The main results provide evidence of significant heterogeneity across clean energy sub-sectors; for instance, fuel cell and solar stocks display higher downside risks than the others, while the developer/operator equities are the least risky. The findings further provide evidence of higher risk-adjusted returns during the coronavirus pandemic; as an example, energy management companies appear to provide the highest risk-adjusted returns in the wake of the COVID-19. Comparing the performance with traditional sectors, clean energy stocks outperform certain sectors, including dirty assets. These findings offer important implications for investors, portfolio managers, and policy makers.

Can Capitalism Drive Health Equity? Considering The Benefits And Risks Of Social Drivers Of Health Bonds.

Capitalism and health are not synonymous. Numerous health care advances and innovations have stemmed from the financial incentives that a capitalistic society fosters, but individuals and communities achieving optimal health is not always tied to a financial gain. The impact of capitalism-derived financial tools such as social bonds to address social drivers of health (SDH) therefore needs to be carefully scrutinized, not only for the potential benefits but also for the potential unintended consequences. Ensuring that as much of the social investment as possible is directed by communities experiencing gaps in health and opportunity will be crucial. Ultimately, failure to find ways to share both the health and financial benefits of SDH bonds or other market-derived interventions risks perpetuating underlying wealth inequities between communities and deepening the structural issues that cause SDH disparities in the first place.

A case for investment in clinical metagenomics in low-income and middle-income countries.

Clinical metagenomics is the diagnostic approach with the broadest capacity to detect both known and novel pathogens. Clinical metagenomics is costly to run and requires infrastructure, but the use of next-generation sequencing for SARS-CoV-2 molecular epidemiology in low-income and middle-income countries (LMICs) offers an opportunity to direct this infrastructure to the establishment of clinical metagenomics programmes. Local implementation of clinical metagenomics is important to create relevant systems and evaluate cost-effective methodologies for its use, as well as to ensure that reference databases and result interpretation tools are appropriate to local epidemiology. Rational implementation, based on the needs of LMICs and the available resources, could ultimately improve individual patient care in instances in which available diagnostics are inadequate and supplement emerging infectious disease surveillance systems to ensure the next pandemic pathogen is quickly identified.

Environmental, social, and governance (ESG) model; impacts and sustainable investment - Global trends and Poland's perspective.

In recent years, financial markets have been hit hard by the Great Financial Crisis of 2008, the acceleration of climate change, and now the COVID-19 pandemic. The result of these events is the acceleration of the implementation of a new model of socioeconomic development of societies referred to as the environmental, social, and governance (ESG) model. It has been particularly evident in the financial investment sector. Analyses of the relative performance of ESG funds is inconclusive due to the lack of a clear definition of responsible investments, and insufficient quality of the available data and ESG ratings. However, most of the studies find a positive correlation between ESG factors and company's financial performance. The analyses showed that these positive results are more pronounced over the longer term and impact the stock prices of those companies. ESG funds offer better downside protection during crises in relation to traditional funds. Despite the lack of legal barriers, the Polish economy has experienced very long delays in implementing the ESG model and the gap is even more pronounced in the financial industry. This is surprising as Poland is a very interesting market for sustainable investment given its current underdevelopment and overall potential related to green transformation. In Poland, only 17 investment funds deeply integrate ESG criteria. Educational and communication barriers have been identified as the main obstacles to the development of the sustainable finance market in Poland. Education of all participants in investment processes is a prerequisite for success.

How does the crisis of the COVID-19 pandemic affect the interactions between the stock, oil, gold, currency, and cryptocurrency markets?

This study examines how the COVID-19 pandemic crisis affects the interactions between the stock, oil, gold, currency, and cryptocurrency markets. The impacts of the COVID-19 pandemic crisis on the optimal asset allocation and optimal hedged strategy are also discussed. Empirical results show that the volatility spillover significantly exists in most of the ten paired markets whereas the return spillover and correlation are significant only for the few paired markets. Moreover, the impact of the COVID-19 pandemic on the return spillover is the greatest followed by the correlation whereas the volatility spillover is not affected by the COVID-19 pandemic. Furthermore, the Quantitative easing (QE) implemented after the COVID-19 pandemic crisis increases the risk-adjusted return for each asset and minimum variance portfolio (MVP) and raises the correlation between two assets. In addition, most of the pairs of assets are not suitable to hedge each other except for a few pairs of assets. Regarding these few pairs of assets, the optimal hedge asset with the fewer hedge cost is accompanied by less risk reduction and vice versa. Finally, the investors should choose the euro to construct a portfolio to achieve risk diversification and to hedge gold or WTI to get the risk reduction. The above findings can help investors and fund managers make a useful investment strategy, optimal asset allocation, and effective hedged strategy. For example, the investors can use the volatility of one market to predict the volatility of another market and they can take a long position during the post-COVID-19 period but they should withdraw capital from the market when the QE tapering is executed. JEL classification: C52; C53; G15.

Return on Investment of the COVID-19 Vaccination Campaign in New York City.

