样式: 排序: IF: - GO 导出 标记为已读
-
Moderating effect of capital structure on the relationship between corporate governance mechanisms and firm value: Evidence from India Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-03-03 Vibha Tripathi, John W. Goodell, Vinodh Madhavan, Satish Kumar
While corporate misconducts highlight the need for effective corporate governance mechanisms, the degree to which such mechanisms impact firm value is unsettled in literature. We argue that board-centered mechanisms may appear impeded in isolation, as firm capital structure moderates the relationship between corporate governance mechanisms and firm value. We employ fixed effect panel models and GMM
-
Fostering fintech innovation: A tripartite evolutionary game analysis of regulatory sandbox experiments Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-03-02 Yulu Zheng, Xiaoli Wu
The rapid integration of next-gen information technologies in finance has spurred FinTech innovation, posing challenges to regulation. Regulatory sandboxes are pivotal for fostering innovation. This study employs a FinTech innovation regulatory sandbox to analyze a tripartite evolutionary game involving government, FinTech enterprises, and the public. It examines strategic choices, equilibrium points
-
The role of foreign direct investment in east and Southeast Asia: Evidence before and after 2009 global financial crisis Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-03-01 Yi-Chia Wang, Meng-Wei Chen
This research investigates the influence of Foreign Direct Investment (FDI), domestic physical stock, and the human capital index on labor productivity across 17 East and Southeast Asian economies. In the period from 1980 to 2009 (pre-global financial crisis), the study reveals that, initially, FDI stock independently contributes little to productivity. It underscores the necessity of specific human
-
Volatility transmission between upstream and midstream energy sectors Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-28 Bradley T. Ewing, Farooq Malik, James E. Payne
This research studies volatility dynamics of the returns to upstream (exploration and production) and midstream (pipeline and storage) energy (oil and gas) sectors over time and across sectors. We find significant structural breaks in volatility of upstream sector returns possibly triggered by major events, while no breaks are detected in the midstream sector. These results indicate the midstream sector
-
Dynamic game analysis of E-commerce platform rewards and research & development investment of settled enterprises Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-28 Zhiyun Sheng, Ningning Ni
Contributing to the literature on the E-commerce platform governance, this paper analyzes the e-commerce platform's optimal reward strategy and settled enterprises' optimal Research & Development (R&D) investment decision with different R&D patterns. The results indicate that the platform's rewards can increase settled enterprises' R&D investment and overall benefit of the ecosystem. Under R&D competition
-
Spillovers and hedging effectiveness between islamic cryptocurrency and metal markets: Evidence from the COVID-19 outbreak Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-27 Imran Yousaf, Shoaib Ali, Mohamed Marei, Mariya Gubareva
This study investigates the static and dynamic interdependence of the Islamic cryptocurrency and metal markets using the TVP-VAR methodology. The empirical findings suggest that Islamic cryptocurrencies are the recipients of both return and volatility spillovers, while most metals act as transmitters of these spillovers. The dynamic spillovers are intensified in the COVID-19 period compared to the
-
The relationship between bureaucratic corruption and financial crisis in an open economy Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-27 Chiou-Wen Chen
This paper contributes to that debate via a novel examination of the relationships among bureaucratic corruption, growth, and financial crisis in an open economy, using a two-period small open economy model. The outcome shows that the uncertainties created by corruption in such an economy constitute a double-edged sword. That is, when the economy is prosperous, corruption can ‘grease’ the economic
-
Banking sector reforms in a challenging environment: An emerging financial market experience Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-26 Yaseen Ghulam, Kamini Dhruva
The long-lasting impact of reforms on financial institutions in the presence of country level risks and uncertainties may be unclear but has been rarely investigated. By using more than two decades of Pakistani banking industry data covering a period of uncertain policies and volatile political and economic environment alongside severe security threats due to terrorism, this study examines technical
-
A multi-dimensional assessment of the accuracy of analyst target prices Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-24 Ying-I Lee, Wen-Liang Hsieh, Daniel Wei-Chung Miao
This paper provides the first assessment for the quality of analyst target forecasts within an emerging market. We find that analysts' target forecasts tend to commit systematically upward bias (9.4%), large absolute pricing error (24.8%), over-prediction of the actual price changes (21%), and a low proportion (54%) of correct directional forecasts. The forecasting quality decays over time as the information
-
