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Int. J. Financial Stud., Volume 13, Issue 1 (March 2025) – 23 articles

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30 pages, 375 KiB  
Article
Interplay of Alternative Energy Sub-Sectors, Oil Prices, and Oil Volatility: Exploring Simultaneous Relationships
by Minh Thi Hong Dinh
Int. J. Financial Stud. 2025, 13(1), 23; https://doi.org/10.3390/ijfs13010023 - 6 Feb 2025
Viewed by 371
Abstract
This study examines the simultaneous relationships among oil prices, oil volatility, and two sub-sectors within alternative energy stocks: renewable energy equipment (REE) and alternative fuels (AF). The results confirm the existence of a bidirectional relationship. While most alternative energy stocks with a long [...] Read more.
This study examines the simultaneous relationships among oil prices, oil volatility, and two sub-sectors within alternative energy stocks: renewable energy equipment (REE) and alternative fuels (AF). The results confirm the existence of a bidirectional relationship. While most alternative energy stocks with a long history on the stock exchange exhibit a bidirectional positive correlation with oil prices, they demonstrate a bidirectional negative correlation with oil volatility. In particular, a majority of REEs, as opposed to a minority of AFs, demonstrate a bidirectional positive correlation with oil prices. Conversely, the majority of REEs, contrasted with a minority of AFs, exhibit a bidirectional negative correlation with oil volatility. Notably, newly listed alternative energy stocks show no significant relationship with either oil prices or oil volatility. This suggests that these emerging entities may be influenced by factors beyond traditional energy market dynamics, such as technological innovation, regulatory frameworks, or investor sentiment. Furthermore, the findings highlight that REEs tend to have a more substantial relationship with both oil prices and oil volatility compared to AFs. Recognizing the distinct sensitivities and market behaviours of these sub-sectors can enable more informed decision-making and resource allocation. Full article
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17 pages, 250 KiB  
Article
Financial Literacy and Credit Card Payoff Behaviors: Using Generalized Ordered Logit and Partial Proportional Odds Models to Measure American Credit Card Holders’ Likelihood of Repaying Their Credit Cards
by Christos I. Giannikos and Efstathia D. Korkou
Int. J. Financial Stud. 2025, 13(1), 22; https://doi.org/10.3390/ijfs13010022 - 5 Feb 2025
Viewed by 282
Abstract
According to the Federal Reserve of the United States, in the second quarter of 2024, American credit card debt reached USD 1.14 trillion, the highest balance ever recorded. In an age of high-interest, complex credit cards, how does financial literacy affect credit card [...] Read more.
According to the Federal Reserve of the United States, in the second quarter of 2024, American credit card debt reached USD 1.14 trillion, the highest balance ever recorded. In an age of high-interest, complex credit cards, how does financial literacy affect credit card debt repayment? Also, how could financial literacy and education stop the rise in credit card debt in America? To answer these questions, we use microdata from the latest wave of the Survey of Consumer Finances for 2022. We aim to capture the likelihood of credit card repayment behaviors related to the monthly balances owed by 3865 credit card holders. We consider three categories of self-reported credit card payoff behavior: hardly ever, sometimes, and always or almost always. Given the ordinal nature of our outcome variable, we perform a series of likelihood-ratio and Brant tests to assess the assumption of the proportionality of odds across response categories. Following the failure of the tests, we conclude with the selection of a generalized ordered logit/partial proportional odds model that allows us to relax the parallel lines constraint for those variables for which it is not justified. In our logistic regressions, we account for a comprehensive set of demographic characteristics, and from our results, we highlight the following: For credit card holders with low financial literacy, we find that the odds of moving to a higher category of payoff behavior are 21% and significantly lower than those of high financial literacy respondents. Further, for college-educated card holders, the odds of paying off always or almost always versus sometimes and hardly ever are 2.49 times and significantly greater than the odds for credit card holders without a college education. Credit card holders who are minority group members, female, under 45, have dependents, or earn less than USD 50,000 demonstrate a tendency for poor credit card payoff behavior. In our conclusion, we discuss how to improve credit card repayments. We stress the importance of monitoring people closely. We also aim to provide better financial advice to certain groups. Lastly, we present a more realistic approach to building and sustaining financial literacy. Full article
38 pages, 3049 KiB  
Article
The Impact of Artificial Intelligence Adoption on the Quality of Financial Reports on the Saudi Stock Exchange
by Abdulkarim Hamdan J. Alhazmi, Sardar M. N. Islam and Maria Prokofieva
Int. J. Financial Stud. 2025, 13(1), 21; https://doi.org/10.3390/ijfs13010021 - 4 Feb 2025
Viewed by 426
Abstract
The aim of this study was to explore how artificial intelligence (AI) impacts the quality of financial reporting, providing insights into new opportunities in this field for the Saudi context. This study employed the UTAUT theory to examine the adoption of AI technology [...] Read more.
