International Journal of Financial Studies

20 pages, 784 KiB

Open AccessArticle

Adapting the National Financial Capability Test to Address Generational Differences in Cognitive Biases

by Sergio Da Silva, Ana Paraboni and Raul Matsushita

Int. J. Financial Stud. 2024, 12(4), 124; https://doi.org/10.3390/ijfs12040124 - 11 Dec 2024

This study examined the influence of cognitive biases on financial literacy test outcomes across four generational groups: Gen Z, Millennials, Gen X, and Baby Boomers. Using the National Financial Capability Test and an online in silico experiment, we analyzed how cognitive biases influence [...] Read more.

This study examined the influence of cognitive biases on financial literacy test outcomes across four generational groups: Gen Z, Millennials, Gen X, and Baby Boomers. Using the National Financial Capability Test and an online in silico experiment, we analyzed how cognitive biases influence the likely responses of each generation. The results indicate that the current test format aligns more closely with Baby Boomers, who are less affected by certain biases but tend to exhibit resistance to new financial strategies. A key contribution of this research is the identification of generational bias profiles and actionable recommendations for tailoring financial literacy assessments to reflect these differences. Our approach not only advances behavioral finance literature but also introduces innovative methodology through AI-driven simulations, providing a replicable framework for exploring cognitive influences in decision-making. The findings underscore the need for tailored financial education programs that consider these cognitive biases, aiming to foster unbiased financial decision-making across age groups. Full article

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18 pages, 361 KiB

Open AccessArticle

More Quality, Less Trust?

by Michael Dreyfuss, Yahel Giat and Eran Manes

Int. J. Financial Stud. 2024, 12(4), 123; https://doi.org/10.3390/ijfs12040123 - 9 Dec 2024

Abstract

This study investigates how an increase in the quality of business ventures, measured as their success probability, affects trust and return on investment (ROI) in situations where the investor–entrepreneur interaction is affected by moral hazard and asymmetric information. We model a repeated trust [...] Read more.

This study investigates how an increase in the quality of business ventures, measured as their success probability, affects trust and return on investment (ROI) in situations where the investor–entrepreneur interaction is affected by moral hazard and asymmetric information. We model a repeated trust problem between investors and entrepreneurs, featuring moral hazard and adverse selection. Hidden Markov techniques and computer simulations are used to derive the main results. We find that trust and ROI may decline as quality improves. Although lenders tend to reduce the requirements for granting initial credit, they nevertheless become less tolerant of current borrowers who fail to pay back. Additionally, we demonstrate a novel substitution effect, where lenders prefer new borrowers over existing borrowers that experienced early failures. The main conclusions of our study are that while impressing early on is effective in gaining first access to credit, it may nevertheless hurt the cause of getting credit in subsequent periods, following an early failure. In business environments plagued with ex post moral hazard, entrepreneurs might do better by gaining trust first and impressing later. Furthermore, our results imply that in a thriving economy, not only are bad loans made, but good loans are lost as well. Full article

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21 pages, 781 KiB

Open AccessArticle

FinTech Implementation Challenges in the Palestinian Banking Sector

by Jamal Hurani, Mohammed Kayed Abdel-Haq and Emir Camdzic

Int. J. Financial Stud. 2024, 12(4), 122; https://doi.org/10.3390/ijfs12040122 - 4 Dec 2024

Abstract

This study addresses FinTech implementation challenges in the banking industry in Palestine. This was accomplished by adopting qualitative research methods. Semi-structured interviews were conducted with interviewees from the Palestinian Monetary Authority, banks, and FinTech companies. Thematic analysis was conducted using NVivo 12 software [...] Read more.