Stock returns and monetary policy stance Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-23 Bosung Jang, Inhwan So
This paper investigates the structural relationships between monetary policy and stock returns. We build an asset pricing model incorporating a standard Taylor rule into a consumption-CAPM framework. Our model quantitatively explains the negative risk premium of expansionary monetary policy. As monetary policy plays a role of insurance, (expansionary) monetary policy beta is negatively related to covariances
-
Stock market and inequality distributions – Evidence from the BRICS and G7 countries.1 Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-23 Dong Quang Dang, Weiou Wu, Ioannis Korkos
By examining the effects of three stock market indicators (market accessibility, efficiency, and stability) on income and wealth inequality in the BRICS and G7 countries, this study enriches lacking literature on income and wealth inequality, particularly for the BRICS countries. We apply the Autoregressive Distributed Lag–Mixed Data Sampling (ADL-MIDAS) model. We find that only enhancements in market
-
-
Risk-averse corporate investment behavior and the effectiveness of quantitative easing Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-22 Ying Wu
This paper analyzes how risk-averse investment behavior in a liquidity trap can render quantitative easing ineffective under certain circumstances. For risk-averse firms that could lever either a risky investment project or a riskless alternative, I show that the real interest rate responsiveness of a relative net investment return causes both the interest-rate sensitivity of investment and the slope
-
Is managerial myopia detrimental to corporate ESG performance? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-20 Zheng Lu, Yanzi Liang, Yanglin Hu, Yang Liu
-
The bright side of social trust and entrepreneurial finance Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-20 Min Maung
A growing number of studies in the past two decades suggest that social trust matters for financing. However, a few recent studies also indicate that social trust may result in systemic biases and opportunistic behavior. First, we show that trust is important for several types of entrepreneurial financing. Second, our results reveal that trust plays an essential role in start-up financing in places
-
Inter-industry network and credit risk Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-20 Mu-Nan Huang, Han-Hsing Lee
As previous literature has documented cross-industry returns and tail risk predictability, especially during a financial crisis, this research investigates the effects of industries' position within an economy, inter-industry connectedness, and industry returns on credit risk using a reduced-form approach. We employ an aggregate measure of tail risk emitted from an industry to capture its outgoing
-
Does managerial pay disparity influence BHC default risk? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-19 Searat Ali, Jamshed Iqbal, Ihtisham Malik, Dewan Rahman
-
Role of foreign banks entry in promoting financial inclusion “A time series analysis of five permanent members of UN security council” Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-19 Amjad Ali, Ahsan Ali, Suresh Kumar Oad Rajput
-
The impact of big data tax collection and management on inefficient investment of enterprises — A quasi-natural experiment based on the golden tax project III Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-19 Yixuan Guo, Jian Wang, Heng Wang, Fan Zhang
The Golden Tax Project is an important innovation in China's tax collection and management. Taking Golden Tax Project III as a quasi-natural experiment through DID model, we study the impact of big data tax administration on the enterprises' inefficient investment. The results indicate that big data tax administration can effectively reduce the enterprises' inefficient investment, particularly in areas
-
Debt crises between a country and an international lender as a two-period game Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-19 Kjell Hausken, Jonathan W. Welburn
A two-period game between a country and an international lender is developed. In each period the country can repay debt, borrow from international credit markets, loan from an international lender, or default. The international lender can approve or deny the loan. The risk averse country maximizes a time-discounted utility incorporating its consumption. The international lender maximizes a time-discounted
-
Internal versus external capital markets and risk-taking Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-19 Ching-Yuan Hsiao, Yung-Ming Shiu
We examine the effects of internal capital transfer and external capital issuance on asset risk-taking using a database containing detailed information on capital. Consistent with capital buffer theory, we find that external capital issuance is positively related to risk-taking adjustment. We also find that the funds received via internal capital transfers are negatively related to risk-taking adjustment
-
Foreign knowledge sources and innovation: Differences across large and small and medium-size multinational enterprises (MNEs) Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-18 María Jesús Rodríguez-Gulías, Sara Fernández-López, David Rodeiro-Pazos