The aim of this study was to explore how artificial intelligence (AI) impacts the quality of financial reporting, providing insights into new opportunities in this field for the Saudi context. This study employed the UTAUT theory to examine the adoption of AI technology in auditing practices. This study also utilized bibliometric analysis techniques through an academic literature review and content analyses of the documentary evidence. The implication of this study is that non-Big 4 audit firms should adopt AI-powered drones, which consequently enhance decision making, decrease audit fees, and enhance the quality of financial reports, and the efficiency and accuracy of audits. Furthermore, this paper recommends that non-Big 4 audit firms adopting AI should foster a culture of change to ensure quality audits and consistency, overcome resistance to the change, and support the integration of technologies such as AI-driven audit automation. Our study also indicated the importance of integrating AI with the IFRS, developing a new framework for AI in auditing practices, incorporating AI into auditing courses, and modernizing auditing using AI. These implications lead to financial reports of enhanced quality. The results indicated four clusters, with artificial intelligence being the most significant keyword occurrence. This study has limitations, such as the lack of consideration of cyber-attack risks on drones, which may reduce the reliability of financial reports. Based on the findings of this research, audit companies and regulatory agencies in Saudi Arabia, like the Saudi Capital Market Authority (CMA), may evaluate the integration of AI to improve the quality of financial reporting. Implementing AI is expected to enhance the quality of audits, automate reporting, and support regulatory compliance to foster confidence and transparency in the financial industry. Full article
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18 pages, 306 KiB  
Article
The Varying Impact of Cryptocurrency Investments on a Company’s Liquidity in Korean Companies
by Namryoung Lee
Int. J. Financial Stud. 2025, 13(1), 20; https://doi.org/10.3390/ijfs13010020 - 4 Feb 2025
Viewed by 365
Abstract
This study investigates whether cryptocurrency investments have a distinct impact on corporate liquidity depending on when they are held and the stage of a firm’s life cycle at the time of holding, using a sample of Korean companies. The empirical findings first show [...] Read more.
This study investigates whether cryptocurrency investments have a distinct impact on corporate liquidity depending on when they are held and the stage of a firm’s life cycle at the time of holding, using a sample of Korean companies. The empirical findings first show that cryptocurrency investments affect a company’s liquidity differently depending on when they are held. The findings demonstrate that, three years prior, labeled as t-1, t-2, and t-3, the two-year-old cryptocurrency investments appear to have greatly increased the company’s financial liquidity. Second, this study discovers that cryptocurrency investments have a different effect on a company’s liquidity based on the four stages of its life cycle, which comprise Introduction, Growth, Maturity, and Decline, at the time of holding. According to the findings, cryptocurrency investments at the Mature stage appear to contribute significantly and positively to the company’s financial liquidity. When the coefficients of interaction terms between each year and each life cycle are examined, it is observed that the holding of cryptocurrencies at the Mature stage in year t-2 has the most favorable influence on the company’s financial liquidity in year t. Although the findings do not conclude that the company’s cryptocurrencies held in year t-2 and at the Mature life cycle stage are the only ones that improve financial liquidity, they do suggest that a corporation may profit if it makes astute cryptocurrency investments at the appropriate time to suit its specific set of circumstances. Full article
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20 pages, 331 KiB  
Article
Drivers of Merger and Acquisition Activities in Vietnam: Insights from Targets’ Perspectives and Deal Characteristics
by Khoa Bui, Tu Le and Thanh Ngo
Int. J. Financial Stud. 2025, 13(1), 19; https://doi.org/10.3390/ijfs13010019 - 3 Feb 2025
Viewed by 669
Abstract
This study empirically examines the determinants of merger and acquisition (M&A) activities in Vietnam from 2005 to 2020, which has not been examined before, using a fixed-effects model for a sample of 674 completed M&A deals. The results indicate that targets’ corporate governance [...] Read more.
This study empirically examines the determinants of merger and acquisition (M&A) activities in Vietnam from 2005 to 2020, which has not been examined before, using a fixed-effects model for a sample of 674 completed M&A deals. The results indicate that targets’ corporate governance and deal characteristics have mixed effects on M&A decisions. More specifically, the independent member of the board and CEO duality of the target is negatively associated with most M&A types, except for cross-border mergers. However, the impact of targets’ blockholders is consistently positive regardless of M&A types. When observing the deal characteristics, mixed evidence is also found in the case of M&A payment form, industry-relatedness between the bidder and the target, the bidder’s stake in the target, and foreign ownership in the bidder’s stake. More interesting, our study emphasizes that voluntary agreement is seemingly critical to M&A decisions regardless of different types. Our results suggest several important implications, including balancing independent directors on the board, accounting for CEOs’ and other blockholders’ interests and influence, considering the types of M&A payments, and involving foreign investors in M&A activities. By understanding these implications, firms can better navigate the complexities of M&A transactions, enhancing their decision-making processes and ultimately contributing to improved shareholder value. Full article
26 pages, 354 KiB  
Article
Debt Capital and Dividend Policy as Complementary Indicators of Firm Valuation
by Okechukwu Enyeribe Njoku and Younghwan Lee
Int. J. Financial Stud. 2025, 13(1), 18; https://doi.org/10.3390/ijfs13010018 - 2 Feb 2025
Viewed by 594
Abstract
This study investigates the interdependencies between debt capital and dividend policy as complementary factors influencing firm value among corporations listed on the Korea Composite Stock Price Index (KOSPI). Using Tobin’s Q as a firm value metric and employing robust econometric techniques (OLS, 2-SLS, [...] Read more.
