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Int. J. Financial Stud., Volume 10, Issue 3 (September 2022) – 36 articles

Cover Story (view full-size image): This study sets out to explore the impacts of the Russian-Ukrainian conflict on worldwide financial markets by considering a large array of national currencies, precious metals and fuel, agricultural commodities and cryptocurrencies. The Chinese yuan, gold, corn, soybeans, sugar and Bitcoin prove to be safe haven investments while the Japanese yen, natural gas, wheat and the combination of Bitcoin and Ethereum offer profit opportunities for risk-seekers. Overall, high risk appetite does not result in large improvement in portfolios’ returns. This study sheds light on investors’ optimal decision making during elevated geopolitical uncertainties and provides a compass for improving welfare. View this paper
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15 pages, 329 KiB  
Article
On the Role of Gender and Age in the Use of Digital Financial Services in Zimbabwe
by Richard Chamboko
Int. J. Financial Stud. 2022, 10(3), 82; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030082 - 19 Sep 2022
Cited by 4 | Viewed by 2956
Abstract
Women and youth in developing countries remain unserved or underserved by formal financial services. The rise of digital financial services (DFS), including mobile money, provides a promise to accelerate financial and economic inclusion to these population segments. As a result, both academic researchers [...] Read more.
Women and youth in developing countries remain unserved or underserved by formal financial services. The rise of digital financial services (DFS), including mobile money, provides a promise to accelerate financial and economic inclusion to these population segments. As a result, both academic researchers and policy makers are increasingly interested in understanding the role of gender and age in the use of DFS across use cases. To nuance this, the current study analyses data from a sample of 3000 respondents collected during the second quarter of 2022 from the ten provinces of Zimbabwe. Results from multivariate logit models, controlling for some socio-economic factors, show that in Zimbabwe, gender is not a significant predictor of receiving income through digital means, making payments for goods and services digitally, or for the frequency of DFS use. On the other hand, youth lag in the use of DFS, especially for making payments for goods and services, and in the frequency of use. Besides the findings on gender and age, the study reveals that the level of education, the source of income, locality, and the level of income are important determinants of how individuals use DFS in Zimbabwe. Full article
(This article belongs to the Special Issue Digital Financial Inclusion)
19 pages, 1026 KiB  
Article
The Financial/Accounting Impact of FFP on Participating in European Competitions: An Analysis of the Spanish League
by Alberto Calahorro-López, Melinda Ratkai and Julio Vena-Oya
Int. J. Financial Stud. 2022, 10(3), 81; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030081 - 16 Sep 2022
Cited by 1 | Viewed by 3895
Abstract
This paper analyses the impact of Financial Fair Play (FFP) on clubs’ finances and on the relationship between them and clubs’ sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs’ own annual accounts, published [...] Read more.
This paper analyses the impact of Financial Fair Play (FFP) on clubs’ finances and on the relationship between them and clubs’ sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs’ own annual accounts, published from 2004 to 2019, are analysed, and the Mann–Whitney test is used to describe which differences are significant. The objective is threefold: firstly, we describe the financial/accounting structures of Spanish league football clubs, showing how both their financial statements and ratios have evolved after the application of this law, providing evidence of whether FFP is an adequate tool to guarantee the long-term viability and sustainability of football clubs, as intended by the UEFA. Secondly, we show the relationship between financial/accounting performance and sporting results. Thirdly, the paper looks at whether FFP has impacted the gap between the top clubs and the rest. The results show that, after the implementation of FFP, clubs’ financial/accounting health has improved, and a change in their efficiency in this regard can be observed. Although FFP is a tool that achieves the objective for which it was created, the possibility that the gap between the elite clubs and the rest may be increasing should not be ignored. Full article
(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)
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15 pages, 286 KiB  
Article
Impacts of Insurers’ Financial Insolvency on Non-Life Insurance Companies’ Profitability: Evidence from Bangladesh
by Md. Nur Alam Siddik, Md. Emran Hosen, Md. Firoze Miah, Sajal Kabiraj, Shanmugan Joghee and Swamynathan Ramakrishnan
Int. J. Financial Stud. 2022, 10(3), 80; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030080 - 15 Sep 2022
Cited by 3 | Viewed by 2793
Abstract
A stable and healthy insurance industry plays a vital role in sustaining an economy resistant to economic shocks by providing an efficient risk-transition mechanism. There is a relative scarcity of research inspecting the impact of insurers’ financial insolvency on the profitability of insurance [...] Read more.
A stable and healthy insurance industry plays a vital role in sustaining an economy resistant to economic shocks by providing an efficient risk-transition mechanism. There is a relative scarcity of research inspecting the impact of insurers’ financial insolvency on the profitability of insurance firms. Employing 2011–2019 panel data of 16 non-life insurance companies operating in Bangladesh, this research endeavors to examine the impacts of insurers’ financial insolvency on the profitability of insurance companies measured by return ratios, return on assets (ROA), and return on equity (ROE). Fixed-effect regression outcome implies that insurers’ financial insolvency has a significant adverse influence on non-life insurance companies’ profitability. Further findings indicate that financial leverage, technical provision, age, and inflation have a noteworthy adverse influence on profitability. The outcomes of this research are of greater significance for policymakers in tackling insolvency and formulating policies to boost the growth of insurance profitability. In addition, this study aims to serve as a benchmark for other countries’ insurance industries to emulate recovery strategies from financial insolvency. Full article
26 pages, 4916 KiB  
Article
From White Collar to Influencer Marketing? How Banks Can Reach Young Customers
by Nicole Walzhofer, Marcus Riekeberg and Florian Follert
Int. J. Financial Stud. 2022, 10(3), 79; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030079 - 09 Sep 2022
Cited by 3 | Viewed by 2972
Abstract
Banks distribute intangible services, so that traditional marketing instruments are often limited concerning their effectiveness to reach new clients, especially teenagers and young adults. With respect to this relevant practical problem, we used survey data for the relevant group (n = 302) [...] Read more.
