International Journal of Financial Studies

31 pages, 550 KiB

Open AccessArticle

Financial Exploitation: A Qualitative Analysis from Türkiye

by Mustafa Can Samirkas, Meryem Samirkas Komsu, Ufuk Cem Komsu and Samet Evci

Int. J. Financial Stud. 2025, 13(2), 81; https://doi.org/10.3390/ijfs13020081 - 8 May 2025

Elderly individuals who need the support of others may be subjected to abuse in managing their budgets and financial decisions. This situation is explained as financial exploitation, which is a subtype of elder abuse. The main purpose of this study is to evaluate [...] Read more.

Elderly individuals who need the support of others may be subjected to abuse in managing their budgets and financial decisions. This situation is explained as financial exploitation, which is a subtype of elder abuse. The main purpose of this study is to evaluate the participants’ financial decision-making skills and their exposure to financial exploitation. In this study, which was designed according to qualitative research design, data were collected through semi-structured interview forms. The collected data were analyzed by creating themes according to the general framework coding method. The results of the study reveal that the participants receive help from their children in financial decision-making and that their children generally manage their budgets. Moreover, although the income levels of the participants are generally quite low, it is seen that they are exposed to financial exploitation by their families and people in their immediate vicinity. Full article

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

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25 pages, 337 KiB

Open AccessArticle

Applications of the Shapley Value to Financial Problems

by Olamide Ayodele, Sunday Timileyin Ayodeji and Kayode Oshinubi

Int. J. Financial Stud. 2025, 13(2), 80; https://doi.org/10.3390/ijfs13020080 - 7 May 2025

Abstract

Managing risk, matching resources efficiently, and ensuring fair allocation are fundamental challenges in both finance and decision-making processes. In many scenarios, participants contribute unequally to collective outcomes, raising the question of how to distribute costs, benefits, or opportunities in a justifiable and optimal [...] Read more.

Managing risk, matching resources efficiently, and ensuring fair allocation are fundamental challenges in both finance and decision-making processes. In many scenarios, participants contribute unequally to collective outcomes, raising the question of how to distribute costs, benefits, or opportunities in a justifiable and optimal manner. This paper applies the Shapley value—a solution concept from cooperative game theory—as a principled tool in the following two specific financial settings: first, in tax cooperation games; and second, in assignment markets. In tax cooperation games, we use the Shapley value to determine the equitable tax burden distribution among three firms, A, B, and C, which operate in two countries, Italy and Poland. Our model ensures that countries participating in coalitions face a lower degree of tax evasion compared to non-members, and that cooperating firms benefit from discounted tax liabilities. This structure incentivizes coalition formation and reveals the economic advantage of joint participation. In assignment markets, we use the Shapley value to find the optimal pairing in a four-buyers and four-sellers housing market. Our findings show that the Shapley value provides a rigorous framework for capturing the relative importance of participants in the coalition, leading to more balanced tax allocations and fairer market transactions. Our theoretical insights with computational techniques highlights the Shapley value’s effectiveness in addressing complex allocation challenges across financial management domains. Full article

39 pages, 2194 KiB

Open AccessArticle

Financial Literacy and Financial Well-Being Amid Varying Economic Conditions: Evidence from the Survey of Household Economics and Decisionmaking 2017–2022

by Vivekananda Das

Int. J. Financial Stud. 2025, 13(2), 79; https://doi.org/10.3390/ijfs13020079 - 6 May 2025

Abstract

This study examines whether the gaps in four financial well-being (FWB) indicators—emergency fund availability, spending less than income, perceived financial comfort, and no credit card debt—between groups with varying levels of financial literacy changed during the economic disruptions of 2020–2022 compared to the [...] Read more.