This study addresses FinTech implementation challenges in the banking industry in Palestine. This was accomplished by adopting qualitative research methods. Semi-structured interviews were conducted with interviewees from the Palestinian Monetary Authority, banks, and FinTech companies. Thematic analysis was conducted using NVivo 12 software to identify themes in the interview scripts. Research outcomes suggest that FinTech development in Palestine encounters a range of multifaceted challenges, which can be categorised using the TOE (technological, organisational, environmental) framework. On the technological front, issues such as underdeveloped IT and telecommunications infrastructure, restricted mobile frequencies due to Israeli occupation, limited IT expertise, cyber risks, low digital literacy, and minimal FinTech awareness hinder progress. Organizationally, resistance to change, inadequate agility, limited digital skills, and slow Sharia compliance updates in Islamic banking impede innovation. Environmentally, the absence of a dedicated FinTech framework, unclear regulatory guidance, limited market size, and strict AML/CFT regulations create uncertainties for non-bank entities and restrict investment opportunities. Addressing these interconnected barriers requires coordinated efforts across legal, financial, and technological sectors to foster FinTech integration and growth in Palestine. Full article

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30 pages, 1746 KiB

Open AccessArticle

Food Financialization: Impact of Derivatives and Index Funds on Agri-Food Market Volatility

by María del Rosario Venegas, Jorge Feregrino, Nelson Lay and Juan Felipe Espinosa-Cristia

Int. J. Financial Stud. 2024, 12(4), 121; https://doi.org/10.3390/ijfs12040121 - 3 Dec 2024

Abstract

This study explores the financialization of agricultural commodities, focusing on how financial derivatives and index funds impact the volatility of agro-food markets. Using a Dynamic Conditional Correlation (DCC) GARCH model, we analyze volatility spillovers among key agricultural commodities, particularly maize, and related financial [...] Read more.

This study explores the financialization of agricultural commodities, focusing on how financial derivatives and index funds impact the volatility of agro-food markets. Using a Dynamic Conditional Correlation (DCC) GARCH model, we analyze volatility spillovers among key agricultural commodities, particularly maize, and related financial assets over a sample period from 2007 to 2020. Our analysis includes major financial assets like Exchange-Traded Funds (ETFs), the S&P 500 index, and agribusiness corporations such as ADM and Bunge and the largest corn flour producer, GRUMA. The results indicate that financial speculation, especially via passive investments such as ETFs, has intensified price volatility in commodity futures, leading to a systemic risk increase within the sector. This study provides empirical evidence of increased market integration between the agro-food sector and financial markets, underscoring risks to food security and economic stability. We conclude with recommendations for regulatory actions to mitigate systemic risks posed by the growing financial influence in agricultural markets. Full article

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19 pages, 932 KiB

Open AccessArticle

Digital Financial Knowledge Scale (DFKS): Insights from a Developing Economy

by Kelmara Mendes Vieira, Taiane Keila Matheis, Eliete dos Reis Lehnhart and Fernando Oliveira Tavares

Int. J. Financial Stud. 2024, 12(4), 120; https://doi.org/10.3390/ijfs12040120 - 2 Dec 2024

Abstract

This work aims to create and validate the digital financial knowledge scale (DFKS). Three studies were carried out, including a focus group, expert validation, pre-testing, and the application of item response theory. From these procedures, two versions of the scale were constructed and [...] Read more.

This work aims to create and validate the digital financial knowledge scale (DFKS). Three studies were carried out, including a focus group, expert validation, pre-testing, and the application of item response theory. From these procedures, two versions of the scale were constructed and validated. An evaluation and classification methodology was proposed. Two versions for measuring digital financial knowledge are presented. The long version is composed of 40 items and the short version has 26 items. Applying the proposed methodology, it is possible to classify the level of digital financial knowledge as low, intermediate, or high. The DFKS can be useful for both financial system agents and governments and researchers, who can use it in different contexts. In the banking sector, identifying the level of digital financial knowledge can reduce risks, as losses suffered by clients due to an uninformed adoption of digital banking services break the relationship of trust and can lead to lower financial inclusion. Full article

(This article belongs to the Special Issue Advance in the Theory and Applications of Financial Literacy)

16 pages, 786 KiB

Open AccessFeature PaperArticle

Anonymity in Dealer-to-Customer Markets

by Daniela T. Di Cagno, Paola Paiardini and Emanuela Sciubba

Int. J. Financial Stud. 2024, 12(4), 119; https://doi.org/10.3390/ijfs12040119 - 29 Nov 2024

Abstract

We use a laboratory experiment to explore the effect of a change in pre-trade anonymity in a quote-driven dealer-to-customer market, organised as a request for quote (RFQ). We consider two treatments in which dealers interact with two types of customers (informed or uninformed). [...] Read more.

