The principal objective of this article is to gain insight into the biases that shape decision-making in contexts of risk and uncertainty, with a particular focus on the prospect theory and its relationship with individual confidence. A sample of 376 responses to a questionnaire that is a replication of the one originally devised by Kahneman and Tversky was subjected to analysis. Firstly, the aim is to compare the results obtained with the original study. Furthermore, the Cognitive Reflection Test (CRT) will be employed to ascertain whether behavioural biases are associated with cognitive abilities. Finally, in light of the significance and contemporary relevance of the concept of overconfidence, we propose a series of questions designed to assess it, with a view to comparing the various segments of respondents and gaining insight into the profile that reflects it. The sample of respondents is divided according to gender, age group, student status, professional status as a trader, status as an occasional investor, and status as a behavioural finance expert. It can be concluded that the majority of individuals display a profile of underconfidence, and that the hypotheses formulated by Kahneman and Tversky are generally corroborated. The low frequency of overconfident individuals suggests that the results are consistent with prospect theory in all segments, despite the opposite characteristics, given the choice of the less risk-averse alternative. These findings are useful for regulators to understand how biases affect financial decision making, and for the development of financial literacy policies in the education sector.

The sea level rise under global climate change and coastal floods caused by extreme sea levels due to the high tide levels and storm surges have huge impacts on coastal society, economy, and natural environment. It has drawn great attention from global scientific researchers. This study examines the definitions and elements of coastal flooding in the general and narrow senses, and mainly focuses on the components of coastal flooding in the narrow sense. Based on the natural disaster system theory, the review systematically summarizes the progress of coastal flood research in China, and then discusses existing problems in present studies and provide future research directions with regard to this issue. It is proposed that future studies need to strengthen research on adapting to climate change in coastal areas, including studies on the risk of multi- hazards and uncertainties of hazard impacts under climate change, risk assessment of key exposure (critical infrastructure) in coastal hotspots, and cost-benefit analysis of adaptation and mitigation measures in coastal areas. Efforts to improve the resilience of coastal areas under climate change should be given more attention. The research community also should establish the mechanism of data sharing among disciplines to meet the needs of future risk assessments, so that coastal issues can be more comprehensively, systematically, and dynamically studied.

There is a large literature on public-private-partnership, covering many different areas and aspects. This article deals with a specific but important aspect: the decision-making mechanisms to choose the management of PPP enterprises. In this sector, a suitable choice of managers is of particular importance because the persons chosen must balance the public and private interests. This is often difficult to achieve. Two new procedures are discussed, “Directed Random Choice” and “Rotating CEOs”. In each case, the advantages and disadvantages of the procedure of choosing the managers of PPP enterprises are discussed and evaluated. It is concluded that the two novel mechanisms should be seriously considered when choosing the managers of PPP enterprises.

Fire, a phenomenon occurs in most parts of the world and causes severe financial losses, even, irreparable damages. Many parameters are involved in the occurrence of a fire; some of which are constant over time (at least in a fire cycle), but the others are dynamic and vary over time. Unlike the earthquake, the disturbance of fire depends on a set of physical, chemical, and biological relations. Monitoring the changes to predict the occurrence of fire is efficient in forest management. Method: In this research, the Persian and English databases were structurally searched using the keywords of fire risk modeling, fire risk, fire risk prediction, remote sensing and the reviewed papers that predicted the fire risk in the field of remote sensing and geographic information system were retrieved. Then, the modeling and zoning data of fire risk prediction were extracted and analyzed in a descriptive manner. Accordingly, the study was conducted in 1995-2017. Findings: Fuzzy analytic hierarchy process (AHP) zoning method was more practical among the applied methods and the plant moisture stress measurement was the most efficient among the remote sensing indices. Discussion and Conclusion: The findings indicate that RS and GIS are effective tools in the study of fire risk prediction.

In order to diversify a portfolio, find prices, and manage risk, derivatives products are now necessary. There is a lack of understanding of the true influence of derivatives on the behavior of the underlying assets, their volatility consequences, and their pricing as complex instruments. There is a dearth of empirical research on how these instruments impact company risk exposures and inconsistent findings. This study examines corporate derivatives’ impact on stock price exposure and systematic risk in South African non-financial firms. Using a dataset of listed firms from 2013 to 2023, we employ Generalized Autoregressive Conditional Heteroscedasticity (GARCH) models to assess the effect of derivatives on return volatility and beta, a measure of systematic risk. Additionally, we apply the Generalized Method of Moments (GMM) to address potential endogeneity between firm characteristics and derivatives use. Our findings suggest that firms using derivatives experience lower overall volatility and reduced systematic risk compared to non-users. The results are robust to various control factors, including firm size, leverage, and macroeconomic conditions. This study fills a gap in the literature by focusing on an underrepresented emerging market and provides insights relevant to global risk management practices.

This study uses the annual financial data of Chinese A-share listed firms from 2010 to 2020 to investigate the relationship between multiple large shareholders (MLS) and earnings management (EM). After analyzing the samples using the Ordinary Least Squares (OLS) model and endogenous switching regression (ESR) model, the empirical results show that the presence of MLS can increase corporate EM activities and the MLS have a significantly positive effect on EM in both the treatment and control groups. In addition, this conclusion still holds after conducting multiple robustness tests. The cross-section analysis shows that the external audit supervision quality, institutional shareholders, and the uncertainty of the external economic environment have significant impacts on the baseline model results. Lastly, mediation effect analysis shows that the presence of MLS increases the corporate operating risk through EM activities. The conclusions of this paper are critical for policymakers to supervise China’s capital market, improve the level of corporate governance of China’s listed firms, and further promote reform of ownership structure.