This study examines whether the gaps in four financial well-being (FWB) indicators—emergency fund availability, spending less than income, perceived financial comfort, and no credit card debt—between groups with varying levels of financial literacy changed during the economic disruptions of 2020–2022 compared to the more stable period of 2017–2019. Using data from the 2017–2022 waves of the Survey of Household Economics and Decisionmaking conducted by the Federal Reserve Board, this study applies difference-in-differences and event study methods to explore these trends. Descriptive findings, consistent with prior research, show that respondents with higher financial literacy reported greater FWB across all years. Regression estimates based on respondents who provided definitive answers (correct or incorrect) to the Big Three financial literacy questions suggest that the pre-existing gaps in emergency fund availability and perceived financial comfort between respondents with higher and lower financial literacy widened in 2020–2022, whereas the gap in spending less than income remained unchanged. There is some evidence of a widening gap in the likelihood of having no credit card debt, but the estimates are less conclusive. In general, these results indicate that higher financial literacy might have served as a protective factor for some aspects of FWB amid the challenging economic conditions of 2020–2022. However, results based on respondents who provided either correct or “don’t know” answers to the same questions differ in direction from the results of the earlier analysis. The findings of this study have implications for measuring financial literacy and investigating its role in shaping FWB. Full article

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

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26 pages, 1108 KiB

Open AccessArticle

Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment

by Ading Li, Adul Supanut and Jianxu Liu

Int. J. Financial Stud. 2025, 13(2), 78; https://doi.org/10.3390/ijfs13020078 - 5 May 2025

Abstract

In light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in China from 2008 to [...] Read more.

In light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in China from 2008 to 2021, we apply fixed-effects and mediation models to explore these relationships. The results indicate a strong positive link between green finance and regional technological innovation, with R&D investment acting as a partial mediator. Furthermore, the capabilities for regional innovation and entrepreneurship enhance the influence of green finance on R&D investment. However, in areas with greater innovation and entrepreneurship capabilities, the additional effect of R&D investment tends to decrease. Based on these results, the study proposes targeted policy recommendations, including enhancing green finance policies, improving financial institution services, promoting enterprise-led R&D activities, and fostering regional collaboration to achieve balanced innovation development. These insights provide both theoretical and practical significance for leveraging green finance to advance sustainable innovation. Full article

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20 pages, 3823 KiB

Open AccessReview

Voluntary International Financial Reporting Standards Application: A Bibliometric Review and Future Research Directions

by Ngoc Giau Nguyen and Ngoc Tien Nguyen

Int. J. Financial Stud. 2025, 13(2), 77; https://doi.org/10.3390/ijfs13020077 - 3 May 2025

Abstract

This study aims to review research on voluntary IFRS application and future research directions. This study presents a bibliometric review of 185 studies on voluntary IFRS application using Web of Science data and R software. Four research clusters are identified: (i) determinants of [...] Read more.

This study aims to review research on voluntary IFRS application and future research directions. This study presents a bibliometric review of 185 studies on voluntary IFRS application using Web of Science data and R software. Four research clusters are identified: (i) determinants of IFRS voluntary application, (ii) corporate disclosure, (iii) voluntary disclosure, and (iv) economic consequences, with detailed analysis and future research question extraction. These research clusters enable us to extract future research questions, highlighting the avenues where further investigation is needed. This study provides practical insights for policymakers and practitioners. Researchers can leverage our work to grasp the current state of knowledge, identifying active and impactful research areas. This guidance can inform their investigations, though this study relies solely on data from the Web of Science database. This study provides a comprehensive overview of the existing literature on voluntary IFRS application, helping researchers, practitioners, and policymakers understand the current state of research in this field. Full article

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17 pages, 790 KiB

Open AccessArticle

The Influence of Bank Loans and Deposits on Ecuador’s Economic Growth: A Cointegration Analysis

by Freddy Naula, Cristian Zamora and Kevin Gomez

Int. J. Financial Stud. 2025, 13(2), 76; https://doi.org/10.3390/ijfs13020076 - 2 May 2025

Abstract

This study examines the relationship between banking sector development (credit and deposits) and economic growth in Ecuador, using quarterly data for the period 2000–2022. An ARDL approach with Bound Test cointegration is employed, incorporating structural breaks using the Bai–Perron test and controlling for [...] Read more.

