Article
Business, Finance
Wei-Zhong Shi, Ming-Chun Hsiao, Tsun-Yi Huang, Min-Teh Yu
Summary: This study examines the impact of common institutional ownership (CIO) on the cost of bank loans for firms in the same industry. The findings show a negative relationship between CIO and loan spreads, particularly for firms in the mature stage of their life cycle and family-owned firms. The study also finds that the negative relationship becomes statistically insignificant during the financial crisis period.
PACIFIC-BASIN FINANCE JOURNAL
(2024)
Article
Business, Finance
Ibrahim Bostan, Ji-Chai Lin, G. Mujtaba Mian
Summary: Recent research has found that investors tend to have excessively high expectations for low-priced stocks, which puts greater pressure on these companies for short-term performance. However, companies with a long-term focus, such as those investing heavily in research and development, aim for higher share prices to protect their long-term investments from short-termism.
JOURNAL OF CORPORATE FINANCE
(2024)
Article
Business, Finance
H. D. Vinod
Summary: This article proposes an algorithm based on ECDFs to rank densities of f(xj) with multiple modes, asymmetric fat tails, dips, turns, and overlaps. Additionally, algorithms for statistical inference and out-of-sample portfolio performance comparisons are introduced.
JOURNAL OF FINANCIAL STABILITY
(2024)
Article
Business, Finance
Jan Jakub Szczygielski, Ailie Charteris, Princess Rutendo Bwanya, Janusz Brzeszczynski
Summary: This study investigates the narrative reflected by Google search trends (GST) and constructs a neutral and general stock market-related GST index. The index is found to peak around significant events that impact global financial markets and is closely correlated with established measures of market uncertainty. It performs well in approximating and predicting systematic stock market drivers and factor dispersion underlying return volatility both in-sample and out-of-sample. The study contributes to the understanding of the information reflected by GST and their relationship with stock markets and suggests the potential for further applications using internet search data.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Lina Xu, Zhiqing Meng
Summary: This study proposes a competition model to explore the mechanism behind the adoption of a paid membership system in the online retail industry. The findings suggest that e-commerce platforms implementing this system can navigate marketing campaigns effectively and generate profits surpassing the market level. The comparative static analysis and numerical simulations also provide valuable insights for decision-making regarding membership fees and retail pricing.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Yi Fan, Yang Gao
Summary: This study examines the impact of short selling on stock prices using Chinese equity data from April 2009 to August 2020. The findings show that increased short selling activity leads to faster stock price adjustments and quicker responses to public information. Additionally, short sellers act as contrarian traders during periods of extreme stock price fluctuations, reducing the risk of stock price crashes. Moreover, in emerging markets dominated by individual investors, sentiment plays a crucial role in short sellers' ability to mitigate market crashes.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Burcu Kapar, Syed Mabruk Billah, Faisal Rana, Faruk Balli
Summary: This study examines the intra-regional patterns of return and volatility spillovers between economic sectors in the GCC. The findings show that the intensity of spillovers is regime-dependent and increases during turmoil periods. The financial sector has the highest level of contagion, while the energy sector has the lowest. Liquidity and profitability significantly affect the extent of spillovers, which are highly dispersed across sectors.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Mustafa Caglayan, Michael Machokoto
Summary: Based on a study using firm-level data from eight emerging African countries, it is found that firms' fixed investment expenditures are more responsive to external funds, particularly debt, compared to internal funds. The research also shows that the investment sensitivity to external funds is associated with over-investment rather than financial constraints. This relationship remains strong even during the financial crisis and after addressing measurement errors. The study highlights the significance of both internal and external funds in shaping the investment behavior of emerging market firms, with the latter playing an increasingly important role.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Mingsheng Li, Karen Liu, Xiaorui Zhu
Summary: This study empirically investigates the effects of involuntary delisting from the NASDAQ on delisted firms and finds that these effects are not primarily attributable to delisting itself. Delisting leads to a decline in trading volume and equity issuance only for firms whose stocks were actively traded prior to delisting. The findings support policy initiatives to provide alternative listing and trading venues for small companies.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
Article
Business, Finance
Kwabena Kesse, Lloyd P. Blenman