Banks distribute intangible services, so that traditional marketing instruments are often limited concerning their effectiveness to reach new clients, especially teenagers and young adults. With respect to this relevant practical problem, we used survey data for the relevant group (n = 302) in Austria to investigate whether influencer marketing could be a banking strategy to reach the young generation. Due to the particular complexity of a financial product, we assume that the credibility and trustworthiness of an influencer can lead to respondents being more willing to engage with financial products. Based on our survey results, we can provide first evidence that influencer marketing also has untapped potential for banks. Although our respondents revealed a certain skepticism towards this form of marketing, the results indicate a weak positive correlation between influencer marketing, customer engagement with the subject of financial products and ultimately the purchase of financial products. In this respect, our results are of particular interest to decision-makers in banks. However, they are also relevant for the whole of society. If influencer marketing works for financial products, then other topics that are particularly sensitive, e.g., health care, could be addressed accordingly. Full article
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16 pages, 999 KiB  
Article
Recurring Rural Destination Sport Events: A Study on Participants’ Direct Spending
by Eugenia Tzoumaka, Stella Leivadi and Kyriaki (Kiki) Kaplanidou
Int. J. Financial Stud. 2022, 10(3), 78; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030078 - 07 Sep 2022
Cited by 1 | Viewed by 2053
Abstract
The current study explores direct spending profiles of sport event tourists in a very small rural destination as an alternative to the multiplier effect economic impact studies. Sport event tourism has been used as an economic engine tool by a variety of destination [...] Read more.
The current study explores direct spending profiles of sport event tourists in a very small rural destination as an alternative to the multiplier effect economic impact studies. Sport event tourism has been used as an economic engine tool by a variety of destination sizes but has been neglected for small rural destinations, where people arrive from various distance radiuses to participate in this central activity for the place. Data were collected from participants at a small-scale recurring mountain running event. An online survey instrument was sent to the participants after the event. Participants reported on their daily and total expenditures regarding accommodation, meals and other tourist spending. The results revealed that the participants who responded to the survey spent on average about EUR 163 for accommodation, EUR 205 for meals and about EUR 38 for other tourist spending, such as souvenirs. Respondents from closer radius, spent less on average, approximately EUR 156, EUR 383 and EUR 26 for the respective spending categories. Rural destinations counting on hosting sport events for economic boosts in poorly economic areas witness considerable financial gains for the regions via the estimation of the more feasible direct spending calculations. Full article
(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)
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18 pages, 608 KiB  
Article
Unravelling Factors Influencing Firm Performance: Evidence from the SMEs in Tourism Industry
by Sarminah Samad
Int. J. Financial Stud. 2022, 10(3), 77; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030077 - 07 Sep 2022
Cited by 4 | Viewed by 3048
Abstract
The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country’s national GNP, including the tourism industry. The question is whether the influencing factors for [...] Read more.
The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country’s national GNP, including the tourism industry. The question is whether the influencing factors for firms involved in the tourism industry, especially in developing countries, ensure their future survival. The main aim of this paper is to examine the role of internal resources and external environmental factors on the firm performance of small–medium enterprises (SMEs) in the tourism industry, with a specific focus on SME hotels. Based on a survey carried out among hotel owners or key managerial staff in Saudi Arabia and using partial least squares (PLS), the study aimed to attain the objective of this study. Results from the statistical analysis indicate that both internal and external environmental factors have a positive impact on the performance of SME hotels. The results also revealed a more significant impact from the external environmental factors in influencing firm performance than internal resources. Implications, limitations, and recommendations for future scientific investigation are put forward. Full article
(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)
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22 pages, 1677 KiB  
Article
Do Rare Earths and Energy Commodities Drive Volatility Transmission in Sustainable Financial Markets? Evidence from China, Australia, and the US
by Inzamam UI Haq, Hira Nadeem, Apichit Maneengam, Saowanee Samantreeporn, Nhan Huynh, Thasporn Kettanom and Worakamol Wisetsri
Int. J. Financial Stud. 2022, 10(3), 76; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030076 - 06 Sep 2022
Cited by 10 | Viewed by 3070
Abstract
The high volatility and energy usage of rare earths have raised sustainable and financial concerns for environmentalists and sustainable investors. Therefore, this paper aims to investigate time-varying volatility transmission among rare earths elements, energy commodities, and sustainable financial markets. The sample covers global [...] Read more.
The high volatility and energy usage of rare earths have raised sustainable and financial concerns for environmentalists and sustainable investors. Therefore, this paper aims to investigate time-varying volatility transmission among rare earths elements, energy commodities, and sustainable financial markets. The sample covers global and major financial markets, i.e., US, China, and Australia. Using daily log returns from 2018 to 2022, the paper considers the dynamic Time Varying Parameter-Vector Autoregression (TVP-VAR) connectedness approach to gauge the time-varying features of volatility spillovers. The findings of total spillovers index reveal weak connectedness among markets during the sampled period. US and China rare earth markets were net volatility transmitters, whereas the Dow Jones Australia Sustainability Index (ASI), China Sustainability Index (CSI), Dow Jones Sustainability World Index (SWI), and MVIS Global Rare Earth Index (MVISGREI) were net recipients. Moreover, energy commodities i.e., WTI Crude Oil, Gasoline, and Natural Gas were net volatility transmitters, while ASI, CSI, and SWI were major volatility recipients. The weak financial contagion effect and connectedness across financial markets uncovers possible diversification opportunities. However, the US sustainable financial market is persistently not affected by these volatility spillovers. Policymakers need to establish strict regulations to protect sustainable financial markets in China and Australia. Full article
(This article belongs to the Special Issue Financial Contagion)
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24 pages, 2535 KiB  
Article
Optimal Portfolios of National Currencies, Commodities and Fuel, Agricultural Commodities and Cryptocurrencies during the Russian-Ukrainian Conflict
by Nikolaos A. Kyriazis
Int. J. Financial Stud. 2022, 10(3), 75; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030075 - 01 Sep 2022
Cited by 5 | Viewed by 2414
Abstract
This study sets out to explore the impacts of the Russian-Ukrainian conflict on worldwide financial markets by considering a large array of national currencies, precious metals and fuel, agricultural commodities and cryptocurrencies. Estimations span the period since the Russian invasion until the takeover [...] Read more.