This study examines the relationship between banking sector development (credit and deposits) and economic growth in Ecuador, using quarterly data for the period 2000–2022. An ARDL approach with Bound Test cointegration is employed, incorporating structural breaks using the Bai–Perron test and controlling for macroeconomic shocks. In addition, time transformation methodologies are applied to harmonize the frequency of the series: the monthlyization of GDP is performed using the Chow-Lin method, and the imputation of missing unemployment data using the Kalman filter. The results reveal a significant long-run elasticity between bank deposits and GDP (0.45%), while credits do not present a statistically significant effect, possibly due to high delinquency and institutional weakness. Granger causality tests confirm a unidirectional relationship between banking variables to economic growth. These findings highlight the importance of strengthening financial supervision and improving institutional quality to enhance the effect of bank intermediation. The study provides robust and contextualized empirical evidence relevant to resource-dependent economies with concentrated financial systems, contributing to the debate on the relationship between finance and growth in developing countries. Full article

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27 pages, 1202 KiB

Open AccessFeature PaperArticle

Financial Sentiment Analysis and Classification: A Comparative Study of Fine-Tuned Deep Learning Models

by Dimitrios K. Nasiopoulos, Konstantinos I. Roumeliotis, Damianos P. Sakas, Kanellos Toudas and Panagiotis Reklitis

Int. J. Financial Stud. 2025, 13(2), 75; https://doi.org/10.3390/ijfs13020075 - 2 May 2025

Abstract

Financial sentiment analysis is crucial for making informed decisions in the financial markets, as it helps predict trends, guide investments, and assess economic conditions. Traditional methods for financial sentiment classification, such as Support Vector Machines (SVM), Random Forests, and Logistic Regression, served as [...] Read more.

Financial sentiment analysis is crucial for making informed decisions in the financial markets, as it helps predict trends, guide investments, and assess economic conditions. Traditional methods for financial sentiment classification, such as Support Vector Machines (SVM), Random Forests, and Logistic Regression, served as our baseline models. While somewhat effective, these conventional approaches often struggled to capture the complexity and nuance of financial language. Recent advancements in deep learning, particularly transformer-based models like GPT and BERT, have significantly enhanced sentiment analysis by capturing intricate linguistic patterns. In this study, we explore the application of deep learning for financial sentiment analysis, focusing on fine-tuning GPT-4o, GPT-4o-mini, BERT, and FinBERT, alongside comparisons with traditional models. To ensure optimal configurations, we performed hyperparameter tuning using Bayesian optimization across 100 trials. Using a combined dataset of FiQA and Financial PhraseBank, we first apply zero-shot classification and then fine tune each model to improve performance. The results demonstrate substantial improvements in sentiment prediction accuracy post-fine-tuning, with GPT-4o-mini showing strong efficiency and performance. Our findings highlight the potential of deep learning models, particularly GPT models, in advancing financial sentiment classification, offering valuable insights for investors and financial analysts seeking to understand market sentiment and make data-driven decisions. Full article

(This article belongs to the Special Issue Modern Financial Econometrics)

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23 pages, 559 KiB

Open AccessArticle

National Culture, Institutional Quality, and Financial Development: International Evidence Before and After Financial Crisis

by Selma Izadi, Frankie J. Weinberg and Mamunur Rashid

Int. J. Financial Stud. 2025, 13(2), 74; https://doi.org/10.3390/ijfs13020074 - 2 May 2025

Abstract

This study examines the impact of Hofstede’s six cultural dimensions and institutional quality on financial development in the periods preceding and following the global financial crisis. The study analyzes data from 33 countries spanning 2001 to 2021 using a combination of OLS, two-stage [...] Read more.