Multinational enterprises (MNEs) can take advantage of cross-border knowledge sourcing and internationalisation spillovers. Nevertheless, the influence of these two foreign knowledge sources on innovation has been scarcely analysed in the MNEs. The purpose of this paper is three-fold. First, to apply multilevel modelling in the study of MNEs' innovation. Second, to analyse how the region's foreign
-
Exogenous oil supply shocks and global agricultural commodity prices: The role of biofuels Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-17 Yanfeng Wei, Feng Qiu, Henry An, Xindon Zhang, Changhong Li, Xiaoying Guo
Using quarterly data ranging from 1986Q1 to 2019Q4, this paper identifies an oil supply shock that is exogenous to global real economic activity in the impact quarter based on the proxy structural vector autoregressions (SVAR). Then, the impact of this shock on global agricultural commodity prices is examined, with a particular focus on the role of biofuels in distributing the impact of this shock
-
Does unionization reduce wage inequality? New evidence from business dynamism Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-16 Chi-Chur Chao, Mong Shan Ee
Incorporating the business-dynamism effect, this paper examines distribution and welfare effects of labor unions. An increase in unionization can raise the unskilled wage rate and lower the skilled wage rate in the economy, and wage inequality can be further reduced by the business-dynamism effect of firm exit. Nonetheless, the inequality-reducing role might be mitigated by the delay of firm exit caused
-
A sustainable pandemic response: The impact of COVID-19 vaccination coverage on economic policy uncertainty Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-15 Shi Li, Meng Li, Rongsha Fu
The rise in Economic Policy Uncertainty (EPU) is a manifestation of the unsustainability of response policies to COVID-19. We used panel data from 21 countries to investigate the impact of COVID-19 vaccination coverage on EPU. The results showed that vaccination significantly reduced the EPU. Reducing the spread of the pandemic was not the mechanism. Further analysis indicated that the active response
-
Interdependence and spillovers between big oil companies and regional and global energy equity markets Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-14 Waqas Hanif, Jose Arreola Hernandez, Sang Hoon Kang, Gideon Boako, Seong-Min Yoon
We examine spillovers and nonlinear dependence dynamics between big oil supermajors and regional and global energy equity markets. We derive our empirical results by fitting a directional spillover index, a conditional value-at-risk (CoVaR) method, and time-varying parameter copulas. Spillover index results indicate that big oil supermajors most largely spillover to the EU energy equity sector than
-
Optimal local content requirement under export share requirement consideration Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Chih-Ming Hung, Yungho Weng
This paper considers a Cournot model with a local content requirement and export share requirement. The analysis investigates the conditions under which the local content requirement may promote an intermediate industry and explores the optimal local content requirement and the key factors that affect it. The results show that while a small local content requirement has a promotion effect when it is
-
Bitcoin halving and the integration of cryptocurrency and forex markets: An analysis of the higher-order moment spillovers Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Inés Jiménez, Andrés Mora-Valencia, Javier Perote
This paper introduces a flexible semi-nonparametric model, the so-called SNP-VSK model, to analyze the higher-order moment interactions among cryptocurrencies and the forex markets, i.e., accounting for conditional volatility, skewness, and kurtosis spillovers. These transmissions among cryptos are identified considering Bitcoin halving as a factor of price uncertainty. To study the degree of integration
-
Default risk and stock returns: From a perspective of measurement errors Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Xiaolou Yang, Yingyao Hu
-
Epidemics, local institutional quality, and corporate cash holdings Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Xiaodan Li, Zikui Pan, Kung-Cheng Ho, Yu Bo
The increase in corporate cash holdings, particularly in the U.S., has garnered significant attention from academia, the popular press, and policymakers. While most existing studies explain this trend using endogenous microeconomic measures, there is limited empirical evidence of what may have caused corporate cash holdings to decrease. From a macroeconomic perspective, this study provides the first
-
Globalisation and governance: Thresholds for the impacts of the main determinants of capital inflows? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Erdal Özmen, Fatma Taşdemir
This paper investigates whether the impacts of the main push (global financial conditions, GFC) and pull (growth) factors on capital inflows are invariant to endogenously estimated threshold levels for structural domestic conditions (SDC) represented by governance, trade openness, international financial integration and financial openness in emerging market and developing economies. Our results strongly
-
Is the Korean green premium in equilibrium? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-13 Yunsung Eom, Young Dae Kang, Wook Sohn