This study investigates the interdependencies between debt capital and dividend policy as complementary factors influencing firm value among corporations listed on the Korea Composite Stock Price Index (KOSPI). Using Tobin’s Q as a firm value metric and employing robust econometric techniques (OLS, 2-SLS, and GMM), the analysis reveals that while debt and dividend policies independently reduce firm value, their interaction produces a synergistic effect that increases value. The findings further indicate the dual role of Chaebol ownership structures, which, despite their association with lower firm value, mitigate the negative effects of financial policies. Additionally, firm size is found to negatively impact value, whereas free cash flow has a significant positive effect. By disentangling the complex dynamics of capital structure, dividend strategies, and ownership configurations, this study offers actionable insights for managers, investors, and policymakers. It emphasizes the importance of balanced financial practices and governance reforms tailored to concentrated ownership environments. Full article
20 pages, 1491 KiB  
Article
Post-Prime Football Player Valuations: Depreciation Difference Between the English Premier League and the Top European Leagues
by James Liu
Int. J. Financial Stud. 2025, 13(1), 17; https://doi.org/10.3390/ijfs13010017 - 1 Feb 2025
Viewed by 442
Abstract
This study explores market value depreciation among soccer players across the top five European leagues, addressing a critical gap in the sports finance literature by focusing on post-prime valuation dynamics. Leveraging a dataset from the 2023/2024 season, player market values and attributes sourced [...] Read more.
This study explores market value depreciation among soccer players across the top five European leagues, addressing a critical gap in the sports finance literature by focusing on post-prime valuation dynamics. Leveraging a dataset from the 2023/2024 season, player market values and attributes sourced from Transfermarkt and Sportmonks were analyzed using league-specific multilinear regression models. The findings reveal a consistent decline in market values beginning at age 27, with notable variation across leagues. The German Bundesliga demonstrates the steepest depreciation rates, suggesting shorter career peaks or distinct market dynamics. In contrast, the Italian Serie A and Spanish La Liga exhibit the slowest depreciation rates, preserving player value for older athletes longer than other leagues. The English Premier League and French Ligue 1 show moderate depreciation, with the Premier League’s decline closely aligning with Ligue 1 and diverging less from other leagues than traditionally assumed. These results challenge preconceived narratives about league-specific player valuations and offer empirical insights into the transfer market. By providing a nuanced understanding of depreciation trends, this study can inform strategic decisions for agents, managers, and clubs, particularly in optimizing contract negotiations, transfer strategies, and long-term asset management in professional football. Full article
(This article belongs to the Special Issue Sports Finance (2nd Edition))
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14 pages, 256 KiB  
Article
Hard to Borrow vs. Easy to Borrow: Insights from Japan’s Centralized Lendable Stock Market
by Mostafa Saidur Rahim Khan
Int. J. Financial Stud. 2025, 13(1), 16; https://doi.org/10.3390/ijfs13010016 - 1 Feb 2025
Viewed by 326
Abstract
This study examines stock borrowing costs in Japan’s centralized lendable stock market, focusing on differences between ‘hard-to-borrow’ and ‘easy-to-borrow’ stocks over six months of daily data. This study employs a comprehensive methodology to examine metrics such as the short interest ratio, borrowing costs, [...] Read more.
This study examines stock borrowing costs in Japan’s centralized lendable stock market, focusing on differences between ‘hard-to-borrow’ and ‘easy-to-borrow’ stocks over six months of daily data. This study employs a comprehensive methodology to examine metrics such as the short interest ratio, borrowing costs, institutional ownership, price-to-book value ratio, and new stock borrowing patterns. Regression models are utilized to explore the relationships between these factors and borrowing costs. The findings reveal that ‘hard-to-borrow’ stocks are associated with higher short interest ratios, borrowing costs, price-to-book ratios, and turnover but exhibit lower institutional ownership compared to ‘easy-to-borrow’ stocks. Notably, institutional ownership negatively correlates with borrowing costs across both categories, while the short interest ratio positively correlates with borrowing costs only for ‘hard-to-borrow’ stocks. Contrary to expectations, ‘hard-to-borrow’ stocks do not underperform despite elevated borrowing expenses, suggesting that these costs do not deter short selling activities in the Japanese market. The findings of this study offer key implications for investors and regulators. For investors, understanding the factors influencing borrowing costs aids in optimizing short-selling strategies. For regulators, the results highlight the role of centralized lendable stock markets in enhancing pricing efficiency without hindering trading activities. Full article
18 pages, 2023 KiB  
Article
Multi-Objective Portfolio Optimization: An Application of the Non-Dominated Sorting Genetic Algorithm III
by John Weirstrass Muteba Mwamba, Leon Mishindo Mbucici and Jules Clement Mba
Int. J. Financial Stud. 2025, 13(1), 15; https://doi.org/10.3390/ijfs13010015 - 28 Jan 2025
Viewed by 503
Abstract
This study evaluates the effectiveness of the Non-dominated Sorting Genetic Algorithm III (NSGA-III) in comparison to the traditional Mean–Variance optimization method for financial portfolio management. Leveraging a dataset of global financial assets, we applied both approaches to optimize portfolios across multiple objectives, including [...] Read more.