This study examines the impact of Hofstede’s six cultural dimensions and institutional quality on financial development in the periods preceding and following the global financial crisis. The study analyzes data from 33 countries spanning 2001 to 2021 using a combination of OLS, two-stage GMM, and PVAR models and concludes that inflation and economic growth negatively, and exchange rate and institutional quality positively significantly enhance financial development. Countries characterized by low masculinity and uncertainty avoidance scores, alongside high individualism and indulgence scores, tend to exhibit greater financial development. The results also indicate that cultural factors ought to be regarded as dynamic modifiers of financial development. National culture and institutional quality have a consistent influence on financial development pre- as well as post-crisis periods. Policymakers must recognize the significance of both formal and informal institutions in fostering an environment that promotes financial development and growth. A strategic integration of diverse cultural identities and values will confer a competitive advantage to nations. The effective management of cultural diversity and openness is crucial for attracting new investment, fostering innovation, comprehending the needs and skills of the workforce, and promoting financial development. Full article

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18 pages, 640 KiB

Open AccessArticle

Factors Affecting the Financial Sustainability of Startups During the Valley of Death: An Empirical Study in an Innovative Ecosystem

by Cesar Zapata-Molina, Mauricio Bedoya-Villa, Johnatan Castro-Gómez, Santiago Gutiérrez-Broncano, Edith Román and Elkin Rave-Gómez

Int. J. Financial Stud. 2025, 13(2), 73; https://doi.org/10.3390/ijfs13020073 - 2 May 2025

Abstract

(1) Background: The survival and growth of startups in their early stages are negatively impacted by the lack of financial sustainability and scarce resources that entrepreneurs face during the first 5 years. This is known as the Valley of Death (VoD). This study [...] Read more.

(1) Background: The survival and growth of startups in their early stages are negatively impacted by the lack of financial sustainability and scarce resources that entrepreneurs face during the first 5 years. This is known as the Valley of Death (VoD). This study seeks to identify key factors that influence the financial sustainability of startups during the VoD, which demands a significant amount of funding and government support. (2) Methods: A quantitative methodology was employed, based on a worldwide literature review that pointed out the variables of the object of study; the information collection process was conducted through a questionnaire applied to 352 entrepreneurs in an innovative ecosystem. This study empirically applies a structural equation model to determine the relationship between constructs. (3) Results: A comprehensive analysis of the results indicates that indicators such as positive sales performance, sufficient financial solvency to meet short- and long-term commitments, accurate pricing policies, and access to government and banking support are the primary factors affecting the sustainability of startups in the early stages. (4) Originality: This study provides original and relevant insights into the indicators that affect the financial sustainability of startups during the VoD and offers interesting insights for governments, institutions, and entrepreneurs to foster innovative ecosystems; it also contributes to the extant literature on early-stage entrepreneurial failures. Full article

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28 pages, 315 KiB

Open AccessArticle

Mapping Extent of Spillover Channels in Monetary Space: Study of Multidimensional Spatial Effects of US Dollar Liquidity

by Changrong Lu, Lian Liu, Fandi Yu, Jiaxiang Li and Guanghong Zheng

Int. J. Financial Stud. 2025, 13(2), 72; https://doi.org/10.3390/ijfs13020072 - 1 May 2025

Abstract

This study aims to analyze the spatial effects triggered by dollar liquidity by constructing a multidimensional spatial matrix that modifies the traditional monetary spatial framework. We utilized a three-level spatial econometric model (Spatial Lag, Durbin, and Generalized Nested Space) to measure Gross Domestic [...] Read more.

This study aims to analyze the spatial effects triggered by dollar liquidity by constructing a multidimensional spatial matrix that modifies the traditional monetary spatial framework. We utilized a three-level spatial econometric model (Spatial Lag, Durbin, and Generalized Nested Space) to measure Gross Domestic Product (GDP), Consumer Price Index (CPI), and Asset Price Bubbles (BBL) through five spillover channels (geography, linguistics, politics, war, and economy). Our aim is to establish a systematic relationship between the conduction mechanism, means, economic indicators, and dollar externalities to examine liquidity spillover effects at varying distances in the global monetary space. We find that the spatial effects induced by the global circulation of the US dollar behave significantly differently in a single matrix space compared to in a multidimensional space. While the model verifies the existence of a positive correlation between the complexity of a single space and the spillover effect from a conduction mechanism perspective, the measure of the multidimensional matrix shows that the significance of the spillover effect weakens with an increase in abstraction level from a conduction means perspective. It suggests that spatial matrices of different dimensions reflect different economic realities. The former shows hierarchical multivariate details in independent matrices, while the variation in the level of abstraction of matrices of different dimensions in the latter enhances their interactivity and complexity. Full article

