IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v89y2026ics1544612325025723.html

Exploring the impact of geopolitical risk and global uncertainty on ESG-based sustainability uncertainty: Evidence from Vietnam

Author

Listed:
  • Benammar, Riadh
  • Si Mohammed, Kamel
  • Arfaoui, Nadia

Abstract

This study employ the wavelet quantile-on-quantile regression approach to examine the impact of Geopolitical Risk (GPR), Climate Policy Uncertainty (CPU), Global Economic Policy Uncertainty (GEPU), and Trade Policy Uncertainty (TPU) on Sustainability Uncertainty in Vietnam (ESGUIV) for the period from June 2007 to June 2025. The findings indicate that ESGUIV is positively affected by CPU, GEPU, GPR, and TPU in all time horizons, except for CPU in the short term, which shows a weak negative impact on higher quantiles (0.9) of ESGUIV. This indicates that increasing GPR, GPU, TPU, and CPU (except the short term) can raise ESGUIV especially in the long term.

Suggested Citation

  • Benammar, Riadh & Si Mohammed, Kamel & Arfaoui, Nadia, 2026. "Exploring the impact of geopolitical risk and global uncertainty on ESG-based sustainability uncertainty: Evidence from Vietnam," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025723
    DOI: 10.1016/j.frl.2025.109323
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325025723
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.109323?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Hunjra, Ahmed Imran & Azam, Muhammad & Bruna, Maria Giuseppina & Taskin, Dilvin, 2022. "Role of financial development for sustainable economic development in low middle income countries," Finance Research Letters, Elsevier, vol. 47(PB).
    2. Haseeb, Mohammad & Usman, Muhammad & Fan, Fei, 2025. "Understanding financial stability through the lens of geopolitical risk in China: The influence of policy uncertainty on climate change," Finance Research Letters, Elsevier, vol. 85(PB).
    3. Asya Dimitrova & Anna Dimitrova & Matthias Mengel & Antonio Gasparrini & Hermann Lotze-Campen & Sabine Gabrysch, 2024. "Temperature-related neonatal deaths attributable to climate change in 29 low- and middle-income countries," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    4. Serdar Ongan & Ismet Gocer & Cem Işık, 2025. "Introducing the New ESG‐Based Sustainability Uncertainty Index (ESGUI)," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 4457-4467, June.
    5. Ge, HuaHua & Zhang, XiaoXi, 2025. "From uncertainty to sustainability: How climate policy uncertainty shapes corporate ESG?," International Review of Economics & Finance, Elsevier, vol. 98(C).
    6. Zhu, Sha & Xia, Yuqin & Li, Qiuxuan & Chen, Yunjia, 2025. "Global geopolitical risk and financial stability: Evidence from China," Finance Research Letters, Elsevier, vol. 72(C).
    7. Liu, Xia & Zhang, Cong, 2025. "The nonlinear impact of trade policy uncertainty on corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 103(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabio Anobile & Alberto Costantiello & Carlo Drago & Massimo Arnone & Angelo Leogrande, 2026. "Beyond Shocks: How ESG Fundamentals Shape Geopolitical Risk Across Countries," Economies, MDPI, vol. 14(3), pages 1-73, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Shahbaz & Cem Işık & Serdar Ongan & Bekhzod Kuziboev, 2025. "Investigating resource curse/Blessing hypothesis in Central Asia: Do mineral resources matter for economic growth?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(3), pages 625-638, September.
    2. Tan, Chunzhi & Liu, Junjie & Ma, Junfeng & Liu, Bin & Ren, Boru, 2025. "When climate policies waver: Firms, debt, and the investment-financing maturity mismatch," Finance Research Letters, Elsevier, vol. 85(PB).
