Abstract

Purpose – This study examines how oil market volatility and clean energy trends impact the stock performance of automakers, specifically comparing traditional manufacturers with electric vehicle (EV) producers such as BYD and Tesla. The objective is to assess the extent to which traditional automakers are sensitive to oil market fluctuations, while EV manufacturers align more closely with clean energy dynamics, particularly during global market crises.

Design/methodology/approach – Using daily data from January 2013 to December 2023, we conduct linear regressions, GARCH, DCC-GARCH and the Diebold–Yilmaz connectedness approaches in the analysis. We use these econometric models to capture volatility patterns, correlations and cross-market spillovers.

Findings – Traditional manufacturers are affected by both oil prices and clean energy development. While traditional automakers remain more vulnerable to oil price volatility, global leading EV manufacturers BYD and Tesla are less sensitive to oil price shocks and show strong alignment with clean energy indices. Significant volatility spillovers are observed during global crises, such as the COVID-19 pandemic and the Russia–Ukraine conflict.

Originality/value – The paper uniquely integrates clean energy indices into the analysis of oil price impacts on automaker stocks. By comparing traditional and EV manufacturers using advanced econometric models, it sheds light on the literature of energy markets and sustainable financial markets.

Abstract

Purpose – Our study investigates how board co-option influences solvency risk in Australian and New Zealand banks. Board governance is considered one of the most critical variables impacting bank risk management practices and policies.

Design/methodology/approach – Our sample consists of commercial banks from both countries and data from 2011 to 2021. The results obtained were based on fixed-effect, 2SLS and GMM Models. Our results are robust to the other two measures of Board Co-option, Tenure-Weighted Co-Option and Residual Co-option, showing the applicability of our econometric model.

Findings – Results reveal that an increased proportion of co-opted directors on the board is associated with a notably reduced Z-Score ratio value, signifying an elevated level of solvency risk for banks. The evidence is consistent with the notion that co-opted directors bring about less effective board governance, escalating agency problems and enhancing solvency risk.

Research limitations/implications – The banks in these two countries must carefully establish a risk management framework under the Basel Accords to avoid risks like solvency risk. The regulators in the financial services industry may also devise mechanisms and regulate the banks under the second pillar of Basel-II and III, “Supervisory Review Process,” to avoid solvency risk management issues. Future researchers and scholars can extend the limits of future studies from two countries to various geographic locations, such as Europe, China and Southeast Asian regions.

Practical implications – Our study establishes the fact that banks in Australia and New Zealand are more exposed to solvency risk due to increasing board co-option phenomena at the board level.

Social implications – The unique measure of board co-option reveals the significance of board governance for bank risk management. To properly develop and implement bank risk management policies, the appointment and performance of board members must be actively monitored in Australian and New Zealand banks through a sensitive measure of board co-option.

Generative AI is reshaping software development – and fast. A new study published in Science shows that AI-assisted coding is spreading rapidly, though unevenly: in the U.S., the share of new code relying on AI rose from 5% in 2022 to 29% in early 2025, compared with just 12% in China. AI usage is highest among less experienced programmers, but productivity gains go to seasoned developers.