Journal of Business Economics and Management

Our research investigates the dynamic relationship between economic growth and environmental sustainability in Serbia, a country situated at the intersection of Western environmental standards and Eastern development models. Specifically, it examines whether economic growth, as measured by GDP per capita, conflicts with environmental sustainability. It also considers the roles of renewable energy consumption (RENC), urbanization (URB) and trade openness (TO) as mediating variables. The analysis is based on annual time series data for Serbia from 1995 onward. A Vector Error Correction Model (VECM) framework is employed to assess both short-run and long-run relationships among the variables. Our research addresses the underexplored question of how countries like Serbia can reconcile growth with sustainability in a policy space shaped by contrasting regional norms. The results indicate a short-run trade-off between GDP and environmental sustainability, as lagged CO₂ emissions and RENC negatively affect GDP growth. However, in the long run, growth is positively associated with TO and URB, while RENC is strongly driven by URB. CO₂ emissions appear to evolve relatively independently of TO and URB. The adjustment coefficients confirm that GDP, CO₂ and RENC significantly respond to deviations from long-run equilibrium, with URB playing a central role in stabilizing the system.

This study investigates the impact of SUS on CIN, with a specific focus on the mediating role of ENX. Utilizing a panel dataset of firms spanning the period from 2010 to 2022, the study employs the fixed effects model (FEM), 2SLS, and the system generalized method of moments (GMM) to ensure robust estimation and address potential endogeneity concerns. The findings reveal that SUS harms CIN, suggesting that firms facing heightened ESG uncertainty are more cautious in their capital allocation. Moreover, the results confirm that ENX plays a mediating role, as firms tend to increase environmental expenditures in response to higher ESG uncertainty, which in turn reduces their capital investment. The study provides valuable social and practical implications. From a social perspective, it underscores the importance of stable and transparent ESG policies in mitigating uncertainty and promoting sustainable investment practices. Practically, firms should balance their environmental expenditures and investment strategies to ensure long-term financial stability. The study’s novelty lies in integrating ESG-related uncertainty with CIN decisions through the mediating role of environmental expenditures, offering a fresh perspective on how firms respond to ESG-related risks in capital allocation.

In the digital economy, the importance of robust cybersecurity governance for corporate financing stability has become increasingly salient. Using a sample of Chinese A-share listed companies from 2011 to 2023, we employ the Word2vec natural language processing technique to develop a measure of corporate cybersecurity governance commitment. Our study empirically examines its impact on trade credit financing. The results indicate that a firm’s expressed commitment to cybersecurity governance is positively associated with the trade credit it receives from suppliers. We find that information asymmetry and corporate reputation are key mechanisms through which this effect operates. Heterogeneity analysis reveals that this effect is more pronounced for firms that have received regulatory inquiry letters, those without political ties, those operating during periods of high economic policy uncertainty, and those located in regions with low social trust. Furthermore, we show that when firms’ stated commitments align with their actions, suppliers adjust their business relationships by allocating a greater share of procurement volume to them, thereby strengthening long-term supply chain trust. Our findings offer valuable insights for firms in emerging economies seeking to enhance their cybersecurity governance and optimize their financing environment.

This study examines the profitability of a simplified short-term pairs trading strategy for retail investors in real-time equity markets, comparing the performance of individual stock pairs versus clusters of stocks. The research employs a simplified strategy implemented using accessible tools like “eToro” for trading and “MS Excel” for calculations. Stock pairs were selected based on historical correlations. The strategy was tested over a six-week trading period, comparing the performance of individual pairs versus a cluster of pairs. Key risk factors such as market trends, divergence risk, idiosyncratic news, and transaction costs were analysed. The research revealed that while the strategy can mitigate large losses when well-diversified, profitability is limited in stable or rising markets, idiosyncratic events also significantly impacted profitability. Trading clusters of stocks offers greater stability but reduced profit potential, whereas individual pairs provide higher but riskier returns. This research provides practical insights for retail investors seeking the simplified methods for pairs trading. It emphasises the importance of effectively managing key risks, diversifying portfolios, and adjusting trading strategies to improve investment outcomes. By concentrating on real-time market dynamics and a simplified framework, this study distinguishes itself from prior studies by offering practical guidance for retail investors, emphasizing the accessibility and flexibility of its methodology, in contrast to the complex algorithmic methods discussed in other studies.

Considering the nature, complexity and importance of the current managerial challenges, there is a need for a systematic study that offers guidance to their holistic analysis, and no overarching structure to guide this type of research could have been identified to date. This article lays the groundwork for a comprehensive examination of managerial challenges. Based on the review of 78 empirical works, the key practices in studying managerial challenges are synthesized and presented as a reference framework. The framework is designed using the 5W and 1H method. It offers an up-to-date understanding of the substance of managerial challenges, which contributes to both the theoretical understanding and practical execution of managerial work.