We use a laboratory experiment to explore the effect of a change in pre-trade anonymity in a quote-driven dealer-to-customer market, organised as a request for quote (RFQ). We consider two treatments in which dealers interact with two types of customers (informed or uninformed). In the first treatment, there is no anonymity: dealers know whether the customer that sent them the request for quote is informed or uninformed. In the second treatment, there is complete anonymity: dealers do not know the type of customers they are interacting with. We find that anonymity improves price efficiency, whereas it does not adversely impact dealers’ trading profits. Our results contribute to the debate on transparency versus the adoption of anonymity in financial markets. Full article

(This article belongs to the Special Issue Market Microstructure and Liquidity)

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13 pages, 1755 KiB

Open AccessArticle

A Hybrid of Box-Jenkins ARIMA Model and Neural Networks for Forecasting South African Crude Oil Prices

by Johannes Tshepiso Tsoku, Daniel Metsileng and Tshegofatso Botlhoko

Int. J. Financial Stud. 2024, 12(4), 118; https://doi.org/10.3390/ijfs12040118 - 28 Nov 2024

Abstract

The current study aims to model the South African crude oil prices using the hybrid of Box-Jenkins autoregressive integrated moving average (ARIMA) and Neural Networks (NNs). This study introduces a hybrid approach to forecasting methods aimed at resolving the issues of lack of [...] Read more.

The current study aims to model the South African crude oil prices using the hybrid of Box-Jenkins autoregressive integrated moving average (ARIMA) and Neural Networks (NNs). This study introduces a hybrid approach to forecasting methods aimed at resolving the issues of lack of precision in forecasting. The proposed methodology includes two models, namely, hybridisation of ARIMA with artificial neural network (ANN)-based Extreme Learning Machine (ELM) and ARIMA with general regression neural network (GRNN) to model both linear and nonlinear simultaneously. The models were compared with the base ARIMA model. The study utilised monthly time series data spanning from January 2021 to March 2023. The formal stationarity test confirmed that the crude oil price series is integrated of order one, I(1). For the linear process, the ARIMA (2,1,2) model was identified as the best fit for the series and successfully passed all diagnostic tests. The ARIMA-ANN-based ELM hybrid model outperformed both the individual ARIMA model and the ARIMA-GRNN hybrid. However, the ARIMA model also showed better performance than the ARIMA-GRNN hybrid, highlighting its strong competitiveness compared to the ARIMA-ANN-based ELM model. The hybrid models are recommended for use by policy makers and practitioners in general. Full article

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22 pages, 1468 KiB

Open AccessArticle

Quantile Spillovers and Connectedness Between Real Estate Investment Trust, the Housing Market, and Investor Sentiment

by Elroi Hadad, Thai Hong Le and Anh Tram Luong

Int. J. Financial Stud. 2024, 12(4), 117; https://doi.org/10.3390/ijfs12040117 - 28 Nov 2024

Abstract

This paper examines the quantile connectedness between Real Estate Investment Trusts (REITs), housing market sentiment, and stock market sentiment in the U.S. over the period between January 2014 and June 2022 using the quantile vector autoregression (QVAR) model. We find modest spillover effects [...] Read more.

This paper examines the quantile connectedness between Real Estate Investment Trusts (REITs), housing market sentiment, and stock market sentiment in the U.S. over the period between January 2014 and June 2022 using the quantile vector autoregression (QVAR) model. We find modest spillover effects at the median quantile (8.51%), which become more pronounced at the extreme tails (between 50.51% and 59.73%). The COVID-19 pandemic amplifies these interconnections. REITs are net receivers at the median but net transmitters at extreme quantiles, while stock market sentiment mainly transmits during normal conditions and receives in highly bullish markets. Home purchase sentiment shifts from fluctuating roles before the pandemic to being a net transmitter post-2021. Overall, negative shocks have a greater impact than positive ones, and REITs exhibit stock-like behavior. These findings underscore the importance for fund managers and investors to consider sentiment volatility in both stock and real estate markets, especially during extreme market conditions. Full article

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

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14 pages, 304 KiB

Open AccessArticle

Developing a Measure of Financial Privacy: A Pilot Study of U.S. College Students

by Thomas A. Hanson and Andrew J. Byrd

Int. J. Financial Stud. 2024, 12(4), 116; https://doi.org/10.3390/ijfs12040116 - 21 Nov 2024

Abstract

This study applied communication privacy management (CPM) theory to develop a new measure of financial privacy, encompassing three dimensions of ownership, permeability, and linkages. The exploratory factor analysis was based on a pilot survey of 371 U.S. college students. The development of this [...] Read more.