This study evaluates the effectiveness of the Non-dominated Sorting Genetic Algorithm III (NSGA-III) in comparison to the traditional Mean–Variance optimization method for financial portfolio management. Leveraging a dataset of global financial assets, we applied both approaches to optimize portfolios across multiple objectives, including risk, return, skewness, and kurtosis. The findings reveal that NSGA-III significantly outperforms the Mean–Variance method by generating a more diverse set of Pareto-optimal portfolios. Portfolios optimized with NSGA-III exhibited superior performance, achieving higher Sharpe ratios, more favorable skewness, and reduced kurtosis, indicating a better balance between risk and return. Moreover, NSGA-III’s capability to handle conflicting objectives underscores its utility in navigating complex financial environments and enhancing portfolio resilience. In contrast, while the Mean–Variance method effectively balances risk and return, it demonstrates limitations in addressing higher-order moments of the return distribution. These results emphasize the potential of NSGA-III as a robust and comprehensive tool for portfolio optimization in modern financial markets characterized by multifaceted objectives. Full article
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19 pages, 1296 KiB  
Article
Tax Compliance Pattern Analysis: A Survey-Based Approach
by Marius-Răzvan Surugiu, Valentina Vasile, Camelia Surugiu, Cristina Raluca Mazilescu, Mirela-Clementina Panait and Elena Bunduchi
Int. J. Financial Stud. 2025, 13(1), 14; https://doi.org/10.3390/ijfs13010014 - 21 Jan 2025
Viewed by 642
Abstract
This study investigates tax compliance patterns among individuals in Romania through a survey-based approach, aiming to comprehend factors influencing taxpayers’ behavior, including perception towards taxation, ethics, evasion, and public awareness. The insights garnered can inform policy decisions to enhance compliance rates. Additionally, it [...] Read more.
This study investigates tax compliance patterns among individuals in Romania through a survey-based approach, aiming to comprehend factors influencing taxpayers’ behavior, including perception towards taxation, ethics, evasion, and public awareness. The insights garnered can inform policy decisions to enhance compliance rates. Additionally, it contributes to the tax compliance literature by examining unique Romanian context factors. The study delves into taxpayers’ opinions to discern specific views and behaviors within broader societal and economic transformations. A questionnaire was developed and administered online from April to June 2023, with a sample size of 185 respondents. A logistic regression model was constructed using the collected data to analyze the effects on tax compliance. The findings suggest that individuals comply with tax obligations when they perceive their contributions enhance public services and when the tax system aligns with their preferences. Surprisingly, a higher education level correlates with lower tax compliance, emphasizing the importance of targeted interventions and educational campaigns. This underscores the necessity for effective communication about the societal benefits of paying taxes. Policymakers should tailor awareness campaigns to inform higher-educated individuals about the significance of tax compliance and its impact on public goods. This ensures a more informed populace and promotes voluntary compliance with tax regulations. Full article
(This article belongs to the Special Issue Advances in Behavioural Finance and Economics 2nd Edition)
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24 pages, 334 KiB  
Article
Disclosure of Sustainability Information Under the Corporate Social Responsibility Directive: The Degree of Compliance of Portuguese Stock Index Companies
by Graça Azevedo, Jonas Oliveira, Ivone Sousa, Maria Fátima Borges, Maria C. Tavares and José Vale
Int. J. Financial Stud. 2025, 13(1), 13; https://doi.org/10.3390/ijfs13010013 - 21 Jan 2025
Viewed by 510
Abstract
Europe has just published a new Directive on Corporate Sustainability Reporting disclosure and is elaborating new European Sustainability Reporting Standards. To analyze whether companies are complying with the new disclosure requirements before the Corporate Sustainability Reporting Directive (CRSD) on sustainability comes into force, [...] Read more.
