Research Roundup: Finance – April 2026
We’re celebrating our Finance research colleagues, as well as showcasing the impactful work taking place within the group.
17 April 2026
Publications
Our latest publications explore the forces shaping financial markets, from consumer behaviour to global investment dynamics.
Consumer Financial Literacy and Habitual Behaviour as Drivers of Contactless Payment Ownership
European Journal of Finance
This paper investigates how contactless payments rival cash payments. The research uses UK survey data when contactless payments were on the rise but not yet fully adopted. The role of consumers’ financial literacy and trait habitual behaviours are examined as the drivers of contactless payment ownership.
The research shows that consumers’ financial literacy and routine behaviour are positively associated with ownership of contactless payment cards.
Explaining the Causality Between Trading Volume and Stock Returns: What Drives Its Cross-Quantile Patterns?
Economic modelling
This research investigates the impact of trading volume on future stock returns and why past research has produced mixed results. Using U.S. stock market data from 1973 to 2018, the research explores whether this relationship is driven by informed investors, investor sentiment, liquidity needs, or market uncertainty.
The results show that investor sentiment and informed trading, especially when good news is involved, play a major role. When investors follow informed traders or act on optimism, trading activity can temporarily push prices away from their true value. These imbalances are often followed by price reversals later on.
Backing Away from ESG? The Effect of Sovereign Rating. Downgrades on Corporate Sustainability
Dr Periklis Boumparis (co-author)
Journal of Corporate Finance
This study examines how sovereign credit rating downgrades can affect a company’s environmental, social, and governance (ESG) practices. It focuses on firms whose credit ratings are closely tied to their country’s rating, meaning they are more likely to be downgraded when their government is.
The results show that companies affected by a sovereign downgrade experience a decline in ESG performance after the downgrade occurs. There is no evidence of this decline beforehand, suggesting that the downgrade itself triggers the change.
Greeks-Neutral Option Excess Returns
Journal of Futures Markets
This research explores how expected returns from options trading strategies compare with the returns that are actually realised later. It focuses on strategies that are neutral to option risk sensitivities (known as “Greeks”), allowing the analysis to isolate true excess returns rather than risk-driven effects.
Appointments
Our colleagues regularly take on new editorial and leadership roles both within the Business School and beyond. They contribute their expertise to the wider academic community.
Dr Doris Xin – Finance Research Letters
Congratulations to Dr. Doris Xin on her recent appointment to the editorial board of ‘Finance Research Letters’.
Finance Research Letters invites submissions in all areas of finance. They aim to provide a rapid response to papers, with all papers undergoing a desk review by one of the Editors in Chief before being sent for review.
Professor Bartosz Gebka – International Review of Economics and Finance (IREF)
Congratulations to Professor Bartosz Gebka for his recent associate editor appointment at the International Review of Economics and Finance (IREF).
IREF publishes high-quality theoretical and empirical research across the broad fields of economics and finance. Its aim is to provide an outlet for scholarly work that advances our understanding of economic behaviour, markets, institutions, and policies at both domestic and international levels with broad global implications.
Collaborations
Collaboration sits at the heart of our research, bringing together expertise to tackle complex financial challenges.
Signalling and Perceiving on Equity Crowdfunding Decisions — A Machine Learning Approach
Dr. Doris Xin, Dr. Jose Liu and co-authors
Small Business Economics
The co‑authors investigate how crowd investors interpret and prioritise information when making equity crowdfunding decisions.
Applying five machine learning models, the study evaluates the predictive power of different types of signals — including quantitative data, qualitative text, and images — in explaining crowdfunding success. The research highlights the importance of not only how entrepreneurs signal information, but also how investors perceive and cognitively process it.
The results show that investors consistently place greater weight on clear, well‑structured quantitative information than on complex qualitative content such as text narratives or images.
Quantitative data is found to be less cognitively demanding to process, while extracting useful insights from qualitative information requires more effort and introduces greater uncertainty. The study demonstrates that entrepreneurs’ signalling and investors’ information processing work together to reduce information asymmetry in crowdfunding markets, underscoring the often overlooked but critical role of investor cognition.
The Spatial Heterogeneity of International Financial Contagion During the 2007–09 Crisis: A Sectoral Perspective
Dr. Deeya Sewraj, Professor Bartosz Gebka, and co-authors
GeoForum
The co‑authors examine whether financial crises propagate evenly across a globalised world or whether geography continues to shape how shocks are transmitted and experienced.
Using a detailed dataset of stock market returns disaggregated by country and sector, the study analyses how international financial contagion unfolded during the 2007–09 global financial crisis. The authors employ and extend an empirical modelling framework that captures multiple forms of financial contagion while accounting for evolving financial linkages over time.
The results strongly support the conclusion that geography matters. The study shows that vulnerability to contagious financial shocks depended on the type of contagion experienced and varied systematically across sectors and regions. This heterogeneity was partly explained by national characteristics, including levels of stock market sophistication and openness to international trade, capital flows, and the movement of people.