This study applied communication privacy management (CPM) theory to develop a new measure of financial privacy, encompassing three dimensions of ownership, permeability, and linkages. The exploratory factor analysis was based on a pilot survey of 371 U.S. college students. The development of this scale was motivated by previous research establishing links between financial literacy, financial socialization, and family communication patterns to suggest the importance of understanding and measuring the role of communication and privacy in the transmission of financial knowledge. Therefore, correlations are also presented between the new measure of financial privacy and measures of financial knowledge, confidence, and experience. The financial privacy scale attained adequate validity and reliability to encourage further refinement and utilization in future theoretical and practical research related to family financial socialization. Full article

(This article belongs to the Special Issue Advance in the Theory and Applications of Financial Literacy)

20 pages, 602 KiB

Open AccessArticle

Mobile Financial Services and the Shadow Economy in Southern African Countries: Does Regulatory Quality Matter?

by Adewale Hassan

Int. J. Financial Stud. 2024, 12(4), 115; https://doi.org/10.3390/ijfs12040115 - 21 Nov 2024

Abstract

This study investigated the impact of mobile financial services on the shadow economy in Southern Africa countries and explored how regulatory quality moderates this relationship. Utilising panel data from 1993 to 2022, this study employed dynamic common-correlated effect (DCCE) and dynamic seemingly unrelated [...] Read more.

This study investigated the impact of mobile financial services on the shadow economy in Southern Africa countries and explored how regulatory quality moderates this relationship. Utilising panel data from 1993 to 2022, this study employed dynamic common-correlated effect (DCCE) and dynamic seemingly unrelated regression (DSUR) methods to assess long-run effects. The findings reveal that increased mobile financial services adoption markedly diminishes the scale of the underground economy by enhancing transaction transparency and accessibility, thus drawing more participants into the formal economy. The results are consistent across DCCE and DSUR estimations. Additionally, improvements in regulatory quality further diminish the shadow economy by bolstering trust and compliance within the financial system, suggesting that well-crafted regulations enhance the effectiveness of mobile financial services. Economic and financial sector developments also contribute to a reduced shadow economy, indicating that broader economic growth and advanced financial systems facilitate formal sector participation. Conversely, larger public sector expenditures appear to expand the shadow economy enterprises, likely due to inefficient resource allocation and increased fiscal burdens that push economic activities underground. Policy recommendations include the need to expand mobile financial services infrastructure, enhance financial literacy, and optimise financial regulatory frameworks to balance oversight with innovation encouragement. Full article

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17 pages, 2133 KiB

Open AccessArticle

Black–Scholes 50 Years Later: Has the Outperformance of Passive Option Strategies Finally Faded?

by Andrew Kumiega, Greg Sterijevski and Eric Wills

Int. J. Financial Stud. 2024, 12(4), 114; https://doi.org/10.3390/ijfs12040114 - 20 Nov 2024

Abstract

Slightly over fifty years ago, the Black–Scholes option pricing model revolutionized investing by enabling a shift from linear to non-linear payoff structures. Myron Scholes later published two papers documenting the performance of passive option strategies that outperformed the underlying index on a risk–return [...] Read more.

Slightly over fifty years ago, the Black–Scholes option pricing model revolutionized investing by enabling a shift from linear to non-linear payoff structures. Myron Scholes later published two papers documenting the performance of passive option strategies that outperformed the underlying index on a risk–return basis. The options market has evolved considerably over the last fifty years from an open outcry trading structure with options being single-listed to a high-frequency computer-based market. This paper re-evaluates the trilogy of foundational studies to determine whether passive-option-enhanced portfolios still produce superior performance in the current high-frequency options market environment. Full article

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20 pages, 1411 KiB

Open AccessArticle

Unraveling Youth Indebtedness in China: A Case Study Based on the “Debtors Avengers” Community on Douban

by Junan Zhang and Dong Liu

Int. J. Financial Stud. 2024, 12(4), 113; https://doi.org/10.3390/ijfs12040113 - 13 Nov 2024

Abstract

Over-indebtedness is an increasingly serious issue among young people in China. Using Atlas.ti, this study analyzes textual data from the online community “Debtors Avengers” on Douban.com, applying a combined framework of life cycle and credit liberalization hypotheses. The findings reveal that youth indebtedness [...] Read more.