Europe has just published a new Directive on Corporate Sustainability Reporting disclosure and is elaborating new European Sustainability Reporting Standards. To analyze whether companies are complying with the new disclosure requirements before the Corporate Sustainability Reporting Directive (CRSD) on sustainability comes into force, a content analysis was carried out on the corporate reports of 12 companies in the Portuguese Stock Index of Euronext Lisbon for the year 2022, complemented by the score analysis technique. From the study of general disclosures (European Sustainability Reporting Standards—ESRS 2), we concluded that although some companies already comply with various requirements of this standard, they are not disclosing all the information required by ESRS 2 on sustainability. We also concluded, by analyzing the companies’ reports for 2022, that the requirements of the CSRD have different levels of disclosure. Full article
(This article belongs to the Special Issue Accounting and Financial/Non-financial Reporting Developments)
27 pages, 1090 KiB  
Article
How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects
by Changrong Lu, Fandi Yu, Jiaxiang Li, Guanghong Zheng and Lian Liu
Int. J. Financial Stud. 2025, 13(1), 12; https://doi.org/10.3390/ijfs13010012 - 20 Jan 2025
Viewed by 448
Abstract
Global uncertainty and the COVID-19 pandemic have significantly impacted the integration of emerging economies into global financial markets. Post-pandemic, the Federal Reserve’s interest rate hikes have drawn investor attention to relatively independent and stable currencies. This study investigates the sustained independence of the [...] Read more.
Global uncertainty and the COVID-19 pandemic have significantly impacted the integration of emerging economies into global financial markets. Post-pandemic, the Federal Reserve’s interest rate hikes have drawn investor attention to relatively independent and stable currencies. This study investigates the sustained independence of the Renminbi by analyzing the spillover effects between the Renminbi and other major currencies in the context of the pandemic and USD interest rate hikes. By employing high-frequency data and cross-validating the results with low-frequency data transformed through Synchro Squeezing Wavelet Transform, we aimed to enhance the robustness of our findings. This analysis provides valuable insights for investors, highlighting the stability advantages of the Renminbi in the context of de-dollarization and global currency diversification. Full article
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30 pages, 1908 KiB  
Article
Factors Influencing FinTech Adoption Among Bank Customers in Palestine: An Extended Technology Acceptance Model Approach
by Jamal Hurani and Mohammed Kayed Abdel-Haq
Int. J. Financial Stud. 2025, 13(1), 11; https://doi.org/10.3390/ijfs13010011 - 16 Jan 2025
Viewed by 1118
Abstract
This study examines FinTech adoption in the Palestinian banking sector, highlighting its role in driving innovation, improving customer satisfaction, and ensuring competitiveness. Using an extended Technology Acceptance Model (TAM) and SmartPLS 4.0 software for structural equation modeling, the research investigates factors influencing FinTech [...] Read more.
This study examines FinTech adoption in the Palestinian banking sector, highlighting its role in driving innovation, improving customer satisfaction, and ensuring competitiveness. Using an extended Technology Acceptance Model (TAM) and SmartPLS 4.0 software for structural equation modeling, the research investigates factors influencing FinTech adoption among Palestinian bank customers. Findings show high adoption rates, with nearly half of customers also using non-bank FinTech services. While most prefer FinTech solutions from their banks, many are open to switching providers for better service, convenience, or pricing. Brand strength, trust, and awareness significantly impact perceptions of ease of use and usefulness. Customers trust bank-provided FinTech for precision and reliability but remain concerned about security. A lack of customer awareness highlights the need for targeted educational campaigns. These insights confirm the selection of an extended TAM framework as being an appropriate analytical tool in the Palestinian banking sector, incorporating brand, trust, and awareness alongside ease of use and usefulness. It emphasizes the need for banks to innovate, strengthen security, and enhance awareness efforts to retain and attract customers in a competitive landscape. Full article
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17 pages, 528 KiB  
Article
Macroeconomic Determinants of Effective Corporate Tax Rates: The Case of the Slovak Republic
by Alena Andrejovská and Jozef Glova
Int. J. Financial Stud. 2025, 13(1), 10; https://doi.org/10.3390/ijfs13010010 - 14 Jan 2025
Viewed by 524
Abstract
The effective corporate tax rate is a critical measure reflecting a nation’s fiscal policy and its attractiveness to foreign investment. This study investigates the relationship between macroeconomic determinants and effective corporate tax rates, focusing on Slovakia’s competitiveness within the European Union from 2004 [...] Read more.
The effective corporate tax rate is a critical measure reflecting a nation’s fiscal policy and its attractiveness to foreign investment. This study investigates the relationship between macroeconomic determinants and effective corporate tax rates, focusing on Slovakia’s competitiveness within the European Union from 2004 to 2022. Using a panel regression model, the research identifies significant correlations between nominal tax rates, unemployment, government debt, and effective tax rates. Our findings reveal a consistent downward trend in both nominal and effective tax rates across EU member states, with Slovakia maintaining relatively lower effective tax rates compared to older EU members, thus enhancing its fiscal competitiveness. However, discrepancies persist among member states, influenced by differences in tax policies, enforcement, and exemptions. The study underscores the complex interplay between fiscal policies and macroeconomic conditions, highlighting the importance of aligning effective tax rates with broader economic goals. Policymakers are advised to consider reforms that balance tax competitiveness with fiscal sustainability, ensuring that effective tax rates reflect intended policy outcomes. This analysis offers valuable insights into tax policy dynamics within the EU and provides a framework for designing strategies to attract investment while maintaining economic stability. Full article
(This article belongs to the Special Issue Corporate Finance 2nd Edition)
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20 pages, 1329 KiB  
Article
The Impact of Inflation on the U.S. Stock Market After the COVID-19 Pandemic
by Willem Thorbecke
Int. J. Financial Stud. 2025, 13(1), 9; https://doi.org/10.3390/ijfs13010009 - 13 Jan 2025
Viewed by 812
Abstract
Inflation remained quiescent for several decades and then surged in 2021 and 2022. Inflation subsequently fell in 2023 and 2024. This paper investigates how the rise and fall in inflation after 2019 affected the U.S. stock market. To do this, it estimates a [...] Read more.
