International Journal of Financial Studies

20 pages, 1725 KB

Open AccessArticle

Income Taxes and Firm Competitiveness: A Case Study from the National Football League

by Benjamin Posmanick, Ryan Pinheiro, Dylan Ameis and Sean Fay

Int. J. Financial Stud. 2025, 13(4), 212; https://doi.org/10.3390/ijfs13040212 - 7 Nov 2025

In the National Football League, teams have been subjected to a salary cap, which has prevented teams from paying players in aggregate over a specified value since 1994. The presence of the salary cap provides a unique setting for understanding how tax rates [...] Read more.

In the National Football League, teams have been subjected to a salary cap, which has prevented teams from paying players in aggregate over a specified value since 1994. The presence of the salary cap provides a unique setting for understanding how tax rates affect the competitiveness of teams. We use data on National Football League teams from 1984 to 2000 to create a difference-in-differences model to estimate the effect of state income taxes on team performance. We use college football teams, who do not pay salaries to their amateur players, as the control group to identify causal estimates. We find that, in the presence of the salary cap, team quality, as estimated by a Simple Rating System value, is significantly lower in high-tax states, particularly after the passage of the salary cap. Our results are robust to numerous specifications of the control group. We also show using a decision tree analysis that teams in high-tax states were more likely to be above average before the salary cap. However, after the salary cap, teams from high-tax states are less likely to be above average. Full article

(This article belongs to the Special Issue Sports Finance (2nd Edition))

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27 pages, 4686 KB

Open AccessReview

Decentralized Finance in Business and Economics Research: A Bibliometric Analysis

by Noelia Romero-Castro, M. Ángeles López-Cabarcos, Valentín Vittori-Romero and Juan Piñeiro-Chousa

Int. J. Financial Stud. 2025, 13(4), 211; https://doi.org/10.3390/ijfs13040211 - 6 Nov 2025

Abstract

The constant evolution of Decentralized Finance (DeFi) calls for the continuous monitoring of its developments and implications through a critical review of the academic literature. While DeFi holds promise for enhancing economic activity by expanding market access for enterprises and promoting financial inclusion, [...] Read more.

The constant evolution of Decentralized Finance (DeFi) calls for the continuous monitoring of its developments and implications through a critical review of the academic literature. While DeFi holds promise for enhancing economic activity by expanding market access for enterprises and promoting financial inclusion, concerns remain that digital assets are primarily used for speculative purposes rather than for financing the real economy. This study employs bibliometric methods to investigate whether and how the current academic literature addresses the potential influence of DeFi on real economic dynamics. Employing bibliometric methods—including co-citation, bibliographic coupling, and keyword co-occurrence analyses—focused on DeFi-related publications in the Economics and Business subject areas within the Scopus database, the study maps the knowledge base, author networks, and thematic trends and their temporal evolution, supporting regulators, researchers, and practitioners. The findings reveal that the integration of DeFi with the real economy has received limited attention in scholarly research. This highlights the need for further investigation into DeFi’s implications for financial stability, productive investment, and long-term economic growth. Full article

(This article belongs to the Special Issue Cryptocurrency Markets, Centralized Finance and Decentralized Finance)

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52 pages, 1636 KB

Open AccessArticle

Strategic Complexity and Behavioral Distortion: Retail Investing Under Large Language Model Augmentation

by Dmitrii Gimmelberg and Iveta Ludviga

Int. J. Financial Stud. 2025, 13(4), 210; https://doi.org/10.3390/ijfs13040210 - 6 Nov 2025

Abstract

This conceptual article introduces Perceived Cognitive Assistance (PCA)—a novel psychological construct capturing how interactive support from Large Language Models (LLMs) alters investors’ perception of their cognitive capacity to execute complex trading strategies. PCA formalizes a behavioral shift: LLM-empowered retail investors may transition from [...] Read more.

