The study investigates whether changes in bank competition, efficiency, and risk-taking affect the profitability of Indian commercial banks during 1996-2016. While assessing the determinants of profitability, this study considers a wide range of bank-specific, macroeconomic, and institutional factors that explain the variations in bank profitability. Results estimated through the two-step system GMM

I develop a semi-automated method that systematically evaluates the information in FOMC meeting documents. This method highlights economic conditions and calculates document sentiment indices that proxy for the FOMC's interest rate tilt. I compare the sentiment indices of FOMC minutes and their corresponding FOMC statements. Using high-frequency data, I then examine how these sentiment indices are

We find that the value is created for acquirer shareholders in the mergers involving intangible capital transfer from targets to bidders; such value creation is positive and significant in the transfer of off-balance-sheet intangible capital and organizational capital as opposed to that of knowledge capital. Because the combined returns for bidders and targets are increasing in intangible capital transfer

This investigation analyzes the characteristics of the largest US wholesale electricity market’s production cost curve and supply curve during the most extreme winter weather event in modern meteorological history. The experience of this event demonstrates that the annual-summer-peak-centric nature of the Northeast US’ PJM capacity planning process does not address the adequacy of supply during the

This study analyzes whether mutual fund managers possess skill in timing stock market misvaluation. We find that managers successfully increase their market exposure when there is more systematic underpricing. Managers in the top misvaluation timing decile outperform ones in the bottom decile by approximately 3% per year. These results remain robust in the subperiod and exclusion of crisis periods

Since the introduction of the third Basel Accord (Basel III) in 2011, there have been debatable outcomes regarding the effects of increased regulatory capital on economic growth. We aim to add clarity to some of these debates by investigating one primary channel through which regulatory capital may affect economic growth, viz. credit extension to the private sector. We capture credit extension through

Recently, Digital Financial Advice Solutions (i.e., “Robo Advice” or “Robo Advisory”) are emerging rapidly within the financial services sectors, which can be outlined by the respective Assets under Managements’ CAGR of 255.9 % from 2016 to 2018 in Germany (Kaya, 2019). However, these developments imply both opportunities and threats for traditional financial institutions: On the one hand, potential

A title loan is a short- term subprime loan secured by the title of the borrower’s automobile. Upon repayment, the title is retrieved from the lender and the borrower retains the vehicle. In the event of default the lender keeps the title and takes possession of the automobile but has no further recourse if the sale of the auto does not satisfy the outstanding debt. In this paper the borrower’s repayment

This study uses data from firm surveys to present new findings on firms’ strategies for price/quality competition and on the relationship between competition strategy and various firm characteristics, including profitability and productivity. First, the results indicate that a relatively large number of firms adopt a quality competition strategy, particularly firms operating in the service industries

We investigate how universal banking groups utilized information advantage at the initial public offerings (IPOs) in Japan over the period 2002-2012. We focus on the IPO issues of universal bank clients allocated by underwriters from the issuers’ main bank groups, competing commercial bank groups, and traditional investment bank groups. We find that the main bank underwriters do not advantage their

Prior literature examines the effects of both macroeconomic uncertainty and cyclicality (how strongly a firm's earnings is tied to macroeconomic conditions) on management and analyst earnings forecasts. However, these studies consider macroeconomic uncertainty and cyclicality independently and find conflicting results. This study argues that macroeconomic uncertainty and cyclicality are inextricably

Merger and acquisition (M&A) have become a foremost strategic alliance for business, product and geographic tactics in global market. Using meta-literature review, we conduct a synthesis analysis on M&A to assess motives, methods, financing sources, announcement effects, cross-border competitions, success-failure, valuation issues, and business strategies. We review 155 recent and relevant papers preferably

This paper investigates the relative importance of microfinance institutions (MFIs) at both the macro (financial development, economic growth, income inequality, and poverty) and micro levels (efficiency of traditional commercial banks). We observe a significant impact on most of the fronts. MFIs’ participation increases overall savings (total bank deposits) and credit allocation (loans to private

This paper investigates the role of microeconomic and macroeconomic factors on Italian bank risk taking, paying particular attention on the differences between cooperative and non-cooperative banks. The non-performing loan ratio is used as dimension of bank risk taking. The data refer to a large sample of financial institutions covering the 2001−2014 period. We then assess whether the impact of microeconomic

