Asia’s financial ecosystems, while distinct from Western paradigms, remain underexplored. This study integrates cultural finance, regime-switching machine learning, and ESG asymmetries into a novel analytical framework tailored to Asia’s unique financial architecture. We develop three models: a Hybrid LSTM-GARCH for crisis forecasting, a Bayesian Structural Equation Model capturing informal institutional dynamics, and a machine learning-enhanced Difference-in-Differences model to assess ESG impacts. Theoretically, we propose the Cultural-Statistical Nexus Framework, embedding sociocultural variables into predictive finance, the concept of institutional plasticity to explain regulatory divergence, and ESG Arbitrage Theory to highlight sustainability’s dual role as risk mitigator and speculative signal. Empirically, Confucian Risk Aversion reduces corporate leverage by 15 percent, ESG adoption lowers systemic risk but increases greenwashing, and hybrid models outperform conventional tools in FX crisis prediction. Practical implications include cultural-risk-adjusted capital buffers, AI-based liquidity tools, and region-specific ESG strategies, advancing a globally inclusive paradigm of financial science.
Publication Information
Publisher
Thu Dau Mot University, Viet Nam
Editor-in-Chief
Assoc. Prof. Nguyen Van Hiep Thu Dau Mot University
Editorial Board
Assoc. Prof. Le Tuan Anh Thu Dau Mot University
PhD. Nguyen Quoc Cuong Thu Dau Mot University
PhD. Doan Ngoc Xuan Thu Dau Mot University
PhD. Nguyen Khoa Truong An Thu Dau Mot University
Assoc. Prof. Nguyen Thanh Binh Thu Dau Mot University
PhD. Le Thi Thuy Dung Thu Dau Mot University
PhD. Ngo Hong Diep Thu Dau Mot University
PhD. Nguyen Duc Dat Duc Ho Chi Minh City University of Industry and Trade
Assoc. Prof. Nguyen Van Duc Animal Husbandry Association of Vietnam
PhD. Nguyen Thi Nhat Hang Department of Education and Training of Binh Duong Province
PhD. Nguyen Thi Cam Le Vietnam Aviation Academy
PhD. Trần Hạnh Minh Phương Thu Dau Mot University
M.A. Pham Van Thinh Thu Dau Mot University
PhD. Nguyen Thi Lien Thuong Thu Dau Mot University