15 pages, 1218 KiB

Open AccessArticle

Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets

by Pitipat Nittayakamolphun, Wiwatwong Bunnun, Nathaporn Phong-a-ran, Raweepan Uttarin and Panjamapon Pholkerd

Int. J. Financial Stud. 2025, 13(2), 71; https://doi.org/10.3390/ijfs13020071 - 1 May 2025

Abstract

Extreme weather events are the primary driver of environmental, social, and governance (ESG) responsible investment or sustainable stocks, which are gaining popularity worldwide, including in Thailand. Nevertheless, the function of sustainable stocks remains an academic dispute and without satisfactory conclusion for decision-making of [...] Read more.

Extreme weather events are the primary driver of environmental, social, and governance (ESG) responsible investment or sustainable stocks, which are gaining popularity worldwide, including in Thailand. Nevertheless, the function of sustainable stocks remains an academic dispute and without satisfactory conclusion for decision-making of Thai investors. Thus, we adopt a dynamic conditional correlation generalized autoregressive conditional heteroskedasticity (DCC-GARCH) model to examine the influence of Thailand sustainability investment on Thailand’s stock market and financial assets. The result indicates that Thailand sustainability investment lacks hedging functions and is classified as a weak safe-haven for consumer product stocks, bitcoin, and Thai baht. Consequently, Thailand sustainability investment provides a better alternative asset for risk diversification, although volatility is low compared to other financial assets and decreases during crises. Investors are advised to diversify their investment risks by adding Thailand sustainability investment to their portfolios during a bearish market. Full article

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24 pages, 356 KiB

Open AccessArticle

The Effects of Investor Sentiment on Stock Return Indices Under Changing Market Conditions: Evidence from South Africa

by Fabian Moodley, Sune Ferreira-Schenk and Kago Matlhaku

Int. J. Financial Stud. 2025, 13(2), 70; https://doi.org/10.3390/ijfs13020070 - 30 Apr 2025

Abstract

The objective of the study is to examine the effects of investor sentiment on the Johannesburg Stock Exchange (JSE) index returns in bull and bear market conditions. Accordingly, this study uses monthly data to construct a new market-wide investor sentiment index and test [...] Read more.

The objective of the study is to examine the effects of investor sentiment on the Johannesburg Stock Exchange (JSE) index returns in bull and bear market conditions. Accordingly, this study uses monthly data to construct a new market-wide investor sentiment index and test its effects on the JSE aggregated and disaggregated index returns in alternating market conditions for the period March 2007 to January 2024. The findings of the Markov regime-switching model reveal that when the JSE is in a bull market condition, the JSE oil and gas sector returns and the JSE telecommunication sector returns are affected positively by investor sentiment. Similarly, in a bearish state, the JSE health sector returns and JSE telecommunication sector returns are negatively affected by investor sentiment. Collectively, the findings suggest that the effects of investor sentiment on JSE index returns are regime-specific and time-varying, such that they are dependent on the market conditions (bull or bear) and the type of JSE index (aggregated or disaggregated index). Accordingly, investors must consider this information to ensure resilient investment decisions and risk management strategies in sentiment-induced markets and alternating market conditions. Full article

(This article belongs to the Special Issue Financial Stability in Light of Market Fluctuations)

24 pages, 327 KiB

Open AccessArticle

Moderating Effect of Sustainable Innovation on Internal Audit Effectiveness and Sustainability Auditing Practices: Evidence from Libya’s Public Sector

by Najeb Masoud

Int. J. Financial Stud. 2025, 13(2), 69; https://doi.org/10.3390/ijfs13020069 - 29 Apr 2025

Abstract

This study aims to investigate how sustainable innovation (SI) influences the relationship between internal audit effectiveness (IAE) and sustainability auditing (SA) practices in Libya’s public sector, providing valuable insights into its implications for public finance governance and financial regulation. Additionally, it examines how [...] Read more.