This study sets out to explore the impacts of the Russian-Ukrainian conflict on worldwide financial markets by considering a large array of national currencies, precious metals and fuel, agricultural commodities and cryptocurrencies. Estimations span the period since the Russian invasion until the takeover of the Ukrainian city of Mariupol. Optimal portfolios are constructed for separate categories of financial assets for different levels of risk-aversion by investors. The Chinese yuan, gold, corn, soybeans, sugar and Bitcoin prove to be safe haven investments while the Japanese yen, natural gas, wheat and the combination of Bitcoin and Ethereum offer profit opportunities for risk-seekers. Notably, the agricultural commodities’ portfolio is the best performing while the cryptocurrency portfolio generates the worst risk-return trade-off. National currencies could act as safe havens in the place of gold when all types of assets can be combined. Natural gas is revealed to be the most reliable profit generator. Overall, high risk appetite does not result in large improvement in portfolios’ returns. This study sheds light on investors’ optimal decision-making during elevated geopolitical uncertainties and provides a compass for improving welfare. Full article
(This article belongs to the Special Issue Asset Pricing, Investments and Portfolio Management)
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18 pages, 391 KiB  
Article
Key Strategic Decisions and Their Influences on the Management and Success of the Bank of America Chicago Marathon and the Marathon Valencia Trinidad Alfonso
by Juan L. Paramio-Salcines and Ramón Llopis-Goig
Int. J. Financial Stud. 2022, 10(3), 74; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030074 - 30 Aug 2022
Cited by 1 | Viewed by 2213
Abstract
City marathons have evolved and grown exponentially in type and popularity, in their managerial complexity, and in terms of their financial impact on their host cities and the attraction of corporate sponsors. Most of the research on city marathons has focused on evaluating [...] Read more.
City marathons have evolved and grown exponentially in type and popularity, in their managerial complexity, and in terms of their financial impact on their host cities and the attraction of corporate sponsors. Most of the research on city marathons has focused on evaluating their broad economic, urban, tourist, social, sporting, and symbolic effects on host cities. However, less attention has been paid to analyzing key strategic decisions that could account for the evolution and growth of specific marathons and their influences on their management and success. This article, which addresses the cases of the Bank of America Chicago Marathon and the Marathon Valencia Trinidad Alfonso, examines those key strategic decisions that have been taken from their inaugural first editions to present and how effective they have been as regards the management and success of both races. Results show that the international success of both events –in terms of sporting participation, performance, and economic impact– is closely related to critical key decisions taken to improve the design and management of the event; the synergies between the political, business and sporting spheres that the organizational leadership of both races has favored their implementation and, as a consequence, the support received from sponsors. This factor has not only provided both races with financial stability, but it has also contributed to improving how both marathons are managed. Full article
(This article belongs to the Special Issue Financing Sport and Leisure: Contemporary Issues and Prospects)
11 pages, 265 KiB  
Article
Earnings Management and Annual Report Readability: The Moderating Effect of Female Directors
by Elvia R. Shauki and Eva Oktavini
Int. J. Financial Stud. 2022, 10(3), 73; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030073 - 28 Aug 2022
Cited by 5 | Viewed by 2569
Abstract
The purpose of this study is to examine the influence of earnings management on the readability of annual reports while also examining the moderating role of a female director. In particular, the readability of a company’s annual report will be seen from the [...] Read more.
The purpose of this study is to examine the influence of earnings management on the readability of annual reports while also examining the moderating role of a female director. In particular, the readability of a company’s annual report will be seen from the management perspective using the FOG index on the annual reports of companies listed on the Indonesia Stock Exchange during 2015–2018 (excluding the financial sector), with a total sample of 996. This research confirms that companies that conduct earnings management can make complex company annual reports that are difficult to read as these companies tend to hide earnings management practices. Thus, the users of annual reports will find it difficult to identify these practices. This study confirms the mathematical theory of communication that annual reports are a communication tool for companies and, therefore, must be free from financial manipulation such as earnings management because this action will give a bad signal. Moreover, the moderating effect of female directors was not proven. This implies that female directors in Indonesia had not been able to moderate the readability of annual reports; one possibility might be due to the composition of female directors, which was relatively small. Full article
(This article belongs to the Special Issue Advances in Corporate Disclosure Practice)
30 pages, 1487 KiB  
Article
Dynamic Asymmetric Effect of Currency Risk Pricing of Exchange Rate on Equity Markets: A Regime-Switching Based C-Vine Copulas Method
by Benjamin Mudiangombe Mudiangombe and John Weirstrass Muteba Mwamba
Int. J. Financial Stud. 2022, 10(3), 72; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030072 - 22 Aug 2022
Viewed by 1518
Abstract
This paper investigates whether currency risk is priced differently in the different sectors (industrial, financial, and basic materials) of equity markets in a sample of developed United States of America (USA) and developing economies (Brazil, India, Poland, and South Africa). The paper makes [...] Read more.
This paper investigates whether currency risk is priced differently in the different sectors (industrial, financial, and basic materials) of equity markets in a sample of developed United States of America (USA) and developing economies (Brazil, India, Poland, and South Africa). The paper makes use of the following techniques: (i) Univariate Autoregressive Fractionally Integrated Moving Average and Exponential General Autoregressive Conditional Heteroskedastic (ARFIMA-EGARCH), (ii) the Markov Switching method (MS), and (iii) the Canonical Vine Copulas (C-Vine) techniques. Using a sample of daily data made of the foreign exchange rate against the domestic currency and equity market sectors; our findings show that there is an asymmetry effect between equity markets and the foreign exchange rate: there is a heterogeneous, strong, and positive dependence between the two. Higher equity prices are associated with depreciation of local currencies, according to US dollar (USD) exchange rates. In addition, we find that the selected emerging economies are pricing a positive and considerable currency risk. The pricing of currency risk has a varied effect in both regimes representing the states of the economy. In fact, when currency risk pricing has a beneficial impact on certain sectors of the economy, investors predict better returns. Full article
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23 pages, 861 KiB  
Concept Paper
The Influential Factors of Internal Audit Effectiveness: A Conceptual Model
by Ayman Abdelrahim and Husam-Aldin N. Al-Malkawi
Int. J. Financial Stud. 2022, 10(3), 71; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030071 - 19 Aug 2022
Cited by 8 | Viewed by 11068
Abstract
The purpose of this paper is to systematically review the literature on the influential factors of internal audit effectiveness and articulate these factors in a conceptual model. A systematic literature review (SLR) is conducted to identify the influential factors of internal audit effectiveness; [...] Read more.
