We estimate and compare the impact of the coronavirus pandemic (COVID-19) on the performance of Artificial Intelligence (AI) and conventional listed firms using stock market indices. The single-group and multiple-group Interrupted Time-Series Analyses (ITSA) with panel data were used with four interventions: when the news of COVID-19 spread and the pandemic entered the first, second, third, and fourth months (24 February 2020, 23 March 2020, 20 April 2020, and 18 May 2020, respectively). The results show that the negative impact of COVID-19 on the AI stock market was less severe than on the conventional stock market in the first month of the pandemic. The performance of the AI stock market recovered quicker than the conventional stock market when the pandemic went into its third month. The results suggest that the AI stocks were more resilient than conventional stocks when the financial market was exposed to uncertainty caused by the COVID-19 pandemic. The deployment of AI in firms serves as a resilient, crucial driver for sustainable performance in challenging environments. Observing the performance of AI-adopted firms is an interesting direction for technical and fundamental analysts. Investors and portfolio managers should consider an AI market index to minimize risk or invest in stocks of AI-adopted listed firms to maximize excess returns.

Purpose: The Asia-Pacific region faces high stakeholder pressures because of its significant carbon emissions and vulnerability to climate change impacts. In this context, integrating climate concerns into corporate governance has the potential to enhance corporate sustainability commitment and address climate concerns from various stakeholder groups. This study examines the determinants of corporate carbon transparency from the perspective of climate governance among Asia-Pacific nonfinancial firms as well as the role of stakeholder pressures in shaping this relationship.Design/methodology/approach: Based on a sample of 5,391 firm-year observations from 2016 to 2021, this study uses an ordinal logistic model to analyze how climate governance affects firm carbon transparency, measured by the Carbon Disclosure Project score. This study also uses a lead-lag approach and Heckman’s two-stage method to mitigate potential endogeneity concerns.Findings: Climate governance has a significant positive impact on the level of carbon transparency. Specifically, climate governance mechanisms, including the existence of a sustainability committee, climate risk awareness and environmental, social and governance-related incentives, can promote the level of carbon transparency in Asia-Pacific non-financial firms. Further analysis reveals that stakeholder pressures influence this relationship, with a stronger positive effect observed for firms listed on foreign exchanges and those operating in countries with civil law systems.Originality/value: This study contributes to the growing body of research on how climate governance may encourage more transparent carbon disclosure in Asia-Pacific nonfinancial firms. These insights can help investors, managers and policymakers promote a more sustainable and environmentally responsible business landscape in the region.

Purpose: Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare.Design/methodology/approach: With the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity.Findings: We reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare.Originality/value: This study offers valuable insights into China’s rural financial inclusion progress, highlighting potential barriers and guiding government actions.

Purpose: Using a novel measure of firm-level exposure to climate opportunity from 2002 to 2022, this paper examines the impact of climate opportunity exposure on the cost of capital for nonfinancial listed firms in emerging markets. Design/methodology/approach: The study analyzes how climate opportunity exposure affects both the weighted average cost of capital and its components using regression models with industry, country and year fixed effects. The analysis uses multiple robustness approaches, including propensity score matching, entropy balancing and two-stage least squares. The study also investigates how the relationship varies across institutional factors, particularly countries' climate change vulnerability and readiness. Findings: One standard deviation increase in climate opportunity exposure reduces the weighted cost of capital by 1.58%. However, this effect is primarily driven by equity financing costs, with insignificant effects on the cost of debt, suggesting equity investors’ focus is on long-term climate-related value creation opportunities. The negative relationship is more pronounced in firms operating in countries with high climate change vulnerability and readiness. These findings highlight the financial value of climate opportunities and their varying impact across different institutional environments in emerging markets. Originality/value: This study examines an unexplored aspect of climate change – climate opportunity – and its financial implications in emerging markets. It introduces a novel measure of climate opportunity exposure and provides evidence that climate-related opportunities serve as unique resources for firms to demonstrate proactive climate risk management and gain a competitive advantage, particularly in economies facing significant climate challenges.