This conceptual article introduces Perceived Cognitive Assistance (PCA)—a novel psychological construct capturing how interactive support from Large Language Models (LLMs) alters investors’ perception of their cognitive capacity to execute complex trading strategies. PCA formalizes a behavioral shift: LLM-empowered retail investors may transition from intuitive heuristics to institutional-grade strategies—sometimes without adequate comprehension. This empowerment–distortion duality forms the theoretical contribution’s core. To empirically validate this model, this article outlines a five-step research agenda including psychological diagnostics, trading behavior analysis, market efficiency tests, and a Behavioral Shift Index (BSI). One agenda component—a dual-agent simulation framework—enables causal benchmarking in post-LLM environments. This simulation includes two contributions: (1) the Virtual Trader, a cognitively degraded benchmark approximating bounded human reasoning, and (2) the Digital Persona, a psychologically emulated agent grounded in behaviorally plausible logic. These components offer methods for isolating LLM assistance’s cognitive uplift and evaluating behavioral implications under controlled conditions. This article contributes by specifying a testable link from established decision frameworks (Theory of Planned Behavior, Technology Acceptance Model, and Risk-as-Feelings) to two estimators: a moderated regression for individual decisions (Equation (1)) and a composite Behavioral Shift Index derived from trading logs (Equation (2)). We state directional, falsifiable predictions for the regression coefficients and for index dynamics, and we outline an identification and robustness plan—versioned, time-locked, and auditable—to be executed in the subsequent empirical phase. The result is a clear operational pathway from theory to measurement and testing, prior to empirical implementation. No empirical results are reported here; the contribution is the operational, falsifiable architecture and its implementation plan, to be executed in a separate preregistered study. Full article

(This article belongs to the Special Issue Advances in Behavioural Finance and Economics 2nd Edition)

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25 pages, 647 KB

Open AccessArticle

The Impact of Environmental Strategies and Accounting Practices on Corporate Environmental Performance: Evidence from Greece

by Athina Eva Voskopoulou, Petros Lois, Alkis Thrassou and George Drogalas

Int. J. Financial Stud. 2025, 13(4), 209; https://doi.org/10.3390/ijfs13040209 - 5 Nov 2025

Abstract

This study explores the impact of environmental accounting practices on corporate environmental performance in Greek enterprises. Grounded in environmental management accounting (EMA), strategic management theory, Stakeholder Theory, and Institutional Theory, it employs a quantitative analysis of data collected via a Likert-type questionnaire in [...] Read more.

This study explores the impact of environmental accounting practices on corporate environmental performance in Greek enterprises. Grounded in environmental management accounting (EMA), strategic management theory, Stakeholder Theory, and Institutional Theory, it employs a quantitative analysis of data collected via a Likert-type questionnaire in 2024. The focus lies in GRI-based indicators, green technologies, environmental investments, and reporting mechanisms. While international standards such as ISO 14001 and EMAS are considered conceptually, they are not empirically assessed. Data were analyzed using IBM SPSS Statistics (version 29.0) and SmartPLS (version 4.0). The results show that organizations implementing structured environmental accounting systems experience enhanced environmental performance, including greater transparency, regulatory compliance, and innovation capacity. This study fills a gap in the Greek context and emphasizes the strategic role of environmental accounting in advancing sustainability and competitiveness. Full article

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28 pages, 571 KB

Open AccessArticle

A New Puzzle Piece for the “Sell in May, and Go Away” Anomaly: Regulatory Disclosures

by Jan L. Schroeder

Int. J. Financial Stud. 2025, 13(4), 208; https://doi.org/10.3390/ijfs13040208 - 5 Nov 2025

Abstract

We propose a new puzzle piece for the Halloween effect (“Sell in May and Go Away”) by identifying a seasonal pattern in SEC regulatory disclosures that aligns with the effect’s summer and winter periods. From 2004 to 2023, SEC filing volumes were 17% [...] Read more.