The purpose of this paper is to systematically review the literature on the influential factors of internal audit effectiveness and articulate these factors in a conceptual model. A systematic literature review (SLR) is conducted to identify the influential factors of internal audit effectiveness; relevant studies are reviewed between the period January 1999 and March 2022 through a lens focused on the key factors of internal audit effectiveness. In addition, our review took into consideration what is mentioned in The International Professional Practices Framework for Internal Auditing (IPPF). Five factors of internal audit effectiveness and their dimensions are identified and comprised into a conceptual model, these factors are internal audit organizational characteristics, internal audit relationships, internal audit processes, internal audit resources, and internal audit coordination with other assurance providers. This paper provides internal audit practitioners, audit committees, and senior management in organizations with a broad understanding and comprehensive overview of the key factors that should be considered to make their internal audit functions more effective. This paper proposes a conceptual model that provides a holistic view of the influential factors of internal audit effectiveness and clearly identifies the dimensions of the factors. Additionally, it provides an opportunity for future research to test the model and build on it as well. Full article
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23 pages, 3203 KiB  
Article
Is Platinum a Real Store of Wealth?
by Marek Vochozka, Andrea Bláhová and Zuzana Rowland
Int. J. Financial Stud. 2022, 10(3), 70; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030070 - 18 Aug 2022
Cited by 3 | Viewed by 1861
Abstract
The research goal is to determine whether platinum can be seen as a good investment. For this purpose, content analysis of documents and deep learning neural networks with recurrent neural network were used. The results show that it pays for a koruna investor [...] Read more.
The research goal is to determine whether platinum can be seen as a good investment. For this purpose, content analysis of documents and deep learning neural networks with recurrent neural network were used. The results show that it pays for a koruna investor (a person holding their wealth in Czech koruna) to preserve their wealth physically in the form of a precious metal—specifically, platinum. The research confirms that platinum is a store of value but also a koruna investor’s wealth multiplier. This can be due to its rare occurrence in nature, but also to its unique use in manufacturing. A research limitation is the period for which the data were used. The finding that platinum is a store of value, as well as a wealth multiplier, can thus be concretized when using the data for a five-year period. It shall also be added that no turbulent changes are anticipated (such as interruption of platinum supply, unexpected government regulation of trade, etc.). Full article
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15 pages, 465 KiB  
Article
The Consequence of Takeover Methods: Schemes of Arrangement vs. Takeover Offers
by Hala Alqobali and Daniel Li
Int. J. Financial Stud. 2022, 10(3), 69; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030069 - 16 Aug 2022
Viewed by 3582
Abstract
This paper examined the effect of two selling processes in the UK market: takeover offers and schemes of arrangement. The latter is argued to allow a bidder to acquire a target company more cheaply and easily because schemes provide a lower threshold of [...] Read more.
This paper examined the effect of two selling processes in the UK market: takeover offers and schemes of arrangement. The latter is argued to allow a bidder to acquire a target company more cheaply and easily because schemes provide a lower threshold of the target company’s shares before “squeeze-out” procedures may be used. To address potential self-selection bias arising from bidders’ ability to choose their acquisition method, the propensity score matching methodology was applied to 803 takeovers of listed-target firms from 1995–2018. The results showed that the scheme of arrangement significantly reduces the target shareholders’ gain relative to the takeover offer. Full article
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14 pages, 297 KiB  
Article
The Effects of New Accounting Standards on Firm Value: The K-IFRS 1116 Lease
by Hae Jin Chung
Int. J. Financial Stud. 2022, 10(3), 68; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030068 - 16 Aug 2022
Cited by 2 | Viewed by 2417
Abstract
We examine how the implementation of the K-IFRS No.1116 Lease affects firm value. This new accounting standard mandates capitalization of all leases, resulting in changes in the key accounting leverage ratios and rates of return. The contracting costs hypothesis suggests that changes in [...] Read more.
We examine how the implementation of the K-IFRS No.1116 Lease affects firm value. This new accounting standard mandates capitalization of all leases, resulting in changes in the key accounting leverage ratios and rates of return. The contracting costs hypothesis suggests that changes in accounting techniques have economic consequences because lending contracts are expressed in terms of accounting numbers. We find that capitalizing operating leases, which were off-balance-sheet transactions prior to K-1116 implementation, increases the lease liabilities-to-assets ratio and lease liabilities-to-debt ratio significantly. While a firm’s business fundamentals do not change with the K-1116, we show that the value of firms that use high levels of operating leases decreased with the implementation of K-1116. The declines in firm value are significant for the subgroups of firms that are likely to raise external financing, suggesting that the implementation of K-1116 increased the level of financing frictions and decreased the value of future investment opportunities. Full article
(This article belongs to the Special Issue Advances in Corporate Disclosure Practice)
24 pages, 1163 KiB  
Article
Capital Preservation and Current Spending with Sovereign Wealth Funds and Endowment Funds: A simulation Study
by Knut Anton Mork, Haakon Andreas Trønnes and Vegard Skonseng Bjerketvedt
Int. J. Financial Stud. 2022, 10(3), 67; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030067 - 11 Aug 2022
Cited by 2 | Viewed by 1919
Abstract
We simulate the future performance of the Norwegian Government Pension Fund Global as a leading example of sovereign wealth funds intended both to preserve wealth and provide regular budget contributions. Withdrawals are limited to the fund’s expected real returns; however, deviations are allowed [...] Read more.
We simulate the future performance of the Norwegian Government Pension Fund Global as a leading example of sovereign wealth funds intended both to preserve wealth and provide regular budget contributions. Withdrawals are limited to the fund’s expected real returns; however, deviations are allowed to fund automatic stabilizers as well as discretionary fiscal policy. It also allows smoothing to avoid abrupt changes. Except for the fiscal policy part, many endowment funds are subject to similar rules. The main findings are: (i) Even if withdrawals matching expected returns maintain the fund’s value in expectation, the fund will be depleted eventually. (ii) Because the fund is invested in foreign currency, long-run purchasing power parity introduces an element of mean reversion and hence a negative serial correlation in the rates of return, so that the fund’s value is not even preserved in expectation. (iii) The use of the fund for fiscal policy introduces a substantial risk of depletion in finite time. (iv) Smoothing raises the risk of depletion after large negative financial returns, though only modestly so. Risk reduction and withdrawal rates below expected returns are explored as remedies. Risk reduction postpones the eventual depletion but does not eliminate it. Lower withdrawal rates help sustainability more fundamentally, but bounds on fiscal policy are needed for depletion risk to be eliminated. Full article
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22 pages, 881 KiB  
Article
The Impact of Financial Literacy on Retirement Planning with Serial Mediation of Financial Risk Tolerance and Saving Behavior: Evidence of Medium Entrepreneurs in Indonesia
by Subur Harahap, Armanu Thoyib, Sumiati Sumiati and Atim Djazuli
Int. J. Financial Stud. 2022, 10(3), 66; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030066 - 09 Aug 2022
Cited by 6 | Viewed by 10487
Abstract
This research examined the gist of financial literacy on the medium entrepreneurs in Indonesia, impacting the retirement planning through some mediator and moderating variables. Implementing the prospect theory and theory of planned behavior to explore these interactions, a series of hypotheses were constructed, [...] Read more.