This paper examines the time and frequency co-movement between sovereign credit ratings and economic risk for five Balkan countries, namely Bulgaria, Greece, Croatia, Romania, and Slovenia, during the 1999Q1 to 2018Q4 period. To the best of knowledge, this is the first study attempt to conduct this nexus. We measured the sovereign credit scores by using the ratings and outlooks of Standard & Poor's

In this paper, we use administrative data covering Mexico’s formal labor market to investigate the employment effects of the Great Lockdown (GL). Our results show that the COVID-19 pandemic and lockdown caused Mexico’s formal sector to contract by 5% by November of 2020. By August, men’s jobs started to recover, while women’s jobs remain stagnant. We then document heterogeneous effects by age, income

The novel coronavirus (COVID-19) exposed individuals to a great uncertainty about its health and economic ramifications, especially in the early days and weeks of the outbreak. This study documents oil and gasoline market implications of individuals’ behavior upon such uncertainty by analyzing the relationship between Google search queries related to COVID-19—information search that reflects one's

Children constitute an important demographic for marketers. Driven by their insatiable hunger for profits, marketers are recklessly and relentlessly targeting the children with their actions and promotions. However, there are growing concerns and widespread criticisms associated with marketing to children. With the arguments for and against marketing to children polarized to extremes, the assessment

The COVID-19 pandemic has inflicted an economic hardship unprecedented for the modern age. In this paper, we show that the health crisis and ensuing lockdown, came with an unseen shift in households’ economic sentiment. First, using a European dataset of country-level and regional internet searches, we document a substantial increase in people's business cycle related searches in the months following

Using U.S. Current Population Survey data, this paper compares the distributional impacts of the COVID-19 Pandemic Crisis and those of Global Financial Crisis in terms of (i) worker characteristics, (ii) job characteristics–“social” (where individuals interact to consume goods), “teleworkable” (where individuals have the option of working at home), and “essential” jobs (which were not subject to government

This paper evaluates and quantifies the short-term impact of the coronavirus disease of 2019 (COVID-19) on stock market performance in thirteen (13) African countries, using daily time series stock market data spanning 1st October 2019 to 30th June 2020. We employ a novel Bayesian structural time series approach (a state-space model) to estimate the relative effects of the COVID-19 pandemic on stock

The paper uses newly released Small Business Pulse Survey data on small business’ response to questions about overall COVID-19 impact, federal aid request, federal aid receipt, and subsequent changes in revenue and employee hours to evaluate the efficacy of three federal aid programs: Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL), and Small Business Administration (SBA) loan

We explore the effect of various factors on interstate differences in weekly unemployment insurance claims, focusing specifically on the determinants over the initial period of the pandemic in the U.S. We consider the effects of COVID-19 cases, state policies enacted in response to COVID-19, relevant provisions of Federal Coronavirus Aid, Relief and Economic Security (CARES) legislation, and the nature

Based on the supply of stock market returns hypothesis, we argue that the unprecedented adverse shock of COVID-19 on the countries’ economic growth translates into a negative shock to the stock markets. According to the institutional theory, we also argue that the impact of COVID-19 in emerging countries is different from developed countries. Based on the overreaction hypothesis, we expect that the

The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period

This paper examines the impacts of entry by Hainan Airlines (HA) to the U.S.-China air travel market, using user-reported data from Travelsuperlink.com. The sample consists of 15,773 round-trip economy-class fares for 39 routes purchased between 2010 and 2016. Our analysis indicates that, compared to other routes, the average airfare of the routes where HA entry occurs increases by up to 3.4 %. We

We explore the effect of home price appreciation on residential lending standards in the U.S. across different sample periods. Using housing supply elasticity measures as instrumental variables for home price changes, we find that rising home prices led to easing lending standards between 2001 and 2006. Mortgage acceptance rates increased more in MSAs that experienced higher home price appreciation

The pandemic of the COVID-19 virus originated from China in December 2019, and since then it has significantly affected the world’s economy and all sectors of life. This review will highlight the impact of COVID-19 on entrepreneurship. Due to preventive measures taken by governments to limit virus transmission, there was a prodigious disruption socially and economically to entrepreneurship, at different

ARTICLE DETAILS ABSTRACT History: Accepted: 08 May 2020 Available Online: 15 June 2020 This study examine the most debatable question of the last three decade, i.e., “Does the agriculture growth affect the economic growth?” with the use of annually data from 1966-to 2016. The study employed unit root and causality test suggested by the Dicky fuller, Phillips-Perron and Granger respectively. Besides