Importance: New York City, an early epicenter of the pandemic, invested heavily in its COVID-19 vaccination campaign to mitigate the burden of disease outbreaks. Understanding the return on investment (ROI) of this campaign would provide insights into vaccination programs to curb future COVID-19 outbreaks. Objective: To estimate the ROI of the New York City COVID-19 vaccination campaign by estimating the tangible direct and indirect costs from a societal perspective. Design, Setting, and Participants: This decision analytical model of disease transmission was calibrated to confirmed and probable cases of COVID-19 in New York City between December 14, 2020, and January 31, 2022. This simulation model was validated with observed patterns of reported hospitalizations and deaths during the same period. Exposures: An agent-based counterfactual scenario without vaccination was simulated using the calibrated model. Main Outcomes and Measures: Costs of health care and deaths were estimated in the actual pandemic trajectory with vaccination and in the counterfactual scenario without vaccination. The savings achieved by vaccination, which were associated with fewer outpatient visits, emergency department visits, emergency medical services, hospitalizations, and intensive care unit admissions, were also estimated. The value of a statistical life (VSL) lost due to COVID-19 death and the productivity loss from illness were accounted for in calculating the ROI. Results: During the study period, the vaccination campaign averted an estimated $27.96 (95% credible interval [CrI], $26.19-$29.84) billion in health care expenditures and 315 724 (95% CrI, 292 143-340 420) potential years of life lost, averting VSL loss of $26.27 (95% CrI, $24.39-$28.21) billion. The estimated net savings attributable to vaccination were $51.77 (95% CrI, $48.50-$55.85) billion. Every $1 invested in vaccination yielded estimated savings of $10.19 (95% CrI, $9.39-$10.87) in direct and indirect costs of health outcomes that would have been incurred without vaccination. Conclusions and Relevance: Results of this modeling study showed an association of the New York City COVID-19 vaccination campaign with reduction in severe outcomes and avoidance of substantial economic losses. This significant ROI supports continued investment in improving vaccine uptake during the ongoing pandemic.

Bitcoin and S&P500: Co-movements of high-order moments in the time-frequency domain.

Interactions between stock and cryptocurrency markets have experienced shifts and changes in their dynamics. In this paper, we study the connection between S&P500 and Bitcoin in higher-order moments, specifically up to the fourth conditional moment, utilizing the time-scale perspective of the wavelet coherence analysis. Using data from 19 August 2011 to 14 January 2022, the results show that the co-movement between Bitcoin and S&P500 is moment-dependent and varies across time and frequency. There is very weak or even non-existent connection between the two markets before 2018. Starting 2018, but mostly 2019 onwards, the interconnections emerge. The co-movements between the volatility of Bitcoin and S&P500 intensified around the COVID-19 outbreak, especially at mid-term scales. For skewness and kurtosis, the co-movement is stronger and more significant at mid- and long-term scales. A partial-wavelet coherence analysis underlines the intermediating role of economic policy uncertainty (EPU) in provoking the Bitcoin-S&P500 nexus. These results reflect the co-movement between US stock and Bitcoin markets beyond the second moment of return distribution and across time scales, suggesting the relevance and importance of considering fat tails and return asymmetry when jointly considering US equity-Bitcoin trading or investments and the policy formulation for the sake of US market stability.

Emerging stock market reactions to shocks during various crisis periods.

This study investigates granger causal linkages among six Asian emerging stock markets and the US market over the period 2002-2020, taking into account several crisis periods. The pairwise Granger causality tests for investigating the short-run causality show significant bi- and uni-directional causal relationships in those markets and evidence that they have become more internationally integrated after every crisis period. An exception is Bangladesh with almost no significant short-term causal linkages with other markets. For understanding, how the financial linkages amplify volatility spillover effects, we apply the GARCH-M model and find that volatility and return spillovers act very inversely over time. However, market interface is weak before the crisis periods and becomes very strong during the financial crisis and US-China economic policy uncertainty periods. The US market plays a dominant role during the financial crisis and COVID-19 periods. Further analysis using the VAR model shows that a large proportion of the forecast variance of the Asian emerging stock markets is affected by the S&P 500 and that market shock starts to rise notably from the 1 to 10 period. The overall findings could provide important policy implications in the six countries under study regarding hedging, trading strategies, and financial market regulation.

Does CSR performance improve corporate immunity to the COVID-19 pandemic? Evidence from China's stock market.

This paper studies the role of corporate social responsibility (CSR) performance on corporate financial performance during the COVID-19 by examining a sample of Chinese listed firms. Based on the PSM-DID methodology, we find that the pandemic-induced decline in stock returns is stronger with more CSR engagement. The results remain robust even after the dynamic effect test and placebo test. It means CSR performance does not improve Chinese corporate immunity to the pandemic. This inadequate response of CSR could be due to the "relatively few good things effect". Furthermore, our study indicates that increasing awareness of responsible investment and improving the quality of CSR disclosure could facilitate CSR engagement in China.