This research examined the gist of financial literacy on the medium entrepreneurs in Indonesia, impacting the retirement planning through some mediator and moderating variables. Implementing the prospect theory and theory of planned behavior to explore these interactions, a series of hypotheses were constructed, considering financial risk tolerance and saving behavior as mediator variables and herding behavior as moderator variables. The study examined partial least square-structural equation modelling (PLS-SEM) obtained by sampling data from 388 entrepreneurs of medium-scale in the Bekasi Regency, Indonesia. The study revealed (a) how financial literacy on retirement planning is serial mediated by financial risk tolerance and saving behavior, (b) herding behavior can strengthen financial literacy’s influence on retirement planning, and (c) saving behavior as a mediator does not influence the relationship between financial literacy and retirement planning. The study confirms how financial risk tolerance and herding behavior bridge a positive relationship between financial literacy and retirement planning. Full article
(This article belongs to the Special Issue Asset Pricing, Investments and Portfolio Management)
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21 pages, 515 KiB  
Review
Taxing the Digital Economy through Consumption Taxes (VAT) in African Countries: Possibilities, Constraints and Implications
by Favourate Y. Mpofu
Int. J. Financial Stud. 2022, 10(3), 65; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030065 - 09 Aug 2022
Cited by 3 | Viewed by 3914
Abstract
Owing to the Fourth Industrial revolution and digital transformation, the digital economy has grown substantially globally and in Africa. Despite the positive outcomes such as advancements in technology, improvements in business models and expansion in digital financial inclusion, negative implications include the erosion [...] Read more.
Owing to the Fourth Industrial revolution and digital transformation, the digital economy has grown substantially globally and in Africa. Despite the positive outcomes such as advancements in technology, improvements in business models and expansion in digital financial inclusion, negative implications include the erosion of tax bases due to the invisible nature of digital transactions. Although the digital economy is one of the biggest and quickest growing sectors in the African continent, its contribution to tax revenue is negligible. Developed and developing countries are grappling to find effective ways of mobilizing revenues from this hard to tax economy. African countries have turned to digital services taxes, value added taxes and withholding taxes in a bid to collect revenue from the digital economy to broaden their tax bases. There is intense debate among policymakers, governments, development bodies and tax bodies on the most effective way to tax the digital economy. Through a conceptual analysis based on a critical review of the literature, this article contributes to the ongoing debate by assessing the possibilities and constraints of taxing the digital economy in Africa using value added tax (VAT). The paper reviewed 55 articles, most of them current, published between 2014 and 2022, reflecting embryonic nature of the subject area. The findings on the opportunities include the existence of VAT regulation, increased revenue mobilization and efficiency gains, while challenges include ambiguities in legislation, capacity constraints and tax knowledge gaps. The implications of using VAT to collect tax from the digital economy encompass increased cost of digital services, decreased access, increased inequality and impediment on employment creation, poverty reduction, digital financial inclusion, and the realization of the sustainable development goals. Full article
(This article belongs to the Special Issue The Financial Industry 4.0 Part 2)
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19 pages, 1682 KiB  
Article
Markowitz Mean-Variance Portfolio Optimization with Predictive Stock Selection Using Machine Learning
by Apichat Chaweewanchon and Rujira Chaysiri
Int. J. Financial Stud. 2022, 10(3), 64; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030064 - 08 Aug 2022
Cited by 13 | Viewed by 6696
Abstract
With the advances in time-series prediction, several recent developments in machine learning have shown that integrating prediction methods into portfolio selection is a great opportunity. In this paper, we propose a novel approach to portfolio formation strategy based on a hybrid machine learning [...] Read more.
With the advances in time-series prediction, several recent developments in machine learning have shown that integrating prediction methods into portfolio selection is a great opportunity. In this paper, we propose a novel approach to portfolio formation strategy based on a hybrid machine learning model that combines convolutional neural network (CNN) and bidirectional long short-term memory (BiLSTM) with robust input features obtained from Huber’s location for stock prediction and the Markowitz mean-variance (MV) model for optimal portfolio construction. Specifically, this study first applies a prediction method for stock preselection to ensure high-quality stock inputs for portfolio formation. Then, the predicted results are integrated into the MV model. To comprehensively demonstrate the superiority of the proposed model, we used two portfolio models, the MV model and the equal-weight portfolio (1/N) model, with LSTM, BiLSTM, and CNN-BiLSTM, and employed them as benchmarks. Between January 2015 and December 2020, historical data from the Stock Exchange of Thailand 50 Index (SET50) were collected for the study. The experiment shows that integrating preselection of stocks can improve MV performance, and the results of the proposed method show that they outperform comparison models in terms of Sharpe ratio, mean return, and risk. Full article
(This article belongs to the Special Issue Asset Pricing, Investments and Portfolio Management)
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32 pages, 490 KiB  
Article
Sustainability Performance and the Cost of Capital
by Tiago Cruz Gonçalves, João Dias and Victor Barros
Int. J. Financial Stud. 2022, 10(3), 63; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030063 - 05 Aug 2022
Cited by 18 | Viewed by 6832
Abstract
This study examines the association between firms’ environmental, social, and governance (ESG) performance and the cost of capital for the largest European firms listed on the STOXX Euro 600 in a large panel from 2002 to 2018. We find that ESG is priced [...] Read more.
