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The empirical studies of the options market efficiency have reported contradictory results, which sometimes confuse practitioners and academicians. The aim of this study was to clarify several aspects of options market efficiency by exploring the answers to two main questions: Under what conditions is the options market more efficient? Are the discrepancies in the estimated efficiency due to the reality of efficiency or mismeasurement?

Using a meta-analysis approach, 54 studies have been analyzed, which included 1,315 tests. The sum of the observations for all of the tests is 3.7 m observation sets. The effect size (type r) has been used to compare the different statistics in different studies. The cumulative effect size and its diversification have been calculated by the random effects model and Q statistic, respectively.

The most interesting finding of the study was that the options market, in all circumstances, is significantly inefficient. Another important finding was that the heterogeneity of options market efficiency is due to the complexity of pricing relations, test time, violation index and price type. To overcome this heterogeneity and accuracy, future studies should test the no-arbitrage options pricing relations at different times and by different price types, using complex and simple pricing relations and either mean violation or violation ratio efficiency measures.

Public disagreement about the options market efficiency in past studies means that this variable is heterogeneous in different conditions. As a significant contribution, this study develops the literature by proposing the causes of options market efficiency heterogeneity.

Based on strategic choice theory, this study examines the impact and mechanisms of intellectual property demonstration city (IPDC) policy in China on corporate ESG performance.

This study uses China’s A-share listed companies’ data from 2009 to 2019 and conducts a difference-in-differences (DID) to explore the causal relationship between IPDC policy and corporate ESG performance.

Baseline regression results indicate that the IPDC policy can significantly improve corporate ESG performance. Mechanism tests reveal that the IPDC policy expands firm green technology innovation, enhances firm human capital investment and increases government innovation subsidies, thereby promoting corporate ESG performance. Moderating effect results show that the promotion impact on corporate ESG performance of the IPDC policy is diminished by government fiscal pressure. Heterogeneity analyses indicate that the IPDC policy has a stronger impact on corporate ESG performance in key cities, firms in high-tech industries, firms with a higher reliance on intellectual property protection (IPP) and state-owned enterprises (SOEs).

The findings enrich the theoretical research on the influencing factors of corporate ESG performance and provide practical references to strengthen IPP and implement a more thorough intellectual property development strategy.

This research explores support vector machine (SVM) with Gaussian radial basis function kernel (RBF) as the model and Analysis of Variance (ANOVA) for forecasting the invalidation re-examination decisions of China invention patents, it is beneficial to support patent monetization for corporate intellectual capital.

There were 8,666 China invention patents with their existing invalidation re-examination decisions during 2000∼2021 chosen to conduct classification model training and prediction for the accuracy of invalidation re-examination decisions through SVM with RBF. Statistical significance was performed by ANOVA to identify indicators for these invention patents selected in this research. These selected 8,666 China invention patents were divided into two groups based on their invalidation re-examination decisions during 2000∼2021 in Table 1, which Group 1 included 5,974 invention patents with all valid or partially valid claims, and Group 0 included 2,692 invention patents with all invalid claims. Thereafter, each group was further divided into sub-groups based on 13 major regions where the applicants filed invalidation re-examination. The training sets for Group 1, Group 0 and the sub-groups were selected based on the patent issued in January, February, April, May, July, August, October and November; while the prediction sets were selected from the invention patents issued in March, June, September and December.

The training and prediction accuracies were compared to the existing invalidation re-examination decisions. Accuracies of training sets were ranged from 100% in region 7 (Beijing) and region 9 (Shanghai) to 95.95% in region 1 (US), and the average accuracy of invalidation re-examination decisions was 98.95%. While the accuracies of prediction sets for Group 1 were ranged from 100.00% in region 7 (Beijing) to 90.78% in region 13 (Overseas-others), and the average accuracy of classification was 95.96%, this research’s outcomes confirmed the purpose of applying SVM with RBF to predict the patentability sustainability.