    3. Zhong, Juandan & Li, Haibo & Wang, Bo, 2026. "Geopolitical risk and systemic tail risk spillovers: Evidence from Chinese financial markets," International Review of Financial Analysis, Elsevier, vol. 109(C).
    4. Guo, Bingnan & Wang, Yu & Zhang, Hao & Liang, Chunyan & Feng, Yu & Hu, Feng, 2023. "Impact of the digital economy on high-quality urban economic development: Evidence from Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    5. Hunjra, Ahmed Imran & Hassan, M. Kabir & Zaied, Younes Ben & Managi, Shunsuke, 2023. "Nexus between green finance, environmental degradation, and sustainable development: Evidence from developing countries," Resources Policy, Elsevier, vol. 81(C).
    6. Liu, Jintao & Chen, Yutao, 2025. "Executive gender diversity and corporate intellectual property investment," Finance Research Letters, Elsevier, vol. 77(C).
    7. Niu, Niu & Zhang, Bin & Song, Yanwu & Boateng, Agyenim, 2025. "Climate policy uncertainty and ESG performance of energy firms: The moderating effect of cloud computing technology," International Review of Financial Analysis, Elsevier, vol. 108(PA).
    8. Gaies, Brahim, 2024. "In search of lost social finance: How do financial instability and inequality interact?," Research in International Business and Finance, Elsevier, vol. 72(PA).
    9. Aidi Xu & Jie Zhang, 2024. "Utilizing virtual arts in reforming market players’ behavior to invest in sustainability projects," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    10. Cem Işık & Serdar Ongan & Hasibul Islam, 2026. "Driving Energy Transition Through Artificial Intelligence: Integrating Economic, Environmental, Social, and Governance (ECON-ESG) Factors in OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 750-776, February.
    11. Qu, Gan & Wang, Zongyi, 2025. "Digital finance development and tourism consumption growth: An analysis of the moderating effect based on household wealth," Finance Research Letters, Elsevier, vol. 80(C).
    12. Shi, Ruoying & Zhou, Hengyi & Li, Xiangqian & Miao, Xue'er & Zhao, Xing, 2024. "Green finance, investor preferences, and corporate green innovation," Finance Research Letters, Elsevier, vol. 66(C).
    13. Hunjra, Ahmed Imran & Bouri, Elie & Azam, Muhammad & Azam, Rauf I & Dai, Jiapeng, 2024. "Economic growth and environmental sustainability in developing economies," Research in International Business and Finance, Elsevier, vol. 70(PA).
    14. Nie, Peng & Zhong, Juncheng & Ren, Zhengliang & Huang, Jinglei, 2024. "Sustainable financing solutions for the growth of resource-driven economies in the digital economy age," Resources Policy, Elsevier, vol. 98(C).
    15. Tian, Renfang & Xu, Jingjing & Feng, Hui & McFarlane, Adian, 2024. "A maximum entropy bootstrap approach to financial development and economic growth in China," Economic Systems, Elsevier, vol. 48(4).
    16. Chang, Xiaolu & Song, Zhipeng & Zhou, Tiansong, 2025. "Geopolitical risk and global supply chain resilience," Finance Research Letters, Elsevier, vol. 86(PD).
    17. Wang, Tianxiang & Huo, Peiyun, 2026. "Can trade policy uncertainty facilitate industrial chain localization?," Finance Research Letters, Elsevier, vol. 87(C).
    18. Dou, Jie & Su, Chi Wei & Li, Wenyu & Dou, Junfeng, 2025. "Green finance and artificial intelligence: Catalysts for promoting sustainability?," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 13-25.
    19. Wei Qiu & Yinghua Li & Haitao Wu, 2023. "The role of direct financing on regional green development: inhibition or promotion?," Economic Change and Restructuring, Springer, vol. 56(5), pages 3665-3699, October.
    20. Christophe Hurlin & Quentin Lajaunie & Yoann Pull, 2026. "Reverse Stress Testing Geopolitical Risk in Corporate Credit Portfolios: A Formal and Operational Framework," Papers 2601.03983, arXiv.org.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.