This study examines the association between firms’ environmental, social, and governance (ESG) performance and the cost of capital for the largest European firms listed on the STOXX Euro 600 in a large panel from 2002 to 2018. We find that ESG is priced by both debt and equity markets, although in different directions. While better ESG performance is associated with a lower cost of equity, the relationship is positive regarding the cost of debt. We also account for industry idiosyncrasies. The relationship with the cost of equity is penalized for firms lagging in ESG performance compared with industry peers, and the industry median corporate sustainability performance score is around optimal to balance the cost of equity and cost of debt. We also find that ESG is not influential in shaping firms’ cost of capital in periods of financial and sovereign crises. Overall, in the same research setting, we find that the channels of firms’ cost of capital composition behave differently in response to changes in sustainability performance. Full article
27 pages, 379 KiB  
Article
Zero-Leverage Puzzle Revisited: Evidence from Acquisition Behaviors
by Chang Suk Bae and Hae Jin Chung
Int. J. Financial Stud. 2022, 10(3), 62; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030062 - 05 Aug 2022
Cited by 1 | Viewed by 1650
Abstract
The prevalence of zero-leverage firms is a puzzle in corporate finance. We analyze the acquisition behavior of zero-leverage firms and offer a new venue to the studies on zero-leverage puzzle and the interdependence of capital structures and investment decisions. The prior literature suggests [...] Read more.
The prevalence of zero-leverage firms is a puzzle in corporate finance. We analyze the acquisition behavior of zero-leverage firms and offer a new venue to the studies on zero-leverage puzzle and the interdependence of capital structures and investment decisions. The prior literature suggests three explanations regarding the zero-leverage puzzle: limited access to the debt market, managerial preference, and financial flexibility. While non-persistent zero-leverage firms show similar behavior as moderately leveraged firms, persistent zero-leverage firms are conservative in their acquisition behaviors. These firms are less likely to make acquisitions, acquire smaller targets, and are more likely to acquire zero-leverage targets than are moderately leveraged firms. Meanwhile, both persistent and non-persistent zero-leverage firms are not financially constrained, since they are likely to use cash in their offers, and they increase leverage post-acquisition. Overall, our evidence on persistent zero-leverage firms supports the managerial preference hypothesis, while the evidence on non-persistent zero-leverage firms is consistent with the financial flexibility hypothesis. Therefore, studies on corporate investment strategy should be aware of persistent firms’ unique behavior of debt and investment conservatism that differentiates these firms from other under-leveraged firms and non-persistent zero-leverage firms. Full article
20 pages, 1147 KiB  
Article
Quality of Work Life (QWL) and Its Impact on the Performance of the Banking Industry in Saudi Arabia
by Mohammad Ishfaq, Heitham Al-Hajieh and Majed Alharthi
Int. J. Financial Stud. 2022, 10(3), 61; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030061 - 26 Jul 2022
Cited by 4 | Viewed by 2809
Abstract
The quality of work life (QWL), job satisfaction, and individual work performance are the lynchpins of organizational performance and sustained business growth (SBG). Numerous researchers have recognized an association between QWL and SBG. Positive QWL dimensions ensure a workforce’s commitment to SBG. Like [...] Read more.
The quality of work life (QWL), job satisfaction, and individual work performance are the lynchpins of organizational performance and sustained business growth (SBG). Numerous researchers have recognized an association between QWL and SBG. Positive QWL dimensions ensure a workforce’s commitment to SBG. Like SERVQUAL, the QWL has several dimensions, and the most common are: (1) job satisfaction, (2) autonomy, (3) physical working environment, (4) remuneration, (5) career growth, (6) collegial relationships, and (7) relationship with management. A career in the banking industry has always been considered a symbol of prestige, prosperity, job security, and job satisfaction. To understand this, we present the WRKLFQUAL model to measure QWL and its impact on job security and satisfaction (JSS) and individual work performance (IWP). The dimensions and subdimensions of WRKLFQUAL are different from the dimensions and subdimensions of SERVQUAL; however, mechanisms measuring service quality and QWL have similar approaches. Accordingly, this study applied gap analysis to find what workforces expected from their work environments, as well as what they have actually experienced. Many researchers have argued that gaps in service quality significantly influence business performance. In this regard, our research found that almost all dimensions of WRKLFQUAL have negative gaps, meaning poor QWL causes job dissatisfaction and hampers IWP. Regression analysis also shows that average gaps have a significant relationship with job satisfaction. Finally, research proves that job security and satisfaction plays a mediating role in average gap scores and individual work performance. This study was carried out with reference to the banking sector’s performance in the Kingdom of Saudi Arabia, as follows. Cronbach’s α score suggests that 95% of the sample is free of error. To apply WRKLFQUAL on the same lines those of SERVQUAL, we developed seven dimensions and 28 subdimensions. Based on these dimensions, seven factors were extracted, all with factor loading between 0.745 and 0.835, confirming that all components had quite a high level of common variance. Accordingly, gaps in QWL, ranging from −0.997 to −1.149, also show that almost all the dimensions and subdimensions need improvements. Carrying this analysis further, we also compared QWL between Saudi and non-Saudi multinational banks and found that the QWL of the Saudi banking system has a slight edge over non-Saudi multinational banks. A correlation among seven predictors, ranging from 0.625 to 0.812, suggests that all seven predictors are highly correlated. Similarly, regression analysis with R2 0.704 shows that we have a good-fitting model. Hence, we argue that JSS depends on QWL and conclude that negative QWL causes job dissatisfaction and insecurity. We also examined the mediating impact of JSS on QWL and IWP and conclude that the Sobel test, in most cases, provided results higher than 1.98, which is the minimum criterion of having Sobel be significant and effective. Hence, we prove that JSS has a mediating role in QWL and IWP. Finally, we conclude that poor QWL causes job dissatisfaction and eventually reduces organizational efficiency. Full article
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16 pages, 876 KiB  
Article
The Role of Internal Audit to Reduce the Effects of Creative Accounting on the Reliability of Financial Statements in the Jordanian Islamic Banks
by Baker Akram Falah Jarah, Mufleh Amin AL Jarrah, Murad Ali Ahmad Al-Zaqeba and Mefleh Faisal Mefleh Al-Jarrah
Int. J. Financial Stud. 2022, 10(3), 60; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030060 - 26 Jul 2022
Cited by 24 | Viewed by 4504
Abstract
The purpose of this study is to look into the role of internal audit (IA) in reducing the effects of creative accounting (CA) on financial statement reliability in Jordanian Islamic Banks. The research study used the survey methodology to examine the role of [...] Read more.