We propose a new puzzle piece for the Halloween effect (“Sell in May and Go Away”) by identifying a seasonal pattern in SEC regulatory disclosures that aligns with the effect’s summer and winter periods. From 2004 to 2023, SEC filing volumes were 17% higher in winter (November–April) than in summer (May–October). Winter also sees a 22% rise in insider trading, 13% more private securities offerings, 12% more activist investor activity, a 96% increase in shareholder meetings, and 473% more annual reports. February consistently shows the highest number of disclosures, while September shows the lowest. Similar patterns across European markets suggest global consistency. As regulatory filings contain material price-relevant information, this seasonal disclosure pattern offers a new contributing factor to the Halloween effect puzzle. Full article

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21 pages, 365 KB

Open AccessArticle

Quarterly vs. Semiannual Reporting: A Cross-Market Analysis of Earnings Announcement Reactions in the US and Europe

by Mark A. Ritter and Yusuf J. Ugras

Int. J. Financial Stud. 2025, 13(4), 207; https://doi.org/10.3390/ijfs13040207 - 5 Nov 2025

Abstract

This study re-examines the ongoing debate over corporate disclosure frequency amid renewed calls to replace quarterly with semiannual reporting in U.S. markets. While traditional theories hold that frequent disclosure enhances informational efficiency by reducing asymmetry, emerging evidence highlights trade-offs involving managerial myopia, earnings [...] Read more.

This study re-examines the ongoing debate over corporate disclosure frequency amid renewed calls to replace quarterly with semiannual reporting in U.S. markets. While traditional theories hold that frequent disclosure enhances informational efficiency by reducing asymmetry, emerging evidence highlights trade-offs involving managerial myopia, earnings management, and heightened short-term volatility. Using data from 2007 to 2024, the study compares Dow Jones Industrial Average firms, which report quarterly, with STOXX 50 firms, which report semiannually, to assess how disclosure cadence affects market reactions to earnings news The methodology involves identifying volatility regimes using Self-Exciting Threshold Autoregressive (SETAR) models, estimating dynamic betas with the GARCH(1,1) model, and analyzing shock transmission through vector autoregressions with cumulative impulse response functions (CIRFs). The results show that quarterly reporters exhibit larger immediate price reactions but faster normalization, implying that more frequent reporting accelerates information assimilation while amplifying contemporaneous volatility. Sectoral heterogeneity is pronounced: cyclical industries display higher beta volatility and steeper, but shorter-lived responses, whereas defensive stocks exhibit smoother convergence. These findings suggest that disclosure frequency influences both the intensity and duration of information shocks, providing insights for regulators who aim to balance transparency, market efficiency, and reporting costs across varying volatility and sectoral environments. Full article

(This article belongs to the Special Issue Stock Market Developments and Investment Implications)

23 pages, 1356 KB

Open AccessArticle

Digital Transformation in Accounting: An Assessment of Automation and AI Integration

by Carlos Sampaio and Rui Silva

Int. J. Financial Stud. 2025, 13(4), 206; https://doi.org/10.3390/ijfs13040206 - 5 Nov 2025

Abstract

This study conducts a bibliometric analysis of the scientific literature on digital, automated, and AI-assisted accounting systems. The data include documents listed in the Web of Science and Scopus databases. The analysis identifies the main authors, countries/territories, sources, and thematic trends. The results [...] Read more.

This study conducts a bibliometric analysis of the scientific literature on digital, automated, and AI-assisted accounting systems. The data include documents listed in the Web of Science and Scopus databases. The analysis identifies the main authors, countries/territories, sources, and thematic trends. The results reveal that the scientific output within this research field has increased since 2018, emphasising the integration of artificial intelligence (AI), robotic process automation, and blockchain technologies in accounting. The findings also suggest that automation enhances efficiency, accuracy, and reliability while also raising concerns about ethics, cybersecurity, and job displacement. This study evaluates the accounting research from early discussions on information systems and automation to current topics such as digital transformation, sustainability, and intelligent decision-making. Furthermore, it contributes to the understanding of the scientific development of digital accounting and addresses future research directions involving AI and machine learning for predictive analytics and fraud detection, blockchain for secure and transparent accounting systems, sustainability through the integration of ESG reporting, and interdisciplinary collaboration between accounting, computer science, and business management to develop intelligent financial systems. The findings provide insights for academics and practitioners aiming to understand the ongoing digital transformation of accounting systems. Full article

