LIC'25 TRACKS > TRACK VI- Financial disruption and emerging dynamics in a fragmented world

TRACK VI- Financial Disruption and Emerging Dynamics in a Fragmented World

This track opens the debate on key dynamics shaping the contemporary financial landscape.

 1. Financial Resilience of Socially Responsible Firms

The integration of CSR and ESG criteria acts as a form of insurance in times of crisis (Peng et al., 2023), enhancing both returns and firm valuation (Godfrey et al., 2009; Lins et al., 2017; Harjoto & Laksmana, 2018). This protective effect is also confirmed in the face of geopolitical shocks (Kuai & Wang, 2025; Chowdhury et al., 2025).

 2. Cryptocurrencies and the Fragmentation of the Global Financial System

The decentralization of cryptocurrencies enables the circumvention of economic sanctions (Zola et al., 2024), yet their anonymity increases the risk of tax evasion and financial opacity (Wronka, 2022), raising questions about the effectiveness of sanctions (Gutmann et al., 2023). Cryptocurrencies are used for a wide range of purposes, including illicit ones (Tiwari et al., 2024), and sanctions may even accelerate their adoption, particularly in Africa (Thi Hang, 2025).

 3. The Transformation of Financial Markets Through Green Regulation

Green regulation is redirecting capital toward sustainable investments (European Commission, 2020), supported by initiatives such as the TCFD (Hilbrich et al., 2024). It incentivizes companies with low carbon footprints (Ameli et al., 2021), despite ongoing challenges related to harmonization and the inclusion of emerging economies (Tarczynska-Luniewska et al., 2024).

 4. Challenges of Financing the Energy Transition in Emerging Economies

Energy transition financing in emerging economies is hindered by inadequate regulatory frameworks and high perceived risks (Barua & Aziz, 2022; Calcaterra et al., 2024; Briera & Lefèvre, 2024). These barriers are further exacerbated by ESG standards set by developed markets (Tarczynska-Luniewska et al., 2024), despite the growing use of instruments such as green bonds (Fatica & Panzica, 2021).

 5. The Rise of Crypto-Assets and Digital Currencies Amid Disruption

These new forms of money challenge sovereign currencies (Foley et al., 2019), but their volatility and illicit uses pose significant risks (Gandal et al., 2018). In response, central banks are developing Central Bank Digital Currencies (CBDCs) as strategic tools (Auer et al., 2023; Ozili, 2023), with further justification found in their stabilizing potential (Auer et al., 2022; Chen & Siklos, 2022).

 6. Fintech and Financial Inclusion in the Face of Global Disruptions

Fintech fosters financial inclusion (Zins & Weill, 2016), facilitates access to public assistance (Sahay et al., 2020), and enhances transparency (Arner et al., 2016). However, appropriate regulation is essential to prevent exclusion risks (Bazarbash, 2019), and the long-term impact of fintech will depend on governance frameworks and financial education.

Submit your paper

 Track Chairs

Olfa Erais_olfa.errais@iscae.uma.tn 

Mohamed Yousfi _mohamed.yousfi@iscae.uma.tn

 References

Ameli, N., Drummond, P., Bisaro, A., Grubb, M., & Chenet, H. (2020). Climate finance and disclosure for institutional investors: why transparency is not enough. Climatic Change, 160(4), 565–589.

 Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The evolution of Fintech: A new post-crisis paradigm. Geo. J. Int'l L., 47, 1271.

 Auer, R., Cornelli, G., & Frost, J. (2023). Rise of the central bank digital currencies. International Journal of Central Banking, 19(4), 185–214.

 Auer, R., Frost, J., Gambacorta, L., Monnet, C., Rice, T., & Shin, H. S. (2022). Central bank digital currencies: motives, economic implications, and the research frontier. Annual Review of Economics, 14(1), 697–721.

 Barua, S., & Aziz, S. (2022). Making green finance work for the sustainable energy transition in emerging economies. In Energy-growth nexus in an era of globalization (pp. 353–382). Elsevier.

 Bazarbash, M. (2019). Fintech in financial inclusion: Machine learning applications in assessing credit risk. International Monetary Fund.