This study aims to investigate how sustainable innovation (SI) influences the relationship between internal audit effectiveness (IAE) and sustainability auditing (SA) practices in Libya’s public sector, providing valuable insights into its implications for public finance governance and financial regulation. Additionally, it examines how audit standards and principles (ASPs) on SA practices emphasising their role in enhancing transparency, environmental, social, and governance (ESG) compliance, and overall financial oversight. A quantitative, cross-sectional survey design was employed, collecting 500 valid responses from financial and governmental institutions in Libya. Hierarchical regression and partial least squares structural equation modeling (PLS-SEM) were used to evaluate the relationships among IAE, SI, ASP, and SA practices, with robustness checks ensuring the reliability of findings. The findings demonstrate that IAE significantly reinforces SA practices, improving ESG accountability and reporting. SI positively moderates this relationship, indicating that innovative processes and tools strengthen the impact of effective internal audits on sustainability outcomes. Although ASP contributes to SA practices, its influence is more pronounced when combined with robust internal audit functions and sustainability initiatives. The results underscore the need to integrate innovation and transparent regulatory frameworks to optimise sustainability auditing and public finance management. While the study is confined to Libya’s public sector—potentially limiting broader generalizability—its insights may inform policy reforms and risk management strategies across diverse regulatory environments. Future research could include comparative analyses to investigate variations in other emerging or developed markets. This study adds to the literature by linking SI and ASP with internal audit frameworks, offering fresh perspectives on enhancing SA practices and ESG compliance in public finance settings. Full article

27 pages, 1863 KiB

Open AccessArticle

The Impact of Bank Fintech on Corporate Short-Term Debt for Long-Term Use—Based on the Perspective of Financial Risk

by Weiyu Wu and Xiaoyan Lin

Int. J. Financial Stud. 2025, 13(2), 68; https://doi.org/10.3390/ijfs13020068 - 16 Apr 2025

Abstract

Information asymmetry between banks and enterprises in the credit market is essentially the microfoundation of financial risk generation. The frequent occurrence of corporate debt defaults, mainly due to the behavior of short-term debt for long-term use (hereinafter referred to as “SDLU”), further aggravates [...] Read more.

Information asymmetry between banks and enterprises in the credit market is essentially the microfoundation of financial risk generation. The frequent occurrence of corporate debt defaults, mainly due to the behavior of short-term debt for long-term use (hereinafter referred to as “SDLU”), further aggravates the contagion path from individual liquidity crisis to systemic repayment crisis. In order to test whether bank financial technology (hereinafter referred to as “BankFintech”) can mitigate SDLU and reduce the possibility of financial risks, this study matched the loan data of China’s A-share listed companies with the patent data of bank-invented Fintech from 2013 to 2022 to construct the BankFintech Development Index for empirical analysis. The empirical results show that the development of BankFintech can significantly inhibit SDLU. The mechanism test reveals that BankFintech reduces bank credit risk and liquidity risk by lowering firms’ risk-weighted assets, improving capital adequacy and liquidity ratios, tilts banks’ lending preferences toward duration-matched long-term financing, and “forces” enterprises to take the initiative to improve their financial health and information transparency, enhance their ability to obtain long-term loans, and realize the active management of mismatch risk. Heterogeneity analysis finds that the effect is more significant in non-state-owned enterprises and technology-intensive industries. Further analysis shows that the level of enterprise digitization, the intensity of financial regulation, and related financial policies significantly moderate the marginal effect between the two. This study verified the “Porter’s Risk Mitigation Hypothesis” of Fintech, providing empirical evidence for effectively cracking the financial vulnerability caused by debt maturity mismatch and deepening financial supply-side reform. Full article

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15 pages, 1048 KiB

Open AccessArticle

The Impact of Uncertain Welfare Quality on Equity Market Performance

by Tarek Eldomiaty, Islam Azzam, Hoda El Kolaly, Nermeen Youssef, Marwa Anwar Sedik and Rehab ElShahawy

Int. J. Financial Stud. 2025, 13(2), 67; https://doi.org/10.3390/ijfs13020067 - 15 Apr 2025

Abstract

Welfare quality is usually a stochastic outcome, as attempts at improving social welfare cannot be predicted in advance. The advances in stock market participation conclude that equity market performance is able to reflect investors’ mass reactions and therefore can fairly reflect the empiricism [...] Read more.