This research developed an empirical method through SVM with RBF to predict patentability sustainability which is crucial for corporate intellectual capital on patents. In particular, the investments on patents are huge, including the patent cultivation and maintenance, developments into products or services, patent litigations and dispute managements. Therefore, this research is beneficial not only for corporation, but also for research organisations to perform cost-effective and profitable patent strategies on intellectual capital.

This study aims to provide empirical evidence on the linkage between knowledge management (KM), intellectual capital (IC), planning effectiveness (PE) and innovation performance in Italian small and medium-sized enterprises (SMEs).

Survey data from 172 Italian SMEs was collected through an online questionnaire and analyzed using structural equation modeling (partial least square).

Results show that KM practices have a positive direct impact on each IC component which influences PE. Finally, structural capital and PE have a positive direct impact a firm’s ability to innovate.

For researchers, this paper fills an important gap in the academic literature by conceptualizing and empirically testing the link between IC and PE. The main practical implication of this study is that developing intangible resources is of particular importance for strategic decision-making in SMEs. The focus on Italian SMEs limits the generalizability of the results.

This study provides empirical evidence on how KM and IC interact and mutually drive PE. Second, results shed light on the importance of IC to enhance a firm’s ability to reach its goals. Finally, the focus on SMEs enriches the extant literature in the field confirming the vital role of KM and IC in managerial decision-making.

This study examined the impact of the Glasgow Climate Pact on the abnormal returns of global clean energy stocks. Further, this study examines which country-specific and firm-specific variables drive the cumulative abnormal returns (CARs) of clean energy stocks.

The authors used the event study method and cross-sectional multivariate regression model. The clean energy stocks in this study are limited to 81 constituent firms of the S&P Global Clean Energy Index across 17 nations. The final sample includes 80 firms and the sample period ranges from January 26, 2021, to December 07, 2021.

The study finds that the Glasgow Climate Pact negatively affects the stock returns of clean energy firms. Moreover, the climate change performance index (CCPI) positively impacts cumulative abnormal returns (CARs), signifying that clean energy investors react positively to firms in nations with good CCPI scores. The environmental, social and governance (ESG) measure for the shorter window (−1, +1) exhibited a negative relationship with CARs. The firm-specific variables (BTM, stock liquidity, size and past returns) exhibit a negative relationship with CARs in different event windows.

The authors use the CCPI as a proxy for the stringency of environmental policies in any nation. The authors extend the existing literature by employing firm-specific variables and supporting previous findings. Their findings have policy implications for clean energy investors, policymakers and other market participants.

Climate risks impact the global financial market, so the findings have implications for global regulatory bodies. Currently, there are bankruptcy cases due to climate risks. Because financial markets must play a critical role in shifting the economy toward a green one, regulators can use the cross-sectional drivers of this study to shape policy. It is also critical for regulators to reduce stock price volatility in the event of the implementation of environmental regulations and improve environmental disclosures by publicly traded companies. Furthermore, governments are interested in researching the effects of environmental regulations to protect stakeholders' interests. These regulations significantly impact emerging markets because they lack the same solid institutional frameworks as developed markets.

The authors provide evidence that firms with better ESG scores and larger firm sizes have experienced fewer abnormal returns, as these firms have stable financial and non-financial fundamentals. This timely study on the ongoing regulatory shift in environmental policy will help investors, policymakers, firms and other stakeholders make relevant decisions.

This paper aims to examine the influence of supply chain management by assessing the relationship between internal and external integration and small and medium enterprises (SMEs) owners’ Islamic practices in enhancing halal supply chain integrity (HSCI) and SMEs’ performance.

A total of 176 SMEs were surveyed using a self-administered questionnaire. The sample was selected using convenience sampling from two major halal exhibition events in Malaysia. Structural equation modeling (SEM) was used to analyze the data and test the hypotheses.