Over-indebtedness is an increasingly serious issue among young people in China. Using Atlas.ti, this study analyzes textual data from the online community “Debtors Avengers” on Douban.com, applying a combined framework of life cycle and credit liberalization hypotheses. The findings reveal that youth indebtedness is not solely driven by irrational consumer behavior but is closely linked to economic activities during specific life stages. Structurally, it reflects sociofinancial digitization and normalized credit use. Factors such as life circumstances, financial literacy, labor market instability, and public safety risks contribute to a “debt spiral”. Addressing these challenges requires the refinement of financial policies, enhanced education, and intervention in financial aggression. Full article

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19 pages, 807 KiB

Open AccessArticle

Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability

by Luís Lima Santos, Conceição Gomes, Cátia Malheiros, Catarina Crespo and Carla Bento

Int. J. Financial Stud. 2024, 12(4), 112; https://doi.org/10.3390/ijfs12040112 - 13 Nov 2024

Abstract

(1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most [...] Read more.

(1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most effective and least appropriate RM practices for use in periods of low demand and crises, reflecting the financial sustainability perspective. The theoretical framework of this study focuses on the main RM practices, grouping them into price and non-price strategies. (2) Methods: A quantitative methodology was employed, collecting information from Portuguese hotels through an online questionnaire, and statistical analysis using Mann–Whitney and Chi-square tests was conducted. (3) Results: Hotels offered discounts during the pandemic, but room rates were reduced during the recovery period. These findings also revealed that commonly used techniques were the best available rate (BAR) and rate fences, particularly during the pandemic. Quality, brand image, strategic partnerships, and marketing actions are recognised as essential. However, loyalty programs, length of stay (LOS) control, rate parity, and bundled services are not commonly implemented despite their importance during periods of low demand. Larger hotels, five-star hotels, and members of international chains applied more RM practices than smaller four-star independent hotels. (4) Originality: This study provides original and valuable insights into increasing hotel revenues and occupancy rates during future periods of low demand, which benefit financial sustainability. Full article

(This article belongs to the Special Issue Sustainable Corporate Governance and Financial Performance)

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21 pages, 320 KiB

Open AccessArticle

Unveiling Intangible Assets: Exploring Voluntary Disclosure and Its Interaction with Accounting Conservatism and Analyst Attention on Financing Constraints

by Congrong Li and Zhe Ning

Int. J. Financial Stud. 2024, 12(4), 111; https://doi.org/10.3390/ijfs12040111 - 5 Nov 2024

Abstract

This paper examines the relationship between the voluntary disclosure of intangible assets and financing constraints using a sample of 2850 listed companies from 2017 to 2021. Additionally, we examine the moderating effects of prudence in accounting and the attention given to the disclosures [...] Read more.

This paper examines the relationship between the voluntary disclosure of intangible assets and financing constraints using a sample of 2850 listed companies from 2017 to 2021. Additionally, we examine the moderating effects of prudence in accounting and the attention given to the disclosures by analysts from both an internal and an external perspective. The results show that voluntarily disclosing intangible assets helps to alleviate a firm’s financing constraints, with more significant effects observed in state-owned enterprises and companies listed on the Growth Enterprise Market index than for private enterprises and those listed on the main board of the Chinese capital market. Further, conservatism in accounting and attention given by financial analysts both positively moderate this relationship. The theoretical and empirical insights provided by this study should help listed companies in China to enhance the quality of their voluntary intangible asset disclosures, while also helping to mitigate financing constraints. Full article

51 pages, 454 KiB

Open AccessArticle

Corporate Social Responsibility and Country Governance: An International Comparative Study Amid the COVID-19 Pandemic

by Dimitrios Vortelinos, Ioannis Passas, Christos Floros and Alexandros Garefalakis

Int. J. Financial Stud. 2024, 12(4), 110; https://doi.org/10.3390/ijfs12040110 - 1 Nov 2024

Abstract

This paper assesses the association of ESG scores with stock returns and highlights the moderating role of the COVID-19 pandemic and the country’s governance. The study uses panel data regression models to assess the relationship between ESG factors and stock returns, focusing on [...] Read more.