Inflation remained quiescent for several decades and then surged in 2021 and 2022. Inflation subsequently fell in 2023 and 2024. This paper investigates how the rise and fall in inflation after 2019 affected the U.S. stock market. To do this, it estimates a fully specified multi-factor model that measures the exposure of 54 assets to inflation, monetary policy, and other macroeconomic variables over the 1994 to 2019 period. This paper then uses the inflation betas to investigate how investors’ perceptions of inflation changed between 2020 and 2024. The results indicate that concerns about inflation roiled the stock market over this period. The Fed’s anti-inflationary policies whipsawed markets even more. These findings highlight the dangers that arise when monetary policy allows inflation to accelerate. Full article
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41 pages, 3121 KiB  
Article
Impact of Indices on Stock Price Volatility of BRICS Countries During Crises: Comparative Study
by Nursel Selver Ruzgar
Int. J. Financial Stud. 2025, 13(1), 8; https://doi.org/10.3390/ijfs13010008 - 11 Jan 2025
Viewed by 552
Abstract
This study aims to identify the common indices having an impact on the SPV of BRICS countries during crises. To address this, the monthly data retrieved from the database of the Global Economic Monitor (GEM), World Bank, IMF International Financial Statistics data, and [...] Read more.
This study aims to identify the common indices having an impact on the SPV of BRICS countries during crises. To address this, the monthly data retrieved from the database of the Global Economic Monitor (GEM), World Bank, IMF International Financial Statistics data, and OECD in the period of January 2000 to December 2023 are analyzed in two phases. In the first phase, DM classification techniques are applied to the data to identify the best common classification technique in order to use this technique in the second phase to compare the results with Multiple Linear Regression (MLR) results. In the second phase, to account for the global financial crisis and COVID-19 crisis, the sample period is divided into two sub-periods. For those sub-periods, MLR and the best classification technique that was found in the first phase are utilized to find the common indices that have an impact on the stock price volatility during individual and both crises. The findings indicate that the Random Tree method commonly classified the data among the seven classification techniques. Regarding MLR results, no common indices were identified during the global financial crisis or the COVID-19 crisis. However, based on Random Tree classifications, the CPI price percent, National Currency, and CPI index for all items were common during the global financial crisis, whereas only the CPI price percent was common during the COVID-19 crisis. While some common indices were observed in individual crises for specific countries, no indices were consistently found across both crises. This variation is attributed to the unique nature of each crisis and the diverse economic and socio-political structures of different countries. These findings provide valuable insights for financial institutions and investors to refine financial and policy decisions based on the specific characteristics of each crisis and the indices affecting each country. Full article
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24 pages, 832 KiB  
Article
Do Short Sales Reduce Post-Shock Anomalies in Stock Prices? Evidence from the Chinese Stock Market
by Haojun Chen
Int. J. Financial Stud. 2025, 13(1), 7; https://doi.org/10.3390/ijfs13010007 - 10 Jan 2025
Viewed by 426
Abstract
This study investigates the role of short sales in mitigating post-shock anomalies in stock returns within the context of China’s evolving short-sales regulations. Utilizing a unique dataset of daily short-sale volumes, this research examines how short sellers influence stock price behavior following significant [...] Read more.
This study investigates the role of short sales in mitigating post-shock anomalies in stock returns within the context of China’s evolving short-sales regulations. Utilizing a unique dataset of daily short-sale volumes, this research examines how short sellers influence stock price behavior following significant price shocks. The findings reveal that short sellers act as informed arbitragers, reducing post-shock anomalies, particularly in news-driven events, and supporting Diamond and Verrecchia’s hypothesis that short-sale constraints slow price adjustments to information. This study fills a critical gap in the literature, offering insights into price efficiency and implications for regulators and investors. By highlighting the unintended consequences of restrictive short-sale policies, this paper recommends reforms to reduce borrowing costs, enhance lending programs, and promote effective short-selling practices. These results contribute to the broader understanding of market dynamics, particularly in emerging markets with tight short-sale restrictions like China. Full article
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31 pages, 416 KiB  
Article
Determinants of Debt Financing Behavior of Unlisted Moroccan Family SMEs: A Panel Data Analysis
by Zouhair Boumlik, Badia Oulhadj and Olivier Colot
Int. J. Financial Stud. 2025, 13(1), 6; https://doi.org/10.3390/ijfs13010006 - 10 Jan 2025
Viewed by 957
Abstract
This paper investigates the firm-level determinants of debt policy in private family SMEs. It employs a comparative analysis of two sub-samples of family and non-family SMEs using panel data from 200 Moroccan SMEs over the period from 2018 to 2022. The findings reveal [...] Read more.