(This article belongs to the Special Issue Technologies and Financial Innovation)

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20 pages, 2554 KB

Open AccessArticle

The Dynamic Relationship Between Digital Currency and Other Financial Assets in Developed and Emerging Markets

by Lumengo Bonga-Bonga and Muhammad Khalique

Int. J. Financial Stud. 2025, 13(4), 205; https://doi.org/10.3390/ijfs13040205 - 3 Nov 2025

Abstract

This paper investigates the relationship between cryptocurrencies and other financial assets, with a particular focus on the dynamics of information flow between developed and emerging markets. To achieve this objective, the study applies a combined methodology of spillover index analysis and network topology [...] Read more.

This paper investigates the relationship between cryptocurrencies and other financial assets, with a particular focus on the dynamics of information flow between developed and emerging markets. To achieve this objective, the study applies a combined methodology of spillover index analysis and network topology based on graph theory. The analysis covers key cryptocurrencies (Bitcoin and Ethereum), stocks, and conventional currencies over the period November 2017 to September 2022, and distinguishes between short-term and long-run dynamics. The empirical findings show that in the short run, Bitcoin and Ethereum predominantly act as net shock transmitters, whereas in the long run, stocks and conventional currencies, together with Bitcoin and Ethereum, become the principal conveyors of spillover shocks. The network topology analysis corroborates these results by revealing the centrality of these assets in the spillover structure. By integrating spillover and network approaches across different markets and time horizons, this study contributes to the literature by providing a more nuanced understanding of how cryptocurrencies interact with traditional financial assets under varying market conditions. Full article

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21 pages, 512 KB

Open AccessArticle

Determinants of M&A Acquisition Premiums on the European Market in the Period of 2009 to 2022

by Marc Brixius, Jens Kai Perret, Jörg Schröder and Kamilė Taujanskaitė

Int. J. Financial Stud. 2025, 13(4), 204; https://doi.org/10.3390/ijfs13040204 - 3 Nov 2025

Abstract

This study analyzes the development and determinants of control premiums in mergers and acquisitions in the European market from 2009 to 2022 (i.e., stock volatility, liquidity via money supply, sectoral growth, transaction volume, market capitalization, free cash flows, presence of a toehold, public [...] Read more.

This study analyzes the development and determinants of control premiums in mergers and acquisitions in the European market from 2009 to 2022 (i.e., stock volatility, liquidity via money supply, sectoral growth, transaction volume, market capitalization, free cash flows, presence of a toehold, public listing, cross-border transactions, payment types, and sectoral relatedness), whereby control premiums represent the premium that buyers pay above the current market value of a company to gain control. The empirical analysis implements linear as well as quantile regression analyses. Results reveal that the average and median premiums fluctuated notably between 2009 and 2022, with the lowest premiums paid in 2009 and the highest in 2022. Factors such as the volatility of the stock market, capital liquidity, and deal activity within certain sectors have a consistently significant influence on the level of premiums if a longer period of analysis is selected. Cross-border status, payment structure, stock market listing of the acquiring company, and the build-up of a toehold influence the premiums paid in shorter- and longer-term analyses. In contrast, neither the market capitalization nor the free cash flow of the target company has a significant influence on the premiums paid. Full article

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22 pages, 325 KB

Open AccessArticle

The Impact of Trade Secrecy Protection on Audit Pricing

by Peng Gao, Karel Hrazdil, Jiyuan Li and Jingjing Xia

Int. J. Financial Stud. 2025, 13(4), 203; https://doi.org/10.3390/ijfs13040203 - 1 Nov 2025

Abstract

Because auditors have access to corporate information, a firm’s decision to protect material trade secrets should, in principle, not influence audit effort. We analyze the effects of trade secrecy protection on the audit fees, documenting that firms with redacted information pay significantly higher [...] Read more.