Overall, the findings challenge the notion of uniform global shock transmission and emphasise the continued relevance of spatial and sectoral structures in understanding international financial crises.
Do Women in the Boardroom Influence Foreign Acquisitions’ Premium and Outcomes? Evidence from China
Dr Yousry Ahmed, Dr Vu Trinh, and co-authors
International Journal of Finance and Economics
This work investigates how gender diversity at the executive and board level shapes corporate communication around cybersecurity risks.
Drawing on a unique longitudinal dataset of cybersecurity‑related disclosures from prominent publicly traded U.S. companies over a 19‑year period (2002–2020), the study analyses differences in disclosure behaviour associated with the presence of female executives. The research examines not only whether firms disclose cybersecurity information, but also the amount disclosed and the sentiment and tone of those disclosures.
The results show that firms with female executives are significantly more likely to disclose cybersecurity information and provide more extensive cybersecurity‑related details than firms led solely by male executives. In addition, female executives tend to adopt a more conservative, cautious, and legally sensitive tone, characterised by greater expressions of uncertainty and litigation awareness.
Books
Through books and edited volumes, our researchers are advancing thought leadership across finance and sustainability.
Climate Governance and Corporate Eco‑innovation: A Framework for Sustainable Companies
Dr. Vu Trinh (Editor)
Springer
This book provides a comprehensive overview of theoretical and empirical perspectives on climate governance and corporate eco‑innovation in an era of increasing environmental and climate pressures.
It examines how companies respond to resource constraints, socio‑environmental challenges, and climate change by reforming governance structures and integrating sustainability into decision‑making.
Funding
Our research attracts funding to address pressing economic, environmental, and societal challenges.
Innovative Sustainable Finance Mechanisms for a Net‑Zero, Regenerative and Equitable Future (INSURE)
Dr Iftekhar Ahmed (Principal Investigator)
Funding source: Newcastle City Council; 2025 IAFA & CAIET joint research funding call
The INSURE project responds to the growing challenge faced by UK local authorities as they work towards ambitious climate targets with limited public resources. The project focuses on identifying and analysing innovative green and sustainable finance tools that can support Newcastle City Council in meeting its 2030 net‑zero objectives.
The project aims to generate practical insights for local governments and policymakers by examining how blended finance mechanisms can be used to unlock investment for climate action. Its findings will support the development of sustainable finance pathways that combine public and private funding to enable a greener, more resilient local economy. Overall, the INSURE project highlights the critical role of innovative finance in supporting local climate transitions and advancing inclusive, long‑term sustainability goals.
Macroeconomic Implications of Transitions to Low‑Carbon Energy in Vietnam
Dr Vu Trinh (lead)
Funding source: Climate Compatible Growth (CCG) programme – Flexible Research Fund; support from UK Aid
This research focuses on understanding the macroeconomic impacts of Vietnam’s transition towards low‑carbon energy, a critical challenge for rapidly developing economies balancing growth, energy demand, and climate commitments.
The project analyses how shifts away from carbon‑intensive energy sources influence key economic indicators, including growth, investment, and structural change. By assessing the broader economic implications of low‑carbon energy transitions, the research provides valuable insights for policymakers seeking to design strategies that support sustainable development while maintaining economic stability. Overall, the project contributes to international efforts to align climate action with long‑term economic resilience in emerging economies.
ESG Practices and Corporate Bankruptcy Risk
Dr Yousry Ahmed (lead)
Funding source: Irish Accounting & Finance Association (IAFA) and
Chartered Accountants Ireland Educational Trust (CAIET)
This research project examines the relationship between firms’ ESG practices and their likelihood of financial distress or bankruptcy. As ESG considerations become increasingly embedded in corporate decision‑making and investment strategies, the project aims to assess whether stronger ESG engagement is associated with improved firm resilience and reduced downside risk.
The project will contribute to academic and policy debates on the economic value of ESG by clarifying how sustainability practices relate to corporate risk management and long‑term financial health. Its findings are expected to be relevant for investors, regulators, and policymakers seeking to understand the financial implications of ESG integration in corporate governance.
Impact and engagement
From central banks to policymakers, our researchers are shaping real-world financial decision-making through active engagement.
Central Bank Digital Currency and the Financial Viability of the Digital Pound
Bank of England – Central Bank Digital Currency (CBDC) Academic Advisory Group
In March, Professor Darren Duxbury continued his influential role on the Bank of England’s Central Bank Digital Currency (CBDC) Academic Advisory Group. Working alongside his subgroup colleagues, he led discussions focused on evaluating the economic and financial viability of the proposed Digital Pound (D£).
The work considers how a CBDC could function within the UK’s financial system, including its potential impacts on public institutions, private financial actors, and wider market dynamics. By contributing expert academic insight to policy‑focused discussions, this activity supports evidence‑based decision‑making on the design and implementation of digital currency in the UK. Overall, the work plays a key role in shaping national understanding of the opportunities and challenges associated with introducing a Digital Pound.
You can find out more about our Finance research on the Finance Research page
You can also learn more about our colleagues' achievements:
- on our social channels
- through our regular updates on the news section of our website