 Briera, T., & Lefèvre, J. (2024). Reducing the cost of capital through international climate finance to accelerate the renewable energy transition in developing countries. Energy Policy, 188, 114104.

 Calcaterra, M., Aleluia Reis, L., Fragkos, P., Briera, T., de Boer, H. S., Egli, F., ... & Tavoni, M. (2024). Reducing the cost of capital to finance the energy transition in developing countries. Nature Energy, 9(10), 1241–1251.

 Chen, H., & Siklos, P. L. (2022). Central bank digital currency: A review and some macro-financial implications. Journal of Financial Stability, 60, 100985.

 Chowdhury, M. S. R., Koussis, N., Makrominas, M., & Trigeorgis, L. (2025). Geopolitical risk, uncertainty, real options, and corporate social responsibility. Financial Review.

 Commission européenne. (2020). EU taxonomy for sustainable activities.

https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/eu-taxonomy-sustainable-activities_en

 Fatica, S., & Panzica, R. (2021). Green bonds as a tool against climate change?Business Strategy and the Environment, 30(5), 2688–2701.

 Gandal, N., Hamrick, J. T., Moore, T., & Oberman, T. (2018). Price manipulation in the Bitcoin ecosystem. Journal of Monetary Economics, 95, 86–96.

 Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30(4), 425-445.

 Gutmann, J., Neuenkirch, M., & Neumeier, F. (2023). The economic effects of international sanctions: An event study. Journal of Comparative Economics, 51(4), 1214-1231.

 Harjoto, M., & Laksmana, I. (2018). The impact of corporate social responsibility on risk taking and firm value. Journal of Business Ethics, 151, 353-373.

 Hilbrich, S., Berensmann, K., Artmann, G., Ashman, S., Herbold, T., Lötters-Viehof, S., ... & Steenkamp, L. A. (2024). Implementing sustainability taxonomies to redirect capital flows: the case of South Africa. Climate Policy, 1–15.

 Kuai, Y., & Wang, H. (2025). Geopolitical risk and corporate ESG performance: Evidence from China. Emerging Markets Finance and Trade, 61(4), 1010-1029.

 Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), 1785-1824.

 Ozili, P. K. (2023). Central bank digital currency research around the World: a review of literature. Journal of Money Laundering Control, 26(2), 215–226.

 Peng, D., Colak, G., & Shen, J. (2023). Lean against the wind: The effect of policy uncertainty on a firm's corporate social responsibility strategy. Journal of Corporate Finance, 79, 102376.

 Sahay, M. R., von Allmen, M. U. E., Lahreche, M. A., Khera, P., Ogawa, M. S., Bazarbash, M., & Beaton, M. K. (2020). The promise of fintech: Financial inclusion in the post COVID-19 era. International Monetary Fund.

 Shiu, Y. M., & Yang, S. L. (2017). Does engagement in corporate social responsibility provide strategic insurance‐like effects? Strategic Management Journal.

 Tarczynska-Luniewska, M., Maciukaite-Zviniene, S., Nareswari, N., & Ciptomulyono, U. (2024). Analysing the Complexity of ESG Integration in Emerging Economies: An Examination of Key Challenges. In Exploring ESG Challenges and Opportunities: Navigating Towards a Better Future (Vol. 116, pp. 41–60). Emerald Publishing Limited.

 Thi Hang, N. P. (2025). Sanctions and cryptocurrency: a catalyst for digital adoption?Journal of Financial Regulation and Compliance.

 Tiwari, M., Lupton, C., Bernot, A., & Halteh, K. (2024). The cryptocurrency conundrum: the emerging role of digital currencies in geopolitical conflicts. Journal of Financial Crime, 31(6), 1622-1634.

 Wronka, C. (2022). Digital currencies and economic sanctions: the increasing risk of sanction evasion. Journal of Financial Crime, 29(4), 1269-1282.

 Zins, A., & Weill, L. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57.

 Zola, F., Medina, J. A., & Orduna, R. (2024, September). Assessing the Impact of Sanctions in the Crypto Ecosystem: Effective Measures or Ineffective Deterrents?. In European Symposium on Research in Computer Security (pp. 292–308). Cham: Springer Nature Switzerland.