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Int. J. Financial Stud., Volume 7, Issue 2 (June 2019)

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Open AccessArticle
Country of Origin Effects on the Average Annual Values of NHL Player Contracts
Int. J. Financial Stud. 2019, 7(2), 24; https://doi.org/10.3390/ijfs7020024 (registering DOI)
Received: 25 March 2019 / Revised: 17 April 2019 / Accepted: 10 May 2019 / Published: 17 May 2019
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Abstract
Using data from 2005 to 2016, this paper examines if players in the National Hockey League (NHL) are being paid a positive differential for their services due to the competition from the Kontinental Hockey League (KHL) and the Swedish Hockey League (SHL). In [...] Read more.
Using data from 2005 to 2016, this paper examines if players in the National Hockey League (NHL) are being paid a positive differential for their services due to the competition from the Kontinental Hockey League (KHL) and the Swedish Hockey League (SHL). In order to control for performance, we use two different large datasets, (N = 4046) and (N = 1717). In keeping with the existing literature, we use lagged performance statistics and dummy variables to control for the type of NHL contract. The first dataset contains lagged career performance statistics, while the performance statistics are based on the statistics generated during the years under the player’s previous contract. Fixed effects least squares (FELS) and quantile regression results suggest that player production statistics, contract status, and country of origin are significant determinants of NHL player salaries. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle
Estimation of Effects of Recent Macroprudential Policies in a Sample of Advanced Open Economies
Int. J. Financial Stud. 2019, 7(2), 23; https://doi.org/10.3390/ijfs7020023
Received: 10 January 2019 / Revised: 22 April 2019 / Accepted: 29 April 2019 / Published: 8 May 2019
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Abstract
We used a time-series cross-section dataset to test several hypotheses pertaining to the role of macroprudential policy instruments in the management of the financial cycle in advanced open economies. The short-run effects are most significant for caps on loan to value and income [...] Read more.
We used a time-series cross-section dataset to test several hypotheses pertaining to the role of macroprudential policy instruments in the management of the financial cycle in advanced open economies. The short-run effects are most significant for caps on loan to value and income (LTV and LTI) and risk weights (RW). The long-run coefficients of credit growth with respect to the indicators of amortisation requirements (Amort) and RW are also significant. The estimation results when house price growth is the dependent variable are consistent with these results. Our findings do not support that Basel III type countercyclical buffer (CCyB) has affected credit growth, and we suggest that the variable is mainly a control in our dataset. In that interpretation, it is interesting that the estimated coefficients of the other instruments are robust with respect to exclusion of CCyB from the empirical models. The main results are also robust to controls in the form of impulse indicator saturation (IIS), which we employed as a novel estimation method for macro panels. Full article
Open AccessArticle
Flobsion—Flexible Option with Benefit Sharing
Int. J. Financial Stud. 2019, 7(2), 22; https://doi.org/10.3390/ijfs7020022
Received: 27 November 2018 / Revised: 15 March 2019 / Accepted: 26 March 2019 / Published: 19 April 2019
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Abstract
Global environmental goals and the Paris agreement declared the need to avoid dangerous climate change by reducing emissions of greenhouse gases with an ultimate goal to transform today’s policies and reach climate neutrality before the end of the century. In the medium to [...] Read more.
Global environmental goals and the Paris agreement declared the need to avoid dangerous climate change by reducing emissions of greenhouse gases with an ultimate goal to transform today’s policies and reach climate neutrality before the end of the century. In the medium to long-term, climate policies imply rising CO 2 price and consequent financial risk for carbon-intensive producers. In this context, there is a need for tools to buffer CO 2 prices within the period of transition to greener technologies when the emission offsetting markets expose high volatility. Contracts for optional future purchase of carbon credits could provide emitters with a cost-efficient solution to address existing regulatory risks. At the same time, this would help to create much needed financing for the projects generating carbon credits in the future. This work presents the concept of a flobsion—a flexible option with benefit sharing—and demonstrates its advantages in terms of risk reduction for both seller and buyer as compared to both a “do nothing” strategy (offsetting at future market price) and a traditional option with a fixed strike price. The results are supported analytically and numerically, employing as a benchmark the dataset on historical CO 2 prices from the European Emission Trading Scheme. Flobsion has the potential to extend the traditional option in financial applications beyond compliance markets. Full article
(This article belongs to the Special Issue Financial Economics)
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Open AccessArticle
Cross-Border Lending, Government Capital Injection, and Bank Performance
Int. J. Financial Stud. 2019, 7(2), 21; https://doi.org/10.3390/ijfs7020021
Received: 31 January 2019 / Revised: 3 April 2019 / Accepted: 4 April 2019 / Published: 9 April 2019
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Abstract
In this paper, we develop a contingent claim model to examine the optimal bank interest margin, i.e., the spread between the domestic loan rate and the deposit market rate of an international bank in distress. The framework is used to evaluate the cross-border [...] Read more.