Because auditors have access to corporate information, a firm’s decision to protect material trade secrets should, in principle, not influence audit effort. We analyze the effects of trade secrecy protection on the audit fees, documenting that firms with redacted information pay significantly higher fees than those that do not redact information. In cross-sectional tests, we further document that the relationship between redaction and audit fees is significantly influenced by both auditor and client characteristics. Consistent with the premise that redaction increases the complexity of the audit—particularly if auditors view redacted disclosures as indicators of potential business or litigation risk—the regression results indicate that the main effect is moderated by auditor factors such as specialization, tenure, and quality, as well as client factors like existing relationships, bargaining power, and reporting quality. These insights contribute to ongoing discussions in audit policy by illustrating how confidential disclosure practices affect audit effort and costs. Overall, our results inform policymakers seeking to reconcile firms’ proprietary information protection with public interest in transparent and credible financial reporting. Full article

(This article belongs to the Special Issue Financial Reporting, Reputation, and Earnings Quality)

29 pages, 850 KB

Open AccessArticle

AI, Sustainability and Value Creation: Empirical Insights from Saudi Banks (2015–2024)

by Amina Hamdouni

Int. J. Financial Stud. 2025, 13(4), 202; https://doi.org/10.3390/ijfs13040202 - 31 Oct 2025

Abstract

The objective of this study is to investigate how responsible AI governance mechanisms influence value creation and sustainability in Saudi banks over the period 2015–2024. Using a panel dataset from listed Saudi banks and combining ESG disclosure metrics with financial indicators, we investigate [...] Read more.

The objective of this study is to investigate how responsible AI governance mechanisms influence value creation and sustainability in Saudi banks over the period 2015–2024. Using a panel dataset from listed Saudi banks and combining ESG disclosure metrics with financial indicators, we investigate whether AI adoption and AI-related disclosures enhance banks’ market and accounting performance while strengthening sustainability outcomes. We apply robust panel regressions, control for bank-specific characteristics, and run sensitivity checks to address endogeneity and measurement concerns. The empirical findings indicate that higher levels of AI adoption are positively and significantly associated with both value creation and sustainability performance. Furthermore, Dumitrescu–Hurlin panel Granger causality tests confirm a unidirectional causal relationship from AI adoption to both financial and sustainability outcomes. Overall, the results suggest that responsible AI integration may enhance sustainable value creation in the Saudi banking sector. Full article

(This article belongs to the Special Issue Financial System in the Digital Age: Opportunities, Challenges and Future Directions)

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23 pages, 930 KB

Open AccessArticle

Stock Price Prediction Using a Stacked Heterogeneous Ensemble

by Michael Parker, Mani Ghahremani and Stavros Shiaeles

Int. J. Financial Stud. 2025, 13(4), 201; https://doi.org/10.3390/ijfs13040201 - 28 Oct 2025

Abstract

Forecasting stock price ranges remains a significant challenge because of the non-linear nature of financial data. This study proposes and evaluates a stacking ensemble model for range-based volatility forecasting, using open, high, low, and close (OHLC) prices. The model integrates a diverse, heterogeneous [...] Read more.

Forecasting stock price ranges remains a significant challenge because of the non-linear nature of financial data. This study proposes and evaluates a stacking ensemble model for range-based volatility forecasting, using open, high, low, and close (OHLC) prices. The model integrates a diverse, heterogeneous set of base learners, such as statistical (ARIMA), machine learning (Random Forest), and deep learning (LSTM, GRU, Transformer) models, with an XGBoost meta-learner. Applied to several major financial indices and a single stock, the proposed framework demonstrates high predictive accuracy, achieving

R^{2}

scores between 0.9735 and 0.9905. These results highlight the efficacy of a multi-faceted stacking approach in navigating the complexities of financial forecasting. Full article

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30 pages, 659 KB

Open AccessArticle

Hedge Fund Activism, Voice and Value Creation

by Christos Bouras and Efstathios Karpouzis

Int. J. Financial Stud. 2025, 13(4), 200; https://doi.org/10.3390/ijfs13040200 - 24 Oct 2025

Abstract

We construct a novel hand-collected large dataset of 205 U.S. hedge funds and 1025 activist events over the period 2005–2013, which records both the Schedule 13D filing date and the voice date, and explore the role of voice in value creation. We employ [...] Read more.

