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
Honorary Editor-in-Chief and Chairman of the Editorial Board
Assoc. Prof. Nguyen Van Hiep
Deputy Editor-in-Chief
PhD. Trần Hạnh Minh Phương Thu Dau Mot University
Editorial Board
Prof. Tran Van Doan Fujen University, Taiwan
Prof. Zafar Uddin Ahmed Vietnam National University Ho Chi Minh City
Prof.Dr. Phillip G.Cerny The University of Manchester, United Kingdom
Prof. Ngo Van Le University of Social Sciences and Humanities (VNU-HCM)
Prof. Bui The Cuong Southern Institute of Social Sciences
Prof. Le Quang Tri Can Tho University
Assoc. Prof. Nguyen Van Duc Animal Husbandry Association of Vietnam
Assoc. Prof. Ted Yuchung Liu National Pingtung University, Taiwan
PhD. Anita Doraisami Economics Monash University, Australia
Prof. Dr. Andrew Seddon Asia Pacific University of Technology & innovation (APU)
Assoc. Prof. Le Tuan Anh Thu Dau Mot University
Prof. Abtar Darshan Singh Asia Pacific University, Malaysia
Prof.Dr. Ron W.Edwards The University of Melbourne, Australia
Assoc. Prof. Hoang Xuan Nien Thu Dau Mot University
PhD. Nguyen Duc Nghia Vietnam National University Ho Chi Minh City
PhD. Bao Dat Monash University (Australia)
PhD. Raqib Chowdhury Monash University (Australia)
PhD. Nguyen Hoang Tuan Thu Dau Mot University
PhD. Nguyen Thi Lien Thuong Thu Dau Mot University