The purpose of this study is to look into the role of internal audit (IA) in reducing the effects of creative accounting (CA) on financial statement reliability in Jordanian Islamic Banks. The research study used the survey methodology to examine the role of internal audit (including independence and objectivity, verifiability, professional care, and neutrality) to reduce the effects of CA on the reliability of financial statements in Jordanian Islamic Banks. The population consists of all practicing auditors in Jordanian Islamic Banks, with a sample of 100 practicing auditors chosen from the total population of 143 auditors using a simple random selection approach. The questionnaire was distributed to the internal auditors working in these banks. Moreover, the primary data were analyzed using the partial least squares (3.3.3) software. The results showed that there was a role for IA (including independence objectivity, verifiability, professional care, and impartiality) in limiting the effects of CA on the reliability of financial statements in Jordanian Islamic Banks. Full article
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18 pages, 613 KiB  
Article
How Does Economic Policy Uncertainty Affect Momentum Returns? Evidence from China
by Peizhi Zhao and Yuyan Wang
Int. J. Financial Stud. 2022, 10(3), 59; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030059 - 22 Jul 2022
Cited by 1 | Viewed by 2030
Abstract
Economic policy uncertainty has been identified as a new macroeconomic risk factor that harms the stock market’s profitability. This paper examines the impact of the Chinese EPU levels on one of the most famous financial anomalies—momentum returns. A new EPU index based on [...] Read more.
Economic policy uncertainty has been identified as a new macroeconomic risk factor that harms the stock market’s profitability. This paper examines the impact of the Chinese EPU levels on one of the most famous financial anomalies—momentum returns. A new EPU index based on mainland China newspapers is used to obtain more accurate EPU–momentum relations. We selected 3958 Chinese listed companies’ stocks from 2011 to 2022 to establish time-series (TSM) and returns signal momentum strategies (RSM). Although the momentum effect in the Chinese stock market is weak, the EPU-based dynamic-threshold RSM strategies yield significant positive excess returns: eight times more excess returns than conventional fixed-threshold strategies. We used the ordinary least squares regression model (OLS), and the event study method only identified robust negative EPU–momentum relationships in the Chinese stock market during high-EPU stages. Surprisingly, the negative relationship between EPU and momentum returns turns positive during expansion cycles. We explain this phenomenon as follows: expansions increase Chinese investors’ confidence, and uncertainties reduce market manipulations. Full article
(This article belongs to the Special Issue Asset Pricing, Investments and Portfolio Management)
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32 pages, 4271 KiB  
Article
Asymptotic Dependence Modelling of the BRICS Stock Markets
by Caston Sigauke, Rosinah Mukhodobwane, Wilbert Chagwiza and Winston Garira
Int. J. Financial Stud. 2022, 10(3), 58; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030058 - 22 Jul 2022
Cited by 1 | Viewed by 1719
Abstract
With the use of empirical data, this paper focuses on solving financial and investment issues involving extremal dependence of 10 pairwise combinations of the 5 BRICS (Brazil, Russia, India, China, and South Africa) stock markets. Daily closing equity indices from 5 January 2010 [...] Read more.
With the use of empirical data, this paper focuses on solving financial and investment issues involving extremal dependence of 10 pairwise combinations of the 5 BRICS (Brazil, Russia, India, China, and South Africa) stock markets. Daily closing equity indices from 5 January 2010 to 6 August 2018 are used in the study. Unlike previous literature, we use bivariate point process and conditional multivariate extreme value models to investigate the extremal dependence of the stock market returns. However, it is observed that the point process was able to model many more extreme observations or exceedances that contribute to the likelihood estimation. It gives more information than the threshold excess method of the CMEV model. This study shows varying levels of low extremal dependence structure whose outcomes are highly beneficial to investors, portfolio managers and other market participants interested in maximising investment returns and financial gains. Full article
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22 pages, 378 KiB  
Article
Basel III Capital Regulations and Bank Efficiency: Evidence from Selected African Countries
by Ayodeji Michael Obadire, Vusani Moyo and Ntungufhadzeni Freddy Munzhelele
Int. J. Financial Stud. 2022, 10(3), 57; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030057 - 18 Jul 2022
Cited by 8 | Viewed by 3233
Abstract
The core function of a commercial bank is the provision of credit facilities to its customers and to keep the flow and cycle of economic and financial resources balanced. Banks can only perform these functions if they are well regulated and efficient. The [...] Read more.
The core function of a commercial bank is the provision of credit facilities to its customers and to keep the flow and cycle of economic and financial resources balanced. Banks can only perform these functions if they are well regulated and efficient. The main focus of this study is to analyse the efficiency of African banks, most importantly after the 2008 global financial crisis when the Basel III regulations were popularly adopted by banks globally. The research focus was examined in two ways, the first part focused on investigating the impact of the Basel III capital regulations on the operational and investment efficiency of African banks by using the random effects and pooled ordinary least square panel data regression models. The second part examined if the African banks are indeed efficient by analysing their level of efficiency using the input-oriented DEA approach. The study used audited bank-level data from 45 listed banks operating in six African nations, namely, South Africa, Nigeria, Kenya, Tanzania, Uganda and Malawi, that have adopted the Basel III Accord for the period from 2010 to 2019. The bank-level data were obtained from the IRESS database. The findings revealed that capital buffer premiums significantly affect the operating and investment efficiency of African banks positively. This relationship implies that the capital buffer premium does not only serve as cushion capital against financial, market and economic shocks but also improves the banks’ efficiency by influencing the banks’ decisions and perspective on cost containment strategies. Another key finding is the positive influence the liquidity coverage ratio has on banks’ operational efficiency. The implication of this relationship may simply mean that African banks with well-performing liquidity ratios are efficient in their operations with the ability to meet their short-term obligations such as meeting customers’ credit needs, unannounced depositors’ withdrawals and creditors’ repayments, amongst others. This result could well be interpreted that adopting stricter liquidity requirements creates a liquidity buffer for African banks, giving them cushion confidence to undertake profitable and high-yielding projects, which invariably lead to increased profitability and operational efficiency. Furthermore, the DEA results showed that the sampled banks are operationally efficient with an aggregate of 84.8%, and for their investment efficiency, an aggregate of 94.9%. These findings suggest that African banks are largely efficient and can survive any possible financial or economic crisis. It can be put forward that it is probable that banks that are yet to adopt the Basel III Accord or strengthen their capital and liquidity base, are less efficient and might fail during a global crisis. The current work suggests some appropriate policy-based recommendations. Full article
12 pages, 315 KiB  
Article
Lessening Effects of SOX on the Relationship between Executive Compensation Components and Cost of Equity Capital
by Kanyarat (Lek) Sanoran
Int. J. Financial Stud. 2022, 10(3), 56; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030056 - 17 Jul 2022
Viewed by 1682
Abstract
The Sarbanes–Oxley Act of 2002 (SOX) imposed stringent requirements on corporate executives to hold them more accountable for their management decisions. This act has ramifications for executive pay as well. This study investigates the lessening effects of SOX on the association between executive [...] Read more.