We construct a novel hand-collected large dataset of 205 U.S. hedge funds and 1025 activist events over the period 2005–2013, which records both the Schedule 13D filing date and the voice date, and explore the role of voice in value creation. We employ alternative inferential statistical approaches, including parametric, non-parametric, and heteroscedasticity-robust tests. We reveal that the voice date is important in creating short-term firm value and provide strong evidence that voice is associated with positive abnormal returns. These findings suggest that voice leads to information revelation, with implications for U.S. stock market arbitrage. Full article

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21 pages, 520 KB

Open AccessArticle

Digital Financial Inclusion as a Mediator of Digital Financial Literacy and Government Support in MSME Performance

by Charles Tandilino, Grace T. Pontoh, Darmawati Darmawati and Aini Indrijawati

Int. J. Financial Stud. 2025, 13(4), 199; https://doi.org/10.3390/ijfs13040199 - 24 Oct 2025

Abstract

The digital economy creates new opportunities for micro, small, and medium enterprises (MSMEs) in Indonesia to enhance their competitiveness through the adoption of financial technology. This study examines how digital financial inclusion (DFI) mediates the effects of digital financial literacy (DFL) and government [...] Read more.

The digital economy creates new opportunities for micro, small, and medium enterprises (MSMEs) in Indonesia to enhance their competitiveness through the adoption of financial technology. This study examines how digital financial inclusion (DFI) mediates the effects of digital financial literacy (DFL) and government support (GS) on MSME performance. This mediating relationship remains underexplored in developing countries, offering new insights into how it drives business advancement. A quantitative approach was applied using partial least squares structural equation modeling (PLS-SEM) based on survey data from 260 culinary MSME owners. The results indicate that knowledge-based resources and institutional support positively influence performance through DFI. DFI drives improvement by expanding market reach, increasing operational efficiency, facilitating transactions, optimizing the value of financial activities, and broadening access to financing. These findings underline the importance of policies that promote inclusive digital ecosystems and strengthen digital capability. Future research approaches should emphasize the integration of behavioral factors, institutional support, and business performance within the evolving MSME ecosystem and can be further developed through longitudinal or cross-sectoral studies to understand the sustainable dynamics of digital transformation. Full article

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19 pages, 2763 KB

Open AccessArticle

Bridging the ESG Data Gap: Transparent Metrics and Rankings for Emerging Financial Markets

by Azhar Rim Qachach, Badr El Mahrad, Omar Kharbouch, Aniss Moumen, Sara El Aoufi, Manal El Gueddari and Soukaina Abdallah-Ou-Moussa

Int. J. Financial Stud. 2025, 13(4), 198; https://doi.org/10.3390/ijfs13040198 - 20 Oct 2025

Abstract

Environmental, Social, and Governance (ESG) performance has become a pivotal driver of firm valuation, investment flows, and capital market stability and a critical dimension of corporate sustainability and investor decision-making. Yet, emerging markets face structural barriers to standardized ESG measurement due to limited [...] Read more.

