This paper analyzes the influence of downside risk on defaultable bond returns. By introducing a defaultable bond-trading model, we show that the decline in market risk tolerance and information accuracy leads to trading loss under downside conditions. Our empirical analysis indicates that...

We investigate the effect of commodity financialization on firm’s idiosyncratic risk. Our results reveal a positive effect of commodity financialization on firm’s idiosyncratic risk. Derivative usage and diversification strategy can negatively moderate the positive effect. Moreover, the...

Different ways of participating in global value chain (GVC) result in the disparity of international-trade-induced resource and environmental costs, hence inequality between trading economies. This study delves into the trigger and mechanism towards trade-induced energy inequality. First, we...