The Sarbanes–Oxley Act of 2002 (SOX) imposed stringent requirements on corporate executives to hold them more accountable for their management decisions. This act has ramifications for executive pay as well. This study investigates the lessening effects of SOX on the association between executive compensation and cost of equity capital. The regression analyses are based on 11,649 firm-year observations of publicly listed companies in the United States from 1998 to 2014. The results show that bonuses and shareholdings are associated with a lower cost of equity capital, while the stock options are not related to the cost of equity capital. In addition, the findings indicate that SOX weakens the association between the cost of equity capital and executive bonuses, stock options for all top five executives. However, SOX lessens the association between the cost of equity capital and shareholdings, only for the three non-CEO and non-CFO executives. This is the first study to investigate how the change in regulatory environment invoked by SOX impacts the association between executive compensation and cost of equity capital. Moreover, this study examines the impacts on all top five highly paid executives and focuses on the three components of executive compensation that are involved with SOX. Full article
20 pages, 386 KiB  
Article
Working Capital Behavior of Firms during an Economic Downturn: An Analysis of the Financial Crisis Era
by Erik Hofmann, Juuso Töyli and Tomi Solakivi
Int. J. Financial Stud. 2022, 10(3), 55; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030055 - 14 Jul 2022
Cited by 2 | Viewed by 3657
Abstract
In times of crisis, cash and liquidity play an essential role. This paper analyzes the working capital measures over the course of a business cycle. We examine (1) how companies behave in economic downturns regarding their working capital components and (2) whether firms [...] Read more.
In times of crisis, cash and liquidity play an essential role. This paper analyzes the working capital measures over the course of a business cycle. We examine (1) how companies behave in economic downturns regarding their working capital components and (2) whether firms with higher financial constraints behave differently in economic downturns regarding their working capital components. The analyses were conducted with descriptive statistics and generalized linear mixed-effects modeling. Our dataset consists of 2111 stock-listed firms and 10,555 observations spread over the period of five years during the financial crisis era. The findings indicate that days sales outstanding and shorter days inventory held are related to better financial performance while days payable outstanding had no observable effect. Furthermore, financially constrained firms have shorter days sales outstanding than average firms. In economic downturns, firms seem to reduce both working capital and fixed investments to asset ratios. The financially constrained firms pushed down their fixed investments ratio more aggressively than average firms while, in contrast, the financially strongest firms pushed down the working capital to asset ratio in comparison to average firms. Interestingly, neither the cash conversion cycle, days payable outstanding, nor company performance or fixed investments to asset ratios fully returned to the pre-shock level. The behavior of non-financially constrained firms, which also perform better, indicates a stronger supply chain orientation than that of average firms. This might indicate that the supply chain-oriented view of working capital management could provide a more favorable and resilient alternative to the prevailing self-orientation. Full article
16 pages, 391 KiB  
Article
A Deep Learning Approach to Dynamic Interbank Network Link Prediction
by Haici Zhang
Int. J. Financial Stud. 2022, 10(3), 54; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030054 - 12 Jul 2022
Viewed by 2900
Abstract
Lehman Brothers’ failure in 2008 demonstrated the importance of understanding interconnectedness in interbank networks. The interbank market plays a significant role in facilitating market liquidity and providing short-term funding for each other to smooth liquidity shortages. Knowing the trading relationship could also help [...] Read more.
Lehman Brothers’ failure in 2008 demonstrated the importance of understanding interconnectedness in interbank networks. The interbank market plays a significant role in facilitating market liquidity and providing short-term funding for each other to smooth liquidity shortages. Knowing the trading relationship could also help understand risk contagion among banks. Therefore, future lending relationship prediction is important to understand the dynamic evolution of interbank networks. To achieve the goal, we apply a deep learning framework model of interbank lending to an electronic trading interbank network for temporal trading relationship prediction. There are two important components of the model, which are the Graph convolutional network (GCN) and the Long short-term memory (LSTM) model. The GCN and LSTM components together capture the spatial–temporal information of the dynamic network snapshots. Compared with the Discrete autoregressive model and Dynamic latent space model, our proposed model achieves better performance in both the precrisis and the crisis period. Full article
(This article belongs to the Special Issue Financial Econometrics and Machine Learning)
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14 pages, 1762 KiB  
Article
Gender Diversity in Leadership: A Bibliometric Analysis and Future Research Directions
by Elisabete Vieira, Mara Madaleno and Júlio Lobão
Int. J. Financial Stud. 2022, 10(3), 53; https://0-doi-org.brum.beds.ac.uk/10.3390/ijfs10030053 - 12 Jul 2022
Cited by 4 | Viewed by 3466
Abstract
Gender diversity in management has become of increased interest to academics and researchers in the last decades since women and men have different personal and psychological characteristics that affect their decision-making process in management actions and leadership. A female presence has been under-represented [...] Read more.
Gender diversity in management has become of increased interest to academics and researchers in the last decades since women and men have different personal and psychological characteristics that affect their decision-making process in management actions and leadership. A female presence has been under-represented on companies’ boards of directors, which affects management decisions and leadership style. This article aims to contribute to the analysis of gender diversity and leadership state of knowledge, conducting a bibliometric review of the existing literature. In this context, we analyze the evolutional research studies published in the Scopus digital library, considering a period of five years, from 2017 to 2021. We focus our analysis on the top 24 cited articles after a wider review of articles published relating to the explored topic (402 articles). Considering the bibliometric analysis done, we then present scrutiny of the state of knowledge on this subject, a summary of the existing gaps, and suggestions for future research. Full article
(This article belongs to the Special Issue Diversity in Global Finance)
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