Welfare quality is usually a stochastic outcome, as attempts at improving social welfare cannot be predicted in advance. The advances in stock market participation conclude that equity market performance is able to reflect investors’ mass reactions and therefore can fairly reflect the empiricism of welfare quality. In this paper, the pillars of the Happy Planet Index (hereinafter HPI) are used as proxies for countries’ welfare quality. The data cover 57 countries where equity markets exist over the annual period of 2006–2020. The results indicate that (a) the three pillars of HPIs have historical positive impacts on market capitalization and stock turnover; (b) stochastically, life satisfaction has an expected positive impact on market capitalization and stock turnover; (c) firms located in high (low) HPIs, life satisfaction, and life expectancy have significant (insignificant) stochastic impacts on market capitalization; and (d) the historical ecological footprints have positive impacts on market capitalization and stock turnover, whereas stochastic impacts are statistically insignificant. Full article

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17 pages, 334 KiB

Open AccessFeature PaperArticle

Spillovers Between Euronext Stock Indices: The COVID-19 Effect

by Luana Carneiro, Luís Gomes, Cristina Lopes and Cláudia Pereira

Int. J. Financial Stud. 2025, 13(2), 66; https://doi.org/10.3390/ijfs13020066 - 15 Apr 2025

Abstract

The financial markets are highly influential and any change in the economy can be reflected in stock prices and thus have an impact on stock indices. The relationship between stock indices and the way they are affected by extreme phenomena is important for [...] Read more.

The financial markets are highly influential and any change in the economy can be reflected in stock prices and thus have an impact on stock indices. The relationship between stock indices and the way they are affected by extreme phenomena is important for defining diversification strategies and analyzing market maturity. The purpose of this study is to examine the interdependence relationships between the main Euronext stock indices and any changes caused by an extreme event—the COVID-19 pandemic. Copula models are used to estimate the dependence relationships between stock indices pairs after estimating ARMA-GARCH models to remove the autoregressive and conditional heteroskedastic effects from the daily return time series. The financial interdependence structures show a symmetric relationship of influence between the indices, with the exception of the CAC40/ISEQ pair, where there was financial contagion. In the case of the AEX/OBX pair, the dynamics of dependence may have changed significantly in response to the pressure of the pandemic. On the other hand, the dominant influence of the CAC40 before and the AEX after the pandemic confirms that the size and age of these indices give them a benchmark position in the market. Finally, with the exception of the AEX/OBX and CAC40/ISEQ pairs, the interdependencies between the stock indices decreased from the pre- to the post-pandemic sub-period. This result suggests that the COVID-19 pandemic has weakened the correlation between the markets, making them more mature and independent, and less risky for investors. Full article

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

37 pages, 8001 KiB

Open AccessArticle

Exploring Complexity: A Bibliometric Analysis of Agent-Based Modeling in Finance and Banking

by Ștefan Ionescu, Camelia Delcea, Ionuț Nica, Gabriel Dumitrescu, Claudiu-Emanuel Simion and Liviu-Adrian Cotfas

Int. J. Financial Stud. 2025, 13(2), 65; https://doi.org/10.3390/ijfs13020065 - 14 Apr 2025

Cited by 1

Abstract

This study conducts a comprehensive bibliometric analysis of the use of agent-based modeling (ABM) in finance and banking, aiming to uncover how this methodology has evolved over the past two decades. It addresses the following overarching question: How has ABM contributed to the [...] Read more.