This paper investigates the firm-level determinants of debt policy in private family SMEs. It employs a comparative analysis of two sub-samples of family and non-family SMEs using panel data from 200 Moroccan SMEs over the period from 2018 to 2022. The findings reveal that family SMEs adopt a conservative financing strategy, maintaining lower debt levels compared to their non-family counterparts. This conservative approach appears to be driven by risk considerations related to bankruptcy costs associated with higher debt levels. Indeed, the results show that the financing behaviors of family SMEs align more closely with pecking order theory than trade-off theory. Furthermore, the study suggests that the financing behavior of family SMEs differs slightly from that of non-family SMEs, but this difference is not resistant to changes in debt measures. This study makes several contributions to the literature. First, it identifies the key determinants of debt policy among family SMEs, offering insights into the distinctive financing strategies employed by these firms. Second, it offers evidence supporting the relevance of capital structure theories in explaining the financing decisions of family firms within the context of developing economies. In addition, the study’s findings have practical implications insofar as they can guide policymakers and banking stakeholders, especially those in bank-based economies where debt is the primary financing option for SMEs, in conceiving adapted financing options that align with the characteristics of family firms, thereby fostering their growth and, consequently, the economy’s development. Full article
26 pages, 10367 KiB  
Article
Macroeconomic Conditions, Speculation, and Commodity Futures Returns
by Ramesh Adhikari and Kyle J. Putnam
Int. J. Financial Stud. 2025, 13(1), 5; https://doi.org/10.3390/ijfs13010005 - 8 Jan 2025
Viewed by 571
Abstract
This paper examines the dynamic relationships between speculative activities, commodity returns, and macroeconomic conditions across five sectors compassing 29 commodities. Using weekly data spanning from January 2000 to July 2023, we construct comprehensive measures of commodity market speculation across five sectors and examine [...] Read more.
This paper examines the dynamic relationships between speculative activities, commodity returns, and macroeconomic conditions across five sectors compassing 29 commodities. Using weekly data spanning from January 2000 to July 2023, we construct comprehensive measures of commodity market speculation across five sectors and examine their sector-specific impact on returns through advanced econometric methods, including dynamic conditional correlation models, quantile regressions, Markov-switching models, and time-varying Granger causality tests. Our results reveal that the impact of speculative activities on commodity futures returns is conditional on the commodity sector and prevailing macroeconomic conditions. Moreover, the relationship between macroeconomic factors, speculative activities, and commodity futures returns is time varying. Among the macroeconomic variables, the financial stress indicator, as measured by the St. Louis Fed Financial Stress Index, shows a significant ability to predict commodity futures returns. The relationship between speculation and commodity returns is bi-directional across all sectors. Full article
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19 pages, 293 KiB  
Article
Digital Financial Inclusion and Economic Growth: The Moderating Role of Institutions in SADC Countries
by Christelle Meniago
Int. J. Financial Stud. 2025, 13(1), 4; https://doi.org/10.3390/ijfs13010004 - 4 Jan 2025
Viewed by 1018
Abstract
The purpose of this research is to examine the relationship between digital financial inclusion and economic growth in the SADC countries, while exploring the crucial moderating role of institutions. The digital financial inclusion (DFI) and institutional quality indices were constructed via Principal Component [...] Read more.
The purpose of this research is to examine the relationship between digital financial inclusion and economic growth in the SADC countries, while exploring the crucial moderating role of institutions. The digital financial inclusion (DFI) and institutional quality indices were constructed via Principal Component Analysis (PCA) to overcome the issue of multicollinearity. Using annual data from 2010 to 2023 and employing the system GMM technique, the findings of this study have persuasively supported the existence of a positive relationship between digital financial inclusion and economic growth in SADC countries, which signals that DFI is vital for boosting economic growth. The interaction term between the DFI index and institutional quality index also suggests a positive relationship, highlighting the need for the establishment of robust institutions and sound macroeconomic policies to ensure growth in the regional bloc. On the policy front, the findings indicate that efforts to expand digital financial inclusion in SADC countries should be complemented by institutional reforms aimed at improving governance, regulatory frameworks, rule of law, and legal protections. More specifically, this study suggests that SADC countries should focus on strengthening governance and regulatory frameworks to ensure transparency, security, and effective management of digital financial services. Improving legal protections, particularly around data security and consumer rights, is crucial to building trust in digital finance. Policymakers should also prioritize expanding digital infrastructure, especially in underserved areas, and addressing issues like limited technology access and digital literacy. Furthermore, fostering innovation in the fintech sector and implementing inclusive policies targeting marginalized groups will help drive wider adoption of digital financial services. By combining these reforms with institutional strengthening, SADC countries can create a conducive environment for sustainable economic growth through enhanced digital financial inclusion. Full article
20 pages, 2011 KiB  
Article
Examining the Impact of Environmental, Social, and Corporate Governance Factors on Long-Term Financial Stability of the European Financial Institutions: Dynamic Panel Data Models with Fixed Effects
by Georgia Zournatzidou, Konstantina Ragazou, George Sklavos and Nikolaos Sariannidis
Int. J. Financial Stud. 2025, 13(1), 3; https://doi.org/10.3390/ijfs13010003 - 2 Jan 2025
Viewed by 848
Abstract
Modern economies are progressively acknowledging the need to assess environmental, social, and corporate governance (ESG) elements to identify possible risks and possibilities. The financial sector, exerting significant influence over the economy, is essential for sustaining economic stability via the lending mechanism. Our study [...] Read more.