This study examines the Green premium in the Korean stock market using the two-factor equilibrium model developed by Pástor, Stambaugh, and Taylor (2021), which consists of the Market and Green factors. From 2012 to 2020, the Green factor premium in the Korean stock market is estimated to be negative, with a monthly average of −0.23%. This finding aligns with the expectations of the equilibrium model
-
Whether green credit is effecitve: a study based on stock market Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-12 Boqiang Lin, Ting Pan
Many environmental policies have achieved good pollution control results by using a financial market approach, but whether or not an effective green credit policy can play an effective role in the financial market has not been proved. Due to the information asymmetry problem which exists between investors and enterprises in the financial market, and the “Green Credit Guidelines” outlined in 2012, this
-
Fiscal policy volatility and growth in emerging markets and developing economies Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-10 Francisco Arroyo Marioli, Antonio Fatas, Garima Vasishtha
This paper studies the volatility of fiscal policy in a large sample of countries with a focus on emerging markets and developing economies and commodity exporters over 1990–2021. The findings show that fiscal policy has been more volatile in emerging markets and developing economies than in advanced economies, and in commodity exporters relative to non-commodity exporters over this period. The degree
-
Are stablecoins better safe havens or hedges against global stock markets than other assets? Comparative analysis during the COVID-19 pandemic Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-09 Jingyu Feng, Ying Yuan, Mingxuan Jiang
This paper examines whether stablecoins act as diversifiers, hedges or safe havens against global stock markets during the COVID-19 pandemic, leveraging the DCC-GARCH model and dummy variable regression. In addition, we examine the dynamics of stablecoins' safe haven ability during the COVID-19 pandemic and diverse stages of the COVID-19 pandemic's development, and compare it with two traditional safe
-
Lump-sum tax or flat income tax? Welfare implications of taxation policy in the presence of social comparison Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-09 Shaoan Huang, Jaimie W. Lien, Siqun Yang, Jie Zheng
How should the government design a welfare-optimizing taxation policy in the scenario that individuals’ utility is reference-dependent, determined in part by comparison between others’ consumption and their own? Such socially reference-dependent utility tends to yield lower social welfare, since workers must increase their labor supply to support consumption which is partially ‘neutralized’ in their
-
Bond market reform and investors' risk awareness: Evidence from the issuing pricing of corporate bonds in China Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-09 Chenyang Yu, Yan Lu, Changluan Fu
In January 2015, the administrative measures for issuance and trading of corporate bonds (hereinafter referred to as the administrative measures) established the rudiment of "registration system" for issuance of corporate bonds in China. Through empirical tests, this paper finds that the promulgation of the administrative measures has a significant impact on the credit spread of corporate bonds issuance
-
Asymmetric spillover effects in energy markets Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-08 Aviral Kumar Tiwari, Emmanuel Joel Aikins Abakah, Buhari Doğan, Oluwasegun B. Adekoya, Mark Wohar
This paper explores the asymmetric relationship between clean and dirty energy markets. The study uses the time-varying and frequency-domain spillover approaches of Diebold and Yilmaz (2012) and Baruník and Krehlik (2018) respectively, while accounting for asymmetries. We use natural gas, gasoline, gas oil, heating oil, crude oil, coal, petroleum, kerosene, propane, and diesel to denote dirty energy
-
Commodities and Policy Uncertainty Channel(s) Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-08 K. Smimou, D. Bosch, G. Filbeck
Based on a proposed linked theoretical model, this study dissects the of policy uncertainty on commodity futures contracts pertinent commodity equity sectors. Within an framework, we elucidate the dynamic relationship between these groups of assets while allowing for policy uncertainty shock. Findings show that commodity hedgers altered trading positions in metals in response to a high policy uncertainty
-
Determinants of the price of bitcoin: An analysis with machine learning and interpretability techniques Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-08 José Manuel Carbó, Sergio Gorjón
In this paper we investigate the variables that influence the trading price of bitcoin. Utilizing a Long Short-Term Memory (LSTM) neural network, a flexible machine learning model, we determine bitcoin's price based on various economic, technological, and investor attention factors. The LSTM model replicates bitcoin price behavior reasonably well across different time periods. We then employ the SHAP
-
The time-varying and asymmetric impacts of oil price shocks on geopolitical risk Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-31 Zhifang He, Hao Sun
This paper explores whether and how three different types of oil price shocks, including the oil supply shock (OSS), aggregate demand shock (ADS), and oil-specific demand shock (ODS), affect geopolitical risk (GPR). Specifically, according to Granger causality tests, we find that changes in OSS and ODS can cause changes in GPR in a linear or nonlinear way, while ADS cannot significantly affect GPR