This study conducts a comprehensive bibliometric analysis of the use of agent-based modeling (ABM) in finance and banking, aiming to uncover how this methodology has evolved over the past two decades. It addresses the following overarching question: How has ABM contributed to the development of financial research in terms of trends, key contributors, and thematic directions? The relevance of this topic is based on the growing complexity of financial systems and the limitations of traditional models in capturing dynamic interactions, contagion effects, and systemic risks. Using a refined dataset of 489 articles from the Web of Science (2000–2024), selected through a multi-step keyword and relevance screening process, we apply bibliometric techniques using R Studio (version 2024.12.1+563) and Bibliometrix (version 4.3.3). The analysis reveals stable publication growth, strong international collaborations (notably Italy, USA, and China), and core thematic areas such as risk management, market simulation, financial stability, and policy evaluation. The findings highlight both well-established and emerging research fronts, with agent-based models increasingly used to simulate real-world financial phenomena and support regulatory strategies. By mapping the intellectual structure of the field, this paper provides a solid foundation for future interdisciplinary research and practical insights for policymakers seeking innovative tools for financial supervision and decision making. Full article

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21 pages, 857 KiB

Open AccessArticle

Financial Stability and Environmental Sentiment Among Millennials: A Cross-Cultural Analysis of Greece and The Netherlands

by Michalis Skordoulis, Androniki Kavoura, Angelos-Stavros Stavropoulos, Alexandros Zikas and Petros Kalantonis

Int. J. Financial Stud. 2025, 13(2), 64; https://doi.org/10.3390/ijfs13020064 - 14 Apr 2025

Abstract

In today’s rapidly changing economic landscape, financial stability plays a crucial role in ensuring individual and societal well-being. Millennials encounter unique financial pressures, including shifting labor markets, high housing costs, and economic uncertainty, which may impact their financial stability and broader life choices. [...] Read more.

In today’s rapidly changing economic landscape, financial stability plays a crucial role in ensuring individual and societal well-being. Millennials encounter unique financial pressures, including shifting labor markets, high housing costs, and economic uncertainty, which may impact their financial stability and broader life choices. This cross-cultural comparative study investigates the interplay between financial stability and environmental sentiment among Greek and Dutch Millennials, exploring how cultural differences influence these dynamics. Utilizing a quantitative research methodology, the study analyzed responses from a convenient sample of 426 participants across Greece and the Netherlands, employing measures such as a multidimensional construct of financial stability and the New Environmental Paradigm (NEP) scale to assess environmental attitudes. The results indicated a significant positive correlation between perceived financial stability and pro-environmental sentiment in both cohorts, suggesting that economic security is a key facilitator of environmental engagement irrespective of cultural context. However, no significant differences were found in environmental sentiment between the two groups, highlighting a possible universal environmental awareness among Millennials transcending economic disparities. These findings suggest that policies aimed at enhancing financial stability may simultaneously foster greater environmental stewardship. The study underscores the importance of integrating economic and environmental policy to promote sustainable development globally among younger populations. Full article

(This article belongs to the Special Issue Making Green from Green: The Truth about Sustainable Finance)

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22 pages, 455 KiB

Open AccessArticle

Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments

by Xiaoli Wang and Yi Tan

Int. J. Financial Stud. 2025, 13(2), 63; https://doi.org/10.3390/ijfs13020063 - 14 Apr 2025

Abstract

China’s corporate venture capital (CVC) overseas investment began in the late 20th century and has expanded significantly over the years. By 2021, more than 265 Chinese institutions and companies had engaged in cross-border investments, contributing over USD 100 billion. These investments present a [...] Read more.

China’s corporate venture capital (CVC) overseas investment began in the late 20th century and has expanded significantly over the years. By 2021, more than 265 Chinese institutions and companies had engaged in cross-border investments, contributing over USD 100 billion. These investments present a unique opportunity to examine the reverse technology spillover effect on China’s technological development. Using a Difference-in-Differences model and regression analysis, we investigate whether China’s CVC overseas investments drive technological progress. Our findings reveal three key insights: (1) these investments have a positive impact on China’s technological advancement, (2) the effect is stronger when the host country has a higher level of technology, and (3) larger investment amounts amplify the impact. This research not only highlights the transformative potential of cross-border CVC investments but also demonstrates how enterprises can leverage reverse innovation spillovers to accelerate China’s technological progress. Additionally, we introduce a novel approach to studying this phenomenon, contributing to the existing scholarship on global innovation dynamics. Full article

(This article belongs to the Special Issue Emerging Trends in Global Foreign Direct Investment)

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International Journal of Financial Studies

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