The findings showed that supply chain integration (SCI), Islamic human capital and HSCI have a significant relationship with SMEs’ performance. It was also found that HSCI mediated the relationship between both SCI and Islamic human capital and SMEs’ performance.

SME owners or managers should be committed to developing the internal processes within the organization and strategizing to link these processes with the external processes to obtain the full benefits of integration. Furthermore, as the upper management, owners and managers must understand the supply chain challenges, priorities and practices thoroughly, as they are responsible for Islamic business ethics. They should work to provide support to increase religious orientation in the SMEs, as this would likely enhance all other factors.

This is one of the few types of research to use HSCI as a mediator in halal food studies in addition to improving SMEs’ performance.

The study aims to examine the impact of six events related to the escalating Indo-China border conflicts in 2020 on the Indian stock market, including the role of firm-specific variables.

This study employs an event-study method on a sample of 481 firms from August 23, 2019 to March 3, 2022. A cross-sectional regression is employed to examine the association between event-led abnormal returns and firm characteristics.

The results show that, although the individual events reflect heterogeneous effects on stock market returns, the average impact of the event categories is negative. The study also found that net working capital, current ratio, financial leverage and operating cash flows are significant financial performance indicators and drive cumulative abnormal returns. Further, size anomaly is absent, indicating that more prominent firms are resilient to new information.

The ongoing conflict between Russia and Ukraine is an example of how these disagreements can devolve into a disaster for the parties to the war. Although wars have an impact on markets at the global level, the impacts of border disputes are local. Border disputes are ongoing, and the study's findings can be used to empower investors to make risk-averting decisions that make their portfolios resilient to such events.

This study provides firm-level insight into the impacts of border conflicts on stock markets. The authors compare the magnitude of such impacts on two types of events, namely injuries and casualties due to country-specific border tensions and a government ban on Chinese apps. Key implications for policymakers, stakeholders and academics are presented.

The purpose of this study is to examine the impacts of the Glasgow Climate Pact on global oil and gas sector stocks. Further, this study also examines if the nations' Climate Change Performance Index (CCPI) and World Energy Trilemma Index (WETI) drive the abnormal returns around the event.

The authors apply the event study analysis to 691 global oil and gas firms across 52 countries. Further, they apply the cross-sectional examination of cumulative abnormal returns (CARs) across 502 firms.

The emerging markets experienced significant negative abnormal returns on the event day. The CCPI negatively affects longer pre-event CARs, while WETI significantly negatively associates with CARs during longer pre- and post-event windows. Volatility is negatively related to pre- and post-event abnormal returns, while past returns positively drive pre-event period CARs but negatively drive post-event window CARs. This study finds an interesting association between liquidity (CACL) and CARs, as CACL positively drives pre-event CARs, but post-event CARs are negatively associated with CACL. The CARs do not significantly correlate with leverage, size and book-to-market ratio.

This study's findings on the impact of climate risks on financial markets have significant implications for global regulatory bodies. Policymakers should reduce stock volatility and enhance environmental disclosures by publicly traded companies to accurately price and assess the potential impacts of climate risks. Governments should examine the effects of environmental restrictions on investor behavior, especially in developing countries with limited access to capital. Therefore, policymakers need to consider the far-reaching impacts of environmental regulations while introducing them.

Climate risks are expected to impact the global financial market significantly. Prior studies provide limited evidence on how such climate pacts impact the oil and gas sector. Hence, this study, while bridging this gap, provides important implications for policymakers and stakeholders, particularly the emerging markets that are more sensitive.

The present research study aims to explore the impact of the most recent Israeli–Palestinian conflict, which unfolded in October 2023, on global equity markets, including a wide range of both emerging and developed markets (as per the Morgan Stanley Capital Investment country classification).