-
Central bank intervention and financial bubbles Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-05 Danilo Lopomo Beteto Wegner
This paper develops a model to study the impact on asset prices arising from central bank intervention during bubble bursts. In particular, we explore how investors react to a policy whereby the central bank decreases interest rates to alleviate market crashes or significant price reversals. We show that the possibility of central bank intervention creates incentives for investors to inflate asset
-
Detecting and date-stamping bubbles in fan tokens Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-02-01 Ata Assaf, Ender Demir, Oguz Ersan
We focus on the existence of bubbles in fan tokens, utilizing the Supremum Augmented Dickey-Fuller (SADF) and Generalized Supremum Augmented Dickey-Fuller (GSADF) tests. We use daily closing prices of the top 20 fan tokens according to their market capitalization, along with Bitcoin, Ethereum, and Chiliz. The evidence from the GSADF test results indicates that the prices of 13 out of 20 fan tokens
-
Do shipping freight markets impact commodity markets? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-31 Aviral Kumar Tiwari, Emmanuel Joel Aikins Abakah, Nader Trabelsi, Mark Wohar
The Baltic Dry Index (BDI) is mostly perceived as the leading indicator of shipping freight market and economic activity. In this study, we investigate the dependence structure and distributional predictability between BDI and nineteen major commodity investable indices to offer insights on the predictive ability of BDI for commodity assets. In addition, we explore the effects of policy uncertainty
-
Measuring spatial impacts and tracking cross-border risk Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-30 Bo Wang, Yang Xiao
Using a dynamic spatial model, this paper studies the cross-countries risk contagion of stock markets during the pandemic outbreak and Ukraine-Russia conflict. We adopt five channels for modeling spatial interdependency between markets and measure short- and long-term impacts. The estimated results show that a change of COVID-19 or the conflict in one market has a negative impact on other markets.
-
Do defined contribution plans create value for shareholders? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-27 Neeru Chaudhry, Rohit Kattamuri
The enactment of the Employee Retirement Income Security Act of 1974 led many firms to stop offering defined benefit pension plans to employees and replacing them with defined contribution plans. Even though the number of firms offering DC plans are on rise worldwide, literature on how DC plans affect corporate behavior is sparse. This study is the first to examine whether defined contribution (DC)
-
Central banks and climate risks: Where we are and where we are going? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-29 R. Carè, R. Fatima, I.A. Boitan
The role of central banks in addressing the emerging challenges posed by climate change has garnered significant attention from practitioners and academics alike. Through meticulous bibliometric analysis, this article reveals the fundamental themes and dynamic trends within this research field. Simultaneously, it outlines a comprehensive array of potential future directions. This study represents the
-
Does climate governance moderate the relationship between ESG reporting and firm value? Empirical evidence from India Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-28 Geeti Mishra, Archana Patro, Aviral Kumar Tiwari
Climate governance is an integral part of Environment, Social and Governance (ESG) and contributes to a firm's value by reducing risks, identifying opportunities, enhancing stakeholder relations, and promoting long-term sustainability. Firms that effectively integrate climate considerations into their governance structures are better positioned to thrive in a changing business landscape, ultimately
-
Performance of financial hedging and earnings management under diverse corporate information quality Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-27 Chin-Wen Hsin, Feng-Yi Chang, Shin-Rong Shiah-Hou
Firm managers may choose accruals management (AM) or financial hedging with derivatives (FD) as risk management tools. This study simultaneously considers both tools and tests whether corporate information quality regulates the value effect derived from AM or FD. Our evidence finds that AM practices add values to those firms with quality corporate information. This could be explained by i) the greater
-
Size, value and volatility Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-27 Stanley Peterburgsky
We examine the relationship between total stock market risk and the returns on several long-short portfolios that have been widely regarded as priced risk factors in much of prior literature. We find that shocks to implied volatility and to expected realized volatility are related to the returns on the size and value portfolios in a way that is consistent with a straightforward risk-based interpretation
-
Does inflation targeting matter for price stability? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-25 Minjie Guo, Eun-Son Lim