Environmental, Social, and Governance (ESG) performance has become a pivotal driver of firm valuation, investment flows, and capital market stability and a critical dimension of corporate sustainability and investor decision-making. Yet, emerging markets face structural barriers to standardized ESG measurement due to limited data availability and inconsistent disclosures. This study addresses this gap by developing a simplified, transparent and indicator-based ESG assessment model tailored to the Moroccan capital market using publicly available data from 20 companies listed in the MASI ESG Index on the Casablanca Stock Exchange. The framework evaluates 12 equally weighted indicators across environmental, social, and governance pillars, and employs the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), a Multi-Criteria Decision-Making (MCDM) method, to generate firm-level ESG scores and rankings. In addition to equal-weighted rankings, the model was stress-tested using entropy-based and expert-informed weights. Results reveal a wide disparity in ESG maturity: while environmental reporting is relatively advanced, social and governance disclosures lag behind. Top-ranking firms align closely with international frameworks such as GRI, whereas others lack fundamental transparency. By offering a replicable, low-data ESG scoring method applicable to other emerging markets, this research provides actionable insights for investors, regulators, and corporate leaders. The findings contribute to the financial literature on ESG integration, support the design of sustainable investment strategies, and advance policy efforts to strengthen capital market resilience across the MENA region. Full article

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18 pages, 549 KB

Open AccessArticle

Does Bitcoin Add to Risk Diversification of Alternative Investment Fund Portfolio?

by Manu Sharma

Int. J. Financial Stud. 2025, 13(4), 197; https://doi.org/10.3390/ijfs13040197 - 20 Oct 2025

Abstract

Venture capital investment and hedge fund investment are two asset classes of alternative investment fund portfolios. The purpose of this study was to determine whether the digital currency named bitcoin truly adds to diversification in an alternative investment fund portfolio. Vector auto regression [...] Read more.

Venture capital investment and hedge fund investment are two asset classes of alternative investment fund portfolios. The purpose of this study was to determine whether the digital currency named bitcoin truly adds to diversification in an alternative investment fund portfolio. Vector auto regression was used to determine any unidirectional or bidirectional relationship between variables. The DCC-GARCH test was conducted to determine any conditional correlations that impact volatility transmission over a shorter and longer duration of time between variables. The results showed that there was no unidirectional or bidirectional relationship between bitcoin and FTSE venture capital index, as well as between bitcoin and the Barclays Hedge Fund Index. The DCC model showed no volatility transmission between bitcoin and the Barclays Hedge Fund Index, whereas volatility persists between bitcoin and the FTSE Venture Capital Index, connecting risk between the financial time series with only low correlations. These findings suggest that bitcoin could be used by investors, policy makers, and hedgers for diversification in alternative investment fund portfolios. Full article

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18 pages, 2384 KB

Open AccessArticle

Empirical Analysis of Economic Impact of Monetary Policy and Fiscal Policy in China Under Global Uncertainty

by Warattaya Chinnakum, Htwe Ko, Jianming Xie, Minglang Wu and Chukiat Chaiboonsri

Int. J. Financial Stud. 2025, 13(4), 196; https://doi.org/10.3390/ijfs13040196 - 20 Oct 2025

Abstract

This study examines how monetary and fiscal policies affect economic growth in China under global economic uncertainty. We estimate a Markov Switching Regression (MSR) model using quarterly data from 1996: Q1 to 2024: Q4. We also apply Bayesian Model Averaging (BMA) to choose [...] Read more.

This study examines how monetary and fiscal policies affect economic growth in China under global economic uncertainty. We estimate a Markov Switching Regression (MSR) model using quarterly data from 1996: Q1 to 2024: Q4. We also apply Bayesian Model Averaging (BMA) to choose the relevant control variables. During expansions, higher policy rates, government revenue, moderate inflation, FDI inflows, and export growth support growth. Government expenditure can crowd out private investment. During recessions, higher policy rates reduce growth. Government expenditure has limited impact, but revenue collection remains growth-supportive. Global uncertainty steadily reduces growth. Government expenditure shows negative effects, which indicates possible crowding out. The findings support that monetary and fiscal policies coordination may sustain long-term growth in China and strengthen the resilience amid global uncertainty. The Impulse response functions (IRFs) from Bayesian Vector Autoregression (BVAR) confirm the persistence and dynamics of policy shocks under global uncertainty. This study adds to the empirical literature on the role of macroeconomic policies in shaping economic growth in the case of China. Full article