The market model of event study methodology, with an estimation window of 200 days and 28-day event window (including event day, i.e. October 7, 2023), has been employed to investigate the event’s impact on the stock markets of different countries, with 24 emerging countries and 23 developed countries. The daily closing prices of the prominent indices of all 47 countries have been analyzed to examine the impact of the conflict on emerging markets, developed markets and overall global equity markets. Additionally, cross-sectional regression analysis has been performed to investigate the possible explanations for abnormal returns.

The findings of the study suggest the heterogeneous impact of the selected event on different markets. Notably, emerging markets and the overall global equity landscape exhibited substantial negative responses on the event day, as reflected in average abnormal returns of −0.47% and −0.397%, respectively. In contrast, developed markets displayed resilience, with no significant negative impact observed on the day of the event. A closer examination of individual countries revealed diverse reactions, with Poland, Egypt, Greece, Denmark and Portugal standing out for their positive or resilient market responses. Poland, in particular, demonstrated significantly positive cumulative abnormal returns (CARs) of 7.16% in the short-term and 8.59% in the long-term event windows (−7, +7 and −7, +20, respectively), emphasizing its robust performance amid the geopolitical turmoil. The study also found that, during various event windows, specific variables had a significant impact on the CARs.

The study suggests diversification and monitoring of geopolitical risks are key strategies for investors to enhance portfolio resilience during the Israeli–Palestinian conflict. This study identifies countries such as Poland, Egypt, Greece, Denmark and Portugal with positive or resilient market reactions, providing practical insights for strategic investment decisions. Key takeaways include identifying resilient markets, leveraging opportunistic strategies and navigating market dynamics during geopolitical uncertainties.

As per the authors’ thorough investigation and review of the literature, the present study is the earliest attempt to explore the short-term and long-term impact of the 2023 Israeli–Palestinian conflict on equity markets worldwide using the event study approach and cross-sectional regression analysis.

On completion of this case study, students will be able to describe a circular economy and cross-marketing; discuss the common strategies under the circular economy paradigm; describe the benefits and risks of cross-marketing brand alliances and their strategic implications; examine the role of growth strategy in driving the growth of an organization; classify what constitutes the elements of a strategy for HelpUsGreen LLP; and discuss measures to be considered while selecting a partner for a cross-marketing brand alliance.

HelpUsGreen LLP was a start-up founded by Karan Rastogi in 2019, which manufactured incense sticks using the circular economy model. After deflecting from his earlier partner in 2019 and after approximately two years of effort, Rastogi expanded his business of making incense sticks using a circular economy model. Students through this case can step into the shoes of Rastogi, who, as of 9 January 2023, was in Kanpur and was in an urgent need to replicate a similar circular economy model in different cities. With over 21,060 tonnes of temple flower waste recycled, 210 tonnes of chemical pesticides offset and 100% natural products delivered, multiple opportunities emerged at the cross-marketing brand alliance and new product segment levels. Rastogi entered into several cross-marketing brand alliance arrangements and tasted success. Rastogi believed that choosing the right partner for cross-marketing was key to successful cooperation. Considering cross-marketing as a way forward, he urgently needed to develop a strategy that aligned with his mission to take HelpUsGreen LLP’s circular economy model to other parts of the country. Students should take into consideration the data regarding the processes at HelpUsGreen LLP that helped Rastogi restart from scratch and make assumptions to decide the growth route for entering different cities.

This case can be used as an introductory case in a post-graduate class on growth strategy for a business based on the circular economy model, as it delineates the challenges faced by a firm while creating a circular economy and managing its growth phase. The case can also be used in an entrepreneurship management course and a strategic management course. This case allows students to learn about the circular economy and challenges faced by the company during the growth phase. Thus, the case can be used for covering multiple perspectives related to growth strategy (e.g. the application of Ansoff matrix), for defining what is cross-marketing brand alliance and discussing what measures need to be considered while selecting a partner for cross-marketing brand alliance, and it is ideal for teaching the elements of strategy.

Teaching notes are available for educators only.

CSS 11: Strategy.