Since New Zealand embraced Inflation Targeting (IT) as a monetary policy in 1990, numerous countries have followed suit. The inherent high accountability and transparency associated with central banks operating under an IT policy are anticipated to facilitate the attainment of price stability. This study aims to investigate the potential positive impact of IT policy on price stability by examining
-
Centralized and decentralized lending: Implications of consolidation in the German banking industry Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-24 Danilo Lopomo Beteto Wegner
This paper addresses the implications of the consolidation of the German banking industry in regard to the operation of savings banks. Savings banks are one of the pillars of the Germany’s banking system and the main providers of loans to small and medium firms that are the predominant drivers of German’s economy. We develop a theoretical model showing that, by changing the organizational structure
-
The optimal strategies of competitive high-frequency traders and effects on market liquidity Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-26 Hengshun Ge, Haijun Yang, John A. Doukas
This paper proposes a theoretical model of the competition among high-frequency traders and its impact on market liquidity. First, the optimal strategies of high-frequency market-makers and corresponding effects are explored. Then two-sided quotes and high-frequency speculators are introduced to enrich our model. Furthermore, we calculate the equilibrium in steady-state and analyze parameters in the
-
Do corporate credit spreads predict the real economy? Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-22 Ujjal Kanti Chatterjee, Flavio Bazzana
We evaluate whether corporate credit-spreads measures contain predictive information about the real U.S. economy in a comprehensive specification that includes financial sectors’ profitability, stock and bond market. We find that corporate credit spreads contain no predictive information about U.S. real GDP or consumption and that corporate credit spreads have minimal information about forthcoming
-
Connectedness between (un)conventional monetary policy and islamic and advanced equity markets: A returns and volatility spillover analysis Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-20 Sun-Yong Choi, Andrew Phiri, Tamara Teplova, Zaghum Umar
Using the spillover index, we investigated the relationship between Islamic equity markets and unconventional monetary policy(UMP) in five advanced economies. We documented that the spillovers among equity markets (“intraconnectedness”) are stronger than the spillovers among equity markets and monetary policy (“interconnectedness”), based on a static analysis of both returns and volatility. Second
-
The stabilizing effect of government guarantees in real economy investment: Evidence from China Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-20 Ke Zhang, Xujun Zhang, Lingyun Xiong, Bin Rao
This study examines how government guarantees affect the relationship between economic policy uncertainty and corporate investment for Chinese A-share listed companies covering 2012–2019. We find that government guarantees significantly weaken the inhibitory effect of economic policy uncertainty on firms' investment by changing the risk expectations of firms and banks. Mechanism tests show that this
-
Digital technology, e-commerce, and economic inequality: The case of China Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-20 Nian Liu, Yihe Qian, Xinhua Gu, Guoqiang Li
This paper examines economic inequality through digital facilitated e-commerce as a new perspective. Digital development is good for output production, which can attenuate regional income inequality in China. Falling search costs with e-commerce technological progress boost more online search for better price discounts. The resulting increase in spending propensities is higher in remoter, poorer, or
-
Crafting monetary policy beyond low carbon legacy Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-25 Olatunji A. Shobande, Lawrence Ogbeifun, Nicholas Apergis
Are monetary policy and financial development important prerequisities for realising a low carbon economy? The answer is yes, but this work argues that its importance rests on different associated mechanisms. We test this assertion by using a panel of 24 OECD countries, spanning the period 2000–2019. The analysis is framed in four empirical strategies. The first method involves employing standard panel
-
Social interactions in short squeeze scenarios Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-24 Max Suchanek
This paper studies the relationship between the intent dimension of social media postings and stock metrics such as trading volume and returns. Thereby, the paper contributes to the literature that studies the short squeeze phenomenon around GameStop focusing on textual sentiment. I use data from December 2020 to September 2021 and a vector autoregression model framework to study the connection between
-
The relationship between cryptocurrencies and convention financial market: Dynamic causality test and time-varying influence Int. Rev. Econ. Financ. (IF 3.399) Pub Date : 2024-01-24 Linxian Huang
This paper examines the dynamic causal effect of financial markets on cryptocurrencies from a return perspective by applying the dynamic asymmetric causality tests. Applying daily data from February 1, 2018, to August 31, 2023, this paper also investigates whether the major events, such as COVID-19 or the categories of cryptocurrency, will alter or intensify the existing relationship. The empirical