This paper assesses the association of ESG scores with stock returns and highlights the moderating role of the COVID-19 pandemic and the country’s governance. The study uses panel data regression models to assess the relationship between ESG factors and stock returns, focusing on the moderating role of country governance and the COVID-19 pandemic. The results reveal that governance quality significantly enhances the positive effects of ESG practices on returns, particularly during times of crisis. These suggest that higher overall ESG scores are related positively to financial performance, and this relation is enhanced during the COVID-19 pandemic. Specifically, the two dimensions of ESG that matter most are environmental and governance. Country-level governance is important because firms in well-governed countries amplify the benefits of high ESG scores. The opposite is true for the higher controversies scores, whose bad financial outcome is magnified during the pandemic. These results present an argument for the resilience of firm financial performance, dependent on strong ESG practices and governance frameworks. This holds great interest for investors and policymakers in associating good ESG considerations with the effective management of financial risks, leading to sustainable returns during periods of widespread economic uncertainty. Full article

15 pages, 422 KiB

Open AccessArticle

Overcoming Financial Constraints on Firm Innovation: The Role of R&D Human Capital

by Sung-Tae Lee and Sun-Moon Jung

Int. J. Financial Stud. 2024, 12(4), 109; https://doi.org/10.3390/ijfs12040109 - 30 Oct 2024

Abstract

This paper examines how R&D human capital can mitigate the negative effects of financing constraints on firm innovation, using survey data from 4000 South Korean manufacturing firms. The results confirm that financing constraints are generally associated with lower levels of product innovation. However, [...] Read more.

This paper examines how R&D human capital can mitigate the negative effects of financing constraints on firm innovation, using survey data from 4000 South Korean manufacturing firms. The results confirm that financing constraints are generally associated with lower levels of product innovation. However, firms with stronger R&D human capital—measured by higher education levels and a larger proportion of R&D employees—are better able to overcome these financial barriers. Moreover, the positive moderating effect of R&D human capital is significantly enhanced in firms with an entrepreneurial culture, which supports risk-taking and innovation. These findings underscore the importance of investing in intangible assets, such as human capital and fostering a culture of entrepreneurship to sustain innovation during periods of financial distress. Policymakers should consider expanding financial support for R&D activities, particularly for small and medium-sized enterprises (SMEs) that face higher costs of capital. This study contributes to the literature by using direct measures of financial constraints and highlighting the role of human capital in innovation, especially in financially constrained environments. Full article

20 pages, 6077 KiB

Open AccessArticle

Research on the Impact of Economic Policy Uncertainty and Investor Sentiment on the Growth Enterprise Market Return in China—An Empirical Study Based on TVP-SV-VAR Model

by Junxiao Gui, Nathee Naktnasukanjn, Xi Yu and Siva Shankar Ramasamy

Int. J. Financial Stud. 2024, 12(4), 108; https://doi.org/10.3390/ijfs12040108 - 25 Oct 2024

Abstract

This study employs the economic policy uncertainty index to gauge the level of economic policy uncertainty in China. Utilizing textual data from the growth enterprise market internet community, we construct the growth enterprise market investor sentiment index by applying the deep learning ERNIE [...] Read more.