Modern economies are progressively acknowledging the need to assess environmental, social, and corporate governance (ESG) elements to identify possible risks and possibilities. The financial sector, exerting significant influence over the economy, is essential for sustaining economic stability via the lending mechanism. Our study focuses on examining the influence of ESG factors on the financial stability of European financial institutions. To attain this goal, we utilized fixed-effects and random-effects dynamic panel models, analyzing 352 financial institutions across many European nations from 2019 to 2021. The study’s findings reveal a complex scenario. The findings indicate that ethical and corporate responsibility practices significantly impact the financial performance of European financial institutions. Nonetheless, the execution of policies pertaining to ESG ethics seems markedly inadequate. Our research reveals substantial evidence of a direct correlation between ethical practices and profit stability, diverging from other studies. This newly established group directly influences the financial performance of financial institutions in Europe. These findings enhance the comprehension of the interaction between ESG variables and financial stability, illuminating both the beneficial effects and the current deficiencies in ethical behaviors within the European banking sector. Full article
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24 pages, 827 KiB  
Article
Digital Financial Inclusion and Inclusive Green Growth: Evidence from China’s Green Growth Initiatives
by Ruixin Peng and Bing Zeng
Int. J. Financial Stud. 2025, 13(1), 2; https://doi.org/10.3390/ijfs13010002 - 31 Dec 2024
Viewed by 932
Abstract
The inclusive and environmentally sustainable transformation of economic growth is a crucial indicator for the high-quality development of urban areas. In this perspective, this paper explores the connection between digital inclusive finance and inclusive green growth in 270 Chinese cities from 2011 to [...] Read more.
The inclusive and environmentally sustainable transformation of economic growth is a crucial indicator for the high-quality development of urban areas. In this perspective, this paper explores the connection between digital inclusive finance and inclusive green growth in 270 Chinese cities from 2011 to 2021. The study used a panel dataset, individual fixed-effects models, and multiple mediation models to analyze the results. The study findings reveal that digital inclusive finance effectively stimulates regional inclusive green growth and enhances positive transmission mainly by improving green technology innovation, increasing entrepreneurship levels, and promoting industrial structure upgrading, of which environmental-friendly technology innovation channels constitute the main contributor. The effects of regions, administrative hierarchy of cities, financial marketization, policy support, and environmental regulation are analyzed in heterogeneity analysis. To ensure the robustness of baseline results, this study utilized two-stage least squares (2-SLS) and difference in difference (DID) approaches. Moreover, this study offers valuable insights into the environmental implications of digital financial inclusion in emerging economies. Full article
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20 pages, 3400 KiB  
Review
Effects of Financial Literacy and Financial Behavior on Financial Well-Being: Meta-Analytical Review of Experimental Studies
by Phaktada Choowan, Hanvedes Daovisan and Charin Suwanwong
Int. J. Financial Stud. 2025, 13(1), 1; https://doi.org/10.3390/ijfs13010001 - 27 Dec 2024
Viewed by 1685
Abstract
The purpose of this meta-analytical review of experimental studies was to examine the effects of financial literacy and financial behavior on financial well-being. This research was conducted by a master’s in library and information science (MLIS)-trained Information Specialist using the PICO framework. Of [...] Read more.
The purpose of this meta-analytical review of experimental studies was to examine the effects of financial literacy and financial behavior on financial well-being. This research was conducted by a master’s in library and information science (MLIS)-trained Information Specialist using the PICO framework. Of the 3089 publications identified, 415 studies were assessed for eligibility, and 9 articles met the inclusion criteria. The meta-analytical review of the selected studies was performed using a two-level model of the MAJOR module for JAMOVI 2020. The potential effect size of the intervention studies was 0.75, indicating the heterogeneity between groups in terms of financial literacy, which rejected the null hypothesis in favor of the alternative hypothesis. The theoretical and practical implications, strengths and limitations, and possibilities for future research were also addressed in this meta-analysis. Full article
(This article belongs to the Special Issue Advance in the Theory and Applications of Financial Literacy)
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