Summary: This study reexamines the relationship between exchange rates and sovereign risk, discovering that sovereign risk impacts advanced economies and emerging markets differently. By sorting currencies from developed and emerging economies into different portfolios based on macro risk and political risk, it is found that local determinants of sovereign risk are priced in the FX markets, particularly in the post-2007 financial crisis era. Portfolios with high macro risk and high political risk result in higher excess returns, especially for emerging economies.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Paolo Fiorillo, Antonio Meles, Luigi Raffaele Pellegrino, Vincenzo Verdoliva
Summary: This study examines the impact of geopolitical risk on stock price crash risk, and finds that higher geopolitical risk leads to more frequent stock price crashes. The study also reveals that companies with higher ESG ratings, particularly in the Environmental and Social dimensions, are more resilient to the adverse effects of geopolitical risk on stock price crash risk.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Jairaj Gupta, Anup Srivastava, Basim Alzugaiby
Summary: This study validates Schumpeter's theory of creative destruction and Christensen's argument that large, established banks cannot innovate as fast as newcomers and are at risk of perishing over time. However, the research also finds that large and established banks are better able to adapt to new market conditions and can change their business models more quickly.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2024)
Article
Business, Finance
Chun Chen, Fangyi He, Lei Lin
Summary: This paper examines the relationship between prospect value and stock return under the anchoring effect. The findings indicate that high prospect value stocks are overpriced, while low prospect value stocks are underpriced in the Chinese stock market. However, this negative relationship is only observed in stocks far from the 52-week high and disappears near the 52-week high. Additionally, the interaction between the 52-week high and prospect value is mainly driven by the loss aversion feature.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Anis Omri, Bassem Kahouli, Montassar Kahia
Summary: This research investigates the relationship between environmental sustainability and human health outcomes in Saudi Arabia, considering factors such as information and communication technology and technological innovation. The findings suggest that advanced technologies can enhance the influence of environmental performance on human health outcomes.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Chung-Chi Chen, Yu-Lieh Huang, Fang Yang
Summary: Previous studies used keyword-based matching method to construct indices, which neglected semantics and generated excessive noise. This paper proposes a neural network model to remove noise caused by keyword matching, and demonstrates that the de-noised EPU index can predict economic variables accurately and generate superior forecasts.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Svetoslav Covachev, Vijay Yadav
Summary: The flow-performance sensitivity (FPS) of mutual funds is affected by the composition of sectoral holdings. An increase in defensive or sensitive stocks decreases FPS, while an increase in cyclical stocks increases FPS. FPS increases during high sentiment periods. However, in both low and high sentiment periods, funds with a higher proportion of defensive or sensitive stocks have lower FPS, while funds with a higher proportion of cyclical stocks have higher FPS. Investors with a long investment horizon should be cautious of mutual funds primarily investing in cyclical stocks due to higher liquidity costs.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2024)
Article
Business, Finance
Dojoon Park, Yong Joo Kang, Young Ho Eom
Summary: This study examines the relationship between the COVID-19 pandemic and stock returns, finding that pandemic risk is a significant determinant of stock returns. The study introduces the time-varying effective reproduction number as a proxy measure for COVID-19 risk and shows that the COVID-19 factor commands a significant positive risk premium. The results are robust to various test assets, serial interval parameters, portfolio construction methods, and alternative proxy measures, providing strong empirical evidence that the COVID-19 factor is a priced risk factor during the pandemic.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Hongru Tan, Xuezheng Chen
Summary: This paper investigates the welfare implications of banning the no surcharge rule (NSR) in credit card markets and finds that lifting the NSR decreases social welfare in both closed and open systems.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Michele Moretto, Bruno M. Parigi
Summary: This article examines the impact of limiting government bond redemptions on the economy and finds that it may cause a run on funds. The model analyzes the exit behavior and decisions of different economic agents, as well as the propagation of negative shocks.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2024)
Article
Business, Finance
Salma Tarchella, Rabeh Khalfaoui, Shawkat Hammoudeh
Summary: This study investigates the safe haven, hedging, and diversification properties of oil, gold, and two cryptocurrencies, including Bitcoin and Ethereum, for equity investments in the G7 economies under different market conditions. The empirical evidence supports gold as an undisputable diversifier for equity investments in the G7 equity markets under all market conditions. Cryptocurrencies have a valuable safe-haven potential, particularly during the COVID-19 crisis.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2024)