This study employs the economic policy uncertainty index to gauge the level of economic policy uncertainty in China. Utilizing textual data from the growth enterprise market internet community, we construct the growth enterprise market investor sentiment index by applying the deep learning ERNIE (Enhanced Representation through Knowledge Integration) model, thereby capturing investors’ sentiment within the growth enterprise market. The dynamic interplay between economic policy uncertainty, investor sentiment, and returns of the growth enterprise market is scrutinized via the TVP-SV-VAR (time-varying parameter stochastic volatility vector auto-regression) model, and the asymmetric response of different industries’ stock returns within the growth enterprise market to economic policy uncertainty and investor sentiment shock. The findings of this research are that economic policy uncertainty exerts a negative influence on both investor sentiment and returns of the growth enterprise market. While it may trigger a temporary decline in stock prices, the empirical evidence suggests that the impact is of short duration. The influence of investor sentiment on the growth enterprise market returns is characterized by a reversal effect, suggesting that improved sentiment may initially boost stock prices but could lead to a subsequent decline over the long term. The relationship between economic policy uncertainty, investor sentiment, and returns of the growth enterprise market is time-variant, with heightened sensitivity observed during bull markets. Lastly, the effects of economic policy uncertainty and investor sentiment on the returns of different industries within the growth enterprise market are found to be asymmetric. These conclusions contribute to the existing body of literature on the Chinese capital market, offering a deeper understanding of the complex dynamics and the factors influencing market behavior. Full article

(This article belongs to the Special Issue Risks and Uncertainties in Financial Markets)

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30 pages, 738 KiB

Open AccessArticle

Blockchain Tokens, Price Volatility, and Active User Base: An Empirical Analysis Based on Tokenomics

by Roberto Moncada, Enrico Ferro, Maurizio Fiaschetti and Francesca Medda

Int. J. Financial Stud. 2024, 12(4), 107; https://doi.org/10.3390/ijfs12040107 - 23 Oct 2024

Abstract

Blockchain tokens have accumulated tremendous market value but remain highly controversial, given their price volatility and seemingly speculative nature. Ironically, this very characteristic can foster token retention as users wait for occasions of appreciation. In this paper, we conduct an empirical analysis with [...] Read more.

Blockchain tokens have accumulated tremendous market value but remain highly controversial, given their price volatility and seemingly speculative nature. Ironically, this very characteristic can foster token retention as users wait for occasions of appreciation. In this paper, we conduct an empirical analysis with 58 tokens in two steps: first, an investigation of the drivers of user activity and token price volatility using a new blockchain token classification framework, searching for possible tokenomics links. Our findings suggest that there is an intrinsic relationship between the way tokens are used as a means of exchange and how token usage dynamics influence user engagement oppositely to market stability. Only some features, such as earning potential and voting rights, foster token-holding strategies, while only Ethereum ecosystem membership has positive effects on price volatility. Second, we analyze the direct relationship between price volatility and active users. Results show that, on average, a 10% increase in volatility is related to a decrease in active addresses ranging between 3.96% and 5.88%. The finding is supportive of the hypothesis that token price volatility may be treated as an opportunity to increase token retention. Full article

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19 pages, 347 KiB

Open AccessArticle

The Real Value of CSR Performance in the NEV Industry: Evidence from China

by Qing Wu and Theeralak Satjawathee

Int. J. Financial Stud. 2024, 12(4), 106; https://doi.org/10.3390/ijfs12040106 - 23 Oct 2024

Abstract

Corporate social responsibility (CSR) is increasingly becoming a major concern for investors and consumers, prompting companies to devote more resources to community engagement to manage conflict and improve business performance. In this study, we conducted an empirical analysis with a sample of 385 [...] Read more.

Corporate social responsibility (CSR) is increasingly becoming a major concern for investors and consumers, prompting companies to devote more resources to community engagement to manage conflict and improve business performance. In this study, we conducted an empirical analysis with a sample of 385 listed companies in China’s new energy vehicle (NEV) industry to analyze the relationship between CSR performance and corporate value (CV). With the ordinary least squares (OLS) regression analysis, our study’s results show a positive relationship between the CSR performance of these companies and corporate value. In addition, our findings indicate a lagged effect in the relationship between CSR and CV. The mechanism analysis suggests that corporate CSR performance helps to improve corporate reputation, reduce financing constraints, and thus increase corporate value. Moreover, high analyst attention and information transparency can enhance the positive effects of corporate CSR. This study contributes to the existing literature and empirical evidence by exploring the correlation between CSR performance and firm value in the context of emerging countries and the NEV industry. Full article

(This article belongs to the Special Issue New Quality Productive Forces: The Role of Green Finance and Artificial Intelligence in Finance)

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