In this paper, we develop a contingent claim model to examine the optimal bank interest margin, i.e., the spread between the domestic loan rate and the deposit market rate of an international bank in distress. The framework is used to evaluate the cross-border lending efficiency for a bank that participates in a government capital injection program, a government intervention used in response to the 2008 financial crisis. This paper suggests that government capital injection is an appropriate way to recapitalize the distressed bank, enhancing the bank interest margin and survival probability. Nevertheless, the government capital injection lacks efficiency when the bank’s cross-border lending is high. Stringent capital regulation, suggested to prevent future crises by literature, leads to superior lending efficiency when the government capital injection is low. Full article
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Open AccessArticle
Is the External Audit Report Useful for Bankruptcy Prediction? Evidence Using Artificial Intelligence
Int. J. Financial Stud. 2019, 7(2), 20; https://doi.org/10.3390/ijfs7020020
Received: 6 November 2018 / Revised: 19 March 2019 / Accepted: 23 March 2019 / Published: 8 April 2019
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Abstract
Despite the number of studies on bankruptcy prediction using financial ratios, very little is known about how external audit information can contribute to anticipating financial distress. A handful of papers have shown that a combination of ratios and audit data is significant for [...] Read more.
Despite the number of studies on bankruptcy prediction using financial ratios, very little is known about how external audit information can contribute to anticipating financial distress. A handful of papers have shown that a combination of ratios and audit data is significant for predictive purposes, but only one recent paper provided a predictive accuracy of 80% solely by using the disclosures contained in audit reports. This study was complemented by simplifying the analysis of audit reports for prediction purposes and the same predictive accuracy was achieved. By applying three artificial intelligence techniques (PART algorithm, random forest, and support vector machine), the predictive ability of more easily extracted information from the report was examined and a practical implication suggested for each user. Simply by (1) finding the audit opinion, (2) identifying if a matter section exists, and (3) the number of comments disclosed, any user may predict a bankruptcy situation with the same accuracy as if they had scrutinized the whole report. In addition, an extended literature review is included, on previous studies on the interaction between bankruptcy prediction and the external audit information. Full article
(This article belongs to the Special Issue Bankruptcy Prediction)
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Open AccessArticle
The Impact of College Athletic Success on Donations and Applicant Quality
Int. J. Financial Stud. 2019, 7(2), 19; https://doi.org/10.3390/ijfs7020019
Received: 20 February 2019 / Revised: 15 March 2019 / Accepted: 20 March 2019 / Published: 1 April 2019
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Abstract
For the 65 colleges and universities that participate in the Power Five athletic conferences (Pac 12, Big 10, SEC, ACC, and Big 12), the football and men’s basketball teams are highly visible. While these programs generate tens of millions of dollars in revenue [...] Read more.
For the 65 colleges and universities that participate in the Power Five athletic conferences (Pac 12, Big 10, SEC, ACC, and Big 12), the football and men’s basketball teams are highly visible. While these programs generate tens of millions of dollars in revenue annually, very few of them turn an operating “profit.” Their existence is thus justified by the claim that athletic success leads to ancillary benefits for the academic institution, in terms of both quantity (e.g., more applications, donations, and state funding) and quality (e.g., stronger applicants, lower acceptance rates, higher yields). Previous studies provide only weak support for some of these claims. Using data from 2006–2016 and a multiple regression model with corrections for multiple testing, we find that while a successful football program is associated with more applicants, there is no effect on the composition of the student body or (with a few caveats) funding for the school through donations or state appropriations. Full article
(This article belongs to the Special Issue Sports Finance 2018)
Open AccessArticle
The Impact of Macroeconomic Factors on the German Stock Market: Evidence for the Crisis, Pre- and Post-Crisis Periods
Int. J. Financial Stud. 2019, 7(2), 18; https://doi.org/10.3390/ijfs7020018
Received: 31 January 2019 / Revised: 14 March 2019 / Accepted: 18 March 2019 / Published: 29 March 2019
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Abstract
Today we live in a post-truth and highly digitalized era characterized by a flow of (mis-) information around the world. Identifying the impact of this information on stock markets and forecasting stock returns and volatilities has become a much more difficult task, perhaps [...] Read more.
Today we live in a post-truth and highly digitalized era characterized by a flow of (mis-) information around the world. Identifying the impact of this information on stock markets and forecasting stock returns and volatilities has become a much more difficult task, perhaps almost impossible. This paper investigates the impact of macroeconomic factors, German government bond yields, sentiment and other leading indicators on the main German stock index, namely the DAX30, for the time period from 1991 to 2018. Using a dataset on 24 factors and over a timeframe of about 27 years, we found evidence that across most subsamples, the Composite Leading Indicator (OECD), the Institute for Economic Research (ifo) Export Expectations index, the ifo Export Climate index, exports, the Consumer Price Index CPI, as well as 3 y German government bonds yields show delayed impacts on stock returns. We further found that the delayed impact of the constituents of the monetary aggregate M2 on stock returns changed direction between the crisis and post-crisis periods. Overall, the results illustrate that in the crisis period a larger number of factors and economic indicators had significant impacts on the stock returns compared to the pre- and post-crisis periods. This implies that in the post-crisis period a macro-driven market prevails. Full article
(This article belongs to the Special Issue Macro News and Financial Variables)
Int. J. Financial Stud. EISSN 2227-7072 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
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