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18 pages, 1838 KB

Open AccessArticle

Quantitative Modeling of Speculative Bubbles, Crash Dynamics, and Critical Transitions in the Stock Market Using the Log-Periodic Power-Law Model

by Avi Singh, Rajesh Mahadeva, Varun Sarda and Amit Kumar Goyal

Int. J. Financial Stud. 2025, 13(4), 195; https://doi.org/10.3390/ijfs13040195 - 17 Oct 2025

Abstract

The global economy frequently experiences cycles of rapid growth followed by abrupt crashes, challenging economists and analysts in forecasting and risk management. Crashes like the dot-com bubble crash and the 2008 global financial crisis caused huge disruptions to the world economy. These crashes [...] Read more.

The global economy frequently experiences cycles of rapid growth followed by abrupt crashes, challenging economists and analysts in forecasting and risk management. Crashes like the dot-com bubble crash and the 2008 global financial crisis caused huge disruptions to the world economy. These crashes have been found to display somewhat similar characteristics, like rapid price inflation and speculation, followed by collapse. In search of these underlying patterns, the Log-Periodic Power-Law (LPPL) model has emerged as a promising framework, capable of capturing self-reinforcing dynamics and log-periodic oscillations. However, while log-periodic structures have been tested in developed and stable markets, they lack validation in volatile and developing markets. This study investigates the applicability of the LPPL framework for modeling financial crashes in the Brazilian stock market, which serves as a representative case of a volatile market, particularly through the Bovespa Index (IBOVESPA). In this study, daily data spanning 1993 to 2025 is analyzed to model pre-crash oscillations and speculative bubbles for five major market crashes. In addition to the traditional LPPL model, autoregressive residual analysis is incorporated to account for market noise and improve predictive accuracy. The results demonstrate that the enhanced LPPL model effectively captures pre-crash oscillations and critical transitions, with low error metrics. Eigenstructure analysis of the Hessian matrices highlights stiff and sloppy parameters, emphasizing the pivotal role of critical time and frequency parameters. Overall, these findings validate LPPL-based nonlinear modeling as an effective approach for anticipating speculative bubbles and crash dynamics in complex financial systems. Full article

(This article belongs to the Special Issue Stock Market Developments and Investment Implications)

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26 pages, 1010 KB

Open AccessReview

Harmonizing Sustainability and Resilience: The Integral Role of Internal Audit in ESG Implementation—A Review

by Spyridon D. Lampropoulos, Georgios L. Thanasas, Alexandros Garefalakis and Ioannis Passas

Int. J. Financial Stud. 2025, 13(4), 194; https://doi.org/10.3390/ijfs13040194 - 16 Oct 2025

Abstract

This comprehensive literature review delves into the dynamic role of Internal Audit (IA) in addressing sustainability, resilience, and Environmental, Social, and Governance (ESG) considerations within organizations. It addresses two fundamental inquiries: Firstly, it examines how Internal Audit actively contributes to an organization’s sustainability [...] Read more.

This comprehensive literature review delves into the dynamic role of Internal Audit (IA) in addressing sustainability, resilience, and Environmental, Social, and Governance (ESG) considerations within organizations. It addresses two fundamental inquiries: Firstly, it examines how Internal Audit actively contributes to an organization’s sustainability and resilience initiatives through the effective implementation of ESG strategies. Secondly, it investigates methods for quantifying the additional value generated by ESG implementation. The review underscores the pivotal role of corporate responsibility (CR) and sustainable, responsible investment (SRI) in shaping the value proposition of ESG practices. Synthesizing diverse research findings, the review reveals that robust ESG practices not only foster enhanced profitability but also bolster market value. Significantly, it underscores the indispensable role of Internal Audit in effectively navigating the complex and evolving ESG landscape, thereby ensuring organizational resilience and sustainable growth. Full article

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