Template-Type: ReDIF-Article 1.0 Author-Name: Nipun Agarwal Author-X-Name-First: Nipun Author-X-Name-Last: Agarwal Title: How to obtain high returns with lower volatility in emerging markets? Abstract: Emerging markets equity indexes are usually seen as high return with a high degree of volatility associated with them. However, this should not be the case, if you choose high-quality firms that have increasing returns and lower volatility. The intent of this paper is to introduce the risk weighted alpha (RWA) indexation method that helps identify stocks that have stable increasing returns with lower volatility. In order to review this method in the context of emerging markets scenario, this paper takes the example of the Sensex index listed on the Bombay Stock Exchange (BSE) that comprises India's top 30 stocks by market capitalisation. Results show that some stocks like Hindustan Lever do show increasing returns and lower volatility. The RWA Sensex index outperforms the BSE Sensex index, while still maintaining a beta that is the same as that in the BSE Sensex index. Journal: Cogent Economics & Finance Pages: 1-16 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.890060 File-URL: http://hdl.handle.net/10.1080/23322039.2014.890060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.890060 Template-Type: ReDIF-Article 1.0 Author-Name: Nikolas Hourvouliades Author-X-Name-First: Nikolas Author-X-Name-Last: Hourvouliades Author-Name: Ljupco Davcev Author-X-Name-First: Ljupco Author-X-Name-Last: Davcev Title: Banking concentration and developments in FYROM: A country in transition Abstract: The Former Yugoslav Republic of Macedonia (FYROM) belongs to the transition economies that have witnessed significant structural changes in their domestic markets during the 2000s. We examine the evolution of the banking competition from 2003 until 2011, covering the first period of economic growth followed by the acute financial crisis that still threatens European countries. We apply the Herfindahl-Hirschman index and the CR3 and CR5 indicators in order to estimate banking concentration on five industry variables. Our findings show that the market has been persistently operating under oligopolistic, if not monopolistic, conditions where the leading three or five institutions dominate the market. Foreign newcomers and legislative developments have not changed the situation during the past 10 years and bank customers seem to keep their preferences unaffected, staying loyal to their prior choices. We analyze the banking sector profitability since 2008 and during the economic crisis, as well as the operational performance and the future trends concerning this sector. Journal: Cogent Economics & Finance Pages: 1-12 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.895395 File-URL: http://hdl.handle.net/10.1080/23322039.2014.895395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.895395 Template-Type: ReDIF-Article 1.0 Author-Name: Horacio Matos-Díaz Author-X-Name-First: Horacio Author-X-Name-Last: Matos-Díaz Title: Measuring grade inflation and grade divergence accounting for student quality Abstract: This study uses a rich longitudinal data-set of 13,202 full-time students belonging to 11 cohorts over 22 consecutive semesters (Fall 1995 to Spring 2006) to model the determinants of the grade inflation rates prevailing at the University of Puerto Rico at Bayamón. The following new interesting findings are reported: (1) Estimated rates vary significantly among and within the academic programs, implying grade divergence, depending on the time reference used: cohort time dummies or semesters since admission to the institution. (2) The rates are significantly related to the proportions of female students, students who switch from their original academic programs, and students from private schools. (3) Results suggest that, under determinate circumstances, average- and low-quality students consider higher grades as normal goods; conversely, high-quality students consider higher grades as inferior goods. Journal: Cogent Economics & Finance Pages: 1-16 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.915756 File-URL: http://hdl.handle.net/10.1080/23322039.2014.915756 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.915756 Template-Type: ReDIF-Article 1.0 Author-Name: Mauricio Martinelli Silva Luperi Author-X-Name-First: Mauricio Martinelli Silva Author-X-Name-Last: Luperi Title: Advances in the mathematization process of Brazilian Academic Studies in Economics since the 1980s Abstract: Looking at Brazilian economic discourse, in this article, we look at how mathematization of economics has advanced in the country in the last three decades. For this, we have classified into several categories all articles published in three major Brazilian economic journals (Revista Brasileira de Economia, Estudos Econômicos, and Revista de Economia Política) and the publications of ANPEC meetings from 1981 to 2010, according to the type of argument used. A total of 5,733 articles were analyzed. We attempt to see how mathematization of economic discourse developed, and found that there was an increased use of a formalized language from the mid-1990s onwards. Finally, to confirm our findings, we focus on the process of mathematization through the observation of a quantitative variable: equations per article. Journal: Cogent Economics & Finance Pages: 1-19 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.918853 File-URL: http://hdl.handle.net/10.1080/23322039.2014.918853 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918853 Template-Type: ReDIF-Article 1.0 Author-Name: Kentaka Aruga Author-X-Name-First: Kentaka Author-X-Name-Last: Aruga Title: An intervention analysis on the Tokyo Grain Exchange non-genetically modified and conventional soybean futures markets Abstract: This paper examines how efficiently the price premium for non-genetically modified (non-GM) soybeans at the Tokyo Grain Exchange (TGE) reacts to an announcement to change the contract unit, suppliers, and expiration date on the conventional soybean futures contract. An intervention analysis is used for this purpose. The results reveal that the price premium for non-GM soybeans increases after the change and this effect did not disappear immediately. This implies that the two soybean futures markets did not respond quickly to the announcement and there was an informational inefficiency after the announcement. The TGE non-GM soybean futures market is one of the first segregated markets for a non-GM commodity. An intervention of clearing houses on such newly opened markets can often lead to market inefficiency so a further study is necessary in order to understand what causes such inefficiency and to find out how clearing houses can minimize the effects of intervention. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.918854 File-URL: http://hdl.handle.net/10.1080/23322039.2014.918854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918854 Template-Type: ReDIF-Article 1.0 Author-Name: Sasipa Pojanavatee Author-X-Name-First: Sasipa Author-X-Name-Last: Pojanavatee Title: Cointegration and causality analysis of dynamic linkage between stock market and equity mutual funds in Australia Abstract: The existing literature finds conflicting results on the magnitude of price linkages between equity mutual funds and the stock market. The study contends that in an optimal lagged model, the expectations of future prices using knowledge of past price behaviour in a particular equity mutual fund category will improve forecasts of prices of other equity mutual fund categories and the stock market index. The evidence shows that the long-run pricing of equity mutual funds is cointegrated with the stock market index. In the short run, the results indicate that some equity mutual fund categories possess both long-run and short-run exogeneity with the stock market. Therefore, the short-run dynamic indicates short-run Granger causal links running between different equity mutual fund categories. Journal: Cogent Economics & Finance Pages: 1-17 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.918855 File-URL: http://hdl.handle.net/10.1080/23322039.2014.918855 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918855 Template-Type: ReDIF-Article 1.0 Author-Name: Sami El-Mahgary Author-X-Name-First: Sami Author-X-Name-Last: El-Mahgary Author-Name: Petri Rönnholm Author-X-Name-First: Petri Author-X-Name-Last: Rönnholm Author-Name: Hannu Hyyppä Author-X-Name-First: Hannu Author-X-Name-Last: Hyyppä Author-Name: Henrik Haggrén Author-X-Name-First: Henrik Author-X-Name-Last: Haggrén Author-Name: Jenni Koponen Author-X-Name-First: Jenni Author-X-Name-Last: Koponen Title: Evaluating the performance of university course units using data envelopment analysis Abstract: The technique of data envelopment analysis (DEA) for measuring the relative efficiency has been widely used in the higher education sector. However, measuring the performance of a set of course units or modules that are part of a university curriculum has received little attention. In this article, DEA was used in a visual way to measure the performance of 12 course units that are part of a Photogrammetry curriculum taught at Aalto University. The results pinpointed the weakest performing units, i.e. units where the provided teaching efforts might not be adequately reflected in the students' marks in the unit. Based on the results, a single unit was considered to offer poor performance with respect to its teaching resources and was selected as a candidate for revision of its contents. Financial resources were not used as such; instead, the performance of students in previous pre-requisite units was used as the inputs. For clarity, a single output covering the overall student performance in the examined unit was used. The technique should be widely applicable assuming the grade point averages of the students who took the course unit are available along with the marks obtained in the evaluated units and their pre-requisites. Journal: Cogent Economics & Finance Pages: 1-20 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.918856 File-URL: http://hdl.handle.net/10.1080/23322039.2014.918856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918856 Template-Type: ReDIF-Article 1.0 Author-Name: Agnieszka Bielinska-Kwapisz Author-X-Name-First: Agnieszka Author-X-Name-Last: Bielinska-Kwapisz Title: Do football teams learn from changing coaches? A test of the deceleration hypothesis Abstract: The paper explores the nature of change and finds evidence in favor of deceleration hypothesis: prior changes of a given type decrease the likelihood of a subsequent change of the same type while controlling for unobserved heterogeneity. We analyze leadership changes by explaining factors that influence football teams to replace their coaches. We use panel data for 33 National Football League's teams from 1976 to 2008. Journal: Cogent Economics & Finance Pages: 1-9 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.918857 File-URL: http://hdl.handle.net/10.1080/23322039.2014.918857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918857 Template-Type: ReDIF-Article 1.0 Author-Name: Claus Holm Author-X-Name-First: Claus Author-X-Name-Last: Holm Author-Name: Morten Balling Author-X-Name-First: Morten Author-X-Name-Last: Balling Author-Name: Thomas Poulsen Author-X-Name-First: Thomas Author-X-Name-Last: Poulsen Title: Corporate governance ratings as a means to reduce asymmetric information Abstract: Can corporate governance ratings reduce problems of asymmetric information between companies and investors? To answer this question, we set out to examine the information basis for providing such ratings by reviewing corporate governance attributes that are required or recommended in laws, accounting standards, and codes, respectively. After that, we scrutinize and organize the publicly available information on the methodologies actually used by rating providers. However, important details of these methodologies are treated as confidential property, thus we approach the evaluation of corporate governance ratings as a means to reduce asymmetric information in a more general manner. We propose that the rating process may be seen as consisting of two general activities, namely a data reduction phase, and a data weighting, aggregation, and classification phase. Findings based on a Danish data-set suggest that rating providers by selecting relevant attributes in an intelligent way can improve the screening of companies according to governance quality. In contrast, it seems questionable that weighting, aggregation, and classification of corporate governance attributes considerably improve discrimination according to governance quality. Journal: Cogent Economics & Finance Pages: 1-16 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.919235 File-URL: http://hdl.handle.net/10.1080/23322039.2014.919235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.919235 Template-Type: ReDIF-Article 1.0 Author-Name: Rod B. McNaughton Author-X-Name-First: Rod B. Author-X-Name-Last: McNaughton Author-Name: Brian Paul Cozzarin Author-X-Name-First: Brian Paul Author-X-Name-Last: Cozzarin Title: Inter-organizational linkages and resource dependence Abstract: Few studies have examined the relationship between inter-industry, inter-corporate ownership (ICO) patterns and inter-industry resource exchange patterns. Using data from Statistics Canada, this paper reveals a positive association between the degree of ICO linkages and the degree of input-output dependence among Canadian industry groups. This provides empirical support for the primary assertion of resource dependence theory: that corporations employ ICO linkages to manage their input-output dependence resulting from recurrent resource exchanges. This research differs from extant tests of resource dependence in that it uses data for the population of firms (over a size threshold) in Canada and includes all forms of interdependence between enterprises. The findings suggest scenarios in which corporations can adopt ICO linkages to manage resource dependence and reduce transaction costs. Journal: Cogent Economics & Finance Pages: 1-18 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.920269 File-URL: http://hdl.handle.net/10.1080/23322039.2014.920269 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.920269 Template-Type: ReDIF-Article 1.0 Author-Name: David Tanganelli Author-X-Name-First: David Author-X-Name-Last: Tanganelli Author-Name: Jean-Louis Schaan Author-X-Name-First: Jean-Louis Author-X-Name-Last: Schaan Title: Japanese subsidiaries in the European Union: Entry modes and performance Abstract: Japanese Foreign Direct Investment (FDI) in the European Union and its performance were analysed in this work. Three different FDI or entry modes used by Japanese companies to enter the European market were compared, and the presence of a relationship between the selected entry mode and the performance of the subsidiary was investigated. We found that more than half of the Japanese investments in Europe took the form of new ventures, approximately 40% were joint ventures and less than 6% were acquisitions. We found that no specific entry mode performed better than another. Journal: Cogent Economics & Finance Pages: 1-9 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.920270 File-URL: http://hdl.handle.net/10.1080/23322039.2014.920270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.920270 Template-Type: ReDIF-Article 1.0 Author-Name: Tadashi Yamada Author-X-Name-First: Tadashi Author-X-Name-Last: Yamada Author-Name: Tetsuji Yamada Author-X-Name-First: Tetsuji Author-X-Name-Last: Yamada Author-Name: Chia-Ching Chen Author-X-Name-First: Chia-Ching Author-X-Name-Last: Chen Author-Name: Weihong Zeng Author-X-Name-First: Weihong Author-X-Name-Last: Zeng Title: Determinants of health insurance and hospitalization Abstract: Our paper empirically examines how the decision to purchase private insurance and hospitalization are made based on household income, socio-demographic factors, and private health insurance factors in both Japan and the USA. Using these two data-sets, we found some similarities and dissimilarities between Japan and the United States. As income of households rises, households have a positive effect on purchasing health insurance as a normal good. Another similarity between the two countries is seen in the income effect on risk of hospitalization, which is negative for both Japanese and US cases. For dissimilarity, the insurance premium effect on risk of hospitalization is positive for the Japanese case, while negative for the US case. Since the Japanese insurance data had variables such as payments per day of hospitalization if household gets hospitalized, insurance payments upon death of an insured person, and annuity payments at maturity, we tested to see if these characteristics affect the risk of hospitalization for households; we do not eliminate a possibility of adverse selection. For the US pure health issuance characteristics, an increase in premium of health insurance policies cause individuals to substitute more health capital investment which causes lower risk of hospitalization. Journal: Cogent Economics & Finance Pages: 1-27 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.920271 File-URL: http://hdl.handle.net/10.1080/23322039.2014.920271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.920271 Template-Type: ReDIF-Article 1.0 Author-Name: Robert J. Sonora Author-X-Name-First: Robert J. Author-X-Name-Last: Sonora Author-Name: Josip Tica Author-X-Name-First: Josip Author-X-Name-Last: Tica Title: Harrod, Balassa, and Samuelson (re)visit Eastern Europe Abstract: In this paper, we investigate the Harrod-Balassa-Samuelson (HBS) hypothesis in 11 Central and Eastern European transition countries. Unlike previous research, we test the HBS hypothesis with NACE 6 quarterly data which enables us to divide data into tradable and nontradable sectors without requiring unrealistic assumptions on the nature of the data. Contrary to previous results, we are only able to find evidence for univariate HBS effects in Bulgaria, Croatia, Hungary, and Poland. However, using panel cointegration tests, we find strong statistical evidence for the HBS hypothesis within countries and across countries. Our results also demonstrate that cross-country HBS holds under the assumption that the law of one price for tradables does not hold. Finally, we find, contrary to theory, that government consumption negatively impacts relative prices. The policy implications are that failing to acknowledge the peculiarities of the transition process results in suboptimal monetary policy. Journal: Cogent Economics & Finance Pages: 1-17 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.920557 File-URL: http://hdl.handle.net/10.1080/23322039.2014.920557 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.920557 Template-Type: ReDIF-Article 1.0 Author-Name: Minqiang Li Author-X-Name-First: Minqiang Author-X-Name-Last: Li Title: Aumann and Serrano's economic index of risk for sums of gambles Abstract: We study Aumann and Serrano's (2008) risk index for sums of gambles that are not dependent. If the dependent parts are similarly ordered, then the risk index of the sum is always larger than the minimum of the risk indices of the two gambles. For negative dependence, the risk index of the sum is always smaller than the maximum. The above results agree with our intuitions of risk diversification well. These result points out another attractive property of Aumann and Serrano's risk index. These properties are potentially useful for risk assessment purposes of financial securities. Journal: Cogent Economics & Finance Pages: 1-5 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.921574 File-URL: http://hdl.handle.net/10.1080/23322039.2014.921574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.921574 Template-Type: ReDIF-Article 1.0 Author-Name: A. Deshkovski Author-X-Name-First: A. Author-X-Name-Last: Deshkovski Author-Name: A. Dzeshkovskaia Author-X-Name-First: A. Author-X-Name-Last: Dzeshkovskaia Title: Is a night better than a day: Empirical evidence Abstract: In this study, we analyze the portfolio allocation based on time asymmetry of stock characteristics. In particular, we analyzed the empirical data of changes in financial stock prices during the day period and during the night period and have found that characteristics such as mean and variance are different for changes during the day and changes during the night. Also, the portfolio characteristics, such as covariance between stocks, differ on whether we take into account day changes or night changes in prices. That greatly affects the allocation of fund to the portfolio for an investor who trades frequently. The portfolio should be re-balanced every day in order to achieve optimality and much higher return. At the same level of risk the returns on this new portfolio may by several times larger than the returns on a portfolio without everyday re-balancing. We computed numerically the allocation of funds for the stocks from the finance industry and showed that the increase in returns is substantial. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.921575 File-URL: http://hdl.handle.net/10.1080/23322039.2014.921575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.921575 Template-Type: ReDIF-Article 1.0 Author-Name: Garoui Nassreddine Author-X-Name-First: Garoui Author-X-Name-Last: Nassreddine Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Title: Cognitive governance, cognitive mapping and cognitive conflicts: Structural analysis with the MICMAC method Abstract: This research aims to achieve a better understanding of the modes of conceptualization and thinking on issues of governance. It is part of a cognitive approach, to our knowledge unprecedented. This research has shown that the mapping concepts of governance can provide the original performance and meaningful. The purpose was to plot the thought of governance actors in the form of a cognitive map and analyze it. The results highlighted the relative importance of the concepts they used, the dimensions from which they structured more or less consciously, here own thoughts, and the nature and characteristics of the concepts they considered primarily as an explanation or consequences. They allowed characterizing very special or very precise structure and content of the thought of these actors. The construction of collective cognitive maps is to help structure the relationship between governance actors in the sense that it will detect the conflict relations of cognitive order. The cognitive map is by definition a representation of mental models of actors on any topic. Actors of governance do not have the same definitions of the concepts of governance that represents for us a sort of cognitive conflict and hence through cognitive mapping can map the concentration of these conflicts and we are still looking for more to show the effectiveness governance mechanisms to resolve these conflicts. Journal: Cogent Economics & Finance Pages: 1-13 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.922893 File-URL: http://hdl.handle.net/10.1080/23322039.2014.922893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.922893 Template-Type: ReDIF-Article 1.0 Author-Name: Martins Iyoboyi Author-X-Name-First: Martins Author-X-Name-Last: Iyoboyi Author-Name: Olarinde Muftau Author-X-Name-First: Olarinde Author-X-Name-Last: Muftau Title: Impact of exchange rate depreciation on the balance of payments: Empirical evidence from Nigeria Abstract: The paper investigates the impact of exchange rate depreciation on the balance of payments (BOP) in Nigeria over the period 1961-2012. The analysis is based on a multivariate vector error correction framework. A long-term equilibrium relationship was found between BOP, exchange rate and other associated variables. The empirical results are in favour of bidirectional causality between BOP and other variables employed. Results of the generalized impulse response functions suggest that one standard deviation innovation on exchange rate reduces positive BOP in the medium and long term, while results of the variance decomposition indicate that a significant variation in Nigeria's BOP is not due to changes in exchange rate movements. The policy implication is that exchange rate depreciation which has been preponderant in Nigeria since the mid-1980s has not been very useful in promoting the country's positive BOP. It is recommended that growth in the real sector should be improved to enhance exports, create employment, curb inflation and reduce poverty, while cutting non-productive imports, attracting foreign private investment and implementing well coordinated macroeconomic policies that impact inflation positively and stimulate exchange rate stability. Journal: Cogent Economics & Finance Pages: 1-23 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.923323 File-URL: http://hdl.handle.net/10.1080/23322039.2014.923323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.923323 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed S. Khaled Author-X-Name-First: Mohammed S. Author-X-Name-Last: Khaled Author-Name: Stephen P. Keef Author-X-Name-First: Stephen P. Author-X-Name-Last: Keef Title: On the dynamics of international stock market efficiency Abstract: The Granger causality procedure is used to assess the dynamics of market efficiency of 17 international stock indices. These indices are based on relatively smaller firms. The reference of market efficiency is a stock index, from the same economy, which is based on relatively larger firms. There is evidence that market efficiency increases over time at a decreasing rate. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.923778 File-URL: http://hdl.handle.net/10.1080/23322039.2014.923778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.923778 Template-Type: ReDIF-Article 1.0 Author-Name: Chin-Yin Huang Author-X-Name-First: Chin-Yin Author-X-Name-Last: Huang Author-Name: Philip K.P. Lin Author-X-Name-First: Philip K.P. Author-X-Name-Last: Lin Title: Application of integrated data mining techniques in stock market forecasting Abstract: Stock market is considered too uncertain to be predictable. Many individuals have developed methodologies or models to increase the probability of making a profit in their stock investment. The overall hit rates of these methodologies and models are generally too low to be practical for real-world application. One of the major reasons is the huge fluctuation of the market. Therefore, the current research focuses in the stock forecasting area is to improve the accuracy of stock trading forecast. This paper introduces a system that addresses the particular need. The system integrates various data mining techniques and supports the decision-making for stock trades. The proposed system embeds the top-down trading theory, artificial neural network theory, technical analysis, dynamic time series theory, and Bayesian probability theory. To experimentally examine the trading return of the presented system, two examples are studied. The first uses the Taiwan Semiconductor Manufacturing Company (TSMC) data-set that covers an investment horizon of 240 trading days from 16 February 2011 to 23 January 2013. Eighty four transactions were made using the proposed approach and the investment return of the portfolio was 54% with an 80.4% hit rate during a 12-month period in which the TSMC stock price increased by 25% (from $NT 78.5 to $NT 101.5). The second example examines the stock data of Evergreen Marine Corporation, an international marine shipping company. Sixty four transactions were made and the investment return of the portfolio was 128% in 12 months. Given the remarkable investment returns in trading the example TSMC and Evergreen stocks, the proposed system demonstrates promising potentials as a viable tool for stock market forecasting. Journal: Cogent Economics & Finance Pages: 1-18 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.929505 File-URL: http://hdl.handle.net/10.1080/23322039.2014.929505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.929505 Template-Type: ReDIF-Article 1.0 Author-Name: S. Menguy Author-X-Name-First: S. Author-X-Name-Last: Menguy Title: Which is the optimal fiscal rule in a monetary union? Targeting the structural, the global budgetary deficit, or the public debt? Abstract: The aim of our paper is to contribute to the debate on optimal fiscal rules in a monetary union: in terms of global budgetary deficit, of structural budgetary deficit, or of public debt. Indeed, these rules seem to be mixed in the framework of the European Economic and Monetary Union, with the new Fiscal Compact. With the help of a simple macroeconomic model, we show that a goal in terms of public debt is the most appropriate in order to decrease the indebtedness levels, but that it could increase the recessionary risks for the most indebted European countries. Goals in terms of global budgetary deficit or public debt are the most appropriate to limit the budgetary activism and to stabilize fiscal variables in case of demand or supply shocks. However, a goal in terms of structural budgetary deficit is the most appropriate in order to stabilize economic activity levels in case of asymmetric demand or supply shocks. Journal: Cogent Economics & Finance Pages: 1-21 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.932257 File-URL: http://hdl.handle.net/10.1080/23322039.2014.932257 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.932257 Template-Type: ReDIF-Article 1.0 Author-Name: Fadzlan Sufian Author-X-Name-First: Fadzlan Author-X-Name-Last: Sufian Author-Name: Fakarudin Kamarudin Author-X-Name-First: Fakarudin Author-X-Name-Last: Kamarudin Title: The impact of ownership structure on bank productivity and efficiency: Evidence from semi-parametric Malmquist Productivity Index Abstract: The present study employs the state of the art bias-corrected Malmquist Productivity Index method to examine the sources of efficiency and productivity of the foreign and domestic banks operating in the Malaysian banking sector. The preferred methodology enables us to isolate efforts to catch up to the frontier (efficiency change) from shifts in the frontier (technological change [TECHCH]). The results indicate that the Malaysian banking sector has exhibited productivity progress mainly attributed to technological progress. The empirical findings suggest that both the domestic and foreign banks have exhibited productivity progress albeit at different quantum attributed mainly to progress in TECHCH. Journal: Cogent Economics & Finance Pages: 1-27 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.932700 File-URL: http://hdl.handle.net/10.1080/23322039.2014.932700 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.932700 Template-Type: ReDIF-Article 1.0 Author-Name: N.D. Geomelos Author-X-Name-First: N.D. Author-X-Name-Last: Geomelos Author-Name: E. Xideas Author-X-Name-First: E. Author-X-Name-Last: Xideas Title: Forecasting spot prices in bulk shipping using multivariate and univariate models Abstract: This paper employs an applied econometric study concerning forecasting spot prices in bulk shipping in both markets of tankers and bulk carriers in a disaggregated level. This research is essential, as spot market is one of the most volatile markets and there is a great uncertainty about the future development of spot prices. This uncertainty could be reduced by using estimates of ex-post and ex-ante forecasts. Econometric analysis focuses in the comparison of different econometric models from two important categories of econometrics: (1) multivariate models (VAR and VECM) and (2) univariate time series models (ARIMA, GARCH and E-GARCH) in order to derive the best predicting model for each ship type. Also, forecasts can be modified to yield an improved performance of forecasting accuracy via the theory of combining methods. Ex-post and ex-ante forecasts are estimated on the basis of best predicting model's performance. Results show that the combining methodology can reduce even more the forecasting errors. The results of empirical analysis could also be useful from the specialization, identification, estimation, and evaluation of previous econometric models' point of view. Also, ex-ante forecasts, which are taking into consideration the present economic crisis, can be used for the formation of efficient economic policy from decision-makers of shipping industry reducing even more spot markets' risk. Journal: Cogent Economics & Finance Pages: 1-37 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.932701 File-URL: http://hdl.handle.net/10.1080/23322039.2014.932701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.932701 Template-Type: ReDIF-Article 1.0 Author-Name: Roberto Bande-Ramudo Author-X-Name-First: Roberto Author-X-Name-Last: Bande-Ramudo Author-Name: Manuel Fernandez-Grela Author-X-Name-First: Manuel Author-X-Name-Last: Fernandez-Grela Author-Name: Dolores Riveiro-Garcia Author-X-Name-First: Dolores Author-X-Name-Last: Riveiro-Garcia Title: Consumption, investment and unemployment: SVAR tests of the effects of changes in the consumption-saving pattern Abstract: In this paper, we provide evidence supporting the hypothesis that permanent shifts in the consumption-saving pattern will have permanent effects on investment, with subsequent consequences for the unemployment rate, by estimating a structural vector autoregression model for the Spanish economy. Our results suggest a significant impact of consumption shocks on unemployment through changes in investment. Journal: Cogent Economics & Finance Pages: 1-7 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.933676 File-URL: http://hdl.handle.net/10.1080/23322039.2014.933676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.933676 Template-Type: ReDIF-Article 1.0 Author-Name: Olga Yashkir Author-X-Name-First: Olga Author-X-Name-Last: Yashkir Author-Name: Yuri Yashkir Author-X-Name-First: Yuri Author-X-Name-Last: Yashkir Title: Overnight Index Rate: Model, calibration and simulation Abstract: In this study, the extended Overnight Index Rate (OIR) model is presented. The fitting function for the probability distribution of the OIR daily returns is based on three different Gaussian distributions which provide modelling of the narrow central peak and the wide fat-tailed component. The calibration algorithm for the model is developed and investigated using the historical OIR data. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.936955 File-URL: http://hdl.handle.net/10.1080/23322039.2014.936955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.936955 Template-Type: ReDIF-Article 1.0 Author-Name: Carren Pindiriri Author-X-Name-First: Carren Author-X-Name-Last: Pindiriri Title: A theoretical analysis of the effectiveness of sustainable development assistance on environmental quality Abstract: A number of empirical studies have been carried out to assess the impact of sustainable development assistance (SDA) and aid on environmental quality in poor countries, but these studies have been characterized by weak theoretical anchor. It is against this background that this paper provides a theoretical basis from which empirical models of the effectiveness and impact of SDA on environmental quality can be derived. The paper applies the classical consumer theory of utility maximization, Keynesian macroeconomic model and further suggests an incentive-based approach (post-cure financial SDA model) in explaining the effectiveness of environmental financing. The theories discussed in this paper confirm the results obtained by previous empirical studies on environmental financing. Journal: Cogent Economics & Finance Pages: 1-10 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.939293 File-URL: http://hdl.handle.net/10.1080/23322039.2014.939293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.939293 Template-Type: ReDIF-Article 1.0 Author-Name: Arghya Kusum Mukherjee Author-X-Name-First: Arghya Kusum Author-X-Name-Last: Mukherjee Author-Name: Amit Kundu Author-X-Name-First: Amit Author-X-Name-Last: Kundu Title: Government-sponsored microfinance program: Joint liability vs. individual liability Abstract: Swarnajayanti Gram Swarozgar Yojana (SGSY) is a government-sponsored microfinance program. The scheme is based on four features: group lending with joint liability, progressive lending, back-ended subsidy, and social capital. We propose a new model of SGSY having these features: group lending with individual liability, progressive lending, back-ended subsidy, and social capital. "Joint liability" clause of the existing model is replaced with individual liability in the new model. The paper shows that problem of adverse selection is removed in both models, i.e. in "SGSY with group lending and joint liability" and "SGSY with group lending and individual liability." The problem of "moral hazard" is more severe in the existing model of SGSY compared with the proposed model of SGSY. Borrowers are also benefitted from participation in the proposed scheme of SGSY than that in the existing model of SGSY. Journal: Cogent Economics & Finance Pages: 1-14 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.939768 File-URL: http://hdl.handle.net/10.1080/23322039.2014.939768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.939768 Template-Type: ReDIF-Article 1.0 Author-Name: Anindya Goswami Author-X-Name-First: Anindya Author-X-Name-Last: Goswami Author-Name: Ravi Kant Saini Author-X-Name-First: Ravi Kant Author-X-Name-Last: Saini Title: Volterra equation for pricing and hedging in a regime switching market Abstract: It is known that the risk minimizing price of European options in Markov-modulated market satisfies a system of coupled PDE, known as generalized B-S-M PDE. In this paper, another system of equations, which can be categorized as a Volterra integral equations of second kind, are considered. It is shown that this system of integral equations has smooth solution and the solution solves the generalized B-S-M PDE. Apart from showing existence and uniqueness of the PDE, this IE representation helps to develop a new computational method. It enables to compute the European option price and corresponding optimal hedging strategy by using quadrature method. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.939769 File-URL: http://hdl.handle.net/10.1080/23322039.2014.939769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.939769 Template-Type: ReDIF-Article 1.0 Author-Name: P. Geetha Rani Author-X-Name-First: P. Author-X-Name-Last: Geetha Rani Title: Disparities in earnings and education in India Abstract: This paper studies the impact of different levels of education, religion, caste as well as the impact of living in urban and rural communities on earnings in India. Besides these conventional stratification, yet another academic caste which influence earnings-the English language ability, is also examined. The paper uses a large cross-section sample of India Human Development Survey to estimate Mincer and augmented Mincer equations. The rates of return estimates obtained in these data and method confirm that returns to education increase with the level of education across location, caste-religion and English language ability. Returns to lower levels of education are low across different groups, indicating the low quality of basic schooling in the country. Returns to higher education vary at a great deal ranging between 4.9% among the rural workers and 38.2% among fluent English ability group. This is in contrast to Duraisamy reporting the highest returns to secondary education in India, between the period 1983 and 1993-1994. In a decade's time, with changes in the economy and in the labour market, higher education especially the English language ability along with higher education brings in the highest wage premium. Journal: Cogent Economics & Finance Pages: 1-18 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.941510 File-URL: http://hdl.handle.net/10.1080/23322039.2014.941510 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.941510 Template-Type: ReDIF-Article 1.0 Author-Name: Jason Giersch Author-X-Name-First: Jason Author-X-Name-Last: Giersch Title: Effects of vacation properties on local education budgets Abstract: Residents of school districts with large percentages of vacation properties have the opportunity to export a portion of their school taxes onto the owners of those vacation properties. Those property owners are unlikely to consume educational services or have the opportunity to vote against local school taxes. Previous studies address exportation of taxes onto vacation property owners and the effects on local government budgets generally but not on education finances specifically. This study connects research on rates of vacation properties with that on local education finances by using data from the state of Georgia in 2010 and weighted least squares regression analysis to show that high percentages of vacation properties do indeed result in larger local school expenditures. Journal: Cogent Economics & Finance Pages: 1-9 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.941890 File-URL: http://hdl.handle.net/10.1080/23322039.2014.941890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.941890 Template-Type: ReDIF-Article 1.0 Author-Name: S. Alonso Author-X-Name-First: S. Author-X-Name-Last: Alonso Author-Name: V. Azofra Author-X-Name-First: V. Author-X-Name-Last: Azofra Author-Name: G. De La Fuente Author-X-Name-First: G. Author-X-Name-Last: De La Fuente Title: What do you do when the binomial cannot value real options? The LSM model Abstract: The Least-Squares Monte Carlo model (LSM model) has emerged as the derivative valuation technique with the greatest impact in current practice. As with other options valuation models, the LSM algorithm was initially posited in the field of financial derivatives and its extension to the realm of real options requires considering certain questions which might hinder understanding of the algorithm and which the present paper seeks to address. The implementation of the LSM model combines Monte Carlo simulation, dynamic programming and statistical regression in a flexible procedure suitable for application to valuing nearly all types of corporate investments. The goal of this paper is to show how the LSM algorithm is applied in the context of a corporate investment, thus contributing to the understanding of the principles of its operation. Journal: Cogent Economics & Finance Pages: 1-17 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.942338 File-URL: http://hdl.handle.net/10.1080/23322039.2014.942338 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.942338 Template-Type: ReDIF-Article 1.0 Author-Name: Rana Ejaz Ali Khan Author-X-Name-First: Rana Ejaz Ali Author-X-Name-Last: Khan Author-Name: Qazi Muhammad Adnan Hye Author-X-Name-First: Qazi Muhammad Author-X-Name-Last: Adnan Hye Title: Foreign direct investment and liberalization policies in Pakistan: An empirical analysis Abstract: To enhance the inflow of foreign direct investment (FDI) and ultimately to increase the economic growth, the countries have implemented a variety of financial and trade liberalization policies in the last three decades. Pakistan also initiated such type of policies. This study makes an analysis of the impact of liberalization (financial and trade) in Pakistan, on the inflow of FDI using the time series data of 1971-2009. The DF-GLS test is used to determine the level of integration, and autoregressive distributed lag model to examine the long-run relationship. The results indicate that liberalization indicators, like financial liberalization index and trade openness along with real interest rate, negatively affect the inflow of FDI in Pakistan. Tax revenue of product also negatively affects the FDI. On the other hand, the gross fixed capital formation, infrastructure, and inflation positively influence the FDI in Pakistan. The market size (proxied by real gross domestic product) has shown insignificant effect on FDI. Journal: Cogent Economics & Finance Pages: 1-12 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.944667 File-URL: http://hdl.handle.net/10.1080/23322039.2014.944667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.944667 Template-Type: ReDIF-Article 1.0 Author-Name: Rajesh Acharya Author-X-Name-First: Rajesh Author-X-Name-Last: Acharya Author-Name: Vishal Gaikwad Author-X-Name-First: Vishal Author-X-Name-Last: Gaikwad Title: Pre-open call auction and price discovery: Evidence from India Abstract: Premier stock exchanges in India, viz. National Stock Exchange of India and Bombay Stock Exchange, introduced call auction in the pre-open session from 18 October 2010. This paper analyzes the impact of introduction of pre-open call auction on price discovery at the open. Empirical analysis is based on the familiar market model in an event study framework. The result shows a decline in the market model R-super-2 for both opening and closing returns of stocks forming the part of call auction and also control sample. However, the magnitude of decline is less in the opening prices for the call auction stocks compared with control sample. Furthermore, analysis carried out using the second pass β and R-super-2 regressions shows that the introduction of pre-open call auction does not have any significant impact on market quality. The findings of the study have implications for the future policy-making on the call auction framework. Journal: Cogent Economics & Finance Pages: 1-11 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.944668 File-URL: http://hdl.handle.net/10.1080/23322039.2014.944668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.944668 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Brusov Author-X-Name-First: Peter Author-X-Name-Last: Brusov Author-Name: Tatiana Filatova Author-X-Name-First: Tatiana Author-X-Name-Last: Filatova Author-Name: Natali Orekhova Author-X-Name-First: Natali Author-X-Name-Last: Orekhova Title: Mechanism of formation of the company optimal capital structure, different from suggested by trade off theory Abstract: Under condition of proved by us insolvency of well-known classical trade off theory it becomes important to identify mechanisms for forming the optimal capital structure of a company. This paper presents one of the real such mechanisms based on the decrease of debt cost with leverage, which is determined by growth of debt volume. This mechanism is absent in perpetuity Modigliani-Miller theory, even in modified version, developed by us, and exists within more general modern theory of capital cost and capital structure by Brusov-Filatova-Orekhova, or BFO theory.. Journal: Cogent Economics & Finance Pages: 1-13 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.946150 File-URL: http://hdl.handle.net/10.1080/23322039.2014.946150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.946150 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher A. Hartwell Author-X-Name-First: Christopher A. Author-X-Name-Last: Hartwell Title: Do (successful) stock exchanges support or hinder institutions in transition economies? Abstract: A stock exchange and the presence of functioning equity markets are part and parcel of an advanced market-based financial system. Previous research has also established that equity markets function more efficiently in the presence of supporting institutions such as property rights and rule of law. But how do these two aspects of the institutional environment interact? That is, does the performance of a stock exchange support the development of property rights, or can it actually hinder it? Examining monthly data for 21 transition economies over a shifting monthly window from 1989 to 2012, and using a fixed-effects specification with Driscoll-Kraay standard errors, I find support for the existence of an inverted U-shaped relationship between property rights and stock market performance. While a well-functioning stock market may help reinforce property rights through demonstration effects, a stock market that has become "too successful" may entrench interests and lead to property rights-eroding policies. Journal: Cogent Economics & Finance Pages: 1-18 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.946620 File-URL: http://hdl.handle.net/10.1080/23322039.2014.946620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.946620 Template-Type: ReDIF-Article 1.0 Author-Name: Habibeh Sherafatmand Author-X-Name-First: Habibeh Author-X-Name-Last: Sherafatmand Author-Name: Saeed Yazdani Author-X-Name-First: Saeed Author-X-Name-Last: Yazdani Title: The management of price risk in Iranian dates: An application of futures instruments Abstract: Effective risk management is an important aspect of farming. Risk management involves choosing among alternatives that reduce the financial effects of the uncertainties of weather, yields, prices, government policies, and other factors that can cause wide swings in farm income. To deal with price uncertainty, this paper focuses on futures markets and calculates hedge ratio for dates. A bivariate BEKK GARCH model is used to determine time-varying hedge ratios. The results show that the average BEKK BGARCH hedge ratio for dates is .7. Also in this paper, the hedge ratio, which takes into consideration the producers' risk-averse parameter, is estimated [Extended mean Gini hedge ratio (EMGHR)]. Results of EMGHR recommended that risk-averse producers, who have risky parameter equal to 50, could reduce their price risk to 60% by attending futures markets. Journal: Cogent Economics & Finance Pages: 1-12 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.946998 File-URL: http://hdl.handle.net/10.1080/23322039.2014.946998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.946998 Template-Type: ReDIF-Article 1.0 Author-Name: Desiderio Romero-Jordán Author-X-Name-First: Desiderio Author-X-Name-Last: Romero-Jordán Author-Name: José Félix Sanz Author-X-Name-First: José Félix Author-X-Name-Last: Sanz Author-Name: Mercedes Burguillo Author-X-Name-First: Mercedes Author-X-Name-Last: Burguillo Title: Is it environmentally desirable to encourage public transport through taxes? Evidence for Spanish households Abstract: There are studies that suggests that the use of environmental taxes to promote the consumption of "clean goods" could have unwanted effects in that it leads to the consumption of "dirty goods". The results will depend on the multiple effects of cross-price elasticities. This paper illustrates the above hypothesis as applied to earth transport consumption in Spanish households. Using microdata for Spanish households, we firstly estimate an AIDS model for 16 groups of goods and services. And secondly simulate two alternative revenue-neutral tax reforms in which the relative price of public transport, in terms of private transport, is reduced between 1 and 2%. The results confirm Sandmo's hypothesis. With both reforms, fuel consumption (as measure of private transport use) increases and public transport consumption decreases. The consequence in each case is a net increase in CO2 emissions per household. So, fiscal reforms of this kind do not seem to be effective to improve the environmental performance of passengers earth transport sector in Spain. Journal: Cogent Economics & Finance Pages: 1-9 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.946999 File-URL: http://hdl.handle.net/10.1080/23322039.2014.946999 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.946999 Template-Type: ReDIF-Article 1.0 Author-Name: Mirajul Haq Author-X-Name-First: Mirajul Author-X-Name-Last: Haq Author-Name: Muhammad Luqman Author-X-Name-First: Muhammad Author-X-Name-Last: Luqman Title: The contribution of international trade to economic growth through human capital accumulation: Evidence from nine Asian countries Abstract: This study is an attempt to test the hypothesis "international trade contributes to economic growth through its effects on human capital accumulation." To assess the hypothesis empirically, we employed the extended Neo-Classical growth model that reflects some features of the endogenous growth models. We thus ended up with a model in which the change in human capital is sensitive to change in trade policies. Unlike conventional approaches, the model serves to assess and determine the impact of international trade on the accumulation of human capital. The empirical analysis estimates dynamic panel growth equations by using a data-set of nine Asian countries, over the period 1972-2012. The overall evidence substantiates the fact that in countries under consideration, international trade enhances the accumulation of human capital and contributes to economic growth positively through human capital accumulation. Journal: Cogent Economics & Finance Pages: 1-13 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.947000 File-URL: http://hdl.handle.net/10.1080/23322039.2014.947000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.947000 Template-Type: ReDIF-Article 1.0 Author-Name: Eduardo Ariel Corso Author-X-Name-First: Eduardo Ariel Author-X-Name-Last: Corso Title: Ambiguity, ambiguity aversion and stores of value: The case of Argentina Abstract: We study the household portfolio allocation in an economy with a history of nominal anchor volatility. Applying smooth ambiguity preferences to a static portfolio choice problem, we rationalize two facts about the Argentine experience of the last 20years: the dollarization of household financial assets and its bias towards investment real estate as a means of preserving the real value of wealth. We find that ambiguity explains portfolio dollarization. In addition, ambiguity aversion reduces the demand for assets denominated in US dollars and increases the demand for investment real estate. Journal: Cogent Economics & Finance Pages: 1-13 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.947001 File-URL: http://hdl.handle.net/10.1080/23322039.2014.947001 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.947001 Template-Type: ReDIF-Article 1.0 Author-Name: Mehdi Hajamini Author-X-Name-First: Mehdi Author-X-Name-Last: Hajamini Author-Name: Mohammad Ali Falahi Author-X-Name-First: Mohammad Ali Author-X-Name-Last: Falahi Title: The nonlinear impact of government consumption expenditure on economic growth: Evidence from low and low-middle income countries Abstract: The purpose of this paper is to investigate the impact of government consumption expenditure as a share of GDP on economic growth in developing countries. The paper uses threshold panel model to examine nonlinear relationship between the government consumption expenditure share and economic growth in 21 low-income countries and 11 low-middle income countries during 1981-2007. The results confirm nonlinear relationship, in which the threshold share of government consumption expenditure for the low and low-middle income countries is 16.2 and 16.9% with the confidence intervals of [13.7-17.3%] and [16.5-16.9%], respectively. The results indicate that, after passing the threshold, the effect of government consumption expenditure share on economic growth changes from insignificantly positive to significantly negative. Journal: Cogent Economics & Finance Pages: 1-15 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.948122 File-URL: http://hdl.handle.net/10.1080/23322039.2014.948122 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.948122 Template-Type: ReDIF-Article 1.0 Author-Name: Hamza Fadhila Author-X-Name-First: Hamza Author-X-Name-Last: Fadhila Author-Name: Azouzi Mohamed Ali Author-X-Name-First: Azouzi Author-X-Name-Last: Mohamed Ali Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Title: CEO's commitment bias, ownership concentration, and innovation decision: Behavioral management of CEO's discretion Abstract: This paper deals with approving the effect of both a governance system and individual cognitive and emotional features in the financial analysis of a firms' innovation decision. After discussing the theoretical linking between ownership concentration and the CEO's attitude and behavior, we are showing on empirical grounds the relationship between the manager's behavior toward the innovation decision and his cognitive commitment level. The CEO's commitment bias and attitude conception were measured using a questionnaire. The data analysis was performed using the Bayesian network method on 220 Tunisian managers. In particular, we found that the application of a persuasion mechanism does not have a real impact on the alignment of the manager's attitude and behavior in key tasks, such as the innovation decision. The CEO's real behavior was more related to an important individual involvement in this behavior rather than to persuasive effort committed by block holders to make him contract this action. Attitude and behavior toward innovation appeared to be associated with psychological commitment "manager-task" which suggests that the disciplinary governance system plays no role in the process of a CEO's discretion management. We argue that the persuasion approach is not an interesting path in behavior alignment; yet, it should be reinforced with the commitment approach for understanding manager choices. Journal: Cogent Economics & Finance Pages: 1-24 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.948123 File-URL: http://hdl.handle.net/10.1080/23322039.2014.948123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.948123 Template-Type: ReDIF-Article 1.0 Author-Name: Victoria I. Audu Author-X-Name-First: Victoria I. Author-X-Name-Last: Audu Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Title: The effects of improved maize technology on household welfare in Buruku, Benue State, Nigeria Abstract: This study was carried out to determine the welfare effects of improved maize technology in Buruku Local Government Area of Benue State, Nigeria. The study also examined the determinants of the adoption of improved maize technology. Structured questionnaires were used in collecting the primary data for the study. A multi-stage random technique was used in selecting 125 farm households for the study. The Logit and ordinary least square (OLS) models were used in analyzing the data. The OLS results show that adoption of improved maize varieties is positively and significantly related to household welfare and thus has contributed to moving farm households out of poverty. Other variables found to be statistically significant in explaining household welfare are education, household size, and landholding. The Logit results show that age, household size, off-farm income, and education were found to be significant in influencing farmers' adoption decisions. Some robustness checks were performed with different specifications of the Logit and OLS models as well as re-estimation with propensity matching score approach. Overall, the results are robust to different specifications. Journal: Cogent Economics & Finance Pages: 1-10 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.960592 File-URL: http://hdl.handle.net/10.1080/23322039.2014.960592 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.960592 Template-Type: ReDIF-Article 1.0 Author-Name: Zouheir Mighri Author-X-Name-First: Zouheir Author-X-Name-Last: Mighri Author-Name: Faysal Mansouri Author-X-Name-First: Faysal Author-X-Name-Last: Mansouri Title: Modeling international stock market contagion using multivariate fractionally integrated APARCH approach Abstract: The aim of this article is to examine how the dynamics of correlations between two emerging countries (Brazil and Mexico) and the US evolved from January 2003 to December 2013. The main contribution of this study is to explore whether the plunging stock market in the US, in the aftermath of global financial crisis (2007-2009), exerts contagion effects on emerging stock markets. To this end, we rely on a multivariate fractionally integrated asymmetric power autoregressive conditional heteroskedasticity dynamic conditional correlation framework, which accounts for long memory, power effects, leverage terms, and time-varying correlations. The empirical analysis shows a contagion effect for Brazil and Mexico during the early stages of the global financial crisis, indicating signs of "recoupling." Nevertheless, linkages show a general pattern of "decoupling" after the Lehman Brothers collapse. Furthermore, correlations between Brazil and the US are decreased from early 2009 onwards, implying that their dependence is larger in bearish than in bullish markets. Journal: Cogent Economics & Finance Pages: 1-25 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.963632 File-URL: http://hdl.handle.net/10.1080/23322039.2014.963632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.963632 Template-Type: ReDIF-Article 1.0 Author-Name: Yongli Luo Author-X-Name-First: Yongli Author-X-Name-Last: Luo Title: Cross-listing, managerial compensation and corporate governance Abstract: This study examines the relationship between cross-listing and managerial compensation of Chinese firms that concurrently issued A- and B-shares or A- and H-shares during 2001-2010. The results show that executive compensation is a positive factor to motivate Chinese A-share firms to cross-list as B- or H-shares; it implies that cross-listings could be employed as a way of asset appropriation at the managers' discretion. The results also confirm that corporate governance is important in determining cross-listings. Under the weak corporate governance institution, Chinese firms were chosen to cross-list based on political considerations rather than on economic merits, serving as a vehicle to signal the quality of state owned enterprises. The results are drawn on agency theory, signalling hypothesis and bonding hypothesis. Journal: Cogent Economics & Finance Pages: 1-17 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.967361 File-URL: http://hdl.handle.net/10.1080/23322039.2014.967361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.967361 Template-Type: ReDIF-Article 1.0 Author-Name: Concetta Castiglione Author-X-Name-First: Concetta Author-X-Name-Last: Castiglione Author-Name: Davide Infante Author-X-Name-First: Davide Author-X-Name-Last: Infante Author-Name: Maria Teresa Minervini Author-X-Name-First: Maria Teresa Author-X-Name-Last: Minervini Author-Name: Janna Smirnova Author-X-Name-First: Janna Author-X-Name-Last: Smirnova Title: Environmental taxation in Europe: What does it depend on? Abstract: The present work adds to the existing literature the analysis of the determinants of environmental taxation in European economies. Using a pooled panel data, we consider various groups of factors influencing environmental taxation referring to production and consumption, environmental performance and the quality of governance of European countries, taking into account their heterogeneity. We argue that in order to function, environmental taxation policy should rely on the virtuous interrelationship between economic development and institutional enforcement, which contributes to enhancing the process of environmental renaissance. Journal: Cogent Economics & Finance Pages: 1-8 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.967362 File-URL: http://hdl.handle.net/10.1080/23322039.2014.967362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.967362 Template-Type: ReDIF-Article 1.0 Author-Name: Feng Dai Author-X-Name-First: Feng Author-X-Name-Last: Dai Author-Name: Songtao Wu Author-X-Name-First: Songtao Author-X-Name-Last: Wu Author-Name: Ling Liang Author-X-Name-First: Ling Author-X-Name-Last: Liang Title: Capital and innovation aggregation with environmental pressure: An optimal evolution Abstract: Based on the advance-retreat course model, a growth model under environmental pressure, this paper builds an economic growth model that focuses on the aggregation of capital and innovation with environmental pressure. Importantly, the paper presents methods for computing the optimal quantity of capital-goods and innovation-goods. The paper makes the empirical researches using US GDP data (1940-2010 and 1969-2010). The findings include that the aggregations of capital and innovation promote economic growth, the optimal number of capital-goods decreases with innovation growth, the optimal number of innovation-goods decreases with capital expansion, both capital-goods and innovation-goods aggregate with environmental pressure increasing, and innovation is quicker than capital in aggregation. Journal: Cogent Economics & Finance Pages: 1-16 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.988401 File-URL: http://hdl.handle.net/10.1080/23322039.2014.988401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.988401 Template-Type: ReDIF-Article 1.0 Author-Name: Samih Antoine Azar Author-X-Name-First: Samih Antoine Author-X-Name-Last: Azar Author-Name: Vera Karaguezian-Haddad Author-X-Name-First: Vera Author-X-Name-Last: Karaguezian-Haddad Title: Simulating the market coefficient of relative risk aversion Abstract: In this paper, expected utility, defined by a Taylor series expansion around expected wealth, is maximized. The coefficient of relative risk aversion (CRRA) that is commensurate with a 100% investment in the risky asset is simulated. The following parameters are varied: the riskless return, the market standard deviation, the market stock premium, and the skewness and the kurtosis of the risky return. Both the high extremes and the low extremes are considered. With these figures, the upper bound of the market CRRA is 3.021 and the lower bound is 0.466. Log utility, which corresponds to a CRRA of 1, is not excluded. Journal: Cogent Economics & Finance Pages: 1-7 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.990742 File-URL: http://hdl.handle.net/10.1080/23322039.2014.990742 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.990742 Template-Type: ReDIF-Article 1.0 Author-Name: Ivan K. Cohen Author-X-Name-First: Ivan K. Author-X-Name-Last: Cohen Author-Name: Fabrizio Ferretti Author-X-Name-First: Fabrizio Author-X-Name-Last: Ferretti Author-Name: Bryan McIntosh Author-X-Name-First: Bryan Author-X-Name-Last: McIntosh Title: Decomposing the misery index: A dynamic approach Abstract: The misery index (the unweighted sum of unemployment and inflation rates) was probably the first attempt to develop a single statistic to measure the level of a population's economic malaise. In this letter, we develop a dynamic approach to decompose the misery index using two basic relations of modern macroeconomics: the expectations-augmented Phillips curve and Okun's law. Our reformulation of the misery index is closer in spirit to Okun's idea. However, we are able to offer an improved version of the index, mainly based on output and unemployment. Specifically, this new Okun's index measures the level of economic discomfort as a function of three key factors: (1) the misery index in the previous period; (2) the output gap in growth rate terms; and (3) cyclical unemployment. This dynamic approach differs substantially from the standard one utilised to develop the misery index, and allow us to obtain an index with five main interesting features: (1) it focuses on output, unemployment and inflation; (2) it considers only objective variables; (3) it allows a distinction between short-run and long-run phenomena; (4) it places more importance on output and unemployment rather than inflation; and (5) it weights recessions more than expansions. Journal: Cogent Economics & Finance Pages: 1-8 Issue: 1 Volume: 2 Year: 2014 Month: 12 X-DOI: 10.1080/23322039.2014.991089 File-URL: http://hdl.handle.net/10.1080/23322039.2014.991089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.991089 Template-Type: ReDIF-Article 1.0 Author-Name: Huthaifa Alqaralleh Author-X-Name-First: Huthaifa Author-X-Name-Last: Alqaralleh Author-Name: Radi Adayleh Author-X-Name-First: Radi Author-X-Name-Last: Adayleh Title: The dynamics of the economic cycle with duration dependence: Further evidence from Jordan Abstract: In this article, we investigate the effectiveness of the credit facilities and foreign trade to combat the cycle duration in the industrial production index. The turning point methodology of Harding and Pagan was adapted to formulate the economic cycle. Using the industrial production index of the Jordanian economy over the months from January 2000 to December 2017, the Logit model was used to test for duration dependence, with the credit facilities and net export included as controls. We find that industrial production index expansions and contractions have positive duration dependence, since their exit probabilities increase with duration. These results first help policy-makers to predict the length of economic cycles and to use these factors to reduce the consequences of the contraction. Second, the fact that duration is significant for the expansion phase could become a useful indicator in predicting the length of an economic cycle. The asymmetric nature of our duration dependence findings is striking. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1565609 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1565609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1565609 Template-Type: ReDIF-Article 1.0 Author-Name: Kenneth A. Tah Author-X-Name-First: Kenneth A. Author-X-Name-Last: Tah Title: Remittances and financial access: Evidence from Sub-Saharan Africa Abstract: This paper empirically investigates the effects of remittances on access to financial services in 26 Sub-Saharan African countries over the period 2004–2015. We find that remittances have a significantly positive impact on financial access in Sub-Saharan Africa. This finding remains true in least squares regressions and with Arellano-Bond Dynamic Panel Estimation that accounts for the endogenous relationship between remittances and financial access and that controls for any bias arising from the lagged dependent variables, as well as using an alternative measure of financial access. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1570581 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1570581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1570581 Template-Type: ReDIF-Article 1.0 Author-Name: Alex Garivaltis Author-X-Name-First: Alex Author-X-Name-Last: Garivaltis Title: Super-replication of the best pairs trade in hindsight Abstract: This paper derives a robust online equity trading algorithm that achieves the greatest possible percentage of the final wealth of the best pairs rebalancing rule in hindsight. A pairs rebalancing rule chooses some pair of stocks in the market and then perpetually executes rebalancing trades so as to maintain a target fraction of wealth in each of the two. After each discrete market fluctuation, a pairs rebalancing rule will sell a precise amount of the outperforming stock and put the proceeds into the underperforming stock.Under typical conditions, in hindsight one can find pairs rebalancing rules that would have spectacularly beaten the market. Our trading strategy, which extends Ordentlich and Cover’s “max-min universal portfolio,” guarantees to achieve an acceptable percentage of the hindsight-optimized wealth, a percentage which tends to zero at a slow (polynomial) rate. This means that on a long enough investment horizon, the trader can enforce a compound-annual growth rate that is arbitrarily close to that of the best pairs rebalancing rule in hindsight. The strategy will “beat the market asymptotically” if there turns out to exist a pairs rebalancing rule that grows capital at a higher asymptotic rate than the market index.The advantages of our algorithm over the Ordentlich and Cover strategy are twofold. First, their strategy is impossible to compute in practice. Second, in considering the more modest benchmark (instead of the best all-stock rebalancing rule in hindsight), we reduce the “cost of universality” and achieve a higher learning rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1568657 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568657 Template-Type: ReDIF-Article 1.0 Author-Name: Ray Saadaoui Mallek Author-X-Name-First: Ray Saadaoui Author-X-Name-Last: Mallek Author-Name: Mohamed Albaity Author-X-Name-First: Mohamed Author-X-Name-Last: Albaity Title: Individual differences and cognitive reflection across gender and nationality the case of the United Arab Emirates Abstract: This study aims to investigate the effect of gender differences and nationality on the Cognitive Reflection Test (CRT), as well as behavioural biases. A sample of 770 questionnaires was collected from undergraduate business students in public and private universities across the United Arab Emirates. The results suggested that low CRT values were dominant in males and females alike for non-UAE citizens in the age group of 18–22 years old, of whom at least one of the parents had a college degree. Subjects with higher cognitive reflection scores were significantly more likely to exhibit overconfidence, risk preference, and risk illiteracy. In addition, females scored lower than males, and non-UAE citizens scored higher than local citizens in the CRT. However, further analysis of the interaction between gender and nationality revealed that local females scored on average higher than non-UAE females. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1567965 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1567965 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1567965 Template-Type: ReDIF-Article 1.0 Author-Name: Kehinde Damilola Ilesanmi Author-X-Name-First: Kehinde Damilola Author-X-Name-Last: Ilesanmi Author-Name: Devi Datt Tewari Author-X-Name-First: Devi Datt Author-X-Name-Last: Tewari Title: Management of shadow banks for economic and financial stability in South Africa Abstract: The global increase in the regulation of banks has encouraged the channeling of investment funds into less regulated institutions such as shadow banks to avoid restriction. Shadow banks are institutions that operate outside the regulatory framework of the traditional banking system and because of that, they lack adequate safety compared to the traditional banks. These among others have raised serious concerns, especially after the recent financial crisis as they see these institutions as a major source of risk and instability in the financial system and the economy as a whole. This study examined the link between shadow banking and financial stability in South African by employing a modest desktop literature review approach. Although the shadow banking in South Africa is advantageous in terms providing alternative source of credit to support economic activities by extending banking services and investment opportunities to the unbanked as well as those who lack knowledge of how to access capital, however, issues of regulations, management and transparency have not been adequately dealt with. These create a great risk to the economy if not properly addressed. Protecting the interest and investment of customers should be a major concern of government or regulatory authorities without necessarily jeopardising the interest of shadow banking operators. Also, a proper risk measurement technique that fits the shadow banking system is necessary. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1568849 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568849 Template-Type: ReDIF-Article 1.0 Author-Name: Ameet Kumar Author-X-Name-First: Ameet Author-X-Name-Last: Kumar Author-Name: Niaz Ahmed Bhutto Author-X-Name-First: Niaz Ahmed Author-X-Name-Last: Bhutto Author-Name: Khalid Ahmed Mangrio Author-X-Name-First: Khalid Ahmed Author-X-Name-Last: Mangrio Author-Name: Muhammad Ramzan Kalhoro Author-X-Name-First: Muhammad Ramzan Author-X-Name-Last: Kalhoro Title: Impact of external debt and exchange rate volatility on domestic consumption. New evidence from Pakistan Abstract: This study has examined the impact of external debt and the volatility of exchange rate on domestic consumption in Pakistan by using the yearly data (1980–2014). We apply the bounds testing approach to cointegration and error-correction modeling to check their short run and long-run impact on the domestic consumption. The findings of this study has contributed to the existing literature in two ways: bound test results show that income, interest rate, exchange rate, volatility of exchange rate, and external debt have long-term relationship with domestic consumption and income, interest rate and exchange rate have positive impact whereas exchange rate volatility and external debt have negative impact on domestic consumption in the short run as well as in long run. Moreover, the coefficient of ECMt-1 is significantly negative and it shows that adjustment toward equilibrium from short run to long run takes more than half a year. Consumption is the major component of GDP so policymakers use its determinants to fine-tune the economy. This study proposes that policymakers should consider external debt and exchange rate volatility in devising the monetary policy of Pakistan. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1568656 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568656 Template-Type: ReDIF-Article 1.0 Author-Name: Huthaifa Alqaralleh Author-X-Name-First: Huthaifa Author-X-Name-Last: Alqaralleh Title: Measuring business cycles: Empirical evidence based on an unobserved component approach Abstract: We adopt an unobserved components time series model to track the business cycles in the G7 countries using the Industrial production index over the period from 1:1961 to 8:2017. The advantage of adopting the industrial production series frequency is that the business cycle can be investigated in terms of a higher frequency than once per quarter. The aim here is to extract the classical cycle by dating the peaks and troughs and investigating the characteristics of the business cycle through the unobserved component model, which has the capacity to model fat tails data using a driven parameter through the Kalman filter. We find that the industrial production index has medium-term cycles which have a few statistical properties in common. We show that the length and amplitude of the business cycles vary over time and across countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1571692 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1571692 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1571692 Template-Type: ReDIF-Article 1.0 Author-Name: Dike Chukwudi Henry Author-X-Name-First: Dike Chukwudi Author-X-Name-Last: Henry Title: RETRACTED ARTICLE: Penalties and contagion in financial networks Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1575565 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1575565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1575565 Template-Type: ReDIF-Article 1.0 Author-Name: Sulaiman Mouselli Author-X-Name-First: Sulaiman Author-X-Name-Last: Mouselli Author-Name: Aziz Jaafar Author-X-Name-First: Aziz Author-X-Name-Last: Jaafar Title: Industry concentration, stock returns and asset pricing: The UK evidence Abstract: How does competition in firms’ product markets influence stock returns? We examine this question using firms domiciled in the UK. We find that firms in less concentrated industries earn higher returns, even after controlling for the well-known determinants of the cross-section of UK stock returns. Furthermore, we suggest a novel asset pricing model that explicitly incorporates industry concentration as a distinguished risk factor capturing important features of product markets. Our results link the explanatory power of R&D activity of stock returns to product market structure. Also, we suggest an explanation for value premium on the basis of product market structure that favours barriers to entry interpretation for the higher returns obtained by less concentrated industries. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1576350 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1576350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1576350 Template-Type: ReDIF-Article 1.0 Author-Name: Gaurav Kumar Author-X-Name-First: Gaurav Author-X-Name-Last: Kumar Author-Name: Arun Kumar Misra Author-X-Name-First: Arun Kumar Author-X-Name-Last: Misra Title: Liquidity-adjusted CAPM — An empirical analysis on Indian stock market Abstract: This article examines the impact of various sources of systematic liquidity risk and idiosyncratic liquidity risk on expected returns in the Indian stock market. The study tested the liquidity-adjusted capital asset pricing model (LCAPM) which is previously tested on developed markets. Systematic liquidity risk is found to be significant in impacting asset returns through various channels, viz. commonality in liquidity and illiquidity sensitivity to market returns. Covariance between individual stock returns and associated stock liquidity has a commanding influence as an idiosyncratic liquidity risk factor. The estimated asset pricing model is found to be robust across the two sub-time periods. The findings indicate that given the multidimensional nature of risk, the alternative of LCAPM along with the idiosyncratic risk is persuasive for consideration in investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1573471 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1573471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1573471 Template-Type: ReDIF-Article 1.0 Author-Name: Hamid Baghestani Author-X-Name-First: Hamid Author-X-Name-Last: Baghestani Title: Long-term interest rate predictability: Exploring the usefulness of survey forecasts of growth and inflation Abstract: This study focuses on the consensus forecasts from the Survey of Professional Forecasters (SPF) for 1993–2017. These include the SPF forecasts of US 10-year Treasury rate (TBR), Moody’s Aaa corporate bond rate (Aaa), CPI inflation, and real GDP growth. We show that both SPF and random walk forecasts of TBR and Aaa generally fail to be orthogonal to changes in SPF inflation (but not growth) forecasts. Such findings point to the potential usefulness of SPF inflation forecasts in improving the accuracy of SPF and random walk forecasts of TBR and Aaa. Further results indicate that changes in SPF inflation forecasts accurately predict directional change in both TBR and Aaa at longer forecast horizons for 2008–2017 (but not for 1993–2007). These latter results raise the question of whether long-term interest rates have become easier to predict, which deserves subsequent research. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1582317 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582317 Template-Type: ReDIF-Article 1.0 Author-Name: Anis Khayati Author-X-Name-First: Anis Author-X-Name-Last: Khayati Title: Multidimensional approach to factors affecting Japanese firms’ expansion in the MENA region Abstract: This paper investigates whether factors specific to firms, countries, mode of entry, and the timing of entry contribute to value-creation from the investment of a sample of Japanese firms in the MENA economies over the period 2006–2014. Results show that while this expansion was on average associated with positive wealth effects, such effects were relatively stronger in recent years. Also, results from firms’ choice of entry mode show that the least risky modes of entry were rewarded by the highest returns. Specifically, expansion through acquisitions and new plants was on average associated with negative wealth effects compared to expansion through non-FDI modes of entry. Besides, there is an heterogeneity in wealth effects across countries. In addition, due to changing economic and institutional environments, differences in wealth effects from investments in the same country are observed overtime. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1585223 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1585223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1585223 Template-Type: ReDIF-Article 1.0 Author-Name: Sharad Nath Bhattacharya Author-X-Name-First: Sharad Nath Author-X-Name-Last: Bhattacharya Author-Name: Mousumi Bhattacharya Author-X-Name-First: Mousumi Author-X-Name-Last: Bhattacharya Author-Name: Sankarshan Basu Author-X-Name-First: Sankarshan Author-X-Name-Last: Basu Title: Stock market and its liquidity: Evidence from ARDL bound testing approach in the Indian context Abstract: This paper attempts to capture the relationship between stock market movements and its endogenous liquidity measures using Autoregressive Distributed-lag (ARDL) Bounds Testing Approach. We consider depth, breadth, tightness, immediacy and resiliency dimensions of market liquidity using suitable liquidity measures (proxies). Findings suggest that multidimensional liquidity measures like the volume of trade, spread, market efficiency coefficient, turnover rate, trading probability, and the stock market index are in a long-term relationship. While trading activity and market efficiency coefficient affect stock market positively, the negative impact is seen in the case of spread. The liquidity measures affect the stock market in the short run as well. We find that impact of the turnover rate on the stock market is negative in short-run but positive in the long-run. The findings are important for investors and the market participants as well who pursue loss minimization strategies. The results indicate that short-term policy interventions need not get more important than the long-term objectives of market reforms. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1586297 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586297 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586297 Template-Type: ReDIF-Article 1.0 Author-Name: Sabyasachi Mohapatra Author-X-Name-First: Sabyasachi Author-X-Name-Last: Mohapatra Author-Name: Arun Kumar Misra Author-X-Name-First: Arun Kumar Author-X-Name-Last: Misra Title: Cross-sectional returns predictability for emerging market banks: A study on Indian banking system Abstract: Using Indian bank-level data, we examine the cross-sectional returns predictability for banking stocks in view of the distinct industry parameters prevalent in the financial services space. We find the existence of abnormal returns in banking stocks. We also observe that the celebrated Fama–French (1992) 3-factor model could not explain the abnormal returns, primarily due to very high leveraged banks’ balance sheets. Thus, we extend the Fama–French 3-factor model and Carhart 4-factor model alongside bank-specific conditioning information in the form of asset quality variables, operational efficiency variables and solvency variables to articulate the existence of abnormal returns. With the inclusion of conditioning information, the study predictability of abnormal returns improved significantly. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1586078 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586078 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Teresa Medeiros Garcia Author-X-Name-First: Maria Teresa Medeiros Author-X-Name-Last: Garcia Author-Name: Vítor Hugo Ferreira Carvalho Author-X-Name-First: Vítor Hugo Ferreira Author-X-Name-Last: Carvalho Title: A cross-sectional application of the Nelson-Siegel-Svensson model to several negative yield cases Abstract: The appearance of negative bond yields presents significant challenges for the fixed income markets, which mainly concern related forecasting models. The Nelson-Siegel-Svensson model (NSS) is one of the models that is most frequently used by central banks to estimate the term structure of interest rates. The objective of this study is to evaluate the application of the NSS model to fit the yield curve of a set of 20 countries, the majority from the Eurozone, which registered negative sovereign bond yields. We conclude that the model adjusted well for all countries’ yield curves, although no changes or constraints were introduced. In addition, a comparison was carried out between market instantaneous interest rate and the interest rate for the very distant future, which the model can predict, with good results for the instantaneous interest rate. An evaluation of the possible behaviour of shared debt securities (i.e. Eurobonds) was also analysed. In conclusion, the NSS model seems to remain a valuable, easy to use, and adaptable tool, to fit negative yield curves, for monetary policy institutions and market players alike. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1582319 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582319 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582319 Template-Type: ReDIF-Article 1.0 Author-Name: Slah Benyoussef Author-X-Name-First: Slah Author-X-Name-Last: Benyoussef Author-Name: Wael Hemrit Author-X-Name-First: Wael Author-X-Name-Last: Hemrit Title: Measuring the relative efficiency of insurance companies in Saudi Arabia: The case study of Takaful vs cooperative industries Abstract: The aim of this paper is to measure the efficiency of insurance companies in Saudi Arabia using data envelopment analysis (DEA), to analyse the effectiveness of underwriting processes primarily inputs and outputs are determined. Moreover, this study aims at comparing the efficiency of Takaful and cooperative in the year 2014. Taking into account two main approaches of this technique and considering a sample of 23 insurance companies, we show that the results revealed that insurance companies do not operate efficiently. Also, a classification of companies allows to discover that on average, Takaful insurance are relatively more efficient than cooperative insurance companies. The main finding of this paper is the need for better resource allocation in the cooperative insurance companies’ systems, because some Takaful insurance companies have resource surplus and in other cooperative ones it is observed a lack of resources. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1590818 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1590818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1590818 Template-Type: ReDIF-Article 1.0 Author-Name: Nixon S. Chekenya Author-X-Name-First: Nixon S. Author-X-Name-Last: Chekenya Title: Maximum likelihood estimation of stock volatility using jump-diffusion models Abstract: We investigate whether there are systematic jumps in stock prices using the Brownian motion approach and Poisson processes to test diffusion and jump risk, respectively, on Johannesburg Stock Exchange and whether these jumps cause asset return volatility. Using stock market data from June 2002 to September 2016, we hypothesize that stocks with high positive (negative) slopes are more likely to have large positive (negative) jumps in the future. As such, we expect to observe salient properties of volatility on listed stocks. We also conjecture that it is valid to use maximum likelihood procedures in estimating jumps in stocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1582318 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582318 Template-Type: ReDIF-Article 1.0 Author-Name: Anh Phong Nguyen Author-X-Name-First: Anh Phong Author-X-Name-Last: Nguyen Author-Name: Hoang Anh Nguyen Author-X-Name-First: Hoang Anh Author-X-Name-Last: Nguyen Author-Name: Thi Hong Minh Ho Author-X-Name-First: Thi Hong Minh Author-X-Name-Last: Ho Author-Name: Phu Thanh Ngo Author-X-Name-First: Phu Thanh Author-X-Name-Last: Ngo Title: Risk and returns of different foreign ownership portfolios: Evidence from Vietnam stock market Abstract: This study aims at assessing the risk–return profile of stock portfolios by different levels of the foreign ownership ratio. The paper also evaluates the performance of portfolios by their size and the book-to-market ratio (BTM). In this study, we apply GMM approach with the data computed from stock-related database in Ho Chi Minh Stock Exchange and Ha Noi Stock Exchange for the period 2010–2017. Our findings reveal a pronounced foreign ownership impact, whereby the increase in the foreign ownership ratio results in the upturn in stocks’ liquidity, return and size but also brings about the higher risk for stocks. In addition, our empirical analyses indicate that the portfolios with the foreign ownership ratio falling either to the bottom 20% or to the top 20% outperform other portfolios Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1589412 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1589412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1589412 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Gameli Gadzo Author-X-Name-First: Samuel Gameli Author-X-Name-Last: Gadzo Author-Name: Holy Kwabla Kportorgbi Author-X-Name-First: Holy Kwabla Author-X-Name-Last: Kportorgbi Author-Name: John Gartchie Gatsi Author-X-Name-First: John Gartchie Author-X-Name-Last: Gatsi Title: Credit risk and operational risk on financial performance of universal banks in Ghana: A partial least squared structural equation model (PLS SEM) approach Abstract: In recent years, financial institutions especially universal/commercial banks across Africa have been faced with forceful mergers and acquisitions. These occurrences impede the level of financial inclusion and reduces public confidence in the financial system as a whole. This study assessed the effect of credit and operational risk on the financial performance of universal banks in the context of the structural equation model (SEM). Data were collected from all the 24 universal banks in Ghana without missing variables and using the PLS-SEM, the results showed that credit risk influences financial performance negatively contrary to the empirical study but in line with the information asymmetry tenant of the lemon theory. It was also found that operational risk influences the financial performance of the universal banks in Ghana negatively. Furthermore, the study indicated that bank specific variables measured by (asset quality, bank leverage, cost to income ratio and liquidity) significantly influence credit risk, operational risk as well as the financial performance of the universal banks positively. We recommend that banks be encouraged to cut-down their lending rates in other to decrease credit risk and subsequently boost profitability. Regarding operational risk, banks should reduce leverage and have their portfolio more concentrated on liquid investment income so as to boost profitability. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1589406 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1589406 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1589406 Template-Type: ReDIF-Article 1.0 Author-Name: Kashif Zaheer Malik Author-X-Name-First: Kashif Author-X-Name-Last: Zaheer Malik Author-Name: Syed Zahid Ali Author-X-Name-First: Syed Author-X-Name-Last: Zahid Ali Author-Name: Ali Imtiaz Author-X-Name-First: Ali Author-X-Name-Last: Imtiaz Author-Name: Ammar Aftab Author-X-Name-First: Ammar Author-X-Name-Last: Aftab Title: Preference shocks in an RBC model with intangible capital Abstract: In this paper, we develop and simulate an RBC model that includes intangible capital as a third factor of production. We study the effects of intra-temporal preference shocks on economic aggregates, employing the undetermined coefficient method of to solve the model. Impulse response functions to preference shocks reveal that demand-side shocks are important in explaining the variations in macroeconomic aggregates. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1586621 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586621 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586621 Template-Type: ReDIF-Article 1.0 Author-Name: Novi Swandari Budiarso Author-X-Name-First: Novi Swandari Author-X-Name-Last: Budiarso Author-Name: Bambang Subroto Author-X-Name-First: Bambang Author-X-Name-Last: Subroto Author-Name: Sutrisno T Author-X-Name-First: Sutrisno Author-X-Name-Last: T Author-Name: Winston Pontoh Author-X-Name-First: Winston Author-X-Name-Last: Pontoh Title: Dividend catering, life-cycle, and policy: Evidence from Indonesia Abstract: This study examines the behavior of firms in Indonesia in relation to the life-cycle and catering theories under the assumption that investors expect optimum returns on stock investments through dividends, capital gains, or both. To this end, we examine 212 firms listed on the Indonesia Stock Exchange during 2010 to 2016 and investigate dividend policy, our dependent variable, in terms of: (1) dividend payers and non-payers and (2) higher, lower, and non-dividend payers. The independent variables in the basic model of this study are retained earnings-over-total-equity, return-on-assets, market-to-book value, firm size, and dividend premium, and the control variables are systematic and idiosyncratic risks. For hypothesis testing, this study conducts two analyses, namely logistic regression and its extension to multinomial regression. The findings confirm that pseudo R-squared and confidence improve under the dividend policy when controlling for risk and dividend payers. We find that mature Indonesian firms pay higher dividends as they are larger and more profitable, with more free cash and insignificant growth opportunities. Conversely, growing Indonesian firms with significant future opportunities pay lower dividends. The findings of this study imply that the dividend policy of mature Indonesian firms supports the life-cycle theory and is inconsistent with the catering theory. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1594505 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1594505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1594505 Template-Type: ReDIF-Article 1.0 Author-Name: S. J. Ferreira Author-X-Name-First: S. J. Author-X-Name-Last: Ferreira Author-Name: S. Mohlamme Author-X-Name-First: S. Author-X-Name-Last: Mohlamme Author-Name: G Van Vuuren Author-X-Name-First: G Author-X-Name-Last: Van Vuuren Author-Name: Z. Dickason (Koekemoer) Author-X-Name-First: Z. Author-X-Name-Last: Dickason (Koekemoer) Title: The influence of corporate financial events on selected JSE-listed companies Abstract: In South Africa, corporate finance events receive extensive coverage in the media. However, there are only a few studies examining the behaviour of share prices in response to such events. Using the event study methodology commonly used in corporate finance research, the reaction of a sample of large- and small-cap stocks to selected corporate finance events (such as dividend and earnings announcements, stock splits and accounting policy changes) was analysed. Results show that there is a rapid stock price adjustment immediately post-announcement, but the time taken varies depending on the nature of the event and company size. This may have profound implications on discretionary portfolio management: fund managers should find it beneficial from a diversification standpoint. Exiting from heavy concentrations in large-cap stocks and diversifying into smaller cap stocks could offer the stability of portfolio returns against adverse events like Steinhoff’s accounting fraud. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1597665 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597665 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Shameem Jawed Author-X-Name-First: Mohammad Shameem Author-X-Name-Last: Jawed Author-Name: Amol S. Dhaigude Author-X-Name-First: Amol S. Author-X-Name-Last: Dhaigude Author-Name: Archit Vinod Tapar Author-X-Name-First: Archit Vinod Author-X-Name-Last: Tapar Title: The sectoral effect of demonetization on the economy: Evidence from early reaction of the Indian stock markets Abstract: We investigate the impact of the Demonetization of 85% currency in circulation in India on the eve of 8 November 2016 on all the listed stocks spanning over 20 broad industry clusters (sectors) and their affiliation type from the Indian economy over the period of November to Mid-January 2016. Using the event study methodology, we assess the effects of Demonetization, relative to what had been anticipated, as measured by abnormal returns (ARs). The results indicate that Group Affiliated firms witnessed the highest negative abnormal returns both on the event days and during the event window period, while PSUs witnessed the least wrath. On the sectoral front, Demonetization shows a mixed effect in the early days which changes to positive for most of the sectors barring a few. Banking Sector was the worst hit in the early days with a CAAR of −1.74%, while many sectors like Pharma, Paper and Wholesale Trading witnessed a windfall gain in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1595992 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1595992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1595992 Template-Type: ReDIF-Article 1.0 Author-Name: Nneka Umeorah Author-X-Name-First: Nneka Author-X-Name-Last: Umeorah Author-Name: Phillip Mashele Author-X-Name-First: Phillip Author-X-Name-Last: Mashele Title: A Crank-Nicolson finite difference approach on the numerical estimation of rebate barrier option prices Abstract: In modelling financial derivatives, the pricing of barrier options are complicated as a result of their path-dependency and discontinuous payoffs. In the case of rebate knock-out barrier options, discount factors known as rebates are introduced, which are payable to the option holder when the barrier level is breached. The analytical closed-form solution for the vanilla options are known but the barrier options, owing to their discontinuous nature, can be obtained analytically using the extended Black-Scholes formula. This research work captures the solution of the corresponding option pricing partial differential equation on a discrete space-time grid. We employ the Crank-Nicolson finite difference scheme to estimate the prices of rebate barrier options, as well as to discuss the effect of rebate on barrier option values. This work will further investigate the spurious oscillations which arise from the sensitivity analysis of the Greeks of the barrier options using the Crank-Nicolson scheme. The theoretical convergence of the Crank-Nicolson discretisation scheme will be analysed. Furthermore, our research will compare the results from the extended Black-Scholes model based on continuous time monitoring, together with the finite difference results from the Crank-Nicolson method. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1598835 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598835 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos Valencia Author-X-Name-First: Carlos Author-X-Name-Last: Valencia Author-Name: Sergio Cabrales Author-X-Name-First: Sergio Author-X-Name-Last: Cabrales Author-Name: Laura Garcia Author-X-Name-First: Laura Author-X-Name-Last: Garcia Author-Name: Juan Ramirez Author-X-Name-First: Juan Author-X-Name-Last: Ramirez Author-Name: Diego Calderona Author-X-Name-First: Diego Author-X-Name-Last: Calderona Title: Generalized additive model with embedded variable selection for bankruptcy prediction: Prediction versus interpretation Abstract: This paper explores the properties of using a generalized additive model with embedded variable selection for the prediction of bankruptcy. The main purpose is to explore an innovative way to close the gap between interpretation and prediction that has prevented widespread use of methods based on machine learning. An additive model enables the incorporation of nonlinear effects for each predictor, thereby enhancing the predictive power over classical linear models, while simultaneously keeping the marginal effects for interpretation separated. In addition, we propose a penalization likelihood approach that automatically selects important financial ratios and classifies them under linear and nonlinear effects, thereby improving the interpretation of the estimations. We implemented the proposed model on data from the retail industry in Colombia. The results demonstrate a good generalization performance of the algorithm and a prediction accuracy not far below typical black box algorithms such as random forest and support vector machines. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1597956 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597956 Template-Type: ReDIF-Article 1.0 Author-Name: F. K. Y. Amevenku Author-X-Name-First: F. K. Y. Author-X-Name-Last: Amevenku Author-Name: R. K. Asravor Author-X-Name-First: R. K. Author-X-Name-Last: Asravor Author-Name: J. K. M. Kuwornu Author-X-Name-First: J. K. M. Author-X-Name-Last: Kuwornu Title: Determinants of livelihood strategies of fishing households in the volta Basin, Ghana Abstract: The main objective of this study is to identify livelihood strategies of fishing households in response to prevalent vulnerabilities they face within the Volta Basin. Questionnaires were administered to fishery households in the Basin using the multistage sampling technique. A non-hierarchical k-means cluster analysis partitioned the households into four livelihood strategies on which the multinomial logit regression was performed. These four identified strategies are fishery only, fishery and farming, fishery and non-farm, and fishery, non-farming and farming. The results from the multinomial logit regression revealed that marital status of head of household, number of months of food shortage experienced by a household per year, access to credit, access to extension services, distance to regular markets and district capital as well as experience in fishery were the major determinants of livelihood strategies. Implications for policy include the need for public extension services and training to invigorate fishery households’ income. As majority of the fishery households combined fishing and non-fishing strategies, livelihood intervention programmes should prioritize improvement of the non-fishing activities and lead to opening other opportunities for rural development. This will take pressure off the fish stock by facilitating the regeneration of fish stock. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1595291 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1595291 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1595291 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Arslan Author-X-Name-First: Muhammad Author-X-Name-Last: Arslan Author-Name: Sazali Abidin Author-X-Name-First: Sazali Author-X-Name-Last: Abidin Title: Nexus between corporate governance practices and cost of capital in PSX listed firms Abstract: The aim of this study is to examine the relationship between corporate governance (CG), in terms of its internal significance, and cost of capital (COC), based on a sample of listed firms of Pakistan Stock Exchange (PSX) over the period of 2009–2015. We used Pakistan as a case study mainly because we expect that key features of Pakistani setting in terms of CG and financial markets will have impact on the relationship between CG and COC. Drawing on a sample of 120 PSX listed firms, we find that CG compliance and disclosure (CG index [CGI]) has improved over time among PSX listed firms. The findings also reveal a positive relationship of institutional, government and director ownership with both CGI and COC, while this relationship becomes negative with block ownership. The findings of 2SLS reveal a significant negative association between CG compliance and COC; hence, firms with higher CG score enjoy a lower COC. Interestingly, gender diversity and board size have a negative association with CG compliance and COC, while audit firm size reveals a positive association with CG compliance and disclosure while a negative association with COC. The study contributes to existing literature dealing with CG and determinant of firm value (COC) in emerging markets, particularly in Pakistan, which has not been extensively explored in existing research. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1600222 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600222 Template-Type: ReDIF-Article 1.0 Author-Name: Abhinav Kumar Rajverma Author-X-Name-First: Abhinav Kumar Author-X-Name-Last: Rajverma Author-Name: Rakesh Arrawatia Author-X-Name-First: Rakesh Author-X-Name-Last: Arrawatia Author-Name: Arun Kumar Misra Author-X-Name-First: Arun Kumar Author-X-Name-Last: Misra Author-Name: Abhijeet Chandra Author-X-Name-First: Abhijeet Author-X-Name-Last: Chandra Title: Ownership structure influencing the joint determination of dividend, leverage, and cost of capital Abstract: The article analyses inter-dependencies between dividend, capital structure, and cost of capital, factoring the ownership structure of listed firms in India, using 3SLS system approach. The study finds that family firms are dominant with concentrated ownership. Dividend, leverage, and average cost of capital are inter-linked. However, family firms pay lower dividends, consistent with family owners extracting rent from external minority shareholders. Additionally, these firms have high leverage and lower cost of capital, suggesting that family control (reputation) provides intangible value to the firms. Ownership structure plays a critical role in understanding the policy decisions in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1600462 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600462 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600462 Template-Type: ReDIF-Article 1.0 Author-Name: Muneer Shaik Author-X-Name-First: Muneer Author-X-Name-Last: Shaik Author-Name: S. Maheswaran Author-X-Name-First: S. Author-X-Name-Last: Maheswaran Title: Volatility behavior of asset returns based on robust volatility ratio: Empirical analysis on global stock indices Abstract: In this paper, we come up with an alternate theoretical proof for the independence and unbiased property of extreme value robust volatility estimator with respect to the standard robust volatility estimator. We show that the robust volatility ratio is unbiased both in the population and in the finite samples. We empirically test the robust volatility ratio on nine global stock indices from America, Asia Pacific and EMEA markets for the period from January 1996 to June 2017 based on daily open, high, low and close prices to understand the volatility behavior of stock returns over a period of time. Our results show that robust volatility ratio for different k-month periods is significantly less than 1 for all the global stock indices, thus finding the clear evidence of random walk behavior. This is possibly the first study based on robust volatility ratio to understand the volatility behavior of global stock indices. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1597430 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597430 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597430 Template-Type: ReDIF-Article 1.0 Author-Name: Santanu Pal Author-X-Name-First: Santanu Author-X-Name-Last: Pal Author-Name: Ajay K Garg Author-X-Name-First: Ajay K Author-X-Name-Last: Garg Title: Macroeconomic surprises and stock market responses—A study on Indian stock market Abstract: This study analyzes the sensitivity of a series of Indian stock indices for the astonishing component of monetary and macroeconomic policy with the data set from 1 April 2004 to 31 July 2016. The immediate impact is assessed with event analysis, and the dynamic effect is analyzed with the Vector Autoregression (VAR) model. The result of the event analysis indicates that the monetary policy surprise significantly affects the stock market and is more prominent than that of other macroeconomic surprises. Unlike the event study, the VAR analysis found that the other macroeconomic surprise also affects stock return. The study also highlights the industry effect and size effect, which is coherent with the predictions of the CAPM (Capital Asset Pricing Model) model. While many studies have been conducted on the monetary policy surprise in the developed economy, there are relatively few studies on macroeconomic surprises. Some studies conducted in India have analyzed the impact of monetary policy surprises on stock price; however, to the best of our knowledge, none of the studies has examined the simultaneous effect of both macroeconomic and monetary policy surprise. The study is relevant because the responses differ across sectors and vary with firm sizes. Thus, the study can effectively be used as a hedging instrument. Furthermore, the stock market acts as a vital channel for policy transmission and a critical decision driver for corporate finance. The understanding of firm and stock market dynamics against macroeconomic surprises can help policymakers in enhancing policy effectiveness and corporate finance professionals in improving decision-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1598248 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598248 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598248 Template-Type: ReDIF-Article 1.0 Author-Name: Le Doan Minh Duc Author-X-Name-First: Le Doan Author-X-Name-Last: Minh Duc Author-Name: Nguyen Thi Hoang Yen Author-X-Name-First: Nguyen Author-X-Name-Last: Thi Hoang Yen Author-Name: Vo Hoang Ngoc Thuy Author-X-Name-First: Vo Author-X-Name-Last: Hoang Ngoc Thuy Author-Name: Nguyen Hoang Tien Author-X-Name-First: Nguyen Author-X-Name-Last: Hoang Tien Author-Name: Dinh Ba Hung Anh Author-X-Name-First: Dinh Ba Author-X-Name-Last: Hung Anh Title: Enhancing auditors’ independence in auditing enterprises in Vietnam Abstract: The working environment of professional auditors can make a threat to independence. There are many studies in the world on this issue but the results are not the same due to differences in each country. By using the qualitative methodology in combination with quantitative data analysis through the period 2016–2017, the study identifies factors affecting auditor independence. The results show that the observed factors that are related to the independent auditor’s working environment and that affect the auditor independence are: corporate governance, audit tenure, auditing fee, non-audit service, the auditor–client relationship, and size of audit companies. In particular, the corporate governance of the auditing company has the greatest influence on auditing independence. The paper has contributed to the theoretical body of literature by introducing a theoretical framework for auditors’ independence in Vietnam, providing the basis for further research. As a result, the results of the study suggest that auditing firms need to focus on corporate governance that will promote other factors. Moreover, the research contributes to enhancing the auditor independence to meet the expectations of society. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1602240 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1602240 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1602240 Template-Type: ReDIF-Article 1.0 Author-Name: Md. Hashibul Hassan Author-X-Name-First: Md. Hashibul Author-X-Name-Last: Hassan Author-Name: Md. Shahidullah Kayser Author-X-Name-First: Md. Shahidullah Author-X-Name-Last: Kayser Title: Ramadan effect on stock market return and trade volume: Evidence from Dhaka Stock Exchange (DSE) Abstract: A predictable pattern of stock market return is the violation of the efficient market hypothesis (EMH). It is well studied and evident in financial literature that stock markets around the world have predictable patterns, e.g. calendar effect, behavioural effect, and Religious festival effect. By analysing market return and trading volume data of Dhaka Stock Exchange (DSE) over the period of 1 January 2002 to 30 August 2018, this study attempts to investigate the association of Ramadan, the holy month for the Muslims, with the market return, volatility and trade volume in the of DSE. Applying GJR-GARCH (p,q) model on the market return of DSE, this study concludes that Ramadan month has no significant relationship with stock market return and volatility. However, Ramadan has a significant negative impact on the daily trade volume of DSE. This is might be the outcome of decreased trading and banking hour and religious perception of investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1605105 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1605105 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1605105 Template-Type: ReDIF-Article 1.0 Author-Name: Quratulain Zafar Author-X-Name-First: Quratulain Author-X-Name-Last: Zafar Author-Name: Winai Wongsurawat Author-X-Name-First: Winai Author-X-Name-Last: Wongsurawat Author-Name: David Camino Author-X-Name-First: David Author-X-Name-Last: Camino Title: The determinants of leverage decisions: Evidence from Asian emerging markets Abstract: This study provides a stage-level analysis of firm-scale pooled data of 16 Asian countries to classified income economy-based data for various firm- and country-specific predictors of leverage. Our analysis captures the selection impact of both micro- and macro-level determinants on capital structure with and without income economy-based models. The regression model evaluated the significance of predictor variables based on random effect model of panel data setting. The study further explores the issue of interest by looking at key individual regression models by income economy to avoid any potential loss of information. We argue that this approach provides a comprehensive and insightful set of determinants because of the newer dimension of income economy classification based on per-capita Gross National Product (GNP) defined by the World Bank. The estimating equations for financing determinants identify the additional variables of non-debt tax shield, liquidity, tax and GDP growth rate in case of Asian countries. Our study establishes that the core variables of tangibility, growth, size, and profitability retain their significance for leverage choice in both options during 2008–2014 in Asian economies. Furthermore, the findings show that the financing choices of firms in Asian regional markets are complemented by financial system development stages using the equity market, the bond market and the banking industry as proies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1598836 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598836 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598836 Template-Type: ReDIF-Article 1.0 Author-Name: Lorraine Rupande Author-X-Name-First: Lorraine Author-X-Name-Last: Rupande Author-Name: Hilary Tinotenda Muguto Author-X-Name-First: Hilary Tinotenda Author-X-Name-Last: Muguto Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Title: Investor sentiment and stock return volatility: Evidence from the Johannesburg Stock Exchange Abstract: Volatility is an important component of asset pricing; an increase in volatility on markets can trigger changes in the risk distribution of financial assets. In conventional financial theory, investors are considered to be rational and any changes in relevant risk are assumed to be a result of the movement in fundamental factors. However, herein this study, it is hypothesized that there are movements in risk that are driven by volatility linked to sentiment-driven noise trader activity whose patterns are irreconcilable with changes in fundamental factors. This assertion is tested using a daily sentiment composite index constructed from a set of proxies and Generalised Autoregressive Conditional Heteroscedasticity models on the South African market over a period spanning July 2002 to June 2018. The results show that there is a significant connection between investor sentiment and stock return volatility which shows that behavioural finance can significantly explain the behaviour of stock returns on the Johannesburg Stock Exchange. It is, thus, recommended that due to the inadequacies of popular asset pricing models such as the Capital Asset Pricing Model, consideration should be made towards augmenting these asset pricing models with a sentiment risk factor. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1600233 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600233 Template-Type: ReDIF-Article 1.0 Author-Name: N. Mhlaba Author-X-Name-First: N. Author-X-Name-Last: Mhlaba Author-Name: A. Phiri Author-X-Name-First: A. Author-X-Name-Last: Phiri Title: Is public debt harmful towards economic growth? New evidence from South Africa Abstract: The issue of whether public debt is useful or harmful towards economic growth is one of the most prevailing debates in the literature with no consensus existing on the subject matter. The study employs the ARDL model to examine the long-run and short-run effects of public debt on economic growth for South African data spanning a period between 2002:q1 and 2016:q4. Our sensitivity analysis consists of re-estimating our empirical regressions using two sub-samples dataset corresponding to the post-crisis period (i.e. 2007:q3–2016:q4). All estimated regressions unanimously find negative debt–growth relationship, with the negative relationship strengthening in the post-crisis period. Overall, our empirical results have some useful ramifications towards fiscal policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1603653 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1603653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1603653 Template-Type: ReDIF-Article 1.0 Author-Name: Sheunesu Zhou Author-X-Name-First: Sheunesu Author-X-Name-Last: Zhou Author-Name: D. D. Tewari Author-X-Name-First: D. D. Author-X-Name-Last: Tewari Title: Shadow financial services and firm performance in South Africa Abstract: The last two decades have seen a sharp increase in shadow banking activities in both advanced and emerging economies. Shadow banks have therefore become an important part of financial markets due to their credit creation and capital allocation roles. This study investigates the impact of shadow banking on firm profitability in South Africa and evaluates the linkages between shadow banking and real economic activity. We employ single-equation cointegration methods and three measures of firm profitability in our analyses, and several macroeconomic and bank-specific variables are used as control variables. Our results are mixed showing that shadow banking has a negative impact on traditional banks’ profitability whilst on the other hand it positively impacts non-financial firms and the overall measures of firm profitability. Our results indicate that both non-financial firms and non-bank financial institutions could be benefiting from the expansion in shadow banking activities. Targeted, functional regulation is suggested in order to promote economic activities in the shadow banking sector whilst at the same time limiting possible risks that may arise. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1603654 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1603654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1603654 Template-Type: ReDIF-Article 1.0 Author-Name: Prince Kwasi Sarpong Author-X-Name-First: Prince Kwasi Author-X-Name-Last: Sarpong Author-Name: Jugjith Deodutt Author-X-Name-First: Jugjith Author-X-Name-Last: Deodutt Title: Legal theory of finance: Evidence from global financial networks Abstract: Katharina Pistor proposed the Legal Theory of Finance (LTF), based on the premise that finance is legally constructed. In this paper, we apply network science to provide empirical evidence from global financial networks (GFN) to support the argument of the LFT. Using data from the World Bank and IMF, we confirm that the GFN is indeed hierarchical. We also show that the depth of interconnectedness in the GFN is increasing. The United States is the most important node in the GFN but temporarily lost its position to the United Kingdom in 2008. This paper shows that the most important node in the GFN can temporarily shift during major global financial events. The United Kingdom has also lost its position in the GFN to Switzerland on several measures of centrality. We further confirm that there is no evidence of a flattening of the GFN. Although some emerging economies have improved significantly in terms of GDP and international reserves, these improvements have not reflected in their positions in the GFN. We propose that the approach to regulating the global financial system should focus on more stringent rules for the most central countries in the GFN. This could be more effective in ensuring stability in the global financial system. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1593071 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1593071 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1593071 Template-Type: ReDIF-Article 1.0 Author-Name: Jayanta Kumar Seal Author-X-Name-First: Jayanta Kumar Author-X-Name-Last: Seal Author-Name: Arunima Paul Author-X-Name-First: Arunima Author-X-Name-Last: Paul Title: Does direct-sold funds provide a sizeable edge to investors? Evidences from selected mutual funds in India Abstract: In this study, an attempt has been made to find out why investors still prefer broker-sold fund over direct-sold fund despite the superior performance of the latter. We find the sensitivity of funds flow in selected direct-sold funds and broker-sold funds in India. We do not find any evidence that direct-sold funds underperform the broker-sold funds. Despite the superior performance of direct-sold funds, Indian investors go for broker-sold funds because of ignorance and also for the additional services provided by the brokers. We find that fund houses in India offer both direct and broker-sold funds to target different segments of investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1612573 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1612573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1612573 Template-Type: ReDIF-Article 1.0 Author-Name: Fredrick Ikpesu Author-X-Name-First: Fredrick Author-X-Name-Last: Ikpesu Author-Name: Olusegun Vincent Author-X-Name-First: Olusegun Author-X-Name-Last: Vincent Author-Name: Olamitunji Dakare Author-X-Name-First: Olamitunji Author-X-Name-Last: Dakare Title: Growth effect of trade and investment in Sub-Saharan Africa countries: Empirical insight from panel corrected standard error (PCSE) technique Abstract: The pre-eminence of trade and investment in the economic prosperity of developed and developing countries cannot be overemphasized. Many studies have shown a strong positive impact of trade on economic growth across developed and the emerging market. However, very little is known about the simultaneous effect of trade and investment on growth in SSA when institutional control variables are introduced in the model. Therefore, this study examines the role of trade and investment in the growth process in the SSA using trade openness (% GDP), export (% of GDP) and import (% of GDP) as a measure of trade. We embrace an ideographic perspective that allows methodology and design that are sensitive to the nature of the study by deploying panel corrected standard error (PCSE). In this paper, we draw on 35 countries within the SSA. The research outcomes reveal that trade domestic investment and import affect growth in the region positively while export affects growth negatively. A possible reason for this is the nature of export of sub-Saharan African economies which are mostly affected by price volatility in the global market among other factors such as low prices, vagaries of weather, etc.. We discuss the policy implication of the study. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1607127 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607127 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607127 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Stensås Author-X-Name-First: Anders Author-X-Name-Last: Stensås Author-Name: Magnus Frostholm Nygaard Author-X-Name-First: Magnus Frostholm Author-X-Name-Last: Nygaard Author-Name: Khine Kyaw Author-X-Name-First: Khine Author-X-Name-Last: Kyaw Author-Name: Sirimon Treepongkaruna Author-X-Name-First: Sirimon Author-X-Name-Last: Treepongkaruna Title: Can Bitcoin be a diversifier, hedge or safe haven tool? Abstract: This paper investigates whether Bitcoin acts as a diversifier, hedge or safe haven tool for investors in major developed and developing markets, as well as for commodities. This paper employs the GARCH Dynamic Conditional Correlation (DCC) model. The sample covers seven developed and six developing countries, five regional indices and 10 commodity series. The results show that Bitcoin acts as a hedge for investors in most of the developing countries such as Brazil, Russia, India and South Korea, but only as a diversifier for investors in developed countries and for commodities. Moreover, Bitcoin acts as a diversifier for all the 10 commodities studied here. During the US election in 2016, Brexit referendum in 2016, and the burst of Chinese market bubble in 2015, Bitcoin acted as a safe haven asset for both the US and non-US investors. Understanding the role of Bitcoin is important for financial market participants who seek protection against market turmoil and downward movements. Furthermore, our findings would be of interests to regulators and governments to engage in more discussion of the role of Bitcoin in financial markets. This paper contributes to the ongoing debate on the usefulness of Bitcoin for investments. Furthermore, it distinguishes the benefits of Bitcoin as a diversifier, hedge and safe haven to investors in the developed versus developing markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1593072 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1593072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1593072 Template-Type: ReDIF-Article 1.0 Author-Name: Yaya Keho Author-X-Name-First: Yaya Author-X-Name-Last: Keho Title: Myopia, liquidity constraints and private consumption: the case of Cote d’Ivoire Abstract: In this paper, we estimate the behavior of private consumption in Cote d’Ivoire under the permanent income hypothesis using annual data for the period 1970–2016. The first objective is to test the validity of the permanent income hypothesis in Cote d’Ivoire. Our second concern is to investigate the reason explaining the rejection of this hypothesis. The data consists of real household consumption, real gross domestic product, and the real interest rate on deposits. The empirical analysis uses the nonlinear autoregressive distributed lag (NARDL) model proposed by Shin et al. This approach allows us to simultaneously test the short and long run nonlinearities through positive and negative partial sum decompositions of income. The results suggest that the absolute income hypothesis is valid rather than permanent income hypothesis. Also, there is evidence pointing to the rejection of the permanent income hypothesis-driven by the presence of liquidity constraints rather than myopia. As policy implications, the lending conditions of banks should be relaxed to increase the accessibility of households to credits. In addition, private consumption can be increased through income or consumption tax reductions. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1608052 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1608052 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1608052 Template-Type: ReDIF-Article 1.0 Author-Name: Iddrisu Awudu Author-X-Name-First: Iddrisu Author-X-Name-Last: Awudu Author-Name: Saravanan Kuppusamy Author-X-Name-First: Saravanan Author-X-Name-Last: Kuppusamy Author-Name: Mario Norbis Author-X-Name-First: Mario Author-X-Name-Last: Norbis Author-Name: Matthew O’Connor Author-X-Name-First: Matthew Author-X-Name-Last: O’Connor Title: Recruitment strategies in a university institution: a theoretical cost minimization approach Abstract: We study faculty recruitment issues in a university. We develop a cost minimization model that considers the decision-making process for the university administration by proposing a new approach of selecting tenure and non-tenure track faculty who are expected to achieve the institutional research and teaching goals. We explain the existence of tenure from an economic perspective. We propose a faculty tenure-granting process for a variety of institutions ranging from pure-teaching, teaching emphasis, research emphasis and pure-research institutions. We find that a teaching-emphasis or a pure-teaching institution (a research-emphasis or a pure-research institution) can increase the emphasis on research (teaching) without increasing costs. This paper makes important contributions to the university recruitment strategy by providing a set of guidelines on how to manage teaching and research incentives. The paper also contributes to the ongoing debate about tenure by providing a newer perspective and to the general theory of strategic university management. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1607050 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607050 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607050 Template-Type: ReDIF-Article 1.0 Author-Name: Edina Berlinger Author-X-Name-First: Edina Author-X-Name-Last: Berlinger Title: Why APRC is misleading and how it should be reformed Abstract: The annual percentage rate of charge (APRC) designed to reflect all costs of borrowing is a widely used measure to compare different credit products. It disregards completely, however, risks of possible future changes in interest and exchange rates. As an unintended consequence of the general advice to minimize APRC, many borrowers take adjustable-rate mortgages with extremely short interest rate period or foreign currency denominated loans and run into an excessive risk without really being aware of it. To avoid this, we propose a new, risk-adjusted APRC incorporating also the potential costs of risk hedging. This new measure eliminates most of the virtual advantages of riskier structures and reduces the danger of excessive risk-taking. As an illustration, we analyze the latest Hungarian home loan trends with the help of scenario analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1609766 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1609766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1609766 Template-Type: ReDIF-Article 1.0 Author-Name: Adeleke Omolade Author-X-Name-First: Adeleke Author-X-Name-Last: Omolade Author-Name: Harold Ngalawa Author-X-Name-First: Harold Author-X-Name-Last: Ngalawa Author-Name: Adebayo Kutu Author-X-Name-First: Adebayo Author-X-Name-Last: Kutu Title: Crude oil price shocks and macroeconomic performance in Africa’s oil-producing countries Abstract: The study investigates the influence of crude oil price shocks on the macroeconomic performance of Africa’s oil-producing countries. Eight major net oil producers, namely, Algeria, Nigeria, Egypt, Angola, Gabon, Equatorial Guinea and Congo Republic are included in the study. Sudan is excluded due to data constraints. The study covers the period between 1980 and 2016, which represents the periods with the most boom and bust movements in crude oil prices. The Hamilton Index (1996) which uses the net oil price increase is applied. The study compares the price of oil in each quarter with the maximum value observed during the preceding four quarters. This is used to derive sharp increases and declines in oil prices to capture oil price shocks. A Panel Structural Vector Auto-Regression model is adopted for analysis. The results show that the reaction of output to sharp increases and declines in oil prices differ. It is also observed that structural inflation accompanies sharp declines in oil prices more than monetary inflation, since both outputs and investment decline significantly. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1607431 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607431 Template-Type: ReDIF-Article 1.0 Author-Name: Faisal Abbas Author-X-Name-First: Faisal Author-X-Name-Last: Abbas Author-Name: Shahid Iqbal Author-X-Name-First: Shahid Author-X-Name-Last: Iqbal Author-Name: Bilal Aziz Author-X-Name-First: Bilal Author-X-Name-Last: Aziz Title: The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period:‎ A comparative study of US and Asia Abstract: The purpose of this study is to explore the influence of bank capital, bank liquidity level and credit risk on the profitability of commercial banks in the postcrisis period between 2011 and 2017 in Asian developed economies in comparison with the USA banking industry. The findings show that bank capital and credit risk influence profitability in Asian developed economies similar to in the USA commercial banks, whereas the impact of liquidity on the profitability of the USA large commercial banks is negative and positive on Asian developed economies commercial banks in the postcrisis era. The findings indicate that a 6% increase in capital leads to a 1% increase in profit, a 3.5% increase in liquidity leads to a 1% increase in profit. Specifically, larger banks generate 1% profit against a 1% increase in liquid assets. Medium size banks make 1% profit against a 3% increase in liquid assets, and small size banks produce 1% profit against a 7% increase in liquid assets. The findings show that liquidity influences profitability more intensively than capital, whereas the sign of coefficients is similar for large, small and medium-size banks. The results of this paper indicate that liquidity and bank capital have a positive impact on profitability, while credit risk has a negative influence on the profitability of banks. The findings of the simultaneous equations model indicate that bank capital has a positive impact on profitability in large and medium banks, whereas the profitability of banks influences the bank capital positively in case of large banks and negatively in case of medium banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1605683 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1605683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1605683 Template-Type: ReDIF-Article 1.0 Author-Name: Eissa A. Al‐Homaidi Author-X-Name-First: Eissa A. Author-X-Name-Last: Al‐Homaidi Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Najib H. Farhan Author-X-Name-First: Najib H. Author-X-Name-Last: Farhan Author-Name: Faozi A. Almaqtari Author-X-Name-First: Faozi A. Author-X-Name-Last: Almaqtari Title: The determinants of liquidity of Indian listed commercial banks: A panel data approach Abstract: The objective of this study is to examine the liquidity (LQD) determinants of Indian listed commercial banks. The study has applied both GMM and pooled, fixed and random effect models to a panel of 37 commercial banks listed on the Bombay Stock Exchange (BSE) in India for the period from 2008 to 2017. The banks’ LQD was taken as a dependent variable which functioned against both bank-specific and macroeconomic determinants. The results indicated that among the bank-specific factors, bank size, capital adequacy ratio, deposits ratio, operation efficiency ratio, and return on assets ratio are found to have a significant positive impact on LQD, while assets quality ratio, assets management ratio, return on equity ratio, and net interest margin ratio are found to have a significant negative impact on LQD. With respect to macroeconomic factors, the results indicated that interest rate and exchange rate are found to have a significant effect on LQD. The Reserve Bank of India (RBI) should give benchmarks for the above mentioned ratios to achieve smooth LQD of commercial banks in India. The study recommended that bankers should consider assets quality in such a way that improves banks’ performance. Finally, the current study provides useful insights for bankers, analysts, regulators, investors, and other interested parties on the LQD of listed commercial banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1616521 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1616521 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1616521 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad W. Alomari Author-X-Name-First: Mohammad W. Author-X-Name-Last: Alomari Author-Name: Zyad Marashdeh Author-X-Name-First: Zyad Author-X-Name-Last: Marashdeh Author-Name: Ala G. Bashayreh Author-X-Name-First: Ala G. Author-X-Name-Last: Bashayreh Title: Contribution of financial market development in competitiveness growth Abstract: Purpose: The study aims at re-examining the relationship between financial market development and economic development in the context of competitiveness of developed and higher income countries. Methodology/approach: The study employs generalized least square (GLS) regression model to analyze the panel data of 21 higher income countries over the period (2009–2017). Further, the study checked the robustness of the results by introduces a lagged dependent variable in the regression models by employing the generalized methods of moments (GMM) for Dynamic Panel analysis. Findings: Results reveal that four independent variables: Financial market development (FMDG), trade openness (OPNG), Labor market efficiency (LMEG), and Technological readiness (TRG), were positive and significant, which indicates the existence of relationship from those variables to competitiveness in the context of growth. while one of the independent variables is Market size (MSG) was positive but insignificant. Moreover, the results from the GMM estimator remain robust in terms of directions and significance levels and confirm the robustness of the findings. Originality: This paper represents a significant contribution especially for the higher income countries that can help them in designing the policies and strategies in order to improve their performance and competitiveness by financial market development besides other competitiveness sources. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622483 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622483 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Nakosteen Author-X-Name-First: Robert Author-X-Name-Last: Nakosteen Author-Name: Michael Zimmer Author-X-Name-First: Michael Author-X-Name-Last: Zimmer Title: Latent earning capacity and the race marriage gap Abstract: One of the most persistent socioeconomic phenomena in the process of family formation is the relatively low rate of marriage by black men and women. The enduring conventional wisdom has been that low black marriage rates reflect a relative shortage of marriageable black men. Yet numerous studies that have attempted to account for the shortage have reported that the race marriage gap remains, albeit sometimes in reduced magnitude, even after controlling for economic attributes of potential spouses and potential supplies of spouses in regional marriage markets. This paper examines the possibility that the race gap is explained in part by disparities in unobserved earning capacities between black and white men. In doing so, this study redefines the marriage market for each man in terms of his position in the earnings distribution rather than by geographic region. Our results indicate that when young black men are placed in competitive positions in the distribution of white residual earnings, the race gap disappears and even shows strong signs of greater marriage propensities in the black population. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1609155 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1609155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1609155 Template-Type: ReDIF-Article 1.0 Author-Name: Talknice Saungweme Author-X-Name-First: Talknice Author-X-Name-Last: Saungweme Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Title: Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis Abstract: This paper explores the causal relationships between public debt and economic growth, and between public debt service and economic growth in Zambia for the period from 1970 to 2017. Unlike previous studies on this subject that relied on bivariate frameworks, this paper includes fiscal balance and savings as intermittent variables to minimise the problem of omission-of-variable bias. Using a dynamic multivariate autoregressive-distributed lag (ARDL)-bounds testing approach, the results indicate that there is unidirectional Granger-causality from economic growth to public debt in Zambia, irrespective of whether the analysis is done in the short run or in the long run. The study results, however, fail to find any causality between public debt service and economic growth in Zambia. These study findings support the hypothesis that the pace of economic growth matters in defining the level of public sector indebtedness. The study, therefore, recommends that the Zambian government should channel borrowed funds towards the expansion and diversification of the country’s economy. This will promote its long-term economic growth, broaden its revenue base, and enhance its ability to repay its financial obligations when they fall due. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622998 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622998 Template-Type: ReDIF-Article 1.0 Author-Name: John Kanburi Bidzakin Author-X-Name-First: John Author-X-Name-Last: Kanburi Bidzakin Author-Name: Simon C. Fialor Author-X-Name-First: Simon C. Author-X-Name-Last: Fialor Author-Name: Dadson Awunyo-Vitor Author-X-Name-First: Dadson Author-X-Name-Last: Awunyo-Vitor Author-Name: Iddrisu Yahaya Author-X-Name-First: Iddrisu Author-X-Name-Last: Yahaya Title: Impact of contract farming on rice farm performance: Endogenous switching regression Abstract: Contract farming (CF) is increasing been used as a strategy in rice production in Ghana while there is no empirical data supporting it. This study investigated the importance of CF in rice production. Cross-sectional farm household level data collected from 350 rice farmers randomly selected across the rice production areas of Ghana was used. The adoption and casual impact of CF was estimated using endogenous switching regression and propensity score matching methods. Results revealed positive and significant relationship between CF and farm performance measures (yield and gross margins). Results indicate that, CF increases yield and gross margins significantly. It further identified educational level, rice farm size and ISFM as positive determinants of contract participation. This evidence provides strong support for efforts to promote CF in Ghana. Educated farmers should be targeted for CF participation because their propensity to participate in CF is high. Sensitising our illiterate farmers to participate in CF should be vigorously pursued. CF should also be encouraged as a means to promote the adoption of ISFM technology. CF is recommended as a good tool for developing the local rice value chain in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1618229 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1618229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1618229 Template-Type: ReDIF-Article 1.0 Author-Name: Tung Lam Dang Author-X-Name-First: Tung Lam Author-X-Name-Last: Dang Author-Name: Hai Ly Ho Author-X-Name-First: Hai Author-X-Name-Last: Ly Ho Author-Name: Chi Dzung Lam Author-X-Name-First: Chi Author-X-Name-Last: Dzung Lam Author-Name: Thanh Thao Tran Author-X-Name-First: Thanh Author-X-Name-Last: Thao Tran Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Title: Stock liquidity and capital structure: International evidence Abstract: Relying on the assumption that equity market provides useful information for firm decision, this study examines the effect of stock liquidity on corporate capital structure decision. We also analyze whether this effect varies according to country-level institutional environments. Using a comprehensive international dataset of 19,939 firms across 41 countries over 2000–2010, the paper offers two key findings. First, firms with higher stock market liquidity tend to have lower leverage. Second, countries with strong institutional environments are more likely to have a weaker (negative) relationship between stock market liquidity and leverage. These results are robust to different liquidity measurement and subsamples. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1587804 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1587804 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1587804 Template-Type: ReDIF-Article 1.0 Author-Name: V. Gopikumar Author-X-Name-First: V. Author-X-Name-Last: Gopikumar Author-Name: Smitha Nair Author-X-Name-First: Smitha Author-X-Name-Last: Nair Author-Name: S Sreevathsava Author-X-Name-First: S Author-X-Name-Last: Sreevathsava Author-Name: Raja Sreedharan V Author-X-Name-First: Raja Author-X-Name-Last: Sreedharan V Title: Financial strength information and institutional investor demand: Evidence from India Abstract: In this paper, we examine whether foreign institutional investors (FII) and mutual funds (MF) show a higher preference for fundamentally stronger firms. We employ Pitroski’s F score and its constituents (profitability, efficiency, and leverage) to measure the fundamental strength of firms. Further, we examine the preferences of FIIs and MFs by conditioning on size and book-to-market ratio. Overall, the results indicate that both types of institutional investors prefer firms with higher expected profitability and are willing to take higher risks. FIIs show a higher preference for riskier firms and MFs prefer firms with higher profitability. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1623751 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1623751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1623751 Template-Type: ReDIF-Article 1.0 Author-Name: Adamu Jibir Author-X-Name-First: Adamu Author-X-Name-Last: Jibir Author-Name: Chandana Aluthge Author-X-Name-First: Chandana Author-X-Name-Last: Aluthge Title: Modelling the determinants of government expenditure in Nigeria Abstract: In Nigeria, the government activities vis-à-vis public expenditure has grown rapidly both in absolute, relative and as a share of GDP over the years. These growths in government expenditure have been due to certain factors which are believed to have significant effect on the fiscal operation of the country. These perceived implications of government expenditure expansion on the economy necessitate the need to understand factors that are responsible for the growth in government expenditure size. For that, the study employs a slightly modified version of Wagner’s law by incorporating new variables such as oil revenue, trade openness, public debt, exchange rate, oil price, taxation and inflation—to examine their effect on government expenditure size. The study uses time series data for Nigeria spanning between 1970 and 2017. Time series data were analysed using Autoregressive Distributed Lag (ARDL) model. The findings of the study reveal that oil revenue, GDP, population, trade openness, oil price, taxation and inflation are important determinants of the size of Nigeria’s government expenditure. The study recommends among others that the revenue base of the country should be diversified beyond oil sector, strengthening of fiscal and monetary policies to ensure stability in price level and exchange rate, the use of fiscal rule through excess crude oil account should also be strengthened to create buffer against fluctuation in oil price and as well appropriate population reduction policies should be undertaken to curtail rapid population growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1620154 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1620154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1620154 Template-Type: ReDIF-Article 1.0 Author-Name: James Atta Peprah Author-X-Name-First: James Atta Author-X-Name-Last: Peprah Author-Name: Isaac Kwesi Ofori Author-X-Name-First: Isaac Author-X-Name-Last: Kwesi Ofori Author-Name: Abel Nyarko Asomani Author-X-Name-First: Abel Nyarko Author-X-Name-Last: Asomani Title: Financial development, remittances and economic growth: A threshold analysis Abstract: Sources of economic growth in Ghana have not been clear. Several studies have contributed to the finance and growth literature with little attention on remittances and the joint effect of financial sector development and remittances. This paper uses macrodata to examine the linkages between financial development, remittances and economic growth in Ghana. We estimate a dynamic heterogeneous Autoregressive Distributed Lag (ARDL) model to show that financial booms are not, in general, growth-enhancing, and a certain level of financial development can drag down economic growth in the long term and the combined effect of financial development and remittances should be of concern to policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1625107 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625107 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625107 Template-Type: ReDIF-Article 1.0 Author-Name: Oluwasogo S. Adediran Author-X-Name-First: Oluwasogo S. Author-X-Name-Last: Adediran Author-Name: Emmanuel O. George Author-X-Name-First: Emmanuel O. Author-X-Name-Last: George Author-Name: Philip O. Alege Author-X-Name-First: Philip O. Author-X-Name-Last: Alege Author-Name: Barnabas O. Obasaju Author-X-Name-First: Barnabas O. Author-X-Name-Last: Obasaju Title: Is there any relationship between monetary policy tools and external credit-growth nexus in Nigeria? Abstract: The Nigerian economy attracts abundance of foreign capital inflows and credit supply; hence, an adverse external credit shock might lead to a large decrease of external inflows due to global credit tightening, which may leave the domestic economy in deep recession. In this case, domestic monetary policy tools should be preferred to mitigate the external adverse effect on the domestic economy and stimulate investment. As a result, an important issue of concern in this study is how can the use of monetary policy tools mitigate the effect of external credit shocks on economic growth in Nigeria? In answering this question, this study attempted to assess the influence of monetary policy tools on external credit and economic growth nexus in Nigeria, using annual data covering 36 years for the period 1980–2015. The study adopted the Cobb–Douglas production function and estimated a specified model using autoregressive distributed lag cointegration approach. The study found out that cash reserve requirement, which is credit policy easing, is significant in growing the Nigerian economy, as compared to monetary policy rate. The implication of this is that, if credit policy easing is properly implemented, it could be efficient in offsetting adverse external credit shocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1625100 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625100 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625100 Template-Type: ReDIF-Article 1.0 Author-Name: Vasanth Kamath Author-X-Name-First: Vasanth Author-X-Name-Last: Kamath Author-Name: Seena Biju Author-X-Name-First: Seena Author-X-Name-Last: Biju Author-Name: Giridhar B Kamath Author-X-Name-First: Giridhar B Author-X-Name-Last: Kamath Title: A Participatory Systems Mapping (PSM) based approach towards analysis of business sustainability of rural Indian milk dairies Abstract: Drawing from the theories of Participatory Systems Mapping (PSM) this study presents an approach to analysing the business sustainability of entrepreneurial dairy ventures in India. The article begins with a general introduction to the small and medium scale dairy ventures in rural India, highlighting the prominent issues and challenges faced by the stakeholders. The second part demonstrates the use of the PSM framework in developing the Stock and flow diagram (SFD). Further, data from a local milk dairy is collected, and simulations are carried out between 2017–2025 using Vensim®. The outputs are analysed, and inferences are made. This study is expected to enable the policy makers towards the development of sustainable strategies for dairy businesses in general and enable the entrepreneur to analyse the future trends of the potential strategies under his consideration. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622172 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622172 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622172 Template-Type: ReDIF-Article 1.0 Author-Name: Tung Lam Dang Author-X-Name-First: Tung Lam Author-X-Name-Last: Dang Author-Name: Nguyen Trang Phuong Doan Author-X-Name-First: Nguyen Trang Phuong Author-X-Name-Last: Doan Author-Name: Thi Minh Hue Nguyen Author-X-Name-First: Thi Minh Hue Author-X-Name-Last: Nguyen Author-Name: Thanh Thao Tran Author-X-Name-First: Thanh Thao Author-X-Name-Last: Tran Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Title: Analysts and stock liquidity – Global evidence Abstract: This paper investigates the relation between analyst coverage and stock liquidity with a focus on the role of information produced by financial analysts. Using a comprehensive dataset across 41 countries for the period 2000–2010, we document two novel findings. First, analyst coverage is positively correlated with stock liquidity. Second, the positive effect of analyst following on stock liquidity is attributed to the weak institutional environment. These findings suggest that financial analysts provide more public information to market participants and thus improve stock liquidity. This effect is attenuated in a country with a stronger institutional environment. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1625480 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625480 Template-Type: ReDIF-Article 1.0 Author-Name: SJ Ferreira Author-X-Name-First: SJ Author-X-Name-Last: Ferreira Author-Name: E. Redda Author-X-Name-First: E. Author-X-Name-Last: Redda Author-Name: SH Dunga Author-X-Name-First: SH Author-X-Name-Last: Dunga Title: A structural equation model of reputational risk in South Africa Abstract: The central function of a bank inherently exposes it to various financial risks where each of these risks has the possibility to influence stakeholders’ perception. This perception, which is linked to the trustworthiness, credibility and performance of the bank, translates into the reputation of the bank. Depositors can be regarded as the main stakeholders of a bank and hence their behaviour can influence the reputational risk of the bank. With very limited research on reputational risk and depositor behaviour within the South African banking sector, the main purposes of this paper was to provide a meaningful contribution toward literature and empirical analysis. Primary data was collected from 417 depositors in Gauteng, South Africa, using a self-structured questionnaire. Statistical techniques such as correlation and structural equation modelling were used in the statistical analysis. The SEM identified three variables that uniquely influences reputational risk in banks. Operational risk events, behavioural finance biases and depositors level of risk tolerance were found to influence reputational risk. These empirical findings will help banks to profile depositor behaviour during operational risk events in order to mitigate against large losses and possible bank runs. The structural model will enable banks to forecast the factors that will influence a banks reputation i.e. a banks most valuable intangible asset. This will, in turn, enable banks to come up with better mitigation and management strategies for reputational risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1625739 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625739 Template-Type: ReDIF-Article 1.0 Author-Name: Edmore Mahembe Author-X-Name-First: Edmore Author-X-Name-Last: Mahembe Author-Name: Nicholas Mbaya Odhiambo Author-X-Name-First: Nicholas Mbaya Author-X-Name-Last: Odhiambo Title: Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis Abstract: This article examines the causal relationship between foreign aid, poverty, and economic growth in 82 developing countries for the period 1981–2013. Taking advantage of the recently developed dynamic panel data estimation techniques, the paper tests for both panel unit roots and cointegration before employing the panel vector error-correction model (VECM) Granger causality test. The main findings are that in the short run, there is evidence of (a) a bidirectional causal relationship between economic growth and poverty; (b) a unidirectional causal relationship from economic growth to foreign aid; and (c) unidirectional causality from poverty to foreign aid. In the long-run, the study found that (a) foreign aid tends to converge to its long-run equilibrium path in response to changes in economic growth and poverty; and (b) both economic growth and poverty jointly Granger cause foreign aid. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1626321 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1626321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1626321 Template-Type: ReDIF-Article 1.0 Author-Name: Ramzi Ben Slama Author-X-Name-First: Ramzi Author-X-Name-Last: Ben Slama Author-Name: Aymen Ajina Author-X-Name-First: Aymen Author-X-Name-Last: Ajina Author-Name: Faten Lakhal Author-X-Name-First: Faten Author-X-Name-Last: Lakhal Title: Board gender diversity and firm financial performance in France: Empirical evidence using quantile difference-in-differences and dose-response models Abstract: The purpose of this paper is to investigate the relationship between board gender diversity and firm performance under the enabling and voluntary institutional settings in France. We use a Quantile difference-in-differences and dose-response function estimations. The findings show that the comply-or-explain recommendation by the French code is likely to decrease performance for poorly performing firms. However, firm performance increases after the enabling date in high-performing firms. The results of the dose-response functions show that accounting performance reaches a threshold of 40% of women on boards, which coincides with the French law requirements in 2017. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1626526 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1626526 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1626526 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulaziz Abdulmohsen Alfalih Author-X-Name-First: Abdulaziz Author-X-Name-Last: Abdulmohsen Alfalih Title: Investigating critical resource determinants of start-ups: An empirical study of the MENA region Abstract: Purpose: By drawing upon the resource-based view theory, this study investigates the critical resource determinants of start-up companies in the Middle East and North Africa (MENA) region in order to encourage the development of entrepreneurship in the region. Design/methodology/approach: A quantitative approach based on multiple linear hierarchical regression analysis was used. Three sets of data were employed. Firstly, the study used the World Bank’s Doing Business Report which investigated the ease of starting businesses, access to electricity and access to credit across the 23 MENA countries. Secondly, the study also used the human capital index from the Global Entrepreneurship Index as one of the predictor variables of start-ups. Finally, three specific data sets, namely population, Foreign Direct Investment (FDI) and Gross Domestic Product of the 23 MENA countries were used as control variables due to their importance as determinants of entrepreneurship orientation. Findings: The results of this study indicate that access to two critical resources, namely electricity and credit, have greatly contributed to the formation of start-ups in the MENA region. However, the current level of human capital in the region does not support entrepreneurial activity, hence its inability to support entrepreneurs in the venture creation process. There is a need to augment entrepreneurship education across the region, as well as the provision of entrepreneurial skill development to current and potential entrepreneurs. Research limitations/implications: Firstly, the study depended heavily on secondary data to examine the determinants of start-ups in the MENA region. Even though the sources of these data are credible, it is impossible to determine any anomalies in the original data. Secondly, the model used in this study is parsimonious in the sense that many more predictor variables could have been explored in understanding the determinants of start-ups in the region. Future research could therefore investigate other factors, such as technology, property rights, the legal system and other important factors in the entrepreneurial ecosystem of the MENA region. Originality/value: Start-ups are a major source of new employment in a country. However, it is essential to understand the various factors which foster their survival and growth. Even though similar studies have been conducted in various settings, this is one of the few studies which have focused on empirical investigation into the resource determinants of start-ups in the MENA region. The MENA region is noted for its access to abundant oil reserves and other resources. However, this has not culminated in the emergence of successful start-ups. This is what has necessitated this study; to investigate the factors that are responsible for start-up growth in the region. The uniqueness of this study is that it is one of the few studies which have used a three-factor construct in investigating the drivers of start-ups in the MNEA region. This study adopts an exhaustive approach with different variables in different levels of analysis which can provide extra information for further comparative study. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1628494 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1628494 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1628494 Template-Type: ReDIF-Article 1.0 Author-Name: Shweta Ahalawat Author-X-Name-First: Shweta Author-X-Name-Last: Ahalawat Author-Name: Archana Patro Author-X-Name-First: Archana Author-X-Name-Last: Patro Title: Exchange rate and Chinese financial market: Variance decomposition under vector autoregression approach Abstract: The foremost objective of the manuscript is to predict dynamic behaviour of economic and financial time series i.e. exchange rate and price of stock market in China and also to determine if there is a interrelation between the two. Monthly time series data of 10 years have been taken, from January 2009 to December 2018 (post-financial crisis of 2008). The unit root test, variance decomposition under vector autoregressive (VAR) approach, impulse response function and Granger causality under VAR environment have been smeared to infer the long and short-run statistical dynamics. The outcomes of vector autoregression approach depict that the two variables have positive impact and are statistically significant in the short run. There is no long-run association and causal relation between the exchange rate and Chinese financial market. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1628512 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1628512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1628512 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Retraction: Penalties and Contagion in Financial Networks Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1629787 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1629787 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1629787 Template-Type: ReDIF-Article 1.0 Author-Name: William Gabriel Brafu-Insaidoo Author-X-Name-First: William Gabriel Author-X-Name-Last: Brafu-Insaidoo Author-Name: Ferdinand Ahiakpor Author-X-Name-First: Ferdinand Author-X-Name-Last: Ahiakpor Author-Name: Fiador Vera Ogeh Author-X-Name-First: Fiador Author-X-Name-Last: Vera Ogeh Author-Name: Cantah William G. Author-X-Name-First: Cantah Author-X-Name-Last: William G. Title: Macro-determinants of short-term foreign debt in Ghana Abstract: This study tests the validity of the hypothesis that the regulatory and macroeconomic environments and the disparity between domestic and international interest rates are important determinants of short-term foreign debt stock in a developing economy like Ghana. This study employs a time series econometric analysis of annual secondary data covering the period 1970 to 2012. More specifically, the bounds testing approach is used to estimate the impact of potential determinants—identified in the theoretical and empirical literature—on the real stock of short-term foreign debt in Ghana. The study finds that a reduction in regulatory restrictions on external borrowing, a widening of the disparity between domestic and international interest rates, economic growth performance and domestic financial deepening lead to increases in the short-term foreign debt stock in both the long and short run, respectively. The short-term foreign debt stock reduces in response to an increase in trade openness in the short run, and to international debt relief initiatives by multilateral development institutions in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1630161 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1630161 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1630161 Template-Type: ReDIF-Article 1.0 Author-Name: Tough Chinoda Author-X-Name-First: Tough Author-X-Name-Last: Chinoda Author-Name: Farai Kwenda Author-X-Name-First: Farai Author-X-Name-Last: Kwenda Title: Do mobile phones, economic growth, bank competition and stability matter for financial inclusion in Africa? Abstract: The lower levels of financial inclusion and severe financial inclusion gaps in Africa motivates the investigation of whether mobile phones, economic growth, bank competition and stability matter for financial inclusion. Data from 49 countries for the periods 2004–2016 were collected and analysed using a five-variable panel structural vector autoregressive model. There was evidence to show that financial inclusion responds positively and significantly to shocks in bank competition, economic growth, mobile phones and bank stability. However, the results reveal that all the variables respond to one standard deviation shock in financial inclusion, suggesting that while the variables matter for financial inclusion, they also require financial inclusion for their effective operation. Hence, the conclusion is that financial inclusion plays a central in the effective running of economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622180 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622180 Template-Type: ReDIF-Article 1.0 Author-Name: Matthew W. Burkett Author-X-Name-First: Matthew W. Author-X-Name-Last: Burkett Author-Name: William T. Scherer Author-X-Name-First: William T. Author-X-Name-Last: Scherer Author-Name: Andrew Todd Author-X-Name-First: Andrew Author-X-Name-Last: Todd Title: Are financial market states recurrent and persistent? Abstract: Market participants often invoke the concept of discrete state when discussing financial markets. Bull market, bear market, depression, and recession are all terms that map to discrete market states. Mental models of how markets behave in each state and transition between states are then applied to decision-making. Implicit to that approach is the assumption that states are persistent and recurrent over time. This article seeks to formalize notions of discrete market states by proposing a parsimonious and innovative approach to segmenting periods of time into discrete states. The technique is demonstrated and evaluated in a series of case studies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622171 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622171 Template-Type: ReDIF-Article 1.0 Author-Name: Saeid Tajdini Author-X-Name-First: Saeid Author-X-Name-Last: Tajdini Author-Name: Mohsen Mehrara Author-X-Name-First: Mohsen Author-X-Name-Last: Mehrara Author-Name: Reza Tehrani Author-X-Name-First: Reza Author-X-Name-Last: Tehrani Title: Double-sided balanced conditional Sharpe ratio Abstract: The purpose of this study was to investigate the behavior of various indices of Tehran Stock Exchange firstly in the boom period from 2018-03-21 to 2018-11-02 and secondly in the recession period from 2016-03-20 to 2016-12-20 using double-sided balanced conditional Sharpe ratio. The results of this study showed the best performance for the insurance index with a double-sided balanced conditional Sharpe ratio of 0.123 and later for the metallic minerals index with a measure of 0.1215. Moreover, on the basis of the double-sided balanced conditional Sharpe ratio, the food except for sugar index with a measure of 0.035 showed the worst performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1630931 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1630931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1630931 Template-Type: ReDIF-Article 1.0 Author-Name: Dominic Tasila Konja Author-X-Name-First: Dominic Author-X-Name-Last: Tasila Konja Author-Name: Franklin N. Mabe Author-X-Name-First: Franklin N. Author-X-Name-Last: Mabe Author-Name: Richard Oteng-Frimpong Author-X-Name-First: Richard Author-X-Name-Last: Oteng-Frimpong Title: Profitability and profit efficiency of certified groundnut seed and conventional groundnut production in Northern Ghana: A comparative analysis Abstract: This study seeks to compare profitability and profit efficiency of certified groundnut seed (CGS) and conventional groundnut (CG) production in Northern Ghana using cross-sectional data. The two-step stochastic metafrontier profit model was used to estimate profit efficiencies and their determining factors for CGS and CG producers. The study found that CGS production is more profitable and profit efficient than CG production. Whilst profit efficiency of CGS is influenced by age, education, extension visits, Farmer-Based Organisation meetings, and farming experience, profit efficiency of CG producers is influenced by educational status, access to extension, and access to mobile phone. To increase profit and profit efficiency, the capacity of CGS producers should be built to incentivise them to upscale CGS production so as to bridge the demand deficit in the country. Also, farmers should be trained to enter into CGS production. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1631525 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1631525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1631525 Template-Type: ReDIF-Article 1.0 Author-Name: Barnabas Olusegun Obasaju Author-X-Name-First: Barnabas Olusegun Author-X-Name-Last: Obasaju Author-Name: Wumi Kolawole Olayiwola Author-X-Name-First: Wumi Kolawole Author-X-Name-Last: Olayiwola Author-Name: Henry Okodua Author-X-Name-First: Henry Author-X-Name-Last: Okodua Author-Name: Oluwasegun Eseyin Author-X-Name-First: Oluwasegun Author-X-Name-Last: Eseyin Author-Name: Ayodele Victor Ahmed Author-X-Name-First: Ayodele Victor Author-X-Name-Last: Ahmed Title: Intermediate tariffs and intraregional intermediate exports: Implications for regional value chains in ECOWAS Abstract: This paper primarily aims at analysing the impact of (intermediate) tariffs on intraregional intermediate exports between 2000 and 2015 with the aim of predicting the likely implications this has for regional value chains within the Economic Community of West African States (ECOWAS). As a secondary objective, the paper investigates whether corresponding effectively applied tariffs significantly affect other classification of exports—all products, raw products and consumer products. Paying attention to the Heckman Two-step technique, we find that tariffs on intermediate products do not significantly drive intermediate exports, inter alia. And as garnered from the auxiliary regression, generally, tariffs are not sufficiently low as to bolster intraregional exports in ECOWAS. The statistical insignificance of intermediate tariffs implicates that the prevailing effectively applied tariff levels is not likely to augur well for formation and strengthening of new and existing value chains in ECOWAS. The need for this regional economic community to consider reviewing tariffs downwards is exigent for both the success of value chains and regional trade integration in general. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1622179 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622179 Template-Type: ReDIF-Article 1.0 Author-Name: Araya Mebrahtu Teka Author-X-Name-First: Araya Mebrahtu Author-X-Name-Last: Teka Author-Name: Sung-Kyu Lee Author-X-Name-First: Sung-Kyu Author-X-Name-Last: Lee Title: The impact of agricultural package programs on farm productivity in Tigray-Ethiopia: Panel data estimation Abstract: Ethiopian government has introduced various agricultural package programs in promoting agricultural productivity of the smallholder farmers. The paper attempts to explore the status and determinants of agricultural productivity and estimate the impact of integrated agricultural package programs on farm productivity by using extensive panel data in the Eastern zone of Tigray in Ethiopia. Thus far, there have been no researches attempted to analyze the impact of the integrated agricultural package programs introduced to the farmers on various outcome variables in Tigray region in Ethiopia by using panel data. In doing so, we used two estimation methods: (i) the fixed effect (FE) estimation model to empirically evaluate the impact of household-based agricultural package programs on farm productivity in Tigray region, and (ii) the propensity score matching (PSM) method to estimate the average treatment effect on the treated (ATT). Our econometric estimates show the following two practical results. Firstly, household-based agricultural package programs have a positive and statistically significant impact on farm productivity in the Eastern zone of Tigray. This implies that the agricultural household package participant households have higher productivity than the non-beneficiaries. Secondly, the PSM estimation result ensures that the ATT is positive and statistically significant for the package participant smallholder farmers. In the end, these outcomes provide governments with some useful guides to promote farm productivity in Tigray, Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1631987 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1631987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1631987 Template-Type: ReDIF-Article 1.0 Author-Name: Feng Li Author-X-Name-First: Feng Author-X-Name-Last: Li Author-Name: Zhuojing He Author-X-Name-First: Zhuojing Author-X-Name-Last: He Title: Credit risk clustering in a business group: Which matters more, systematic or idiosyncratic risk? Abstract: Understanding how defaults correlate across firms is a persistent concern in risk management. In this paper, we apply covariate-dependent copula models to assess the dynamic nature of credit risk dependence, which we define as “credit risk clustering”. We also study the driving forces of the credit risk clustering in CEC business group in China. Our empirical analysis shows that the credit risk clustering varies over time and exhibits different patterns across firm pairs in a business group. We also investigate the impacts of systematic and idiosyncratic factors on credit risk clustering. We find that the impacts of the money supply and the short-term interest rates are positive, whereas the impacts of exchange rates are negative. The roles of the CPI on credit risk clustering are ambiguous. Idiosyncratic factors are vital for predicting credit risk clustering. From a policy perspective, our results not only strengthen the results of previous research but also provide a possible approach to model and predict the extreme co-movement of credit risk in business groups with financial indicators. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1632528 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1632528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1632528 Template-Type: ReDIF-Article 1.0 Author-Name: Wajdi Bardi Author-X-Name-First: Wajdi Author-X-Name-Last: Bardi Author-Name: Saif Eddine Ayouni Author-X-Name-First: Saif Eddine Author-X-Name-Last: Ayouni Author-Name: Mekki Hamdaoui Author-X-Name-First: Mekki Author-X-Name-Last: Hamdaoui Title: Are structural policies in countries bordering mediterranean appropriate to economic convergence: Panel ARDL application Abstract: Our main contribution in this paper consists of analyzing long-run interactions between structural policies and economic growth accounting for possible convergence. For this purpose, we are based on a sample of eight countries bordering the Mediterranean during the period 1975–2012. In fact, we used a technique based on panel ARDL methods which deals with the stationary series problem of different orders to monitor possible convergence in the long-run horizon. This method allows us to study potential long-term effects of structural economic policies on growth as well as capture the possible links between candidate variables and the trend of convergence in terms of per capita GDP. Our empirical results support convergence processes of GDP per capita in all the bordering Mediterranean countries. Moreover, we find that the increased number of secondary schools enrollment through public expenditure on education, greater economic openness, and fluid foreign direct investments stimulates economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1636496 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1636496 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1636496 Template-Type: ReDIF-Article 1.0 Author-Name: Sheunesu Zhou Author-X-Name-First: Sheunesu Author-X-Name-Last: Zhou Author-Name: D. D. Tewari Author-X-Name-First: D. D. Author-X-Name-Last: Tewari Title: Shadow banking, risk-taking and monetary policy in emerging economies: A panel cointegration approach Abstract: This study investigates the nexus between shadow banking, bank risk and monetary policy in emerging economies. The importance of this topic arises from its impact on the relationship between price and financial stability objectives of the regulator. In essence, the existence of financial market channels of monetary policy distorts the dichotomy between price and financial stability objectives of central banks. We employ panel cointegration techniques and find a negative association between monetary policy and shadow banking. Specifically, an increase in the central bank policy rate results in a decrease in shadow bank asset growth. In addition, we find a positive association between shadow banking and bank risk. Monetary policy effectiveness increases when bank risk is high. In sum, our results show that shadow banks are an element of the bank risk-taking channel of monetary policy. We suggest policy coordination between monetary and macro-prudential policy, and close monitoring of shadow banking activities to reduce risky undertakings in the financial sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1636508 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1636508 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1636508 Template-Type: ReDIF-Article 1.0 Author-Name: Thi Kieu Hoa Phan Author-X-Name-First: Thi Kieu Hoa Author-X-Name-Last: Phan Author-Name: Nam Hoai Tran Author-X-Name-First: Nam Hoai Author-X-Name-Last: Tran Title: Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? Abstract: This paper examines the impacts of dividend policy and ownership structure on stock price volatility in the Vietnamese market. The study also tests for the moderating effect of foreign/state ownership on the dividend policy–price volatility relation. The authors use a comprehensive panel dataset of non-financial firms listed publicly on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange over the period from 2008 to 2015. Employing a set of different econometric methods, the robust results indicate that dividend yield mitigates stock price volatility in the emerging market of Vietnam. The price-stabilising effect of foreign (and state) involvement has no longer been significant after the global financial crisis. Also, the study finds no moderating effect of ownership structure on the relation between dividend yield and price volatility during the sample period. The finding of the influence of dividend policy on stock market risk has critical implications for the investment landscape in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1637051 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1637051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1637051 Template-Type: ReDIF-Article 1.0 Author-Name: Smitha Nair Author-X-Name-First: Smitha Author-X-Name-Last: Nair Author-Name: V Gopikumar Author-X-Name-First: V Author-X-Name-Last: Gopikumar Author-Name: Anjaly Ajith Author-X-Name-First: Anjaly Author-X-Name-Last: Ajith Author-Name: Raja Sreedharan V Author-X-Name-First: Raja Author-X-Name-Last: Sreedharan V Title: Exploring bequest intentions of Indian households Abstract: This paper examines the bequest motives of Indian households in a context of changing demographic factors such as ageing and economic shocks such as the financial crisis of 2009, and demonetization in the year 2016. We employ a standardized questionnaire, and collect data from a random sample of 220 participants. The results indicate that self- interest has a negative association and social norms is positively associated with the intention to bequest. Further, altruism, religiosity and social norms negatively amplifies the relationship between self-interest and intention to bequest. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1637592 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1637592 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1637592 Template-Type: ReDIF-Article 1.0 Author-Name: Tuan Anh Nguyen Author-X-Name-First: Tuan Anh Author-X-Name-Last: Nguyen Author-Name: Tuyen Quang Tran Author-X-Name-First: Tuyen Quang Author-X-Name-Last: Tran Author-Name: Huong Vu Van Author-X-Name-First: Huong Vu Author-X-Name-Last: Van Author-Name: Dat Quoc Luu Author-X-Name-First: Dat Quoc Author-X-Name-Last: Luu Title: Access to homebuyer credit and housing satisfaction among households buying affordable apartments in urban Vietnam Abstract: This study examines the relationship between the access to homebuyer credits and housing satisfaction among those buying affordable apartments, using a sample of 1,000 respondents from our own survey in 2016 in Hanoi, Da Nang and Ho Chi Minh Cities. Our regression analysis reveals the education level, the size and value of apartments are closely linked with the access to preferential homebuyer credits. Notably, we find that the access to preferential home loans has a strongly positive impact on housing satisfaction, after controlling for all other factors in the model. Thus, the finding confirms that preferential home loan programs play an important role in helping low-income households own affordable apartments and increase their housing satisfation. We also find that some other features of their apartments, such as the number of bathrooms and balconies, the distance from the apartment building to schools, bus stations and markets, are strongly linked with housing satisfaction. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1638112 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1638112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1638112 Template-Type: ReDIF-Article 1.0 Author-Name: Ritab Al-Khouri Author-X-Name-First: Ritab Author-X-Name-Last: Al-Khouri Author-Name: Houda Arouri Author-X-Name-First: Houda Author-X-Name-Last: Arouri Title: Market power and the role of banks as liquidity providers in GCC markets Abstract: Purpose: The study aims to discuss the role of market power and the banks as a liquidity provider, specifically in the twenty-first century.Design: The empirical investigation has evaluated the effects of market power on the ability of GCC banks to provide and transform liquidity.Findings: The banks conveniently perform two significant functions as the financial institution; therefore, they are known to play the role of risk transformers. They have been recognized as the important entities of liquidity creators and providers. The increase in market power increases the ability of GCC banks to create liquidity. There is a negative association between Inflation, growth in GDP, and ability of bank to produce liquidity.Conclusion: The financing impediments are reinforced due to increased competition among different banks. The demand of loans is likely to increase, when the investors possess valuable investment projects during expansion. The study recommends that the future research must involve off-balance-sheet items in the investigation for further clarification. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1639878 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1639878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1639878 Template-Type: ReDIF-Article 1.0 Author-Name: Somlanare Romuald Kinda Author-X-Name-First: Somlanare Romuald Author-X-Name-Last: Kinda Author-Name: Felix Badolo Author-X-Name-First: Felix Author-X-Name-Last: Badolo Title: Does rainfall variability matter for food security in developing countries ? Abstract: This paper contributes to the existing literature on rainfall variability and food security. It analyses the effect of rainfall variability on food security for 71 developing countries from 1960 to 2016. Results suggest that rainfall variability reduces food security in developing countries. Indeed, it reduces food availability per capita and increases the percentage of total undernourished population. Moreover, the negative effects of rainfall variability are exacerbated in the presence of civil conflicts and are high for the countries that are vulnerable to food price shocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1640098 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1640098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1640098 Template-Type: ReDIF-Article 1.0 Author-Name: Randy Beavers Author-X-Name-First: Randy Author-X-Name-Last: Beavers Title: CEO Compensation in IPOs Abstract: Research Question/Issue: Does inside debt compensation affect previous thought on compensation effects in IPOs? What explains variation in compensation when a company goes public? What is the composition of CEO compensation in an IPO? What types of compensation may be more optimal for or are associated with future financial success for the firm?Research Findings/Insights: Using a sample of 852 IPOs in the United States from 2006 until 2014, we find only one-third of firms have or reported having compensation broken down further into categories of pensions, retirement plans, and deferred compensation. These types of compensation are associated with higher financial success through profitability and asset management. Option compensation remains detrimental to a firm’s financial success through lower profitability and worse asset management.Theoretical/Academic Implications: A theoretical compensation model provides and empirically explains 79% of the variation in compensation in IPOs in the first year of the public firm. In addition, this study finds the majority of firms are still inaccurately reporting deferred compensation, at least in the Summary Compensation Table. Future research could look to see why this is the case.Practitioner/Policy Implications: Further investigation and potential litigation by the SEC may be necessary in the future to force firms to place information appropriately in the summary compensation table, especially concerning pension plans, retirement accounts, and other deferred compensation. In addition, individuals on compensation committees may consider giving the CEO more long-term compensation through stock and pensions instead of options. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1640099 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1640099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1640099 Template-Type: ReDIF-Article 1.0 Author-Name: Dayne Cary Author-X-Name-First: Dayne Author-X-Name-Last: Cary Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Title: Replicating the CBOE VIX using a synthetic volatility index trading algorithm Abstract: This article tests whether a correlation exists between a stochastic synthetic volatility index (SVIX) and the Chicago Board Options Exchange (CBOE) volatility index (VIX) and assesses the success of the indicators’ application by pairing an undeveloped trading strategy to gauge its forecasting accuracy. The SVIX aims to address the scaling limitations of the CBOE VIX. The SVIX allows traders to graph volatility as a 100% scale on securities that do not have an official CBOE VIX ticker symbol. The SVIX shows high correlation with the CBOE VIX. Backtesting indicators with an investment strategy using US stocks proved successful. The winning percentage of trades and net profit are positive only for long strategies and fail in short strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1641063 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1641063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1641063 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1641683 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1641683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1641683 Template-Type: ReDIF-Article 1.0 Author-Name: Catherine Mwema Author-X-Name-First: Catherine Author-X-Name-Last: Mwema Author-Name: Wibke Crewett Author-X-Name-First: Wibke Author-X-Name-Last: Crewett Title: Social Networks and Commercialisation of African Indigenous Vegetables in Kenya: A Cragg’s Double Hurdle Approach Abstract: This paper employs a two-stage Cragg’s double-hurdle model to assess the effects of market information networks on commercialisation decisions of smallholders of African Indigenous Vegetables (AIVs). We explore sources of market information and social networks for information exchange as determinants of the decision to sell and how much volume to sell. The paper is based on household survey data collected in Western Kenya from 202 farmers, using multistage sampling. Findings show market information networks to have positive effects on the second stage decision of volumes sold. Bridging social capital depicted by information received from people outside farmers’ own village had the likelihood of increasing volumes of AIVs sold. Other determinants of commercialisation were farm size and household size which reported positive marginal effects while age, livestock units and off-farm income reported negative marginal effects. We recommend the need to have policy frameworks that strengthen network linkages for farmers aimed at promoting market information exchange, as this will have a positive effect in the commercialisation of indigenous crops. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1642173 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1642173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1642173 Template-Type: ReDIF-Article 1.0 Author-Name: Sudheer Reddy Author-X-Name-First: Sudheer Author-X-Name-Last: Reddy Author-Name: Aditya Mohan Jadhav Author-X-Name-First: Aditya Mohan Author-X-Name-Last: Jadhav Title: Gender diversity in boardrooms – A literature review Abstract: This paper examines the advancement of literature on gender diversity on corporate boards (board gender diversity). We discuss important management theories cited in the literature and examine the factors that affect board gender diversity. We present evidence from developed and emerging markets based on a review of studies to show how board gender diversity impacts a firm performance. We also review growing literature on the gender quota legislation that mandates the appointment of female director(s) on corporate boards. Research on board gender diversity reveals director characteristics, firm size, board size, board diversity, industry, type of ownership, customer base, and social and cultural characteristics as the factors that influence representation of female directors on corporate boards. Studies on the impact of board gender diversity on firm performance present inconclusive results. In a similar vein, studies on the impact of gender quota legislation on firm performance also present mixed results. Our study contributes to the growing literature on board gender diversity and provides a further understanding of factors that influence gender diversity on corporate boards. It also offers insights to regulators on potential limitations and the benefits of gender quota legislation. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1644703 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1644703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1644703 Template-Type: ReDIF-Article 1.0 Author-Name: Beneberu A. Wondimagegnhu Author-X-Name-First: Beneberu A. Author-X-Name-Last: Wondimagegnhu Author-Name: Admassu T. Huluka Author-X-Name-First: Admassu T. Author-X-Name-Last: Huluka Author-Name: Sarah M. Nischalke Author-X-Name-First: Sarah M. Author-X-Name-Last: Nischalke Title: Determinants of farm livelihoods of smallholder farmers in Yayu biosphere reserve, SW Ethiopia: a gender disaggregated analysis Abstract: Improving food security has remained to be one of the major challenges in Sub-Saharan Africa, where Ethiopia is not an exception. As a result of poor productivity of the farming sector, smallholder farmers in Ethiopia have been strained to have a precarious livelihood. This study aims at analyzing the determinants of farm livelihood of smallholder farmers particularly in the context of Yayu biosphere reserve, where farmers are legally prohibited from expanding farmland and wild animals often intrude into the farmers’ field. A household survey was conducted to collect gender disaggregated data from 334 smallholder farmers supported by focus group discussions and key informant interviews. T-test mean comparison was made to compare socio-economic and household characteristics between male and female-headed households. Tobit regression analysis was also employed to capture the probability and extent of determinant variables in predicting the engagement of households in farm livelihoods. The result shows that augmented production factors, particularly farm physical capital and land along with access to credit, yield enhancing inputs and local labor support systems were found to significantly increase the intensity of engagement in farming both in male and female-headed households. Encroachment of wild animals to the farmers’ field brought insignificant effects on farm livelihoods. However, it brought additional burdens on farmers as they are expected to patrol their fields regularly. The findings implied that farm livelihood is highly dependent on ownership and efficient use of scarce production factors. These call for sustainable and integrated approaches to improve the future productivity of smallholder agriculture in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1645583 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645583 Template-Type: ReDIF-Article 1.0 Author-Name: Niaz Kammoun Author-X-Name-First: Niaz Author-X-Name-Last: Kammoun Author-Name: Ahmed Bounfour Author-X-Name-First: Ahmed Author-X-Name-Last: Bounfour Author-Name: Altay Özaygen Author-X-Name-First: Altay Author-X-Name-Last: Özaygen Author-Name: Rokhaya Dieye Author-X-Name-First: Rokhaya Author-X-Name-Last: Dieye Title: Financial market reaction to cyberattacks Abstract: Drawing upon an extensive dataset comprising 3,680 cyberattacks on firms listed in 5 stock markets, our main objective is to ascertain the financial market reaction based on a hybrid valuation inspired by the event study methodology and a counterfactual analysis. Analyses concern three dates that are specific to cyberattacks: 1) the accident date; 2) the first notice date; and 3) the original loss start date. Results indicate that there is a negative abnormal return for the NASDAQ after the accident date. The reactions of the NASDAQ and NYSE are similar, and negative for the first notice date but positive after the original loss start date. In the European context, cumulative abnormal returns are negative for French and German companies after the first notice date. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1645584 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645584 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645584 Template-Type: ReDIF-Article 1.0 Author-Name: Vinod Madhavan Author-X-Name-First: Vinod Author-X-Name-Last: Madhavan Author-Name: Simon George Author-X-Name-First: Simon Author-X-Name-Last: George Author-Name: Gururaj Kidiyoor Author-X-Name-First: Gururaj Author-X-Name-Last: Kidiyoor Title: Perceived intrusiveness of rich media ads in online advertising: Evidences from young Indian travellers Abstract: This paper examines the interrelated effects of perceived ad intrusiveness of rich media ads in online advertisements with respect to attitudes towards brands, online advertisement and the publisher’s website on young Indian travellers. Despite the widespread use of the term in marketing literature, ad intrusiveness has received almost no attention in the destination marketing literature especially in the context of rich media ads. Data have been collected from 304 young Indian travellers using a structured questionnaire in an experimental design setting. Results indicate that perceived ad intrusiveness has direct and negative relationship on attitude towards brand, online advertisement and the publisher’s website. Results suggest strategies that advertisers may adopt to minimize the negative influence of intrusiveness in case of direct response when compared to branding objectives. Various theoretical and managerial implications are discussed with directions for future research. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1645631 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645631 Template-Type: ReDIF-Article 1.0 Author-Name: Xuan Hoa Ao Author-X-Name-First: Xuan Hoa Author-X-Name-Last: Ao Author-Name: Trinh Vuong Vu Author-X-Name-First: Trinh Vuong Author-X-Name-Last: Vu Author-Name: Khac Dong Le Author-X-Name-First: Khac Dong Author-X-Name-Last: Le Author-Name: Sopin Jirakiattikul Author-X-Name-First: Sopin Author-X-Name-Last: Jirakiattikul Author-Name: Kuaanan Techato Author-X-Name-First: Kuaanan Author-X-Name-Last: Techato Title: An analysis of the smallholder farmers’ cassava (Manihot esculenta Crantz) value chain through a gender perspective: the case of Dak Lak province, Vietnam Abstract: Many rural women, who are faced with the challenges of low rural incomes and gender inequality, improve their role in the farming system based on participation in the agricultural value chain thus enhancing agricultural productivity, household income and sustainable development. This study investigates the factors which affect participation in the production of cassava in Dak Lak Province and decisions in relation to the cassava value chain from a gender perspective. Data were obtained through a questionnaire-based survey of 300 household farmers, in-depth interviews with key informants, and focus group discussions. Probit and ordinary least squares regression models in a two-stage Heckman model were adopted to determine the factors affecting females’ decisions to participate in cassava cultivation, their level of participation and their participation in other stages of the cassava value chain. The survey results show that men are prominent in all stages of cassava production but there is a more equal gender dynamic in both cassava production participation decisions and decisions relating to the quantity of cassava to be supplied for commercial purposes. This article draws attention to the continuing role challenges of female smallholder farmers, but also shows how women’s empowerment is contingent on equity dynamics in the household as well as social norms in the community and wider society. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1645632 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645632 Template-Type: ReDIF-Article 1.0 Author-Name: Omolade Adeleke Author-X-Name-First: Omolade Author-X-Name-Last: Adeleke Author-Name: Mbonigaba Josue Author-X-Name-First: Mbonigaba Author-X-Name-Last: Josue Title: Poverty and green economy in South Africa: What is the nexus? Abstract: The study investigates the relationship between the green economy and poverty in South Africa from 1990 to 2017. Data on green economy indicators such as share of clean energy, CO2 emissions, human development index, secondary school enrolment, life expectancy at birth and access to electricity are extracted from United Nations Development Programme database, while data on per capita income and percentage of population living below the poverty line, which is used as the dependent variable, are collected from Statistics South Africa. Based on the statistical properties of the data, the Auto-Regressive Distributed Lags approach is used to analyse the short- and long-run influences of the green economy on poverty reduction in South Africa. The results show that the green economy has more of significant long-run impact than short run. It also shows that share of clean energy, CO2 emissions, human development index, secondary school enrolment, life expectancy at birth and access to electricity are the most important green economy indicators that have a significant impact on poverty reduction, while levels of income appear to have a weak impact. As a result, efforts should be more focused on improving the indicators of the green economy and sustainable development in South Africa if the increasing poverty level in the country is to be restrained. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1646847 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1646847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1646847 Template-Type: ReDIF-Article 1.0 Author-Name: Shreyansh Goyal Author-X-Name-First: Shreyansh Author-X-Name-Last: Goyal Title: The dividend puzzle misspecification – Why the role of dividends is not what people think Abstract: The dividend payout problem in literature has largely been misspecified. The roles of dividends as signals, agency cost reducers, fixed income providers or even the invariance of dividend payouts are all phenomenon that, based on market conditions, follow from the role of dividends as equalizers of firm value, discounted from a given point in time, across firm’s life. In this study, I discuss few problems with prevalent approaches towards solving dividend puzzle in academia, provide justification for the aforementioned hypothesis based on few assumptions, derive a model applicable under ideal conditions and then measure the deviations from the ideal model in two market indices—Nifty 500 (India) and S&P 500 (USA). The results obtained are then compared with the studies already done on these market and the reasons for deviation are discussed. Once the dividend model is derived, all roles of dividend flow automatically from the primary role of dividends and the extent of efficacy of each of the secondary role is based on numerous factors which vary, giving different results across different studies. The empirical investigation gives a view of these different factors at work in the markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1649000 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1649000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1649000 Template-Type: ReDIF-Article 1.0 Author-Name: Tahmina Akhter Author-X-Name-First: Tahmina Author-X-Name-Last: Akhter Author-Name: Othman Yong Author-X-Name-First: Othman Author-X-Name-Last: Yong Title: Adaptive market hypothesis and momentum effect: Evidence from Dhaka Stock Exchange Abstract: This paper examines time-varying behavior of momentum and contrarian profits to identify the existence of adaptive market hypothesis (AMH), and whether AMH can provide justification for the presence of such anomalous behavior in the Dhaka Stock Exchange (DSE) of Bangladesh. To investigate the time-varying pattern of momentum/contrarian anomaly, the study uses stock prices of all listed companies on the DSE and values of DSE general index from January 1995 to December 2018. To construct the relative strength portfolios for momentum strategies, the current study employs the portfolio formation methods of Jegadeesh and Titman with minor modifications. The study findings suggest the existence of medium-term momentum profits and the long-term reversal effect that vary over time. Moreover, the empirical evidence of the study shows that the changed market conditions that are considered as the main reasons under AMH for time-varying behavior of market efficiency and by extension the stock market anomalies influence the momentum profits. The findings suggest that although market risk cannot always explain the existence of momentum profits in the DSE, the bullish stock market condition positively impacts this anomalous profit pattern. In addition, the momentum profits are not statistically significant during stock market crashes and bubbles, but the normal market condition positively influences the momentum profits. The most interesting finding of this study is that the investors from emerging stock markets may not adapt towards changed market conditions like the investors from the developed markets as reported in the AMH literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1650441 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1650441 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1650441 Template-Type: ReDIF-Article 1.0 Author-Name: Esmaeil Akhlaghi Yazdinejad Author-X-Name-First: Esmaeil Akhlaghi Author-X-Name-Last: Yazdinejad Author-Name: Hossein Jokar Author-X-Name-First: Hossein Author-X-Name-Last: Jokar Title: Discovering determinants of trade credit demand: Evidence from top managers insight Abstract: In resources consumption management, determining the volume of trade credit demand (TCD) is the main concern for financial managers. Despite the importance of TCD, it is not well explored in developing countries. Therefore, this paper investigates the internal and external factors affecting the amount of TCD. Qualitative research method and questionnaire were used to collect opinions of top managers about the factors determining the volume of TCD. SPSS and AMOS statistical tools were used to analyze the quantitative data collected from the questionnaire. Based on the results, internal factors such as available collaterals, inventory turnover, reorder point, and payable payment period affect the volume of TCD. Furthermore, external factors such as banks availability, customer monopoly, and living in metropolitans affect the volume of TCD. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1650611 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1650611 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1650611 Template-Type: ReDIF-Article 1.0 Author-Name: Aboubakar Mirza Author-X-Name-First: Aboubakar Author-X-Name-Last: Mirza Author-Name: Mazrah Malek Author-X-Name-First: Mazrah Author-X-Name-Last: Malek Author-Name: Mohamad Ali Abdul-Hamid Author-X-Name-First: Mohamad Ali Author-X-Name-Last: Abdul-Hamid Title: Value relevance of financial reporting: Evidence from Malaysia Abstract: The objective of this paper is to examine the value relevance of financial reporting from a developing country perspective after the adoption of the full set of IFRS. The study utilizes the Ohlson price model to determine the value relevance of financial reporting. The findings show that generally earnings, book value of equity and cash flow from operations are useful for investment decision making, whereas, there is an increasing significance of cash flow from operations in the Malaysian Capital Market. This finding is not consistent with the rationale given by conceptual framework for financial reporting regarding the dominance of earnings in investment decision making due to the perception of managerial bias in the reported earnings and book value of equity in the Malaysian Capital Market over the period 2012–2106. The findings have an important implication for regulators and local standards-setting body to curtail earnings management practices to improve the quality of earnings and book value of equity to increase the investor’s confidence in general purpose financial reporting. The findings of the study contribute to the existing literature by performing a detailed empirical analysis of the value relevance of financial reporting in Malaysia, a developing country where the full set of IFRS has been implemented. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1651623 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1651623 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1651623 Template-Type: ReDIF-Article 1.0 Author-Name: Nandan Prabhu K.P. Author-X-Name-First: Nandan Author-X-Name-Last: Prabhu K.P. Author-Name: Rashmi Y Pai Author-X-Name-First: Rashmi Y Author-X-Name-Last: Pai Author-Name: Abhishek S Rao K. P. Author-X-Name-First: Abhishek S Author-X-Name-Last: Rao K. P. Title: Underlying assumptions in team effectiveness research: An application of problematization methodology Abstract: This paper examines current assumptions underlying the team effectiveness literature so as to propose alternative assumptions. Problematization methodology was used to problematize the existing assumptions. Integral Framework was applied to categorize constructs of team effectiveness literature. Alternative assumptions were proposed along with a discussion on their theory generation potential and the potential audience to whom these assumptions would be of benefit. Results of the application of problematization methodology and integral framework have problematized the three current assumptions, i.e.“experienced meaningfulness”, “outside-in” view of team processes, and the impact of “structure on behavior” of team members. Alternative assumptions of “felt meaningfulness”, inside-out’ view of team processes, and the impact of “culture of leadership on behavior” of team members have resulted in relevant research propositions. Limitations and directions for future research are discussed along with theoretical and managerial implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1658418 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1658418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1658418 Template-Type: ReDIF-Article 1.0 Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Author-Name: John Garchie Gatsi Author-X-Name-First: John Garchie Author-X-Name-Last: Gatsi Author-Name: Michael Effah Asamoah Author-X-Name-First: Michael Effah Author-X-Name-Last: Asamoah Title: Financial development and dollarization in Ghana: an empirical investigation Abstract: This study strengthens the frontiers of research on the drivers of dollarization in emerging economies by exploring the case of Ghana using the autoregressive distributed lag modelling framework. The data for the study spanned from January 2002 to March 2016. The evidence suggests that dollarization shares a common stochastic trend with exchange rates, inflation, interest rate differential, real output, and financial development. The analysis points to the important roles of exchange rate depreciation and financial development in the evolution of dollarization. Whereas depreciation induces a switch to the use of foreign currency, financial development diminishes the trend. Some policy recommendations to curtail the rising dollarization of the Ghanaian economy have been provided. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1663699 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1663699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1663699 Template-Type: ReDIF-Article 1.0 Author-Name: Josephat Lotto Author-X-Name-First: Josephat Author-X-Name-Last: Lotto Title: Evaluation of factors influencing bank operating efficiency in Tanzanian banking sector Abstract: This paper examines factors affecting operating efficiency of 36 commercial banks in Tanzania for the period between 2000 and 2017. The paper employs robust random-effect regression model to estimate the relationship between bank operating efficiency and its determinants. The results show that bank liquidity and capital adequacy have a positive relationship with bank operating efficiency. This suggests that capital adequacy and liquidity, not only strengthen financial stability by providing a larger capital cushion and bank required liquidity level, but also improve bank operating efficiency by lowering moral hazard between shareholders and debt-holders. Furthermore, the study shows that bank profitability and operating efficiency are directly related—implying that banks should put emphasis on improving their earning generating power to increase their operational efficiency. This paper suggests banks to increase their profitability by investing more on financial innovations and branch networks, and expand their market shares to boost their operational efficiency. Further, the paper argues that banks should optimally use their asset capacity to enhance their earnings profiles. At the same time, banks should avoid reckless lending that would increase the level of unsecured credits in banks’ portfolio. Finally, the results encourage banks in Tanzania to monitor and evaluate these factors for improvement to enable the sustainability of banks and industry for economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1664192 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1664192 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1664192 Template-Type: ReDIF-Article 1.0 Author-Name: Sudipa Roy Author-X-Name-First: Sudipa Author-X-Name-Last: Roy Author-Name: Arun Kr Misra Author-X-Name-First: Arun Kr Author-X-Name-Last: Misra Author-Name: Purna Chandra Padhan Author-X-Name-First: Purna Chandra Author-X-Name-Last: Padhan Author-Name: Molla Ramizur Rahman Author-X-Name-First: Molla Ramizur Author-X-Name-Last: Rahman Title: Interrelationship among Liquidity, Regulatory Capital and Profitability- A Study on Indian Banks Abstract: Liquidity is the ability of a bank to fund assets and meet obligations, as they become due, at reasonable costs. Technological and financial innovations have impacted the management of liquidity in banks. Declining ability to rely on core deposits, increased reliance on capital markets and recent turmoil in financial markets have created new challenges for banks in managing liquidity. The current study has discussed theories, indicators, factors influencing bank liquidity, and its implications on bank’s capital and profitability. It has empirically analyzed the determinants of liquidity through Arellano-Bond estimates and studied the interrelationship of liquidity, regulatory capital, and profitability through 2-SLS system equations. It has found that bank size, profitability, leverage, net interest margin, CRAR, gross non-performing loans, and Central Bank Policy Rate are the significant determinants of banks’ liquidity. The interactive effects among liquidity, profitability, and regulatory capital convey that banks can be more liquid with less profit, but less risky with more liquidity. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1664845 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1664845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1664845 Template-Type: ReDIF-Article 1.0 Author-Name: Melain Modeste Senou Author-X-Name-First: Melain Modeste Author-X-Name-Last: Senou Author-Name: Wautabouna Ouattara Author-X-Name-First: Wautabouna Author-X-Name-Last: Ouattara Author-Name: Denis Acclassato Houensou Author-X-Name-First: Denis Author-X-Name-Last: Acclassato Houensou Title: Financial inclusion dynamics in WAEMU: Was digital technology the missing piece? Abstract: Like most of International Institutions, the Central Bank of West African States (BCEAO) considers universal access to finance as key to empowering disadvantaged people. Fitting into that context, this study aims to assess the accelerating role of digital technologies using mobile phone penetration and internet usage as broad indicators, on the dynamics of financial inclusion in WAEMU. Using data from the Central Bank of West African States (BCEAO) and the International Telecommunication Union (ITU) over the periods 2006–2017, we estimated first a random effect model and thereafter a system GMM devised by Arrelano-Bover/Bundell-Bond, to correct the endogeneity issue raised from the static model. Findings show that beyond the specific effects of mobile phone penetration and Internet usage, the joint use of these two technologies is very key to financial inclusion in the WAEMU countries. It urges then for policy makers to take steps toward the availability, accessibility, affordability and to design flexible legislation pertaining to mobile financial services providers in order to accelerate financial inclusion in that region. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1665432 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1665432 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1665432 Template-Type: ReDIF-Article 1.0 Author-Name: Gurudutt Nayak Author-X-Name-First: Gurudutt Author-X-Name-Last: Nayak Author-Name: Amol S. Dhaigude Author-X-Name-First: Amol S. Author-X-Name-Last: Dhaigude Title: A conceptual model of sustainable supply chain management in small and medium enterprises using blockchain technology Abstract: This paper proposes a conceptual model of sustainable supply chain management (SSCM) in small and medium enterprises (SME) using blockchain technology (BT). With growing focus on sustainable business process, research on SSCM is gaining prominence. BT, being a disruptive technology, has potential to impact the SSCM. Using the extant literature, the antecedents of SSCM using BT have been identified. Multiple-criteria decision-making has been deployed to develop the conceptual model. Various managerial and theoretical implications along with scope for future research have been discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1667184 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1667184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1667184 Template-Type: ReDIF-Article 1.0 Author-Name: A. Rizkiana Author-X-Name-First: A. Author-X-Name-Last: Rizkiana Author-Name: H. Sari Author-X-Name-First: H. Author-X-Name-Last: Sari Author-Name: P. Hardjomidjojo Author-X-Name-First: P. Author-X-Name-Last: Hardjomidjojo Author-Name: B. Prihartono Author-X-Name-First: B. Author-X-Name-Last: Prihartono Title: The development of composite sentiment index in Indonesia based on the internet-available data Abstract: The development of internet technology raises new sentiment measures used to predict stock market return. This raises a new problem because we must choose carefully which sentiment measures to be used to predict stock market return because various correlations and limitations of these different data sources, different sentiment measures, and its general prediction applicability to different domains are unclear. Since there are no perfect and/or uncontroversial proxies for investor sentiment, we will develop a composite sentiment index based on those different sentiment measures using principal component analysis. The investor sentiment measures we use are investor sentiment measured in social media, google search volume, and news media sentiment. We find that each investor sentiment proxies are positively related to sentiment index. We also find that investor sentiment in news media has one-day lag compared to investor sentiment in social media and investor attention in google trend. Lastly, we confirm that investor sentiment cannot be used to predict stock return. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1669399 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1669399 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1669399 Template-Type: ReDIF-Article 1.0 Author-Name: Javed Mahmood Author-X-Name-First: Javed Author-X-Name-Last: Mahmood Author-Name: Irfan Mahmood Author-X-Name-First: Irfan Author-X-Name-Last: Mahmood Title: Comprehensive income disclosure (the case of US companies) Abstract: Purpose: The purpose of this paper is to examine alternative reporting formats of comprehensive income (CI) information and measures the extent to which losses are being accumulated in other comprehensive income (OCI) in the specific context of two major FASB updates: Summary of Financial Accounting Standard (SFAS) No. 130 and Accounting Standard Update (ASU) 2011–05. Design/methodology/approach: This paper investigates alternative reporting formats of CI information and its effect on Earnings Per Share (EPS) of 100 top US firms over the 1997–1999 period. The pattern of Other Comprehensive Income (OCI) is then examined using a sub-sample of ten companies with 31 December year ends over the 1995–2014 period. Findings: The results indicate that several firms show OCI items as part of shareholders’ equity. On average, the difference between CI and net income is significant for the majority of firms, fluctuating by up to 15% (in absolute terms) over three-years. The negative effect on EPS is significant. For sub-sample firms, OCI is predominantly negative (i.e., is reported as a loss). Research limitations/implications: The effect of the above findings is that reported earnings generally provide an overly optimistic picture of book values. Conservative book values are shown to be a more sufficient statistic for returns than earnings for investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1674587 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1674587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1674587 Template-Type: ReDIF-Article 1.0 Author-Name: Ebenezer Megbowon Author-X-Name-First: Ebenezer Author-X-Name-Last: Megbowon Author-Name: Courage Mlambo Author-X-Name-First: Courage Author-X-Name-Last: Mlambo Author-Name: Babatunde Adekunle Author-X-Name-First: Babatunde Author-X-Name-Last: Adekunle Title: Impact of china’s outward fdi on sub-saharan africa’s industrialization: Evidence from 26 countries Abstract: The growing involvement of China in the African region has continued to stimulate questions on the impact of her involvement in the region. This paper attempt to contribute to this debate and as well pursue a development goal by empirically answering the question that “can China’s FDI in sub-Saharan Africa (SSA) stimulate the sub-region’s industrialization?” Consequently, data used for this study were obtained from China Africa Research Initiative, the World Bank and the Energy Information Administrator (EIA) websites for a sample of 26 economies in the SSA over the period 2003–2016. Panel-Corrected Standard Error (PCSE) was used to achieve the objectives of the study. The PCSE estimate result indicates that China’s FDI in SSA has an insignificant but positive effect on SSA industrialization. Suggesting that China’s FDI is not enough to boost industrialization in SSA. Furthermore, the result shows that the electricity supply in SSA has a significant and positive impact on industrialization in the continent. For SSA to benefit from China FDI significantly, SSA government must prioritize and where necessary modify future agreement to promote or prioritize Chinese investment in sectors with positive linkages with the manufacturing sector and increasing local outsourcing of inputs and intermediate production activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1681054 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681054 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681054 Template-Type: ReDIF-Article 1.0 Author-Name: Charles O. Manasseh Author-X-Name-First: Charles O. Author-X-Name-Last: Manasseh Author-Name: Ndubuisi O. Chukwu Author-X-Name-First: Ndubuisi O. Author-X-Name-Last: Chukwu Author-Name: Felicia C. Abada Author-X-Name-First: Felicia C. Author-X-Name-Last: Abada Author-Name: Jonathan E. Ogbuabor Author-X-Name-First: Jonathan E. Author-X-Name-Last: Ogbuabor Author-Name: Kenechukwu A. Onyeka Author-X-Name-First: Kenechukwu A. Author-X-Name-Last: Onyeka Author-Name: Okoro E. Okoro Author-X-Name-First: Okoro E. Author-X-Name-Last: Okoro Title: Interactions between stock prices and exchange rates: An application of multivariate VAR-GARCH model Abstract: The study examined stock prices (SP) and exchange rate (ER) interactions with multivariate VAR-GARCH model using monthly data from January 2000 to October 2014. The results of the Engle and Granger and Johansen cointegration test show that there is stable long-term relationship between SP and ER. The empirical evidence of the VAR-GARCH model shows a significant mean spillover running from stock market to exchange market but not a mean spillover from exchange market to stock market. The variance equation results indicated the existence of bidirectional volatility transmission effect between SP and ERs, indicating the past innovations in stock market have the great effect on future volatility in foreign exchange market, and vice versa. The results have important implications for international portfolio managers in the portfolio diversification decisions and risk hedging strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1681573 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681573 Template-Type: ReDIF-Article 1.0 Author-Name: Arjun Mittal Author-X-Name-First: Arjun Author-X-Name-Last: Mittal Author-Name: Sanjay Sehgal Author-X-Name-First: Sanjay Author-X-Name-Last: Sehgal Author-Name: Anand Mittal Author-X-Name-First: Anand Author-X-Name-Last: Mittal Title: Dynamic currency linkages between select emerging market economies: An empirical study Abstract: In this article, we examine the dynamic currency linkages for BRIS (Brazil, Russia, India and South Africa) and 15 other emerging market economies (EMEs) using weekly data from 2001 to 2018. Using the asymmetric dynamic conditional correlation (ADCC)-EGRARCH framework, we find that the average correlation between BRIS currencies in the pre-crisis period is low and stood at 0.29, which rose to 0.39 in the post-crisis period implying contagion effects. Based on both ADCC results and Diebold-Yilmaz, Vector Autoregressive (VAR)framework enhanced by Greenwood-Nimmo block aggregation technique, we find that Brazil is a net transmitter while Russia, India and South Africa seem to be net receivers of information based on the first two moments. We further find empirical support for expanding BRIS into a larger economic block. Based on prior research findings on equity market linkages on BRICS and EMEs as well as our work on currency market linkages, we suggest Mexico, Poland and Hungary as potential candidates to be included in this economic block in the first phase. Turkey, Chile, Columbia and Romania may be included in the next phase as they dominate BRIS in either stock or currency markets of BRIS. This study is pertinent for global policymakers, international monetary agencies, currency investors and academia. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1681581 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681581 Template-Type: ReDIF-Article 1.0 Author-Name: Kwame Asiam Addey Author-X-Name-First: Kwame Asiam Author-X-Name-Last: Addey Author-Name: Saleem Shaik Author-X-Name-First: Saleem Author-X-Name-Last: Shaik Author-Name: Kekoura Sakouvogui Author-X-Name-First: Kekoura Author-X-Name-Last: Sakouvogui Title: Comparative sectoral price elasticities of U.S. energy demand Abstract: A sustainable energy system is key for addressing the world’s environmental and social challenges. The U.S is the second largest consumer of energy, with increased energy consumption in the previous half-century. To curb energy demand, it is essential to understand the relative price elasticities among the four main U.S energy consumption sectors; residential, industrial, commercial and transportation. The aim of this study is to present a theory-based comparative analysis of U.S sectoral energy price elasticities using the pooled mean group model. The speed of adjustment for the four sectors were −0.43, −0.41, −0.55 and −0.37, suggesting the existence of long-run relationships. The short-run own-price elasticities were −0.17, −0.39 and −0.27 for the commercial, industrial and residential sectors while the long-run own-price elasticities were −0.33, −0.45 and −0.20 for the commercial, residential and transportation sectors. We conclude that the residential sector readjusts to long-run equilibrium at a faster rate than the three other sectors. In the long run, this sector will yield a higher response to a price change. We suggest that price policies aimed at reducing energy demand should primarily target the residential sector, followed by the commercial and transportation sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1682743 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1682743 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1682743 Template-Type: ReDIF-Article 1.0 Author-Name: Stein Masunda Author-X-Name-First: Stein Author-X-Name-Last: Masunda Author-Name: Norman Mupaso Author-X-Name-First: Norman Author-X-Name-Last: Mupaso Title: A microeconometric analysis of factors affecting global value chain participation in Zimbabwe Abstract: Using firm-level data, this study explores the microeconomic factors affecting global value chain (GVC) participation in Zimbabwe. GVCs are important as a result of the fragmentation of global production across countries. As expected, firm size and credit financing are important determinants in fostering GVC participation. However, and quite surprising, foreign-owned firms in Zimbabwe participate less in GVCs when compared to domestically owned firms. Using data for 549 firms, this study postulates that if firm participation in GVCs is to be enhanced, access to credit for firms should be frictionless and firm growth-enabling environment and policies should be established. Summarily, the study postulates positive trade and financial linkages. Thus, access to credit and firm size are important in promoting intra-firm trade. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1682746 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1682746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1682746 Template-Type: ReDIF-Article 1.0 Author-Name: Hung Manh Nguyen Author-X-Name-First: Hung Manh Author-X-Name-Last: Nguyen Author-Name: Tuan Anh Nguyen Author-X-Name-First: Tuan Anh Author-X-Name-Last: Nguyen Title: Investigating the determinants of household welfare in the Central Highland, Vietnam Abstract: To provide policy implication for improving household welfare, one should understand which characteristics of households in a specific location they live, enable them to raise their welfare levels. This paper uses micro-econometric models for investigating the determinants of household welfare in the Central Highland, Vietnam using the recent data from the Vietnam Household Living Standard Survey in 2016. Despite the relative simplicity, rich information is obtained from its use on cross-sectional survey data. Both descriptive statistics and regression analysis were employed in the study. Ordinary Least Square (OLS) and a Logit estimators were used to examine factors affecting household income and poverty incidence, respectively. Results specific to the region include: a substantial contribution of nonfarm self-employment and education to household income and poverty eradication; wage employment is positively associated with poverty alleviation but not per capita income; and only some types of land were positively related to income and poverty reduction. The findings suggest that policies for poverty reduction should aim at improving the access of the poor to education and nonfarm employment. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1684179 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684179 Template-Type: ReDIF-Article 1.0 Author-Name: Hammad Siddiqi Author-X-Name-First: Hammad Author-X-Name-Last: Siddiqi Author-Name: John Quiggin Author-X-Name-First: John Author-X-Name-Last: Quiggin Title: The pricing kernel puzzle: A behavioral explanation Abstract: We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing kernel puzzle. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1684609 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684609 Template-Type: ReDIF-Article 1.0 Author-Name: Wade Gunning Author-X-Name-First: Wade Author-X-Name-Last: Gunning Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Title: Exploring the drivers of tracking error constrained portfolio performance Abstract: Maximising returns is often the primary goal of asset management but managing and mitigating portfolio risk also plays a significant role. Successful active investing requires outperformance of a benchmark through skillful stock selection and market timing, but these bets necessarily give rise to risk. The risk, relative to the benchmark, is the tracking error and active managers are constrained by investment mandates including a restriction on tracking error. The locus of possible portfolio risks and returns, constrained by a tracking error is elliptical, and the main axis slope’s sign and magnitude varies under different market conditions. How these variations affect portfolio performance is explored for the first time. We find that changes in main axis slope (magnitude and sign) acts as an early indicator of portfolio performance and could therefore be used as another risk management tool. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1684181 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684181 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684181 Template-Type: ReDIF-Article 1.0 Author-Name: Pankaj K Agarwal Author-X-Name-First: Pankaj K Author-X-Name-Last: Agarwal Author-Name: H. K. Pradhan Author-X-Name-First: H. K. Author-X-Name-Last: Pradhan Title: Mutual fund performance in changing economic conditions: Evidence from an emerging economy Abstract: Traditional measures of assessment of mutual fund performance (alpha) are based mostly on Capital Assets Pricing Model which presupposes fixed sensitivity of risk exposure of a fund to its market proxy (beta). However, changing economic conditions will alter this relationship. In conditional performance evaluation, the betas as well as alphas are allowed to vary in response to changing economic conditions over time. We hypothesize that true skill in fund management goes beyond altering the portfolio in response to changes in macroeconomic indicators. Therefore, this study examines the existence of superior performance of open-ended equity mutual funds in India in a conditional setting. We use a survivorship-bias-free database including all schemes since inception (2006–2015). We find evidence of selectivity and timing skills by the Indian fund managers even after controlling for changing macroeconomic variables. The evidence is weaker on aggregate basis than at fund level. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1687072 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1687072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1687072 Template-Type: ReDIF-Article 1.0 Author-Name: Kola Ijasan Author-X-Name-First: Kola Author-X-Name-Last: Ijasan Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Author-Name: Maurice Omane-Adjepong Author-X-Name-First: Maurice Author-X-Name-Last: Omane-Adjepong Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Title: On the global integration of REITs market returns: A multiresolution analysis Abstract: This paper explores dynamic correlation and interdependence of five global REIT markets using multivariate wavelet methods. United States, Hong Kong, Belgium, South Africa and Australia’s daily REITs returns are used as proxies for North America, Asia, Europe, Africa and the Oceania continents, respectively. Highlights from our results indicate the following: First, almost a perfect market integration at long-run periods for the REIT markets is observed. However, such strong market correlations dissipate significantly to moderate and weaker linkages at the medium, and short-run periods, thereby showing possible diversification opportunities at the latter scales. The finding also signifies that global REITs linkages increases with investment horizons. Second, an interdependent global market is found, where well-developed REITs tend to lead/lag relatively smaller or less developed market (especially Africa’s REIT) across scales. Third, there are prospects of gaining higher expected daily returns per unit of risk from Europe and Asia’s REITs than all other markets. Though not totally integrated, there exist conspicuous evidence against a segmented global REIT market. Our findings are useful for improving portfolio selection and minimising trading risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1690211 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1690211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1690211 Template-Type: ReDIF-Article 1.0 Author-Name: Huy Pham Author-X-Name-First: Huy Author-X-Name-Last: Pham Author-Name: Osama Al-Hares Author-X-Name-First: Osama Author-X-Name-Last: Al-Hares Author-Name: Vikash Ramiah Author-X-Name-First: Vikash Author-X-Name-Last: Ramiah Author-Name: Nisreen Moosa Author-X-Name-First: Nisreen Author-X-Name-Last: Moosa Title: Measuring the effect of the North Korea-U.S. summit on the South Korean stock market Abstract: We examine the effects of the North Korea-U.S. summit and related events on the South Korean stock market over the period March 2018 to June 2018. Employing the event study methodology, we estimate sectoral abnormal returns following the events surrounding the summit and conduct several robustness tests to control for market integration and firm-specific information. Furthermore, we assess how sectoral systematic risk changes following these events by using various ARCH-type models such as GARCH, TARCH, EGARCH and PARCH. The results show that the South Korean stock market was highly sensitive to these events. In particular, we find that the market was negatively affected by the news that could reduce the probability of holding the summit and vice versa. We also find that market scepticism about the summit leads to the rise of a diamond risk structure. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1690212 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1690212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1690212 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed Tanko Author-X-Name-First: Mohammed Author-X-Name-Last: Tanko Author-Name: Salifu Ismaila Author-X-Name-First: Salifu Author-X-Name-Last: Ismaila Author-Name: Saeed Abu Sadiq Author-X-Name-First: Saeed Abu Author-X-Name-Last: Sadiq Title: Planting for Food and Jobs (PFJ): A panacea for productivity and welfare of rice farmers in Northern Ghana Abstract: This research examined the effect of the Government of Ghana’s agricultural policy of Planting for Food and Jobs (PFJ) on rice farmers` productivity and welfare in Northern Ghana. The study used survey data collected from beneficiaries and non-beneficiaries of the programme who cultivated rice in 2018 production season. Respondents were randomly selected, and data analysed using empirical methods of Inverse Propensity Weighting Estimation and the Local Average Treatment Effect. The results indicate an insignificant increase in income levels from rice production, but a significant reduction in farm expenditure, an increase in per capita monthly spending and a decrease in income poverty of households. The findings reveal a positive impact of the agricultural technologies implemented under Planting for Food and Jobs programme on rice productivity and welfare of rice farmers in Northern Ghana. The research recommends the need for government to expand the beneficiaries using local media and the policy instrument of input subsidies to promote the use of fertiliser and improved rice varieties. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1693121 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1693121 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1693121 Template-Type: ReDIF-Article 1.0 Author-Name: Ziyun Zhang Author-X-Name-First: Ziyun Author-X-Name-Last: Zhang Title: Attitudes towards ambiguous information and stock returns Abstract: This study examines whether investors’ attitudes toward ambiguity can explain cross-sectional stock returns by investigating the relationship between future stock returns and option-implied volatilities as well as implied third moments. We find that investors’ attitudes toward different levels of ambiguous stocks help explain cross-sectional variations of stock returns during the 1996–2010 period in the U.S. stock market. In this study, investors’ attitudes toward ambiguity are measured by stocks’ option-implied third moments. Negative-skewed quintiles represent ambiguity aversion and vice versa. Different levels of ambiguity for stocks are distinguished by stocks’ option-implied volatility. High volatility quintiles represent stocks with high information ambiguity. Independent two-dimension sorting results show that ambiguity averters are compensated for holding stocks with higher ambiguity. Meanwhile, ambiguity-loving investors are willing to give up some returns to hold stocks with lower levels of ambiguity. The results show that both types of ambiguity attitudes increase the factor model’s explanatory power. The estimated monthly premiums for ambiguity-aversion and ambiguity-loving factors are 0.38% and 1.28%, respectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1693678 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1693678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1693678 Template-Type: ReDIF-Article 1.0 Author-Name: Courage Mlambo Author-X-Name-First: Courage Author-X-Name-Last: Mlambo Author-Name: Peter Mukarumbwa Author-X-Name-First: Peter Author-X-Name-Last: Mukarumbwa Author-Name: Ebenezer Megbowon Author-X-Name-First: Ebenezer Author-X-Name-Last: Megbowon Title: An investigation of the contribution of processed and unprocessed agricultural exports to economic growth in South Africa Abstract: The paper attempts to empirically test the contribution of unprocessed and processed agriculture of exports to economic growth in South Africa. The study used time series data which spanned from 1986 to 2012. A Johansen cointegration approach was used to test for cointegration after the unit root tests had shown that all variables were non-stationary at levels. Cointegration results showed that there was one cointegrating equation. Subsequently, a VECM was used as the estimation technique. The study found that processed agricultural exports have a positive relationship with economic growth whereas unprocessed agricultural exports have a negative relationship with economic growth. This shows that manufactured agricultural exports contribute significantly to economic growth. The study recommends that the South African government should promote and stimulate investment in the processed agricultural commodities sector. There should be more production and expansion in the manufacture agricultural commodities sector. Processed manufactured goods usually are sold at a much higher price and this may generate more income for South African firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1694234 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1694234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1694234 Template-Type: ReDIF-Article 1.0 Author-Name: Armando Elizondo-Noriega Author-X-Name-First: Armando Author-X-Name-Last: Elizondo-Noriega Author-Name: Idalia Estefania Ponce-Jaramillo Author-X-Name-First: Idalia Estefania Author-X-Name-Last: Ponce-Jaramillo Author-Name: Sonia Valeria Avilés-Sacoto Author-X-Name-First: Sonia Valeria Author-X-Name-Last: Avilés-Sacoto Author-Name: David Güemes-Castorena Author-X-Name-First: David Author-X-Name-Last: Güemes-Castorena Author-Name: Víctor G. Tercero-Gómez Author-X-Name-First: Víctor G. Author-X-Name-Last: Tercero-Gómez Author-Name: Naveen Tiruvengadam Author-X-Name-First: Naveen Author-X-Name-Last: Tiruvengadam Author-Name: Mario G. Beruvides Author-X-Name-First: Mario G. Author-X-Name-Last: Beruvides Title: A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency Abstract: For an economic system such as a nation, assessing the efforts of its constituent economic activities that are directed toward greater efficiency, which in aggregate determines the overall efficiency at the national level is important. Such an exercise provides information on which constituent economic activities are underperforming and require attention. This article presents an economic performance index called the Efficiency Effort Index (EE-Index) that measures such efforts of economic activities directed at efficiency improvement. This nonparametric, dimensionless index is computed based on a combination of Leveled-Data-Envelopment-Analysis (LDEA) and Markov Chains (MCs). LDEA compares diverse decision-making units to yield a set of efficiency scores, which are first discretized and then subjected to first-order MC treatment. The EE-Index was computed for a chosen nation and compared with that nation’s average relative efficiency (ARE) score, another performance index presented in this study, and GDP per capita. This comparison suggested that the slow growth in the chosen country’s GDP coincided with a general declining trend exhibited in the country’s efforts and aggregate efficiency achieved by these efforts, measured, respectively, by the EE-Index and the ARE-Index. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1695997 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1695997 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1695997 Template-Type: ReDIF-Article 1.0 Author-Name: Ume Salma Akbar Author-X-Name-First: Ume Salma Author-X-Name-Last: Akbar Author-Name: Suresh Kumar Oad Rajput Author-X-Name-First: Suresh Kumar Author-X-Name-Last: Oad Rajput Author-Name: Niaz Ahmed Bhutto Author-X-Name-First: Niaz Ahmed Author-X-Name-Last: Bhutto Title: Do investors herd with industries or markets? Evidence from Pakistan stock exchange Abstract: This study investigates investors’ herd behavior at market and industry level in Pakistan stock exchange (PSX). The novel contribution of this study is the incorporation of stock trading volume to explore the herding behavior laterally with daily stock returns. Using daily observations of the stock trading volume and stock closing prices of 254 firms listed on PSX for the period January 2000 - December 2014. Our empirical results found stock trading volume is the more robust predictor of herding than stock returns by employing ordinary least square method for cross-sectional absolute deviation (CSAD). Findings under stock returns indicate herding in eight industries at the industry level and in only one industry at market level. However, stock trading volume significantly predicts herding for 5 out of 11 industries both at industry and market level. This study recommends investor to focus more on daily trading volume than daily stock returns to devise their trading strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1698089 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698089 Template-Type: ReDIF-Article 1.0 Author-Name: Priviledge Cheteni Author-X-Name-First: Priviledge Author-X-Name-Last: Cheteni Title: Explaining levels of between-group and within-group inequality and poverty in South Africa Abstract: Most research on poverty has focused on causes of poverty and the inequality gap nationally, meanwhile increasing levels of inequality and poverty has actual occurred within population groups. This study focuses on the sources and extent of within-groups (intragroup; blacks African against each other) and between-groups (intergroup; whites, Indians, coloured and black Africans) inequality and poverty which varies more widely today than over the past decade. To achieve this, two harmonised General Household Surveys from 2012 and 2017 were utilised. The study found that poverty was mainly within-groups, yet, inequality was between-groups. Thus, more efforts should be directed in reducing poverty amongst black Africans within sub groups or tribal lines. Furthermore, income sources from agriculture and pension were the more elastic income components, suggesting that any changes in these two has the likelihood of worsening or reducing inequality. The study recommends that the government should focus on ways of boosting agricultural employment and social grants distribution. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1698266 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698266 Template-Type: ReDIF-Article 1.0 Author-Name: Najib Shrydeh Author-X-Name-First: Najib Author-X-Name-Last: Shrydeh Author-Name: Mohammed Shahateet Author-X-Name-First: Mohammed Author-X-Name-Last: Shahateet Author-Name: Suleiman Mohammad Author-X-Name-First: Suleiman Author-X-Name-Last: Mohammad Author-Name: Mohammed Sumadi Author-X-Name-First: Mohammed Author-X-Name-Last: Sumadi Title: The hedging effectiveness of gold against US stocks in a post-financial crisis era Abstract: Purpose—The purpose of this paper is to examine the transmission mechanisms and dynamic spillover effects between gold spot prices and US equity prices following the 2007 Global Financial Crisis. It also aims at estimating hedging effectiveness between stocks and gold in major US financial market. Design/methodology/approach—There is large agreement in the literature that gold exhibits the main requirements to qualify as a risk-mitigating instrument against changes in stock prices and other market variables. To test the validity of this conception, this study applies a VAR-ADCC-BVGARCH model for 2,870 daily observations of US financial market during 2007–2017. Findings—The results suggest that the hedging effectiveness of gold against US stocks tends to diminish as stock market capitalization increases, implying that a marginal level of risk exposure is mitigated considering the relatively high proportion of funds that need to be invested in gold against stocks. Originality/value—The real economy is heavily influenced by financial markets, the implications of which are imperative for investors, policy makers and portfolio managers. The key findings of this study are critical in formulating optimal hedging strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1698268 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698268 Template-Type: ReDIF-Article 1.0 Author-Name: Sure Mataramvura Author-X-Name-First: Sure Author-X-Name-Last: Mataramvura Title: An optimal reinsurance management and dividend payout strategy when the insurer’s reserve is an Ito–Levy process Abstract: We solve the problem of an insurer who decides to optimally allocate a proportion (1—a(t)) of premiums to a re-insurance company (thereby retaining a proportion a(t) of premiums) and who also has to optimally pay dividends c(t) at any time t to shareholders. If the insurer’s reserve x(t) is a given Ito–Levy process and the shareholders' preferences are given by a general constant relative risk aversion utility function, we set the problem as a stochastic control problem and solve the resulting HJB equation. Results are discussed in detail and show that it is optimal that premiums and dividends be directly proportional to the reserve. High premium lead to high reserves which in turn leads to high premium payouts. This paper contributes to the rich area of stochastic control and also it helps insurers whose reserves can be modelled, to make technical decisions of how to charge premiums, reinsure liabilities and pay dividends to shareholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1698939 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698939 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698939 Template-Type: ReDIF-Article 1.0 Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Author-Name: Thi Kim Huong Chu Author-X-Name-First: Thi Kim Huong Author-X-Name-Last: Chu Title: Do foreign shareholders improve corporate earnings quality in emerging markets? Evidence from Vietnam Abstract: Employing a panel dataset of Vietnamese non-financial listed firms, we find that firms with greater foreign shareholdings are aligned with higher quality of financial disclosure. More specially, we find that greater foreign shareholdings are associated with (i) lower earnings management; (ii) more persistent earnings; and (iii) higher informative earnings. On the ground that foreign investors in Vietnam equity market are dominated by institutional investors, the finding from this study supports the spillover hypothesis. This suggests that foreign institutional shareholders with extensive management skills might have ability to assist their invested firms in improving quality of reported earnings. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1698940 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698940 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698940 Template-Type: ReDIF-Article 1.0 Author-Name: Subramania Raju Rajasulochana Author-X-Name-First: Subramania Raju Author-X-Name-Last: Rajasulochana Author-Name: Savitha Heggede Author-X-Name-First: Savitha Author-X-Name-Last: Heggede Author-Name: Aditya Mohan Jadhav Author-X-Name-First: Aditya Mohan Author-X-Name-Last: Jadhav Title: Student-managed investment course: A learner-centric approach to investment management Abstract: While there has been a rapid growth of business and management schools in India since 1990, the curricula, teaching methods and the mode of delivery largely remain an instructor-led approach overlooking the needs of learners and potential employers. This paper presents a learner-centric investment management course known as Student-Managed Investment Course (hereafter, SMIC). It elucidates the structure, design and implementation of SMIC based on the principles of experiential learning. SMIC has been organised to create a conducive environment for the emergence of varied experiences and encourage reflections among students on the theory and practice of investment finance. The unique feature of the course is real-time exposure to investment activity in the Bombay Stock exchange/National Stock exchange, which helps students observe and grasp the nuances of capital market functioning and to acquire requisite skills for financial decision-making. This document on SMIC has a value in being a useful guide for other business schools in India for adopting a learner-centric approach to investment management. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1699390 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1699390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1699390 Template-Type: ReDIF-Article 1.0 Author-Name: S.C. Thushara Author-X-Name-First: S.C. Author-X-Name-Last: Thushara Author-Name: Jen-Je Su Author-X-Name-First: Jen-Je Author-X-Name-Last: Su Author-Name: Jayatilleke S. Bandara Author-X-Name-First: Jayatilleke S. Author-X-Name-Last: Bandara Title: Forecasting international tourist arrivals in formulating tourism strategies and planning: The case of Sri Lanka Abstract: In some developing countries, tourism-led growth strategy has been used to accelerate growth, generate employment opportunities and increase foreign exchange earnings. To maximise benefits from the tourism industry, appropriate policy decisions, infrastructure development and conducive business environments need to be developed. For that, accurate forecasting of international arrivals is vital. Tourism has been identified, as a driving force of post-war economic development in Sri Lanka. The main purpose of this study is to develop accurate forecasting models for total international arrivals in Sri Lanka and its top 10 source countries using SARIMA method. Monthly data from January 1984 to December 2016 were used as the training sample and data from January 2017 to December 2017 were used to evaluate the accuracy of the selected models. Results demonstrate that (a) achieving Sri Lankan Government’s forecast of four million tourist arrivals by 2020 is highly unlikely, (b) accurate forecasting is necessary for tourism strategies and planning, and (c) the SARIMA method provides accurate forecasts in the presence of seasonality. Finally, the findings in this study will be useful for government agencies and private establishments in the industry in their policymaking, designing promotional campaigns, and planning infrastructure. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1699884 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1699884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1699884 Template-Type: ReDIF-Article 1.0 Author-Name: Ibrahim Nandom Yakubu Author-X-Name-First: Ibrahim Nandom Author-X-Name-Last: Yakubu Title: Does corruption grease or sand the wheels of bank profitability in Ghana? Abstract: This paper investigates the effect of corruption on bank profitability in Ghana using bank-level dataset spanning 2008 to 2017. By employing the system Generalized Method of Moments (GMM) technique, the study finds a significant negative relationship between corruption and bank profitability. This supports the “sand the wheels” view on corruption and controverts the “grease the wheels” view, which hypothesizes that corruption boost firm performance. Controlling for bank-specific and macroeconomic factors, the findings further reveal that, while bank size, capital adequacy, and inflation have a significant positive effect on profitability, management efficiency and monetary policy rate negatively and significantly drive bank profits. The study discusses key implications for policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1701909 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1701909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1701909 Template-Type: ReDIF-Article 1.0 Author-Name: Eero Pätäri Author-X-Name-First: Eero Author-X-Name-Last: Pätäri Author-Name: Sheraz Ahmed Author-X-Name-First: Sheraz Author-X-Name-Last: Ahmed Author-Name: Elena John Author-X-Name-First: Elena Author-X-Name-Last: John Author-Name: Ville Karell Author-X-Name-First: Ville Author-X-Name-Last: Karell Title: The changing role of emerging and frontier markets in global portfolio diversification Abstract: Although the literature on the benefits of diversifying equity portfolios to emerging markets is abundant, the role of frontier markets in global equity portfolio diversification is clearly less examined. We contribute to the existing literature by examining three different, though closely related, spillover effects (i.e., return, shock and volatility spillovers) between developed, emerging and frontier markets over the period from June 2002 to December 2016. We also investigate the time-variability in the cross-market correlations within the same period. Moreover, we divide the full-sample period into two sub-periods to find out how the intensity of integration of emerging and frontier markets with three developed equity markets (represented by the US, European and Japanese stock markets) has changed or varied during the sample period. Based on both correlation analysis and the VAR(1)–BEKK-GARCH(1,1) model, the global financial crisis and the Euro-zone crisis 2009–2012 have changed the interlinkages between developed and developing markets, as well as those between emerging and frontier markets. The results show that after the global financial crisis, particularly frontier markets have become more integrated with the developed markets, whereas in case of emerging markets, the same tendency has taken place already before the financial crisis. The increased cross-market integration has important practical implications for risk management of global equity portfolios. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1701910 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1701910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1701910 Template-Type: ReDIF-Article 1.0 Author-Name: Sahar Hassan Khayat Author-X-Name-First: Sahar Author-X-Name-Last: Hassan Khayat Title: A gravity model analysis for trade between the GCC and developed countries Abstract: The study aimed to empirically analyse GCC’s trade patterns based on the gravity model. Gravity model is derived from physics and is used to explain the bilateral flow of trade determined by GDP per capita, population, and distance. It is assumed that trade flow between the two countries is positively related to their economic size and population. The gravity model has been analysed in six developed countries concerning trade with GCC countries from 2001 to 2012. The study concluded that GDP per capita and population for GCC and destination countries was significant. It also suggests that the trade barriers among the countries must be eradicated for better trade flow. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1703440 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1703440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1703440 Template-Type: ReDIF-Article 1.0 Author-Name: Suné Ferreira Author-X-Name-First: Suné Author-X-Name-Last: Ferreira Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Title: A conceptual model of operational risk events in the banking sector Abstract: Operational risk constitutes a large portion of a bank’s risk exposure. Unlike other financial risks, operational risk is classified as a pure risk (only an opportunity of a loss), as it always leads to a financial loss for a bank. The failure to mitigate and manage operational risk effectively during past operational risk events has led to the demise of several banks and other financial institutions. Operational risk has the possibility to lead to other bank risk and to influence the perceptions of the banks’ main stakeholder group i.e. depositors. The rationale behind profiling depositors’ behaviour during operational risk events will contribute toward constructing a revolutionised risk management model. A better indication of how depositors react during operational risk events may lead to better prediction of withdrawal risk within banks. Primary data was collected from 417 depositors in Gauteng, South Africa, using a self-structured questionnaire. Statistical techniques such as correlation and `significance tests were used in the statistical analysis. A positive relationship was found between depositor likelihood to withdraw during operational risk events for two of the three variables; bank perceptive and behavioural finance biases. A negative relationship was found between depositor’s likelihood to withdraw and their risk tolerance level. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1706394 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1706394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1706394 Template-Type: ReDIF-Article 1.0 Author-Name: Aaron Alesane Author-X-Name-First: Aaron Author-X-Name-Last: Alesane Author-Name: Kamaldeen Yussif Author-X-Name-First: Kamaldeen Author-X-Name-Last: Yussif Author-Name: Benjamin Tetteh Anang Author-X-Name-First: Benjamin Author-X-Name-Last: Tetteh Anang Title: Determinants of Village Savings and Loans Association membership and savings amounts in Awutu Senya West District of Ghana Abstract: At the macro level, savings mobilization plays an important role in economic growth and development whilst at the micro household level it plays a critical role in production, consumption and investment decisions. However, savings mobilization in many developing countries remains low which calls for further research and insight into the savings behaviour of the poor and ways to encourage rural savings. This study therefore investigates the factors influencing the decision to join Village Savings and Loans Association (VSLA) in Awutu Senya West District of Ghana and the resulting amounts saved. Using a cross-sectional design and a linear regression with endogenous treatment-effects model, the study indicated that the propensity to join VSLA was positively related to household size and respondent being male but was negatively associated with respondent’s age and educational status. Also, absolute amount saved increased with respondent’s age, education and amount of current loan. In general, absolute savings amounts were very low. The estimated average treatment effect of VSLA membership on savings indicated that belonging to a VSLA increased the savings of members by GH¢ 268. Thus, VSLAs can be used as channels to deepen financial inclusion and savings mobilization among the rural poor to promote the growth of the rural economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1707004 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1707004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1707004 Template-Type: ReDIF-Article 1.0 Author-Name: Shreya Biswas Author-X-Name-First: Shreya Author-X-Name-Last: Biswas Title: Understanding the small-world nature of board network in India Abstract: The study analyzes the small-world nature of the board interlock network for National Stock Exchange–listed firms in India. The small world is the notion that each firm can reach any other firm in the network through a small number of intermediate firms. We find that since the introduction of corporate governance regulations in India, the small worldliness of the network has increased, indicating the concentration of directorial positions in the hands of few elites in the country. The small-world nature of the network can be attributed to the presence of few linchpins in the network and the majority of the linchpins are business group firms in the country. The linchpin acts as a bridge between otherwise sparsely connected clusters in the network. The firms that act as linchpins have higher profitability on account of access to a larger pool of resources. Journal: Cogent Economics & Finance Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/23322039.2019.1710424 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1710424 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1710424 Template-Type: ReDIF-Article 1.0 Author-Name: Inyong Shin Author-X-Name-First: Inyong Author-X-Name-Last: Shin Title: Change and prediction of income and fertility rates across countries Abstract: This paper analyzes and predicts the changes of relationship between income and fertility rate of cross-countries using a bivariate mixture model and a latent change score model. This paper has shown that there is a negative relationship between income and fertility rate, which is presented in the form of inverted S-shaped curve which shows the three regimes of demographic transition. Some developed countries have completed their demographic transition in fertility rate, and in developing countries, the demographic transition in fertility rate is still in progress. This paper has also shown that the number of peaks of income distribution has increased in recent years comparing to 1960s and the number won’t decrease in the future. However, the number of peaks of fertility rate distribution hasn’t changed from 1960s to recent years but due to the shift, finally, the distribution will change to a uni-modal distribution in the future. The income will be applied to the conditional convergence and the fertility rate will be applied to the absolute convergence. The fertility gap among cross-countries will disappear, but the income gap won’t. Although the population conditions in developing countries will improve, income inequality in cross-country may not be improved after all. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1119367 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1119367 Template-Type: ReDIF-Article 1.0 Author-Name: Aloui Mouna Author-X-Name-First: Aloui Author-X-Name-Last: Mouna Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Title: Market, interest rate, and exchange rate risk effects on financial stock returns during the financial crisis: AGARCH-M approach Abstract: Our aim is to investigate the sensitivity of financial sector stock returns to market, interest rate, and exchange rate risk in three financial sectors (financial services, banking, and insurance) in eight countries, including various European, the US, and China economies, over the period 2006–2009 during the financial crisis. The econometric framework is a four-variate GARCH-in-mean model and volatility spillovers. The empirical results show the significant effects (positive and negative, respectively) of the stock market returns, interest rate, and exchange rate volatility of the financial sector during the crisis. Besides, we find, in most cases, significant (positive and negative, respectively) volatility spillovers from market return, interest rate, exchange rate, and interest rate in the financial services and the banking sector both in the European and the US economies during the financial crisis. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1125332 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1125332 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1125332 Template-Type: ReDIF-Article 1.0 Author-Name: Sanjaya Kumar Lenka Author-X-Name-First: Sanjaya Kumar Author-X-Name-Last: Lenka Author-Name: Arun Kumar Bairwa Author-X-Name-First: Arun Kumar Author-X-Name-Last: Bairwa Title: Does financial inclusion affect monetary policy in SAARC countries? Abstract: Alike the role of heart for human body, finance is the focal point of an economy, whereas savings and investment are its tubes and vessels. Hence, a solid financial system is a fundamental character of an enduring economy. The frozen financial system endures longer if its foundation is concrete and subsists in the people of grass-root level. They are those, who live in villages and small towns, earn meager income, work in primary sector, spend more on food, and have lesser social securities. In this setting, the process of bringing these people into the main stream of financial activities is called financial inclusion. This study describes the impact of financial inclusion on monetary policy of South Asian Association for Regional Cooperation (SAARC) countries from 2004–2013. The study uses principal component analysis (PCA) to construct a Financial Inclusion Index that serves as a proxy variable for the accessibility of financial inclusion in the SAARC countries. Adding to it, three different models like FEM, REM, and Panel-corrected standard errors are used for the analysis. In this study, an empirical result of generalized least square(GLS) estimation shows that financial inclusion, exchange rate, and interest rate are negatively associated with inflation in SAARC countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1127011 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1127011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1127011 Template-Type: ReDIF-Article 1.0 Author-Name: John Robst Author-X-Name-First: John Author-X-Name-Last: Robst Author-Name: Jennifer VanGilder Author-X-Name-First: Jennifer Author-X-Name-Last: VanGilder Title: The relationship between faculty characteristics and the use of norm- and criteria-based grading Abstract: Norm-based grading has been associated with a reduction in student incentives to learn. Thus, it is important to understand faculty incentives for using norm-based grading. This paper used two waves of the National Study of Postsecondary Faculty to examine faculty characteristics related to the use of norm-based grading. Results suggest that norm-based grading is more likely when faculty and departments are more research oriented. Faculty who are at lower rank, male, younger, in science and social science departments are more likely to use norm-based grading, while faculty who feel that teaching should be the primary promotion criterion use criteria-based grading. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1127746 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1127746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1127746 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Surajo Sanusi Author-X-Name-First: Muhammad Surajo Author-X-Name-Last: Sanusi Author-Name: Farooq Ahmad Author-X-Name-First: Farooq Author-X-Name-Last: Ahmad Title: An analysis of seasonality fluctuations in the oil and gas stock returns Abstract: This paper investigates the existence of seasonality anomalies in the stock returns of the oil and gas companies on the London Stock Exchange. It employs F-test, Kruskal–Wallis and Tukey tests to examine days-of-the-week effect. Generalised autoregressive conditional heteroscedasticity specification was also employed to investigate both the days-of-the-week and months-of-the-year effects. The analysis had been extended to some key FTSE indices. Our results showed no evidence of any regularity or seasonal fluctuation in the oil and gas stock returns despite the seasonal changes of demand in the companies’ products. However, January effect has been observed in FTSE All Share and FTSE 100 indices. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1128133 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1128133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1128133 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Ali Nasir Author-X-Name-First: Muhammad Ali Author-X-Name-Last: Nasir Author-Name: Milton Yago Author-X-Name-First: Milton Author-X-Name-Last: Yago Author-Name: Alaa M. Soliman Author-X-Name-First: Alaa M. Author-X-Name-Last: Soliman Author-Name: Junjie Wu Author-X-Name-First: Junjie Author-X-Name-Last: Wu Title: Financial stability, wealth effects and optimal macroeconomic policy combination in the United Kingdom: A new-Keynesian dynamic stochastic general equilibrium framework Abstract: This study derives an optimal macroeconomic policy combination for financial sector stability in the United Kingdom by employing a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) framework. The empirical results obtained show that disciplined fiscal and accommodative monetary policies stance is optimal for financial sector stability. Furthermore, fiscal indiscipline countered by contractionary monetary stance adversely affects financial sector stability. Financial markets, e.g. stocks and Gilts show a short-term asymmetric response to macroeconomic policy interaction and to each other. The asymmetry is a reflection of portfolio adjustment. However in the long-run, the responses to suggested optimal policy combination had homogenous effects and there was evidence of co-movement in the stock and Gilt markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2015.1136098 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1136098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1136098 Template-Type: ReDIF-Article 1.0 Author-Name: Gurudeo Anand Tularam Author-X-Name-First: Gurudeo Anand Author-X-Name-Last: Tularam Author-Name: Rajibur Reza Author-X-Name-First: Rajibur Author-X-Name-Last: Reza Title: Water exchange traded funds: A study on idiosyncratic risk using Markov switching analysis Abstract: We investigate the relationship between idiosyncratic risk and return among four water exchange traded funds—PowerShares Water Resources Portfolio, Power Shares Global Water, First Trust ISE Water Index Fund, and Guggenheim S&P Global Water Index ETF using the Markov switching model for the period 2007–2015. The generated transition probabilities in this paper show that there is a high and low probability of switching between Regimes 1 and 3, respectively. Moreover, we find that the idiosyncratic risk for most of the exchange traded funds move from low volatility (Regime 2) to very low volatility (Regime 1 and 3). Our study also identify that the beta coefficients are positive and entire values are less than 1. Thus, it seems that water investment has a lower systematic risk and a positive effect on the water exchange traded index funds returns during different regimes. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1139437 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1139437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1139437 Template-Type: ReDIF-Article 1.0 Author-Name: Riccardo Ferretti Author-X-Name-First: Riccardo Author-X-Name-Last: Ferretti Author-Name: Andrea Cipollini Author-X-Name-First: Andrea Author-X-Name-Last: Cipollini Author-Name: Francesco Pattarin Author-X-Name-First: Francesco Author-X-Name-Last: Pattarin Title: Can an unglamorous non-event affect prices? The role of newspapers Abstract: Our paper offers evidence that the print media can affect stock prices by covering public information. After price-to-book value figures of Italian listed shares were first published on the major national financial newspaper, the prices of value stocks did, on average, show a positive reaction. The price reaction was limited to small caps stocks and disappeared within three weeks. Over the period of analysis, we could not find any abnormal behaviour of the returns of small and value stocks on other European markets. These findings support the view that newspapers play a role in disseminating information to small investors and grabbing their attention, even if news are continuously realeased by faster and more sophisticated media. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1142847 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1142847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1142847 Template-Type: ReDIF-Article 1.0 Author-Name: B.C. Okoye Author-X-Name-First: B.C. Author-X-Name-Last: Okoye Author-Name: A. Abass Author-X-Name-First: A. Author-X-Name-Last: Abass Author-Name: B. Bachwenkizi Author-X-Name-First: B. Author-X-Name-Last: Bachwenkizi Author-Name: G. Asumugha Author-X-Name-First: G. Author-X-Name-Last: Asumugha Author-Name: B. Alenkhe Author-X-Name-First: B. Author-X-Name-Last: Alenkhe Author-Name: R. Ranaivoson Author-X-Name-First: R. Author-X-Name-Last: Ranaivoson Author-Name: R. Randrianarivelo Author-X-Name-First: R. Author-X-Name-Last: Randrianarivelo Author-Name: N. Rabemanantsoa Author-X-Name-First: N. Author-X-Name-Last: Rabemanantsoa Author-Name: I. Ralimanana Author-X-Name-First: I. Author-X-Name-Last: Ralimanana Title: Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach Abstract: This study employed the Cobb–Douglas stochastic frontier production function to measure the level of technical efficiency among smallholder cassava farmers in Central Madagascar. A multi-stage random sampling technique was used to select 180 cassava farmers in the region and from this sample, input–output data were obtained using the cost route approach. The parameters of the stochastic frontier production function were estimated using the maximum likelihood method. The results of the analysis showed that individual farm-level technical efficiency was about 79%. The study found education, gender and age to be indirectly and significantly related to technical efficiency at a 1% level of probability, and to household size at a 5% level. The coefficient for occupational status was positive and highly significant at a 1% level. The results show that the study’s cassava farmers are not fully technically efficient, showing a mean score of .79%, and suggesting that opportunities still exist for increasing efficiency among the farmers. There is a need, therefore, to ensure that these farmers have access to the appropriate inputs, especially land and capital. The results also call for land reform policies to be introduced, aimed at making more land available, especially to the younger and full-time female farmers. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1143345 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1143345 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1143345 Template-Type: ReDIF-Article 1.0 Author-Name: B.C. Okoye Author-X-Name-First: B.C. Author-X-Name-Last: Okoye Author-Name: A. Abass Author-X-Name-First: A. Author-X-Name-Last: Abass Author-Name: B. Bachwenkizi Author-X-Name-First: B. Author-X-Name-Last: Bachwenkizi Author-Name: G. Asumugha Author-X-Name-First: G. Author-X-Name-Last: Asumugha Author-Name: B. Alenkhe Author-X-Name-First: B. Author-X-Name-Last: Alenkhe Author-Name: R. Ranaivoson Author-X-Name-First: R. Author-X-Name-Last: Ranaivoson Author-Name: R. Randrianarivelo Author-X-Name-First: R. Author-X-Name-Last: Randrianarivelo Author-Name: N. Rabemanantsoa Author-X-Name-First: N. Author-X-Name-Last: Rabemanantsoa Author-Name: I. Ralimanana Author-X-Name-First: I. Author-X-Name-Last: Ralimanana Title: Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar Abstract: High transaction costs deter entry of small farmers into the market. With the data from 240 smallholder cassava farmers in Central Madagascar, this study identified strategies to promote successful smallholder commercialization. The coefficients for membership of cooperatives, native of community and farming experience, have a direct relationship with decision to participate in the market and which is significant at 1% level and road condition to the nearest town is good at 10% level. The coefficients for age, distance to the nearest town and distance from the farm to the market have an indirect relationship with decision to participate in the market and significant at 5, 10 and 1% levels, respectively. The results also show that the coefficients for personal means of transportation and marketing experience have a direct relationship with decision to sell cassava off-farm and at 10 and 1% level of significance, respectively, while distance to the nearest town and distance from the farm to the market had an indirect relationship with decision to sell off-farm at 5% level of significance each and cost of transportation at 1% level. The study raises policy issues which might reduce these transaction costs by providing more market outlets, better rural infrastructure and also bulking centres. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1143597 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1143597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1143597 Template-Type: ReDIF-Article 1.0 Author-Name: D. Balios Author-X-Name-First: D. Author-X-Name-Last: Balios Author-Name: N. Daskalakis Author-X-Name-First: N. Author-X-Name-Last: Daskalakis Author-Name: N. Eriotis Author-X-Name-First: N. Author-X-Name-Last: Eriotis Author-Name: D. Vasiliou Author-X-Name-First: D. Author-X-Name-Last: Vasiliou Title: SMEs capital structure determinants during severe economic crisis: The case of Greece Abstract: The objective of this paper was to explore whether and how the main capital structure determinants of SMEs affected capital structure determination in different ways during the years of economic crisis. We used panel data of 8,052 SMEs operating in Greece during 2009–2012. We found that the effect of capital structure determinants on leverage does not change in an environment of economic crisis; larger SMEs continued to show higher debt ratios, the relationship between profitability and tangibility of assets with leverage continued to be negative, and growth was positively related to leverage. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1145535 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1145535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1145535 Template-Type: ReDIF-Article 1.0 Author-Name: Winston Moore Author-X-Name-First: Winston Author-X-Name-Last: Moore Author-Name: Jeremy Stephen Author-X-Name-First: Jeremy Author-X-Name-Last: Stephen Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Should cryptocurrencies be included in the portfolio of international reserves held by central banks? Abstract: In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible that the use of these cryptocurrencies might expand in the future. This paper therefore examines the potential role of digital currency balances as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset-base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1147119 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1147119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1147119 Template-Type: ReDIF-Article 1.0 Author-Name: D.O. Olayungbo Author-X-Name-First: D.O. Author-X-Name-Last: Olayungbo Author-Name: A.E. Akinlo Author-X-Name-First: A.E. Author-X-Name-Last: Akinlo Title: Insurance penetration and economic growth in Africa: Dynamic effects analysis using Bayesian TVP-VAR approach Abstract: This paper examines the dynamic interactions between insurance and economic growth in eight African countries for the period of 1970–2013. Insurance demand is measured by insurance penetration which accounts for income differences across the sample countries. A Bayesian Time Varying Parameter Vector Auto regression (TVP-VAR) model with stochastic volatility is used to analyze the short run and the long run among the variables of interest. Using insurance penetration as a measure of insurance to economic growth, we find positive relationship for Egypt, while short-run negative and long-run positive effects are found for Kenya, Mauritius, and South Africa. On the contrary, negative effects are found for Algeria, Nigeria, Tunisia, and Zimbabwe. Implementation of sound financial reforms and wide insurance coverage are proposed recommendations for insurance development in the selected African countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1150390 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150390 Template-Type: ReDIF-Article 1.0 Author-Name: Siala Bouaziz Souha Author-X-Name-First: Siala Bouaziz Author-X-Name-Last: Souha Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Corporate governance and firm characteristics as explanatory factors of shareholder activism: Validation through the French context Abstract: This study deals with the major determinants of company shareholder activism investigated with according to a set of SBF 120 listed firms. Based on a sample of 77 companies, observed over the period 2008–2012, we are led to conclude that some firm governance characteristics do appear to affect shareholding activism. In addition, it has been revealed that the presence of institutional investors, ownership concentration, leaders’ presence in the capital, control structure, leadership change, firm growth as well as leverage level appear to have a significant influence on the probability of activism to take place. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1150407 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150407 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150407 Template-Type: ReDIF-Article 1.0 Author-Name: Senior Editors Author-X-Name-First: Senior Author-X-Name-Last: Editors Title: Acknowledgement of Reviewers Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1150669 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150669 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Determinants of the ZAR/USD exchange rate and policy implications: A simultaneous-equation model Abstract: This paper examines the determinants of the South African rand/US dollar (ZAR/USD) exchange rate based on demand and supply analysis. Applying the EGARCH method, the paper finds that the ZAR/USD exchange rate is positively associated with the South African government bond yield, US real GDP, the US stock price and the South African inflation rate and negatively influenced by the 10-year US government bond yield, South African real GDP, the South African stock price, and the US inflation rate. The adoption of a free floating exchange rate regime has reduced the value of the rand vs. the US dollar. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1151131 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1151131 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1151131 Template-Type: ReDIF-Article 1.0 Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Author-Name: Vudayagi Balasubramanyam Author-X-Name-First: Vudayagi Author-X-Name-Last: Balasubramanyam Title: Assessing students: Real-world analyses underpinned by economic theory Abstract: Having highlighted the importance of designing assessments for university economics students that link technical material with practical applications, the paper outlines three such assessments that have been successfully applied with postgraduate and third year undergraduate-level students. The assessments ask students to use their knowledge of economic theories and empirical analyses to propose and debate policy positions or to analyse the strategy decisions of real firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1151171 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1151171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1151171 Template-Type: ReDIF-Article 1.0 Author-Name: Steve Cook Author-X-Name-First: Steve Author-X-Name-Last: Cook Title: Modern econometrics: Structuring delivery and assessment Abstract: This paper provides a discussion of a recently introduced final-year econometrics module designed to capture methodological debates, advances in technology and increased data availability via a structure emphasising the practical nature of econometrics. The justification for the provision of such a module is presented clearly, with further support for its proposal from the broader educational literature provided also. Evaluation of the module shows its success in terms of student satisfaction, student learning and progress and staff satisfaction. Consequently, it is suggested that colleagues should be encouraged to develop similar modules emphasising the relevance of the material they cover in a topical manner exploiting all available technological resources as appropriate. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1152705 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1152705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1152705 Template-Type: ReDIF-Article 1.0 Author-Name: Cosimo Magazzino Author-X-Name-First: Cosimo Author-X-Name-Last: Magazzino Title: The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach Abstract: This paper examines the relationship among real GDP, CO2 emissions, and energy use in the six Gulf Cooperation Council (GCC) countries. Using annual data for the years 1960–2013, stationarity, structural breaks, and cointegration tests have been conducted. The empirical evidence strongly supports the presence of unit roots. Cointegration tests reveal the existence of a clear long-run relationship only for Oman. Granger causality analysis shows that for three GCC countries (Kuwait, Oman, and Qatar) the predominance of the “growth hypothesis” emerges, since energy use drives the real GDP. Moreover, only for Saudi Arabia a clear long-run relation has not been discovered. Finally, the results of the variance decompositions and impulse response functions broadly confirm our previous empirical findings. Our results significantly reject the assumption that energy is neutral for growth. Notwithstanding, since the causality results are different for the six GCC countries, unified energy policies would not be the good recipe for the whole area. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1152729 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1152729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1152729 Template-Type: ReDIF-Article 1.0 Author-Name: Chinazaekpere Nwani Author-X-Name-First: Chinazaekpere Author-X-Name-Last: Nwani Author-Name: Jacob Bassey Orie Author-X-Name-First: Jacob Author-X-Name-Last: Bassey Orie Title: Economic growth in oil-exporting countries: Do stock market and banking sector development matter? Evidence from Nigeria Abstract: This study empirically examines the independent effects of stock market and banking sector development on economic growth in Nigeria over the period 1981–2014 using the autoregressive distributed lag (ARDL) approach to co-integration analysis. Controlling for the possible effects of crude oil price and trade openness on economic activities in Nigeria, this study found both stock market and banking sector development insignificant in influencing economic growth in Nigeria. In general, the results highlight the weakness of the Nigerian financial sector in stimulating economic growth through resource mobilisation and allocation and the dominant role of the oil sector in economic activities in Nigeria. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1153872 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1153872 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1153872 Template-Type: ReDIF-Article 1.0 Author-Name: Duncan Watson Author-X-Name-First: Duncan Author-X-Name-Last: Watson Author-Name: Louise Parker Author-X-Name-First: Louise Author-X-Name-Last: Parker Title: The hullaballoo over e-learning? Technology and pluralism in economics Abstract: E-learning vs. face-to-face delivery: this binary opposition has governed much of the existing pedagogical research concerning technological innovation, as educationists are pressured to prioritise efficiency and the cost-effectiveness of traditional teaching methods. This paper rejects such a false dichotomy, proffering the alternative that can be found in blended learning methods. It is through the meticulous splicing of e-learning and traditional lectures that the individual economics lecturer is freed to deliver a pluralist perspective. “Contest and controversy; orthodoxy and heterodoxy; critique and reject”: technology provides the vehicle for economics education to break free of the constraints of monist teaching methods and ensures that economics students can fully engage in the discipline’s vibrant debates. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1159813 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1159813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1159813 Template-Type: ReDIF-Article 1.0 Author-Name: Serge Svizzero Author-X-Name-First: Serge Author-X-Name-Last: Svizzero Author-Name: Clement A. Tisdell Author-X-Name-First: Clement A. Author-X-Name-Last: Tisdell Author-Name: Duncan Watson Author-X-Name-First: Duncan Author-X-Name-Last: Watson Title: Economic evolution, diversity of societies and stages of economic development: A critique of theories applied to hunters and gatherers and their successors Abstract: Theories of the economic evolution of societies and their diversity are critically examined, paying particular attention to the evolution of hunter-gatherer societies. An interdisciplinary approach drawing on anthropology and economics is adopted. Currently, three main stereotypes of the nature of hunter-gatherer societies exist. While these indicate that they were diverse, they fail to capture the full extent of their diversity. It is argued that this diversity increased with the passage of time and was shaped by the varied local eco-geographic conditions in which these societies evolved. This raises the question of whether this development had the same basis as speciation in the biological theory of natural selection. This is discussed and then particular attention is given to Adam Smith’s vision of the economic evolution of human societies. In conclusion, it is hypothesized that the evolutionary path of modern economies and societies has diverged from that of prehistoric societies—they have become less diverse. Modern societies may also have become more ultrasocial, a process which accelerated following the commencement of agriculture. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1161322 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1161322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1161322 Template-Type: ReDIF-Article 1.0 Author-Name: Sahar Loukil Author-X-Name-First: Sahar Author-X-Name-Last: Loukil Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: Empirical determinants of relationship lending Abstract: We study the determinants of the incidence of relationship lending. For our study, we combine established insights from the study of Elsas with empirical banking relationship lending literature. We relate loan contract and borrower characteristics to self-assessments of Tunisian banks with respect to the existence of close relationship. Using detailed loan contract information from Tunisian banks and a questionnaire addressed to loan officers, we report the first comprehensive evidence on the development of relationship lending. We find that access to information, the ability to influence the manager, and the solvency of the company are relevant factors. While the exclusivity and the duration of the relationship, classic measures of the existence of close ties with the bank, are not determining factors. So these proxy measures should be used with caution in future empirical works. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1163773 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1163773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1163773 Template-Type: ReDIF-Article 1.0 Author-Name: Bruce Morley Author-X-Name-First: Bruce Author-X-Name-Last: Morley Title: Teaching empirical finance courses: A project on portfolio management Abstract: The aim of this article was to assess the use of a group-based project for an empirical finance type of course. It examines the outline of the project, the methodology the students are encouraged to follow and how the course is assessed. This approach enables the students to apply many of the techniques learnt on this course and other courses such as econometrics, to determine an optimal portfolio of assets given their view on the risks in the economy. The emphasis is on risk management through portfolio diversification and the use of a simple hedge strategy. The overall aim was to introduce the students to the basics of portfolio management, as many work in this industry for their industrial placements and when they graduate. The main contribution to the literature is through the analysis of an empirically based portfolio management project. The feedback from the students suggests they felt that they had learnt useful concepts and information, in an enjoyable exercise. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1167157 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1167157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1167157 Template-Type: ReDIF-Article 1.0 Author-Name: Salvatore J. Terregrossa Author-X-Name-First: Salvatore J. Author-X-Name-Last: Terregrossa Author-Name: Veysel Eraslan Author-X-Name-First: Veysel Author-X-Name-Last: Eraslan Title: An analysis of the relation between return and beta for portfolios of Turkish equities Abstract: The present study investigates the possible existence of a systematic relation between beta and excess-return for portfolios of Turkish equities. In the process, no systematic relation is found between beta and realized portfolio excess-return, in an unconditional sense. However, the study does find a systematic relation between realized portfolio excess-return and beta, conditioned upon the sign of realized market-portfolio excess-return. Moreover, an even stronger systematic relation is found between realized portfolio excess-return and beta, conditioned not only upon the sign, but also the magnitude of realized market-portfolio excess-return, with the estimation of the security market plane (SMP) model. The study has several useful implications for portfolio managers. Firstly, the empirical findings strongly suggest that employment of the SMP model may generate more accurate estimations of expected asset-return, compared with straightforward application of the capital asset pricing model (CAPM). Enhanced accuracy of expected asset-return, in turn, may lead to more accurate appraisals of asset value, resulting in more profitable investment opportunities and decisions. Employment of the SMP model may thus lead to enhanced efficient-portfolio development, by leading to construction of portfolios with greater expected-return, for a given class of quantifiable-risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1168501 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1168501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1168501 Template-Type: ReDIF-Article 1.0 Author-Name: Saida Daly Author-X-Name-First: Saida Author-X-Name-Last: Daly Author-Name: Mohamed Frikha Author-X-Name-First: Mohamed Author-X-Name-Last: Frikha Title: Banks and economic growth in developing countries: What about Islamic banks? Abstract: Islamic banks (IBs) have a significant role in the growth of gross domestic product of the developing countries. The Islamic participatory schemes integrate the assets of lenders and borrowers. They allow enable IBs to lend on a longer term basis to create projects with higher risk-return profiles and, thus, to support economic growth. Our investigation examines the contribution of Islamic finance in economic growth. Using a panel data-set, we compare between IBs and conventional banks in their adding to economic growth. We studied a sample of 120 banks between 2005 and 2012. By means of three ordinary least-square regressions, our empirical investigation reveals that the development of non-usurious banks supports economic growth. Moreover, the cooperation between the two financing modes improves economic growth. The integration of this new funding never neglected the role of the conventional method of financing. The practice of IBs is also away from their theoretical mode in terms of participation results. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1168728 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1168728 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1168728 Template-Type: ReDIF-Article 1.0 Author-Name: B.C. Okoye Author-X-Name-First: B.C. Author-X-Name-Last: Okoye Author-Name: A. Abass Author-X-Name-First: A. Author-X-Name-Last: Abass Author-Name: B. Bachwenkizi Author-X-Name-First: B. Author-X-Name-Last: Bachwenkizi Author-Name: G. Asumugha Author-X-Name-First: G. Author-X-Name-Last: Asumugha Author-Name: B. Alenkhe Author-X-Name-First: B. Author-X-Name-Last: Alenkhe Author-Name: R. Ranaivoson Author-X-Name-First: R. Author-X-Name-Last: Ranaivoson Author-Name: R. Randrianarivelo Author-X-Name-First: R. Author-X-Name-Last: Randrianarivelo Author-Name: N. Rabemanantsoa Author-X-Name-First: N. Author-X-Name-Last: Rabemanantsoa Author-Name: I. Ralimanana Author-X-Name-First: I. Author-X-Name-Last: Ralimanana Title: Corrigendum Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1169640 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1169640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1169640 Template-Type: ReDIF-Article 1.0 Author-Name: David F. Hendry Author-X-Name-First: David F. Author-X-Name-Last: Hendry Author-Name: Grayham E. Mizon Author-X-Name-First: Grayham E. Author-X-Name-Last: Mizon Title: Improving the teaching of econometrics Abstract: We recommend a major shift in the Econometrics curriculum for both graduate and undergraduate teaching. It is essential to include a range of topics that are still rarely addressed in such teaching, but are now vital for understanding and conducting empirical macroeconomic research. We focus on a new approach to macro-econometrics teaching, since even undergraduate econometrics courses must include analytical methods for time series that exhibit both evolution from stochastic trends and abrupt changes from location shifts, and so confront the “non-stationarity revolution”. The complexity and size of the resulting equation specifications, formulated to include all theory-based variables, their lags and possibly non-linear functional forms, as well as potential breaks and rival candidate variables, places model selection for models of changing economic data at the centre of teaching. To illustrate our proposed new curriculum, we draw on a large UK macroeconomics database over 1860–2011. We discuss how we reached our present approach, and how the teaching of macro-econometrics, and econometrics in general, can be improved by nesting so-called “theory-driven” and “data-driven” approaches. In our methodology, the theory-model’s parameter estimates are unaffected by selection when the theory is complete and correct, so nothing is lost, whereas when the theory is incomplete or incorrect, improved empirical models can be discovered from the data. Recent software like Autometrics facilitates both the teaching and the implementation of econometrics, supported by simulation tools to examine operational performance, designed to be feasibly presented live in the classroom. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1170096 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170096 Template-Type: ReDIF-Article 1.0 Author-Name: Aliyu Alhaji Jibrilla Author-X-Name-First: Aliyu Author-X-Name-Last: Alhaji Jibrilla Title: Fiscal sustainability in the presence of structural breaks: Does overconfidence on resource exports hurt government’s ability to finance debt? Evidence from Nigeria Abstract: The sustainability of the Nigerian fiscal deficit along with the role of the dynamics of government revenues and spending in adjusting the size of the deficit is examined using annual data from 1961 to 2014. After allowing for structural breaks, the study finds evidence of a cointegration relation between the government revenues and spending. The results did not indicate the presence of asymmetries in either the threshold autoregression or momentum threshold autoregression specifications of the country’s budgetary adjustment process. Interestingly, the size of the long run slope parameter appears to be significantly less than one, thus offering support for the soft budget strategy, which also suggests that the government might face difficulties in financing its debts in the long run. Lastly, the short run and long run Granger causality results, while providing evidence in support of the fiscal synchronization hypothesis, also raise some important issues, particularly on the strength of budget deficit sustainability in the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1170317 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170317 Template-Type: ReDIF-Article 1.0 Author-Name: Lamia Jamel Author-X-Name-First: Lamia Author-X-Name-Last: Jamel Author-Name: Abdelkader Derbali Author-X-Name-First: Abdelkader Author-X-Name-Last: Derbali Title: Do energy consumption and economic growth lead to environmental degradation? Evidence from Asian economies Abstract: The main purpose of this study is to investigate empirically the impact of energy consumption and economic growth on the environmental degradation as measured by CO2 emissions. We utilize the cointegration test, the fully modified OLS, and the panel causality to examine the causality between environmental pollution and economic aggregates from a panel data of eight Asian countries during the period 1991–2013. We find that the cointegration tests confirm long run relationship among environmental degradation and energy consumption and economic growth along with financial development, trade openness, capital stocks, and urbanization as control variables. In addition, FMOLS results confirm that economic growth and energy consumption have a positive and significant impact on environmental degradation. Besides, panel causality through VECM verifies that bidirectional causal connection is found between energy consumption and economic growth and environmental degradation. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1170653 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170653 Template-Type: ReDIF-Article 1.0 Author-Name: Der-Yuan Yang Author-X-Name-First: Der-Yuan Author-X-Name-Last: Yang Author-Name: Chen-Hsun Lee Author-X-Name-First: Chen-Hsun Author-X-Name-Last: Lee Title: The solar and lunar divide and the impact on Taiwan’s stock returns Abstract: Under the influence of the western world, the solar New Year celebration seems to have fascinated everyone in Taiwan with the lunar New Year festivity showing much less vigor. This paper examines the impact of the solar and lunar New Years on the stock market of Taiwan, showing that the lunar effect outshines the solar one, but the magnitude is decreasing for both as the years go by. In addition, this effect is more significant in the year of horse. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1177153 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1177153 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1177153 Template-Type: ReDIF-Article 1.0 Author-Name: David G. McMillan Author-X-Name-First: David G. Author-X-Name-Last: McMillan Title: Stock return predictability and market integration: The role of global and local information Abstract: This paper examines the predictability of a range of international stock markets where we allow the presence of both local and global predictive factors. Recent research has argued that US returns have predictive power for international stock returns. We expand this line of research, following work on market integration, to include a more general definition of the global factor, based on principal components analysis. Results identify three global expected returns factors, one related to the major stock markets of the US, UK and Asia and one related to the other markets analysed. The third component is related to dividend growth. A single dominant realised returns factor is also noted. A forecasting exercise comparing the principal components based factors to a US return factor and local market only factors, as well as the historical mean benchmark finds supportive evidence for the former approach. It is hoped that the results from this paper will be informative on three counts. First, to academics interested in understanding the dynamics asset price movement. Second, to market participants who aim to time the market and engage in portfolio and risk management. Third, to those (policy makers and others) who are interested in linkages across international markets and the nature and degree of integration. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1178363 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1178363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1178363 Template-Type: ReDIF-Article 1.0 Author-Name: Akinori Tomohara Author-X-Name-First: Akinori Author-X-Name-Last: Tomohara Author-Name: Akihiko Ohno Author-X-Name-First: Akihiko Author-X-Name-Last: Ohno Title: Domains of reciprocity beyond monetary compensation: How do non-pecuniary factors affect effort and shirking? Abstract: This empirical study examines how sources of reciprocity are related to work motivation by distinguishing positive and negative work attitudes in practical working environments. We move away from the unidimensional perspective of monetary compensation and investigate employees’ reciprocal behaviors, together with non-pecuniary aspects of work relations such as human relationships and company management. The results show that positive reciprocity, represented by effort, is fundamentally distinct from negative reciprocity, represented by shirking, when examining the multi-dimensional sources of reciprocity. Additionally, our analyses reveal that non-pecuniary factors in the working environment have a relatively large degree of association with work motivation, even when compared to monetary compensation. Our results complement those from controlled laboratory experiments. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1178884 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1178884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1178884 Template-Type: ReDIF-Article 1.0 Author-Name: S. Cook Author-X-Name-First: S. Author-X-Name-Last: Cook Author-Name: C. Elliott Author-X-Name-First: C. Author-X-Name-Last: Elliott Title: Innovations in Economics Education: An Introduction to Economic and Econometric Tools for Teaching and Learning Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1180038 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1180038 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1180038 Template-Type: ReDIF-Article 1.0 Author-Name: Chinazaekpere Nwani Author-X-Name-First: Chinazaekpere Author-X-Name-Last: Nwani Author-Name: Eugene Iheanacho Author-X-Name-First: Eugene Author-X-Name-Last: Iheanacho Author-Name: Chijioke Okogbue Author-X-Name-First: Chijioke Author-X-Name-Last: Okogbue Title: Oil price and the development of financial intermediation in developing oil-exporting countries: Evidence from Nigeria Abstract: This study examines the relationship between crude oil price and financial sector intermediary development in Nigeria over the period 1975–2011, using the autoregressive distributed lag approach to cointegration analysis. Four measures of financial intermediary development are used including an index of financial intermediary development constructed from three indicators of financial intermediary development using principal component analysis. The results show that crude oil price is a key driver of financial intermediary development in Nigeria. A positive and significant long run relationship between financial intermediary development and crude oil price coexists with a negative short run relationship. The results show that even if we control for economic growth, inflation and trade openness, crude oil price still has significant influence on the development of financial intermediation in Nigeria. The findings of this study have important policy implications for financial intermediary development in Nigeria and other developing oil-exporting countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1185237 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1185237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1185237 Template-Type: ReDIF-Article 1.0 Author-Name: K. Moses Tule Author-X-Name-First: K. Moses Author-X-Name-Last: Tule Author-Name: O. Taiwo Ajilore Author-X-Name-First: O. Taiwo Author-X-Name-Last: Ajilore Title: On the stability of the money multiplier in Nigeria: Co-integration analyses with regime shifts in banking system liquidity Abstract: The study hypothesized the existence of regime shifts in the conduct of monetary policy, occasioned by changing liquidity conditions in the domestic banking system in Nigeria. Within the context of this prognosis, the study tests the stability of the money multiplier, utilizing methodological procedures that allow for the explicit consideration of regime shift bias in the specification of the model and the empirical estimation. The study found the existence of a stable long run relationship between broad money and the monetary base, confirming that the necessary condition for monetary control within a multiplier frame work is satisfied for Nigeria. Also, the spate of quantitative easing by the Central Bank of Nigeria to ameliorate adverse liquidity conditions and the lingering effects of the global financial crises occasioned a structural break in monetary policy, determined endogenously to have occurred in November 2009. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1187780 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1187780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1187780 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Asumadu-Sarkodie Author-X-Name-First: Samuel Author-X-Name-Last: Asumadu-Sarkodie Author-Name: Phebe Asantewaa Owusu Author-X-Name-First: Phebe Asantewaa Author-X-Name-Last: Owusu Title: The casual nexus between child mortality rate, fertility rate, GDP, household final consumption expenditure, and food production index Abstract: In this study, the causal nexus between child mortality rate, fertility rate, GDP, household final consumption expenditure, and food production index in Ghana was investigated spanning from 1971 to 2013 using the Autoregressive and Distributed Lag (ARDL) method. The study tested for unit root, ARDL bounds cointegration test, ARDL long-run elasticities, Granger causality, and Variance Decomposition Analysis using Cholesky technique. There was evidence of long-run equilibrium relationship running from fertility rate, food production index, GDP, and household final consumption expenditure to the mortality rate. There was evidence of a bidirectional causality running from household final consumption expenditure to fertility rate. Evidence from the Variance Decomposition Analysis shows that, almost 6% of future fluctuations in mortality rate are due to shocks in the food production index, while 2% of future fluctuations in mortality rate are due to shocks in fertility rate. Evidence from the study shows that the increasing levels of social determinants like Gross Domestic Product and Household final consumption expenditure will help reduce child mortality rates in Ghana. In order to reduce child mortality rates among children under-5, infants and vulnerable in Ghana, there is the need to end hunger and ensure access to safe and nutritious food. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1191985 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1191985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1191985 Template-Type: ReDIF-Article 1.0 Author-Name: Prosper Ebruvwiyo Edoja Author-X-Name-First: Prosper Ebruvwiyo Author-X-Name-Last: Edoja Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Author-Name: Orefi Abu Author-X-Name-First: Orefi Author-X-Name-Last: Abu Title: Dynamic relationship among CO2 emission, agricultural productivity and food security in Nigeria Abstract: The study analyzed the dynamic relationship among CO2 emission (CE), agricultural productivity (AGP), and food security (FS) in Nigeria. The study used annual time series data spanning from 1961 to 2010. Results based on Augmented Dickey and Fuller and Phillip and Perron tests showed that the series are integrated of order one, I(1). Johansen cointegration test was employed to examine the long run relationship. Results show there is no long run relationship among the three variables. Evidence based on the VAR estimates and the impulse response functions shows that there is a negative and significant short run relationship between CO2 and AGP and between CO2 and FS. Also the variance decomposition analyses showed that over time, CE contributed about 23 and 22 percent to the variation in AGP and FS, respectively. Further, analysis based on Granger causality test indicated that there was a unidirectional causality from CE to AGP and also from CE to FS. Policies that will assist in the mitigation of CE including investment in research and development, cap and trade system, carbon tax policy, adoption of clean power plan, and other regulatory measures are recommended. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1204809 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1204809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1204809 Template-Type: ReDIF-Article 1.0 Author-Name: Chikashi Tsuji Author-X-Name-First: Chikashi Author-X-Name-Last: Tsuji Title: Did the expectations channel work? Evidence from quantitative easing in Japan, 2001–06 Abstract: The Japanese economy experienced a prolonged period of quantitative easing (QE) over the five years from March 2001 to March 2006. The purpose of this paper is to evaluate the direct and exclusive effects of this rather unconventional monetary policy on financial markets, economic activity, and labor markets in Japan empirically by employing exactly the same testing period with the QE period in most of our examinations. Using a range of variables, we first estimate vector error correction models (VECMs) that consider the cointegrating relations between the Japanese monetary base and other variables in our data-set. We also use Markov-switching dynamic regression (MSDR) models, Bayesian vector autoregressive (VAR) models, and causality analyses to test for robustness. Together, all the above analyses consistently provide a number of interesting findings. First, QE lowered short- and medium-term credit spreads and improved Japanese credit market conditions. Second, QE increased stock prices in Japan and improved market expectations. Third, the QE policy recovered labor market conditions and economic productivity in Japan. Finally, additional analyses of fund flows and economic survey data suggest that the primary transmission channel of this period of Japanese QE policy was the expectations channel. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1210996 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1210996 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1210996 Template-Type: ReDIF-Article 1.0 Author-Name: Yukiko Konno Author-X-Name-First: Yukiko Author-X-Name-Last: Konno Author-Name: Yuki Itoh Author-X-Name-First: Yuki Author-X-Name-Last: Itoh Title: An alternative to the standardized approach for assessing credit risk under the Basel Accords Abstract: The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not uniform. Second, because CRAs assign ratings according to through-the-cycle ratings, their ratings are less accurate in predicting near-term defaults and react slowly to credit events. Third, CRAs have assigned ratings to few Japanese companies. To improve the standardized approach under Basel III, we propose a new method for the evaluation of credit risk without CRAs. We analyse the influence of companies’ financial and non-financial attributes on default and how a default probability model is constructed using annual reports of companies listed on the Tokyo Stock Exchange spanning fiscal 2003–2009. Results indicate that our model predicts default as accurately as CRAs. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1220119 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1220119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1220119 Template-Type: ReDIF-Article 1.0 Author-Name: Chikashi Tsuji Author-X-Name-First: Chikashi Author-X-Name-Last: Tsuji Title: Does the fear gauge predict downside risk more accurately than econometric models? Evidence from the US stock market Abstract: This paper empirically compares the usefulness of information included in the volatility index (VIX) against several generalized autoregressive conditional heteroskedasticity (GARCH) models for predicting downside risk in the US stock market. Our main findings are as follows. First, using the univariate logit and quantile regression models, we reveal that the previous day’s VIX and the forecast S&P 500 volatilities from GARCH, exponential GARCH (EGARCH), power GARCH (PGARCH), and threshold GARCH (TGARCH) models have statistically significant predictive power for large declines in the S&P 500. Second, direct comparisons with the multiple logit and quantile regression models demonstrate that the volatility forecasts from the EGARCH, PGARCH, and TGARCH models dominate the predictive power of the previous day’s VIX; and we also clarify that the predictive power of volatility forecasts from the EGARCH and TGARCH models is much stronger. Third, our additional tests further suggest that the forecast VIX, the forecast volatility of VIX, and the forecast volatility of the first log differences of VIX cannot outperform the S&P 500 volatility forecasts from econometric models in predicting US stock market downside risk. Fourth, our vector-half (VECH), Baba–Engle–Kraft–Kroner (BEKK), dynamic conditional correlation (DCC), and asymmetric DCC (ADCC) multivariate GARCH (MGARCH) analyses demonstrate that the time-varying correlations between the previous day’s VIX and the volatility forecasts from the EGARCH or TGARCH models are weaker than the correlations of volatility forecasts from the EGARCH and TGARCH models. Finally, our VECH-, BEKK-, DCC-, and ADCC-MGARCH analyses further clarify almost perfect correlations around the US Lehman Brothers bankruptcy across all three volatility series. The key contribution of this paper is that it clarifies the superiority of volatility forecasts using econometric models compared with VIX in predicting the US stock market downside risk. The primary implications of our results are the importance of developing effective technical models and the need to use econometric model volatility forecasts in practice. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1220711 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1220711 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1220711 Template-Type: ReDIF-Article 1.0 Author-Name: Tomohito Kamai Author-X-Name-First: Tomohito Author-X-Name-Last: Kamai Author-Name: Yuichiro Kanazawa Author-X-Name-First: Yuichiro Author-X-Name-Last: Kanazawa Title: Is product with a special feature still rewarding? The case of the Japanese yogurt market Abstract: Manufacturers of packaged consumer goods strive to develop a new product with a special feature that could provide additional value to consumers. However, it is less clear whether such an effort is still rewarding in terms of margin if manufacturers are losing power to retailers as some have argued. To investigate this issue, we conduct an economic analysis in the Japanese yogurt market incorporating strategic interaction between manufacturers and a retailer as well as between manufacturers by extending the framework employed in the earlier literature to suit the retailer Stackelberg game which can reflect the possible power shift from manufacturers to retailers. We find (1) the manufacturers’ margins on special featured brands are larger than those on the others; (2) however, the manufacturer producing such brands is not able to leverage these brands to exert bargaining power over the retailer; and (3) the retailer obtains as large margins as the manufacturers on these brands. In the course of this research, we successfully portray the symmetrical relationship between manufacturer and retailer Stackelberg games, whereby the vertical Nash game is located in the midpoint of those two games. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1221231 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1221231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1221231 Template-Type: ReDIF-Article 1.0 Author-Name: Nicolas Afflatet Author-X-Name-First: Nicolas Author-X-Name-Last: Afflatet Author-Name: Stephanos Papadamou Author-X-Name-First: Stephanos Author-X-Name-Last: Papadamou Title: Public debt and borrowing: Are governments disciplined by financial markets? Abstract: With the announcement to intervene on financial markets to restore the monetary transmission mechanism, the ECB has attenuated the pressure of the markets on the endangered peripheral countries of the Eurozone. Critics argue that by eliminating the markets’ disciplining interest mechanism, governments in the crisis countries will not carry out reforms and consolidate their budgets. This kind of interplay between public deficit policy and financial markets is commonly discussed under the notion of Market Discipline Hypothesis. The hypothesis’ second half suggests that governments react to rising interest rates by adjusting their deficit policy. Based on panel data for the European Union, different models are tested to investigate if governments react to rising interest rates. The results indicate that governments do raise their primary surpluses when they perceive the rising interest rates in their budgets. Governments react quite quickly to changing interest rates, although there seems to be some backlash in the medium-run. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1225346 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1225346 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1225346 Template-Type: ReDIF-Article 1.0 Author-Name: Moradeyo Adebanjo Otitoju Author-X-Name-First: Moradeyo Adebanjo Author-X-Name-Last: Otitoju Author-Name: Dennis D. Ochimana Author-X-Name-First: Dennis D. Author-X-Name-Last: Ochimana Title: Determinants of farmers’ access to fertilizer under fertilizer task force distribution system in Kogi State, Nigeria Abstract: This study investigated the determinants of farmers’ access to fertilizer under Fertilizer Task Force Distribution System in Kogi State, Nigeria. A multi-stage random technique was used to select 160 farmers for the study. Probit model analysis on the factors that influence farmers’ access to fertilizer showed that age of the farmers, farm size (negative), distance to procurement centers, and social participation (positive) significantly influenced the probability of farmers’ access to fertilizer. Effective strategies of task force in the procurement and distribution of fertilizer perceived by the respondents among others are: distribution of fertilizer through local government agricultural offices, subsidy at source including transportation subsidy to delivery points, and promotion of subsidies for the poor farmers, development of private agro-dealers network. It is envisaged that these factors could serve as a guide to policy-makers regarding procurement and distribution of fertilizer to enhance farmers’ access and crop productivity in Nigeria. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1225347 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1225347 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1225347 Template-Type: ReDIF-Article 1.0 Author-Name: Ferdaws Ezzi Author-X-Name-First: Ferdaws Author-X-Name-Last: Ezzi Author-Name: Mouhamed Ali Azouzi Author-X-Name-First: Mouhamed Ali Author-X-Name-Last: Azouzi Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: Does CEO emotional intelligence affect the performance of the diversifiable companies? Abstract: This article scrutinizes the leader’s emotional intelligence effect on the enterprises’ performance (diversification is the main strategy). After the theoretical discussion which approaches our subject matter, we propose our research assumptions. Thus, this research attempts to answer our central question: How can emotional intelligence affect the performance of Tunisian enterprises (diversifiable companies)? Our methodology consists of two parts. The first is used to identify the data sample selection and the second is devoted to the results interpretation. The main contribution of this work is to explain how the behavioral finance (we speak about emotional intelligence) allows to present answers regarding performance of companies (which the strategy the adopted is the diversification). The results obtained from the linear regressions made on a sample of the show well the significant and positive CEO emotional intelligent on the financial, social and environmental performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1230958 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1230958 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1230958 Template-Type: ReDIF-Article 1.0 Author-Name: Shelia M. Kennison Author-X-Name-First: Shelia M. Author-X-Name-Last: Kennison Author-Name: Erin E. Wood Author-X-Name-First: Erin E. Author-X-Name-Last: Wood Author-Name: Jennifer Byrd-Craven Author-X-Name-First: Jennifer Author-X-Name-Last: Byrd-Craven Author-Name: Megan L. Downing Author-X-Name-First: Megan L. Author-X-Name-Last: Downing Title: Financial and ethical risk-taking by young adults: A role for family dynamics during childhood Abstract: The research tested the hypothesis that childhood relationships with parents were related to risk-taking by young adults. Prior research has shown that risk-taking by young children is related to their interactions with mothers and fathers. Few studies have examined how family relationships during childhood are related to risk-taking by young adults. We assessed risk-taking using the domain-specific risk-taking scale (DOSPERT), which measures five domains of risk-taking: ethical, financial, health, recreational, and social. We also assessed sensation-seeking, a personality trait that has been shown to be a predictor of risk-taking and family dynamics, using a measure that quantifies positive and negative childhood relationships with each parent. The three key results were (1) negative mother interactions predicted men’s financial risk-taking; (2) negative father interactions and disinhibition predicted men’s ethical risk-taking; and (3) women’s ethical risk-taking was predicted by negative father interactions, low positive mother interactions, and boredom susceptibility. Implications for identifying young adults most at-risk for ethical and financial risk-taking are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1232225 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1232225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1232225 Template-Type: ReDIF-Article 1.0 Author-Name: David J. Moore Author-X-Name-First: David J. Author-X-Name-Last: Moore Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A look at the actual cost of capital of US firms Abstract: The capital asset pricing model (CAPM) receives both criticism and widespread adoption by practitioners and academics as the weighted average cost of capital (WACC) equity component. This study introduces two new costs of equity measures to address CAPM criticisms and provide new perspective on WACC estimates. The firm-based measure focuses on firm–investor cash flows while the market-based measure focuses solely on actual market returns. This study applies its firm and market-based WACC measures, along with the traditional CAPM-based WACC measure, to a broad sector-based cross section from 1972 to 2015. Results show that traditional CAPM-based WACC estimates consistently lie between the new firm and market-based WACC estimates. The central positioning of CAPM WACC supports its use as a conservative hurdle rate estimate for firms and a conservative expected return estimate for investors relative to actual returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1233628 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1233628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1233628 Template-Type: ReDIF-Article 1.0 Author-Name: Lukman Oyeyinka Oyelami Author-X-Name-First: Lukman Oyeyinka Author-X-Name-Last: Oyelami Author-Name: P.A. Olomola Author-X-Name-First: P.A. Author-X-Name-Last: Olomola Title: External shocks and macroeconomic responses in Nigeria: A global VAR approach Abstract: This study investigates the macroeconomic responses of Nigerian economy to external shock between 1986 and 2014. Specifically, we examine the effect of oil price shocks and macroeconomic shocks from developed trading partners on Nigerian macroeconomic performances in order to establish pattern of reactions to these shocks in the country. We employ global vector autoregression (GVAR) comprising of the US, EU, China, Japan and Nigeria as the reference country. The adoption as of this method of estimation is necessitated by its capability to effectively model complex high-dimensional system and also offers adequate tools to deal with the curse of dimensionality that can arise from a study of this nature. Having critically examined the econometric properties of our GVAR model, the results from our estimation based on impulse response function show that oil price shocks have direct effect on real gross domestic product and exchange rate in Nigeria but variables like inflation and short-term interest rate do not show immediate response to the shocks. The results also indicate that macroeconomic variables such as short-term interest and inflation show immediate responses to shocks to counterpart variables in developed countries. Based on this, the study concludes that Nigerian economy is vulnerable to external shocks and such shocks are not limited to oil price shocks. Other form of shocks such as growth spillover and financial shocks from developed countries are also relevant in shaping the macroeconomic performances in Nigeria. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1239317 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1239317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1239317 Template-Type: ReDIF-Article 1.0 Author-Name: J. Szolgayová Author-X-Name-First: J. Author-X-Name-Last: Szolgayová Author-Name: S. Fuss Author-X-Name-First: S. Author-X-Name-Last: Fuss Author-Name: T. Kaminski Author-X-Name-First: T. Author-X-Name-Last: Kaminski Author-Name: M. Scholze Author-X-Name-First: M. Author-X-Name-Last: Scholze Author-Name: M. Gusti Author-X-Name-First: M. Author-X-Name-Last: Gusti Author-Name: M. Heimann Author-X-Name-First: M. Author-X-Name-Last: Heimann Author-Name: M. Tavoni Author-X-Name-First: M. Author-X-Name-Last: Tavoni Title: The benefits of investing into improved carbon flux monitoring Abstract: Operationalizing a Global Carbon Observing and Analysis System (www.geocarbon.net) would provide a sound basis for monitoring actual carbon fluxes and thus getting quantities right when pricing carbon – be it in a cap-and-trade scheme or under a tax regime. However, such monitoring systems are expensive and—especially in times of economic weakness—budgets for science and environmental policy are under particular scrutiny. In this study, we attempt to demonstrate the magnitude of benefits of improved information about actual carbon fluxes. Such information enables better-informed policy-making and thus paves the way for a more secure investment environment when decarbonizing the energy sector. The numerical results provide a robust indication of a positive social value of improving carbon monitoring systems when compared to their cost, especially for the more ambitious climate policies. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1239672 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1239672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1239672 Template-Type: ReDIF-Article 1.0 Author-Name: Gary Smith Author-X-Name-First: Gary Author-X-Name-Last: Smith Title: Overreaction of Dow stocks Abstract: Several studies have found mean reversion in monthly stock returns over long horizons. However, these studies can be challenged for several reasons, including the neglect or possible misspecification of risk premia. The current paper analyzes daily Dow returns over short horizons, which obviates the most serious issues in long-horizon studies using monthly data. There is strong evidence of overreaction in that large positive and (especially) negative returns tend to be followed by persistent, substantial, and statistically persuasive reversals over the next 10 days. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1251831 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1251831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1251831 Template-Type: ReDIF-Article 1.0 Author-Name: Ibrahim Bakari Hassan Author-X-Name-First: Ibrahim Bakari Author-X-Name-Last: Hassan Title: International capital mobility in West Africa: A panel cointegration approach Abstract: The study investigates the status of international capital mobility in West Africa using the saving retention coefficient of Feldstein–Horioka hypothesis. The hypothesis is predicated on the fact that, with perfect capital mobility, domestic investment does not depends on domestic savings but depends on the pool of international savings. Panel data on domestic savings and domestic investments of 13 West African countries, spanning from 1980 to 2011 are used to run a series of long-run relations. After establishing the presence of cointegration relationship between the two variables, the saving retention coefficient is estimated using the pooled mean group (PMG), fully modified OLS (FMOLS) and the dynamic OLS (DOLS). The results from these long-run estimators show low value of saving retention coefficient, signifying low association between domestic savings and domestic investment and hence higher capital mobility in West Africa. The result also confirmed that the Feldstein–Horioka puzzle does not hold for West Africa. However, the presence of free and higher capital mobility in the continent could be a signal that the use of monetary policy in domestic economic stabilization is increasingly becoming ineffective, especially in the long-run. The finding suggests the establishment of monetary union in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1256023 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1256023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1256023 Template-Type: ReDIF-Article 1.0 Author-Name: Adedoyin Isola Lawal Author-X-Name-First: Adedoyin Isola Author-X-Name-Last: Lawal Author-Name: Tony I. Nwanji Author-X-Name-First: Tony I. Author-X-Name-Last: Nwanji Author-Name: Abiola Asaleye Author-X-Name-First: Abiola Author-X-Name-Last: Asaleye Author-Name: Victor Ahmed Author-X-Name-First: Victor Author-X-Name-Last: Ahmed Title: Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach Abstract: For over a decade now, various efforts have been put in place by various governments of the developing economies to promote economic growth, financial development and expand trade with mixed results. The ability of financial development and/or trade openness to influence economic growth in the developing economies has been a subject of hot debate and remains inconclusive. While a number of scholars are of the view that compelling cointegration exists among each of these constructs, another set of substantial authors have documented that economic growth, trade openness and financial development do evolve independent of each other. Drawing from four financial developments–growth nexus theories, this study used the ARDL bound estimation techniques to examine the existence of cointegration among economic growth, financial development and trade openness in Nigeria. We intend to know what policy instruments need to be manipulated so as to achieve economic growth and financial stability. Our results show that a two-way cointegration exists between economic growth and financial development, on the one hand, as well as between economic growth and trade openness, on the other hand. We therefore recommend that in order to achieve economic growth, policy-makers should pursue strong financial development and increase trade openness. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1258810 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1258810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1258810 Template-Type: ReDIF-Article 1.0 Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Title: Vertical integration and value-relevance: Empirical evidence from oil and gas producers Abstract: Oil and gas exploration companies (E&Ps) exhibit large variations in earnings due to volatile oil and gas prices. Furthermore, their primary asset, oil and gas reserves, is accumulated through highly risky exploration activities. In contrast, integrated oil and gas companies display lower variability in their earnings due a more diversified asset base. The literature suggests that companies with higher earnings volatility and higher levels of intangibles among their assets should have lower value relevance of accounting information than companies with higher levels of tangible assets on their balance sheets. For that reason, E&P companies should have lower value relevance than integrated companies. Contrary to expectations, we do not find lower value relevance for E&Ps earnings than integrated oil and gas companies. In fact, the results suggest that the presence of supplementary estimates for oil and gas reserves values mitigate the potential problem associated with the presence of intangible assets experienced in other industries. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1264107 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1264107 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1264107 Template-Type: ReDIF-Article 1.0 Author-Name: Frank Asche Author-X-Name-First: Frank Author-X-Name-Last: Asche Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Title: Who’s a major? A novel approach to peer group selection: Empirical evidence from oil and gas companies Abstract: This study presents a novel approach to selecting comparable companies in equity valuation. While valuation multiples is probably the most common valuation method in practice, discounted cash flow and residual income valuation models are advocated by academics. A key aspect in valuation by multiples is peer group selection. In this paper, we examine the usefulness of econometric techniques in peer-group selection for the largest companies in the international oil and gas sector. Using Chow tests, we are able to identify firms with similar relationships between valuation multiples and relevant value drivers. These results of our study suggest that analysts and investors should, when carrying out valuations, be careful in selecting the companies that comprise the peer groups. Comparable company selection could be carried out using econometric techniques that select companies on the basis of similarities in the relation between financial information and market valuation, instead of being based purely on analysts’ subjective judgments. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1264538 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1264538 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1264538 Template-Type: ReDIF-Article 1.0 Author-Name: Lidija Dedi Author-X-Name-First: Lidija Author-X-Name-Last: Dedi Author-Name: Burhan F. Yavas Author-X-Name-First: Burhan F. Author-X-Name-Last: Yavas Title: Return and volatility spillovers in equity markets: An investigation using various GARCH methodologies Abstract: This paper investigates linkages among equity market returns and volatility spillovers in the following countries: Germany, United Kingdom, China, Russia, and Turkey. MARMA, GARCH, GARCH-in-mean, and exponential GARCH (EGARCH) methodologies are applied to daily data on country exchange-traded funds (ETF) based on the MSCI indices from 31 March 2011 to 11 March 2016. The results of the analysis show the existence of significant co-movements of returns among the countries in the sample. ETF returns in Germany, UK, and Russia affect returns in all of the other sample countries. Implications of these findings are explored in terms of portfolio diversification. In addition, the highest volatilities are exhibited by Russia and Turkey. On the other hand, the UK and the Chinese markets have the lowest volatilities. Also, there is a strong evidence of volatility spillovers. All of the countries in the sample, with the exception of UK and Turkey, experience volatility spillovers from other markets. Finally, because of the risk-return trade-off, we analyzed the effect of volatility of the market on its returns and found that only in the UK volatility of the market had a positive effect on its future returns: that an increase in volatility leads to a rise in future ETF returns in the UK. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1266788 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1266788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1266788 Template-Type: ReDIF-Article 1.0 Author-Name: Musa H. Ahmed Author-X-Name-First: Musa H. Author-X-Name-Last: Ahmed Author-Name: Hiwot M. Mesfin Author-X-Name-First: Hiwot M. Author-X-Name-Last: Mesfin Author-Name: Seltene Abady Author-X-Name-First: Seltene Author-X-Name-Last: Abady Author-Name: Wendmagegn Mesfin Author-X-Name-First: Wendmagegn Author-X-Name-Last: Mesfin Author-Name: Amare Kebede Author-X-Name-First: Amare Author-X-Name-Last: Kebede Title: Adoption of improved groundnut seed and its impact on rural households’ welfare in Eastern Ethiopia Abstract: This study has evaluated the impact of adoption of improved groundnut seed on the well-being of the farmers of Eastern Ethiopia using a cross-sectional data collected from 301 sample households. To address this objective, both descriptive and econometric analysis methods were employed. In the econometric analysis, Propensity Score Matching was used to measure the impact of adoption of improved groundnut seeds on well-being measured as expenditure per adult equivalent. The results of the study have indicated that adoption of improved groundnut seeds has a positive and significant impact on the welfare of the farmers. Therefore, socioeconomic variables should be addressed to improve the adoption of improved groundnut seeds, which in turn increases the welfare of groundnut producing farmers. Journal: Cogent Economics & Finance Issue: 1 Volume: 4 Year: 2016 Month: 12 X-DOI: 10.1080/23322039.2016.1268747 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1268747 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1268747 Template-Type: ReDIF-Article 1.0 Author-Name: Manel Gharbi Author-X-Name-First: Manel Author-X-Name-Last: Gharbi Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: Institutional investors’ role in diversifying orientation decision across Tunisian companies Abstract: The present work’s major objective consists in examining the impact of institutional investors’ presence on corporate diversification decision. For this sake, a theoretical framework based on the corporate governance contractual approach has been advanced highlighting the idea that the presence of institutional enjoys a diversification-oriented strategic decision. For this purpose, a model is used and applied to Tunisian firms’ sample observed over the period 2011–2013. In fact, the study maintains that the presence of institutional investors helps in directly influencing corporate strategic decisions. The reached results, conducted on a sample of 111 Tunisian commercial companies and service-providing firms, appear to reveal the persistence of a significant impact of the institutional investors on diversification decision. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1244873 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1244873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1244873 Template-Type: ReDIF-Article 1.0 Author-Name: Nusrat Farah Author-X-Name-First: Nusrat Author-X-Name-Last: Farah Author-Name: Mukti P. Upadhyay Author-X-Name-First: Mukti P. Author-X-Name-Last: Upadhyay Title: How are school dropouts related to household characteristics? Analysis of survey data from Bangladesh Abstract: Human capital accumulation is one of the key drivers of economic growth especially in developing countries that are trying to catch up in per capita income with the developed world. A high dropout rate of children from school can significantly impede growth. This paper presents evidence on school dropout rate being affected by household characteristics and social background. We investigate dropouts by using a large data-set from the Bangladesh Demographic and Health Survey, 2011. A fractional logit model, a beta regression model, and for comparison a simple OLS model all indicate our empirical strategy to be fairly robust. The large incidence of households having a child quitting school to enter the labor market also allows us to study the dropout using a probit model. We find many interesting results. Children from poor families with less educated parents drop out sooner with a lasting effect on educational outcomes. Households that have more than three children or more than five members also experience greater quit rates. Richer and richest categories of households have the lowest dropouts. Those facing a costly commute to school or having no access to electricity also quit earlier. We also present evidence on several other factors with important policy implications. Our results suggest that any strategy that seeks to encourage human capital accumulation must simultaneously address the school dropout rate through a combination of such factors as promotion of female education and expansion of credit for small businesses. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1268746 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1268746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1268746 Template-Type: ReDIF-Article 1.0 Author-Name: Maria-Teresa Bosch-Badia Author-X-Name-First: Maria-Teresa Author-X-Name-Last: Bosch-Badia Author-Name: Joan Montllor-Serrats Author-X-Name-First: Joan Author-X-Name-Last: Montllor-Serrats Author-Name: Maria-Antonia Tarrazon-Rodon Author-X-Name-First: Maria-Antonia Author-X-Name-Last: Tarrazon-Rodon Title: Analysing assets’ performance inside a portfolio: From crossed beta to the net risk premium ratio Abstract: This paper is focused on enlarging the performance inside a portfolio that provides the Treynor ratio by relating portfolio weights with performance indicators. Intuition suggests that the higher the weight of an asset, the higher should be its expected performance. These weights, and the information that we can obtain from their analysis, are not only relevant for investors but also for corporate managers. Nevertheless, the available performance indicators are not linked to portfolio weights. In order to fulfil this gap we answer three questions: which is the minimum risk premium that justifies holding an asset in long position? How can we analyse if the performance of an asset justifies the budget’s weight invested in it? And, how can we apply ex-post optimisation to performance analysis? Methodologically, we centre the analysis on the definition of crossed beta and the net risk premium ratio that stems from it. The latter fulfils the axioms of risk/reward performance measures. The three answers to the questions are related to the net risk premium. The analysis in developed for the Mean-Variance and Mean-Gini models. The empirical illustration, based on DJIA assets, that completes the paper shows how the analysis of portfolio weights provides relevant information about the performance of assets. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1270251 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1270251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1270251 Template-Type: ReDIF-Article 1.0 Author-Name: Burçak Polat Author-X-Name-First: Burçak Author-X-Name-Last: Polat Title: Rate of return on foreign investment income and employment labour protection: A panel analysis of thirty OECD countries Abstract: Scholars argue that multinational corporations tend to locate their investments in countries with lower employment protections to avoid potential future exit costs if an unfavourable event occurs. Yet, empirical results are highly inconsistent. The main objective of this study is to examine the causal relationship between rate of return on foreign investment income and employment labour protection (ELP) by employing one-step system generalized method of moments system. Strict ELP affects location choice of investments through the profit maximization appetite of foreign investors. Thus, contrary to previous studies investigating the effect of labour standards on foreign investment inflows, this study deals relationship between rate of return on foreign investment income and ELP in the host country. The study found robust evidence that ELP has no significant effect on rate of return on investment income; however, market size, GDP growth rate, openness, investment profile and inflation do indeed have a positive effect. The important implication is that the reductions in employment protection rules do not affect the location choice of foreign investors through the cost–benefit analysis on their investments. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1273588 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1273588 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1273588 Template-Type: ReDIF-Article 1.0 Author-Name: Abderrazak Dhaoui Author-X-Name-First: Abderrazak Author-X-Name-Last: Dhaoui Author-Name: Sami Bacha Author-X-Name-First: Sami Author-X-Name-Last: Bacha Title: Investor emotional biases and trading volume’s asymmetric response: A non-linear ARDL approach tested in S&P500 stock market Abstract: This paper investigates the dynamic linkages between trading volume and investors sentiments for the S&P500 stock exchange. Two sentiment indicators are considered, the overconfidence and the net optimism-pessimism indicator. Non-linear dynamic approach, namely the asymmetric autoregressive distributed lag (NARDL) model is used to capture the long-term and short-term non-linear connections between the investor sentiment and the stock market liquidity. Empirical findings suggested an asymmetric long-term market liquidity reaction to investor sentiment. In the short-term, the stock market liquidity react rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has insignificant short-term impact on trading volume. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1274225 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1274225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1274225 Template-Type: ReDIF-Article 1.0 Author-Name: Panagiotis Mantalos Author-X-Name-First: Panagiotis Author-X-Name-Last: Mantalos Title: Robust critical values for unit root tests for series with conditional heteroscedasticity errors: An application of the simple NoVaS transformation Abstract: In this paper, we introduce a set of critical values for unit root tests that are robust in the presence of conditional heteroscedasticity errors using the normalizing and variance-stabilizing transformation (NoVaS) and examine their properties using Monte Carlo methods. In terms of the size of the test, our analysis reveals that unit root tests with NoVaS-modified critical values have actual sizes close to the nominal size. For the power of the test, we find that unit root tests with NoVaS-modified critical values either have the same power as, or slightly better than, tests using conventional Dickey–Fuller critical values across the sample range considered. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1274282 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1274282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1274282 Template-Type: ReDIF-Article 1.0 Author-Name: Geremew Worku Kassie Author-X-Name-First: Geremew Worku Author-X-Name-Last: Kassie Title: The Nexus between livelihood diversification and farmland management strategies in rural Ethiopia Abstract: The purpose of this study was to determine whether or not livelihood diversification strategies are significant predictors of rural households’ farmland management practices. To this end, the two-limit Tobit econometric model was employed to analyse the nexus between livelihood diversification and farmland management. The study incorporated 151 farm households in Gozamin District, East Gojjam, in Ethiopia. A survey questionnaire was used to gather data. Both descriptive and inferential statistics were used as methods of data analysis. The result indicated that livelihood diversification, measured by the inverse Herfindahl–Hirschman diversity index, has a positive and significant effect on sustainable land management activities. Besides, farm households who participated in agricultural extension packages and those engaged in farm cooperatives and in non-farm wage employment activities joined significantly more in sustainable rural land management practices. The integrated rural livelihood and sustainable land management strategy that can help jointly maximise the farm household livelihood and the land management practices is required. Rural livelihood development policies need to promote and adapt rural institutions like farm cooperatives and comprehensive agricultural extension services. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1275087 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1275087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1275087 Template-Type: ReDIF-Article 1.0 Author-Name: Seng Sothan Author-X-Name-First: Seng Author-X-Name-Last: Sothan Title: Causality between foreign direct investment and economic growth for Cambodia Abstract: The relationship between foreign direct investment (FDI) and economic growth in recipient economies remains one of the hottest debates. As confirmed in the literature, many studies support the growth impact of FDI, but some do not. Cambodia, a war-torn economy, also depends on FDI as a driver of economic growth. In addition, the causal relationship between FDI and growth in Cambodia is not fully known. Therefore, this paper is an attempt to examine the causal link between the two variables over the period 1980–2014, using Granger causality test based on the vector error correction model. The empirical results provide strong evidence on the causal impact of FDI on Cambodia’s economic growth (GDP). However, the study does not confirm causality to run from GDP to FDI. This can be concluded that the growth impact of FDI is sufficiently supported in Cambodia. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2016.1277860 File-URL: http://hdl.handle.net/10.1080/23322039.2016.1277860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1277860 Template-Type: ReDIF-Article 1.0 Author-Name: Hai Yue Liu Author-X-Name-First: Hai Yue Author-X-Name-Last: Liu Author-Name: Xiao Lan Chen Author-X-Name-First: Xiao Lan Author-X-Name-Last: Chen Title: The imported price, inflation and exchange rate pass-through in China Abstract: This paper considers the effect of exchange rate (ER) level on China’s domestic prices during the period of 2003–2012. We examine China’s consumer price index (CPI), import price index (IPI) and producer price index (PPI) by using time series vector error correction analysis. The main finding of the paper is that ER pass-through has had a limited but growing effect on domestic prices and will continue to do so. ER regime change that was announced by Chinese government in 2005 led to an increased sensitivity of ER pass-through to domestic prices. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1279814 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1279814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1279814 Template-Type: ReDIF-Article 1.0 Author-Name: Solomon Abadi Dirar Author-X-Name-First: Solomon Author-X-Name-Last: Abadi Dirar Author-Name: Tekeste Berhanu Author-X-Name-First: Tekeste Author-X-Name-Last: Berhanu Author-Name: Dereje Getachew Author-X-Name-First: Dereje Author-X-Name-Last: Getachew Author-Name: Hossein Azadi Author-X-Name-First: Hossein Author-X-Name-Last: Azadi Title: Financial product development and members’ voluntary saving behavior in saving and credit cooperatives in Tigray: A case study in Endamohoni Woreda Abstract: This survey study aimed to analyze the financial product development and members’ saving behavior in saving and credit cooperative societies (SACCOs) in the Endamohoni Woreda district in Tigary, Ethiopia. Using cluster random sampling, the study was conducted in four SACCOs and selected 96 members from the SACCOs. Data were collected using structured questionnaire and focus group discussion. Binary logistic regression was employed to identify and analyze the determinants of members’ voluntary savings. Results showed that voluntary savings are significantly affected by age, marital status, educational level, number of dependents, access to training, household size, safety, and years of membership in SACCOs. The results also showed that the SACCOs provide a very limited range of financial products to their members. Yet, the survey indicated that the members have access to other formal financial institutions, other than their own SACCOs given that their access to loans was easier and service delivery was faster in those financial institutions than the SACCOs. Therefore, the SACCOs and the concerned bodies regarding the development promotion of SACCOs need to take into consideration the aforementioned factors when designing policies and strategies that aim at enhancing voluntary savings of the SACCOs’ members. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1279864 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1279864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1279864 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Joffe Author-X-Name-First: Michael Author-X-Name-Last: Joffe Title: Causal theories, models and evidence in economics—some reflections from the natural sciences Abstract: Models have been extensively analysed in economic methodology, notably their degree of ability to provide explanations. This paper takes a complementary, comparative approach, examining theory development in the natural sciences. Examples show how diverse types of evidence combine with causal hypotheses to generate empirically based causal theories—a cumulative process occurring over a long timescale. Models are typically nested within this broader theory. This could be a good model for research in economics, providing a methodology that ensures good correspondence with the target system—especially as economics research is largely empirical, and has effective methods for causal inference. This paper analyses the key features of three successful theories in the natural sciences, and draws out some lessons that may be useful to economists. Some examples of good practice in economics are noted, e.g. involving money and banking, and the growth of the state. On the other hand, the widespread pre-crisis use of dynamic stochastic general equilibrium (DSGE) models that ignored the financial sector raises the question, how to realise what has been omitted? Nesting models in an empirically based causal theory could solve this. Furthermore, some phenomena have clear explanations, but mainstream theory obscures them, as with the Lucas puzzle about the direction of international capital flows. And, the prevailing theories about capitalist growth do not explain the basic evidence on its temporal and spatial distribution. Economics could beneficially learn from the natural sciences. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1280983 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1280983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1280983 Template-Type: ReDIF-Article 1.0 Author-Name: Burçak Polat Author-X-Name-First: Burçak Author-X-Name-Last: Polat Title: FDI entry mode choice and ownership structure in Turkish market: A firm-level analysis Abstract: The choice of a foreign firm’s entry mode into a host country is a strategic decision which impacts its future survival and success in other countries. By employing multinomial logit regression, this study aims to investigate the impact of the firm’s level of financial data on the entry mode decisions of investors and their ownership structure in Turkey from 2005 to 2012. The empirical findings have revealed that larger firms with high rate of profitability ratios are more likely to choose the full-ownership mode over others. On the other hand, a higher rate of return on equity increases the probability of investors choosing the shared-ownership mode. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1283762 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1283762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1283762 Template-Type: ReDIF-Article 1.0 Author-Name: Senior Editors Author-X-Name-First: Senior Author-X-Name-Last: Editors Title: Acknowledgement of Reviewers Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1285646 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1285646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1285646 Template-Type: ReDIF-Article 1.0 Author-Name: Khalid M. Kisswani Author-X-Name-First: Khalid M. Author-X-Name-Last: Kisswani Author-Name: Mohammad I. Elian Author-X-Name-First: Mohammad I. Author-X-Name-Last: Elian Title: Exploring the nexus between oil prices and sectoral stock prices: Nonlinear evidence from Kuwait stock exchange Abstract: This paper investigates the relationship between oil prices (Brent and West Texas Intermediate (WTI)) and Kuwait Stock Exchange (KSE) prices at the sector level. In a nonlinear autoregressive distributed lag (NARDL) model, ten major sectors in Kuwait are studied using daily data from 3 January 2000 to 9 December 2015 for some sectors, and 14 May 2012 to 9 December 2015 for others. The findings show asymmetric long run effects between oil prices and some Kuwait sectoral stock prices. For these sectors, the empirical results offer evidence of short run asymmetric effect in case of WTI price measure, but no evidence of asymmetry was found in case of Brent price. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1286061 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1286061 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1286061 Template-Type: ReDIF-Article 1.0 Author-Name: Md. Noman Siddikee Author-X-Name-First: Md. Noman Author-X-Name-Last: Siddikee Author-Name: Mohammad Mafizur Rahman Author-X-Name-First: Mohammad Mafizur Author-X-Name-Last: Rahman Title: Effect of catastrophic disaster in financial market contagion Abstract: The study examined the contagion effect of financial market volatility from Australian capital market to Indian, New Zealand, Hong Kong, Chinese, Taiwan, and Japanese capital markets due to Australian catastrophe. In the first stage, we employed two-variable vector autoregression (VAR) model for calculating the residuals of the daily index return. In the second stage, we used adjusted correlation coefficient for detecting the significant increase in correlation coefficient of the VAR residuals after the catastrophes. Finally, Fishers r to z transformation was used for identifying contagion. After Victoria bushfire, a significant increase in the adjusted correlation coefficient of Australia with India and Hong Kong and their respective z > +1.96 validates contagion. The adjusted correlation coefficient of Australia with China and Japan increased after the Victoria bushfire but the z < +1.96 with (p > 0.05) does not confirm contagion, but rather exposed the persistence of high economic linkage. Apart from this, a significant decrease in the correlation coefficients with New Zealand is evident with corresponding z < −1.96 and (p < 0.05) advocates low economic linkage among them. After New South Wales (NSW) bushfire, contagion persists only between Australia and Hong Kong and the economic linkage of Australia and Taiwan has notably increased. The negative z score with (p > 0.05) confirms absence of contagion effect in New Zealand, India, and Japan after shocks. The findings of the study recommend the Hong Kong and Indian investors to carefully examine the catastrophe-sensitive industry before taking major investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1288772 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1288772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1288772 Template-Type: ReDIF-Article 1.0 Author-Name: Lubna Zia Author-X-Name-First: Lubna Author-X-Name-Last: Zia Author-Name: Muzammal Ilyas Sindhu Author-X-Name-First: Muzammal Author-X-Name-Last: Ilyas Sindhu Author-Name: Shujahat Haider Hashmi Author-X-Name-First: Shujahat Author-X-Name-Last: Haider Hashmi Title: Testing overconfidence bias in Pakistani stock market Abstract: Excessive trading phenomenon is contrary to the concept of traditional finance that is based on the rational expectation theorem and efficient market hypothesis. Therefore, this study is aimed at exploring the existence of overconfidence behavior in the stock market. The market-wide panel VAR model is used to investigate the lead–lag relationship between stock returns and turnover. Our results suggest that investors are overconfident in Pakistani stock market because turnover depends directly upon stock returns. The findings have important implications for investors and brokers for developing appropriate trading strategy. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1289656 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1289656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1289656 Template-Type: ReDIF-Article 1.0 Author-Name: Waheed Akhter Author-X-Name-First: Waheed Author-X-Name-Last: Akhter Author-Name: Saad Ullah Khan Author-X-Name-First: Saad Ullah Author-X-Name-Last: Khan Title: Determinants of Takāful and conventional insurance demand: A regional analysis Abstract: In this study, we focused on analysing and differentiating the determinants of conventional insurance and Takāful demand across ASEAN and Middle East Regions. We used panel data econometrics on a sample of 14 Asian countries having both conventional insurance and Takāful over the period 2005–2014. We applied fixed and random effect regression models to assess the impact of macroeconomic and demographic factors on conventional insurance and Takāful demand. Income and financial sector were found to have significant positive impact on insurance demand across all regions. On the other hand, dependency ratio was found to be negatively affecting Takāful demand across all regions while inflation shows positive impact. Urbanization was found to be significant positive impact on both conventional insurance and Takāful demand. Financial sector development positively triggers the insurance and Takāful demand across ASEAN region, while it triggers conventional insurance demand only in Middle East Region. Education shows negative impact on Takāful demand across both regions while it shows positive impact on insurance demand in Middle East. The study recognises the key role of urbanization and education in creating awareness to enhance Takāful demand in large populated countries of ASEAN and South Asia. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1291150 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1291150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1291150 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed Ziaul Hoque Author-X-Name-First: Mohammed Ziaul Author-X-Name-Last: Hoque Title: Mental budgeting and the financial management of small and medium entrepreneurs Abstract: The present study examines the influences of mental budgeting on the financial management of SMEs, via a survey of SME owners’ practices regarding various issues in financial management. The samples of 201 SMEs were randomly selected from the city of Chittagong, Bangladesh and interviewed using a structured questionnaire and the data have been analysed using descriptive statistics, principal component analysis and ordinal logistic regression. The results of the study show that own savings and loans from relatives are the major sources of the business capital with micro-credit coming in the second place. The earnings from existing business were mostly used to meet family expenditures. The results also show that Mental Budgeting (MB) and its determinants like other sources of income over existing business, never spending more than a fixed amount, having an overview of checking balance, long-term future orientation and financial product knowledge have significant influences on the financial management of SMEs. However, no evidences of several aspects were found in the same field. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1291474 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1291474 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1291474 Template-Type: ReDIF-Article 1.0 Author-Name: Paul Kwame Nkegbe Author-X-Name-First: Paul Kwame Author-X-Name-Last: Nkegbe Author-Name: Naasegnibe Kuunibe Author-X-Name-First: Naasegnibe Author-X-Name-Last: Kuunibe Author-Name: Samuel Sekyi Author-X-Name-First: Samuel Author-X-Name-Last: Sekyi Title: Poverty and malaria morbidity in the Jirapa District of Ghana: A count regression approach Abstract: Malaria potentially affects everyone in the tropics and sub-tropics, however, the poor and vulnerable are worse affected mainly due to the socio-economic constraints that confront them. In Ghana, the Upper West Region, which is the poorest, is one of the worse affected in terms of malaria burden. Given social and economic factors directly relate to malaria morbidity, global malaria control strategy unfortunately has not particularly targeted the effects of socio-economic deprivation on the disease morbidity and control. This study investigates the linkages between poverty and malaria morbidity using count data models, with Jirapa District in the Upper West Region of Ghana as the study area. Empirical results confirm the presence of poverty in the study area as more than half of households depend on heads whose incomes are below the poverty line of US$1 per day and that significant relationships exist between poverty and education on the one hand and malaria morbidity on the other, since gender and level of education of household head, and household poverty situation are significant determinants of malaria morbidity. The study thus recommends that policies aimed at reducing and/or eradicating malaria should include measures to increase income earning capacity of households in the study area. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1293472 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1293472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1293472 Template-Type: ReDIF-Article 1.0 Author-Name: Daphne Sobolev Author-X-Name-First: Daphne Author-X-Name-Last: Sobolev Author-Name: Bryan Chan Author-X-Name-First: Bryan Author-X-Name-Last: Chan Author-Name: Nigel Harvey Author-X-Name-First: Nigel Author-X-Name-Last: Harvey Title: Buy, sell, or hold? A sense-making account of factors influencing trading decisions Abstract: We investigated the effects of news valence, the direction of trends in graphically presented price series, and the culture and personality of traders in a financial trading task. Participants were given 12 virtual shares of financial assets and asked to use price graphs and news items to maximize their returns by buying, selling, or holding each one. In making their decisions, they were influenced by properties of both news items and price series but they relied more on the former. Western participants had lower trading latencies and lower return dispersions than Eastern participants. Those with greater openness to experience had lower trading latencies. Participants bought more shares when they forecast that prices would rise but failed to sell more when they forecast that they would fall. These findings are all consistent with the view that people trading assets try to make sense of information by incorporating it within a coherent narrative. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1295618 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1295618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1295618 Template-Type: ReDIF-Article 1.0 Author-Name: Wiem Ben Jabra Author-X-Name-First: Wiem Author-X-Name-Last: Ben Jabra Author-Name: Zouheir Mighri Author-X-Name-First: Zouheir Author-X-Name-Last: Mighri Author-Name: Faysal Mansouri Author-X-Name-First: Faysal Author-X-Name-Last: Mansouri Title: Determinants of European bank risk during financial crisis Abstract: This paper examines the determinants of European bank risk-taking during major financial crisis. Using a sample of banks from 26 countries over the period 2005–2015, we examine the nature of the relationship between bank risk, bank characteristics, regulatory, institutional and macroeconomic variables. We use a dynamic panel data modeling structure to capture the potential discrepancies in risk-taking behavior. We subdivide our sample into two sub-samples (East Europe and West Europe countries). We show that macroeconomic and regulatory variables seem to have non-negligible impact on bank risk-taking attitudes. We document that the relationship between bank risk, internal and external factors differs across samples. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1298420 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1298420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1298420 Template-Type: ReDIF-Article 1.0 Author-Name: M.S. Konovalova Author-X-Name-First: M.S. Author-X-Name-Last: Konovalova Author-Name: A.G. Maksimov Author-X-Name-First: A.G. Author-X-Name-Last: Maksimov Title: On sensitivity of industries and companies to the state of economy Abstract: Cyclicality in industries and companies is scrutinized in the paper. Cyclical industry/firm is that which parameters (in particular, value added by industry and economic value added) have high correlation with the parameter reflecting economic cycles (in particular, GNP). The theoretic approval for the thesis that durable goods industries are more cyclical than nondurable ones is already provided. The aim of the research is to conduct an empirical analysis of cyclicality of Canadian and Russian industries in terms of the aforementioned statement and cyclicality of Russian companies as components of industrial structure. According to the results, the extents of cyclicality of durable and nondurable goods industries in Canada are equal. The theoretical thesis under consideration is correct for the industrial structure of Russia: durable goods industries in Russia are more cyclical than nondurable ones. Moreover, Russian companies also comply with the aforementioned statement. In addition to this, the effect of asymmetrical reaction of industries and companies on expansion and contraction happening in the economy as well as a role of company’s management in regulation of the extent of cyclicality of a company are considered in the paper. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1299074 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1299074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1299074 Template-Type: ReDIF-Article 1.0 Author-Name: Andrey Aistov Author-X-Name-First: Andrey Author-X-Name-Last: Aistov Title: Time distributed difference-in-differences estimates of return to training Abstract: This work is devoted to estimating the individual return to worker’s professional training. The research is based on the personnel records of Russian metallurgical enterprise (2006–2010). The main factors that distinguish this paper from others are the following: (I) We focused on the internal labour market, concluding that it has common peculiarities of wage setting concerned with training as an open labour market. (II) We show that mobility-friendly training programs give high returns, and not only in transition economies. (III) We suggest controlling for mobility by choosing a corresponding control group. (IV) We use a robust new specification that is reactive to different dynamics of the dependent variable in treated and control groups in difference-in-differences estimates. (V) We compared three different kinds of training and our conclusions could have practical application. The best way to raise personal earnings is on-the-job training. The internal mobility caused by retraining courses has the same impact on workers as if they lacked retraining. The wages of workers trained in the same field grow randomly for a few months before and after training. Nevertheless it is difficult to prove the causal effect of this kind of training on wage growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1300978 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1300978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1300978 Template-Type: ReDIF-Article 1.0 Author-Name: Levon Kazaryan Author-X-Name-First: Levon Author-X-Name-Last: Kazaryan Author-Name: Gregory Kantorovich Author-X-Name-First: Gregory Author-X-Name-Last: Kantorovich Title: Taking into account the rate of convergence in CLT under Risk evaluation on financial markets Abstract: This paper examines “fat tails puzzle” in the financial markets. Ignoring the rate of convergence in Central Limit Theorem (CLT) provides the “fat tail” uncertainty. In this paper, we provide a review of the empirical results obtained “fat tails puzzle” using innovative method of Yuri Gabovich based on the rate of convergence in CLT to the normal distribution, which is called G-bounds. Constructed G-bounds evaluate risk in the financial markets more carefully than models based on Gaussian distributions. This statement was tested on the 24 financial markets exploring their stock indexes. Besides, this has tested Weak-Form Market Efficiency for investigated markets. As a result, we found out the negative correlation between the weak effectiveness of the stock market and the thickness of the left tail of the profitability density function. Therefore, the closer the risk of losses on the stock market to the corresponding risk of loss for a normal distribution, the higher the probability that the market is weak effective. For non-effective markets, the probability of large losses is much higher than for a weak effective. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1302870 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1302870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1302870 Template-Type: ReDIF-Article 1.0 Author-Name: Yaroslav Murashov Author-X-Name-First: Yaroslav Author-X-Name-Last: Murashov Author-Name: Tatiana Ratnikova Author-X-Name-First: Tatiana Author-X-Name-Last: Ratnikova Title: Estimation of the Russian informal economy size on the household budget survey data Abstract: In the paper, we make an attempt to estimate the size of informal economy on the base of micro-data. Two main approaches are described and compared. They are implemented on the base of an RLMS sample for 2012. The first method, called single equation approach, is based on the specific category of household expenditures and the arbitrarily defined household type (self-employed or employee). The second method allows to obtain the results for income under-report for both wage income and self-employment income, and uses information on all the household current consumption categories. The single equation model is restricted to one expenditure category and two types of households, although it enables to perform the estimation on different subsamples of households with various socioeconomic characteristics. The comparison of the system of equations approach with single equation is made concerning the scale of informal economy and the role of wage-income under-report, which is possible to obtain through the system. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1307642 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1307642 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1307642 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Zia Ur Rehman Author-X-Name-First: Muhammad Author-X-Name-Last: Zia Ur Rehman Author-Name: Zain ul Abidin Author-X-Name-First: Zain Author-X-Name-Last: ul Abidin Author-Name: Faisal Rizwan Author-X-Name-First: Faisal Author-X-Name-Last: Rizwan Author-Name: Zaheer Abbas Author-X-Name-First: Zaheer Author-X-Name-Last: Abbas Author-Name: Sajjad Ahmad Baig Author-X-Name-First: Sajjad Ahmad Author-X-Name-Last: Baig Title: How investor sentiments spillover from developed countries to developing countries? Abstract: This paper applies a sentiment index to check the influence of regional developed countries like Japan and Germany on the sentiments in regional developing countries like Pakistan and Turkey, respectively. The index has been created using a principal component approach with modified proxies. The results indicate that there is a significant influence of developed markets on developing markets also the sentiment index created in this study is good indicator regarding the return pattern of the stock exchange. This study has followed the footsteps of previous studies for methodology and the time period which is used ranged from 29 December 2004 to 31 December 2014. The weekly data has been collected with Wednesday prices so to avoid the white noise, start-of-the week and end-of-the week effect. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1309096 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1309096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1309096 Template-Type: ReDIF-Article 1.0 Author-Name: Y. Kopnova Author-X-Name-First: Y. Author-X-Name-Last: Kopnova Title: A statistical analysis of the social and environmental risks of the international trade in virtual water Abstract: This work develops a statistical methodology of analysis of the international trade in virtual water in the context of sustainable evolution. Using the example of agriculture, the impact of the flows of virtual water in the composition of products using indicators related to social and environmental risks was investigated. In the analysis data from websites of World Bank and the World trade organization for the period from 1996 to 2012 were used. The methodology was based on the toolkit of econometric modelling. The analysis showed the presence of stable groups of countries, including the groups of mainly exporting and mainly importing agricultural products. The share of the third group of countries with the varying sign of the balance of export and import amounted to only 30%. The factors influencing the formation of groups, in particular, were the role of water resources in terms of their scale and efficiency of use. The study of the impact of export and import of agricultural products on the indicators related to environmental and social risks identified significant problematic dependencies. The overall pattern for the three groups was that the countries with more intense trade flows had a lower rating of ecological sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1310416 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1310416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1310416 Template-Type: ReDIF-Article 1.0 Author-Name: Irfan Ali Author-X-Name-First: Irfan Author-X-Name-Last: Ali Author-Name: Waheed Akhter Author-X-Name-First: Waheed Author-X-Name-Last: Akhter Author-Name: Namrah Ashraf Author-X-Name-First: Namrah Author-X-Name-Last: Ashraf Title: Impact of Muslim Holy Days on Asian stock markets: An empirical evidence Abstract: This study investigated the impact of Muslim Holy Days on daily stock returns of Asian financial markets for a period of 2001–2014. These markets include Pakistan, Bahrain, Saudi Arabia, and Turkey. The study has tried to isolate the effect of Gregorian calendar anomalies from Muslim Holy Days to certify that the documented effect is actually a result of Muslim Holy Days rather than Gregorian calendar anomalies. Pooled fixed/random effect Panel Regression is used to check the underlined effect. The results reveal that Eid-ul-Fitr is the only Holy day, which has significant positive effect on stock returns of Asian markets, while all other Holy Days have no effect. Friday is the only Gregorian calendar anomaly, which exists in Asian markets. These results provide support to the fact that both Islamic and Gregorian calendar anomalies exist in Asian markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1311096 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1311096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1311096 Template-Type: ReDIF-Article 1.0 Author-Name: Evgenii V. Gilenko Author-X-Name-First: Evgenii V. Author-X-Name-Last: Gilenko Author-Name: Elena A. Mironova Author-X-Name-First: Elena A. Author-X-Name-Last: Mironova Title: Modern claim frequency and claim severity models: An application to the Russian motor own damage insurance market Abstract: During 2012–2015, the motor insurance in Russia received considerable attention both from the parts of the Russian government and from the insurance business. This was caused, in particular, by significant losses from the side of insurance companies that occurred during 2012–2013. Experts explain these losses not only by the effects of inflation or by the changes in Russian insurance legislation, but also by the incomplete set of factors that has been used by insurance companies for tariff calculation. This research analyses the factors that influence claim frequency and claim severity in the Russian motor own damage (MOD) insurance to assess the efficiency of the existing set of factors used for MOD insurance tariff calculations. To this end, we employ the appropriate claim frequency and claim severity models on the data provided by one of the leading St. Petersburg (Russia) insurance companies for the period of 2012–2013. The results of our calculations, organized within a resampling framework, show that additional factors may indeed be worth taking into account in the MOD insurance tariff calculation. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1311097 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1311097 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1311097 Template-Type: ReDIF-Article 1.0 Author-Name: Gholamhossein Mahdavi Author-X-Name-First: Gholamhossein Author-X-Name-Last: Mahdavi Author-Name: Abbas Ali Daryaei Author-X-Name-First: Abbas Ali Author-X-Name-Last: Daryaei Title: Audit firm, retain or rotation? (client and audit firm perspectives) Abstract: The purpose of this study is providing a framework for understanding the role of audit firm rotation in client expected value. And to explain the principles of client choice by auditor via specified models. We formalize this idea through stakeholder theory. Results show that the owners’ expected outcome is increase in the level of reporting quality, all else held equal. Also client selection is a decrease in function with regard to the factors affecting it. Like the number of sub-branches, probability of good selection, probability of good perceived in a branch point, stages ahead and taking account of investigative intuition. We propose that retain-rotation audit firm vs. good or bad selection client relationship developed based on bid and ask process. Drawing on our analytical framework, we provide directions for further opportunities for research of client and audit firm. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1313559 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1313559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1313559 Template-Type: ReDIF-Article 1.0 Author-Name: Sarah Khan Author-X-Name-First: Sarah Author-X-Name-Last: Khan Author-Name: Waheed Akhter Author-X-Name-First: Waheed Author-X-Name-Last: Akhter Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Service quality and the moderating effect of Shari’ah perception on client satisfaction: A comparison of Islamic and conventional microfinance in Pakistan Abstract: Microfinance is an emerging concept which is improving the socioeconomic status of customers. This study assesses customer satisfaction of clients of Islamic and conventional microfinance providers using a sample of 578 clients i.e. 289 from each side. Akhuwat and Kashf (Islamic microfinance) and RCDS and DAMEN (conventional microfinance) are selected. The correlation, regression, ANOVA, and interaction tests are used for testing the relationship of Shari’ah perception as moderator between service quality and client satisfaction. The results indicate that Shari’ah perception acts as a strong moderator in case of Islamic microfinance whereas it is a weak moderator in case of conventional microfinance. The study concludes that Shari’ah perception is playing a vital role in enhancing the customer satisfaction in Islamic microfinance. It has important implications for policy-makers and Islamic microfinance providers to design Shari’ah awareness programs to enhance the Shari’ah perception of low income population. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1315206 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1315206 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1315206 Template-Type: ReDIF-Article 1.0 Author-Name: Fitriya Fauzi Author-X-Name-First: Fitriya Author-X-Name-Last: Fauzi Author-Name: Abdul Basyith Author-X-Name-First: Abdul Author-X-Name-Last: Basyith Author-Name: Dani Foo Author-X-Name-First: Dani Author-X-Name-Last: Foo Title: Committee on board: Does it matter? A study of Indonesian Sharia-listed firms Abstract: The committee on board includes audit committee and nomination committee that currently has been questioned as to whether the firm value is also affected by the committees’ performance that has been the subject of attention. Apparently, this study is the first to attempt providing an evidence of committees’ role on to the extent of its contribution to firm value in the context of Indonesian Sharia-listed firms as the establishment of Islamic-compliance firms is currently experiencing an upward trend in many countries. Hence it is enticing to examine the impact of committee on board as part of corporate governance mechanisms on firm value in the Indonesian Sharia-listed firms. Using an Indonesian Sharia-listed firms which counts for 30 firms in the quarterly period of 2009 to 2015, this study employs a 720 balanced panel, using Generalized Least Square. The results reveal that the audit committee and the nomination committee have a significant impact on firm value (Tobin’s Q). The non-significant result for ROA suggesting that the mixed measured of book and market is viewed more reliable for investors as it indicates the overall performance measure. Meanwhile the result of the number of audit committee meeting yielded no significant impact on firm value; this may be due to no restrictions on the number of positions of audit committee serves in firms, therefore, the auditor may be manifold in some companies which can be overlapping. Further, the number of audit committee only meets the regulations and yet the transparency is still far beyond. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1316547 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1316547 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1316547 Template-Type: ReDIF-Article 1.0 Author-Name: Kenichi Shimamoto Author-X-Name-First: Kenichi Author-X-Name-Last: Shimamoto Title: Decomposition analysis of the pollution intensities in the case of the United Kingdom Abstract: This paper examines the changes to pollution intensities (SO2, NOx, CO and CO2) of the United Kingdom, by using the Divisia index decomposition technique. The paper decomposes the drivers of the changes in pollution intensities into not only technology contribution and composition contribution but also into physical capital intensity contribution. This is because an increase in physical capital will lead to further use of energy and resources, which will further impact the environment. Compared to past studies, this paper extends the analysis to each industrial sector and includes more focused policy implications. The results find that the aggregate pollution intensity has declined during the period examined. As for SO2 and NOx, the technology effect was the largest contributor for the decline in aggregate pollution intensity, during a period where economic instruments such as pollution taxes were not yet effectively applied to combat environmental issues, but major environmental statutory frameworks to regulate air pollution were developed along with voluntary measures such as environment management systems. On the other hand, concerning CO and CO2 over the same time period observed, the contribution of technology effect for the aggregate intensity was small, compared with SO2, and NOx, which implies that economic instruments such as emission trading may be necessary for these pollutant. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1316553 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1316553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1316553 Template-Type: ReDIF-Article 1.0 Author-Name: Marina Maniati Author-X-Name-First: Marina Author-X-Name-Last: Maniati Author-Name: Evangelos Sambracos Author-X-Name-First: Evangelos Author-X-Name-Last: Sambracos Title: Decision-making process in shipping finance: A stochastic approach Abstract: Shipping markets irregularity due to high-level volatility of freight rates and asset prices increases the risk of banks’ invalid financial strategy. Risk is further increased due to the heterogeneous shipping market, despite the regulations set by the Basel Convention. Consistent with the above, the present work contributes to the existing methodological aspects of bank’s financial strategy on shipping finance by enhancing the role of the credibility theory, which balances the individual bank policy with the market as a whole. This has been primarily forwarded on by the analysis of the operational environment’s internal factors of an individual bank combined with the whole shipping banks’ loans portfolio by estimating the credibility factor to the decision of the bank to either increase or decrease financing in the relevant market. The important factors extracted from the principal components analysis are linked with interest income on loan and operating profit accounts. The final model predicts that the optimal decision is positive driven by both the aforementioned dependent variables, while the interest income on loan variable has more influence compared with that of the operating profit variable. In the absence of the influence of the dependent variables, the bank’s decision strategy matches the market’s strategy by 77% that decreases as the dependent variables increase their influence. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1317083 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1317083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1317083 Template-Type: ReDIF-Article 1.0 Author-Name: Geeta Duppati Author-X-Name-First: Geeta Author-X-Name-Last: Duppati Author-Name: Albert Sune Author-X-Name-First: Albert Author-X-Name-Last: Sune Author-Name: Navajyoti Samanta Author-X-Name-First: Navajyoti Author-X-Name-Last: Samanta Title: Corporate governance, research and development volatility and firm performance - Evidence from Spain and Ireland Abstract: The present study sheds light on the comparative experiences of the two countries originating from differing legal systems and describes how their codes and practices affect the publicly listed firms’ performance. It investigates the linkages between Research and Development (R&D) expenditures, Board characteristics and firm performance using a sample of Irish and Spanish firms for the period 2005–2014. To do this, the study uses ROA and Tobin’s Q as proxies for financial performance; and board size, non-executive directors, female representation and CEO duality as board structure characteristics; and R&D expenditure volatility, employing different techniques that include OLS, fixed effects model and Quantile regression model. The difference-in-difference model is used to verify the significance of robustness of relationships considering the global financial crisis as an exogenous shock. The descriptive statistics suggests a comparability of boards’ independence for the Spanish- and Irish-listed firms. Although the Spanish firms are less dual than Irish firms, the results are comparable on the association between CEO duality and firm performance. The findings of Spanish-listed firms on the relationship between increase and decrease in the R&D expenditures volatility and performance support the creative–destructive perspective that suggests effective governance in funding allocation to R&D. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1317117 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1317117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1317117 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Surajo Sanusi Author-X-Name-First: Muhammad Surajo Author-X-Name-Last: Sanusi Title: Investigating the sources of Black’s leverage effect in oil and gas stocks Abstract: The Black’s leverage effect hypothesis postulates that a negative stock return innovation increases the financial leverage of a firm since the value of equity decreases at a given level of debt, which, in turn, creates a higher equity return volatility in the future. The paper is aimed at investigating the authenticity of the Black’s leverage effect hypothesis and the relationship between negative stock returns and the financial leverage of the UK oil and gas stocks from 2004 to 2015. For each stock, exponential generalised autoregressive conditional heteroscedasticity model was estimated using Fama–French–Carhart 4-factor asset pricing model to extract the difference between the effects of negative and positive stock return innovations, regarded as leverage effect. The leverage effect parameter was further regressed on the financial leverage ratios of the book value of long-term debt to total assets, interest expenses to total assets and long-term debt to market value of equity to examine whether variation in the leverage parameter was as a result of variation in the firm’s financial leverage. The findings of the study show that Fama-French-Carhart four risk factors of market, size effect, value and momentum were significant in the stock returns of most of the oil and gas companies. The mixed results in the significance level of the factors were attributed to the differences in individual firm characteristics. An evidence of leverage effect was also found in all the oil and gas stock returns but no evidence to suggest it was derived from the changes in the financial leverage of the companies. The implication of these findings for financial managers in the oil and gas industry was that while asset pricing frameworks such as CAPM and its extensions are relevant in determining oil stock returns, the level of gearing is irrelevant, albeit it has been recognised as one of the determinants of the firm’s level of risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1318812 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1318812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1318812 Template-Type: ReDIF-Article 1.0 Author-Name: M. Kateregga Author-X-Name-First: M. Author-X-Name-Last: Kateregga Author-Name: S. Mataramvura Author-X-Name-First: S. Author-X-Name-Last: Mataramvura Author-Name: D. Taylor Author-X-Name-First: D. Author-X-Name-Last: Taylor Title: Parameter estimation for stable distributions with application to commodity futures log-returns Abstract: This paper explores the theory behind the rich and robust family of α$ \alpha $-stable distributions to estimate parameters from financial asset log-returns data. We discuss four-parameter estimation methods including the quantiles, logarithmic moments method, maximum likelihood (ML), and the empirical characteristics function (ECF) method. The contribution of the paper is two-fold: first, we discuss the above parametric approaches and investigate their performance through error analysis. Moreover, we argue that the ECF performs better than the ML over a wide range of shape parameter values, α$ \alpha $ including values closest to 0 and 2 and that the ECF has a better convergence rate than the ML. Secondly, we compare the t location-scale distribution to the general stable distribution and show that the former fails to capture skewness which might exist in the data. This is observed through applying the ECF to commodity futures log-returns data to obtain the skewness parameter. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1318813 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1318813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1318813 Template-Type: ReDIF-Article 1.0 Author-Name: Joaquim Ramos Silva Author-X-Name-First: Joaquim Ramos Author-X-Name-Last: Silva Author-Name: Carla Regina Ferreira Freire Guimarães Author-X-Name-First: Carla Regina Ferreira Author-X-Name-Last: Freire Guimarães Title: Wage differentials in Brazil: Tourism vs. other service sectors Abstract: This study aims to analyse the wage differentials between the Brazilian tourism and non-tourism service sectors. The statistics originate from micro-data for the year of 2012, published by the National Household Sample Survey, and released by the Brazilian Institute of Geography and Statistics. Using an econometric model, based on an updated version of the Oaxaca-Blinder decomposition, it was possible to measure wage differentials between workers in both sectors. We report that returns in the non-tourism sector were higher than that of the tourism sector, and also conclude that in the Brazilian service sector, the wage gap is derived from differences in worker characteristics, to the detriment of the tourism industry. Moreover, variables such as schooling and age proved to have weight for the explanation of the wage differential, the latter being taken as a proxy of experience in the labour market. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1319606 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1319606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1319606 Template-Type: ReDIF-Article 1.0 Author-Name: Dziri Houda Author-X-Name-First: Dziri Author-X-Name-Last: Houda Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Title: The venture capitalist’s cognitive approach: Validation through the Tunisian context Abstract: This study is aimed to examine the major determinants of cognitive approach investigated with according to a set of 150 firms financed by Tunisian venture capital agencies observed over the period 2010–2015. We are led to conclude that some venture capitalist’s characters do appear to affect the cognitive contribution within funded firms. In addition, it has been revealed that the manager’s share held, the venture capitalist’ participation in the capital and the firm age appear to have a significant influence on the cognitive approach adopted by the venture capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1323371 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323371 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323371 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Rehman Author-X-Name-First: Abdul Author-X-Name-Last: Rehman Author-Name: Luan Jingdong Author-X-Name-First: Luan Author-X-Name-Last: Jingdong Title: An econometric analysis of major Chinese food crops: An empirical study Abstract: The basic objective of this study was to investigate and explore the relationship between major food crops of China and their relationship with agricultural gross domestic product (GDP) using an econometric analysis. Agriculture is considered an important sector of the Chinese economy as it accounted for about 10% of GDP. The total agricultural land of China covers 36% of the area of the world. In order to highlight the actual performance of the agricultural production and the output of major food crops, this study explored the relationship between agricultural GDP and the major crops output including wheat, cotton, rice, sugarcane, corn, and tubers in China over the period of 35 years from 1980 to 2015. The time series data were collected from the China Bureau of Statistics, Ministry of Agriculture China and various publications. Crop data were analyzed using the Ordinary Least Square Method and Augmented Dickey Fuller test and results were interpreted using the Johansen co-integration test. Our study found that output of wheat, cotton, sugarcane, corn, and tubers has positive and significant relation with the agricultural gross domestic product of China, while the output of rice crop has a negative but no significant relation with agricultural GDP of China. The study suggests that the Government of China should start new funding schemes for the development and better production of rice crops. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1323372 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323372 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323372 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Title: Explaining public investment dynamics in Sub-Saharan Africa: The role of country governance structures Abstract: This paper assesses the contribution of country governance structures to resolving the unsettled crowding-in–crowding-out hypothesis of public and private investments and arresting the recent fall of public investment in Sub-Saharan Africa (SSA). Within an Arellano-Bond Dynamic Panel Framework, we estimate a derived accelerator model that allows for inclusion of country governance structures (control of corruption, political stability, rule of law, governance effectiveness, voice and accountability and regulatory quality) in a public investment model. The results, based on data from SSA, suggest that country governance structures that control corruption, ensure political stability, regulatory quality and rule of law enhance public investment in SSA. But the presence of these governance structures does not curtail the crowding out effect of private investment on public investment. Thus, policies directed at improving public investment in SSA should target governance structures in addition to the conventional factors. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1323987 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323987 Template-Type: ReDIF-Article 1.0 Author-Name: Anupam Dutta Author-X-Name-First: Anupam Author-X-Name-Last: Dutta Author-Name: Md Hasib Noor Author-X-Name-First: Md Author-X-Name-Last: Hasib Noor Title: Oil and non-energy commodity markets: An empirical analysis of volatility spillovers and hedging effectiveness Abstract: Although a large number of empirical papers have examined the price spillover in global oil and non-energy commodity markets, very little is known about the volatility transmission between these two markets. The present study aims to conceal this gap by investigating the volatility cross effects between oil and three different non-energy commodity markets. Using the bivariate VAR-GARCH models, we do not find any evidence of volatility linkage between oil and agricultural product markets during the sample period used. We, however, document that oil market sends volatility to both metal and non-energy aggregate markets. This finding is not surprising, since petroleum-related products are one of the major production inputs in metal industries and hence the production process of metals largely depends on the crude oil market. Since various financial assets are traded on the basis of commodity markets, our results are beneficial for portfolio diversification and hedging decisions. Policy-makers could also use the findings of this research to reduce the impact of oil price uncertainty on metal and agricultural markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1324555 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1324555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1324555 Template-Type: ReDIF-Article 1.0 Author-Name: Fitriya Fauzi Author-X-Name-First: Fitriya Author-X-Name-Last: Fauzi Author-Name: Abdul Basyith Author-X-Name-First: Abdul Author-X-Name-Last: Basyith Author-Name: Poh-Ling Ho Author-X-Name-First: Poh-Ling Author-X-Name-Last: Ho Title: Women on boardroom: Does it create risk? Abstract: This study examines the impact of the women existence on corporate board. It is believed that the existence of women on board adds more value to the company as more women bring different perspectives on the decision-making process and the company’s strategic plans. Using Islamic listed-firms in the Indonesian Stock exchange, this study employs 7-year panel data comprising 840 observations from 2009 to 2015 quarterly data of 30 listed-firms that comply with Islamic law. Generalized Least Square is employed in this study and the results revealed that the presence of female CEOs has lowered the firm’s risk for all risk proxies. Female CEOs having a higher academic qualification, overseas qualification, and business degree tends to lower the firm’s risk. The result also indicates that the younger the age of female CEOs and the longer tenure of the female CEOs, the lower the firm’s risk. Furthermore, more female directors on boardroom have a significant impact on firm’s risk as the higher the number of female directors the lower the firm’s risk (CR and FCF). In addition, female chief financial officer tends to lower the firm’s risk as they are believed to be more conservative in dealing with the financial issues. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1325117 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1325117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1325117 Template-Type: ReDIF-Article 1.0 Author-Name: R.J. Powell Author-X-Name-First: R.J. Author-X-Name-Last: Powell Title: New perspectives on bank risk in Malaysia Abstract: Stable banks in individual ASEAN countries are essential to the economic stability of the ASEAN region as these countries move towards the goal of greater financial integration in the region. This study comprehensively explores bank risk in Malaysia as compared to the ASEAN region over an 18-year period which includes the Asian and Global Financial Crises. Metrics used include non-performing loans (NPLs), conditional distance to default (CDD which focuses on tail risk of asset volatility and is the authors own measure of bank default based on an extension to the Merton distance to default (DD) model) and a tail risk (TR) measure being the difference between DD and CDD asset volatility. DD is usually applied to corporate customers of banks but has been applied in the literature to banks themselves, which is the approach used for CDD in this study. Multiple regression analysis is undertaken to assess the impact of CDD on returns. The regression and default results are compared between small and large banks. Malaysian banks were found to have consistently lower risk than the ASEAN region, with smaller Malaysian banks exhibiting greater risk than larger banks during non-crisis periods, but to a lesser degree during crisis periods. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1326217 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1326217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1326217 Template-Type: ReDIF-Article 1.0 Author-Name: Mussa Juma Author-X-Name-First: Mussa Author-X-Name-Last: Juma Author-Name: Min Cherng Lee Author-X-Name-First: Min Cherng Author-X-Name-Last: Lee Author-Name: Seong Tah Chin Author-X-Name-First: Seong Tah Author-X-Name-Last: Chin Author-Name: Kian Wah Liew Author-X-Name-First: Kian Wah Author-X-Name-Last: Liew Title: Evaluation of variable annuity guarantees with the effect of jumps in the asset price process Abstract: Financial crisis in 2007–2008 have caused losses to life insurance companies issuing variable annuities with guarantees. This is partly due to failure of variable annuity (VA) issuers to anticipate the large variations in asset prices during the financial crisis times in their pricing framework and also setting a higher guaranteed rate. This study aims to investigate the pricing of the guaranteed minimum death and accumulation benefits embedded in flexible premium VA. We compare the prices from calibrated Black–Scholes model to that of calibrated jump-diffusion model. Although both models assume constant volatility, the fact that Black–Scholes model ignores abnormal asset price changes due to jumps is likely to under-price the VA. We also conduct a case study to analyse the impact on guarantee fees for different stock market performance and regional mortality rates. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1326218 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1326218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1326218 Template-Type: ReDIF-Article 1.0 Author-Name: Mohd Naim Bin Mohd Johari Author-X-Name-First: Mohd Naim Bin Mohd Author-X-Name-Last: Johari Author-Name: Adem Kilicman Author-X-Name-First: Adem Author-X-Name-Last: Kilicman Title: Hopf bifurcation in an open monetary economic system: Taylor vs. inflation targeting rules (Malaysian case) Abstract: The main objectives of this research are to analyze the trends of expectations condition within Malaysian economic system and investigate the existence of Hopf bifurcation in the economic dynamical system’s policy in order to examine the existence of periodic solutions. The study uses two types of monetary policy rules which are namely: Taylor rule and inflation targeting rule. The results reveal that the patterns of expectations condition for Malaysia economic system from 2004 until 2014 are quite similar except for exchange rate case. Furthermore, it shows that Hopf bifurcation occurs within the policy’s variables in both forms of rules in Malaysian open economic system. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1327184 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1327184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1327184 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Enamul Hoque Author-X-Name-First: Mohammad Enamul Author-X-Name-Last: Hoque Author-Name: Noor Azuddin Yakob Author-X-Name-First: Noor Azuddin Author-X-Name-Last: Yakob Title: Revisiting stock market development and economic growth nexus: The moderating role of foreign capital inflows and exchange rates Abstract: This study re-examines the stock market development and economic growth nexus. Also, examine the moderating role of foreign capital inflows and exchange rate on the relationship between stock market development and economic growth of Malaysia during 1981–2016. This study applies Granger test, ARDL (with bound testing) approach, and multivariate regression approach to examine extent and direction of the relationships among variabels, empirically. Granger causality test suggests that there are unidirectional effects of stock market development to Malaysian economic growth. Using the bound test for co-integration, this study finds there is a long run association between stock market development and economic growth. However, ARDL model reports that, in the short run and long run, stock market promotes the economic growth of Malaysia which is consistent with Granger causality test. Aditionally, foreign capital inflows and exchange rate has significant positive and negative moderating effects, respectively, on the relationship between stock market development and economic growth. Nevertheless, when both foreign capital inflows and exchange rate interact with each other, there is a joint positive effect on the relationship between stock market development and economic growth. Therefore, Malaysian policy-makers should consider both foreign capital inflows and exchange rate in formulating the economic policy. Moreover, special attention should be given on the external debt, which constitutes a significant proportion of foreign capital inflows, because of its negative impact on economic growth. At the same time, foreign direct investments with flexible exchange rate should be encouraged to foster both stock market and economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1329975 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1329975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1329975 Template-Type: ReDIF-Article 1.0 Author-Name: Noureddine Benlagha Author-X-Name-First: Noureddine Author-X-Name-Last: Benlagha Author-Name: Imen Karaa Author-X-Name-First: Imen Author-X-Name-Last: Karaa Title: Evidence of adverse selection in automobile insurance market: A seemingly unrelated probit modelling Abstract: The present paper investigates the adverse selection problem by examining the relationship between accident occurrences and deductible choice utilizing a seemingly unrelated probit model that allows for best controls for unobserved heterogeneity and endogeneity. While this microeconometric analysis does not consider a multivariate model and considers only two types of contracts, namely, those with high and low deductibles, it does suggest important implications from applying a recursive bivariate probit. We employ new cross-sectional data on a Tunisian insurance portfolio containing 31,125 policyholders. The results support some evidence for residual adverse selection in the studied insurance portfolio. Moreover, the results suggest the presence of a wealth effect in the decision of the contract choice. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1330303 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1330303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1330303 Template-Type: ReDIF-Article 1.0 Author-Name: Yaya Keho Author-X-Name-First: Yaya Author-X-Name-Last: Keho Title: The impact of trade openness on economic growth: The case of Cote d’Ivoire Abstract: The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. This might be attributed to the omission of the role of capital stock and labor in the trade-growth nexus. This paper examines the impact of trade openness on economic growth for Cote d’Ivoire over the period 1965–2014 in a multivariate framework including capital stock, labor and trade openness as regressors. It uses the Autoregressive Distributed Lag bounds test to cointegration and the Toda and Yamamoto Granger causality tests. The results show that trade openness has positive effects on economic growth both in the short and long run. Furthermore, they reveal a positive and strong complementary relationship between trade openness and capital formation in promoting economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1332820 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1332820 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1332820 Template-Type: ReDIF-Article 1.0 Author-Name: Cenk Ufuk Yıldıran Author-X-Name-First: Cenk Ufuk Author-X-Name-Last: Yıldıran Author-Name: Abdurrahman Fettahoğlu Author-X-Name-First: Abdurrahman Author-X-Name-Last: Fettahoğlu Title: Forecasting USDTRY rate by ARIMA method Abstract: This paper conducts a USDTRY rate forecast by ARIMA method using 3,069 daily observations between the dates of 3 January 2005 and 8 March 2017 and generates both long-term and short-term models. Existing works related to USDTRY rate forecast using ARIMA method generate static models, and none of them conduct multi-step prediction or out of sample fit. The work described in this paper, however, applies dynamic model generation and conducts multi-step ahead prediction for out of sample observations. In forecasts performed in this work for USDTRY rate, the short-term ARIMAs outperform the long-term ARIMAs in predicting accuracy. Specifically, for the short-term ARIMAs appropriate specification is raised as ARIMA (2,1,0); on the other hand, for the long-term ARIMAs, the best order is emerged as ARIMA (0,1,1). Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1335968 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1335968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1335968 Template-Type: ReDIF-Article 1.0 Author-Name: K. Moses Tule Author-X-Name-First: K. Moses Author-X-Name-Last: Tule Author-Name: Eunice Ngozi Egbuna Author-X-Name-First: Eunice Ngozi Author-X-Name-Last: Egbuna Author-Name: Eme Dada Author-X-Name-First: Eme Author-X-Name-Last: Dada Author-Name: Godday Uwawunkonye Ebuh Author-X-Name-First: Godday Uwawunkonye Author-X-Name-Last: Ebuh Title: A dynamic fragmentation of the misery index in Nigeria Abstract: This study adopts a dynamic approach to compute the level of economic distress in Nigeria. Quarterly series from 2002Q1 to 2016Q4 were utilized in computing the index. Leveraging on the expectations-augmented Phillips curve and Okun’s law, the results obtained indicate a minimum and maximum misery values of 16.92% (2007Q3) and 53.42% (2016Q4), respectively, with an average value of 31.49% over the study horizon. The index recorded a skewness of 0.31% indicating moderate level of asymmetry and a kurtosis of 3.26% indicating that the index is leptokurtically distributed with an approximate standard deviation of 8.00%. This implies the presence of appreciable level of volatility. A plot of crude oil price with the misery index overall shows that as price increased, the misery index decreased but in some instances, increase in crude oil price was consistent with increased misery. The persistent insecurity and militancy activities may have accounted for the observed puzzling co-movement. The computation also indicates that decrease in expected variation in inflation, results in increased unemployment by 61.0 per cent decrease in the variation in expected inflation associated with a unit change in the variation between the potential and actual rates of unemployment over the study horizon, which confirms theoretical expectations. On the whole, the results suggest that economic well-being in Nigeria has worsened over the years, especially between 2013Q3 and 2016Q4. The study, therefore, recommends sustained policies aimed at diversifying the revenue base of the economy away from heavy dependence on crude oil. This has the capacity to obviate the hardship occasioned by the fall in oil price and reduction in oil production. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1336295 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1336295 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1336295 Template-Type: ReDIF-Article 1.0 Author-Name: Foluso A. Akinsola Author-X-Name-First: Foluso A. Author-X-Name-Last: Akinsola Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Title: The impact of financial liberalization on economic growth in sub-Saharan Africa Abstract: This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries. The study applies a dynamic panel estimation to examine the special role of financial liberalization and banking crises on economic growth in SSA. The linear generalized method of moments is estimated according to the Arellano and Bover approach. We also examine whether differences in income levels across countries in sub-Saharan Africa will affect the relative impact of financial liberalization in SSA. Our findings indicate that the coefficient of the financial liberalization variable is positive and significant for SSA. However, the financial liberalization dummy sign changed to negative for low-income countries, even though it was statistically insignificant. The results also show that there is a negative relationship between a banking crisis and economic growth, showing that the period of a banking crisis can drastically affect economic growth in sub-Saharan Africa. Considering the crucial role played by most financial intermediaries in developing countries, the results have some implications for different African countries, especially countries whose economies are still undergoing financial reforms. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1338851 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1338851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1338851 Template-Type: ReDIF-Article 1.0 Author-Name: Felix Kwame Aveh Author-X-Name-First: Felix Kwame Author-X-Name-Last: Aveh Author-Name: Dadson Awunyo-Vitor Author-X-Name-First: Dadson Author-X-Name-Last: Awunyo-Vitor Title: Firm-specific determinants of stock prices in an emerging capital market: Evidence from Ghana Stock Exchange Abstract: This study seeks to examine the influence of firm-specific determinants of stock prices in an emerging market with particular reference to firms listed on the Ghana Stock Exchange. The study employs a data-set from all listed firms on the Ghana Stock Exchange from 2008 to 2014. The study used panel regression analysis to analyse the data. In general, the study found that accounting information, specifically earning per share, return on equity, book value and market capitalization of the firms, is relevant in explaining stock prices after the adoption of International Financial Reporting Standards (IFRS) in Ghana. This study contributes to the ongoing debate on the firm-specific factors influencing share price in an emerging market with particular reference to Ghana Stock Exchange. It is recommended that the Directors of the firms listed on the Ghana Stock Exchange introduce policies which would have a positive impact on their return on equity and earnings per share to significantly influence their stock prices positively. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1339385 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339385 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339385 Template-Type: ReDIF-Article 1.0 Author-Name: Zeng-Hua Lu Author-X-Name-First: Zeng-Hua Author-X-Name-Last: Lu Author-Name: Alec Zuo Author-X-Name-First: Alec Author-X-Name-Last: Zuo Title: Child disability, welfare payments, marital status and mothers’ labor supply: Evidence from Australia Abstract: This paper studies the effects of child disability on mothers’ participation in the labor force using Australian data. We formulate a bivariate Probit model in which mothers’ employment and welfare recipient status are treated as the dependent variables and child disability is responsible for the both dependent variables. Several propositions concerning the impacts of child disability on Australian mothers’ participation in the labor force are tested. Our testing procedure involves one-sided restrictions under the null or alternative hypotheses. Our main findings are as follows. A more severe child disability imposes greater restrictions on single mothers’ participation in the labor force. Single mothers are less likely than mothers with a partner to participate in the labor force in the event of a child health shock. There is some evidence of the disincentive effect of welfare payments in encouraging mothers’ participation in the labor force, particularly for single mothers. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1339769 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339769 Template-Type: ReDIF-Article 1.0 Author-Name: Sultan Sikandar Mirza Author-X-Name-First: Sultan Sikandar Author-X-Name-Last: Mirza Author-Name: Khalil Jebran Author-X-Name-First: Khalil Author-X-Name-Last: Jebran Author-Name: Yu Yan Author-X-Name-First: Yu Author-X-Name-Last: Yan Author-Name: Amjad Iqbal Author-X-Name-First: Amjad Author-X-Name-Last: Iqbal Title: Financing behavior of firms in tranquil and crisis period: Evidence from China Abstract: This study investigates the financing behavior of Chinese firms in tranquil and crisis situation over the period 2002–2014. We divide the sample into three sub-periods; pre-crisis, during-crisis, and post-crisis. The results indicate some noteworthy findings as this study incorporates firm and country-level factors. We find that the firms’ financing choice depends on the market conditions. The results show that Chinese firms have significantly decreased their dependence on leverage after the eruption of global financial crisis. Furthermore, we find that financial crisis of 2007–2008 has significantly affected the explanatory power of all factors. Moreover, profitability, size, and liquidity are important factors determining capital structure of the firm in financial crisis period. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1339770 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339770 Template-Type: ReDIF-Article 1.0 Author-Name: Antti Fredriksson Author-X-Name-First: Antti Author-X-Name-Last: Fredriksson Author-Name: Daniela Maresch Author-X-Name-First: Daniela Author-X-Name-Last: Maresch Author-Name: Andrea Moro Author-X-Name-First: Andrea Author-X-Name-Last: Moro Title: Much ado about nothing? Interest and non-interest products and services: Their impact on small banks’ margins Abstract: We investigate the impact of interest and non-interest products and services on the margin a bank can derive from a specific customer. The analysis is based on 4,277 observations of relationships between small cooperative banks and small and medium-sized enterprises (SME) in Finland from 2001 to 2005. The results show that only long-term loans significantly contribute to the bank’s margin, whereas short-term loans as well as other additional products and services do not affect the bank’s margin, and cash management services even seem to reduce the bank’s margin. The findings suggest that small cooperative banks did concentrate on their core business during the first years of this millennium, i.e. lending, instead of diversifying their activities to increase their margin. However, by taking only financial considerations into account, small cooperative banks might forget about the non-financial impacts of their decisions, which may involve a considerable loss of information about SMEs. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1339771 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339771 Template-Type: ReDIF-Article 1.0 Author-Name: Enrique Benavides Rosales Author-X-Name-First: Enrique Author-X-Name-Last: Benavides Rosales Title: Time-series and cross-sectional momentum and contrarian strategies within the commodity futures markets Abstract: The aim within this paper is to analyze the difference between momentum and contrarian portfolios constructed under the cross-sectional and time-series analysis, within the commodity futures markets. The returns indicate that the contrarian portfolios are the most profitable, as well as it’s observed that they perform better within the cross-sectional analysis. The correlation of the best portfolios within other markets is also examined, and the results confirm that they are indeed a good investment tool for diversifying a portfolio with different assets. Within a pre- and post-2008 global crisis point of view, the findings suggest that, for the contrarian portfolios, the results are stronger during the pre-crisis period, although during the post-crisis period the portfolios preserve the positive returns. Additionally, it’s perceived that the first and second subsequent years after a crash or crisis year are usually highly profitable within the cross-sectional and time-series contrarian portfolios. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1339772 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339772 Template-Type: ReDIF-Article 1.0 Author-Name: Lamia Jamel Author-X-Name-First: Lamia Author-X-Name-Last: Jamel Author-Name: Samir Maktouf Author-X-Name-First: Samir Author-X-Name-Last: Maktouf Title: The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries Abstract: In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. We find the presence of the bidirectional nexus between GDP and financial sector development and among GDP and trade openness in the European economies. Finally, panel causality verifies that bidirectional causal connection is found between economic growth, environmental degradation (CO2), financial development, and trade openness. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1341456 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1341456 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1341456 Template-Type: ReDIF-Article 1.0 Author-Name: Hamid Baghestani Author-X-Name-First: Hamid Author-X-Name-Last: Baghestani Title: Do US consumer survey data help beat the random walk in forecasting mortgage rates? Abstract: In line with term structure theory, empirical studies suggest that it is difficult to beat the random walk in forecasting long-term interest rates. We ask whether consumer survey data on both mortgage interest rates and expected inflation help beat the random walk in forecasting the 30-year fixed rate mortgage. Using the vector autoregressive (VAR) modeling framework with the mortgage rate and consumer survey data as variables, we generate the mortgage rate forecasts for 1988–2016. Our forecast evaluation test results indicate that the VAR forecasts generally embody useful predictive information above and beyond that contained in the random walk forecasts for 2008–2016. The evidence is weaker for 1988–2007 in the sense that the VAR forecasts fail to outperform the random walk (but still contain distinct useful predictive information). In line with the notion that consumers are “economically” rational, our findings suggest that consumer survey data have become more informative due to the uncertainty created by the 2008 financial crisis. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1343017 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1343017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1343017 Template-Type: ReDIF-Article 1.0 Author-Name: Rihab Bedoui Author-X-Name-First: Rihab Author-X-Name-Last: Bedoui Author-Name: Houda BenMabrouk Author-X-Name-First: Houda Author-X-Name-Last: BenMabrouk Title: CAPM with various utility functions: Theoretical developments and application to international data Abstract: This paper presents an extension of the Capital Assets Pricing Model (hereafter CAPM) where various utility functions are applied. Specifically, we propose an overall CAPM beta that accounts for the higher order moments and reflects the investor preferences and attitudes toward risk. We particularly develop CAPM betas for different classes of utility function: the negative exponential utility function, power utility function or “Constant Relative Risk Aversion (CRRA) Utilities” and hyperbolic utility function or “HARA Utilities” (hyperbolic absolute risk aversion). In order to validate our theoretical results, we analyze the impact of investors’ preferences on the valuation equation. Applying the International CAPM, the results indicate that our utilities-based betas differ largely from the traditional CAPM betas. Moreover, the results confirm the importance of higher order moments on the pricing equation. Finally, the results both empirically and theoretically post to the consistent effect of the risk aversion degree on our utilities-based CAPM. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1343230 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1343230 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1343230 Template-Type: ReDIF-Article 1.0 Author-Name: Bouteska Ahmed Author-X-Name-First: Bouteska Author-X-Name-Last: Ahmed Author-Name: Regaieg Boutheina Author-X-Name-First: Regaieg Author-X-Name-Last: Boutheina Title: The accuracy of financial analysts’ earnings forecasts and the Tunisian market reliance with time Abstract: Unlike previous studies which have examined the role of financial analysts in developed economies, the aim of this paper is to investigate whether following the Tunisian stock market opening, both the analyst forecast accuracy and the market’s reliance on analyst forecasts, increase with time. This study is based on the hypothesis that accuracy is expected to increase over time as analysts exert more effort and gain valuable forecasting experience, and also that the reliance on analyst forecasts should increase with time as the market opens and investors become more sophisticated. The methodology employs bi-annual panel data for Tunisian stock market from 2010 to 2015. Our results are consistent with the expectations. First, results generally confirm that both the accuracy and the higher quality of analyst earnings forecasts are increasing with time. Second, we find evidence that earnings expectations are not mainly based on analyst forecast in the first sub-period (2010–2012). However, these findings are reversed in the second sub-period (2013–2015) and for the whole period (2010–2015) as analyst forecast better explain returns and exhibit greater relative information content. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1345186 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1345186 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1345186 Template-Type: ReDIF-Article 1.0 Author-Name: Geoffrey Steeves Author-X-Name-First: Geoffrey Author-X-Name-Last: Steeves Author-Name: Newton da Costa Author-X-Name-First: Newton Author-X-Name-Last: da Costa Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Shareholder response to mass shootings in the United States firearms industry Abstract: Mass shootings are an all too common event in the United States. While these tragedies are universally condemned, the extent to which they affect markets is less understood. Using event study methodology, this study analyzes how three publicly traded small arms companies, Smith & Wesson, Sturm Ruger, and the Brazilian manufacturer Taurus, react in the aftermath of six mass shootings from 2007 to 2013. Taurus is included in the sample given its heavy dependence on the US market, as well as to increase sample size given the dearth of publicly traded arms companies worldwide. The aggregate results suggest that these events do significantly disrupt returns in the arms industry, suggesting that shareholders are influenced by these events. The evidence for market disruptions is particularly strong when the sample is limited to the deadliest Virginia Tech and Sandy Hook shootings. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1345600 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1345600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1345600 Template-Type: ReDIF-Article 1.0 Author-Name: Ansari Saleh Ahmar Author-X-Name-First: Ansari Saleh Author-X-Name-Last: Ahmar Author-Name: Abdul Rahman Author-X-Name-First: Abdul Author-X-Name-Last: Rahman Author-Name: Andi Nurani Mangkawani Arifin Author-X-Name-First: Andi Nurani Mangkawani Author-X-Name-Last: Arifin Author-Name: Alfatih Abqary Ahmar Author-X-Name-First: Alfatih Abqary Author-X-Name-Last: Ahmar Title: Predicting movement of stock of “Y” using Sutte Indicator Abstract: The aim of this study is to apply technical analysis Sutte Indicator at stock market that will assist in the decision-making process in investment to buy or sell stocks. This study took data from Stock of “Y” which listed in the NasdaqGS from the period 18 May 2012 to 30 August 2016. The performance of the Sutte Indicator can be checked with comparison with Moving Average Convergence/Divergence and Simple Moving Average. For comparison of the reliability of prediction, we can use the mean absolute percentage error, mean absolute deviation, and mean of square error. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1347123 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1347123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1347123 Template-Type: ReDIF-Article 1.0 Author-Name: Florence Nakazi Author-X-Name-First: Florence Author-X-Name-Last: Nakazi Author-Name: Paul Aseete Author-X-Name-First: Paul Author-X-Name-Last: Aseete Author-Name: Enid Katungi Author-X-Name-First: Enid Author-X-Name-Last: Katungi Author-Name: Michael Adrogu Ugen Author-X-Name-First: Michael Author-X-Name-Last: Adrogu Ugen Title: The potential and limits of farmers’ groups as catalysts of women leaders Abstract: The Women’s Empowerment in Agriculture Index revealed weak leadership and influence of women in the community as indicators of women’s political disempowerment. Collective action through farmer groups can be an important strategy for women members to strengthen their political power. The study horns in to analyze the potential group characteristics that can act as catalysts to the number of leadership positions that women occupy. The study uses data from 65 farmers’ groups in central Uganda. Tobit regression model was used to assess the group factors that influence the proportion of positions women held in groups. The study found that groups had an average of 5 leadership positions and women strong leadership skills lie in being treasurers (70%). Number of households represented (10.7%), record keeping (27.9%), proportion of both youth (19.4%), and women (69.7%), number of economic activities (2.9%) were the key factors that influence the proportion of women in group leadership. The findings are useful in guiding development interventions that use group-based approaches in agricultural production and marketing. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1348326 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1348326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1348326 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Nakosteen Author-X-Name-First: Robert Author-X-Name-Last: Nakosteen Author-Name: Michael Zimmer Author-X-Name-First: Michael Author-X-Name-Last: Zimmer Title: Marriage dissolution among American men, 2003–2010: The roles of measured earnings and latent selection Abstract: Research in the economics of the family has established that economic incentives play a significant role in the process of marriage formation and dissolution. This paper distinguishes between two aspects of husbands’ earnings in the process of divorce. On one hand, measured earnings might exert a direct effect on the stability of marriage. On the other hand, some husbands possess unobserved traits that might simultaneously affect their earnings growth and their propensities to terminate their marriages. This research utilizes data from the United States Current Population Survey for years 2003 through 2010, and is based on samples of initially married men at two points in time. We seek first to examine whether marriage dissolution occurs in the presence of correlation between unobserved factors present in both earnings during the first period and the subsequent decision to divorce. Second, we look for an explicit role of earnings per se in the divorce decision. Results of the study provide support for significant effects in both dimensions. Increases in observed earnings result a tendency to stabilize marriages. Controlling for observed earnings, however, there is evidence that men with strong unmeasured earnings attributes possess latent propensities to dissolve their marriages. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1348327 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1348327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1348327 Template-Type: ReDIF-Article 1.0 Author-Name: Teboho Jeremiah Mosikari Author-X-Name-First: Teboho Jeremiah Author-X-Name-Last: Mosikari Author-Name: Joel Hinaunye Eita Author-X-Name-First: Joel Hinaunye Author-X-Name-Last: Eita Title: Empirical test of the Ricardian Equivalence in the Kingdom of Lesotho Abstract: The objective of this paper is to test the existence of Ricardian Equivalence in Lesotho using annual data for two sample periods, 1980–2014 and 1988–2014. This proposition is important and has crucial implications for tax policy. Household consumption, government debt, government expenditure, GDP per capita, population growth and inflation are variables which are used for this analysis. The study used ARDL cointegration approach to investigate the relationship between these variables. The study found that there is long run equilibrium relationship among the variables in two sample periods. The results show that an increase in government debt or government expenditure will decrease household consumption per capita. This implies that the Ricardian Equivalence does hold for Lesotho. The results also imply that fiscal policy is an ineffective tool to stabilize the economy. Lesotho has limited fiscal flexibility, and it will be difficult or challenging to increase private consumption and economic growth, particularly during economic downturn. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1351674 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1351674 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1351674 Template-Type: ReDIF-Article 1.0 Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Anokye M. Adam Author-X-Name-First: Anokye M. Author-X-Name-Last: Adam Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Title: Co-movement of real exchange rates in the West African Monetary Zone Abstract: In three different ways of lead–lag causal relationship, covariance/correlation and coherence, we apply the wavelets analysis via the Continuous Morlet Wavelet Transform to delineate the significant frequency–time domain lead–lag relationships for the West African Monetary Zone member countries for real US dollar exchange rates and their absolute log returns from January 2001 to April 2015. The results indicate that lead–lag associations at different periodicities vary across the countries. No one country comes off as leading conveniently for both real and absolute returns of the exchange rates. Our results corroborate other evidences of non-convergence of exchange rates in the monetary zone, which hinders the eventual implementation of the single currency in the ECOWAS region. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1351807 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1351807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1351807 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmed Tukur Umar Author-X-Name-First: Ahmed Author-X-Name-Last: Tukur Umar Author-Name: Moh’d Shahwahid Hajj Othman Author-X-Name-First: Moh’d Shahwahid Author-X-Name-Last: Hajj Othman Title: Causes and consequences of crude oil pipeline vandalism in the Niger delta region of Nigeria: A confirmatory factor analysis approach Abstract: Significant number of crude oil pipeline vandalism in the Niger delta region of Nigeria were carried out by the militant groups on the pretext for a better environmental management and development of the region. This research work examined the relation between socioeconomic, institutional factors and pipeline vandalism using confirmatory factor analysis (CFA). The CFA is a superior model of analysis since it establishes a better mathematical relationship between observed and unobserved variables compared to other models previously used by other studies such as correlation analysis, ordinary least squares and descriptive statistics. The study involved 269 respondents who were selected from the Niger delta region using purposive and simple random sampling techniques. The results from the study show the existence of a significant and positive relationship between poor management, poor governance, legal, and environmental degradation while significant but negative relationship between marginalization and pipeline vandalism. The study recommends the need for institutional reform through improvement in infrastructural provision, effective governance among others. Unlike other previous studies, our results show no significant relationship between poverty, unemployment and vandalism. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1353199 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1353199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1353199 Template-Type: ReDIF-Article 1.0 Author-Name: Lingbing Feng Author-X-Name-First: Lingbing Author-X-Name-Last: Feng Author-Name: Yanlin Shi Author-X-Name-First: Yanlin Author-X-Name-Last: Shi Title: A simulation study on the distributions of disturbances in the GARCH model Abstract: Generalized autoregressive conditional heteroskedastic (GARCH) model is a standard approach to study the volatility behaviour of financial time series. The original specification of GARCH model is developed based on Normal distribution for the disturbances, which cannot accommodate fat-tailed properties commonly existing in financial time series. Consequently, the resulting estimates are not efficient. Traditionally, the Student’s t-distribution and General Error Distribution (GED) are used alternatively to solve this problem. However, a recent study points out that those alternative distributions lack stability under aggregation. This leaves the appropriate choice of the distribution of disturbances in the GARCH model still an open question. In this paper, we present the theoretical features and desirability of the tempered stable distribution. Further, we conduct a series of simulation studies to demonstrate that the GARCH model with this distribution consistently outperforms those with the Normal, Student-t and GED distributions. This result is robust with empirical evidence of the S&P 500 daily return. Therefore, we argue that the tempered stable distribution could be a widely useful tool for modelling the financial volatility in general contexts with a GARCH-type specification. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1355503 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1355503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1355503 Template-Type: ReDIF-Article 1.0 Author-Name: Prasenjit Chakrabarti Author-X-Name-First: Prasenjit Author-X-Name-Last: Chakrabarti Author-Name: K. Kiran Kumar Author-X-Name-First: K. Author-X-Name-Last: Kiran Kumar Title: Does behavioural theory explain return-implied volatility relationship? Evidence from India Abstract: The study investigates whether behavioural theory is a superior explanation for short-term return–volatility relationship than traditional leverage and volatility feedback hypotheses. Using VAR and quantile regression frameworks, the study shows that behavioural theory explains the relationship better than the leverage and feedback hypotheses. The study supports that behavioural biases (representative, affect, extrapolation heuristics, etc.) exist among market participants, and these biases cause India Volatility Index (India VIX) to be an efficient hedge for extreme negative market movements. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1355521 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1355521 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1355521 Template-Type: ReDIF-Article 1.0 Author-Name: M.T. Magombeyi Author-X-Name-First: M.T. Author-X-Name-Last: Magombeyi Author-Name: N.M. Odhiambo Author-X-Name-First: N.M. Author-X-Name-Last: Odhiambo Title: Causal relationship between FDI and poverty reduction in South Africa Abstract: This study investigates the causal relationship between poverty reduction and foreign direct investment (FDI) inflows in South Africa using time-series data from 1980 to 2014. The main objective of this study is to establish the direction of causality between FDI and poverty reduction, which is important to policy-makers as it identifies which variable to target first. Gross domestic product is included as an intermittent variable giving a trivariate framework. Employing the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and ECM-based causality tests, the results from this study reveal a distinct unidirectional causality from poverty reduction to FDI in both the short run and the long run when poverty reduction is measured by life expectancy and infant mortality rate. However, the study failed to find any causality, irrespective of the time considered, when poverty reduction is measured by household consumption expenditure. It can be concluded therefore, that the causal relationship between FDI and poverty reduction is sensitive to the proxy used to measure the level of poverty reduction. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1357901 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1357901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1357901 Template-Type: ReDIF-Article 1.0 Author-Name: Ivivi J. Mwaniki Author-X-Name-First: Ivivi J. Author-X-Name-Last: Mwaniki Title: On skewed, leptokurtic returns and pentanomial lattice option valuation via minimal entropy martingale measure Abstract: This article develops, a lattice-based approach for pricing contingent claims when parameters governing the logs of the underlying asset dynamics are modelled by generalized hyperbolic distribution and normal inverse Gaussian distribution. The pentanomial lattice is constructed using a moment matching procedure. Moment generating functions of generalized hyperbolic distribution and normal inverse Gaussian distribution are utilized to compute probabilities and jump parameters under historical measure P$ { \mathbb P } $. Minimal entropy martingale measure (MEMM) is used to value European call option with a view of comparing the results with some of the existing benchmark model such as Black Scholes model. Empirical data from S&P500 index, RUTSELL2000 index and RUI1000 index are used to demonstrate how the model works. There is a significant difference especially for long term maturity (six months and above) type of contracts, the proposed model outperform the benchmark model, while performing poorly at short term contracts. Pentanomial NIG models seems to outperform the other models especially for long dated maturities. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1358894 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1358894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1358894 Template-Type: ReDIF-Article 1.0 Author-Name: Ntokozo Patrick Nzimande Author-X-Name-First: Ntokozo Patrick Author-X-Name-Last: Nzimande Author-Name: Harold Ngalawa Author-X-Name-First: Harold Author-X-Name-Last: Ngalawa Title: The endogeneity of business cycle synchronisation in SADC: A GMM approach Abstract: Studies often conclude that the proposed Southern African Development Community monetary union would be disastrous and not optimal for all member countries. This is because of the observed low, and sometimes negative business cycle correlation amongst member countries. However, it has been demonstrated that the degree of synchronisation is not irrevocably fixed and is endogenous to certain economic factors. This study, therefore, sets out to investigate factors influencing business cycle synchronisation in the SADC region. More precisely, the study employs a generalised method of moments to investigate the influence of trade integration, financial integration, fiscal policy convergence, monetary policy similarity and oil prices (a proxy for global common shocks) on the degree of business cycle synchronisation. To conduct our analysis, we use data covering the period 1994–2014. In addition, we employ bilateral data as a way of getting around the problem of unavailability of aggregated regional data. The study finds trade, fiscal policy convergence and monetary policy similarity to have a sanguine impact on the degree of business cycle synchronisation. In addition, owing to their procyclical behaviour, it is observed that financial flows lead to diverging business cycles. Furthermore, the study finds that oil prices exert a negative impact on business cycle comovement in the SADC region. The study results have far-reaching policy implications for the proposed SADC monetary union. It is implied in the study findings that by stimulating trade and ensuring coherence in macroeconomic policies, SADC can move closer to being an optimal currency area. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1358914 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1358914 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1358914 Template-Type: ReDIF-Article 1.0 Author-Name: Bernard Njindan Iyke Author-X-Name-First: Bernard Author-X-Name-Last: Njindan Iyke Author-Name: Sin-Yu Ho Author-X-Name-First: Sin-Yu Author-X-Name-Last: Ho Title: Exchange rate uncertainty and domestic investment in Ghana Abstract: The impact of exchange rate uncertainty on domestic investment remains a topical issue in international finance. The existing studies based on macro- or micro-level data have produced mixed findings leaving the issue widely open for further investigation. We revisit this issue at the macro-level by differentiating the short-run impacts of exchange rate uncertainty from long-run impacts. Using annual data for Ghana covering the period 1980–2015, we found that exchange rate uncertainty has differential impacts on domestic investment in the short run. That is, while the current level of uncertainty enhances investment, previous levels of uncertainty dampen investment. In the long run, exchange rate uncertainty has a positive impact on domestic investment. These findings are robust to alternative specifications of our model. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1362157 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362157 Template-Type: ReDIF-Article 1.0 Author-Name: George Okello Candiya Bongomin Author-X-Name-First: George Author-X-Name-Last: Okello Candiya Bongomin Author-Name: Joseph Mpeera Ntayi Author-X-Name-First: Joseph Author-X-Name-Last: Mpeera Ntayi Author-Name: John C. Munene Author-X-Name-First: John C. Author-X-Name-Last: Munene Author-Name: Charles Malinga Akol Author-X-Name-First: Charles Author-X-Name-Last: Malinga Akol Title: Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda Abstract: The paper examined the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. The paper used SPSS (statistical package for social scientist) and applied MedGraph program (Excel version 13), Sobel test, and Kenny & Baron guideline to test for the mediating role of social networks in the relationship between financial intermediation and financial inclusion. Quantitative data were collected from a total sample of 400 poor households living in rural Uganda who were randomly selected for this study. The findings revealed that social networks partially mediate in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. Besides, social networks and financial intermediation have significant and positive impacts on financial inclusion of poor households in rural Uganda. This implies that some effects of financial intermediation on financial inclusion go through social networks to cause an impact on financial inclusion of poor households in rural Uganda. Therefore, financial institutions such as banks and microfinance institutions should develop financial products and services that promote social networking among poor households in rural Uganda. In addition, they should advocate for participation by poor households in existing village associations and social organizations so as to develop wide social networks. This will help them to gain access to scarce and vital information about available financial services like credit. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1362184 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362184 Template-Type: ReDIF-Article 1.0 Author-Name: Vinodh Madhavan Author-X-Name-First: Vinodh Author-X-Name-Last: Madhavan Title: How interrelated are MIST equity markets with the developed stock markets of the world? Abstract: This study explores the long-run and short-term relationship between the Mexico, Indonesia, South Korea, and Turkey (MIST) equity markets and the developed stock markets such as US, UK, Germany, Japan, Hong Kong, and Singapore. To start with, the author employs static bivariate and multivariate Johansen cointegration tests to test for long-run relationship between each of MIST equity markets and the developed stock markets. Subsequently, the author employs the recursive multivariate Johansen cointegration tests to garner a better understanding of the evolution of extent of integration between MIST and the developed stock markets. Static and Recursive Johansen Test findings reveal lack of consistent cointegrating relationship between MIST and developed markets (DM). Consequently, MIST equity markets do offer portfolio diversification avenues for international investors. On the short-term front, the time-varying correlations for each MIST-DM pair of stock indices were examined using the Dynamic Conditional Correlation (DCC) specification of the Multivariate GARCH. Of all the developed stock markets considered for this study, Mexico is found to exhibit high DCC with US and least amount of DCC with Japan while Indonesia is found to exhibit high DCC with Singapore and Hong Kong and least amount of DCC with US. Lastly, when it comes to South Korea, it exhibits the least amount of DCC with US and high DCC with Hong Kong, Singapore, and Japan. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1362822 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362822 Template-Type: ReDIF-Article 1.0 Author-Name: Shahrin Saaid Shaharuddin Author-X-Name-First: Shahrin Saaid Author-X-Name-Last: Shaharuddin Author-Name: Wee-Yeap Lau Author-X-Name-First: Wee-Yeap Author-X-Name-Last: Lau Author-Name: Rubi Ahmad Author-X-Name-First: Rubi Author-X-Name-Last: Ahmad Title: New Islamic equity style indices: Constructing and testing the efficacy of information transmission Abstract: The non-existence of commercially available Islamic Equity Style Indices from index providers such as MSCI especially on small value and small growth stocks motivates us to construct our new indices. Firstly, various index construction methods are compared. Secondly, this paper describes in detail the process of index construction and finally, the new indices are tested using out-of-sample forecast and trading strategies. Notably, our results show Large Growth (LG) and Large Value (LV) indices have more efficacy compared to Small Growth (SG) and Small Value (SV) stocks. From the perspective of Islamic financial market, the creation of Islamic equity style index enables new strategies which focus on size, value, and smart beta. In addition, the out-of-sample VAR forecast indicates that LG and LV indices are the best candidates for creating a new benchmark for portfolio diversification. Furthermore, by applying simple trading strategies and selecting Islamic value and small market capitalization stocks, our evidence shows that Islamic equity style indices have benefits for investors and fund managers. To the best of authors’ knowledge, this paper is the first attempt to create non-commercially available Islamic equity style indices. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1363355 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1363355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1363355 Template-Type: ReDIF-Article 1.0 Author-Name: Futeri Jazeilya Md Fadzil Author-X-Name-First: Futeri Jazeilya Author-X-Name-Last: Md Fadzil Author-Name: John G. O’Hara Author-X-Name-First: John G. Author-X-Name-Last: O’Hara Author-Name: Wing Lon Ng Author-X-Name-First: Wing Lon Author-X-Name-Last: Ng Title: Cross-sectional volatility index as a proxy for the VIX in an Asian market Abstract: We present a cross-sectional volatility index (CSV) applied to an Asian market as an alternative to the VIX. One problem with the construction of a VIX-styled index is that it depends on the price of calls and puts, however, the CSV index may be applied to measure the volatility when no derivatives market exists. We formulate this volatility index based on observable and model-free volatility measures. We provide a statistical argument to support that an equally weighted measure of average idiosyncratic variance would forecast market return and show that this measure displays a sizable correlation with economic uncertainty. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1364011 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1364011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1364011 Template-Type: ReDIF-Article 1.0 Author-Name: Chiara Benazzoli Author-X-Name-First: Chiara Author-X-Name-Last: Benazzoli Author-Name: Luca Di Persio Author-X-Name-First: Luca Author-X-Name-Last: Di Persio Title: Optimal execution strategy in liquidity framework Abstract: A trader wishes to execute a given number of shares of an illiquid asset. Since the asset price also depends on the trading behaviour, the trader main aim is to find the execution strategy that minimizes the related expected costs. We solve this problem in a discrete time framework, by modeling the asset price dynamic as an arithmetic random walk with drift and volatility both modeled as Markov stochastic processes. The market impact is assumed to follow a Markov process. We found the unique execution strategy minimizing the implementation shortfall when short selling is allowed. This optimal strategy is given as solution of a forward-backward system of stochastic equations depending on conditional expectations of future values of model parameters. In the opposite case, namely when short selling is prohibited, we numerically obtain the solution for the associated Bellman equation that an optimal trading strategy must satisfy. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1364902 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1364902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1364902 Template-Type: ReDIF-Article 1.0 Author-Name: Eric Fosu Oteng-Abayie Author-X-Name-First: Eric Fosu Author-X-Name-Last: Oteng-Abayie Title: Technical efficiency and total factor productivity of rural banks in Ghana Abstract: This study sought to estimate the level of technical efficiency and total factor productivity of RCBs in Ghana using Stochastic Frontier Analysis (SFA). The total factor productivity (TFP) was decomposed into efficiency change and technical change over the study period. Quarterly data spanning 2009 to 2012 was sourced from the ARB-Apex Bank for a sample of 107 out of 137 RCBs in Ghana. The findings suggested that RCBs have room to improve on their technical efficiency and total factor productivity levels. Technical efficiency change, on average, was the main source of total factor productivity change during the period. The results suggest the shifting of the RCBs production frontier causing improvement in the TFP. The finding implies that efforts to improve efficiency and productivity of RCBs must be focused on improving the operational environment through rigorous efficiency analysis and monitoring by the regulator and management boards. The findings on the relative efficiencies also have implications for investment decision by prospective investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1366088 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1366088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1366088 Template-Type: ReDIF-Article 1.0 Author-Name: K.K. Moseki Author-X-Name-First: K.K. Author-X-Name-Last: Moseki Author-Name: K.S. Madhava Rao Author-X-Name-First: K.S. Author-X-Name-Last: Madhava Rao Title: Analysing stock market data—Market sentiment approach and its measures Abstract: This paper states that market sentiments are central to any financial data analysis. A vivid distinction is made between studying financial data in terms of the concept of volatility and in rapport to analysing financial data in terms of market sentiments. The former is an existing approach that is extensively used and the latter is a proposed tactic. Methods of devising constructs for defining relative and absolute market sentiments are also discussed. Patterns of market sentiments in terms of the model parameters are discussed and a few new measures that capture the hypothesized market sentiments are proposed. As an application of the proposed line of approach, this study analyses weekly market sentiments that govern Domestic Company Indices of Botswana Stock Exchange. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1367147 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1367147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1367147 Template-Type: ReDIF-Article 1.0 Author-Name: Abbas Ali Chandio Author-X-Name-First: Abbas Ali Author-X-Name-Last: Chandio Author-Name: Yuansheng Jiang Author-X-Name-First: Yuansheng Author-X-Name-Last: Jiang Author-Name: Feng Wei Author-X-Name-First: Feng Author-X-Name-Last: Wei Author-Name: Abdul Rehman Author-X-Name-First: Abdul Author-X-Name-Last: Rehman Author-Name: Dan Liu Author-X-Name-First: Dan Author-X-Name-Last: Liu Title: Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan Abstract: Credit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The purpose of this study was to examine the farmers’ access to credit: does collateral matter or cash flow matter?—evidence from Sindh province of Pakistan. The random sampling technique was used to collected data from 300 rural households through a face-to-face interview. To find the important factors affecting access to credit in Sindh province of Pakistan, we performed descriptive statistics and probit regression model. The results of probit regression model showed that gender, household size, educational level, farming experience, farm size, income, and availability of collateral have positive effect on farmers’ access to credit, while age has a negative and statistically insignificant effect on the farmers’ access to credit. Therefore, this study recommended that institutional sources of credit (such as the ZTBL and other Commercial Banks) should improve their loaning schemes to better suit the diversified needs of small farmers. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1369383 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1369383 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1369383 Template-Type: ReDIF-Article 1.0 Author-Name: Ibrahim Bakari Hassan Author-X-Name-First: Ibrahim Bakari Author-X-Name-Last: Hassan Author-Name: M. Azali Author-X-Name-First: M. Author-X-Name-Last: Azali Author-Name: Lee Chin Author-X-Name-First: Lee Author-X-Name-Last: Chin Author-Name: Wan N.W. Azman-Saini Author-X-Name-First: Wan N.W. Author-X-Name-Last: Azman-Saini Title: Macroeconomic linkages and international shock transmissions in East Asia: A global vector autoregressive approach Abstract: The growing interdependency among East Asian countries means that there is concern not only on the way their macroeconomic variables are linked across borders, but also on the way shocks are transmitted as a consequence. This paper investigates the effect of macroeconomic linkages on international shock transmissions in selected East Asian countries. Global Vector Autoregressive model (GVAR) is used on the quarterly data of real output, inflation, equity prices, exchange rates, and short-term interest rate over the period 1979Q2–2013Q1. The result generally shows that the focus countries are more linked to global economy through equity markets, real output, and exchange rates, signifying more tendencies for contagion effects in the same way. On the other hand, result from the dynamic analysis, shows that China contributes highest shock transmission in the real sector, whereas US is the highest in the equity market. For the exchange rate; within-regional shock transmission is found to be highest. The dominance of China in the real sector implies the possibility of business cycle synchronization in the region, especially if China is triggered; however, the insignificance currency-shock transmission between China and the rest of the East Asian countries contradicts one important criterion for optimum currency area. This means that China could vanguard the economic regionalism if its currency market is more developed and liberalized. More still, the dominance of US in capital market and second to China in the real sector explained the strategic importance of US in the global economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1370772 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1370772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1370772 Template-Type: ReDIF-Article 1.0 Author-Name: Feng Sun Author-X-Name-First: Feng Author-X-Name-Last: Sun Author-Name: Cheng Liu Author-X-Name-First: Cheng Author-X-Name-Last: Liu Author-Name: Xiaoguang Zhou Author-X-Name-First: Xiaoguang Author-X-Name-Last: Zhou Title: Analysis of industry risk premium with MVS three dimensions vector factor model Abstract: It is very important to identify deviation mechanism of price volatility of an industry asset and the affecting factors, and it is important to give the reasonable explanation and measurement to the abnormality of price volatility of the industry asset. This paper adopts heterogeneous panel and exploratory factor analysis methods, measuring industry risk by industry risk premium index, and constructs an industry MVS three dimensions vector factor model to analyze the factors consistent and affecting extent to industry risk. Furthermore, this paper analyzes simultaneously the linkage effect and working mechanism of multi-industries risks and gives an empirical research to determinants mechanism affecting industry risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1374814 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1374814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1374814 Template-Type: ReDIF-Article 1.0 Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Author-Name: Prosper Ebruvwiyo Edoja Author-X-Name-First: Prosper Ebruvwiyo Author-X-Name-Last: Edoja Title: Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model Abstract: This study investigated the effect of economic growth on CO2 emission using the dynamic panel threshold framework. The analysis is based on data from a panel of 31 developing countries. The results indicate that economic growth has negative effect on CO2 emission in the low growth regime but positive effect in the high growth regime with the marginal effect being higher in the high growth regime. Thus our finding provides no support for the Environmental Kuznets Curve (EKC) hypothesis; rather a U-shaped relationship is established. Energy consumption and population were also found to exert positive and significant effect on CO2 emission. Including financial development indicator in the model did not change the conclusion about EKC hypothesis. Employing panel causality methods, there is evidence of significant causal relationship between CO2 emission, economic growth, energy consumption and financial development. The findings emphasize the need for transformation of low carbon technologies aimed at reducing emissions and sustainable economic growth. This may include energy efficiency and switch away from non-renewable energy to renewable energy. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1379239 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1379239 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1379239 Template-Type: ReDIF-Article 1.0 Author-Name: Ayse Y. Evrensel Author-X-Name-First: Ayse Y. Author-X-Name-Last: Evrensel Author-Name: Tiffany Minx Author-X-Name-First: Tiffany Author-X-Name-Last: Minx Title: An institutional approach to the decline of the Ottoman Empire Abstract: This paper examines the selected Ottoman institutions during the so-called rise (fourteenth through sixteenth centuries) and identifies the institutional characteristics that may have led to the eventual fall of the Empire in 1918. We propose three criteria based on which the Ottoman institutions are selected. First, there should be nominal accounts of the institution. Second, the institution has to be present during the rise of the Empire. Third, the institution should allow the investigation of whether changes in it led to increased power sharing between the sultan and a larger segment of the society. As a result, the paper identifies three institutions: succession structure, power structure, and the identity of the Ottoman elites and the landownership-military-public finance triangle. Our conclusion is that the weaknesses in the mentioned institutions were fundamental enough to make the Empire vulnerable. Additionally, the examination of these institutions leads to the identification of even more fundamental characteristics of the Ottomans, such as their aversion toward Turkish Muslims and commerce as well as their oblivious attitude toward technological innovations. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1380248 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1380248 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1380248 Template-Type: ReDIF-Article 1.0 Author-Name: Po-Keng Cheng Author-X-Name-First: Po-Keng Author-X-Name-Last: Cheng Author-Name: Young Shin Kim Author-X-Name-First: Young Shin Author-X-Name-Last: Kim Title: Speculative bubbles and crashes： Fundamentalists and positive‐feedback trading Abstract: In this paper, we develop and examine a simple interactive agent‐based model, where the distribution of returns generated from the model takes into account two stylized facts about financial markets： fat tails and volatility clustering. Our results indicate that the risk tolerance of fundamentalists and the relative funding rate of positive‐feedback traders versus fundamentalists are key factors determining the path of price fluctuations. Fundamentalists are more able to dominate the market when they are more willing than positive‐feedback traders to take risks. In addition, more crises occur as positive‐feedback traders face higher funding costs compared to fundamentalists. Our model suggests that fundamentalists cause heavier tails, and positive‐feedback traders cause the formation of speculative bubbles. Our model also indicates that traders’ attitudes toward risk vary across time and market. The generally low level of risk bearing by fundamentalists could explain the frequent occurrence of bubbles. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1381370 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1381370 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1381370 Template-Type: ReDIF-Article 1.0 Author-Name: M. Kateregga Author-X-Name-First: M. Author-X-Name-Last: Kateregga Author-Name: S. Mataramvura Author-X-Name-First: S. Author-X-Name-Last: Mataramvura Author-Name: D. Taylor Author-X-Name-First: D. Author-X-Name-Last: Taylor Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Bismut–Elworthy–Li formula for subordinated Brownian motion applied to hedging financial derivatives Abstract: The objective of the paper is to extend the results in Fournié, Lasry, Lions, Lebuchoux, and Touzi (1999), Cass and Fritz (2007) for continuous processes to jump processes based on the Bismut–Elworthy–Li (BEL) formula in Elworthy and Li (1994). We construct a jump process using a subordinated Brownian motion where the subordinator is an inverse α$ \alpha $-stable process (Lt)t≥0$ (L_t)_{t \ge 0} $ with (0,1]$ (0,\, 1] $. The results are derived using Malliavin integration by parts formula. We derive representation formulas for computing financial Greeks and show that in the event when Lt≡t$ L_t \equiv t $, we retrieve the results in Fournié et al. (1999). The purpose is to by-pass the derivative of an (irregular) pay-off function in a jump-type market by introducing a weight term in form of an integral with respect to subordinated Brownian motion. Using MonteCarlo techniques, we estimate financial Greeks for a digital option and show that the BEL formula still performs better for a discontinuous pay-off in a jump asset model setting and that the finite-difference methods are better for continuous pay-offs in a similar setting. In summary, the motivation and contribution of this paper demonstrates that the Malliavin integration by parts representation formula holds for subordinated Brownian motion and, this representation is useful in developing simple and tractable hedging strategies (the Greeks) in jump-type derivatives market as opposed to more complex jump models. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1384125 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1384125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1384125 Template-Type: ReDIF-Article 1.0 Author-Name: Youzong Xu Author-X-Name-First: Youzong Author-X-Name-Last: Xu Author-Name: Bo Li Author-X-Name-First: Bo Author-X-Name-Last: Li Title: Behavioral heterogeneity and financial markets: Locked/crossed quotes under informationally efficient pricing Abstract: Market professionals and regulators have been concerned by locked/crossed quotes (negative quoted spreads) for years. To ease the concerns that locked/crossed quotes may cause confusion or instability in financial markets and to promote market efficiency, the Securities and Exchange Commission implemented rules that ban locked/crossed quotes. We consider a competitive financial market that does not contain the factors considered by market professionals and regulators consider as the origins of locked/crossed quotes. We find that if there are at least three types of traders in this financial market, locked/crossed quotes can arise naturally under efficient pricing. These locked/crossed quotes reflect information transmitted in financial markets, facilitating price discovery. Hence, regulations banning locked/crossed quotes are inappropriate, as these regulations may harm the efficiency of price discovery. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1384524 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1384524 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1384524 Template-Type: ReDIF-Article 1.0 Author-Name: Kwame Mireku Author-X-Name-First: Kwame Author-X-Name-Last: Mireku Author-Name: Ellen Animah Agyei Author-X-Name-First: Ellen Author-X-Name-Last: Animah Agyei Author-Name: Daniel Domeher Author-X-Name-First: Daniel Author-X-Name-Last: Domeher Title: Trade openness and economic growth volatility: An empirical investigation Abstract: This paper investigated the impact of trade openness on economic growth volatility of Ghana from 1970 to 2013, using cointegration and error correction techniques. Our findings show that both the long and short run economic growth volatility is positively influenced by changes in trade openness. Volatility in domestic credit to private sector, shocks after the economic liberalization and financial openness contributed negative to economic growth volatility in the short run. The major policy implication of our paper is that developing economies should take into consideration their own realities in their trade policies to limit economic growth volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1385438 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385438 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385438 Template-Type: ReDIF-Article 1.0 Author-Name: Tuan Nguyen Author-X-Name-First: Tuan Author-X-Name-Last: Nguyen Author-Name: An Nguyen Author-X-Name-First: An Author-X-Name-Last: Nguyen Author-Name: Stuart Locke Author-X-Name-First: Stuart Author-X-Name-Last: Locke Author-Name: Krishna Reddy Author-X-Name-First: Krishna Author-X-Name-Last: Reddy Title: Does the human capital of board directors add value to firms? Evidence from an Asian market Abstract: This paper investigates the effect of the human capital of directors on the financial performance of Vietnamese-listed companies. The dynamic system generalised method of moments (system GMM) estimator is used to examine a panel data-set consisting of 315 firm-year observations over a four-year period from 2008 to 2011. In line with resource dependence theory, we report that the human capital of directors appears to have a positive influence upon a firm’s financial performance. To the best of our knowledge, this study is the first work on the topic of human capital of directors and firm performance for publicly listed companies in Vietnam. This study, by applying a dynamic longitudinal modelling approach, extends the nascent literature on board human capital as well as more generally to the corporate governance literature by providing robust empirical evidence showing that the general human capital of board directors may add value to firms. Our finding, therefore, supports the efforts made by Vietnamese policy-makers in setting up qualification standards as well as skills diversity for the boards. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1385439 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385439 Template-Type: ReDIF-Article 1.0 Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Author-Name: Petter Osmundsen Author-X-Name-First: Petter Author-X-Name-Last: Osmundsen Title: Valuation of proved vs. probable oil and gas reserves Abstract: Oil and gas reserves are the most important assets of oil and gas companies. A source of confusion for investors in oil companies, is that reserves quantities and values are uncertain estimates. Reserves are typically classified according to probabilities of recovery from underground reservoirs. All US-listed companies are required to disclose proved reserves but not probable reserves, thus leaving out potentially important information for investors and financial analysts. This study addresses the impact on market valuation of various classifications of reserves amounts. Using a data sample of 94 companies that do disclose information on probable reserves, we compare the relation between three classifications of reserves and oil company returns. While we find that information on probable reserves do not have an impact on stock returns measured over the entire time period, this is not the case since 2009, coinciding with the onset of the shale gas revolution. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1385443 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385443 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385443 Template-Type: ReDIF-Article 1.0 Author-Name: Abdoulganiour Almame Tinta Author-X-Name-First: Abdoulganiour Almame Author-X-Name-Last: Tinta Title: The determinants of participation in global value chains: The case of ECOWAS Abstract: Regional integration is the strategy adopted at the continental level to strengthen Africa’s development. However, the different regional blocs already established on the continent face many challenges. Based on the economic integration of the ECOWAS (Economic Community of West African States) region, this research analyzes the role of participation to Global Value Chain (GVC) in international trade as a crucial factor. Using a gravity model with Panel using fixed effects, the findings show that intra-regional trade is not significant in the explanation of the trade openness degree of countries but an increase in backward integration to GVC raises trade openness. The results also indicate how the competitiveness of trade structure and the structural factors related to countries affect the performance of GVCs. Intra-regional trade must further be inserted in the production of final goods which involves the maximum number of countries for the intermediate steps. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1389252 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389252 Template-Type: ReDIF-Article 1.0 Author-Name: Geeta Duppati Author-X-Name-First: Geeta Author-X-Name-Last: Duppati Author-Name: Yang (Greg) Hou Author-X-Name-First: Yang (Greg) Author-X-Name-Last: Hou Author-Name: Frank Scrimgeour Author-X-Name-First: Frank Author-X-Name-Last: Scrimgeour Title: The dynamics of price discovery for cross-listed stocks evidence from US and Chinese markets Abstract: Purpose: This study examines how, and to what extent the trading of the cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) contributes to the information flow and price discovery for the corresponding cross-listed stocks on the Shanghai Stock exchange (SSE). Design/methodology/approach: The study utilizes the information share, Granger causality test, Vector error correction model, Permanent–Temporary Gonzalo–Granger (PT/GG) method and Bivariate DCC-EGARCH model to examine the price discovery dynamics across the cross-listed stocks. Findings: The Granger causality tests show that there is two-way transmission on feedback between the Chinese and US markets. The effects from NYSE to SSE are larger than the other way round. The Bivariate DCC-EGARCH model test results indicate the volatility spill over from NYSE is larger from the SSE. Practical implications: Results suggest that in contrast to previous studies that showed very little contribution to price discovery by Chinese ADRs on the NYSE, the present study indicates that the contribution to price-discovery of Chinese ADRs on NYSE has increased relative to the past, suggesting the importance of changing time frames and economic situations. Originality/value: The study differentiates between long-term and short-term price discovery effects and finds that home country bias persists in the long term and in the short term the information from the Cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) affects price discovery for SSE stocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1389675 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389675 Template-Type: ReDIF-Article 1.0 Author-Name: Patrik Hultberg Author-X-Name-First: Patrik Author-X-Name-Last: Hultberg Author-Name: David Santandreu Calonge Author-X-Name-First: David Santandreu Author-X-Name-Last: Calonge Author-Name: Seong-Hee Kim Author-X-Name-First: Seong-Hee Author-X-Name-Last: Kim Title: Education policy in South Korea: A contemporary model of human capital accumulation? Abstract: We argue that South Korean families with children are today overinvesting in the level of education due to their high levels of expenditures on private after-school tutoring programs. This situation has evolved due to a combination of factors: a changing labor market, increasing housing and debt payments, as well as an educational “arms race” among Korean families with children. These changes are exacerbating both economic and social issues in Korean society, but are increasingly difficult to address due to issues of complementarity and coordination failures related to educational expenditures. Korea might be inexorably falling into a surprising “education trap.” Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1389804 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389804 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389804 Template-Type: ReDIF-Article 1.0 Author-Name: Sajid Mohy Ul Din Author-X-Name-First: Sajid Mohy Author-X-Name-Last: Ul Din Author-Name: Arpah Abu-Bakar Author-X-Name-First: Arpah Author-X-Name-Last: Abu-Bakar Author-Name: Angappan Regupathi Author-X-Name-First: Angappan Author-X-Name-Last: Regupathi Title: Does insurance promote economic growth: A comparative study of developed and emerging/developing economies Abstract: This paper examines the relationship between insurance and economic growth in 20 countries for the period 2006–2015. Insurance activity is measured through three distinctive proxies such as net written premiums, penetration and density. The Hausman statistics confirmed that fixed effect model is appropriate for this data-set. This study found a positive and a significant relationship between life insurance, measured through net written premiums and density, and economic growth for developed countries while the same is true for developing countries when insurance is measured through penetration proxy. The results also reveal that non-life insurance has statistically significant, for all three proxies, relationship with economic growth for developing countries whereas, in case of developed countries, the results are only significant when insurance density is used as a proxy for insurance. Moreover, the role of non-life insurance is more significant for developing countries as compared to developed countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1390029 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1390029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1390029 Template-Type: ReDIF-Article 1.0 Author-Name: Ume Habibah Author-X-Name-First: Ume Author-X-Name-Last: Habibah Author-Name: Suresh Rajput Author-X-Name-First: Suresh Author-X-Name-Last: Rajput Author-Name: Ranjeeta Sadhwani Author-X-Name-First: Ranjeeta Author-X-Name-Last: Sadhwani Title: Stock market return predictability: Google pessimistic sentiments versus fear gauge Abstract: This study aims at comparing Google Search Volume Indices (GSVIs—including market crash and bear market) and VIX (Investor Fear Gauge Index) in terms of explaining the S&P 500 returns. The VIX is found a more robust predictor of stock market returns than Google indices, and it does granger cause the GSVIs more robustly. In addition, in vector auto-regression model, VIX has more prominent effect of its past values on both Google indices. Finally, using the autoregressive distributed lag (ARDL) and nonlinear ARDL models, contrary to prior literature, we find significant symmetric negative relationship between changes in VIX and S&P 500 returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1390897 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1390897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1390897 Template-Type: ReDIF-Article 1.0 Author-Name: Mauro Ribeiro de Oliveira Author-X-Name-First: Mauro Author-X-Name-Last: Ribeiro de Oliveira Author-Name: Fernando Moreira Author-X-Name-First: Fernando Author-X-Name-Last: Moreira Author-Name: Francisco Louzada Author-X-Name-First: Francisco Author-X-Name-Last: Louzada Title: The zero-inflated promotion cure rate model applied to financial data on time-to-default Abstract: In this paper, we extend the promotion cure rate model studied in Yakovlev and Tsodikov (1996) and Chen et al. (1999) by incorporating an excess of zeros in the modeling. Despite relating covariates to the cure fraction, the current approach does not enable us to relate covariates to the fraction of zeros. The presence of excess of zeros in credit risk survival data stems from a group of loans that became defaulted shortly after the granting process. Through our proposal, all survival data available of customers is modeled with a multinomial logistic link for the three classes of banking customers: (i) individual with an event at the starting time (zero time), (ii) non-susceptible for the event, or (iii) susceptible for the event. The model parameter estimation is reached by the maximum likelihood estimation procedure and Monte Carlo simulations are carried out to assess its finite sample performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1395950 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1395950 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1395950 Template-Type: ReDIF-Article 1.0 Author-Name: Dengjun Zhang Author-X-Name-First: Dengjun Author-X-Name-Last: Zhang Author-Name: Jinghua Xie Author-X-Name-First: Jinghua Author-X-Name-Last: Xie Title: Investment and revenue cap under incentive regulation: The case study of the Norwegian electricity distributors Abstract: Electricity distribution operators are regulated as monopolies around the world. Incentive regulation is further applied to relate their allowed revenues (revenue cap) to cost efficiency and investment. Incentive regulation varies cross countries and has evolved over time for individual countries. Norway is one of the first countries reforming the network distributors by incentive regulation. Using the long time series data, we evaluated the impact of the Norwegian regulation regimes on firms’ investment. The panel data model includes common time-varying factors to control firm heterogeneity. The cross-section dependence test is further employed to test the relationship between investment and revenue cap in different regulation regimes. The empirical findings confirm a dynamic pattern of investment behavior between regimes, in terms of both the unobserved common factors and the cross-section dependence between investment and revenue cap. This study provides an interesting solution for incentive evaluation and contributes to the management accounting literature in terms of econometric techniques. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1400900 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1400900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1400900 Template-Type: ReDIF-Article 1.0 Author-Name: Thai-Ha Le Author-X-Name-First: Thai-Ha Author-X-Name-Last: Le Title: Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam Abstract: This study examines the effect of relative economic distance (RED) between countries on bilateral foreign trade and foreign direct investment (FDI), using Vietnam as a case study. The difference in per-capita GDP is used as proxy for the RED between Vietnam and her partner countries. Modified gravity models are estimated using the procedure of panel-corrected standard errors (PCSE). The results indicate that there is a feedback and significantly positive relationship between Vietnam’s trade and FDI inflows. The economic distance between Vietnam and her partner countries has a significantly positive influence on the country’s bilateral trade and FDI inflows. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1403108 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1403108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1403108 Template-Type: ReDIF-Article 1.0 Author-Name: Crentsil Kofi Agyekum Author-X-Name-First: Crentsil Kofi Author-X-Name-Last: Agyekum Author-Name: Haifeng Huang Author-X-Name-First: Haifeng Author-X-Name-Last: Huang Author-Name: Jianshu Chen Author-X-Name-First: Jianshu Author-X-Name-Last: Chen Title: The impact of the Chinese cornstarch futures on spot market and corn futures market Abstract: This article investigates price transmission mechanism and volatility impact between Chinese cornstarch futures market and relevant markets through Johansen cointegration test, VEC model and GARCH model. The empirical results indicated that the Chinese cornstarch futures price could guide cornstarch spot price uni-directionally and there are long-term cointegration relationships between them. There is a co-integration and bi-directional lead relationship between cornstarch futures price and corn futures price. The launch of cornstarch futures market can slightly reduce volatility of domestic corn futures market. However, the launch of cornstarch futures market has no significant impact on the spot market. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1405580 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1405580 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1405580 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed Issah Author-X-Name-First: Mohammed Author-X-Name-Last: Issah Author-Name: Samuel Antwi Author-X-Name-First: Samuel Author-X-Name-Last: Antwi Title: Role of macroeconomic variables on firms’ performance: Evidence from the UK Abstract: The purpose of this study is to investigate the role of macroeconomic conditions and predict the base performance of a firm as represented by Return on Asset (ROA) and macroeconomic variables. The predictor variables used in the construction of the models were selected using PCA. For the full sample and the industry-specific sample of data, the regression model evaluated the significance of macroeconomic factors based on t-statistics and the R2 test. The results of the study are promising. The full sample and five out of six industry variable models incorporating lead–lag relationships have an R2 between 0.79 and 0.95. For the full sample, the results of this study indicate that macroeconomic conditions should be incorporated when predicting firms’ performance. For the industry-specific models, the empirical results present a mixed picture of the effect of macroeconomic factors and the lagged ROA on firm performance and the same conclusion for full sample cannot be reached easily when looking at the industry specific results. The results of this paper provide a compelling argument that firm performance is a function of the prior year ROA, and macro-economic variables and that macroeconomic variables and prior year ROA can have impact on future firm performance measure by ROA. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1405581 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1405581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1405581 Template-Type: ReDIF-Article 1.0 Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Title: Accounting method choice and market valuation in the extractive industries Abstract: For more than 40 years, oil and gas companies have been able to choose between two competing methods for accounting for exploration activities. The implication is that two otherwise identical companies can report substantially different earnings depending on chosen method. This situation, where oil and gas company managers have discretion to choose between different accounting methods, has transpired because of intense lobbyism towards accounting standard setters by oil and gas companies in favour of one of the methods. The existence of two accounting methods is concerning since investors will struggle to uncover the true underlying performance of oil and gas companies. We conjecture that investors will resort to operating cash flows to evaluate oil company financial performance since cash flows are less affected by managers’ discretion than earnings are. In this study, we investigate the relevance to investors of earnings versus cash flow for oil and gas companies. Our results show that cash flow measures, but not earnings, are significantly associated with oil company returns. These findings suggest that the financial markets lack confidence in oil company earnings, irrespective of accounting method used, and investors therefore prefer cash flows as measures of underlying financial performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1408944 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1408944 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1408944 Template-Type: ReDIF-Article 1.0 Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Replication studies Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1410940 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1410940 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1410940 Template-Type: ReDIF-Article 1.0 Author-Name: Maximilian-Benedikt Herwarth Kohn Author-X-Name-First: Maximilian-Benedikt Author-X-Name-Last: Herwarth Kohn Author-Name: Pedro L. Valls Pereira Author-X-Name-First: Pedro L. Author-X-Name-Last: Valls Pereira Title: Speculative bubbles and contagion: Analysis of volatility’s clusters during the DotCom bubble based on the dynamic conditional correlation model Abstract: Reviewing the definition and measurement of speculative bubbles in context of contagion, this paper analyses the DotCom bubble in American and European equity markets using the dynamic conditional correlation (DCC) model proposed as on one hand as an econometrics explanation and on the other hand the behavioral finance as an psychological explanation. Contagion is defined in this context as the statistical break in the computed DCCs as measured by the shifts in their means and medians. Even it is astonishing, that the contagion is lower during price bubbles, the main finding indicates the presence of contagion in the different indices among those two continents and prove the presence of structural changes during financial crisis. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1411453 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1411453 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1411453 Template-Type: ReDIF-Article 1.0 Author-Name: Gang He Author-X-Name-First: Gang Author-X-Name-Last: He Author-Name: Shuzhen Zhu Author-X-Name-First: Shuzhen Author-X-Name-Last: Zhu Author-Name: Haifeng Gu Author-X-Name-First: Haifeng Author-X-Name-Last: Gu Title: On the construction of Chinese stock market investor sentiment index Abstract: Measuring investor sentiment has become one of the most widely examined areas in behavioral finance. For the purpose of measuring investor sentiment more accurately, we classify the investor sentiment proxy into six market dimensions for the first time, and construct the investor sentiment monitoring index system. By using PCA method and excluding macroeconomic factors, we construct comprehensive investor sentiment index in Chinese stock market. Our results show this index as a good prediction ability to stock market. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1412230 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1412230 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1412230 Template-Type: ReDIF-Article 1.0 Author-Name: Gideon Danso-Abbeam Author-X-Name-First: Gideon Author-X-Name-Last: Danso-Abbeam Author-Name: Joshua Antwi Bosiako Author-X-Name-First: Joshua Antwi Author-X-Name-Last: Bosiako Author-Name: Dennis Sedem Ehiakpor Author-X-Name-First: Dennis Sedem Author-X-Name-Last: Ehiakpor Author-Name: Franklin Nantui Mabe Author-X-Name-First: Franklin Nantui Author-X-Name-Last: Mabe Title: Adoption of improved maize variety among farm households in the northern region of Ghana Abstract: This study aims to identify the determinants of adoption of improved maize variety (IMV) among farmers in the northern region of Ghana and subsequently assess the factors influencing the intensity of IMV adoption. The study used two econometric techniques to address its objectives. Firstly, a multinomial logit was employed to identify factors affecting the adoption of IMV. Secondly, Tobit regression was used to analyze the determinants of the intensity of IMV adoption. A fractional regression model through the procedure proposed by Papke and Wooldridge was also used to test the robustness of the results obtained from the Tobit model. Results from the study revealed that variables such as the age of the household head, household size, level of experience, farm workshop attendance, the number of years in formal education, access to agricultural credit, membership of a farmer-based organization, availability of labor and extension contacts influence the adoption of IMV. Moreover, variables such as years in formal education, household size, distance to farm plots, attendance of demonstration fields, membership of a farmer-based organization, farm size, and previous income are significant determinants of the intensity of IMV adoption. The study has implications for achieving food security and poverty reduction through agricultural productivity growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1416896 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1416896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1416896 Template-Type: ReDIF-Article 1.0 Author-Name: Dong-Jin Pyo Author-X-Name-First: Dong-Jin Author-X-Name-Last: Pyo Title: A multi-factor model of heterogeneous traders in a dynamic stock market Abstract: This study develops an agent-based computational stock market model in which each trader’s buying and selling decisions are endogenously determined by multiple factors: namely, firm profitability, past stock price movement, and imitation of other traders. Each trader can switch from being a buyer to a seller, and vice versa, depending on market conditions. Simulation findings imply liquidity in the stock market decreases as more traders try to behave in a similar way to other traders. Stock return volatility is increasing in memory length when the information set of a trader includes only the fundamental of stock. On the other hand, when all traders consider only the past stock price movement, stock prices undergo boom and bust cycles with the occasional no-trade states. Furthermore, when traders consider three factors equally, the stock return is characterized by more pronounced fat-tail property and lower volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1416902 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1416902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1416902 Template-Type: ReDIF-Article 1.0 Author-Name: Jacinta Chan Phooi M’ng Author-X-Name-First: Jacinta Chan Phooi Author-X-Name-Last: M’ng Author-Name: Mahfuzur Rahman Author-X-Name-First: Mahfuzur Author-X-Name-Last: Rahman Author-Name: Selvam Sannacy Author-X-Name-First: Selvam Author-X-Name-Last: Sannacy Title: The determinants of capital structure: Evidence from public listed companies in Malaysia, Singapore and Thailand Abstract: We investigate the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013. We also investigate how firm-specific factors such as profitability, firm size, tangibility of assets and depreciation to total assets along with the macroeconomic factor such as inflation influence the capital structure decisions of public listed companies. Our findings support capital structure theories such as trade-off and pecking order theories and are consistent with prior empirical studies. We find all the factors examined in this study provide strong explanatory power for the capital structure decisions of the sampled public listed companies across all three countries. We find profitability has a significant negative influence on capital structure for Malaysia and Singapore but insignificant for Thailand. While, firm size has a significant positive influence on capital structure for all countries. Our findings also suggest that tangibility of assets has a significant positive influence on capital structure for Malaysia and Singapore while insignificant for Thailand. The depreciation to total assets indicates a negative influence on capital structure across all the three countries. Our study should be of interest to top managers who wish to have optimal capital structure to improve the firm performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1418609 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1418609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1418609 Template-Type: ReDIF-Article 1.0 Author-Name: Tony Nchokoe Matlasedi Author-X-Name-First: Tony Nchokoe Author-X-Name-Last: Matlasedi Title: The influence of the real effective exchange rate and relative prices on South Africa’s import demand function: An ARDL approach Abstract: This paper analyses the influence of the real effective exchange rate (REER) and relative prices on South Africa’s import demand function both in the long run and the short run. The ARDL bounds testing approach is employed to test the long-run relationship hypothesis. The estimation of both the long-run and short-run import demand models is based on the ARDL error correction methodology. All the tests are applied to South Africa’s secondary quarterly data covering the period 1980Q1–2014Q4. Real GDP and Foreign reserves were also added to the models as control variables. The Bounds test proved cointegration and the results show that in the long run, South Africa’s import demand is negatively related to the REER, while being positively related to Real GDP (used as a proxy for national income) and relative prices. The coefficient of the relative price variable is greater than 1 in absolute terms, thus also confirming the Marshal Lerner condition. In the short run, import demand is found to be negatively related to the REER, while being positively related to Real GDP, relative prices and the stock of foreign reserves. The result gives hope that a policy aimed at depreciating the currency may help bring down the surge in import demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1419778 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1419778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1419778 Template-Type: ReDIF-Article 1.0 Author-Name: Tariq Aziz Author-X-Name-First: Tariq Author-X-Name-Last: Aziz Author-Name: Valeed Ahmad Ansari Author-X-Name-First: Valeed Ahmad Author-X-Name-Last: Ansari Title: Idiosyncratic volatility and stock returns: Indian evidence Abstract: This paper examines the idiosyncratic volatility (IV) puzzle in the Indian stock market for the period 1999–2014. Univariate and bivariate sorting, as well as cross-section regressions, suggest a positive relation between idiosyncratic volatility and future stock returns. However, this relation is sensitive to the choices of portfolio weighting schemes, types of stocks (small, medium, and large), model specifications, and sample periods. Additionally, this study also contests the assumption that the relation between stock returns and predictor variables (including IV) remains same across different points of the conditional distribution and argues that an insignificant relation at the mean level may be significant at the extreme quantiles of the conditional distribution. Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1420998 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1420998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1420998 Template-Type: ReDIF-Article 1.0 Author-Name: M. Kateregga Author-X-Name-First: M. Author-X-Name-Last: Kateregga Author-Name: S. Mataramvura Author-X-Name-First: S. Author-X-Name-Last: Mataramvura Author-Name: D. Taylor Author-X-Name-First: D. Author-X-Name-Last: Taylor Title: Erratum Journal: Cogent Economics & Finance Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/23322039.2017.1427023 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1427023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1427023 Template-Type: ReDIF-Article 1.0 Author-Name: John Fry Author-X-Name-First: John Author-X-Name-Last: Fry Author-Name: McMillan David Author-X-Name-First: McMillan Author-X-Name-Last: David Title: Stochastic modelling for financial bubbles and policy Abstract: In this paper, we draw upon the close relationship between statistical physics and mathematical finance to develop a suite of models for financial bubbles and crashes. By modifying previous approaches, we are able to derive novel analytical formulae for evaluation problems and for the expected timing of future change points. In particular, we help to explain why previous approaches have systematically overstated the timing of changes in market regime. The list of potential empirical applications is deep and wide ranging, and includes contemporary housing bubbles, the Eurozone crisis and the Crash of 2008. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2014.1002152 File-URL: http://hdl.handle.net/10.1080/23322039.2014.1002152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1002152 Template-Type: ReDIF-Article 1.0 Author-Name: Nobuyoshi Yamori Author-X-Name-First: Nobuyoshi Author-X-Name-Last: Yamori Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Japanese SMEs and the credit guarantee system after the global financial crisis Abstract: This paper provides a brief explanation of the Japanese public credit guarantee system and analyzes what role it played during the global financial crisis. The author conducted a questionnaire survey of small and medium-sized enterprises (SMEs) in Aichi Prefecture, the prefecture most seriously hit by the crisis, in collaboration with the Aichi-ken Credit Guarantee Corporation. Using the survey, which provides valuable information about the usage of the credit guarantee program, this paper finds that the credit guarantee system was effective in protecting the economy from collapsing. The system was so generous that now almost all SMEs want it to remain unchanged. However, as the generous system brings heavy financial burdens on the Japanese government and, more seriously, discourages firms and banks from improving their efficiencies, the author insists that reforms, such as limiting the target and the guarantee coverage, are inevitable. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2014.1002600 File-URL: http://hdl.handle.net/10.1080/23322039.2014.1002600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1002600 Template-Type: ReDIF-Article 1.0 Author-Name: Philippe Adair Author-X-Name-First: Philippe Author-X-Name-Last: Adair Author-Name: Mohamed Adaskou Author-X-Name-First: Mohamed Author-X-Name-Last: Adaskou Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Trade-off-theory vs. pecking order theory and the determinants of corporate leverage: Evidence from a panel data analysis upon French SMEs (2002–2010) Abstract: We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the period 2002–2010. In accordance to TOT, trade credit acts as a signal to creditors who have no private information about the firm and access to credit relies on guarantees. The relationship between corporate leverage and the profitability of SMEs as well as growth opportunities support POT. However, the relationship between corporate leverage and the age of SMEs, as well as their size, remains inconclusive with respect to both theories. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1006477 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1006477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1006477 Template-Type: ReDIF-Article 1.0 Author-Name: Francisco Javier Sáez-Fernández Author-X-Name-First: Francisco Javier Author-X-Name-Last: Sáez-Fernández Author-Name: Andrés J. Picazo-Tadeo Author-X-Name-First: Andrés J. Author-X-Name-Last: Picazo-Tadeo Author-Name: Mercedes Beltrán-Esteve Author-X-Name-First: Mercedes Author-X-Name-Last: Beltrán-Esteve Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Assessing the performance of the Latin American and Caribbean banking industry: Are domestic and foreign banks so different? Abstract: This paper studies the relative performance of domestic and foreign banks in the Latin American and Caribbean banking industry. Data Envelopment Analysis is used to compute technical efficiency scores for the years 2001 and 2013. Our main contribution is twofold. On the one hand, we assess performance at the level of the management of specific production factors. On the other hand, we distinguish program efficiency from managerial efficiency, which allows us to evaluate whether the differences in technical efficiency between national and foreign banks are due to the use of different technologies (program efficiency) or, conversely, differences in the managerial capacities of managers in both categories of banks (managerial efficiency). The results show that foreign banks are more efficient than domestic ones, and provide evidence that the greater efficiency of foreign banks is mostly due to the superior technology they use. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1006976 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1006976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1006976 Template-Type: ReDIF-Article 1.0 Author-Name: Chu V. Nguyen Author-X-Name-First: Chu V. Author-X-Name-Last: Nguyen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis Abstract: Asymmetries in the Vietnamese lending central bank’s policy-related rate spread were documented. Empirical results revealed that the spread adjusts to the threshold faster when the central bank’s policy-related rates decrease relative to the lending rates than when the central bank’s policy-related rates move in the opposite direction. Additionally, the empirical findings indicate that Vietnamese commercial banks exhibit competitive rate setting behavior which may be attributable to graft maximization by bank’s management. The results also show bidirectional Granger causality between the Vietnamese lending rate and the central bank’s policy-related rate, indicating that the lending rate and the central bank’s policy-related rate affect each other’s movements. These results suggest that monetary authority can use its countercyclical monetary policy instruments to achieve its macroeconomics objectives. However, the estimation results of the GARCH (2, 3)-in-Mean model suggest that they should intervene more frequently and by small policy measures to minimize the conditional variance of the spread to minimize the magnitude of the cycle of the lending rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1007808 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1007808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1007808 Template-Type: ReDIF-Article 1.0 Author-Name: Laurent Bouvier Author-X-Name-First: Laurent Author-X-Name-Last: Bouvier Author-Name: Tahir M. Nisar Author-X-Name-First: Tahir M. Author-X-Name-Last: Nisar Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Design and impacts of securitized leveraged buyouts Abstract: Private equity investors have traditionally used innovative financial methods in structuring their leveraged buyouts (LBO) deals. In recent years, they have frequently employed securitization to raise funds on the back of their acquisitions’ operating assets. A distinctive feature of these transactions is that they aim to enhance the securitizing LBO’s debt pay capacity through a set of structural enhancements including operating debt covenants. Operating covenants—supported by legal security arrangements—mitigate an LBO’s financial and operating risks and improve its cash generation potential. We test this hypothesis by examining changes in the operating income of Hertz LBO. The results show that, within the operating framework adopted by Hertz LBO, securitization improved the transaction’s debt service capacity. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1009307 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1009307 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1009307 Template-Type: ReDIF-Article 1.0 Author-Name: Daniela Federici Author-X-Name-First: Daniela Author-X-Name-Last: Federici Author-Name: Valentino Parisi Author-X-Name-First: Valentino Author-X-Name-Last: Parisi Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Do corporate taxes reduce investments? Evidence from Italian firm-level panel data Abstract: This paper uses an Italian firm-level panel data-set over the period 1994–2006 to investigate the nexus between corporate taxation and investment. Studying the effects of corporate taxation on investment at the micro level has two advantages. Firstly, investment is free of aggregation biases and secondly, the firm-level dimension allows asking whether the effects of corporate taxation differ across firms with different characteristics. In the empirical analysis, we employ a Generalized Method of Moments estimator, which permits us to handle not only the dynamic structure of the model and of the predetermined or endogenous explanatory variables, but also firm-specific factors, heteroskedasticity, and autocorrelation of individual observations. We find that corporate taxes distort investment decisions. The results are robust to the inclusion of many controls. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1012435 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012435 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012435 Template-Type: ReDIF-Article 1.0 Author-Name: Yoichi Tsuchiya Author-X-Name-First: Yoichi Author-X-Name-Last: Tsuchiya Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Linkages among commodity futures prices in the recent financial crisis: An application of cointegration tests with a structural break Abstract: In this study, we investigate the existence of long-term co-movements among the prices of commodity futures contracts. We use a cointegration test, which accounts for the presence of a structural break. We show that while there is a long-term relationship among agricultural and among non-agricultural commodity futures prices when a structural break is taken into account, there is no such relationship without allowing for a structural break. We also show that these break points, in fact, occur a few months before the recent global financial crisis. Although the previous literature broadly casts doubt on such price co-movements, our results confirm that market performance improved during the sample period. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1012436 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012436 Template-Type: ReDIF-Article 1.0 Author-Name: Jacques A. Schnabel Author-X-Name-First: Jacques A. Author-X-Name-Last: Schnabel Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The underinvestment problem under conglomeration Abstract: This theoretical paper explores whether the underinvestment problem is aggravated or ameliorated by the formation of a pure conglomerate. It establishes that the answer depends critically on the volatility of corporate assets. If volatility is low, conglomeration ameliorates the underinvestment problem, whereas if volatility is high, conglomeration aggravates the underinvestment problem. These analytical results are then invoked as a potential explanation for the ambiguous conclusions of empirical studies that delve into the existence of a conglomerate discount. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1012452 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012452 Template-Type: ReDIF-Article 1.0 Author-Name: Naresh Kumar Sharma Author-X-Name-First: Naresh Kumar Author-X-Name-Last: Sharma Author-Name: Motilal Bicchal Author-X-Name-First: Motilal Author-X-Name-Last: Bicchal Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Measuring core inflation in India: An asymmetric trimmed mean approach Abstract: The paper seeks to obtain an optimal asymmetric trimmed mean-based core inflation measure in the class of trimmed mean measures when the distribution of price changes is leptokurtic and skewed to the right for any given period. Several estimators based on asymmetric trimmed mean approach are constructed and estimates generated by use of these estimators are evaluated on the basis of certain established empirical criteria. The paper also provides the method of trimmed mean expression “in terms of percentile score.” This study uses 69 monthly price indices which are constituent components of Wholesale Price Index for the period, April 1994 to April 2009, with 1993–1994 as the base year. Results of the study indicate that an optimally trimmed estimator is found when we trim 29.5% from the left-hand tail and 20.5% from the right-hand tail of the distribution of price changes. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1014252 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1014252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1014252 Template-Type: ReDIF-Article 1.0 Author-Name: Kazumine Kondo Author-X-Name-First: Kazumine Author-X-Name-Last: Kondo Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Cross-prefecture expansion of regional banks in Japan and its effects on lending-based income Abstract: This paper examines whether Japanese regional banks entering the banking market in other prefectures, including neighboring prefectures, can increase their lending-based income. To stimulate local economies and support local small- and medium-sized enterprises, the current Japanese Government’s policies for regional banks require these banks to engage in region-based relationship banking practices. In this study, three lending-based income measures were used as dependent variables, and estimation was made using panel data from Japanese regional banks. As a result, it was determined that regional banks that enter markets in other prefectures experience positive effects in all three lending-based income measures. Moreover, it was determined that regional banks whose headquarters are located in non-urban areas derive greater benefit from their loan businesses upon entry into other prefectures, including neighboring prefectures, where economic activity is more vibrant than regional banks whose headquarters are located in urban areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1017947 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017947 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017947 Template-Type: ReDIF-Article 1.0 Author-Name: Agha Jahanzeb Author-X-Name-First: Agha Author-X-Name-Last: Jahanzeb Author-Name: Norkhairul Hafiz Bajuri Author-X-Name-First: Norkhairul Hafiz Author-X-Name-Last: Bajuri Author-Name: Aisha Ghori Author-X-Name-First: Aisha Author-X-Name-Last: Ghori Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Market power versus capital structure determinants: Do they impact leverage? Abstract: The purpose of this study is to investigate the association between market power and capital structure. This study will further provide a logical explanation towards the factors affecting capital structure. This study analysed 176 non-financial Pakistani companies listed on Karachi Stock Exchange over the period of 2003–2012. Capital structure has been tried to investigate with a different perspective by investigating its association with market power. It has been seen that there is a significant and positive relation between market power and capital structure. Size and liquidity remained significantly negative with capital structure, whereas profitability and dividend payout remained significantly positive with capital structure. To the best of authors’ knowledge, this is the first study that investigates the relationship between market power and capital structure in any developing economy by employing the data of non-financial Pakistani firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1017948 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017948 Template-Type: ReDIF-Article 1.0 Author-Name: Boriss Siliverstovs Author-X-Name-First: Boriss Author-X-Name-Last: Siliverstovs Author-Name: Ulrich Thiessen Author-X-Name-First: Ulrich Author-X-Name-Last: Thiessen Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Incentive effects of fiscal federalism: Evidence for France Abstract: This paper provides an empirical analysis on the question whether equalization payments across regions and transfers from the central government stimulate regional growth or impede it. Using a panel of 22 French regions from 2002 to 2008, we find that regional economic growth is positively affected by the fiscal equalization system. We employ two indicators of this system: the transfer volume measure (approximated by either tax revenues in other regions or transfers to regions) and the marginal retention rate. Our main finding is that the transfer volume effect is positive for growth in both donor and recipient regions. Hence, we do not find any evidence that regional governments in France allocate transfers inefficiently. This finding contradicts previous empirical studies for federal countries that tend to find adverse incentive effects of fiscal equalization on regional governments and growth. A major explanation behind this result could be that the volume of the transfers in France may appear to be relatively moderate, i.e. small enough to avoid adverse effects. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1017949 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017949 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017949 Template-Type: ReDIF-Article 1.0 Author-Name: Peng Cheng Author-X-Name-First: Peng Author-X-Name-Last: Cheng Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Do initial reserves signal long-term IPO stock performance? Abstract: This research examines the long-run Initial Public Offerings (IPO) stock performance of a large Chinese sample, and in particular the relationship between initial reserves (capital reserves and revenue reserves immediately after the IPO) and long-run IPO stock performance. In general, Chinese IPOs do not underperform the market/industry benchmarks, but they significantly underperform their size-matched industry peers. More importantly, Chinese IPO firms tend to issue a large amount of bonus shares (also called as a ‘capitalization issue’, i.e. capitalization of the reserves) after the IPO. Consistent with bonus share signaling hypothesis, Chinese IPO firms exhibit increased operating/stock performance subsequent to bonus issues. Interestingly, the size of the initial reserves is positively associated with long-run IPO stock performance. This research adds another piece of empirical evidence to the literature whether IPOs underperform in the long run, by confirming that the choice of performance measures and benchmarks could affect the conclusion on the IPO long-run performance. Further, it discovers that size of initial reserves could signal superior IPO stock performance in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1018697 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1018697 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1018697 Template-Type: ReDIF-Article 1.0 Author-Name: Jayanthi Thennakoon Author-X-Name-First: Jayanthi Author-X-Name-Last: Thennakoon Author-Name: Jagath Dissanayake Author-X-Name-First: Jagath Author-X-Name-Last: Dissanayake Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Trade openness, income, and role of institutions: A revisit using heterogeneous panel data models Abstract: The positive association between trade openness and income has been debated over years due to serious estimation flaws prevailing in the cross-country empirical trade literature. The present paper contributes to this debate by re-examining the long-run relationship between trade openness and income per capita focusing on role of institutions. It does so by estimating a heterogeneous panel data model with 97 countries over the period 1980–2012 taking unobserved common factors into consideration. Our method is a more appropriate approach to estimate this relationship given the potential cross-section dependence and parameter heterogeneity associated with cross-country growth regressions. The results have found evidence to suggest that trade openness is positively and significantly associated with income per capita even after controlling for parameter heterogeneity, cross-section dependence and possible endogeneity. Results further suggest that better quality institutions complement the effects on income underscoring the significance of institutions in benefiting more from trade openness. This study provides more reliable estimates to support the claim that trade openness has significant and robust role on economic growth and development. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1020031 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1020031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1020031 Template-Type: ReDIF-Article 1.0 Author-Name: Naranchimeg Mijid Author-X-Name-First: Naranchimeg Author-X-Name-Last: Mijid Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Gender differences in Type 1 credit rationing of small businesses in the US Abstract: This paper explores Type 1 credit rationing by gender using data from the 1998 and 2003 Survey of Small Business Finances (SSBF). Type 1 credit rationing occurs when borrowers receive a smaller loan than they requested. We use two measures of Type 1 credit rationing to examine whether it is related to gender discrimination in lending. Our results show that women business owners are not likely to be Type 1 rationed. However, newer female-owned firms receive significantly lower loan amounts than requested compared to their male-owned counterparts. We also find that less experienced women receive significantly lower loan amounts compared to less experienced men. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1021553 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1021553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1021553 Template-Type: ReDIF-Article 1.0 Author-Name: Johannes M. Lehner Author-X-Name-First: Johannes M. Author-X-Name-Last: Lehner Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Making sense in asset markets: Strategies for Implicit Organizations Abstract: While asset markets are traditionally left to economic inquiry, the paper shows that there is both a legal possibility and an incentive for organizing within such markets and for exercising market share-based strategic maneuvering. It proposes, based on sensemaking theory, Implicit Organizations in asset markets to exploit equivocality for momentum trading strategies. An Implicit Organization fulfills the criteria of an organization, while maintaining the image of a perfect market. Its members coordinate via market signals and fixed investment time windows to ensure positive returns to strategic maneuvering in asset markets. In support of hypotheses derived from sensemaking theory, results of empirical studies from two different investment contexts (Xetra and NYSE) provide evidence that equivocal analysts’ recommendations predict investment returns after a fixed time period. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1024022 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1024022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1024022 Template-Type: ReDIF-Article 1.0 Author-Name: Emanuel R. Leao Author-X-Name-First: Emanuel R. Author-X-Name-Last: Leao Author-Name: Sergio C. Lagoa Author-X-Name-First: Sergio C. Author-X-Name-Last: Lagoa Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A contribution to the study of the German treasury bills market Abstract: We study the yields in the German treasury bills market. We take a detailed look at the yield banks require to buy treasury bills in the primary market, and we also examine the yield households and nonbank firms demand to buy these bills in the secondary market. We use data from real world tenders to show that the bids set by banks are in accordance with the predictions of our theoretical framework. In particular, we show that current monetary policy and the market’s expectations regarding the future path of monetary policy can be used to define an interval in which the bids from banks lie. Our theoretical predictions for the secondary market also match the data. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1024927 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1024927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1024927 Template-Type: ReDIF-Article 1.0 Author-Name: John Chiwuzulum Odozi Author-X-Name-First: John Chiwuzulum Author-X-Name-Last: Odozi Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Cross border trade in grain between Nigeria and neighbouring Niger: Risk management assessment along Sokoto Illela-Konni border land Abstract: Grain is an important marketable commodity that is hampered by risk of interrelated dimensions, particularly in borderlands of West Africa. Assessing the extent of risk in borderlands can be valuable for policy-makers and likely to contribute to increased regional trade through effective management. Risk management along the grain supply chain was investigated. The methodology was qualitative using desk review of literature and field survey and interviews. While the survey revealed evidence of substantial volume of grain exchange, most of the traders indicated transportation, high taxes and low production of grain as the most important risk factors limiting trade. Production was found to be limited by low access to agricultural insurance, fertilizer, irrigation and credit. Although farmers had access to production information, market information was inadequate. While public grain reserve exists to manage price risk; the capacity was insignificant compared to the magnitude of grain trade in the region. The guaranteed minimum grain price was not collectively determined but by government and their contractors. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1029250 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1029250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1029250 Template-Type: ReDIF-Article 1.0 Author-Name: Garoui Nassreddine Author-X-Name-First: Garoui Author-X-Name-Last: Nassreddine Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial information disclosure Abstract: The purpose of this paper is to examine determinants of financial information disclosure by Tunisian companies. The methodology is based on qualitative approach, using the cognitive mapping technique. To take into account the specificities of the Tunisian economic, we felt that it is essential to conduct a qualitative analysis in the light of which we can identify the factors motivating the disclosure of financial information. The qualitative analysis is based on the census via a set of cases carried out in several Tunisian companies to understand their perceptions regarding the determinants of financial disclosure. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1038208 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1038208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1038208 Template-Type: ReDIF-Article 1.0 Author-Name: Alhaji Jibrilla Aliyu Author-X-Name-First: Alhaji Author-X-Name-Last: Jibrilla Aliyu Author-Name: Shehu Mohammed Tijjani Author-X-Name-First: Shehu Author-X-Name-Last: Mohammed Tijjani Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Asymmetric cointegration between exchange rate and trade balance in Nigeria Abstract: This paper empirically examines the long-run pass through of the official exchange rates into trade balance in Nigeria by means of threshold cointegration and asymmetric error correction modeling. The study provides evidence for non-linear cointegration between our variables of interest. The estimated asymmetric error correction models provide new evidence for slower transmission of exchange rate depreciations into the country’s trade balance, which in turn appears to offer partial support for the Dutch disease hypothesis. This finding suggests that policy-makers cannot hope to use currency devaluation to improve the trade balance. It is recommended that policy-makers focus attention on diversification of the economy away from dependence on crude oil exports into productive manufacturing and non-oil exports, which will be vital in making the economy more competitive. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1045213 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045213 Template-Type: ReDIF-Article 1.0 Author-Name: Kenneth E. Scislaw Author-X-Name-First: Kenneth E. Author-X-Name-Last: Scislaw Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The value premium within and across GICS industry sectors in a pre-financial collapse sample Abstract: A portfolio manager employing a top-down/bottom-up method who seeks to capture the value premium long promised in academic literature would want to first determine whether the premium exists across industries and not just observed in firm-specific book-to-market (BE/ME) relationships. Next, the investor would want to know if BE/ME characteristics are stable across these defined homogeneous groups or whether there is considerable variation. Results show that certain industries appear to have a natural or structural tendency to reflect either a high or low BE/ME characteristic. Results also shows that growth-oriented industry BE/ME characteristics appear to be more stable than value-oriented industries over time. Moreover, stocks from growth-oriented industries tend to cluster at high rates in the lowest BE/ME quintile, while stocks from value-oriented industries appear more evenly distributed across middle BE/ME quintiles over time. Value stocks found in growth sectors outperform value stocks in value sectors, contrary to prior published results. The January premium exists both within and across Global Industry Classification Standard industry sectors, but the value premium is not subsumed by the January effect in either analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1045214 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045214 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045214 Template-Type: ReDIF-Article 1.0 Author-Name: Ivan K. Cohen Author-X-Name-First: Ivan K. Author-X-Name-Last: Cohen Author-Name: Fabrizio Ferretti Author-X-Name-First: Fabrizio Author-X-Name-Last: Ferretti Author-Name: Bryan McIntosh Author-X-Name-First: Bryan Author-X-Name-Last: McIntosh Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: A simple framework for analysing the impact of economic growth on non-communicable diseases Abstract: Non-communicable diseases (NCDs) are currently the leading cause of death worldwide. In this paper, we examine the channels through which economic growth affects NCDs’ epidemiology. Following a production function approach, we develop a basic technique to break up the impact of economic growth on NCDs into three fundamental components: (1) a resource effect; (2) a behaviour effect; and (3) a knowledge effect. We demonstrate that each of these effects can be measured as the product of two elasticities, the output and income elasticity of the three leading factors influencing the frequency of NCDs in any population: health care, health-related behaviours and lifestyle, and medical knowledge. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1045215 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045215 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045215 Template-Type: ReDIF-Article 1.0 Author-Name: Jurgen A. Doornik Author-X-Name-First: Jurgen A. Author-X-Name-Last: Doornik Author-Name: David F. Hendry Author-X-Name-First: David F. Author-X-Name-Last: Hendry Author-Name: Steve Cook Author-X-Name-First: Steve Author-X-Name-Last: Cook Title: Statistical model selection with “Big Data” Abstract: Big Data offer potential benefits for statistical modelling, but confront problems including an excess of false positives, mistaking correlations for causes, ignoring sampling biases and selecting by inappropriate methods. We consider the many important requirements when searching for a data-based relationship using Big Data, and the possible role of Autometrics in that context. Paramount considerations include embedding relationships in general initial models, possibly restricting the number of variables to be selected over by non-statistical criteria (the formulation problem), using good quality data on all variables, analyzed with tight significance levels by a powerful selection procedure, retaining available theory insights (the selection problem) while testing for relationships being well specified and invariant to shifts in explanatory variables (the evaluation problem), using a viable approach that resolves the computational problem of immense numbers of possible models. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1045216 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045216 Template-Type: ReDIF-Article 1.0 Author-Name: Eduardo Pol Author-X-Name-First: Eduardo Author-X-Name-Last: Pol Author-Name: Steve Cook Author-X-Name-First: Steve Author-X-Name-Last: Cook Title: A theorem on the methodology of positive economics Abstract: It has long been recognized that the Milton Friedman’s 1953 essay on economic methodology (or F53, for short) displays open-ended unclarities. For example, the notion of “unrealistic assumption” plays a role of absolutely fundamental importance in his methodological framework, but the term itself was never unambiguously defined in any of the Friedman’s contributions to the economics discipline. As a result, F53 is appealing and liberating because the choice of premises in economic theorizing is not subject to any constraints concerning the degree of realisticness (or unrealisticness) of the assumptions. The question: “Does the methodology of positive economics prevent the overlapping between economics and science fiction?” comes very naturally, indeed. In this paper, we show the following theorem: the Friedman’s methodology of positive economics does not exclude science fiction. This theorem is a positive statement, and consequently, it does not involve value judgements. However, it throws a wrench on the formulation of economic policy based on surreal models. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1054142 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1054142 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1054142 Template-Type: ReDIF-Article 1.0 Author-Name: Gábor Regős Author-X-Name-First: Gábor Author-X-Name-Last: Regős Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Modeling the exchange rate using price levels and country risk Abstract: This paper builds two factor discrete time models in order to investigate the effect of sovereign risk on the nominal exchange rates in a Markov switching framework. The empirical section of the paper uses seven currencies from Chile, the Czech Republic, Hungary, Iceland, Japan, Korea, and Mexico. To measure the sovereign risk, we use the credit rating agencies’ ratings classes as proxy variable. In the empirical part, four different versions of the model are calibrated and their in-sample and out-of-sample data will be analyzed leading to the conclusion that none of the four versions dominates the others. As an additional result, it is revealed that risk has significant effect on the nominal exchange rates. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1056928 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1056928 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1056928 Template-Type: ReDIF-Article 1.0 Author-Name: Prity Sinha Author-X-Name-First: Prity Author-X-Name-Last: Sinha Author-Name: Brinda Viswanathan Author-X-Name-First: Brinda Author-X-Name-Last: Viswanathan Author-Name: Badri Narayanan Author-X-Name-First: Badri Author-X-Name-Last: Narayanan Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial market and growth: Evidence from post-reforms India Abstract: A significant boom occurred in the Indian financial market and growth in the post-liberalization era. This motivates us to analyze the impact of stock market and credit market (two components of financial market) for the growth of financial market. This paper attempts to show the linkage between stock and credit markets and their impact on the Indian economy taking the period after post-liberalization. The period of analysis is from 1994 to 2010; we identify the three variables as stationary and find a relationship between the financial market and gross domestic product (GDP) and a long-run effect of lagged differences in credit market on GDP. It has been inferred that stock market development has larger and more significant long-run mutual effects on economic growth than credit market development in India. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1057417 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1057417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1057417 Template-Type: ReDIF-Article 1.0 Author-Name: Amari Mouna Author-X-Name-First: Amari Author-X-Name-Last: Mouna Author-Name: Jarboui Anis Author-X-Name-First: Jarboui Author-X-Name-Last: Anis Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The factors forming investor’s failure: Is financial literacy a matter? Viewing test by cognitive mapping technique Abstract: The objective of this paper is to apply cognitive map-related techniques to extract causal knowledge from a specific problem domain. This paper proposes to draw an average cognitive map in order to identify the failure factors of the Tunisian small investors. Our paper extends traditional and behavioral finance and previous research by proposing a new approach to building an average cognitive map for the explanation of small investors’ failure in the stock market. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1057923 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1057923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1057923 Template-Type: ReDIF-Article 1.0 Author-Name: Bowon Kim Author-X-Name-First: Bowon Author-X-Name-Last: Kim Author-Name: Jeong Eun Sim Author-X-Name-First: Jeong Eun Author-X-Name-Last: Sim Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Impacts of government and market on firm’s efforts to reduce pollution Abstract: We examine how the government and the market affect firm’s pollution abatement efforts, i.e. firm’s efforts to reduce its pollution emission. The way for the government to control firm’s pollution is to impose penalty, whereas the consumers (the market) make their purchasing decision by taking into account the pollution, i.e. the demand is affected by the stock of pollution. In effect, we consider two forces, government penalty and consumer’s sensitivity to pollution, as primary factors to control firm’s pollution and analyze their interaction in relation to the firm’s pollution reduction efforts. The analysis suggests as follows. The government penalty and the consumer’s awareness are substitutes either (1) when the market size is relatively large or (2) when the market is relatively small, but the government penalty is relatively heavy. On the contrary, the two factors are complements when the market size is relatively small and the government penalty is relatively light. We discuss managerial and economic implications of the analysis results. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1062634 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1062634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1062634 Template-Type: ReDIF-Article 1.0 Author-Name: Fernando Gómez-Bezares Author-X-Name-First: Fernando Author-X-Name-Last: Gómez-Bezares Author-Name: Fernando R. Gómez-Bezares Author-X-Name-First: Fernando R. Author-X-Name-Last: Gómez-Bezares Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Don’t use quotients to calculate performance Abstract: Quotients, ratios, are among the most applied tools for measuring performance of mutual funds and investment portfolios, the Jensen index being an exception to the general rule. In this paper, we show some problems that arise when quotients are applied, closely related to their statistical meaning, which is too often forgotten. We also raise some advantages of the use of linear penalization, introducing a little known methodology for performance measurement. With this purpose, this paper’s approach is comprehensive: we conceptually analyze performance indexes’ geometric and statistical meaning, complementing this with a numerical example and empirical testing that confirm our view. This paper’s main contribution is to demonstrate and empirically test how the use of quotients to measure performance may create problems due to their denominators, which may be solved by applying linear penalization. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1065584 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1065584 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1065584 Template-Type: ReDIF-Article 1.0 Author-Name: Anupam Dutta Author-X-Name-First: Anupam Author-X-Name-Last: Dutta Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Improved calendar time approach for measuring long-run anomalies Abstract: Although a large number of recent studies employ the buy-and-hold abnormal return (BHAR) methodology and the calendar time portfolio approach to investigate the long-run anomalies, each of the methods is a subject to criticisms. In this paper, we show that a recently introduced calendar time methodology, known as Standardized Calendar Time Approach (SCTA),, controls well for heteroscedasticity problem which occurs in calendar time methodology due to varying portfolio compositions. In addition, we document that SCTA has higher power than the BHAR methodology and the Fama–French three-factor model while detecting the long-run abnormal stock returns. Moreover, when investigating the long-term performance of Canadian initial public offerings, we report that the market period (i.e. the hot and cold period markets) does not have any significant impact on calendar time abnormal returns based on SCTA. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1065948 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1065948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1065948 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Adusei Author-X-Name-First: Michael Author-X-Name-Last: Adusei Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Bank profitability: Insights from the rural banking industry in Ghana Abstract: This paper analyzes the profitability of 112 rural banks (special unit banks created to promote rural financial intermediation in Ghana). The results generally show that bank size, funding risk, diversification, liquidity risk, and bank stability are significant predictors of rural bank profitability. Whereas an improvement in the funding risk of a rural bank in a particular period portends a drop in its profitability in the future, an improvement in the size, diversification, liquidity risk, and stability of a rural bank signifies an improvement in the future profitability of the bank. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1078270 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1078270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1078270 Template-Type: ReDIF-Article 1.0 Author-Name: Nelson Mango Author-X-Name-First: Nelson Author-X-Name-Last: Mango Author-Name: Lawrence Mapemba Author-X-Name-First: Lawrence Author-X-Name-Last: Mapemba Author-Name: Hardwick Tchale Author-X-Name-First: Hardwick Author-X-Name-Last: Tchale Author-Name: Clifton Makate Author-X-Name-First: Clifton Author-X-Name-Last: Makate Author-Name: Nothando Dunjana Author-X-Name-First: Nothando Author-X-Name-Last: Dunjana Author-Name: Mark Lundy Author-X-Name-First: Mark Author-X-Name-Last: Lundy Title: Comparative analysis of tomato value chain competitiveness in selected areas of Malawi and Mozambique Abstract: This paper discusses tomato value chain performance in Malawi and Mozambique using data collected from a market study commissioned by the International Centre for Tropical Agriculture as part of a regional research on conservation agriculture in maize-based farming systems in Sub-Saharan Africa. The results show that Malawi has a slightly higher competitive advantage in the production of tomato compared to Mozambique. Malawi’s relative competitiveness in tomato is mainly due to slightly higher productivity and the cost advantage in labor (low wages) and irrigation costs. The paper proposes policy implications aimed at raising the productivity and trade competitiveness of tomato, as this will ensure the overall productivity of the maize-based smallholder farming systems in the two countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1088429 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1088429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1088429 Template-Type: ReDIF-Article 1.0 Author-Name: Maali Kachouri Ben Saad Author-X-Name-First: Maali Author-X-Name-Last: Kachouri Ben Saad Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: Does corporate governance affect financial communication transparency? Empirical evidence in the Tunisian context Abstract: The present study is focused on investigating the relationship between intentional governance mechanisms (Directors’ boards, Ownership structure and audit quality) and financial communication transparency. For this purpose, a model is used and applied to Tunisian firms’ sample observed over the period 2006–2013. The achieved results reveal that intentional governance mechanisms are positively related to a higher transparency level noticeable in financial communication (voluntary disclosure and quality information). In addition, empirical tests indicate that financial communication transparency is highly dependent on the board size, ownership concentration, as well as on audit quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1090944 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1090944 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1090944 Template-Type: ReDIF-Article 1.0 Author-Name: Bryan McIntosh Author-X-Name-First: Bryan Author-X-Name-Last: McIntosh Author-Name: Fabrizio Ferretti Author-X-Name-First: Fabrizio Author-X-Name-Last: Ferretti Title: Pandora box: The eurozone and the euro crisis Abstract: The global economy has experienced considerable turbulence since 2007. The financial crisis has been viewed as the trigger for a prolonged period of economic decline. This decline remains an issue for all member states of the European Union, the eurozone and beyond. We argue genesis of this crisis lies in the integration negotiations of 1991, ratified in 1992. These produced a flawed economic model within the eurozone. Given the seeds of decay were planted at origin; we argue the solution can be found through a reconstructed eurozone via looser integration, where countries less equipped to deal with the realities of closer integration will be economically independent. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1092860 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1092860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1092860 Template-Type: ReDIF-Article 1.0 Author-Name: Adam Hoffer Author-X-Name-First: Adam Author-X-Name-Last: Hoffer Title: A classroom game to teach the principles of money and banking Abstract: This paper describes how to implement and run a game for teaching the principles of money and banking to an undergraduate economics class. The game primarily deals with the market for loanable funds, but numerous extensions are provided to cover topics such as monetary policy, the tools of the Federal Reserve, shifts in the equilibrium of the market for loanable funds, and the quantity theory of money. The experiment can be used in principles, intermediate macroeconomics, or money and banking courses. The experiment takes approximately 45 minutes to run, depending on class size, and requires no computers. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1095448 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1095448 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1095448 Template-Type: ReDIF-Article 1.0 Author-Name: Nikolaos Antonakakis Author-X-Name-First: Nikolaos Author-X-Name-Last: Antonakakis Author-Name: Gabriele Tondl Author-X-Name-First: Gabriele Author-X-Name-Last: Tondl Title: Robust determinants of OECD FDI in developing countries: Insights from Bayesian model averaging Abstract: In this paper, we examine the determinants of outward FDI from four major OECD investors, namely, the US, Germany, France, and the Netherlands, to 129 developing countries classified under five regions over the period 1995–2008. Our goal is to distinguish whether the motivation for FDI differs among these investors in developing countries. Rather than relying on specific theories of FDI determinants, we examine them all simultaneously by employing Bayesian model averaging (BMA). This approach permits us to select the most appropriate model (or combination of models) that governs FDI allocation and to distinguish robust FDI determinants. We find that no single theory governs the decision of OECD FDI in developing countries but a combination of theories. In particular, OECD investors search for destinations with whom they have established intensive trade relations and that offer a qualified labor force. Low wages and attractive tax rates are robust investment criteria too, and a considerable share of FDI is still resource-driven. Overall, investors show fairly similar strategies in the five developing regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1095851 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1095851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1095851 Template-Type: ReDIF-Article 1.0 Author-Name: Hairong Mu Author-X-Name-First: Hairong Author-X-Name-Last: Mu Author-Name: Dimitrios Paparas Author-X-Name-First: Dimitrios Author-X-Name-Last: Paparas Title: Incorporating the advantages of clickers and mobile devices to teach Economics to non-economists Abstract: In the twenty-first century, teaching practitioners in higher education (HE) have found themselves confronted with more challenges to help students engage in learning. Particularly, one of the main problems with the traditional lecture format to teach non-economists economics is that students tend to lack interest in the subject and therefore have a low level of engagement. Student response systems (i.e. “clickers”) have been used in classes for about 20 years and become more popular on many college campuses. Many studies reveal that clicker technology offers great promise in increasing students’ participation and engagement in lectures. Meanwhile, thanks to fast development of mobile technology, personal mobile devices can be integrated with clicker systems into teaching and learning with improved features. The programme we used and found as a very useful interactive teaching tool for learning is called Kahoot!. This paper offers a brief guidance on how to use Kahoot! to encourage active learning and engage non-economics majors in learning economics. Meanwhile, the existing relevant literature with regard to the use of clickers in HE is highlighted. In addition, the effectiveness of using Kahoot! in teaching economics to non-economists is evaluated by a student survey. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1099802 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1099802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1099802 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Adusei Author-X-Name-First: Michael Author-X-Name-Last: Adusei Title: The impact of bank size and funding risk on bank stability Abstract: Does bank size significantly explain the variations in bank stability? Does bank funding risk significantly impact bank stability? This paper addresses these two questions with data from the rural banking industry in Ghana. Controlling for credit risk, liquidity risk, diversification in the business model, profitability, inflation, financial structure and gross domestic product, the results suggest that an increase in the size of a rural bank results in an increase in its stability. The results also show that funding risk positively impacts bank stability. The positive relationship between size and bank stability has important repercussions for the current debate on whether or not to constrain bank size to insulate the financial system from future crisis. The positive relationship between funding risk and bank stability also has important implications for the current debate on funding of retail banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1111489 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1111489 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1111489 Template-Type: ReDIF-Article 1.0 Author-Name: Abhijit Sharma Author-X-Name-First: Abhijit Author-X-Name-Last: Sharma Title: Use of Bloomberg Professional in support of finance and economics teaching Abstract: This paper evaluates the use of specialist software within university trading rooms in order to enable students to experience a simulated environment which allows them to gain an appreciation of “real life” decision-making within the finance and banking industry and become familiar with real-time data. An important additional aim of trading room-based instruction is to encourage responsible financial decision-making. Our analysis focuses on business schools within the United Kingdom and provides a detailed illustration of use of such resources, in particular, as deployed at the Bradford University School of Management. We provide a critical overview of the main challenges involved in making effective use of a trading room. We also offer recommendations to other academics to enable productive and appropriate use of resources such as Bloomberg Professional in order to enhance the student learning experience and to facilitate the development of valuable skills. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1115618 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115618 Template-Type: ReDIF-Article 1.0 Author-Name: Jonathan Guest Author-X-Name-First: Jonathan Author-X-Name-Last: Guest Title: Reflections on ten years of using economics games and experiments in teaching Abstract: In this paper, the author reflects on his 10 years’ experience of using games and experiments and in the process develops a type of practitioner’s guide. The existing quantitative and qualitative evidence on the impact of using games on student learning is reviewed. On balance, a positive effect, on measures of attainment, is found in the literature. Given these findings, it is surprising that there is also evidence in the UK and US that they are not widely used. Some factors are discussed that might deter tutors from employing them. Unsurprisingly, one of these is the additional cost, which might make the use of online games seem more attractive, given the way results can be automatically recorded. However, some relatively low-cost paper-based games were found to have significant advantages. In particular, they appear to facilitate social interaction which has a positive impact on student motivation and learning. One popular and effective paper-based game is discussed in some detail. A number of recommendations are provided on how to implement the game in order to maximise the learning benefits it can provide. Some ideas on how to maximise the learning benefits from using games more generally are also considered. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1115619 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115619 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115619 Template-Type: ReDIF-Article 1.0 Author-Name: Robert O’Neill Author-X-Name-First: Robert Author-X-Name-Last: O’Neill Title: Teaching Index Numbers to economists Abstract: Economic statistics are frequently reported in the form of index numbers. This article considers how the field of Index Numbers should be approached in the teaching of a general economic degree. While the topic finds a natural home in statistics modules, it is emphasised that the area can also be referred to in the teaching of other areas of economics. It is also emphasised that the differences between Index Numbers theory and the practice of compiling economic statistics such as inflation can help students gain a better understanding of applied economic statistics. Methods for assessing learning in the area are also considered and available material to support teaching is also summarised. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1115625 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115625 Template-Type: ReDIF-Article 1.0 Author-Name: Nelson Mango Author-X-Name-First: Nelson Author-X-Name-Last: Mango Author-Name: Clifton Makate Author-X-Name-First: Clifton Author-X-Name-Last: Makate Author-Name: Benjamin Hanyani-Mlambo Author-X-Name-First: Benjamin Author-X-Name-Last: Hanyani-Mlambo Author-Name: Shephard Siziba Author-X-Name-First: Shephard Author-X-Name-Last: Siziba Author-Name: Mark Lundy Author-X-Name-First: Mark Author-X-Name-Last: Lundy Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: A stochastic frontier analysis of technical efficiency in smallholder maize production in Zimbabwe: The post-fast-track land reform outlook Abstract: This article analyses the technical efficiency of maize production in Zimbabwe’s smallholder farming communities following the fast-track land reform of the year 2000 with a view of highlighting key entry points for policy. Using a randomly selected sample of 522 smallholder maize producers, a stochastic frontier production model was applied, using a linearised Cobb–Douglas production function to determine the production elasticity coefficients of inputs, technical efficiency and the determinants of efficiency. The study finds that maize output responds positively to increases in inorganic fertilisers, seed quantity, the use of labour and the area planted. The technical efficiency analysis suggests that about 90% of farmers in the sample are between 60 and 75% efficient, with an average efficiency in the sample of 65%. The significant determinants of technical efficiency were the gender of the household head, household size, frequency of extension visits, farm size and the farming region. The results imply that the average efficiency of maize production could be improved by 35% through better use of existing resources and technology. The results highlight the need for government and private sector assistance in improving efficiency by promoting access to productive resources and ensuring better and more reliable agricultural extension services. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1117189 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1117189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1117189 Template-Type: ReDIF-Article 1.0 Author-Name: Paul Middleditch Author-X-Name-First: Paul Author-X-Name-Last: Middleditch Author-Name: Will Moindrot Author-X-Name-First: Will Author-X-Name-Last: Moindrot Title: Using classroom response systems for creative interaction and engagement with students Abstract: Recent changes to the landscape of higher education and the student environment generally has brought renewed focus on the need for pedagogical innovation. The importance of student satisfaction and the accompanying rising expectations of the technologically savvy generation of students have brought significant challenges to an academic community already busied with the pedagogically sound delivery of undergraduate taught courses. This new environment has inevitably led to a demand for tools that can assist convenors to meet those challenges without overburdening already tight workloads. This paper presents evidence on the innovative use of one such tool in the form of an over web classroom response system, introduced with the aim of meeting the challenges of the new era in higher education. We suggest that the use of this type of technology can increase student satisfaction and enjoyment as a driver for creative engagement. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1119368 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1119368 Template-Type: ReDIF-Article 1.0 Author-Name: Anupam Dutta Author-X-Name-First: Anupam Author-X-Name-Last: Dutta Title: Have the anomalies following share buybacks disappeared? Abstract: Although several empirical studies report significant positive long-run abnormal stock returns following share buybacks, a recent event study paper claims that such anomalies have disappeared in the most recent decade and this disappearance of abnormal performance is not sensitive to the methods used. The present paper makes an attempt to investigate this claim using 63 Indian share buybacks which took place between July 2008 and June 2012. We consider the application of several event study methods and our findings are a bit mixed. We conclude that the long-run anomalies following stock repurchases in India are still sensitive to the employed methodologies. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1119461 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1119461 Template-Type: ReDIF-Article 1.0 Author-Name: Guglielmo Volpe Author-X-Name-First: Guglielmo Author-X-Name-Last: Volpe Title: Case teaching in economics: History, practice and evidence Abstract: Case studies are, normally, real-world problems that might include relevant or irrelevant data, correct or incorrect analysis and that require some sort of interpretation or solution. The use of case studies has been a common feature of undergraduate studies in business and law for a long time. In recent years, the so-called “case method” has become quite popular in economics education as well since it is believed to help the development to three key objectives in economics education: the mastering of economics principles, the application of principles to reality and the systematic analysis of policy issues. Coupled with student-centred approaches to learning, the case method can prove a very effective method in helping students to achieve a deeper understanding of both economic theory and policy analysis. The article provides an account of how case studies can be effectively used in economics teaching and reviews the empirical evidence on the effectiveness of the approach. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1120977 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1120977 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1120977 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Danquah Author-X-Name-First: Michael Author-X-Name-Last: Danquah Author-Name: Peter Quartey Author-X-Name-First: Peter Author-X-Name-Last: Quartey Title: Examining the determinants of efficiency using a latent class stochastic frontier model Abstract: In this study, we combine the latent class stochastic frontier model with the complex time decay model to form a single-stage approach that accounts for unobserved technological differences to estimate efficiency and the determinants of efficiency. In this way, we contribute to the literature by estimating “pure” efficiency and determinants of productive units based on the class structure. An application of this proposed model is presented using data on the Ghanaian banking system. Our results show that inefficiency effects on the productive unit are specific to the class structure of the productive unit and therefore assuming a common technology for all productive units as is in the popular Battese and Coelli model used extensively in the literature may be misleading. The study therefore provides useful empirical evidence on the importance of accounting for unobserved technological differences across productive units. A policy based on the identified classes of the productive unit enables a more accurate and effectual measures to address efficiency challenges within the banking industry, thereby promoting financial sector development and economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2015.1124741 File-URL: http://hdl.handle.net/10.1080/23322039.2015.1124741 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1124741 Template-Type: ReDIF-Article 1.0 Author-Name: David Gray Author-X-Name-First: David Author-X-Name-Last: Gray Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Are prices of New dwellings different? A spectral analysis of UK property vintages Abstract: The work makes two contributions to the literature on dynamic house prices. First, a house price ripple in cycles from Modern to Older dwellings is revealed and, second, as New housing is shown to have lower volatility than the other two. Using spectral analysis, it is argued that there is a 7½-year repeat buyer-second-hand cycle and a five year, first time buyer-New housing cycle, common to three house price vintages. These cycles reinforce each other every 15 years, which corresponds with a Minsky super-cycle in housing finance. The equity of the owner–occupier is fortified by higher house prices whereas New builds extract embedded equity from the market. Through programmes like Help-to-Buy 1, Government should support builders and facilitate market access to FTBs. However, to address the greater price instability that should follow, Government should impose a capital gains tax on the house seller. Journal: Cogent Economics & Finance Issue: 1 Volume: 3 Year: 2015 Month: 12 X-DOI: 10.1080/23322039.2014.993860 File-URL: http://hdl.handle.net/10.1080/23322039.2014.993860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:993860 Template-Type: ReDIF-Article 1.0 Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Author-Name: K.R. Naveen Kumar Author-X-Name-First: K.R. Author-X-Name-Last: Naveen Kumar Author-Name: T. Mallikarjunappa Author-X-Name-First: T. Author-X-Name-Last: Mallikarjunappa Title: Pricing and performance of IPOs: Evidence from Indian stock market Abstract: This study examines listing day performance of IPOs, book-built and fixed-price IPOs, post-listing aftermarket performance of IPOs, book-built and fixed-price IPOs in the Indian stock market. We examine pricing as well as long run performance of 464 (365 book-built IPOs and 99 fixed-price IPOs) Indian IPOs that went public between 2001 and 2011. The study covers 15 years from the financial year 2001 to 2015. Analysis of the results reveals that compared to fixed-price IPOs, book-built IPOs are underpriced by lesser magnitude. Moreover, book-built IPOs are associated with negative cumulative average abnormal returns (CAARs) up to five years and beyond, the negative CAARs associated with fixed-price IPOs turn positive after one and one-half year and continue to be positive thereafter. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2017.1420350 File-URL: http://hdl.handle.net/10.1080/23322039.2017.1420350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1420350 Template-Type: ReDIF-Article 1.0 Author-Name: B. Rajesh Kumar Author-X-Name-First: B. Author-X-Name-Last: Rajesh Kumar Author-Name: K.S. Sujit Author-X-Name-First: K.S. Author-X-Name-Last: Sujit Title: Determinants of dividends among Indian firms—An empirical study Abstract: The study aims to understand the determinants of dividend trends of Indian firms. The study was based on a sample of 31,234 firms representing 15 different industry sectors. Construction materials, machinery and transportation equipment sectors were the most dividend intensive sectors in India. Partial least square structural equation modeling methodology (PLS SEM) was employed to examine the determinants of the dividend intensity of Indian firms. Different schemes of path models were tested and the results show that the higher the financial leverage, the lower is the propensity to pay dividends. Firms with high intangibles are expected to have higher agency costs. High growth firms have low dividend payout policies. Dividend intensity of firms is directly related to the size of firm. Higher the R&D intensity of the firms, greater is the dividend intensity of the firms. Firms with higher agency costs tend to have higher dividend intensity. Higher agency costs lead to lower cash flows for Indian firms. Firms with higher liquidity tend to pay more dividends. Profitable firms tend to have higher dividend intensity. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1423895 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1423895 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1423895 Template-Type: ReDIF-Article 1.0 Author-Name: Ludan Theron Author-X-Name-First: Ludan Author-X-Name-Last: Theron Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Title: The maximum diversification investment strategy: A portfolio performance comparison Abstract: The efficacy of four different portfolio allocation strategies is evaluated according to their absolute returns during different economic conditions over a period of 10 years. A comparison is drawn between the Most Diversified portfolio (MD) and three alternatives; a Minimum Variance portfolio, an Equally-Weighted portfolio and a Tangent (or Maximum Sharpe ratio) portfolio. The aim is to assess portfolio performance using cumulative returns, the Sharpe ratio and the daily volatilities of each portfolio. The four asset allocation methods are governed by multiple constraints. Although previous work has shown that MD portfolios exhibit greater diversification and a higher Sharpe ratio than other investment strategies, this was not found using developed market index data. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1427533 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1427533 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1427533 Template-Type: ReDIF-Article 1.0 Author-Name: Truong Hong Trinh Author-X-Name-First: Truong Hong Author-X-Name-Last: Trinh Title: Towards a paradigm on the value Abstract: This paper explores the value concept to understand the notions of value and price that form the base of value theories. Since value is more appreciate than utility in explaining value creation and value distribution in the today’s society and economy, the theory of value is amended to conduct value creation and market behavior in the economy. From the theoretical base, the value added approach is used for GDP measurement that unifies with both the expenditure approach and the income approach. The study result indicates that there is a value balance between the firm and the customer, and the relationship between value balance and market equilibrium. The paper contributes a new paradigm on the value that provides a clearer understanding on value creation and market behavior in the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1429094 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1429094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1429094 Template-Type: ReDIF-Article 1.0 Author-Name: K.K. Moseki Author-X-Name-First: K.K. Author-X-Name-Last: Moseki Author-Name: K.S. M. Rao Author-X-Name-First: K.S. M. Author-X-Name-Last: Rao Title: Empirical measures of symmetry of market sentiments Abstract: The analysis of asset return series of equity prices and stock indices is a well-researched problem tackled by economists, business and financial analysts in the last few decades. It has captured the fancy of financial economists, global and local portfolio investment consultants, foreign investment institutions and the trading man in the street. In this paper a strong case is made to follow a new approach for any investor to foray into an unknown stock market. This approach is the market sentiment approach. We introduce the concept of market sentiments, their definitions and different constructs one may propose vis-a-vis asset return series. We formulate several concepts of symmetry of market sentiments and propose empirical measures to validate such types of symmetric market sentiments. The efficacies of these measures are evaluated using extensive simulation studies and the efficient measures are identified. As an application, we explore the nature of absolute market sentiments that prevailed in weekly mean asset returns of two domestic companies registered in Botswana Stock Exchange during the trading period: 4 January 2016 to 30 December 2016. Our analysis indicates that both companies are characterised by the presence of complete symmetric absolute market sentiments. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1430113 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1430113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1430113 Template-Type: ReDIF-Article 1.0 Author-Name: Li Zhang Author-X-Name-First: Li Author-X-Name-Last: Zhang Author-Name: Jiafure Wang Author-X-Name-First: Jiafure Author-X-Name-Last: Wang Title: Research on the relationship between relational capital and relational rent Abstract: Background: With the development of world economic globalization and the advent of the sharing economy era, the competition is not existed between individual enterprises any more, while upgraded to be the competition and cooperation among partners. It is difficult for enterprises to obtain excessive profits only by internal resources and their own management. Therefore, they need to break through the limitation of internal resources and abilities to create new forms of excessive profits with their partners. Purpose: The purpose of this research, under theoretical frameworks of social capital and relational view, is to study the relationship between relational capital, which is an intangible resource, and relational rent as to find more theoretical basis for the cooperative enterprises. Research design, data, and methodology: Based on the analysis of the relevant literature, this research comes up with the idea that the formation of relational capital (including the approaches of trust and commitment) is via capital rent (involving Relational-specific Assets、Knowledge sharing Routines、Complementary Resources、Effective Governance) and then further puts forward the hypothesis and conceptual model of “relational capital” affecting “relational rent”. The current study selected Chinese manufacture industry as a sample frame and collected data from 304 respondents. Data were analyzed using structural equation model to test the hypotheses. Results: Through empirical study, it was found that trust and commitment have significant effects on knowledge sharing, complementary resources and co-governance, and there is no remarkable effect on the relationship-specific investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1431091 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1431091 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1431091 Template-Type: ReDIF-Article 1.0 Author-Name: Ling Jong Author-X-Name-First: Ling Author-X-Name-Last: Jong Author-Name: Poh-Ling Ho Author-X-Name-First: Poh-Ling Author-X-Name-Last: Ho Title: Inside the family firms: The impact of family and institutional ownership on executive remuneration Abstract: This study empirically examines the impact of ownership structure on executive remuneration of listed family firms in Malaysia. Fixed effects model as the panel analysis of 279-listed family firms from 2010 to 2014 shows that institutional investors could not represent the minority shareholders’ interest in curbing the expropriation via executive remuneration by the controlling family shareholders. When the firm CEOs are non-family directors, both domestic and foreign institutional investors could exert a significant negative impact on executive remuneration. Thus, this study provides a theoretical contribution by affirming that the Type-II agency conflict between controlling shareholders and minority shareholders in family firms is ameliorated when the firm CEOs have no family relationship with the controlling shareholders. In addition, this study also unveils that domestic and foreign institutional investors have a different impact on the executive remuneration, where the governance role of the former prevails over the latter. The findings of this study would be useful for the policy-makers and regulators such as Securities Commission Malaysia and Minority Shareholder Watchdog Group to assess the expropriation issue and corporate governance in family firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1432095 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1432095 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1432095 Template-Type: ReDIF-Article 1.0 Author-Name: Amith Vikram Megaravalli Author-X-Name-First: Amith Vikram Author-X-Name-Last: Megaravalli Author-Name: Gabriele Sampagnaro Author-X-Name-First: Gabriele Author-X-Name-Last: Sampagnaro Title: Macroeconomic indicators and their impact on stock markets in ASIAN 3: A pooled mean group approach Abstract: The objective of this paper is to examine the long-run and the short-run relationship between India, China and Japanese stock markets and key macroeconomic variables such as exchange rates and inflation (proxied by consumer price index) of ASIAN 3 economies (India, China and Japan). Monthly time series data spanning the period from 2008 January to November 2016 has been used. The unit root test, the cointegration test, Granger causality test and pooled mean group estimator have been applied to derive the long-run and short-run statistical dynamics. The findings of pooled estimated results of ASIAN 3 countries show that exchange rate has a positive and significant long-run effect on stock markets while the inflation has a negative and insignificant long-run effect. In the short run, there is no statistically significant relationship between macroeconomic variables and stock markets. This study emphasises on the impact of macroeconomic variables on the stock market performance of a developing economy (India and China) and developed economy (Japan). Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1432450 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1432450 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1432450 Template-Type: ReDIF-Article 1.0 Author-Name: Senior Editors Author-X-Name-First: Senior Author-X-Name-Last: Editors Title: Acknowledgement of reviewers Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1433606 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1433606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1433606 Template-Type: ReDIF-Article 1.0 Author-Name: Edmund H. Mantell Author-X-Name-First: Edmund H. Author-X-Name-Last: Mantell Title: Searching for a partner on the internet and analogous decision-making problems Abstract: Information technologies supporting online dating create an enormous expansion of the population of potential partners. However, such a large population offers too much information, too many choices, too many potential (and potentially unsatisfying) partners. The importance of conducting a search efficiently is imperative. This paper applies the economic theory of decision-making under uncertainty to analyze the optimizing behavior of rational adults who use internet dating sites. The analysis applies expected utility to a randomly distributed population of candidates. The main result derives conditions that must be satisfied by a searcher who allocates his time efficiently. The result is based, in part, on an assumption that the behavior of the searcher is guided by his recognition of adverse selection and “cheap talk.” The analytical results can be applied to search-and-action scenarios totally unrelated to a search for a romantic partner. These include such diverse scenarios as the deployment of military drones searching for a target or a search for a home or a search for an employment opportunity. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1435442 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1435442 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1435442 Template-Type: ReDIF-Article 1.0 Author-Name: Deepak Kumar Behera Author-X-Name-First: Deepak Kumar Author-X-Name-Last: Behera Author-Name: Umakant Dash Author-X-Name-First: Umakant Author-X-Name-Last: Dash Title: The impact of macroeconomic policies on the growth of public health expenditure: An empirical assessment from the Indian states Abstract: The impact assessment of macroeconomic policies on public health expenditure is very relevant in Indian economy because of tax reform, fiscal consolidation, and expenditure policy reform. These have been undertaken after economic liberalization in order to sustain a high economic growth. Despite the several fiscal policy initiatives, there is a persistent slowing down of growth in public health expenditure and a huge disparity in the allocation of budget toward health care among the Indian states. Using the period 1990–2014, the study examines the dynamic relationships between public health expenditure and macroeconomic factors (economic growth, domestic revenue, domestic debt, fiscal balance, and central government transfer) of 15 major states of India. Our empirical result shows that state’s revenue (i.e. tax revenue and indirect tax) and central transfer (i.e. tax devolution) are the major public providers for financing the health care of Indian states. Other sources of revenue of the government, namely non-tax revenue and direct tax show no impact on public health expenditure in the short run, while it shows a positive impact in the long run. As a consequence, we find that economic growth and fiscal balance lead to a favorable impact on public health expenditure in the long run. The result suggests the improvement in revenue collection, increase in the tax base and the efficient utilization of central grants would generate fiscal space in the economy, and thereby the government can allocate more funds toward public health care. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1435443 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1435443 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1435443 Template-Type: ReDIF-Article 1.0 Author-Name: Souha El Khanji Author-X-Name-First: Souha Author-X-Name-Last: El Khanji Title: An empirical exploration of relationships between official development assistance (ODA) and advances in water and sanitation subsectors Abstract: This paper explores aid effectiveness by studying the effect of aid, aid volatility, and key development indicators, focusing on safe access to water and sanitation (W&S) in both urban and rural areas. Despite the importance of official development assistance (ODA) for these two subsectors, little global attention is given to its importance and its connectivity with different socio economic factors. In this study, we focus on the countries that receive aid for water and sanitation. We find that aid does have a discernible impact on access to W&S, particularly in rural areas, but that this impact is reduced by aid volatility, there is a clear evidence that ODA for water and sanitation lacks the appropriate orientation, and is not targeting most of the areas that are really in need. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1437661 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1437661 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1437661 Template-Type: ReDIF-Article 1.0 Author-Name: Rajibur Reza Author-X-Name-First: Rajibur Author-X-Name-Last: Reza Author-Name: Gurudeo Anand Tularam Author-X-Name-First: Gurudeo Anand Author-X-Name-Last: Tularam Author-Name: Bin Li Author-X-Name-First: Bin Author-X-Name-Last: Li Title: Returns and volatility of water investments Abstract: This study analyzes the stock returns and volatility of the global water industry in different (full, pre-GFC, GFC and post-GFC) periods. The study estimates ARMA (1, 1)-GARCH (1, 1) and EGARCH (1, 1) models on the World Water index (WOWAX), S-Network Global Water Index (S-Net), S&P Global Water Index (S&P), and MSCI ACWI Water Utilities Index (MSCI ACWI), the Asia, Europe, Latin America and US water markets, Pictet Global Water Fund (Pictet), and KBC Eco Water Fund (KBC Eco) for the period 2004–2014. In this study, the EGARCH (1, 1) model results suggest the existence of persistence of volatility from four water indices, four water markets and two water funds in different periods and asymmetric volatility (leverage) for Asia and US, S-Net and Pictet in full, pre-GFC and GFC periods and for WOWAX in GFC and post-GFC periods. The WOWAX is not highly correlated with water markets and water funds, which suggests that it may provide a possible opportunity for portfolio diversification in different periods. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1438724 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1438724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1438724 Template-Type: ReDIF-Article 1.0 Author-Name: Farkhanda Ilmas Author-X-Name-First: Farkhanda Author-X-Name-Last: Ilmas Author-Name: Samya Tahir Author-X-Name-First: Samya Author-X-Name-Last: Tahir Author-Name: Muhammad Asrar-ul-Haq Author-X-Name-First: Muhammad Author-X-Name-Last: Asrar-ul-Haq Title: Ownership structure and debt structure as determinants of discretionary accruals: An empirical study of Pakistan Abstract: Financial statements are the main source of financial reporting. The basic role of financial reporting is to effectively communicate financial information to outsiders in a timely and credible manner. Firstly this study used different models to evaluate the value of accruals and then presents most reliable results which have been concluded from modified Jones 1995. In order to examine the relationship, sample of nonfinancial listed companies of Karachi Stock Exchange from 2008 to 2014 would be used to run the regression. The results are consistent with said hypothesis, measures, and methodologies. The results demonstrate that discretionary variables decrease gradually with the percentage increases in the blockholders on its significant level. Further our results indicate that financial institutional and nonfinancial institutional ownership has positive but significant influence on discretionary accruals. Finding of analysis proves that short-term liabilities have a positive and meaningful impact on earnings management activities while long-term obligations have a negative and significant impact on discretionary accruals. Results reveal that in Pakistan, creditors of firms are interested in monitoring the activities in long-term debt, and this scenario restricts management less toward earnings management. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1439254 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1439254 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439254 Template-Type: ReDIF-Article 1.0 Author-Name: Gaurav Gupta Author-X-Name-First: Gaurav Author-X-Name-Last: Gupta Author-Name: Jitendra Mahakud Author-X-Name-First: Jitendra Author-X-Name-Last: Mahakud Author-Name: Byomakesh Debata Author-X-Name-First: Byomakesh Author-X-Name-Last: Debata Title: Impact of CEO’s characteristics on investment decisions of Indian listed firms: Does crisis make any difference? Abstract: Using a sample of listed Indian manufacturing companies, this study examines the role of chief executive officer’s (CEO’s) personal characteristics like age, tenure, education, and career experience in the determination of investment decisions of the firm. The dynamic panel data model estimation, more specifically the system generalized method of moments estimation results reveal a negative relation between CEO’s age and corporate investment. CEO’s financial education is positively associated with investment decisions. The investment cash flow sensitivity analysis posits that CEO’s age and financial education reduce the sensitivity of investment with respect to cash flow. The results are robust across different periods, defined on the basis of crises. In times of financial crisis, we document that firm’s liquidity and age, CEO’s career experience and tenure turn out to be significant determinants of corporate investment. This paper provides an out-of-sample evidence of the role of CEO’s personal characteristics on the determination of corporate investment, which is an unexplored issue from an emerging market perspective. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1439258 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1439258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439258 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa Maria Fernandez Author-X-Name-First: Rosa Maria Author-X-Name-Last: Fernandez Title: Interactions of regional and national environmental policies: The case of Spain Abstract: This paper uses a new approach to the concept of green budgeting within the context of green economy to analyse the different factors influencing the lack of consistency on environmental policies in Spain. It appears that structural issues have prevented Spain from becoming a real green economy, and thus from taking the right measures that could lead it into a sustainable growth path. This case study is presented as example of failure to integrate environmental issues in policy-making, with political factors being one of the main variables under analysis. A quantitative analysis on the approach to public environmental budget management during the period prior to the recent economic crisis is conducted at national and regional levels. Some of the findings are consistent with other European countries but some distinctive structural issues are also identified. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1442092 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442092 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Doran Author-X-Name-First: Justin Author-X-Name-Last: Doran Author-Name: Nóirín McCarthy Author-X-Name-First: Nóirín Author-X-Name-Last: McCarthy Author-Name: Marie O’Connor Author-X-Name-First: Marie Author-X-Name-Last: O’Connor Title: The role of entrepreneurship in stimulating economic growth in developed and developing countries Abstract: This paper analyses whether different measure of entrepreneurship can explain economic growth. It utilises 14 difference indicators of entrepreneurship to analyse the contribution of entrepreneurial activity, aspirations, and attitudes to Gross Domestic Product (GDP) per capita. It also examines whether the importance of entrepreneurship varies across high-income and middle/low-income countries. An unbalanced panel of 55 countries over the time period 2004–2011 is used. Fourteen different indicators of entrepreneurship are utilised and are condensed into three components using principle components analysis. Regression analysis is then used to assess whether these three different components of entrepreneurship drive economic growth. The results indicate that entrepreneurial attitudes are found to stimulate GDP per capita in high-income countries while entrepreneurial activity is found to have a negative effect in middle/low-income economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1442093 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442093 Template-Type: ReDIF-Article 1.0 Author-Name: Ping Xiang Author-X-Name-First: Ping Author-X-Name-Last: Xiang Author-Name: Lu Qu Author-X-Name-First: Lu Author-X-Name-Last: Qu Title: The influential factors for the performance of Chinese enterprises’ international takeovers Abstract: In recent years, Chinese enterprises’ overseas mergers and acquisitions have become increasingly active. The method of overseas mergers and acquisitions can be regarded as a low-cost and good-effect way for the growth of Chinese enterprises, except their own accumulations. However, compared with the firms in western countries, Chinese enterprises’ overseas mergers and acquisitions can be affected by three factors: the ownership of acquiring enterprise, the types of target industries and the previous experience. In addition, Chinese and foreign scholars do not have a consistent conclusion for the enterprises’ performance, which is after their overseas mergers and acquisitions. Therefore, the study of the influential factors for Chinese enterprises’ overseas acquisitions is useful to the practice. This paper firstly analyzes the theoretical background of influential factors for the performance of overseas mergers. Then, this paper tests the three hypotheses of the influential factors. At last, this paper puts forward some effective suggestions. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1442631 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442631 Template-Type: ReDIF-Article 1.0 Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Title: Exploration vs. acquisition of oil and gas reserves: Effect on stock returns Abstract: This paper examines how oil and gas companies’ reserves growth affects their share price returns. In particular we examine three issues affecting the relation between reserves changes and oil and gas firm returns. First, we examine if investors value reserves replacement as a result of exploration activities differently to reserves growth through acquisitions. In the second analysis, we test if reserves replacement of oil reserves impacts stock returns differently than changes in gas reserves do. Third, we examine the impact of the Shale gas revolution and the subsequent oil and gas price divergence on the association between returns and replacement of oil versus gas reserves. The results suggest that investors seem to be indifferent to reserves replacement strategy (exploration or acquisition). However, we find that changes in oil reserves impact oil and gas company returns differently than changes in gas reserves does. Moreover, we find that there has been a structural shift in the relation between returns and changes in gas reserves (but not changes in oil reserves) after 2008, coinciding with the Shale gas revolution and the break in the oil-gas price link. This latter result can be relevant for understanding the impact of the recent fall in oil prices on investor valuation of oil and gas reserves. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1443368 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443368 Template-Type: ReDIF-Article 1.0 Author-Name: M. Kannadhasan Author-X-Name-First: M. Author-X-Name-Last: Kannadhasan Author-Name: Bhanu Pratap Singh Thakur Author-X-Name-First: Bhanu Pratap Singh Author-X-Name-Last: Thakur Author-Name: C.P. Gupta Author-X-Name-First: C.P. Author-X-Name-Last: Gupta Author-Name: Parikshit Charan Author-X-Name-First: Parikshit Author-X-Name-Last: Charan Title: Testing capital structure theories using error correction models: Evidence from China, India, and South Africa Abstract: The objective of this study is to empirically examine the capital structure theories that can explain the capital structure choice made by the firms that are operating in China, India, and South Africa. The study tests the capital structure theories as a stand-alone basis as well as an integrated framework of nested models using advanced dynamic panel data methods with a data-set of 1,183 firms with 12,187 firm-year observations spanning the period 1999–2016. Findings suggest that the firms adjust toward target leverage very quickly and trade-off theory explains the firms’ capital structure choice better than pecking order theory in the stand-alone model as well as the model nesting these two theories. This study contributes to the empirical literature of capital structure in the following way. First, this study uses error correction framework as a general specification of the widely used partial adjustment model. Second, the study uses advanced panel data estimators to estimate partial adjustment model and error correction model. Finally, the different specifications are tested using a large data-set of firms in China, India, and South Africa that has not been done so far. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1443369 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443369 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443369 Template-Type: ReDIF-Article 1.0 Author-Name: Fang Wang Author-X-Name-First: Fang Author-X-Name-Last: Wang Author-Name: Xu Zheng Author-X-Name-First: Xu Author-X-Name-Last: Zheng Title: The comparison of the hedonic, repeat sales, and hybrid models: Evidence from the Chinese paintings market Abstract: With the objective of evaluating the accuracy of price index models, we adopt a series of techniques to compares the performances of the hedonic, repeat sales, and hybrid models based on the data from the Chinese most representative painter, Qi Baishi during the period from 2000 to 2016. When applying the mean squared error (MSE) technique, the repeat sales model outperforms alternative models. However, according to the correlations and width confidence intervals, the hybrid model provides the most reliable estimates of price indices. The study also shows that the repeat sales model obtains relatively a lower total return estimate as well as a higher volatility than other two models. Our findings have important implications in identifying the precision of index models and provide supplements to art investment studies.. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1443372 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443372 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443372 Template-Type: ReDIF-Article 1.0 Author-Name: Oyakhilome Wallace Ibhagui Author-X-Name-First: Oyakhilome Wallace Author-X-Name-Last: Ibhagui Title: External debt and current account adjustments: The role of trade openness Abstract: In this paper, we examine the various links among external debt, trade openness and current account in Sub-Saharan Africa, utilizing an approach that highlights current account from the perspective of saving and investment. We explore whether external debt aids the subsequent adjustment process of current account deficits in SSA. We also examine the role of openness in the adjustment process. Empirical analysis using large panel data samples of Sub-Saharan African countries between 1985 and 2013 shows that external debt mostly sets the tone for the subsequent adjustment of current account deficits in SSA. However, the current account deficits of countries with high openness expand significantly from increases in external debt. The results are robust to different time periods and econometric estimation techniques, the inclusion of other current account determinants as control variables and consideration of endogeneity. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1446247 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1446247 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1446247 Template-Type: ReDIF-Article 1.0 Author-Name: Takehisa Kumakawa Author-X-Name-First: Takehisa Author-X-Name-Last: Kumakawa Title: Cooperation in a common pool resource game: Strategic behavior and a sense of intimacy Abstract: This study experimentally investigates two possible reasons for cooperative investment decisions in common pool resource games with two players. One reason is strategic behavior: subjects, who are allowed to interact with their partners repeatedly, attempt to build a long-term relationship and elicit cooperation from their partners. Another reason is a sense of intimacy: as the pairings of subjects are fixed throughout the experiment, subjects develop a sense of intimacy with their partners and make decisions by considering their benefit. The results suggest that cooperative decisions can be explained almost solely by subjects’ strategic behaviors; however, the hypothesis that a sense of intimacy governed cooperative investment was not supported. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1446654 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1446654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1446654 Template-Type: ReDIF-Article 1.0 Author-Name: Jagadish Prasad Bist Author-X-Name-First: Jagadish Prasad Author-X-Name-Last: Bist Title: Financial development and economic growth: Evidence from a panel of 16 African and non-African low-income countries Abstract: This paper aims to investigate the long-run relationship between financial development and economic growth using panel unit root and panel cointegration analysis in 16 selected low-income countries for the period of 20 years from 1995 to 2014. The long-run relationship has been estimated using fully modified and dynamic OLS techniques. The results show that there exists a cross-sectional dependence across the countries. The Pedroni’s panel cointegration analysis provides clear support for the hypothesis that there exists a long-run cointegrating relationship between financial development and economic growth. The long-run panel estimates indicate that financial development has a positive and significant impact on economic growth. For the robustness of the results, this paper has also performed time-series analysis on a single country basis. The results also show the positive impact of financial development on economic growth in the majority of the countries. Likewise, it is found that flow of credit to the private sector is very low in this region of the world. Thus, one of the important policy implications of this study finding is that policy-makers should give more emphasis on the policies that provide a favourable environment for private sector to grow. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1449780 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1449780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1449780 Template-Type: ReDIF-Article 1.0 Author-Name: Sin-Yu Ho Author-X-Name-First: Sin-Yu Author-X-Name-Last: Ho Author-Name: N.M. Odhiambo Author-X-Name-First: N.M. Author-X-Name-Last: Odhiambo Title: Analysing the macroeconomic drivers of stock market development in the Philippines Abstract: This paper analyses the macroeconomic drivers of stock market development in the Philippines during the period 2001Q4–2016Q4. In particular, the paper examines the impact of banking sector development, inflation rate, exchange rate, economic growth, trade openness and stock market liquidity on the development of the Philippine stock market. Theoretical and empirical literature reveals diverse views on the relationship between each determinant and stock market development. In addition, the Philippine stock market has experienced remarkable growth in recent decades. However, there is no similar study on this country in the literature. The paper, therefore, enriches the literature by investigating the macroeconomic drivers of stock market development in the Philippines using the ARDL bounds testing procedure. The results show that trade openness has had a negative impact on Philippine stock market development in the long run, whereas banking sector development and the exchange rate have had positive impacts on the development of the Philippine stock market in the short run. These findings are robust to alternative specifications of the model. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1451265 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1451265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1451265 Template-Type: ReDIF-Article 1.0 Author-Name: Sanjay Sehgal Author-X-Name-First: Sanjay Author-X-Name-Last: Sehgal Author-Name: Piyush Pandey Author-X-Name-First: Piyush Author-X-Name-Last: Pandey Author-Name: Florent Deisting Author-X-Name-First: Florent Author-X-Name-Last: Deisting Title: Time varying integration amongst the South Asian equity markets: An empirical study Abstract: In this paper, we examine the dynamic nature of equity market integration for the South Asian countries. The daily data for local equity indices are used from 6 January 2004 to 31 March 2015. Copula GARCH models and Diebold and Yilmaz methodology have been employed to study the inter-temporal process of equity market integration. Empirical results show that the sample countries of the region exhibit very little or no levels of integration between them. Equity portfolio flows within the South Asian region reconfirms this trend for low integration in the region. Further, trend analysis of the fundamental determinants of financial integration for the SAARC countries was performed and the same was compared with its neighbouring regional economic bloc in Asia i.e. ASEAN + 6. It indicated that SAARC countries have to show sincere political commitment and require collaboration in efforts of policy realignment to work on their governance parameters, improve on their trade linkages and trade tariffs and develop their equity market infrastructure to achieve higher levels of financial integration. The paper contributes to the International Finance literature, especially dealing with regional economic blocs and has important implications for policy-makers, portfolio managers and academia. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1452328 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452328 Template-Type: ReDIF-Article 1.0 Author-Name: Inyong Shin Author-X-Name-First: Inyong Author-X-Name-Last: Shin Title: Could pension system make us happier? Abstract: This paper analyzes the effect of public pension system on lifespan and happiness level using optimal longevity model. This paper found the following. Public pension system can make life expectancy longer, however, the extension of lifespan caused by the public pension, not by own decision, cannot make happiness level higher. Under the government budget constraint, the public pension system cannot make the happiness level higher comparing to private savings. This paper concludes that the compulsory public pension system should be reconsidered because it does not contribute to well-being but raises various problems like aging population and income inequality. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1452342 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452342 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452342 Template-Type: ReDIF-Article 1.0 Author-Name: Chadi Azmeh Author-X-Name-First: Chadi Author-X-Name-Last: Azmeh Title: Foreign bank entry and financial development: New evidence on the cherry picking and foreign bank’s informational disadvantage phenomena in the MENA countries Abstract: This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1452343 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452343 Template-Type: ReDIF-Article 1.0 Author-Name: Yasmine Souissi Author-X-Name-First: Yasmine Author-X-Name-Last: Souissi Author-Name: Anis Jarboui Author-X-Name-First: Anis Author-X-Name-Last: Jarboui Title: Does CEO emotional bias affect performance? Abstract: This article is focused on tackling the issue of the impact of the bank CEO’s emotional bias on the Tunisian banks’ performance level while accounting for the mediating role of the control systems. In this regard, an empirical study has been set up through a questionnaire undertaken as an appropriately fit data collection method administered to a sample of 100 CEOs of Tunisian banks. Actually, the present research is intended to help in reflecting an original approach, since it serves to highlight the behavioral aspects’ crucial role in explaining the performance level within the framework of the organizational architecture theory. To the best of our knowledge, this work represents a pioneering study that deals with exploring such a research area within the Tunisian context. Indeed, the achieved results reveal with no doubt that the behavioral dimension constitutes a central aspect in the organizational architecture as it helps greatly in reflecting the intermingling of the incentive aspect with the evaluation system with respect to the accounts manager. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1453452 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1453452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1453452 Template-Type: ReDIF-Article 1.0 Author-Name: Law Teck Poh Author-X-Name-First: Law Teck Author-X-Name-Last: Poh Author-Name: Adem Kilicman Author-X-Name-First: Adem Author-X-Name-Last: Kilicman Author-Name: Siti Nur Iqmal Ibrahim Author-X-Name-First: Siti Nur Iqmal Author-X-Name-Last: Ibrahim Title: On intellectual capital and financial performances of banks in Malaysia Abstract: The purpose of the study is to consider and measure the intellectual capital towards the financial performances of the local banks in Malaysia. The study will implement the Value Added Intellectual Coefficient (VAIC) method to evaluate the financial performances of the ten local banks in Malaysia. The study will determine how the intellectual capital influences the financial performances of banks in terms of two periods which are latest six years from 2011 to 2016 and the past ten years from 2007 to 2016. The regression analysis results to indicate that the components of intellectual capital have their influences towards the bank’s financial performances indicators. Over the six years and ten years periods, Capital Employed Efficiency has the significant relationship on Return on Assets. For the Return on Equity, Human Capital Efficiency (HCE) has the significant relationship over the latest six years while Structural Capital Efficiency (SCE) has the significant relationship over the ten years. Then, SCE has the significant relationship towards the Leverage (LEV) for the latest six years compare to the past ten years whereby HCE has the significant relationship towards the LEV. These results determine that the banks need to focus on the three components of intellectual capital whereby all the three efficiencies have the influences to enhance the best financial performances in Malaysia’s banking sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1453574 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1453574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1453574 Template-Type: ReDIF-Article 1.0 Author-Name: Wajiha Haq Author-X-Name-First: Wajiha Author-X-Name-Last: Haq Author-Name: Noor Azina Ismail Author-X-Name-First: Noor Azina Author-X-Name-Last: Ismail Author-Name: NurulHuda Mohd Satar Author-X-Name-First: NurulHuda Mohd Author-X-Name-Last: Satar Title: Household debt in different age cohorts: A multilevel study Abstract: There is a need to identify household debt behaviour in different age cohorts even in countries without prominent household debt problems so that the measures for vulnerable groups can be made. Authors used multilevel mixed effect analysis to test the effect of age and other variables on demand of debt. A national representative survey data of HIES (2001–2013) based on stratified sampling design was used. Household debt in mature workers was higher than youth whereas debt of older people was not significantly different from other cohorts. Education and household size positively affect the demand for debt. This study contributed to existing literature by exploring the demand for debt in different age cohorts, taking into account other socio-economic variables. The design of debt products should be such that mature workers should not accumulate a high level of debt. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1455406 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1455406 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1455406 Template-Type: ReDIF-Article 1.0 Author-Name: Hamid Baghestani Author-X-Name-First: Hamid Author-X-Name-Last: Baghestani Title: On accuracy of survey forecasts of US mortgage spread Abstract: The cyclical variation behavior of the mortgage spread has motivated some studies to investigate its relationship to economic activity. Indeed, recent empirical findings indicate that the mortgage spread is a determinant/predictor of economic activity. We define the mortgage spread as the difference between the 30-year mortgage and 10-year Treasury rates and ask whether the Blue Chip (consensus) forecasts of these series are accurate for 1988–2015. Our findings indicate that the Blue Chip forecasts of both the 30-year mortgage and 10-year Treasury rates are biased, fail to outperform the random walk benchmark, and are directionally inaccurate. However, the Blue Chip forecasts of the mortgage spread are generally unbiased, outperform the random walk benchmark, and are directionally accurate—thus of value to a user. Given such evidence, a natural extension for future research is to explore whether the predictive information content of Blue Chip forecasts of the mortgage spread is a better predictor of output growth and whether it helps improve Blue Chip forecasts of output growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1457467 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1457467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1457467 Template-Type: ReDIF-Article 1.0 Author-Name: Idi Jackson Mdoe Author-X-Name-First: Idi Jackson Author-X-Name-Last: Mdoe Author-Name: George Kariuki Kinyanjui Author-X-Name-First: George Kariuki Author-X-Name-Last: Kinyanjui Title: Mobile telephony, social networks and credit access: Evidence from MSMEs in Kenya Abstract: Access to credit by micro, small and medium enterprises is key for growth and employment. However, it is hindered by information asymmetry. We investigated the effect of mobile telephony and social networks (group networks) on the probability of access to credit by Micro, Small and Medium enterprises in Kenya. Our analysis employed cross-sectional data, the 2016 FinAccess Household Survey infographics sheet. The analysis assumed a limited dependent variable modelling. Our analysis revealed that micro-, small- and medium-sized enterprises with owners who currently have mobile banking, mobile money and group participation, respectively, have 8.8, 6.05 and 1.97 percentage points higher chance of receiving formal credit. In terms of informal credit, the analysis revealed that below five groups participation in an extra group by the MSME owner increases the probability of accessing informal credit by 6.26 percentage points. As policy measures, our analysis implies that owners of MSMEs should participate in groups and take up mobile money and banking to further their MSMEs chances of accessing formal and informal credit. In addition, the findings imply that money lenders should create strategies to tap MSMEs reputation created by groups and mobile telephony. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1459339 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1459339 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1459339 Template-Type: ReDIF-Article 1.0 Author-Name: Abhisek Sur Author-X-Name-First: Abhisek Author-X-Name-Last: Sur Author-Name: Amarendu Nandy Author-X-Name-First: Amarendu Author-X-Name-Last: Nandy Title: FDI, technical efficiency and spillovers: Evidence from Indian automobile industry Abstract: Most emerging market economies intend to attract foreign direct investment (FDI), expecting that efficiency spillovers from FDI positively influence the productivity of domestic firms. The Indian automobile industry has been a key beneficiary of FDI, ever since the economy opened up since the early 1990s. Employing a stochastic frontier analysis (SFA), this paper first compares the technical efficiency of foreign firms (FFs) vis-à-vis domestic firms (DFs) in the Indian automobile industry for the period 2001–2014. Second, the paper identifies the key determinants, which explain the differences in technical efficiency between FFs and DFs. Finally, the paper analyses the transmission of spillovers from FFs to DFs in terms of competition, demonstration, and information effects. The results reveal higher technical efficiency (TE) of foreign firms over the domestic firms; that younger firms, both domestic and foreign, were relatively more efficient; and domestic automobile firms did not benefit from exporting activities, mainly due to their inward-orientation. The analysis in this paper suggests that the spillover effects is prominent only through demonstration effect. The competition and information effects are not significant channels for transmission of spillovers from foreign to domestic firms in the Indian automobile industry. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1460026 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1460026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1460026 Template-Type: ReDIF-Article 1.0 Author-Name: Camara Kwasi Obeng Author-X-Name-First: Camara Author-X-Name-Last: Kwasi Obeng Title: Is the effect of exchange rate volatility on export diversification symmetric or asymmetric? Evidence from Ghana Abstract: Exchange rate volatility has been identified as one of the drivers of export diversification. Previous studies have assumed a symmetric relationship between the two variables. However, because volatility could be positive or negative and economic agents react to these changes differently, recent studies argue for the adoption of an asymmetric approach to the study of the relationship between the two variables. This study employed the partial sum process to create two variables to replace exchange rate volatility (Positive and negative variables) and utilized the Linear Autoregressive Distributed Lag (ARDL) and Nonlinear Autoregressive Distributed Lag (NARDL) techniques to investigate asymmetric effects of exchange rate volatility on export diversification in Ghana for the period 1983 to 2015. The results indicate that exchange rate volatility has asymmetric relationship with export diversification in Ghana. The study revealed that other drivers of export diversification in Ghana are income, investment, infrastructure, openness, and inflation. The paper recommends that the Central Bank should strengthen its efforts at stabilizing the exchange value of the cedi. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1460027 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1460027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1460027 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Title: Culture, financial literacy, and SME performance in Ghana Abstract: This study extends the literature on financial literacy and cultural (Catholicism or Protestantism) beliefs to SME performance in a developing economy setting. Two basic questions motivated the study: (1) does culture influence financial literacy?; and (2) does culture mediate the relationship between financial literacy and firm performance in Ghana? The results, from 300 randomly sampled SME-Owners and based on Ordinary Least Squares and Logit regressions, suggest that cultural values militate against financial knowledge acquisition. Furthermore, Protestant beliefs strengthen the probability that SMEs would take advantage of growth opportunities due to financial literacy. Thus, the study concludes that the relationship between financial literacy and SME growth is cultural-context dependent. The study recommends that (1) religious bodies should inculcate financial education in their teachings; (2) financial literacy training programmes for SME-Owners should be tailored to meet their needs; and (3) cultural beliefs of SME-Owners should be of prime consideration in designing financial literacy programmes. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1463813 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1463813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1463813 Template-Type: ReDIF-Article 1.0 Author-Name: Muyanja Ssenyonga Jameaba Author-X-Name-First: Muyanja Ssenyonga Author-X-Name-Last: Jameaba Title: Deposit insurance and financial intermediation: The case of Indonesia Deposit Insurance Corporation Abstract: The article analyzes the impact of the establishment of the Indonesia Deposit Insurance Corporation (IDIC) on financial intermediation in Indonesia. The research uses technical analysis and multiple regression data analysis techniques. Results indicated that in the immediacy of IDIC establishment risk aversion increased among savers and banks alike, as reflected by a shift in the composition of bank deposits from time deposits and demand deposits to savings deposits and rising levels of Bank Indonesia certificates held by banks, respectively. However, increase in bank soundness, coupled with confidence in IDIC effectiveness, while mitigates risk-aversion behavior, it seems to have created opportunity for moral hazard in the banking system. Savers’ behavior is no longer driven by consideration of whether or not the potential custodians of their deposits are sound or other, but expected return (interest rate on deposits offered). The same applies to banks, which no longer consider risk-free Bank Indonesia certificates as a good investment. Risk-taking behavior by savers and banks alike seems to be strengthened by expectations of future government intervention for systemically important banks, raising fears of too systemically important to fail problem and continued political intervention in IDIC policymaking. Overall, IDIC establishment by bolstering public confidence in the banking system has reduced the possibility of a repeat of highly destabilizing runs on banks, hence has contributed to better financial intermediation and financial stability. However, rising moral hazard means that future bailouts are still unavoidable. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1468231 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1468231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1468231 Template-Type: ReDIF-Article 1.0 Author-Name: Abduallah Al-Mutairi Author-X-Name-First: Abduallah Author-X-Name-Last: Al-Mutairi Author-Name: Kamal Naser Author-X-Name-First: Kamal Author-X-Name-Last: Naser Author-Name: Muna Saeid Author-X-Name-First: Muna Author-X-Name-Last: Saeid Title: Capital budgeting practices by non-financial companies listed on Kuwait Stock Exchange (KSE) Abstract: Purpose—The purpose of this study is to investigate various aspects of capital budgeting techniques adopted by Kuwaiti non-financial companies listed on the Kuwait Stock Exchange (KSE). Design/methodology/approach—A questionnaire is used to collect data from Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and other managers of manufacturing, service and real estate companies listed on the KSE. Findings—The result of the analysis unveiled that top management and people who used the assets are the main sources of capital budgeting ideas. The analysis also unveiled that net present value and profitability index are the most frequently used capital budgeting techniques and the choice of the technique is determined by the nature of the project under assessment, and the academic and professional capabilities of corporate staff. The analysis further demonstrated that factors such as uncertainty about the outcome of the capital budgeting techniques and lack of required data and information to use capital budgeting techniques could prevent Kuwaiti non-financial companies from adopting capital budgeting techniques. Finally, the analysis disclosed that non-financial factors such as strategic planning, corporate image, employees’ capabilities and environment protection are taken into consideration when making capital budgeting decisions. Practical implications—Kuwaiti companies either possess technology or have the required resources to install advanced technology to assist them in employing sophisticated capital budgeting techniques that take into account inflation and risk. This would ensure more accurate results and minimize uncertainty about the outcome of the capital budgeting decisions. Originality/value—This study is based on primary data collected directly from non-financial companies listed on the KSE. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1468232 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1468232 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1468232 Template-Type: ReDIF-Article 1.0 Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Title: Causality between economic policy uncertainty and real housing returns in emerging economies: A cross-sample validation approach Abstract: This paper examines whether economic policy uncertainty (EPU) causes real housing returns in 8 emerging economies for which EPU data are available namely: Brazil, Chile, China, India, Ireland, Russia, South Africa and South Korea. Quarterly data were used for the analysis. The study uses cross-sample validation (CSV) Granger causality approach which obviates the need to partition the data into an in-sample and out-of-sample periods when limited data are available as in this study. Results based on the CSV full sample period indicate no evidence of economic policy uncertainty Granger causing real housing returns except for Chile and China. However, based on CSV rolling window results, there is evidence of time varying causality in all the countries except India. The implications of these findings are drawn. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1473708 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1473708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1473708 Template-Type: ReDIF-Article 1.0 Author-Name: Muneer Shaik Author-X-Name-First: Muneer Author-X-Name-Last: Shaik Author-Name: S. Maheswaran Author-X-Name-First: S. Author-X-Name-Last: Maheswaran Title: Expected lifetime range ratio to find mean reversion: Evidence from Indian stock market Abstract: We use the expected lifetime range (ELR) ratio based on the extreme values of asset prices to detect the presence of mean reversion in stock returns. We find that the actual cross-sectional average of the ELR ratio is significantly less than its bootstrap means, thereby indicating a considerable amount of mean reversion. We argue that ELR ratio is more conclusive in detecting mean reversion when compared to the traditional Lo and MacKinlay variance ratio variance ratio. On the empirical side, we find that mean reversion is a robust feature among the constituents of India’s BSE SENSEX stock index. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1475926 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1475926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1475926 Template-Type: ReDIF-Article 1.0 Author-Name: Christian K. Tipoy Author-X-Name-First: Christian K. Author-X-Name-Last: Tipoy Author-Name: Marthinus C. Breitenbach Author-X-Name-First: Marthinus C. Author-X-Name-Last: Breitenbach Author-Name: Mulatu F. Zerihun Author-X-Name-First: Mulatu F. Author-X-Name-Last: Zerihun Title: Exchange rate misalignment and economic growth: On the possible transmission channels for emerging economies Abstract: Despite the large body of work that exists on the impact of exchange rate undervaluation on economic growth, only a mere literature focuses on the potential transmission mechanisms. There are authors who consider the size of the tradable sector as the operative channel through which undervaluation impacts economic growth. This is due to poor contracting environment and market failures that are prominent in the tradable sector as bad institutions “tax” tradables more than non-tradables. We look at this issue in this article for a set of emerging economies using annual data from 1970 to 2014. We find that the size of the tradable sector is indeed the operative channel through which undervaluation impacts growth. We have ruled out that bad institutions “tax” tradables more than non-tradables. Our results, robust to different undervaluation indexes, highlight instead the importance of total factor productivity surge induced by an undervaluation in increasing growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1476016 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1476016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1476016 Template-Type: ReDIF-Article 1.0 Author-Name: Williams Agyemang-Duah Author-X-Name-First: Williams Author-X-Name-Last: Agyemang-Duah Author-Name: Evans Kafui Gbedoho Author-X-Name-First: Evans Author-X-Name-Last: Kafui Gbedoho Author-Name: Prince Peprah Author-X-Name-First: Prince Author-X-Name-Last: Peprah Author-Name: Francis Arthur Author-X-Name-First: Francis Author-X-Name-Last: Arthur Author-Name: Augustus Kweku Sobeng Author-X-Name-First: Augustus Author-X-Name-Last: Kweku Sobeng Author-Name: Joshua Okyere Author-X-Name-First: Joshua Author-X-Name-Last: Okyere Author-Name: Jennifer Mengba Dokbila Author-X-Name-First: Jennifer Author-X-Name-Last: Mengba Dokbila Title: Reducing poverty through fiscal decentralization in Ghana and beyond: A review Abstract: The unfinished agenda in the theory and practice of fiscal decentralization is how fiscal decentralization affects the universal plague of poverty reduction in developing economies. Focusing on developing economies especially Ghana, and also employing secondary sources of information, this paper made an attempt to provide a holistic review of the concept of fiscal decentralization and its effects on poverty reduction from the optimist and pessimist views. The paper affirmed that fiscal decentralization has the potential for poverty reduction when it is characterized by greater financial autonomy of the local units with proper budgetary allocation, prioritization, accountability and responsiveness. Accountability and proper regulation may reduce some institutional setbacks such as corruption from the system. We, therefore, recommended for a more effective, efficient, and transparent institutional and legal framework to ensure effective fiscal transfer between the central and local governments in order to eliminate various lapses associated with fiscal decentralization as highlighted by the pessimists. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1476035 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1476035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1476035 Template-Type: ReDIF-Article 1.0 Author-Name: M. T. Magombeyi Author-X-Name-First: M. T. Author-X-Name-Last: Magombeyi Author-Name: N. M. Odhiambo Author-X-Name-First: N. M. Author-X-Name-Last: Odhiambo Title: FDI inflows and poverty reduction in Botswana: an empirical investigation Abstract: This study investigates the impact of foreign direct investment (FDI) inflows on poverty reduction in Botswana from 1980 to 2014. The main objective of this study is to establish whether FDI plays a positive role in poverty reduction. The study employs autoregressive distributed lag (ARDL) bounds test approach to co-integration and the error correction model to investigate the relationship. To ensure robustness, the study uses three poverty reduction proxies which are household consumption expenditure (Pov1), infant mortality rate (Pov2), and life expectancy (Pov3). The findings from this study revealed that FDI has a positive impact on poverty reduction in the short run and a negative impact in the long run when life expectancy is used as a poverty reduction measure. When infant mortality rate is used as a poverty reduction proxy, an insignificant relationship is registered in both the long run and the short run. A negative impact of FDI on poverty reduction is confirmed in the short run when household consumption expenditure is used as a poverty reduction proxy, while in the long run an insignificant relationship is reported. The study concludes that the impact of FDI on poverty reduction is sensitive to the poverty reduction proxy used. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1480302 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1480302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1480302 Template-Type: ReDIF-Article 1.0 Author-Name: John Kagochi Author-X-Name-First: John Author-X-Name-Last: Kagochi Author-Name: Nazif Durmaz Author-X-Name-First: Nazif Author-X-Name-Last: Durmaz Title: Assessing RTAs inter-regional trade enhancement in Sub-Saharan Africa Abstract: Regional Trade Agreements (RTAs) have been advocated as one way of securing trade liberalization by the IMF and World Bank. The study uses the gravity model of bilateral trade flows to empirically investigate the effects of RTAs on intra-regional trade on a set of 46 Sub-Saharan African (SSA) countries during 1995–2011 period. Our results indicate that three of the four selected RTAs have positive and statistically significant effect on the trade among the sub-Saharan African countries. Other included variables including distance, common language, shared border, shared colonial links, and common currency are found to be important determinants of trade among SSA countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1482662 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1482662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1482662 Template-Type: ReDIF-Article 1.0 Author-Name: Abd Halim Ahmad Author-X-Name-First: Abd Halim Author-X-Name-Last: Ahmad Author-Name: Nur Adiana Hiau Abdullah Author-X-Name-First: Nur Adiana Author-X-Name-Last: Hiau Abdullah Author-Name: Kamarun Nisham Taufil Mohd Author-X-Name-First: Kamarun Nisham Author-X-Name-Last: Taufil Mohd Title: Market reactions to financial distress announcements: Do political connections matter? Abstract: We examined market reactions to the financial distress announcements of listed firms in Malaysia. We investigated whether the market differentiates between the politically connected and non-politically connected vis-a-vis the outcomes at the time of the announcements. There is evidence of differing reactions to announcements by politically connected and non-connected firms. Investors react more negatively to the non-politically connected firms as compared to the politically connected ones. In addition, in the event of emergence from financial distress, the losses of politically connected firms were lower than for the non-politically connected firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1483304 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1483304 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1483304 Template-Type: ReDIF-Article 1.0 Author-Name: Nisar Ahmad Author-X-Name-First: Nisar Author-X-Name-Last: Ahmad Author-Name: Mian Sajid Nazir Author-X-Name-First: Mian Sajid Author-X-Name-Last: Nazir Author-Name: Bilal Nafees Author-X-Name-First: Bilal Author-X-Name-Last: Nafees Title: Impact of financial development and credit information sharing on the use of trade credit: Empirical evidence from Pakistan Abstract: Pakistan is an emerging economy and characterized by a less developed financial system where trade credit is extensively used by listed manufacturing firms (LMFs). This study is focused to investigate the effect of financial development (FD) and credit information sharing (CIS) on the trade credit used by LMFs. For this purpose, dynamic panel model is estimated by applying system GMM (two-step) estimator on the financial data of 327 manufacturing firms listed in PSX Pakistan for the period 2005–2015. Results of the study reveal that FD and CIS have significant effect on the use of trade credit by LMFs in Pakistan. It is found that increase in financial depth increases the supply of funds to the private sector, and resultantly suppliers provide more trade credit to LMFs. While in response to increase in the lending rate, suppliers reduce the transfer of costly funds to LMFs through trade credit. Furthermore, negative relationship between CIS and the use of trade credit is in accordance with the substitution hypothesis. Results of the study have practical implications for the managers of firms and policy makers alike. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1483466 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1483466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1483466 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulrahman Alrabiah Author-X-Name-First: Abdulrahman Author-X-Name-Last: Alrabiah Title: Optimal regulation of banking system’s advanced credit risk management by unified computational representation of business processes across the entire banking system Abstract: The impetus for this paper came after the financial crisis of 2007–2008, its global consequences and specifically how incomplete information “information asymmetry” between local banks and regulators extremely affected the banking sector. Financial institutions and regulators are—from a technical point of view–not yet fully integrated and standardised. The inaccuracy in banks’ data and the long (quarterly) intervals between reports to the regulators leads to delayed interventions by local supervisory regulators. Most regional banks use an internal ratings-based approach (IRB) that allows them to use their own methods to calculate credit risks, which makes it difficult for regulators to verify and validate the banks’ data without a standardised procedure and the benefit of fully automated connectivity for the regulatory reporting system through sophisticated IT tools. The importance of this issue, for the central banks, motivates the researcher to investigate and seek technology solutions in the interests of maximising the technical efficiency of the regulatory banking system. This paper is focused on the banking regulatory reporting system that uses IRB approach to evaluate credit risk. Due to the importance and the sensitivity of IRB approach on the banking credit risk assessments, a case study is examined and a tailored regulatory reporting system framework is proposed. The proposed framework integrates a private cloud computing network with standardised, automated and integrated features that would provide regulators and practitioners with a new method to enhance the regulatory reporting system. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1486685 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1486685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1486685 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Saqib Irshad Author-X-Name-First: Muhammad Saqib Author-X-Name-Last: Irshad Author-Name: Qi Xin Author-X-Name-First: Qi Author-X-Name-Last: Xin Author-Name: Hamza Arshad Author-X-Name-First: Hamza Author-X-Name-Last: Arshad Title: Competitiveness of Pakistani rice in international market and export potential with global world: A panel gravity approach Abstract: Rice is an important source for foreign exchange earnings for Pakistan’s economy, keeping this fact in mind, this study is to calculate competitiveness of rice export of Pakistan in international market compared to largest exporter countries and this article is the first empirical attempt using a panel-gravity approach by employing PPML technique and to find out potential countries for Pakistani rice export to 144 countries over the period 2003–2016. The outcomes of this study revealed that as compared to other major exporters of rice in the international market, Pakistan had high competitive and comparative advantage in the exportation and production of rice. We confirm the positive relationship between rice export of Pakistan and the main components of the gravity model, GDP of Pakistan and trading partner, the difference in income, common border, and WTO membership and an inverse relationship with distance, exchange rates and trade agreement. The results for rice export potential suggest Pakistan still has plenty of rice export potential with 109 countries and as such Pakistan can possibly reduce and gain foreign exchange earnings to reduce the trade deficit by targeting these countries. So as to utilize the potential benefits of rice exports, policy makers need to reinforce the competitiveness in rice sector of Pakistan. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1486690 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1486690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1486690 Template-Type: ReDIF-Article 1.0 Author-Name: Otuo Serebour Agyemang Author-X-Name-First: Otuo Serebour Author-X-Name-Last: Agyemang Author-Name: John Gartchie Gatsi Author-X-Name-First: John Gartchie Author-X-Name-Last: Gatsi Author-Name: Abraham Ansong Author-X-Name-First: Abraham Author-X-Name-Last: Ansong Title: Institutional structures and financial market development in Africa Abstract: Our paper examines the relationship between institutional structures and the level of financial markets development in Africa. Our paper contributes to the extant literature by using other financial market development variables—ease of access to loans and venture capital availability—that have not before been used to analyzed how institutional structures influence the level of financial markets development in the context of Africa. We employ a two-step generalized method of moment estimator with corrected standard errors to examine this. We demonstrate that a high-quality institutional environment is relevant in explaining ease of access to loans and venture capital availability in Africa. Based on these results, our paper argues that good institutional structures could help stimulate the level of financial markets development in Africa. However, to attain this feat, African governments need to strengthen institutions through effective enforcement of laws to foster compliance in a specifically definite manner-by fashioning out costs for non-compliance Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1488342 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1488342 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1488342 Template-Type: ReDIF-Article 1.0 Author-Name: Darmawati Muchtar Author-X-Name-First: Darmawati Author-X-Name-Last: Muchtar Author-Name: Fauzias Mat Nor Author-X-Name-First: Fauzias Author-X-Name-Last: Mat Nor Author-Name: Wahyuddin Albra Author-X-Name-First: Wahyuddin Author-X-Name-Last: Albra Author-Name: Muhammad Arifai Author-X-Name-First: Muhammad Author-X-Name-Last: Arifai Author-Name: Ansari Saleh Ahmar Author-X-Name-First: Ansari Saleh Author-X-Name-Last: Ahmar Title: Dynamic performance of Indonesian public companies: An analysis of financial decision behavior Abstract: The purpose of this research is to investigate the effects of financial decision behavior on firm performance of Indonesian public companies using panel data. The dynamic generalized method of moment is utilized in this study. The results show that firm performance is dynamic in nature, which indicates that last year performance affects current performance significantly. Empirical result of financial decision behavior shows that investment, leverage, and dividend per share (DPS) have significant impact on firm performance. Specifically, investment has negative impact on firm performance. Meanwhile leverage has negative effects on return on assets (ROA), but positively affects Tobin’s Q. Moreover, DPS positively affects ROA and Tobin’s Q. This finding suggests that investment decision of Indonesian firms is overinvestment, indicated with higher investment affects firm performance negatively. Similarly with leverage, the finding reveals that Indonesian public companies borrowed external fund more than they required (overleverage). The positive effect of DPS on firm performance implies that dividends payout to shareholders create good signal to the market, in which managers uses dividend to deliver private information to the market. However, based on the coefficient of financial decision variables, the impact is more on the market performance and less on the accounting performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1488343 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1488343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1488343 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Enamul Hoque Author-X-Name-First: Mohammad Enamul Author-X-Name-Last: Hoque Author-Name: Tahmina Akhter Author-X-Name-First: Tahmina Author-X-Name-Last: Akhter Author-Name: Noor Azuddin Yakob Author-X-Name-First: Noor Azuddin Author-X-Name-Last: Yakob Title: Revisiting endogeneity among foreign direct investment, economic growth and stock market development: Moderating role of political instability Abstract: This study investigates the endogeneity among foreign direct investment, economic growth, and stock market development, along with the moderating role of political instability on the relationship among foreign direct investment, economic growth, and stock market development. The study employs selected macroeconomic variables data for the period of 1993–2016 with Auto Regressive Distributed Lag (ARDL) system and hierarchical regression approach for hypothesis testing. This study discovers that there are short-run and long-run association among economic growth, foreign direct investment, and stock market development. In the long run, only unidirectional relationship exists among economic growth, foreign direct investment, and stock market development. However, in the short-run, bidirectional relationship is evident between economic growth and stock market development. This study reveals that foreign direct investment partially mediates the relationship between economic growth and stock market development; and political instability negatively moderates the economic growth and stock market development nexus, the foreign direct investment and stock market development nexus, and the economic growth and foreign direct investment nexus. Therefore, this study suggests that political stability is a must for Bangladesh to achieve stock market development, to increase the foreign direct investment inflows, and to achieve long term sustainable growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1492311 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1492311 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1492311 Template-Type: ReDIF-Article 1.0 Author-Name: LJ Basson Author-X-Name-First: LJ Author-X-Name-Last: Basson Author-Name: Lee van den Berg Author-X-Name-First: Lee Author-X-Name-Last: van den Berg Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Title: Performance of two zero-cost derivative strategies under different market conditions Abstract: Zero-cost collars are option-based strategies which—by matching prices received and paid for the component derivatives—provide costless protection for stock or index investments. The investors’ risk appetite determines a return floor by selecting a relevant put strike and the associated call strike (reverse-engineered from the [known] call value) establishes the index return’s cap. Increasing the floor increases the cap and vice versa. A butterfly strategy involves the purchase of two call options and the sale of two put options. By choosing appropriate strikes, this assembly may also be structured such that it provides a costless investment strategy. Rolling strategies involve the purchase and later sale of the derivative components at a chosen frequency (usually monthly): but the literature has, to date, not explored the potential outcomes for such procedures. Using recent historical data, the effect of different strategy maturities and strike prices on potential index returns (from several jurisdictions) are investigated. The more profitable strategy is strongly influenced by the prevailing market conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1492893 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1492893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1492893 Template-Type: ReDIF-Article 1.0 Author-Name: Inderjit Kaur Author-X-Name-First: Inderjit Author-X-Name-Last: Kaur Title: Effect of mutual funds characteristics on their performance and trading strategy: A dynamic panel approach Abstract: Investors search for criteria that are systematically related to performance of mutual funds so as to maximize their personal return. The present study is on effect of selected fund characteristics on performance of the mutual funds. The data on Indian equity mutual funds for the period 2004–2013 was utilized for the purpose. The dynamic panel data is estimated with the most efficient estimator system-Generalized Method of Moment (sys-GMM). The results show that past year’s performance, flow to funds, and cash ratio explained the fund performance measured with conditional Carhart alpha. Thus, earlier documented non-persistence in the performance of mutual funds could be due to not considering the dynamic effect of lagged dependent variable. Further, we examined whether mutual fund characteristics systematically affect the naïve beta strategies followed by mutual funds. The findings show that fund characteristics such size, expense ratio, portfolio turnover ratio, and age affect trading strategy of mutual funds. The study has implications for investors of mutual funds as they can optimize their portfolio return with a strategy based on past one-year risk adjusted conditional Carhart alpha. Further, mutual fund ranking firms can consider conditional Carhart alpha as one of the criteria to rank mutual funds. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1493019 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493019 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493019 Template-Type: ReDIF-Article 1.0 Author-Name: Mohamed Nejib Ouertani Author-X-Name-First: Mohamed Nejib Author-X-Name-Last: Ouertani Author-Name: Nader Naifar Author-X-Name-First: Nader Author-X-Name-Last: Naifar Author-Name: Hedi Ben Haddad Author-X-Name-First: Hedi Author-X-Name-Last: Ben Haddad Title: Assessing government spending efficiency and explaining inefficiency scores: DEA-bootstrap analysis in the case of Saudi Arabia Abstract: The recent Saudi Arabia’s “Vision 2030” including the National Transformation Plan has renewed the debate on the efficiency of government spending. The aim of this paper was twofold. First, to measure the relative efficiency of Saudi Arabia’s public spending over the period 1988–2013 using non-parametric approach. Second, to explain the inefficiency scores using a DEA-Bootstrap analysis by incorporating environmental variables. The empirical results show that, on average, the public spending is inefficient, implying that Saudi Arabia can improve their performance on health, education and infrastructure without increasing spending. The empirical explanation of the inefficiency scores using a DEA-Bootstrap analysis shows that the unemployment and broad money negatively impact government expenditure mainly in the case of infrastructure and health. Our findings can be useful for policymakers in order to set out a structural adjustment plan to improve the efficiency level for education, health and infrastructure expenditures. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1493666 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493666 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493666 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Olorunfemi Akande Author-X-Name-First: Joseph Olorunfemi Author-X-Name-Last: Akande Title: Do competition, regulation and stability matter for efficiency in Sub-Saharan African banking sectors? Abstract: The excessive cost of financial intermediation in the Sub-Saharan African banking sectors motivates the investigation of whether competition, regulation and stability matter for efficiency in the banking system. Data from 440 commercial banks for the periods 2006–2015 were collected and analysed by seven-variable panel structural vector autoregressive model. There was evidence to show that efficiency responds positively and significantly to shocks in capital, liquidity and asset quality regulations and competition. However, the results reveal all the variables responding to one standard deviation shock in efficiency, suggesting that while the variables matter for efficiency, they all also require efficiency for their effective operation. Hence, the conclusion is that efficiency is central to the effective running of the banking system. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1493667 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493667 Template-Type: ReDIF-Article 1.0 Author-Name: Dadson Awunyo-Vitor Author-X-Name-First: Dadson Author-X-Name-Last: Awunyo-Vitor Author-Name: Solomon Samanhyia Author-X-Name-First: Solomon Author-X-Name-Last: Samanhyia Author-Name: Elijah Addo Bonney Author-X-Name-First: Elijah Author-X-Name-Last: Addo Bonney Title: Do oil prices influence economic growth in Ghana? An empirical analysis Abstract: The study examined the causal linkage between oil price change and economic growth. The study made use of secondary data that were extracted from World Development Indicators and International Financial Statistics. Descriptive statistics, unit root test, Johansen cointegration test and Granger causality test were employed to analyse the data. The results of the study revealed that there exists an inverse relationship between oil price change and economic growth in Ghana. However, the effect of oil price change on economic growth is statistically insignificant in the long run. The result of the Granger causality similarly revealed a unidirectional causality between oil prices and economic. In conclusion, the variation in oil price has no effect on the growth of the Ghanaian economy; hence, policies to influence economic growth should be independently pursued of oil price changes. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1496551 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1496551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1496551 Template-Type: ReDIF-Article 1.0 Author-Name: Derick Taylor Adu Author-X-Name-First: Derick Taylor Author-X-Name-Last: Adu Author-Name: Elisha Kwaku Denkyirah Author-X-Name-First: Elisha Kwaku Author-X-Name-Last: Denkyirah Title: Foreign aid— real exchange rate Nexus: Empirical evidence from Ghana Abstract: The contentious effect of foreign aid on real exchange rate in developing countries leading to Dutch disease necessitates further research since its impact can only be determined empirically. Using annual data gathered from the World Bank Development Index database with reference period of 1980 to 2016, we test the Dutch disease hypothesis by empirically examining the effect of foreign aid on real exchange rate in Ghana. Contrary to the findings of studies which establish non-existence of Dutch disease in Ghana, the empirical results of this study reveal otherwise, both in the short-run and long-run. To mitigate Dutch disease menace in Ghana, it is important that the country utilize its ideal productive capacity to cushion its aid-induced increased demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1499184 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1499184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1499184 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Saqib Irshad Author-X-Name-First: Muhammad Saqib Author-X-Name-Last: Irshad Author-Name: Qi Xin Author-X-Name-First: Qi Author-X-Name-Last: Xin Author-Name: Zhang Hui Author-X-Name-First: Zhang Author-X-Name-Last: Hui Author-Name: Hamza Arshad Author-X-Name-First: Hamza Author-X-Name-Last: Arshad Title: An empirical analysis of Pakistan’s bilateral trade and trade potential with China: A gravity model approach Abstract: The decades-long history of friendly relationship in both countries bore the fruits in the form of Pakistan–China free-trade agreement (PCFTA) in 2006. This paper aims to estimate Pakistan’s bilateral trade potential with China by employing gravity model of trade in a panel data set covering the period 1992–2015. In an attempt to obtain unbiased results we have utilized various estimation methods as suggested by the recent empirical literature on gravity equation to acquire the maximum variation in results. The results from EGLS, REM, two-stage EGLS, GMM, Tobit and PPML have shown that Pakistan’ bilateral trade with all FTA partner countries is positively affected by GDPs, religion, WTO, trade openness in both countries and the common border; whereas negatively affected by geographical distance and inflation. It is also stated that common language and (Trade Agreements) PTA found to be pessimistically exaggerated bilateral trade of Pakistan with FTA partners. The overall PTA effect is negative and highly significant albeit we have found immense trade potential of Pakistan in case of China by most of the estimation techniques. The industry of Pakistan and exporters should adopt new measures to boost and diversify the exports to China and to bring about a reasonable equality in mutual trading relations. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1504409 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1504409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1504409 Template-Type: ReDIF-Article 1.0 Author-Name: Sin-Yu Ho Author-X-Name-First: Sin-Yu Author-X-Name-Last: Ho Title: Determinants of economic growth in Hong Kong: The role of stock market development Abstract: We assessed the impact of stock market development on growth in Hong Kong for the period 1986Q2 to 2015Q4. By constructing a composite index of stock market development and controlling for the key determinants of growth, we found stock market development to promote growth both in the short and long run. We further constructed an alternative index of stock market development and found this conclusion to be robust. Our findings are broadly consistent with the growth experience of Hong Kong. Policies meant to promote stock market development may enhance growth in Hong Kong as well. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1510718 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1510718 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1510718 Template-Type: ReDIF-Article 1.0 Author-Name: Thu Phan Author-X-Name-First: Thu Author-X-Name-Last: Phan Author-Name: Kevin Daly Author-X-Name-First: Kevin Author-X-Name-Last: Daly Author-Name: Anh-Tuan Doan Author-X-Name-First: Anh-Tuan Author-X-Name-Last: Doan Title: The effects of risks and environmental factors on bank cost efficiency: A study in East Asia and Pacific region Abstract: The interrelationship between risks and bank efficiency has received much attention in banking literature for years, especially after the Asian financial crisis in 1997 and the global financial crisis (GFC) in 2008. This study collected and analyzed the data of 247 banks of 12 developed and developing economies in East Asia and Pacific area over the 2003–2012 period to find the empirical evidence for that relationships. Using a stochastic frontier approach (SFA) to estimate bank cost efficiency, we found that there are significant relationships among risks, cost efficiency and environmental factors, but they are in different levels when comparing between developed and developing economies, or between the periods of pre- and post-2008 financial crisis. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1510719 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1510719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1510719 Template-Type: ReDIF-Article 1.0 Author-Name: M. Kateregga Author-X-Name-First: M. Author-X-Name-Last: Kateregga Author-Name: S. Mataramvura Author-X-Name-First: S. Author-X-Name-Last: Mataramvura Author-Name: D. Taylor Author-X-Name-First: D. Author-X-Name-Last: Taylor Title: Subordinated affine structure models for commodity future prices Abstract: To date the existence of jumps in different sectors of the financial market is certain and the commodity market is no exception. While there are various models in literature on how to capture these jumps, we restrict ourselves to using subordinated Brownian motion by an α-stable process, α ∈ (0,1), as the source of randomness in the spot price model to determine commodity future prices, a concept which is not new either. However, the key feature in our pricing approach is the new simple technique derived from our novel theory for subordinated affine structure models. Different from existing filtering methods for models with latent variables, we show that the commodity future price under a one factor model with a subordinated random source driver, can be expressed in terms of the subordinator which can then be reduced to the latent regression models commonly used in population dynamics with their parameters easily estimated using the expectation maximisation method. In our case, the underlying joint probability distribution is a combination of the Gaussian and stable densities. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1512360 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512360 Template-Type: ReDIF-Article 1.0 Author-Name: Calvin Mudzingiri Author-X-Name-First: Calvin Author-X-Name-Last: Mudzingiri Author-Name: John W. Muteba Mwamba Author-X-Name-First: John W. Author-X-Name-Last: Muteba Mwamba Author-Name: Jacobus Nicolaas Keyser Author-X-Name-First: Jacobus Nicolaas Author-X-Name-Last: Keyser Title: Financial behavior, confidence, risk preferences and financial literacy of university students Abstract: This study investigates determinants of financial behavior (FB) of university students at a university in South Africa. It examines whether financial behavior, confidence, time preferences, risk preferences and financial literacy perceptions of university students differ by financial literacy level. Data were gathered via a questionnaire that included personal information, FB, financial perceptions and financial knowledge responses as well as a multiple price list (MPL) risk preferences and time preferences experiment tasks. A convenient total sample of 191 students (females = 53%) participated in the study. A t-test analysis showed that FB, risk preferences, confidence levels, time preferences and financial literacy perceptions of university students significantly differed by financial literacy level. Our results show that university students with low financial literacy levels are more overconfident, risk loving and impatient; such FB is synonymous with major causes of financial crises across the world. An OLS regression model analysis showed that the risk preferences index, financial literacy perception index and confidence significantly influenced the FB of categorized university students. The risk preference index significantly influenced debt FB of categorized university students. In order to understand the FB of university students, one should take cognizance of their preferences, financial knowledge, confidence and personal characteristics. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1512366 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512366 Template-Type: ReDIF-Article 1.0 Author-Name: Hany Abdel-Latif Author-X-Name-First: Hany Author-X-Name-Last: Abdel-Latif Author-Name: Rehab A. Osman Author-X-Name-First: Rehab A. Author-X-Name-Last: Osman Author-Name: Heba Ahmed Author-X-Name-First: Heba Author-X-Name-Last: Ahmed Title: Asymmetric impacts of oil price shocks on government expenditures: Evidence from Saudi Arabia Abstract: This paper investigates the effect of oil price shocks on government expenditures on the health and education sectors in Saudi Arabia. Using a quarterly dataset 1990Q1–2017Q2 and employing a non-linear autoregressive distributed lag (NARDL) model, our research shows evidence of a non-linear relationship between oil prices and government expenditures in Saudi Arabia, where a negative oil price shock would have a statistically significant different impact in the long run compared to a positive shock. We build upon our empirical findings and draw some policy recommendations for Vision 2030 of Saudi Arabia. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1512835 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512835 Template-Type: ReDIF-Article 1.0 Author-Name: Hannu Piekkola Author-X-Name-First: Hannu Author-X-Name-Last: Piekkola Title: Internationalization via export growth and specialization in Finnish regions Abstract: Finnish regions increased their exports in special industries from 1999 to 2013. This internationalization of industries in regions is measured by the adjusted Balassa’s revealed comparative advantage index. It has been shown that innovation potential has not increased, even though R&D drives specialization and leads to an increase in exports and an improvement in trade balance. The growth of other intangible capital, such as organizational capital (management and marketing capital) and information and communication technology (ICT), has concentrated in the greater Helsinki area, but products and services are also targeted to domestic markets and depend on imports rather than promoting exports. The physical capital investment among the physical intensive firms has substituted imports rather than affecting exports. In a small open economy such as Finland’s, all these trends, together with foreign firms not being more export-oriented than domestic firms, call for a new industrial policy to promote R&D on a wide scale and continue regional specialization, thereby maintaining competitiveness and export growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1514574 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1514574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1514574 Template-Type: ReDIF-Article 1.0 Author-Name: Hummera saleem Author-X-Name-First: Hummera Author-X-Name-Last: saleem Author-Name: Wen Jiandong Author-X-Name-First: Wen Author-X-Name-Last: Jiandong Author-Name: Muhammad Bilal Khan Author-X-Name-First: Muhammad Bilal Author-X-Name-Last: Khan Title: The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests Abstract: This study is the first attempt to scrutinize the causal relationship between economic policy uncertainty (EPU) and innovation in the case of China, using the autoregressive distributed lag (ARDL) approach to co-integration approach of innovation accounting for causality analysis. The empirical findings show that EPU can negatively affect innovation. EPU indicates a significantly negative impact on innovation as well as on the gross domestic product (GDP) growth rate. The combined results based on ARDL, innovation accounting approach (IAA) (variance decompositions and impulse response functions), and fully modified ordinary least square (FMOLS) raise an important point that calls for attention. The point is relating to the causality running from EPU to innovation. The future of China is uncertain, so when the economic uncertainty is higher, it lowers the value of future activities of the economy of China. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1514929 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1514929 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1514929 Template-Type: ReDIF-Article 1.0 Author-Name: Thobeka Ncanywa Author-X-Name-First: Thobeka Author-X-Name-Last: Ncanywa Author-Name: Marius Mamokgaetji Masoga Author-X-Name-First: Marius Mamokgaetji Author-X-Name-Last: Masoga Title: Can public debt stimulate public investment and economic growth in South Africa? Abstract: South Africa is a developing country faced with diverse challenges like high unemployment, poverty, inequality and low economic growth. In an attempt to address these issues, government can embark on borrowing and incur public debt. Countries that run large persistent public debt signal negative perceptions to investors as the debt might lead to credit risk posed by currency weakness and credit downgrades. The study investigated if public debt can influence public investment and ultimately economic growth. The autoregressive distributive lag, Granger causality, impulse response function and variance decomposition were applied to achieve the objectives. The cointegration test has found the existence of long-run relationship among the investigated variables. It turns out that in the long run there is a negative relationship between public debt and investment. Since there is direct link between investment and economic growth, there is an inverse relationship in the public debt economic growth nexus. The error correction mechanism confirmed that the system can adjust to equilibrium at a speed of 17%. There is bi-directional Granger causality relationship between public debt and economic growth. The impulse response function has found that, one standard deviation shock in public debt inversely affect economic growth. Variance decomposition results indicate that a shock to public debt account for 16.39% fluctuations in economic growth. It is recommended that a capital scarce country be encouraged to borrow so that more capital can be accumulated. However, the later stage of borrowing marked with high level of debt will lead to subdued growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1516483 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1516483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1516483 Template-Type: ReDIF-Article 1.0 Author-Name: Komla Amega Author-X-Name-First: Komla Author-X-Name-Last: Amega Title: Remittances, education and health in Sub-Saharan Africa Abstract: This study investigates the effects of remittances on education and health outcomes using a 5-year interval data on 46 Sub-Saharan African (SSA) countries from 1975 to 2014. Employing system GMM, remittances were found to significantly improve education and health in SSA. It was also established that improving education impacts positively on health and the reverse was also true. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1516488 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1516488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1516488 Template-Type: ReDIF-Article 1.0 Author-Name: Md Reza Sultanuzzaman Author-X-Name-First: Md Reza Author-X-Name-Last: Sultanuzzaman Author-Name: Hongzhong Fan Author-X-Name-First: Hongzhong Author-X-Name-Last: Fan Author-Name: Mahamud Akash Author-X-Name-First: Mahamud Author-X-Name-Last: Akash Author-Name: Banban Wang Author-X-Name-First: Banban Author-X-Name-Last: Wang Author-Name: Uddin Sarker Md Shakij Author-X-Name-First: Uddin Sarker Md Author-X-Name-Last: Shakij Title: The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach Abstract: This paper examines the long-run and short-run relationship between Foreign Direct Investment (FDI) inflows, exports, and economic growth in Sri Lanka over 1980–2016. The study implies Autoregressive Distributed Lag (ARDL) bounds testing approach to reveal the relationship between the variables. The study indicates that FDI inflows have a positive and significant relationship with economic growth in the long-run and short run. If FDI inflows increase, GDP growth will increase. But for exports, it has a negative and significant relationship with economic growth in the long-run. If exports increase, the GDP growth will decrease. Sri Lankan exports strongly depend on primary goods. There is a risk of finite resources and price volatility. It’s not surprising for developing economy like Sri Lanka. Also, in the short run, exports have a positive and significant relationship with economic growth. If exports increase, GDP growth will increase significantly. The findings suggest that both FDI inflows and exports influence economic progress in Sri Lanka. Based on emerging market economies, FDI inflows are useful in improving the production process in the host country, and hereafter it will contribute to quality exports and the economic growth of Sri Lanka. Policymakers should emphasize to gear up all the barriers for the economic development of Sri Lanka. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1518116 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518116 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518116 Template-Type: ReDIF-Article 1.0 Author-Name: Junior T. Chiweza Author-X-Name-First: Junior T. Author-X-Name-Last: Chiweza Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Title: The effects of oil price uncertainty on economic activities in South Africa Abstract: This paper investigates the link between oil price uncertainty shocks and key macroeconomic indicators of a net oil importing country, South Africa. Monthly data covering the period 1990:01 to 2015:12 is used. The Structural Vector Autoregressive (SVAR) methodology is applied incorporating realized volatility as an indicator of oil price uncertainty to investigate the short run effects of oil price uncertainty. The Generalised Impulse Response Functions (GIRF) analysis reveals that for most variables, oil price uncertainty shock has an adverse and persistent effect over time. Consistent with GIRF, the Generalised Forecast Error Variance Decompositions (GFEVDs) analysis also points out that oil price uncertainty shocks contributes substantially to variations in real output, inflation and various macroeconomic variables of South Africa. Therefore, SVAR analysis reveals the significant role of exogenous oil prices on the economy of South Africa when price uncertainty shocks exist. The policy implications of these findings are drawn. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1518117 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518117 Template-Type: ReDIF-Article 1.0 Author-Name: Dincer Dedeoglu Author-X-Name-First: Dincer Author-X-Name-Last: Dedeoglu Author-Name: Kaan Ogut Author-X-Name-First: Kaan Author-X-Name-Last: Ogut Title: Examination of money supply endogeneity in Turkey: Evidence from asymmetric causality test Abstract: In this study, we examine the money supply endogeneity in Turkish economy for the post crises period, between 2009.10 and 2016.12 by employing asymmetric causality test. Our results reveal that a positive credit shock will cause a positive shock in the money supply. That is, an increase in banking sector credit volume will cause an increase in money supply. However, such a causal impact for negative shocks is not found. Our findings show that the causality runs from bank loans to money supply for the positive components so credit cuts may not initiate a fall in money supply. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1518956 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518956 Template-Type: ReDIF-Article 1.0 Author-Name: Zandri Dickason Author-X-Name-First: Zandri Author-X-Name-Last: Dickason Author-Name: Sune Ferreira Author-X-Name-First: Sune Author-X-Name-Last: Ferreira Title: Establishing a link between risk tolerance, investor personality and behavioural finance in South Africa Abstract: The main objective of this paper was to establish which behavioural finance biases are associated with a certain level of risk tolerance and investor personality. Furthermore, the study aimed to indicate how these behavioural finance biases can influence investment decisions. Since behavioural finance is becoming more essential in the investment industry, further research within a South African context was regarded as necessary. Results indicated that investors with a low-risk tolerance level and a conservative investor personality are subject towards loss aversion and mental accounting biases. Investors with a high-risk tolerance level are mostly subject towards the self-control bias. The significance of this study will enable investment companies to more accurately profile their investors and to offer more refined investment options. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1519898 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1519898 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1519898 Template-Type: ReDIF-Article 1.0 Author-Name: Athenia Bongani Sibindi Author-X-Name-First: Athenia Bongani Author-X-Name-Last: Sibindi Author-Name: Daniel Makina Author-X-Name-First: Daniel Author-X-Name-Last: Makina Title: Are the determinants of banks’ and insurers’ capital structures homogeneous? Evidence using South African data Abstract: This paper investigates the factors that determine capital structures of financial firms using two separate samples of banks and insurance companies and draws comparisons therefrom. It utilizes two samples of 16 South African banks and 26 South African insurance companies for the period 2006–2015. The relationship between leverage and firm-level determinants of capital structure is tested for each sample. The results show that the standard firm-level determinants of capital structure empirically observed on non-financial firms also apply for banks and insurers. Confirming the fundamental differences between banks and insurance companies, the study observed that the 2007–2009 global financial crisis (GFC) have a negative impact on capital structures of banks (meaning that they deleverage during crises). In contrast, the GFC was found to have a positive impact on capital structures of insurance companies (meaning, unlike banks, they leverage during crises). We find that banks and insurers have target capital structures. Banks adjust to this target at an adjustment speed of 44%, whereas insurers adjust at a lower rate of 21%. In conclusion, the paper finds both commonalities and fundamental differences between the capital structures of banks and insurers. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1519899 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1519899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1519899 Template-Type: ReDIF-Article 1.0 Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Author-Name: Huu Huan Nguyen Author-X-Name-First: Huu Huan Author-X-Name-Last: Nguyen Title: Bank restructuring and bank efficiency—The case of Vietnam Abstract: This study examines the link between bank restructuring and bank efficiency in Vietnamese banks employing the Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) approach. The data sample includes 26 commercial banks over the period 1999–2015. Our finding indicates that Vietnamese government’s restructuring policies in the first stage have not been beneficial for banks implementing restructuring. Regarding the effect of different restructuring methods, we show that the privatization of state-owned commercial banks, state intervention and mergers and acquisitions (M&As) do not substantially improve efficiency. Besides, we find that bank efficiency declines during bank restructuring period because of not only transition cost but also the change of other environment variables, such as financial crisis or domestic economy slowdown. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1520423 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1520423 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1520423 Template-Type: ReDIF-Article 1.0 Author-Name: Seba Mohanty Author-X-Name-First: Seba Author-X-Name-Last: Mohanty Author-Name: Jitendra Mahakud Author-X-Name-First: Jitendra Author-X-Name-Last: Mahakud Title: Commercial bank capital and risk in India: Does financial crisis matter? Abstract: This study investigates the relationship between bank capital and risk in the Indian banking sector. The sample consists of 68 commercial banks including public-sector banks, private-sector banks and foreign banks. We employ panel granger causality test to find out the relationship between risk and capital. The result signifies that there is a unidirectional causality, i.e. risk is causing capital for all the three types of commercial banks. Furthermore, we examine the impact of risk on capital with some bank-specific variables and regulatory pressure as control variables using generalised method of moments (GMM) technique. The results reveal that bank risk, bank-specific variables and regulatory pressure are significantly affect the bank capital, and the results vary across the ownership of the banks. Finally, we examine the impact of risk on bank capital between with and without financial crisis period. We find that risk is positively affecting the bank capital ratio under both periods in the case of public-sector banks, but the rate of change is more on with financial crisis period than without crisis period. The impact of risk on bank capital has been highest for the private-sector banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1520424 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1520424 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1520424 Template-Type: ReDIF-Article 1.0 Author-Name: Ayse Y. Evrensel Author-X-Name-First: Ayse Y. Author-X-Name-Last: Evrensel Title: Contradictory effects of religiosity on subjective well-being Abstract: This article provides empirical evidence for the contradictory effects of religiosity on subjective well-being (SWB). While a number of empirical studies demonstrate that higher religiosity is associated with higher happiness at the level of the individual, the published lists of happiest countries indicate that these countries are not religious. In this article, the empirical analysis is conducted at the level of the individual using a respondent-based dataset with 347,947 subjects in 96 countries as well as at the level of the country using a cross-section dataset including the same 96 countries. The empirical results at the respondent level indicate that happier people are likely to be female, younger, and healthier with higher social status and a stronger sense of control over their lives. Additionally, higher religiosity is associated with higher levels of SWB. At the country level, while religiosity tends to lose its statistical significance or negatively affect SWB, institutional quality emerges as a positive covariate of SWB. However, the country-level results are sensitive to alternative measures of SWB and religiosity. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1525115 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1525115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1525115 Template-Type: ReDIF-Article 1.0 Author-Name: K.R. Naveen Kumar Author-X-Name-First: K.R. Author-X-Name-Last: Naveen Kumar Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Author-Name: T. Mallikarjunappa Author-X-Name-First: T. Author-X-Name-Last: Mallikarjunappa Title: Windows of opportunity and seasoned equity offerings: An empirical study Abstract: Taking a sample of seasoned equity offerings (SEOs) by firms listed on Bombay Stock Exchange (BSE) from the year 1992 to 2012, we examine two of the key issues concerning SEOs. First, whether SEOs are underpriced, issued at a price lower than the prevailing market price; and second, whether companies time their issues. Study of 162 SEOs exhibits significant underpricing at 1% significance level leading us to conclude that SEOs in India are significantly underpriced. Analysis of abnormal returns for 114 SEOs taking different event windows surrounding issue opening dates reveals that, except for the −1 to + 1 event window, CAAR for all other event windows are significantly negative. This leads us to conclude that investors in India experience significantly negative abnormal returns surrounding SEO issue opening. Overall, findings of the study reveal that SEOs in India are underpriced and that there exist windows of opportunity for SEOs in India. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1528688 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1528688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1528688 Template-Type: ReDIF-Article 1.0 Author-Name: Riza Emekter Author-X-Name-First: Riza Author-X-Name-Last: Emekter Author-Name: Robert Beaves Author-X-Name-First: Robert Author-X-Name-Last: Beaves Author-Name: Zane Dennick-Ream Author-X-Name-First: Zane Author-X-Name-Last: Dennick-Ream Title: Is stock market overpriced? A benchmark approach Abstract: The fact that stock market is unpredictable does not deter investors, pundits, and academicians from speculating about the next market move. This paper uses multiple benchmarks to judge the current level of the stock market. Among those benchmarks are bonds; commodities; REITs; international stocks; company earnings, sales, and profits; and GDP. Ten-year moving averages of benchmark variables are individually and then collectively compared with S&P 500 index. Although our analysis finds that fundamentals do not support the current high level of the stock market, we do find evidence that a rational bubble exists in that market using the duration dependence test. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1534303 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1534303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1534303 Template-Type: ReDIF-Article 1.0 Author-Name: Priviledge Cheteni Author-X-Name-First: Priviledge Author-X-Name-Last: Cheteni Author-Name: Gisele Mah Author-X-Name-First: Gisele Author-X-Name-Last: Mah Author-Name: Yohane Khamfula Yohane Author-X-Name-First: Yohane Khamfula Author-X-Name-Last: Yohane Title: Drug-related crime and poverty in South Africa Abstract: This paper argues that the link between poverty and drug-related crime might be spurious. We take an empirical approach to investigate the causality and plausibility of this link. Firstly, we regress crime against envisaged explanatory variables in order to estimate the contribution of poverty to crime. Secondly, data is analysed using an ARDL ECM. The quarterly sample data for our estimation is for the period 1995–2016. We found a strong association between crime and poverty both in the short and long run. We recommend the government should focus on none income linked factors in dealing with the scourge of drug-related crime. As demonstrated in this study, various drug-related crimes are driven by socio-economic factors. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1534528 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1534528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1534528 Template-Type: ReDIF-Article 1.0 Author-Name: Fazlul Miah Author-X-Name-First: Fazlul Author-X-Name-Last: Miah Author-Name: Abdoul Wane Author-X-Name-First: Abdoul Author-X-Name-Last: Wane Title: Accuracy, unbiasedness, and efficiency of current account growth forecast: Evidence from a large cross section of developed and developing economies Abstract: We use a previously unexploited consensus survey data set to compare accuracy, unbiasedness and efficiency of Current Account growth forecasts between two panels of 25 developed and 18 developing countries following the methodologies in the existing literature. Forecast errors are bigger for the developing country comparing to the developed country. Developed country forecast errors are unbiased but inefficient. The developing country forecast errors are biased but relatively more efficient. In both the panels, forecast revisions are efficient for the same forecast horizons, but inefficient for the adjacent horizons. Additionally, we find less evidence of forecast smoothing compared to some earlier studies. Forecasters do improve their forecasts as the horizons become shorter although the forecasts fall short of being unbiased and efficient statistically. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1535234 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1535234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1535234 Template-Type: ReDIF-Article 1.0 Author-Name: Yrgalem Gebreslassie Adane Author-X-Name-First: Yrgalem Gebreslassie Author-X-Name-Last: Adane Author-Name: Tadesse Getacher Engida Author-X-Name-First: Tadesse Getacher Author-X-Name-Last: Engida Author-Name: Yitbarek Abrha Asfaw Author-X-Name-First: Yitbarek Abrha Author-X-Name-Last: Asfaw Author-Name: Hossein Azadi Author-X-Name-First: Hossein Author-X-Name-Last: Azadi Author-Name: Steven Van Passel Author-X-Name-First: Steven Van Author-X-Name-Last: Passel Title: Determinants of internal governance quality: Evidence from corporations in Ethiopia Abstract: The study analysed the factors that affect the internal governance quality of corporations in Ethiopia. It performed an ordered logistic regression analysis on a randomly selected sample of 76 corporations to analyse the effect of the ownership structure, form of ownership (private or government), leverage, corporate size, and sales growth on the internal governance quality score (IGQS). The governance quality score was measured using 20 indices categorized into four perspectives: disclosure, board characteristics, ethics, and shareholder rights. In this study, a significant positive effect of the corporate size and sales growth on the IGQS was found. In addition, government-owned corporations were found to perform better than privately owned corporations. It is recommended that appropriate authorities and officials should encourage the use of the corporate governance system in privately owned corporations and the convergence of internal governance quality of the two groups of corporations to the highest level. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1537051 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537051 Template-Type: ReDIF-Article 1.0 Author-Name: Shih-Wei Wu Author-X-Name-First: Shih-Wei Author-X-Name-Last: Wu Author-Name: Juli Dutta Author-X-Name-First: Juli Author-X-Name-Last: Dutta Author-Name: Chin-Yu Huang Author-X-Name-First: Chin-Yu Author-X-Name-Last: Huang Title: The systematic biases in decision-making in the mutual-fund markets: Market states and disposition effect Abstract: We have investigated the influence of investors’ expectation of future market trends on their trading and investment decisions in various market states. The efficiency of mutual-fund markets can be threatened by systematic biases in different decision-makings. Mutual-fund investors exhibit the disposition effect whereas neither type of investor exhibits such effect in the bear market. Stock-fund investors in the bull and neutral markets exhibit the disposition effect, whereas balanced-fund investors exhibit the disposition effect only in the neutral market. This study enables mutual-fund managers to plan cash holdings in the trading of various types of mutual funds and in various market states to respond to future fund investors’ fund redemption. Multiple regression analysis is conducted to verify whether stock-fund investors are prone to exhibit the disposition effect in various market states. Stock-fund investors exhibit a higher tendency toward the disposition effect than the balanced-fund investors. In addition, in the bear market the redemption rate for the stock-fund investors is higher than that for the balanced-fund investors that resulted in a high turnover rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1537538 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537538 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537538 Template-Type: ReDIF-Article 1.0 Author-Name: Isaac Kwesi Ofori Author-X-Name-First: Isaac Author-X-Name-Last: Kwesi Ofori Author-Name: Camara Kwasi Obeng Author-X-Name-First: Camara Kwasi Author-X-Name-Last: Obeng Author-Name: Mark Kojo Armah Author-X-Name-First: Mark Kojo Author-X-Name-Last: Armah Title: Exchange rate volatility and tax revenue: Evidence from Ghana Abstract: The need for the Ghanaian government to generate enough revenue for development is becoming increasingly crucial in this era of slow growth, growing unemployment and high debt. However, tax revenue performance over the years reveals an unstable pattern. One key factor that has been overlooked in the literature in terms of the determinants of tax revenue is exchange rate volatility. Coming from the background of volatility in Ghana’s exchange rate, could it be the reason for the instability in the trend of tax revenue? This question is the subject matter of this study. To estimate the effect of exchange rate volatility on tax revenue, the study employed the Auto Regressive Distributed Lag (ARDL) technique after the yearly exchange rate volatilities had been generated using the GARCH(1,1) method. The results of the study suggest that exchange rate volatility has a deleterious effect on tax revenue both in the short-run and long-run but the effect is more pronounced in the long-run than the short-run. The study recommends that the Bank of Ghana step-up its exchange rate stabilization efforts to reduce exchange rate risk imposed on international trade players. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1537822 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537822 Template-Type: ReDIF-Article 1.0 Author-Name: EA Ndaguba Author-X-Name-First: EA Author-X-Name-Last: Ndaguba Author-Name: Barry Hanyane Author-X-Name-First: Barry Author-X-Name-Last: Hanyane Title: Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas Abstract: This paper is the second paper in a series of papers on Community Economic Development Strategic Framework for Poverty Alleviation in Local Government with particular attention to the Raymond Mhlaba Local Municipality (RMLM). The objective of this paper is twofold: (i) to examine the rationale for community economic development in contemporary philosophy for poverty reduction and (ii) to develop an analytical framework for community economic development for alleviating poverty. It uses existing statistics and research data from Statistics South Africa and other indexes cushioned with over 100 research papers to generate data for this argument. Theme and narrative analysis were used to analyse the data for this paper. In conclusion, the paper demonstrated that for poverty to be alleviated—local investments, buying locally made products, patronising local shops and spaza shops, local regeneration, local reconversion, community linking, and building sustainable capital and market in communities are integral for the survival of any community that intends to be economical viable or sustainable. It recommends that one of the ways in which community viability or sustainability may be guaranteed is through regeneration/reconversion policy and a framework that articulates and harmonise sustainability issues and localisation challenges of communities in each locality. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1539942 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1539942 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1539942 Template-Type: ReDIF-Article 1.0 Author-Name: Kalugala Vidanalage Aruna Shantha Author-X-Name-First: Kalugala Vidanalage Aruna Author-X-Name-Last: Shantha Author-Name: Chen Xiaofang Author-X-Name-First: Chen Author-X-Name-Last: Xiaofang Author-Name: L.P.S. Gamini Author-X-Name-First: L.P.S. Author-X-Name-Last: Gamini Title: A conceptual framework on individual investors’ learning behavior in the context of stock trading: An integrated perspective Abstract: The objective of the paper is to introduce a conceptual framework for the study of learning behavior of an individual investor in the context of stock trading. It is developed based on the review of behavioral finance literature, and insights from cognitive, behavioral and social learning theories and related empirical evidence. The framework recognizes the investor as an entity that learns consciously and/or unconsciously for continually updating its perspectives underlying stock trading. The intentional or consciousness form of learning occurs as individual learning through reflection of past trading experiences whereas the learning happens unconsciously as social learning through inquiry and imitating the others’ behaviors. These learning processes are expected to be affected by interaction of various structures and processes, both internal and external to the investor, such as cognitive, affective, social and behavioral ones. Accordingly, the framework suggests five hypotheses to examine the determinants of these learning behaviors and to assess whether the investors learn over passage of time through the effects of these structures and processes. It promotes primary data-based behavioral finance empirical studies to track dynamics involved in learning, which could provide new insights on such behavior predicted by the adaptive market hypothesis. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1544062 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1544062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1544062 Template-Type: ReDIF-Article 1.0 Author-Name: Hamid Waqas Author-X-Name-First: Hamid Author-X-Name-Last: Waqas Author-Name: Rohani Md-Rus Author-X-Name-First: Rohani Author-X-Name-Last: Md-Rus Title: Predicting financial distress: Importance of accounting and firm-specific market variables for Pakistan’s listed firms Abstract: This study is intended to identify the predictors of financial distress for the Pakistani firms. Variables used are the financial ratios representing profitability, liquidity, leverage, and cash flows, as well as two important market factors which are size and idiosyncratic standard deviation of each firm’s stock returns (SIG). The sample consists of 290 firms stretching from 2007 to 2016 and logit regression is applied to predict financial distress. The findings reveal that profitability, liquidity, leverage, cash flow ratios, and firm size are significant, while SIG is insignificant in predicting financial distress. Results of the estimated logit model I, model II, and holdout model reveal that the models perform consistently. This study contributes to the literature by testing the market variables in relation to financial distress as these variables were ignored by the previous studies in Pakistan. Findings of this study are precise as the study covers a longer time horizon and a larger sample size. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1545739 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1545739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1545739 Template-Type: ReDIF-Article 1.0 Author-Name: Timothy O. Aluko Author-X-Name-First: Timothy O. Author-X-Name-Last: Aluko Author-Name: Paul Kibuuka Author-X-Name-First: Paul Author-X-Name-Last: Kibuuka Title: Effectiveness of the Co-operative Grant Incentive Scheme (CIS) on beneficiary firms’ job creation capacity in South Africa Abstract: This paper investigates the effect of Co-operative Incentive Scheme (CIS) on beneficiary firms’ job creation capacity and presents empirical evidence generated from operation of the CIS aimed at supporting co-operative enterprises in South Africa. The paired-sample t-tests were applied in determining the effectiveness of the CIS grant incentive programme by comparing employees before and after implementation of the programme. Two employment (job creation) models were formulated based on OLS regression models. Our results suggest that the CIS grant funding programme in South Africa has not effectively contributed to beneficiary firms’ employment capacity between the financial periods of 2011/2012 and 2015/2016 under study. We found that the amount approved made a significant contribution to the number of employment opportunities created in beneficiary firms. Within the same period, the beneficiary firms’ employment creation was lower with respect to the employment figure recorded by the beneficiaries’ firm at application. This may be due to overestimation of the employment figure that was recorded at application by the CIS beneficiary firm. This observation is consistent with other studies, which observed that beneficiary firms of grant incentives overstated their declared employment targets at application to influence their chances of benefiting from such grant schemes. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1545740 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1545740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1545740 Template-Type: ReDIF-Article 1.0 Author-Name: Varaidzo batsirai Shayanewako Author-X-Name-First: Varaidzo batsirai Author-X-Name-Last: Shayanewako Author-Name: Asrat Tsegaye Author-X-Name-First: Asrat Author-X-Name-Last: Tsegaye Title: The impact of interest rate spread on the banking system efficiency in South Africa Abstract: The banking industry is the engine of economic activities of the modern day financial systems. As such, banks play a very significant part in supporting economic growth through the efficient allocation of resources and risk diversification in an environment of optimal interest rate spread. Therefore, the understanding of the impact of interest rate spread on the banking system efficiency demands that an empirical inquiry of this nature be conducted. In this paper, we seek to empirically investigate the impact of interest rate spread on the banking system efficiency in South Africa for the period from 2000Q1 to 2017Q3 by employing the nonlinear autoregressive distributed lags framework. Evidence from this study suggests the presence of asymmetries in the interest rate spread behavior. Specifically, in the long run, we find a significant negative relationship between banking efficiency and a positive shock to interest rate spread. Furthermore, a negative shock to interest rate spread improves banking efficiency by about 0.3% in the long run. The results of this study further suggest that economic growth and real exchange rate are significant factors that positively influence the banking system efficiency and nonperforming loans retard the efficiency of the banking system in South Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1546417 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1546417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1546417 Template-Type: ReDIF-Article 1.0 Author-Name: Eissa A. Al-Homaidi Author-X-Name-First: Eissa A. Author-X-Name-Last: Al-Homaidi Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Najib H. S. Farhan Author-X-Name-First: Najib H. S. Author-X-Name-Last: Farhan Author-Name: Faozi A. Almaqtari Author-X-Name-First: Faozi A. Author-X-Name-Last: Almaqtari Title: Bank-specific and macro-economic determinants of profitability of Indian commercial banks: A panel data approach Abstract: This study aims at finding out the determinants of Indian commercial banks profitability. Profitability of Indian banks is measured by three important variables namely, Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM). The study also uses a set of independent variables such as bank-specific factors which include bank size, assets quality, capital adequacy, liquidity, operating efficiency, deposits, leverage, assets management and the number of branches. Pooled, fixed and random effects models and Generalized Method of Moments (GMM) are built on panel data of 10 years for more than 60 commercial banks of India.The study also takes into account Gross Domestic Product (GDP), inflation rate, interest rate and exchange rate as macroeconomic determinants. The results of the study show that all bank-specific factors, except the number of branches, exhibited significant impacts on profitability as measured by NIM. The findings also show that all macroeconomic determinants used in the study are found to be significant with negative impacts on Indian commercial banks profitability. Furthermore, the results show that bank size, number of branches, assets management ratio and leverage ratio are highly significant variables of profitability in the context of Indian commercial banks as measured by ROA. The results give a better insight into the Indian banking sector and the determinants of its profitability Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1548072 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1548072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1548072 Template-Type: ReDIF-Article 1.0 Author-Name: Yunsoo Choi Author-X-Name-First: Yunsoo Author-X-Name-Last: Choi Author-Name: Dohyeon Kim Author-X-Name-First: Dohyeon Author-X-Name-Last: Kim Title: The effects of investor types on investees’ performance: Focusing on the seed accelerator Abstract: Entrepreneurial firms in their early stages cannot finance their own capital sufficiently; hence, external investment is crucial for their survival. Angels, venture capital, and governmental support have played key roles in entrepreneurial financing. Accelerators, a new type of early-stage investor, have been rapidly growing in recent years, and have attracted strong attention. They provide financial support to entrepreneurial firms in their early stages along with mentorship, education, and networking services. However, the advantages of accelerators over existing funding avenues have yet to be proven. Therefore, this study analyzes the behavior and performance of accelerators, angels, and venture capital. We used 30,523 investment data regarding accelerators, angels, and venture capital from the CrunchBase database. By conducting multiple regression and survival analyses, we found that the performance of accelerators differs from that of venture capital, but is similar to that of angels. While accelerators’ investees perform well post funding, venture capitals’ investees perform well in terms of survivability. This study empirically verifies accelerator-related qualitative research. Additionally, we believe our results will contribute to future accelerator-related research and policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1550870 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1550870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1550870 Template-Type: ReDIF-Article 1.0 Author-Name: Ranjeeta Sadhwani Author-X-Name-First: Ranjeeta Author-X-Name-Last: Sadhwani Author-Name: Suresh Kumar Oad Rajput Author-X-Name-First: Suresh Kumar Author-X-Name-Last: Oad Rajput Author-Name: Ume Habibah Author-X-Name-First: Ume Author-X-Name-Last: Habibah Title: Do sentiment indices impact the premium of prominent pricing factors? Abstract: This study investigates whether Google Search Volume Indices (GSVIs) bring shifts in the expected return of prominent pricing factors in comparison to the Volatility Index (VIX). The results show that compared to VIX, GSVIs bring less significant changes in expected premium on Fama–French’s five-factors and q-factors. Pessimistic sentiment indices (Market Crash and Bear Market) predict more significant variation in the premium of prominent pricing factors than optimistic sentiment indices (Market Rally and Bull Market), and also have a significant correlation with VIX representing downside risk. Furthermore, the sentiment indices are better in predicting premium on five-factors than q-factors. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1550898 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1550898 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1550898 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1552821 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1552821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1552821 Template-Type: ReDIF-Article 1.0 Author-Name: Wuthiya Saraithong Author-X-Name-First: Wuthiya Author-X-Name-Last: Saraithong Title: Trade restriction rationale for food safety implementation: Evidence from Southeast Asian Countries Abstract: In response to the widespread use of food safety standards as a tool for restricting international trade, this study attempts to answer whether Southeast Asian countries follow this protectionist trend or not. It employs the political economy framework and focuses on the case of the implementation of maximum residue limits (MRLs) on 113 food products which these countries import from their trading partners. The study utilizes the logit model and marginal effects to find the determinants of MRLs implementation. The estimation includes both the seven-countries and the single-country models. As for the former, the result indicates that Southeast Asian countries simultaneously use MRLs both to raise people’s quality of life via food safety implementation and to protect import-competing producers. On the other hand, each single-country model provides a clearer picture of the reasons for its enforcement of MRLs; one is with trade restriction motive, while the others are with welfare improving purpose. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1553278 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1553278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1553278 Template-Type: ReDIF-Article 1.0 Author-Name: Sibanjan Mishra Author-X-Name-First: Sibanjan Author-X-Name-Last: Mishra Author-Name: Soumya G. Deb Author-X-Name-First: Soumya G. Author-X-Name-Last: Deb Title: Predictors of firm growth in India: An exploratory analysis using accounting information Abstract: This paper aims at identifying relevant financial factors which critically affects firm revenue growth. We specifically focus on the dynamic nature of such factors across up or down-market cycles and also for different scales and size of business. The study uses annual data of 17 accounting and financial variables for a sample of 1,450 Indian firms which exist continuously between 2003 and 2014 and generate a framework for identification of critical factors which affect firm revenue growth. We employ a variable reduction technique via principal component analysis (PCA), and then use the “principal factors” identified thereon, in a logistic regression approach to develop such a framework. The study finds efficiency in management of current assets and capital (both short- and long-term) to be the most critical factors, determining the firm revenue growth in Indian context. The relative importance of capital deployment efficiency is more for small firms than for large firms whereas asset management efficiency is the most critical factor in larger firms. Long-term solvency supersedes all other factors during market downturns. These findings may have important implications for firms and its stakeholders as a priori knowledge on the importance of critical factors regarding firm’s revenue growth could enable the mangers to support them in their decision-making process. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1553571 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1553571 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1553571 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Dery Nyeadi Author-X-Name-First: Joseph Dery Author-X-Name-Last: Nyeadi Author-Name: Yakubu Awudu Sare Author-X-Name-First: Yakubu Awudu Author-X-Name-Last: Sare Author-Name: Godfred Aawaar Author-X-Name-First: Godfred Author-X-Name-Last: Aawaar Title: Determinants of working capital requirement in listed firms: Empirical evidence using a dynamic system GMM Abstract: Working capital management is a critical element in the survival of every firm. While the effective management of working capital leads to value creation in firms, ineffective management of working capital, on the other hand, does not only destroy value but can lead to the eventual solvency of the firm. The search for the factors that influence working capital management has, therefore, become a worthwhile exercise embarked upon by both managers and scholars. The main aim of this study is thus to empirically investigate the determinants of working capital requirement on the listed firms in Ghana. In examining the determinants of working capital requirements, 28 firms listed on the Ghana Stock Exchange were used for a time period of 8 years, spanning from 2007 to 2014. The study employed a dynamic panel system of General Methods of Moments (GMM) to test the hypotheses. This estimator has the ability to produce consistent and unbiased results when even there is an endogeneity in the model. This, therefore, makes our results more efficient and reliable. First, the study suggests that working capital in Ghanaian firms is determined by profitability, age, sales growth, GDP growth, operating cycles and leverage. Second, it is realized that while age, profitability and operating cycle strongly impacts positively on working capital, GDP growth, sales growth and leverage inversely correlate with working capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1558713 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1558713 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1558713 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmed Imran Hunjra Author-X-Name-First: Ahmed Imran Author-X-Name-Last: Hunjra Title: Mediating role of dividend policy among its determinants and organizational financial performance Abstract: The mediating mechanism of dividend policy remained untapped between financial performance, uncertainty, corporate social responsibility (CSR) and stakeholders’ interest. However, this study contributes to the body of knowledge and discovers the mediating role of dividend policy between financial performance, uncertainty, CSR and stakeholders’ interest. Data is collected through a questionnaire from CFO’s/financial managers of Pakistani corporate sector. Structural Equation Modeling (SEM) is used to analyze the results through AMOS. Uncertainty, CSR, and stakeholders’ interests have a significant impact on financial performance. It is found partial mediation between uncertainty and financial performance whereas dividend policy fully mediates the CSR, stakeholders’ interest and financial performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1558714 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1558714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1558714 Template-Type: ReDIF-Article 1.0 Author-Name: Atanas Sixpence Author-X-Name-First: Atanas Author-X-Name-Last: Sixpence Author-Name: Olufemi Patrick Adeyeye Author-X-Name-First: Olufemi Patrick Author-X-Name-Last: Adeyeye Title: Perception of negative earnings persistence and value relevance: Evidence from Zimbabwe Abstract: This paper investigates the impact of negative earnings persistence on the value relevance of earnings before interest and taxes (EBIT) and book values for 27 non-financial firms listed on the Zimbabwe Stock Exchange (ZSE). Negative earnings are perceived to be persistent where firms reported losses in at least 25% of the time over the eight-year study period. Two-step System GMM was used, with the average debt-equity ratio and net asset value per share being additional regression instruments. The regressions were primarily done on the ZSE full sample, and then on a profit-reporting firms’ sample. The loss-reporting firms’ sample was too small for meaningful regressions. It was found that when loss-firms were removed from the sample, value relevance of EBIT and book value declined. This means that investors are very meticulous with firms they perceive to be persistent loss-makers but tend to be complacent with profit-firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1559711 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1559711 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1559711 Template-Type: ReDIF-Article 1.0 Author-Name: Hiroshi Ito Author-X-Name-First: Hiroshi Author-X-Name-Last: Ito Author-Name: Ryosuke Sekiguchi Author-X-Name-First: Ryosuke Author-X-Name-Last: Sekiguchi Author-Name: Toshiyuki Yamawake Author-X-Name-First: Toshiyuki Author-X-Name-Last: Yamawake Title: Debt swaps for financing education: Exploration of new funding resources Abstract: As an innovative financial mechanism to explore additional funds for social development programs in developing countries, debt swaps for development, including debt-for-education swaps, became popular between the 1980s and 2000s. Their popularity, however, seems to have diminished since the beginning of the 2010s. This article describes debt swaps for development with a focus on debt-for-education swaps, explaining how they became popular, examining why they have lost momentum, and exploring whether debt-for-education swaps are a feasible option for funding social development programs. Despite recent economic recovery and growth worldwide, one of the key obstacles for achieving the United Nations’ Sustainable Development Goal 4—to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all—remains inefficient funding for education programs in developing countries. Based on the findings, this article argues for the feasibility of debt-for-education swaps to seek funding with a number of conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1563025 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1563025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1563025 Template-Type: ReDIF-Article 1.0 Author-Name: Xiangsheng Dou Author-X-Name-First: Xiangsheng Author-X-Name-Last: Dou Title: The determinants of money demand in China Abstract: Money demand and its stability have a great impact on the economy of a country. Because China’s financial and monetary system has been in reform, there are many uncertainties in money demand. Especially, China’s money demand has its own particularity. This paper studies the determinants of China’s money demand through building a linear econometric model and SVAR model. The empirical results show that China’s money demand is mainly decided by income, interest rate and expected inflation rate. However, other factors, such as financial innovation, government debt, capital mobility and currency substitution, play a relatively small role, mainly because China’s financial and monetary system has been under reform. The regression results of sample data from different periods show that money demand in China is unstable, indicating that China’s macro-economy has certain risks. This finding suggests that China should adopt prudent financial and monetary policies to cope with the uncertainty of money demand in the future. Journal: Cogent Economics & Finance Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/23322039.2018.1564422 File-URL: http://hdl.handle.net/10.1080/23322039.2018.1564422 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1564422 Template-Type: ReDIF-Article 1.0 Author-Name: Modisane B. Seitshiro Author-X-Name-First: Modisane B. Author-X-Name-Last: Seitshiro Author-Name: Hopolang P. Mashele Author-X-Name-First: Hopolang P. Author-X-Name-Last: Mashele Author-Name: Stephanos Papadamou Author-X-Name-First: Stephanos Author-X-Name-Last: Papadamou Title: Assessment of model risk due to the use of an inappropriate parameter estimator Abstract: The purpose of this study is to assess model risk with respect to parameter estimation for a simple binary logistic regression model applied as a predictive model. The assessment is done by comparing the effectiveness of eleven different parameter estimation methods. The results from the historical credit dataset of a certain financial institution confirmed that using several optimization methods to address parameter estimation risk for predictive models is substantial. This is the case, especially when there exists a numerical optimization method that estimates the optimum parameters and minimizes the cost function among alternative methods. Our study only considers a univariate predictor with a static sample size of cases. This research work contributes to the literature by presenting different parameter estimation methods for predicting the probability of default through binary logistic regression model and determining optimum parameters that minimize the objective model’s cost function. The Mini-Batch Gradient Descent method is revealed to be the better parameter estimator. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2019.1710970 File-URL: http://hdl.handle.net/10.1080/23322039.2019.1710970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1710970 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Rahman Author-X-Name-First: Abdul Author-X-Name-Last: Rahman Author-Name: Muhammad Arshad Khan Author-X-Name-First: Muhammad Arshad Author-X-Name-Last: Khan Author-Name: Lanouar Charfeddine Author-X-Name-First: Lanouar Author-X-Name-Last: Charfeddine Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial development–economic growth nexus in Pakistan: new evidence from the Markov switching model Abstract: This paper investigates the impact of financial development on economic growth in Pakistan using the Markov Switching Model over the period 1980–2017. The results based on two-state Markov switching model confirm the Schumpeter’s view that finance spurs growth. The result reveals that financial development augments economic growth in both high and low economic growth regimes in Pakistan. However, the impact of financial development on economic growth is found to be relatively higher in the high-growth regime. This implies that economic growth responds differently to financial development in low-growth and high-growth regimes. Among the control variables, trade openness and government expenditures impact economic growth positively, while labour force exerts a negative impact on economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1716446 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1716446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1716446 Template-Type: ReDIF-Article 1.0 Author-Name: Balagopal Gopalakrishnan Author-X-Name-First: Balagopal Author-X-Name-Last: Gopalakrishnan Author-Name: Sanket Mohapatra Author-X-Name-First: Sanket Author-X-Name-Last: Mohapatra Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The effects of reporting standards and information sharing on loan contracting: Cross-country evidence Abstract: Institutional factors that enhance the quality of financial reporting and sharing of credit information can alleviate informational gaps between contracting parties and improve loan contract terms. Using cross-country data on syndicated loans, we find that the cost of debt financing is lower for riskier borrowers in countries with stronger reporting standards and improved credit information sharing. We also find that information quality is more important as compared to information sharing for loan pricing. Both of these effects are larger during periods of higher economic policy uncertainty when information asymmetry is likely to be higher. Our findings suggest that better availability of hard information plays a positive role in reducing borrowing costs of riskier firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1716920 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1716920 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1716920 Template-Type: ReDIF-Article 1.0 Author-Name: Ambreen Khursheed Author-X-Name-First: Ambreen Author-X-Name-Last: Khursheed Author-Name: Muhammad Naeem Author-X-Name-First: Muhammad Author-X-Name-Last: Naeem Author-Name: Sheraz Ahmed Author-X-Name-First: Sheraz Author-X-Name-Last: Ahmed Author-Name: Faisal Mustafa Author-X-Name-First: Faisal Author-X-Name-Last: Mustafa Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Adaptive market hypothesis: An empirical analysis of time –varying market efficiency of cryptocurrencies Abstract: This study examines the adaptive market hypothesis (AMH) in relation to time-varying market efficiency by using three tests, namely Generalized Spectral (GS), Dominguez-Lobato (DL) and the automatic portmanteau test (AP) test on four-digital currencies; Bitcoin, Monaro, Litecoin, and Steller over the sample period of 2014–2018. The study applies Jarque-Bera test, ADF test, Ljung-Box statistics and ARCH-LM test for testing normality of returns, stationarity of series, serial correlation and volatility clustering in returns and squared returns of selected cryptocurrencies. Further, the study adopts an extremely important category of martingale difference hypothesis (MDH), which uses non-linear methods of dependencies for identifying changing linear and non-linear dependence in the price movement of currencies. The results indicate that price movements with linear and nonlinear dependences varies over time. Our tests also reveal that Bitcoin, Monaro and Litecoin have the longest efficiency periods. While Steller shows the longest inefficient market period. In view of varying market conditions, the results indicate that different market periods have significant impact on prices fluctuations of cryptocurrencies. Therefore, our findings suggest implementing the adaptive market hypothesis (AMH) as predicting changes in cryptocurrency prices over time must consider the time-varying market conditions for efficient forecasting. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1719574 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1719574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1719574 Template-Type: ReDIF-Article 1.0 Author-Name: Bismark Addai Author-X-Name-First: Bismark Author-X-Name-Last: Addai Author-Name: Adjei Gyamfi Gyimah Author-X-Name-First: Adjei Gyamfi Author-X-Name-Last: Gyimah Author-Name: Kwadwo Poku-Agyemang Author-X-Name-First: Kwadwo Author-X-Name-Last: Poku-Agyemang Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Exchange rate regimes and global cocoa trade: to float or to peg? Abstract: The effectiveness of different exchange rate systems continues to attract the attention of many scholars, however, most discussions on exchange rate regimes have focused on how the phenomenon affects economic growth, economic stability, financial crises, international tourism, and international trade in general. In this study, we explore the effect of exchange rate regimes that has so far escaped the attention of many scholars in the exchange rate literature, the effect of exchange rate regimes on global cocoa trade. STATA statistical tool was employed in analyzing panel data from 10 leading cocoa-producing countries from 1980 to 2016. With the justification of the Hausman test, the fixed effects estimation method was used. The main effect observed was that countries suffered a statistically significant negative effect on net exports if they pegged their currencies to the Euro, but countries with floating exchange rates regimes do not suffer that effect. Therefore, this study recommends that countries adopt a more flexible exchange rate system, particularly if they are exporters of agricultural raw materials and products. Most cocoa-producing countries grow cocoa as a cash crop, thus, rely heavily on the trade of cocoa beans and other product. Therefore, it would be counterintuitive to have all the profits from the trade of cocoa to be wiped out by the rigidity of an exchange rate regime. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1719593 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1719593 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1719593 Template-Type: ReDIF-Article 1.0 Author-Name: Rakesh Kumar Sharma Author-X-Name-First: Rakesh Kumar Author-X-Name-Last: Sharma Author-Name: Apurva Bakshi Author-X-Name-First: Apurva Author-X-Name-Last: Bakshi Author-Name: Sheena Chhabra Author-X-Name-First: Sheena Author-X-Name-Last: Chhabra Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of behaviour of working capital requirements of BSE listed companies: An empirical study using co-integration techniques and generalised method of moments Abstract: The paper investigates the determinants of working capital to forecast the future requirement of working capital of BSE-listed top 150 companies in India. The study is conducted by collecting the data of 150 top-performing BSE listed companies for the time period of 2009–2017. The ten firm-level explanatory variables and one dummy variable to characterize the nature of business i.e. manufacturing and service sector companies are used to discover the significant determinants of gross and net working capital of selected companies. The four alternative methods are used to verify and validate the results obtained from each other viz. Ordinary Least Square (OLS), fully modified OLS (FMOLS), dynamic OLS (DOLS) and generalized methods of moments (GMM). The empirical findings of four different methods indicate that tangibility, leverage, nature of business and board size are observed as significant factors to forecast the future requirements of net working capital. Return on common equity (ROCE), board size; indicate the positive association with gross working capital. On the other hand, tangibility, nature of business and size of the firm show a negative relationship with gross working capital requirements. The findings from different methods have resulted in similar significant determinants to predict the future requirement of the net and gross working capital. The outcome of the study will be useful for management authorities for maintaining the optimum level of working capital and to forecast future requirements of working capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1720893 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1720893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1720893 Template-Type: ReDIF-Article 1.0 Author-Name: Adams Sorekuong Yakubu Adama Author-X-Name-First: Adams Sorekuong Yakubu Author-X-Name-Last: Adama Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial contracting and misreporting with limited enforcement, firm financing and growth Abstract: This article employs a dynamic stochastic general equilibrium framework to examine asymmetric information and limited contract enforcement in financial markets, where firms have access to both internal and external sources of finance. It considers limited enforcement of financial contract in the form of firm’s ability to misreport and default on output when it is still solvent, that is, a form of institutional weaknesses in holding defaulters to account. The model shows how institutional weakness in the form of limited enforceability of financial contracts affects fluctuations in key macroeconomic variables such as output, employment and investment via its impact on interest rates, risk premium, default risk and leverage. The findings show that limited contract enforcement amplifies the effects of shocks and lower small firm funding. The sensitivity analysis shows that weak contract enforcement affects firm growth and also leads to welfare losses to the society. This study is relevant for developing countries, where there is often poor quality of institutions and the paper suggests that improving such quality has the potential to improve the prospects of such countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1723826 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723826 Template-Type: ReDIF-Article 1.0 Author-Name: Gurmeet Singh Author-X-Name-First: Gurmeet Author-X-Name-Last: Singh Author-Name: Lakshmi Padmakumari Author-X-Name-First: Lakshmi Author-X-Name-Last: Padmakumari Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Stock market reaction to inflation announcement in the Indian stock market: A sectoral analysis Abstract: This study investigates the reaction of stock returns to the inflation announcement using time series data from 2012 to 2018. To check the market efficiency or semi-strong efficiency of the Indian Stock Market for inflation announcement, we have used an event study methodology. We selected nine events based on consensus estimate and actual inflation number; we put events into subgroups based on over-estimation, under-estimation, and accurate estimation. We performed an event study on inflation-sensitive sectors such as Banking, Energy, Realty, Service, and FMCG. To check for the above objectives, we calculated Average Abnormal Return (AAR), Cumulative Abnormal Return (CAR), and Cumulative Average Abnormal Return (CAAR). The finding of the study suggests that there are considerable abnormal returns, which are a function of the sector and the regime. Some sectors are more sensitive to inflation announcements, and some regimes are again more sensitive to inflation announcements. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1723827 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723827 Template-Type: ReDIF-Article 1.0 Author-Name: Japhet Osazefua Imhanzenobe Author-X-Name-First: Japhet Author-X-Name-Last: Osazefua Imhanzenobe Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Managers’ financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most? Abstract: The study aims to identify which aspects of financial practices of managers need to be given priority in achieving a turnaround in the financial sustainability of these manufacturing companies across long-term returns, sustainable growth and financial distress. Currently, the Nigerian manufacturing sector experiences a decline in financial sustainability, thus forcing financially unsustainable companies out of business. Financial practices that improve the long-term financial position and performance need to be implemented. These financial practices can be measured across short-term profitability, efficiency, liquidity and solvency. Some studies have considered sustainability from a financial perspective using one or two measures but very few focus on the Nigerian manufacturing sector. This study fills these gaps by investigating the impact of financial practices on financial sustainability across these measures. Panel dataset for 17 companies from 2008 to 2016 was collected and analysed using the correlation matrix and random effect model. All regressors were significant in explaining financial distress. However, only short-term profitability and efficiency ratios were consistently significant across all three models, thus indicating the superiority of financial practices that affect short-term profits and efficiency. The study recommends that companies should implement financial policies that address periodic costs and productivity while maximizing marketing efforts simultaneously. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1724241 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1724241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1724241 Template-Type: ReDIF-Article 1.0 Author-Name: Jalaj Pathak Author-X-Name-First: Jalaj Author-X-Name-Last: Pathak Author-Name: Soumya G. Deb Author-X-Name-First: Soumya G. Author-X-Name-Last: Deb Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Stylized patterns in implied volatility indices and stock market returns: A cross country analysis across developed and emerging markets Abstract: Purpose: This paper examines the associative and causal relationship between changes in the implied volatility index (VIX) and stock market returns, with data from 15 countries representing both developed and emerging economies.1 We also examine the dynamic variation, if any in the nature of the relationship across bull and bear market swings in these markets. Design/Methodology/Approach: We use daily time series data between January 2013 to July 2019, on VIX and stock index from these countries and employ regression and causality models to explore the nature of the relationship between VIX and stock market movements. We also explore differential patterns, if any, across the countries and bull and bear market cycles in each of these countries. We substantiate our results from the main analysis using a series of robustness tests. Findings: For most countries, we find strong evidence of a negative and asymmetric relationship between the stock market and VIX movement, irrespective of the bear and bull market cycles. We also find that this relation is asymmetric in nature i.e. volatility spikes are more in market downturns than during market upswings. We find strong evidence of the “leverage hypothesis” explaining this asymmetric relation for all countries across all market cycles. We also find weak evidence of reverse causality i.e VIX changes to market movements as per the “volatility feedback hypothesis” holding during bear periods only in developed countries. We suspect that two important pre-conditions of volatility feedback hypothesis to hold, namely volatility persistence and contemporaneous positive volatility return relation might not be holding. We do not find any significant changes in these patterns across bull and bear market cycles. Value: These results indicate that investors can effectively use signals imminent in VIX movements, to determine potential entry and exit points both in emerging as well as developed markets. This should provide them an additional tool in addition to standard analysis approaches before allocating resources in a particular market. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1723185 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723185 Template-Type: ReDIF-Article 1.0 Author-Name: Sulemana Mahawiya Author-X-Name-First: Sulemana Author-X-Name-Last: Mahawiya Author-Name: Abraham Haim Author-X-Name-First: Abraham Author-X-Name-Last: Haim Author-Name: Oteng-Abayie Eric Fosu Author-X-Name-First: Oteng-Abayie Author-X-Name-Last: Eric Fosu Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: In search of inflation limits for financial sector development in ECOWAS and SADC regions: A panel smooth transition analysis Abstract: This study investigates a comparative study on the threshold effects of inflation on financial sector development (FSD) between the Economic Community of West African States (ECOWAS) and the Southern Africa Development Community (SADC) for the period 1980–2011. Using a novel panel smooth transition regression, our results suggest evidence of the existence of a robust single threshold of inflation in both regions. Particularly, it indicates 17.9% and 14.5% of inflation for ECOWAS and SADC, respectively, suggesting that inflation above these thresholds presents detrimental effects for financial development in both regions. The study therefore concludes that price stability policies with inflation targeting framework should be the primary objective in monetary policy since high inflation is economically costly to financial development in the two regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1722306 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1722306 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1722306 Template-Type: ReDIF-Article 1.0 Author-Name: Piyush Kumar Singh Author-X-Name-First: Piyush Kumar Author-X-Name-Last: Singh Author-Name: Keyur Thaker Author-X-Name-First: Keyur Author-X-Name-Last: Thaker Author-Name: Vassilios Papavassiliou Author-X-Name-First: Vassilios Author-X-Name-Last: Papavassiliou Title: Profit efficiency and determinants of Indian banks; A truncated bootstrap and data envelopment analysis Abstract: The study applies two-stage data envelopment analysis (DEA) and bootstrap to estimate the Profit Efficiency (PE) and its factors for Indian bank groups. Recognizing the heterogeneity in the bank sizes, we perform DEA to estimate PE for small, medium, and large banks across different ownership. The results show that large public, private, and foreign sector banks are more profit efficient than small and medium banks. Over the period, private banks showed the highest improvement in efficiency, followed by foreign banks while the efficiency of Public sector banks was highest in 2008 showed imporvement for next few years and declined moderately in 2012. In the second stage, we use both normal Tobit and methodogically superior truncated bootstrap regression to capture the exogenous factors affecting the PE. We find GDP growth rate and capital adequacy ratio were not significant, while return on assets, equity-to-asset ratio, size of the operation, number of branches, Herfindahl-Hirschman Index(HHI), and ownership structure are significant determinants of bank efficiency. The study contributes to the literature by introducing sample variation and bias in examining the determinants and comparison of efficiency scores across bank groups and using a more appropriate measure in Indian contest. The new findings have vital implications for the banking industry and resarchers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1724242 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1724242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1724242 Template-Type: ReDIF-Article 1.0 Author-Name: Gil Cohen Author-X-Name-First: Gil Author-X-Name-Last: Cohen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Algorithmic setups for trading popular U.S. ETFs Abstract: In this research, we test whether common trading oscillators can outperform the buy-and-hold strategy (B&H) using six popular ETFs for the period of the last 20 years. We use the original setups of those oscillators and also other setups or oscillators combinations in order to achieve the best past performances. We found that the Relative Strength Index (RSI) combined with Chaikin Money Flow (CMF) gained positive returns for all examined ETFs and also outperformed by 79% the corresponding buy-and-hold strategy for the XLF. The Commodity Channel Index (CCI) and Bollinger Bands (BB) were found to be the best technical tools for trading the examined ETFs. While the CCI performs better for the more volatile ETFs (XLF and XLK), the BB was superior for trading IWM and XLI which are less volatile. We also recommend the CCI strategy for trading the SPY. No technical tools were found to be more effective than B&H strategy for the QQQ. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1720056 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1720056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1720056 Template-Type: ReDIF-Article 1.0 Author-Name: Devendra Kumar Jain Author-X-Name-First: Devendra Kumar Author-X-Name-Last: Jain Author-Name: Rup Singh Author-X-Name-First: Rup Author-X-Name-Last: Singh Author-Name: Arvind Patel Author-X-Name-First: Arvind Author-X-Name-Last: Patel Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Mapping of sovereign risks in small island economies: An application of contingent claim approach to fiji Abstract: While a decline in the market value of sovereign assets (below a benchmark level of liabilities) can trigger sovereign distress/default risk, volatility in sovereign assets can increase the risk premium on domestic debt and credit spread on external debt. These can escalate the probability of debt default. Therefore, measuring the probability and distance to debt distress associated with sovereign positions is important for assessing the macro-financial risks of an aggregate economy. This paper presents an application of the Contingent Claim Approach (CCA) for measuring the implied asset value and its volatility for the case of Fiji. The CCA captures non-linear changes to sovereign assets and liabilities that are hardly captured by other macroeconomic variables. Our consistent empirical findings indicate no sovereign debt distress for Fiji. Unavailability of partial data on the certain composition of sovereign assets and liabilities is a limitation, but our results are consistent and useful guide to debt policy in Fiji. It is also useful for future research on debt sustainability in other similar smaller developing economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1727158 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1727158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1727158 Template-Type: ReDIF-Article 1.0 Author-Name: Santosh Shrivastava Author-X-Name-First: Santosh Author-X-Name-Last: Shrivastava Author-Name: P Mary Jeyanthi Author-X-Name-First: P Mary Author-X-Name-Last: Jeyanthi Author-Name: Sarbjit Singh Author-X-Name-First: Sarbjit Author-X-Name-Last: Singh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Failure prediction of Indian Banks using SMOTE, Lasso regression, bagging and boosting Abstract: Banks have a vital role in the financial system and its survival is crucial for the stability of the economy. This research paper attempts to create an efficient and appropriate predictive model using a machine learning approach for an early warning system of bank failure. This paper uses data collected for failed and survived public and private sector banks for the period of 2000–2017 located in India. Bank-specific variables as well as macroeconomic and market structure variables have been used to identify the stress level for banks. Since the number of failed banks in India is very less in comparison to surviving banks, the problem of imbalanced data arises and most of the machine learning algorithms do not work very well with such data. This paper uses a novel approach Synthetic Minority Oversampling Technique (SMOTE) to convert imbalanced data in a balanced form. Lasso regression is used to reduce the redundant features from the failure predictive model. To avoid the bias and over-fitting in the models, random forest and AdaBoost techniques are applied and compared with the logistic regression to get the best predictive model. The result of the study holds its application to various stakeholders like shareholders, lenders and borrowers etc. to measure the financial stress of banks. This study offers an analytical approach ranging from the selection of the most significant bank failure specific indicators using lasso regression, converting data from imbalanced to balanced form using SMOTE and the choice of the appropriate machine learning techniques to predict the failure of the bank. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1729569 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1729569 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1729569 Template-Type: ReDIF-Article 1.0 Author-Name: Rabson Magweva Author-X-Name-First: Rabson Author-X-Name-Last: Magweva Author-Name: Mabutho Sibanda Author-X-Name-First: Mabutho Author-X-Name-Last: Sibanda Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Inflation and infrastructure sector returns in emerging markets—panel ARDL approach Abstract: This study evaluated the relationship between inflation and infrastructure sector stock returns in emerging markets in the long and short run. It employed a panel autoregressive distributed lag (PARDL) model applying the mean group (MG), pooled mean group (PMG) and dynamic fixed effects (DFE) estimators after preliminary cross-sectional dependence and stationarity tests. The results from the three estimators were insignificant in both the short and long run, illustrating the inability of infrastructure sector returns in emerging markets to hedge inflation. Similar results were obtained when the inflation-hedging capacity of real estate and general listed equity was assessed. This suggests the existence of significant beta risk in emerging stock markets. The results imply that investors interested in hedging inflation in emerging markets should go beyond individual asset classes and embrace the portfolio optimization concept to reduce inflation risk. Given the heterogenic nature of the infrastructure sector, a deeper analysis that focuses on infrastructure sector sub-categories might be fruitful as the pricing power is heterogeneous across these sub-sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1730078 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1730078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730078 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Hasnain Abbas Naqvi Author-X-Name-First: Muhammad Hasnain Abbas Author-X-Name-Last: Naqvi Author-Name: Yushi Jiang Author-X-Name-First: Yushi Author-X-Name-Last: Jiang Author-Name: Miao Miao Author-X-Name-First: Miao Author-X-Name-Last: Miao Author-Name: Mishal Hasnain Naqvi Author-X-Name-First: Mishal Hasnain Author-X-Name-Last: Naqvi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Linking biopsychosocial indicators with financial risk tolerance and satisfaction through macroeconomic literacy: A structural equation modeling approach Abstract: The purpose of the current research was to analyze the impact of biopsychosocial indicators on the financial risk tolerance (FRT) and financial satisfaction along with the mediating role of macroeconomic literacy in these associations. For this purpose, three indicators names as “personality type, self-esteem, and sensation seeking” were used to check the impact of biopsychosocial indicators on FRT and financial satisfaction. The current study was conducted in China where the data was collected from retail investors through structured questionnaire. The purposive sampling technique was used to decide the sample from the population. The data were collected from 1134 retail investors and SPSS and AMOS were used to analyze the data by applying SEM. Findings of the current study revealed that the personality, self-esteem and sensation seeking have significant influences on FRT. It has been further found that the personality type and self-esteem have significant influences on the financial satisfaction. Results further confirmed the mediating role of macroeconomic literacy between self-esteem and FRT, personality type and FRT, self-esteem and financial satisfaction, and personality type and financial satisfaction. However, no significant mediating role of macroeconomic literacy was found between sensation seeking and FRT, and sensation seeking and financial satisfaction. The current study and findings will be of great importance for theory and practice regarding financial/investment decision making and FRT. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1730079 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1730079 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730079 Template-Type: ReDIF-Article 1.0 Author-Name: Sayed Irshad Hussain Author-X-Name-First: Sayed Irshad Author-X-Name-Last: Hussain Author-Name: Akhtar Hussain Author-X-Name-First: Akhtar Author-X-Name-Last: Hussain Author-Name: Muhammad Mehboob Alam Author-X-Name-First: Muhammad Mehboob Author-X-Name-Last: Alam Author-Name: Professor Caroline Elliott Author-X-Name-First: Professor Caroline Author-X-Name-Last: Elliott Title: Determinants of export supply in Pakistan: A sector wise disaggregated analysis Abstract: This study aims to investigate the impact of supply-side factors on the export performance of Pakistan at a disaggregated level. It has identified major export categories of Pakistan and constructed a novel time-series data set of each of these categories from 1971 to 2014. Using autoregressive distributed lag (ARDL) model (bound testing), the sectoral focus confirms that major export categories respond differently to changes in various factors of export supply in the long-run. For instance, the relative prices have a larger impact on the export performance of raw materials and value-added manufactured products. Similarly, the cost of production has higher effects on the growth of value-added manufactured and cotton waste exports. On the contrary, production capacity and domestic demand pressure have significantly influenced the export supply almost all manufactured and primary export categories in the long-run. In the short-run, the relative price, cost of production, and production capacity showed mixed effects for the export supply of many primary and manufactured export categories while domestic demand pressure hypothesis is valid in most cases. The study concludes that the factors determining the export supply are changing across the export categories. Hence, it is suggested that the government must revisit the export policy and make the new policy in line with new sectorial realities in order to expand the export sector of the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1732072 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1732072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1732072 Template-Type: ReDIF-Article 1.0 Author-Name: Nam Hoai Tran Author-X-Name-First: Nam Hoai Author-X-Name-Last: Tran Author-Name: Chi Dat Le Author-X-Name-First: Chi Dat Author-X-Name-Last: Le Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Ownership concentration, corporate risk-taking and performance: Evidence from Vietnamese listed firms Abstract: This study examines the associations of corporate governance with firm risk-taking and performance in a typical frontier equity market characterized by high ownership concentration and weak investor protection. Using an extensive sample of Vietnamese listed firms, we find (1) no relation between ownership concentration and firm profitability, but a non-linear relation between ownership concentration and firm valuation; and (2) that concentrated ownership increases the riskiness of accounting performance; however, there is no evidence of the linkage between concentration and the riskiness of market performance. Ultimately, our findings confirm essential differences in using the two alternatives of performance measurement. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1732640 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1732640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1732640 Template-Type: ReDIF-Article 1.0 Author-Name: Kunal Saha Author-X-Name-First: Kunal Author-X-Name-Last: Saha Author-Name: Vinodh Madhavan Author-X-Name-First: Vinodh Author-X-Name-Last: Madhavan Author-Name: Chandrashekhar G. R. Author-X-Name-First: Chandrashekhar Author-X-Name-Last: G. R. Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Pitfalls in long memory research Abstract: This paper offers a multifaceted perspective of the literature on long memory. Although the research on long memory has played an instrumental role in elevating the level of scholarly discourse on market efficiency, the authors believe that the issue of the prevalence of long memory or lack thereof remains unsettled. While long memory models should be in the econometrician’s toolbox, their use should be governed by an initial exploratory analysis of the data being studied and the context of the research questions being addressed. Mere fixation on the presence/absence of long memory without taking due cognisance of other confounding factors would pave way for confirmation bias. Consequently, this paper pinpoints the possible pitfalls and potential trade-offs in modeling long memory in asset prices. While not a comprehensive meta-analysis of the literature on long memory, this paper offers a selective bibliography of prior works on long memory that is geared to nudge researchers to exercise caution and judgement while exploring long memory in asset prices. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1733280 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1733280 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1733280 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Moueed Author-X-Name-First: Abdul Author-X-Name-Last: Moueed Author-Name: Ahmed Imran Hunjra Author-X-Name-First: Ahmed Imran Author-X-Name-Last: Hunjra Author-Name: Zhaojun Yang Author-X-Name-First: Zhaojun Author-X-Name-Last: Yang Title: Use anger to guide your stock market decision-making: results from Pakistan Abstract: We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the instrument and structural equation model for hypothesis testing. We find that psychological and social factors play a significant role in investors’ decision-making. Specifically, anger, fear and a positive mood positively affect investors’ decision-making whereas stress, social interaction and herding produce negative effects. Furthermore, risk perception plays a mediating role between psychological factors, social factors and the investment decision. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1733279 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1733279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1733279 Template-Type: ReDIF-Article 1.0 Author-Name: Dung Viet Tran Author-X-Name-First: Dung Viet Author-X-Name-Last: Tran Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Funding liquidity and bank lending Abstract: We investigate how funding liquidity affects the bank lending using a large sample of US bank holding companies. We document a consistent evidence of a lower loan growth for banks that rely more on deposits. The quantile regressions which dissect the lending behavior of banks at the right tail of loan growth distribution point out the leveraged effect of funding liquidity is larger in high-loan-growth banks. The negative effects of funding liquidity on lending seem to be clearer before the crisis and especially for large banks. Interestingly, we do not find any evidence of the relation between lending and funding liquidity after the crisis period. We believe our study is of interest to regulators and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1734324 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1734324 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1734324 Template-Type: ReDIF-Article 1.0 Author-Name: Hazwan Haini Author-X-Name-First: Hazwan Author-X-Name-Last: Haini Author-Name: Professor Caroline Elliott Author-X-Name-First: Professor Caroline Author-X-Name-Last: Elliott Title: Spatial productivity and efficiency spillovers in the presence of transient and persistent efficiency: Evidence from China’s provinces Abstract: This study examines the spatial productivity and efficiency spillovers of Chinese provinces using a spatial Durbin production frontier model that accounts for persistent and transient efficiency using a panel dataset of Chinese provinces from 1985 to 2017. The role of spatial effects is often overlooked in the literature, yet technological progress can spillover and diffuse from provinces and promote regional growth. The spatial Durbin production frontier model allows for the decomposition of direct and indirect (spillover) total factor productivity (TFP) growth, as well as the gross direct and indirect efficiency of the respective provinces. The estimated results show that spatial productivity and efficiency spillovers are positive and lead to higher productivity growth. On average, indirect effects provide an additional TFP growth of 3.1% and an additional efficiency spillover of 18.98%. However, the estimated results also show that TFP growth is declining over time and there is room for efficiency gains if persistent efficiency is increased. These should be addressed through further reforms and policies that promote sustainable growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1735781 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735781 Template-Type: ReDIF-Article 1.0 Author-Name: Amina Amirat Author-X-Name-First: Amina Author-X-Name-Last: Amirat Author-Name: Wafa Alwafi Author-X-Name-First: Wafa Author-X-Name-Last: Alwafi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Does herding behavior exist in cryptocurrency market? Abstract: This paper investigates the existence of herding behavior in cryptocurrencies market. Using data of the 20 large cryptocurrencies and MV Index Solution Crypto Compare Digital Assets for large cap index, we found no evidence of herding behavior using cross-sectional absolute standard deviation estimation. However, by applying a rolling window analysis, the results show significant herding behavior, which varies over time. Finally, we find an inverse relationship between herding behavior and the Bloomberg consumer comfort index which means that when traders are less comfortable they prefer to ignore their expectations and follow the market performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1735680 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735680 Template-Type: ReDIF-Article 1.0 Author-Name: Friday Osemenshan Anetor Author-X-Name-First: Friday Osemenshan Author-X-Name-Last: Anetor Author-Name: Ebes Esho Author-X-Name-First: Ebes Author-X-Name-Last: Esho Author-Name: Grietjie Verhoef Author-X-Name-First: Grietjie Author-X-Name-Last: Verhoef Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: The impact of foreign direct investment, foreign aid and trade on poverty reduction: Evidence from Sub-Saharan African countries Abstract: Despite postulations on the effects of foreign direct investment (FDI), foreign aid, and trade on growth, empirical evidence from extant research has been mixed. The focus of recent research has shifted from the growth effects of these international flows to their poverty reduction effects. However, results have also been mixed. Most studies have examined the empirical evidence of these flows separately and have mostly conducted single country studies. In this study, we use data from twenty-nine countries in Sub-Saharan Africa between the period 1990–2017 to analyze the effects of FDI, trade, and foreign aid on poverty reduction in a single model using the Feasible Generalized Least Square (FGLS) technique. Our results show that FDI and foreign aid have a negative effect on poverty reduction in the countries studied. These results suggest that the level of FDI required to alleviate poverty has not been reached, and foreign aid have not been properly channeled. However, the results show that trade has a positive and significant impact on poverty reduction, especially in low-income countries. We conclude with policy recommendations. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1737347 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1737347 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1737347 Template-Type: ReDIF-Article 1.0 Author-Name: Willem Daniel Schutte Author-X-Name-First: Willem Daniel Author-X-Name-Last: Schutte Author-Name: Tanja Verster Author-X-Name-First: Tanja Author-X-Name-Last: Verster Author-Name: Derek Doody Author-X-Name-First: Derek Author-X-Name-Last: Doody Author-Name: Helgard Raubenheimer Author-X-Name-First: Helgard Author-X-Name-Last: Raubenheimer Author-Name: Peet Jacobus Coetzee Author-X-Name-First: Peet Jacobus Author-X-Name-Last: Coetzee Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A proposed benchmark model using a modularised approach to calculate IFRS 9 expected credit loss Abstract: The objective of this paper is to develop a methodology to calculate expected credit loss (ECL) using a transparent-modularised approach utilising three components: probability of default (PD), loss given default (LGD) and exposure at default (EAD). The proposed methodology is described by first providing a methodology to calculate the marginal PD, then the methodology for calculating the marginal recovery rates and resulting LGD, and lastly a methodology to calculate the EAD. These three components are combined to calculate the ECL in an empirical style. In markets where sophisticated IFRS9 models are developed, our proposed methodology can be used as in two settings: either as a benchmark to compare newly developed IFRS9 models, or, in markets where limited resources or technological sophistication exists, our methodology can be used to calculate ECL for IFRS9 purposes. This paper includes two such comparative studies to illustrate how our proposed methodology can be used as a benchmark for a newly developed IFRS9 model based on an emerging country’s unsecured and secured retail banking portfolio. This paper is, in essence, a step-by-step implementation guide of the proposed IFRS 9 methodology to calculate ECL as well as the use of such a model as a benchmark. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1735681 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735681 Template-Type: ReDIF-Article 1.0 Author-Name: R. W. Masenya Author-X-Name-First: R. W. Author-X-Name-Last: Masenya Author-Name: Z. Dickason-Koekemoer Author-X-Name-First: Z. Author-X-Name-Last: Dickason-Koekemoer Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A conceptual model of the influence of South African investor well-being on risk tolerance Abstract: Financial institutions have the responsibility to measure an investor’s risk tolerance to determine his or her risk profile. Once an investor’s risk profile is determined, financial institutions are able to more accurately identify which financial products are suitable for the investor. Several factors can affect one’s level of risk tolerance such as investor well-being. The aim of this study is to construct a structural equation model which depicts the influence of South African investor well-being risk tolerance. Secondary data analysis was used to conduct a quantitative research study. Structural equation modelling techniques were applied during the analysis of the data. The main findings suggest the following: (i) risk tolerance has a positive and statistically significant relationship with investor well-being; (ii) financial well-being has a positive and statistically significant relationship with satisfaction with life; and (iii) financial well-being, physical activity, gender, and income respectively have positive and statistically significant relationships with risk tolerance. Satisfaction with life was not found to have a statistically significant impact on risk tolerance. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1738809 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1738809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1738809 Template-Type: ReDIF-Article 1.0 Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Author-Name: Van Phong Vo Author-X-Name-First: Van Phong Author-X-Name-Last: Vo Author-Name: Thanh Phuc Nguyen Author-X-Name-First: Thanh Phuc Author-X-Name-Last: Nguyen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Abnormal returns and idiosyncratic volatility puzzle: An empirical investigation in Vietnam stock market Abstract: This paper aims to examine the relation between idiosyncratic volatility (IVOL) and stock returns with full-sample and conditional alpha sub-samples in Vietnam stock market covering the period from January 2008 to December 2018. We test the IVOL effect on stock returns employing Fama-Macbeth regression method (firm-level analysis) and sorting portfolio method (portfolio-level analysis). In addition, we use different approaches to estimate IVOLs which are the standard deviation of the residuals estimated from regression based on capital asset pricing model (CAPM), Fama-French three-factor model and Carhart four-factor model. We find the IVOL effect which is considered as IVOL puzzle in positive alpha sub-samples. However, we do not discover any significant relation in full-sample and negative alpha sub-samples. Besides, these findings are not consistent with prospect theory. This paper also suggests IVOL opposite strategy for investors to generate significant returns by collecting stocks in positive alpha sub-samples. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1735196 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735196 Template-Type: ReDIF-Article 1.0 Author-Name: Smitha Nair Author-X-Name-First: Smitha Author-X-Name-Last: Nair Author-Name: V Gopikumar Author-X-Name-First: V Author-X-Name-Last: Gopikumar Author-Name: P.K Viswanathan Author-X-Name-First: P.K Author-X-Name-Last: Viswanathan Author-Name: Sruthy Gopakumar Author-X-Name-First: Sruthy Author-X-Name-Last: Gopakumar Author-Name: Mathew Thomas Gil Author-X-Name-First: Mathew Thomas Author-X-Name-Last: Gil Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A contingency model of board characteristics and foreign institutional investor ownership: the moderating role of firm size and market valuation Abstract: We investigate the governance sensitivity of foreign institutional investors’ (FII) ownership in a large emerging market setting of India, characterized by highly concentrated insider ownership. More specifically, we focus on the moderating role of firm size and price to book value (PB) in determining the relationship between FII ownership and board characteristics, such as board size, outside director ratio, CEO duality, and board meeting attendance. Our methodology emphasizes the importance of contextual analysis in studies relating to institutional investors’ preferences. We find that FIIs prefer bigger boards and greater board independence in larger and growth firms (higher PB). Further, FIIs prefer firms that have separate CEO and Chairman of the board positions in growth firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1739465 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1739465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1739465 Template-Type: ReDIF-Article 1.0 Author-Name: Devi Prasad Dash Author-X-Name-First: Devi Prasad Author-X-Name-Last: Dash Author-Name: Smruti Ranjan Behera Author-X-Name-First: Smruti Ranjan Author-X-Name-Last: Behera Author-Name: D. Tripati Rao Author-X-Name-First: D. Tripati Author-X-Name-Last: Rao Author-Name: Narayan Sethi Author-X-Name-First: Narayan Author-X-Name-Last: Sethi Author-Name: Nanthakumar Loganathan Author-X-Name-First: Nanthakumar Author-X-Name-Last: Loganathan Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: Governance, urbanization, and pollution: A cross-country analysis of global south region Abstract: This paper investigates the impact urbanization, industrialization, corruption, human development, energy consumption, and foreign direct investment (FDI) on carbon dioxide (CO2) emissions of 61 developing economies of the global south region of Asia, Africa, and Latin America during the period 1990–2015. The empirical results show that the effect of corruption on CO2 emissions is indeed heterogeneous and contradictory. Specifically, results exhibit that due to immature economic system, and policy paralysis, corruption penetrates the developing economies, and eventually cause carbon emission and pollution. Furthermore, results reveal that FDI guided by clean development mechanism and involved in emission reduction projects in the developing economies play a predominant role to curb the CO2 emission, pollution, and environmental degradation. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1742023 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1742023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1742023 Template-Type: ReDIF-Article 1.0 Author-Name: Olivier Niyitegeka Author-X-Name-First: Olivier Author-X-Name-Last: Niyitegeka Author-Name: Devi Datt Tewari Author-X-Name-First: Devi Datt Author-X-Name-Last: Tewari Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Volatility spillovers between the European and South African foreign exchange markets Abstract: This article investigates the exchange rate volatility spillover and dynamic conditional correlation between the euro and the South African rand following the Eurozone sovereign debt crisis. It employs two multivariate generalized autoregressive conditional heteroskedasticity (MGARCH) models, namely bivariate BEKK-GARCH (1,1) a nd DCC-GARCH(1,1). Based on two datasets, for the crisis and post-crisis periods, the study identifies significant uni-directional volatility spillovers from the euro to the rand during crisis and post-crisis periods. Further, increased volatility spillovers and time-varying correlations between currencies were evident during the Eurozone crisis. This suggests pure form of financial contagion between the two foreign exchange markets. As such, investors and policy makers in the stock and/or foreign exchange markets in South Africa should monitor euro volatility due to its contagious impacts on the rand and decoupling strategies should be formulated to insulate the rand from contagion. The contributions of the study are twofold. First, it informs the investors in the foreign exchange market on the extent to which shocks in the euro affect the rand. Second, it adds to the literature on pure form of contagion by testing whether there exists an asymmetric correlation between the rand and euro over tranquil periods as opposed to financial upheaval ones. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1741308 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1741308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1741308 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1752449 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1752449 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1752449 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1752451 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1752451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1752451 Template-Type: ReDIF-Article 1.0 Author-Name: Abdessalem Gouider Author-X-Name-First: Abdessalem Author-X-Name-Last: Gouider Author-Name: Hedi Ben Haddad Author-X-Name-First: Hedi Author-X-Name-Last: Ben Haddad Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Manufactured goods’ export diversification in Saudi Arabia: A spatial panel approach Abstract: This paper explores the potential spatial diversification of manufactured goods’ exports in Saudi Arabia. To account for the spatial interactions of Saudi’s manufactured goods’ exports, we use a panel Spatial Autoregressive (SAR) model for 77 trade partners over the period 2000–2016. The empirical results suggest, firstly, the existence of spatial interdependence among Saudi’s manufactured goods’ exports. Secondly, we find that the exogenous variables including GDP, GDP per capita, trade freedom, bilateral exchange rate, and trade intensity index exert strong spillover effects on bilateral Saudi’s manufactured goods’ exports. Finally, the study demonstrates evidence of the highest potential with 34 out of 77 partners. This finding has important implications for policymakers, mainly in terms of development of the domestic manufacturing sector and geographic reallocation of Saudi’s manufactured goods’ exports. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1741309 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1741309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1741309 Template-Type: ReDIF-Article 1.0 Author-Name: Somar Al-Mohamad Author-X-Name-First: Somar Author-X-Name-Last: Al-Mohamad Author-Name: Audil Rashid Author-X-Name-First: Audil Author-X-Name-Last: Rashid Author-Name: Walid Bakry Author-X-Name-First: Walid Author-X-Name-Last: Bakry Author-Name: Ammar Jreisat Author-X-Name-First: Ammar Author-X-Name-Last: Jreisat Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Author-Name: Damir Tokic Author-X-Name-First: Damir Author-X-Name-Last: Tokic Title: The impact of BRICS formation on portfolio diversification: Empirical evidence from pre- and post-formation eras Abstract: This paper aims at contributing to the international portfolio investment decisions among the emerging BRICS countries where individual and institutional investors seek diversification benefits and to help in advocating policy changes and implementation as a response to the changing dynamics in these countries pre- and post-BRICS formation. Therefore, the context of this paper is aimed towards examining the short term causalities and long term integration among the BRICS stock market pre- and post-BRICS formation. The research applies the Augmented Dicker-Fuller (ADF) and Philips-Perron tests (PP) tests to analyze stationarity among the selected variables. The pre- and post-BRICS formation long-term linear relationship is investigated using Johansen and Juselius cointegration test while the Granger Causality is applied to assess the direction of the causality between the stock market indices. The study also extends the investigation by employing the impulse response function and variance decomposition to evaluate the reaction of each of the BRICS market to a shock from other BRICS stock markets. Weekly stock market indices of BRICS countries were used covering the period from January 2003 to December 2018. One key finding is that the degree of financial integration among the BRICS stock markets has moderately strengthened in the post-BRICS formation period compared to the pre-BRICS formation period. Another significant finding is that the Chinese stock market are mostly independent from other BRICS markets in the two aforementioned sub-periods, implying diversification benefits for the international investors both in the short and the long run. Further, the results also reveal a unidirectional causal relationship from the Russian stock market to its BRICS counterparts in both periods. Finally, the overall results show an increased responsiveness of stock markets in BRICS countries to shocks in each other after the formation of the bloc as compared to pre- formation period. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1747890 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1747890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1747890 Template-Type: ReDIF-Article 1.0 Author-Name: Belal Ali Abdulraheem Ghaleb Author-X-Name-First: Belal Ali Abdulraheem Author-X-Name-Last: Ghaleb Author-Name: Hasnah Kamardin Author-X-Name-First: Hasnah Author-X-Name-Last: Kamardin Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Family ownership concentration and real earnings management: Empirical evidence from an emerging market Abstract: The paper examines the effect of family ownership concentration (FMOC) on real earnings management (REM) in manufacturing firms listed on Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Data are gathered from 1,056 firm-year observations for the four-year period from 2013 to 2016. The feasible generalised least square estimation is used to examine the relationships. The results show that FMOC is negatively and significantly associated with REM. This evidence supports the alignment hypothesis that FMOC mitigates managerial earnings management by preventing real activities manipulation. However, the finding of the current study is contrary to the claim that family-controlled firms have lower earnings quality. This study extends previous empirical research by examining the effect of different levels of family control on REM in an emerging market and provides evidence that family firms have less incentive to engage in REM practices. The findings imply that earnings reported in the financial statements of Malaysian manufacturing family firms are more reliable as these firms do not manipulate earnings through real business activities. Policymakers may consider the results of the current study that show family-controlled firms have the motivation to self-monitor their business and avoid earnings manipulation activities. Investors may benefit from this evidence and invest in family firms. Future studies may extend the sample to cover other sectors to check the consistency of the findings. In addition, the paper uses data from Malaysia, a country characterised as a family-controlled market. Thus, the findings may not be similar to those of countries with lower FMOC. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1751488 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1751488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1751488 Template-Type: ReDIF-Article 1.0 Author-Name: Navitha Singh Sewpersadh Author-X-Name-First: Navitha Singh Author-X-Name-Last: Sewpersadh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: K-score categorisation of JSE listed sectors under the financial distress continuum theory: A quantitative approach Abstract: Purpose: The liquidation culture in South Africa has proven to be disastrous for its macroeconomic and social goals. Premised on the financial distress continuum theory, which not only determines investment, but also provides early warning signals for firms to pursue remedies, this article investigated the financial health and stability of listed firms. To detect and/or remedy the negative consequences of corporate failures in a timely manner, this study employed the De la Rey K-score model as a risk-based model. Design: The investigation period was over six years with a final sample of 673 company-year observations. This study used the statistical methods of one-way ANOVA and OLS. Findings: The results indicated that the average K-scores from 2011 to 2016 have severely declined, illustrating the magnitude of financial distress among industries. The mean K-score is in the healthy range for the consumer services and consumer goods sectors for each year of the investigation period. This study found that the telecommunications and health care sectors were classified as “grey” zone, which exhibited considerable inter-year variation in financial health. Whilst the industrial and technology sectors were financially distressed. This study also found a significantly positive relationship between the K-score and performance variables. Recommendations: This study recommends that the grey zone sectors should consider turnaround strategies to prevent companies from regressing into the financially distressed category. Furthermore, the distressed sectors should consider embarking on the two pre-insolvency proceedings in the Companies Act (2008). Originality: This study uniquely applied the K-score model as an early warning signal for financial distress and linked the K-score model to the financial distress continuum theory. The results of this study have important implications for policymakers, practitioners, and regulatory authorities, especially those in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1748969 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1748969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1748969 Template-Type: ReDIF-Article 1.0 Author-Name: Samson Ige Abolarinwa Author-X-Name-First: Samson Ige Author-X-Name-Last: Abolarinwa Author-Name: Cosmas Ikechukwu Asogwa Author-X-Name-First: Cosmas Ikechukwu Author-X-Name-Last: Asogwa Author-Name: Charity A. Ezenwakwelu Author-X-Name-First: Charity A. Author-X-Name-Last: Ezenwakwelu Author-Name: Timinepere O. Court Author-X-Name-First: Timinepere O. Author-X-Name-Last: Court Author-Name: Samuel Adedoyin Author-X-Name-First: Samuel Author-X-Name-Last: Adedoyin Author-Name: Tor Eriksson Author-X-Name-First: Tor Author-X-Name-Last: Eriksson Title: Corporate growth strategies and financial performance of quoted manufacturing firms in Nigeria: The mediating role of global economic crises Abstract: This study examines the mediating role of global economic crises (GECs) in the effect of growth strategies on Nigerian manufacturing firms’ performance. The study used secondary data for the period between 2000 and 2017 in its analysis. Therefore, an expost facto research design was used in the analysis of 120 firms listed on the Nigerian Stock Exchange, which were selected out of 190 listed firms using a judgmental sampling technique. The researchers follow data cluster analysis approach to analyze the data for the time around a GEC, including pre-and post-crisis periods. The analysis reveals positive and statistically significant effects of internal growth strategies on return on assets and return on equity (coefficient = 9.474 and 6.277; P < 0.01). However, the researchers found that external growth strategies negatively and significantly affect the return on assets (coefficient = −6.005; p-value<0.01) while the effect is positively significant on return on equity. Regarding GECs, the study found a statistically significant reverse effect. It was found that GECs together with external growth strategies yield a positive and significant effect on return on assets, while their mediation with internal growth strategies had a negative and significant effect on return on assets and return on equity (coefficients = −1.480; −2.041, p-value<0.05; coefficient = 2.194, p-value<0.05; 0.608, p-value <0.05). Thus, it is recommended that during GECs, firms should focus on external growth strategies, including mergers and acquisitions, while internal growth strategies, such as product and market developments, should be pursued under progressive and normal economic conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1750259 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1750259 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1750259 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Does firm size affect learning-by-exporting? Empirical evidence from Sub-Saharan Africa Abstract: This study examines whether the relationship between exports and productivity growth differs across firm size. Using panel data from three Sub-Saharan African countries, I use propensity score matching procedure to examine this relationship. This study finds evidence of productivity differences between new exporters and non-exporters confirming the empirical regularity that new exporters are more productive than never exporters. The findings indicate that export participation effects vary across firm size, with both small and large firms experiencing immediate and significant productivity gains upon entry. However, the productivity gain for large firms is highly significant and more pronounced in the first two years after entry but declines drastically from the third year and tends towards negative in subsequent years. Learning effects might be important for large firms during the initial years of exporting, but these effects dissipate once learning avenues have been exhausted. Small firms display sustained learning effects that expand beyond the fourth year. Relative to the large firms, small new exporters display sustained and significant productivity growth for five year. This study finds no evidence of cumulative productivity growth beyond the third year for large firms. These results are robust to alternative measure of productivity. Any export-led growth should be directed at helping small new exporters access the export markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1754150 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1754150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1754150 Template-Type: ReDIF-Article 1.0 Author-Name: Adeyemi A. Ogundipe Author-X-Name-First: Adeyemi A. Author-X-Name-Last: Ogundipe Author-Name: Queen Esther Oye Author-X-Name-First: Queen Esther Author-X-Name-Last: Oye Author-Name: Oluwatomisin M. Ogundipe Author-X-Name-First: Oluwatomisin M. Author-X-Name-Last: Ogundipe Author-Name: Romanus Osabohien Author-X-Name-First: Romanus Author-X-Name-Last: Osabohien Author-Name: Jorge Miguel Lopo Gonçalves Andraz Author-X-Name-First: Jorge Miguel Lopo Gonçalves Author-X-Name-Last: Andraz Title: Does Infrastructural Absorptive Capacity Stimulate FDI-Growth Nexus in ECOWAS? Abstract: The study assesses the relevance of infrastructural absorptive capacity in the foreign direct investment (FDI)-growth argument in ECOWAS. Though foreign aid has received a vast attention in the literature, however, an assessment of how the infrastructural readiness of the host economies drives the effectiveness of aid was vocal in this re-examination. The study assesses this main thrust in ECOWAS Sub-region for the period 1995–2017 using the system GMM estimation approach. The result suggests that FDI promotes growth though growth responded less proportionately to FDI influx. Alternatively, following the interaction of FDI and physical infrastructures, the responsiveness of FDI declined. Specifically, the responsiveness of GDP growth declined from 29.2% to 0.21% for road infrastructures. It hence becomes expedient for African government and policy makers to channel a viable development path towards enhancing transport and road infrastructures in order to attract financing into the space and the livelihood of poor rural population. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1751487 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1751487 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1751487 Template-Type: ReDIF-Article 1.0 Author-Name: Bhaskar Chhimwal Author-X-Name-First: Bhaskar Author-X-Name-Last: Chhimwal Author-Name: Varadraj Bapat Author-X-Name-First: Varadraj Author-X-Name-Last: Bapat Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Impact of foreign and domestic investment in stock market volatility: Empirical evidence from India Abstract: Volatility is one of the most important factors of investment decisions. Unexpected information forces the investor to trade abnormally in the market which in turn affects the volatility of the market. But this kind of trading behavior has a different impact on the different market segments. This study investigates the effect of unexpected DII and FPI flows on the volatility of large-cap, mid-cap and, small-cap stocks in Indian markets. Using ARMA (1, 1) and TGARCH (1, 1) model, we estimate the impact of unexpected FPI and DII flows on volatility. The main result of the study shows that unexpected flow of FPIs has a positive impact on market volatility but this impact is reduced by unexpected flow of DIIs. Further, results show that unexpected selling of FPIs increase volatility more than unexpected purchase. Impact of unexpected flow of DIIs flow is more dominating in small-cap stocks. Results from this study are useful for policymakers and regulator. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1754321 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1754321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1754321 Template-Type: ReDIF-Article 1.0 Author-Name: Samir Belkhaoui Author-X-Name-First: Samir Author-X-Name-Last: Belkhaoui Author-Name: Naif Alsagr Author-X-Name-First: Naif Author-X-Name-Last: Alsagr Author-Name: Stefan F. van Hemmen Author-X-Name-First: Stefan F. Author-X-Name-Last: van Hemmen Author-Name: Mohammed M. Elgammal Author-X-Name-First: Mohammed M. Author-X-Name-Last: Elgammal Title: Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries Abstract: The aim of this research is to develop a conceptual model that includes variables related to financing modes, risk-taking, efficiency, and Islamic bank profitability in GCC Countries. The results indicate that the total effect of financing modes on banks’ profitability is high and statistically significant. The results show that a higher- level of participation in Mudharabah and Musharakah financing will generate high credit risk. Murabahah financing increases, directly and indirectly, the profitability and improve simultaneously the capitalization ratio and the cost efficiency for Islamic banks in the GCC countries. The contribution of our research is on two levels. On the one hand, our study is an addition to the literature that examined the determinants of Islamic banks performance. The conceptual model added risk-taking and cost efficiency as intervening variables in the profit-financing modes relationship. On the other hand, this research uses path analysis method, called second-generation approach, to test the model. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1750258 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1750258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1750258 Template-Type: ReDIF-Article 1.0 Author-Name: Tu Dq Le Author-X-Name-First: Tu Dq Author-X-Name-Last: Le Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Market discipline and the regulatory change: Evidence from Vietnam Abstract: Following the recent global financial crisis, Vietnamese banks experienced changes in the minimum capital adequacy requirement following the Basel framework. We examine the impact of the regulatory change on market discipline between 2006 and 2015. The findings show a weakening of market discipline when the minimum capital adequacy requirement of 9% is imposed. The same is true for foreign-owned commercial banks during the period of implementing new capital regulation. Also, there is no evidence of the difference in market discipline between bank ownership and risks in the Vietnamese banking system. Our research has implications for bank supervisors, policy-makers, and bank managers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1757801 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757801 Template-Type: ReDIF-Article 1.0 Author-Name: Harshali Damle Author-X-Name-First: Harshali Author-X-Name-Last: Damle Author-Name: Sankarshan Basu Author-X-Name-First: Sankarshan Author-X-Name-Last: Basu Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: Effect of the U.S. quantitative easing policy on institutional investor flows of an emerging country Abstract: The paper investigates the impact of an unconventional monetary policy of the U.S. on the institutional investor flows in India. We assess the relationship between institutional investor flows and market returns before, during and after the U.S. quantitative easing (QE) period. We find a bi-directional Granger causality between domestic institutional investor flows and market returns in the pre QE period. However, the post QE period shows a bi-directional Granger causality between foreign institutional investor flows and market returns. This indicates that the power to influence market returns in India has shifted from the domestic institutional investors to foreign institutional investors during the QE period. Thus, we find evidence for a change in the market dynamics of an emerging country due to spillover effects of an unconventional monetary policy of a foreign country. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1757800 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757800 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed Adem Author-X-Name-First: Mohammed Author-X-Name-Last: Adem Author-Name: Fentahun Tesafa Author-X-Name-First: Fentahun Author-X-Name-Last: Tesafa Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Intensity of income diversification among small-holder farmers in Asayita Woreda, Afar Region, Ethiopia Abstract: This paper examines measuring the intensity of income diversification and identifying the factors which determine level of income diversification in Asayita woreda Eastern part of Afar region. The study used multi stage sampling in combination with stratified and simple random sampling procedures to select kebeles and households. The Simpson Index of Diversity (SID) and Fractional response model were employed to analyse the data collected from a sample of 153 rural households. The level and type of income diversification depends on the accessibility and availability of different income sources. The mean results of degree of income diversification revealed that Simpson Index of Diversity (SID = 0.24) by rural households in the study area. Based on fractional response model educational status, credit utilization, distance from market and access to electric power affect at p < 0.01% probability level, sex of the household head affect at p < 0.05% probability level and, annual household income, special skill and household size significantly affecting degree of income diversification at p < 0.1% probability level. The finding of this research indicates important policy implications suggesting that programs, projects and/or any interventions designed targeting to engage people in other income-generating activities would augment their income sources, which are made to increase the level of income diversification at household level in Asayita woreda. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1759394 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1759394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1759394 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Ganiyu Iddrisu Author-X-Name-First: Abdul Ganiyu Author-X-Name-Last: Iddrisu Author-Name: Festus Ebo Turkson Author-X-Name-First: Festus Author-X-Name-Last: Ebo Turkson Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Political business cycles, bank pricing behaviour and financial inclusion in Africa Abstract: This paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002 to 2013. The regression results that ensued suggests first that loan price increases in pre-election and election years. Building on this result and employing various specifications of financial inclusion, the second results suggest that, high bank loan prices in election years tend to increase financial access more, compared to non-election years, and that, high deposit price reduces financial usage but increases financial access in election years, compared to non-election years. By extension, these results have important policy implications for policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1762286 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1762286 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1762286 Template-Type: ReDIF-Article 1.0 Author-Name: Umaid A. Sheikh Author-X-Name-First: Umaid A. Author-X-Name-Last: Sheikh Author-Name: Muzaffar Asad Author-X-Name-First: Muzaffar Author-X-Name-Last: Asad Author-Name: Zahid Ahmed Author-X-Name-First: Zahid Author-X-Name-Last: Ahmed Author-Name: Umer Mukhtar Author-X-Name-First: Umer Author-X-Name-Last: Mukhtar Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Asymmetrical relationship between oil prices, gold prices, exchange rate, and stock prices during global financial crisis 2008: Evidence from Pakistan Abstract: The study investigated that whether the relationship between macroeconomic fluctuations and stock indexes is symmetrical or asymmetrical in nature. This study employed nonlinear autoregressive distributed lag models for the times before and after 2008 economic crises. The overall sample period contains 168 observations between January 2004 and December 2018. The period between January 2004 and December 2007 was considered as pre-economic crisis period containing 48 observations whereas, period between January 2008 and December 2018 was considered as post-economic crisis containing 120 observations. Four different types of unit root tests, i.e., augmented Dickey Fuller test, Philips Perron test, Zivot-Andrew unit root, and Kwiatkowski Philips Schmidt Shin test have been employed to find out the stationarity in data. Findings suggested that in the long run and before global financial crisis, investors react differently to gold prices and oil prices. In long run and after crisis, investors have shown different reactions to all macroeconomic fluctuations. This showed that after crisis, investors reacted differently to positive and negative shocks of gold prices, exchange rate, and interest rate. Another interesting aspect that after global financial crisis, investors reacted only to positive shocks of gold prices, interest rates, and exchange rate in long run. This research contributes to existing literature by identifying that relationship between macroeconomic fluctuation and stock prices is asymmetric in nature whereas, in previous researches authors have assumed linearity in the time series data. The asymmetric effect of macroeconomic variables on stock prices should be considered for investors, governments, and other stakeholders during investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1757802 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757802 Template-Type: ReDIF-Article 1.0 Author-Name: John Guerard Author-X-Name-First: John Author-X-Name-Last: Guerard Author-Name: Dimitrios Thomakos Author-X-Name-First: Dimitrios Author-X-Name-Last: Thomakos Author-Name: Foteini Kyriazi Author-X-Name-First: Foteini Author-X-Name-Last: Kyriazi Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Automatic time series modeling and forecasting: A replication case study of forecasting real GDP, the unemployment rate and the impact of leading economic indicators Abstract: We test and report on time series modelling and forecasting using several US. Leading economic indicators (LEI) as an input to forecasting real US. GDP and the unemployment rate. These time series have been addressed before, but our results are more statistically significant using more recently developed time series modelling techniques and software. In this replication case study, we apply the Hendry and Doornik automatic time series PC-Give (AutoMetrics) methodology to the well-studied macroeconomic series, US. real GDP and the unemployment rate. The Autometrics system substantially reduces regression sum of squares measures relative to traditional variations on the random walk with drift model. The LEI are a statistically significant input to real GDP. A similar conclusion is found for the impact of the LEI and weekly unemployment claims series leading the unemployment rate series. We tested the forecasting ability of best univariate and best bivariate models over 60- and 120-period rolling windows and report considerable forecast error reductions. The adaptive averaging autoregressive model forecast ADA-AR and the adaptive learning forecast, ADL, produced the smallest root-mean-square errors and lowest mean absolute errors. Our results are greatly supportive of the significance for modeling and forecasting of the suggested input variables and they imply considerable improvements over all traditional benchmarks. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1759483 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1759483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1759483 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Uzair Akram Author-X-Name-First: Mohammad Uzair Author-X-Name-Last: Akram Author-Name: Kashif Zaheer Malik Author-X-Name-First: Kashif Zaheer Author-X-Name-Last: Malik Author-Name: Ali Imtiaz Author-X-Name-First: Ali Author-X-Name-Last: Imtiaz Author-Name: Ammar Aftab Author-X-Name-First: Ammar Author-X-Name-Last: Aftab Author-Name: Maggie Chen Author-X-Name-First: Maggie Author-X-Name-Last: Chen Title: Forex and financial markets dynamics: A case of China and ASEAN Abstract: The paper aims to investigate the possible dual causality between exchange rates and stock indices of China and ASEAN using Structural Vector Auto-Regressive Model (SVAR). The paper has analysed the dynamic relationships between the Yuan and the Shanghai Composite Index and Shenzhen Stock Index in the context of China’s third largest trading bloc, i.e., ASEAN, after the Asian Financial Crisis of 1997. The Asian Financial Crisis of 1997–98 had an adverse impact on stock indices and the currencies of ASEAN countries. It was also expected that a devaluation of the Yuan would follow soon, thus plummeting investors’ confidence in the Chinese markets. Further research was needed to explore the complex relationship between financial and forex markets in the context of China and ASEAN. The focus of this paper is to explore such relationship with the focus on China. The results of the model confirm the dual causality between the two variables of interest in China. It concludes that a positive financial shock does have a small but significant impact upon the Yuan, whereas a positive exchange rate shock has a high and a significant impact upon the Shanghai and Shenzhen Composite Indices. The paper finds the effect of monetary and demand shocks upon the Yuan and stock market indices to be insignificant. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1756144 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1756144 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1756144 Template-Type: ReDIF-Article 1.0 Author-Name: Sk Alamgir Hossain Author-X-Name-First: Sk Author-X-Name-Last: Alamgir Hossain Author-Name: Syed Moudud-Ul-Huq Author-X-Name-First: Syed Author-X-Name-Last: Moudud-Ul-Huq Author-Name: Marufa Binta Kader Author-X-Name-First: Marufa Binta Author-X-Name-Last: Kader Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Impact of trade openness on bank risk-taking behavior: Evidence from a developing country Abstract: This study investigates the impact of trade openness along with bank size, bank growth, liquidity, deposit insurance, industry centralization, and capital stringency on risk-taking behavior of commercial banks of Bangladesh. To examine the relationships, it considers 32 commercial banks over a period of 2000 to 2017. The main result of this study reveals that trade openness provides ample opportunities in lending activities of commercial banks and aids decreasing credit risk as well as overall bank risk. Hence, it has great implications for the policymakers to promote trade openness and make banks more competitive. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1765468 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1765468 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1765468 Template-Type: ReDIF-Article 1.0 Author-Name: Nizar Dwaikat Author-X-Name-First: Nizar Author-X-Name-Last: Dwaikat Author-Name: Abdelbaset Queiri Author-X-Name-First: Abdelbaset Author-X-Name-Last: Queiri Author-Name: Ihab Sameer Qubbaj Author-X-Name-First: Ihab Sameer Author-X-Name-Last: Qubbaj Author-Name: Caroline Elliott Author-X-Name-First: Caroline Author-X-Name-Last: Elliott Title: Board governance on dividend initiation by initial public offerings: Evidence from The Malaysian stock market Abstract: Within the realm of corporate finance, IPO (refers to the process of offering shares of corporation to the public for the first time) companies in Malaysia received little attention from the academic scholarly works. An important area of inquiry for IPO companies is to investigate the board characteristics impact on dividend initiation. With use of the agency theory principles, four argumentative hypotheses were proposed. The current study used a pooled cross-sectional data with a total sample size of 372 companies listed in the Malaysian Stock Market. The results of this study revealed that the independence of board and the size of board were found to have a positive and significant impact on the decision to initiate dividend for IPO companies. However, multi-seats were found to have a negative and significant impact on the decision to initiate dividend. But, CEO duality were found to be irrelevant to the decision of initiating dividend. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1761241 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1761241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1761241 Template-Type: ReDIF-Article 1.0 Author-Name: Nurkhodzha Akbulaev Author-X-Name-First: Nurkhodzha Author-X-Name-Last: Akbulaev Author-Name: Basti Aliyeva Author-X-Name-First: Basti Author-X-Name-Last: Aliyeva Author-Name: Juan Sapena Author-X-Name-First: Juan Author-X-Name-Last: Sapena Title: Gender and economic growth: Is there a correlation? The example of Kyrgyzstan Abstract: The article is focused on the study of gender equality issues as a necessary factor in the economic growth of the state. The work notes that the economic growth is traditionally considered as an important quantitative characteristic of the development in a country’s economic system, but this concept is complex and multifaceted, which makes it difficult to assess its scale, factors, sources and consequences. Therefore, through a theoretical analysis, the author identified main factors of the influence on country’s economic growth. Also, on the basis of an analytical review in relevant sources in this area, the current situation of women in the society was examined and the examples of state programs for ensuring gender equality in all social sectors of state functioning were given. In consideration of the foreign and the internal experience in strategy for gender equality achievement in the society, as well as conditions and factors of the economic growth in Kyrgyzstan, comparative analysis of key indicators of given categories was carried out in order to determine the existence of correlations between the studied concepts. As a result of research, the author proposed perspective directions of perfection in the existing system for gender equality ensuring in Kyrgyzstan with the aim of achieving a new level of country’s economic development. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1758007 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1758007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1758007 Template-Type: ReDIF-Article 1.0 Author-Name: Melvin M. Khomo Author-X-Name-First: Melvin M. Author-X-Name-Last: Khomo Author-Name: Meshach Jesse Aziakpono Author-X-Name-First: Meshach Jesse Author-X-Name-Last: Aziakpono Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: The behaviour of the real effective exchange rate of South Africa: Is there a misalignment? Abstract: This paper examines the extent of misalignment of the real effective exchange rate (REER) of South African rand. With South Africa being an open emerging market economy closely linked with global markets, the country’s economy is susceptible to external shocks and changes in global trade patterns. Based on the behavioural equilibrium exchange rate framework of Clark and MacDonald (1998) the study uses a cointegration technique, which caters for endogeneity to estimate the equilibrium value of the REER of the rand. Next, the study uses a Markov regime-switching (MSM) method to determine whether the exchange rate’s departure from the equilibrium level is meaningful enough to be considered as either over- or undervalued. The results show that long-run equilibrium relationship between the rand’s REER and economic variables inclusive of terms of trade, external openness, capital flows and government expenditure. The MSM correctly captures exchange rate misalignment as distinct episodes of exchange rate overvaluation and undervaluation. Most of the exchange rate undervaluation episodes identified in the study have been in response to either idiosyncratic shocks emanating from internal economic/political challenges or systemic global factors transmitted through either the nominal exchange rate or capital flows and not policy-induced behaviour. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1760710 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1760710 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1760710 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmed S. Alanazi Author-X-Name-First: Ahmed S. Author-X-Name-Last: Alanazi Author-Name: Ammar S. Alanazi Author-X-Name-First: Ammar S. Author-X-Name-Last: Alanazi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The profitability of technical analysis: Evidence from the piercing line and dark cloud cover patterns in the forex market Abstract: We examine 112,792 daily candles using more than one million spot quotes among 24 currency pairs between 2000 and 2018. We find that chart patterns are profitable. Relying on these visually based patterns achieves returns of more than 600% after accounting for the transaction costs. Nevertheless, the transaction costs are substantial. In particular, the spread is a large burden on profitability. Overall, our evidence suggests that technical analysis could generate excess returns and that the profitability of technical analysis cannot be explained by market inefficiency. Rather, the evidence is consistent with that on the link between the efficiency and profitability of technical analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1768648 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1768648 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1768648 Template-Type: ReDIF-Article 1.0 Author-Name: David de Villiers Author-X-Name-First: David Author-X-Name-Last: de Villiers Author-Name: Natalya Apopo Author-X-Name-First: Natalya Author-X-Name-Last: Apopo Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Unobserved structural shifts and asymmetries in the random walk model for stock returns in African frontier markets Abstract: The purpose of this study is to examine the weak-form market efficiency hypothesis (EMH) for 8 African Frontier markets between 2001 and 2017. To achieve this purpose, we employ unit root testing procedures which are robust to both nonlinearities and smooth structural breaks, making this study the first of its kind for African markets. Our empirical findings suggest that, regardless of whether daily or weekly series are employed, most African frontier markets are not market efficient, in the weak sense form, with the exception of the Kenyan stock market and to a very much lesser extent the Botswana and South African stock series. Important policy and investor implications are drawn in our study. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1769348 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1769348 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1769348 Template-Type: ReDIF-Article 1.0 Author-Name: Trinh Quoc Trung Author-X-Name-First: Trinh Quoc Author-X-Name-Last: Trung Author-Name: Nguyen Thanh Liem Author-X-Name-First: Nguyen Thanh Author-X-Name-Last: Liem Author-Name: Cao Thi Mien Thuy Author-X-Name-First: Cao Thi Mien Author-X-Name-Last: Thuy Author-Name: Mohammed M. Elgammal Author-X-Name-First: Mohammed M. Author-X-Name-Last: Elgammal Title: The impact of short-term debt on accruals-based earnings management – evidence from Vietnam Abstract: This study seeks to examine the relationship between short-term debt maturity and accruals-based earnings management using a sample of listed firms in Vietnam from 2010–2017. The extant literature remains under-explored on the impact of short-term debt on accruals-based earnings management at low and high levels of short-term debt. We further dissect the impact of the interaction between the growth opportunities and short debt maturity on accruals-based earnings management. Our findings provide evidence suggesting that short-term debt maturity is likely to exert a desirable impact in lowering earnings management at low levels of short-term debt, while at high levels it tends to increase earnings manipulation, demonstrating a U-shaped relationship. Furthermore, we show that growth opportunities moderate the impact of short debt maturity on earnings management. Specifically, the U-shaped pattern between short-term debt and earnings management is pronounced for firms with low growth opportunities, while for high-growth counterparts that pattern weakens. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1767851 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1767851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1767851 Template-Type: ReDIF-Article 1.0 Author-Name: Jaison Chireshe Author-X-Name-First: Jaison Author-X-Name-Last: Chireshe Author-Name: Matthew K. Ocran Author-X-Name-First: Matthew K. Author-X-Name-Last: Ocran Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Financial development and health care expenditure in Sub Saharan Africa Countries Abstract: The study aimed to examine the relationship between financial development and health care expenditure in 46 Sub Saharan Africa (SSA) countries. The paper argues that health care expenditure is a key transmission mechanism through which financial development influences better health outcomes. The study used random and fixed effects as well as instrumental variable estimation methods using data from 1995 to 2014. The results showed that financial development leads to increased health care expenditure. In terms of policy implications, the findings underscore the need to foster financial development in SSA economies to assist with domestic resource mobilisation to finance health care expenditure. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1771878 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1771878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1771878 Template-Type: ReDIF-Article 1.0 Author-Name: George Okello Candiya Bongomin Author-X-Name-First: George Author-X-Name-Last: Okello Candiya Bongomin Author-Name: John C. Munene Author-X-Name-First: John C. Author-X-Name-Last: Munene Author-Name: Pierre Yourougou Author-X-Name-First: Pierre Author-X-Name-Last: Yourougou Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Examining the role of financial intermediaries in promoting financial literacy and financial inclusion among the poor in developing countries: Lessons from rural Uganda Abstract: The main purpose of this study is to establish the mediating role of financial intermediaries in the relationship between financial literacy and financial inclusion of the poor in developing countries with data from rural Uganda. The data for this study were analyzed using Partial Least Square (PLS). The results revealed that financial intermediaries significantly mediates the relationship between financial literacy and financial inclusion. The presence of financial intermediaries such as microfinance banks enhance financial literacy to increase the scope of financial inclusion of the poor in rural Uganda. Thus, policy makers and advocates of financial literacy, especially in developing countries should use financial intermediaries such as microfinance banks to roll out financial literacy programs. This can be achieved through provision of financial literacy clinics, workshops and seminars where the poor can learn about personal finance using hands-on approach. This will help them to make wise financial decisions and choices towards consumption of complex financial products offered by the rural-based financial institutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1761274 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1761274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1761274 Template-Type: ReDIF-Article 1.0 Author-Name: Thi-Kim-Dung Bui Author-X-Name-First: Thi-Kim-Dung Author-X-Name-Last: Bui Author-Name: Anh-Tuan Doan Author-X-Name-First: Anh-Tuan Author-X-Name-Last: Doan Author-Name: Hyoung-Goo Kang Author-X-Name-First: Hyoung-Goo Author-X-Name-Last: Kang Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Institutional environment, ownership structure and firm-specific information: Evidence from a transitional economy Abstract: This study examines the relationship between ownership structure and stock price informativeness in a transitional economy characterized by an underdeveloped corporate governance system. Using a sample of 322 publicly listed companies in Vietnam covering a 10-year period from 2009 to 2018, we evaluate how national governance quality affects the impact of ownership type on stock price informativeness. We find the evidence that government-owned firms tend to have higher synchronous (lower informative) stock prices, whereas the opposite is true for the foreign-owned firms. Furthermore, the stock price informativeness of government-owned firms is higher when there is an increase in national governance quality. This study finds no significant difference in governance quality benefits between foreign-controlled and non-foreign firms. These findings suggest that the institutional channel plays an important role in determining the informativeness of the stock prices of government-controlled firms, especially in transitional economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1774986 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1774986 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1774986 Template-Type: ReDIF-Article 1.0 Author-Name: Justice G. Djokoto Author-X-Name-First: Justice G. Author-X-Name-Last: Djokoto Author-Name: Ferguson K. Gidiglo Author-X-Name-First: Ferguson K. Author-X-Name-Last: Gidiglo Author-Name: Francis Y. Srofenyoh Author-X-Name-First: Francis Y. Author-X-Name-Last: Srofenyoh Author-Name: Kofi Aaron A-O. Agyei-Henaku Author-X-Name-First: Kofi Aaron A-O. Author-X-Name-Last: Agyei-Henaku Author-Name: Akua A. Afrane Arthur Author-X-Name-First: Akua A. Author-X-Name-Last: Afrane Arthur Author-Name: Charlotte Badu-Prah Author-X-Name-First: Charlotte Author-X-Name-Last: Badu-Prah Author-Name: John Fry Author-X-Name-First: John Author-X-Name-Last: Fry Title: Sectoral and spatio-temporal differentiation in technical efficiency: A meta-regression Abstract: In the literature, existing meta-regressions on efficiency have focused on specific sectors in a country or multiple country and on specific economic activity. None of the available efficiency meta-regressions covers multiple sectors of an economy. We contribute to the literature by investigating the technical efficiency differentiation within a multi-sectoral environment. Using data from 152 publications yielding 223 observations from diverse sources and applying meta-regression analysis, we investigated the heterogeneity in mean technical efficiency (MTE), assessed the temporal and spatial drivers of estimated technical efficiency for Ghana. We found heterogeneity in the estimated MTE. The selected cauchit functional form of the fractional regression model showed sectoral and spatial variables drive heterogeneity in MTE. There was a seeming technical efficiency regression with average MTE of 0.676 that requires greater effort in the management of production than has been the case previously in order to close the output gap. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1773659 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1773659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1773659 Template-Type: ReDIF-Article 1.0 Author-Name: Raphael Kwaku Botchway Author-X-Name-First: Raphael Kwaku Author-X-Name-Last: Botchway Author-Name: Abdul Bashiru Jibril Author-X-Name-First: Abdul Bashiru Author-X-Name-Last: Jibril Author-Name: Zuzana Komínková Oplatková Author-X-Name-First: Zuzana Komínková Author-X-Name-Last: Oplatková Author-Name: Miloslava Chovancová Author-X-Name-First: Miloslava Author-X-Name-Last: Chovancová Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Deductions from a Sub-Saharan African Bank’s Tweets: A sentiment analysis approach Abstract: The upsurge in social media websites has in no doubt triggered a huge source of data for mining interesting expressions on a variety of subjects. These expressions on social media websites empower firms and individuals to discover varied interpretations regarding the opinions expressed. In Sub-Saharan Africa, financial institutions are making the needed technological investments required to remain competitive in today’s challenging global business environment. Twitter as one of the digital communication tools has in recent times been integrated into the marketing communication tools of banks to augment the free flow of information. In this light, the purpose of the present study is to perform a sentiment analysis on a large dataset of tweets associated with the Ecobank Group, a prominent pan-African bank in sub-Saharan Africa using four different sentiment lexicons to determine the best lexicon based on its performance. Our results show that Valence Aware Dictionary and sEntiment Reasoner (VADER) outperforms all the other three lexicons based on accuracy and computational efficiency. Additionally, we generated a word cloud to visually examine the terms in the positive and negative sentiment categories based on VADER. Our approach demonstrates that in today’s world of empowered customers, firms need to focus on customer engagement to enhance customer experience via social media channels (e.g., Twitter) since the meaning of competitive advantage has shifted from purely competing over price and product to building loyalty and trust. In theory, the study contributes to broadening the scope of online banking given the interplay of consumer sentiments via the social media channel. Limitations and future research directions are discussed at the end of the paper. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1776006 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1776006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1776006 Template-Type: ReDIF-Article 1.0 Author-Name: Dominik L. Schall Author-X-Name-First: Dominik L. Author-X-Name-Last: Schall Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: More than money? An empirical investigation of socio-psychological drivers of financial citizen participation in the German energy transition Abstract: While financial citizen participation plays an increasing role in renewable energy, there is a lack of understanding which socio-psychological factors correlate with a decision to privately invest in renewable energy. Based on a conceptual model and an extensive literature review, a survey among retail investors of renewable energy projects in Germany was conducted and compared to existing population samples using logistic regressions and factor analysis. This research finds that the typical retail investor in renewable energy in Germany is more likely to be male with a higher income, to have a higher education, and to live in a more rural area compared with the overall population. The typical investor exhibits strong proenvironmental beliefs and behaviors as well as a predisposition for active citizenship. Furthermore, getting a form of non-financial or “psychic return” from the investment seems to be important for the investment decision. Strategic adaptions for public and private actors to increase retail investment in renewable energy are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1777813 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1777813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1777813 Template-Type: ReDIF-Article 1.0 Author-Name: Kofi Agyarko Ababio Author-X-Name-First: Kofi Agyarko Author-X-Name-Last: Ababio Author-Name: Jules Clement Mba Author-X-Name-First: Jules Clement Author-X-Name-Last: Mba Author-Name: Ur Koumba Author-X-Name-First: Ur Author-X-Name-Last: Koumba Author-Name: Lau Evan Author-X-Name-First: Lau Author-X-Name-Last: Evan Title: Optimisation of mixed assets portfolio using copula differential evolution: A behavioural approach Abstract: Cumulative Prospect Theory (CPT) is rooted in behavioural psychology and has demonstrated to possess sufficient explanatory power for use in actual decision-making problems. In this study, two distinct asset classes (i.e. assets with extremely lower or higher CPT values) are classified and pre-selected for optimisation purposes using the differential evolution algorithm. Data on two asset classes namely cryptocurrencies and traditional indices were used in the study. The data were sourced from the Bloomberg database and spans the period August 2016 to March 2018. Probability weighting function with 1- and 2- parameters are used to obtain the CPT values of cryptocurrencies, indices, and mixed assets (i.e. cryptocurrencies and indices). We observe that portfolios consisting of assets of any kind with extremely lower CPT values generally outperform those with higher CPT values. Moreover, portfolios made up of mixed assets generate benefits in terms of improvement of the returns, but it tends also to increase volatility significantly. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1780838 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1780838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1780838 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Duncan Watson Author-X-Name-First: Duncan Author-X-Name-Last: Watson Title: Job creation, job destruction and reallocation in Sub-Saharan Africa: Firm-level evidence from Kenyan manufacturing sector Abstract: Is the poor aggregate employment growth of the manufacturing sector in Sub-Saharan African countries the outcome of inadequate job creation or rival forces of job creation and job destruction acting in opposite direction? Using a unique dataset from the Kenyan manufacturing sector, we examine this question using ordinary least squares method and feasible generalized least squares technique. We find simultaneous high rates of job creation and job destruction. In most cases, job creation in the manufacturing sector was not adequate to offset the rapid destruction of jobs. Second, we find that the presence of simultaneously high rates of job creation and job destruction cut across firm size and age. Third, we find that young firms account for almost all of the net job creation rates implying that the firm’s age is important in shaping its contribution to net job creation rates. Our findings have practical implications. First, job creation policies alone without policies that mitigate the destruction of jobs created might not be successful. For job creation to be successful in the manufacturing sector, effort should be made towards developing strategies that mitigate the destruction of jobs created. This is because job creation and destruction rates simultaneously follow each other. Second, to expand employment growth, effort should be dedicated to supporting young firms (6–10 years), through possibly, tax relief, providing technology of production or any possible government subsidy that can help these firms grow and survive in the turbulent business environment. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782113 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782113 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulaziz Hamad Algaeed Author-X-Name-First: Abdulaziz Hamad Author-X-Name-Last: Algaeed Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Symmetric oil price shocks and government expenditure-real exchange rate nexus: ARDL and SVAR models for an oil-based economy, 1970–2018 Abstract: Historically, oil has been the main source of earnings in the Saudi Arabian economy. Different from other symmetric oil price shock studies, the aim of this paper is to test the impacts of symmetric oil price shocks on government expenditure-real exchange rate nexus and ultimately, to check the conformity of symmetric oil price shock findings to those prevailing in literature. To achieve this endeavor, autoregressive distributed lag (ARDL) and structural vector autoregressive (SVAR) have been employed for the period of 1970 to 2018. The goal of carrying out ARDL and SVAR together is to consolidate and strengthen the consistency of the results obtained from both approaches. Our models’ findings support the short-run appreciation of the real exchange rate as a reaction to symmetric oil price shocks and to real government expenditure. The latter finding, though is consistent with Dutch disease predictions. However, in the long-run symmetric oil price shocks negate the real exchange rate. The directional map of causality is as follows: symmetric oil price shocks impact the total earnings of the Saudi government and hence, government spending. Thereafter, the composition of expenditure causes an appreciation of the real exchange rate. Policymakers should consider oil price fluctuations as a source of disturbance to government earnings. Solutions could be carried out by benefiting from other countries' experience. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782076 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782076 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782076 Template-Type: ReDIF-Article 1.0 Author-Name: Rizwana Hayat Author-X-Name-First: Rizwana Author-X-Name-Last: Hayat Author-Name: Abdul Rashid Author-X-Name-First: Abdul Author-X-Name-Last: Rashid Author-Name: Miao Wang Author-X-Name-First: Miao Author-X-Name-Last: Wang Title: Exploring legal and political-institutional determinants of the informal economy of Pakistan Abstract: In this paper, the size of the informal economy of Pakistan is determined by including the legal and political-institutional variables as determinants. By using the MIMIC model average estimate for the informal economy of Pakistan is 37.75 percent from 1995 to 2017. The study tries to explore the institutional implications of the informal economy for policymakers to reduce and control the informal economy in the developing country. Empirical results show that the most significant legal variable is Law and Order and the most important political variable is Religion in Politics for measuring the informal economy. Departing from existing studies, institutional determinants are explored in detail because these different institutional determinants may affect the informal economy differently in developed, developing, and underdeveloped countries. The policy formation process can be more effective in developing countries like Pakistan with consideration of the most relevant institutional factors in estimation. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782075 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782075 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782075 Template-Type: ReDIF-Article 1.0 Author-Name: Rogers Ondiba Ochenge Author-X-Name-First: Rogers Author-X-Name-Last: Ondiba Ochenge Author-Name: Rose Ngugi Author-X-Name-First: Rose Author-X-Name-Last: Ngugi Author-Name: Peter Muriu Author-X-Name-First: Peter Author-X-Name-Last: Muriu Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Foreign equity flows and stock market liquidity in Kenya Abstract: In this paper, we explore the dynamic relationship between aggregate foreign equity inflows and aggregate liquidity of the Kenyan stock market using transactional foreign trading data and several liquidity measures. We employ vector autoregression with monthly gross foreign inflows, local stock market liquidity and returns over the period 2011–2018. We discover a one-way causality link from inflows to liquidity and that foreign investors promote rather than impede local liquidity. Our analysis therefore renders support to the recent policy by Capital Market Authority of Kenya that now allows foreign investors to acquire up to 100% of any stock listed at the Kenyan stock exchange market. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1781503 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1781503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1781503 Template-Type: ReDIF-Article 1.0 Author-Name: Eissa A. Al-Homaidi Author-X-Name-First: Eissa A. Author-X-Name-Last: Al-Homaidi Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Anwar Ahmad Author-X-Name-First: Anwar Author-X-Name-Last: Ahmad Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The profitability of islamic banks and voluntary disclosure: empirical insights from Yemen Abstract: This study aims to empirically examine the relationship between the extent of voluntary disclosure level and profitability of Yemeni Islamic banks. This article adopted a self-constructed disclosure index, composed of 266 items, to measure the level of voluntary disclosure information and its association with the profitability of 30 annual reports of Yemeni Islamic banks, over a ten-year reporting period from 2005 up to 2014. The results with regard to return on assets (ROA) show that background about the Islamic bank, corporate governance information, corporate social disclosure, bank size, and bank age have a negative and significant relationship with return on assets. Concerning return on equity (ROE), the outcomes reveal that background about the Islamic bank, financial ratios, corporate governance information, corporate social disclosure, zakat information, and bank size have a negative and significant effect with return on equity. With respect to profit after tax (PAT), the results indicate that background about the Islamic bank, corporate social disclosure, and bank age has a negative and significant effect with profit after tax. The research mentions that regulatory bodies and managers should develop a guideline for disclosure of information to enhance the relationship between disclosure and profitability among Yemeni Islamic banks, leading to reasonable economic decision-making. This article provides important insights into the largely unexplored voluntary publication of Islamic banks ‘ annual reports in Yemen. The research also represents the first empirical inquiry into the correlation in the context of Yemen between the rate of voluntary disclosures and the attributes of profitability. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1778406 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1778406 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1778406 Template-Type: ReDIF-Article 1.0 Author-Name: Gerald Ngoma Author-X-Name-First: Gerald Author-X-Name-Last: Ngoma Author-Name: Burcu Berke Author-X-Name-First: Burcu Author-X-Name-Last: Berke Title: What determines import demand in Zimbabwe? Evidence from a gravity model Abstract: The notion of the determinants of import demand has become a major policy issue in most countries due to the persistent trade deficits being experienced and their effects on the economy. Against this backdrop, this study empirically examined the factors determining import demand in Zimbabwe using a gravity model. Forty trading partners for Zimbabwe and data for the period 2004 to 2017 were employed. The model was estimated using Ordinary Least Squares (OLS) with and without fixed effects and the findings were that gross domestic product and trade openness for Zimbabwe and her trading partners had a positive impact on import demand. Furthermore, inflation and population for Zimbabwe as well as its trading partners’ and bilateral distance were found to be negatively related to import demand. More so, the study found out that dollarization has managed to increase import demand. Based on these findings, policies directed at reducing import demand should target trade openness, population and inflation level. The findings also imply that de-dollarization is an effective strategy to reduce import demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782129 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782129 Template-Type: ReDIF-Article 1.0 Author-Name: Prince Fosu Author-X-Name-First: Prince Author-X-Name-Last: Fosu Author-Name: Thomas I. Wahl Author-X-Name-First: Thomas I. Author-X-Name-Last: Wahl Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Empirical analysis of US bilateral corn trade: Evidence from Japan, Mexico, China, South Korea, and the European Union Abstract: Aggregate export supply function for US corn and bilateral import functions for US corn by Mexico, Japan, China, South Korea, and the EU are estimated using ARDL estimation techniques. The findings of the study show that export price, technology, and lagged exports impact positively on US corn exports, while real effective exchange rates and ethanol production negatively impact US corn export. In addition, the current import price had a negative effect on Mexico, China, and the EU demand for US corn. However, for Japan and South Korea, it is the previous price that negatively affects corn import. More so, livestock production, NAFTA and WTO involvement positively affected corn import by all importing countries. Also, the Chinese population positively impacted corn import from the US. GDP in Mexico, Japan, South Korea, and the EU had a positive effect on corn imports, while China’s GDP impacted negatively on corn imports. More so, the US has a more price elastic supply of corn. Mexico, Japan, South Korea, and the EU have price inelastic demand for US corn, while China has price elastic demand suggesting China is very price sensitive. The results of this study have important implications for global corn trade and the US economy. The results suggest that increases in livestock production in all importing countries could lead to a significant increase in demand for U.S. corn. Also, policies that enhance NAFTA and WTO could lead to a dramatic increase in demand for U.S. corn. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1783128 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783128 Template-Type: ReDIF-Article 1.0 Author-Name: Lingaraj Mallick Author-X-Name-First: Lingaraj Author-X-Name-Last: Mallick Author-Name: Smruti Ranjan Behera Author-X-Name-First: Smruti Ranjan Author-X-Name-Last: Behera Author-Name: Juan Sapena Author-X-Name-First: Juan Author-X-Name-Last: Sapena Title: Does trade openness affect economic growth in India? Evidence from threshold cointegration with asymmetric adjustment Abstract: This paper investigates the long-run equilibrium relationship between economic growth and trade openness in India during the period 1960–2018 using the asymmetric error-correction model with threshold cointegration. To evaluate the robustness impact of trade openness on economic growth under different regimes, we divide the full sample period into two sub-periods, i.e., pre-trade reforms period 1960–1990, and post-trade reforms period 1991–2018. The study indeed confirms the evidence of asymmetric cointegration between economic growth and trade openness in India during the period under evaluation and over the different sub-periods. The estimated asymmetric error-correction model exhibits a different speed of adjustment in trade openness in response to positive and negative economic growth shocks in the short-run. More specifically, during the pre-reforms period, deviations from the long-run equilibrium due to a relative increase in economic growth have a lower speed of adjustment in comparison to deviations caused by a corresponding decrease in economic growth in India. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782659 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782659 Template-Type: ReDIF-Article 1.0 Author-Name: Essotanam Mamba Author-X-Name-First: Essotanam Author-X-Name-Last: Mamba Author-Name: Moukpè Gniniguè Author-X-Name-First: Moukpè Author-X-Name-Last: Gniniguè Author-Name: Essossinam Ali Author-X-Name-First: Essossinam Author-X-Name-Last: Ali Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: Effect of foreign direct investment on structural transformation in West African Economic and Monetary Union (WAEMU) countries Abstract: Foreign Direct Investment (FDI) is widely recognized as an engine of the structural transformation in development theories. We analyzed the effects of FDI on the structural transformation in West African Economic and Monetary Union (WAEMU) countries by considering the industry, manufacturing, agricultural, and services sectors for the period spanning from 1990 to 2017. Using the Panel Corrected Standard Errors (PCSE) estimation technique, we showed the neutrality hypothesis of FDI inflows on industrial, manufacturing and agricultural productivity in the WAEMU region. However, findings showed positive effect of FDI inflows on services sector’s productivity. We also found that domestic credit was not an important determinant for structural transformation in WAEMU countries, except for the services sector. Moreover, findings showed that the institutional quality indicator is relatively low in WAEMU region and has negative relationship with agricultural productivity, while it increases services sector’s value added. These results imply that the low institutional quality in WAEMU may lead to the failure in the design and implementation of reliable agricultural policies of the region which may not attract the FDI, resulting in the negative effect of FDI on structural transformation in the region. Rethinking about the design and implementation of domestic development policies and promoting actions that can attract FDI in sectors with positive ripple effects, including industry, manufacturing, agriculture and services sectors are recommended for the structural transformation of the economy of WAEMU countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1783910 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783910 Template-Type: ReDIF-Article 1.0 Author-Name: Malefa Rose Malefane Author-X-Name-First: Malefa Rose Author-X-Name-Last: Malefane Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Trade openness and economic growth in Botswana: Evidence from cointegration and error-correction modelling Abstract: The purpose of this paper is to estimate the dynamic impact of trade openness on economic growth in Botswana using the ARDL bounds testing approach. The study employs four different proxies for trade openness, which include trade-based measures and a composite index. The trade-based measures capture the effects of total trade, exports, and imports while the composite index takes country size and geography into account. The use of four different indicators in this study enables a broader analysis of how different forms of trade openness affect economic growth. Evidence from the results points to the significance of total trade and exports in promoting economic growth in Botswana, but also the lack of growth impetus from imports. Specifically, the results reveal that when the ratio of total trade to GDP, the ratio of exports to GDP, and the trade openness index are used as proxies of trade openness, then trade openness has a significant, positive impact on economic growth in both the short run and the long run. However, when the ratio of imports to GDP is used as a proxy for openness, the study fails to find any significant impact of trade openness on economic growth in both the short run and the long run. Based on these findings, this study recommends that Botswana should pursue policies that boost the exports and total trade. However, there is a need for the country to revisit its combination of imports to enable significant growth-enhancing effects from the imports sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1783878 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783878 Template-Type: ReDIF-Article 1.0 Author-Name: E. Chuke Nwude Author-X-Name-First: E. Chuke Author-X-Name-Last: Nwude Author-Name: Robinson O. Ugwoke Author-X-Name-First: Robinson O. Author-X-Name-Last: Ugwoke Author-Name: Peter Chinyere Uruakpa Author-X-Name-First: Peter Chinyere Author-X-Name-Last: Uruakpa Author-Name: Ugochukwu Sebastine Ugwuegbe Author-X-Name-First: Ugochukwu Sebastine Author-X-Name-Last: Ugwuegbe Author-Name: Nnenna G. Nwonye Author-X-Name-First: Nnenna G. Author-X-Name-Last: Nwonye Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Official development assistance, income per capita and health outcomes in developing countries: Is Africa different? Abstract: In this study, we investigate the effect of official development assistance and income per capita on health outcomes in developing countries. Health outcome is proxied by life expectancy and under-5-mortality rate. We accounted for the endogeneity problem in the model by employing a dynamic two-step system generalized method of moments (GMM) estimator. We find that official development assistance does not improve health outcome in developing countries, while income per capital significantly improves health outcome in developing countries. The study reports that CO2 emission is not a significant determinant of health outcome in developing countries but the prevalence of HIV and Immunization significantly determines health outcomes in developing countries. More specifically the prevalence of HIV increases the under-5-mortality rate and decreases life expectancy; immunization increases life expectancy but decreases under-5-mortality rate. It was equally revealed in the study that health outcome in Sub-Saharan Africa (SSA) does not significantly differ from health outcomes in other developing countries. We equally reported that the effect of income per capita on health outcome in Sub-Saharan Africa countries is not significantly different from that of non-SSA countries. The effect of official development assistant on health outcome in SSA was found to be significantly different from non-SSA countries. The study reveals that the effect of ODA on life expectancy in SSA is less compared to its effect on non-SSA countries. Similarly, the effect of ODA on under-5-mortality is higher in SSA countries as against other non-SSA countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1774970 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1774970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1774970 Template-Type: ReDIF-Article 1.0 Author-Name: Sarthak Kumar Jena Author-X-Name-First: Sarthak Author-X-Name-Last: Kumar Jena Author-Name: Chandra Sekhar Mishra Author-X-Name-First: Chandra Sekhar Author-X-Name-Last: Mishra Author-Name: Prabina Rajib Author-X-Name-First: Prabina Author-X-Name-Last: Rajib Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of the choice of share buyback methods: A study in India Abstract: This study examines signaling, excess cash flow, substitution, leverage, agency cost, stock and liquidity hypotheses by considering firm-specific parameters to find out their impact on selection between tender offer and open market method while doing buyback. This study is based on the basic premise that the rules and regulations those govern these two methods are completely different and have different objectives. This study takes 430 non-financial buybacks from 1998–1999 to 2017–2018 for analysis and these buybacks segregated in terms of tender offer (176) and open market methods (254). In this study, both univariate and multivariate tests have been employed. T-test and Wilcoxon rank sum test are used for univariate analysis, and logistic regression is used for multivariate analysis. The empirical findings corroborate the evidence that free cash flow hypothesis, leverage hypothesis, agency cost hypothesis and liquidity hypothesis are the prime motivators for choosing of tender offer than open market share repurchase. This study finds that dividend paid and choosing of tender offer are substitutes. The results also support the notion that for correcting short-term undervaluation firms choose tender offer rather than open market methods. This study is the first comprehensive analysis in the Indian context to find out the motivations behind the selection of share repurchase methods. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782073 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782073 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Tawiah Baidoo Author-X-Name-First: Samuel Tawiah Author-X-Name-Last: Baidoo Author-Name: Hadrat Yusif Author-X-Name-First: Hadrat Author-X-Name-Last: Yusif Author-Name: Enock Kojo Ayesu Author-X-Name-First: Enock Kojo Author-X-Name-Last: Ayesu Author-Name: Walid Mensi Author-X-Name-First: Walid Author-X-Name-Last: Mensi Title: Improving loan repayment in Ghana: Does financial literacy matter? Abstract: Loan defaults continue to be a major challenge that confronts financial institutions in developing countries and this impedes their potential role in sustainable development. Given the enormity of loan defaults, policymakers have devoted much attention to the phenomenon by implementing strategies and policies aimed at improving loan repayment to avert the situation. To complement the effort of policymakers, several empirical studies have also been conducted regarding loan repayment determinants; but what is worrying is that none of these studies emphasises the role of financial literacy, especially in the Ghanaian context. This study therefore examines the potential effect of financial literacy on loan repayment. We rely on primary data and employ the binary probit regression for the analysis. The results reveal a positive and significant relationship between financial literacy and loan repayment. This means that enhancing financial literacy improves loan repayment significantly which will in turn ensure sustainability of the financial institutions. The level of education of borrowers is also revealed to play a key role in loan repayment. Given the findings, the study sheds new lights on how loan repayment can be improved to ensure a vibrant banking sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1787693 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1787693 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1787693 Template-Type: ReDIF-Article 1.0 Author-Name: Alula Tafesse Author-X-Name-First: Alula Author-X-Name-Last: Tafesse Author-Name: Degiye Goshu Author-X-Name-First: Degiye Author-X-Name-Last: Goshu Author-Name: Fekadu Gelaw Author-X-Name-First: Fekadu Author-X-Name-Last: Gelaw Author-Name: Alelign Ademe Author-X-Name-First: Alelign Author-X-Name-Last: Ademe Author-Name: Goodness Aye Author-X-Name-First: Goodness Author-X-Name-Last: Aye Title: Commercialization of Moringa: Evidence from Southern Ethiopia Abstract: The policies in Ethiopia to advance the commercial orientation of farmers need identification of challenges at farmer level and exhaustive actions to shift the farm sector. Further activities have to be done to change the country’s present subsistence-oriented farm production system of different crops. The research has aimed at investigating factors determining the Moringa commercialization in southern Ethiopia. The cross-sectional survey method was used to identify 232 Moringa producing smallholder farmers from Wolaita and Gamo zones. Heckman’s two-step sample selection model is adopted to find factors determining the probability of Moringa market participation and the intensity of participation. The study result revealed that the likelihood of the Moringa output market participation is influenced by the variables such as location, access to irrigation, and distance to market. On the other hand family size, per capita income, frequency of extension contact, access to irrigation, access to credit, and distance to market are among significantly influencing factors of the extent of Moringa marketing. Therefore, policy agents should mainly consider these variables on any development activities to improve Moringa marketing. Furthermore, it requires improving extension services and offering immediate practical training on techniques of market-oriented and value-added Moringa production and marketing systems. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1783909 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783909 Template-Type: ReDIF-Article 1.0 Author-Name: Beza Muche Teka Author-X-Name-First: Beza Muche Author-X-Name-Last: Teka Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Factors affecting bank customers usage of electronic banking in Ethiopia: Application of structural equation modeling (SEM) Abstract: Electronic banking services have not been widely used by most bank customers in Ethiopia; most bank customers continue to conduct most of their banking transactions using traditional methods. Therefore, the main objective of this study is to identify factors that affect customers’ usage of electronic banking services. The type of research applied in this study is explanatory in nature. A research model was developed by integrating the constructs of Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB). A total of 420 actual users of e-banking services were used as a sample. A well-structured questionnaire was used to collect the relevant information. The data analyzed using Structural Equation Modeling revealed that perceived usefulness, perceived ease of use, attitude towards e-banking, perceived behavioral control, subjective norms, behavioral intention, awareness as well as the availability of internet/network connection have a significant positive impact on users e-banking usage practice. However, perceived risk has a significant negative impact. These findings suggest that banks in Ethiopia should create awareness to their customers with regard to the usage and benefits of e-banking service delivery channels. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1762285 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1762285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1762285 Template-Type: ReDIF-Article 1.0 Author-Name: Vinod Kumar Author-X-Name-First: Vinod Author-X-Name-Last: Kumar Author-Name: Ganesh Kumar Nidugala Author-X-Name-First: Ganesh Kumar Author-X-Name-Last: Nidugala Author-Name: Sergio Rossi Author-X-Name-First: Sergio Author-X-Name-Last: Rossi Title: Impact of primary market on total factor productivity: A cross-country analysis Abstract: Schumpeter argued that entrepreneurial finance causes the absorption of innovation in the economy and productivity growth. Previous empirical work, however, reported an insignificant relationship between the primary equity market and economic growth, and suggested exploration of the routes through which the primary equity market may affect economic growth. In the present study, we examined the impact of the primary equity market on total factor productivity (TFP) and non-TFP growth in a cross-country setting using panel data analysis and the GMM approach. We employed published data relating to 87 countries for the period 1990–2014. We found a positive impact of the primary equity market on TFP in both developed and developing economies, without a significant difference. The impact of the primary equity market on non-TFP growth was found to be significant in developing economies only. The findings suggest that the primary equity market boosts growth in all economies, but the impact is higher in developing economies. Findings of the study suggest that policy makers should focus on developing primary equity market to foster economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1786293 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1786293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1786293 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Nasih Author-X-Name-First: Mohammad Author-X-Name-Last: Nasih Author-Name: Admiralty SaAvira Al-Cholili Author-X-Name-First: Admiralty SaAvira Author-X-Name-Last: Al-Cholili Author-Name: Iman Harymawan Author-X-Name-First: Iman Author-X-Name-Last: Harymawan Author-Name: Imran Haider Author-X-Name-First: Imran Author-X-Name-Last: Haider Author-Name: Nadia Klarita Rahayu Author-X-Name-First: Nadia Klarita Author-X-Name-Last: Rahayu Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Political connections, overinvestment and governance mechanism in Indonesia Abstract: The purpose of this study is to investigate the association between political connections and overinvestment in Indonesia as a democratic, multi-party and developing country. This study uses sample of 1,044 and 543 firm-year observations from listed firms on the Indonesian Stock Exchange from 2012 to 2017. A two-stage model is used to address overinvestment, which used two different measurements, then continued by ordinary least square regression to establish the main analysis result. This study finds that political connection is negatively associated with overinvestment in Indonesia. We also find that this negative association is increasing due to the existence of governance mechanism from both external and internal parties of the firm. Our results indicate that the significant negative associations between political connections with overinvestment, which later is strengthen by governance mechanism might be caused by several differences in institutional setting and/or political connections benefits between the previous research in China and with the place where this research is taken. This paper could give insights in decision-making for stakeholders to anticipate certain harmful issues to the companies that might be occurred by their politically connected top management like directors and commissioners. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1790220 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790220 Template-Type: ReDIF-Article 1.0 Author-Name: Sayed O. M. Timuno Author-X-Name-First: Sayed O. M. Author-X-Name-Last: Timuno Author-Name: Joel Hinaunye Eita Author-X-Name-First: Joel Hinaunye Author-X-Name-Last: Eita Author-Name: Lanouar Charfeddine Author-X-Name-First: Lanouar Author-X-Name-Last: Charfeddine Title: Towards an effective fiscal stimulus: Evidence from Botswana Abstract: While there is a general agreement on the effectiveness of fiscal stimulus, there is no consensus on which stimulus is better. To address this concern, this paper uses a Dynamic Stochastic General Equilibrium (DSGE) model to propose a fiscal stimulus that Botswana can adopt given the slowing mining productivity. The results suggest that short-run macroeconomic stabilisation can be achieved through a cut in labour taxes. This fiscal stimulus generates larger growth multipliers and contributes relatively more employment compared to a cut in consumption tax and increases in government spending. The findings also revealed that a cut in labour taxes improves trade balance, resulting in a greater accumulation of international reserves and has no Dutch disease effects. These results suggest the need for a labour tax policy reform. These results also offer some policy options for other developing countries, which may face similar fiscal risks in future. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1790948 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790948 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Huu Anh Author-X-Name-First: Nguyen Author-X-Name-Last: Huu Anh Author-Name: Nguyen La Soa Author-X-Name-First: Nguyen Author-X-Name-Last: La Soa Author-Name: Ha Hong Hanh Author-X-Name-First: Ha Hong Author-X-Name-Last: Hanh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Environmental accounting practices and cost of capital of enterprises in Vietnam Abstract: This study aimed to investigate the nexus between the level of environmental financial accounting practices (EFAP) and cost of capital. The population of this study is 1.188 firm-year observations. However, we excluded 408 firm-year with less than 2 years of information to calculate EFAP, 73 firm-year without sufficient financial accounting information to calculate the cost of capital and 35 firm-year without sufficient financial accounting information to calculate control variables. Finally, this paper used a sample of 672 firm-year observations of listed companies on the Vietnam stock market for 5 years from 2013 to 2017. Two-stage regressions with the lag term are adopted to address econometric issues and to improve the accuracy of the regression coefficients. The results show that Vietnamese firms with higher EFAP performance can rapidly reduce their cost of capital. The findings also indicate that capital structure does not play a moderating role to evaluate the relationship between EFAP and the cost of capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1790964 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790964 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790964 Template-Type: ReDIF-Article 1.0 Author-Name: Manuel Barron Author-X-Name-First: Manuel Author-X-Name-Last: Barron Author-Name: Antonio Belso-Martinez Author-X-Name-First: Antonio Author-X-Name-Last: Belso-Martinez Title: Business training programs and microenterprise formalization in Peru Abstract: A large share of workers in developing countries are constrained to self-employment mainly due to lack of opportunities in wage employment, becoming entrepreneurs de facto constrained to the informal sector, with meager profits and poor working conditions. In response to this problem, several governments offer business training programs targeted at these entrepreneurs with two aims: to improve business outcomes and to promote enterprise formalization. This paper explores the relation between business training programs and formalization using data of 1,133 participants in two entrepreneurship programs in Peru. Difference-in-differences with various matching techniques indicate that formalization increased by 20–25 percentage points 2 years after program participation. This study presents suggestive evidence of three potential mechanisms behind this increased formalization rates: the opportunity to reconsider participants’ original business plans, the demystification of the tax procedures, and access to seed capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1791546 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1791546 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1791546 Template-Type: ReDIF-Article 1.0 Author-Name: Boitumelo Nnoi Yolanda Sekati Author-X-Name-First: Boitumelo Nnoi Yolanda Author-X-Name-Last: Sekati Author-Name: Johannes Tshepiso Tsoku Author-X-Name-First: Johannes Tshepiso Author-X-Name-Last: Tsoku Author-Name: Lebotsa Daniel Metsileng Author-X-Name-First: Lebotsa Daniel Author-X-Name-Last: Metsileng Author-Name: Damir Tokic Author-X-Name-First: Damir Author-X-Name-Last: Tokic Title: Modelling the oil price volatility and macroeconomic variables in South Africa using the symmetric and asymmetric GARCH models Abstract: This article employed the ARCH, GARCH and EGARCH models to model the oil price volatility and macroeconomic variables in South Africa for the period 1990Q1 to 2018Q2. The macroeconomic variables used in the study are GDP, inflation, interest rate and exchange rates. According to ARCH (1) and GARCH (1, 1) models, exchange rate and interest rate have a negative effect on the oil price, while GDP and inflation suggesting a positive effect. The results for GDP and inflation imply that a 1% increase in GDP and inflation may lead to an increase in oil price. The negative effect on interest rate and exchange rate led by their negative values implies that a 1% increase in interest rate and exchange rate may lead to a decrease in oil price. The EGARCH (1, 1) model revealed that oil price is negatively affected by all the macroeconomic variables. This implies that a 1% increase in these variables may lead to a decrease in oil price. The symmetric and asymmetric techniques revealed that the South African oil prices are volatile. The article recommends that South African policy makers should have a view on the impact of oil price volatility on the South African economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1792153 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1792153 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1792153 Template-Type: ReDIF-Article 1.0 Author-Name: Josephat Lotto Author-X-Name-First: Josephat Author-X-Name-Last: Lotto Author-Name: Damir Tokic Author-X-Name-First: Damir Author-X-Name-Last: Tokic Title: Understanding sociodemographic factors influencing households’ financial literacy in Tanzania Abstract: This paper primarily aimed at examining the influence households’ demographic characteristics on the level of their financial literacy in Tanzania. The paper employs secondary data from the FinScope survey conducted by Financial Sector Deepening Trust (FSDT). To do so, the study employed both bivariate and multivariate analytical techniques. The study, reveals that the adult population exhibits large financial literacy gap- and, therefore, adults should not be considered as a homogenous group- rather gender, age, education and income levels of the households, which are showcased in this study, to also be taken into consideration while designing financial literacy improvement public initiatives. In particular, the study concludes that men are more inclined to have higher levels of financial literacy than women something which limits their financial decisions making ability. It is also concluded that younger households and those with higher income levels are equipped with higher financial literacy levels. Likewise, more educated and employed households tend to have higher levels of financial literacy. It, therefore, follows that programs to foster financial knowledge among households should be targeted at marginalized groups like women, the elderly and those with low incomes and educational attainment. As the main contribution of the research, it is highlighted that this is a pioneer study in the Tanzanian context, by proposing a model that identifies which socioeconomic and demographic factors influence the propensity for a low or high financial literacy level. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1792152 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1792152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1792152 Template-Type: ReDIF-Article 1.0 Author-Name: J. Lawrenson Author-X-Name-First: J. Author-X-Name-Last: Lawrenson Author-Name: Z. Dickason-Koekemoer Author-X-Name-First: Z. Author-X-Name-Last: Dickason-Koekemoer Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A model for female South African investors’ financial risk tolerance Abstract: Research relating to the influence of investor’s demographic factors and personality traits on financial risk tolerance receives increasing attention. Financial risk tolerance refers to the degree of uncertainty an investor is willing to bear, with regards to the financial risks taken on. The investor’s personality refers to the stable characteristics an individual tends to display in any given situation. Personality traits may therefore also be considered as a driver in investor financial decisions. Understanding the influence gender and personality traits have on an investor’s financial risk tolerance, will assist in predicting their financial and investment decisions with regards to their asset portfolios. The purpose of this article is to develop a structural equation model for investment firms to more accurately profile their female investors, considering their personality traits, level of risk tolerance and level of education. Results from this study are in line with previous investment and portfolio management research. Results indicate that male investors are more risk-tolerant than their female counterparts. Furthermore, investors’ level of education significantly influenced their level of financial risk tolerance. Personality traits were found to influence female investors financial risk tolerance. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1794493 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1794493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1794493 Template-Type: ReDIF-Article 1.0 Author-Name: Raphael Kolade Ayeni Author-X-Name-First: Raphael Kolade Author-X-Name-Last: Ayeni Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Determinants of private sector investment in a less developed country: a case of the Gambia Abstract: The Gambia as one of the LDCs has made so many efforts to industrialize its economy. The Gambia Investment and Export Promotion Agency, GIEPA, was formed to develop Free Zones in selected locations to enable investors to operate in a more macroeconomic friendly environment. Despite all efforts, the Gambia economy suffers from limited availability of foreign exchange, weak agricultural output, a slowdown in their major investment—tourism, high inflation, a huge fiscal deficit, and a huge domestic debt burden. This study identified the determinants of domestic private investment in the Gambia. The study employed the ARDL Co- integration method to analyze a long-run equilibrium model of private investment. Exchange rate, credit to private sector, external debts, Real Interest Rate, Real Exchange Rate, Inflation, among others were identified as exogenous variables. Findings show that high exchange rate increased the real cost of import especially capital goods thereby making investment very costly. Financing of huge debts also inhibited private investment in the Gambia. Aggregate Demand Condition, Real Interest Rate, Real Exchange Rate, Inflation all performed below expectation. Credit to the private sector has not contributed effectively to boost private investment in the Gambia due to insufficient credit. The study therefore suggests an exchange rate policy that will be favorable to reduce cost of imported capital goods. The Gambia should look inward for the supplying of raw materials locally or promote investment in the areas where the required raw materials are available locally as stated by the comparative advantage theory. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1794279 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1794279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1794279 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Peprah Author-X-Name-First: Charles Author-X-Name-Last: Peprah Author-Name: Ibrahim Abdulai Author-X-Name-First: Ibrahim Author-X-Name-Last: Abdulai Author-Name: Williams Agyemang-Duah Author-X-Name-First: Williams Author-X-Name-Last: Agyemang-Duah Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Compliance with income tax administration among micro, small and medium enterprises in Ghana Abstract: In a developing country like Ghana, Micro, Small, and Medium Scale Enterprises (MSMEs) play an important role in the socio-economic development of the economy. Payment of income tax by MSMEs remains one of the key sources of government revenue for development activities in Ghana. However, not much is known regarding the compliance of MSMEs with income tax administration in Ghana. Understanding income tax administration compliance and associated challenges among MSMEs could assist relevant policy actors in designing strategies to improve income tax administration in Ghana. Against this background, a mixed-method study involving 210 (200 MSMEs and 10 key informants) sample was conducted to examine the compliance of MSMEs with income tax administration in the Nkwanta South District of Ghana. The study revealed a lack of tax education, high tax rate, low level of income, and high household consumption levels as the dominant and influential factors to tax compliance among the MSMEs. The study further showed that challenges associated with tax administration include low institutional capacity, inadequate resources, negative public attitude towards tax payment, lack of collaboration between the tax agencies, and political interference. Based on these findings, it is important for policymakers and tax collection institutions to strengthen and streamline existing measures to ensure effective income tax administration in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1782074 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782074 Template-Type: ReDIF-Article 1.0 Author-Name: Thu Thuy Nguyen Author-X-Name-First: Thu Thuy Author-X-Name-Last: Nguyen Author-Name: Van Chien Nguyen Author-X-Name-First: Van Chien Author-X-Name-Last: Nguyen Author-Name: Trong Nguyen Tran Author-X-Name-First: Trong Nguyen Author-X-Name-Last: Tran Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Oil price shocks against stock return of oil- and gas-related firms in the economic depression: A new evidence from a copula approach Abstract: This research examines the influence of world crude oil price shocks on the financial performance of Vietnamese oil- and gas-related firms. Based on copula approach and the sample data of domestic giant oil- and gas firms from 2009 to 2019, in particular in the situation of oil price steadily going up and economic depression of 2011–2012; approximately nine copulas including Gauss, Clayton, Rotated-Clayton, Plackett, Frank, Gumbel, Rotated-Gumbel, Student, Symmetrized-Joe-Clayton have been focused. A new evidence could be found that the oil price shocks have not impacted on the stock return of oil- and gas-related firms in the wave of increasing oil price, but a lagged period of time oil- and gas-related firms could receive more stock returns. The results further demonstrate that world oil price fluctuations have significantly impacted on the financial performance of some firms as PVS, PVG, and PET in the pre-depression period. In respect to the economic depression of 2011–2012, the study reveals no evidence in the relationship between world oil price fluctuations and stock returns of oil- and gas-related firms. In other words, results in the post-depression period suggest that world oil price shocks can affect stock returns of selected giant oil- and gas-related firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1799908 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799908 Template-Type: ReDIF-Article 1.0 Author-Name: Anthony Adu-Asare Idun Author-X-Name-First: Anthony Adu-Asare Author-X-Name-Last: Idun Author-Name: Anthony Q. Q. Aboagye Author-X-Name-First: Anthony Q. Q. Author-X-Name-Last: Aboagye Author-Name: Godfred Alufar Bokpin Author-X-Name-First: Godfred Alufar Author-X-Name-Last: Bokpin Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: The effect of bank market power on economic growth in Africa: The role of institutions Abstract: We provide empirical investigations into the role of political institutions in the bank market power-economic growth nexus using country-level data from 44 African countries from 2002 to 2015. We employed a dynamic GMM model to achieve the above objective. The results show that banks with market power in Africa induce economic growth. Also, institutional quality improvement causes positive economic growth and improves the degree with which banks with market power influence economic growth. The influence of institutional quality on economic growth, however, varies depending on specific institutional factors even when we differentiated the effect of the level of bank market power. In West Africa, banks with market power induce economic growth, but the less competitive nature in the banking environment of the other sub-regions discourages economic growth. The results call for policy directions that improve economic and political institutions towards improving effective intermediation in Africa. In West Africa, the Central Banks should come up with regulations targeting large banks with market power to channel funds into productive sectors. In other sub-regions, more competitive banking environments can harness financial resources into productivity growth. The implication is that, regulators and policymakers should implement sound institutional structures that would ensure tailor-made banking system structure to stimulate sustainable economic growth in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1799481 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799481 Template-Type: ReDIF-Article 1.0 Author-Name: Brian Tavonga Mazorodze Author-X-Name-First: Brian Tavonga Author-X-Name-Last: Mazorodze Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Youth unemployment and murder crimes in KwaZulu-Natal, South Africa Abstract: The relationship between crime and unemployment has a long history in social science and remains a central point of debate for politicians today. In this paper, the objective is to establish whether youth unemployment has a causal effect on murder cases in KwaZulu-Natal; a province in South Africa facing high levels of both and the contribution is methodological. In particular, this paper pioneers the application of a control function procedure in testing and controlling idiosyncratic endogeneity within a count data framework in a bid to isolate the exogenous effect of youth unemployment on murder crimes. Using local municipality-level panel data observed between 2006 and 2017 and holding constant standard control variables, youth unemployment is found to be exogenous to omitted time-varying correlates suggesting that classical count data models with entity-fixed effects suffice. Also confirmed is that the control function approach reports results that are similar to the classical Poisson estimator while the Negative Binomial alternative tends to underestimate the effect of youth unemployment on crime by about 10%. Consistent with the majority of studies in literature, the analysis finds a positive and sizeable effect of youth unemployment on murder offences. A percentage point increase in youth unemployment increases the odds of murder occurrence by 1.6–1.8 times. This suggests that South Africa’s labour market could be linked to murder crimes in KwaZulu-Natal and that a social policy aimed at creating jobs for young people can be an alternative way of combating murder crimes in the province. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1799480 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799480 Template-Type: ReDIF-Article 1.0 Author-Name: Pierre J. Venter Author-X-Name-First: Pierre J. Author-X-Name-Last: Venter Author-Name: Eben Mare Author-X-Name-First: Eben Author-X-Name-Last: Mare Author-Name: Edson Pindza Author-X-Name-First: Edson Author-X-Name-Last: Pindza Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Price discovery in the cryptocurrency option market: A univariate GARCH approach Abstract: In this paper, two univariate generalised autoregressive conditional heteroskedasticity (GARCH) option pricing models are applied to Bitcoin and the Cryptocurrency Index (CRIX). The first model is symmetric and the other takes asymmetric effects into account. Furthermore, the accuracy of the GARCH option pricing model applied to Bitcoin is tested. Empirical results indicate that asymmetry is not an important factor to consider when pricing options on Bitcoin or CRIX, this is consistent with findings in the literature. In addition, the GARCH option pricing model provides realistic price discovery within the bid-ask spreads suggested by the market. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1803524 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1803524 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1803524 Template-Type: ReDIF-Article 1.0 Author-Name: Woradee Jongadsayakul Author-X-Name-First: Woradee Author-X-Name-Last: Jongadsayakul Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The effect of new futures contracts on gold futures price volatility: Evidence from the Thailand futures exchange Abstract: This paper studies the effect of new gold derivatives products, including Gold-D and Gold Online Futures, on the futures price volatility of existing gold futures with two contract sizes, 50 baht-weight and 10 baht-weight, using symmetric and asymmetric GARCH family models, namely: GARCH (1,1), TARCH (1,1), and EGARCH (1,1) models. The results reveal the existence of leverage effect in TARCH (1,1) and EGARCH (1,1) models. Moreover, TARCH (1,1) is found as the best fitting model in modelling gold futures price volatility. The results confirm that the coming into market of Gold-D significantly reduces the price volatility of existing gold futures. There is not a significant negative relationship between the introduction of Gold Online Futures and the existing gold futures price volatility. Therefore, the results suggest regulatory authority to lower the level of margin requirements for the related futures contracts, along with the issuance of new derivatives products. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1802807 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802807 Template-Type: ReDIF-Article 1.0 Author-Name: Pendo Shukrani Kasoga Author-X-Name-First: Pendo Shukrani Author-X-Name-Last: Kasoga Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Does investing in intellectual capital improve financial performance? Panel evidence from firms listed in Tanzania DSE Abstract: Despite that reviews have been done in intellectual capital and the performance of firms, their status has remained uncertain in the emerging economy. Previous studies have generally focused on single industries and have overlooked the input of the service and manufacturing sectors as a whole. This study offers new insight into the area of intellectual capital and its relationship with firms’ performance in Tanzania and evaluates intellectual capital within the service and manufacturing sectors in totality. Using panel regression analysis for the periods of 2010 to 2019, the performance was measured in terms of SG, ROA, ATO, and Tobin’s. Heteroscedasticity and endogeneity were controlled using clustered robust standard errors. The empirical findings demonstrate a significant positive influence between structural capital efficiency and SG, ROA, ATO, and Tobin’s. However, the effect of human capital efficiency and capital employed efficiency were negative which suggests poor investment in human skills and capital of the firms. Further, VAIC was significantly positively associated with SG, ATO, ROA, and Tobin’s Q. It is recommended that to have a competitive advantage, managers and policymakers should focus on the three parts of intellectual capital which are the key drivers of value creation in the organization. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1802815 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802815 Template-Type: ReDIF-Article 1.0 Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Anokye M. Adam Author-X-Name-First: Anokye M. Author-X-Name-Last: Adam Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Connectedness of cryptocurrencies and gold returns: Evidence from frequency-dependent quantile regressions Abstract: This paper explores the symmetric and asymmetric dependency structure of decomposed return series of Gold and eight cryptocurrencies to establish the hedging and diversification potentials of these asset classes. Daily data spanning 30 April 2013 to 18 April 2019 are employed within the Ensemble Empirical Mode Decomposition and Quantile-in-Quantile regression techniques. Our empirical results provide evidence that cryptocurrencies and Gold can both hedge and diversify for each other at different conditional distributions of their returns. We also find that cryptocurrencies are not purely speculative but can be driven by medium- and long-term fundamentals. In addition, both Gold and cryptocurrencies can be hedge and diversifiers for other traditional asset classes such as crude oil, fiat currencies, and other commodities. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1804037 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804037 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804037 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher Dick-Sagoe Author-X-Name-First: Christopher Author-X-Name-Last: Dick-Sagoe Author-Name: Jorge Miguel Lopo Gonçalves Andraz Author-X-Name-First: Jorge Miguel Lopo Gonçalves Author-X-Name-Last: Andraz Title: Decentralization for improving the provision of public services in developing countries: A critical review Abstract: Decentralisation, which sends power and resources from the Central to local governments, comes with several theoretical promises. One such promise is the improvement in local service provision. However, achieving these theoretical promises of decentralization has been a big challenge in most developing countries. This study aims to address the question “does decentralization improve service delivery levels at the local level, as promised?” This study reviews work on decentralization and service provision in developing countries and bring out some lessons from these works. To do this, the study falls on a set of articles from world-class scholars on decentralisation and service provision and key findings and themes from their works. As has been stressed in the conclusion, decentralisation has made some gains in meeting the real needs of local people in terms of service provision. In some instances, increases in the expenditure of local governments have increased service provision levels. However, the level of quality of these service providers through decentralisation has remained questionable. The author argues that an increase in service provision is good; however, it is the quality of these service provisions at the local level that can reduce poverty at the local level. The study, therefore, recommends for a revisit of the design of decentralisation to embrace the type which seeks to empower the local people to demand transparency and accountability from local government officials. With this, the effectiveness of administrative, fiscal and political decentralisation along with clear channels for local accountability and transparency are necessary for improved and quality service provision. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1804036 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804036 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804036 Template-Type: ReDIF-Article 1.0 Author-Name: Kazeem Abimbola Sanusi Author-X-Name-First: Kazeem Abimbola Author-X-Name-Last: Sanusi Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: On the relation between government expenditure and revenue in South Africa: An empirical investigation in a nonlinear framework Abstract: The study explores the nonlinear linkage between government expenditure and government revenue using quarterly data from the first quarter of 1965 to the second quarter of 2019. Linear models are first deployed to determine the order of integration of the variables, cointegration, granger causality and variance decomposition within the SVAR model. Nonlinear techniques are employed to spot the asymmetric relation of the univariate and the expenditure and revenue linkage. Asymmetric adjustments are carried out to unknot the dynamic mechanism based on the threshold vector autoregressive model (TVAR) and threshold vector error-correction model (TVECM). Finally, the Markov Switching model is employed to determine the tendency of the variables to remain in a particular region and their transition probabilities. The empirical findings suggest the presence of nonlinear but one-way causal relation between government expenditure and revenue. The results show that adjustment mechanism of government expenditure towards the equilibrium is more persistent than government revenue when the threshold level is attained. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1803523 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1803523 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1803523 Template-Type: ReDIF-Article 1.0 Author-Name: Hazwan Haini Author-X-Name-First: Hazwan Author-X-Name-Last: Haini Author-Name: Jorge Miguel Lopo Gonçalves Andraz Author-X-Name-First: Jorge Miguel Lopo Gonçalves Author-X-Name-Last: Andraz Title: Examining the productivity of the ASEAN economies in the presence of transient and persistent efficiency Abstract: In recent decades, the ASEAN economies have implemented a number of regional integration policies. Using a panel dataset of 10 ASEAN countries from 1980 to 2017, this study examines the productivity and efficiency of the ASEAN economies using a stochastic production frontier model. Furthermore, the parametric model is decomposed using a generalised Malmquist productivity index to provide estimates of gross technical efficiency, technical progress and returns to scale change, while taking into account of transient and persistent efficiency. The results show that there is room for efficiency gains, as the ASEAN economies can increase GDP by 7.7 per cent if persistent efficiency is increased. Furthermore, the results show that technical progress is increasing over time and exhibits increasing returns to scale. However, technical change is slow, as it averages at one per cent over the sample period. Policy implications for future growth are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1805138 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1805138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1805138 Template-Type: ReDIF-Article 1.0 Author-Name: Ronal Chand Author-X-Name-First: Ronal Author-X-Name-Last: Chand Author-Name: Rup Singh Author-X-Name-First: Rup Author-X-Name-Last: Singh Author-Name: Arvind Patel Author-X-Name-First: Arvind Author-X-Name-Last: Patel Author-Name: Devendra Kumar Jain Author-X-Name-First: Devendra Kumar Author-X-Name-Last: Jain Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Export performance, governance, and economic growth: evidence from Fiji - a small and vulnerable economy Abstract: This article analyses the nexus between exports, established indicators of governance, and economic growth in Fiji. It finds that exports and governance co-operate to promote economic growth. The interplay between these variables is also meaningful. The findings imply that Fiji needs to improve export productivity and quality of institutional governance to ensure persistent rates of economic growth. Other variables such as human capital, private investment, foreign aid, and policy environment are also growth-enhancing in this small and vulnerable economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1802808 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802808 Template-Type: ReDIF-Article 1.0 Author-Name: Kentaka Aruga Author-X-Name-First: Kentaka Author-X-Name-Last: Aruga Author-Name: Sudha Kannan Author-X-Name-First: Sudha Author-X-Name-Last: Kannan Title: Effects of the 2008 financial crisis on the linkages among the oil, gold, and platinum markets Abstract: To find out if gold remains to be unlinked with the crude oil market after the 2008 financial crisis, we investigated how long-run price linkages and price causalities among crude oil and gold markets changed before and after the crisis. To have a good reference, we also tested the same issue for the oil-platinum relationship. Using the cointegration methods, we found little evidence that gold began to have a price linkage with the crude oil market after the 2008 financial crisis. Conversely, we identified a long-run relationship between the crude oil and platinum markets after the crisis. Hence, we found that compared to the platinum market, the gold market remained unlinked with the oil market after the 2008 financial crisis indicating that it continued to be independent of the crude oil market. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1807684 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1807684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1807684 Template-Type: ReDIF-Article 1.0 Author-Name: Tu DQ Le Author-X-Name-First: Tu DQ Author-X-Name-Last: Le Author-Name: Van TH Nguyen Author-X-Name-First: Van TH Author-X-Name-Last: Nguyen Author-Name: Son H Tran Author-X-Name-First: Son H Author-X-Name-Last: Tran Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Geographic loan diversification and bank risk: A cross-country analysis Abstract: This study investigates the geographic loan expansion on bank risk using the aggregate data of 53 countries from 2005 to 2016 using the system generalized method of moments. Our findings show that global expansion tends to increase bank insolvency and reduce bank adjusted-risk-performance. Our findings further indicate loans distributed to advanced markets tend to reduce bank stability while the proportion of loans to other emerging markets and developing countries may have the potential to improve bank solvency and risk-adjusted-performance. As diversification is seen as a necessary strategy to diversify bank risks, bank managers should put more attention to emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1809120 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1809120 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1809120 Template-Type: ReDIF-Article 1.0 Author-Name: Stanley K. Kirika Author-X-Name-First: Stanley K. Author-X-Name-Last: Kirika Author-Name: Rosanna Spano Author-X-Name-First: Rosanna Author-X-Name-Last: Spano Title: Monetary de-measurement of taxation using cogni-economic pressure coefficient on a continuous progressivity model: Towards equitable taxation for Kenya Abstract: Tax derives from subjects’ earnings measured in monetary terms, a principle anchored in financial accounting. The canon of equity, especially the vertical form, sometimes referred to as “ability to pay” remains monetary. However, negating conventional horizontal equity, equal taxable incomes often require employment of different economic rationality levels to earn them depending on the profession or sector the tax payer comes from; hence different cognitive energies are required to generate the same taxable income—disapproving the mere “ability to pay” paradigm. From the Gamma Rationality Measure for the credit unions sector that comprises 67% of Kenyan economic livelihoods and using a combination of econometric and Riemann double integral methods, the income consumption rationality function is derived, from which a Cogni-economic Pressure Coefficient is generated for each income level. The coefficient is used to work out a more equitable tax structure from a continuous progressivity tax model, for greater equity, incidentally securing a boost to productivity and economy canons of tax administration—a global lesson, specific for Kenya. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1804038 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804038 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804038 Template-Type: ReDIF-Article 1.0 Author-Name: Mehdi Zolfaghari Author-X-Name-First: Mehdi Author-X-Name-Last: Zolfaghari Author-Name: Saeid Hoseinzade Author-X-Name-First: Saeid Author-X-Name-Last: Hoseinzade Author-Name: Numan Ulku Author-X-Name-First: Numan Author-X-Name-Last: Ulku Title: Impact of exchange rate on uncertainty in stock market: Evidence from Markov regime-switching GARCH family models Abstract: We employ the Markov Regime-Switching GARCH (MRS- GARCH) family models under the normal, Student’s t-, and GED distributions to measure the uncertainty of the industry index returns (IIR) of Tehran Stock Exchange over the period of 2013–2019. The models distinguish between two different regimes in both conditional mean and conditional variance. The results show that the MRS-EGARCH-in-mean (MRS-EGARCH-M) models under GED and Student’s t-distributions have the best performance to model the IIR volatility. We find evidence of regime-switching behaviour in Iran’s stock market. After removing the forecastable component (expected variation) from the best fitted models, we measure the time series of the IIR uncertainty (unforecastable component) and estimate the impact of exchange rate fluctuations on them using an autoregressive distributed lag (ARDL) model. We find that foreign exchange rate fluctuations have a significant and distinct impact on the IIR uncertainty across various regimes. The results show that the exchange rate generally has a negative and positive impact on the IIR uncertainty for export and import-oriented industries, respectively, under both regimes. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1802806 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802806 Template-Type: ReDIF-Article 1.0 Author-Name: Neeraj Gupta Author-X-Name-First: Neeraj Author-X-Name-Last: Gupta Author-Name: Jitendra Mahakud Author-X-Name-First: Jitendra Author-X-Name-Last: Mahakud Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Ownership, bank size, capitalization and bank performance: Evidence from India Abstract: This study focuses on assessing the role of various bank-specific, industry-specific and macroeconomic determinants in Indian commercial banks performance. Performance of the Indian banks has been measured by Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) and Pre-provision profit ratio. The study analyses impact of various bank-specific factors like bank size, capital ratio, risk, cost to income ratio, funding cost, revenue diversification, labour productivity and bank age on bank performance. It also tries to assess the relationship between various bank-specific and industry-specific variables like bank concentration, inflation rate and GDP growth rate with bank performance. Fixed effects estimation model and Generalized Method of Moments (GMM) have been used on a panel data of 19 years for 64 commercial banks of India. The findings reveal that private sector banks are more profitable than the public sector banks. Additionally, the results of the study show that bank size, non-performing loan ratio and revenue diversification are the major determinants of the commercial banks performance in India. Furthermore, the results reveal that during the crisis period the impact of bank size, bank age, labour productivity and revenue diversification on the performance of the Indian banks is robust. The higher non-government stake leads to the enhanced performance of the commercial banks in India. The higher capital adequacy leads to the increase in the performance of the banks. The larger banks are less profitable. The results provide better insights about the determinants of Indian banks profitability. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1808282 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1808282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1808282 Template-Type: ReDIF-Article 1.0 Author-Name: Nimra Noor Author-X-Name-First: Nimra Author-X-Name-Last: Noor Author-Name: Irem Batool Author-X-Name-First: Irem Author-X-Name-Last: Batool Author-Name: Hafiz Muhammad Arshad Author-X-Name-First: Hafiz Muhammad Author-X-Name-Last: Arshad Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial literacy, financial self-efficacy and financial account ownership behavior in Pakistan Abstract: Study examines the role of financial literacy and financial self-efficacy of individuals in explaining their behavior to have financial accounts. Study has used the questionnaire based survey and collected the data responses from 564 adults belonging to Sahiwal division. The binary logistic regression model is utilized to estimate the probability of having financial accounts in relation to individual’s financial literacy and financial self-efficacy level. Estimated results show that individual’s financially literacy level is positively related with individual’s account ownership model among the selected group. While individual’s financial self-efficacy level does not explain any positive significant impact on individual’s account ownership model. Other socio-demographic variables like gender, marital status, education, occupation, and income level are also found to have influential impact on the individuals’ account ownership behavior in Pakistan. Study recommends that financial literacy is pertinent to have equitable financial inclusion in the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1806479 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1806479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1806479 Template-Type: ReDIF-Article 1.0 Author-Name: Emmanuel Duodu Author-X-Name-First: Emmanuel Author-X-Name-Last: Duodu Author-Name: Samuel Tawiah Baidoo Author-X-Name-First: Samuel Tawiah Author-X-Name-Last: Baidoo Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: How does quality of institutions affect the impact of trade openness on economic growth of Ghana? Abstract: Developing countries, of which Ghana is no exception have actively engaged in trade openness after independence, yet, their economic growth remains low and this calls for urgent attention to address the situation. This study therefore examines the impact of trade openness on economic growth of Ghana for the period 1984–2018 taken into consideration the role quality of institutions play. The results from the autoregressive distributed lag model (ARDL) reveal that, both trade openness and quality of institutions exert a significant positive impact on economic growth in both the long and short run. However, the interaction of trade openness and quality of institutions is shown to have insignificant impact on economic growth in both periods. The results further indicate that exchange rate has a significant positive (significant negative) impact on economic growth in the long run (short run). Based on the findings, the study concludes that, institutional quality has no influence on the impact of trade openness on economic growth in the Ghanaian context. Policy implications aimed at ensuring sustained economic growth have been put forward for the discourse of stakeholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1812258 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1812258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1812258 Template-Type: ReDIF-Article 1.0 Author-Name: Oliver E. Ogbonna Author-X-Name-First: Oliver E. Author-X-Name-Last: Ogbonna Author-Name: Ikechukwu A. Mobosi Author-X-Name-First: Ikechukwu A. Author-X-Name-Last: Mobosi Author-Name: Okwudili W. Ugwuoke Author-X-Name-First: Okwudili W. Author-X-Name-Last: Ugwuoke Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Economic growth in an oil-dominant economy of Nigeria: The role of financial system development Abstract: This paper examines the effect of financial system development on oil-dominant economy of Nigeria using Zivot-Andrews unit root test and Autoregressive Distributed Lag (ARDL) model over the period 1981 to 2015. The motivation of this paper is that the study distinguished the impact of financial system development on the non-oil sector from the oil sector. The study also differs from the usual yet unsatisfactory approach of measuring financial system development in Nigeria to build an index as a measure that characterizes the whole development in the financial sector using Principal Components Analysis (PCA). The result reveals that there exist mediating factors that alter the impact of finance on growth. Specifically, the findings indicate that financial system development has a negative and insignificant impact on the growth of oil sector while the influence of financial system development on the growth of non-oil sector is positive and significant. The study therefore recommend that policymakers should channel the high receipts from the export of crude to productive investments through financial institutions that will allocate the resources more efficiently to improve the quality of investment capable of driving growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1810390 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1810390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1810390 Template-Type: ReDIF-Article 1.0 Author-Name: K. J. Chipunza Author-X-Name-First: K. J. Author-X-Name-Last: Chipunza Author-Name: K. R. Tsunga Author-X-Name-First: K. R. Author-X-Name-Last: Tsunga Author-Name: K. McCullough Author-X-Name-First: K. Author-X-Name-Last: McCullough Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Price discovery of South African stocks cross-listed on the New York Stock Exchange Abstract: The number of South African firms that have sought cross-listing in regional and global markets has been increasing. Many firms increase their presence beyond local markets, and one of these avenues is through cross-listing; however, it remains unclear whether the home or host market contributes more to the incorporation of information in cross-listed stocks. This study examined the price discovery process of Johannesburg Stock Exchange (JSE) domiciled stocks with a cross-listing on the New York Stock Exchange (NYSE). The price discovery of cross-listed stocks was tested using Johansen’s and Phillips-Ouliaris’ cointegration, the vector error correction model and common factor weights. Long-term relationships consistent with the law of one price were found. Contrary to the home bias hypothesis, results indicated that the NYSE dominated price discovery. Fund managers and investors who have included JSE cross-listed stocks in their portfolios should devote more attention to the NYSE as information flows appear to occur mainly from the NYSE to JSE. Further, results suggest that there is co-movement and integration between the USA and South Africa which diminishes diversification benefits for investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1810879 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1810879 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1810879 Template-Type: ReDIF-Article 1.0 Author-Name: Quang Khai Nguyen Author-X-Name-First: Quang Khai Author-X-Name-Last: Nguyen Author-Name: Zhaojun Yang Author-X-Name-First: Zhaojun Author-X-Name-Last: Yang Title: Ownership structure and bank risk-taking in ASEAN countries: A quantile regression approach Abstract: This study examines the effect of ownership structure on the risk-taking behavior of banks in ASEAN countries. Using a sample of 96 commercial banks in ASEAN countries from 2002 to 2018, the study demonstrates that the relationship between ownership structure and bank risk-taking behavior is correlated with the characteristics of individual banks in terms of quantile regression. First, state ownership and foreign ownership affect bank risk-taking positively in high-risk banks while negatively in low-risk banks. Second, the relationship between ownership concentration and risk-taking is negative in all distributions of bank risk. These findings suggest that appropriate ownership structure can constrain bank risk-taking activities in accordance with the level of risk of each bank. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1809789 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1809789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1809789 Template-Type: ReDIF-Article 1.0 Author-Name: Isam Saleh Author-X-Name-First: Isam Author-X-Name-Last: Saleh Author-Name: Malik Abu Afifa Author-X-Name-First: Malik Author-X-Name-Last: Abu Afifa Author-Name: Louis Murray Author-X-Name-First: Louis Author-X-Name-Last: Murray Title: The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market Abstract: This paper aims to investigate the effect of credit risk, liquidity risk and bank capital on bank profitability over a nine-year period (2010–2018) by examining empirical evidence from an emerging market. This study is grounded on econometric panel data using GMM methods. The results indicate that credit risk, liquidity risk, and bank capital variables have an impact on bank profitability. Understanding the Basel requirements and their importance by local and foreign bank managers is significant as enforcing them can improve the efficiency of the bank and increases profitability while barricading it from risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1814509 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1814509 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1814509 Template-Type: ReDIF-Article 1.0 Author-Name: Kazeem Abimbola Sanusi Author-X-Name-First: Kazeem Abimbola Author-X-Name-Last: Sanusi Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Fiscal dominance and inflation: Evidence from Nigerian and South African’s experiences Abstract: This study attempted to estimate degree of fiscal dominance by econometrically analysing degree of fiscal and monetary policies interdependence in Nigeria and South Africa. This is done to define the extent at which fiscal authority actions confine the monetary policy actions. The empirical confirmation offered in the study on the basis empirical findings showed that the degree of fiscal and monetary policies interdependence for both Nigeria and South Africa are 0.84 and 0.67. This shows that degrees of fiscal dominance in both economies are 0.16 and 0.33 respectively. The evidence shows that both economies are under low fiscal dominance, though Nigerian economy is seen to be under a lower fiscal dominance hypothesis when compared with South African economy. Therefore, the Nigerian monetary authority has greater freedom to fight inflation. However, the Nigerian economy still has a higher inflation than South Africa. The study concludes based on the empirical findings, that monetary policy authorities in Nigeria and South Africa should strive more to maintain the current level of their autonomy given their higher degree of fiscal and monetary policies interdependence. Current level of autonomy can be maintained by ensuring that the fiscal authority plans its intertemporal budget constraints such that current level of government outstanding debt and its interest would always be offset by future primary surpluses rather than seigniorage. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1814508 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1814508 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1814508 Template-Type: ReDIF-Article 1.0 Author-Name: Damilola Felix Eluyela Author-X-Name-First: Damilola Author-X-Name-Last: Felix Eluyela Author-Name: Abiola John Asaleye Author-X-Name-First: Abiola John Author-X-Name-Last: Asaleye Author-Name: Olabisi Popoola Author-X-Name-First: Olabisi Author-X-Name-Last: Popoola Author-Name: Adedoyin Isola Lawal Author-X-Name-First: Adedoyin Isola Author-X-Name-Last: Lawal Author-Name: Henry Inegbedion Author-X-Name-First: Henry Author-X-Name-Last: Inegbedion Author-Name: Louis Murray Author-X-Name-First: Louis Author-X-Name-Last: Murray Title: Grey directors, corporate governance and firms performance nexus: Evidence from Nigeria Abstract: There has been a consistent argument in the literature as regards the importance of grey directors on board, and their impact on firm performance with most studies focused on developed economies. However, little is known on the short and long-run implications. In this study, we examined the joint short-run and long-run causality relationship, as well as the long-run behaviour between grey directors and corporate performance of deposit money banks. Our sample includes 14 deposit money banks out of the 15 listed on Nigeria stock exchange for 2010–2017. The estimation techniques used include descriptive statistics, unit root test, panel co-integration test and fully modified ordinary least square regression (FMOLS). Using Tobin Q as the dependent variable, there is no flow of joint long-run causality from the independent variables. The significance of the short-run coefficients indicates joint causality moving from independent variable to the dependent variable in the short-run. Furthermore, the long-run equation shows a significant positive relationship between indigenous directors, the board size, non-executive directors and performance of the selected deposit money banks in Nigeria, while a negative correlation was observed with firm size. Grey director was insignificant in the long-run. The study concludes that aggregate policy changes need to carefully considered in promoting a long-term benefit and need to gear effort towards maximising the performance of the banking sector in the long-run through effective group decision. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1815962 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1815962 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1815962 Template-Type: ReDIF-Article 1.0 Author-Name: Andreas Humpe Author-X-Name-First: Andreas Author-X-Name-Last: Humpe Author-Name: David G. McMillan Author-X-Name-First: David G. Author-X-Name-Last: McMillan Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Macroeconomic variables and long-term stock market performance. A panel ARDL cointegration approach for G7 countries Abstract: Based on the present value model for stock prices, we utilise a pooled mean group estimator for panel ARDL cointegration to estimate the long-run relationship between G7 stock prices and macroeconomic variables over the last 40 years. We find a positive long-run relation between stock prices, industrial production and consumer prices as well as a negative relationship with real 10-year interest rates. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1816257 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816257 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816257 Template-Type: ReDIF-Article 1.0 Author-Name: Hirofumi Nishi Author-X-Name-First: Hirofumi Author-X-Name-Last: Nishi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Firm age and crude oil returns: Stock price sensitivity of oil-producing and consuming companies Abstract: This study aims to identify firm characteristics that affect the cross-firm variation in oil–stock interactions. A panel data analysis with a sample of U.S. and Canadian firms reveals that the stock price sensitivity to crude oil price returns is negatively and significantly associated with firm age. Contrary to a common belief, firm size or stock liquidity does not seem to influence heterogeneity in oil–stock relationships. My finding is consistent across oil-producing and consuming companies while the effect of firm age is not observed among financial institutions engaged in commodity trading. An additional test using the panel Granger causality approach shows no lagged effect of oil market movement on the oil and gas extraction firms, suggesting their prompt response to market information. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1812252 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1812252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1812252 Template-Type: ReDIF-Article 1.0 Author-Name: Van Dan Dang Author-X-Name-First: Van Dan Author-X-Name-Last: Dang Author-Name: Japan Huynh Author-X-Name-First: Japan Author-X-Name-Last: Huynh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Holdings of sovereign bonds by commercial banks in Vietnam Abstract: The study examines the bank-specific determinants of sovereign bond holdings and how such holdings affect bank lending of the banking market in Vietnam. Using annual financial data of commercial banks from 2007 to 2018 and alternative regression techniques for both dynamic and static models, we attribute the motives of sovereign bond holdings to the liquidity reserves, profitability improvement, and risk-shifting. At odds with our expectation, we find no evidence in favor that Vietnamese banks purchase government bonds to increase capital adequacy ratio. Furthermore, to clarify the economic impact of sovereign bond investment, we also offer evidence to reject the notion that purchases of government bonds are detrimental to banks’ core function in normal times captured by bank lending and liquidity creation. All estimates are robust across alternative regression techniques in both dynamic and static panel models. Overall, our findings have important policy implications for Vietnam and some emerging economies with similar backgrounds. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1818409 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1818409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1818409 Template-Type: ReDIF-Article 1.0 Author-Name: Kudakwashe Joshua Chipunza Author-X-Name-First: Kudakwashe Joshua Author-X-Name-Last: Chipunza Author-Name: Hilary Tinotenda Muguto Author-X-Name-First: Hilary Tinotenda Author-X-Name-Last: Muguto Author-Name: Lorraine Muguto Author-X-Name-First: Lorraine Author-X-Name-Last: Muguto Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Return predictability and valuation ratios: sector-level evidence on the Johannesburg stock exchange Abstract: The efficient market hypothesis describes an efficient market as one in which investors cannot consistently predict stock returns because prices instantly reflect all the information flowing into the market. However, return predictability has been documented in many markets. This study tests the predictability of returns using two valuation ratios—the dividend and earnings yields—on the South African market, at both aggregated and sectoral level. Unlike most studies in South Africa, this study employs an apposite present value model, accounts for structural breaks and investigates the non-linearity of the relationship between stock returns and valuation ratios. The results show that returns are predictable at both aggregated and sectoral levels. This finding has implications for market efficiency through enhanced price discovery which, in turn, has implications for investment and portfolio management. However, it should be noted that statistical significance may not translate to economic significance, so there is a need to determine the latter if one intends to use any strategy that relies on this evidence. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1817252 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1817252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1817252 Template-Type: ReDIF-Article 1.0 Author-Name: Abbas Ali Daryaei Author-X-Name-First: Abbas Ali Author-X-Name-Last: Daryaei Author-Name: Yasin Fattahi Author-X-Name-First: Yasin Author-X-Name-Last: Fattahi Author-Name: Ramazan Hasani Author-X-Name-First: Ramazan Author-X-Name-Last: Hasani Author-Name: Hamed Sadeqi Author-X-Name-First: Hamed Author-X-Name-Last: Sadeqi Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Value of cash and accounting conservatism: The role of audit quality and firm growth Abstract: The primary aim of the present research was to fill the significant gap in the accounting literature, which is widely acknowledged, regarding the association between conservative accounting and the value of cash, particularly in emerging Islamic stock markets. By using a sample including all the firms listed on the Tehran Stock Exchange from 2008 to 2017, we regress the value of cash on accounting conservatism with regard to the moderator role of audit quality (audit tenure, audit opinion, audit size, and earnings management as proxies for audit quality). Generally, the findings not only confirm a positive relationship between accounting conservatism and cash value in the absence of audit quality but also suggest that ignoring the important role of audit quality mechanism can result in wrong conclusions concerning the effect of accounting conservatism on cash value, especially in developing countries such as Iran, due to concentrated government and institutional ownership structures. This cross-sectional analysis based on firm growth leads to the conclusion that analysis regarding the relationship between accounting conservatism and cash value must be taken into account by highlighting the impact of macroeconomic variables and political economy. Furthermore, the findings of the current study suggest that the application of monitoring and controlling theories calls for more inquiry. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1816281 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816281 Template-Type: ReDIF-Article 1.0 Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Umaid A. Sheikh Author-X-Name-First: Umaid A. Author-X-Name-Last: Sheikh Author-Name: Muzaffar Asad Author-X-Name-First: Muzaffar Author-X-Name-Last: Asad Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Market miracles: Resilience of Karachi stock exchange index against terrorism in Pakistan Abstract: Terrorism plays a pivotal role in influencing the stock indexes of many countries. This research article claims to be first in accessing the asymmetrical effect of multiple categories of terroristic activities on stock indexes in the presence of macroeconomic volatility. This research utilized a Non-linear autoregressive distributive lag model (NARDL) to find out the asymmetrical relationship between terroristic disruptions and stock indexes. Data on terroristic attacks have been incorporated from 2002 to 2015, and more than 4600 observations taken into account. Positive shocks to attacks on mosques, killed in mosque attacks, killed in drone attacks, and army personal fatalities are negatively affecting the stock prices in the short run. Results indicated that such disruption causes a temporary negative effect on stock indexes only in the short run but in the long-run stock exchange remains resilient against such disruptions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1821998 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821998 Template-Type: ReDIF-Article 1.0 Author-Name: Prudence Makololo Author-X-Name-First: Prudence Author-X-Name-Last: Makololo Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The effect of economic policy uncertainty and herding on leverage: An examination of the BRICS countries Abstract: This study examines the role of economic policy uncertainty (EPU) in influencing firm performance and leverage as a form of financing decisions, in the presence of herding in the emerging markets of Brazil, Russia, India, China and South Africa (BRICS). This study contributes to our understanding of how businesses in emerging markets make financial decisions during uncertain times as well as the role of policy development in influencing firm performance and corporate decisions. The increase or decrease in EPU is determined by the way policymakers or investors act and the consequences of their decisions. EPU is, in fact, a market characteristic that brings changes in prices and returns. Therefore, investors and policymakers should be aware of it to prevent any negative effects. A steady and predictable economic policy is critical to economic growth. We investigate how firms rationalise making leverage financing decisions during times of economic policy uncertainty and if so, if herding is present in these decisions. Our data spans the Top 80 listed firms in each respective country from the beginning of June 2002 to the end of June 2017. Russian, Indian and South African results show that EPU is significant in determining leverage financing decisions and that an increase in EPU leads to herding in such decisions. We find contrary results in Brazilian and Chinese firms. Our results imply that when leverage decisions are made, both the political climate as well as competitor movement data must be considered in determining a firm’s “ideal” capital structure. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1821482 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821482 Template-Type: ReDIF-Article 1.0 Author-Name: Olli Salmensuu Author-X-Name-First: Olli Author-X-Name-Last: Salmensuu Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Speculation in Delhi potato wholesale markets, 2007–2019: Causal connections of prices and arrival quantities Abstract: This work built on financial literature on rolling window Granger-causality testing (RWGCT) methodology, specifically expanding its early theme of speculative trading which emerged in 2009 following the food price crisis. Although many times driving the commodity prices in reality, the unexpected often remains unexplained in equilibrium modelling. Financial speculation is a distinct, unexpected phenomenon which allows us to determine temporal order of affecting market forces in equilibrium dynamics. A logical framework retraces price and quantity adjustment directions from underlying speculative demand or supply curve shifts; using it, we extracted these shifts with RWGCT from the price and arrival quantity data of Delhi potato wholesale markets. The main results confirmed the framework, more speculation was detected on demand side compared to supply side. The food price crises of 2007–2009 and 2011–2012 saw most demand-side speculation, as financial liquidity poured also to potato markets, whereas supply-side speculation was most likely detected due to unexpectedness related to approaching harvest or its aftermath when considerably supply becomes available, and thus also greater potential gains from timing sales. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1821997 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821997 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821997 Template-Type: ReDIF-Article 1.0 Author-Name: Chokri Zehri Author-X-Name-First: Chokri Author-X-Name-Last: Zehri Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Restrictive policy impacts in emerging economies Abstract: The policy responses to capital flows in emerging markets are multiple. However, capital inflow controls, if applied sufficiently broadly, can buttress all other policies by limiting the volume of capital inflows and address balance sheet vulnerabilities. The study analyzes the effects of capital controls (CC) domestically and internationally. Applied to 24 emerging economies (EEs) from 2009 to 2016, a panel vector autoregression model using a quarter dataset provides further evidence on these effects. Domestically, the results show that following the 2008 financial crisis, strengthening CC may support policymakers’ actions to improve their macroeconomic policies. Unpredictably, there is no relationship founded between CC and international reserves accumulation. However, a combination of controls and reserves are needed to manage well the volatile capital flows. Internationally, restrictions on capital flows may cause spillovers between countries introducing controls and neighboring countries. These multilateral effects raise the challenge of optimal policy coordination. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1815979 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1815979 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1815979 Template-Type: ReDIF-Article 1.0 Author-Name: Alex Adegboye Author-X-Name-First: Alex Author-X-Name-Last: Adegboye Author-Name: Stephen Ojeka Author-X-Name-First: Stephen Author-X-Name-Last: Ojeka Author-Name: Kofo Adegboye Author-X-Name-First: Kofo Author-X-Name-Last: Adegboye Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Corporate governance structure, Bank externalities and sensitivity of non-performing loans in Nigeria Abstract: This study highlights the effect of corporate governance structure and bank externalities on non-performing loans in Nigeria covering the period 2009–2017. This study constructs corporate governance index for Nigerian Banks using Principal Component Analysis to establish the influence of corporate governance structure on non-performing loans. This study conducts a panel data analysis using static and dynamic estimators to examine the sensitivity of non-performing loans and corporate governance structure. From the empirical analysis, corporate governance structure of banks in Nigeria has a negative and significant influence on non-performing loans in Nigerian banks. This result reveals that sound corporate governance structure enhances the loan quality and bank stability. In addition, the study affirms that stringent policy imposed by the bank regulators has a negative impact on non-performing loans. Thus, effective corporate governance mechanism and bank regulations could help to curb excessive risk appetite that could mutilate probable performance and loan quality. This study recommends that banks should continue to implement high quality of corporate governance mechanism with positive effects at eliminating excessive risk-taking. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1816611 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816611 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816611 Template-Type: ReDIF-Article 1.0 Author-Name: Bassam A. Albassam Author-X-Name-First: Bassam A. Author-X-Name-Last: Albassam Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: A model for assessing the efficiency of government expenditure Abstract: It is challenging for governments to transfer public spending into successful public programs and projects. Additionally, good governance of the public financial system is essential for economic and human development. The author suggested a model to evaluate the efficiency of public spending using data from 71 countries during the period 1996–2017. The model addresses the ability of public allocations to reach government’s objectives (e.g., controlling unemployment and enhancing economic growth) in addition to including factors related to sustainable development. Thus, econometric and statistical tests are carried out to validate the model and to measure its stability and accuracy. Building on the current model, we could therefore apply the model to individual countries to better understand each country’s public spending system and to help decision makers efficiently execute their national strategic plans. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1823065 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1823065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1823065 Template-Type: ReDIF-Article 1.0 Author-Name: Songchan Guo Author-X-Name-First: Songchan Author-X-Name-Last: Guo Author-Name: Unyong Pyo Author-X-Name-First: Unyong Author-X-Name-Last: Pyo Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Does option trading affect idiosyncratic momentum? Abstract: Portfolios in idiosyncratic momentum are formed on past residuals of the Fama-French three factor model rather than past total returns. This study examines whether the idiosyncratic momentum strategy can sustain excess returns following the emergence of traded options. We compare idiosyncratic momentum returns with traditional momentum returns over different holding periods and over difference in traded options. Our results show that idiosyncratic momentum returns for stocks with options are positive for three, six, and twelve months following the formation date, while traditional momentum returns for those with options are insignificant or even turn to negative. We also find strong evidence that the enhanced information efficiency led by short selling has impacts more on traditional momentum than on idiosyncratic momentum. While traditional momentum disappears on stocks with traded options, idiosyncratic momentum survives and is still anomalous to the efficient market hypothesis. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1824362 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1824362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1824362 Template-Type: ReDIF-Article 1.0 Author-Name: Faisal Faisal Author-X-Name-First: Faisal Author-X-Name-Last: Faisal Author-Name: M. Shabri Abd Majid Author-X-Name-First: M. Shabri Abd Author-X-Name-Last: Majid Author-Name: A. Sakir Author-X-Name-First: A. Author-X-Name-Last: Sakir Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Agency conflicts, firm value, and monitoring mechanisms: An empirical evidence from Indonesia Abstract: Using a linear model, previous studies on the ownership concentration–firm performance nexus have produced inconsistent empirical findings and found no consensus concerning the measure of agency conflict control mechanism. Using a non-monotonic model and a combination of agency conflict control mechanisms, this study contributes to the existing literature by examining the moderating roles of additional blockholders, dividends, foreign ownership types in determining the effect of ownership concentration on performance of 580 Indonesia’s firms during the 2009–2018 period. Employing panel piecewise and moderated regression models, the study documented that the ownership concentration–firm performance relationship had followed a non-monotonic pattern, proving both monitoring and expropriation hypotheses exist for non-financial firms in Indonesia. These findings highlighted the important role of additional blockholders, dividends, foreign ownership types as moderating variables, and debt as a predictor to influence firm performance, functioning as the control mechanisms for the agency conflicts in Indonesia. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1822018 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1822018 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1822018 Template-Type: ReDIF-Article 1.0 Author-Name: Mousumi Singha Mahapatra Author-X-Name-First: Mousumi Singha Author-X-Name-Last: Mahapatra Author-Name: Ramkumar Mishra Author-X-Name-First: Ramkumar Author-X-Name-Last: Mishra Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Behavioral influence and financial decision of individuals: A study on mental accounting process among Indian households Abstract: Studies noticed that individuals’ cognitive, psychological, and behavioral limitations always have some influence in their everyday decision making. And the financial decisions are no exceptions. Perhaps it can be affirmed that individual financial decisions do have cognitive influence. This is also true with the Indian households. This study has briefly identified one such component i.e. mental accounting system and has explored the presence of mental accounting influence in households’ financial decisions. The study also establishes mental accounting as a second-order construct by using a hierarchical latent variable model. Partial Least Square Structural Equation Model (PLS-SEM) has been used to analyze and validate the scales. The analysis has been done with 452 responses collected using a survey method through a structured questionnaire given to Indian households. The study essentially analyses the influence of mental accounting in the financial decisions of households. This study aims at extending the knowledge of behavioral finance among the scholars of consumer behavior and personal finance, as well as the financial service providers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1827762 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1827762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1827762 Template-Type: ReDIF-Article 1.0 Author-Name: Truong Hong Trinh Author-X-Name-First: Truong Hong Author-X-Name-Last: Trinh Author-Name: Nguyen Manh Toan Author-X-Name-First: Nguyen Manh Author-X-Name-Last: Toan Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: A SAM framework for general equilibrium modeling and economic policy analysis Abstract: Social accounting matrix (SAM) is the linkage bridge between economic data and policy analysis in the general equilibrium models. While the empirical SAM is built upon economic data from the system of national accounts, the theoretical SAM is built upon the relation between economic actors in the economy. This paper proposes the SAM framework for the data linkage between the empirical SAM and the theoretical SAM, in which the SAM structure is defined with endogenous and exogenous blocks. The endogenous activities involve the production, income generation, and expenditures in the economy. The exogenous activities involve income redistribution, asset transfer, and capital accumulation of the economy. From the SAM framework, the general equilibrium model with the objective function of GDP, the equilibrium price system, and the constraints of macro balances are developed for experimental simulation and economic policy analysis. The paper contributes to the SAM framework that provides fundamental insights into economic data, SAM structure, and general equilibrium model for economic policy analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1829802 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1829802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1829802 Template-Type: ReDIF-Article 1.0 Author-Name: Tochukwu Timothy Okoli Author-X-Name-First: Tochukwu Timothy Author-X-Name-Last: Okoli Author-Name: Devi Datt. Tewari Author-X-Name-First: Devi Datt. Author-X-Name-Last: Tewari Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: An empirical assessment of fintechs heterogeneous transmission channels to financial development among African economies Abstract: The poor use of innovations for financial service delivery among African banks has limited the extent of financial development in the continent. Consequently, financial authorities seeks for a technology-enabled financial solution; an area not well covered in literature. This study therefore, examines the determinants of financial development in a panel of thirty-one heterogeneous African markets for the period 2002–2019 with emphasis on financial technology (Fintech). The liquidity-preference and credit-creation theories were used to model a dummy variable interactive equation to capture possible heterogeneities. The study hypothesized that Fintech transmits directly to financial development among emerging Africa but indirectly through bank-efficiency and financial inclusion among the frontier and fragile groups, respectively. Results from both the dynamic system GMM and the static techniques support this hypothesis with significant heterogeneities in both the intercept and slope coefficients of Fintech among the various groups. The study concludes that on average, emerging African markets report higher financial depth than the frontier and fragile groups; however, with higher slopes, they can converge with emerging markets’ in the long-run through Fintech adoption. The study recommends the collaboration of Fintech with banks, improved bank efficiency and financial inclusion as panaceas to promote financial development in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1829273 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1829273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1829273 Template-Type: ReDIF-Article 1.0 Author-Name: Y N Raju Author-X-Name-First: Y N Author-X-Name-Last: Raju Author-Name: Debashis Acharya Author-X-Name-First: Debashis Author-X-Name-Last: Acharya Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: Revisiting the Volatility- Growth relationship: Some cross country evidence, 1978–2017 Abstract: This paper attempts a re-examination of the relationship between the output volatility and economic growth using an annual data set for select 67 countries for the period 1978 to 2017 spanning over 40 years. Towards this objective cross section and panel, regressions are estimated for different country groups namely developing, industrial, high financially integrated (HFI) and low financially integrated (LFI) country groups. Overall, the results indicate that output volatility as a proxy of macroeconomic volatility has negative effect on economic growth. The results appear to be stronger when we include other control variables as part of an information set. The panel regression results support the negative relationship between economic growth and volatility for the developing countries. The financial development indicator indicates significant relation with growth for industrial economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1826655 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1826655 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1826655 Template-Type: ReDIF-Article 1.0 Author-Name: Oluchukwu F. Anowor Author-X-Name-First: Oluchukwu F. Author-X-Name-Last: Anowor Author-Name: Hyacinth E. Ichoku Author-X-Name-First: Hyacinth E. Author-X-Name-Last: Ichoku Author-Name: Vincent A. Onodugo Author-X-Name-First: Vincent A. Author-X-Name-Last: Onodugo Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Nexus between healthcare financing and output per capita: Analysis of countries in ECOWAS sub-region Abstract: The performances of African countries particularly in West African Sub-region on global-human development indices had been abysmal over the years and have worsened in the face of COVID-19 pandemic. This is a source of concern to scholars. Expenditure on health and education are recognized by experts as key predictors of human capital development. The latter is theoretically adjudged as a major driver of socio-economic development. This study investigated the relationship between health financing and economic performance (proxied by per capita GDP) among the 15 member countries of Economic Community of West African States (ECOWAS). Data spanning the period 1985–2017 were used and Panel Autoregressive Distributive Lag (PARDL) technique was adopted for the analysis. Results show that both private and public expenditures on healthcare were statistically significant to grow output per capita in the long-run. Further findings also suggest that other socio-economic covariates that affected the outcome of aggregate economic performance like price level of capital formation and population growth rate implicitly affected output per capita in the Sub-region. Recommendation points to all critical stakeholders to show more commitment and allocate more resources towards improved health care in the Sub-region if the cycle of stunted economic development will be broken. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1832729 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832729 Template-Type: ReDIF-Article 1.0 Author-Name: Khurshid Khudoykulov Author-X-Name-First: Khurshid Author-X-Name-Last: Khudoykulov Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Asset-pricing models: A case of Indian capital market Abstract: The asset-pricing models have been a fundamental area of research in finance due to its applicability in corporate finance and stock analysis. The present research attempted to evaluate the three popular asset-pricing models namely the capital asset-pricing model, the Fama-French three-factor model, and the Fama-French five-factor model in the Indian equity market for the period of January 2009 to November 2018. The study also tested the role of the size, profitability, value, investment, and market factors in explaining the average equity returns at the Indian bourses. The empirical results indicate the inferior performance of single market factor in describing the variations in average stock returns in comparison of the FF3FM and FF5FM. Furthermore, the size and value factors added to CAPM yields a vital improvement in explaining the variation in average returns of sample stocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1832732 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832732 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832732 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Shaaba Saba Author-X-Name-First: Charles Shaaba Author-X-Name-Last: Saba Author-Name: Nicholas Ngepah Author-X-Name-First: Nicholas Author-X-Name-Last: Ngepah Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Convergence in military expenditure and economic growth in Africa and its regional economic communities: evidence from a club clustering algorithm Abstract: This study examines the convergence in military expenditure and economic growth for a panel of 35 African countries between 1990 and 2015. We employ the Phillips and Sul methodology to achieve our objective. Overall, the results at Africa level reveal no evidence of convergence in military expenditure and growth. However, after robustness tests, the final club classification results do support the hypothesis of club convergence for the two variables. The results of the analysis show that there exist: (i) two convergence clubs for military expenditure; and (ii) five convergence clubs for growth. The empirical findings further suggest that the Regional Economic Communities (RECs) form distinct convergent and divergent clubs, exhibiting considerable heterogeneity in the underlying defence and growth patterns. In addition, the empirics confirm that the countries in each region appear to have chosen dissimilar defence and growth transition paths. The policy implications are discussed in the concluding section of this study. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1832344 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832344 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Naeem Author-X-Name-First: Muhammad Author-X-Name-Last: Naeem Author-Name: Kashif Saleem Author-X-Name-First: Kashif Author-X-Name-Last: Saleem Author-Name: Sheraz Ahmed Author-X-Name-First: Sheraz Author-X-Name-Last: Ahmed Author-Name: Naeem Muhammad Author-X-Name-First: Naeem Author-X-Name-Last: Muhammad Author-Name: Faisal Mustafa Author-X-Name-First: Faisal Author-X-Name-Last: Mustafa Author-Name: Papavassiliou Vassilios Author-X-Name-First: Papavassiliou Author-X-Name-Last: Vassilios Title: Extreme return-volume relationship in cryptocurrencies: Tail dependence analysis Abstract: We explore extreme return-volumes dependence among different cryptocurrencies such as Bitcoin, Ethereum, Ripple, and Litecoin by using the Copula approach. We use Student-t, Frank, Clayton, Survival Clayton, Gumbel, and SJC copulas. We filter out margins by using the EGARCH model for return series and GARCH model for volume series. Evidence of significant symmetric dependence between return-volume is not found due to insignificance of student-t and Frank copula parameters. In a return-volume relationship, coefficients of lower tail dependence are significant for Bitcoin, Ripple, and Litecoin which means that low returns are followed by low volumes. Lower tail dependence for the return-volume relationship is stronger than the upper tail dependence for Bitcoin, Ripple, and Litecoin. Moreover, for negative return-volume, left tail dependence coefficients are significant for Ripple and Litecoin, which means that high returns are followed by low volumes for Ripple and Litecoin. Our investigation shows that investors (buyer or seller) are very careful in extreme market conditions for both Ripple and Litecoin. Extreme upper tail and lower tail dependence coefficients are insignificant for Ethereum. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1834175 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1834175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1834175 Template-Type: ReDIF-Article 1.0 Author-Name: Duc Hong Vo Author-X-Name-First: Duc Hong Author-X-Name-Last: Vo Author-Name: Nhan Thien Nguyen Author-X-Name-First: Nhan Thien Author-X-Name-Last: Nguyen Author-Name: McMillan David Author-X-Name-First: McMillan Author-X-Name-Last: David Title: Real exchange rate in the long run: A multi-resolution analysis Abstract: Findings from previous studies indicate that the long-run stationarity of the real exchange rate in different time horizons remains unclear. In order to shed light on this problem, we have adopted a new method which is widely used to analyze signals, the so-called wavelet transformation. This paper uses monthly data of the consumer price indices (CPI) and nominal exchange rates for six ASEAN countries for the 1998–2019 period. The unobserved component method is used to remove the seasonality and cyclicity of the CPI. Then, the real exchange rates are calculated. We use the unit root tests and wavelet transformation to verify if the purchasing power parity (PPP) holds in the long run in different time horizons. Key findings from the paper are as follows. First, the mean-reverting pattern of real exchange rate recurs itself for the period longer than 5 years. Second, the variation around trend using wavelet methodology can be used as a reliable indicator for future movements of the real exchange rate. Third, the high volatility of the exchange rate in the short run may be induced by arbitrage activities. Implications have emerged based on these findings for policymakers and investors in relation to the behaviour of the real exchange rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1831725 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1831725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1831725 Template-Type: ReDIF-Article 1.0 Author-Name: Mehak Sharma Author-X-Name-First: Mehak Author-X-Name-Last: Sharma Author-Name: Anshul Jain Author-X-Name-First: Anshul Author-X-Name-Last: Jain Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Role of size and risk effects in value anomaly: Evidence from the Indian stock market Abstract: Portfolios of companies with high book-to-market (BTM) ratio (low Price-To-Book (PB) ratios, Value firms) outperform those with companies with low BTM ratio (high PB ratios, Growth firms). In literature, this is known as the Value Anomaly. This anomaly is related to the third factor in the three-factor model of Fama and French, and is commonly used to explain the cross section of returns. Studies on the Value Anomaly in the Indian Stock Markets have yielded mixed results. Using a longer span of data and a larger set of companies, this study explores and observes the Value Anomaly in the Indian Stock Market. The contribution of size and systematic risk towards the behaviour of the Value Anomaly is studied. We observe that Value Anomaly exists in India, but with growth portfolios outperforming value. A critical analysis reveals possible linkages to firm size. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838694 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838694 Template-Type: ReDIF-Article 1.0 Author-Name: Belainew Belete Author-X-Name-First: Belainew Author-X-Name-Last: Belete Author-Name: Surafel Melak Author-X-Name-First: Surafel Author-X-Name-Last: Melak Author-Name: Goodness Aye Author-X-Name-First: Goodness Author-X-Name-Last: Aye Title: Impact of small scale irrigation technology on women empowerment in Amhara national regional state of Ethiopia Abstract: Even though there is a growing interest to empower rural women in all economic activities. Works of literature are scant to evaluate the role of small-scale irrigation technology on women empowerment. This study evaluates the impact of the adoption of small-scale irrigation technologies on women empowerment, where empowerment is measured by Women Empowerment in the Agricultural index. The propensity Score Matching (PSM) method was employed to identify comparable technology adopting and non-adopting sample households. Results of the average treatment effect on treated suggest adoption of small-scale irrigation technologies exacerbate the disempowerment of women. Hence, we suggest Policy and development interventions should give due emphasis on improving women’s capacity to own and control resources and should be decision-makers. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1837440 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1837440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1837440 Template-Type: ReDIF-Article 1.0 Author-Name: Muqaddas Khalid Author-X-Name-First: Muqaddas Author-X-Name-Last: Khalid Author-Name: Qaisar Abbas Author-X-Name-First: Qaisar Author-X-Name-Last: Abbas Author-Name: Mian Sajid Nazir Author-X-Name-First: Mian Sajid Author-X-Name-Last: Nazir Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Efficiently monitoring the ship of financially distressed companies sinking in Iron law of earnings management: Evidence from Pakistan Abstract: The purpose of this study is to validate the relationship between earnings management and financial distress. Further, it will explore the moderating role of ownership structure for the relationship between earnings management and financial distress which is missing in the current literature. Agency theory and the iron law of earnings management are utilized to develop the framework for this study. Data have been collected from 156 companies listed on the Pakistan Stock Exchange for the period of 2004 to 2017. All the reported results are on a log-odds matric because our dependent variable is binary. The results of the study proved that there exists a positive relationship between earnings management and financial distress and this relationship is negatively moderated by ownership structure. The results of this study are beneficial for investors as well as regulators regarding control mechanisms of ownership structure. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838685 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838685 Template-Type: ReDIF-Article 1.0 Author-Name: Lê Thị Minh Hằng Author-X-Name-First: Lê Thị Author-X-Name-Last: Minh Hằng Author-Name: Hoang Van Hai Author-X-Name-First: Hoang Author-X-Name-Last: Van Hai Author-Name: Nguyen Truong Son Author-X-Name-First: Nguyen Author-X-Name-Last: Truong Son Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The role of reference-dependent preferences in the idiosyncratic volatility puzzle: Evidence from Korea Abstract: In this paper, the role of the reference-dependent preference in the relationship between idiosyncratic volatility and future return was investigated in the Korean stock market from July 1990 to June 2018. The capital gains overhang was used as a reference point for a definition of the loss and gains domain. As a consequence, the negative idiosyncratic volatility-return relationship is driven by unrealized capital losses. In addition, this negative relation disappears in the unrealized capital gains domain, suggesting the important role of the reference-dependent preference in the idiosyncratic volatility puzzle interpretation. These findings are robust to control for several factors, such as market beta, return reversal variable, momentum, and liquidity. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838686 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838686 Template-Type: ReDIF-Article 1.0 Author-Name: Tamirat Beyene Author-X-Name-First: Tamirat Author-X-Name-Last: Beyene Author-Name: Wondaferahu Mulugeta Author-X-Name-First: Wondaferahu Author-X-Name-Last: Mulugeta Author-Name: Tesfaye Merra Author-X-Name-First: Tesfaye Author-X-Name-Last: Merra Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Title: Technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producer in Hadiya zone, SNNP region, Ethiopia Abstract: Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the main cash crop and the least expensive source of protein for the farmers. Low production and productivity, which are mainly associated with poor adoption and inefficient implementation of improved farm technologies, were among the major problems. Adoption and efficient utilization of improved farm inputs is one of the most promising ways to reduce food insecurity in study area. However, the adoption and implementation of these improved farm inputs is constrained by various factors. So, the aim of this study was to analyze the technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producers. A multi-stage sampling technique was employed to select 231 sample household heads and they were interviewed using structured interview schedule. Data analysis was done with the help of Stochastic Frontier Analysis; mainly Cobb-Douglas Production Function, logistic regression model were employed. The Stochastic Production Frontier result revealed that the allocated amount of land, labour, seed, chemical fertilizer and oxen were appeared to be positively and significantly influencing haricot bean production of both adopters and total sampled householders. The result of logistic regression model indicated that the probability of adoption of improved farm inputs affected by extension service, information access and cooperative membership positively and by market distance and crop diversification negatively. Therefore, specialization, asset formation, innovative institutional arrangement, information, extension and farmers training accompanied with more access to chemical fertilizer in the study area. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1833503 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1833503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1833503 Template-Type: ReDIF-Article 1.0 Author-Name: Álvaro Turriago-Hoyos Author-X-Name-First: Álvaro Author-X-Name-Last: Turriago-Hoyos Author-Name: William Andrés Martínez Mateus Author-X-Name-First: William Andrés Author-X-Name-Last: Martínez Mateus Author-Name: Ulf Thoene Author-X-Name-First: Ulf Author-X-Name-Last: Thoene Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Spatial analysis of multidimensional poverty in Colombia: Applications of the Unsatisfied Basic Needs (UBN) Index Abstract: This research article seeks to specify and measure the determinants of multidimensional poverty in Colombia using the Unsatisfied Basic Needs (UBN) Index based on information from the latest available 2005 population census applying a spatial econometric approach. An exploratory analysis of the spatial distribution of the UBN and a confirmatory analysis through spatial models are conducted using municipalities as the unit of analysis. This spatial analysis confirms diffusion effects of poverty between neighbouring municipalities, the existence of clusters and hot spots in the Pacific Chocó region, the Caribbean Coast, and the southern region of the country. Within those clusters, we find high levels of unemployment, low levels of urban population, as well as a high proportion of ethnic minorities, and large size municipalities. This research contributes to public policymaking and the improvement of governance in the third largest Latin American country by population size and the region’s fourth largest economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1837441 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1837441 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1837441 Template-Type: ReDIF-Article 1.0 Author-Name: Bilal Sarwar Author-X-Name-First: Bilal Author-X-Name-Last: Sarwar Author-Name: Noor Muhammad Author-X-Name-First: Noor Author-X-Name-Last: Muhammad Author-Name: Nadeem Uz Zaman Author-X-Name-First: Nadeem Author-X-Name-Last: Uz Zaman Author-Name: Zia Ur Rehman Author-X-Name-First: Zia Ur Author-X-Name-Last: Rehman Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The conundrum of bank capital structure: Empirical evidence from Pakistan Abstract: This paper aims to analyze factors explaining the capital structure puzzle in the banking sector of Pakistan. Capital Adequacy Ratio (CAR) is used as a proxy for bank capital structure. Secondary data has been collected from the publications of the State Bank of Pakistan and the annual reports of banks from 2006–2017. The data is analyzed by applying the pooled OLS, fixed effect, and the GMM estimator. The determinants are grouped in (i) bank financial performance (ii) bank risk-based and (iii) industry level. Using bank financial performance indicators, the alternate cost of capital is significant, and management quality is an insignificant determinant of capital structure. Similarly, using bank risk-based variables, default risk, and credit risk is statistically significant whereas, bank risk index is statistically insignificant in explaining capital structure. Furthermore, using the industry-specific variables, both the average CAR of the banking sector and the market competitiveness proxied by the Herfindahl-Hirschman Index (HHI) is significantly predicting capital structure. Overall the bank risk-based and the industry-specific indicators are explaining bank capital structure more significantly compared to other indicators in the study. Finally, this paper included the financial crisis to observe any exogenous shocks while studying capital structure which is found to be significant in the current study. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838688 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838688 Template-Type: ReDIF-Article 1.0 Author-Name: Umaid A. Sheikh Author-X-Name-First: Umaid A. Author-X-Name-Last: Sheikh Author-Name: Muzaffar Asad Author-X-Name-First: Muzaffar Author-X-Name-Last: Asad Author-Name: Aqeel Israr Author-X-Name-First: Aqeel Author-X-Name-Last: Israr Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Zahid Ahmed Author-X-Name-First: Zahid Author-X-Name-Last: Ahmed Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Symmetrical cointegrating relationship between money supply, interest rates, consumer price index, terroristic disruptions, and Karachi stock exchange: Does global financial crisis matter? Abstract: The study is intended to investigate the symmetrical relationship between macroeconomic variability and KSE-100 indexes by employing the ARDL model with bound testing procedure and error correction model. Authors have also examined whether the linkages between macroeconomic variability and KSE-100 indexes change in the wake of the 2008 Global economic recession. Macroeconomic variability is represented by fluctuations in interest rates, consumer price index, and Money supply (M2). Monthly level data representing macroeconomic volatility has been incorporated from the trading economics website and validated from the Pakistan bureau of statistics. Four different types of unit root tests like augmented dickey fuller test, KPSS, and Philips Peron unit root are also employed for the identification of seasonality effects in data. To identify structural breaks and linearity in data, the Zivot Andrew unit root test and BDS test for nonlinearity have also been employed respectively. This study adds to the existing literature by classifying investor’s different reactions to fluctuation in macroeconomic variability before and after the international economic recession. Our study results proposed that in the long run and before the international economic crunch, the money supply and interest rates have an inverse relationship with stock indexes but CPI has a direct and significant relationship. However, after the 2008 economic crisis and for a longer horizon, stock indexes have been impacted positively by money supply, and IR has formulated an inverse relationship with KSE-100 indexes. This indicated that the association between macroeconomic variations and KSE-100 indexes changes following the 2008 international economic crisis. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838689 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838689 Template-Type: ReDIF-Article 1.0 Author-Name: William Mbanyele Author-X-Name-First: William Author-X-Name-Last: Mbanyele Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Ownership concentration, firm life cycle, and leverage: Evidence from Italian family firms Abstract: We examine the impact of ownership concentration, firm life cycle, and family ownership on leverage using a sample of listed Italian firms. The study findings reveal that family businesses in Italy have high ownership concentration and use less debt than non-family firms. The study results show that there is a nonlinear relationship between ownership concentration and leverage, and between the firm life cycle and leverage. Furthermore, the study contributes to the literature by showing that firm age positively moderates ownership concentration and leverage linkage. Besides we provide evidence that debt and ownership alternate as disciplining devices at different ownership concentration levels and life cycle stages. Our policy contribution encourages regulators to enforce laws that protect minority shareholders in businesses with high ownership concentration. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838687 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838687 Template-Type: ReDIF-Article 1.0 Author-Name: Edward Bace Author-X-Name-First: Edward Author-X-Name-Last: Bace Author-Name: Ana Ferreira Author-X-Name-First: Ana Author-X-Name-Last: Ferreira Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Regulation’s influence on EU banking efficiency: An evaluation post crisis Abstract: This paper examines the impact of regulatory policies on banking market efficiency using a sample of 678 commercial banks from 21 European Union countries for the post-crisis year 2010, controlling for bank-specific and country-specific variables. Data on regulation, supervision and monitoring variables, and activity restrictions are from the most recent Bank Regulation and Supervision Survey database conducted by the World Bank, published 2012. Besides these we incorporate bank size, equity, market share, government ownership, and growth of Gross Domestic Product per capita, employing an Ordinary Least Squares method. Focus is on two alternative measures of banking market efficiency: net interest margin and overhead costs (operating expenses to assets). Elevated levels of these two ratios should indicate a low level of banking efficiency. The evidence suggests that the link between capital regulation and banking efficiency is not robust enough to control for other regulatory variables. Results confirm that activity restrictions have a negative and significant impact on banking efficiency. Policies encouraging official supervisory power do not enhance efficiency of the banking sector. The only approach positively and statistically significantly associated with efficiency is private monitoring. This leads to the suggestion that government regulation and supervision should be more focused on promoting transparency of information. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838735 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838735 Template-Type: ReDIF-Article 1.0 Author-Name: Hasan Hanif Author-X-Name-First: Hasan Author-X-Name-Last: Hanif Author-Name: Muhammad Naveed Author-X-Name-First: Muhammad Author-X-Name-Last: Naveed Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Dynamic modeling of idiosyncratic risk under economic sensitivity. A case of Pakistan Abstract: Financial institutions are an important source of providing impetus to investment by mobilizing savings and channelizing them to meet much needed capital requirements of other sectors. Similarly, the extant literature documents volatility of influential financial intuitions is not standalone but of contagious nature tending to spread through the financial system hence causes economic and financial shocks. This study brings new insights by investigating the dynamic aspect of idiosyncratic risk across different economic conditions in a developing economy like Pakistan. To analyze the impact of factors that influence idiosyncratic risk, one and two step system GMM is used. The findings of the study highlight that capital structure of the financial institutions needs proper monitoring of regulatory authorities as banks get a good amount of loans during good times but this can wreak havoc during the crisis as it happened in 2008–2009. In the like manner, the State Bank of Pakistan should also introduce higher liquidity requirements as results point out increased liquidity leads to lower level of idiosyncratic risk. In addition to that, Monetary policy and prudential regulation policy should also be aligned as contractionary monetary policy deters the munificence of the sector and leads to increase in external dynamism resulting in higher level of idiosyncratic volatility. The economic sensitivity analysis indicate that role of liquidity becomes more significant during crisis and postcrisis period. Finally, study also elucidates that sector level variables are also instrumental in modeling of idiosyncratic risk along with firm and country level variables. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838734 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838734 Template-Type: ReDIF-Article 1.0 Author-Name: Faisal Sagheer Uddin Author-X-Name-First: Faisal Author-X-Name-Last: Sagheer Uddin Author-Name: Muhammad Azam Author-X-Name-First: Muhammad Author-X-Name-Last: Azam Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Price-sensitive announcements and stock return anomalies: Evidence from Pakistan Abstract: The purpose of this study is to investigate the effect of price-sensitive announcements on stock return anomalies and the interaction effect of corporate announcements of firms with abnormal returns (AR). The study focused on 279 announcements for a period of two years from Jan-2016 till Dec-2017. The announcements were related to plant expansion, change in capital structure, change in ownership, and financial results. We adopted the event study methodology to calculate the Cumulative Abnormal Return (CAR) for the event window of 30 days (−15, +15). The study also used hierarchical moderated regression analysis to examine the moderating effect of corporate announcements on abnormal returns. The findings revealed that insiders received higher abnormal returns when they buy stocks before corporate announcements. The results also indicated that these returns are specifically related to purchases made before announcing plant expansion, financial results, and change in the capital structure. The study also exposed that insiders having prior information on corporate announcements can increase predictability and drive the return irrespective of the firms’ operating business. The results provide more insight into the effectiveness of the Security and Exchange Commission of Pakistan (SECP) in curbing insider trading in the Pakistan Stock Exchange (PSX). The study recommends to the individual investors to diversify their investment to safeguard the returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838692 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838692 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838692 Template-Type: ReDIF-Article 1.0 Author-Name: Josephat Lotto Author-X-Name-First: Josephat Author-X-Name-Last: Lotto Author-Name: Irene Isaka Author-X-Name-First: Irene Author-X-Name-Last: Isaka Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: On understanding the implication of pension debt on fiscal policy in Tanzania: Is there any room for improving the adequacy of pension benefits? Abstract: This paper aims at understanding the implication of pension debt on fiscal policy in Tanzania. The paper employed a modified projected benefit obligation (PBO) approach for a period between 2010 and 2018. The results of the paper indicate a mismatch between benefit payments and members’ contributions, in that outflows are found to exceed inflows for a large part of the examined period, which tends to imply that pensions adequacy is questionable, and that the system cannot be sustained for a longer period if no rescue is put in place immediately. Further, drawing from the computed life expectancy of pensioners, it is indicative that the size of the retirement age cohort will continue to enlarge over time; which would result in increasing pension obligations. Since increased pension expenditure would not be fully covered from the existing pension assets, the Government as a guarantor would be required to cover the matured pension obligations through its annual fiscal budget. Unfortunately, looking at the current National Debt sustainability report pension debt is not part of the proposed national debt. Following these findings, and since neither increasing the contribution rate nor the retirement age may not be sustainable options, the reduction of accrual rate is the most suitable option the government is recommended to implement so as to rescue the current situation. However, in a long run, the paper recommends the government to undertake a systemic pension reform, which would change the entire pension system from a defined benefits scheme to a defined contributions scheme. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838690 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838690 Template-Type: ReDIF-Article 1.0 Author-Name: Faisal Abbas Author-X-Name-First: Faisal Author-X-Name-Last: Abbas Author-Name: Shoaib Ali Author-X-Name-First: Shoaib Author-X-Name-Last: Ali Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Dynamics of bank capital ratios and risk-taking: Evidence from US commercial banks Abstract: This study aims to explore how different capital ratios influence the risk-taking of large commercial banks of the USA. The study collects the data from FDIC for commercial banks from 2003 to 2019. We use a two-step GMM method to manage the endogeneity, simultaneity, heteroscedasticity, and auto-correlations issue. The findings conclude that an increase in the risk-based capital ratios decreases the banks’ risks. Empirical findings demonstrated a significant and positive association between non-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the banks’ risks. The impact of capital ratios on risk-taking is heterogeneous for well and under-capitalized banks. The findings suggest that State-chartered member and non-member banks are inclined to take a higher risk than nationally chartered banks. The findings have implications for regulators to consider the State-chartered member, non-member, and nationally chartered banks while formulating the new guidelines for required capital ratios. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838693 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838693 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838693 Template-Type: ReDIF-Article 1.0 Author-Name: Sylvester Senyo Horvey Author-X-Name-First: Sylvester Senyo Author-X-Name-Last: Horvey Author-Name: Jacob Ankamah Author-X-Name-First: Jacob Author-X-Name-Last: Ankamah Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Enterprise risk management and firm performance: Empirical evidence from Ghana equity market Abstract: This paper examines the linear and non-linear relationship between Enterprise Risk Management (ERM) and firm performance while focusing on how operational status (financial and non-financial listed firms’ status) affects this relationship in Ghana. Analysis of 30 listed firms on Ghana Stock Exchange between 2010 and 2016 in a robust fixed effect and random effect estimation techniques, presented new insights into ERM literature. We showed that ERM propels firm performance at both the firm level (return on assets and equity) and market level (Tobin Q) performance of listed firms in Ghana. A non-linear inverted U-shape is observed when return on equity is employed as a performance indicator while a non-linear direct U-shape is observed when return on assets and Tobin Q are employed as performance indicators. A non-linear relationship exists between ERM and performance of listed firms in Ghana whether the non-linearity is an inverted U shape or direct U shape depends on the firm performance. This paper recommends that firms should implement fundamental robust measures and dynamic risk management techniques to get better ERM outcome. Enterprise Risk Management should be implemented in both financial firms and non-financial firms because firms which practice ERM are more likely to perform better than Non-ERM counterparts. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1840102 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1840102 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1840102 Template-Type: ReDIF-Article 1.0 Author-Name: Santanu Pal Author-X-Name-First: Santanu Author-X-Name-Last: Pal Author-Name: Ajay K. Garg Author-X-Name-First: Ajay K. Author-X-Name-Last: Garg Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Macroeconomic surprises and stock market responses in view of global linkage – A study of Indian stock market Abstract: In prior literature it was conjectured that the Indian stock market responses on domestic macroeconomic surprises are expected to be significantly influenced by global surprises. In this paper we empirically established that hypothesis. We used both the Event Analysis and VAR model. We found that global surprises consistently dominate Indian stock market and the influence of domestic macroeconomic surprises on it is relatively less. The understanding of stock market dynamics against domestic macroeconomic surprises and global factors can provide assistance to the policy makers for augmenting policy effectiveness and the corporate finance professionals for enhancing decision making. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1839171 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1839171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1839171 Template-Type: ReDIF-Article 1.0 Author-Name: Salmon Mugoda Author-X-Name-First: Salmon Author-X-Name-Last: Mugoda Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Rose Kibuka Nakimu Author-X-Name-First: Rose Kibuka Author-X-Name-Last: Nakimu Author-Name: Edward Bbaale Author-X-Name-First: Edward Author-X-Name-Last: Bbaale Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: The portrait of Uganda’s informal sector: What main obstacles do the sector face? Abstract: In this paper, using primary data collected from business owners, we examine the nature and obstacles in the informal sector of Uganda. We find that education level matters in the selection of enterprises. The bulk of businesses, like eating kiosks, fish selling, shoe shining among others that require no specialized skill to operate were mainly run by primary school dropouts and those with no formal level of education. Furthermore, we find evidence of a strong entrepreneurial spirit among secondary school dropouts than at any other education level. Across all businesses surveyed, secondary school dropouts run a high number of informal enterprises. Evidence suggests that their motivation is driven by two key factors, namely, wanting to take advantage of an existing business opportunity and failure to find employment in the formal sector. The empirical results show that access to finance, crime, theft and disorder, electricity, water, taxes, burdensome inspections, and informal gifts are robust and significant obstacles to the operations of the informal sector in Uganda. Policies should focus on a regulatory framework that supports the sector to create secure livelihoods and generate employment opportunities for the unemployed rather than viewing the sector as a source of “illegality.” Improving access to finance, providing regular power and water supply, and improving the tax regime would mitigate the obstacles faced by informal businesses leading to possible formalization. Informal sector businesses should not be perceived as “illegal entities” but rather complementary effort by an increasingly enterprising population in the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1843255 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1843255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1843255 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Antwi Author-X-Name-First: Samuel Author-X-Name-Last: Antwi Author-Name: Mohammed Issah Author-X-Name-First: Mohammed Author-X-Name-Last: Issah Author-Name: Aboagyewaa Patience Author-X-Name-First: Aboagyewaa Author-X-Name-Last: Patience Author-Name: Solomon Antwi Author-X-Name-First: Solomon Author-X-Name-Last: Antwi Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The effect of macroeconomic variables on exchange rate: Evidence from Ghana Abstract: The study examined the effect of macroeconomic variables on exchange rate in Ghana using a multivariate modeling technique of the Vector Autoregression (VAR) and focusing on impact of broad money supply (M2), lending rate, inflation and real GDP on exchange rate, for 76 quarterly observations period of 2000–2019, in Ghana and to examine their effectiveness in managing exchange rate in Ghana. The study used only secondary sources of data from Bank of Ghana, World Development Indicators and Ghana Statistical Service. It was found that, real GDP granger causes exchange rate in Ghana. However, inflation, money supply and lending rate do not granger cause exchange rate in Ghana but they affect exchange rate indirectly. It was recommended that a sound exchange rate policy should take into account some considerations. The bank of Ghana should try to reduce the lending rate and money supply in order to lower inflation to create rooms for more investors to produce more to increase the GDP produced in the country, in order to depreciate the foreign currency. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1821483 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821483 Template-Type: ReDIF-Article 1.0 Author-Name: Tu Dq Le Author-X-Name-First: Tu Dq Author-X-Name-Last: Le Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Multimarket contacts and bank profitability: do diversification and bank ownership matter? Abstract: This study investigates the impact of multimarket contacts on bank profitability in the Vietnamese banking system from 2006 to 2015 using the system GMM. The findings indicate in general no evidence of the mutual forbearance hypothesis in this sector. However, we do find evidence of tacit collusion for the case of foreign-owned banks and newly combined banks with greater multimarket contacts. Finally, this study reveals that on average the most profitable banks are less geographically diversified, more technically efficient, and have lower credit risk. Regarding the role of bank ownership, more profitable banks are state-owned commercial banks, listed banks, and non-merged banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1849981 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849981 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849981 Template-Type: ReDIF-Article 1.0 Author-Name: Chaiyuth Padungsaksawasdi Author-X-Name-First: Chaiyuth Author-X-Name-Last: Padungsaksawasdi Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Herd behavior and firm-specific information Abstract: The study shows critical roles of firm-specific information on herd behavior, which is underexplored in prior literature, albeit an increasing impact of firm-specific information on asset pricing. The main finding demonstrates that three of four selected measures of firm-specific information (return residual, return skewness, and information discreteness) are associated with the aggregate herd behavior in the Thai equity market. The return residual delineates the greatest impacts in most cases, especially during the financial turbulence periods. Herd behavior with firm-specific information is observed at all times. More importantly, less corporate transparency, more noise trading, large asymmetric risk, and low liquidity are the main drivers of intentional herd behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1844399 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1844399 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1844399 Template-Type: ReDIF-Article 1.0 Author-Name: Dipesh Karki Author-X-Name-First: Dipesh Author-X-Name-Last: Karki Author-Name: Trijya Kafle Author-X-Name-First: Trijya Author-X-Name-Last: Kafle Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Investigation of Factors Influencing Risk Tolerance among Investors using Ordinal Logistic Regression: A case from Nepal. Abstract: The paper investigates the factors that affect the risk tolerance of the general investors in Nepalese stock market. Using data of 99 investors, study applies ordinal logistic regression to evaluate the impact of investor’s education level, gender, financial literacy, years in trading, prior history of loss and history of margin lending on risk tolerance capacity of the investor. The paper finds that with prior loss, chances of high-risk investor moving to moderate risk is 4.48 log odds while that of moderate risk investor moving to low risk is 1.33 log odds. Meanwhile financial literacy increases the risk level across risk spectrum by log odds of 1.59. On the other hand keeping other things constant with availability of margin lending, there is 48% probability investor falls into moderate risk category. The study however didn’t find any influence of gender, years in trading and education on risk tolerance. The research finds that financial literacy is an important driver in risk appetite of investors than their education level. Further it shows that past experience of the investor very much influences their level of riskiness. Finally paper finds margin lending having more influence on those investors that falls under moderate risk level. The study thus provides guidelines for policy maker in setting the margin rate, and also helps portfolio manager to assess the risk appetite of the potential investor and finally provides empirical evidence of financial literacy in stabilizing risk tolerance of investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1849970 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849970 Template-Type: ReDIF-Article 1.0 Author-Name: D. Kellerman Author-X-Name-First: D. Author-X-Name-Last: Kellerman Author-Name: Z. Dickason-Koekemoer Author-X-Name-First: Z. Author-X-Name-Last: Dickason-Koekemoer Author-Name: S. Ferreira Author-X-Name-First: S. Author-X-Name-Last: Ferreira Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Analysing investment product choice in South Africa under the investor lifecycle Abstract: Individual investment decision-making theory revolves around the logical choices an investor is expected to make to achieve the maximum return on investments. The investor life cycle theory is often used as a guideline to determine how investors will invest based on their predicted life cycle phase. However, the question remains whether lifecycle investing is still relevant today. The main purpose of the paper is to analyse how demographic factors influence investment product selection for South African banking clients using Big Data. The analysis found that the investment patterns of South African investors strongly contradict the foundational literature of the investor life cycle. South African investors are skewed more towards low-risk investment options like cash, across all age ranges, only investing in higher-risk instruments much later than what the investor life cycle theory suggests. Female investors are especially risk-averse, however, the effect becomes less prominent as income level rises. The risk-averse investment style seen in the findings for all South African investors can be explained by the slow economic growth experienced in South Africa, with investors having less disposable income to invest. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1848972 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1848972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1848972 Template-Type: ReDIF-Article 1.0 Author-Name: Johnny Jansen van Rensburg Author-X-Name-First: Johnny Author-X-Name-Last: Jansen van Rensburg Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Evaluating investment decisions based on the business cycle: A South African sector approach Abstract: Sector investing aims to guide investors in identifying undervalued securities. Knowing which sectors flourish at different phases of the business cycle, investment returns may be boosted by increasing holdings in securities from strengthening sectors and reducing holdings in weakening ones. As the business cycle phase changes, security rotation can continuously improve portfolio returns. Sector investing is, however, heavily dependent upon accurate phase identification and therefore highly vulnerable to phase misidentification. Investing in securities which do not thrive at the phase identified could lead to inferior portfolio returns or even losses. There is ample precedent in the literature regarding the usefulness of Fourier analysis in identifying business cycle frequencies. This article contributes by installing this approach for the first time to augment existing sector investing methodology. We confirm that the sector rotation approach does generate statistically significant outperformance (relative to local market index performance) in South Africa. This work adds to the current dearth of theoretical and empirical research regarding sector rotation in emerging economies, so it can also be beneficial for researchers interested in similar milieus. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1852729 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1852729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1852729 Template-Type: ReDIF-Article 1.0 Author-Name: Bankole Fred Olayele Author-X-Name-First: Bankole Fred Author-X-Name-Last: Olayele Author-Name: Kwok Tong Soo Author-X-Name-First: Kwok Tong Author-X-Name-Last: Soo Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Redistributive fiscal policies and regional economic disparities Abstract: Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is calibrated as the difference between pretax personal income, and personal income after federal taxes and transfers. Based largely on fixed effects and dynamic panel methods, our findings support the battery of studies on the mixed evidence concerning the relationship between fiscal redistribution and per capita income. To the extent that results are sensitive to estimation methods and functional specifications, the study underscores the importance of unbundling the components of a redistributive fiscal package in a bid to establish optimal thresholds for effective policy interventions. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1853326 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1853326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1853326 Template-Type: ReDIF-Article 1.0 Author-Name: Ky Han Tran Author-X-Name-First: Ky Han Author-X-Name-Last: Tran Author-Name: Nguyen Hung Duong Author-X-Name-First: Nguyen Hung Author-X-Name-Last: Duong Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies Abstract: By combining Empirical Distribution Approach (EDA) and Discretionary Accruals Approach (DAA) with data including 2,949 observations of 295 Vietnamese listed companies from 2006 to 2016, we provide evidence that the firms have conducted earnings management behavior to avoid losses but have not committed earnings management behavior to avoid earnings decreases. The evidence indicates that the firms conducting earnings management behavior to avoid losses account for from 4.88% to 13.76% of the whole sample and account for from 49.6% to 73.6% of negative earnings observations. In addition, we find that the changes in working capital are a common tool for managers to conduct earnings management behavior to avoid losses. Furthermore, by removing discretionary accruals from earnings, we also confirm that managers have used discretionary accruals as a tool to manipulate reported earnings upward to avoid losses. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1849980 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849980 Template-Type: ReDIF-Article 1.0 Author-Name: Sarfaraz Javed Author-X-Name-First: Sarfaraz Author-X-Name-Last: Javed Author-Name: Uvesh Husain Author-X-Name-First: Uvesh Author-X-Name-Last: Husain Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: An ARDL investigation on the nexus of oil factors and economic growth: A timeseries evidence from Sultanate of Oman Abstract: The study is conducted to comprehend the relation of the oil sector with Oman’s economic growth. Oman is an abundant oil country, and the oil sector plays an influential part in its economic development. The data were gathered from a range of 1989 to 2018 from the National Center for Statistics and Information of Oman; it published the statistical year for variables including oil revenue, oil price, gross capital formation, total revenue, and production or export of Crude Oil. The data were analyzed with the help of the ARDL cointegration approach and Granger causality test. The results enlighten that economic performance is significantly affected by the oil price, crude oil production, and gross capital formation, and the total revenue and oil revenue insignificantly influence it. The impact of export has a substantial adverse influence on economic growth. The variables have long-run granger cause on each other while short-run causal bidirectional relation exists among economic performance, crude oil production, and export of Crude Oil. The study helps Oman’s Government understand the importance of the oil sector and aids in maintaining or forecasting the oil revenue and government spending to retain a stable economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838418 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838418 Template-Type: ReDIF-Article 1.0 Author-Name: Hery Toiba Author-X-Name-First: Hery Author-X-Name-Last: Toiba Author-Name: Tri Wahyu Nugroho Author-X-Name-First: Tri Wahyu Author-X-Name-Last: Nugroho Author-Name: Dwi Retnoningsih Author-X-Name-First: Dwi Author-X-Name-Last: Retnoningsih Author-Name: Moh. Shadiqur Rahman Author-X-Name-First: Moh. Shadiqur Author-X-Name-Last: Rahman Author-Name: Goodness Aye Author-X-Name-First: Goodness Author-X-Name-Last: Aye Title: Food system transformation and its impact on smallholder farmers’ income and food security in Indonesia Abstract: Transformation of food system in Indonesia can have a profound impact on the supply chain of smallholder farmers. Policymakers are concerned about the impact of “modern food retail penetration” or “supermarket penetration” on Indonesian food chain participants. This study aims to analyze the link between supermarket penetration and smallholder farmers’ welfare. Data were obtained from a survey involving 300 smallholder horticulture farmers from two regencies: Malang and Kediri. The data were analyzed to shed light on these issues. Endogenous switching regression was used to analyze the impact of participation in modern food marketing channel on both food security and welfare. The results of the econometric analysis suggest that there is a link between participation in the modern market and food security. In addition, this study also highlights that the presence of a new system of food supply chain is able to increase smallholder farmers’ income through the stability of price and demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1854412 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1854412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1854412 Template-Type: ReDIF-Article 1.0 Author-Name: Watekhi Watekhi Author-X-Name-First: Watekhi Author-X-Name-Last: Watekhi Author-Name: Nachrowi Djalal Nachrowi Author-X-Name-First: Nachrowi Author-X-Name-Last: Djalal Nachrowi Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: The effect of trade liberalization on inter-industry wage difference in Indonesia’s manufacturing sector Abstract: This study analyzes the effect of trade liberalization on wage inequality through industry wage premiums in Indonesia’s manufacturing sector between 2000 and 2015, a period marked by low import tariffs. The study was undertaken by adopting a two-stage estimation approach. Using the national labor force survey dataset from Sakernas (Survei Angkatan Kerja Nasional—Indonesia Labor Force Survey), first, the study estimates industry wage premiums conditional on individual worker characteristics. In the second stage, the data are pooled across industries over time, then regressed on import tariff of final goods as a measure of trade liberalization, controlling for market concentration. The study finds a negative effect of import tariffs on industry wage premiums, implying that industry wage premiums decreased by more in sectors facing a larger tariff hike, and, vice versa, industry wage premiums increased by more in sectors experiencing larger tariff cuts. This suggests that trade liberalization contributes to wider wage inequality through inter-industry wage difference. Therefore, a more selective measure should be taken in implementing trade liberalization by opening wider access for superior commodities and protecting less-competitive commodities with high domestic demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1853325 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1853325 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1853325 Template-Type: ReDIF-Article 1.0 Author-Name: Olusanya Elisa Olubusoye Author-X-Name-First: Olusanya Elisa Author-X-Name-Last: Olubusoye Author-Name: Dasauki Musa Author-X-Name-First: Dasauki Author-X-Name-Last: Musa Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: CARBON EMISSIONS AND ECONOMIC GROWTH IN AFRICA: ARE THEY RELATED? Abstract: The study the ARDL model, Mean Group (MG), and the Pooled Mean Group (PMG) model to examine the Environemtnal Kuznets Curve (EKC) hypothesis in 43 African countries pooled into 3 income groups from 1980–2016. The EKC hypothesis is accepted in only 21% of the sample but rejected in 70% of the countries in the total sample. This result shows that carbon emissions increase as economic growth increases in 79% of the countries while economic growth will lead to lower carbon emissions in only a few countries (21%). The study concludes that an increase in economic growth will induce higher emissions in most countries in Africa. These countries should take all possible policy actions such as the massive deployment of renewable energy, carbon tax policy, and the carbon emissions trading scheme to curtain growth in carbon emission. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1850400 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1850400 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1850400 Template-Type: ReDIF-Article 1.0 Author-Name: Matthew W. Burkett Author-X-Name-First: Matthew W. Author-X-Name-Last: Burkett Author-Name: William T. Scherer Author-X-Name-First: William T. Author-X-Name-Last: Scherer Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A Fundamental Misunderstanding of Risk: The Bias Associated with the Annualized Calculation of Standard Deviation Abstract: Quantifiable, measurable risk is of critical importance when making data-driven decisions in finance and investment management, but what if the generally accepted practice of the investment industry for calculating risk possessed incorrect mathematical assumptions and embedded biases? This piece revisits the discussion surrounding the methodology used to calculate annualized standard deviation statistics commonly used when reporting the performance of investment products. It goes on to present a new example illustrating the bias when applied to an efficient frontier. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1857005 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1857005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1857005 Template-Type: ReDIF-Article 1.0 Author-Name: Nunung Ghoniyah Author-X-Name-First: Nunung Author-X-Name-Last: Ghoniyah Author-Name: Sri Hartono Author-X-Name-First: Sri Author-X-Name-Last: Hartono Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: How Islamic and conventional bank in Indonesia contributing sustainable development goals achievement Abstract: This study aimed to prove that social goal in improving social living standards is implanted on banking’s objective in Indonesia. This research also tried to prove that there were differences between conventional and Islamic banks in defining the company goals, whether the goals are profit-oriented or socially oriented. This social goal is also aligned with sustainable development goals (SDGs) as international agendas in the world. The banks’ contribution will be measured its impact on sustainable development goals. The developed hypotheses are equipped with good financing quality control. Furthermore, this research will compare the social goals of conventional banks and Islamic banks (sharia banks). This research used 801 data from the annual reports of conventional and Islamic banks in Indonesia from 2011 to 2018. Meanwhile, the reflection of sustainable development goals used several indicators, so that the statistical analysis used is WarpPLS. This research proved that there were differences between Islamic and conventional banks in promoting sustainable development. Generally, high financing or credit will increase sustainable development, while the sufficient/low bank profit demanded from the bank financing/credit also will increase sustainable development achievement. In conclusion, the financing quality is able to differentiate whether the low profits earned by banks are due to social orientation for sustainable development or because of poor market conditions (bad credit/financing). Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1856458 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1856458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1856458 Template-Type: ReDIF-Article 1.0 Author-Name: Tochukwu Timothy Okoli Author-X-Name-First: Tochukwu Timothy Author-X-Name-Last: Okoli Author-Name: Devi Datt. Tewari Author-X-Name-First: Devi Datt. Author-X-Name-Last: Tewari Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Investigating the determinants and growth of financial technology depth of penetration among the heterogeneous Africa economies Abstract: The widespread financial exclusion in Africa despite the continent’s high adoption of financial technology (Fintech) suggests that there is a gap between Fintech’s adoption and its actual usefulness. This study seeks to measure Fintech’s usefulness, its growth and identify its determinants in a panel of three emerging, twenty-four frontiers and five fragile African markets for the period 2004–2018. A dummy variable interactive equation was modelled based on theory to account for heterogeneity between groups. Results from the system Generalised Method of Moments (GMM) estimation technique reveal that on average, Fintech usefulness in Africa is a dynamic heterogeneous process. Income per person, level of financial development, Fintechs’ compatibility with users’ experiences, users’ risk perception, inflation rate and financial-openness were the main determinants of its usefulness. Its rapid growth after the 2009 financial crisis suggests that greater Fintech usefulness can mitigate financial crisis among Africa markets. In particular, the growth of Mobile-banking, ATM and Internet-banking as at 2018 are on average 41.8%, 0.4%, and 20.8% respectively greater than its average in the base year 2004. The study concludes that Fintech’s usefulness is driven by economic, financial and psychological factors; therefore, structural transformation, financial development and improved literacy were recommended. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1838691 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838691 Template-Type: ReDIF-Article 1.0 Author-Name: Matthew W. Burkett Author-X-Name-First: Matthew W. Author-X-Name-Last: Burkett Author-Name: William T. Scherer Author-X-Name-First: William T. Author-X-Name-Last: Scherer Author-Name: Andrew Todd Author-X-Name-First: Andrew Author-X-Name-Last: Todd Author-Name: Vassilios Papavassiliou Author-X-Name-First: Vassilios Author-X-Name-Last: Papavassiliou Title: Portfolio design and management through state-based analytics: A probabilistic approach Abstract: This paper presents an innovative new approach to investment portfolio design, which applies a discrete, state-based methodology to defining market states and making asset allocation decisions with respect to both current and future state membership. State membership is based on attributes taken from traditional finance and portfolio theory namely expected growth, and covariance. The transitional dynamics of the derived states are modeled as a Markovian process. Asset weighting and portfolio allocation decisions are made through an optimization-based approach coupled with heuristics that account for the probability of state membership and the quality of the state in terms of information provided. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1854948 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1854948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1854948 Template-Type: ReDIF-Article 1.0 Author-Name: Zainul Kisman Author-X-Name-First: Zainul Author-X-Name-Last: Kisman Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange Abstract: The purpose of this article is to determine what causes the phenomenon of disappearing dividends, which mostly occurs in stock exchanges in developed and emerging countries. This is the phenomenon of the decreasing probability of issuers to choose to pay dividends (cash, stock, and mixed) rather than not to pay. The results of multinomial logit model show, that size and profitability have a significant positive effect on cash, stock, and mixed dividend decisions. The decision not to pay dividends is influenced by low agency costs, high debt, over-liquidity, and excessive investment opportunities. To overcome this phenomenon, all stakeholders must be able to manage the above cause variables in an integrated manner. Journal: Cogent Economics & Finance Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/23322039.2020.1858566 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1858566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1858566 Template-Type: ReDIF-Article 1.0 Author-Name: Naghmana Ghafoor Author-X-Name-First: Naghmana Author-X-Name-Last: Ghafoor Author-Name: Sana Fayyaz Author-X-Name-First: Sana Author-X-Name-Last: Fayyaz Author-Name: Mehr-Un- Nisa Author-X-Name-First: Mehr-Un- Author-X-Name-Last: Nisa Author-Name: M. Riaz Akbar Author-X-Name-First: M. Riaz Author-X-Name-Last: Akbar Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: An empirical investigation of socio-economic impacts of agglomeration economies in major cities of Punjab, Pakistan Abstract: Agglomeration economies are the external benefits earned from clustering of industries and people in cities. The study assumes unbridled clustering of population in emerging urban agglomerations turning economies into diseconomies. This study empirically investigates the heterogeneous socioeconomic impacts of agglomeration economies in selected cities of Punjab, Pakistan, from 1998 to 2018, using the Pooled Mean Group and the Mean Group techniques of Panel ARDL. Agglomeration economies are determined by population density, number of registered factories, employment size, and housing, in the cities of Punjab. The study designed four indices for socioeconomic conditions using principal component analysis. These include: education-index, healthcare-index, water & sanitation-index, and economic conditions-index. Research findings reveal pressures of high population density, unemployment, and costly housing on educational & healthcare facilities, poor sanitation & waste management, in cities of Punjab, Pakistan. The study suggests that policy makers and urban planners to develop short term and long term policies and development plans for villages and secondary cities to uplift wellbeing of the local population. Nonetheless, cities need to decentralize for sustainable development and management. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1975915 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1975915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1975915 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulai Adams Author-X-Name-First: Abdulai Author-X-Name-Last: Adams Author-Name: Emmanuel Tetteh Jumpah Author-X-Name-First: Emmanuel Tetteh Author-X-Name-Last: Jumpah Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Agricultural technologies adoption and smallholder farmers’ welfare: Evidence from Northern Ghana Abstract: Improving the welfare of smallholder farmers through the introduction of improved technologies has gained increased attention in recent times. The focus now transcends the mere development and introduction of these farming technologies to improve productivity alone. Policymakers, particularly those in developing countries now pursue the implementation of interventions that promote the use of improved technologies to advance the welfare of smallholder farmers. However, the impact of such intervention to inform future policy decisions remains largely lacking and under theorized. The current study, therefore, analysed the impact of technology adoption on smallholder farmers’ welfare. We obtained data from 461 technology adopters and non-adopters by using purposive and simple random sampling. Using the propensity score matching technique, we estimated the impact of technology adoption on smallholder farm households. The results show that regional location, educational level, age, and Farmer Base Organisation (FBO) membership are the main determinants of technology adoption among smallholder farmers. Technology adoption had a positive but statistically insignificant impact on welfare. Consumption and clothing expenditure increased with adoption but not healthcare. To improve the impact of technology adoption on smallholder farmer welfare, emphasis should be placed on business supporting/advisory services; agricultural extension outreach, finance/input support among others. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2006905 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2006905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2006905 Template-Type: ReDIF-Article 1.0 Author-Name: Abhisek Mishra Author-X-Name-First: Abhisek Author-X-Name-Last: Mishra Author-Name: Byomakesh Debata Author-X-Name-First: Byomakesh Author-X-Name-Last: Debata Author-Name: GOODNESS AYE Author-X-Name-First: GOODNESS Author-X-Name-Last: AYE Title: Livelihood security among rural poor: Evaluating the impact of Rural Livelihood Mission in Odisha, India Abstract: Livelihood insecurity remains a prime concern for low household income countries. To provide secured livelihood to rural poor, the government of India has introduced a self-employment type poverty alleviation programme namely National Rural Livelihood Mission (NRLM). This paper empirically examines the effect of participation in NRLM on the livelihood security of rural poor. Data were collected from 220 respondents (including both beneficiaries and non-beneficiaries) through a structured questionnaire from Sonepur district of Odisha (India). A livelihood security index (LSI) was constructed to capture the livelihood security of the respondents taking habitat security, health security, food security, and economic security into account. Further, the impact of the programme has been estimated using propensity score matching (PSM) method. The study finds a positive and significant effect of participation in the programme on livelihood security. Therefore, poor should be encouraged to participate in the programme to strengthen their livelihood security. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1978705 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978705 Template-Type: ReDIF-Article 1.0 Author-Name: Joanna Stawska Author-X-Name-First: Joanna Author-X-Name-Last: Stawska Author-Name: Maciej Malaczewski Author-X-Name-First: Maciej Author-X-Name-Last: Malaczewski Author-Name: Paulina Malaczewska Author-X-Name-First: Paulina Author-X-Name-Last: Malaczewska Author-Name: Ewa Stawasz-Grabowska Author-X-Name-First: Ewa Author-X-Name-Last: Stawasz-Grabowska Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: The Nash equilibrium in the policy mix model for Czechia, Hungary, and Romania Abstract: The aim of the paper is to compare the sensitivity of a government’s fiscal policy and a central bank’s monetary policy, which are in Nash equilibrium in the case of a non-cooperative game between the government and the central bank in Czechia, Hungary, and Romania. The analysis for each country is conducted from the date of its accession to the European Union. The research period for Czechia and Hungary includes the quarters 2004Q2-2019Q2, and for Romania, 2007Q1-2019Q2. The study has demonstrated that in Romania the government’s response to interest rate changes is the strongest and the central bank’s response to changes in the budget deficit turned out to be the weakest. On the other hand, the strongest response of the central bank to changes in the budget deficit turned out to be in Hungary, which means that the central bank in Hungary makes a significant correction of interest rates as a result of changes in the budget deficit. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1869380 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1869380 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1869380 Template-Type: ReDIF-Article 1.0 Author-Name: Adeeb Abdulwahab Alhebri Author-X-Name-First: Adeeb Abdulwahab Author-X-Name-Last: Alhebri Author-Name: Shaker Dahan Al-Duais Author-X-Name-First: Shaker Dahan Author-X-Name-Last: Al-Duais Author-Name: Amal Mohammed Almasawa Author-X-Name-First: Amal Mohammed Author-X-Name-Last: Almasawa Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The influence of independence and compensation of the directors on family firms and real earnings management Abstract: This study investigates real earnings management in family firms and further examines the moderating effects of the independence and compensation of directors. Based on a sample of 106 non-financial public listed firms over 5 years in Saudi Arabia, the empirical results show that family firms are positively linked to real earnings management. This result supports the entrenchment hypothesis that family firms have lower earnings quality due to manipulation in real activities. Further, we found evidence that the proportion of independent directors and the compensation paid to directors both interacted in family firms to reduce real earnings management. Our findings suggest that increasing the proportion of independent directors and paying higher compensation to directors are one workable way for family firms to mitigate their real earnings management behaviour. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1934977 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934977 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934977 Template-Type: ReDIF-Article 1.0 Author-Name: Foued Hamouda Author-X-Name-First: Foued Author-X-Name-Last: Hamouda Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Identifying economic shocks with stock repurchase programs Abstract: This paper aims to identify economic shocks in four developed countries that authorize different buyback programs. Previous research has revealed that there are few public debates about buyback activities and economic conditions. According to the free cash flow hypothesis, the total payout policy is in line with the real economy of each country. Using linear and non-linear bivariate causality tests, we find that buybacks and industrial production are endogeniously determined. In Japan, prior buyback programs indicated a change in economic growth. However, in the United States, changes in economic growth will increase repurchase activity before the financial crisis. This finding is interesting because it supports the idea that repurchase programs are a significant factor in determining economic shocks. It has extended and confirmed the knowledge and perception that stock repurchases could be used by financial economists to predict economic shocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1968112 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1968112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1968112 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Owusu Ansah Author-X-Name-First: Martin Author-X-Name-Last: Owusu Ansah Author-Name: Rosemary Boateng Coffie Author-X-Name-First: Rosemary Author-X-Name-Last: Boateng Coffie Author-Name: Samuel Awuni Azinga Author-X-Name-First: Samuel Author-X-Name-Last: Awuni Azinga Author-Name: Michael Nimo Author-X-Name-First: Michael Author-X-Name-Last: Nimo Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Ghana’s single spine pay policy and unemployment: The application of the partial least square modelling approach Abstract: The paper investigated the nexus between Ghana’s single spine pay policy and unemployment. An exploratory sequential mixed design method was employed to collect data from 413 business owners and managers, which comprised manufacturing companies, service industries, wholesalers as well as small and medium-sized enterprises. The Statistical Package for Social Sciences (SPSS) 24.0 as well as the structural equation modelling (SEM) statistical technique with PLS 3.0 was used to determine the hypothesized relationships. It was observed that single spine pay policy had a significant effect on unemployment. The policy had a very high influence on cyclical unemployment, followed by frictional unemployment as well as the structural unemployment in that order. It basically uncovered evidence that the introduction of the policy contributed to the unemployment situation in the country. The study contributes to the ongoing research in examining the linkage between single spine pay policy and unemployment. It also adds to the existing literature on the measurement of unemployment as a “multidimensional construct” instead of the conventional “unidimensional construct” measurement. The strategic implication of the result is discussed in the paper. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1911766 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911766 Template-Type: ReDIF-Article 1.0 Author-Name: Opoku Adabor Author-X-Name-First: Opoku Author-X-Name-Last: Adabor Author-Name: Emmanuel Buabeng Author-X-Name-First: Emmanuel Author-X-Name-Last: Buabeng Author-Name: Raoul Fani Djomo Choumbou Author-X-Name-First: Raoul Fani Author-X-Name-Last: Djomo Choumbou Title: Asymmetrical effect of oil and gas resource rent on economic growth: Empirical evidence from Ghana Abstract: We investigate the asymmetric effect of oil and gas resource rent on economic growth of Ghana for the period 2010 to 2019, dwelling on the hypothesis that natural resources extraction has double-edge effect on economic growth. Using Nonlinear Autoregressive Distributed Lag (NARDL) model as estimation strategy, we find that oil and gas resource rent affect economic growth asymmetrically. Specifically, our NARDL estimates suggest that oil resource rent promotes economic growth significantly, providing empirical evidence in support of the resource blessing hypothesis. However, gas resource rent exerts a significant adverse effect on economic growth, providing empirical evidence to support the resource curse hypothesis. Our findings point to the need for policies that promote the expansion of oil resources firms than gas resource firms in the short run while long term policies should target setting up both oil and gas resource firms in developing countries, especially countries with similar socioeconomic and demographic setting like Ghana. Finally, government and monetary authorities should promote policies that attract foreign direct investment inflow in Ghana while taming inflation and lending rate towards growth enhancing targets. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1971355 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971355 Template-Type: ReDIF-Article 1.0 Author-Name: Esmael Abdu Author-X-Name-First: Esmael Author-X-Name-Last: Abdu Author-Name: Mohammd Adem Author-X-Name-First: Mohammd Author-X-Name-Last: Adem Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of financial inclusion in Afar Region: Evidence from selected woredas Abstract: This paper examined the determinants of financial inclusion in Afar Region. To address the objectives of the study, two purposively selected woredas (Awash and Asaita) and one city administration (Samara-logia) were used. Three hundred and eighty-four sample households were selected for this study. Data collected from administered structured questionnaires were analyzed using the binary logistic regression model. The results show that age, use, financial literacy, and mobile banking are positively and significantly related to financial inclusion. On the other hand, barrier and income negatively and significantly affect financial inclusion. The study results reveal that 31.25% of households were included and 68.75% of households are excluded from formal financial services. Further results show that barriers to financial inclusion such as problem of access to credit, absence of collateral, interest rate, lack of literacy, lack of internet access, lack of trust for financial institutions, lack of money, problem of access to bank branches and ATMs are main obstacles of financial inclusion in Afar region. This study recommends that government and financial institutions should encourage financial service providers, offer fiscal incentives or request financial institutions and serve poor or low-income people. Financial institutions should adopt technologies that ensure financial services are more accessible such as mobile banking. Moreover, households should enhance the saving habits that are helpful to increase amount of income and the literacy level of their children for the best use of financial services. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1920149 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920149 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulkarim Yusuf Author-X-Name-First: Abdulkarim Author-X-Name-Last: Yusuf Author-Name: Saidatulakmal Mohd Author-X-Name-First: Saidatulakmal Author-X-Name-Last: Mohd Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The impact of government debt on economic growth in Nigeria Abstract: This study investigated the effect of government debt on Nigeria’s economic growth using annual data from 1980 to 2018 and the Autoregressive Distributed Lag technique. The empirical results showed that external debt constituted an impediment to long-term growth while its short-term effect was growth-enhancing. Domestic debt had a significant positive impact on long-term growth while its short-term effect was negative. In the long term and short term, debt service payments led to growth retardation confirming debt overhang effect. The findings suggested that the government should direct the borrowed funds to the diversification of the productive base of the economy. This will improve long-term economic growth, expand the revenue base and strengthen the capacity to repay outstanding debts when due. Fiscal improvements that encourage domestic resource mobilization, efficient debt management strategies and reliance on domestic debt rather than external debt for increased deficit financing to engender greater growth are the main contribution of the study. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1946249 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1946249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1946249 Template-Type: ReDIF-Article 1.0 Author-Name: James Murunga Author-X-Name-First: James Author-X-Name-Last: Murunga Author-Name: Moses Kinyanjui Muriithi Author-X-Name-First: Moses Kinyanjui Author-X-Name-Last: Muriithi Author-Name: Nelson Were Wawire Author-X-Name-First: Nelson Were Author-X-Name-Last: Wawire Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Estimating the size of the informal sector in Kenya Abstract: In Kenya, very little research has been carried out on the topic of the informal sector. This paper estimates the size of the Kenyan informal sector for the period 1970–2018. In light of our analysis of the stationary properties of the data, which suggests a mixture of I(0) and I(1) variables, this study specifies an Autoregressive Distributed Lag Model (ARDL), which is applied to variables that pose such attributes. In addition, the model is good for small sample size observation, a characteristic that is common among developing countries. Our estimates indicate that this sector is quite large and has grown over time to about 32% of the country’s GDP or nearly one-third of the size of the recorded GDP. These results are consistent with the stylized fact about the Kenyan economy, in particular the large number of individuals employed in small businesses and trading as well as the number of tax returns filed on an annual basis versus the stated level of employment. The finding of a significant informal sector also has implications for the conduct of fiscal policy. The sector should not be wound abruptly since it provides employment to many Kenyans. The fiscal policy should aim at reducing the tax burden so that the participants in the informal sector gradually formalize their businesses. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2003000 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2003000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2003000 Template-Type: ReDIF-Article 1.0 Author-Name: Emeka A Ndaguba Author-X-Name-First: Emeka A Author-X-Name-Last: Ndaguba Author-Name: Anathi Hlotywa Author-X-Name-First: Anathi Author-X-Name-Last: Hlotywa Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Public health expenditure and economic development: The case of South Africa between 1996 and 2016 Abstract: A nation’s financial commitment to health investment and expenditure has a corresponding effect on its economic growth and development. Understanding the interplay and underlying connection between health expenditure and national development is critical in forecasting the wellbeing of a nation, vis-à-vis health preparedness. In this paper, we explore the impact of public healthcare expenditure on economic development in South Africa between 1996 and 2016. The autoregressive distributed lag model, error-correction model and a time series panel were adopted in analysing this effect. Empirical findings demonstrate a positive relationship between PHE and HDI in South Africa. Further, health investment may increase the income of health workers and provide for better working conditions and facilities to save lives. In addition, the relationship between CPI and economic development is insignificant, however CPI mediates PG. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1905932 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1905932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1905932 Template-Type: ReDIF-Article 1.0 Author-Name: Yukiko Konno Author-X-Name-First: Yukiko Author-X-Name-Last: Konno Author-Name: Antonio Belso-Martinez Author-X-Name-First: Antonio Author-X-Name-Last: Belso-Martinez Title: Factors Influencing the continuation of start-up companies Abstract: This study investigates the factors that influence the discontinuation of Japanese business start-ups using the resource-based view (RBV) framework. By conducting an empirical study using the binary logit model, this study reveals the factors that caused start-ups that began in 2006 to suspend operations by 2010. According to the results of the analysis, the better the company was prepared for potential threats before it opened, the higher the probability that the business would remain in operation. Moreover, it was found that business continuity is higher when the manager has business experience related to the current business. In terms of model fit, it was found that start-up preparation is more important to continuity than manager attributes. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1899368 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1899368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1899368 Template-Type: ReDIF-Article 1.0 Author-Name: Van Dan Dang Author-X-Name-First: Van Dan Author-X-Name-Last: Dang Author-Name: Van Cuong Dang Author-X-Name-First: Van Cuong Author-X-Name-Last: Dang Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Bank diversification and the effectiveness of monetary policy transmission: Evidence from the bank lending channel in Vietnam Abstract: The study empirically examines the impact of bank diversification on monetary policy transmission through the bank lending channel. Based on monetary and bank-level data from 2008 to 2018 in Vietnam, a diverse environment of monetary policy tools, results show that bank diversification significantly drives the bank lending channel in different ways. Using the changes in lending rates and policy rates as monetary policy indicators, the study posits strong evidence to indicate that the transmission of the bank lending channel becomes weaker as banks get more involved in non-traditional activities. In contrast, we observe that bank diversification promotes the effectiveness of monetary policy transmission by the intervention of foreign exchange reserves, with no clear-cut link in the case of open market operations. Further analysis indicates the weakening effect is almost confirmed in all bank groups, while the strengthening effect works only for banks with large capital buffers. In brief, the results suggest that monetary authorities should be vigilant when they are strongly encouraging bank diversification. Besides, they also need to choose the appropriate monetary tools to apply and establish specific policies for different groups of banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1885204 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885204 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885204 Template-Type: ReDIF-Article 1.0 Author-Name: Kamaruddin Author-X-Name-First: Author-X-Name-Last: Kamaruddin Author-Name: Raja Masbar Author-X-Name-First: Raja Author-X-Name-Last: Masbar Author-Name: Sofyan Syahnur Author-X-Name-First: Sofyan Author-X-Name-Last: Syahnur Author-Name: Shabri A. Majid Author-X-Name-First: Shabri A. Author-X-Name-Last: Majid Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Asymmetric price transmission of Indonesian coffee Abstract: Almost all previous studies of Asymmetric Price Transmission (APT) only focused on speed perspective. The study aims to investigate the effect of coffee prices in the global market on the Indonesian producer market in magnitude, speed, and direction perspectives. This study used the data of coffee prices at the producer level, coffee prices at the world market, and Indonesian GDP for the period 1980 to 2018. To examine the behavior of the APT, we use the NARDL model. The results show that there is a nonlinear co-integration of coffee prices between the global market and the Indonesian producer market. The APT occurs both in the long run and short run. The existence of the APT is not only in speed but also in magnitude and direction sides. The response of coffee prices in the producer market is higher and faster when the world coffee prices decrease. It indicates the failure to perform a perfectly competitive market structure in Indonesia. If the performance of the national economy is stable, Indonesian coffee producers are more likely to increase global coffee prices. However, in the Indonesian economic recession, coffee producers tend to suffer welfare loss due to the negative shock of world coffee prices. Therefore, policymakers should not only focus on economic growth but also has to make some policies assessing perfect competition in domestic agricultural markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1971354 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971354 Template-Type: ReDIF-Article 1.0 Author-Name: Ali Murad Syed Author-X-Name-First: Ali Murad Author-X-Name-Last: Syed Author-Name: Hana Saeed Bawazir Author-X-Name-First: Hana Saeed Author-X-Name-Last: Bawazir Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Recent trends in business financial risk – A bibliometric analysis Abstract: The finance literature is giving more attention to financial frisk aspects. However, in literature, only a fragmented comprehension is known about the contextual influence of financial risk aspects of businesses. In this article, we contribute by carving out the intersections between Finance and Risk and analyze the production as well as visualize the evolution and trends of this field. In our research approach we use bibliometric technique to analyze 10 years of publications in Web of Science (WoS) database and present a comprehensive contextual picture of financial risk research. We analyzed 3024 publications by identifying the most prominent journals, authors, articles, countries and collaboration among authors and countries. Moreover, a co-occurrence analysis between authors, keywords and journal was done along as well as cluster analysis and thematic analysis is also performed to find the evolutionary trends. Our results showed that credit risk is the most trend topic over the last 10 years and performance and risk taking are two most inter-connected words using co-occurrence citation analysis. Our analysis showed that the corporate governance, financial crisis, financial innovation, and entrepreneurship are evolving themes and their occurrence is increasing and become more prominent in the in the domain of financial risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1913877 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913877 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913877 Template-Type: ReDIF-Article 1.0 Author-Name: Hyangsuk Cho Author-X-Name-First: Hyangsuk Author-X-Name-Last: Cho Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: Determinants of the downward sloping segment of the EKC in high-income countries: The role of income inequality and institutional arrangement Abstract: Even among developed countries, each country has very different circumstances and political institutions regarding environmental issues. Moreover, the differences in individual attitudes about environmental issues within national borders and in the types of environmental behaviors affect the environmental policy of each country. Therefore, in contrast to the Environmental Kuznets curve (EKC) hypothesis, the effect of economic growth on environmental degradation differs between high-income countries. Evidences show that economic growth is not the only determinant of environmental change, particularly in high-income countries. In this respect, this paper examines the existence of the EKC as well as the effects of the level of political institution on the relationship between greenhouse gas (GHG) emission per capita and income inequality; it does this by using unbalanced data for 33 OECD countries from 1990 to 2014. The findings of this study show that the level of income inequality differentially affects the GHG emission depending on the level of institution. The EKC hypothesis holds only in countries with a high level of institution, and the threshold of the EKC is positioned at a lower income level in countries with stronger institutional arrangement, and such countries also show lower GHG emission per capita. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1954358 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954358 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954358 Template-Type: ReDIF-Article 1.0 Author-Name: Bedilu Demissie Zeleke Author-X-Name-First: Bedilu Demissie Author-X-Name-Last: Zeleke Author-Name: Adem K. Geleto Author-X-Name-First: Adem K. Author-X-Name-Last: Geleto Author-Name: Hussien H. Komicha Author-X-Name-First: Hussien H. Author-X-Name-Last: Komicha Author-Name: Sisay Asefa Author-X-Name-First: Sisay Author-X-Name-Last: Asefa Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Determinants of adopting improved bread wheat varieties in Arsi Highland, Oromia Region, Ethiopia: A Double-Hurdle Approach Abstract: The improvement of agricultural productivity using technology is an important avenue for increasing output and reducing poverty in sub-Saharan countries. However, the low adoption of high yield varieties has been identified as one of the main reasons for low productivity in sub-Saharan Africa. Consequently, the study examined the effect of demographic, socioeconomic and institutional factors affecting adoption and adoption-intensity of improved wheat varieties (IWVs), using data obtained from randomly selected farm households in the Arsi Highland of Ethiopia. We estimated a Double hurdle model to analyze the determinants of the intensity of IWVs adoption, as adoption and use intensity were two independent decisions influenced by different factors. The results also show that Double hurdle model is more appropriate than the Tobit model. Empirical estimates of the first hurdle reveal that wheat farming experience, distance to cooperatives, renting a tractor and combine harvester, Urea application, and net income from the wheat grain sale all significantly increased the likelihood of IWVs adoption. Estimates of the second hurdle revealed that the decision to use the optimal intensity of IWVs by smallholder farmers was influenced by seed availability, row planting, and distance to cooperative all significantly and positively. The intensity of adoption was also found to be negatively related to the proportion of farmland allotted for wheat production. Accordingly, policies and interventions that are informed about such factors are required to accelerate the adoption and adoption-intensity of IWVs in Ethiopia to realize a wheat Green Revolution and fight food insecurity in a sustainable manner. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1932040 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932040 Template-Type: ReDIF-Article 1.0 Author-Name: Srikanth Potharla Author-X-Name-First: Srikanth Author-X-Name-Last: Potharla Author-Name: Kaushik Bhattacharjee Author-X-Name-First: Kaushik Author-X-Name-Last: Bhattacharjee Author-Name: Vishwanathan Iyer Author-X-Name-First: Vishwanathan Author-X-Name-Last: Iyer Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Institutional ownership and earnings management: Evidence from India Abstract: The present study analyzes and assesses the robustness of monitoring effectiveness of institutional investment against the information asymmetry prevailing in the market, especially the asymmetric monitoring effectiveness of Domestic Institutional Investment (DII) vis-à-vis Foreign Institutional Investment (FII). Drawing from a sample of listed non-financial firms with institutional investment of 20% or more, this study tests the relationship between earnings management and institutional ownership controlling for known firm-specific variables. The results reveal that institutional investment in aggregate as well as DII and FII have significant negative impact on earnings management supporting the active monitoring hypothesis. The results also support hometown advantage hypothesis for the sub-group of companies with higher Price to Book Value (PBV) and global investor hypothesis for the sub-group of companies with lower PBV ratio. Various implications applicable in the Indian markets contexts are discussed. Domestic institutional investors should improve their cost-effective technology to acquire and process the price-sensitive information which can enhance their competitive advantage over their foreign counterparts. This is one among the first few studies that tests the robustness of monitoring effectiveness of institutional investment against the information asymmetry in the market and shows that monitoring effectiveness of FII and DII is not uniform across companies in which they invest. Another contribution to the extant literature in India is the analysis using alternative definitions of earnings management, incorporating industry-specific and time-specific factors in estimation of discretionary accruals. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1902032 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902032 Template-Type: ReDIF-Article 1.0 Author-Name: Partha Mohapatra Author-X-Name-First: Partha Author-X-Name-Last: Mohapatra Author-Name: Ajit Dayanandan Author-X-Name-First: Ajit Author-X-Name-Last: Dayanandan Author-Name: Sudershan Kuntluru Author-X-Name-First: Sudershan Author-X-Name-Last: Kuntluru Author-Name: Athira A Author-X-Name-First: Athira Author-X-Name-Last: A Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Audit partner rotation, and its impact on audit quality: Evidence from India Abstract: Using multiple indicators of audit quality, the study examines the impact of audit partner rotation on audit quality in India based on 1,694 firm years for the period of 2011–2017 when the institutional set up for audit partner rotation was voluntary. The empirical results indicate that the audit partner rotation had no significant impact on audit quality as measured by discretionary accruals and going concern audit opinion. The study finds that other factors like loss year, size of the firm, value, leverage have a statistically significant impact on audit quality. The empirical results also indicate an inverse relationship between audit fees and audit partner rotation implying, price-cutting of the audit. The findings are important to regulators regarding the significance of audit partner rotation in enhancing audit quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1938379 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1938379 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1938379 Template-Type: ReDIF-Article 1.0 Author-Name: Dung Viet Tran Author-X-Name-First: Dung Viet Author-X-Name-Last: Tran Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Bank stability and dividend policy Abstract: Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends exposes banks to stricter market discipline, then decreases the risk-taking behaviors of bank management compared with non-payers, consistent with the Dividend-Stability Channel. However, among banks that pay dividends, excessive dividends makes them riskier, consistent with the Dividend-Fragility Channel. Our results remain unchanged due to a battery of robustness testings. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1982234 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1982234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1982234 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Alsharif Author-X-Name-First: Mohammad Author-X-Name-Last: Alsharif Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The efficiency of banks and stock performance: Evidence from Saudi Arabia Abstract: The aim of this study is to extend the literature by extensively investigating the efficiency of banks in Saudi Arabia and examining its relationship with stock performance through relying on six measures of efficiency (three price efficiencies and three technical efficiencies). This study employs the data envelopment analysis (DEA) on all listed Saudi commercial banks over the period 2006–2018 ensuring the robustness of the results, and the multiple-regression analysis method is used to empirically test the impact of the efficiency changes on bank stock returns. The results indicate that Saudi banks are more technically efficient, and their price efficiencies are more volatile. Furthermore, changes in bank efficiency are positively related to stock performance; however, these positive relationships are only statistically significant with the changes in profit and scale efficiency measures implying that investors pay much attention to the improvement in bank profitability and future dividends. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1953726 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953726 Template-Type: ReDIF-Article 1.0 Author-Name: Yufan Zhao Author-X-Name-First: Yufan Author-X-Name-Last: Zhao Author-Name: Sin Huei Ng Author-X-Name-First: Sin Huei Author-X-Name-Last: Ng Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Dividend payout policies in the pre and post split share structure reform in China Abstract: This paper examines the motivation of dividend payout policies for Chinese listed firms before and after the Split Share Structure Reform in China from the corporate governance-related viewpoint. Analysis was carried out using panel data with random effect from a sample of firms listed on the A-share Chinese market in the period of 2001–2004 (before the reform) and 2014–2017 (after the reform). It is found that (1) the incentive of tunnelling via dividend by controlling shareholders is weaken after the reform; (2) dividends are taken as a measure to reduce agency problems caused by free cash flows after the reform; (3) dividends after the reform become more stable than those before the reform. (4) in general, the market reacts positively to the increase of dividend both before and after the reform. It can be concluded that dividend policies are taken as the measure of minority shareholder protection and signalling rather than expropriation after the reform. This paper contributes to the literature by comparing dividend payout policies during the full circulation era with that before the reform was initiated. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1923620 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923620 Template-Type: ReDIF-Article 1.0 Author-Name: Misbah Sadiq Author-X-Name-First: Misbah Author-X-Name-Last: Sadiq Author-Name: Muhammad Usman Author-X-Name-First: Muhammad Author-X-Name-Last: Usman Author-Name: Aysha Zamir Author-X-Name-First: Aysha Author-X-Name-Last: Zamir Author-Name: Malik Shahzad Shabbir Author-X-Name-First: Malik Shahzad Author-X-Name-Last: Shabbir Author-Name: Ankasha Arif Author-X-Name-First: Ankasha Author-X-Name-Last: Arif Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Nexus between economic growth and foreign private investment: Evidence from Pakistan economy Abstract: This study examines the impact of economic growth along with taxes, technology, trade openness and exchange rate on the sustainability of foreign private investment (FPI) in Pakistan. This study uses random effects and generalized least squares estimators and contains data set starting from 1996 to 2017. The results indicate that the Pakistan economy has vastly positive influenced regarding the location and choice of emerging and developed countries’ investment in the domestic market. Furthermore, emerging and developed economies investment increases the contribution among domestic firms to the national economy. The results, which are consistent across models, indicate that Pakistan’s economy is more likely to receive FPI from emerging and developed economies, but the relative intensity of local government efforts, regardless of economic size. Moreover, an increase in likelihood will generate FPI from developed countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1956067 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956067 Template-Type: ReDIF-Article 1.0 Author-Name: Shaikh Hamzah Abdul Razak Author-X-Name-First: Shaikh Hamzah Author-X-Name-Last: Abdul Razak Author-Name: Fekri Ali Shawtari Author-X-Name-First: Fekri Ali Author-X-Name-Last: Shawtari Author-Name: Bilal Ahmad Elsalem Author-X-Name-First: Bilal Ahmad Author-X-Name-Last: Elsalem Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Ownership type, business model, market structure, and the performance of Takaful and conventional insurance companies in Malaysia Abstract: The paper evaluates the performance of the Takaful and insurance companies in Malaysia. It examines the impact of ownership, business model, and market structure on conventional and Takaful companies’ performance. The inter-firm comparisons provide information about the performance and competitiveness of firms operating under different modes of business. The study adopts the unbalanced panel data approach with Panel Corrected Standard Error (PCSE) regression to analyse the data of 44 Malaysian Takaful and insurance companies with 255 firm observations over the period from 2011 to 2016. The study’s findings show that Takaful and insurance companies perform at par in terms of their premiums. However, Takaful has better investment income. Foreign-owned firms perform better than local firms. The efficient market hypothesis is more powerful than the structural conduct hypothesis in explaining the firms’ performance. The study’s implications are expected to help improve and develop the Takaful and insurance sector as an efficient industry in-line with regulation changes. To the best of our knowledge, this paper is the first to compare the Takaful with conventional insurance in Malaysia concerning their performance, market structure, and ownership. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1888436 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1888436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1888436 Template-Type: ReDIF-Article 1.0 Author-Name: Ramesh C. Paudel Author-X-Name-First: Ramesh C. Author-X-Name-Last: Paudel Author-Name: Majed Alharthi Author-X-Name-First: Majed Author-X-Name-Last: Alharthi Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Role of financial development in the export performance of a landlocked developing country: The case of Nepal Abstract: This paper, using the most recent index of financial development as developed in an IMF publication by Svirydzenka, examines the role of overall financial development, financial institutions, and financial markets in the export performance of Nepal employing the Autoregressive distributed lag (ARDL) approach of cointegration using the annual datafrom 1980 to 2017. The results show that financial development does not have a strong long-run positive relationship with the export performance of Nepal. Financial institutions and financial markets also indicate a negative association with exports. Therefore, it can be suggested based on the results that there is a need for developing strategies for the proper financial development improving the financial institution quality, and widening the financial market targeting to facilitate more meaningfully to the exporters and manufacturers to boost export performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1973653 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1973653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1973653 Template-Type: ReDIF-Article 1.0 Author-Name: Saima Shadab Author-X-Name-First: Saima Author-X-Name-Last: Shadab Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: The nexus between export diversification, imports, capital and economic growth in the United Arab Emirates: An empirical investigation Abstract: Using the Vector Error Correction Model (VECM) and Toda-Yamamoto Causality approach, this paper investigates the short-run and long–run relationship between export diversification, physical and human capital, imports, and economic growth in the UAE. The study period in consideration is 1975-2017. The findings obtained from the VECM test confirm the existence of a significant long-run relationship between export diversification, imports, and economic growth in the UAE. Besides, the Toda Yamamoto Granger Causality test results reveal that imports Granger-cause UAE’s economic growth which proves the validity of the Import-Led Growth hypothesis for the UAE economy in the long-run. The results also confirm that a unidirectional causal relationship exists from export diversification to economic growth for the UAE. This finding indicates the success of the UAE economy in attaining economic diversification and reduction in oil–dependency. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1914396 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1914396 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1914396 Template-Type: ReDIF-Article 1.0 Author-Name: A. Daniel Gbadebo Author-X-Name-First: A. Daniel Author-X-Name-Last: Gbadebo Author-Name: A. Oluwatobi Adekunle Author-X-Name-First: A. Oluwatobi Author-X-Name-Last: Adekunle Author-Name: O. Joseph Akande Author-X-Name-First: O. Joseph Author-X-Name-Last: Akande Author-Name: D. Wahid Olanipekun Author-X-Name-First: D. Wahid Author-X-Name-Last: Olanipekun Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The MPC meetings, macroeconomic announcements and exchange rate behaviour in Nigeria Abstract: Literature recognise that announcement impinge shocks which could shift the mean behaviour of the exchange rate. This study apply event driven models to analyse how the expectation of daily log-exchange rate and its daily log-return respond to all the 88 MPC meetings and selected CBN’s announcements that “contained information on exchange rate stabilisation” from 2 January 2005 to 25 September 2020. We establish that the log-exchange rate responds to the announcements, with and without the MPC meetings. The exchange rate is expected to depreciate in all the three days before, on the announcement day, and all the three days after the announcement. There is no sufficient evidence that either the MPC meeting or CBN announcement affects the behaviour of the log-return. Hence, unlike the MPC meetings, the announcements affects the exchange rate but not its return. We expect market participants to consider these findings in making forex decisions, and the central banks in the formulation of monetary policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1952720 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1952720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1952720 Template-Type: ReDIF-Article 1.0 Author-Name: Alfred Kechia Mukong Author-X-Name-First: Alfred Kechia Author-X-Name-Last: Mukong Author-Name: Lwanga Elizabeth Nanziri Author-X-Name-First: Lwanga Elizabeth Author-X-Name-Last: Nanziri Author-Name: Stephanos Papadamou Author-X-Name-First: Stephanos Author-X-Name-Last: Papadamou Title: Social networks and technology adoption: Evidence from mobile money in Uganda Abstract: Innovative financial technologies are becoming a pathway to inclusive economic participation for individuals and firms. This paper presents evidence on how individuals’ decisions to adopt such technology, particularly mobile money, relate to the adoption choices of their network of family and friends. Using the Uganda Financial Inclusion Insights (FII) Tracker Survey for 2013, we find that mobile money adoption decisions are closely linked to the network of an individual’s family and friends. Networks are defined in two ways: by the source of information on mobile money services and by the average number of adoptions in one’s neighbourhood. Like many other studies, we find a positive correlation between mobile money adoption and the adoption decisions of one’s network. The correlation persists across the different measures of networks and even when we control for unobservable (neighbourhood fixed effects) characteristics. However, the magnitude of the point estimates decreases as the model becomes saturated. Despite having more mobile money users than adopters in our sample, we do not find evidence that networks can stifle technology adoption due to the possibility of piggybacking on early adopters within the network. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1913857 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913857 Template-Type: ReDIF-Article 1.0 Author-Name: Madow Nagou Author-X-Name-First: Madow Author-X-Name-Last: Nagou Author-Name: Nimonka Bayale Author-X-Name-First: Nimonka Author-X-Name-Last: Bayale Author-Name: Brigitte Kanga Kouassi Author-X-Name-First: Brigitte Kanga Author-X-Name-Last: Kouassi Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: On the robust drivers of public debt in Africa: Fresh evidence from Bayesian model averaging approach Abstract: While economic theory suggests a wide range of potential drivers of public debt, there is little consensus regarding the most relevant ones. This paper analyzes the determinants of the public debt in Africa. This is done by adopting a Bayesian Model Averaging (BMA) approach applied to data of 51 African countries, spanning the period 1990–2018. Our results suggest that, among the set of twenty-seven (27) regressors considered, those reflecting international financial and institutional conditions as well as internal economic prospects tend to receive high posterior inclusion probabilities. Then, the study explores the effect of these regressors on public debt by employing the fixed effects (FE) and the system Generalized Method of Moments (GMM) estimators. The results reveal that, foreign aid, fiscal deficit, trade openness, military expenditure, interest and exchange rates, debt-service, domestic credit, government stability index, political regime type and socio-economic crises are the main and robust drivers of public debt accumulation in African countries. These findings are robust to changes in the model specification, the inclusion of socio-economic crises and regional heterogeneities. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1860282 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1860282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1860282 Template-Type: ReDIF-Article 1.0 Author-Name: Hai Chi Nguyen Author-X-Name-First: Hai Chi Author-X-Name-Last: Nguyen Author-Name: Doan Thanh Nguyen Author-X-Name-First: Doan Thanh Author-X-Name-Last: Nguyen Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: The impact of non-commodity sovereign wealth funds’ ownership on the domestic target firm performance Abstract: Previous research fails to investigate the impact of sovereign wealth funds (SWFs) on financial and non-financial performances of target firms. This study aims to fill the gap by using quantile regression technique on a sample of non-commodity SWFs and their target firms in five countries, namely France, Singapore, China, Malaysia and Vietnam. The research shows that non-commodity SWFs have a positive effect of increasing the financial performance for domestic target firms with relatively good performance. However, the SWFs have no significant impact on low-performing target businesses. The research findings imply that SWFs have limitations in management skills and experience and hesitate to invest in businesses with poor performance to avoid risks of bankruptcy and financial distress. The results show that the non-commodity SWFs tend to exert a negative impact on the non-financial performance of domestic target firms more strongly when the non-financial performance of the target firms is higher. Finally, these results indicate that SWFs are concerned with both financial and non-financial performances, and try to balance the two types of performance in an optimal way. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1878620 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1878620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1878620 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Dery Nyeadi Author-X-Name-First: Joseph Dery Author-X-Name-Last: Nyeadi Author-Name: Kofi Kamasa Author-X-Name-First: Kofi Author-X-Name-Last: Kamasa Author-Name: Stephen Kpinpuo Author-X-Name-First: Stephen Author-X-Name-Last: Kpinpuo Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Female in top management and firm performance nexus: Empirical evidence from Ghana Abstract: This study investigates empirically the link between females in top management and firm performance in Ghana. This study employs the Instrumental Variable (IV) Two Stage Least Squares (2SLS) technique of estimation in determining the impact of females in top management on firm performance using World Bank Enterprise Survey (WBES) data across 720 firms in Ghana. This technique is very robust as it has the power to control for any possible endogeneity bias, which can lead to spurious results. After controlling for reverse causality, our results reveal that the inclusion of females in top management impacts positively on firm performance in Ghana. We further note that though innovation has direct positive impact on firm performance, there is no evidence of any moderating roles played by innovation or education in the link between female in top management and firm performance in Ghana. The results of our study should however be interpreted with a bit of caution as we have not been able to examine the time dynamics of our findings due to lack of reliable panel data. Apart from serving as a reference literature for future studies, the study is very useful to both government and firms who make decisions in respect of females in management. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1921323 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921323 Template-Type: ReDIF-Article 1.0 Author-Name: Prince Mike Sena Author-X-Name-First: Prince Mike Author-X-Name-Last: Sena Author-Name: Grace Nkansa Asante Author-X-Name-First: Grace Nkansa Author-X-Name-Last: Asante Author-Name: William Gabriel Brafu-Insaidoo Author-X-Name-First: William Gabriel Author-X-Name-Last: Brafu-Insaidoo Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Monetary policy and economic growth in Ghana: Does financial development matter? Abstract: The link between financial development and monetary policy has received considerable attention in many African countries but empirical evidence on the link has been mixed. By the use of the Autoregressive Distributed Lag (ARDL) approach, this study investigated whether financial development influences the effectiveness of monetary policy and assessed their joint effect on economic growth in Ghana for the period 1980 to 2016. The results revealed that financial development strengthens the effectiveness of monetary policy on economic growth in Ghana. The study therefore recommended that Bank of Ghana should further deepen financial sector development and improve on the competitiveness of financial markets in order to improve on the capacity of monetary policy in enhancing growth of the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1966918 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966918 Template-Type: ReDIF-Article 1.0 Author-Name: Andualem Kassegn Author-X-Name-First: Andualem Author-X-Name-Last: Kassegn Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: COVID-19: The impacts of the global crises on African remittances and countries response to this an extreme crisis Abstract: As the COVID-19 pandemic continues to afflict much of the global economy, the flow of African remittances is likely to suffer substantially. Therefore, the aims of this review were to assess and complied the possible impacts of the COVID-19 pandemic on African remittances and highlights the key responses undertaken in the continent, which could be useful and provided necessary information on the ongoing COVID-19 pandemics in the continent. To achieve these objectives, in this review, all relevant information were collected through different search engines of PubMed/PMC/Medline, Web of Science, Google Scholar, Scopus, Google, and Science Direct databases. In addition, media news, reports relevant to the topic from local and national governments and international organizations were used. This review revealed that the COVID-19 pandemic is inevitably affecting remittance-dependent African countries through devastating impacts on the global economy in the destination countries, and restrictions on travel and high cost of sending remittances to their home country.As aresult, remittances to Africa are expected to decrease significantly by around 8.8% between 2019 and 2020, from $48 billion to $44 billion. Hence, this review draws practical lessons for African countries to tackle the impacts of COVID-19 pandemic on African remittance inflows. It argues that governments need to design and undertaken comprehensive relief measures, monetary and fiscal policy recovery policies to address problems related to the falling of remittances towards Africa due to the pandemic. Therefore, flexible country level and region-wide collaborative efforts should be made to mitigate the expected decline of remittance inflows to African due to the COVID-19 pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1948665 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1948665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1948665 Template-Type: ReDIF-Article 1.0 Author-Name: Solomon Estifanos Massresha Author-X-Name-First: Solomon Estifanos Author-X-Name-Last: Massresha Author-Name: Tadesse Zenebe Lema Author-X-Name-First: Tadesse Zenebe Author-X-Name-Last: Lema Author-Name: Markew Mengiste Neway Author-X-Name-First: Markew Mengiste Author-X-Name-Last: Neway Author-Name: Wudineh Ayalew Degu Author-X-Name-First: Wudineh Ayalew Author-X-Name-Last: Degu Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Perception and determinants of agricultural technology adoption in North Shoa Zone, Amhara Regional State, Ethiopia Abstract: Laying the ground for the agricultural sector to derive development is critical and urgent in relieving majority of the poor out of poverty trap. This in turn calls the modernization of the agriculture sector through agricultural technology adoption. The major objective of the study is to assess the perception and determinants of agricultural technology adoption in North Shoa zone, Amhara regional state, Ethiopia. Data were collected from 796 farming households from four districts namely, Angolela Tera, Menz Gera, Minijar Shenkora and Moretna Jiru. For analysis purpose, t-test and binomial logistic model was employed. The result indicates that the likelihood of adopting improved seed, chemical fertilizer and irrigation is higher among households with higher age, greater years of schooling, large farm size, large livestock ownership and many extension contacts. Additionally, the likelihood of adopting these agricultural technologies is higher for household participating in non-farm income generating activities, having membership status in various social group and having access to credit. The likelihood of adopting the prevailing agricultural technologies also found higher for male- headed households as compared to female-headed ones. Distance to the nearest market also negatively and significantly affects the decision to adopt various agricultural technologies. The study suggested that the awareness of farmers concerning the available agricultural technologies should be raised through membership of different social group and frequent extension contact. On the other, promoting farmers to participate in off-farm income generation activities and creating access to credit service can reduce the financial constraint in purchasing and possessing new agricultural technologies. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1956774 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956774 Template-Type: ReDIF-Article 1.0 Author-Name: Birku Reta Entele Author-X-Name-First: Birku Reta Author-X-Name-Last: Entele Author-Name: Bikram Acharya Author-X-Name-First: Bikram Author-X-Name-Last: Acharya Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Title: Demand forecasting for successive generations of mobile telecommunication service in Ethiopia Abstract: The Ethiopian telecommunication market has been expanding slowly due to supply side constraints. However, these days, government has already announced to open market to the private operators and in this environment, the upcoming mobile telecommunication market, where 4 G service was already introduced in 2015, is becoming more substitutive and competitive. Thus, this study aim to forecast the switchers and leapfrogers demand for 3 G and 4 G mobile data services in Ethiopia. In order to do so, firstly, we investigated consumer preferences for mobile data generation services. Secondly, we estimated the mobile phone diffusion using Bass model to predict the future potential market size. Finally, we combined both models and forecasted the switchers and leapfrogers demand for 3 G and 4 G mobile data services. The result reveals that, by 2025, the 3 G and 4 G data service subscribers are forecasted to be 40 and 1.93 million, respectively, including both switchers and leapfrogers adoption. The policy implications are: (1) Service provider should adjust its service supply plan as per the forecasted demand. (2) Service provider should charge its service package strategically considering demand elasticity and finally, the service provider should make proper expansion of 4 G infrastructure since consumers are verging towards 4 G data services. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1969111 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1969111 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1969111 Template-Type: ReDIF-Article 1.0 Author-Name: Mesele Belay Zegeye Author-X-Name-First: Mesele Belay Author-X-Name-Last: Zegeye Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Adoption and Ex-post Impact of Agricultural Technologies on Rural Poverty: Evidence from Amhara Region, Ethiopia Abstract: This study examines the impacts of multiple agricultural technology adoption on poverty in rural Amhara region, Ethiopia. The study is based on Ethiopian socio economic survey of 2015/16. A total of 656 farm households were included. The study employed Multinomial Logit model to identify the determinants of adoption and Multinomial Endogenous Switching Models to measure the effect of adoption on poverty. The results revealed that educational level of the household head, family size, off-farm participation, livestock, extension visit, credit access, advisory service, plot distance, distance from market, distance from zonal town, and remittances are the major determinants of agricultural technology adoption decisions. The impact results revealed that adoption of multiple technologies increases consumption expenditure significantly, thereby reduces poverty. Moreover, adoption in package provides higher consumption than in isolation. Therefore, the study suggests that policies that promote wider adoption of alternative agricultural technologies at the regional and country level help to reduce poverty. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1969759 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1969759 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1969759 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Minh Ha Author-X-Name-First: Nguyen Minh Author-X-Name-Last: Ha Author-Name: Nguyen Dang Le Author-X-Name-First: Nguyen Author-X-Name-Last: Dang Le Author-Name: Pham Trung-Kien Author-X-Name-First: Pham Author-X-Name-Last: Trung-Kien Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: The impact of urbanization on poverty reduction: An evidence from Vietnam Abstract: Poverty is a global socio-economic phenomenon. It is always a problem in all countries include developing countries and developed countries. In Vietnam, the poverty rate has been decreasing while the urbanization has happened rapidly over the past 20 years. Handling the dual problems of urbanization and poverty is important to be able to attain sustainable development. Therefore, this study is to analyze the impact of urbanization on poverty reduction in Vietnam. Using Driscoll and Kraay’s method and D-GMM method to estimate the provinces’ panel data in the period 2006–2016, we confirm that there exists a U-shape relationship between the level of urbanization and the poverty level in Vietnam. Moreover, the estimated thresholds of urbanization from the perspective of poverty reduction are 40.19% and 43.68% in the static and dynamic model, respectively. In addition, our results exhibit that the gross regional domestic product, human capital, and agricultural value have the effect of reducing poverty, but government spending and export value increases the poverty rate in Vietnam. The paper has relevant implications for policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1918838 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1918838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1918838 Template-Type: ReDIF-Article 1.0 Author-Name: Isaiah Oino Author-X-Name-First: Isaiah Author-X-Name-Last: Oino Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Regulatory capital: Implications on credit creation and profitability Abstract: The level of liquidity in banking determines the extent to which a bank can meet its financial intermediation role. Liquidity and regulatory capital requirements have gained momentum after the 2008 global financial crisis. Meeting the shareholder’s need (i.e profitability) and regulatory requirements (liquidity and capital) is a delicate balance that banks strive to achieve. Applying a pooled fixed-effects model on a complete panel of 179 banks from 2008 to 2019 in the European Union, the results show how banks in Europe strive to achieve profitability requirements at the same time meeting the regulatory hurdles. The results indicate, better-capitalised banks lend much more, which in turn enhances profitability. Also, the findings indicate that higher capital requirements for banks significantly positively influence liquidity. Furthermore, there is an inverse relationship between growth in loans and total regulatory capital. The results imply banks should ensure that the quality of the capital base and the buffers above the regulatory minimum are built up during periods of strong earnings growth. The results also indicate that profitability is significant in influencing the liquidity of the bank. The results emphasise the need to regulate not only the minimum capital requirement but also the liquidity level. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1955470 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1955470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1955470 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Elias Kayamo Author-X-Name-First: Samuel Elias Author-X-Name-Last: Kayamo Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Asymmetric impact of real exchange rate on inflation in Ethiopia: a non-linear ARDL approach Abstract: A surge in inflation for the last decade has been a top agenda of political and economic debate in Ethiopia. The monitory authority of the country has regularly devalued Ethiopian birr to stabilize the inflation and stimulate exports. Whether this has indeed stabilized inflation and increased export earnings is an issue of debate. This study investigates the asymmetric impact of real exchange rate on inflation for period 1982–2019. The non-linear ARDL bounds test is used to test the presence of long-run co-integrations. Long- and short-run estimations were done based on the non-linear ARDL error correction methodology. The result of the study indicated that the real exchange rate has asymmetric effects on inflation in short- and long-run. The imbalance in real exchange rate (depreciation and appreciation) causes a surge in inflation in the long-run. The policy implication of this study is that flexibility in exchange rate market should be planned to ensure price stability rather than following restrictive exchange rate policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1986931 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986931 Template-Type: ReDIF-Article 1.0 Author-Name: Solomon Tilahun Author-X-Name-First: Solomon Author-X-Name-Last: Tilahun Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: The determinants of public investment in Ethiopia: An ARDL approach Abstract: Public investment has shown increasing trends both in nominal and as a share of GDP over years in Ethiopia. These upsurges in public investment are believed to be due to factors that have visible impact on the fiscal posture of the country. To investigate the validity of Wagner’s law in Ethiopia; this study sets determinants of public investment in Ethiopia as a general objective. Specifically, the study sought to examine the main influencing factors on level of public investment in Ethiopia along three sets of explanatory variables. In order to meet the aforementioned objective, the study employed an autoregressive distributed lag (ARDL) approach over the period 1985–2019. Results from the bound tests show that there is a long-run relationship between the variables. The real per capita GDP is found to be positively and significantly impact on level of public investment which shows that there an evidence in favour of Wagner’s law,i.e. public spending has a high income elasticity of demand. This study also found that there is a positive relationship between public investment and private investment which shows that two are moving in tandem. Again, the study also found that foreign aid has positive impact on public investment implying that additional foreign aid leads to larger spending of the government on capital. Moreover, the study found that the degree of urbanization suggests that levels of public spending are higher in the urban sector than rural economies. These findings give strong policy implication to the policy makers because an increase in public investments in may then help spur economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1929680 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929680 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Yousaf Author-X-Name-First: Muhammad Author-X-Name-Last: Yousaf Author-Name: Petr Bris Author-X-Name-First: Petr Author-X-Name-Last: Bris Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Effects of working capital management on firm performance: Evidence from the EFQM certified firms Abstract: The main aim of the current study is to explore the relationship between working capital (WC) and firm performance. We chose a sample of 326 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Excellence Model from the Albertina database. The sample of the Czech firms was taken from three sectors: manufacturing, automobile, and construction. We employed a two-step system generalized method of moment (GMM) technique to determine the results. The study results revealed a negative impact of WC on firm performance; moreover, the firms having a quality certificate from the EFQM Excellence Model perform better. The findings of previous research, which were held globally, and the current study results will encourage the directors, managers, and leaders of the Czech firms to participate in the quality award. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1958504 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1958504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1958504 Template-Type: ReDIF-Article 1.0 Author-Name: Jemal Abafita Author-X-Name-First: Jemal Author-X-Name-Last: Abafita Author-Name: Tekilu Tadesse Author-X-Name-First: Tekilu Author-X-Name-Last: Tadesse Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Determinants of global coffee trade: Do RTAs matter? Gravity model analysis Abstract: This study investigates the patterns of global coffee trade flows and identifies the major determinants of global coffee trade by incorporating RTAs as important variable. Gravity modeling with OLS and PPML estimator was employed for the analysis using panel data on bilateral coffee trade flows of 18 major coffee exporters and 201 trading partners for the period 2001–2015. Both exporter GDP (and population) as well as importer GDP were found to be important determinants enhancing coffee trade. Of the bilateral distance variables, physical distance is found to impede coffee trade, while common border was found to enhance it. On the other hand, cultural (distance) variables like colonial link, common colonizer and common language were also found to enhance coffee trade. Other variables that were found to significantly enhance coffee trade include depreciation in exporting country’s exchange rate, the amount of arable land in exporting country, infrastructure and global financial crisis. On the other hand, importing country tariff was found to significantly reduce coffee trade as expected. Surprisingly, the RTA variable had no significant impact on coffee bilateral trade. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1892925 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892925 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Ngoc Thach Author-X-Name-First: Nguyen Ngoc Author-X-Name-Last: Thach Author-Name: Jorge Miguel Lopo Gonçalves Andraz Author-X-Name-First: Jorge Miguel Lopo Gonçalves Author-X-Name-Last: Andraz Title: How have NESTs grown? Explanations based on endogenous growth theory Abstract: The NEST or potential Emerging and growth-leading economies (EAGLEs) have been playing an increasing role in global growth, but the problems of their long-term growth attract the least attention, specifically the possibility of endogenous growth. The study was conducted to test for the endogenous growth possibility of the 15 NEST economies of the first wave. Based on macro data over 17 years, using the Bayesian non-linear regression method through the Metropolis–Hastings algorithm and Gibbs sampling, the author specified individual Constant elasticity of substitution (CES) functions for the researched economies. The Bayesian non-linear regressions are recognized as appropriate for empirical analysis of growth processes. The research revealed that out of the 15 studied NEST economies, the nine that have probably generated endogenous growth have acquired, on average, the higher magnitude of output growth, capital growth, FDI inflows, HDI, as well as expenditure on R&D. This is because these countries have implemented reasonable growth policies, such as encouraging investments from domestic and foreign companies, accumulating human capital, developing national R&D activities, extensively applying high technologies. Specifically, our findings are consistent with the predictions of Romer’s endogenous growth theory. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1913847 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913847 Template-Type: ReDIF-Article 1.0 Author-Name: Irvan Kuswardana Author-X-Name-First: Irvan Author-X-Name-Last: Kuswardana Author-Name: Nachrowi Djalal Nachrowi Author-X-Name-First: Nachrowi Author-X-Name-Last: Djalal Nachrowi Author-Name: Telisa Aulia Falianty Author-X-Name-First: Telisa Author-X-Name-Last: Aulia Falianty Author-Name: Arie Damayanti Author-X-Name-First: Arie Author-X-Name-Last: Damayanti Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: The effect of knowledge spillover on productivity: Evidence from manufacturing industry in Indonesia Abstract: In this study, we analyze the effect of knowledge spillover on productivity in the Indonesian manufacturing industry from 2010 to 2014 using inter-sectoral linkages and inter-regional linkages. For the first time in the literature, we apply an input-output table and geographic distance between regions as the weight matrix in spatial econometric estimation to measure the productivity spillover. We find that: (1) productivity spillover from transactions of intermediate goods in vertical linkage (customer-supplier) is dominated by inter-industry downstream and intra-industry upstream; (2) the adoption of foreign technology by domestic firms through imported materials is more vital than foreign direct investment; (3) productivity spillover created from capital-intensive industries is higher than that from labor-intensive industries; (4) in productivity spillover flows through inter-regional spillover and intra-regional spillover, the latter creates higher productivity spillover than the former. This implies that the shorter the geographic distance, the narrower the technology gap; (5) investments in human capital and physical capital are a prerequisite for absorbing technology and thus essential absorptive capacity factors for firms/industries/regions as they narrow down the technology gap between developing and advanced firms/industries/regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1923882 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923882 Template-Type: ReDIF-Article 1.0 Author-Name: Girma Mulugeta Author-X-Name-First: Girma Author-X-Name-Last: Mulugeta Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: The role and determinants of women labor force participation for household poverty reduction in Debre Birhan town, North Shewa zone, Ethiopia Abstract: Women participation in economic activities plays a critical role in driving economic development throughout the world. This study aims to analyze the role and determinants of women’s labor force participation for reducing household poverty in the case of Debre Birhan town. To carry out this, the study used a cross-sectional study design. The data was collected by distributing questionnaires to a total of 291 sample households using multi-stage sampling technique. Logistic regression model was employed to analyze the determinants of women labor force participation by the collected data. The binary logit regression result identified that training, exposed to mass media and access to credit and education status of woman were found to be positive and significantly related to the probability of being participate. Moreover, Logistic regression model was employed in order to analyze the effect of woman labor force participation to household poverty reduction, with the probability of a household being poor as a dependent variable and a set of demographic and socioeconomic variables as the explanatory parameters. Based on this, out of the 291 surveyed household heads, 183(62.89%) of them were found poor. The result of this study confirms that women’s participation reduces the household poverty. Therefore, this study recommends that household uses family planning, promotes woman to attend higher education, exposed to mass media, creating public or private daycare centers for child and access to credit for woman. At this juncture both the households and the government should have the joint effort and responsibility to find possible panaceas. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1892927 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892927 Template-Type: ReDIF-Article 1.0 Author-Name: Nga Thi Viet Nguyen Author-X-Name-First: Nga Author-X-Name-Last: Thi Viet Nguyen Author-Name: Chi Thi Kim Nguyen Author-X-Name-First: Chi Thi Kim Author-X-Name-Last: Nguyen Author-Name: Phuong Thi Minh Ho Author-X-Name-First: Phuong Thi Minh Author-X-Name-Last: Ho Author-Name: Huong Thi Nguyen Author-X-Name-First: Huong Author-X-Name-Last: Thi Nguyen Author-Name: Duy Van Nguyen Author-X-Name-First: Duy Author-X-Name-Last: Van Nguyen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: How does capital structure affect firm’s market competitiveness? Abstract: Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise’s competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with other enterprises in the industry. This study aims to find out the effects of capital structure through debt ratio (DR) on the competitiveness of enterprises (HHI) in Vietnam. A sample of 574 companies listed on Vietnam’s stock exchange from 2010–2018 is studied with STATA software. The results show that capital structure affects the competitiveness of enterprises in reverse U-shape. At the same time, DR affects HHI in the form of the U-shaped function in industrial products, information and telecommunication, and consumer goods. Meanwhile, DR affects HHI in reverse U-shape in the sectors of consumer services, raw materials, and community utilities. With the results of this analysis, the research also provides discussion as well as policy implications for businesses to make optimal use of capital structure to provide competitive advantage in the market. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2002501 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2002501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2002501 Template-Type: ReDIF-Article 1.0 Author-Name: Brian Tavonga Mazorodze Author-X-Name-First: Brian Tavonga Author-X-Name-Last: Mazorodze Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Exchange rate misalignment, state fragility, and economic growth in sub-Saharan Africa Abstract: The sluggish and sometimes negative growth in sub-Saharan Africa has defined the objectives of most studies seeking to explain the sources of its slow growth. I contribute to this inquiry by estimating how state fragility influences the effect of exchange rate misalignment on economic growth. Since exchange rate misalignment captures the distortionary effects of inappropriate macroeconomic policies in the main, my hypothesis is that resilient and less fragile states cope better with macroeconomic imbalances making misaligned exchange rates less likely to have serious effects on growth in such countries. In testing this hypothesis, I first measure misalignment as deviations of the actual exchange rate from an estimated equilibrium level using the dynamic ordinary least squares method. I then insert this variable and its interaction with state fragility in a growth specification. In line with my hypothesis, results from the system generalised method of moments and data on 13 sub-Saharan countries observed between 2009 and 2018 show a significantly negative effect of exchange rate misalignment on growth that increases with state fragility. Based on this evidence, I urge countries in this region to improve state resilience as an effort to reduce the negative effect of exchange rate misalignment on economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1898113 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898113 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Hakim Author-X-Name-First: Abdul Author-X-Name-Last: Hakim Author-Name: Awan Setya Dewanta Author-X-Name-First: Awan Setya Author-X-Name-Last: Dewanta Author-Name: Sahabudin Sidiq Author-X-Name-First: Sahabudin Author-X-Name-Last: Sidiq Author-Name: Riska Dwi Astuti Author-X-Name-First: Riska Dwi Author-X-Name-Last: Astuti Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Modeling the interaction across international conventional and Islamic stock indices Abstract: Islamic financial instruments have been experiencing rapid growth in the last 50 years. Despite the unique motivation in formulating them, namely based on Syariah law, their movement might link to those of the conventional ones. This paper is devoted to investigating such interactions. It does so by applying two multivariate time series models to estimate various instruments, both Islamic and conventional ones. The models are the VAR (Vector Autoregression) and the VARMA-GARCH (Vector Autoregressive Moving Average-Generalized Autoregressive Heteroskedasticity). From the VAR model it finds evidence of bidirectional influences across both instruments. It also finds a conventional stock index that dominates the other series, namely the DJI (Dow Jones Index). From the VARMA-GARCH model, it finds influences from the conventional to Islamic index and vice versa, both in conditional mean and conditional variances. This paper suggests that the behavior of Islamic instruments are inseparable from the conventional ones. Future research might consider conditional correlations across these variables. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1862394 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862394 Template-Type: ReDIF-Article 1.0 Author-Name: Isaac Doku Author-X-Name-First: Isaac Author-X-Name-Last: Doku Author-Name: Ronney Ncwadi Author-X-Name-First: Ronney Author-X-Name-Last: Ncwadi Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Determinants of climate finance: Analysis of recipient characteristics in Sub-Sahara Africa Abstract: What are the characteristics of recipient countries that attract more climate finance in mitigating and adapting to climate change? In this study, we address this question by looking at recipients in 43 Sub-Sahara African countries for the period 2006–2017, and implement several panel regression techniques, including system generalized methods of moments estimations to address potential endogeneity concerns. We also performed sensitivity analysis using panel quantile regressions. The findings show that Sub-Sahara African countries with higher population growth rate, higher poverty levels, better ease of doing business profile, weaker governance policies, weaker control of corruption, stronger rule of law enforcement, deepened social inequality, and better ICT usage, have attracted more climate finance. Policy implications of the study are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1964212 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1964212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1964212 Template-Type: ReDIF-Article 1.0 Author-Name: Diem Pham Thi Thuy Author-X-Name-First: Diem Pham Author-X-Name-Last: Thi Thuy Author-Name: Hoai Nguyen Trong Author-X-Name-First: Hoai Author-X-Name-Last: Nguyen Trong Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Impacts of openness on financial development in developing countries: Using a Bayesian model averaging approach Abstract: This study investigates the influences of trade and financial openness on financial development over the period 2003–2017 from a sample of 64 developing countries, employing a Bayesian model averaging approach to take into account model uncertainty. The results demonstrate that the contribution of trade openness to financial development is important in developing economies with better institutions. However, financial openness has an insignificant positive effect on financial development. There is no evidence to support the Rajan and Zingales hypothesis that the simultaneous openness to both trade and capital flows promotes financial development. Our findings also indicate that a better institutions environment allows a developing economy to exploit the benefits of openness to financial development. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1937848 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1937848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1937848 Template-Type: ReDIF-Article 1.0 Author-Name: Tenkir Seifu Legesse Author-X-Name-First: Tenkir Seifu Author-X-Name-Last: Legesse Author-Name: Jiqiang Tang Author-X-Name-First: Jiqiang Author-X-Name-Last: Tang Author-Name: Zhen Wu Author-X-Name-First: Zhen Author-X-Name-Last: Wu Author-Name: Haifeng Guo Author-X-Name-First: Haifeng Author-X-Name-Last: Guo Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Debt financing, corporate investment and the productivity of capital invested: Evidence from biggest manufacturing countries Abstract: This study examines the impact of debt financing on the productivity of capital invested and the mediating role of corporate investment using data from manufacturing firms in China, Japan and the United States. We find that firms that use more debt capital are less likely to make overinvestment. It is found that overinvestment is more likely in firms that have high cash flow but low level of financial leverage. Our study also shows that companies with high debt and low cash flow have more probability of underinvestment. This is consistent with the view that financially constrained firms are more exposed to underinvestment problem. Furthermore, we documented that the use of debt financing has a positive impact on the productivity of the capital invested and that this effect is partly mediated by the investment of the manufacturing firms. This paper shades light into the present understanding of how companies use debt financing decisions to boost their investment efficiencies. The study has important management implications for corporate financial decisions as it identifies the links among corporate debt financing, investment and capital productivity. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1936369 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1936369 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1936369 Template-Type: ReDIF-Article 1.0 Author-Name: Josephat Lotto Author-X-Name-First: Josephat Author-X-Name-Last: Lotto Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Does earnings distribution policy influence corporate stock price instability? Empirical evidence from Tanzanian listed industrial firms Abstract: This paper primarily aims at examining the impact of dividend policy on stock price volatility of industrial firms listed in the Dar es Salaam Stock Exchange employing data collected from audited published financial statements for the period 2009–2019. The paper utilized a panel data regression estimation method, and the results show that both measures of dividend policy—dividend yield and dividend payout ratios—have negative significant relationship with stock price volatility. This may indicate that the increase in firm’s dividend yield and dividend payout lowers the stock price volatility, which in return, improves corporate stock price stability. The results, therefore, provide important implications for risk management practices, financial securities valuation and government policy towards stock market development. Also, since both management and investors are concerned about the volatility of stock price, the findings of this paper shed light on the path way to discovering what moves stock price and important factors to be considered by investors before making investment decisions, and managements by establishing their ability to utilize dividend policy as a mechanism of controlling the stock price volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1953737 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953737 Template-Type: ReDIF-Article 1.0 Author-Name: Chei Bukari Author-X-Name-First: Chei Author-X-Name-Last: Bukari Author-Name: Gloria Essilfie Author-X-Name-First: Gloria Author-X-Name-Last: Essilfie Author-Name: Millicent Abigail Aning-Agyei Author-X-Name-First: Millicent Abigail Author-X-Name-Last: Aning-Agyei Author-Name: Isaac Christopher Otoo Author-X-Name-First: Isaac Christopher Author-X-Name-Last: Otoo Author-Name: Christian Kyeremeh Author-X-Name-First: Christian Author-X-Name-Last: Kyeremeh Author-Name: Anthony Akwesi Owusu Author-X-Name-First: Anthony Akwesi Author-X-Name-Last: Owusu Author-Name: Kofi Fosu Amuquandoh Author-X-Name-First: Kofi Fosu Author-X-Name-Last: Amuquandoh Author-Name: Kpanja Ibrahim Bukari Author-X-Name-First: Kpanja Ibrahim Author-X-Name-Last: Bukari Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Impact of COVID-19 on poverty and living standards in Ghana: A micro-perspective Abstract: The novel Coronavirus disease 2019 (COVID-19), which has become a global epidemic, hit Ghana on 12 March 2020 and, in less than a week, increased by over 300% with two deaths. As of 11 August 2020, Ghana had recorded over 41,000 cases with over 215 deaths. This study seeks to provide a micro-level evidence on how COVID-19 is posing a threat to some of the Sustainable Development Goals, particularly poverty in Ghana. Specifically, the study examined the effect of COVID-19 on poverty and living standards of Ghanaian households. The study further analysed which class of persons within the income distributions has been mostly hit by the pandemic. Data on 3,905 households were obtained via concurrent online survey and telephone interviews. Multiple analytical approaches were employed―Ordinary least squares, probit model and simultaneous quantile regressions. Results showed that COVID-19 had significantly increased the poverty levels of households while deteriorating living standards. The study also discovered that gender and locational heterogeneities exist regarding the impact of COVID-19 with females and rural dwellers mostly disadvantaged. However, simultaneous quantile regression result shows that in terms of overall household consumption, those in the middle and upper classes are profoundly affected compared to those in the lowest class. A key policy implication from this study is that Ghana needs to broaden its social protection programmes to assist both the new poor and existing poor. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1879716 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1879716 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1879716 Template-Type: ReDIF-Article 1.0 Author-Name: Tochukwu Timothy Okoli Author-X-Name-First: Tochukwu Timothy Author-X-Name-Last: Okoli Author-Name: Devi Datt. Tewari Author-X-Name-First: Devi Datt. Author-X-Name-Last: Tewari Author-Name: Kehinde Damilola Ileasanmi Author-X-Name-First: Kehinde Damilola Author-X-Name-Last: Ileasanmi Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Investigating a threshold effect in Twin Deficit Hypothesis: Evidence from the BRICS Economies Abstract: Over the years, empirical evidence on twin-deficit hypothesis has been inconsistent. While some support it, others affirm the prevalence of the Ricardian Equivalence. This study therefore examines a nonlinear/threshold relationship between the deficits among the BRICS economies using the Panel ARDL (1, 1) model with a quarterly data spanning from 2000q1 to 2019q4. The efficient estimator of PMG based on the Hausman test shows that twin divergence holds among the BRICS market up to a certain threshold beyond which the hypothesis holds. This suggests that BRICS countries face a dampening effect of fiscal/current deficits on their current account/fiscal deficits to a point after which further increases in either of the deficits will significantly raise the other. The static fixed effect technique and second-order U-shaped test reveal a consistent result. The speed of adjustment to long-run steady state for the current account deficits and the fiscal deficits models are 27.4 and 52.5 per cents respectively, at 5 per cent significance level. However, higher growth shocks and interest rate lead to divergence of the deficits while exchange rate and trade openness dampen it. Fiscal deepening and management within a bound were recommended as the panacea for twin-deficit problems. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1886451 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1886451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1886451 Template-Type: ReDIF-Article 1.0 Author-Name: Anupam Das Gupta Author-X-Name-First: Anupam Author-X-Name-Last: Das Gupta Author-Name: Niluthpaul Sarker Author-X-Name-First: Niluthpaul Author-X-Name-Last: Sarker Author-Name: Mohammad Rifat Rahman Author-X-Name-First: Mohammad Author-X-Name-Last: Rifat Rahman Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks Abstract: The global financial crisis and stiff market competition enhance risk exposures that raise debate on the cost of financial intermediation and the supremacy of banks’ efficiency. This study examines the concurrent effects of bank risk, efficiency and cost of financial intermediation of Bangladeshi commercial banks. The Two-Step System GMM (2GMM) estimators of unbalanced dynamic panel data of 32 commercial banks from 2000 to 2016 addresses key factors rigorously in the light of bank-level, industry-level, and macroeconomic-level phenomenon. Efficiency gains cost the spread of banks’ financial intermediation, and risk-taking negatively affects the return. Cost-efficient banks are taking more credit risk; however, more efficiency gains reduce banks’ risk substantially. Size (cost of intermediation) of banks positively (inversely) affect the risk-taking (efficiency) behaviour of banks. Market competition enhances the risk and efficiency and reduces banks’ interest spread. Finally, the Nonlinear effect of size and market competition is heterogeneous on risk, efficiency, and financial intermediation cost that follows a U-shape curve. This study explicitly addresses two issues: simultaneous effect of financial intermediation, bank risk, and efficiency and validated the nonlinear relationship considering size and market competition effect. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1967575 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1967575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1967575 Template-Type: ReDIF-Article 1.0 Author-Name: Nizar Dwaikat Author-X-Name-First: Nizar Author-X-Name-Last: Dwaikat Author-Name: Ihab Sameer Qubbaj Author-X-Name-First: Ihab Sameer Author-X-Name-Last: Qubbaj Author-Name: Abdelbaset Queiri Author-X-Name-First: Abdelbaset Author-X-Name-Last: Queiri Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Gender diversity on the board of directors and its impact on the Palestinian financial performance of the firm Abstract: This study aims to examine the impact of gender diversity in the Board of Directors (BOD) on the firm performance—return of assets (ROA) and return of equity (ROE)—using a sample of Palestinian non-financial companies for the period 2008–2015. Gender diversity was measured as a percentage of women in the BOD, and dummy variable for the existence of at least one woman in the BOD. The study employed method of two-stage least squares (2SLS) to address endogeneity issues in the relationship between gender diversity and company performance. The findings show that women still exist modestly in the BOD, women exist more in the BOD of industrial firms than in the BOD of service firms. Furthermore, firms with at least one woman in the BOD have a large debt ratio, independence of BOD, better ROA performance, less size, and no difference in BOD size. The results of 2sls show that gender diversity has a positive and statistically significant impact on firm performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1948659 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1948659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1948659 Template-Type: ReDIF-Article 1.0 Author-Name: Awadh Saeed Bin-Dohry Author-X-Name-First: Awadh Saeed Author-X-Name-Last: Bin-Dohry Author-Name: Hanita Kadir Shahar Author-X-Name-First: Hanita Kadir Author-X-Name-Last: Shahar Author-Name: Sharmilawati Sabki Author-X-Name-First: Sharmilawati Author-X-Name-Last: Sabki Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The determinants of dual listing decision of firms from ASEAN-5 Abstract: This study aims to examine the determinants that encouraged firms to have a dual listing. Practically, there is a noticeable lack of empirical evidence, as well as the situation of the ASEAN markets integration which is going against the theoretical debate raises the need for more empirical studies. As a result, the Generalized Method of Moments (GMM) model was applied to assess the strength determinants that driving the listing abroad decision. The empirical findings indicate that firms from countries with higher trade openness and those suffering from higher illiquidity and ownership concentration are more likely to pursue an additional listing. Likewise, the result also shows that firms originated from countries with lower Foreign Direct Investment (FDI) and reputation tend to seek a dual listing. The result shows that firms that are characterized by higher ROA and those from countries with higher GDP are more encouraged to pursue an additional listing. Meanwhile, firms from countries that are characterized with lower market capitalization are more encouraged to have a dual listing. The insignificant results reported for stock volatility and geographic proximity can be interpreted as a result of the improvement in trading technology. In conclusion, the study contributes to the existing body of knowledge by providing empirical evidence about the power of these motivations which encourage firms to have a dual listing. Equally, the results offer evidence for stakeholders, such as investors, and authorities to attain a better understanding of these determinants. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1917105 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917105 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917105 Template-Type: ReDIF-Article 1.0 Author-Name: Nadia Klarita Rahayu Author-X-Name-First: Nadia Klarita Author-X-Name-Last: Rahayu Author-Name: Iman Harymawan Author-X-Name-First: Iman Author-X-Name-Last: Harymawan Author-Name: Wulandari Fitri Ekasari Author-X-Name-First: Wulandari Fitri Author-X-Name-Last: Ekasari Author-Name: John Nowland Author-X-Name-First: John Author-X-Name-Last: Nowland Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Risk management committee, independent commissioner, and audit fee: An update Abstract: We investigate whether the risk management committee and independent commissioner contribute to the audit fee. We use 720 observations from Indonesian listed companies for 2015–2018. We use ordinary least square analysis to address our hypotheses. The result shows that the proportion of independent commissioners weakens the relationship between RMC and audit fees. Our study proved that the existence of a risk management committee would lead to a higher demand for audit coverage. As a result, the audit fee increased. RMC may demand high-quality external assurance, but it may be ignored because the independent commissioner has more authority than RMC. In addition, we also used coarsened exact matching with a consistent result as the OLS. These findings provide evidence for policymakers on the relationship between audit fees and risk management committees. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1892926 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892926 Template-Type: ReDIF-Article 1.0 Author-Name: Faisal Faisal Author-X-Name-First: Faisal Author-X-Name-Last: Faisal Author-Name: Zainal Abidin Author-X-Name-First: Zainal Author-X-Name-Last: Abidin Author-Name: Haryanto Haryanto Author-X-Name-First: Haryanto Author-X-Name-Last: Haryanto Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Enterprise risk management (ERM) and firm value: The mediating role of investment decisions Abstract: The purpose of this study is to examine the mediating effect of investment decisions on the relationship between Enterprise Risk Management (ERM) and firm value. Two hundred and twenty-four companies listed on the Indonesia Stock Exchange for period 2017–2018 were selected as sample by applying Slovin’s formula. We used path analysis and Sobel test to check the mediating effect of investment decisions. Our results show that the implementation of ERM in Indonesia public listed companies is still in the initial stage. In addition, the regression tests show that ERM and investment decisions have a positive effect on firm value. The path analysis and Sobel’s test results show that investment decisions act as partial mediation on the relationship between ERM and firm value. The study suggests that ERM contributes in improving the effectiveness of investment decisions and firm performance. Therefore, the significant role of stakeholders in increasing the maturity level of ERM is very essential, especially in Indonesia, where the level of risk maturity is still at the initial level. Studies that test the influence of risk management maturity on firm value are still rare, especially in developing country. While, Farrell and Gallagher (2019) have tested the relationship between ERM maturity and firm value, nevertheless they have not considered the role of investment decision in the intermediating the relationship between ERM maturity and firm value. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2009090 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2009090 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: The long- and short-run relationship between the shadow economy and trade openness in Uganda Abstract: This paper examines the relationship between the shadow economy and trade openness in Uganda, using autoregressive distributed lag bounds testing approach. We find that the shadow economy and trade openness have a long- and short-run relationship. These results hold even when alternative econometric methods are used. The empirical evidence indicates that more exposure to foreign trade significantly reduces the size of the shadow economy. This could imply that as countries become more integrated into the world economy, firms and individual entrepreneurs are induced to engage in the formal sector so as to reap the benefits of international markets. This paper shows that trade openness is an important determinant of the shadow economy in both the short- and long-run. At the policy level, any policy framework that strengthens integration into the global economy will be an effective tool that can reduce shadow activities in both the short- and long-run. The practical implication of these results is that countries that have fully reformed their economies to allow for free trade and investment inflows experience a decline in shadow activities implying that, in more open economies, more trade reduces informality. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1930886 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930886 Template-Type: ReDIF-Article 1.0 Author-Name: Mac Junior Abeka Author-X-Name-First: Mac Junior Author-X-Name-Last: Abeka Author-Name: Eric Andoh Author-X-Name-First: Eric Author-X-Name-Last: Andoh Author-Name: John Gartchie Gatsi Author-X-Name-First: John Gartchie Author-X-Name-Last: Gatsi Author-Name: Seyram Kawor Author-X-Name-First: Seyram Author-X-Name-Last: Kawor Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Financial development and economic growth nexus in SSA economies: The moderating role of telecommunication development Abstract: The economic growth of most sub-Saharan African countries in the past years has not been able to equalize with other regions. Even though financial development has been highlighted in several empirical literature as a factor that could spur up economic growth, the level of financial development in sub-Saharan Africa is not effectively channeled into desired levels of economic growth. However, there is an indication in the literature that financial development will be more relevant to the economic growth of sub-Saharan African economies that have strong telecommunication infrastructure. Using the system General Method of Moment estimation technique, the paper found that telecommunication infrastructure enhances the effect of financial development on the economic growth of sub-Saharan African economies. It is therefore recommended that sub-Saharan African economies should apply appropriate measures to boost their telecommunication infrastructure so that gains from the financial sector can effectively be channeled into economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1862395 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862395 Template-Type: ReDIF-Article 1.0 Author-Name: Chaiyuth Padungsaksawasdi Author-X-Name-First: Chaiyuth Author-X-Name-Last: Padungsaksawasdi Author-Name: Sirimon Treepongkaruna Author-X-Name-First: Sirimon Author-X-Name-Last: Treepongkaruna Author-Name: Zhaojun Yang Author-X-Name-First: Zhaojun Author-X-Name-Last: Yang Title: Chasing for information during the COVID-19 panic: The role of Google search on global stock market Abstract: This paper examines the causal relationship between global stock market performance and Google search volume index (SVI) surrounding the disastrous event of the coronavirus (COVID-19) outbreak. Based on 6,106 stock index-day observations of 71 countries during the period from 1 January 2020 to 29 May 2020, we find that both the SVI and the growth in confirmed cases lower the global stock market returns. Consistent with the information discovery theory, we find when the confirmed cases increase, retail investors search for more information, improving their returns on stock indices during the outbreak. Finally, our further instrumental-variable analysis shows that our results are unlikely confounded by endogeneity. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1930669 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930669 Template-Type: ReDIF-Article 1.0 Author-Name: Sarpong Mohammed Author-X-Name-First: Sarpong Author-X-Name-Last: Mohammed Author-Name: Abubakari Mohammed Author-X-Name-First: Abubakari Author-X-Name-Last: Mohammed Author-Name: Edward Nketiah-Amponsah Author-X-Name-First: Edward Author-X-Name-Last: Nketiah-Amponsah Author-Name: Aviral Tiwari Author-X-Name-First: Aviral Author-X-Name-Last: Tiwari Title: Relationship between Exchange Rate Volatility and Interest Rates Evidence from Ghana Abstract: This paper examines the effect of interest rates on exchange rate volatilities in Ghana. It utilizes the Quarterly Time Series dataset spanning 2000 Quarter 1 to 2017 Quarter 2 and the Autoregressive Distributed Lag model as well as the Vector Error Correction Model to investigate the long-run and short-run relationships between the variables. The results showed that in the long-run model, exchange rate volatility was seen to be influenced by money supply, inflation, Central Bank’s policy rate, and the Ghana Stock Exchange composite index. However, in the short-run model, exchange rate volatility was found to be significantly influenced by its past values and the Central Bank’s policy rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1893258 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1893258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1893258 Template-Type: ReDIF-Article 1.0 Author-Name: Ryno du Plooy Author-X-Name-First: Ryno Author-X-Name-Last: du Plooy Author-Name: Pierre J. Venter Author-X-Name-First: Pierre J. Author-X-Name-Last: Venter Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Pricing vanilla options using artificial neural networks: Application to the South African market Abstract: In this paper, a feed-forward artificial neural network (ANN) is used to price Johannesburg Stock Exchange (JSE) Top 40 European call options using a constructed implied volatility surface. The prices generated by the ANN were compared to the prices obtained using the Black-Scholes (BS) model. It was found that the pricing performance of the ANN significantly improves when the number of training samples are increased and that ANNs are able to price European call options in the South African market with a high degree of accuracy. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1914285 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1914285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1914285 Template-Type: ReDIF-Article 1.0 Author-Name: Nassar S. Al-Nassar Author-X-Name-First: Nassar S. Author-X-Name-Last: Al-Nassar Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: On the informational efficiency of Saudi exchange-traded funds listed at home and away from home Abstract: This study compares the pricing efficiency of two domestic exchange-traded funds (ETFs) (i.e., Falcom 30 and HSBC 20) listed on the Saudi stock exchange (i.e., Tadawul), as well as an international ETF (i.e., iShares MSCI Saudi Arabia) listed on the NYSE, by examining the extent and properties of the deviations of their prices from their net asset values (NAVs), and whether these deviations persist and vary over time. The results show that the deviations of the market prices of all of the ETFs are significantly large and persist for at least three days. It is shown that the standard deviation of the premiums/discounts based on the dyna model are large, particularly for the domestic funds. The premiums/discounts appear to be exacerbated during the periods of market turbulence. The results from cointegration analysis support the existence of a long-run relationship between the prices and the NAVs of the three ETFs. However, the ETFs’ prices do not fully reflect the fundamental information contained in the underlying basket of the stocks in either the long run or the short run. Furthermore, the adjustment toward the long-run relationship seems to be quite slow, albeit apparently faster in the case of iShares MSCI Saudi Arabia. The restrictions on short selling, the concentration of authorized market participants, the increased cost for the creation and redemption of the ETF shares, and the lack of an active secondary market for the ETF shares can create major limits to arbitrage, thereby impeding efficiency in the market. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1902654 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902654 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Does corruption contribute to the rise of the shadow economy? Empirical evidence from Uganda Abstract: This paper investigates whether corruption has contributed to the rise of the shadow economy in Uganda. Using autoregressive distributed lag bounds testing approach and granger causality econometric methods we find a positive relationship between corruption and the size of the shadow economy in both the long- and short-run. Additionally, the causality results reveal a bidirectional causal relationship between the shadow economy and corruption, and vice versa. These findings suggest that, for the case of Uganda, an increase in corruption contributes to the rise in the size of the shadow economy and vice versa, all else equal. Given the complementary relationship between corruption and the size of the shadow economy, addressing widespread informality in the country would require; first, reforming the political system to tackle political corruption and go after politicians who use their influence and power to circumvent institutions. Second, carrying out institutional reforms to address political patronage and influence peddling would go a long way into addressing systemic corruption which in turn could help mitigate the spread of informal sector activities. Third, strengthening the enforcement of existing laws to identify and punish culpable public officials who use their offices for private gain would also address the level of informality in the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1932246 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932246 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932246 Template-Type: ReDIF-Article 1.0 Author-Name: Mehdi Rad Author-X-Name-First: Mehdi Author-X-Name-Last: Rad Author-Name: Ali Amiri Author-X-Name-First: Ali Author-X-Name-Last: Amiri Author-Name: Mohammad Hussein Ranjbar Author-X-Name-First: Mohammad Hussein Author-X-Name-Last: Ranjbar Author-Name: Hojatollah Salari Author-X-Name-First: Hojatollah Author-X-Name-Last: Salari Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Predictability of financial statements fraud-risk using Benford’s Law Abstract: The main objective of this research is to investigate the Predictability of Financial Statements Fraud-Risk Using Benford’s Law on the Tehran Stock Exchange. Therefore, based on financial fraud detection criteria, a sample of 50 companies was extracted that 25 companies had fraud-risk in financial statements (experimental group) and 25 did not have fraud-risk (control group). Next, the frequency distribution of the first left digit of the numbers in the financial statements as well as the financial ratios of both groups was extracted, and their conformity with Benford’s distribution was evaluated through the chi-square test to test the research hypotheses. The comparison between the mentioned frequency distribution and Benford’s distribution showed a significant difference. The result indicates that Benford’s law cannot predict the financial statements fraud-risk of companies, in other words, Benford’s law cannot separate companies with fraud-risk from those without fraud-risk in financial statements. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1889756 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1889756 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1889756 Template-Type: ReDIF-Article 1.0 Author-Name: Bang Nguyen-Viet Author-X-Name-First: Bang Author-X-Name-Last: Nguyen-Viet Author-Name: Khanh Ngoc Huynh Author-X-Name-First: Khanh Author-X-Name-Last: Ngoc Huynh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Empirical analysis of internet banking adoption in Vietnam Abstract: This study defines and measures the key factors driving consumers’ adoption of internet banking in Vietnam, and comprises both qualitative and quantitative research. Qualitative research was carried out through focus group discussions with 12 consumers, while quantitative research was conducted through interviews with 475 bank customers in Vietnam. The results indicate the following: (i) the adoption of internet banking in Vietnam is directly affected by perceived usefulness, attitude, perceived risk, innate innovativeness, domain-specific innovativeness, and internet experience; (ii) perceived risk is directly affected by innate and domain-specific innovativeness; (iii) perceived ease of use is directly affected by innate and domain-specific innovativeness; (iv) consumers’ attitudes are directly affected by perceived usefulness and perceived ease of use; and (v) perceived usefulness is directly affected by perceived ease of use. However, this study had certain limitations. First, owing to limited resources in conducting the research, the sample size consisted of only 475 consumers. Second, this study employed the sampling technique of direct and email interview methods. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1992876 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1992876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1992876 Template-Type: ReDIF-Article 1.0 Author-Name: Muyanja Ssenyonga Author-X-Name-First: Muyanja Author-X-Name-Last: Ssenyonga Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Imperatives for post COVID-19 recovery of Indonesia’s education, labor, and SME sectors Abstract: The article assesses the impact of COVID-19 pandemic on the Indonesian economy and the influence that repercussions from the pandemic have had on the country’s long-term development goals and objectives. The article used backcasting approach to link expected development objectives and targets with current state of social and economic conditions. Results demonstrated a gap between long-term and current economic performance, attributable largely to the impact of COVID-19 pandemic on the economy and society. A drastic decline in aggregate demand due to contraction in household and corporate expenditure, investment, and exports sparked a surge in open unemployment and underemployment. While swift and wide-ranging government response helped to attenuate the impact of the crisis on the economy and vulnerable sections of society, COVID-19 pandemic impact compounded existing fundamental problems facing the Indonesian economy including de-industrialization, wide urban–rural, East–West, inter-regional digital divide; unemployment and underemployment; weak human resource development; low participation in global value chains; and low education effectiveness. Policy recommendations to nudge the economy and society back to its long-term development trajectory include initiatives to enhance emergency response program effectiveness and tackling structural problems. The initiatives include strengthening and widening the coverage of government programs that support business and society in education, labor and employment, and SME and trade. The thrust of the pathways stresses the need for accelerating the implementation of the national information highway and the ASEAN connectivity initiative. Achieving will support efforts to mainstream the adoption and deployment of digitalization in the economy, government, and transboundary trade. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1911439 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911439 Template-Type: ReDIF-Article 1.0 Author-Name: Mekonnen Yitayaw Author-X-Name-First: Mekonnen Author-X-Name-Last: Yitayaw Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Firm-specific, industry-specific and macroeconomic determinants of commercial banks’ lending in Ethiopia: Panel data approach Abstract: Lending is the primary role in commercial banks’ daily banking activities and is described as the heart of a commercial banks’ banking business. On the other hand, it is also one of the greatest sources of risk to the safety and soundness of financial institutions. There is little empirical evidence on bank lending behavior in emerging markets like Ethiopia. However, the existing studies have a difference in the identification of which factors have a strong impact and on the direction of those impacts if any on Ethiopian commercial banks’ lending. Thus, this study investigated the bank-specific, industry-specific and macroeconomic determinants of commercial banks’ lending in Ethiopia using balanced panel data of 15 commercial banks from 2011 to 2019. To realize the stated objective quantitative approach and explanatory design were employed using secondary data sources from the audited financial statement of sampled commercial banks. The model result of the study indicated that bank-specific factors such as; volumes of deposit, capital adequacy, and bank size have a positive and statistically significant effect on bank lending. Industry-specific factors such as; cash reserve requirement, bank concentration, and average lending rate have a negative and statistically significant effect on bank lending. Likewise, one of the macro-economic variables gross domestic products has a negative and statistically significant effect on bank lending. The study suggested that commercial banks in Ethiopia have to manage their lending by giving more attention to the internal factors, which the management has control over in line with the banking industry rules and regulations recalling the influence of the general economic dynamic. I believe that this study is of interest to bankers, analysts, regulators, policymakers, and investors since it provides useful insight on the determinants of commercial banks’ lending and an understanding of how bank intermediation roles may respond to internal as well as external rules, regulations, and general economic dynamics, and it will contribute to the scarce empirical evidence. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1952718 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1952718 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1952718 Template-Type: ReDIF-Article 1.0 Author-Name: Aditya Aji Prabhawa Author-X-Name-First: Aditya Aji Author-X-Name-Last: Prabhawa Author-Name: Mohammad Nasih Author-X-Name-First: Mohammad Author-X-Name-Last: Nasih Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Intangible assets, risk management committee, and audit fee Abstract: This study analyzes whether the company’s intangible assets will affect the audit fee paid to the auditor and risk management committee as a moderating variable. The sample of this study consisted of 656 observations from companies listed on the Indonesia Stock Exchange (BEI) for 2010–2018 from all industry sectors except the financial industry, using the method of multiple linear regression analysis, aims to determine whether intangible assets affect audit fees and whether the risk management committee strengthens or weakens the relationship between the two variables. The research method used in this study is quantitative. This study indicates that the amount of intangible assets in the company will positively impact audit fees. The risk management committee has the responsibility to shareholders to ensure that their financial statements are free from errors or fraud and also strengthen the relationship between the two variables. These findings provide evidence for policymakers on the relationship between Intangible assets, risk management committees, and audit fees Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1956140 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956140 Template-Type: ReDIF-Article 1.0 Author-Name: Adisu Abebaw Author-X-Name-First: Adisu Author-X-Name-Last: Abebaw Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Output gap determinants in Ethiopia Abstract: The output gap measured as the percentage deviation of actual output from its potential level is an indicator of an economy’s achievement. Output gap has been an important concept used for forming of policies. In this study, we estimated the potential output and output gap, established some of its macro-economic determinants for the Ethiopian economy. By using yearly data spanning from 1990 to 2018, the study estimated the potential output and output gap using HP filtering, and production function approaches. Accordingly, both approaches indicated that the output gap has been fluctuating over the study period—indicating the actual output inconsistently and frequently deviating from its potential level. Mainly, in 1996 and 2003, the actual output showed the highest positive and negative deviations from its potential, respectively. The study also examined the effect of some macro-economic indicators on the output gap using the ARDL framework. Accordingly, inflation, trade openness, lending rate, and FDI are found to be having a significant effect on the output gap. Lending rate and trade openness have positive and significant effect, whereas inflation and FDI have a negative significant effect on the output gap. This study suggests; augmenting domestic production and utilization capacity, avoiding unrestricted importation and, export diversification, lowering lending rate and increasing FDI inflow; helps to reduce output gap. Besides, understanding the trend of potential and output gap would be helpful in dealing with inflation. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1887550 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1887550 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1887550 Template-Type: ReDIF-Article 1.0 Author-Name: Japan Huynh Author-X-Name-First: Japan Author-X-Name-Last: Huynh Author-Name: Van Dan Dang Author-X-Name-First: Van Dan Author-X-Name-Last: Dang Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Loan portfolio diversification and bank returns: Do business models and market power matter? Abstract: The paper examines how loan portfolio diversification drives bank returns, mainly focusing on the conditioning roles of business models and market power in this nexus. We employ a sample of Vietnamese commercial banks from 2008 to 2019 to perform regressions in the dynamic panel models with the two-step system generalized method of moments (GMM) estimator. We find that increased sectoral loan portfolio diversification reduces bank returns, but not all banks are equally affected. Banks that adopted a business model towards non-interest activities are hurt less from loan portfolio diversification, and bank market power may mitigate the detrimental effects of loan portfolio diversification on bank returns. When such asymmetric effects are sizeable, neglecting them could miscalculate the choice of loan portfolio diversification. Our findings are robust to a rich set of bank return indicators and alternative loan portfolio diversification measures based on the Herfindahl-Hirschman (HHI)/Shannon Entropy (SE) indexes with different sectoral exposure profiles. Thus, both regulators and commercial banks should take the disadvantage of portfolio diversification into account when encouraging/pursuing a diversified strategy, which must be accompanied by the crucial caveat that the damage is most pronounced for banks with lower shares of non-interest income and less market power. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1891709 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1891709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1891709 Template-Type: ReDIF-Article 1.0 Author-Name: Zemenu Amare Ayalew Author-X-Name-First: Zemenu Amare Author-X-Name-Last: Ayalew Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Capital structure and profitability: Panel data evidence of private banks in Ethiopia Abstract: The paper primarily studied the empirical relationship between capital structure, as measured by total and short-term debt ratios, and profitability of private banks in Ethiopia, for the period 2013/14 to 2018/19, using panel fixed effects. A survey of 16 private banks are included in the study. Based on the regression analysis results, capital structure variables and some bank-specific characteristics explain a substantial part of the variations in bank profitability. Higher profitability measures of ROA and net interest margin tend to be associated with relatively higher total and short-term debt ratios, loan to deposit ratios, and credit risks. Besides, older banks are in a better position than younger counterparts in terms of profitability. The impact of size is found to be significantly negative, at least for the ROA model, implying that Ethiopian private banks are operating below their optimal capacity. Mixed results were found pertaining the coefficient estimates of cos–income ratio and employee productivity. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1953736 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953736 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953736 Template-Type: ReDIF-Article 1.0 Author-Name: Urvashi Varma Author-X-Name-First: Urvashi Author-X-Name-Last: Varma Author-Name: Raveesh K Author-X-Name-First: Raveesh Author-X-Name-Last: K Author-Name: Alka Munjal Author-X-Name-First: Alka Author-X-Name-Last: Munjal Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of payout choice between open market repurchase, tender offer repurchase and special dividends Abstract: The paper aims to identify the variables contributing to special payouts considering open market repurchase, tender offer repurchases, and special dividends. A multinomial logit model has been used to investigate the choice of payout out of 754 payout announcements made between 2004 and 2017 in India. The study investigates agency cost, shareholder heterogeneity, clientele effect, distribution size, misvaluation, and takeover threat. The MNL results suggest that open market repurchase is chosen when the takeover threat is high, firms are significant, or in case of undervaluation of firms. Tender offer repurchase is preferred in high agency cost, high takeover threat, low shareholder heterogeneity, and undervaluation. The study further investigates the nature of ownership in terms of a business group affiliated and standalone firms. The result of the study suggests the nature of ownership impacts the choice of dividend payout choice. Group affiliated firms are driven by clientele effect and distribution size, and in standalone firms’ agency and shareholder heterogeneity holds. The Bayesian approach which is based on the combination of previous information and the current data available is used in the study for MNL. The findings suggest that payout choices of open market repurchase and tender offer repurchase over special dividends are based on misvaluation and shareholder heterogeneity. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1934975 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934975 Template-Type: ReDIF-Article 1.0 Author-Name: Xiuli Ma Author-X-Name-First: Xiuli Author-X-Name-Last: Ma Author-Name: Xindong Zhang Author-X-Name-First: Xindong Author-X-Name-Last: Zhang Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The predictive performance of liquidity risk Abstract: This paper assesses the explanatory power of the liquidity-risk-based pricing models relative to the Fama–French three-factor model (FF3) and the extensions to the FF3. We find that the liquidity-augmented capital asset pricing model (LCAPM) performs no worse but generally better than other models considered in describing liquidity risk and a variety of anomaly portfolios. Our finding remains intact relative to the troublesome portfolios related to small, value, and aggressive investment.. This study highlights that liquidity risk is not negligible, which is in contrast to some recent findings that the price-impact-based liquidity risk factor contributes little to explain average returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1966194 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966194 Template-Type: ReDIF-Article 1.0 Author-Name: Asif Khan Author-X-Name-First: Asif Author-X-Name-Last: Khan Author-Name: Alam Ahmad Author-X-Name-First: Alam Author-X-Name-Last: Ahmad Author-Name: Saba Shireen Author-X-Name-First: Saba Author-X-Name-Last: Shireen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Ownership and performance of microfinance institutions: Empirical evidences from India Abstract: The study examines the efficiency differences across the ownership structure of Indian microfinance institutions (MFIs) operating during the year 2005/06 to 2017/18 in response to regulatory reforms initiated by the Reserve Bank of India (RBI) in the year 2011. We remove the outliers from the dataset first. Thereafter, we employ the bootstrap data envelopment analysis (DEA) to assess the bias-corrected efficiency scores. To identify the performance determinants, we use bootstrap truncated regression. The empirical results suggest that the performance difference between NBFCs and Non-NBFC MFIs is not statistically significant in the sample period. Further, the study finds that the size and ownership structure of MFI has a positive and statistically significant impact on the efficiency level. Although the coefficient of PAR30 (Portfolio at risk, 30 days) is statistically insignificant, however, the results conclude that the deteriorating credit quality has hindered the efficiency level. The Indian MFI industry needs to focus on the adoption of more innovative technology and partnership with FinTech (financial technology) firms to reduce the transaction costs and service time. The RBI essentially endorses the regulatory-sandbox practices to offer micro-financial services to the poor. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1930653 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930653 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Yousaf Author-X-Name-First: Muhammad Author-X-Name-Last: Yousaf Author-Name: Petr Bris Author-X-Name-First: Petr Author-X-Name-Last: Bris Author-Name: Ismat Haider Author-X-Name-First: Ismat Author-X-Name-Last: Haider Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Working capital management and firm’s profitability: Evidence from Czech certified firms from the EFQM excellence model Abstract: Working capital management (WCM) is one of the most important decisions for all firms. The main components of WCM are days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). Using a sample of 332 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Model, the current study explored the effects of the main components of WCM on firms’ profitability. We used two different regression models to test the hypothesis, i.e. pooled regression and maximum likelihood estimation (MLE). The findings of the research revealed all the components of WCM have a negative impact on firm profitability. On the other hand, the interaction terms of the EFQM certified firms with the components of WCM showed a positive impact on firms’ profitability which means that there is a positive relationship between the components of WCM of the certified firms and profitability. However, it is examined that the quality certificate/award from EFQM Excellence Model decreases the firm’s profitability. The outcomes of the current research will be beneficial to academics, managers, leaders, and directors of the firms to improve their firm’s profitability. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1954318 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954318 Template-Type: ReDIF-Article 1.0 Author-Name: Wan Wei Author-X-Name-First: Wan Author-X-Name-Last: Wei Author-Name: Susan Pozo Author-X-Name-First: Susan Author-X-Name-Last: Pozo Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: The effects of conventional and unconventional monetary policy on exchange rate volatility Abstract: This paper examines the impacts of U.S. conventional and unconventional monetary policy announcements on the volatility of six exchange rates, namely Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, and Swiss franc against the U.S. dollar. Narrow windows around policy announcements and high frequency second-by-second intraday data are used in the analysis. Results show that the exchange rate volatility increases significantly in the narrow window before and after the announcements under conventional monetary policy regime. The increase in the volatility is even greater during the contemporaneous period under the unconventional regime. Dividing monetary policy announcements into expansionary and non-expansionary groups, we further find that exchange rate volatility responds stronger to the non-expansionary announcements compared to the expansionary ones under the unconventional monetary policy regime. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1997425 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1997425 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1997425 Template-Type: ReDIF-Article 1.0 Author-Name: Dur Almulla Author-X-Name-First: Dur Author-X-Name-Last: Almulla Author-Name: Abdullah A. Aljughaiman Author-X-Name-First: Abdullah A. Author-X-Name-Last: Aljughaiman Author-Name: Vassilios Papavassiliou Author-X-Name-First: Vassilios Author-X-Name-Last: Papavassiliou Title: Does financial technology matter? Evidence from an alternative banking system Abstract: The purpose of this study is to examine the impact of the financial technology (fintech) services provided by banks on their performance. We also investigate the influence of fintech firms’ growth (as competitor firms) on banks’ financial performance. We extend our analysis to investigate the differences between conventional banks (CBs) and Islamic banks (IBs) in this relationship and utilise a sample of 40 listed banks from Gulf Cooperation Countries, where fintech growth was impressive in the period 2014–2019. We find a negative relationship between fintech services and bank performance for both types of bank. Furthermore, we show that the growth of fintech firms in a country negatively influences CBs’ financial performance but has no significant impact on IBs’ performance. In addition, we test our hypotheses through multiple additional tests and robustness tests, such as the generalised method of moments. The findings could be relevant to banks, policy makers, and academic research. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1934978 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934978 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Ng’ang’a Mwaura Author-X-Name-First: Simon Ng’ang’a Author-X-Name-Last: Mwaura Author-Name: Isaac Maina Kariuki Author-X-Name-First: Isaac Author-X-Name-Last: Maina Kariuki Author-Name: Simon Kiprop Author-X-Name-First: Simon Author-X-Name-Last: Kiprop Author-Name: Augustus Sammy Muluvi Author-X-Name-First: Augustus Sammy Author-X-Name-Last: Muluvi Author-Name: Gideon Obare Author-X-Name-First: Gideon Author-X-Name-Last: Obare Author-Name: Boniface Kiteme Author-X-Name-First: Boniface Author-X-Name-Last: Kiteme Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: The impacts of community-based water development projects on rural poverty among small-holder farmers: Evidence from the Ewaso Ng’iro North Catchment Area, Kenya Abstract: The main challenge with respect to water in the rural setting, lies in access, control and management. Collective action has been taken up following the International Water Management (IWM) principles and institutionalized in the Kenyan legal framework through water resource users’ associations (WRUAs). We carried out this study to assess whether this collective action has any impact on household poverty using objective poverty measures (consumption and income), a subjective poverty measure and a water poverty measure. We used 2019 household survey data of 652 randomly selected rural households from the Upper Ewaso Ng’iro North Catchment Area. We employed the full information maximum likelihood endogenous probit regression model to obtain the impact of WRUA membership on household poverty status. We find that collective water management can have welfare improving impacts for rural households, especially where there low public investments in water provision, management and access. We recommend that WRUAs be empowered through financial, legal and capacity building interventions to enhance their community impacts. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1882763 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1882763 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1882763 Template-Type: ReDIF-Article 1.0 Author-Name: Daiki Maki Author-X-Name-First: Daiki Author-X-Name-Last: Maki Author-Name: Yasushi Ota Author-X-Name-First: Yasushi Author-X-Name-Last: Ota Author-Name: Xibin Zhang Author-X-Name-First: Xibin Author-X-Name-Last: Zhang Title: Robust tests for ARCH in the presence of a misspecified conditional mean: A comparison of nonparametric approaches Abstract: This study compares the size and power of autoregressive conditional heteroskedasticity (ARCH) tests that are robust to the presence of a misspecified conditional mean. The approaches employed are based on two nonparametric regressions for the conditional mean: an ARCH test with a Nadaraya-Watson kernel regression and an ARCH test using a polynomial approximation regression. The two approaches do not require the specification of a conditional mean and can adapt to various nonlinear models, which are unknown a priori. The results reveal that the ARCH tests are robust to the misspecfied conditional mean models. The simulation results show that the ARCH tests based on the polynomial approximation regression approach have better properties of the size and power than those using the Nadaraya-Watson kernel regression approach for various nonlinear models. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1862445 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862445 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862445 Template-Type: ReDIF-Article 1.0 Author-Name: Hiroki Iwamoto Author-X-Name-First: Hiroki Author-X-Name-Last: Iwamoto Author-Name: Hideo Suzuki Author-X-Name-First: Hideo Author-X-Name-Last: Suzuki Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Evaluation of personnel-adjusted added value: Estimating its relationship with future profit in Japan Abstract: Personnel-adjusted added value (PAV) is an index to measure human resource management for internal purposes. In this study, the possibilities and limitations of PAV using external estimates are investigated. To measure the effectiveness of PAV, it is compared with the general added value. This proves the effect of the personnel adjustment. The relationship between future performance and PAV (and added value), including other control variables, are statistically analysed by hierarchical linear modelling. The essence of PAV is to separate the basic labour costs from the company-specific personnel costs. To calculate PAV from outside an enterprise, the basic labour costs should be estimated. For this purpose, in addition to financial data, this study uses survey data on recruitment and employment in Japan. Statistical analysis is applied to the 2008–2016 longitudinal company data of 569 Japanese companies. We find that PAV, a management indicator that includes the adequacy of human resource management, is a useful factor related to future performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1954764 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954764 Template-Type: ReDIF-Article 1.0 Author-Name: Marcin Potrykus Author-X-Name-First: Marcin Author-X-Name-Last: Potrykus Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The share of investments in gold and oil using the example of selected European stock exchanges– A comparative analysis Abstract: In this article, optimal investment portfolios with minimal risk and maximum efficiency were calculated. The portfolios were designated for ten selected European stock exchanges, based on the listings of the twenty largest companies in each of those markets. All calculations were made based on company shares only, company shares and investments in gold, shares of companies and investments in crude oil as well as shares of companies and investments in gold and crude oil. The research hypothesis tested in the study is: The share of alternative investments in the investment portfolio does not depend on the stock exchange, but it differs depending on the length of the estimation window used. The study showed that for most exchanges there were statistically significant differences for the distribution of the determined weight for alternative investments. However, it was noted that the longer the estimation window, the greater the number of exchanges with no differences in the distributions of that weight. In addition, for portfolios with minimal risk, there were larger differences between the designated weights of alternative investments than for the same portfolios, which were determined based on maximizing efficiency. It was also found that the longer the estimation window, the higher the efficiency of the designated portfolios. Moreover, the investment in gold had an average weight, in four-element portfolios with a minimum risk, greater than 60%. Oil investment in the same portfolios had an average weight of 28%. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1929679 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929679 Template-Type: ReDIF-Article 1.0 Author-Name: Linh Duy Bui Author-X-Name-First: Linh Author-X-Name-Last: Duy Bui Author-Name: Trung Chi Le Author-X-Name-First: Trung Author-X-Name-Last: Chi Le Author-Name: Anh Huynh Ngoc Quang Author-X-Name-First: Anh Huynh Author-X-Name-Last: Ngoc Quang Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of the possibilities by investors’ risk-taking: Empirical evidence from Vietnam Abstract: This paper focuses on determining the factors influencing investors’ risk-taking through empirical evidence from Vietnam. This study investigates risk perception, expected return and herding behavior, and other determinants such as historical volatility and subjective financial risk attitude; according to previous studies, these are the main components affecting risk-taking behavior among investors. Overconfidence (better than average, miscalibration, and excessive optimism) is also taken into consideration. We employ pooled-OLS and quantile regression to overcome the shortage of research models in this field. In addition, we demonstrate how risk-taking behavior can be affected by those factors with the application of measures across four different investment channels. This study suggests implications for investors who wish to control risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1917106 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917106 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917106 Template-Type: ReDIF-Article 1.0 Author-Name: Sayantan Kundu Author-X-Name-First: Sayantan Author-X-Name-Last: Kundu Author-Name: Aditya Banerjee Author-X-Name-First: Aditya Author-X-Name-Last: Banerjee Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Predictability of earnings and its impact on stock returns: Evidence from India Abstract: The purpose of this paper is to analyse the predictability of earnings information before the quarterly disclosure date. Two categories of firms are contrasted: the firms that announce better quarterly earnings than the prior period and the firms that do not. The paper uses a sample of 67 large-cap Indian stocks over 33 quarters from 2010 to 2018. Panel data estimation with fixed and random effects is applied to examine the impact of quarterly earnings announcements on stock returns. Results show that all stocks experience return premiums in the pre-announcement period, which is already documented in the literature. The paper adds to the literature by finding that the firms that report better earnings numbers than the previous period generate significantly higher stock returns. It is inferred that the market can anticipate whether the firm will announce better earnings than the prior period. The paper shows that changes in revenue and core earnings are better anticipated. Post-announcement, stock prices adjust to reflect the disclosed earnings information, and only non-performers experience a drop in stock prices. It is the first comprehensive study of liquid large-cap Indian stocks that provides evidence on the behaviour of stock returns around earnings announcements. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1898112 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898112 Template-Type: ReDIF-Article 1.0 Author-Name: Akingbade U. Aimola Author-X-Name-First: Akingbade U. Author-X-Name-Last: Aimola Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Public debt and inflation nexus in Nigeria: An ARDL bounds test approach Abstract: Inflationary tendencies of public debt have been the cause of an unsettling debate among policymakers in Nigeria. Using the autoregressive distributed lag (ARDL) framework, this study attempts to investigate the impact of total public debt on inflation in Nigeria for the period 1983–2018. The cointegrating regression results reveal evidence of a stable long-run relationship among inflation, total public debt, money supply, interest rate, economic growth, trade openness, and private investment in the presence of structural breaks. Empirical results show that the impact of public debt on inflation is statistically insignificant, irrespective of whether the regression was in the short or the long run. Hence, the study concludes that inflation in Nigeria could be driven by other factors other than public debt. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1921905 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921905 Template-Type: ReDIF-Article 1.0 Author-Name: Tough Chinoda Author-X-Name-First: Tough Author-X-Name-Last: Chinoda Author-Name: Tafirei Mashamba Author-X-Name-First: Tafirei Author-X-Name-Last: Mashamba Author-Name: Andrew Vivian Author-X-Name-First: Andrew Author-X-Name-Last: Vivian Title: Fintech, financial inclusion and income inequality nexus in Africa Abstract: Financial institutions play a pivotal role in the efficient allocation of capital resources. However, some households and firms may be excluded from formal financial markets due to asymmetric information and market imperfections, thereby adversely affecting equitable income distribution. On the other hand, among other things, access to finance is viewed as one of the key tools to fight poverty. This study develops a novel double FFI Model and applies the structural equation modelling to simultaneously analyze the interaction between financial technology, financial inclusion, and income inequality in a panel of 25 African countries over the periods 2011, 2014, and 2017. The results show that financial inclusion mediates the financial technology-income inequality relationship thus playing a fundamental role in reducing income inequality in Africa. On the policy front, the study urges African policymakers and regulators to craft policies that enhance Fintech developments and financial inclusion. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1986926 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986926 Template-Type: ReDIF-Article 1.0 Author-Name: Bac Truong Cong Author-X-Name-First: Bac Author-X-Name-Last: Truong Cong Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: The impact of metropolises’ characteristics on provincial economic structure transformation: evidence from Vietnam Abstract: Economic structure transformation is widely recognized as a crucial role in sustainable development. However, the existing literature almost focused on the change inside certain economic areas and ignored the external relationship. This raises the question about the role of factors outside in economic structure transformation at the prefecture-level. This paper takes Vietnam as the study area to fill this gap and examines the impact of metropolis’s characteristics on the provinces’ economic structural transformation. Using data of provincial economic structure from 2015 to 2018 collected from the General Statistics Office of Vietnam, the econometric analysis with instrument variables for panel data is performed. The results show that metropolises play an important role in the economic structure change of provinces through certain roles: destination of migration and start-point of remittances, the market for goods and services, hubs of information and knowledge. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1937849 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1937849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1937849 Template-Type: ReDIF-Article 1.0 Author-Name: Garima Sisodia Author-X-Name-First: Garima Author-X-Name-Last: Sisodia Author-Name: Nemiraja Jadiyappa Author-X-Name-First: Nemiraja Author-X-Name-Last: Jadiyappa Author-Name: Anto Joseph Author-X-Name-First: Anto Author-X-Name-Last: Joseph Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The relationship between human capital and firm value: Evidence from Indian firms Abstract: The purpose of this paper is to investigate whether human capital affects firm value by following a positive methodological approach. According to the classical theory of economic growth, the output of a country depends on its human and physical capital. At the micro-level, the same theory holds true for firm output. Thus, the human capital of a firm should play a significant role in firm performance and therefore firm valuation. Our results show a positive relationship between human capital and firm value. Human capital creates value; first, by better utilization of current growth opportunities; second, by creating future growth opportunities, and lastly, by reducing the volatility associated with the firm growth rate. Also, we test the size effect on the relationship between human capital and firm value and do not find any differential impact. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1954317 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954317 Template-Type: ReDIF-Article 1.0 Author-Name: Munacinga Simatele Author-X-Name-First: Munacinga Author-X-Name-Last: Simatele Author-Name: Edson Mbedzi Author-X-Name-First: Edson Author-X-Name-Last: Mbedzi Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Consumer payment choices, costs, and risks: Evidence from Zimbabwe Abstract: Very little is known about payment choices in the African context and in developing countries in general. Their unique infrastructures and economic nuances suggest that both the availability of instruments and supporting structures in the payment system are different from the general perception. This exploratory study investigates the payment choices in Zimbabwe, a country that claims the existence of a near cashless society. Through a descriptive and logit analysis based on survey data, we find that a strong preference for cash, coupled with cash shortages and inadequate infrastructure for electronic payments, has resulted in a multitiered pricing system, with significant premiums for digital payments. This perverse effect counters the heavily lauded benefits of mobile payments in developing countries. We argue that the demand-side bias in government policies will not effectively counter persistent currency failures and the resultant inflation, both of which have a strong influence on payment choices. We recommend that the government should consider polices that will reduce merchant adoption costs to encourage widespread use of digital payment instruments, such as debit cards. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1875564 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1875564 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1875564 Template-Type: ReDIF-Article 1.0 Author-Name: Adjei Gyamfi Gyimah Author-X-Name-First: Adjei Author-X-Name-Last: Gyamfi Gyimah Author-Name: Bismark Addai Author-X-Name-First: Bismark Author-X-Name-Last: Addai Author-Name: George Kwasi Asamoah Author-X-Name-First: George Kwasi Author-X-Name-Last: Asamoah Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Macroeconomic determinants of mutual funds performance in Ghana Abstract: This study examines the impact of key macroeconomic variables on mutual funds’ financial performance in Ghana. We employ the Pooled Mean Group (PMG) estimation of the Autoregressive Distributed Lag (ARDL) model to analyze the macroeconomic determinants of mutual funds in Ghana for the period 2007–2016. The study documents homogenous long-run significant positive impacts of exchange rate, inflation, T-Bill, GDP growth on mutual funds’ financial performance, and a homogeneous long-run negative significant impact of monetary policy rate on the financial performance of mutual funds. The study also establishes heterogeneous short-run respective significant negative and positive impacts of T-Bill and monetary policy on mutual fund’s financial performance. Unlike many previous studies that used stock data to estimate mutual funds’ performance, accounting data is used in this study. Second, we incorporate monetary policy rate in our study variables since most of the prior studies ignored that variable. Finally, the outcome of our study contributes to existing knowledge on the short-run and long-run effects of macroeconomic variables on the financial performance of mutual funds from the perspectives of a developing country. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1913876 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913876 Template-Type: ReDIF-Article 1.0 Author-Name: Brian Tavonga Mazorodze Author-X-Name-First: Brian Tavonga Author-X-Name-Last: Mazorodze Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Trade and wage disparities in South Africa Abstract: Literature on trade and wage disparities has gained prominence since the mid-90s following the push for trade liberalization across the globe. Despite the 26 years of empirical research, however, questions of whether trade closes or widens the wage gap remain relevant today, particularly in countries such as South Africa where income inequality remains a persistent policy concern. Against this background, this paper contributes to the literature by examining the effect of trade on relative wages between skilled and low-skilled workers in South Africa using a local municipality-level dataset observed between 1995 and 2019. Results from the system GMM estimator confirm that trade has had a positive and non-trivial effect on wage disparities in the past two decades. When decomposed into exports and imports, it is the latter that appears to have added a relatively large wage premium on skilled workers at the expense of low-skilled workers. This result is crucial in designing both trade and industrial policies. In particular, it brings to the fore the need for targeted interventions that protect low-skilled workers. Such interventions may include programs for skills upgrade and trade protectionist policies in low-skill labour-intensive industries. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1915516 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1915516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1915516 Template-Type: ReDIF-Article 1.0 Author-Name: M Rasbin Author-X-Name-First: M Author-X-Name-Last: Rasbin Author-Name: Mohamad Ikhsan Author-X-Name-First: Mohamad Author-X-Name-Last: Ikhsan Author-Name: Beta Y. Gitaharies Author-X-Name-First: Beta Author-X-Name-Last: Y. Gitaharies Author-Name: Yoga Affandi Author-X-Name-First: Yoga Author-X-Name-Last: Affandi Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: Real exchange rate undervaluation and Indonesia’s manufacturing exports Abstract: This study analyzes the impact of real exchange rate undervaluation on Indonesia’s manufacturing exports in 22 manufacturing industries throughout 1990–2015. The study was undertaken by modifying a partial equilibrium model of monopolistic competition for exporting firms and using the augmented mean group (AMG) method. This study confirms that the real exchange rate, both misalignment and changes in levels (depreciation/appreciation), are insignificant in affecting Indonesia’s manufacturing exports. In addition, this study finds that manufactured exports are significantly determined by the manufactured exports in the previous period, real interest rates, real wages, labor productivity, and firm growth. This finding indicates that the exchange rate manipulation policy is not an important factor in strengthening the competitiveness of Indonesia’s manufacturing exports. We suggest policies that play more important roles in driving manufacturing exports are creating a competitive and conducive business climate, lowering domestic interest rates, and reforming the labor system. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1930880 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930880 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930880 Template-Type: ReDIF-Article 1.0 Author-Name: Sheng Xu Author-X-Name-First: Sheng Author-X-Name-Last: Xu Author-Name: Michael Asiedu Author-X-Name-First: Michael Author-X-Name-Last: Asiedu Author-Name: Gabriel Kyeremeh Author-X-Name-First: Gabriel Author-X-Name-Last: Kyeremeh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Firm productivity, innovation, and financial development Abstract: This study utilizes firm-level data from the World Bank’s Enterprise Survey Indicator Database, conducted between 2009 and 2018 for 32 countries in Africa, to examine the causal relationship between firm productivity, innovation, and financial development. We show evidence that firm innovation significantly and positively affects firm productivity. We also show the mediating role of well-developed financial markets on productivity. In a well-developed financial market, the impact of firm innovation is significant through the facilitation and financing of innovation activities; and innovative firms to boost productivity and lower production costs. These findings are significant for countries in Africa (and other less-developed countries) who spend less on R&D but can adopt or imitate existing innovative ideas from technology-rich countries for accelerated economic growth and increased productivity. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1976359 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1976359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1976359 Template-Type: ReDIF-Article 1.0 Author-Name: Isaac Doku Author-X-Name-First: Isaac Author-X-Name-Last: Doku Author-Name: Ronney Ncwadi Author-X-Name-First: Ronney Author-X-Name-Last: Ncwadi Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: Examining the role of climate finance in the Environmental Kuznets Curve for Sub-Sahara African countries Abstract: The purpose of this study is to examine the impact of climate finance on pollutant emissions (CO2, CH4 and N2O) for a sample of 19 Sub-Sahara Africa (SSA) countries over the period 2006 to 2017. Our study augments the traditional Environmental Kuznets Curve (EKC) with climate finance and our findings affirm the existence of an inverted U-shaped relationship between per capita income and emissions (i.e. traditional EKC) as well as between climate finance and emissions (Climate finance-induced EKC). We particularly compute turning points of $3,690 (CO2); $5,710 (CH4) and $6,420 (N2O) for per capita GDP levels and $910 million (CO2), $1.2 billion (CH4) and $1. 6 billion (N2O) for climate finance funds. These turning points are above the current averages observed for the SSA countries hence implying that these African countries are not developed enough and neither receive sufficient climate funding to address the challenges arising from climate change. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1965357 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1965357 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1965357 Template-Type: ReDIF-Article 1.0 Author-Name: Maurice Omane-Adjepong Author-X-Name-First: Maurice Author-X-Name-Last: Omane-Adjepong Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Author-X-Name-Last: Paul Alagidede Author-Name: Anna Gustav Lyimo Author-X-Name-First: Anna Gustav Author-X-Name-Last: Lyimo Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Herding behaviour in cryptocurrency and emerging financial markets Abstract: The letter examines herding in the most liquid cryptocurrency markets relative to traditional financial markets of 10 emerging economies within the G20. Our results reference significant symmetric crowd and imitation trading, which are dependent on time. Additionally, we report asymmetric herd behaviour in the cryptocurrency and stock markets, indicative that traders of these markets react collectively to extreme return movement with implied high risk and consequences for market informational efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1933681 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1933681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1933681 Template-Type: ReDIF-Article 1.0 Author-Name: Ayse Y. Evrensel Author-X-Name-First: Ayse Y. Author-X-Name-Last: Evrensel Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: Are constitutional characteristics a proxy for institutional quality? Evidence from 109 countries Abstract: The paper investigates the question whether constitutions are a proxy for institutional quality. It provides a discussion of institutions and states that constitutions are an example of a formal institution. As any other formal institution, constitutions are also influenced by countries’ informal institutions, including customs and belief systems. The novel content analysis goes beyond the often-used constitutional characteristics of government systems and electoral rules. In addition to the mentioned characteristics, the length, the number of revisions, and over 30 additional characteristics are coded for 109 constitutions, such as state religion and religious freedom as well as referring to state as mother, father or holy. Based on the content analysis, alternative constitutional scores are calculated. Statistically significant correlations are observed between measures of institutional quality such as corruption control and some of the constitutional scores. Based on the two widely-used economic development models, the OLS and two-stage least squares estimations are conducted with and without the institutional quality-related variables, where in the latter case the institutional quality-related variables are replaced by constitutional scores. Especially in two-stage least squares estimations, constitutional scores that emphasize the length, mention state religion, and refer to state as mother, father or holy statistically significantly and negatively affect income per capita. These findings point out to possible limitations to change that is aimed by constitutional revisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1911909 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911909 Template-Type: ReDIF-Article 1.0 Author-Name: Massoud Metghalchi Author-X-Name-First: Massoud Author-X-Name-Last: Metghalchi Author-Name: John Kagochi Author-X-Name-First: John Author-X-Name-Last: Kagochi Author-Name: Linda Hayes Author-X-Name-First: Linda Author-X-Name-Last: Hayes Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A technical approach to equity investing in South Africa: A tale of two indexes Abstract: This research uses Simple Moving Averages and four other well-known indicators to investigate the usefulness of the Technical Analysis approach to the Johannesburg stock exchange (JSE) in South Africa. Technical indicators are applied to two JSE indexes representing large cap and small cap companies over the period of 1/2/2002 to 12/31/18. The best trading rules for both the Small Cap and All Share indexes involve the use of two simple moving averages. For the Small Cap Index, our best two trading rules and a low-risk strategy have positive annual net excess return over the Buy and Hold (B&H) strategy for the entire period and each sub-period, thus trading rules can beat the B&H strategy. However, we cannot say the same for the All Share Index (representing large cap companies). Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1869374 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1869374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1869374 Template-Type: ReDIF-Article 1.0 Author-Name: Yaya Keho Author-X-Name-First: Yaya Author-X-Name-Last: Keho Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Determinants of Trade Balance in West African Economic and Monetary Union (WAEMU): Evidence from heterogeneous panel analysis Abstract: This study investigates the determinants of the trade balance in West African and Monetary Union (WAEMU) over the period 1975–2017. We employ the Mean Group (MG) estimator along with the grouped mean version of Dynamic OLS (DOLS) and Fully Modified OLS (FMOLS) to deal with both endogeneity and cross-country heterogeneity. The results reveal that the trade balance is negatively related to domestic and foreign income whereas real effective exchange rate depreciation improves the trade balance in the long-run. However, the results do not confirm the short-run worsening of trade balance suggested by the J-curve. In the short-run, the trade balance is sensitive only to foreign real income but not to domestic income and real exchange rate. The country-level estimates show heterogeneity in the response of the trade balance to real exchange rate, domestic and foreign income. Overall, the findings of this study suggest that policies aimed at improving the trade balance should focus on the domestic production of imported goods, rather than devaluation. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1970870 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1970870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1970870 Template-Type: ReDIF-Article 1.0 Author-Name: Isaiah Kiprono Byegon Author-X-Name-First: Isaiah Kiprono Author-X-Name-Last: Byegon Author-Name: Jane Kabubo-Mariara Author-X-Name-First: Jane Author-X-Name-Last: Kabubo-Mariara Author-Name: Anthony Wambugu Author-X-Name-First: Anthony Author-X-Name-Last: Wambugu Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: The link between socio-economic factors and multiple child deprivations in Kenya Abstract: This paper analyzes the socio-economic correlates of multiple child deprivations in Kenya using the 1993–2014 KDHS. Conventionally, child well-being is examined from the perspective of income poverty. However, numerous studies have argued that income is just one of the defining characteristics of poverty. Furthermore, examining child well-being only through monetary lens risk leaving behind millions of children because children are not economic agents. Despite global recognition of the importance of having a comprehensive measure of child well-being, there is a dearth of literature on multiple child deprivations. This study utilized data on seven child-specific dimensions of well-being. First, we counted the number of dimensions each child was deprived and then ranked them from those who were not deprived to those who are deprived in four or more dimensions. Second, we examined the distribution of multiple child deprivations by various characteristics. Finally, we investigated factors associated with multiple child deprivations using an ordered logit regression model. The results reveal that rural children, male children and children living in households without access to electricity and under female headship, on average, suffer higher incidence of multiple deprivations than their counterparts. Children with higher birth orders, twins and from rural residence had higher probability of suffering multiple deprivations while higher maternal education, employment of the respondent were associated with lower chances of a child suffering multiple deprivations. The findings of the study suggest the need for integrated policies targeting multiple forms of deprivation and strategies to ensure access to public services in remote areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1938378 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1938378 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1938378 Template-Type: ReDIF-Article 1.0 Author-Name: Mohamed Idris Somoebwana Author-X-Name-First: Mohamed Idris Author-X-Name-Last: Somoebwana Author-Name: Oscar Ingasia Ayuya Author-X-Name-First: Oscar Ingasia Author-X-Name-Last: Ayuya Author-Name: John Momanyi Mironga Author-X-Name-First: John Momanyi Author-X-Name-Last: Mironga Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Drivers of marine fishery dependence: Micro-level evidence from the coastal lowlands of Kenya Abstract: Poverty and inequality remain a development challenge for most fishery-dependent households. This has prompted the current interest in the ocean-based economic model as Kenya became the first to host a global conference on the sustainable blue economy which was held in Nairobi in November 2018. To provide a more comprehensive understanding of the challenges surrounding the blue economy approach, we used a fractional response model to analyze drivers of marine fishery dependence. Our case study, involving 384 randomly selected households from Coastal lowlands of Kenya, specifically Kilifi County, revealed that marine fishery is the highest livelihood option exhibiting gender differences. The livelihood participation rates were approximately 68%, 36%, 31%, 25%, and 9% for marine fishery and related activities, agriculture, self-employment (excluding agriculture and marine fishery), wage employment, and remittances respectively. Many livelihood options were pursued independently implying a low level of diversified livelihood strategies in the region. The analysis of the determinants of the marine fishery dependence indicated that education level, agricultural productive assets, access to credit, group membership, security of tenure, flood shock, and fish price shock significantly influenced marine fishery dependence. The study therefore recommends government intervention in marine governance and development programs such as infrastructural development, capital availability and extension services. This will enable the dependent households to diversify to alternative livelihood options and contributes to sustainable marine fishery dependence. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1944967 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1944967 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1944967 Template-Type: ReDIF-Article 1.0 Author-Name: Dwi Martani Author-X-Name-First: Dwi Author-X-Name-Last: Martani Author-Name: Nur Aulia Rahmah Author-X-Name-First: Nur Aulia Author-X-Name-Last: Rahmah Author-Name: Fitriany Fitriany Author-X-Name-First: Fitriany Author-X-Name-Last: Fitriany Author-Name: Viska Anggraita Author-X-Name-First: Viska Author-X-Name-Last: Anggraita Author-Name: Zhaojun Yang Author-X-Name-First: Zhaojun Author-X-Name-Last: Yang Title: Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4 Abstract: This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1901395 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1901395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1901395 Template-Type: ReDIF-Article 1.0 Author-Name: Chirongo Moses Keregero Author-X-Name-First: Chirongo Moses Author-X-Name-Last: Keregero Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A theoretical framework for simulating systemic risk and its application to analysis of the banking system Abstract: Risk of basic defaults and contagious defaults are two main sources of bank systemic risk. In this paper, a theoretical framework is proposed to classify the time evolution of the basic defaults and contagious defaults using sequences of daily financial data. The new theoretical framework combines an existing asset value estimation algorithm and obligation clearing algorithm to calculate the time evolution of systemic risk. The asset value estimation algorithm is used to estimate the asset values of the banks each day and the obligation clearing algorithm is used to calculate systemic risk given the tuples of data each day. This framework is applied to assess the systemic risk of the Nigerian banking system between 2008 and 2014 when the economy was hit by the financial meltdown. The main findings depict that the risk of the basic defaults was high during this period while contagious default seldom appeared. It is also found that the Nigerian banking system was more stable in 2010 and 2012 than in other years, while it was seriously unstable in 2008, 2011, and 2014. The findings would assist in monitoring systemic risk in the Nigerian banking system. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1986930 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986930 Template-Type: ReDIF-Article 1.0 Author-Name: Khaled Batayneh Author-X-Name-First: Khaled Author-X-Name-Last: Batayneh Author-Name: Wasfi Al Salamat Author-X-Name-First: Wasfi Author-X-Name-Last: Al Salamat Author-Name: Mohammad Q.M. Momani Author-X-Name-First: Mohammad Q.M. Author-X-Name-Last: Momani Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The impact of inflation on the financial sector development: Empirical evidence from Jordan Abstract: In any economy, the financial sector plays a fundamentally important role in achieving economic growth and thus achieving sustainable economic development. Therefore, interest in this sector and the improvement of its performance is considered a strategic goal for any country. Accordingly, this study aims to analyze the short- and long-run impacts of inflation on the development of this sector on the Jordanian economy for the period from 1993 to 2018. To do so, the study uses an auto-regressive distributed lag bound testing approach, which is considered an advanced analytical model. Empirical findings confirmed that there is a statistically significant long- and short-run negative effect of inflation on financial sector development. On the contrary, there is a statistical significant long- and short-run positive impact of economic growth on financial sector performance. In addition, results confirmed that there is a positive support of the previous financial sector policies on financial sector performance in the current period. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1970869 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1970869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1970869 Template-Type: ReDIF-Article 1.0 Author-Name: Fe Doukouré Charles Author-X-Name-First: Fe Doukouré Author-X-Name-Last: Charles Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Title: African continental free trade area: Is there a trade potential for Côte d’Ivoire? Abstract: Many studies present the African Continental Free Trade Area (AfCFTA) as one of Africa’s most new trade issues. Previous assessments show that this AfCFTA will catalyze Intra African trade. The cumulative impact on Côte d’Ivoire’s exports in the long term is positive for other African countries without indicating potential partners. This study seeks to identify a potential partner to help policymakers to map out a better strategy. We use exports data from 2001 to 2016 on 45 African countries, and we compute an index to assess the gap. When asked if there are potential customers on the continent for Côte d’Ivoire from the perspective of the AfCFTA, it appears that yes. The results reveal great trade potentials for Côte d’Ivoire in Africa, at least in 25 countries. Among them, there are 8 Economic Community of West African States (ECOWAS) countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1915932 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1915932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1915932 Template-Type: ReDIF-Article 1.0 Author-Name: John-Morgan Bezuidenhout Author-X-Name-First: John-Morgan Author-X-Name-Last: Bezuidenhout Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Spectral analysis and the death of value investing Abstract: This study explores the redundancy of the value premium by conducting a Fourier analysis. The results illustrate periodicity in the value premium and merges the Adaptive Market Hypothesis with the Efficient Market hypothesis. The value premium is considered to be redundant due to structural economic changes, persistently low global interest rates and value investing’s underperformance relative to growth investment strategies. The Adaptive Market Hypothesis suggests that market efficiencies vary over time as risk and behavioral biases change with market conditions. We conducted a Fourier analysis and found a three-month cycle, a six-month cycle and a 10-year cycle in the value premium. The Fourier analysis illustrates the predictability of the value premium and the study explains the short-term cyclicality as behavioral biases. Furthermore, the longer cycles are better explained by rational asset pricing, perceived market risks and market efficiency. Historic value factor returns were sourced from value portfolios that were constructed by their rankings associated with their book to market ratios. Additionally, a combination portfolio of value and momentum was formed including returns from portfolios ranked on past price performances to value portfolios. The combination portfolio held an equal weighting in value and momentum. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1988380 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1988380 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1988380 Template-Type: ReDIF-Article 1.0 Author-Name: Carol Cheong Author-X-Name-First: Carol Author-X-Name-Last: Cheong Author-Name: Huy Viet Hoang Author-X-Name-First: Huy Viet Author-X-Name-Last: Hoang Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Macroeconomic factors or firm-specific factors? An examination of the impact on corporate profitability before, during and after the global financial crisis Abstract: The purpose of this paper is to examine the impact of macroeconomic variables and firm-specific factors on corporate profitability in Singapore and Hong Kong before, during and after the global financial crisis. This paper uses the two-step system Generalized Method of Moments to examine the impact of macroeconomic and firm-specific factors on corporate profitability. The model includes firm-specific factors (firm size, leverage, liquidity, sales growth and previous year’s profitability) and macroeconomic factors (real GDP growth and inflation rate). Corporate profitability is represented by ROA, ROE and Tobin’s Q. Results from the pooled sample showed that past profitability, firm size and leverage have a strong relationship with firm performance. Our pooled sample results also showed that Hong Kong firms are more affected by macroeconomic factors during the global financial crisis than Singapore firms. Our study provides insights into the relationship between firm-specific factors, macroeconomic factors and firm performance under three different economic periods in two developed economies in the Asia-Pacific. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1959703 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1959703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1959703 Template-Type: ReDIF-Article 1.0 Author-Name: Sayyed Mahdi Ziaei Author-X-Name-First: Sayyed Mahdi Author-X-Name-Last: Ziaei Author-Name: Issa Ali Author-X-Name-First: Issa Author-X-Name-Last: Ali Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Commodity exports and macroeconomic performance: The case of palm oil in Malaysia Abstract: The objective of this paper is to contribute towards understanding the effects of palm oil production upon key macroeconomic variables in Malaysian economy. A dynamic general equilibrium model was employed in order to analyze the dynamic macroeconomic adjustment processes arising from palm oil production increase for Malaysian economy (the second biggest palm oil producer in world), operating under a managed float exchange rate regime. The model utilized in this paper is likely to be of interest to other palm oil-exporting economies with similar features such as that of Indonesia. Findings from this paper show that an increase in palm oil production would potentially result in an increase in private capital stock, private sector wealth, real income, public capital stock, human capital stock and non-palm oil output supply and demand. However, the revenue arising from the palm oil sector also has the potential to deteriorate the non-palm-oil trade balance through a slight loss of competitiveness from a real exchange rate appreciation. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1901388 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1901388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1901388 Template-Type: ReDIF-Article 1.0 Author-Name: Bahrawar Said Author-X-Name-First: Bahrawar Author-X-Name-Last: Said Author-Name: Shafiq Ur Rehman Author-X-Name-First: Shafiq Ur Author-X-Name-Last: Rehman Author-Name: Rizwan Ullah Author-X-Name-First: Rizwan Author-X-Name-Last: Ullah Author-Name: Javed Khan Author-X-Name-First: Javed Author-X-Name-Last: Khan Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Investor overreaction and global financial crisis: A case of Pakistan stock exchange Abstract: Recently, the investor overreaction catches the attention of the academicians and practitioners. The topic comes under the limelight of academicians and policymakers. This study, therefore, addresses investor overreaction and its relationship with the global financial crisis for the period of 2004–15. The study used stratified random sampling technique; equal allocation method of Krejcie and Morgan. By adopting the methodology of Debondt and Thaler, the study finds that there is highly significant overreaction (distinct reversal) in the stock market in the global-financial crisis period, which may attribute to the aggressive behavior of individual investors in the market. Overreaction has also been shown in the line graph shaded area which opposes the efficient market hypothesis and verifies the presence of a weak form of efficiency. Econometric tests are applied for robustness check that confirms weak form of efficiency in the PSX. The study has implications for both the investors and policymakers. This study is quintessential for those investors who have the aptitude to look introspectively and to evaluate their behavioral biases. Further, investors would learn to transmute behaviors and to build portfolios which will help them to stick to their long-term investment strategies and hence achieve their investment goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1966195 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966195 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966195 Template-Type: ReDIF-Article 1.0 Author-Name: Bashier Al-Abdulrazag Author-X-Name-First: Bashier Author-X-Name-Last: Al-Abdulrazag Author-Name: Walid Mensi Author-X-Name-First: Walid Author-X-Name-Last: Mensi Title: The optimal government size in the kingdom of Saudi Arabia: an ARDL bounds testing approach to cointegration Abstract: This study attempts to estimate the optimum government size in the kingdom of Saudi Arabia (KSA) using annual data covering the 1971–2019 period by applying the linear and nonlinear Autoregressive Distributed Lag $$\left({{\rm{ARDL}}} \right)$$ARDL Model. The main focus is whether the Armey curve is valid for KSA. The statistical diagnostic tests provide an evidence for the model adequacy and that the estimation results are reliable. Moreover, the ARDL short-run estimation results revealed that the speed of adjustment is (−0.82) indicating that it takes about 14 months to correct toward the long-run equilibrium due to a short-run shock. The NARDL estimation results revealed asymmetric relationship between government expenditures and economic growth. Further, a positive shock has a positive impact while a negative shock reduces economic growth. Based on the long-run estimation results, the optimum government size is 26.9 as a share of GDP, which is greater than the average share (24.2) during the study period. Based on such result, it is obvious that Saudi Arabia has a room to increase the expenditures share up to the optimal size estimated in the study. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2001960 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2001960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2001960 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Akumbo Eugene Mbilla Author-X-Name-First: Simon Akumbo Eugene Author-X-Name-Last: Mbilla Author-Name: Peter Akurigo Atindaana Author-X-Name-First: Peter Akurigo Author-X-Name-Last: Atindaana Author-Name: Samuel Gameli Gadzo Author-X-Name-First: Samuel Gameli Author-X-Name-Last: Gadzo Author-Name: Abiola Adeniyi Author-X-Name-First: Abiola Author-X-Name-Last: Adeniyi Author-Name: Idrisu Salifu Author-X-Name-First: Idrisu Author-X-Name-Last: Salifu Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Monetary policy and macro economic indicators: A review of a developing country’s perspectives 2002–2017 Abstract: The purpose of the study was to examine the effect of monetary policy on key macroeconomic indicators in Ghana. The study used annual time series data from 2002 to 2017, which was sourced from the World Development Indicator (WDI) and the Bank of Ghana (BOG). The data were converted to Quarterly data between 2002Q1 and 2017Q4, which covers a sample period of sixteen years. The study employed the Autoregressive Distributed Lagged Model (ARDL) for analyzing the data. Unit root test was conducted using the Augmented Dickey-Fuller (ADF) tests, and the results of the analysis exhibited a cointegration realtionship among the variables of order one (1). Monetary policy changes affected lending rates by (0.32%) compared to the other variables. Overall, the results suggests that monetary policy affects macro economic indicators performance in Ghana. Based on the foregoing, the paper recommends that, in efforts to enhance the effectiveness of monetary policy, the need for policy intervention in determining the stance of fiscal policies, develop financial markets, and liberalize controlled interest rates. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1935530 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1935530 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1935530 Template-Type: ReDIF-Article 1.0 Author-Name: Philip C. Omoke Author-X-Name-First: Philip C. Author-X-Name-Last: Omoke Author-Name: Silva Opuala–Charles Author-X-Name-First: Silva Author-X-Name-Last: Opuala–Charles Author-Name: Mariam Camarero Author-X-Name-First: Mariam Author-X-Name-Last: Camarero Title: Trade openness and economic growth nexus: Exploring the role of institutional quality in Nigeria Abstract: This study attempts to fill the prior knowledge gap in the nexus between trade openness and economic growth in Nigeria by incorporating the role of institutional quality. The study covers the period from 1984 to 2017 and employs three indicators of trade openness including total trade, import trade, and export trade. Cointegration among the variables is examined using the ARDL bounds testing approach. The results provide evidence of a long-run relationship among the variables. The estimates suggest that export trade has a significant positive impact on economic growth while the impact of import trade on economic growth is negative and significant. The results also show that the negative long-run effects of import trade on economic growth in Nigeria decreases as institutional quality (quality of governance) improves. These empirical results have important policy implications for Nigeria. Among others, this study highlights the needs to improve the quality of governance in the country. Good governance and quality institutions can help channel the dividends of trade openness into growth-enhancing activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1868686 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1868686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1868686 Template-Type: ReDIF-Article 1.0 Author-Name: Esubalew Tadele Author-X-Name-First: Esubalew Author-X-Name-Last: Tadele Author-Name: Teshome Sirany Author-X-Name-First: Teshome Author-X-Name-Last: Sirany Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: The relative choice over destiny in a country’s long-run economic growth and economic affluence Abstract: This paper examines an in-depth and systematic review of why some nations are so rich, while others remain so poor taking into account temporal and spatial dynamics applied for economic growth covariants. Growth literature underscores direct and indirect causes for economic growth. Likewise, economic and non-economic dynamics are thoroughly examined for countries’ long-run economic growth and relative wealth accumulation. Endogenous growth theories emphasized that investment in human capital, innovation, and knowledge are major contributors to economic growth. Empirics confirmed that time-variant (such as well-established institutions and their prominent role in devising property rights and policies) gives more emphasis towards shaping a country’s long-run economic growth than time-invariant exogenous attributes (like geography). Meanwhile, some nations did not industrialize being geographically advantageous, and the location of the country does not exclusively determine the fate of the nation’s economic success. Moreover, state capacity is vital to determining relative wealth accumulation and economic prosperity. The incidence of routine war undermines the fiscal capacity and leads to an extractive form of government and weakens public and private investments, and this sets a country into undesirable outcomes. In a nutshell, time-varying attributes become more flexible to adjust the fate of countries’ economic growth and destiny. Furthermore, it requires an intense investigation of what governs a nation’s economic successes or failures focusing on country-specific concerns. It needs a close and continuous rectification to reconsider the country’s institutional setup and policy frameworks towards endogenously rooted economic growth and development for the relative economic affluence. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1949133 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1949133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1949133 Template-Type: ReDIF-Article 1.0 Author-Name: Jacque Bon-Isaac Aboy Author-X-Name-First: Jacque Bon-Isaac Author-X-Name-Last: Aboy Author-Name: Joselito Magadia Author-X-Name-First: Joselito Author-X-Name-Last: Magadia Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Nonparametric performance hypothesis testing with the information ratio Abstract: This study proposes a nonparametric bootstrap-based test to compare performances between two portfolios in terms of their information ratio. This serves as an extension to the literature that tests performance between two portfolio investment strategies that uses Sharpe ratio. Monte Carlo experiments show that the test has appropriate sizes and is powerful to most of the scenarios. However, the test does not perform well in highly correlated portfolio returns, but is better when the mean of portfolio return is modeled using an autocorrelated process. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1902031 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902031 Template-Type: ReDIF-Article 1.0 Author-Name: Gourab Chakraborty Author-X-Name-First: Gourab Author-X-Name-Last: Chakraborty Author-Name: G. R. Chandrashekhar Author-X-Name-First: G. R. Author-X-Name-Last: Chandrashekhar Author-Name: G. Balasubramanian Author-X-Name-First: G. Author-X-Name-Last: Balasubramanian Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Measurement of extreme market risk: Insights from a comprehensive literature review Abstract: The experience of past financial market turmoil suggests that in addition to eroding investor wealth, the severe consequences of rare extreme market events can spillover and impair the broader real economies. In this context, this paper is an evaluation of the methodological and empirical advances in the measurement of the extreme market risk. This paper argues that a major reason for the origin of such risks post 1980s has been the unintended consequence of asymmetric monetary policy to sustain the rise of financial markets. Thereafter, this review identified the value at risk (VaR) and VaR-based alternative expected shortfall (ES) as the principal measures of extreme market risk. The deficiencies in the standard modelling approaches for VaR-ES measures have led to several advanced estimation methodologies. However, the lack of identification of optimal methodology, in the internal models approach (IMA) regime where financial institutions (FI’s) can choose suitable VaR-ES modelling technique incentivizes regulatory arbitrage and other inconsistencies. Therefore, this paper investigates the theoretical and empirical research literature on VaR and ES estimation for financial asset market prices. This paper finds that the extreme value theory (EVT) followed closely by the filtered historical simulation (FHS) are highly accurate methodologies. In addition, Mixture distributions, asymmetric and non-linear versions of the conditional quantile (CQ) approach, (volatility) asymmetry and long memory conditional volatility models, especially those assuming skewed and leptokurtic distributions offer accurate VaR and ES measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1920150 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920150 Template-Type: ReDIF-Article 1.0 Author-Name: Nazima Ellahi Author-X-Name-First: Nazima Author-X-Name-Last: Ellahi Author-Name: Adiqa Kiani Author-X-Name-First: Adiqa Author-X-Name-Last: Kiani Author-Name: Qaisar Malik Author-X-Name-First: Qaisar Author-X-Name-Last: Malik Author-Name: Asif Raza Author-X-Name-First: Asif Author-X-Name-Last: Raza Author-Name: Raazia Gul Author-X-Name-First: Raazia Author-X-Name-Last: Gul Author-Name: Stephanos Papadamou Author-X-Name-First: Stephanos Author-X-Name-Last: Papadamou Title: Institutional governance and financial sector development: Panel evidence from Asian economies Abstract: Current study aims to investigate the impact of institutional governance (GOV), trade openness (TOPEN), real output (RGDP), economic freedom (EFR), inflation rate (INFR) and real output growth on financial sector development (FSD) of selected Asian economies. A consolidated financial sector development index, representing banking sector and stock market is generated using Principal Component Analysis (PCA). The study conducted data analysis by applying panel estimation method of Generalized Method of Moments (GMM), and showed that trade openness, and real output moderate the financial development (FSD) through its positive interaction with institutional governance (GOV). The findings highlight that governance is an important and crucial driver of financial sector development and stock market development in four selected Asian economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1890367 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1890367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1890367 Template-Type: ReDIF-Article 1.0 Author-Name: Achmad Solihin Author-X-Name-First: Achmad Author-X-Name-Last: Solihin Author-Name: Wahyu Wisnu Wardana Author-X-Name-First: Wahyu Wisnu Author-X-Name-Last: Wardana Author-Name: Erfan Fiddin Author-X-Name-First: Erfan Author-X-Name-Last: Fiddin Author-Name: Ni Made Sukartini Author-X-Name-First: Ni Made Author-X-Name-Last: Sukartini Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Do government policies drive economic growth convergence? Evidence from East Java, Indonesia Abstract: While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1992875 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1992875 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1992875 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Does the shadow economy increase income inequality in the short- and long-run? Empirical evidence from Uganda Abstract: This paper investigates whether the size of the shadow economy increases income inequality in Uganda. This p3aper applies the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, to test the long- and short-run relationship between the shadow economy and income inequality. The results indicate a positive and statistically significant relationship between the size of the shadow economy and income inequality in both the long-run and short-run, all else equal. The results show that a large size of the shadow economy significantly increases income inequality, in both the long- and short-run. This suggests that people who fail to be absorbed into the formal economy face fewer livelihood opportunities, giving them the incentive to operate in the shadow economy as a means of survival, for them and their families since there are fewer chances of success in the formal economy. Our findings suggest that income inequality could be partially driven by increasing informality in the country. The practical implication of these results is that policies aimed at tackling income inequality should also be directed at addressing the underlying factors that drive the shadow economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1912896 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1912896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1912896 Template-Type: ReDIF-Article 1.0 Author-Name: Sheunesu Zhou Author-X-Name-First: Sheunesu Author-X-Name-Last: Zhou Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Macroeconomic determinants of long-term sovereign bond yields in South Africa Abstract: This paper seeks to analyse the impact of government debt and other macroeconomic variables on the long term bond yield for South Africa. Recent increases in the government budget deficit and its corresponding borrowing has renewed interest in understanding fiscal dynamics within the economy. The study employs both the linear and non-linear Auto-regressive distributed lag (ARDL) technique to estimate the determinants of the long-term bond yield. Our results show that the short-term interest rate is the major determinant of the long term yield in both the short-run and long-run. Government debt and the US long term yield positively impact long term bond yields both in the short- and long-run. The rate of inflation, economic growth, nominal effective exchange rate and bank credit all have negative effects on the bond yield in the long-run. Tests for non-linearity reveal that the short-term interest rate has an asymmetric relationship with the long-term bond yield. However, we only establish non-linearity between government debt and bond yields in the long-run. We suggest complementarity between monetary policy and fiscal policy, a systematic program of deleveraging and implementation of structural changes aimed at increasing production. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1929678 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929678 Template-Type: ReDIF-Article 1.0 Author-Name: Asheesh Pandey Author-X-Name-First: Asheesh Author-X-Name-Last: Pandey Author-Name: Anand Mittal Author-X-Name-First: Anand Author-X-Name-Last: Mittal Author-Name: Arjun Mittal Author-X-Name-First: Arjun Author-X-Name-Last: Mittal Author-Name: Walid Mensi Author-X-Name-First: Walid Author-X-Name-Last: Mensi Title: Size effect alive or dead: Evidence from European markets Abstract: In this paper, we examine whether the size effect is present in four European markets viz. France, Germany, Spain and Italy. We also investigate whether the size effect can be explained through the sources as available in the literature. We employ prominent asset pricing models to ascertain if size anomaly in our sample countries passes the risk story. We find single-factor model i.e.capital asset pricing model to be still relevant in explaining size anomaly for Spain and Italy. We find FF3 factor model to be a suitable model to be explain for alphas in Germany, while we find that none of the asset pricing model is able to fully explain the size effect for France. Hence, we conclude that though size anomaly does not provide any opportunities to portfolio managers for making extra normal returns for their investors in three of the four sample countries. France, however, provides an opportunity to portfolio managers for exploiting size anomaly. Our findings have implications for portfolio managers, academia as well as regulators. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1897224 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1897224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1897224 Template-Type: ReDIF-Article 1.0 Author-Name: Damien Kunjal Author-X-Name-First: Damien Author-X-Name-Last: Kunjal Author-Name: Faeezah Peerbhai Author-X-Name-First: Faeezah Author-X-Name-Last: Peerbhai Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Investor overconfidence in the South African exchange traded fund market Abstract: Exchange Traded Funds (ETFs) have proven to be extremely popular amongst both retail and institutional investors. The increasing interest in this asset class may incite overconfidence in its’ investor base, which could lead to undesirable market effects such as security mispricing, excess trading volumes, and exacerbated market volatility. This study aims to examine the South African ETF market for presence of investor overconfidence. To achieve this objective, Vector Autoregression (VAR) models and their associated impulse response functions are employed to examine the relationship between the current trading activity and the historical market return. Consistent with the overconfidence hypothesis, a positive and significant relationship between current market turnover and lagged market returns is found for both ETFs with domestic benchmarks and ETFs with international benchmarks. Further analysis of panel VAR models and their associated impulse response functions suggest that the overconfidence bias also influences the trading activities of individual ETFs. These findings have important implications for various market participants. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1978190 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978190 Template-Type: ReDIF-Article 1.0 Author-Name: Dat Dinh Nguyen Author-X-Name-First: Dat Author-X-Name-Last: Dinh Nguyen Author-Name: Tha Hien To Author-X-Name-First: Tha Hien Author-X-Name-Last: To Author-Name: Duy Van Nguyen Author-X-Name-First: Duy Van Author-X-Name-Last: Nguyen Author-Name: Huyen Phuong Do Author-X-Name-First: Huyen Author-X-Name-Last: Phuong Do Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Managerial overconfidence and dividend policy in Vietnamese enterprises Abstract: The dividend policy in an enterprise depends not only on the company’s strategy but also on the characteristics of the managers. In particular, the element of overconfidence of the CEO contributes to the decision-making process for the dividend. Therefore, this study is conducted to determine the effect of overconfident CEO on dividend policy through dividend yield and dividend payout. The study carried out an evaluation based on 576 companies listed on Vietnam’s stock market from 2014 to 2018. Panel data model with GLS (error correction model) is used in regression analysis. The analysis results show that CEO overconfidence has a positive impact on Dividend Payout and Dividend Yield. At the same time, the study also shows that the influence of CEO overconfidence on Dividend Payout is the same between state-owned and non-state enterprises and companies listed on different exchanges (HNX and HOSE). In addition, the results also indicate that there is no influence of CEO overconfidence on Dividend Yield in state-owned enterprises as well as companies listed on the HOSE. From the research results, the author also made some conclusions and recommendations for managers and investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1885195 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885195 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885195 Template-Type: ReDIF-Article 1.0 Author-Name: Naqeeb Ur Rehman Author-X-Name-First: Naqeeb Author-X-Name-Last: Ur Rehman Author-Name: Eglantina Hysa Author-X-Name-First: Eglantina Author-X-Name-Last: Hysa Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: The effect of financial development and remittances on economic growth Abstract: The purpose of this study is to examine the effect of financial development and remittances on economic growth across six Western Balkan countries (WBC) using panel data from 2000 to 2017. Previous studies have neglected the effect of financial development and remittances on economic growth with regard to WBC. Based on system GMM analysis, we found that financial development (broad money stock ratio) and remittances shows positive impact on economic growth across WBC. However, the interaction of financial development and remittances provide a significant and negative effect on economic growth. The results imply that remittances together with financial development substitutes the economic growth of WBC. In order to expand the financial system in the WBC, policies targeted to develop the non-deposit financial institutions and using the narrow interest rate margin policy to encourage investment and thus high economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1932060 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932060 Template-Type: ReDIF-Article 1.0 Author-Name: Fetene Bogale Hunegnaw Author-X-Name-First: Fetene Bogale Author-X-Name-Last: Hunegnaw Author-Name: Adem Feto Bedhaso Author-X-Name-First: Adem Feto Author-X-Name-Last: Bedhaso Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: A dynamic analysis on foreign bank entry Nexus economic growth in Sub-Sahara African countries Abstract: This study investigated the direct link between foreign bank entry and economic growth in Sub-Sahara African countries using a dynamic generalized method of moment estimator. It also studied a comparative analysis on banking environment for SSA countries that open and restrict banking industries to foreign ownership using descriptive analysis. The descriptive evidence suggests that SSA countries that allowed foreign bank entry have better banking service access, competition and depth than SSA countries that restrict banking industries to foreign ownership. Econometric estimation result shows a foreign bank asset share has a direct positive effect on economic growth. The findings of this study provide imperative policy implication to SSA countries that did not open their banking sector to foreign investment. They could open the door for foreign bank involvement in the banking industries and reap all the good benefits that SSA countries that open their banking industries to foreign investors are enjoying. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1991084 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1991084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1991084 Template-Type: ReDIF-Article 1.0 Author-Name: Yazidu Ustarz Author-X-Name-First: Yazidu Author-X-Name-Last: Ustarz Author-Name: Ashenafi Beyene Fanta Author-X-Name-First: Ashenafi Beyene Author-X-Name-Last: Fanta Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: Financial development and economic growth in sub-Saharan Africa: A sectoral perspective Abstract: Research on the impact of financial development on economic growth remains inconclusive. Previous empirical examination of the link is based on aggregate GDP on the presumption that each economic sector responds identically to financial development. However, the extent of credit utilisation, as well as productivity of credit, may not necessarily remain the same across sectors. This study therefore seeks to contribute to the literature by examining the effect of financial development across sectors in sub-Saharan Africa using the Generalised Method of Moments (GMM) over the period 1990–2018. Indeed, the findings show that while financial development has a positive effect on the service and agricultural sectors, a certain threshold of financial development must be reached before it can positively contribute to the growth of the industrial sector. The findings are robust to a different estimation technique. With the industrial sector considered critical for economic transformation, our findings imply that policymakers in sub-Saharan Africa need to continue to promote financial development to spur industrialization. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1934976 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934976 Template-Type: ReDIF-Article 1.0 Author-Name: Pamela Efua Ofori Author-X-Name-First: Pamela Efua Author-X-Name-Last: Ofori Author-Name: Daryna Grechyna Author-X-Name-First: Daryna Author-X-Name-Last: Grechyna Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Remittances, natural resource rent and economic growth in Sub-Saharan Africa Abstract: Despite the established link between oil rent fluctuations and remittances received, its plausible joint effect on economic growth in Sub-Saharan Africa (SSA) remains unexplored. To fill this gap, first, we determine whether natural resource rent (composed of oil rent, forest rent and natural gas rent) reduces economic growth in SSA. Second, we examine whether positive macroeconomic signals such as remittances mitigate the negative effect of oil rents on economic growth in a sample of 43 SSA countries spanning 1990–2017. We employ the pooled ordinary least squares, fixed-effects, random-effects and generalized method of moments. The resulting empirical evidence established are: (1) there is a positive impact of forest rent on economic growth whilst oil rent and natural gas rent have a negative impact on economic growth (2) there is a positive marginal and net effect on economic growth from the interaction between remittances and oil rent. In addition, the unconditional effect of remittances on growth is positive. We further perform a threshold analysis to establish a critical ground that could also influence economic growth positively. This threshold is crucial because below these critical mass remittance inflows mitigate the negative incidence of oil rent on economic growth and above the threshold, negative oil rent on growth is completely nullified. This is relevant for policy implications because policymakers are provided with actionable levels of remittances which are easily attainable in sampled countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1979305 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1979305 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1979305 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul-Aziz Iddrisu Author-X-Name-First: Abdul-Aziz Author-X-Name-Last: Iddrisu Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Paul Author-X-Name-Last: Alagidede Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Estimating bank of Ghana’s policy responses in the context of Taylor rule: Is the inflation target realistic? Abstract: Although literature acknowledges the nonlinearity in monetary policy behaviour of central banks, the appropriateness of the models used to capture the nonlinearity remains questionable. Moreover, the paucity of research on nonlinear monetary policy rules in the context of Africa and Ghana in particular is worrying, given the numerous breaches of the publicly announced inflation targets. The study estimates the Bank of Ghana’s policy responses over the inflation targeting period using the Taylor rule. We find that the Bank of Ghana reacts asymmetrically to inflation gap below and above the estimated inflation threshold of 16.4% with considerable inflation accommodation instead of targeting it. We question the logic behind the prevailing upper and lower bounds inflation target given the evidence to the contrary. The average inflation over the targeting period, the estimated inflation threshold and the structure of the Ghanaian economy raise questions of feasibility of achieving the inflation target on sustainable basis. Policy implications are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1988201 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1988201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1988201 Template-Type: ReDIF-Article 1.0 Author-Name: Obsa Teferi Erena Author-X-Name-First: Obsa Teferi Author-X-Name-Last: Erena Author-Name: Mesfin Mala Kalko Author-X-Name-First: Mesfin Mala Author-X-Name-Last: Kalko Author-Name: Sara Adugna Debele Author-X-Name-First: Sara Adugna Author-X-Name-Last: Debele Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Technical efficiency, technological progress and productivity growth of large and medium manufacturing industries in Ethiopia: A data envelopment analysis Abstract: The purpose of this study is to assess empirically how the technical efficiency scores for 43 sub-sectors and their determinants over the period 2010 to 2017 show significant variation across the sub-sectors. The study applied a two-step approach for measuring technical efficiency and its determinants. A data envelopment analysis output-orientation (i.e. both CCR & BCC models) is used to estimate technical efficiency scores for 43 sub-sectors over the period 2010 to 2017. Malmquist productivity index (MPI) output orientation is also applied to compute technical efficiency change, technological progress, and productivity change. The estimated technical efficiency score shows significant variation across the sub-sectors. Thus, we used a Tobit regression model to scrutinize what defines the variation in technical efficiency scores using three years of panel data which covers 2015 to 2017. Moreover, the 43 sub-sectors were further grouped into 14 major sub-sectors and classified as public and private to examine whether there is a technical efficiency score discrepancy between the same sub-sectors operating under different ownership. For measuring overall technical efficiency, we used two output variables (i.e., value-added and operating surplus) and two input variables (i.e., total fixed assets and a total number of employees). When reducing the sub-sectors to fourteen major groups, the operating surplus was not included, thus we used value-added and total sales as output variables and total fixed assets, the total number of employees, and cost of raw materials used in the production process as input variables. To shed light on the source of inefficiency, technical efficiency is decomposed into pure technical efficiency and scale efficiency. This study found that the sector had experienced a 37 percent technical efficiency in overall average when the CCR model was used. The study also claims that public owned subsectors are less likely to be efficient than private subsectors. The regression results show the capital expenditure ratio has a significant positive influence on technical efficiency. The Malmquist index result also shows, on average, the sector had registered a 10.5% technological progress and a 13% productivity growth over the period 2010–2017. The findings of the study would have implications for policymakers, government, and firm owners in that it offers an insight into the source of productivity growth in the sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1997160 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1997160 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1997160 Template-Type: ReDIF-Article 1.0 Author-Name: Rohit Bansal Author-X-Name-First: Rohit Author-X-Name-Last: Bansal Author-Name: Dharmendra Singh Author-X-Name-First: Dharmendra Author-X-Name-Last: Singh Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Efficiency drivers of insurers in GCC: an analysis incorporating company-specific and external environmental variables Abstract: The study aims to a comprehensive measure of listed insurance companies’ technical efficiency in GCC countries and benchmarking, peer count summary, and measuring productivity changes in the first stage. In the second stage, the technical efficiency, pure technical efficiency, and scale efficiency scores have been regressed with internal (company variables) and external environmental variables. This paper first examines financial freedom and reinsurance activities on 60 insurers’ efficiency from all GCC countries during 2016–2019. The results suggest a positive impact of economic freedom, solvency on technical efficiency components, and the negative effect of reinsurance ceding, market concentration on GCC insurers’ technical efficiency. In productivity changes, UAE companies are doing well as compared to other countries’ insurers. Overall, GCC insurers’ efficiency is improving with pure technical efficiency having a CAGR of 2.13% and scale efficiency a CAGR of 2.96%. Based on the peer count summary, only the UAE and Saudi Arabia’s companies can be benchmarked against another insurance company. Also, this research is one of the most comprehensive ones in the GCC region; this is the first study on an extensive data set to the best of our knowledge, including conventional insurers operating across GCC countries. This study is based on 60 insurers listed on the stock exchanges of six GCC countries. This will also be the first empirical evidence on the GCC insurers, which measures the impact of company-specific variables and unique environmental variables separately on the two components of technical efficiency using Tobit regression. The positive association of competition and financial freedom with technical efficiency may encourage regulators and policymakers to ensure less government intervention and give more support and freedom for a better competitive insurance industry. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1922179 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1922179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1922179 Template-Type: ReDIF-Article 1.0 Author-Name: Fernando Zanella Author-X-Name-First: Fernando Author-X-Name-Last: Zanella Author-Name: Peter Oyelere Author-X-Name-First: Peter Author-X-Name-Last: Oyelere Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Is financial development crucial for all economies? Abstract: The relationship between financial development and economic growth has long been recognized and acknowledged in the literature. However, the dynamics of the relationship is yet to be settled, as illustrated by contradictory theoretical and empirical findings. This paper investigates the relationship by splitting 108 countries into sub-groups holding a particular common specificity: level of competitiveness, the legal system, new business entry rate, and income level. Data for this study were collected for 108 countries from a variety of sources for the period 1980 to 2017. Given the large number of countries and periods covered by the study, to control for financial depth without losing country-specific features due to homogeneous aggregation, we employed the Dumitrescu-Hurlin Granger non-causality test to achieve the objectives of this study. The results of the study suggest that financial development plays a significant role for high-income countries, or countries with a high level of innovation, which in turn, correlated with countries with common law legal framework. However, such level of significance could not be established for developing countries Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1923883 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923883 Template-Type: ReDIF-Article 1.0 Author-Name: Chinnadurai Kathiravan Author-X-Name-First: Chinnadurai Author-X-Name-Last: Kathiravan Author-Name: Murugesan Selvam Author-X-Name-First: Murugesan Author-X-Name-Last: Selvam Author-Name: Balasundram Maniam Author-X-Name-First: Balasundram Author-X-Name-Last: Maniam Author-Name: Munusamy Dharani Author-X-Name-First: Munusamy Author-X-Name-Last: Dharani Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Effect of weather on stock market: A literature review and research agenda Abstract: The paper presents a systematic review of the research work, published on the topic of weather effects and stock market behavior. The objectives of the study were to examine the current status of research, by collecting the literature, in the area of weather effects and stock market behavior. In the process, the study would reveal the current status to the budding researchers. In this study, the authors critically assessed and examined fifty one research studies, published from 1993 and 2019, in different regions across the globe. A systematic literature review for this study has been made using Google Scholar. The present study found that number of research works on the weather effects and stock market behavior had increased marginally during the recent time period, especially from the beginning of Twenty First Century. Among the different weather factors, temperature was wildly used for research. Finally, this paper reveals some significant research gap to advance the research agenda for future research. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1971353 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971353 Template-Type: ReDIF-Article 1.0 Author-Name: Khalid Adnan Saeed Author-X-Name-First: Khalid Adnan Author-X-Name-Last: Saeed Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Revisiting the natural resource curse: A cross-country growth study Abstract: This paper revisits the original natural resource curse study conducted by Sachs and Warner to investigate the relationship between natural resource dependence and per capita growth in recent data consisting of 68 developing countries that includes 14 Middle East & North Africa (MENA) and 6 Gulf Cooperative Council (GCC) countries between 1994–2014. Using a cross-country data and modeling we find robust evidence of a negative association between per capita growth and natural resource dependence. This negative affect is especially prominent in oil-rich MENA countries. The presence of a natural resource curse presents challenges to policymakers especially in countries who have been taking measures to diversify their income-base. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2000555 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2000555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2000555 Template-Type: ReDIF-Article 1.0 Author-Name: Esat Durguti Author-X-Name-First: Esat Author-X-Name-Last: Durguti Author-Name: Qazim Tmava Author-X-Name-First: Qazim Author-X-Name-Last: Tmava Author-Name: Filloreta Demiri-Kunoviku Author-X-Name-First: Filloreta Author-X-Name-Last: Demiri-Kunoviku Author-Name: Enver Krasniqi Author-X-Name-First: Enver Author-X-Name-Last: Krasniqi Author-Name: Wai Ching Poon Author-X-Name-First: Wai Ching Author-X-Name-Last: Poon Title: Panel estimating effects of macroeconomic determinants on inflation: Evidence of Western Balkan Abstract: This study analyzes the relationship between macroeconomic variables that influence inflation. Through our research, we will analyze the influence of GDP growth, remittances, level of exports, level of imports, and foreign direct investments on the inflation rate for the Western Balkan. The research has applied panel data using dynamic approaches such as fixed effects, and Arellano–Bover/Blundell–Bond estimation to determine relationships between variables and their impact on inflation. The research used annual series data from 2003 to 2019 provided by the World Bank and the International Monetary Fund. Likewise, to test a stationary of data was applied three estimations for the unit root test and Johansen cointegration. The research results reveal that in the short run, all variables influence the inflation rate, except for foreign direct investment, which has insignificant influence. Moreover, the analyses through the Arellano–Bover/Blundell—Bond estimation reveal that GDP growth, imports, and foreign direct investments have a positive influence on the inflation rate, while, working remittances and exports have a negative influence on the inflation rate. These conclusions provide sufficient information for future debates and examination on macroeconomic variables that potentially affect inflation. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1942601 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1942601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1942601 Template-Type: ReDIF-Article 1.0 Author-Name: Leena Ajit Kaushal Author-X-Name-First: Leena Ajit Author-X-Name-Last: Kaushal Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Impact of institutional and regulatory quality on FDI inflow: case of a developing Indian economy Abstract: The study examines the impact of regulatory & institutional quality (IQ) on FDI inflows, focusing on select factors to explain evolving FDI patterns in India over 2006–2019. India, one of the top 5 FDI attracting nations in the Asian region, is taking various measures to improve IQ and encourages FDI. The reforms facilitating the Ease of starting business and reduction in EPU significantly and positively impacts FDI; however, the measures easing trade across border and resolving insolvency has a positive but insignificant impact of FDI. In addition, deteriorating Labor Freedom significantly inhibits FDI. The results demonstrate that improvement in IQ positively influences FDI; however, the IQ impact is insignificant in some cases due to the weak institutional structure. The study suggests that IQ factors tend to be pivotal in attracting FDI inflows, but India is yet to arrive. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1985201 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1985201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1985201 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Esaku Author-X-Name-First: Stephen Author-X-Name-Last: Esaku Author-Name: Miao Wang Author-X-Name-First: Miao Author-X-Name-Last: Wang Title: The short- and long-run relationship between trade openness and economic growth in Uganda Abstract: Using data covering the period from 1983 to 2019, we apply the autoregressive distributed lag (ARDL) bound testing approach to investigate whether trade openness has spurred economic growth in Uganda. The extant literature shows that trade openness increases economic growth, but this empirical evidence remains contested. Our empirical results on the long-run relationship reveal the existence of a positive and statistically significant relationship between trade openness and economic growth. Except for the use of exports to measure trade openness, using openness index and imports to proxy for trade openness indicates that an increase in the above indexes leads to increased economic growth in the long-run. In the short-run, however, more openness, exports and imports lead to increased economic growth. This implies that a significant proportion of economic growth in Uganda has been due to short-run increase in the country’s openness, more exports and imports. This paper confirms that using openness and imports indexes to proxy for trade yields more robust results compared to the use of export indices. At the policy level, these results show that encouraging more trade and imports that embody technology or intermediate inputs is essential in the production process could increase economic growth in the long-run. In the short-run, expanding the scope of exports and imports is important for economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1999060 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999060 Template-Type: ReDIF-Article 1.0 Author-Name: El Mehdi Ferrouhi Author-X-Name-First: El Mehdi Author-X-Name-Last: Ferrouhi Author-Name: Omar Kharbouch Author-X-Name-First: Omar Author-X-Name-Last: Kharbouch Author-Name: Samir Aguenaou Author-X-Name-First: Samir Author-X-Name-Last: Aguenaou Author-Name: Muhammad Naeem Author-X-Name-First: Muhammad Author-X-Name-Last: Naeem Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Calendar anomalies in African stock markets Abstract: In this paper, we investigate the day of the week and the month of the year effects in African stock markets, both in the Gregorian and the Hijri calendars. Specifically, we investigate Monday effect, Friday effect, January effect and Ramadan effect, from January 2009 to December 2019, using OLS regression with robust standard errors. January is the first month of the Gregorian calendar, while Ramadan is the 9th and the most sacred month of the lunar calendar, used in Muslim countries. The results obtained show the existence of Monday effect in BRVM and Namibia, Friday effect in Kenya and Namibia, January effect in Botswana and Zambia, December effect in Botswana, BRVM and Egypt and Ramadan effect in Tunisia. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1978639 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978639 Template-Type: ReDIF-Article 1.0 Author-Name: Sanderson Abel Author-X-Name-First: Sanderson Author-X-Name-Last: Abel Author-Name: Juniours Marire Author-X-Name-First: Juniours Author-X-Name-Last: Marire Author-Name: Vassilios Papavassiliou Author-X-Name-First: Vassilios Author-X-Name-Last: Papavassiliou Title: Competition in the insurance sector – An application of Boone indicator Abstract: Competition in the insurance sector is an important element since it leads to the reduction in risk and uncertainty, enables efficient resources allocation, enhances product innovation, enhances economic growth and improves efficient production of financial services. The study evaluates competition in the insurance sector in Zimbabwe during the period 2010–2017. Of interest is the evolution of competition during the period when the economy had transitioned from hyperinflation. How competition evolved during this period is of interest due to the changes in macroeconomic management styles that were experienced after the hyperinflation period. Of novelty to this study is the use of the Boone Indicator, one of the new empirical industrial organisation methods. The method is premised on the idea that efficient firms achieve higher market shares or profits. The study established that competition was moderate in the insurance industry during the study period. The results further revealed that there was no significant difference in competition in the periods 2013–2017 and 2010–2012. The study recommends that the government should ensure that the macroeconomic environment is conducive for businesses to compete. The economy should be prevented from sliding into hyperinflationary environment, which negatively impacts policy holders as well as insurance companies. The government should put in place pro-growth policies to ensure insurance companies thrive. It has been shown that since the economy started experiencing moderate growth rates, there has been increased activity among insurance companies. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1974154 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1974154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1974154 Template-Type: ReDIF-Article 1.0 Author-Name: Abebaw Hailu Fikire Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikire Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Determinants of urban housing choice in Debre Berhan Town, North Shewa zone, Amhara Region, Ethiopia Abstract: The main objective of the study is to examine the determinants of urban housing choice in Debre Berhan town, Amhara Regional State, Ethiopia. For this purpose, the study used both primary and secondary data. The data were obtained from 395 household heads selected from four kebeles. A multinomial logit model was used to examine the determinants of urban housing choice. Accordingly, it is found that age, gender, educational level, the price of the housing, years of residence, income of the head and access to credit are the major the determinants of urban housing choice. This study suggests that town administration, zonal and the regional governments should work together with financial institution to provide housing loans to the households so as to construct or purchase house. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1885196 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885196 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Abendin Author-X-Name-First: Simon Author-X-Name-Last: Abendin Author-Name: Pingfang Duan Author-X-Name-First: Pingfang Author-X-Name-Last: Duan Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: International trade and economic growth in Africa: The role of the digital economy Abstract: This paper examines the role the digital economy plays in international trade impacts on Africa’s economic growth based on 53 countries’ sample from 2000–2018. We further divided the sample into five sub-regions, and the results are estimated by POLS, random and fixed effects, and the GMM models. The findings showed that (1) trade only has positive effects on economic growth when interacted with the digital economy in the POLS estimations, (2) Trade has a significantly positive impact on economic prosperity without and with the interactive term in the RE, FE, and the sys-GMM estimations, (3) the output elasticities of capital and labor have positive and negative impacts on economic growth, respectively, (4) the regressions for the sub-sample yielded statistically significant differences in the output elasticities for the indicators. The study recommends that concentrated efforts be directed towards developing the digital economy to ensure international trade’s full economic effect in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1911767 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911767 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Farhan Basheer Author-X-Name-First: Muhammad Farhan Author-X-Name-Last: Basheer Author-Name: Shuchi Gupta Author-X-Name-First: Shuchi Author-X-Name-Last: Gupta Author-Name: Rabeeya Raoof Author-X-Name-First: Rabeeya Author-X-Name-Last: Raoof Author-Name: Waeibrorheem Waemustafa Author-X-Name-First: Waeibrorheem Author-X-Name-Last: Waemustafa Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Revisiting the agency conflicts in family owned pyramidal business structures: A case of an emerging market Abstract: The agency problem strikes as an ethical, practical, and economic issue in equal measures. The principal objective of the current research is to trace the nature of the agency conflicts in the family-owned pyramidal business groups of corporate Malaysia and how they affect the firm value. It is argued that the principal͐–principal (PP) conflict is more severe in family-owned business firms. To achieve the objectives of the current study, the GMM and the fixed effect estimates are used. In addition, to find the difference between family-owned firms and family-owned firms in the pyramidal business, we have employed the Mann–Whitney test. The null hypothesis is accepted which indicates that the impact of the PP conflict among family firms is different from those in pyramidal business groups. The final sample of 420 firms listed on the Bursa Malaysia is chosen for the analysis. The results of the current study provide support to the hypothesized results that the PP conflict is severe in family-owned groups and has a significant effect on firm value. The findings of the current study also provide support that the PP conflict is prevalent in Malaysia, supporting the earlier evidence regarding the expropriation of minority shareholders rights reported in the studies carried out on samples of Malaysian non-financial firms. This is also in line with our measure of PP conflict severity, which is high in pyramidal family firms. Overall, the results provided support to the expropriation hypothesis. Thus, the findings of this study also confirm the view that in family-owned Malaysian firms, the ethical dilemmas of wealth expropriations do exist and are more intense in the pyramidal family-owned business structures. Instead of relying on traditional methods, the current study employed a synthetic measure to gauge the PP conflict. The study which is among the pioneer on the expropriation of minority shareholders will be helpful for policymakers, researchers and finance professionals in understanding the issues related to principal-principal conflict, and firm value in family-owned pyramidal business groups of Malaysia. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1926617 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1926617 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1926617 Template-Type: ReDIF-Article 1.0 Author-Name: Joshua Nsanyan Sandow Author-X-Name-First: Joshua Author-X-Name-Last: Nsanyan Sandow Author-Name: Emmanuel Duodu Author-X-Name-First: Emmanuel Author-X-Name-Last: Duodu Author-Name: Eric Fosu Oteng-Abayie Author-X-Name-First: Eric Fosu Author-X-Name-Last: Oteng-Abayie Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Title: Regulatory capital requirements and bank performance in Ghana: evidence from panel corrected standard error Abstract: Over the past fifteen years, the Bank of Ghana has revised the minimum capital requirement to stabilize the banking sector. Motivated by the unintended consequences of regulatory capital, this paper provides empirical evidence between minimum capital requirement and bank performance relationship in Ghana. We draw data on a sample of 20 universal banks spanning 2008 to 2017. The Panel Corrected Standard Errors (PCSE) estimation was adopted. The results indicate that the minimum capital requirement has a significant positive impact on bank performance measured by return on assets (ROA) and equity (ROE). However, the effects turned negative after 1.7% and 1.6% performance thresholds for ROA and ROE, respectively. Given this, the study establishes the relationship between capital requirement and bank performance in Ghana to be double-edged. The capital requirement improves bank performance initially, but bank performance worsens after the threshold values. Policy implications for Ghana’s banks, regulators, and policymakers have been provided based on the findings. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2003503 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2003503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2003503 Template-Type: ReDIF-Article 1.0 Author-Name: S. N. Jator Author-X-Name-First: S. N. Author-X-Name-Last: Jator Author-Name: R. K. Sahi Author-X-Name-First: R. K. Author-X-Name-Last: Sahi Author-Name: M. I. Akinyemi Author-X-Name-First: M. I. Author-X-Name-Last: Akinyemi Author-Name: D. Nyonna Author-X-Name-First: D. Author-X-Name-Last: Nyonna Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Exponentially fitted block backward differentiation formulas for pricing options Abstract: A family of Exponentially Fitted Block Backward Differentiation Formulas (EFBBDFs) whose coefficients depend on a parameter and step-size is developed and implemented on the Black–Scholes partial differential equation (PDE) for the valuation of options on a non-dividend-paying stock. Specific EFBBDFs of order 2 and 4 are applied to solve the PDE after reducing it into a system of ordinary differential equations via the method of lines. The methods are shown to be superior to the well-known Crank–Nicolson method since they are $$L$$L-stable and do not exhibit oscillations usually triggered by discontinuities inherent in the payoff function of financial contracts. We confirmed the accuracy of the methods by initially applying them to a prototype example based on the one-dimensional time-dependent convection–diffusion equation with a known analytical solution. It is demonstrated that the American put can be exercised early by computing the hedging parameter “delta”, which specifies the condition for early exercise of the put option. Although the methods can be used to price all vanilla options, we elect to focus on the put due to its optimality. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1875565 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1875565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1875565 Template-Type: ReDIF-Article 1.0 Author-Name: Linh Hoang Vu Author-X-Name-First: Linh Hoang Author-X-Name-Last: Vu Author-Name: Le Quy Dinh Nguyen Author-X-Name-First: Le Quy Dinh Author-X-Name-Last: Nguyen Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Agricultural productivity growth in vietnam in reform and post-reform period Abstract: This paper applies the Malmquist productivity index method to measure total factor productivity (TFP) growth in Vietnamese agriculture using panel data from 60 provinces in Vietnam during 1985–2000 when Vietnam implemented widespread de-collectivization, trade liberalization, and reformed her agriculture sector. This study indicates that most of the early growth in Vietnamese agriculture during the first reform period 1985–1990 was due to TFP growth in response to incentive reforms. During the second reform period 1990–1995, the growth rate of TFP fell, and Vietnam’s agricultural growth was mainly caused by drastic investment in capital. In the post-reform period (1995–2000), TFP growth increased again, though still much lower than 1985–1990. Overall, the TFP growth rate in the whole period is estimated at 1.96 percent, contributing to 38% of Vietnam’s agricultural growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1972524 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1972524 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1972524 Template-Type: ReDIF-Article 1.0 Author-Name: Bacem Benjlijel Author-X-Name-First: Bacem Author-X-Name-Last: Benjlijel Author-Name: Hatem Mansali Author-X-Name-First: Hatem Author-X-Name-Last: Mansali Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The expected sharpe ratio of efficient portfolios under estimation errors Abstract: This paper aims to develop a feasible estimator of the Sharpe ratio that the investor would expect from estimated efficient portfolios. Based on the analytical expression of the expected Sharpe ratio, we construct an estimator that captures all the errors involved in the estimated efficient portfolios. We conduct a simulation study and find that our estimator delivers the lowest mean square error with comparison to existing estimators. Our result is robust to sample size, to number of assets and to non-normality. It works well, particularly, with short sample sizes. The superior performance of the proposed estimator is confirmed through empirical analysis. The ex-ante method developed in this work allows the investor to assess the value of efficient portfolios before investing capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1943910 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1943910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1943910 Template-Type: ReDIF-Article 1.0 Author-Name: Varsha Sureshkumar Author-X-Name-First: Varsha Author-X-Name-Last: Sureshkumar Author-Name: P Balasubramanian Author-X-Name-First: P Author-X-Name-Last: Balasubramanian Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Risk and returns of Indian listed firms after demonetisation Abstract: This paper aims to understand the impact of demonetisation on the returns of listed firms in the NSE, as well as changes to their corresponding industry level systematic risk. Firstly, this paper examined a larger sample of Indian listed firms and a broader group of industries in its analysis compared to prior studies. Secondly, the changes to systematic risk due to demonetisation across industries with listed firms was measured. The study uses event study methodology over a thirteen-day event window (six days before and six days after the announcement) to test for abnormal returns across 1,054 listed firms. A regression analysis of 57 industry level returns is performed to test for changes in systematic risk. Significant negative abnormal returns are found for over 100 firms and 12 out of the 57 industry divisions in the sample. The same group of industries also show an increase in their systematic risk in the short run. This indicates that parts of the formal economy were also seriously affected by demonetisation. However, our paper does not find any long-term effect due to demonetisation. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1920688 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920688 Template-Type: ReDIF-Article 1.0 Author-Name: John Chiwuzulum Odozi Author-X-Name-First: John Chiwuzulum Author-X-Name-Last: Odozi Author-Name: Abigail Gbemisola Adeyonu Author-X-Name-First: Abigail Gbemisola Author-X-Name-Last: Adeyonu Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Household-level determinants of employment and earnings in rural Nigeria Abstract: Despite the extensive literature on rural poverty outcome, the labour employment channel has not been carefully investigated for rural Nigeria. The paper used the socioeconomic data from the three waves of the Nigerian General Household Survey Panel (2010/2011, 2012/3013 and 2015/2016 to examine the nature of household employment. By exploiting the panel nature of the data, we used a logit model and fixed effect approach to analyze the factors determining the employment expansion and earnings. From the descriptive statistics, agricultural employment sectoral share remains substantial but declined over the period considered. The study finds that much of the employment in rural Nigeria during the period 2010 to 2015 is farm self-employment. Though declining, it is two times the non-farm employment share and five times wage employment share. Wage employment is least and declining during the period covered. Findings from the econometric analysis suggest rural programmes that promote rural infrastructural, human capital development, networking, higher income and the diversity of income. It is an imperative policy goal to create an enabling environment for productivity and employment-intensive growth across all sectors of the economy particularly in agriculture. . Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1982232 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1982232 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1982232 Template-Type: ReDIF-Article 1.0 Author-Name: Ranjeeta Sadhwani Author-X-Name-First: Ranjeeta Author-X-Name-Last: Sadhwani Author-Name: M. U. R. Bhayo Author-X-Name-First: M. U. R. Author-X-Name-Last: Bhayo Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Momentum and disposition effect in the US stock market Abstract: This paper examines whether momentum drives the disposition effect and vice versa in the US stock market. The results from the analysis of the Fama-Macbethregressions show that the disposition effect drives momentum but not the other way around. Furthermore, we find that this relationship varies over time. Along with the disposition effect, size also has an impact on the momentum. Therefore, the relationship between momentum and disposition effect is examined based on size deciles, and results demonstrate that the relationship does not vary significantly with the size of stocks. However, both the cumulative returns and capital gain varies monotonically with the size of stocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1999004 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999004 Template-Type: ReDIF-Article 1.0 Author-Name: Aritra Pan Author-X-Name-First: Aritra Author-X-Name-Last: Pan Author-Name: Arun Kumar Misra Author-X-Name-First: Arun Kumar Author-X-Name-Last: Misra Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: A comprehensive study on bid-ask spread and its determinants in India Abstract: Determinants of bid-ask spread have been explored significantly for low-frequency datasets in many developed markets. Researchers have identified share price, traded volume, market–capitalization, return volatility, and number of trades as the prime spread drivers. However, the validity of these determinants has not been explored in high-frequency trading. The present study attempts to articulate the validity of low-frequency determinants of the bid-ask spread in high-frequency trading. It used “bigglm” concept to estimate various determinants of spread, one of the study’s major contributions. The study found a positive relation between market–capitalization and spread, supporting the theory that a higher trading volume cannot decrease the bid-ask spread. Explanatory variables are all significant and show different impacts in different market conditions and sectors. For pooled data, share price, traded volume, quote return, trading frequency, and return volatility are in inverse relation with the spread. The study investigates sectoral determinants of the bid-ask spread to understand sector-specific influences. It also explores the influence of up and down market, settlement cycles, opening and closing intervals, and price and market-cap on determinants. The findings have significance regarding influence on the market microstructure for trading, designing of trading liquidity, and reduction of transaction cost. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1898735 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898735 Template-Type: ReDIF-Article 1.0 Author-Name: Denis M. Becker Author-X-Name-First: Denis M. Author-X-Name-Last: Becker Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: The difference between Modigliani–Miller and Miles–Ezzell and its consequences for the valuation of annuities Abstract: This paper addresses the differences between the Modigliani-Miller [M&M] model (1958, 1963) and the Miles-Ezzell [M&E] model (1980, 1985). The main difference between these two models concerns the stochasticity of the free cash flows. While M&M assumes a strictly stationary process, M&E’s process is a martingale. However, this subtle difference has not been fully exposed, and previous literature has produced partly erroneous statements or inconsistent valuation models. Therefore, the main objective of this paper is to illustrate and accentuate the effect of these two mutually exclusive stochastic processes on the timely behavior of cash flows, discount rates, and values of the firm, equity, debt, and tax shield. For this purpose, we perform a numerical experiment that allows the determination of values and discount rates by means of the risk-neutral approach. We show that in the M&E model, all cash flows and values are path-dependent, while they are not in M&M’s world. Furthermore, in M&E’s model, all discount rates are time-invariant, except for the discount rate applied to tax shields, which depends on the lifetime of the cash flows. Contrarily, in the M&M setup, all discount rates change across time, except for the constant discount rate of the tax shield. This has consequences for the applicability of the well-known present-value formula for annuities and for building consistent valuation models for both finite and perpetual cash flows. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2020.1862446 File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862446 Template-Type: ReDIF-Article 1.0 Author-Name: Teshager Mazengia Asratie Author-X-Name-First: Teshager Mazengia Author-X-Name-Last: Asratie Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Determinants of financial development in Ethiopia: ARDL approach Abstract: Sustainable economic growth requires financial sector development. However, financial development is low in Ethiopia. Hence, the main objective of the study was to examine determinants of financial development in Ethiopia. Annual data from 1980 to 2019 was used and examined by ARDL estimation technique. Private sector credit and money supply as percentage of GDP were used as dependent variables. Independent variables include external debt, reserve requirement, real exchange rate, lending interest rate, inflation, political freedom index, trade openness and economic growth. Broad money supply model is positively affected by political freedom index, economic growth and trade openness both in the short run and long run. While it is negatively affected by interest rate and reserve requirement. However, real exchange rate has negative effect in the long run and insignificant effect in the short run. On the other hand, credit to private sector model is positively affected by inflation, and political freedom, economic growth and trade openness. While it is negatively affected by external debt, reserve requirement and lending interest rate. Error correction estimation result of credit to private sector model shows the adjustment coefficient is −0.263 and statistically significant at 5% level of significance, which means short run deviation from long run equilibrium is adjusted at a rate of 26.3%. The adjustment coefficient for broad money supply model is −0.254. The study recommends that the government needs to improve trade and the quality of factors of production, reduce reserve requirement, reducing interest rate on lending, political. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1963063 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1963063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1963063 Template-Type: ReDIF-Article 1.0 Author-Name: Somlanare Romuald Kinda Author-X-Name-First: Somlanare Romuald Author-X-Name-Last: Kinda Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Does the green economy really foster food security in Sub-Saharan Africa? Abstract: Over the last decade, the green economy concept has emerged as a fundamental policy framework for sustainable development in developing countries. This paper contributes to the current debate by providing an empirical investigation of the effect of the green economy on food security in 35 Sub-Saharan African countries for the period of 2001–2015. The results provide evidence that green economy indicators have controversial effects on food security (food availability and the proportion of undernourished people). Indeed, the results show that biofuels contribute to decreased food security in Sub-Saharan African countries, whereas renewable energy improves food security. Carbon dioxide emissions have no effect on food security. The results are robust to alternative robustness checks, such as the two-step Generalized Method of Moments (GMM) system. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1921911 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921911 Template-Type: ReDIF-Article 1.0 Author-Name: Abebaw Hailu Fikire Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikire Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: Determinants of residential house rental price in Debre Berhan Town, North Shewa Zone, Amhara Region, Ethiopia Abstract: This study aims to investigate the determinants of residential house rental price in Debre Berhan town, North Shewa Zone, Amhara Region, Ethiopia. For this purpose, the study used both primary and secondary data. The data were obtained from 385 sample respondents. Questionnaires were used to collect the necessary data. Descriptive and inferential statistics were employed to analyze the data. Ordinary least square estimation technique was used to examine the determinants of residential house rental price. It found that floor material, age of the house, land size, access to water, near to amenities and the numbers of the bedroom are the determinants of residential house rental price in Debre Berhan Town, North Shewa Zone. The study suggests that zonal and regional governments need to establish residential house rent control programs to stabilize the unaffordable rental price of houses in Debre Berhan Town. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1904650 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1904650 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1904650 Template-Type: ReDIF-Article 1.0 Author-Name: Yaregal Tilahun Author-X-Name-First: Yaregal Author-X-Name-Last: Tilahun Author-Name: Lanouar Charfeddine Author-X-Name-First: Lanouar Author-X-Name-Last: Charfeddine Title: The cost and benefit analysis of climate change adaptation strategies among smallholder crop producers in the case of Sekela district, West Gojjam zone, Ethiopia Abstract: Climate change has adversely affected the livelihoods of people in Ethiopia since a large proportion of the population is heavily dependent on agriculture as their adaptive capacities are perceived to be below. Therefore, this study aimed to identify determinants of farmer adaptation strategies with their costs and benefits of each adaptation strategy. The data were collected from 155 farm households using a random sampling method through semistructured questionnaires. The result of the multivariate probit model revealed that the likelihood of farmers to adopt adjustment of planting date, changing crop varieties, intercropping, crop rotation, irrigation, and minimum tillage were 51.6%, 61.9%, 56.1%, 38.1%, 10.3%, and 27.1%, respectively. The joint likelihood of using all adaptation strategies was 4.2%, while their failure to adopt all the adaptation strategies was 9.8%. Among the given adaptation options, intercropping, adjusting planting dates, crop rotation, and changing crop varieties are economically viable climate adaptation strategies. Regarding the intensity of adaptation, 78% of sampled respondents were used more than one adaptation option, and their NPV and BCR were higher when they used at least one adaptation option. Farmers who did not adopt any adaptation options were able to receive the lowest income per unit production. The study recommends that households should use multiple combinations of adaptation practices rather than the use of a single adaptation option. Thus, the government and stakeholders must provide educational and extension service, training, and updated climate information to smallholder crop producers to use and select the best and combination of adaptation strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1999590 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999590 Template-Type: ReDIF-Article 1.0 Author-Name: Subroto Rapih Author-X-Name-First: Subroto Author-X-Name-Last: Rapih Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries Abstract: This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial institutions on the level of domestic credit in 74 developing countries between 2005 and 2017. Through dynamic panel data estimation, this study yields four main findings. First, domestic credit is closely associated with international capital inflows to the banking sector, although the increase of foreign capital inflows to financial institutions other than banks harms domestic credit. Second, the development of domestic financial institutions is essential for increasing domestic credit in developing countries. Third, increasing international capital inflows to the banking sector will stimulate the level of domestic credit in countries with less developed domestic financial institutions and vice versa. Fourth, greater uncertainty in global economic and financial market conditions suppresses domestic credit in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.2007614 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2007614 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2007614 Template-Type: ReDIF-Article 1.0 Author-Name: Tarana Azimova Author-X-Name-First: Tarana Author-X-Name-Last: Azimova Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Does financial innovation improve performance: Case study of Turkey Abstract: The mutual funds’ performance over time can be driven by a number of dynamic determinants including financial innovation. In fact, financial innovation can be considered as a key factor for improving the performance and increasing the profitability of mutual funds. The purpose of this study is to examine the process of financial innovation in Turkey and its role in accelerating the development and improvement of the performance of the mutual funds industry. This study provides a framework to analyze and evaluate the developments in financial practices over the eight-year period from 2011 to 2018. The process of financial innovation is defined as new financial products and services. Based on panel analysis it is observed that the activity of mutual funds responded to a great extent to innovative market forces. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1917104 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917104 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917104 Template-Type: ReDIF-Article 1.0 Author-Name: Doyo Kena Author-X-Name-First: Doyo Author-X-Name-Last: Kena Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Pastoral household’s perceptions of non pastoral activities in Yabello district, Oromia region, Ethiopia Abstract: The study examined the pastoralists’ perception towards non-pastoral activities and the proportion of pastoralist income from diverse livelihood activities in the pastoral areas of the Yabello district. Data were obtained from a survey of 180 household heads selected using a simple random sampling technique. Key informant interviews and focus group discussions were undertaken to gather data having qualitative nature. Descriptive and inferential analyses were used to analyze the data. The result shows that livestock rearing and crop production (72.49%) were the major sources of income for the respondents. A greater proportion (40% i.e. cumulative percentages of those who agree and strongly agree) of the household support that crop cultivation is as important as livestock rearing. Greater proportions (88.8%) of pastoral households also support that, practicing non-pastoral non-farm activities reduces climate-related risks, and the majority support undertaking diverse activities than relying on a single income source. The results also indicated that younger household heads, households with larger family sizes and lower livestock holding, and closer to the nearest market had positive perceptions towards non-pastoral activities. Pastoralist perception towards non-pastoral activities is gaining positive pattern and thus indicating the need for policy and development practice in line with their choice and ensuring sustainable livelihood. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1966917 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966917 Template-Type: ReDIF-Article 1.0 Author-Name: Lap Luu Author-X-Name-First: Lap Author-X-Name-Last: Luu Author-Name: Liem Nguyen Author-X-Name-First: Liem Author-X-Name-Last: Nguyen Author-Name: Robert Read Author-X-Name-First: Robert Author-X-Name-Last: Read Title: Short-term debt and trade credit: Evidence on a non-linear relationship Abstract: The literature on the relationship between bank credit and trade credit is mixed between the substitution and complementarity effects. The extant studies only investigate the linear relationship between the two factors, thus missing some important implications from any non-linear relationship that could exist. The current study investigates the linear and non-linear impacts of short-term bank debt on trade credit, using a sample of 622 listed non-financial firms in Vietnam from 2011 to 2019. The research results contribute to reconciling the mixed findings about the impact of short-term debt on trade credit by showing that short-term debt tends to reduce the use of the latter at high levels of short-term debt. However, at lower levels, the substitution effect is weaker. Together, the pattern between the two factors depicts an inverted U-shaped relationship. This implies that in the relation between the two short-term funding sources, the levels of short-term debt could indicate financial constraints firms face when accessing capital markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1975412 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1975412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1975412 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Kim-Duc Author-X-Name-First: Nguyen Author-X-Name-Last: Kim-Duc Author-Name: Hay Sinh Author-X-Name-First: Hay Author-X-Name-Last: Sinh Author-Name: Tran Bich-Van Author-X-Name-First: Tran Author-X-Name-Last: Bich-Van Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Modeling the selection of comparable firms: A novel approach for business valuation in ASEAN nations Abstract: This study aims to develop systematic models for the selection of comparable firms for firm valuation. The conventional approach argues that indicators such as firm size, growth rate, and industry should be considered for the selection of peer firms. However, this is sometimes very difficult for appraisers because it is almost impossible to find firms that capture all these criteria, especially in developing countries. Guided by business valuation theory, three indicators—profitability, earnings growth rate, and systematic risk—are applied by this study to build systematic models that simultaneously consider the many criteria affecting firm value. Using firm-level data from non-financial enterprises with 18,418 firm-year observations collected from the six ASEAN nations’ stock exchange markets from 2010 to 2020, this study contributes to business valuation literature by developing systematic models for the selection of comparable firms. The results of this study are also practically significant for valuers because our models can be applied to peer group selection as well. Additional analysis shows that our models are more appropriate or suitable than models from previous conventional approaches that use the same industry or same firm financial characteristics. Journal: Cogent Economics & Finance Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/23322039.2021.1958980 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1958980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1958980 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2140520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mandella Osei-Assibey Bonsu Author-X-Name-First: Mandella Author-X-Name-Last: Osei-Assibey Bonsu Author-Name: Ying Wang Author-X-Name-First: Ying Author-X-Name-Last: Wang Title: The triangular relationship between energy consumption, trade openness and economic growth: new empirical evidence Abstract: Our paper examines the triangular relationships between energy consumption, trade openness and economic growth of 45 countries from 1991 to 2014 using dynamic seemingly unrelated regression (DSUR) models. We confirm a bidirectional relationship among energy consumption and income, trade openness and income, trade openness and energy consumption for countries in the long run. Interestingly, the impact of energy consumption on economic growth is larger than the impact of trade openness, trade openness evidence larger impact on energy consumption than the impact of economic growth. However, the effect of economic growth on trade openness is the largest in the triangular relationships. We suggest that energy measures that aim to lessen energy usage in an economy will hinder economic growth. Our results provide insights for policymakers to understand and develop energy, trade, and environmental policies for sustainable development in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2140520 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2140520 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gideon Mensah Author-X-Name-First: Gideon Author-X-Name-Last: Mensah Author-Name: Anthony Kofi Osei-Fosu Author-X-Name-First: Anthony Author-X-Name-Last: Kofi Osei-Fosu Author-Name: Grace Nkansah Asante Author-X-Name-First: Grace Author-X-Name-Last: Nkansah Asante Title: The Effects of Public Sector Management and Institutions on Stock Market Development in Sub- Saharan Africa Abstract: Recently, sub-Saharan Africa (SSA) stock markets have received an exceptional attention as a market of hope and future. Hence, policy-makers, investors and financial analysts have been striving to ameliorate the factors that are detrimental to stock market development in SSA. Given this, the primary focus in literature has been based on the role that institutions play in influencing stock market development in SSA. Hence, this study employed fixed and random effect estimations technique on a balanced panel data of six (6) selected SSA countries to explore the impact of public sector management and institutions on stock market development in SSA for the period 2005–2018. This study found that, on average, countries with quality public sector management and institutions have been able to improve on their stock market development compared with countries without quality public sector management and institutions. In disaggregating the impact of public sector management and institutions into West and East countries in SSA, the study further demonstrated that public sector management and institutions enhance stock market development in these countries in SSA. However, we found that the effect of public sector management and institutions is insignificant in the East Africa communities (EACs). Based on these results, the study recommends that governments in SSA should put in place stringent measures that seek to enhance public sector management and institutions within SSA countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109278 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109278 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2124734_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohd Shahidan Shaari Author-X-Name-First: Mohd Shahidan Author-X-Name-Last: Shaari Author-Name: Miguel Angel Esquivias Author-X-Name-First: Miguel Angel Author-X-Name-Last: Esquivias Author-Name: Abdul Rahim Ridzuan Author-X-Name-First: Abdul Rahim Author-X-Name-Last: Ridzuan Author-Name: Nor Fadzilah Zainal Author-X-Name-First: Nor Author-X-Name-Last: Fadzilah Zainal Author-Name: Lilik Sugiharti Author-X-Name-First: Lilik Author-X-Name-Last: Sugiharti Title: The impacts of corruption and environmental degradation on foreign direct investment: new evidence from the ASEAN+3 countries Abstract: Foreign direct investment (FDI) plays a vital role in boosting economic growth and providing more job opportunities. Hence, it is imperative to investigate the factors that can spur FDI inflows in the Southeast Asia region (ASEAN) and its three largest trading partners: China, Japan, and South Korea (ASEAN+3). Besides, whether corruption can boost or decrease FDI inflows, and whether larger environmental degradation triggers FDI inflows have been sparsely explored by previous studies. The panel Autoregressive Distributed Lag (ARDL) approach is employed to analyze the period from 1995 to 2020. The results show evidence of the grabbing hand hypothesis in ASEAN+3 as decreasing corruption can positively impact FDI inflows in the long run. However, the results support that increasing environmental degradation has spurred FDI in the region, suggesting reformulating investment promotion policies towards more environmentally friendly ones. These findings are important for policymakers to formulate the right policies for boosting FDI. Punishment for those who act in a corrupt manner may act as a deterrent to would-be offenders. Using more renewable energy could help to reduce environmental degradation and boost FDI simultaneously. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2124734 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2124734 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087288_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Keshab Khatri Chettri Author-X-Name-First: Keshab Author-X-Name-Last: Khatri Chettri Title: Financial institutions depth and growth in Nepal: Sensitivity to the choice of depth proxy Abstract: This paper examines the long-run and short-run growth effects of financial institutions depth in Nepal along with the sensitivity to the choice of proxy representing financial depth. Using annual time-series data for the period from 1980 till 2019, obtained from Quarterly Economic Bulletins published by Nepal Rastra Bank, the study employed autoregressive distribute lag (ARDL) model with bounds testing procedures to examine cointegration. Domestic credit to private sector, broad money supply, total deposits and financial institution’s assets are used as proxies for financial institutions depth as indicated by World Bank. Real GDP is used to measure economic growth and the influence of macroeconomic environment is accounted by inflation and trade openness. The bounds tests found cointegration in economic growth functions and the regression results revealed that domestic credit to private sector performed better than other indicators in terms of its significant contribution to economic growth both in the long-run and the short-run. Money supply and financial deposits show significant positive contribution to growth in the long-run. The positive relationship of financial depth indicators with economic growth also supports the supply-leading (finance-led-growth) hypothesis in the long-run. Policies must be aimed at efficient allocation of affordable credit to profitable projects for short-run and long-run growth. Expansionary fiscal and monetary policy and long-term deposits are highly desirable for the long-run growth in Nepal. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087288 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087288 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087288 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2035492_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Chanyalew S. Aweke Author-X-Name-First: Chanyalew S. Author-X-Name-Last: Aweke Author-Name: Maria Sassi Author-X-Name-First: Maria Author-X-Name-Last: Sassi Author-Name: Edward Lahiff Author-X-Name-First: Edward Author-X-Name-Last: Lahiff Author-Name: Muluken G. Wordofa Author-X-Name-First: Muluken G. Author-X-Name-Last: Wordofa Title: Seasonality and food security among smallholder rural households in eastern Ethiopia: Evidence from panel data analysis Abstract: Food insecurity remains one of the major challenges in Ethiopia. There is scanty empirical evidence regarding the contribution of seasonality to household food and nutrition security. This study was conducted in eastern Ethiopia with the aim of examining seasonal household food and nutrition security and factors influencing this seasonal variation. Data were gathered from randomly selected households during pre- and post-harvest seasons. A Random Effects Generalized Least Squares (GLS) regression was employed for analysis. The result indicated considerable variation between the two seasons in terms of dietary diversity and food security. Households producing more food groups, cultivating larger size of land, having higher household income, keeping more livestock, owning cell phone, having access to cooperatives, and having access to improved drinking water as well as education were more likely to be more food secure across seasons. However, households keeping livestock in their dwelling units and households who had access to credit were negatively associated with seasonal food insecurity. Future interventions aiming at ensuring food security should pay attention to seasonality and mechanisms of improving diversified food production and household income as well as expanding education opportunities and access to cooperatives, infrastructure (mobile telephone), and sanitation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2035492 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035492 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035492 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2119694_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Amzul Rifin Author-X-Name-First: Amzul Author-X-Name-Last: Rifin Title: Marketed surplus of Indonesian rice production Abstract: Indonesian rice production has exhibited a positive increasing trend over the years. On the other hand, rice retail prices tend to fluctuate, even though the country has imported rice. One reason for this is that not all of the rice produced is sold to the market or marketed surplus. The objective of this study is to analyse the marketed surplus of Indonesian rice production and its determinants. The rice farmers’ survey conducted by Statistics Indonesia in 2014 was utilised. The Heckman two-step procedure was utilised to address the sample selectivity bias. The results indicate that the rice marketed surplus in Indonesia was 50 percent, with the highest in Java at 57percent, while outside Java, the marketed surplus was 48 percent. From the variables analysed, three variables were significant, and the sign was consistent among locations. Meanwhile, the output price has different effects on the three locations. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2119694 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2119694 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kazeem Abimbola Sanusi Author-X-Name-First: Kazeem Abimbola Author-X-Name-Last: Sanusi Author-Name: Forget Mingiri Kapingura Author-X-Name-First: Forget Mingiri Author-X-Name-Last: Kapingura Title: On the relationship between oil price, exchange rate and stock market performance in South Africa: Further evidence from time-varying and regime switching approaches Abstract: The study examines the dynamics between oil price, exchange rate, and stock market performance in South Africa using DCC-GARCH, time-varying VAR, and multivariate Markov regime switching models. Monthly data on oil price, exchange rate, and market capitalization as a measure of stock performance from 2003(01) to 2019(7) were employed. The results of DCC-GARCH model show that dynamic conditional correlation among the variable was stable with few exceptionalities. The empirical findings from time-varying VAR show existence of feedbacks from stock market to oil price. Markov regime switching VAR model results show that exchange rate and market capitalization have significant effects on oil price in booming period. The study concludes that stock market performance provides an important policy help in stemming the erratic fluctuations in oil price. Appropriate knowledge of the linkage between oil price, exchange rate and stock market performance in South African economy is important because of her heavy reliance on oil importation. The upward change in oil price has so many overlapping effects on many sectors of the economy in form of increase in cost of goods and services (inflation) and lower standard of living among others. Hike in oil price is believed to also worsen the external value of Rands. This could send some dangerous signals to foreign investors in the stock market, which may undermine the performance of the stock market. Empirical knowledge of this dynamic could assist the policy makers to come up with mitigating policies to reduce the effects of oil price volatility on other economic fundamentals. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106629 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106629 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2073003_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: An Nguyen Author-X-Name-First: An Author-X-Name-Last: Nguyen Author-Name: Tuan Nguyen Author-X-Name-First: Tuan Author-X-Name-Last: Nguyen Author-Name: Phuong Hoang Author-X-Name-First: Phuong Author-X-Name-Last: Hoang Title: The impact of corporate governance quality on capital structure choices: does national governance quality matter? Abstract: This research investigates the moderating effect of national governance quality on the corporate governance—capital structure decision relationship. Using an instrumental variable estimation technique to analyze a multinational dataset containing 23,142 firm-year observations of 3,270 firms in 59 economies from 2004 to 2014, we find evidence for the moderating role of national governance quality. Specifically, a well-functioning firm-level governance system tends to force managers to increase borrowing toward an optimal level for shareholders. The strength of the force, however, seems to decrease as national governance quality increases. Our findings suggest that a transparent and investor-friendly business environment created by the government may complement the firm-level corporate governance mechanism by reducing agency problems, thus reducing the need to use leverage as a tool to discipline managers. The results are robust to different proxies for national governance quality, corporate governance quality, and firm leverage. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2073003 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2073003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2073003 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2123889_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Endashaw Sisay Author-X-Name-First: Endashaw Author-X-Name-Last: Sisay Author-Name: Wondimhunegn Atilaw Author-X-Name-First: Wondimhunegn Author-X-Name-Last: Atilaw Author-Name: Tecklebirhan Adisu Author-X-Name-First: Tecklebirhan Author-X-Name-Last: Adisu Title: Impact of economic sectors on inflation rate: Evidence from Ethiopia Abstract: It is unclear how sectoral growth in the agriculture, industrial, and service sectors affects inflation, and the topic is also quite rare. Accordingly, the researchers in this paper examine the long- and short-term effects of agriculture, service, and industry sectors on inflation rates. In order to achieve this, the researchers applied an autoregressive distributed lag model from 1975 to 2019. In order to determine the direction of causation, the Granger causality test was conducted. The results clearly demonstrate the negative relationship between agriculture, services, population, and inflation over the long term. In the short run, previous inflation, the service sector, the second lag in population, and the agricultural sector do not reduce inflation. The industrial sector and the first lag of the population can lower inflation rates. Thus, the industry sector in the long run and the service and agricultural sectors in the short run are inefficient at reducing inflation. Inflation and the agricultural sector are causally linked in both directions. Additionally, unidirectional causality runs from industry and the service sector to inflation. Early researchers have not examined the impact of the service, industry, and agriculture sectors on inflation rate, thus offering a unique contribution to policy makers. Panel data are not used to compare the sectoral responsibility for reducing inflation in other African countries with researchers. Practically, the agriculture and service sectors on the short run, along with the industry sector on the long run, both need attention. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2123889 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123889 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2123889 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Phuc Van Nguyen Author-X-Name-First: Phuc Author-X-Name-Last: Van Nguyen Author-Name: Duc Hong Vo Author-X-Name-First: Duc Hong Author-X-Name-Last: Vo Author-Name: Toan Pham-Khanh Tran Author-X-Name-First: Toan Pham-Khanh Author-X-Name-Last: Tran Author-Name: Ngoc Phu Tran Author-X-Name-First: Ngoc Phu Author-X-Name-Last: Tran Title: Public spending and informal economy in the Asian countries Abstract: The informal economy is a complex phenomenon present, to a large extent, in both developing and developed countries. Despite an increasing focus on the nexus between public spending and the informal economy, little is known about the moderating role of budget imbalance in this relationship. This study investigates how a budget imbalance moderates the effects of public spending on the informal economy of 32 Asian countries from 2000 to 2017. We have employed the generalized method of moments and various second-generation tests in this analysis to ensure the approach is appropriate and the findings are robust. Our results indicate that increasing public spending and budget imbalance will increase the informal economy size. Interestingly, the effect of public expenditure on the informal economy will enhance with an increase in the budget imbalance. Additionally, we also find that tax burden and economic growth contribute to the increased informal economy in Asian countries. This study also offers some useful policy implications for reducing the informal economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101220 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101220 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2048341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Aschale Mekuria Shitaye Author-X-Name-First: Aschale Mekuria Author-X-Name-Last: Shitaye Title: Affordability of residential house rent market value in Hawassa city Abstract: The urban housing situation in Ethiopia is a wide gap between housing demand and actual supply in all urban centers of the country. Generally, the study aims to examine the affordability of residential house rent market value. Specifically, the study aims to assess the characteristics of rental housing, examined rent affordability; identify factors that determined rental affordability in Hawassa city, Sidama Regional State, Ethiopia. The study employed both primary and secondary data. Primary data were obtained from 219 rental households through questioners. For data analysis, the study employed both descriptive and inferential statistics. Logistics regression estimation technique was used to examine the affordability of residential house rent market value. About 68.04% of surveyed households were paid 30% or less of their monthly income to residential house rent, and 31.96% of a household were spent more than the thresholds’ income level. The findings of the study revealed that household income, marital status, number of rooms, transport access and house typology are the determinants of residential house rent market value affordability in Hawassa city, Sidama region, Ethiopia. The study suggests that government should be focused on constructing public houses, controlling the effects of illegal brokers and subsidizes private house builders through credit access, tax break down for imported construction materials and provision of land with low lease. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2048341 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048341 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2048341 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139883_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mengistu Bululta Author-X-Name-First: Mengistu Author-X-Name-Last: Bululta Author-Name: Haile Tamiru Author-X-Name-First: Haile Author-X-Name-Last: Tamiru Author-Name: Tariku Ayele Author-X-Name-First: Tariku Author-X-Name-Last: Ayele Title: Determinants of farmland degradation among farming households in West Guji Zone, Ethiopia Abstract: This paper aimed to examine the determinants of farmland degradation in the West Guji Zone. The study employed data collected in 2020 from a sample of 385 farm households selected using a simple random sampling technique. An ordered probit model was run to examine the association of explanatory variables with the severity of farmland degradation. Farm plot assessment results indicate that most farm plots were categorized as slightly degraded, followed by moderate, non-degraded, and severe degradation statuses. The study indicated that the main causes of farmland degradation were intensive cultivation without fallow, deforestation, high precipitation, overgrazing, steep slopes, and wind. The ordered probit results revealed that age of household heads, number of plots, and slope of the farmland positively and significantly influenced the severity of farmland degradation, while sex of household heads, soil conservation status, family size, education, land-to-labor ratio, and extension contact were negatively and significantly associated with the severity of farmland degradation. Therefore, the study suggests the provision of training to farming households, promotion of cost-effective modern feed resources and homemade biogas, implementation of a participatory management approach, scaling-up existing land management practices, ensuring the sustainability of natural resource use, and a close linkage between farmers and extension agents to minimize farmland degradation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139883 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139883 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2040126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Trung Duc Nguyen Author-X-Name-First: Trung Duc Author-X-Name-Last: Nguyen Author-Name: Quynh Lan Thi Du Author-X-Name-First: Quynh Lan Thi Author-X-Name-Last: Du Title: The effect of financial inclusion on bank stability: Evidence from ASEAN Abstract: After the recent global financial crisis of 2008, the attention of researchers and politicians has focused on both financial inclusion and bank stability. However, we still know little of how the former impacts the stability of financial services providers. This paper focuses on financial inclusion and its influence on bank stability. By using a sample of 102 banks in six countries of ASEAN over the period 2008–19, we achieve the result that the index of financial inclusion has a positive relationship with Zscore and a negative effect on the standard deviation of deposit growth rates and nonperforming loan ratio, which also means that higher level of financial inclusion contributes to greater bank stability. Or, to make it clearer, in an inclusive financial sector, those banks can increase more stable customer deposits and safe loans by providing banking services. The indices calculated for each dimension of financial inclusion, including accessibility, availability, and usage of the formal bank system, also have the same results. Our findings have important policy implications that ASEAN policymakers do not have to face a tradeoff between focusing on reforms to promote financial inclusion and focusing on further improvements in bank stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2040126 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2040126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2040126 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132641_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nenavath Sreenu Author-X-Name-First: Nenavath Author-X-Name-Last: Sreenu Author-Name: Ashis Kumar Pradhan Author-X-Name-First: Ashis Kumar Author-X-Name-Last: Pradhan Author-Name: Vinh Vo Xuan Author-X-Name-First: Vinh Vo Author-X-Name-Last: Xuan Author-Name: B. Koteswara Rao Naik Author-X-Name-First: B. Koteswara Rao Author-X-Name-Last: Naik Title: Impact of accounting conservatism on IPO under-pricing: evidence from India Abstract: In this paper, we investigate whether the use of accounting conservatism in India decreases IPO underpricing, which is of attention to stakeholders and supervisors. Furthermore, the study examines how asymmetry information affects the implication of accounting conservatism for IPOs. Based on a regression analysis of 527 firms that went public through IPOs of “A” shares listed on the national stock exchanges between 2000 and 2020, the paper also examines whether the relationship between conservatism and under-pricing is robust to alternative measures of accounting conservatism, mean regressions, sample exclusions, and endogenous treatment models. The research study finds that accounting conservatism is negatively associated with the degree of IPO under-pricing, and the association between accounting conservatism and IPO under-pricing is more perceptible when information asymmetry is high. The paper’s originality should shed light on what drives IPO underpricing and how it could be affected by accounting conservatism in an Indian economy, and provide find evidence that legal origin, a factor linked to the practice of conservatism, influences the relationship between under-pricing and conservatism. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132641 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132641 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2068241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Houda BenMabrouk Author-X-Name-First: Houda Author-X-Name-Last: BenMabrouk Author-Name: Wafa HadjMohamed Author-X-Name-First: Wafa Author-X-Name-Last: HadjMohamed Title: Oil shocks and the volatility of BRICS and G7 markets: SVAR analysis Abstract: Based on the Structural Vector Auto regression (SVAR) model, we study the impact of oil shocks on the volatility of the BRICS and G7 markets. We decompose oil shocks into three types: oil supply shocks, aggregate demand shocks and oil-specific demand shocks. The results indicate that there is a significant impact of oil shocks on both markets but this impact differs according to the nature of the shock and according to the studied market. We find that the reaction of all the considered market volatilities is more intensive for a demand shock especially for a specific demand shock than for a supply shock. BRICS and G7 markets volatilities react very similarly on impact to oil-specific demand shocks, while their responses present some differences to aggregate demand shocks and oil supply shocks. Our results reflect the changes experienced by the BRICS and G7 economies in recent years. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2068241 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2068241 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2143147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kabiru Hannafi Ibrahim Author-X-Name-First: Kabiru Hannafi Author-X-Name-Last: Ibrahim Author-Name: Rossanto Dwi Handoyo Author-X-Name-First: Rossanto Dwi Author-X-Name-Last: Handoyo Author-Name: Wasiaturrahma Wasiaturrahma Author-X-Name-First: Wasiaturrahma Author-X-Name-Last: Wasiaturrahma Author-Name: Tamat Sarmidi Author-X-Name-First: Tamat Author-X-Name-Last: Sarmidi Title: Services trade and infrastructure development: Evidence from African countries Abstract: Using a dynamic system GMM estimate, this study analyzed the impact of services trade on the development of infrastructure in 38 African countries over the period 2000–2020. Telecommunications, trade/transport-related, and port infrastructures were modelled as the dependent variables on services trade openness. Other sets of control variables include real GDP, financial development, gross fixed capital formation, external debt, population density, urbanization, exchange rate, and services value-added. Our empirical strategy revealed that regardless of the infrastructure indicator used in the estimate, services trade, GDP, financial development, external debt, and services value-added significantly promote the development of infrastructure in the continent. Capital formation increases trade/transport-related and reduces port infrastructure while population density increases trade/transport-related and port infrastructure. The finding further indicates that urbanization increases telecommunications and reduces trade/transport-related infrastructure. The exchange rate reduces the development of telecommunications and port infrastructure. The findings are therefore vital to present policies related to services trade and infrastructure development in African countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2143147 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2143147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2143147 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Zhuwei Li Author-X-Name-First: Zhuwei Author-X-Name-Last: Li Author-Name: Xiaoshan Wang Author-X-Name-First: Xiaoshan Author-X-Name-Last: Wang Author-Name: Chenyang Kang Author-X-Name-First: Chenyang Author-X-Name-Last: Kang Title: The impact of price limit system on the comprehensive quality of the stock market: Research on long-term and short-term effects based on submarkets Abstract: We construct a difference-in-differences simultaneous equation to study the long-term impact of price limit system on the comprehensive quality of the stock market. Moreover, we use event study method to further test short-term effect. Results show that after the setting of price limit system in China, the quality of total market and the Shenzhen stock market improves to a certain extent. But for the Shanghai stock market, in the long term, the setting of price limit system can reduce liquidity and market efficiency, in the short term, it could cause trading interference effect and price discovery delay effect; nonetheless, it could stabilize volatility and suppress volatility spillover effect. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106635 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106635 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106635 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2048484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Benedict Arthur Author-X-Name-First: Benedict Author-X-Name-Last: Arthur Author-Name: Millicent Selase Afenya Author-X-Name-First: Millicent Author-X-Name-Last: Selase Afenya Author-Name: Michael Asiedu Author-X-Name-First: Michael Author-X-Name-Last: Asiedu Author-Name: Rebecca Aduku Author-X-Name-First: Rebecca Author-X-Name-Last: Aduku Title: The bilateral J-curve between Ghana and her key trading partners Abstract: This study examines the J-Curve phenomenon of a developing country for the case of Ghana and its major trade partners: Switzerland (Swiss) and China. Using quarterly bilateral data from Q1-1995 to Q4-2018 to investigate the impact of currency depreciation on the bilateral trade balance in the short and the long run, it was established that the depreciation of Ghana Cedis in recent years could be considered as a successful policy for the trade balance improvement of Ghana. First, the real depreciation of Ghana Cedis improves Ghana’s trade balance with China and the Swiss after worsening the trade balance in the short run. Second, in the long run, the Ghana trade balance is improved from a real depreciation of Cedis, which formed 3.235 percent and 1.594 percent of Ghana’s total trade share with China and Swiss, respectively. Third, the estimates show evidence of the J-Curve phenomenon only in the cases of China, not for the Swiss. Additionally, the real income of trading partners has a positive and significant effect in the long run, indicating that an increase in the real income of partners has an important role in determining imports from Ghana. However, there is no significant effect on Ghana’s real income on the trade balance. Lastly, the results from diagnostic tests show that the estimated relationships have been stable and reliable over the last 24 years. Consequently, in line with the study results, the authors recommend several policy implications to improve the trade balance in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2048484 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2048484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2008586_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Horace Phiri Author-X-Name-First: Horace Author-X-Name-Last: Phiri Title: Public investment and export diversification in low skilled labor force economies. Evidence from sub Saharan Africa Abstract: Export diversification is a means for sustainable economic growth in low-income countries. Consequently, public investment is made in various sectors to attain diversification. In this study, we assessed the long-run elasticity of export diversification to various forms of public expenditure in economies with a dominant unskilled labor force. Public investments in agriculture, education, manufacturing and mining, and transport and ICT were found to promote diversification in the long term, but all were inconsequential in the short term except for education. We conclude that for countries where a larger proportion of the labor force is unskilled public investment in public expenditures in economic and supporting sectors can encourage export diversification. However, outcomes are as dependent on the quantity of investment as they do on quality. Deliberate strategies to promote diversification should be encouraged. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2008586 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008586 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2008586 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2145750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Suresh G Author-X-Name-First: Suresh Author-X-Name-Last: G Author-Name: Naveen Kumara R Author-X-Name-First: Naveen Kumara Author-X-Name-Last: R Author-Name: Natchimuthu Natchimuthu Author-X-Name-First: Natchimuthu Author-X-Name-Last: Natchimuthu Title: Are there bubbles in sectoral indices? Evidence from national stock exchange Abstract: Trading at prices above their fundamental values has been referred to as stock market Bubbles. These Bubbles, when Busted, can lead to a market Crash. From experience, it is a well-known fact that Bubbles initially occur in one particular sector and later spread to the aggregate markets, leading to the collapse of the entire market. This paper attempts to test the existence of bubbles in Indian Sectoral Indices. Previous studies have proven that sectoral indices do not mimic the market behaviour and the reaction of the sectors tends to be different compared to the market’s response. In that context, the paper aims to explore the existence of bubbles sector-wise rather than aggregate market-wise. The presence of bubbles is confirmed through the Superior and flawless method called the GSADF test is more flexible and reliable than RADF (Rolling Augmented Dickey-Fuller) and Supremum Augmented Dickey–Fuller (SADF) methods. Findings reveal that not all sectors experience bubbles at the same time. During the study period, the Automobile, financial services, Media and Private sector banking sectors experienced bubbles. Detected bubbles were also found at different times in these sectors. The study helps investors who focus investments in a specific sector to capitalise on price movements once they can time-stamp the occurrence of bubbles. The study provides essential input for investors in taking timely investment decisions. Further results of our study could enable policymakers to instil corrective actions to put the markets back on track when the index falsely deviates from intrinsic values. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2145750 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145750 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2145750 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2054526_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Esther Sri Astuti Soeryaningrum Agustin Author-X-Name-First: Esther Sri Astuti Soeryaningrum Author-X-Name-Last: Agustin Author-Name: Rina Martini Author-X-Name-First: Rina Author-X-Name-Last: Martini Author-Name: Budi Setiyono Author-X-Name-First: Budi Author-X-Name-Last: Setiyono Title: Evaluating rural tourism competitiveness: Application of PROMETHEE-GAIA method Abstract: This study aims to analyze the factors that determine rural tourism competitiveness in Indonesia, measure the tourism competitiveness in each rural tourism, and discover the gap between rural tourism in four provinces. This study adopts the Travel and Tourism Competitiveness Report (TTCR) Model from the World Economic Forum, and we develop the combination between the PROMETHEE method and GAIA plane. This study finds that Giri Emas is rural tourism with the highest score of competitiveness index compared to others. Generally, the tourism sector potential in Indonesia is great and must be developed with additional sense of policy to have a better performance. Stakeholders need to give attention to the Health and Hygiene sub-pillar to be ready during pandemic and post-pandemic. This study encourages policymakers to develop an appropriate strategy that can make the performance of the tourism sector better. Managerial implications are that rural tourism needs to approach various aspects other than the tourist attraction factors. Policymakers should give priority to health facilities and capacities as part of the pandemic response. This study measures the tourism competitiveness of villages with semi-structured interviews and questionnaires. Therefore, it will portray a more detail tourism in Indonesia. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2054526 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2054526 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2054526 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khalid Adnan Saeed Author-X-Name-First: Khalid Adnan Author-X-Name-Last: Saeed Title: Determinants of institutional quality and per capita growth in natural resource-dependent countries Abstract: Institutional quality has both short-term and long-term impacts on economic growth. Its short-term impact comes from the quality of institutions ex ante while its long-term impact comes from the quality of institutions ex post. Ex post institutions are shaped by the direct impact of resource dependence on regime type. The goal of this paper is to identify the components of institutional quality that has the most impact on per capita growth in resource-rich developing countries. I investigate the relationship between resource wealth and institutions and their impact on per capita growth by deconstructing institutional quality in a panel of 58 developing countries in the period between 1996 and 2014. I ask if the effect of resource wealth on growth depends on the quality of institutions, then which underlying component(s) of institutional quality have the most effect on this relationship? Results show that voice and accountability have the most influence in shaping institutional quality in a sample of developing countries, and there is evidence that it has the most relevant and significant effect on growth compared to other components of institutional quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122189 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122189 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Huy Pham Author-X-Name-First: Huy Author-X-Name-Last: Pham Author-Name: Vikash Ramiah Author-X-Name-First: Vikash Author-X-Name-Last: Ramiah Author-Name: Hanh Le Author-X-Name-First: Hanh Author-X-Name-Last: Le Author-Name: Nisreen Moosa Author-X-Name-First: Nisreen Author-X-Name-Last: Moosa Author-Name: Osama Al-Hares Author-X-Name-First: Osama Author-X-Name-Last: Al-Hares Title: The effect of the royal wedding on the UK stock market Abstract: We assess the effect of the recent royal wedding of Prince Harry and Meghan Markle on various sectors of the UK stock market over the period between November 2017 and May 2018. For this purpose, the event study methodology is used to estimate abnormal returns and conduct several robustness tests such as the Corrado ranking test, the Chesney non-parametric conditional distribution approach, the Fama-French five-factor model, the market model, allowing for market integration, and the removal of firm-specific information. In addition, we use various ARCH-type models to capture changes in systematic risk. The results show that the effect of the royal wedding is limited to few sectors. We also find that a positive national and investor mood does not always boost sectoral stock returns. In addition, we observe that announcements related to the royal wedding led to changes in both short-term and long-term systematic risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122179 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122179 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2159736_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Emmanuel Joel Aikins Abakah Author-X-Name-First: Emmanuel Joel Aikins Author-X-Name-Last: Abakah Author-Name: Guglielmo Maria Caporale Author-X-Name-First: Guglielmo Maria Author-X-Name-Last: Caporale Author-Name: Luis Alberiko Gil-Alana Author-X-Name-First: Luis Alberiko Author-X-Name-Last: Gil-Alana Title: The effects of us covid-19 policy responses on cryptocurrencies, fintech and artificial intelligence stocks: A fractional integration analysis Abstract: This paper assesses the impact of US policy responses to the Covid-19 pandemic on various technology-related assets such as cryptocurrencies, financial technology, and artificial intelligence stocks using fractional integration techniques. More precisely, it analyzes the behavior of the percentage returns in the case of nine major coins (Bitcoin—BITC, Stella—STEL, Litecoin—LITE, Ethereum—ETHE, XRP (Ripple), Dash, Monero—MONE, NEM, Tether—TETH) and two technology-related stock market indices (the KBW NASDAQ Technology Index—KFTX, and the NASDAQ Artificial Intelligence index—AI) over the period 1 January 2020–5 March 2021. The results suggest that fiscal measures such as debt relief and fiscal policy announcements had positive effects on the series examined during the pandemic, when an increased mortality rate tended instead to drive them down; by contrast, monetary measures and announcements appear to have had very little impact and the Covid-19 containment measures none at all. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2159736 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2159736 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2159736 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Seungho Baek Author-X-Name-First: Seungho Author-X-Name-Last: Baek Author-Name: Kwan Yong Lee Author-X-Name-First: Kwan Yong Author-X-Name-Last: Lee Title: Monetary policy, COVID-19 immunization, and risk in the US stock markets Abstract: We examine how monetary policy of the Federal Reserve System, COVID-19 mortality cases, and vaccinations are associated with the US stock market volatility during the pandemic period. Using the wavelet coherence analysis, we first find that there is a positive relationship between the volatility and death tolls. Second, while in the short term the sizable interest rate cut causes market instability, in the intermediate term it stabilizes the market. Third, vaccinations and the volatility have a negative relationship. Finally, the monetary policy and the volatility have much stronger coherency than the vaccination and the movements. These findings are consistent with panel regression results. Specifically, we find that the systemic COVID-19 shock in the US stock market is alleviated by an increase in the number of COVID-19 vaccination doses administered and a low and stable change in the effective federal funds rate. Furthermore, our results show that the monetary policy influences the stock market volatility significantly more than the vaccination, regardless of firm size and industry type. Thus, this study helps policymakers cope with possible systemic shocks from other infectious diseases, considering the magnitude of monetary and health policy and their short/intermediate/long-term lagging effectiveness in reducing market volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148365 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148365 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148365 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2107765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jamel Boukhatem Author-X-Name-First: Jamel Author-X-Name-Last: Boukhatem Author-Name: Mouldi Djelassi Author-X-Name-First: Mouldi Author-X-Name-Last: Djelassi Title: The bank-lending channel of monetary policy transmission in a dual banking system: empirical evidence from panel VAR modeling Abstract: This paper applied the panel VAR approach and the Impulse Response Functions to investigate the differences in the monetary transmission processes of Islamic and conventional banks using disaggregated bank-level data for Saudi Arabia over the period 2008Q1–2020Q4. Our findings show that: i) Islamic banks play a significant role in transmitting monetary policy decisions to the real economy through the balance sheet channel; ii) Islamic banks’ deposits are more responsive to oil price shocks than Islamic financing; iii) the reaction of Islamic banks to monetary policy and price shocks is relatively weaker than that of conventional banks, suggesting the existence of rigidities, such as excess liquidity, inertia in changing return rates, and the lack of funding and investment sources, and iv) the relatively significant responses of Islamic banks to various shocks make it easier for the Saudi central bank to achieve macroeconomic goals through monetary policy actions in a dual-banking system. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2107765 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2107765 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2041260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Netsanet Gizaw Author-X-Name-First: Netsanet Author-X-Name-Last: Gizaw Author-Name: Jemal Abafita Author-X-Name-First: Jemal Author-X-Name-Last: Abafita Author-Name: Tesfaye Melaku Merra Author-X-Name-First: Tesfaye Melaku Author-X-Name-Last: Merra Title: Impact of coffee exports on economic growth in Ethiopia; An empirical investigation Abstract: The major objective of this study was to examine the impact of Coffee exports on economic growth in Ethiopia. The study employed an extended generalized Cobb–Douglas production function model using data from the National Bank of Ethiopia and World Bank data base from 1980 to 2017. All the variables were non stationary at level and integrated of order I (1), and then co-integration test was conducted to ensure the existence of long-run relationship using Johansen’s approach. Consequently, all the variables confirmed co-integartion, and the conventional VECM was estimated to extract both short-run and long-run relationships, and finally, Granger causality test was conducted to diagnose the direction of causation. The finding of the study revealed that coffee exports have insignificant short-run impact on economic growth, but significant positive impact in long run. The result from causality exerted bidirectional relationship holds in Ethiopia’s coffee exports, likewise the result from IRF revealed coffee exports has a positive impact on long-run economic growth. Besides, labor force, capital formation, non-coffee exports and real effective exchange rates included in the model were found positive and significant impact in long run. Furthermore, the coefficient of ECT is −0.4883 that shows any deviations from long-run equilibrium is corrected at 48.83% annually and converges towards its long-run equilibrium. Based on the findings, it is recommended that a long-run policy towards exports in general and coffee export in particular is believed to provide significant impact on economic growth. Thus, increasing efficiency of the sector and exporting coffee would enable Ethiopia to sustain domestic economic growth. Besides, values had better be added to coffee beans before exporting and when this is done, it will lead to a higher economic growth in long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2041260 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041260 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2041260 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087289_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Randa Mohammed Shams Addin Al-Mawsheki Author-X-Name-First: Randa Mohammed Shams Author-X-Name-Last: Addin Al-Mawsheki Title: Effect of working capital policies on firms’ financial performance Abstract: This study focuses on short-term investment and financing decisions influenced by a firm’s working capital policy and the effect of working capital policies on the financial performance of manufacturing firms in Malaysia. Working capital policies were measured by working capital financing and investment policies. Working capital investment policy was measured by the ratio of current assets to total assets. Working capital financing policy was categorized as conservative working capital financing policy, aggressive working capital financing policy, and matching working capital financing policy. This study considered matching working capital financing policy, which was not considered in previous empirical studies. The data included 147 firms with 1470 firm-year observations for the period from 2010 to 2019. The results revealed that the current asset to total asset ratio significantly negatively affected firms’ financial performance. Meanwhile, a conservative working capital financing policy was positively and significantly related to a firm’s financial performance. The finding implies that Malaysian manufacturing firms can increase their operating income by adopting an aggressive working capital investment policy. The finding also implies that Malaysian manufacturing firms can increase their operating income by implementing a conservative working capital financing policy rather than a matching or an aggressive working capital financing policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087289 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087289 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087289 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khiem Dieu Truong Author-X-Name-First: Khiem Dieu Author-X-Name-Last: Truong Title: Corporate governance and financial distress: An endogenous switching regression model approach in vietnam Abstract: This study aims to determine the impact of Corporate Governance on the relationship between the macro and micro factors causing financial distress in 240 Vietnamese listed non-financial firms. The study also investigates the marginal benefits of different corporate governance practices by applying an endogenous switching regression model (ESRM). The research clarifies that a firm with strong corporate governance practice has a low probability of financial distress compared to a weak corporate governance firm. Moreover, the risk of financial distress is significantly reduced when improving the corporate governance practice. This paper contributes empirical evidence on the predominant benefit of strong corporate governance practices and marginal benefit in risk mitigation in enhancing corporate governance. The article suggests that Vietnamese firms should implement strong corporate governance to overcome the risk of financial distress. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111812 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111812 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2150132_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tyler Hull Author-X-Name-First: Tyler Author-X-Name-Last: Hull Author-Name: Luna Y. Goldblatt Author-X-Name-First: Luna Author-X-Name-Last: Y. Goldblatt Title: Are California venture capitalists the best venture capitalists? Abstract: We test if California VCs significantly outperform VCs from other US states. We additionally test in which instances California VCs outperform the other VC concentrated states of Massachusetts and New York. We find that VCs from California, Massachusetts, and New York have significantly greater probabilities of successfully exiting their investments than VCs from other states. Additionally, we show that California VCs are even more adept than VCs from Massachusetts and New York at 1. Early-stage investments, 2. Helping their entrepreneurial firms receive future rounds of financing, and 3. Helping their backed entrepreneurial firms receive higher IPO valuations and achieve superior post-IPO accounting ratios. Additional results suggest that VCs from California, Massachusetts, and New York are not only adept at selecting firms in which they invest in and continue to invest in, but they also enhance the value of the firms they select by means of monitoring their investments. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2150132 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150132 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2150132 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2021478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thanh Quang Ngo Author-X-Name-First: Thanh Quang Author-X-Name-Last: Ngo Author-Name: Khai Duc Luu Author-X-Name-First: Khai Duc Author-X-Name-Last: Luu Author-Name: Phuc Ngoc Doan Author-X-Name-First: Phuc Ngoc Author-X-Name-Last: Doan Author-Name: Hoa Thi Hoang Nguyen Author-X-Name-First: Hoa Thi Hoang Author-X-Name-Last: Nguyen Author-Name: Lai Thi Cam Phan Author-X-Name-First: Lai Thi Cam Author-X-Name-Last: Phan Author-Name: Phuoc Huu Vo Author-X-Name-First: Phuoc Huu Author-X-Name-Last: Vo Author-Name: Thi Viet Thuy Ha Author-X-Name-First: Thi Viet Thuy Author-X-Name-Last: Ha Author-Name: Danh Ngoc Nguyen Author-X-Name-First: Danh Ngoc Author-X-Name-Last: Nguyen Title: Irrigation in farmers’ land-use choices: Panel-data evidence from Viet Nam Abstract: Irrigation and land use are crucial issues in rural sustainable development. The current study modifies the sustainable framework of livelihoods to clarify the role of irrigation management in farmers’ land-use choices. A five-wave panel dataset of 1,534 farms for the period 2008–2016 in Viet Nam (with a total of 7,669 observations) is used for analyzing the influence of irrigation management on land-use selections, employing a fixed-effects model. Irrigation management is investigated in six aspects: (i) the physical conditions, (ii) the ownership of facilities, (iii) the operations, (iv) the management responsibility shift, (v) the decision-making, and (vi) the maintenance. The results reveal that the overall effects of irrigation management are so different, depending on the types of land uses. On top of that, different aspects of irrigation management have diversified influences on types of land uses. The findings lead to several important implications related to irrigation management that are relevant to farmers and policymakers. Different stakeholders, organizations/institutions, and farming households play differently effective roles in irrigation management. In general, policies can be conducted through the development of a lined irrigation network, and decision-making in operations of irrigation, maintenance of irrigation, and irrigation maintenance should give more power to farmers’ groups. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2021478 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2021478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2021478 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: T Ravikumar Author-X-Name-First: T Author-X-Name-Last: Ravikumar Author-Name: B Suresha Author-X-Name-First: B Author-X-Name-Last: Suresha Author-Name: N Prakash Author-X-Name-First: N Author-X-Name-Last: Prakash Author-Name: Kiran Vazirani Author-X-Name-First: Kiran Author-X-Name-Last: Vazirani Author-Name: T.A. Krishna Author-X-Name-First: T.A. Author-X-Name-Last: Krishna Title: Digital financial literacy among adults in India: measurement and validation Abstract: The ongoing COVID-19 pandemic has considerably promoted the usage of Digital Financial Services (DFS) in India. Therefore, exploring the various determinants influencing the DFS users is crucial for the DFS providers to understand their customers better. This study aims to identify, measure, and validate the determinants of Digital Financial Literacy (DFL) from the Indian adults who use Digital Financial Services. A sample of 384 adult DFS users from India was surveyed using a self-administered questionnaire in 2021. A multidimensional scale was developed to measure the Digital Financial Literacy in this study. The results exhibit that Digital Knowledge, Financial Knowledge, Knowledge of DFS, Awareness of Digital Finance Risk, Digital Finance Risk Control, Knowledge of Customer Right, Product Suitability, Product Quality, Gendered Social Norm, Practical Application of Knowledge and Skill, Self-determination to use the Knowledge and Skill and Decision Making are the determinants of DFL among the adults in India. Further, the users of DFS without DFL will face numerous challenges such as inability to complete the transaction, financial loss and privacy breach, etc. Hence, the study concludes that DFL is prerequisite to use DFS effectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132631 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132631 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Miklesh Prasad Yadav Author-X-Name-First: Miklesh Prasad Author-X-Name-Last: Yadav Author-Name: Sudhi Sharma Author-X-Name-First: Sudhi Author-X-Name-Last: Sharma Author-Name: Vaibhav Aggarwal Author-X-Name-First: Vaibhav Author-X-Name-Last: Aggarwal Author-Name: Indira Bhardwaj Author-X-Name-First: Indira Author-X-Name-Last: Bhardwaj Title: Correlations and volatility spillover from China to Asian and Latin American Countries: Identifying diversification and hedging opportunities Abstract: China is considered the largest emerging economy and thus investors perceived as an attractive investment. We examine the spillover effect from Chinese stock exchange to stock exchanges of Asia and Latin America, namely, India, Indonesia, Mexico, and Brazil. For empirical purpose, the study employs VARMA-Multivariate Generalized Autoregressive Conditional Heteroskedasticity (MGARCH) model with BEKK, diagonal, Constant Conditional Correlation (CCC), and finally, Dynamic Conditional Correlation (DCC) specifications. DCC model outperforms among others and identifies two diversification opportunities with Mexican (MEXICAN) and Indian stock market (BSE). Finally, the hedge ratio and portfolio weights have been calculated. The hedge ratios between China and Mexico (SSE/MEX), and China and India (SSE/BSE) were 0.01 and 0.06, respectively. This implies that a $1 long position in Chinese market (SSE) could be hedged with a 1 cent short position in Mexico (MEXICAN) and a 6 cent short position in the Indian Market (BSE). The findings of this paper provide an insight into investors and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132634 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132634 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2082670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Divine Kwaku Kutortse Author-X-Name-First: Divine Kwaku Author-X-Name-Last: Kutortse Title: Residential energy demand elasticity in Ghana: an application of the quadratic almost ideal demand systems (QUAIDS) model Abstract: The paper seeks to analyze residential energy use patterns and the price and energy expenditure responsiveness of household demand for residential energy in Ghana, using GLSS 7 data, the multivariate probit model, and the Quadratic Almost Ideal Demand System (QUAIDS) model. The study focuses on four main fuels; firewood, charcoal, and others (FCO), LPG, electricity, and kerosene. The results show that the demand for all household energy fuels in Ghana was significantly influenced by price, income, and social demographic factors. Household demand for electricity and LPG fuels are income elastic with values greater than 1, while FCO and kerosene fuels are income inelastic. The own-price elasticity also shows modern fuel (LPG and electricity) as the most responsive fuel to a price increase, even though all energy fuels are price inelastic and negative. The complementary cross-price elasticity of all fuels estimated must be carefully interpreted in the context of the cultural factors, socioeconomic factors, and the unique purposes of each fuel. After a robustness check was done in correcting for bias arising from zero energy expenditure, the study finds that the own-price elasticity for modern energy fuel (LGP and ECG) reduced slightly, even though the demand for all energy fuel remains negative and price inelastic. The study includes implications for policies geared towards reducing the price of residential energy fuels and policies to ensure clean and efficient residential energy fuels are readily accessible for consumption. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2082670 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2082670 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125523_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Buthiena Kharabsheh Author-X-Name-First: Buthiena Author-X-Name-Last: Kharabsheh Author-Name: Hussam A. Al-Shammari Author-X-Name-First: Hussam A. Author-X-Name-Last: Al-Shammari Author-Name: Nosiaba Al-Numerat Author-X-Name-First: Nosiaba Author-X-Name-Last: Al-Numerat Title: Corporate social responsibility and CEO compensation: the moderating effect of corporate governance Abstract: This study attempts to provide empirical evidence on the real motivation of CEOs to engage in corporate social responsibility. Based on the Agency and Stakeholder theories, the power of each component in the CEO compensation structure is employed. Moreover, a corporate governance index was developed to test how engagement in CSR activities affected CEO compensation in different governance practices. This study employs panel data analysis, utilizing 44 Jordanian industrial companies over the period 2010–2018. The main estimation method used in the present study was the generalized least square random effect (GLS). The findings of this paper revealed that an increase in CSR activities was accompanied by an increase in the CEO cash component compensation. Furthermore, this positive relationship was found to be more pronounced in firms with weak corporate governance, and thus supported the overinvestment hypothesis suggested by agency theory. These findings are robust under the dynamic panel estimator generalized method of moments (GMM) and using different measures of CSR. Our results implied important insights, showing that increasing CSR in the absence of effective monitoring facilitated CEOs’ self-seeking behavior that eventually may harm corporate value. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125523 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125523 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125523 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2039343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Emmanuel Agyapong Wiafe Author-X-Name-First: Emmanuel Agyapong Author-X-Name-Last: Wiafe Author-Name: Christopher Quaidoo Author-X-Name-First: Christopher Author-X-Name-Last: Quaidoo Author-Name: Samuel Sekyi Author-X-Name-First: Samuel Author-X-Name-Last: Sekyi Title: Monetary policy effectiveness in the advent of mobile money activity: Empirical evidence from Ghana Abstract: Financial development impacts a country’s economic growth and development. Due to this, many nations have sought new ways to bring about financial sector development. For developing economies, innovations in the financial sector are a sure bet for the development of financial inclusion. Mobile money is one of them. However, as the financial sector innovate, the Central Bank may lose control, rendering monetary policy ineffective. Therefore, this study examines one such innovation’s effect on monetary policy effectiveness. Using SVAR and monthly data spanning from January 2012 to December 2018, the study found that monetary policy becomes less effective under mobile money growth. The study further revealed that policy rates respond to mobile money growth in Ghana. In conducting monetary policy in Ghana, the study recommends that the monetary policy authority includes mobile money activity. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2039343 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2039343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2039343 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2118680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yukiko Konno Author-X-Name-First: Yukiko Author-X-Name-Last: Konno Title: Research on performance forecasting bias in start-up companies Abstract: If a company’s corporate performance forecasting bias is not zero and it continues to over- or under-predict actual performance, capital investments and employment will deviate from their expected levels. Therefore, forecast bias is a very important issue for a company’s management. However, few empirical studies exist on corporate performance forecasting bias in start-up companies, given the data limitations. Most existing studies have primarily analysed listed companies, and few studies particularly targeted small, medium and micro or start-up companies. Therefore, this study uses data from start-up companies that received loans from the Japan Finance Corporation (JFC) to investigate how new start-up companies’ performance forecasting bias is affected by their attributes and past performance forecasts. The results of the analysis showed that company size, profitability and optimism of past performance forecasts had a positive impact on performance forecasting bias. The results of this research contribute to the elaboration of corporate performance forecasts and are expected to be useful for corporate management when formulating management strategies and engaging in resource allocation, stakeholder decision making and policymaking. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2118680 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2118680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2118680 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2030505_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hien Nguyen Author-X-Name-First: Hien Author-X-Name-Last: Nguyen Title: Firm equity risk, bank lending standards, and the macroeconomy Abstract: This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of banks tightening their lending standards on commercial and industrial (C&I) loans, with a much larger effect for medium-large firms. The finding provides support for the Risk Management Hypothesis, under which banks decrease lending to risky borrowers to reduce credit risk. In addition, we found a one-for-one relationship between firm equity risk and C&I loan spread, signaling the channel of how firm risk transfers through the banking system to the rest of the economy. Finally, the impacts of an increase in firm risk on bank lending standards and the economy are amplified in a recession compared to an expansion. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2030505 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2030505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2030505 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2017100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sattar Khan Author-X-Name-First: Sattar Author-X-Name-Last: Khan Author-Name: Yasir Kamal Author-X-Name-First: Yasir Author-X-Name-Last: Kamal Title: Family business groups and earnings manipulation: An emerging economy perspective Abstract: This paper examines the influence of family business groups' affiliated and non-affiliated firms on earnings manipulation on a sample of Pakistani listed firms for the period of 2014 to 2019. The sample of this paper consists of 323 listed firms from the Pakistan Stock Exchange. Data were manually collected from the annual reports of the companies and State Bank of Pakistan sources. OLS and The Panel data models are used to validate the hypotheses of the study. Two proxies of earnings management have been used: one is discretionary accruals and the other is real activity manipulation. The study findings show a negative relationship of family business groups' affiliated firms with accrual-based earnings manipulation. Additionally, the magnitude of earnings manipulation is more in non-affiliated firms as compared to family business group affiliated firms. This study provides rare and initial evidence of family business groups’ relationship with earnings manipulation in Pakistan; moreover, this study extends the literature on scarce literature related to Family business groups and earnings manipulation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2017100 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2017100 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2017100 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087287_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Guizhou Wang Author-X-Name-First: Guizhou Author-X-Name-Last: Wang Author-Name: Kjell Hausken Author-X-Name-First: Kjell Author-X-Name-Last: Hausken Title: A Bitcoin price prediction model assuming oscillatory growth and lengthening cycles Abstract: This article’s motivation is to understand the volatile Bitcoin price increase. The objective is to develop price estimation methods. The methodology is to present five differential equation models estimated against the 23 July 2010–21 June 2021 Bitcoin data. The findings are that Gompertz growth fits the damped oscillations and lengthening cycles well, and tracks the early data better with the weighted least squares method. Gompertz growth combined with charged capacitor growth tracks the early data even better. Logistic growth is too slow to track the early data. Logistic growth combined with charged capacitor growth to some extent tracks the early data. Pure charged capacitor growth is unrealistic. The dates for the future bull market maxima depend to a low degree on the growth model carrying capacity approached asymptotically, assumed to match gold at $10 trillion, and to be 50 times higher. The implications for traders are to focus on the large standard deviations. Investors should understand the growth potential compared with other asset classes. Regulators should ensure financial stability by focusing on the fluctuations. Central banks should adjust the money supply while acknowledging. Bitcoin competition. Collective units should understand Bitcoin growth models to determine whether to accept Bitcoin transactions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087287 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087287 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2158007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hilary Tinotenda Muguto Author-X-Name-First: Hilary Tinotenda Author-X-Name-Last: Muguto Author-Name: Lorraine Muguto Author-X-Name-First: Lorraine Author-X-Name-Last: Muguto Author-Name: Azra Bhayat Author-X-Name-First: Azra Author-X-Name-Last: Bhayat Author-Name: Hawaa Ncalane Author-X-Name-First: Hawaa Author-X-Name-Last: Ncalane Author-Name: Kara Jasmine Jack Author-X-Name-First: Kara Jasmine Author-X-Name-Last: Jack Author-Name: Saadia Abdullah Author-X-Name-First: Saadia Author-X-Name-Last: Abdullah Author-Name: Thabile Siphesihle Nkosi Author-X-Name-First: Thabile Siphesihle Author-X-Name-Last: Nkosi Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Title: The impact of investor sentiment on sectoral returns and volatility: Evidence from the Johannesburg stock exchange Abstract: This study investigated the impact of investor sentiment impact on sectoral returns and their volatility on the Johannesburg Stock Exchange using a proxy-based composite investor sentiment index and generalised autoregressive conditional heteroscedasticity models. Overall, findings showed a negative relationship between prevailing sentiment and subsequent returns and a positive relationship between investor sentiment and sector returns volatilities. Additionally, there was evidence of variability of sentiment effects on the sector returns and volatilities. Accordingly, firms that raise financing through the stock market, portfolio managers with investments thereon and policymakers seeking to ensure that markets operate efficiently need to consider the impact of market-wide investor sentiment on volatility and returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2158007 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2158007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2158007 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Muhammad Jawad Author-X-Name-First: Muhammad Author-X-Name-Last: Jawad Author-Name: Munazza Naz Author-X-Name-First: Munazza Author-X-Name-Last: Naz Author-Name: Sohail Rizwan Author-X-Name-First: Sohail Author-X-Name-Last: Rizwan Author-Name: Zaib Maroof Author-X-Name-First: Zaib Author-X-Name-Last: Maroof Author-Name: Nauman Waheed Author-X-Name-First: Nauman Author-X-Name-Last: Waheed Author-Name: Afkar Majeed Author-X-Name-First: Afkar Author-X-Name-Last: Majeed Author-Name: Tahani Rashid Author-X-Name-First: Tahani Author-X-Name-Last: Rashid Title: Impact of long run investment of stock in developed & developing economies Abstract: The current investigation explained the dissemination of long-term share yields grounded on the historic record of share marketplace outcome in an extensive cross section of 39 developing and developed nations in time span from 1841 to 2021. Our wide-ranging data set sample mitigates apprehensions over survivor and informal data biases that outbreak other work in this range. A bootstrap simulation analysis suggests considerable ambiguity about long-horizon share market effects, and we approximate a 12% probability that a diversified stockholder with a 30-year venture time horizon will lose comparative to inflation. The findings oppose the predictable guidance that shares are safe investment avenue over long holding time periods. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085378 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085378 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085378 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2041261_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yasin Ahmed Author-X-Name-First: Yasin Author-X-Name-Last: Ahmed Author-Name: Erimase Tesfye Author-X-Name-First: Erimase Author-X-Name-Last: Tesfye Author-Name: Mohammed Ahmed Yasin Author-X-Name-First: Mohammed Author-X-Name-Last: Ahmed Yasin Title: Farmers’ willingness to pay for rehabilitation of degraded natural resources under watershed development: The case of Belesa districts, Amhara region of Ethiopia Abstract: This study aims to analyze farmers’ willingness to contribute labor for the ongoing natural resource rehabilitation interventions in watershed development in East and West Belesa Districts, Amhara region. The aim of the study to assesses farmers’ intervention in natural resource rehabilitation activities and examines the mean willingness to pay family labor required for public watershed development activities from the two districts; a total of 501 households were selected by using a multistage sampling technique. The collected data were analyzed using a descriptive and econometrics model. In the econometric part, the mixed logit model is used to analyze the mean willingness to contribute to family labor. The descriptive result showed that farmers have to improve the watershed ecosystem service through soil and water conservation, area enclosure, forestation, and reforestation natural resource management intervention methods. The mean willingness to pay contribution results from the mixed logit, revealing that the sampled households are willing to contribute for livestock fodder availability 0.79 labors per month means Farmer’s Contribute 8 daily labors per months for watershed management activity for stabilizing spring water flow 0.80 labors per month, for reduced soil erosion 0.14 labors per month, and increase crop productivity 0.09 labors per month, respectively. The results important for policymakers and extension workers not to expect all farmers’ have homogeneous daily labor contribute to public watershed development activity. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2041261 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041261 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2041261 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Oanh Tran Author-X-Name-First: Oanh Author-X-Name-Last: Tran Author-Name: Ha Nguyen Author-X-Name-First: Ha Author-X-Name-Last: Nguyen Title: The interdependence of gold, US dollar and stock market in the context of COVID-19 pandemic: an insight into analysis in Asia and Europe Abstract: Using the panel data vector autoregression (PVAR) model, this study examines the correlation between the stock market, gold price and USD exchange rate in the context of the COVID-19 pandemic in 55 Asian and 32 European countries from 11 March 2021 to 29 October 2021. The results of Granger causality test show that in Asian countries, there is a bidirectional causality between stock market and gold price. In addition, there is a unidirectional relationship between the stock market and the USD exchange rate, while the gold price and the USD exchange rate are completely independent of each other. Meanwhile, in European countries, stock market, gold price and USD exchange rate have a causal relationship at 1% significant level. The results of the impulse-response function analysis show that, in Asia, the stock market has a negative impact on the gold price and a positive effect on the USD exchange rate. In Europe, the stock market has a negative impact on the other two markets in the short term. The variance decomposition results suggest that, in Europe, the stock market return explains 2.5% for the gold price shock and 6.2% for the USD exchange rate shock from the tenth period. Meanwhile, these figures in the Asian countries are 1.6% and 3.2%, respectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127483 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127483 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2104779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Solomon Tilahun Mengistu Author-X-Name-First: Solomon Author-X-Name-Last: Tilahun Mengistu Title: Does fiscal policy stimulate economic growth in Ethiopia? ARDL approach Abstract: In recent years, a vast literature has appeared on the relationship between fiscal policy and long-run economic growth. With the aim to give an overview of the recent discussion and establish a point of departure for future research, this study used time series techniques and rigor empirical model to investigate the link between various components of fiscal policy on Ethiopia’s economic growth on annual data for 35 years. It employed the autoregressive distributed lag estimation technique. Results from the bound tests showed that there was a long-run relationship between the variables. Disaggregating government expenditure into productive and unproductive and tax revenue into distortionary and non-distortionary, this study found unproductive expenditure and non-distortionary tax revenue to be neutral to growth as predicted by economic theory. Moreover, productive expenditure has a positive effect on growth while there was evidence of distortionary effects on growth of distortionary taxes. These results give the right signal topolicymakers in Ethiopia in formulating expenditure and tax policies to ensure unproductive expenditures are reduced while at the same time boosting public investment. Furthermore, there is need to encourage private investment in the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2104779 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2104779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2104779 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Deeksha Gupta Author-X-Name-First: Deeksha Author-X-Name-Last: Gupta Author-Name: Rahul Kumar Author-X-Name-First: Rahul Author-X-Name-Last: Kumar Author-Name: Subir Chattopadhyay Author-X-Name-First: Subir Author-X-Name-Last: Chattopadhyay Title: The impact of corporate spin-offs on shareholders’ wealth: Empirical evidence from India Abstract: Corporate restructuring is a widely adopted mode of improving efficiency and firm performance and has been studied in different country contexts such as the US, Australia, and Europe. The aim of this paper is to examine the impact of spin-off announcements on the stock prices of parent firms in the Indian context. In addition, we also investigate the price effect anomaly through two subsamples of high-price scripts and low-price scripts. The study is conducted on a sample of 221 Indian firms listed in BSE (Bombay Stock Exchange) from 2003 to 2020 which have announced the spin-offs. We employ event study methodology and find that spin-offs have a significantly positive impact on the stock prices of the parent firm. We observe the highest abnormal return of 1.35% on +1 day post the event. The interval-wise analysis gives the highest CAAR of 2.64% in (+1, +5) interval. The analysis of the price behavior of stocks at different price levels suggests that the low-price script outperformed the high-price script in each event window with a CAAR of 3.90% in high-price script and 7.16% in low-price script for the event window from −10 to +10. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109277 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109277 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2091088_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Fang Yang Author-X-Name-First: Fang Author-X-Name-Last: Yang Author-Name: Wei Liu Author-X-Name-First: Wei Author-X-Name-Last: Liu Author-Name: Ting Wen Author-X-Name-First: Ting Author-X-Name-Last: Wen Title: The rural household’s entrepreneurship under the land certification in China Abstract: As China’s economic growth slows down and the pressure of the economic downward increases gradually, the agricultural and rural economic development faces more serious challenges. Fortunately, thanks to the China’s rural land certification, it guarantees the security and stability of property rights of land, and provides a huge development space for rural household’s entrepreneurship, which promotes agricultural and rural economy greatly. In order to investigate the impact of the land certification on rural household’s entrepreneurship in China, this paper uses China Rural Household Panel Survey data for the empirical analysis based on the panel Logit model. The results show that: (1) The land certification increases the probability of agricultural entrepreneurship by at least 25%, but it has no significant influences on non-agricultural entrepreneurship. (2) The rural land certification with boundary influences agricultural entrepreneurship more significant than that without boundary, and the land certification to household is more beneficial for agricultural rural household’s entrepreneurship than that without to household. (3) The land certification mainly increases probability of agricultural entrepreneurship through the land transfer, labor allocation, and capital allocation. Moreover, the research of this study highlights the importance of standardizing rural labor market and accelerating land financial reform in creating conditions for agricultural entrepreneurship, which can provide effective data support for future rural policy-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2091088 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2091088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2091088 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tarjo Tarjo Author-X-Name-First: Tarjo Author-X-Name-Last: Tarjo Author-Name: Henryan Vishnu Vidyantha Author-X-Name-First: Henryan Vishnu Author-X-Name-Last: Vidyantha Author-Name: Alexander Anggono Author-X-Name-First: Alexander Author-X-Name-Last: Anggono Author-Name: Rita Yuliana Author-X-Name-First: Rita Author-X-Name-Last: Yuliana Author-Name: Siti Musyarofah Author-X-Name-First: Siti Author-X-Name-Last: Musyarofah Title: The effect of enterprise risk management on prevention and detection fraud in Indonesia’s local government Abstract: It may sound familiar to use Enterprise Risk Management (ERM) to prevent and identify fraud. However, the use of this well-known strategy in municipal administration is still uncommon. Fraud is a major concern in local government fiscal management. We acquired 151 data points from the Supervisory Apparatus of Local Government Agencies in Indonesia using a questionnaire. To test the hypothesis, this study employs regression analysis. According to the findings, the control environment, risk assessment, control activities, information and communication, and monitoring all have a significant impact on fraud prevention and detection. This work contributes empirically to the use of Enterprises Risk Management to minimize and identify fraud in Indonesian local governments. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101222 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101222 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101226_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Júlio Vicente Cateia Author-X-Name-First: Júlio Author-X-Name-Last: Vicente Cateia Author-Name: Luc Savard Author-X-Name-First: Luc Author-X-Name-Last: Savard Author-Name: Clailton Ataídes de Freitas Author-X-Name-First: Clailton Author-X-Name-Last: Ataídes de Freitas Title: Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau Abstract: This study aims to analyze the economic impacts of infrastructure investment in Africa, focusing on the Guinea-Bissau economy. Through a dynamic CGE model, we find that the natural resource revenues (or aid)-funded infrastructure investments generate externalities that increase factor returns. The private investment improvements propagate externalities effects on GDP and job opportunities outcomes. Household income and consumption were positively impacted, though the poorer benefited the most. The income inequality has reduced. However, funding by the mix of debt and direct taxes produces opposite effects. We suggest a potential pro-poor growth agenda in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101226 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101226 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2141884_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ephraim Matanda Author-X-Name-First: Ephraim Author-X-Name-Last: Matanda Author-Name: Eriyoti Chikodza Author-X-Name-First: Eriyoti Author-X-Name-Last: Chikodza Author-Name: Farai Kwenda Author-X-Name-First: Farai Author-X-Name-Last: Kwenda Title: Fuzzy structural risk of default for banks in Southern Africa Abstract: This paper proposes and examines a new structural risk of default model for banks in frictional and fuzzy financial markets. It is motivated by the need to fill the shortcomings of probability-based credit risk metric models that are characterised by unrealistic assumptions such as crisply precise and constant risk-free rates of return. The problem investigated here specifically proposes a new Kealhofer–Merton–Vasicek (KMV)-type model for estimation of the risk of default for banks extended for both market friction represented by transaction costs and uncertainty modelled by fuzziness. The novel risk of default model is then validated using cross-sectional financial data of eight commercial banks drawn from several emerging economies in Southern Africa. The results from the proposed model are fairly stable and consistent compared to those from hazard function and structural credit risk models currently used in the markets. The model is relevant in that it fairly captures practical conditions faced by banks that influence their risks of default in their quest to improve financial performance and shareholders’ wealth. The study recommends that banks in frictional and fuzzy financial markets, such as those in emerging economies, can adopt and implement the proposed risk of the default model. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2141884 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2141884 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2083477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Samuel Nyakarimi Author-X-Name-First: Samuel Author-X-Name-Last: Nyakarimi Title: Probable earning manipulation and fraud in banking sector. Empirical study from East Africa Abstract: The aim of the study was to determine extent of earning manipulations and possible fraudulent activities in banking sector. The study involved banks in East Africa where the financial statements of 34 banks in Kenya, 30 banks in Tanzania and 20 banks in Uganda were analysed. The study used Beneish model to classify banks as manipulators and non-manipulators. Later, probit regression model was applied based on the results of Beneish model to reclassify the banks as fraudulent or otherwise. The study revealed that 79.4% of Kenyan, 83.3% of Tanzanian and 70% of Ugandan banks could be non-manipulators. Further analysis showed that 79.4%, 76.7% and 80% of Kenyan, Tanzanian and Ugandan banks, respectively, were possibly not engaged in fraudulent activities. The study concluded that some banks could have been involved in earning management and fraud. The study contributes earning management literature by providing evidence that earning management is rife in banking sectors in less-developed countries though banks have strict regulations. The study further contributes to mechanisms of reclassification of institutions as either fraudulent or otherwise. The study recommends that financial statements prepared must be given professional autonomy. Further, it was recommended that the auditors should emphasise computations of ratios by financial statement prepared in order to give a clear, true and fair view of financial position of organizations. The study findings can be used by the management, regulators and government bodies in less developed and developing countries to develop policies that would seal the loopholes that fraudsters use. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2083477 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2083477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2083477 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Josephine Ofosu-Mensah Ababio Author-X-Name-First: Josephine Author-X-Name-Last: Ofosu-Mensah Ababio Author-Name: Anthony Q.Q. Aboagye Author-X-Name-First: Anthony Q.Q. Author-X-Name-Last: Aboagye Author-Name: Charles Barnor Author-X-Name-First: Charles Author-X-Name-Last: Barnor Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Title: Foreign and domestic private investment in developing and emerging economies: A review of literature Abstract: This study surveys and synthesizes the literature on foreign and domestic private investment over the period 1980–2022 with evidence from developing and emerging economies. The documentary sources method was used to examine one hundred and forty (140) peer-reviewed articles (selected based on source, journal of publication, database, time frame, relevance language, geographical restrictions, and search descriptions) published in a broad range of internationally recognized journals, with special analytical focus placed on forty (40) recent articles. It provides fresh evidence that literature on overall private investment and that of foreign direct investment have been given paramount interest and attention, but domestic private investment has received relatively diminutive attention to date. This review will serve as a roadmap, indicating the current state, contributions made, and unsolved issues in the extant studies as well as situating works to enrich the literature. It, therefore, offers specific directions for researchers, academics, and practitioners. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132646 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132646 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2144328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Justus Blaschke Author-X-Name-First: Justus Author-X-Name-Last: Blaschke Title: Gender differences in financial literacy among teenagers - Can confidence bridge the gap? Abstract: This paper investigates the moderating effect of confidence on the gender gap in financial literacy based on a nationwide survey of German high school students. Two measures of confidence are applied while controlling for cognitive abilities and several independent variables. This study shows that confidence is indeed a strong force in bridging the gender gap, especially for everyday financial concepts. However, significant sex differences persist for more sophisticated financial literacy tasks when confidence variables are introduced in the regression models. Moreover, this paper indicates a significant confidence gap between male and female participants and finds that explanatory characteristics of confidence vary with gender as well. Expertise in the form of increased mathematical abilities and economic education is suggested as a promising confidence-building measure for women. The results suggest that differentiating financial literacy into basic and sophisticated literacy greatly increases interpretability when studying gender differences. Furthermore, the findings have important practical implications for understanding and, thus, closing the gender gap in financial literacy and highlight the political need for financial education in early stages of life that combines theoretical knowledge with confidence building measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2144328 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2144328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2144328 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Winnie Thebuho Author-X-Name-First: Winnie Author-X-Name-Last: Thebuho Author-Name: Pieter Opperman Author-X-Name-First: Pieter Author-X-Name-Last: Opperman Author-Name: Lee-Ann Steenkamp Author-X-Name-First: Lee-Ann Author-X-Name-Last: Steenkamp Title: The asymmetric effect of financial development on energy consumption in sub-Saharan Africa Abstract: Sub-Saharan Africa (SSA) ranks lowest globally in respect of energy access rates. The resulting high energy poverty impedes sustainable economic growth and aggravates the overall poverty which is prevalent in SSA countries. A better understanding of the relationship between financial development and energy consumption can contribute to enhancing sustainable development in SSA. The existing literature presents conflicting evidence regarding this relationship. Our objective is to investigate the symmetric and asymmetric relationships between financial development and energy consumption in SSA, using annual data from 1990 to 2016. The Autoregressive Distributed Lag (ARDL) panel estimator was employed to test for the linear relationship and symmetric effects of the long-run and short-run coefficients. The asymmetry was determined by decomposing financial development into positive and negative components, employing the non-linear ARDL (NARDL) method. The results reveal that a positive financial development shock is positively linked with energy consumption in the long-run implying that further financial development intensifies energy consumption. Results of the negative shock in financial development is positively linked with energy consumption in the long-run implying that the reduction in financial development could decrease energy consumption. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095770 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095770 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Haitham Nobanee Author-X-Name-First: Haitham Author-X-Name-Last: Nobanee Author-Name: Hiba Shanti Author-X-Name-First: Hiba Author-X-Name-Last: Shanti Author-Name: Hind Aldhanhani Author-X-Name-First: Hind Author-X-Name-Last: Aldhanhani Author-Name: Abdulrahman Alblooshi Author-X-Name-First: Abdulrahman Author-X-Name-Last: Alblooshi Author-Name: Essa Alali Author-X-Name-First: Essa Author-X-Name-Last: Alali Title: Big data and credit risk assessment: a bibliometric review, current streams, and directions for future research Abstract: This study aims to track the structural development of academic research on credit risk assessment and big data using bibliometric analysis. The bibliography is obtained from the Scopus database and contains all studies with citations published between 2012 and 2021. The study’s findings suggest that credit risk assessment and big data are vast fields that have increased significantly in the last nine years. Chinese researchers and organizations contributed the most to the documents. The current study concludes that several possibilities exist to improve the knowledge of credit risk assessment and big data. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132638 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Edward Marfo-Yiadom Author-X-Name-First: Edward Author-X-Name-Last: Marfo-Yiadom Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Title: The role of national culture in financial innovation and bank stability transmission Abstract: This paper examines the role of national culture in the transmission process through which the growth in credit to the private sector can lead to bank stability in 107 countries over 2005 and 2017. We performed the examination using the quantile regression and the dynamic generalised method of moment to explore asymmetry properties in the panel dataset and address endogeneity challenges that can affect the efficiency of the results. We found that national culture dimensions influence the impact of financial innovation on bank stability. On the specific effect of national culture, we found that higher levels of indulgence and long-term orientation serve as a substitute for financial innovation in promoting bank stability. Higher levels of individuality and masculinity have no effects on the impact of financial innovation on bank stability. Higher power distance and uncertainty avoidance complement the relationship between financial innovation and bank stability. Finally, countries with lower levels of indulgence and long-term orientation can increase access to bank credit to boost banking system stability. The implication is that regulators should consider the cultural orientation of their communities in promoting sound financial intermediation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111792 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111792 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087291_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nadia Klarita Rahayu Author-X-Name-First: Nadia Klarita Author-X-Name-Last: Rahayu Author-Name: Iman Harymawan Author-X-Name-First: Iman Author-X-Name-Last: Harymawan Author-Name: Mohammad Nasih Author-X-Name-First: Mohammad Author-X-Name-Last: Nasih Author-Name: John Nowland Author-X-Name-First: John Author-X-Name-Last: Nowland Title: Director pay slice, the remuneration committee, and firm financial performance Abstract: This study aimed to analyze the relationship between the director pay slice and firm financial performance. This study used 1024 observations from companies listed on the Indonesia Stock Exchange from 2011 to 2019. The analytical technique used in this study was ordinary least square regression with a cluster model approach and fixed effects using the STATA 16.0 software. This study partially found that director pay slice and the existence of a remuneration committee are positively and significantly related to the company’s current and future performance. Furthermore, this study indicates that companies with a high director pay slice and remuneration committees tend to have a better level of performance because the presence of a remuneration committee helps to align the relationship between the director pay slice and firm financial performance. This study has implications for developing countries regarding effective corporate governance by analyzing the governance in Indonesia. Our study’s overarching goal was to understand the relationship between the director’s pay slice and the firm’s financial performance through the overall analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087291 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087291 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087291 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2119693_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Stephen Chellakan Author-X-Name-First: Stephen Author-X-Name-Last: Chellakan Author-Name: Muhammad Abrar Ul Haq Author-X-Name-First: Muhammad Author-X-Name-Last: Abrar Ul Haq Author-Name: Farheen Akram Author-X-Name-First: Farheen Author-X-Name-Last: Akram Author-Name: Gazi Md Nurul Islam Author-X-Name-First: Gazi Md Nurul Author-X-Name-Last: Islam Author-Name: Vinodh Natarajan Author-X-Name-First: Vinodh Author-X-Name-Last: Natarajan Title: Association of air quality parameters and socio-demographic towards the human health in India using regression analysis Abstract: This paper investigates the socio-economic impact of air pollution on human health in India. The data on vehicle emissions and health effects are obtained from secondary sources, and data relating to the source of fuel, type of kitchen, household income, age, education, respondents’ social class, and air-related diseases were collected through a primary source. Face-to-face interviews were conducted to collect primary data from selected 300 households using a structured questionnaire in rural and urban areas in India. The study results show that the higher-income households use alternative clean fuels like Liquefied Petroleum Gas (LPG) and electricity. The results indicate that the solid fuel users who used a kitchen without a partition wall were mostly affected by air-related diseases compared to other fuel users. The regression results indicate that the age of the household head has a positive 9.3%, gender of the household head has a negative 35.5%, the social class (caste) has a positive 20%, education of the household head has a negative 11.8%, household income has a negative 62.8%, kitchen type has a positive 23.7%, type of stove has a negative 30.7%, and type of fuel has a positive 33.1% effect on air related diseases. The study concluded that there is a need to prioritize promoting income and employment opportunities for the poor rural community. The infrastructure development activities could reduce the pollution from the vehicle. Implementing environmental education programs and campaigns could reduce the health problems in rural and urban areas in India. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2119693 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119693 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2119693 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2079211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yemareshet Hailu Demeke Author-X-Name-First: Yemareshet Author-X-Name-Last: Hailu Demeke Title: Youth unemployment and political instability: evidence from IGAD member countries Abstract: Evidence show that IGAD member countries are the most political unstable countries in the world. On the other hand, literatures on the subject reveal that youth unemployment contributes the most towards the political instability across the world. Nonetheless, investigation on the effect of youth unemployment on political instability particularly in IGAD member countries is very scanty. Thus, the objective of the current study is to investigate the effect of youth unemployment on political instability in IGAD member countries. For this purpose, the necessary secondary data is collected from ICRG, WDI and ILO on five selected IGAD member countries. To find out the effect of youth unemployment on political instability; fixed effect model, instrumental variable fixed effect model and one step system GMM estimation on dynamic panel data have been employed. The analysis result revealed that there is a significant effect of youth unemployment on political instability in IGAD member countries. This region specifically needs a sound youth employment policy not only for the sake of youths but also for the relief of government reducing the burden of controlling continuous internal instabilities. Moreover, in region-wise the IGAD countries better to have common youth employment creation policies so that they can manage the internal conflicts arises here and then. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2079211 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2079211 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2093430_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Muazu Ibrahim Author-X-Name-First: Muazu Author-X-Name-Last: Ibrahim Author-Name: Olufemi Adewale Aluko Author-X-Name-First: Olufemi Adewale Author-X-Name-Last: Aluko Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Title: The role of inflation in financial development–economic growth link in sub-Saharan Africa Abstract: The impact of financial development (FD) on economic growth (EG) is well documented. However, studies on how inflation mediates the impact of FD on EG produce inconclusive findings. Meanwhile, the tripartite relationship among FD, inflation and EG is particularly crucial for sub-Saharan African countries given that these countries are largely inflationary on the back of under-developed financial sectors and low EG. The inconclusive evidence presented by the existing studies limits policy making. This study therefore re-examines whether inflation mediates the FD–EG nexus by utilizing a panel data obtained from 36 countries in sub-Saharan Africa. The study uses the sample splitting threshold approach to investigate this relationship. The findings identify inflation thresholds of 7.65% and 6.76% at which the impact of FD on EG changes sign. Specifically, irrespective of the indicator of FD, higher FD significantly increases EG at low inflation rates. However, beyond the estimated thresholds, the impact of FD on EG is insignificant, revealing that higher inflation does not support the growth-enhancing effect of FD. The research recommends that inflation should be kept below the identified thresholds for FD to spur EG. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2093430 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093430 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2093430 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2128585_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abel Mawuko Agoba Author-X-Name-First: Abel Mawuko Author-X-Name-Last: Agoba Author-Name: Ebenezer Bugri Anarfo Author-X-Name-First: Ebenezer Bugri Author-X-Name-Last: Anarfo Author-Name: Yakubu Awudu Sare Author-X-Name-First: Yakubu Author-X-Name-Last: Awudu Sare Title: Harnessing the synergies of independent central banks and human capital for enhanced financial sector development in Africa Abstract: Using panel data from 2004 to 2012, we employ a two-step system GMM estimation technique, with robust standard errors, collapsed instruments and illus-trate marginal effects of central bank independence on financial development in Africa. We also examine the moderating roles of human capital, proxied by literacy rates on the CBI-financial development nexus. We find that, in countries with higher literacy rates/human capital, the positive impact of dejure CBI on financial development is enhanced. Higher literacy rates however, worsen the negative impact of de facto CBO on financial devel-opment. Independent central banks can be made more effective in achieving financial development through governments improving literacy rates. The study is the first to empirically examine the impact of central bank independence on financial development using both dejure and de facto CBI measures and literacy rates in explaining this relationship Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2128585 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2128585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2128585 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2038861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Forget Mingiri Kapingura Author-X-Name-First: Forget Mingiri Author-X-Name-Last: Kapingura Author-Name: Nwabisa Mkosana Author-X-Name-First: Nwabisa Author-X-Name-Last: Mkosana Author-Name: Suhal Kusairi Author-X-Name-First: Suhal Author-X-Name-Last: Kusairi Title: Financial sector development and macroeconomic volatility: Case of the Southern African Development Community region Abstract: The study examines the effect of financial sector development on macroeconomic volatility in the Southern African Development Community (SADC) region for the period 1980–2018 employing the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model. The empirical findings show that banking variables have a negative and significant effect on growth volatility in the SADC countries. Also, stock market capitalisation, which is a measure of capital market development, was also found to have a negative effect on macroeconomic volatility when looking at the whole financial sector. The results suggest that a well-developed capital market where both the stock market and banking sector are thriving mitigates macroeconomic volatility. The empirical results however reveal that when the stock market is dominant, there is bound to be macroeconomic volatility. The results imply that pursuing the development of the overall financial system reduces macroeconomic volatility in a country as well as the region. Authorities should therefore ensure that policies geared towards development of the entire financial system are pursued. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2038861 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2038861 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yen Nguyen Author-X-Name-First: Yen Author-X-Name-Last: Nguyen Author-Name: Liem Nguyen Author-X-Name-First: Liem Author-X-Name-Last: Nguyen Title: Funding liquidity, bank capital, and lending growth in a developing country Abstract: The purpose of this paper is to examine the impacts of funding liquidity and bank capital on lending growth using panel data estimation techniques on a sample of banks in Vietnam from 2005 to 2021. The research shows that funding liquidity and capital have a positive impact on lending growth, confirming the important role of deposits and capital on bank lending activities. There is evidence that capital and funding liquidity can be substitutes to maintain growth in lending, and capital can help address agency problems associated with increased lending. Finally, we perform quantile regression to further investigate whether the above links hold across the distribution of lending growth, and find that the coefficients of funding liquidity, capital and their interaction term remain significant. Based on the research findings, we propose relevant implications for the maintenance of sustainable growth and stability of banks in this market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122958 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122958 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122958 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Oanh Kim Thi Tran Author-X-Name-First: Oanh Kim Thi Author-X-Name-Last: Tran Title: Does there exist an optimal budget balance to improve economic growth? empirical evidence from Asian countries Abstract: Using panel data regression of 48 countries during 2000–2019, the research aims to examine the role of budget balance on economic growth in Asia. Also, with the application of Panel Threshold Regression (PTR), the author tests the nonlinear relationship and to identify an optimal budget balance threshold to achieve the most effective economic growth. The study shows that the lower national budget deficit level is remained, the greater economic growth in Asia is driven. Additionally, it is revealed that an effective economic growth is best promoted with budget balance ranging from 22.6935% GDP to 25.1950% GDP. However, only a few of nations in the sample have achieved the optimal threshold of budget balance above during the period of research. Meanwhile, several countries in Asia have been suffering from the budget deficit for many years. Therefore, in order to stabilize the economic development, most of the Asian countries should adjust the national budget revenue and expenditure process to keep the balance properly. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114174 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114174 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114174 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tanakorn Likitapiwat Author-X-Name-First: Tanakorn Author-X-Name-Last: Likitapiwat Author-Name: Sirimon Treepongkaruna Author-X-Name-First: Sirimon Author-X-Name-Last: Treepongkaruna Title: It’s COVID-19 chaos! Is the temporary restriction on short selling in Thailand effective? Abstract: This paper evaluates the effectiveness of the COVID-19 temporarily led restriction on short selling by the Stock Exchange of Thailand (SET). We investigate the causal effect of short selling restriction on return, volatility and market quality from 2 September 2019 to 30 September 2020. Exploiting this short selling restriction as a natural experiment, we conduct difference-in-difference analyses and find that the uptick restriction on short selling worsens market quality with higher spread, lower market depth, and order imbalance. In addition, we find an increase in volatility during the restriction and a negative return surrounding the announcement date. This implies that the restriction increases the trading costs and price impact and fails to tame the volatile market and reduce returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106633 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106633 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shivaprasad S P Author-X-Name-First: Shivaprasad Author-X-Name-Last: S P Author-Name: Geetha E Author-X-Name-First: Geetha Author-X-Name-Last: E Author-Name: Raghavendra Acharya Author-X-Name-First: Raghavendra Author-X-Name-Last: Acharya Author-Name: Vidya Bai G Author-X-Name-First: Vidya Bai Author-X-Name-Last: G Author-Name: Rajeev Matha Author-X-Name-First: Rajeev Author-X-Name-Last: Matha Title: Are Options Trading Strategies Really Effective for Hedging in the Indian Derivatives Market? Abstract: Hedging being a predominant financial concern, is considered as a robust method of managing investment risks. Literature evinces that the covered call strategy provides nominal returns alongside effective hedging. However, studies have not compared the hedging effectiveness of covered call, covered put, collar, and synthetic long call strategies in the equity segment. The study evaluates the hedging effectiveness of option trading strategies by applying them to the companies of the top six National Stock Exchange (NSE) sector indices for twelve years, from 2009 to 2020 under volatile and neutral market conditions. The study collects data of 18,720 option contracts and considers 3744 observations for each strategy. The panel regression analysis approach is being incorporated into the study. Hausman test results determine the appropriate model between fixed and random effects. Furthermore, the study compares the mean scores of selected strategies to identify significant differences between the groups using the Games-Howell Post Hoc Tukey Test. The study recommended covered call and covered put strategies effectively hedge the investment in both market conditions. The study’s findings help retail investors choose a better hedging strategy and employ the same in their trading, specific to the market condition. Future studies can apply and compare the effectiveness of these strategies in other emerging derivative markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111783 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111783 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Palka Chhillar Author-X-Name-First: Palka Author-X-Name-Last: Chhillar Author-Name: Ramana V Lellapalli Author-X-Name-First: Ramana V Author-X-Name-Last: Lellapalli Title: Role of earnings management and capital structure in signalling early stage of financial distress: a firm life cycle perspective Abstract: Globally, the unravelling of the corporate scandals leading to big multinational firms stumbling down to bankruptcy suits caused enormous loss of wealth to the investors. This study explores how the earnings management and capital structure can signal an early stage of the distressed financial condition of firms during the firm life cycle in Indian listed companies. The sample firms for the study are the non-financial firms listed on the Bombay Stock Exchange. The study uses fixed-effects and random-effects analyses. The findings of the study indicate that discretionary accruals quality can predict the early stage of financial distress in the decline stage of firm life cycle. Understanding the information embedded in the discretionary accruals and leverage during various life cycle stages can lead to better investing, financing, operating and policy-related decisions. This study provides novel insights into the relationship between earnings management and firm life cycle. Focusing on the inter-relationship between financial distress signalling, earnings management, capital structure and firm life cycle, this work adds significantly to the finance literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106634 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106634 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2060551_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Chuka Ifediora Author-X-Name-First: Chuka Author-X-Name-Last: Ifediora Author-Name: Kenechukwu Onochie Offor Author-X-Name-First: Kenechukwu Onochie Author-X-Name-Last: Offor Author-Name: Eze Festus Eze Author-X-Name-First: Eze Festus Author-X-Name-Last: Eze Author-Name: Samuel Manyo Takon Author-X-Name-First: Samuel Manyo Author-X-Name-Last: Takon Author-Name: Anthony Eboselume Ageme Author-X-Name-First: Anthony Eboselume Author-X-Name-Last: Ageme Author-Name: Godwin Imo Ibe Author-X-Name-First: Godwin Imo Author-X-Name-Last: Ibe Author-Name: Josaphat U. J. Onwumere Author-X-Name-First: Josaphat U. J. Author-X-Name-Last: Onwumere Title: Financial inclusion and its impact on economic growth: Empirical evidence from sub-Saharan Africa Abstract: This study examines the impact of financial inclusion on economic growth using panel data of 22 sub-Sahara African (SSA) countries during the period spanning from 2012 to 2018. The study employs the system Generalized Method of Moments (GMM). Using a composite index of financial inclusion as well as individual financial inclusion indicators, we discovered that the availability dimension of financial inclusion, penetration dimension of financial inclusion and composite financial inclusion (all indicators put together) significantly and positively impact economic growth while the usage dimension of financial inclusion improves economic growth but not significantly. Also, bank branches and ATMs have positive and significant impact on economic growth, deposit accounts and outstanding loans promote economic growth but not significantly while outstanding deposits adversely affects economic growth. In addition, findings for mobile money indicators from 2012 to 2018 revealed that mobile money agents weaken economic growth while mobile money accounts and mobile money transactions foster economic growth but not significantly. This implies that financial education policies which help Africans better understand the potential benefits of the usage of banking services should be pursued. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2060551 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2060551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2060551 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khoa Dang Duong Author-X-Name-First: Khoa Dang Author-X-Name-Last: Duong Author-Name: Man Minh Tran Author-X-Name-First: Man Minh Author-X-Name-Last: Tran Author-Name: Diep Van Nguyen Author-X-Name-First: Diep Van Author-X-Name-Last: Nguyen Author-Name: Hoa Thanh Phan Le Author-X-Name-First: Hoa Thanh Phan Author-X-Name-Last: Le Title: How fears index and liquidity affect returns of ivol puzzle before and during the Covid-19 pandemic Abstract: This study examines the impacts of investor sentiment and liquidity on the idiosyncratic volatility (IVOL) anomaly returns in Vietnam before and during the COVID-19. We construct an internet search-based measure of sentiment (FEARS) from the Google Trends Search Volume Index of Vietnam’s financial and economic search terms from December 2010 to December 2020. We employ Two-Stage Least Squares (2SLS) regressions and univariate portfolio testing to examine the existence of IVOL anomaly in Vietnam after controlling for FEARS sentiment index and liquidity proxies. Our findings document the persistence of the IVOL anomaly in the Vietnam stock market before the pandemic. However, the IVOL anomaly disappears during the pandemic. In addition, increasing investor fear sentiment reduces stock returns during the pandemic. Our robustness tests indicate that the IVOL anomaly persists in the high FEARS, low FEARS, and high turnover subsample before the pandemic. Our results contribute new evidence of how the FEARS index and liquidity help explain the IVOL puzzle before and during the pandemic. Our findings align with the trade-off theory, the efficient market theory, the attention-driven theory, and prior literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114175 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114175 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085292_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Walid M. A. Ahmed Author-X-Name-First: Walid M. A. Author-X-Name-Last: Ahmed Author-Name: Mohamed A.E. Sleem Author-X-Name-First: Mohamed A.E. Author-X-Name-Last: Sleem Title: Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic Abstract: Like no other calamitous event in recent memory, the COVID-19 pandemic has plunged the world’s financial system into disarray, triggering systemic risk spillovers across markets. In this study, we use 5-minute index futures price data to examine the multiscale interdependence structure of global equity, gold, and oil markets prior to and following the COVID-19 outbreak, in terms of the first four realized moments of their respective return distributions (i.e., mean, variance, skewness, and kurtosis). With respect to the equity-gold nexus, we find that stock (gold) returns and volatility negatively (positively) lead their gold (stock) counterparts at medium- and long-term scales in the pandemic period, while asymmetry risk in stock markets positively leads its counterpart in gold markets at the same scales before and during the early months of the health crisis. Concerning the oil-equity nexus, our results reveal a positive (negative) co-movement between asymmetry risks at short- and medium-term scales in January-April (May-July) 2020, whereas heavy tail risks are positively synchronized at low frequencies in the turbulent period of March-April 2020. Some policy implications are derived from the analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085292 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085292 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085292 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2119705_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Goodness C. Aye Author-X-Name-First: Goodness C. Author-X-Name-Last: Aye Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Title: Dynamic effect of fiscal policy on wealth inequality: Evidence from middle-income countries Abstract: The study examined the dynamic effect of fiscal policy on wealth inequality in middle-income countries using panel data from 2010 to 2018 and the system Generalized Method of Moments (GMM) method. Two measures of fiscal policy were considered, namely government expenses and taxes on income, profits and capital gains. GDP per capita and adult population were used as control variables. The findings of this study show that while taxes on income, profits and capital gains have a significant negative effect on wealth inequality, government expenses have no effect whatsoever on wealth inequality. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2119705 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2119705 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2068784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kenneth Ofori-Boateng Author-X-Name-First: Kenneth Author-X-Name-Last: Ofori-Boateng Author-Name: Williams Ohemeng Author-X-Name-First: Williams Author-X-Name-Last: Ohemeng Author-Name: Ernest Ahawaadong Boro Author-X-Name-First: Ernest Author-X-Name-Last: Ahawaadong Boro Author-Name: Elvis Kwame Agyapong Author-X-Name-First: Elvis Author-X-Name-Last: Kwame Agyapong Title: Efficiency, market structure and performance of the insurance industry in an emerging economy Abstract: This paper investigated the structure of the market, efficiency and performance (profitability) of the general insurance industry in the Ghanaian economy. The overriding objective was to evaluate the impact that regulatory informed market structure would have on the pricing behaviour; examining the hypothesis of the Structure Conduct Performance (SCP) for the general insurance market. Using data comprising a panel of 29 general insurance firms from 2008–2019, the paper used the Herfindahl Hirschman Index and the concentration ratio to measure the SCP in addition to computing efficiency as a measure for the Efficient Structure (ES) hypothesis. Using a Panel Corrected Standard Error and settling on Random Effect techniques, the paper found no evidence to suggest collusive firm behaviour among general insurers. The findings therefore supported the ES hypothesis, and rejected the SCP hypothesis. The paper presents insight into understanding the behaviour of insurance companies in the new markets inspired by regulation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2068784 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2068784 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2026660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Minh Ha Author-X-Name-First: Nguyen Author-X-Name-Last: Minh Ha Author-Name: Pham Tan Minh Author-X-Name-First: Pham Author-X-Name-Last: Tan Minh Author-Name: Quan Minh Quoc Binh Author-X-Name-First: Quan Minh Quoc Author-X-Name-Last: Binh Title: The determinants of tax revenue: A study of Southeast Asia Abstract: This study identifies the determinants of tax revenue in Southeast Asia based on a balanced dataset of eight countries. By employing static (pooled Ordinary Least Squares (OLS), fixed effects (FE) model, random effects (RE) model and Driscoll-Kraay standard error) as well as dynamic panel data (system–generalized method of moments) regression techniques, we show that the openness of the economy, foreign direct investment (FDI), the ratio of foreign debt to the gross domestic product (GDP), the share of value added in industry to GDP have positive impacts on tax revenue, and official development assistance has a negative impact. We suggest that Southeast Asian countries design better policies in international trade as well as attract FDI, speed up the process of economic restructuring, and enhance the capacity to mobilize, manage, and use foreign debt and assistance in order to collect more taxes. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2026660 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2026660 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2026660 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2135834_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name:   Abhilash Author-X-Name-First:   Author-X-Name-Last: Abhilash Author-Name: Sandeep S Shenoy Author-X-Name-First: Sandeep S Author-X-Name-Last: Shenoy Author-Name: Dasharathraj K Shetty Author-X-Name-First: Dasharathraj K Author-X-Name-Last: Shetty Title: A state-of-the-art overview of green bond markets: Evidence from technology empowered systematic literature review Abstract: Though the green bond markets are growing expeditiously, the summary overview of this market literature is sparse. This study addresses the gap by employing a bibliometric analysis through a systematic review of the literature approach and provides a state-of-the-art overview of the current trends, status, and future development of the green bond markets. To do so, the study reviewed 265 articles retrieved from the Scopus database spanning from 2011 to 2022. Akin to this, the study unpacks the publication trend, most influencing articles, prolific authors, top contributing journals, countries, as well as affiliations in green bond research. The review shows that the publication trend has surged exponentially with an annual growth rate of 55.12%. The study also reveals major themes such as sustainable development, sustainability, green bonds, sustainable finance, green finance, and sustainable investment. The findings of the study suggest curating future research with the main emphasis on multiple types of green bonds, the impact of various green projects, the attention of various market participants, and the incorporation of advanced technology for the development of the green bond market. The study will help policymakers, regulators, and academicians to promote sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2135834 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2135834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2135834 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2153411_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yue Li Author-X-Name-First: Yue Author-X-Name-Last: Li Author-Name: Zariyawati Mohd Ashhari Author-X-Name-First: Zariyawati Author-X-Name-Last: Mohd Ashhari Author-Name: Yaojun Fan Author-X-Name-First: Yaojun Author-X-Name-Last: Fan Title: Financial sustainability and capital leverage of microfinance institutions in China: The mediating role of profitability Abstract: This study primarily investigates the effect of financial sustainability on capital leverage in microfinance setting. In doing this, this study looks at operating performance of 45 commercial microfinance institutions under current dual pressure of downturn and deleveraging in China. Empirically, this study employs the system GMM to observe a robustly small and negative impact of financial sustainability on capital leverage. Furthermore, this study presents a conclusion with evidence by mediation analysis that profitability exhibits a suppressing effect on the relationship between financial sustainability and capital leverage. Theoretically, this study verifies that the impact of financial sustainability on capital structure obeys the pecking order theory. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2153411 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2153411 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2153411 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2080897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Teshager Mazengia Asratie Author-X-Name-First: Teshager Mazengia Author-X-Name-Last: Asratie Title: Determinants of electricity production from renewable source excluding hydroelectricity in selected East African countries: Panel ARDL approach Abstract: Though East Africa has ample resource endowments for electricity production, the region has the lowest performance in generating electricity, and millions of people are living without access to electricity. To fill the electricity gap countries used fossil fuels as the major source of energy, but electricity production from a renewable resource is lower. Therefore, this study aimed to identify determinant factors of electricity production from renewable resources excluding hydropower sources. Panel data for five East African countries for the period 1998 to 2019 were used, and it was examined using pooled mean group panel ARDL estimation technique. The estimation result revealed that in the long- and short-run GDP per capita growth, population growth, energy consumption per capita, and energy import have a positive significant effect on electricity production from renewable resources other than hydropower, while political instability, electricity production from hydropower, and electricity production from oil, gas, and coal have a negative significant effect. However, in the short run, energy use and resource rent percentage of GDP have positive and negative significant effects, respectively, but in the long run, the two variables have no significant effect. Error correction coefficient is negative 0.64, which indicates that the deviation from long-run disequilibrium adjusts toward equilibrium at a rate of 64% per year. Based on the results, this study recommends that the government improve the performance of GDP growth by quality education, lower lending interest rate, improving political stability through controlling internal conflicts caused by differences in religion and ethnicity, and improving energy security. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2080897 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2080897 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2090662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mouna Mrad Author-X-Name-First: Mouna Author-X-Name-Last: Mrad Title: Accounting conservatism and corporate cross- listing: The mediating effect of the corporate governance Abstract: The purpose of this paper is to investigate the relationship between accounting conservatism and companies’ cross- listing decision and the mediating role of the corporate governance mechanisms: board of directors’ characteristics and ownership structure, on this relationship. Using a sample of 60 French companies for the period 2014–2019, we find new evidence of a reverse causation relationship between accounting conservatism and cross-listing decision in the United States (US). Thus, cross-listed firms in the US are more likely to exhibit more conservative financial reports. In the reverse causality sense, more conservative firms are more likely to cross-list in the US since they can support a higher level of cross-listing costs and satisfy the higher disclosure and governance requirements which allow them to benefit from a better valuation. Our findings also support the new prediction that better governance leads to higher levels of accounting conservatism, implying a mediating impact on the relationship between accounting conservatism and cross-listing decision. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2090662 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2090662 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132645_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abdullah Author-X-Name-First: Abdullah Author-X-Name-Last: Author-Name: Muhammad Arsalan Hashmi Author-X-Name-First: Muhammad Arsalan Author-X-Name-Last: Hashmi Author-Name: Abdul Mateen Author-X-Name-First: Abdul Author-X-Name-Last: Mateen Author-Name: Yousuf Ali Badshah Author-X-Name-First: Yousuf Ali Author-X-Name-Last: Badshah Author-Name: Muhammad Sikander Iqbal Author-X-Name-First: Muhammad Sikander Author-X-Name-Last: Iqbal Title: Does tax aggressiveness and cost of debt affect firm performance? The moderating role of political connections Abstract: Firms in emerging economies continue to suffer as a consequence of tax evasion, high cost of financing, political interference, weak governance systems, and bureaucratic institutions. In order to understand how these challenges complicate commercial activities, this study examines how tax aggressiveness, cost of debt, and political connections affect firm performance in Pakistan. Unlike previous research, we also explore if political connections moderate the association between (i) tax aggressiveness and firm performance and (ii) cost of debt and firm performance. Our robust empirical analysis reveals that tax aggressive firms have weaker performance while politically connected firms have better performance, ceteris paribus. Further, we find that tax aggressive firms having politically connected board members have better performance as compared to their non-connected counterparts. Similarly, firms with a high cost of debt and politically connected board members have better performance as compared to non-connected firms. Thus, we argue that political connections help connected firms in overcoming the adverse consequences of tax aggressiveness and the high cost of debt through their influence in procuring government projects, subsidies, and other benefits. Therefore, policymakers are advised to restrict politically connected board members from extending favors and concessions to connected firms. We also encourage shareholders to exercise their voting power and monitoring capabilities for mitigating agency problems inherent in politically connected firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132645 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132645 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2061103_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ibrahim N. Khatatbeh Author-X-Name-First: Ibrahim N. Author-X-Name-Last: Khatatbeh Author-Name: Wasfi Al Salamat Author-X-Name-First: Wasfi Author-X-Name-Last: Al Salamat Author-Name: Mohammed N. Abu-Alfoul Author-X-Name-First: Mohammed N. Author-X-Name-Last: Abu-Alfoul Author-Name: Jamil J. Jaber Author-X-Name-First: Jamil J. Author-X-Name-Last: Jaber Title: Is there any financial kuznets curve in Jordan? a structural time series analysis Abstract: This paper investigates the notion of the financial Kuznets curve in an emerging country—Jordan. Both variants of the financial Kuznets curve (growth financial Kuznets curve and inequality financial Kuznets curve) have been examined using different time series methodologies applying to a sample period from 1993 to 2017. The unobserved components model results provide evidence for both variants of the financial Kuznets curve when using private credit to GDP as a proxy for financial-sector development. Moreover, non-nested model tests suggest that financial intermediaries are relatively more important than stock markets for income inequality. Overall, this paper provides evidence for the financial Kuznets curve in emerging countries. Moreover, it provides new insights for policymakers in Jordan in their challenge to boost economic growth and decelerate income inequality, by reversing the trend towards the concentration of power in the financial sector and creating public-financial institutions that provide affordable credit to small businesses and households. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2061103 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2061103 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2061103 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Emmanuel Abokyi Author-X-Name-First: Emmanuel Author-X-Name-Last: Abokyi Title: The impact of agricultural marketing program on farm investment: Evidence from Ghana Abstract: This study investigates the impact of agricultural marketing program on smallholder investment behavior. The study is based on cross-sectional household data from a survey of 507 smallholder maize farmers from rural communities in Ghana. The study employed propensity score matching (PSM) to estimate the average treatment effect of the marketing program on farmers’ investment behavior. The results show that smallholder farmers’ participation in buffer stock marketing program is influenced positively by gender, transportation cost and access to extension service and negatively by marital status among others. Overall, the results show that the buffer stock marketing program has positive impacts on smallholder farmers’ investment behavior of increasing input usage, farm expansion and yield smallholder farmers. However, the highest impact is on farm expansion. The results of the study reveal that the marketing program stimulates investment in farm size expansion more than in inputs usage. To derive the most impact from the program, a possible review of the program could look at strategy of focusing on the implementation of the program in rural areas rather than in peri-urban areas where land access is more constrained. This study contributes to a better understanding of f farmers’ investment behavior of input usage and farm expansion. This knowledge could help policymakers and development organizations shape future interventions for increased uptake. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111781 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111781 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ho Thuy Tien Author-X-Name-First: Ho Author-X-Name-Last: Thuy Tien Title: Oil price shocks and Vietnam’s macroeconomic fundamentals: quantile-on-quantile approach Abstract: This study aims to explore the asymmetric relationships between global oil prices and the selected Vietnam macroeconomic indicators using both quantile-on-quantile regression and Granger causality in quantile frameworks. The macroeconomic factors under study, as expected, have a strong relationship with oil price changes. The results suggest that oil prices have a positive impact on the exchange rate, inflation, GDP, and stock market prices across major quantiles, while there is a significantly negative relationship between the unemployment rate and oil prices in the middle-upper quantile. The results of this article offer considerable policy implications for governments, investors, and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095767 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095767 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2150134_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Marina Maniati Author-X-Name-First: Marina Author-X-Name-Last: Maniati Author-Name: Emeritus Sambracos Author-X-Name-First: Emeritus Author-X-Name-Last: Sambracos Author-Name: Sokratis Sklavos Author-X-Name-First: Sokratis Author-X-Name-Last: Sklavos Title: A Neural Network approach for integrating banks’ decision in shipping finance Abstract: Forecasting refers to the process of predicting future trends by lying on data from the past. An error in forecasting can lead to significant business losses especially in banking industry where decisions are taken in a highly volatile and uncertain environment due to the dynamic changes in world economy. In this paper, we study both the effectuations of the exogenous factors in the tanker shipping-related financial market and the modulation of the credibility coefficient as an internal factor in shipping banks that may affect their decision to either increase or decrease loans within tanker shipping sector by adopting the artificial neural network technique. Within this context, we modeled a unique network that adjusts 88 macroeconomic indices to the real data of 89 shipping banks within a period of T = 5 years time. The main contribution of this study is the understanding of the relation between bias and either exogenous or unpredictable factors in the market as a key factor in the financing decision policy of a shipping bank for the forthcoming year T + 1. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2150134 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150134 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2150134 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2035917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bayelign Abebe Zelalem Author-X-Name-First: Bayelign Abebe Author-X-Name-Last: Zelalem Author-Name: Ayalew Ali Abebe Author-X-Name-First: Ayalew Ali Author-X-Name-Last: Abebe Title: Balance sheet and income statement effect on dividend policy of private commercial banks in Ethiopia Abstract: The study analyzes the impact of balance sheet and income statement on the cash dividends of private commercial banks in Ethiopia. The independent variables employed include liquidity, asset size, leverage, and growth, which are components of the balance sheet, and profitability which is a component of both the balance sheet and the income statement during the period 2010–2020. The generalized moment (GMM) model was used to determine the most important variables that private banks consider when making dividend decisions. In addition, further tests are performed to corroborate the basic findings. Profitability, size, and liquidity are statistically significant characteristics that positively influence the dividend policy of Dashen bank, Wegagen bank, United bank, Lion international bank, Cooperative bank of Oromia, Awash international bank, Bank of Abyssinia, and Nib international bank. Growth and leverage, on the other hand, have a negative and considerable impact on the dividend policy of private commercial banks. The study suggests that the dividend policy of Ethiopian private commercial banks is influenced by both the balance sheet and the income statement. When determining dividend policy, managers of Ethiopian private commercial banks should consider profitability, asset size, liquidity, leverage, and growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2035917 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035917 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2156677_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammad Anamul Haque Author-X-Name-First: Mohammad Anamul Author-X-Name-Last: Haque Author-Name: Zhang Biqiong Author-X-Name-First: Zhang Author-X-Name-Last: Biqiong Author-Name: Muhammad Usman Arshad Author-X-Name-First: Muhammad Usman Author-X-Name-Last: Arshad Author-Name: Nazia Yasmin Author-X-Name-First: Nazia Author-X-Name-Last: Yasmin Title: Role of uncertainty for FDI inflow: Panel econometric analysis of selected high-income nations Abstract: The purpose of this study is to evaluate the influence of economic policy uncertainty in determining the FDI inflow for 19 economies with higher incomes between 2000 and 2021. Using the panel Ardl approach, the data were examined. The dynamic fixed effect approach was selected for assessing the necessary set of hypotheses based on the significance of the Hausman test. Increasing levels of economic policy uncertainty, exchange rate, and inflation rate discourage foreign investors from investing in the host country, whereas trade openness and real growth rate increase investors’ confidence in increasing FDI inflow in the host country. The economic implications of the study include the political stability of the host country and the uniformity of government policies, particularly in favor of international investors. This study contributes to the existing body of knowledge on FDI by examining the long-term and short-term effects of uncertainty for the high-income group. The findings of the study apply to higher-income economies. In the future, comparative time-series analysis may be used to assess studies on an individual or regional basis for other groups as well. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2156677 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2156677 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Author-Name: Nathaniel Kwapong Obuobi Author-X-Name-First: Nathaniel Kwapong Author-X-Name-Last: Obuobi Author-Name: Mohammed Zangina Isshaq Author-X-Name-First: Mohammed Zangina Author-X-Name-Last: Isshaq Author-Name: Mac Junior Abeka Author-X-Name-First: Mac Junior Author-X-Name-Last: Abeka Author-Name: John Gartchie Gatsi Author-X-Name-First: John Gartchie Author-X-Name-Last: Gatsi Author-Name: Ebenezer Boateng Author-X-Name-First: Ebenezer Author-X-Name-Last: Boateng Author-Name: Emmanuel Kwakye Amoah Author-X-Name-First: Emmanuel Kwakye Author-X-Name-Last: Amoah Title: Country-Level corporate governance and Foreign Portfolio Investments in Sub-Saharan Africa: The moderating role of institutional quality Abstract: Given the declining volumes of Foreign Portfolio Investments (FPI) in Africa, the study sought to examine the moderating role institutional quality (INST) plays in the relationship between country-level corporate governance (CG) and FPI in Sub-Saharan Africa. This is motivated by arguments from the hierarchy of institutions hypothesis, which posits that the quality of political institutions (INST) determine the strength of economic institutions (CG) and how they affect economic activities. Data was collected on 33 SSA countries from 2009 to 2017 and analysed using the systems GMM approach. The results revealed that economies characterised by strict adherence to international auditing and reporting standards, ethically behaved firms, effective corporate boards, and well-regulated security markets tend to attract more FPI inflows, even though weak shareholder protection regimes are likely to deter FPI. We also confirmed the positive impact of robust institutions in luring FPI into SSA. Finally, we found the FPI-CG nexus to be significantly moderated by the quality of institutions prevalent in a country. This implies that the effectiveness of country-level corporate governance mechanisms can be affected by the existing institutions, thereby impacting the level of FPI an economy receives. We recommend that SSA firms take pragmatic steps to develop and practice sound CG mechanisms while the institutional setting in SSA is strengthened to harness more FPI inflows to support their economic growth agenda. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106636 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106636 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106636 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2024952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nicholas Apergis Author-X-Name-First: Nicholas Author-X-Name-Last: Apergis Title: Convergence in non-performing loans across EU banks: The role of COVID-19 Abstract: Given the impact of the COVID-19 pandemic on the European real economy, European banks are likely expected to be confronted by a wave of non-performing loans. Focusing on a sample of large banks in the EU area over the pre and during the COVID-19 pandemic period, the analysis shows an extended degree of divergence during the pandemic crisis, with GDP, bank profitability and risk being held the responsible factors. The findings imply that potential plans to deal with NPLs should explicitly consider strategies running from bank restructuring and resolutions to recapitalisation or any other rescue measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2024952 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2024952 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101224_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Muhammad Ahmad Author-X-Name-First: Muhammad Author-X-Name-Last: Ahmad Author-Name: Rabia Bashir Author-X-Name-First: Rabia Author-X-Name-Last: Bashir Author-Name: Hamid Waqas Author-X-Name-First: Hamid Author-X-Name-Last: Waqas Title: Working capital management and firm performance: are their effects same in covid 19 compared to financial crisis 2008? Abstract: The recent covid 19 has increased the challenges for worldwide businesses to manage working capital. Compared to the studies on the financial crisis of 2008, management of working capital and firm performance relation during the covid 19 is less studied, particularly in developing countries. Therefore, this study examined the working capital management and firm performance relation in 577 firms from three Asian developing countries from 2004 to 2020. The working capital measurement includes working capital investment policy, working capital financing policy, cash conversion cycle (CCC), and net working capital (NWC). Firm performance is measured by return on assets (ROA) and Tobin’s Q (TQ). To examine the working capital management and firm performance during the crisis 2008 and covid 19, Kruskal-Wallis test is used. Results revealed that working capital management and firm performance were more affected during covid 19 than crisis 2008 period. In addition, this study compared the working capital management and firm performance relation for covid 19 and crisis 2008 using the dynamic panel system generalized method of moments (GMM). Results showed the difference in the effect of working capital management on firm performance during the covid 19 period as compared to the crisis 2008 period. CATAR significantly and negatively influenced ROA but significantly and positively influenced TQ. In contrast, CLTAR and CCC significantly and positively influenced ROA but significantly and negatively influenced TQ. NWC significantly and positively influenced ROA only. To the best of our knowledge, this study is the first empirical research study to extend cross-country analysis in respect of non-financial firms to the developing countries’ context. The results of this study provide important managerial implications for firms. The different results for different firm performance proxies imply that firm managers must adopt the working capital policies which are profitable for firms and shareholders. Thus, firms in developing countries would be able to optimize their working capital according to the economic conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101224 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101224 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: H Maduku Author-X-Name-First: H Author-X-Name-Last: Maduku Author-Name: M.F Zerihun Author-X-Name-First: M.F Author-X-Name-Last: Zerihun Title: Qualitative analysis of transiting from informal to formal sector: The case of manufacturing and service businesses in Gauteng province of South Africa Abstract: The objective of this paper was to establish challenges and benefits on formalisation in South Africa using a qualitative approach. To meet the objective, 15 interviews were carried out with owners of small businesses that had just formalized in Johannesburg and Pretoria. This study contributes to the existing knowledge on small business formalisation by bringing evidence from formalised businesses. The research does so through asking unique questions that cannot be answered quantitatively. Using themes for analysis, the study found conditional formalisation, high levels of bureaucracy, unsustainable fees, information asymmetry, credit or capital unavailability and corruption as key challenges being faced by emerging entrepreneurs. In addition, the study also identified increased chances to benefit from BEE, improved access to information to supply the public sector, improved chances of securing credit, increased credibility of the business and better access to markets as the benefits that entrepreneurs derive from formalisation. This study recommends that informal businesses be supported through skills training initiatives and expanded credit opportunities so that they can be of better size and capacity to formalise. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095765 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095765 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ezo Emako Author-X-Name-First: Ezo Author-X-Name-Last: Emako Author-Name: Seid Nuru Author-X-Name-First: Seid Author-X-Name-Last: Nuru Author-Name: Mesfin Menza Author-X-Name-First: Mesfin Author-X-Name-Last: Menza Title: The effect of foreign direct investment on structural transformation in developing countries Abstract: This paper investigates the effects of foreign direct investment (FDI) on structural transformation using panel data from 44 developing countries and four newly industrialized countries from 1990 to 2018 by employing the generalized method of moment approach of Arellano-Bond (1991). The estimated results suggest that FDI inflows have a positive significant effect on the structural transformation. In addition, the paper explores the channels through which FDI affects structural transformation. The Principal Component Analysis (PCA) indicates that structural change contributes 55.95 percent to structural transformation, followed by capital accumulation (37.92 percent) and economic growth (6.13 percent). Particularly, manufacturing and service-sector output and employment growth, as well as urbanization, are major pathways via which FDI fosters structural transformation in developing countries. Therefore, special consideration should be given to FDI motivated by manufacturing exports, as well as policies that boost absorption capacity and enable labor mobility in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125658 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125658 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125658 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2107768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: SocratesKraido Majune Author-X-Name-First: SocratesKraido Author-X-Name-Last: Majune Author-Name: Kamau John Gathiaka Author-X-Name-First: Kamau John Author-X-Name-Last: Gathiaka Author-Name: Michael Ndwiga Author-X-Name-First: Michael Author-X-Name-Last: Ndwiga Title: Trade agreements and survival of service exports from Kenya Abstract: This study investigates the effect of GATS, a service-specific trade agreement, on the survival of service exports from Kenya to 176 countries between 1995 and 2019. Services are classified at a 1-digit level: travel, transport, computer and information, construction, financial, insurance, government, other business, and personal, cultural, and recreational services. The discrete-time probit model with random effects reveals that GATS reduces the survival of service exports by 0.78%. At the category level, GATS only increases the survival of construction and government services. GATS also reduces the survival of Kenya’s exports to Africa when geographical regions are considered. However, GATS boosts the survival of services when it is interacted with the quality of institutions and the Services Trade Restrictiveness Index (STRI). Accordingly, reducing regulations and general improvement of the quality of institutions can help countries reap the benefits of a service-specific trade agreement fully. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2107768 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2107768 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2056362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Karmi Visser Author-X-Name-First: Karmi Author-X-Name-Last: Visser Author-Name: Gerbus Swart Author-X-Name-First: Gerbus Author-X-Name-Last: Swart Author-Name: Joggie Pretorius Author-X-Name-First: Joggie Author-X-Name-Last: Pretorius Author-Name: Lin-Marie Esterhuyzen Author-X-Name-First: Lin-Marie Author-X-Name-Last: Esterhuyzen Author-Name: Tanja Verster Author-X-Name-First: Tanja Author-X-Name-Last: Verster Author-Name: Erika Fourie Author-X-Name-First: Erika Author-X-Name-Last: Fourie Title: Customer comfort limit utilisation: Management tool informing credit limit-setting strategy decisions to improve profitability Abstract: The key criteria for making business decisions is profit, so when making credit limit-setting strategy decisions, profitability will be the most important driver. The profitability of a credit limit-setting strategy is dependent on the customer’s utilisation of the limits set by the strategy. This points towards a need to determine the extent to which a limit can be increased before a customer’s utilisation will decline beyond the point of being profitable. This paper sets out to define a Customer Comfort Limit Utilisation (CCLU) measure that can be used to gauge a customer’s level of comfort (in terms of limit utilisation) with a newly proposed limit. The CCLU is defined as a function of the customer’s limit utilisation and credit limit; in simpler terms, it can be viewed as a function of balance growth vs limit growth. The neural network model that predicted utilisation first and then the CCLU based on the resulting utilisation values was selected as the final model. Once the final model was determined, it was then verified whether profitability could be improved by using a CCLU measure as a management tool when making limit-setting strategy decisions. It was found that strategies involving CCLU values could lead to increased profitability since CCLU values near 100 (i.e. the customer is 100% comfortable with the new limit and will utilise to the same extent as the previous one) are associated with higher key performance metrics levels. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2056362 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2056362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2056362 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Solomon Ahimah-Agyakwah Author-X-Name-First: Solomon Author-X-Name-Last: Ahimah-Agyakwah Author-Name: Edward Nketiah-Amponsah Author-X-Name-First: Edward Author-X-Name-Last: Nketiah-Amponsah Author-Name: Frank Agyire-Tettey Author-X-Name-First: Frank Author-X-Name-Last: Agyire-Tettey Title: Urbanization and poverty in Sub-Saharan Africa: evidence from dynamic panel data analysis of selected urbanizing countries Abstract: Urbanization in Sub-Saharan Africa (SSA) is generally highlighted as a puzzle that deviates from the stylized facts in the literature. Using data from a panel of 29 urbanizing countries in SSA from 1985 to 2019, the study employs the two-step system generalized methods of moments to investigate the effect of urbanization on the Poverty Headcount ratio and Poverty Gap. The estimated urbanization elasticities of poverty indicate that at growth rates, a 1 percentage point increase in urbanization rate induces 0.04 and 0.05 (0.07 and 0.09) percentage points decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Similarly, at levels, a 1 percent increase in urbanization level induces 0.22 and 0.32 (0.60 and 0.68) percent decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Consistently, these results show stronger effect of urbanization on the depth of poverty relative to the incidence of poverty. These findings reappraise the literature on the urbanization of poverty in SSA as well as provide a nuanced understanding of the effect of urbanization on the different class of poverty measures. Notwithstanding, the poverty reduction potential of urbanization is not automatic and requires enormous investment in public infrastructure to achieve. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109282 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109282 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2149491_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Beshir M. Ali Author-X-Name-First: Beshir M. Author-X-Name-Last: Ali Author-Name: Ioannis Manikas Author-X-Name-First: Ioannis Author-X-Name-Last: Manikas Author-Name: Balan Sundarakani Author-X-Name-First: Balan Author-X-Name-Last: Sundarakani Title: Food security in the United Arab Emirates: External cereal supply risks Abstract: The coronavirus pandemic and the Russian invasion of Ukraine have exposed the vulnerability of the food systems of import-dependent countries to supply chain disruptions. This study measured the short-term external cereal supply risks for the United Arab Emirates (UAE) by applying the Herfindahl–Hirschman Concentration Index (HHI) and the Shannon–Wiener Diversity Index (SWI) during 2012–2020. We measured the security of UAE’s external cereal supplies by taking the degree of UAE’s cereal import dependency, the level of political- and business-related risks of UAE’s cereal supplying countries, and the distance between UAE and its supplying countries into account. The results of the index values generally imply that UAE’s cereal external supply risk has been low during the sample period. However, the external wheat supply risk has increased since 2017. This was mainly attributable to UAE’s increasing dependence on less secured countries, i.e. countries with higher levels of risk assessment values such as Russia. UAE has heavily been dependent on one or two, mostly price competitive, sources for its cereal imports, which also raises the external cereal supply risk. The UAE’s increasing dependence on Russia as the main source of cereals and the increasing consolidation of sources pose a serious threat to sustaining food security. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2149491 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2149491 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2149491 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2137988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Lindokuhle Talent Zungu Author-X-Name-First: Lindokuhle Talent Author-X-Name-Last: Zungu Author-Name: Lorraine Greyling Author-X-Name-First: Lorraine Author-X-Name-Last: Greyling Author-Name: Irrshad Kaseeram Author-X-Name-First: Irrshad Author-X-Name-Last: Kaseeram Title: Financial development and income inequality: a nonlinear econometric analysis of 21 African countries, 1990-2019 Abstract: From 1990 to 2019, this study examines the nonlinear dynamic impact of financial development on income inequality in an unconventional policy regime in a panel of 21 African countries. More importantly, we use Panel Smooth Transition Regression to extend the existing debate on this subject, with roots back to the seminal work of G-J and many others, and add a twist by distinguishing between a conventional (1990–1999) and unconventional policy regime (2000–2019), as well as the threshold level at which financial development reduces inequality. Our baseline results will be supported by the Generalized Method of Moments. The PSTR model was chosen because it can account for features that dynamic panel techniques cannot, such as endogeneity, homogeneity, cross-country variability, and time instability within the model. We found evidence of a non-linear effect between the two variables, with the threshold found to be 21.90% of GDP, below which financial development reduces inequality in Africa, and this confirms the U-shape in unconventional policy regimes and the G-J in conventional policy regimes. Unconventional monetary policies were found to trigger the financial-inequality relationships. The focal policy recommendation is that the financial sector be given adequate consideration and recognition by, inter alia, implementing appropriate financial reforms, developing an adequate investment strategy, and maintaining spending on science and technology investment in African countries below the threshold. Again, when implementing unconventional monetary policies in African countries, extreme caution is required. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2137988 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2137988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2137988 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2043509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tadesse Zenebe Lema Author-X-Name-First: Tadesse Zenebe Author-X-Name-Last: Lema Author-Name: Solomon Estifanos Masresha Author-X-Name-First: Solomon Estifanos Author-X-Name-Last: Masresha Author-Name: Markew Mengsitie Neway Author-X-Name-First: Markew Mengsitie Author-X-Name-Last: Neway Author-Name: Eshetu Molla Demeke Author-X-Name-First: Eshetu Molla Author-X-Name-Last: Demeke Title: Analysis of the technical efficiency of barley production in North Shewa Zone of Amhara regional state, Ethiopia Abstract: Inefficiency in barley production is among the challenges to agricultural transformation in Ethiopia. North Shewa zone of Amhara regional state is not exception in this regard. As such addressing inefficiency is among the crucial efforts for agricultural transformation. The objective of the current study was to analyze the technical efficiency of barley production in north Shewa zone of Amhara regional state, Ethiopia. For this purpose 385 farm households were randomly selected from four purposively selected districts in the zone. The one-step maximum likelihood estimation result of the Cobb-Douglas production function result reveals that seed application, DAP fertilizer application, UREA fertilizer application, land under barley production, labor and oxen ownership have a positive and significant effect on barley production. The predicted average technical efficiency score is found to be 85.06 percent implying that given existing input mix and technology it is possible to increase the production of barley on average by 14.94%. The study found that education, non/off farm income, access to market information, access to extension service and tropical livestock unit are found to have a positive and significant effect on the technical efficiency of barley production while distance from the market and marital status (divorced) have a negative significant effect on technical efficiency of barley production. The result suggests that the government should encourage farmers vocational trainings and participation in off/non-farm activities, improve access to market information, access to extension services, livestock ownership and access to market to improve barley production efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2043509 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043509 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2043509 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2048483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dereje Regasa Author-X-Name-First: Dereje Author-X-Name-Last: Regasa Author-Name: Bekele Abraham Author-X-Name-First: Bekele Author-X-Name-Last: Abraham Title: Financial constraints and trade credit: Evidence from Ethiopian firms Abstract: There is an extensive literature that links firms’ access to formal financial services and trade credit. This is more relevant for firms operating in financially less developed countries. These firms could potentially face a binding bank loan constraint due to the distortions related to information asymmetry and moral hazard. Against this backcloth, this paper will explore the relationship between trade credit and financial constraints for Ethiopian firms. The main objective of this study is to explore the relationship between trade credit practice and financial constraints for Ethiopian manufacturing and service firms. We exploit the repeated cross-sectional data of 2011 and 2015 made available by the World Bank’s Ethiopian Enterprise Survey. To address the endogeneity problem between financial constraint and trade credit, the paper employs an instrumental variable (IV) approach. We find a negative relationship between financial constraint and trade credit use. In particular, financially constrained firms have a trade credit use which is about 10 to 18 percentage points lower than unconstrained firms, suggesting that bank credit constrained firms are also trade credit constrained. One policy implication is that addressing constraints in formal financing is more likely to increase the availability of alternative forms of finance such as trade credit. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2048483 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2048483 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2037251_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yohanes Mean Duli Author-X-Name-First: Yohanes Author-X-Name-Last: Mean Duli Author-Name: Wihana Kirana Jaya Author-X-Name-First: Wihana Author-X-Name-Last: Kirana Jaya Author-Name: Samsubar Saleh Author-X-Name-First: Samsubar Author-X-Name-Last: Saleh Author-Name: Evita H. Pangaribowo Author-X-Name-First: Evita H. Author-X-Name-Last: Pangaribowo Author-Name: Goodness Aye Author-X-Name-First: Goodness Author-X-Name-Last: Aye Title: Why do some regions exhibit a greater degree of manufacturing export and entrepreneurship activities than others? Evidence from Indonesia Abstract: Manufacturing export and entrepreneurship have become increasingly important for economic development. However, there is limited information systems research examining the role of regional ICT infrastructure, knowledge infrastructure, democracy, and the number of foreign tourists for entrepreneurship activities and manufacturing export. This study investigates the impact of ICT infrastructure, knowledge infrastructure, democracy, and the number of foreign tourists on entrepreneurship activities and manufacturing export. Using The PLS-SEM, we found that foreign tourists positively and significantly impact manufacturing exports while knowledge infrastructure and entrepreneurship activities negatively affect manufacturing exports. The findings also supported the significant role of ICT infrastructure and foreign tourists in entrepreneurship activities. This result offers practical implications for policymakers in designing a roadmap of entrepreneurship and manufacturing export policies in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2037251 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2037251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2037251 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139884_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mosab I Tabash Author-X-Name-First: Mosab I Author-X-Name-Last: Tabash Author-Name: Muzaffar Asad Author-X-Name-First: Muzaffar Author-X-Name-Last: Asad Author-Name: Ather Azim Khan Author-X-Name-First: Ather Azim Author-X-Name-Last: Khan Author-Name: Umaid A Sheikh Author-X-Name-First: Umaid A Author-X-Name-Last: Sheikh Author-Name: Zaheerudin Babar Author-X-Name-First: Zaheerudin Author-X-Name-Last: Babar Title: Role of 2008 financial contagion in effecting the mediating role of stock market indices between the exchange rates and oil prices: Application of the unrestricted VAR Abstract: This research article explores the mediating role of stock market indexes on the link between exchange rate variations and oil prices by utilizing unrestricted VAR. Previously mainstream research only explained the direct dynamism between the two variables. However, any transmission mechanism for explaining the transmission of shocks from oil prices toward the currency rates has been ignored. Therefore, we have utilized multiple traditional unit root testing procedures followed by a co-integration technique by Johansen (1988). We find that stock market indexes serve as a transmission channel between oil price variability and exchange rate during the pre and post financial recession. Moreover, the dynamic inverse association between the local currency depreciation and stock indices shows the bidirectional return spillover during the pre-contraction period. After the contraction period, the mediating role of stock market indexes is still evident but without the dynamic association between exchange rate and stock indexes. However, during the pre-recession, the transmission mechanism of shocks from the stock indices toward the exchange rate is triggered by oil price negative shocks, whereas after the crisis, the shocks from the stock indices towards the exchange rate are mainly due to positive oil price shocks. This research contributes to the mainstream literature by challenging the theoretical models about the direct dynamism between oil prices and currency and found the mediating role of stock market indexes by utilizing a portfolio balanced approach Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139884 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139884 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Neeraj Gupta Author-X-Name-First: Neeraj Author-X-Name-Last: Gupta Author-Name: Sachin Mittal Author-X-Name-First: Sachin Author-X-Name-Last: Mittal Author-Name: Tarun Agarwal Author-X-Name-First: Tarun Author-X-Name-Last: Agarwal Author-Name: Priti Bakhshi Author-X-Name-First: Priti Author-X-Name-Last: Bakhshi Author-Name: Minati Sahoo Author-X-Name-First: Minati Author-X-Name-Last: Sahoo Title: Ownership concentration and bank performance: Evidence from India Abstract: The purpose of this study is to examine the impact of ownership concentration on the performance of Indian commercial banks. A panel data approach has been used in this study. Particularly, the effect estimation and GMM has been used in this study to examine the relationship between ownership concentration and bank performance during 2009–2010 to 2018–2019. The findings reveal that the largest shareholder impacts the bank’s performance positively. The results are robust across the various proxies of bank performance, and sub-samples based on ownership and size of the bank. The present study may be useful for Indian banking regulators and investors to understand the impact of ownership concentration on bank performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114177 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2151113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hassen Guenich Author-X-Name-First: Hassen Author-X-Name-Last: Guenich Author-Name: Khalfaoui Hamdi Author-X-Name-First: Khalfaoui Author-X-Name-Last: Hamdi Author-Name: Néjib Chouaibi Author-X-Name-First: Néjib Author-X-Name-Last: Chouaibi Title: Asymmetric response of Investor sentiment to Economic Policy Uncertainty, interest rates and oil price uncertainty: Evidence from OECD countries Abstract: The question of the economic policy uncertainty, interest rate and oil price volatility and their effects on investor sentiment is rarely addressed by the literature. Thus, we are motivated to provide new insights into the study of these effects based on asymmetric analysis. Our empirical study is based on the monthly frequency of 22 OECD countries and ranges from January 2000 to June 2021. Using the Nonlinear Autoregressive Distributed Lag (NARDL) panel model, we find that economic policy uncertainty, interest rate and oil price uncertainty have disproportionately asymmetric effects on OECD investor sentiment in the short and long run. Indeed, when occurring volatility of these variables, investors will certainly adopt, according to their sentiments, different directions and strategies of investment decision-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2151113 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2151113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2151113 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087299_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mihret Wolde Author-X-Name-First: Mihret Author-X-Name-Last: Wolde Author-Name: Leta Sera Author-X-Name-First: Leta Author-X-Name-Last: Sera Author-Name: Tesfaye Melaku Merra Author-X-Name-First: Tesfaye Melaku Author-X-Name-Last: Merra Title: Causal relationship between income inequality and economic growth in Ethiopia Abstract: The aim of this study was to see the direction of causality and to investigate the existence of a long-run relationship between income inequality and economic growth in Ethiopia. The study has employed annual time series data over the period of 1980 up to 2017. This study is conducted by utilizing the Autoregressive Distributive Lag (ARDL) techniques. The ARDL bounds testing approach has been used for cointegration and the error correction method (ECM). The unit root problem is tested by the use of the ADF unit root test and the Phillips-Perron test. The researcher concluded that there is a negative relationship between income inequality and economic growth in the long run. However, in the short run, there is a positive relationship. The magnitude of the ETC coefficient is −1.004961 justified about 100.4961 percent, and the disequilibrium annually converges towards long-run equilibrium. In addition, VECM granger causality tests show that unidirectional causality runs from economic growth to income inequality both in the short and long run. The government should focus their efforts on the middle and poorest classes to reduce inequality and support sustainable economic growth of Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087299 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087299 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2052401_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Isabella Jebiwott Kiplagat Author-X-Name-First: Isabella Jebiwott Author-X-Name-Last: Kiplagat Author-Name: Mercy G Mugo Author-X-Name-First: Mercy G Author-X-Name-Last: Mugo Author-Name: Martine O. Oleche Author-X-Name-First: Martine O. Author-X-Name-Last: Oleche Author-Name: Francesco Tajani Author-X-Name-First: Francesco Author-X-Name-Last: Tajani Title: EFFECT OF SYNERGY BETWEEN PROVIDER AND CONSUMER QUALITY OF HEALTHCARE ON CHILD HEALTH IN Kenya Abstract: Besides access to health services, quality of health care is recognized as a key element in putting an end to preventable childhood illnesses. While the quality of health care and its effects on health is often assessed at the facility level, consumers of health care are co-producers of quality health care since they are capable of using their knowledge and resources to enhance their own health and that of their children. Using the 2014 Kenya Demographic Health Survey data, this study sought to examine the interaction effect of the provider and consumer quality of health care on child health as measured by child weight-for-age (WAZ). Controlling for potential endogeneity, the results of the Two-Stage-Residual-Inclusion model show that the coefficient of the interaction between provider quality of health care as indicated by a dispensary, a health center and a private clinic and consumer quality of healthcare index was positive and significant. This suggests that consumer quality of health care enhances child health given the provider quality of health care. Policies targeted at addressing quality of health care should thus focus on simultaneously improving both supply and demand side quality of health care. Other variables that were key in influencing child nutritional status include; child sex and sex, twin birth and belonging to a higher wealth index. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2052401 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2052401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2052401 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2022273_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Serebour Quaicoe Author-X-Name-First: Serebour Author-X-Name-Last: Quaicoe Title: Estimating the modulating role of economic development on the effect of elections on government expenditure in Africa Abstract: The study contributes to the political economy debate in Africa by examining the extent to which economic development mediates the effect of elections on government expenditure. To this end, the study employs macrodata spanning 1985–2015 on 43 African countries for the analysis. Robust evidence from the system GMM estimator shows that: (1) election periods significantly induce government expenditure in Africa, and (2) economic development is significant in reducing the use of fiscal surprise in election periods. Policy recommendations are provided in the end. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2022273 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2022273 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Omolola Oluwatoyin Adeola Author-X-Name-First: Omolola Oluwatoyin Author-X-Name-Last: Adeola Author-Name: Meshach Jesse Aziakpono Author-X-Name-First: Meshach Jesse Author-X-Name-Last: Aziakpono Title: Unlocking the relationship between capital flows and economic growth in a small open economy of Kenya: An empirical investigation Abstract: This study examines the relative effects of the different types of international financial flows on economic performance in Kenya both in the long- and short-runs using the autoregressive distributed lag model (ARDL) bounds approach and data for the period 1970 to 2017. This is against the backdrop of the government of Kenya which has targeted attracting foreign capital inflows as one of the key measures to achieving the economic pillar of the Kenya Vision 2030. The aim is to achieve an economic growth rate of 10 per cent annually and sustaining the same until 2030. After a very rigorous and careful model selection exercise, the results robustly reveal a very strong long-run causality running solely from portfolio equity to economic growth with a positive and significant effect on economic growth. In the short-run, the effect of portfolio equity on economic growth is also very positively strong. In contrast, all the other capital flows have very weak long-run relationship with economic growth with causality running only from economic growth to the capital flows. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085608 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085608 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085608 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2024723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Garoui Nassreddine Author-X-Name-First: Garoui Author-X-Name-Last: Nassreddine Title: Structural analysis of factors influencing environmental disclosure Abstract: Environmental management issues have become a global concern and many governments have developed policies that include environmental regulations. Under this framework, companies have become responding to the demands of all different parties to legitimize their actions. Studies have increased in the field of environmental reporting, but unfortunately, this does not indicate an increase in companies’ awareness of the factors that determine the preparation of sustainability reports and the disclosure of environmental information. This paper uses the qualitative research technique to study the factors influencing environmental information disclosure. A structural analysis approach is applied to establish the interrelationship between the various factors. From our analysis, it has been found that profitability, gender diversity and board independence are the important and critical factors that influence environmental information disclosure. At the end of the research, technical use restrictions of interpretive structural modeling were discussed, and then proposals for developing the research were discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2024723 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2024723 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dick Chune Midamba Author-X-Name-First: Dick Chune Author-X-Name-Last: Midamba Author-Name: Ogei Kizito Author-X-Name-First: Ogei Author-X-Name-Last: Kizito Title: Determinants of access to trainings on post – harvest loss management among maize farmers in Uganda: a binary logistic regression approach Abstract: Post-harvest losses (PHL) reported in maize production put Sub-Saharan African countries at higher risks of food insecurity. Recent studies reported that higher percentage of PHLs occur during the production stage when farmers are in full control of the crop, suggesting that farmers are not equipped with PHL management skills. This study therefore aimed at assessing the determinants of access to trainings on PHL management among maize farmers in Uganda. Primary data were drawn from 246 randomly sampled farmers in Alebtong District followed by Binary logit analysis. The results depicted that majority of the farmers (58%) did not have access to PHL management trainings. However, those who had access sourced it from extension workers (40.65%), farmers’ groups (22.76%) and farmer-to-farmer trainings (12.20%). The main barriers limiting access to the trainings were unawareness of the PHL trainings and inaccessibility of the training centers. Farm size, group membership, maize output and marital status had positive effect on farmers’ access to PHL management trainings while farm location, and distance to the training centers had a negative effect on access to PHL management trainings. Based on the findings, there is need for public sensitization on the benefits of the PHL trainings, farmers should also be motivated to join farmer-based groups and association where they would learn more about the PHL trainings. In addition, the government should open more training centers and employ more training agents so that many farmers can be reached and trained on how to handle and mitigate PHLs in maize. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148359 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148359 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2113495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ayalew Ali Abebe Author-X-Name-First: Ayalew Author-X-Name-Last: Ali Abebe Title: The effect of IFRS on the financial ratios: Evidence from banking sector in the emerging economy Abstract: Financial ratios are ratios that are used to measure a company’s performance by analyzing its financial records. In light of this claim, this study investigates the effect of IFRS on the financial ratios among seventeen (17) Ethiopian commercial banks. The research hypotheses are addressed by comparing financial ratios computed under Ethiopian GAAP with those computed under the IFRS regime from 2016 to 2020 using Wilcoxon Signed Rank and the Normality Test. The finding revealed that IFRS has a significant effect on the liquidity ratio of commercial banks in Ethiopia, and banks reported higher liquidity under IFRS than under Ethiopian GAAP. The finding also revealed that IFRS has a significant effect on commercial banks’ return on equity and that banks recorded a higher return on equity under IFRS than under Ethiopian GAAP. Moreover, the study found IFRS has a significant effect on the leverage ratio of commercial banks in Ethiopia, and banks reported lower leverage under Ethiopian GAAP than under IFRS. However, the finding revealed that IFRS has an insignificant effect on the return on assets of commercial banks in Ethiopia, and banks recorded a lower return on assets under IFRS than under Ethiopian GAAP. The study concluded that the difference in return on equity, liquidity, and leverage of commercial banks following the adoption of IFRS is significant. Therefore, investors and financial analysts should pay close attention to the return on equity (ROE), liquidity ratio (LR), and leverage (LEV) because they are significantly affected by the adoption of IFRS. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2113495 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2113495 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2113495 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2145748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Adane Melak Beyene Author-X-Name-First: Adane Melak Author-X-Name-Last: Beyene Author-Name: Ayele Tesfahun Gashu Author-X-Name-First: Ayele Tesfahun Author-X-Name-Last: Gashu Author-Name: Misganaw Anteneh Tegegne Author-X-Name-First: Misganaw Anteneh Author-X-Name-Last: Tegegne Author-Name: Atrsaw Anteneh Mihertie Author-X-Name-First: Atrsaw Author-X-Name-Last: Anteneh Mihertie Title: Is the longstanding local rice cultivar “X-Jigna” being replaced by the improved variety “Shaga” in fogera plain, Northwest Ethiopia? Abstract: This study investigates how far and by what factors the local rice cultivar X-Jigna is being replaced by the improved variety Shaga in the Fogera plain, Ethiopia. It applied a mixed-method research design. The explanatory method was used to analyze qualitative data, while simple descriptive and inferential statistics were used to analyze quantitative data. As a result, the adoption level of improved rice varieties was found to be too low (15%), while the vast majority of rice-growing households used X-Jigna. However, the explanatory analysis highlighted that Shaga outperforms X-Jigna in resilience to diseases and shattering, higher grain yield, and softness of injera and flour density traits. Consequently, its percentage share of area coverage increased from 1 to 12, while X-Jigna’s decreased from 95 to 84 within a short time. This phenomenon demonstrates great strides have been made in replacing X-Jigna with Shaga. Based on the results of logistic regression analysis, age, educational background, and experience in rice cultivation of household heads, land-owned size, and road and credit access significantly influence adoption decisions. Therefore, it is suggested that offering youth-oriented extension services, expanding education services, improving road infrastructure, and reducing bureaucracy in credit services are areas to be emphasized to improve adoption. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2145748 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145748 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2145748 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2026005_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Minh Ha Author-X-Name-First: Nguyen Author-X-Name-Last: Minh Ha Author-Name: Tran Thi Phuong Trang Author-X-Name-First: Tran Thi Author-X-Name-Last: Phuong Trang Author-Name: Pham Minh Vuong Author-X-Name-First: Pham Minh Author-X-Name-Last: Vuong Title: Relationship between tax avoidance and institutional ownership over business cost of debt Abstract: Beginning with classical theories on finance, such as the capital structure theory, the trade-off theory of capital structure, and the pecking order theory, the literature shows a negative correlation between tax avoidance and institutional ownership with respect to the business cost of debt. However, the impact of tax avoidance and institutional ownership on corporate debt policy in Vietnam is an under-researched topic. The aim of the study is to identify the effect of those mentioned factors on business borrowing policy, using data on 207 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam from 2008 to 2016. The study employs model proposed by Lim in 2009 to achieve mentioned research object with Feasible Generalized Least Squares (FGLS) method to overcome for any defection. The study results show no conclusive empirical evidence of a relationship between business’s cost of debt and tax avoidance and institutional ownership. This result contrasts with the conclusion in previous studies and can be explained by the characteristics of the funding market in Vietnam where financial organizations often focus on business results and management efficiency in making lending decisions and this characteristic is at no sign of change soon. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2026005 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2026005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2026005 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2062911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Achraf Haddad Author-X-Name-First: Achraf Author-X-Name-Last: Haddad Author-Name: Mohamed Naceur Souissi Author-X-Name-First: Mohamed Naceur Author-X-Name-Last: Souissi Title: The impact of Shariah Advisory Board characteristics on the financial performance of Islamic banks Abstract: Theoretical approaches and demonstrated repertoires in the Islamic finance literature have formed a divergent and inconsistent system that did not truly value the importance of the Shariah Advisory Board’s quality and practices. The real impacts generated by the Shariah Advisory Board on the Islamic banks’ financial performance have not yet been thoroughly investigated in detail. While these impacts need the development of a metrological, dynamic, and methodological investigation, we delved into the specific effect of Shariah Advisory Board on the Islamic banks’ financial performance in all continents. To explore the relationship between the selected variables through the application of the fixed and random effects method, we used 180 Islamic banks from 56 countries during the period (2010–2019). The empirical results revealed that the Shariah Advisory Board size, the number of meetings and the presence of Shariah advisers improved the Islamic banks’ financial performance of Islamic banks. However, the presence of financial or accounting experts in the Shariah Advisory Board deteriorated their financial performance. Because the real impacts generated by the Shariah Advisory Board on the Islamic banks’ financial performance are not yet investigated in detail, we analyzed not only the practical symptoms of the Shariah Advisory Board’s effects on the Islamic banks’ financial performance, but also, we tried to solve the ambiguity, and we provide the first detailed analysis that concentrated on the impacts of the determinants’ quality of the Shariah Advisory Board on the Islamic banks’ financial performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2062911 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2062911 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2066764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ioannis Chasiotis Author-X-Name-First: Ioannis Author-X-Name-Last: Chasiotis Author-Name: Dimitrios Konstantios Author-X-Name-First: Dimitrios Author-X-Name-Last: Konstantios Author-Name: Vassilios-Christos Naoum Author-X-Name-First: Vassilios-Christos Author-X-Name-Last: Naoum Title: Asymmetries in the capital structure speed of adjustment: The idiosyncratic case of the maritime industry Abstract: This study investigates asymmetries in the capital structure speed of adjustment in the case of a capital-intensive industry. Employing a sample of globally listed maritime, manufacturing and services firms between 1995 and 2020, we estimate a regime-switching partial adjustment model, to test whether the capital structure speed of adjustment depends on a firm’s positioning relative to the target. After accounting for the fractional, bounded nature of leverage ratios using a DPF estimator we document that maritime firms exhibit a higher (lower) speed of adjustment when they lie below (above) their target. Our empirical findings suggest that this asymmetric behavior holds across industries but is more profound in maritime firms emphasizing this industry’s particularity. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2066764 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2066764 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_1999058_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kunwar Sanjay Tomar Author-X-Name-First: Kunwar Sanjay Author-X-Name-Last: Tomar Author-Name: Subodh Kesharwani Author-X-Name-First: Subodh Author-X-Name-Last: Kesharwani Title: Asymmetric effect of monetary policy on Indian stock market sectors: Do monetary policy stimulus transpire the same effect on all sectors? Abstract: Most studies for the monetary policy effect on stock markets have concentrated on using the primary index to proxy the stock market. The present paper, avoiding “aggregation bias”, seeks to unbundle the effect of monetary policy on the stock market in two ways. First, the non-linear model is used. Second, sector-level monetary policy variable association and strength is known. Nonlinear Auto-Regressive Distributed Lag method (NARDL) has been used to separate the effect of monetary policy implications. The positive and negative separation of monetary policy variables shows meaningful information relating to each sector. Furthermore, the NARDL model provides the Error Correction equation for future prediction of the sector performance. The Error Correction Term (ECT) is significant for all the sectors, besides Information Technology. While ECT is highest for the Power sector, the lowest is reported for the Metal sector. Inflation increase has substantially more effect on sectors then its decrease. For short-run, real exchange rate positive (REER_POS (−2)), with a lag of 2 months, is effective for all the sectors. The health care sector stands out in its sensitivity to monetary policy variables. The asymmetric response of the Sector equity markets to monetary policy variables throws new insight for the policymakers, business managers, and fund managers. The nonlinearity can be helpful for business managers to relate revenue and valuation to monetary policy. Likewise, the portfolio fund managers can prepare for the expected changes in the economy to reallocate and rebalance their portfolios. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.1999058 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:1999058 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2067022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sergii Arkhiiereiev Author-X-Name-First: Sergii Author-X-Name-Last: Arkhiiereiev Author-Name: Anastasiia Mytrofanova Author-X-Name-First: Anastasiia Author-X-Name-Last: Mytrofanova Title: Measuring the international business sector and its two-decade dynamics in OECD countries Abstract: The aim of this study is to assess the contribution of the international business sector (IBS) to the development of the national economy. A new index has been developed, which is expressed as a primary income share and makes it possible to analyze IBS structure both by the primary income from abroad (received) share and by the value added export share. This study analyzes the long-term development trends of IBS and its structural shifts for OECD and top non-OECD countries. Our new index has increased markedly in OECD countries, where IBS generated a third of primary income in the middle of the second decade of the analyzed period. In contrast, in top non-OECD member countries, this index grew slowly, while IBS generated about one-fifth of primary income. To analyze qualitative shifts in IBS growth in terms of cluster analysis OECD countries have been grouped according to the prevailing IBS models. The results showed that OECD countries changed their basic IBS model moving from the Partial model to the Dual one. It is the change in this basic model that accounts for the long-term trend of increasing gap in the development level of IBS in OECD and top non-OECD countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2067022 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2067022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2067022 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2066762_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ali A. Shehadeh Author-X-Name-First: Ali A. Author-X-Name-Last: Shehadeh Author-Name: Sadam M. Alwadi Author-X-Name-First: Sadam M. Author-X-Name-Last: Alwadi Author-Name: Mohammad I. Almaharmeh Author-X-Name-First: Mohammad I. Author-X-Name-Last: Almaharmeh Title: Detecting and Analysing Possible Outliers in Global Stock Market Returns Abstract: We employ a Boxplot method for detecting and analyzing outlying daily returns of 14 international stock market indices sampled from around the world. The main objective of the paper is to provide an extensive analysis of the main characteristics, features and effects of the detected outlier returns. The results show that from about 4–10% of observations constitute outlying returns with an average of 6%. Conservatively, about 1.4% of return series are extreme outliers. Negative outliers are found more frequent, influential, severe and transmissible. The bulk of detected outliers are found to be in the magnitude of three standard deviations. Also, outliers tend to cluster together, both within individual return series over time and across stock markets. We find a sequential pattern in outlier occurrence within individual return series, and a concurrent pattern across stock markets. Moreover, adjusting for outlying returns leads to a decrease in standard deviation, negative skewness and kurtosis by about 18%, 74% and 69% on average, respectively. We do not find consistent evidence that advanced and well-developed stock markets have less frequent and/or sever outliers. Overall, the results and analysis of the paper provide important considerations about international stock market returns which are relevant to stock investment, portfolio and risk management. The results show that the best (worst) outlying returns which represent about only 1% of the return observations have an enormous effect on the stock return performance and realization. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2066762 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2066762 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Minh H. Do Author-X-Name-First: Minh H. Author-X-Name-Last: Do Author-Name: Vo Thanh Tam Author-X-Name-First: Vo Author-X-Name-Last: Thanh Tam Author-Name: Nguyen Kim-Duc Author-X-Name-First: Nguyen Author-X-Name-Last: Kim-Duc Title: Investigating intellectual capital: The role of intellectual property rights reform Abstract: We investigate the impact of intellectual capital (IC) on firm performance (FP). This study contributes to the literature on IC by extending the IC components and exploring the moderating effect of intellectual property right (IPR) reform on the IC–FP association. An analysis of a dataset of non-financial enterprises with 6,303 firm-year observations collected from ASEAN member countries from 2009 to 2019 reveals thatFP is positively related to IC and IC components. Human capital is found to be the leading element because it exerts direct as well as indirect influences on FP. On the other hand, IPR determines both significance and the strength of the relationship between IP and FP. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106630 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106630 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Conrad Murendo Author-X-Name-First: Conrad Author-X-Name-Last: Murendo Author-Name: Grown Chirongwe Author-X-Name-First: Grown Author-X-Name-Last: Chirongwe Author-Name: Givious Sisito Author-X-Name-First: Givious Author-X-Name-Last: Sisito Title: Food expenditure shares and income elasticities in Zimbabwe: Accounting for gender and poverty differences Abstract: This study analysed food expenditure patterns and income elasticities differentiated by gender of household head and income levels. Data came from 32, 256 households drawn from the Zimbabwe Poverty, Income, Consumption and Expenditure Survey of 2017. Female headed households had higher vegetable and fruit expenditures while male headed households had higher expenditure shares on animal protein sources. Poorer households had poor dietary choices characterized by higher consumption of starchy foods and lower consumption of fruits, eggs, and milk. All income elasticities of all food items and groups were positive, indicating they were normal goods and increasing income will contribute to more diversified diets. Richer groups spend a lower share of their income on food compared to their poorer counterparts. The income elasticities for vegetables, bread, maize, and poultry were high for the poorest households, implying an increase in income would substantially increase their consumption. Policies aimed at increasing household income are vital to improve food consumption. Poor households and male headed households allocated higher proportion of income to food budget than the non-poor and female headed households. Food aid and social protection schemes, for example, income transfers should target very poor households to help them get access to better diets and cushion them from food price increase. Food consumption patterns and income elasticities varied by gender of household head and income group. Therefore, targeted food policies should be formulated based on specific food demand patterns for each group of households. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101241 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101241 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2098608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Meseret Dame Tafa Author-X-Name-First: Meseret Author-X-Name-Last: Dame Tafa Author-Name: Solomon Tessema Worku Author-X-Name-First: Solomon Author-X-Name-Last: Tessema Worku Title: Determinants of private commercial banks deposit in Ethiopia Abstract: This study aimed to investigate the determinant of private commercial bank deposits in Ethiopia over eighteen years (2000–2017). To achieve the research objectives, an explanatory research design and a quantitative research approach were employed. In addition, the study has targeted sixteen private commercial banks currently operating in Ethiopia. Data obtained from selected banks were analyzed by using descriptive statistics and random effect model analysis. The regression result shows that three internal variables such as loan to deposit ratio, profitability and the number of bank branches and two macroeconomic variables such as unemployment rate and economic growth rate have a significant effect on the total deposit of private commercial banks. Based on the study finding, researchers recommended that all private commercial banks are required to aggressively expand their branches comparatively to the commercial bank of Ethiopia, and government bodies should give more attention to sustainable economic growth and should work on unemployment reduction. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2098608 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098608 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2098608 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2018163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohd Atif Author-X-Name-First: Mohd Author-X-Name-Last: Atif Author-Name: Mustafa Raza Rabbani Author-X-Name-First: Mustafa Author-X-Name-Last: Raza Rabbani Author-Name: Hana Bawazir Author-X-Name-First: Hana Author-X-Name-Last: Bawazir Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Author-Name: Daouia Chebab Author-X-Name-First: Daouia Author-X-Name-Last: Chebab Author-Name: Sitara Karim Author-X-Name-First: Sitara Author-X-Name-Last: Karim Author-Name: Amani AlAbbas Author-X-Name-First: Amani Author-X-Name-Last: AlAbbas Title: Oil price changes and stock returns: Fresh evidence from oil exporting and oil importing countries Abstract: The study examines the vital connection between stock returns and oil price changes for oil exporting/importing countries separately. We present evidence employing granger causality, impulse response and error variance decomposition based on panel vector autoregression. The results of panel granger causality suggested that after oil price crash owing to covid-19 pandemic, the interdependence between oil and stock price changes increased. Similar results were revealed by impulse response graphs and forecast error variance decomposition. Specifically, in the period marked by the rapid outbreak of the covid-19 pandemic, causality from oil to stocks increased. Although we found that both oil exporting and oil importing countries were affected in a similar way, oil price changes had a larger impact on oil exporting countries. The findings of the present study have implications for investors and fund managers. By incorporating crude oil price in the prediction models, the accuracy of stock returns forecast can be improved. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2018163 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2018163 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2018163 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2023264_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sami Gharbi Author-X-Name-First: Sami Author-X-Name-Last: Gharbi Author-Name: Hidaya Othmani Author-X-Name-First: Hidaya Author-X-Name-Last: Othmani Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Threshold effect in the relationship between family ownership and firm performance: A panel smooth transition regression analysis Abstract: This paper examines the relationship between family ownership and firm performance over the period 2009–2017 for a large sample of French-listed firms. Previous research showed that family ownership can bring both benefits and costs to firms. Empirical results in whether it enhances or undermines firm performance are inconclusive. This paper aims to further our understanding of the complex relationship between family ownership and firm performance. It clarifies how family owners influence on firm performance depends on their ownership levels. By performing Panel Smooth Transition Regression model (PSTR), we find that the relationship between family ownership and firm performance is non-linear. The model has one threshold at the 37.62% of family ownership and two extreme regimes. The results show that below the threshold, the relation is negative. Family members have fewer incentives to bear the cost of effective monitoring. However, above the estimated threshold, family ownership has a positive impact on firm performance. This paper supports the view that family owners are more motivated to enhance performance when they hold large stake of capital in the firm as family wealth is closely related to firm profitability. These findings provide useful insights for investors seeking investment opportunities in firms with family ownership as the latter constitute a large proportion of publicly listed firms in the world. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2023264 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023264 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2023264 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087285_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tasew Tadesse Author-X-Name-First: Tasew Author-X-Name-Last: Tadesse Author-Name: Tariku Gebremedhin Zeleke Author-X-Name-First: Tariku Author-X-Name-Last: Gebremedhin Zeleke Title: The impact of the productive safety net program (PSNP) on food security and asset accumulation of rural households’: evidence from Gedeo zone, Southern Ethiopia Abstract: Ethiopia’s productive safety net program (PSNP) is aimed at providing transfers to the food insecure people in chronically food-insecure woredas. The program’s objectives include improving food security, protecting assets, and strengthening household and community resilience to shocks. This study evaluates the impact of PSNP on the beneficiary households’ food security, income, and asset holdings in the Gedeo administrative zone of Southern Ethiopia. We use survey data from 395 randomly selected households, out of which 195 are beneficiaries and 197 non-beneficiaries. Methodologically, we employ the propensity score matching (PSM) method to assess the impact of the PSNP on the welfare of beneficiary households. For this purpose, we use two specific outcomes of the PSNP: food security and asset holdings of participating households. Using the propensity score matching method, we find that the PSNP enhances the consumption expenditure, daily calorie intake, and annual income of participating households relative to a similar group of non-participating poor households. Our findings suggest that the PSNP is vital to improving income and food security at the household level in chronically food-insecure areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087285 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087285 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Muhammad Ishfaq Author-X-Name-First: Muhammad Author-X-Name-Last: Ishfaq Author-Name: Muhammad Usman Arshad Author-X-Name-First: Muhammad Usman Author-X-Name-Last: Arshad Author-Name: Muhammad Kashif Durrani Author-X-Name-First: Muhammad Kashif Author-X-Name-Last: Durrani Author-Name: Muhammad Saleem Ashraf Author-X-Name-First: Muhammad Saleem Author-X-Name-Last: Ashraf Author-Name: Ahmad Qammar Author-X-Name-First: Ahmad Author-X-Name-Last: Qammar Title: Foreign exchange markets, behavior of options volatility and bid-ask spread around macroeconomic announcements Abstract: The purpose of this study is to examine the role of options volatility and bid-ask spread as microstructural variables in determining whether the foreign exchange market’s price formation process in response to macroeconomic announcements is characterised by changes in risk perception and transaction costs. The findings suggest that behavioural characteristics of market participants appear to trump macroeconomic considerations. The volatility indices and bid-ask spreads were found more sensitive to announcements than forex returns, which directly imply weak assimilation of common knowledge into exchange rates. The forex returns, bid-ask spread, and volatility indices demonstrated less vulnerability towards Chinese announcements than the USA, UK, Japan, and Euro. Moreover, findings distinctly signify the role of China as a global liquidity provider by reducing trading costs in the foreign exchange markets. The implications suggest that core macroeconomic models should incorporate agents’ heterogeneous expectations based on risk perceptions than the order flow approach. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095772 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095772 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gilbert K. Amoako Author-X-Name-First: Gilbert K. Author-X-Name-Last: Amoako Author-Name: Ebenezer Boateng Author-X-Name-First: Ebenezer Author-X-Name-Last: Boateng Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Author-Name: Daniel Kofi Amoanyi Author-X-Name-First: Daniel Kofi Author-X-Name-Last: Amoanyi Author-Name: Anokye Mohammed Adam Author-X-Name-First: Anokye Mohammed Author-X-Name-Last: Adam Title: Contagion and Interdependencies: A Dynamic Connectedness approach among Implied Volatilities Abstract: This study employs the TVP-VAR approach to capture the degree of interdependencies and contagion among sixteen implied volatilities. The 16 daily implied volatility indices comprise the implied volatility from various financial assets, such as conventional equities, commodities, and currencies, in national, regional, or worldwide indexes. After missing data were expunged, the daily data span between 5 August 2016 and 18 August 2021 inclusive, yielding 1758 observations. We reveal strong evidence to support that the network of implied volatilities is highly connected. Nonetheless, dynamic connectedness varies across time demonstrating that the markets are heterogenous and adaptive. The rise in connectedness during crisis and non-crisis periods indicates that both contagion and interdependencies are germane to implied volatilities. The outcome from the net directional connectedness underscores that the CBOE Euro Currency Volatility, CBOE Crude Oil Volatility, CBOE Gold Volatility, Hang Seng Index (HSI) and CAC 40 VIX are net persistent receivers whereas CBOE Russell 2000 Volatility, CBOE NASDAQ 100 Volatility, DJIA Volatility, CBOE VIX and CBOE OEX Implied Volatility are persistent net transmitters. The size and direction of net connectedness enlighten investors to pair persistent net receivers and transmitters. Practical, policy and theoretical implications are provided. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148366 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148366 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2152937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Harsimran Sandhu Author-X-Name-First: Harsimran Author-X-Name-Last: Sandhu Title: Low price anchors in equity market Abstract: This study investigates whether firm’s management uses split ratios to target low price anchors in order to impact post-split ownership. We report anchoring bias for the lowest ranges of prices in the equity market and find specific price anchors among individual investors in the secondary equity market. Initial founders/promoters may use these price anchors and target-specific post-split prices to achieve the desired ownership structure between individual and institutional investors. This study addresses the role of nominal prices in choosing to split shares in the context of a firm’s ownership structure. Our findings amplify the fact that the psychological biases of individual investor behaviour depend on share price levels, which affects the ownership structure of a firm. Our study makes three contributions. First, we provide evidence for anchoring basis among individual investors for the lowest price ranges. Thus, companies use higher split ratios to target the lowest price ranges to disperse ownership among individual investors. Second, we find that institutional investors reduce ownership in companies that target the lowest price anchors post-split. Third, promoters may use price anchors to disperse ownership among individual investors, thus maintaining control. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2152937 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2152937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2152937 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2103924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: John MacCarthy Author-X-Name-First: John Author-X-Name-Last: MacCarthy Author-Name: Helena Ahulu Author-X-Name-First: Helena Author-X-Name-Last: Ahulu Author-Name: Rose Thor Author-X-Name-First: Rose Author-X-Name-Last: Thor Title: The asymmetric and non-linear relationship between capital flight and economic growth nexus Abstract: The paper sought to explore the effect of capital flight on the economic growth nexus in Ghana. The study used quarterly time series data from 1976 to 2020 to test three hypotheses. The paper used non-linear autoregressive distributive lagged employing unit root test, co-integration test, and Wald test to assess the asymmetrical relationship among the variables. The study posits that both the positive and negative changes in capital flight affect economic growth significantly. Again, the study revealed that capital flight and other macroeconomic variables explain about 75.28% of economic growth. Furthermore, the model can restore the short-run relationship to the dynamic long-long equilibrium at the speed of 35.6%. The study recommends that government economic policymakers build economic confidence by stabilizing economic conditions in the country to reduce the incentives for capital outflows. Further, as a priority, the government must formulate strategies to recover looted public funds by corrupt public officials stacked in foreign accounts and inject them into the economy to boost economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2103924 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2103924 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139885_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Rakibul Islam Author-X-Name-First: Rakibul Author-X-Name-Last: Islam Title: Herd behavior in the Bangladeshi banking sector Abstract: This study aims to investigate the existence and nature of herding behavior in the banking sector in Bangladesh. It uses daily closing prices of 30 listed commercial banks from January 2007 to December 2018 to detect herding. This study confirms the presence of herding in the banking industry for the whole study period. Further, it finds herding in the banking sector during the domestic financial crisis and no herding in the Global financial crisis. By separating the study period into a rising market and a falling market condition, this paper finds asymmetry in herding behavior in the banking sector. This phenomenon is further confirmed when the extreme market condition of the bull and bear phase is used. Investors in the banking industry flock together ignoring any private information to reap the market return at the bull period while they avoid the crowd during the bear phase. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139885 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139885 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jing Liu Author-X-Name-First: Jing Author-X-Name-Last: Liu Title: Alumni network, CEO turnover, and stock price crash risk: evidence from China Abstract: This paper empirically tests the impact of CEO’s alumni relationships on the stock price crash risk during CEO turnover. Empirical tests find that CEOs’ advantage among alumni networks will increase stock price crash risk during CEO turnover to some degree. However, this effect is built on the CEO’s power inside the firm that was established during the long tenure on the position. Further research finds that analysts’ following can exacerbate the release of bad news, however, it seems that the either internal corporate governance or external cannot effectively monitor the opportunistic behavior of CEOs on the whole. In addition, the positive effect of alumni network on stock price crash risk mainly exists in the regions where the legal environment is weak, that is, a sound legal environment can effectively prevent the opportunistic behavior of managers. Besides, the experience of the M.B.A program may strengthen the CEO’s tendency to take advantage of alumni connections to withhold bad news. This paper sheds light on the risk that social connection may bring and conducts to a more comprehensive understanding of the role that social network plays in business activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111813 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111813 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2123887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gilbert Dagunga Author-X-Name-First: Gilbert Author-X-Name-Last: Dagunga Author-Name: Shaibu Baanni Azumah Author-X-Name-First: Shaibu Baanni Author-X-Name-Last: Azumah Author-Name: Abraham Zakaria Author-X-Name-First: Abraham Author-X-Name-Last: Zakaria Author-Name: Nathaniel A. Boateng Author-X-Name-First: Nathaniel A. Author-X-Name-Last: Boateng Author-Name: Kwadwo B. Mensah Author-X-Name-First: Kwadwo B. Author-X-Name-Last: Mensah Author-Name: Ethel S. Boateng Author-X-Name-First: Ethel S. Author-X-Name-Last: Boateng Author-Name: Emile M. Tsekpo Author-X-Name-First: Emile M. Author-X-Name-Last: Tsekpo Author-Name: Philip Kankam Author-X-Name-First: Philip Author-X-Name-Last: Kankam Title: Savings and economic diversification among youth in Ghana: implications for policy and practice Abstract: Savings remain a critical mechanism for capital accumulation for the purpose of investment in developing countries like Ghana. Using data from the Next Generation Cocoa Youth Programme (MASO) implemented by Solidaridad and partners, a bias correcting count data model was applied to determine the drivers of savings, and the impact of savings on youth economic diversification. The results showed that youth trust on financial institutions as well as usage of mobile phones for digital marketing have a positive and significant effect on their decision to save at 1% significance level. The parametric results revealed a significant positive impact of savings on youth economic diversification at 1% significance level. There is thus the need for the promotion of savings among the youth as a tool by national youth policy to reduce youth unemployment in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2123887 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2123887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shirwan Rafiq Sdiq Author-X-Name-First: Shirwan Rafiq Author-X-Name-Last: Sdiq Author-Name: Hariem A. Abdullah Author-X-Name-First: Hariem A. Author-X-Name-Last: Abdullah Title: Examining the effect of agency cost on capital structure-financial performance nexus: empirical evidence for emerging market Abstract: Despite the long history of testing agency theory, it is yet standing undefeated. This study examines the relationship between capital structure and firm performance in an emerging economy, Iraq. Moreover, it seeks to find an answer for the question “does agency cost moderates the relationship between capital structure and financial performance?” in the case of a developing industrial sector. Data was collected from published financial statements from the Iraqi Stock Exchange. The study sample consists of several companies from industrial sector listed on ISX over the period 2004–2020. Firm performance is measured using both accounting data and market indicator. Agency cost is measured through operating expense ratio and asset utilization ratio. Testing for short-term and long-term parameters between groups, pooled mean group estimation method is used for data analysis. The results manifest evidence to support agency theory in explaining the relationship between capital structure and financial performance. Moreover, strong interactions are found indicating that agency cost has a considerable impact on the capital structure and firm performance association, that is, agency cost moderates the relationship between capital structure and firm performance. These results are robust checking various methods and diagnostics checks. These results are key evidence from an emerging country, Iraq to support the agency theory arguments. The results provide significant insights for managers of the sector particularly for the current rapid development in the sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148364 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148364 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Trang M. T. Phung Author-X-Name-First: Trang M. T. Author-X-Name-Last: Phung Author-Name: Wei-Huei Hsu Author-X-Name-First: Wei-Huei Author-X-Name-Last: Hsu Author-Name: Michael J. Naylor Author-X-Name-First: Michael J. Author-X-Name-Last: Naylor Author-Name: Martin R. Young Author-X-Name-First: Martin R. Author-X-Name-Last: Young Title: Perceived risk and debt behaviour in the stock market: A survey of investors in Vietnam Abstract: While informal debt is often used as a funding source for retail investors, very little is known about the characteristics of its sources and use. This is particularly true in emerging markets where the use of informal debt is widespread. We examine the determinants of the use of informal debt of individual investors in the Vietnam stock market and find that perceived risk has a positive impact on informal debt decisions, that borrowing sources are primarily from parents and friends and that experience, wealth and borrowing sources have a positive impact. We also find that women perceive higher risks in stock investments than men do.The policy implication is that informal debt sources play a significant part in stock market development, and therefore, a greater level of attention needs to be paid to them. Policies need to be developed that increase and manage informal sources of investment finance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111811 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111811 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2141424_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bashier Al-Abdulrazag Author-X-Name-First: Bashier Author-X-Name-Last: Al-Abdulrazag Author-Name: Musa Foudeh Author-X-Name-First: Musa Author-X-Name-Last: Foudeh Title: Does inflation reduce remittance outflows in Saudi Arabia? Abstract: This study examines the potential relationship between inflation and remittance outflows in Saudi Arabia over the period 1971–2019 by applying the autoregressive distributed lag (ARDL) model. As a pioneering study in Saudi Arabia, the paper addresses an important literature gap. The statistical tests reveal the model’s reliability and the existence of a long-run equilibrium among the variables. Moreover, the empirical results show a significant negative impact of inflation has on remittance outflows, and the short-run and long elasticities of remittance with respect to inflation are 0.26% and 0.32% respectively. These results suggest that despite the weak elasticity of remittance outflows to the inflation rate, an increase in general prices would reduce remittance outflows in Saudi Arabia. Moreover, we find that the capital investment indicator has a more significant effect on the volume of remittance outflows. Therefore, policymakers in Saudi Arabia should apply appropriate actions to reduce the outflows of foreign workers by urging private companies to hire more Saudi workers, increasing capital investment and encouraging foreign workers, especially those with high incomes, to invest in Saudi Arabia by facilitating their ownership of financial market shares and real estate units. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2141424 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141424 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2141424 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2009089_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Teamrat Kahssay Gebremariam Author-X-Name-First: Teamrat Kahssay Author-X-Name-Last: Gebremariam Author-Name: Sun Ying Author-X-Name-First: Sun Author-X-Name-Last: Ying Title: The foreign direct investment-Export performance nexus: An ARDL based empirical evidence from Ethiopia Abstract: Ethiopia is one of the top FDI destinations in Africa and the leading FDI receiver in east Africa. However, little is known about the direct impact of the FDI on the Ethiopian export performance. This study was conducted to fill this gap. As a result, the main objective of this study was to examine the empirical relationship between foreign direct investment and export performance in Ethiopia by using an annual time series data for the period 1992–2018. The analysis was based on the autoregressive distributed lag (ARDL) model. The long-run model result, which was estimated after a proper application of pre-estimation tests, displayed that the relationship between FDI and export performance was insignificant. The estimated long-run equation also revealed that an increase in the real GDP resulted in an improved export performance in Ethiopia. The coefficient of the real effective exchange rate index in the long-run equation implies that depreciation of the exchange rate improves the export performance. According to the short-run and long-run estimation results, the study provides recommendations to improve Ethiopian export performance. First, national economic policies have to be directed toward keeping the overall health of the economy safe and achieving fast and sustainable growth. Second, with regarding to exchange rate management, long-term effects need to be considered. Finally, attracting more foreign firms to engage in value addition activities for the primary agricultural products would also play a role in enhancing the export performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2009089 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2009089 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2121356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Stephanie Efua Frimpong Author-X-Name-First: Stephanie Efua Author-X-Name-Last: Frimpong Author-Name: Gloria Agyapong Author-X-Name-First: Gloria Author-X-Name-Last: Agyapong Author-Name: Daniel Agyapong Author-X-Name-First: Daniel Author-X-Name-Last: Agyapong Title: Financial literacy, access to digital finance and performance of SMEs: Evidence From Central region of Ghana Abstract: This paper expands on financial literacy, access to digital finance, and SME performance in the Central Region of Ghana. First, the study analysed SMEs’ digital platform knowledge and utilisation. It examined the relationship between financial literacy, access to digital finance, and SME performance. The paper discussed the mediating influence of access to digital finance on SMEs’ financial literacy and performance. The study employed the quantitative research approach. Using the purposive sampling technique, a total of 400 responses were gathered from SMEs in Cape Coast, Mankessim, Assin Fosu, Agona Swedru, and Kasoa. The study used self-administered questionnaires to collect data. SPSS was employed to evaluate descriptive statistics. Results show that SMEs in the study areas use Mobile Money more than any other digital platform. PLS-SEM was used to investigate the relationship between financial literacy, digital finance, and SME performance. It was found that financial literacy positively affects access to digital finance. Also, access to digital finance improved performance. Access to digital finance mediates the relationship between financial literacy and SME performance. Access to digital finance is as crucial as financial literacy for increasing performance. Therefore, using digital platforms to trade would boost business performance. Digital trading platform providers should improve advertising and make their systems user-friendly. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2121356 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2121356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2121356 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2146630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Wondimhunegn Atilaw Woldetensaye Author-X-Name-First: Wondimhunegn Author-X-Name-Last: Atilaw Woldetensaye Author-Name: Endashaw Sisay Sirah Author-X-Name-First: Endashaw Author-X-Name-Last: Sisay Sirah Author-Name: Agumas Shiferaw Author-X-Name-First: Agumas Author-X-Name-Last: Shiferaw Title: Foreign direct investments nexus unemployment in East African IGAD member countries a panel data approach Abstract: This study aims to examine between foreign direct investments nexus unemployment in the Intergovernmental Authority for Development member countries from East Africa. The study employed panel data approach for member countries from the year of 1996–2021. It concluded that annual unemployment rate, annual population growth rate, and economic growth of the host countries have significant impacts on foreign direct investments. Since the purpose of this study was to examine the relations ship between foreign direct investment and unemployment, and the findings of the study determined that foreign direct investment has a significant negative impact on unemployment. Additionally, the impact of these host countries was confirmed to be the same as cross-sectional entities of member countries. According to the study, the public sector should create a climate that attracts foreign direct investments there by absorbing unemployed groups and driving employment rates upward. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2146630 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2146630 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2069207_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammed Issah Author-X-Name-First: Mohammed Author-X-Name-Last: Issah Author-Name: Samuel Antwi Author-X-Name-First: Samuel Author-X-Name-Last: Antwi Author-Name: Solomon Kofi Antwi Author-X-Name-First: Solomon Kofi Author-X-Name-Last: Antwi Author-Name: Patience Amarh Author-X-Name-First: Patience Author-X-Name-Last: Amarh Title: ANTI-MONEY LAUNDERING REGULATIONS AND BANKING SECTOR STABILITY IN Africa Abstract: The study econometrically analysed anti-money laundering regulations and banking sector stability in Africa. A panel data on 51 African countries over the period of 2012 to 2019 were used. Secondary data were sourced from the World Bank’s indicators, the IMF, the Basel Institute on Governance other financial websites. The two-staged Generalised Moment Method (GMM) was used to analyse the effect of AML regulations on banking sector stability and the effects of the different levels of AML effectiveness and its impact on the banking sector stability in Africa. The study discovered that AML regulations had a significant positive effect on the stability of banking sectors in African countries. This indicated that whether there was high effectiveness or low effectiveness of the AML regulations, it would still have a positive impact on the stability of the banking sector of the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2069207 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069207 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2069207 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127487_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Madiha Munir Author-X-Name-First: Madiha Author-X-Name-Last: Munir Author-Name: Saira Tufail Author-X-Name-First: Saira Author-X-Name-Last: Tufail Author-Name: Ather Maqsood Ahmed Author-X-Name-First: Ather Maqsood Author-X-Name-Last: Ahmed Title: Interest rate pass-through and cost channel of monetary policy: Evidence from minimum distance estimation of DSGE model for Pakistan Abstract: Understanding the monetary policy transmission mechanism is pivotal for the design of an effective monetary policy. In this regard, the coexistence of interest rate and cost channel of monetary policy has raised important implications for the conduct of monetary policy. This article estimates a New Keynesian model to quantify the strength of interest rate and cost channel by estimating retail rate stickiness and share of firms considering interest rate in their marginal cost function. It examines the extent of interest rate pass-through and cost channel for exogenous monetary policy shock and endogenous movement in official rate arising due to other financial, nominal, and real shocks in the economy. The trade-off between the degree of pass-through and cost channel of monetary policy has also been examined. The minimum distance estimation of the Dynamic Stochastic General Equilibrium (DSGE) model has confirmed that the degree and nature of interest rate pass-through depend on the nature of shock hitting the economy and the cost channel exists only for monetary and financial shocks. A weak trade-off also exists between the degree of pass-through and cost channel of monetary policy. The study recommends that coordination between central banks and financial and non-financial firms is essential for effective stabilization through monetary policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127487 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127487 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127487 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2078459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sodiq Arogundade Author-X-Name-First: Sodiq Author-X-Name-Last: Arogundade Author-Name: Biyase Mduduzi Author-X-Name-First: Biyase Author-X-Name-Last: Mduduzi Author-Name: Hinaunye Eita Author-X-Name-First: Hinaunye Author-X-Name-Last: Eita Title: Foreign direct investment and poverty in sub-Saharan African countries: The role of host absorptive capacity Abstract: This study examines the role of human capital and institutional quality on the impact of foreign direct investment (FDI) on poverty in sub-Sahara Africa (SSA). In achieving this, a balanced panel of 30 SSA countries from 1996 to 2018 was explored using fixed-effect instrumental regression, fixed effect panel threshold model, and the heterogenous Granger-causality test. There are three main important findings from this empirical study: (1) FDI does not have a direct impact on the incidence and intensity of poverty. (2) the impact of FDI is contingent on the absorptive capacity of the host country. The study further reveals that FDI will alleviate poverty conditions if interacted with human capital and institutional quality at a given threshold. (3) bidirectional causality between FDI and poverty. This study recommends that in addition to FDI’s promotional policies, governments of SSA countries need to improve investment in human capital. It is also important for SSA countries to embark on public sector reforms, as investments do not thrive in an environment characterized by high corruption or political instability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2078459 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2078459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2078459 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2103922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yolanda Pena-Boquete Author-X-Name-First: Yolanda Author-X-Name-Last: Pena-Boquete Author-Name: Aizhan Samambayeva Author-X-Name-First: Aizhan Author-X-Name-Last: Samambayeva Author-Name: Olzhas Zhorayev Author-X-Name-First: Olzhas Author-X-Name-Last: Zhorayev Title: Effects of public expenditure assignment by regions in Kazakhstan to reduce infant and child mortality Abstract: Health resources are an important factor to reduce infant and child mortality. However, taking into account budget constraints, it is very difficult to increase public health resources for all regions within a country at the same time. For this reason, in this paper, we assess the effects of the regional health government expenditure assignment as well as the regional health resources available such as beds or paediatricians. We estimate a dynamic model using a system-GMM (Generalised Method of Moments) to explain infant and child-mortality in Kazakhstan during the period 2000–2018. In this period, Kazakhstan experiences a sharp decrease in infant and child mortality reaching the target values from sustainable development goals (SDG). We evaluate several variables to capture the effects of public health resources assignment, such as expenditure per capita, expenditure depending on previous year mortality rates as well as health facilities resources for children by region. Results show that an increase in health expenditure per capita in those regions with high mortality levels is particularly relevant to reduce infant mortality while health facilities are actually more important to reduce an under-5 mortality rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2103922 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103922 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2103922 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2038862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Belesity Bekalu Ayenew Author-X-Name-First: Belesity Bekalu Author-X-Name-Last: Ayenew Title: The effect of foreign direct investment on the economic growth of Sub-Saharan African countries: An empirical approach Abstract: The impact of foreign direct investment on the host country’s economic growth has been a source of debate in past theoretical and empirical investigations. The PMG/ARDL model, which has a practical advantage in examining the effect of foreign direct investment in the short and long run, has received little attention in prior empirical investigations. This study investigates the effect of foreign direct investment on the economic growth of Sub-Saharan African countries. The study examined panel data from 22 nations in Sub-Saharan Africa from 1988 to 2019. The PMG/ARDL model was used to look at the short- and long-term effects of foreign direct investment on economic growth. The panel unit root test and panel co-integration test were employed to improve the model’s estimation. According to the findings, in the long run, foreign direct investment has a favorable and significant effect, but it is statistically insignificant in the short run. The study concludes that foreign direct investment boosts long-term economic growth. As a result, countries in Sub-Saharan Africa should focus on attracting foreign direct investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2038862 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038862 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2038862 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2082027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Seyram Pearl Kumah Author-X-Name-First: Seyram Pearl Author-X-Name-Last: Kumah Author-Name: Jones Odei-Mensah Author-X-Name-First: Jones Author-X-Name-Last: Odei-Mensah Title: Do cryptocurrencies and crude oil influence each other? Evidence from wavelet-based quantile-in-quantile approach Abstract: This study investigates the asymmetric shock transmission mechanisms between seven large cryptocurrencies and crude oil at different market conditions across time. Wavelet technique was used to decompose the daily return series of the assets into wavelet scales to capture trading horizons. We applied quantile regression (QR) and quantile-in-quantile Regression (QQR) on the decomposed series to capture the bear (bull) market conditions. Applying the QR, we found Ethereum, Steller, Ripple and Monero as hedges for oil market volatility at all market regimes from medium to long terms. The QR undermined the hedging properties of Bitcoin, Litecoin and Das, suggesting possible spread of market disruptions from these markets to crude oil market. We observe from QQR that the assets have negative influence on each other at bear market but positive influence at bull market across time, signifying hedging possibilities for both assets in bear market. The significance of our finding is strengthened by the recent rise in the market share of cryptocurrencies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2082027 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2082027 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2028976_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gildas Kadoukpè Magbondé Author-X-Name-First: Gildas Kadoukpè Author-X-Name-Last: Magbondé Author-Name: Mamadou Abdoulaye Konté Author-X-Name-First: Mamadou Abdoulaye Author-X-Name-Last: Konté Author-Name: Muhammad Shafiullah Author-X-Name-First: Muhammad Author-X-Name-Last: Shafiullah Title: Developing countries’ economic fundamentals and FDI inflows: The moderating role of institutions Abstract: This paper provides evidence on the moderating effects of institutions on the marginal effects of human capital, financial development, and macroeconomic policies on foreign direct investment (FDI) inflows, based on large panel data of 124 developing countries—spanning from 2002 to 2018—and generalised method of moments (GMM) estimators. The findings suggest that only financial development has a positive and significant direct effect on FDI inflows to developing countries. Importantly, improving the quality of institutions moderates the marginal effect of human capital on FDI inflows. Drawing on these findings, policymakers in developing countries are advised to undertake a set of reforms to upgrade the quality of institutions, improve financial institutions and markets, and scale up investments in human capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2028976 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2028976 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2142315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ammar Jreisat Author-X-Name-First: Ammar Author-X-Name-Last: Jreisat Author-Name: Mustafa Raza Rabbani Author-X-Name-First: Mustafa Raza Author-X-Name-Last: Rabbani Author-Name: Sara Omran Author-X-Name-First: Sara Author-X-Name-Last: Omran Author-Name: Somar Al-Mohamad Author-X-Name-First: Somar Author-X-Name-Last: Al-Mohamad Author-Name: Walid Bakry Author-X-Name-First: Walid Author-X-Name-Last: Bakry Title: An examination of the banking efficiency of the BRICS countries: A perspective derived from the oil price volatility Abstract: This study examines the influence of Oil Price Volatility on Banks efficiency within the BRICS countries (Brazil, Russia, India, China, and South Africa) noting the importance of the banking sector efficiency as a tool to ensure financial stability in the region. Being able to measure efficiency levels in banks determines how successful a bank is in managing its operations and achieving its goals. A sample data of 112 banks was selected using the Bank Scope database over the time interval 2003 to 2018 to inspect banking sector relative efficiency following a non-parametric methodology known as Data Envelopment Analysis (DEA). The paper applies a two-stage model to process the empirical results consisting in using the Data Envelopment Analysis (DEA) to identify the scores of banks efficiency at a first stage (Stage 1) and determining how volatility in Oil price has impact on these scores of efficiencies on a second stage (Stage 2). Findings of the study indicate that the Chinese banking system shows the highest efficiency (90%), followed by the South Africa (87%), followed by the Brazilian and Indian banking system with efficiency level of (77%), the Russian bank industry revealed the lowest efficient banking system with level of efficiency (50%). Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2142315 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2142315 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bernice Nkrumah-Boadu Author-X-Name-First: Bernice Author-X-Name-Last: Nkrumah-Boadu Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: AnokyeM Adam Author-X-Name-First: AnokyeM Author-X-Name-Last: Adam Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Title: Safe haven, hedge and diversification for African stocks: cryptocurrencies versus gold in time-frequency perspective Abstract: The specific properties of assets such as cryptocurrencies, gold, and stocks have welcomed more empirical studies in assessing their nexus. As a result, market conditions, whether good or bad, become imperative to assess the benefits of safe have, hedges or diversification. Also, the presence of uncertainties in markets may have asymmetrical effects which make it necessary to assess their impact over time. The emergence of COVID-19 pandemic as a global uncertainty has altered the dynamics of most financial markets. Consequently, this may influence the lead/lag relationships in most financial time series at various frequencies to contribute to the heterogeneous nature of market participants. Hence, the study examines the interdependencies between cryptocurrencies, selected stocks markets of Africa, and Gold returns in a time-frequency domain before and during the COVID-19 pandemic. Using a day-to-day observations, from August 8th, 2015 to May 5th, 2020, we assess the benefits of portfolio diversification, hedges, and safe haven with the bi-wavelet technique. The findings reveal that gold and cryptocurrencies provide a safe haven, diversification and, hedge for investors of African stock especially in the Ghanaian stock market (short-term) and also during this COVID-19 period. These findings contribute to the literature on financial market interdependencies, asymmetries to demonstrate financial market participants’ diverse investment horizons. Again, policymakers and governments of these stock markets should institute a sound system of controls in regulating stock markets. This will enable the benefits of safe haven, hedges or diversification to be efficiently realized for Gold and Cryptocurrencies during different market conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114171 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114171 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2048482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Admire Chawarika Author-X-Name-First: Admire Author-X-Name-Last: Chawarika Author-Name: Faustino Madzokere Author-X-Name-First: Faustino Author-X-Name-Last: Madzokere Author-Name: Agrippa Murimbika Author-X-Name-First: Agrippa Author-X-Name-Last: Murimbika Title: Regional trade agreements and agricultural trade: An analysis of Zimbabwe’s agricultural trade flows Abstract: The main aim of the study was to assess the impact of Economic Partnership Agreement (EPA) and Southern African Development Community Free Trade Area (SADC-FTA) on Zimbabwe’s agricultural trade flows. Results highlight that Zimbabwe’s membership in EPA initiated in 2012, enhanced the country’s agricultural trade flows by 307.96%. Membership in SADC-FTA initiated in 2008 has enhanced the country’s agricultural trade flows by 437.09%. Other independent variables including exchange rates and GDP negatively impacted the country’s agricultural trade flows. From the empirical findings, it is critical for the government to conduct impact assessments. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2048482 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2048482 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2150133_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Syed Faisal Shah Author-X-Name-First: Syed Faisal Author-X-Name-Last: Shah Author-Name: Mohamed Albaity Author-X-Name-First: Mohamed Author-X-Name-Last: Albaity Title: Bank return heterogeneity, do governance, sentiment, and uncertainty matter? Abstract: This paper examined the impacts of; investor sentiment, governance, and uncertainty on bank stock returns in the Middle East and North Africa (MENA) and Gulf Cooperation Council (GCC) region countries. The sample consisted of 173 conventional and Islamic banks based in the MENA region and 68 conventional and Islamic banks based in the GCC region from 2010–2020. Also, this study employed the Two-step system Generalized Method of Moments (GMM) estimator. The selection of this estimator prevented endogeneity issues related to the variables used in this study. This research found that individual sentiment and uncertainty negatively affected bank stock returns while governance positively influenced bank stock returns. The regression coefficients from the interaction of the governance indicators and conventional banks variable showed a positive and significant effect on bank stock returns in the MENA region, except for the interaction of the rule of law and voice and accountability in conventional banks, showing a negative effect. The GCC countries showed similar results. However, the outcomes were insignificant. Regarding the control variables, the loan ratio and inflation were negative, and bank size and the GDP showed positive and significant effects on bank stock returns throughout all models, excluding the loan ratio and bank size in the GCC region. Overall, the banking sectors of the MENA region countries were sensitive to; investor sentiment, uncertainty, and country-level governance indicators. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2150133 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2150133 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2034281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jonas Osei-Adu Author-X-Name-First: Jonas Author-X-Name-Last: Osei-Adu Author-Name: Robert Aidoo Author-X-Name-First: Robert Author-X-Name-Last: Aidoo Author-Name: Simon Cudjoe Fialor Author-X-Name-First: Simon Cudjoe Author-X-Name-Last: Fialor Author-Name: Stella Ama Ennin Author-X-Name-First: Stella Ama Author-X-Name-Last: Ennin Author-Name: Kingsley Osei Author-X-Name-First: Kingsley Author-X-Name-Last: Osei Author-Name: Bright Owusu Asante Author-X-Name-First: Bright Owusu Author-X-Name-Last: Asante Title: Profitability of positive selection technique for seed yam production in Ghana and Nigeria Abstract: Over the years, the traditional seed system has failed to deliver quality seed yam for propagation. This is due to the high incidence and severity of the yam mosaic virus leading to yield losses of 52.6%–65.4%. The Positive Selection (PS) technique has shown promise as a possible mitigation measure. This study was therefore aimed at evaluating the profitability of seed-yam production through the use of PS technique as a viral mitigation measure. Three hundred and sixty-eight (368) seed yam farmers across Ghana and Nigeria were sampled. Profitability was determined using Return on Investment (ROI) and Benefit Cost Ratio (BCR) analysis. Regression analysis was applied for the determinants. Result from this study indicates that seed yam production is more profitable when the effect of the yam mosaic virus is mitigated using PS technique with a net return of US$ 3,417.98/ha compared to US$ 1,795.58/ha for non-use. This implies the use of PS technique can increase seed yam profitability by 26.69%. Sex, farmer experience in yam production, education, migration status, extension contact, off-farm income and use of PS technique were significant determinants of profitability. It is therefore recommended that the PS technique be widely disseminated as a mitigation strategy for the control of the yam mosaic virus disease. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2034281 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2034281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2034281 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2049478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Rabia Sabri Author-X-Name-First: Rabia Author-X-Name-Last: Sabri Author-Name: Abdul Aziz Abdul Rahman Author-X-Name-First: Abdul Aziz Author-X-Name-Last: Abdul Rahman Author-Name: Abdelrhman Meero Author-X-Name-First: Abdelrhman Author-X-Name-Last: Meero Author-Name: Liaqat Ali Abro Author-X-Name-First: Liaqat Ali Author-X-Name-Last: Abro Author-Name: Muhammad AsadUllah Author-X-Name-First: Muhammad Author-X-Name-Last: AsadUllah Title: Forecasting Turkish lira against the US Dollars via forecasting approaches Abstract: The aim of this study is to predict the Turkish Lira’s exchange rate against the US Dollar by combining models . As a result, the authors include three univariate forecasting models: ARIMA, Naive, and Exponential smoothing, and one multivariate model: NARDL for the first time with Artificial Neural Network model. To the best of our knowledge, it is a unique study to integrate univariate models, ANN with NARDL. The researchers utilize two combination criteria to forecast the Turkish Lira, namely, equal weightage and var-cor. The findings conclude that the combination of NARDL and Naive outperforms all standalone and combined time series techniques. The results indicate that the Turkish Lira’s currency rate against the USD is strongly reliant on recent time-series observations with symmetric and asymmetric behavior of macro-economic fundamentals. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2049478 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2049478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2049478 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2020484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Esubalew Tadele Author-X-Name-First: Esubalew Author-X-Name-Last: Tadele Author-Name: Tewabe Hibistu Author-X-Name-First: Tewabe Author-X-Name-Last: Hibistu Author-Name: Salvatore Ercolano Author-X-Name-First: Salvatore Author-X-Name-Last: Ercolano Title: Spatial production distribution, economic viability and value chain features of teff in Ethiopia: Systematic review Abstract: Teff is the most preferred and most commercialized cereal crop in Ethiopia. it’s one of the underutilized crops. It’s nutrient-dense and well-suited to Ethiopia’s growing conditions, but little has been invested to tap into its domestic and international markets. This review focus on the regional teff production distribution, economic significance, and value chain of teff in Ethiopia. The country has a chance in teff specialization and value-added products will likely contribute to generating more incomes, reduce poverty and sustain growth. But unable to overcoming of constraints and seizing opportunities associated with the value chain and its components. Mainly due to teff producing and value addition practice is insufficient and generally depends on conventional practices, and its marketplace is restricted local and the government imposes an export ban on it to limit the upward pressure on domestic grain prices and address local food security. Hence, in a nutshell, value chain development aimed at stimulating economic growth and increasing competitiveness is a vital issue. To take advantage of growing domestic and international demand for teff, the domestic teff industry must invest heavily in improving teff production methods, opening up and expanding its international market to ensure its status as a superglobal food and a contributor to global food security gains. This needs simultaneously investments and policy support networks, which are coordinated with all relevant stakeholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2020484 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2020484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2020484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ahmed Bossman Author-X-Name-First: Ahmed Author-X-Name-Last: Bossman Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Author-Name: Oliver Asiamah Author-X-Name-First: Oliver Author-X-Name-Last: Asiamah Author-Name: Ellen Animah Agyei Author-X-Name-First: Ellen Animah Author-X-Name-Last: Agyei Author-Name: Emmanuel Yaw Arhin Author-X-Name-First: Emmanuel Yaw Author-X-Name-Last: Arhin Author-Name: Edward Marfo-Yiadom Author-X-Name-First: Edward Author-X-Name-Last: Marfo-Yiadom Title: Dividend policy and performance of listed firms on Ghana stock exchange Abstract: We examined the dividend policy and financial performance nexus among listed firms in Ghana, having controlled for firm age, size, capital structure, governance, and financial sector clean-up. We employed the system dynamic general method of moments (GMM) estimation technique with data from 2015 to 2019. In addition to dividend payout, new proxies of dividend policy (dividend capacity and free cash flow savings) were employed to ascertain their impact on firm performance in a period filled with financial sector reforms and clean-ups. We found a significant effect of dividend capacity on Return on Assets and Return on Equity. Free cash flow savings was found to have a direct and significant effect on Return on Assets and Return on Equity but an indirect relationship with both Tobin’s Q and stock price. Our findings indicate that while dividend capacity and free cash flow savings are positively connected with firm performance, dividend payout detrimentally affects owners’ wealth during crisis periods. The findings divulged a detrimental effect of financial sector clean-ups on the performance of non-financial firms only. It is recommended that corporations maintain a balance between dividend payout and free cash flow savings to attract all classes of investors. Governments and market regulators alike must take practical steps to roll out policies on financial sector reforms and/or clean-ups to mitigate the detrimental impacts of inadvertent reforms and/or clean-ups on other sectors of the economy. Investors, market regulators, and governments seek to benefit from the findings of our study. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127220 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127220 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2096200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nyoman Sri Subawa Author-X-Name-First: Nyoman Sri Author-X-Name-Last: Subawa Author-Name: Ni Wayan Widhiasthini Author-X-Name-First: Ni Wayan Author-X-Name-Last: Widhiasthini Author-Name: Ni Putu Intan Permatasari Author-X-Name-First: Ni Putu Intan Author-X-Name-Last: Permatasari Author-Name: Ni Nyoman Sri Wisudawati Author-X-Name-First: Ni Nyoman Author-X-Name-Last: Sri Wisudawati Title: MSMEs envisaged as the economy spearhead for Bali in the covid-19 pandemic situation Abstract: As a region that relies on the tourism sector as the priority then, when the Covid-19 pandemic hit the world, Bali became one of the most affected regions. Efforts are being made to drive the MSME sector in overcoming the financial crisis. The problem discussed was how the impact of MSMEs as the economy spearhead in the Covid-19 pandemic situation. The urgency of this research is to contribute to the practice of community empowerment through the MSME sector. The research method used is a qualitative method with a case study approach, to explore and comprehensively describe the phenomena that occurred in the MSME sector. This research was conducted in Bali Province, the determination of informants was carried out purposively. The results showed that MSMEs had become the economy spearheaded during the pandemic, become a solution to economic growth, accommodated the process of quadrant shifting from tourism performer into MSME performer, implemented economy digitization at various stages, and business activities. The sharing economy pattern has been formed in MSME business practices, through various related business sectors. The findings of this study are (1) a change in the mindset of the people who initially had a mentality as workers, now have an entrepreneurial spirit, and (2) the application of the sharing economy as an exchange of values in the MSME sector. The limitation of the research is that the research location is only in one area. The social implication is that MSME becomes a solution to prevent the potential social vulnerability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2096200 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2096200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2096200 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2147703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Phuong Bui Author-X-Name-First: Phuong Author-X-Name-Last: Bui Author-Name: Hai Ngo Author-X-Name-First: Hai Author-X-Name-Last: Ngo Author-Name: Khuong Nguyen Author-X-Name-First: Khuong Author-X-Name-Last: Nguyen Author-Name: Nguyen Liem Author-X-Name-First: Nguyen Author-X-Name-Last: Liem Title: External financing and earnings management: Evidence in Vietnam Abstract: This paper investigates the effect of external financing on earnings management in Vietnam, a bank-dominated economy. Using a sample of 494 listed non-financial firms from 2009 to 2018, we find that external financing is positively related to earnings management, implying that firms have incentives to manage earnings raising external fund. Additionally, earnings are manipulated when firms conduct capital raising by issuing either equity or debt. However, compared to debt financing, earnings are managed more aggressively when firms are involved in equity financing activities. Finally, we extend the literature by showing that equity is especially destructive at high levels. These findings lend credence to the argument that firms issuing equity have stronger incentives to manage earnings than debt issuers and call for thorough monitoring and scrutiny of stakeholders towards this type of issuance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2147703 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2147703 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2149447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Wakitole Dadi Author-X-Name-First: Wakitole Author-X-Name-Last: Dadi Author-Name: Messay Mulegeta Author-X-Name-First: Messay Author-X-Name-Last: Mulegeta Author-Name: Negussie Simie Author-X-Name-First: Negussie Author-X-Name-Last: Simie Title: Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia Abstract: Urbanization remains a public policy challenge in developing countries, particularly in Sub-Saharan Africa, where fast growth rates have been observed. This study aims to investigate the effect of urbanization on the income diversification of farm households in the Adama district of the Oromia regional state. We used data collected from two groups of farm households based on their distance from the urban center. Families residing close to urban areas are categorized as treated and controlled for the remaining counterpart. The study employed both descriptive and inferential data analysis. Multinomial logistic regression analysis revealed that farming households in urban areas diversify their income to farm and unskilled non-farm activities more than rural households far away from urban centers. The research shows that increasing urbanization by one unit causes a decrease in farming activities by 32%, and farming and non-farm activities increase by 24%. The result also indicated that households with higher age and their consumption expenditure determinant factors for more likely to diversify their income to unskilled non-farm activities. The result proved that urbanization limits farming households’ capacity to generate income from agriculture and pushes them to diversify to non-farming income-generating activities. Governments should therefore design robust strategies and facilitate the provision of agricultural technologies. The regional state and small financial enterprises should also assist displaced households in expanding their income-generating activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2149447 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2149447 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2149447 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Huong Thi Thanh Tran Author-X-Name-First: Huong Thi Thanh Author-X-Name-Last: Tran Author-Name: Ha Thi Thu Le Author-X-Name-First: Ha Thi Thu Author-X-Name-Last: Le Author-Name: Nga Thanh Nguyen Author-X-Name-First: Nga Thanh Author-X-Name-Last: Nguyen Author-Name: Tue Thi Minh Pham Author-X-Name-First: Tue Thi Minh Author-X-Name-Last: Pham Author-Name: Huyen Thanh Hoang Author-X-Name-First: Huyen Thanh Author-X-Name-Last: Hoang Title: The effect of financial inclusion on multidimensional poverty: the case of Vietnam Abstract: Poverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect of financial inclusion on income poverty reduction. There are relatively few studies evaluating the impact of financial inclusion, especially in terms of household use of financial products and services, on multidimensional poverty reduction. This study uses a multivariate probit model with a dataset from Vietnam to estimate the effect of financial inclusion in terms of household use of financial products and services and other factors on multidimensional poverty. The results show that financial inclusion reduces multidimensional poverty. Specifically, households owning bank accounts, having savings at banks, using debit cards, credit cards, or investing in stocks or bonds are less likely to fall into multidimensional poverty. Based on the findings, we provide several recommendations for policymakers to increase the level of households’ use of financial products and services. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132643 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132643 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132643 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111056_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Evans Kulu Author-X-Name-First: Evans Author-X-Name-Last: Kulu Author-Name: William Gabriel Brafu-Insaidoo Author-X-Name-First: William Gabriel Author-X-Name-Last: Brafu-Insaidoo Author-Name: Eric Amoo Bondzie Author-X-Name-First: Eric Author-X-Name-Last: Amoo Bondzie Author-Name: James Atta Peprah Author-X-Name-First: James Author-X-Name-Last: Atta Peprah Title: Inefficiency and Gaps in Financial Stability in sub-Saharan Africa Abstract: Using the Stochastic Frontier Analysis on data for 33 sub-Saharan African countries over the period 2007 to 2018, we determine the drivers of the inefficiencies in financial stability and also estimate the existing financial stability gaps. The results confirm that credit to the private sector and the level of unemployment are significant drivers of financial stability in SSA, while employment, domestic savings, and regulatory quality significantly decrease the inefficiencies in financial stability. Further, it is revealed that government domestic debt arrears promote financial stability inefficiencies in SSA. Countries within the East Africa Community Countries (EAC) have the highest mean efficiency and the least financial stability gap for the period studied. It is therefore recommended that government borrowing from the domestic economy should be towards projects that have undergone proper appraisal as a means to reduce arrears accumulation. Employment is recommended to improve income while encouraging domestic savings as a conscious effort to enable the financial sector to perform its intended essential role in the economy Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111056 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111056 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Lj Basson Author-X-Name-First: Lj Author-X-Name-Last: Basson Author-Name: Suné Ferreira-Schenk Author-X-Name-First: Suné Author-X-Name-Last: Ferreira-Schenk Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Title: The performance of zero-cost option derivative strategies during turbulent market conditions in developing and developed countries Abstract: Financial markets behave in a volatile manner at certain stages in their maturity. These volatile conditions pose a market risk to an investor that can be limited by imposing derivatives strategies within the investment objective. The aim of this paper is to provide investors with a trading strategy to effectively manage turbulent market conditions (such as during the Covid-19 pandemic) by implementing a strategy that has a continuous approach of implementation. The study chose to include three main turbulent market periods such as the Dotcom bubble (1995–2005), the financial crisis (2008–2009), and more recently the COVID-19 pandemic (2020). Stock indices from six different stock exchange countries were chosen for comparison (also aligned to different geographical locations and developing versus developed economies) who were most likely to be affected by the extreme market events. Zero-cost collars are option-based strategies that can be used by investors to provide costless protection for stock or index investment. This strategy is obtained by setting equal the price obtained and the price paid for the components of the strategy. Previous literature has to date, not explored the potential outcomes for such procedures of different frequency intervals and the effect thereof on the performance in turbulent and non-turbulent market conditions. It was observed that moderate levels of market volatility combined with high-performing indices provide the scenario for the zero-cost collar to result in respectable returns. Furthermore, in order to add to this performance the strike level of the put option contract needs to be increased. Consequently, respectable results will be produced during periods of both significant market downturns. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106632 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106632 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2046323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bongumusa Prince Makhoba Author-X-Name-First: Bongumusa Prince Author-X-Name-Last: Makhoba Author-Name: Irrshad Kaseeram Author-X-Name-First: Irrshad Author-X-Name-Last: Kaseeram Author-Name: Lorraine Greyling Author-X-Name-First: Lorraine Author-X-Name-Last: Greyling Title: Asymmetric effects of public debt on economic growth: Evidence from emerging and frontier SADC economies Abstract: This study interrogates asymmetric effect of public debt on economic growth among selected emerging and frontier SADC economies. The study estimates a smooth transition regression (STAR) to analyse asymmetric relationship between public debt and economic growth using time series data from 2000 to 2018, extracted from the World Development Indicators. The findings indicate a strong evidence of a significant asymmetric relationship between public debt and growth among emerging and frontier SADC members under consideration. The results revealed the inverted U-Shape effect of public debt on growth in South Africa. While the results for Botswana, Namibia, Zambia and Zimbabwe indicate that there is a U-Shape relationship between public debt and economic growth. The study suggest that policymakers ought to consider curbing public debt level within a sustainable threshold target in order to reduce accompanying debt serving costs, and efficiently use public finances consistent with sustainable economic expansion. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2046323 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2046323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2046323 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Pierre J Venter Author-X-Name-First: Pierre J Author-X-Name-Last: Venter Author-Name: Alexis Levendis Author-X-Name-First: Alexis Author-X-Name-Last: Levendis Author-Name: Eben Mare Author-X-Name-First: Eben Author-X-Name-Last: Mare Title: Collateralised option pricing in a South African context: A Univariate GARCH approach Abstract: In this paper, the generalised autoregressive heteroskedasticity (GARCH) model is applied to the pricing of collateralised options in the South African equity market. Symmetric GARCH and nonlinear asymmetric GARCH (AGARCH) models are considered. The models are used to price fully collateralised and zero collateral options (European, Asian, and lookback options). The effect of collateral is illustrated by the difference between zero collateral and fully collateralised option price surfaces. Finally, the effect of asymmetry is shown by the difference between the symmetric and asymmetric GARCH option price surfaces. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106631 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106631 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2071012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Aschale Mekuria Shitaye Author-X-Name-First: Aschale Mekuria Author-X-Name-Last: Shitaye Title: Micro and small scale enterprises growth and ownership structure in Hawassa city, Sidama region, Ethiopia Abstract: The general objective of the study is to examine the nexus between micro and small enterprise growth and ownership structure in Hawassa city, Sidama regional state, Ethiopia. The study used a 4-year dynamic panel data from 2017 to 2020, obtained from Hawassa city trade and industry bureau. Both descriptive statistics and econometric methods have been used to analyze the nexus between growth of micro and small enterprises and ownership structure and other driving factors. System GMM estimation technique was employed to analyze a dynamic panel data model. The result of the study reveals that ownership structure, previous year enterprise growth (persistence of growth) and numbers of permanent employees enhance the growth of micro and small enterprises, while age of enterprises, wage and profit of enterprises appear to be a binding constraint to their growth. This study suggests that enterprises should increase their business partners to enhance their financial capacity and to share managerial skill each other and increase the number of permanent employees. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2071012 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071012 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sugiharso Safuan Author-X-Name-First: Sugiharso Author-X-Name-Last: Safuan Author-Name: Muzafar Shah Habibullah Author-X-Name-First: Muzafar Shah Author-X-Name-Last: Habibullah Author-Name: Eric Alexander Sugandi Author-X-Name-First: Eric Alexander Author-X-Name-Last: Sugandi Title: Eradicating tax evasion in Indonesia through financial sector development Abstract: Many developing countries, like Indonesia, struggle with tax evasion. It reduces government revenues, impeding government activities and a country’s economic development. In this study, we look at the topic of tax evasion in Indonesia from 1980 to 2019. Using the “modified-cash-deposit-ratio” technique, we estimate the scale of tax evasion in Indonesia. We specifically calculate the loss in tax revenue caused by Indonesia’s shadow economy. Using a variety of estimators, we then evaluate whether financial development can eliminate tax evasion. To estimate the long-run model for Indonesian tax evasion, we used Ordinary Least Squares with robust standard error (OLS-robust), Autoregressive Distributed Lag (ARDL), Dynamic OLS (DOLS), and Robust Least Squares-M-Estimation (RLE-ME). Our findings reveal that there is a non-linear long-run link between tax evasion and financial development in Indonesia, with an inverted U-shape curve indicating that a lower (higher) level of financial development corresponds to a higher (lower) level of tax evasion. An important policy implication is that the Indonesian government and the Central Bank of Indonesia should embark on programmes to increase financial inclusion, provide easy access to credit arrangements and financial facilities, and implement information technology-based financial systems capable of transmitting data to tax authorities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114167 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114167 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2071387_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Michael Karikari Appiah Author-X-Name-First: Michael Karikari Author-X-Name-Last: Appiah Author-Name: Rosemary Anderson Akolaa Author-X-Name-First: Rosemary Author-X-Name-Last: Anderson Akolaa Author-Name: Angela Kyerewaa Ayisi-Addo Author-X-Name-First: Angela Kyerewaa Author-X-Name-Last: Ayisi-Addo Title: Modeling the impact of macroenvironmental forces on investment in Renewable Energy Technologies in Ghana: the moderating role of Entrepreneurship orientation dimensions Abstract: Since 2011, successive Governments in Ghana have developed, and implemented Renewable Energy Master Plan to leverage macroenvironmental forces and encourage indigenous investment in Renewable Energy Technologies (RETs), but the actual impacts are yet to be felt by Ghanaians. The main objectives of the study are to: examine the impacts of Macroenvironment Forces (MF) on Small and Medium Enterprises’ (SMEs) investment intentions in RETs, and determine the moderating effects of Entrepreneurship Orientation (EO) dimensions (viz. proactiveness, competitive aggression, innovativeness, and risk-taken) on the relationship between MF and SMEs’ investment intentions. A total of 240 usable responses were received through self-administered survey questionnaires among Ghanaian SMEs. Variance-Based Partial Least Square Equation Modelling (PLS-SEM) approach was used for the data analyses and hypotheses testing. The results revealed that MF had significant and positive relationship with SMEs’ intention to invest in RETs. Moreover, the results showed that proactiveness, competitive aggressive, and innovation had direct effects on intention to invest in RETs. Again, the results showed that EO dimensions significantly moderated the relationship between MF and investment intentions in RETs. The implications of these results include extending previous MF works by evaluating MF, EO, and investment intention relationships in a developing country context, which has been largely ignored in previous studies. Again, this paper provides insights into the value of macroenvironment scanning and assessment which could lead to better investment intentions in clean, affordable, and reliable energy service. Besides, the efficacy of EO in MF-investment intentions relationship has been well established in this paper. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2071387 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071387 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2014640_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Huei-Hwa Lai Author-X-Name-First: Huei-Hwa Author-X-Name-Last: Lai Author-Name: Tzu-Pu Chang Author-X-Name-First: Tzu-Pu Author-X-Name-Last: Chang Author-Name: Cheng-Han Hu Author-X-Name-First: Cheng-Han Author-X-Name-Last: Hu Author-Name: Po-Ching Chou Author-X-Name-First: Po-Ching Author-X-Name-Last: Chou Title: Can google search volume index predict the returns and trading volumes of stocks in a retail investor dominant market Abstract: This research examines whether Google search volume index (GSVI), a proxy of investor attention, can predict the excess returns and abnormal trading volumes of TPEx 50 index constituents. It also explores the motive underlying GSVI based on positive or negative shocks to stock prices. The empirical data include 48 companies from TPEx 50 index constituents and cover a period from 1 September 2016 to 31 August 2019. The empirical results present that (1) lagged GSVI negatively affects current excess returns, perhaps due to the characteristics of TPEx, in which there are a higher proportion of retail investors, smaller listed companies, and a higher information asymmetry problem. (2) Lagged GSVI can positively affect abnormal current trading volumes. (3) If GSVI is driven by positive shocks, then it can predict excess returns and abnormal trading volumes positively. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2014640 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2014640 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2093431_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Girma Mulugeta Emeru Author-X-Name-First: Girma Mulugeta Author-X-Name-Last: Emeru Author-Name: Abebaw Hailu Fikire Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikire Author-Name: Zemenu Bires Beza Author-X-Name-First: Zemenu Bires Author-X-Name-Last: Beza Title: Determinants of urban households’ livelihood diversification strategies in North Shewa Zone, Ethiopia Abstract: Livelihood diversification is important for urban development to end poverty and food insecurity problems. In Ethiopia, urban livelihood diversification is quite low specifically in North Shewa Zone. Therefore, this study aims to identify the determinants of livelihood diversification strategies for urban households in the North Shewa Zone. The data were collected through both primary and secondary data collection methods. A multistage sampling technique was employed to select 398 household heads from three urban areas of the North Shewa Zone. A multinomial logistic regression model was employed to analyze the determinant of livelihood diversification strategies in the study area. The results of the model revealed that livelihood diversification strategies were determined by the age of the household head, education status, family size, credit access, market access, and training and extension service positively and the dependency ratio was negative. The study recommends that the zonal and regional governments of Ethiopia should develop a comprehensive urban development policy that could empower off-farm and non-farm urban livelihood diversification strategies besides the farm activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2093431 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2093431 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111791_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tilahun Aemiro Tehulu Author-X-Name-First: Tilahun Aemiro Author-X-Name-Last: Tehulu Title: Capital adjustment process and credit growth of microfinance institutions: Evidence from Sub-Saharan Africa Abstract: The purpose of this study is twofold: First, we examine the capital adjustment process using a partial adjustment framework and second, we test whether capitalization impacts the credit growth of microfinance institutions (MFIs) through the deviation (i.e. the divergence between the actual capital ratio and the implicit long-run target capital). To this end, we use an unbalanced panel dataset of 127 MFIs across 31 countries in Sub-Saharan Africa (SSA) during 2004–2014. We apply the Arellano-Bover/Blundell-Bond two-step Generalized Method of Moments (GMM) Windmeijer bias-corrected standard errors for estimating both the capital and lending models. Standard errors for the long-run effects in the capital equation are approximated with the Delta method. Our findings reveal that profitability contributes to the capitalization of MFIs, whereas portfolio risk and liquidity are negatively associated with MFI capital. We also find that large-scale MFIs have lower capitalization, while small-scale MFIs have higher capitalization relative to medium scale MFIs consistent with the “too big to fail” hypothesis. Nevertheless, we uncover that the legal status of MFIs, deposit growth and economic growth have no direct effects on capitalization. The findings also confirm that there is a capital adjustment difficulty in the microfinance industry in SSA. The constant of the model is also statistically significant and has the highest economic significance suggesting that the capital ratio fluctuates mainly around a firm-specific unobserved time-invariant component. The findings, however, fail to support the hypothesis that capitalization impacts MFI lending behavior through the deviation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111791 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111791 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111791 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2025667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Delphin Kamanda Espoir Author-X-Name-First: Delphin Kamanda Author-X-Name-Last: Espoir Title: Convergence or divergence patterns in income distribution across countries: A new evidence from a club clustering algorithm Abstract: Since globalisation accelerated in the early 1990s, income inequality has increased in most developed countries and in some middle-income countries, including China and India. Also, inequality has declined in most countries of Latin America and the Caribbean and in many Sub-Saharan African and South Asian countries. This observation corroborates the neoclassical models of convergence that predict that, in the long-run, income distribution will tend to converge across countries. In this study, I examined whether there has been convergence in inequality between 2000 and 2015. To this end, I constructed a large panel of Gini indices of 142 countries and tested for the existence of convergence clubs using the econometric methodology proposed by Phillips and Sul. The results indicate that there is no uniform convergence to one club. Instead, I found that countries’ income inequalities are converging into five different clubs. This finding is different from those reported by the few existing c ross-country studies on convergence in inequality. Furthermore, the analysis reveals strong evidence that between-club inequality increases, while within-club inequality decreases over the years. Between-club inequality is found to be determined by population growth, population density and the ratio of physical to human capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2025667 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2025667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2025667 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2061682_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Author-Name: Anokye Mohammed Adam Author-X-Name-First: Anokye Mohammed Author-X-Name-Last: Adam Author-Name: Ahmed Bossman Author-X-Name-First: Ahmed Author-X-Name-Last: Bossman Author-Name: Oliver Asiamah Author-X-Name-First: Oliver Author-X-Name-Last: Asiamah Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Roberta Asafo-Adjei Author-X-Name-First: Roberta Author-X-Name-Last: Asafo-Adjei Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Title: Does volatility in cryptocurrencies drive the interconnectedness between the cryptocurrencies market? Insights from wavelets Abstract: We present a multi-scale and time-frequency analysis of the degree of integration and the lead-lag relationship between six cryptocurrencies (i.e., Bitcoin, Bitcoincash, Ethereum, Litecoin, Ripple, and Tether) and the cryptocurrency-implied volatility index (VCRIX). As a result, the wavelet techniques—bi-wavelet, partial wavelet, bivariate contemporary correlations (BCC), wavelet multiple correlations (WMC) and wavelet multiple cross-correlations (WMCC) are applied. Findings from the study provide that the interdependencies between the cryptocurrencies and VCRIX are high and mostly positive across investment horizons. Furthermore, the comovements between the cryptocurrencies designate long memory dynamics. The high comovements between cryptocurrencies are highly influenced by idiosyncratic shocks they possess rather than the VCRIX. In addition, the BCC and the WMC indicate that there is a high integration among all the cryptocurrencies. Categorically, the VCRIX could not lead or lag the interdependencies among the cryptocurrencies in the WMCC analysis. Findings from the study, therefore, divulge that investing in a single or few cryptocurrencies is highly risky due to the adverse impact of the VCRIX on individual cryptocurrencies. In general, investors should effectively hedge against volatilities in the cryptocurrency markets due to the significant predictive ability of VCRIX as an effective proxy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2061682 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2061682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2061682 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2075600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Canh Thi Nguyen Author-X-Name-First: Canh Thi Author-X-Name-Last: Nguyen Author-Name: Liem Thanh Nguyen Author-X-Name-First: Liem Thanh Author-X-Name-Last: Nguyen Author-Name: Nhu Quynh Nguyen Author-X-Name-First: Nhu Quynh Author-X-Name-Last: Nguyen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: Corporate social responsibility and financial performance: The case in Vietnam Abstract: This study aims to examine the impact of corporate social responsibility (CSR) on the financial performance of Vietnamese listed companies from 2012 to 2017. The study uses Fixed effects model and System Generalized Method of Moments to estimate models. The study contributes by analyzing the impact of social responsibility under three perspectives, namely economic, environmental and social responsibility in a developing country’s setting. The results suggest that overall CSR disclosure has a negative impact on firm performance, but the perspectives provide a more complete view: environmental responsibility shows a clear negative influence, while social responsibility demonstrates a preferable but weak impact on financial performance. The economic aspect does not show a significant effect on firm performance. The most burdensome category of CSR is the environment-related one, which calls for more careful employment of this investment and governmental support to ensure that it is more efficient. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2075600 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2075600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2075600 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2093821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Haile Ademe Ayalew Author-X-Name-First: Haile Author-X-Name-Last: Ademe Ayalew Author-Name: Pratap C. Mohanty Author-X-Name-First: Pratap C. Author-X-Name-Last: Mohanty Title: Do remittances affect labour participation decisions and hours worked? Evidence from Ethiopia Abstract: The present study examines the impact of remittances (foreign and domestic) on labour participation decisions and hours worked in Ethiopia. By exploiting nationally representative panel data obtained from the Ethiopian Socio-Economic Survey (ESS) 2013/14 and 2015/16, this study finds that receiving foreign remittances has a negative impact on the adult labour participation decisions and hours worked in Ethiopia. Its effect is also conditional on occupation, gender, and residential location. However, the impact of domestic remittances on the decision to participate in the non-domestic labour activity is mixed by residential location. Labour participation decisions for rural adults has increased but decreased for the urban. Its effect on the labour participation decisions in temporary paid jobs is also positive. On the other hand, this study finds that child labour participation decisions and hours worked are neither affected by the amount of foreign and domestic remittances nor by remittance-receiving status. The econometric technique applied logit and Tobit models, and a robustness check has been carried out using the per adult equivalent amount of remittances. This study suggested that further studies to identify causes for the negative effects on labour participation decisions and hours worked are critical to designing an appropriate policy. However, since it increases adult labour participation in rural areas and participation in temporary paid jobs, enabling policies to increase domestic remittances are highly important. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2093821 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2093821 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Edward Ebo Onumah Author-X-Name-First: Edward Ebo Author-X-Name-Last: Onumah Author-Name: Prince Addey Owusu Author-X-Name-First: Prince Author-X-Name-Last: Addey Owusu Author-Name: Akwasi Mensah-Bonsu Author-X-Name-First: Akwasi Author-X-Name-Last: Mensah-Bonsu Author-Name: Henry Acquah Degraft Author-X-Name-First: Henry Author-X-Name-Last: Acquah Degraft Title: Rice price volatility and transmission: implications for food security in Ghana Abstract: This paper examines price volatility and transmission of rice markets in Ghana and draws implications for food security. Using monthly rice price data from 2013 to 2019, the paper uses the Autoregressive Distributed Lag (ARDL) with an Error Correction Model (ECM) to ascertain the availability and accessibility of rice, whilst the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model is considered to measure the stability of the commodity. The paper finds evidence of cointegration between the World and Ghana’s rice market. Findings confirm cointegration in Ghana’s regional markets for both imported and domestically produced rice. This ensures stable long-run relationship, allowing trade flows that guarantees rice availability. The corrections in short-run deviations of price ensure continuous accessibility of rice in the country. Estimates from the volatility model suggest high fluctuation in prices, implying that stability in the prices of rice is an issue across all regional markets. The paper recommends efforts in increasing domestic production to enhance availability and accessibility of rice. Stakeholders along the rice value chain should be encouraged to invest in competitive rice production. Government should leverage rice prices with giant import countries to reduce the cost of importation for stable price on the market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085605 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085605 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085605 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tri M. Hoang Author-X-Name-First: Tri M. Author-X-Name-Last: Hoang Title: Active portfolio management for the emerging and frontier markets: the use of multivariate time series forecasts Abstract: Employing both the mean-variance framework and the common portfolio risk-optimization, this study adds to the investment research by examining how ideal holdings for emerging and frontier markets (EFM) of the four global regions (Asian, Europe, and Commonwealth of Independent States (Eastern + Central), Africa, and Latin America and the Caribbean) differ from the benchmark (MSCI EFM (World) index) weights. MSCI previously stood for Morgan Stanley Capital International. The optimal weights were computed for the MSCI Asia, MSCI Europe, MSCI Africa, MSCI Latin America, and MSCI Caribbean for four unique schemes: historical variance (HV), global-minimum variance (GMV), μ-fixed minimum variance (MV), and market timing (MT). The portfolio study shows that the market timing (MT) portfolio performs well, with only the fixed minimum variance (MV) portfolio outperforming it overall. In terms of steady and positive returns in 2019 and beyond, the MT portfolio emerges as the best. Also, the volatility forecasts generated from multivariate time series models can be successfully converted into higher portfolio returns using quantitative investment approaches if the right balance of volatility modelling and portfolio strategy is determined. Given the well-functioning MT portfolio, this study offers some implications for scholars and funding managers based on the risk-return trade-off. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114163 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114163 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114163 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109273_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Chi Hai Author-X-Name-First: Nguyen Chi Author-X-Name-Last: Hai Author-Name: Huynh Ngoc Chuong Author-X-Name-First: Huynh Ngoc Author-X-Name-Last: Chuong Author-Name: Tra Trung Author-X-Name-First: Tra Author-X-Name-Last: Trung Title: Linkages and development of local industrial space: Research in the key economic region of Southern Vietnam Abstract: The aim of this study is not only to define the industrial development space of the region in Vietnam, but also to assess the linkage in local industrial development. Research space in the Southern Key Economic Region—Vietnam’s most vibrant industrial production region—is based on the approach in both aspects: output value and agglomeration of production enterprises through the number of businesses. By taking a diversified approach from defining the growth linkage indicator to simulating the industrial structure pattern by the network, and using the regression model with the industrial production enterprise data of the Region in the period 2011 − 2019. The research result shows that there has been a significant increase in the linkage to the development of industrial space in the Region. Besides, the pattern of industrial development space of the Region has both increased the production value in the central areas and spread the industrial bases established in other localities in the Region. From scientific findings, this paper gives policy implications as well as contributes to some improvements in assessing, analyzing and verifying industrial development space in the locality, especially for developing economies like Vietnam. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109273 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109273 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2037250_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Teguh Dartanto Author-X-Name-First: Teguh Author-X-Name-Last: Dartanto Title: Natural disasters, mitigation and household welfare in Indonesia: Evidence from a large-scale longitudinal survey Abstract: Households around the world as well as in Indonesia have become exposed to a wider variety of vulnerabilities and risks in recent years due to an increase in the intensity and scope of natural disasters. This study aims to comprehensively examine the impact of natural disasters on Indonesian household welfare (consumption and poverty) using the Indonesian Family Life Survey (IFLS) of Wave 3 and 4. This study finds that households in rural areas are the most vulnerable to natural disasters; the average asset losses and medical/funeral costs from natural disasters are roughly USD 2,190/household. Our econometric models confirm that earthquakes are the most destructive disaster to affect household welfare, whereas droughts, forest fires, floods, and other disasters appear to have only moderate effects. Earthquakes reduce households’ probability of being non-poor by 5 percentage points. Disaster mitigation and preparedness play a significant role in reducing the devastating impacts of disasters and in lessening households’ vulnerability to poverty. The policy recommendations resulting from this study include advancing the provision of life and health insurance, promoting food buffers, and increasing households’ access to formal credit institutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2037250 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2037250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2037250 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2024358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Trang Van Thi Do Author-X-Name-First: Trang Van Thi Author-X-Name-Last: Do Author-Name: Duong Thuy Phan Author-X-Name-First: Duong Thuy Author-X-Name-Last: Phan Title: Debt maturity structure and investment decisions: Evidence of listed companies on Vietnam’s stock market Abstract: The article analyzes the impact of debt maturity structure and other factors on investment decisions of enterprises listed on the Vietnam’s stock market from 2010 to 2019. Data used in this study are acquired from the financial statements of 558 enterprises listed on both the Ho Chi Minh and Hanoi stock exchanges in the period 2010–2019, from the FiinPro database. S-GMM regression method is utilised to analyze the influence of debt maturity structure and other factors on investment decisions of listed companies. The analysis results shows that the debt maturity structure has a positive impact on the investment decision of the enterprises. Besides, the profitability of total assets and the fixed assets turnover also have a positive impact on the investment decision of the enterprise, while liquidity and cash flow have a negative impact on investment decisions. Based on empirical results, the study proposes some recommendations to help the managers of listed companies to build a reasonable debt maturity structure in the direction of using more long-term debts to increase investment efficiency. At the same time, the study recommends some policy implications for the Government in managing macroeconomic policies in order to create favourable conditions for businesses to access many long-term capital sources. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2024358 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024358 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2024358 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Muhammad Bilal Author-X-Name-First: Muhammad Author-X-Name-Last: Bilal Author-Name: Bernhard Brümmer Author-X-Name-First: Bernhard Author-X-Name-Last: Brümmer Author-Name: Jan Barkmann Author-X-Name-First: Jan Author-X-Name-Last: Barkmann Title: A discussion on the outcomes of adopted agricultural technological products and specific sustainable development goals: Evidence from Pakistan Abstract: Establishing a link between specific sustainable development goals (SDGs) and the outcomes of adopted agricultural technological products is lacking in developing countries. Therefore, this study aims to address food security SDG 02 by adopting crop protection products of multinational brands versus sub-standard crop protection products SDG 12 by smallholder farming households. We employ endogenous switching probit models using a survey of smallholder farming households in the cotton-wheat zone in Pakistan. Full information maximum likelihood estimates illustrate that comparative advantage guide the adoption of crop protection products of multinational brands (CMBs). Our findings suggest that adopting CMBs rather than sub-standard crop protection products may translate as a responsible farming practice if assuming the use of crop protection products is inevitable. In sum, CMBs enhance food security and can play a vital role in the current debate on responsible consumption and production, particularly for sustainable development. Our findings also indicate that promoting agricultural extension information via radio broadcasts has a significant and positive relationship with adoption. Hence, it stands out as the most promising policy option. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132644 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132644 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2023270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Vo Xuan Hoi Author-X-Name-First: Vo Xuan Author-X-Name-Last: Hoi Author-Name: Nguyen Duc Quyen Author-X-Name-First: Nguyen Duc Author-X-Name-Last: Quyen Author-Name: Do Thi Thanh Xuan Author-X-Name-First: Do Thi Thanh Author-X-Name-Last: Xuan Author-Name: Bui Ngoc Tan Author-X-Name-First: Bui Ngoc Author-X-Name-Last: Tan Author-Name: Nguyen Thi Phuong Thao Author-X-Name-First: Nguyen Thi Phuong Author-X-Name-Last: Thao Author-Name: Le The Phiet Author-X-Name-First: Le The Author-X-Name-Last: Phiet Author-Name: Nguyen Dat Author-X-Name-First: Nguyen Author-X-Name-Last: Dat Author-Name: Thai Thanh Ha Author-X-Name-First: Thai Thanh Author-X-Name-Last: Ha Author-Name: Le Duc Niem Author-X-Name-First: Le Duc Author-X-Name-Last: Niem Title: Training, technology upgrading, and total factor productivity improvement of farms: A case of cassava (Manihot esculenta Crantz) production in Dak Lak province, Vietnam Abstract: This study focused on analyzing the determinants of technology upgrading and productivity growth in cassava production of farms in Dak Lak province from 2015 to 2018. Using the Data Envelopment Analysis method (DEA) to obtain the Malmquist indices of the total factor productivity (TFPCH) and decomposing it into technical efficiency change (EFCH) and technological change (TECHCH), we found a general improvement in productivity of the farms. Meanwhile, general technology upgrading was observed, but the technical efficiency of the farms was reduced. From logistic regression analyses, it is shown that institutional factors such as technical training and accessibility to banks and economic factors such as capital stock of farms increase the probability of productivity growth in the farms. However, technical training is the only factor that significantly contributed to the likelihood of the technology upgrading of the farms. In particular, we did not find household characteristics such as gender, ethnicity, schooling, and experience in cassava production significantly impact the farms’ technology upgrading and productivity growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2023270 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2023270 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2068240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sayantan Kundu Author-X-Name-First: Sayantan Author-X-Name-Last: Kundu Author-Name: Kamran Quddus Author-X-Name-First: Kamran Author-X-Name-Last: Quddus Author-Name: Nistala Jagannath Sharma Author-X-Name-First: Nistala Author-X-Name-Last: Jagannath Sharma Title: Does halo effect of innovative firms moderate the impact of working capital efficiency on firm value? Evidence from India Abstract: The purpose of this study is to examine whether perceived innovativeness moderates the relationship between working capital management (WCM) and firm value. The study uses a sample of 200 listed Indian firms for 2015–2019. The firms are classified into innovative and non-innovative categories using the OECD and the EU Industrial R&D Investment Scoreboard 2018. Using OLS and GMM-DPD estimations, the study finds in accordance with the prior literature that a sample of firms exhibits a positive relationship between WCM efficiency and firm value. The original contribution of the paper is finding that low R&D and high R&D firms are treated differently when investors factor WCM into prices. The firms belonging to industries that are perceived to be innovative are not penalised in terms of valuation even if they follow inefficient WCM. However, firms that belong to industry sectors that are perceived to be non-innovative experience a drop in their valuation if their WCM is inefficient. The authors argue that this difference is due to the halo effect of innovative firms. The results imply that the halo effect obscures the true valuation. Hence, investors should learn to avoid valuing innovative firms’ WCM based merely on their classification into an innovative industry sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2068240 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068240 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2068240 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nga Nguyen Hong Author-X-Name-First: Nga Author-X-Name-Last: Nguyen Hong Author-Name: Loan Vo Thi Kim Author-X-Name-First: Loan Author-X-Name-Last: Vo Thi Kim Author-Name: An Pham Hoang Author-X-Name-First: An Author-X-Name-Last: Pham Hoang Author-Name: Cuong Tran Quoc Khanh Author-X-Name-First: Cuong Author-X-Name-Last: Tran Quoc Khanh Title: Understanding exchange rate pass-through in Vietnam Abstract: Price stability is the ultimate objective of the State Bank of Vietnam (SBV). In addition, in a small export-led economy, such as Vietnam, the study of exchange rate volatility is crucial for the country’s economy due to its impact on inflation via exchange rate pass-through (ERPT). This study investigated ERPT in Vietnam by employing both autoregressive distributed lag (ARDL) and nonlinear-ARDL (NARDL) approaches with data spanning from January 2009 to May 2020. Our main findings suggest that the exchange rate and money supply are the two most important factors influencing the consumer price index (CPI) and explain the change in the CPI structure using the threshold model. In addition, the transition to a central-rate mechanism successfully lowered the inflation rate in Vietnam. Furthermore, the NARDL model displays short- and long-run exchange rate asymmetries. Based on this evidence, several policy implications are provided to support price-level stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139916 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139916 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2124737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Alemayehu Abebe Wake Author-X-Name-First: Alemayehu Abebe Author-X-Name-Last: Wake Author-Name: Teferi Tolera Author-X-Name-First: Teferi Author-X-Name-Last: Tolera Author-Name: Tamiru Chalchisa Geleto Author-X-Name-First: Tamiru Author-X-Name-Last: Chalchisa Geleto Title: Impacts Of Fishing On The Rural Household Income; Evidence From Ethiopian Rift-Valley Abstract: Fish farming is a vital resource to fight poverty and food insecurity through the diversification of income sources. However, little has been investigated on its actual contributions to increase household income. This study envisages the impacts of fishing on the household income in Lume District, Ethiopian Rift valley. The quasi-experimental research design was used. Both qualitative and quantitative data were collected from both primary and secondary sources. Two-stage stratified sampling procedures were employed and about 374 sample households (about 202 non-fishing and 172 fishing households) were randomly selected. Structured interview schedules, key informant interviews, and focused group discussions were employed to collect the relevant data. Descriptive statistics (frequency, percentage, mean, and standard deviation) and the Propensity score matching method were employed to analyze the data. STATA V.13 software was used as an analytical tool. Fishing and non-fishing households had earned an annual income of about 36,914.85 and 31,768.43 Ethiopian Birr per year respectively. The model output reveals that the average treatment effect on the treated is about ETB 5146.42 and the mean difference in the average effect of the treatment on the treated between the matched treatment and control groups was found to be statistically significant at a 5% significance level. Overall, participation in fishing has generated about a 7.5% increase in farm annual income of treated households over control groups. It can be concluded that participation in fishing has brought a positive and significant impact on improving a household’s annual income status in the study area. Therefore, special attention should be given by governmental and non-governmental organizations to improve the fish and aquaculture sector in the area through the introduction and dissemination of innovations that can enhance fish productivity in the study area. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2124737 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2124737 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114172_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammad Shahfaraz Khan Author-X-Name-First: Mohammad Shahfaraz Author-X-Name-Last: Khan Author-Name: Mohd Yousuf Javed Author-X-Name-First: Mohd Yousuf Author-X-Name-Last: Javed Author-Name: Mohammad Hasan Author-X-Name-First: Mohammad Author-X-Name-Last: Hasan Title: Do sustainable investments propel the national economy? Evidence from manufacturing and service sectors in India Abstract: This study is conducted to identify the various sustainability initiatives by the Indian manufacturing and service industry, which are listed in BSE 100. Moreover, the present study indicates the impact of sustainability initiatives on financial performance.A comparative analysis has been conducted between the manufacturing and service sectors. The present study is descriptive and causal design. The sample contains 75 firms listed on BSE 100 and data collected from CMIE Prowess IQ. Panel data regression has been used to check the effect of sustainability measures on financial performance. The significant findings of this study are that investing in sustainability measures has a significant impact on the financial performance of the companies in both sectors; however, in the service sector, sustainability has more impact than in the manufacturing industry. The study’s implications have been classified into broad categories: academic and managerial implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114172 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114172 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114172 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2043571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hwai-Shuh Shieh Author-X-Name-First: Hwai-Shuh Author-X-Name-Last: Shieh Author-Name: Yang Li Author-X-Name-First: Yang Author-X-Name-Last: Li Author-Name: Jin-Li Hu Author-X-Name-First: Jin-Li Author-X-Name-Last: Hu Author-Name: Yong-Ze Ang Author-X-Name-First: Yong-Ze Author-X-Name-Last: Ang Title: A Comparison of Efficiency of Life Insurance Companies in Mainland China and Taiwan Using Bootstrapped Truncated Regression Approach Abstract: For strategic and competitive insights, this study measures and benchmarks the comparative operating efficiencies of insurance companies in Taiwan and mainland China. We employ the two-stage DEA with the bootstrapped truncated regression approach to examine the overall efficiency of insurance companies in Taiwan and mainland China during 2005-2011. Empirical results reveal that the savings rate, elderly population percentage, and business freedom positively affect the managerial efficiency of life insurance companies in Taiwan and mainland China, while GDP growth rate, inflation rate, corruption index, and climate risk negatively affect their managerial efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2043571 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043571 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2043571 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111057_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hasan Mukhibad Author-X-Name-First: Hasan Author-X-Name-Last: Mukhibad Author-Name: Ahmad Nurkhin Author-X-Name-First: Ahmad Author-X-Name-Last: Nurkhin Author-Name: Kuat Waluyo Jati Author-X-Name-First: Kuat Author-X-Name-Last: Waluyo Jati Author-Name: Prabowo Yudo Jayanto Author-X-Name-First: Prabowo Author-X-Name-Last: Yudo Jayanto Title: Corporate governance and Islamic law compliance risk Abstract: This study examines the influence of the Shariah Supervisory Board (SSB), Board of Directors (BOD), Risk Officers (RO), Audit Committee, and market competition (Lerner) on the Islamic Law Compliance Risk (ILCR). We use a sample of full-fledged Islamic banks in Indonesia with an observation period of 2009–2019. Data analysis uses Fixed Effect Model (FEM). Our results show that SSB and BOD are not proven to be able to control ILCR. ILCR can be decreased by increasing the number of audit committees and the proportion of independent RO. In addition, the Lerner index has a positive influence ILCR. The results of the robustness test also confirm the results of this study. This research extends the previous studies on evaluating the risk-taking of Islamic Banks beyond the common risk (insolvency, liquidity, credit, and market), particularly the unique risks faced by Islamic banks. This study recommends increasing the effectiveness of SSB and BOD supervision on bank operations, increasing the ILCR. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111057 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111057 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2124665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khalil Alnabulsi Author-X-Name-First: Khalil Author-X-Name-Last: Alnabulsi Author-Name: Emira Kozarević Author-X-Name-First: Emira Author-X-Name-Last: Kozarević Author-Name: Abdelaziz Hakimi Author-X-Name-First: Abdelaziz Author-X-Name-Last: Hakimi Title: Assessing the determinants of non-performing loans under financial crisis and health crisis: evidence from the MENA banks Abstract: The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a health crisis that translates to an economic crisis. This study includes 74 banks belonging to 11 MENA countries over the period 2005–2020 and uses the two-stage system generalized method of moment estimator. To conduct a comparative analysis, the whole sample is divided into two sub-samples. The first one is related to the Middle East countries and the second one covers North African countries. The empirical findings indicate that the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to macroeconomic factors, macroeconomic environment and institutional quality significantly affect the level of NPLs. However, no significant effect has been detected regarding the impact of the COVID-19 pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2124665 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2124665 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kentaro Koyama Author-X-Name-First: Kentaro Author-X-Name-Last: Koyama Title: The Bank of Japan’s equity exchange-traded funds purchasing operation and its impact on equity returns Abstract: The Bank of Japan (BoJ) conducts an unconventional monetary policy that includes exchange-traded fund (ETF) purchases, which can be expected to affect aggregate equity indices. As equity ETF purchases represent a unique and exceptional monetary policy framework, there are few studies on how such purchases have affected the stock markets or the real economy. The motivation of this paper is therefore to reveal the effectiveness of the BoJ’s equity ETF purchases and contribute to the broad literature on unconventional monetary policy by providing new insights. Ordinary least squares regression analysis is conducted to examine the effects of the BoJ’s ETF purchases and determine whether they are predictable, the effect of expected versus unexpected purchases on aggregate equity indexes differs, and price effects are long lasting. Since the October 2014 increase in the annual volume of ETF purchases by the BoJ, such purchases have become less predictable. Expected purchases do not affect prices, whereas unexpected purchases have a significant, positive price impact. However, this impact is found to be temporary in nature. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111782 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111782 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2157118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Umar Farooq Author-X-Name-First: Umar Author-X-Name-Last: Farooq Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Suhaib Anagreh Author-X-Name-First: Suhaib Author-X-Name-Last: Anagreh Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Author-X-Name-Last: Saleh Al-Faryan Title: Economic policy uncertainty and corporate investment: Does quality of governance matter? Abstract: A stable economic condition is crucial for an organization’s success. Any fluctuation in economic policy directly influences corporate-level decisions. However, exercising better governance can mitigate the adverse effect of such unstable economic conditions. Owing to this, the current research tends to disclose the impact of economic policy uncertainty (EPU) on corporate investment decisions and how this impact varies across countries having better governance quality. To achieve the underlying objective, we use the data for the years 2010–2019 of publicly listed enterprises from 6 Asian economies. The empirical analysis was performed by employing the generalized least square (GLS) and GMM techniques. The statistical analysis reveals an inverse relationship between EPU and corporate investment while a direct relationship between governance quality and corporate investment. In addition to individual impact, better governance quality can mitigate the magnitude of the adverse impact of EPU on corporate investment. Better governance can diversify the negative impacts of EPU by protecting investor rights, eliminating information asymmetric, and enhancing policy stability. Based on empirical analysis, the policy officials are directed to exert efforts for exercising better governance. Similarly, corporate managers are advised to consider the current economic situation while formulating any strategy relating to physical investment. This study is innovative as it reinforces the significance of better governance in disentangling the adverse impacts of EPU on corporate investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2157118 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2157118 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2142308_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thando Mkhombo Author-X-Name-First: Thando Author-X-Name-Last: Mkhombo Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Title: Investigating Fisher effect in SACU countries: A wavelet coherence approach Abstract: The purpose of this study is to examine the time-frequency relationship in the Fisher’s effect for South African Customs Union (SACU) countries using continuous wavelet transforms. We use the Wavelet power spectrum to decompose the nominal interest rate and inflation rate across a time frequency space and then employ wavelet coherence tools to investigate the synchronization of the pair of time-series in a time-frequency space. The wavelet tools prove to be a powerful tool in harmonizing seemingly conflicting empirical evidences found in previous literature. Our findings indicate similar co-movement between interest rates and inflation for SACU countries in the post-2000 period, with stronger Fisher effects existing around the global financial crisis, and evidence of reverse lead-lag dynamics at higher frequencies during crisis period. However, subsequent to the crisis period lower frequency oscillation become increasingly dominant as higher frequency components lose their significance up until the COVID-19 pandemic when the high-frequency components re-appear. All-in-all, our findings have important academic and policy implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2142308 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2142308 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2074627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dominic Chakuri Author-X-Name-First: Dominic Author-X-Name-Last: Chakuri Author-Name: Freda Elikplim Asem Author-X-Name-First: Freda Elikplim Author-X-Name-Last: Asem Author-Name: Edward Ebo Onumah Author-X-Name-First: Edward Author-X-Name-Last: Ebo Onumah Title: Bayesian technical efficiency analysis of groundnut production in Ghana Abstract: This paper considered Bayesian Stochastic Frontier Model to analyse technical efficiency and their determinants of groundnut farmers in Ghana. The paper used a cross-sectional data of three-hundred (300) observations to obtain posterior distributions of the farmers’ technical efficiency levels. All computations were done using Markov Chain Monte Carlo methods (MCMC). Results revealed that the groundnut farmers produce at an increasing return to scale of 1.10. Average technical efficiency of the farmers was found to be 70.5%, ranging from a minimum of 13.0% to a maximum of 95.1%. Frequency of extension visit, educational level and gender of the farmers were identified to significantly explain inefficiency of the farmers. The paper concluded that groundnut farmers in the northern part of Ghana are operating in the first stage of the production function and could increase their frontier output by 29.5%. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2074627 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2074627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2074627 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Anzel Van den Bergh-Lindeque Author-X-Name-First: Anzel Author-X-Name-Last: Van den Bergh-Lindeque Author-Name: Sune Ferreira-Schenk Author-X-Name-First: Sune Author-X-Name-Last: Ferreira-Schenk Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Author-Name: Thomas Habanabakize Author-X-Name-First: Thomas Author-X-Name-Last: Habanabakize Title: What makes risk-averse investors tick? A practitioners guide Abstract: The real challenge to many practitioners in the financial and investment sector is to accurately profile risk-averse investors to still be inclusive of these investors in the wealth creation process. This study aims to profile risk-averse investors through a structural equation model based on endogenous and exogenous factors. The final sample size consisted of 463 individual investors in the economic hub of South Africa, Gauteng province. These endogenous and exogenous factors may bring about increases or decreases in the risk tolerance levels of investors and accordingly, influence their decisions to initiate, amend or terminate financial behaviours. These factors significantly contributed towards explaining low-risk tolerance behaviour, which assisted with the successful development of a model to profile the risk tolerance behaviour of risk-averse investors. This risk profiling model makes a remarkable and unique contribution to the field of study and the financial industry, since it will assist financial practitioners to profile the risk tolerance behaviour of risk-averse investors more accurately, which will lead to the successful implementation of investment strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111786 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111786 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_1986932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Janet Sigara Nyamamba Author-X-Name-First: Janet Sigara Author-X-Name-Last: Nyamamba Author-Name: Oscar Ingasia Ayuya Author-X-Name-First: Oscar Ingasia Author-X-Name-Last: Ayuya Author-Name: Kenneth Waluse Sibiko Author-X-Name-First: Kenneth Waluse Author-X-Name-Last: Sibiko Title: Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya Abstract: Vertical coordination in agriculture has received popularity in recent years. They have emerged to transform farm enterprises from subsistence farming to commercially oriented production. Despite the importance attached to them, some farm enterprise owners are involved in side selling even though they are committed to specific vertical coordination strategic options. Factors influencing this behaviour are still unclear in the empirical literature. This study intends to bridge this gap by determining the extent of side selling in sorghum supply chains in Kisumu County. A stratified sampling technique was used to collect data from 266 sorghum farm enterprises. Primary data was obtained through interviews using a pre-tested semi-structured questionnaire administered by trained enumerators. The study used Fractional Response Model to determine the extent of side selling among sorghum farm enterprises. Results from Fractional Response Model reveal that farming experience, better prices from alternative markets, neighbourhood effect, frequency of contacts, low bargaining power and network externalities influence side selling positively. Whereas other forms of income, land size, credit access and trust reduces the probability of side selling. These results indicate that policymakers should generate policies that will strengthen the legal institutions in agriculture regarding breaching of agreements reducing the side selling behaviours of sorghum producers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.1986932 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:1986932 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ricardo Ferraz Author-X-Name-First: Ricardo Author-X-Name-Last: Ferraz Title: The golden age of the world economy and Portuguese economic growth: applied study, 1950-2018 Abstract: During the Golden Age (1950–1973), Portugal stood out in the international scene, converging economically with the group of more industrialised economies. In this paper, we start by analysing the main factors that explain the extraordinary economic performance of Portugal during that crucial period of its history. Next, we construct and estimate a dynamic model to quantify the relationship between those factors and the Portuguese economic growth in the time horizon that stretches from the Golden Age to present days. The results obtained show that investment and international trade have been contributing positively to economic growth of Portugal in the last decades, 1950–2018. The conclusions of this paper, which are in line with the international literature, reinforce the importance for Portuguese decision-makers to adopt political measures to open the economy and to create favourable conditions for investment in order to obtain a faster economic growth that allows a robust convergence with the most industrialized nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139915 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139915 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thanh Phuc Nguyen Author-X-Name-First: Thanh Phuc Author-X-Name-Last: Nguyen Author-Name: Tho Ngoc Tran Author-X-Name-First: Tho Ngoc Author-X-Name-Last: Tran Author-Name: Thi Thu Hong Dinh Author-X-Name-First: Thi Thu Hong Author-X-Name-Last: Dinh Author-Name: Tri M. Hoang Author-X-Name-First: Tri M. Author-X-Name-Last: Hoang Author-Name: Trang Duong Thi Thuy Author-X-Name-First: Trang Author-X-Name-Last: Duong Thi Thuy Title: Drivers of climate change in selected emerging countries: the ecological effects of monetary restrictions and expansions Abstract: Drivers of environmental quality have recently been identified in a large body of literature. However, the ecological effects of both regimes of monetary policy remain under-explored so far. Moreover, previous studies use limited samples and econometric approaches. Climate change from the empirical perspective of the country’s monetary policy has recently become a promising avenue to investigate. Motivated by the aforementioned research gaps and increasing attention from energy researchers and policy-makers, this research aims to test the monetary restrictions and expansion on climate change represented by CO2 emissions, after controlling other significant drivers. We use a dataset from 1998 to 2018 for a sample of 14 selected emerging economies and quantitatively advanced techniques for panel data analysis, such as Ordinary Least Squares (OLS), Dynamic OLS, Fully-Modified OLS, and Panel Quantile Regression. We also use a two-step system generalized method of moments to avoid concerns about endogeneity and heteroskedasticity issues. We find strong evidence that contractionary and expansionary monetary policy both eliminate and escalate the environmental degradation through an increase in CO2 emissions, respectively. Moreover, these ecological effects of monetary policy interestingly appear in the middle and large quantiles of CO2 levels. Based on these findings, the research offers some key implications for policymakers looking to initiate green monetary policy for carbon abatement. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114658 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114658 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114658 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_1978706_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Navitha Singh Sewpersadh Author-X-Name-First: Navitha Singh Author-X-Name-Last: Sewpersadh Title: An econometric analysis of financial distress determinants from an emerging economy governance perspective Abstract: During times of distress, companies are compelled to reassess operational policies and reengineer strategic formulations to discern value maximising uses for limited resources. The executive’s agility to react to financial distress determines the probability of bankruptcy. Proper governance drives sound and sustainable, value maximising decision-making, while inept practices lead to value diminishing, self-serving behaviour that financially constrains companies, resulting in an acceleration of financial distress. This study examined the correlation between financial distress and corporate governance within a sample of 116 listed South African companies using the GMM estimation. Key financial distress determinants were found to be audit committees and shareholder activism (proxied by equity ownership) that may deter investor apathy, “director opportunism” and CEO dominance. Also, long-tenured CEOs and post-graduate directors possess contextually enriched latent knowledge that may assist distressed firms, particularly if the trade-offs between director’s remuneration and governance is well managed. Furthermore, the K-score model served as a robust financial distress proxy since it allowed the interrogation of grey zone companies. These findings provided financial distress determinants aiding decision-making for ailing businesses to avoid liquidation, which can be of use to regulatory bodies and policymakers in developing sustainable governance strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.1978706 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978706 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:1978706 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2099501_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Minh Ngoc Ngo Author-X-Name-First: Minh Ngoc Author-X-Name-Last: Ngo Author-Name: Thuc Ngoc Nguyen Author-X-Name-First: Thuc Ngoc Author-X-Name-Last: Nguyen Title: Financial development and business growth: A case of the Southern Key Economic Region Abstract: This paper employs generalized methods of moment (GMM) to analyze the enterprise data set collected from the General Statistics Office in the period 2005–2018 to provide insight on the influence of financial development on business growth: the case of the Southern Key Economic Zone (SKEZ). The empirical results indicate that financial development plays an important role in business growth. However, providing financing to offset scale has the potential to increase sales but reduce business growth. Thus, businesses in the SKEZ need to carry out some following points. First, corporate managers not only focus on growth and considering as important as sales and productivity throughout their operations but on strengthening the depth of the financial system to allow businesses to get favorable conditions to receive external financial sources. Second, policymakers should promote a well-developed financial system that can ease credit constraints for businesses. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2099501 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2099501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2099501 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087286_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Le Ha Diem Chi Author-X-Name-First: Le Ha Diem Author-X-Name-Last: Chi Author-Name: Le Dinh Hac Author-X-Name-First: Le Dinh Author-X-Name-Last: Hac Author-Name: Nguyen Quang Nhat Author-X-Name-First: Nguyen Quang Author-X-Name-Last: Nhat Author-Name: Bui Thi Thu Hang Author-X-Name-First: Bui Thi Thu Author-X-Name-Last: Hang Title: Corporate environmental responsibility and financial performance: The moderating role of ownership structure and listing status of Vietnam banks Abstract: The study aims to provide empirical evidence for a one-way relationship between corporate environmental responsibility (CER) and financial performance (FP) in the banking industry, with special consideration into the moderating role of legal regulations and ownership structures. Net interest margin (NIM), return on assets (ROA), return on equity (ROE) are selected to measure FP while the content analysis method is adopted to examine CER. The study used regression analysis with the two-step system generalised method of moments (Sys-GMM) on a sample of 29 Vietnamese commercial banks from 2012 to 2019, and the positive impacts of CER on banks’ FP were identified. Analysis of these data revealed that listed banks have a higher level of information disclosure than unlisted banks, but the positive relationship between CER and FP is weaker in listed banks. Similarly, while state-owned banks have a higher degree of disclosure than privately-controlled banks, the relationship between their CER and FP is weaker. The paper also provides some recommendations and suggests future research implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087286 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087286 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087286 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2050495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Onyebuchi Iwegbu Author-X-Name-First: Onyebuchi Author-X-Name-Last: Iwegbu Author-Name: Kainu Justine Author-X-Name-First: Kainu Author-X-Name-Last: Justine Author-Name: Leonardo Chaves Borges Cardoso Author-X-Name-First: Leonardo Chaves Author-X-Name-Last: Borges Cardoso Title: Regional financial integration, financial development and industrial sector growth in ECOWAS: Does institution matter? Abstract: Regional economies seek to promote growth through industrialisation and literature suggests that developing the financial system, integrating the financial system within a sound institutional framework can promote industrial output. This study fills the gap by examining the impact of financial development and regional financial integration on ECOWAS’ industrial sector. This study assesses whether regional financial integration and financial development have a stronger effect on the growth of the industrial sector of ECOWAS member countries that have high level of institutional quality than it does in countries with lower level. Major findings from the study reveals that deepening regional financial integration can only enhance the industrial output of ECOWAS member countries that has sound institutional quality framework; this is important and is a strong enhancing factor for member countries experiencing low industrial sector output. Credit to the private sector alone both for countries with low industrial output and countries with high industrial output does not improve the level of industrial performance. However, for countries that have low industrial output with a stronger institutional quality framework, increases in credit to the private sector will increase the level of industrial output compared to countries with a higher level of industrial output. Increasing the level of money in circulation alone does not improve industrial sector performance; the quantum channeled as credit to the private sector does. An improved institutional framework must be set in place together with an enhanced flow of credit to the private sector in ECOWAS. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2050495 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2050495 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2050495 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2008587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Patricia Pinamang Acheampong Author-X-Name-First: Patricia Pinamang Author-X-Name-Last: Acheampong Author-Name: Monica Addison Author-X-Name-First: Monica Author-X-Name-Last: Addison Author-Name: Camillus Abawiera Wongnaa Author-X-Name-First: Camillus Abawiera Author-X-Name-Last: Wongnaa Title: Assessment of impact of adoption of improved cassava varieties on yields in Ghana: An endogenous switching approach Abstract: The paper assesses the potential impact of the adoption of improved cassava varieties on yields of smallholder farmers. Agricultural intensification is associated with increasing yields per hectare through the use of improved varieties. Studies have established the relationship between adoption and yield, yet this relationship is understudied in the cross-national literature. Using cross-sectional data collected from a randomly selected sample of 1,176 farmers dispersed across Ghana and employing an endogenous switching regression model, the causal impact of improved variety adoption was estimated. Our results revealed that adoption decisions were conditioned by age, extension access, extension visits, awareness and farm size. Also, adoption had a significant positive impact on cassava yields. Adopters had 18 t/ha increases in yields and non-adopters should they have adopted had increases of 10 t/ha. Strategies to resource research extension linkage system to promote and create awareness about the existing improved cassava varieties for increased adoption are recommended. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2008587 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2008587 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2028975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Lindokuhle T Zungu Author-X-Name-First: Lindokuhle T Author-X-Name-Last: Zungu Author-Name: Bongumusa P Makhoba Author-X-Name-First: Bongumusa P Author-X-Name-Last: Makhoba Author-Name: Lorraine Greyling Author-X-Name-First: Lorraine Author-X-Name-Last: Greyling Title: A scrutiny into fiscal policy in the South African economy: A Bayesian approach with hierarchical priors Abstract: This study analyses the impact of fiscal policy on the South African economy during the period 1972Q1-2020Q2. The study adopted quarterly time series data to estimate a Bayesian Vector Autoregression (BVAR) model with the selection of hierarchical priors. The variables employed for empirical investigation included GDP, government expenditure, public debt, and gross fixed-capital formation. The results of the study show that an unexpected shock in government expenditure and public debt has a significant negative and persistent impact on economic growth in South Africa, while an unexpected shock in investment has a significant positive effect on economic growth. The findings suggest that escalating public expenditure and public debt lead to economic contraction. This implies that policy-makers ought to be cautious of excessive government expenditure and public debt to achieve fiscal consolidation. Policy-makers ought to focus on addressing structural challenges through the implementation of sound structural reform policies that aim to attract investment consistent with job creation, development and growth in South Africa’s economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2028975 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2028975 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abdullah A. Aljughaiman Author-X-Name-First: Abdullah A. Author-X-Name-Last: Aljughaiman Author-Name: Mohammed Albarrak Author-X-Name-First: Mohammed Author-X-Name-Last: Albarrak Author-Name: Ngan Duong Cao Author-X-Name-First: Ngan Duong Author-X-Name-Last: Cao Author-Name: Vu Quang Trinh Author-X-Name-First: Vu Quang Author-X-Name-Last: Trinh Title: Cost of equity, debt financing policy, and the role of female directors Abstract: We examine the role of female directors on firm cost of equity in the context of US-listed firms, and further explore the mediating impact of debt financing policy on such association. Using a dataset of 4619 non-financial firm-year observations covering the period of 2008–2019, we find that firms with female directors on boards are likely to exhibit a lower cost of equity, through relying on a less risky financing decision. The indirect effect is found to take up around 45% of the female-cost of equity association. In addition, our analysis also indicates that the lower debt financing levels are realised only if female representation reaches a critical mass of around 28%. Our findings provide important implications for firms in balancing the gender ratio within their boards to level out their risk-taking through their financing decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109274 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109274 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2058157_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Akindele John Ogunsola Author-X-Name-First: Akindele John Author-X-Name-Last: Ogunsola Author-Name: Christian Kakese Tipoy Author-X-Name-First: Christian Kakese Author-X-Name-Last: Tipoy Title: Determinants of energy consumption: The case of African oil exporting countries Abstract: Persistent energy consumption issues are ascribed to the failure of energy planners to understand the various macroeconomic factors that influence energy consumption. Therefore, we investigated the factors influencing energy consumption in six net African oil-exporting countries (AOECs) between 1980 and 2018. Our contribution to the literature is the use of estimators; cross-sectional autoregressive distributed lag (CS-ARDL) and cross-sectional distributed lag (CS-DL) modelling approaches, which take into account the time dynamics, the heterogeneity of different countries and cross-sectional dependence, to explore the relationship between energy consumption and its major determinants, such as openness, economic structure and per capita income. The results revealed that per capita income did not impact significantly on energy consumption in AOECs during the period under study, while trade openness had a positive and significant effect on it. The third variable of interest, namely economic structure, had a negative and significant effect on energy consumption. These results led to various recommendation for policymakers and future research in the concluding section. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2058157 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2058157 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Norhamiza Ishak Author-X-Name-First: Norhamiza Author-X-Name-Last: Ishak Author-Name: Aminah Shari Author-X-Name-First: Aminah Author-X-Name-Last: Shari Author-Name: Minah Japang Author-X-Name-First: Minah Author-X-Name-Last: Japang Author-Name: Fithriah Ab Rahim Author-X-Name-First: Fithriah Author-X-Name-Last: Ab Rahim Title: Performance of islamic equity and fixed-income funds during the covid-19 pandemic in Malaysia Abstract: This article discussed the impact of Covid-19 pandemic on the performance of Equity and Fixed-Income Islamic unit trusts in Malaysia. The study adopted two methods of analysis; (i) empirical analysis using conventional methodologies such as Sharpe, Treynor and Jensen in comparing the 2019 and 2020 performance of Malaysian Islamic fixed-income and Islamic equity unit trust funds, whilst run (ii) in-depth performance review on Islamic unit trusts using systematic literature review. The findings show that both the Islamic unit trust funds and fixed-income equity demonstrated fairly good performance, indicating an outperformed indicator as compared to the established benchmark during the Covid-19 pandemic. Thus, given significant positive insight to the investors would profiting from Islamic mutual or unit trust funds, by offering decent hedging for long-run investment. Second, risk-averting investors may benefit from investing in the diversified portfolios of Islamic equity funds as they have been proven to perform marginally better than conventional funds owing to better risk management. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122184 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122184 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2012988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mesele Belay Zegeye Author-X-Name-First: Mesele Belay Author-X-Name-Last: Zegeye Author-Name: Abebaw Hailu Fikire Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikire Author-Name: Anteneh Bezualem Assefa Author-X-Name-First: Anteneh Bezualem Author-X-Name-Last: Assefa Title: Impact of Agricultural Technology Adoption on Food Consumption Expenditure: Evidence from Rural Amhara Region, Ethiopia Abstract: The purpose of this study is to examine the impact of agricultural technology adoption on household food consumption expenditure in rural Amhara regional state, Ethiopia. The study is based on the data obtained from the Ethiopian Socioeconomic Survey collected in 2015/16. Household-level data were taken from 656 rural farm households in the Amhara region of Ethiopia. The study used the endogenous switching regression model to estimate the impacts of agricultural technology adoption on household food consumption expenditure per adult equivalent per annum. The result of the study reveals that adopting agricultural technology significantly increases household food consumption expenditure per adult equivalent. Moreover, the difference in household food consumption expenditure per adult equivalent between the actual and counterfactual scenarios is very high. The findings of the study reveal that broader investment in agricultural technology and increased access and adoption of agricultural technologies significantly improve the welfare of farm households. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2012988 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2012988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2012988 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2154311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dasauki Musa Author-X-Name-First: Dasauki Author-X-Name-Last: Musa Author-Name: Oladapo Awolaja Author-X-Name-First: Oladapo Author-X-Name-Last: Awolaja Author-Name: Kwarbai Jerry Author-X-Name-First: Kwarbai Author-X-Name-Last: Jerry Author-Name: Iyabo Okedina Author-X-Name-First: Iyabo Author-X-Name-Last: Okedina Author-Name: Edy-Ewoh Uduakobong Author-X-Name-First: Edy-Ewoh Author-X-Name-Last: Uduakobong Author-Name: Ifayemi Olayinka Author-X-Name-First: Ifayemi Author-X-Name-Last: Olayinka Title: Is the influence of oil prices changes on oil and gas stock prices in Nigeria symmetric or asymmetric? Abstract: Overdependence on oil revenue has exposed the economy to shocks from oil price variations. In this paper, we investigated the relationship between oil price on the stock prices of oil and gas firms quoted in the Nigerian Stock Exchange market. In doing so, the ARDL and NARDL approach is applied to estimate quarterly data from 2009q1 to 2016q3. The result from the study showed that negative and positive oil price shocks have a positive long-run influence on stock prices (oil & gas). The evidence further showed that the long-run and short-run impact of an oil price increase on the oil and gas stock price index is similar to that of an oil price decrease. The oil and gas stock price responds positively to oil price shocks in the long run. Therefore, the portfolio managers, potential investors and policymakers in the oil-exporting countries should diversify investments to reduce exposure to risk and uncertainty that may arise to disruptions in the demand and supply for oil and gas or during periods of declining oil prices induced by negative global economic events. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2154311 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2154311 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2154311 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2064079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dony Abdul Chalid Author-X-Name-First: Dony Abdul Author-X-Name-Last: Chalid Author-Name: Rangga Handika Author-X-Name-First: Rangga Author-X-Name-Last: Handika Title: Comovement and contagion in commodity markets Abstract: This article investigates comovement and contagions in the commodities markets. We examine the comovement by analyzing the unconditional correlation coefficients. We document that commodities tend to partially integrate. We perform contagion tests by identifying coexceedances and estimating multinomial logit to explain the joint occurrence of those coexceedances. We document that commodities price changes tend to affect the probability of both positive and negative coexceedances. Overall, we conclude that there are comovement and contagions among commodities. However, the degrees of comovement and contagion are different among commodities and between positive and negative extreme returns. The contagion among commodities is asymmetric. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2064079 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2064079 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2064079 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2137985_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Eric Amoo Bondzie Author-X-Name-First: Eric Amoo Author-X-Name-Last: Bondzie Author-Name: Mark Kojo Armah Author-X-Name-First: Mark Kojo Author-X-Name-Last: Armah Title: A DSGE model of fiscal stabilizers and informality in Sub-Sahara Africa Abstract: This paper investigates the effects of fiscal impulses on macroeconomic variables within a New-Keynesian DSGE framework featuring an informal economy that allows for the examination of the effectiveness of automatic stabilizers in stimulating some selected sub-Saharan African (SSA) economies during crises. Stabilizers were modelled such that fiscal instruments react to their own lagged values and the official sector output. The results indicate that tax hikes lead to sizeable tax evasion and reallocation of factor inputs from the official sector to the shadow sector making the standard aggregate estimates of fiscal policies ineffective while government spending shocks slow down activities in the shadow sector. The findings also showed that automatic stabilizers on government spending (income taxes) stabilized the economy by reducing (raising) output levels even in the presence of the shadow economy. For policy implications, effective implementation of government policies should incorporate the informal sector in macroeconomic modelling, especially for countries with a large informal sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2137985 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2137985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2137985 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2045719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ismail O. Fasanya Author-X-Name-First: Ismail O. Author-X-Name-Last: Fasanya Author-Name: Oluwafunmilayo A. Akinwale Author-X-Name-First: Oluwafunmilayo A. Author-X-Name-Last: Akinwale Title: Exchange Rate Shocks and Sectoral Stock Returns in Nigeria: Do Asymmetry and Structural Breaks Matter? Abstract: This study examines the effect of exchange rate shocks on ten (10) sectoral stock returns in Nigeria from January 2007 to December 2018. The autoregressive distributed lag and nonlinear autoregressive distributed lag are employed to examine symmetric and asymmetric relationship between exchange rate and sectoral stock returns. The result shows that only financial service sector moves in an asymmetric fashion in the short and long period without taking account of structural breaks and with structural breaks, none of the sectoral stock returns were asymmetric. The result shows that exchange rate movement affects the sectors differently. Therefore, this study concludes that a single model cannot fit all the sectoral stock returns because all sectors respond differently to exchange rate movements and the information about a particular sector cannot be used to forecast other sectors. These results offer important insights for investors, regulators and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2045719 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2045719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2045719 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2142313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Takele Atnafu Delele Author-X-Name-First: Takele Atnafu Author-X-Name-Last: Delele Author-Name: Almaz Giziew Adugna Author-X-Name-First: Almaz Giziew Author-X-Name-Last: Adugna Author-Name: Birhanu Melesse Gelaw Author-X-Name-First: Birhanu Melesse Author-X-Name-Last: Gelaw Title: Determinants of soybean (Glycine max.) market supply in Northwestern Ethiopia Abstract: Suitable agro ecology and tremendous soybean potential of Ethiopia is the key to produce the crop in large-scale and maintaining a steady supply on the market. Although its demand rises quickly for export and local processing, the current production status is much below the market demand. The factors influencing the supply of soybeans in Northwestern Ethiopia were the main subject of this study. The sample households were chosen using a multistage sampling technique. In this study, data were gathered from 228 respondents that were randomly drawn. The data were obtained mainly from sampled soybean growers via structured interviews with key informant interviews and focus groups for triangulation. Descriptive statistics and multiple linear regression models were employed to analyze the data including one way ANOVA and t-tests. The findings showed that soybean producers’ average productivity was 1.21 tons ha−1, much below the national average of 2.15 tons ha−1, due to the sparse usage of improved seed, fertilizer, and other recommended packages. According to the model results, productivity, lagged price, market information, prior experience with soybean farms, cultivated land, weekly extension contacts, education (preparatory school completion), and credit access all had a positive and significant impact on the quantity of soybean market supply. The results showed that soybeans are the most lucrative and important cash crop for producers in the study area. The availability of improved soybean technologies with full recommended packages boosts their productivity and enables them to guarantee sustainable market supply in order to meet the increased market demand. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2142313 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142313 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2142313 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2078460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Uweis Abdulahi Ali Bare Author-X-Name-First: Uweis Abdulahi Author-X-Name-Last: Ali Bare Author-Name: Yasmin Bani Author-X-Name-First: Yasmin Author-X-Name-Last: Bani Author-Name: Normaz Wana Ismail Author-X-Name-First: Normaz Wana Author-X-Name-Last: Ismail Author-Name: Anitha Rosland Author-X-Name-First: Anitha Author-X-Name-Last: Rosland Title: Does financial development mediate the impact of remittances on sustainable human capital investment? New insights from SSA countries Abstract: Remittances play an important role in human capital development in sub-Saharan Africa, particularly when it comes to helping families to pay for their children’s education, access health care and alleviate poverty. However, many countries on the continent lack the financial systems to efficiently facilitate the inflows of remittances and allow them to be used to their greatest potential such as investment in education. The education of children is particularly essential if Saharan Africa is to achieve sustainable development goal number four which aims to ensure inclusive and quality education for all by 2030 . This paper examines the impact of remittances on human capital development from 1996–2016 in sub-Saharan Africa and further explores the role financial development in this established nexus. The empirical results revealed that remittances positively influence human capital investment, but when interacted with financial development and regressed on human capital investment, we found remittances impact to be more pronounced and statistically influence human capital. This study recommends that policymakers develop proactive policies that facilitate the inflows of remittances. Our policy suggestions are based on the fact that remittance recipients in SSA countries do not have adequate funds to invest in human capital because of weak financial systems. Financial market reform is therefore paramount for attracting greater remittances into SSA countries which, in turn, could be harnessed to ease credit constraints and allow for greater investment into human capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2078460 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2078460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2078460 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2133356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Uche Ugwuanyi Author-X-Name-First: Uche Author-X-Name-Last: Ugwuanyi Author-Name: Robinson Ugwuoke Author-X-Name-First: Robinson Author-X-Name-Last: Ugwuoke Author-Name: Edith Onyeanu Author-X-Name-First: Edith Author-X-Name-Last: Onyeanu Author-Name: Eze Festus Eze Author-X-Name-First: Eze Author-X-Name-Last: Festus Eze Author-Name: Abner Isahaku Prince Author-X-Name-First: Abner Author-X-Name-Last: Isahaku Prince Author-Name: Jude Anago Author-X-Name-First: Jude Author-X-Name-Last: Anago Author-Name: Godwin Imo Ibe Author-X-Name-First: Godwin Imo Author-X-Name-Last: Ibe Title: Financial inclusion - economic growth nexus: traditional finance versus digital finance in Sub-Saharan Africa Abstract: This study examined the impact of financial inclusion on economic growth disaggregated into traditional finance and digital finance with its sub-dimension for 29 Sub-Saharan African countries, 2012–2020. The study employed the panel feasible generalised least squares and panel system generalised method of moment procedures, and the panel vector autoregression Granger causality test. The results revealed that for the full sample; (1) Both the traditional and digital financial inclusion have positive and significant impact on economic growth, (2) The impact of the traditional financial inclusion in magnitude is more than that of the digital financial inclusion which also is replicated in the access sub-dimensions, (3) Unlike the access sub-dimensions the relative impact of the usage sub-dimension shows no large difference between the traditional and the digital finance. For the sub samples divided into low-income and middle-income countries; (4) The impact of traditional and digital financial inclusion is different across income levels. Both traditional and digital finance are positive and significant in middle income countries while only digital finance is significant in low income countries, (5) Economic growth Granger caused more of traditional finance than the traditional finance Granger caused economic growth, (6) The access sub-dimension to financial services Granger caused more of economic growth than the usage sub-dimension, (7) Digital financial inclusion is neutral in middle-income countries but not in low-income countries. The study recommends that even as digital finance is the new concept in the context of a developing economy, the traditional banking structures should not be neglected. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2133356 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2133356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2133356 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2023262_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hicham Sadok Author-X-Name-First: Hicham Author-X-Name-Last: Sadok Author-Name: Fadi Sakka Author-X-Name-First: Fadi Author-X-Name-Last: Sakka Author-Name: Mohammed El Hadi El Maknouzi Author-X-Name-First: Mohammed El Hadi Author-X-Name-Last: El Maknouzi Title: Artificial intelligence and bank credit analysis: A review Abstract: This article teases out the ramifications of artificial intelligence (AI) use in the credit analysis process by banks and other financing institutions. The unique features of AI models, coupled with the expansion of computing power, make new sources of information (big data) available for creditworthiness assessments. Combined, the use of AI and big data can capture weak signals, whether in the form of interactions or non-linearities between explanatory variables that appear to yield prediction improvements over conventional measures of creditworthiness. At the macroeconomic level, this translates into positive estimates for economic growth. On a micro scale, instead, the use of AI in credit analysis improves financial inclusion and access to credit for traditionally underserved borrowers. However, AI-based credit analysis processes raise enduring concerns due to potential biases and ethical, legal, and regulatory problems. These limits call for the establishment of a new generation of financial regulation introducing the certification of AI algorithms and of data used by banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2023262 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023262 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2023262 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2146298_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tefera Getachew Dagnachew Author-X-Name-First: Tefera Getachew Author-X-Name-Last: Dagnachew Author-Name: Temeselew Woldetsadik Mawugatie Author-X-Name-First: Temeselew Woldetsadik Author-X-Name-Last: Mawugatie Title: The analysis of financial inclusion and its determinants in the rural area of south Wollo zone, Amhara Region, Ethiopia Abstract: The main goal of this study is to examine financial inclusion and related factors in rural South Wollo Zone areas. The binary logit model, primary and secondary data, and multi-stage sampling techniques were all applied in the study. Only 20.72 percent of those questioned in the rural South Wollo zone were given access to formal financial institutions, leaving 79.28 percent of those who were excluded. According to the report, access to traditional financial institutions is influenced favorably by factors such as affordability, financial literacy, age, and secondary education in rural areas, as well as the availability of Islamic banking services. Both the inability of rural inhabitants to access formal financial institutions and their lack of trust in traditional financial institutions represent significant obstacles. The study also looks into the expensive replacement of formal financial institutions in rural areas by traditional financial groups. Based on our research, we recommend that the government and other relevant organizations seek to improve the country’s degree of financial inclusion in rural areas by offering formal financial services at a reasonable cost and by boosting the financial capacity of rural low-income groups. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2146298 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2146298 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2014654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: B. Nyagadza Author-X-Name-First: B. Author-X-Name-Last: Nyagadza Author-Name: R. Pashapa Author-X-Name-First: R. Author-X-Name-Last: Pashapa Author-Name: A. Chare Author-X-Name-First: A. Author-X-Name-Last: Chare Author-Name: G. Mazuruse Author-X-Name-First: G. Author-X-Name-Last: Mazuruse Author-Name: P. K. Hove Author-X-Name-First: P. K. Author-X-Name-Last: Hove Title: Digital technologies, Fourth Industrial Revolution (4IR) & Global Value Chains (GVCs) nexus with emerging economies’ future industrial innovation dynamics Abstract: The advent of the Fourth Industrial Revolution (4IR) has the potential to transform emerging economies to another developmental echelon by increasing productivity and improving future fluidity of innovation across various industries. Predictively, 4IR in emerging economies will come with newest technologies that are disruptive. This technological innovation will cause changes not only in industries and business but also in societies in general. The current article is based on the Preferred Reporting Items for Systematic Literature Review and Meta-Analysis (PRISMA) of secondary data sources, mainly peer reviewed reputable journal articles. The purpose is to draw conclusions and to identify the research gaps. Results depicted that the key challenge is for the emerging economies to establish ways of engaging themselves into Global Value Chains (GVCs) that are dynamic in nature. Future researchers are encouraged to consider alternative methodologies to examine 4IR and GVCs nexus with emerging economies’ within a longitudinal research design. Systematic literature review in the current article is based on a structural analysis methodology to frame the categories of the major analysis in combination with scientific rigour to a broad and complex problem. The current scientific research study contributes to theory, practice and future research directions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2014654 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2014654 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2115673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kofi Kamasa Author-X-Name-First: Kofi Author-X-Name-Last: Kamasa Author-Name: Eunice Efua Kpodo Author-X-Name-First: Eunice Efua Author-X-Name-Last: Kpodo Author-Name: Isaac Bonuedi Author-X-Name-First: Isaac Author-X-Name-Last: Bonuedi Author-Name: Priscilla Forson Author-X-Name-First: Priscilla Author-X-Name-Last: Forson Title: Does inflation uncertainty hurt domestic investment? Empirical evidence from Ghana Abstract: This paper empirically investigates the effect of inflation uncertainty on domestic investment in Ghana. In addition, it investigates the differential impacts of permanent and transitory inflation uncertainty on investment in Ghana. Inflation uncertainty was measured using the conditional variance generated from the generalized autoregressive conditional heteroscedasticity (CGARCH (1, 1)) model. Employing the autoregressive distributed lag (ARDL) estimator on data covering 1970 to 2020, the results provide strong evidence that inflation uncertainty, associated with high volatility in commodity prices, hampers domestic investment in Ghana. After disaggregating total inflation uncertainty into two components, this paper finds that permanent inflation uncertainty has a stronger adverse effect on domestic investment than does transitory inflation uncertainty. Additionally, the results reveal that domestic interest rate, foreign interest rate, government expenditure, and trade openness are also important factors that significantly affect investment in Ghana. Given the economic implications of these results, this paper offers actionable policy recommendations to improve investor confidence and spur domestic investment in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2115673 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2115673 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2115673 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2014639_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Eshetu Molla Author-X-Name-First: Eshetu Author-X-Name-Last: Molla Author-Name: Ehite Hailekirstos Author-X-Name-First: Ehite Author-X-Name-Last: Hailekirstos Author-Name: Markew Mengstie Author-X-Name-First: Markew Author-X-Name-Last: Mengstie Author-Name: Tadesse Zenebe Author-X-Name-First: Tadesse Author-X-Name-Last: Zenebe Title: Determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia Abstract: The main objective of the study is to identify the determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia. The researchers used multistage purposive random sampling technique to select representative households in the study area. The ordinary least square output revealed that production of wheat, price of wheat and secondary and tertiary education of the household positively and significantly affect supply of wheat to the market. On the other hand, distance from the market and distance from the main road have negative and significant effect on supply of wheat. Moreover, the multinomial logit regression result showed that household family size and market information have positive and significant effect while distance from the market and ownership of livestock have negative and significant effect on smallholder farmers’ market participation. The binary logit model also indicates that land holding, access to market information, total livestock and primary education affected positively and significantly. Therefore, policies aiming at increasing farmer’s awareness of producing value added wheat produce to enhance value creations are recommended to strengthen chain development. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2014639 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2014639 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2090663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Aklok Getnet Author-X-Name-First: Aklok Author-X-Name-Last: Getnet Author-Name: Ermias Tesfaye Author-X-Name-First: Ermias Author-X-Name-Last: Tesfaye Author-Name: Yasin Ahmed Author-X-Name-First: Yasin Author-X-Name-Last: Ahmed Author-Name: Mohammed Ahmed Author-X-Name-First: Mohammed Author-X-Name-Last: Ahmed Title: Economic valuation and its determinates of improved irrigation water use; evidence based on South Gondar Zone, Ethiopia Abstract: The main aim of the research was to analyze economic evaluation and determinants of willingness to pay decisions for efficient irrigation water use improvement. Use for this purpose total of 300 HHs was selected using the Multi-stage sampling technique. The collected data was analyzed using econometrics model. In the econometric part, a seemingly unrelated bivariate probit model was applied to estimate households’ mean willingness to pay and its determinant’s for efficient irrigation water use. Leads by a double bounded dichotomous choice method. From seemingly unrelated bivariate probit model regression results, the mean and aggregate willingness to pay off the households 950.7 ETB (€25.7) per month per household per hectare was 1087159.09 ETB (€29382.7) per month and (12*1087159.09 = 13045909.08 ETB per year) respectively. The Mean and aggregate willingness to pay from the open-ended questions to be 926.059 ETB (€25.03) per month per household per hectare was 1072990.52 ETB (€28,999.74) per month respectively also, The bivariate probit model result revealed that bid values, sex of the household head, irrigation farm size, extension service significantly affected households’ WTP in both initial and followed up bid values So, policymakers should be households have a high willingness to pay for improved irrigation water use systems and the government should implement irrigation water management practices to supply reliable irrigation water to the farmers and should set up proper irrigation water pricing at an amount close to the mean WTP that households were willing and able to pay. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2090663 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090663 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2090663 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kumba Digdowiseiso Author-X-Name-First: Kumba Author-X-Name-Last: Digdowiseiso Title: Are fiscal decentralization and institutional quality poverty abating? Empirical evidence from developing countries Abstract: Fiscal federalism theorists have long been intrigued by the relationship between fiscal decentralization and poverty. Few people, however, consider cross-country research of similar linkages in developing countries. This research will provide new empirical evidence on the relationship between fiscal decentralization and poverty. It focuses on how the function of institutional quality can explain the relationship between fiscal decentralization and poverty in 53 developing countries from 1990 to 2014. The findings showed that a process-based approach as well as an outcome-based institutional-quality approach could explain the relationship between fiscal decentralization and poverty. In the case of democracy, revenue decentralization was found to be negatively and significantly related to poverty. In the case of, both revenue and expenditure decentralization were negatively and significantly associated with poverty. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095769 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095769 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2129366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Zaheeruddin Babar Author-X-Name-First: Zaheeruddin Author-X-Name-Last: Babar Author-Name: Umaid A Sheikh Author-X-Name-First: Umaid A Author-X-Name-Last: Sheikh Author-Name: Ather Azim Khan Author-X-Name-First: Ather Azim Author-X-Name-Last: Khan Author-Name: Suhaib Anagreh Author-X-Name-First: Suhaib Author-X-Name-Last: Anagreh Title: The linkage between oil price, stock market indices, and exchange rate before, during, and after COVID-19: Empirical insights of Pakistan Abstract: This study analyzes the trilateral relationship between macroeconomic variables of oil prices, stock market index, and exchange rate to demonstrate their behavior and inter-relationship in the economic setup of Pakistan. The investigated period includes daily time series data ranging from 4 January 2016 to 30 April 2021. The study consists of three sub-periods: the pre-COVID-19 period ranging from 4 January 2016 to 31 December 2019, COVID-19 period ranging from 1 January 2020 to 30 April 2021, and overall period ranging from 4 January 2016 to 30 April 2021 by using a Vector Autoregressive (VAR) model. The results illustrate that oil prices changes, and stock index have an insignificant direct relationship both in pre-COVID-19 and overall sub-periods of study while a positive and statistically significant relationship during the COVID-19 period. This research also suggests that stock index has a direct and statistically significant but negative impact on the exchange rate in all sub-periods of study. This research also gives practical implications for forex investors and traders to analyze the inflating and deflating stock market patterns for future investment opportunities. However, most of the previous studies emphasized on the direct influence of exchange rate on the stock market and no effort is made on vice versa association. Furthermore, this research presents a practical relevance for the stock market investors that health uncertainty regime affected the insignificant association between oil price and stock market indices and this relation turns out to be significant during the crisis regime. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2129366 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2129366 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2157120_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khadijah Iddrisu Author-X-Name-First: Khadijah Author-X-Name-Last: Iddrisu Author-Name: Joshua Yindenaba Abor Author-X-Name-First: Joshua Yindenaba Author-X-Name-Last: Abor Author-Name: Kannyiri T. Banyen Author-X-Name-First: Kannyiri T. Author-X-Name-Last: Banyen Title: Fintech, foreign bank presence and inclusive finance in Africa: Using a quantile regression approach Abstract: Africa is one of the continents with the least inclusive finance. However, with increasing use of mobile phones for financial services or financial technology (Fintech), there are improved opportunities to ‘bank the unbanked”. Also, there is a significant increase in both the presence of foreign banks and Fintech usage. Hence, we examine the moderating role of foreign bank presence on the Fintech-inclusive finance nexus over the period, 2000–2018. The results show that foreign bank presence does not directly affect inclusive finance, but increases the link between Fintech and inclusive finance. We recommend that African countries need to provide the conducive environment improving the use of Fintech. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2157120 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157120 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2157120 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2082026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Moses Nyangu Author-X-Name-First: Moses Author-X-Name-Last: Nyangu Author-Name: Nyankomo Marwa Author-X-Name-First: Nyankomo Author-X-Name-Last: Marwa Author-Name: Ashenafi Fanta Author-X-Name-First: Ashenafi Author-X-Name-Last: Fanta Author-Name: Elinami J. Minja Author-X-Name-First: Elinami J. Author-X-Name-Last: Minja Title: Bank concentration, competition and financial stability nexus in the East African Community: is there a trade-off? Abstract: This paper examines bank concentration, competition, and financial stability nexus across five emerging countries (Kenya, Tanzania, Uganda, Rwanda and Burundi) within the East African Community (EAC). The methodological approach applied provides a critical and original contribution to the existing literature by testing the various theories explaining the relationships between bank concentration, competition, and stability. A two-step system Generalised Methods of Moments (GMM) is employed on a sample of 149 banks with 1,805 annual observations over the period 2001–2018. The findings reveal that high concentration and low competition lead to more financial stability and less probability of bank default risk. In addition, a non-linear relationship between competition and stability is not observed, revealing that greater competition undermines bank stability and makes banks more vulnerable to default risk. The findings thus lend to support the concentration-stability hypothesis that greater market power leads to more bank stability even after controlling for bank-specific, industry, and macroeconomic variables. The findings provide a significant policy contribution on the trade-off between bank concentration and competition, and the evaluation of financial stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2082026 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2082026 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2054525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thomas Habanabakize Author-X-Name-First: Thomas Author-X-Name-Last: Habanabakize Author-Name: Zandri Dickason Author-X-Name-First: Zandri Author-X-Name-Last: Dickason Title: Political risk and macroeconomic effect of housing prices in South Africa Abstract: The housing market is one of the key drivers of economic growth and social welfare in South Africa. However, the performance of the market depends on housing prices which are also subjected to changes in various socio-economic and political factors. The main purpose of this study is to determine the effects of inflation (consumer price index), interest rate, rental price and political risk on housing prices. To achieve this objective, the study applies Vector Autoregressive (VAR) model, the Johansen test for cointegration, Vector Error Correction Model (VECM) and Granger causality test on monthly data starting from January 2002 to December 2019. Findings of the study suggest that inflation, interest rate, rental and political risk influence the housing prices in both the long run and short run. Changes in political risk and rental price cause a long-run decline in housing prices while high-interest rates and inflation cause an increase in housing prices. Based on findings, researchers propose stability in the inflation rate, interest rate and political situation as a solution that can assist to improve the housing market and create price stability. Additionally, interest rate reduction can generate growth in housing demand resulting in the country’s economic improvement. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2054525 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2054525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2054525 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Endalkachew Kabtamu Mekonen Author-X-Name-First: Endalkachew Kabtamu Author-X-Name-Last: Mekonen Title: The effect of residential house rent on Urban households poverty status in Ethiopia: evidence from Wolkite town Abstract: The study investigated the effect of residential house rent on urban household poverty status in Ethiopia with evidence from Wolkite town. By using structured questionnaires, primary data was collected from 248 household heads living in rental housing. In addition, a key-informant interview was conducted with the town municipality offices for triangulation purposes. The collected data were analysed by using descriptive and inferential statistic. The inferential statistic was estimated by using logistic regression model. The statistical package used to estimate the model was STATA version 14. The empirical result shows that rising residential house rent increases the poverty status of urban households. The poverty status of households is also negatively associated with access to housing allowance. Policy makers should note that the source and scope of poverty is varied. Poverty reduction policy should account the rental price of housing and integrate it with the broader national policies. Thus, the issue of residential house rent and housing should be part and parcel of the poverty reduction strategy of the government. Housing policies should also be integrated with other objectives of the government. A timely revised housing allowance and housing opportunities should be accessible to the low-income households. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125659 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125659 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2072451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jens Peter Kristensen Author-X-Name-First: Jens Peter Author-X-Name-Last: Kristensen Title: The Gini coefficient and discontinuity Abstract: This article reveals a discontinuity in the mapping from a Lorenz curve to the associated cumulative distribution function. The problem is of a mathematical nature—based on an analysis of the transformation between the distribution function of a bound random variable and its Lorenz curve. It will be proven that the transformation from a normalized income distribution to its Lorenz curve is a continuous bijection with respect to the $${L^q}$$Lq ([0,1])-metric—for every q ≥ 1. The inverse transformation, however, is not continuous for any q ≥ 1. This implies a more careful attitude when interpreting the value of a Gini coefficient. A further problem is that if you have estimated a Lorenz curve from empirical data,then you cannot trust that the associated distribution is a good estimate of the true income distribution. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2072451 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2072451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2072451 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2031683_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Salem Adel Ziadat Author-X-Name-First: Salem Adel Author-X-Name-Last: Ziadat Author-Name: Ritab AlKhouri Author-X-Name-First: Ritab Author-X-Name-Last: AlKhouri Title: Revisiting volatility spillovers in the Gulf Cooperation Council Abstract: This research offers a comprehensive review of the volatility spillover patterns in the Gulf Cooperation Council (GCC) stock market indexes covering daily data from 2/1/2004 to 5/11/2020. During this period, stock markets experienced fluctuations due to unexpected shocks, such as the international financial crisis, oil price shocks and, lately, the pandemic of COVID-19. The findings reveal a substantial increase in the connectedness of returns and volatilities in the GCC bloc during high stress periods with the COVID-19 era marking a historical high. That said, the results do not support significant changes in the directional patterns of volatility during the pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2031683 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2031683 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2141423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Taufik Abd Hakim Author-X-Name-First: Taufik Author-X-Name-Last: Abd Hakim Author-Name: Abdul Aziz Karia Author-X-Name-First: Abdul Aziz Author-X-Name-Last: Karia Author-Name: Jasmine David Author-X-Name-First: Jasmine Author-X-Name-Last: David Author-Name: Rainah Ginsad Author-X-Name-First: Rainah Author-X-Name-Last: Ginsad Author-Name: Norziana Lokman Author-X-Name-First: Norziana Author-X-Name-Last: Lokman Author-Name: Salwa Zolkafli Author-X-Name-First: Salwa Author-X-Name-Last: Zolkafli Title: Impact of direct and indirect taxes on economic development: A comparison between developed and developing countries Abstract: Taxes have extraordinary roles in any country’s economic development and policymaking. This study extends prior studies by investigating the impact of direct and indirect taxes on the economic development of 47 developed and 90 developing countries. All data about the variables involved in the study are accessed from the World Bank, covering from 2000 to 2020. Three equation models are developed to examine the impacts of tax structures on economic growth, which are gross domestic product per capita (GDPPC), foreign direct investment (FDI), and unemployment (UE). The study employed fixed effects (FE) and random effects (RE) of Generalized Least Square regression in testing the relationship between taxes structure (direct and indirect) and economic development (GDPPC, FDI, and UE). In addition, the cross-sectional dependence (CD) test is used to identify the presence of spatial dependence for FE and RE estimators. Overall, direct and indirect taxes have a significant negative relationship with economic development based on the GDPPC of developing countries. These results indicated that the tax structure in developing countries does not enhance the countries’ economic growth. By contrast, for developed countries, a significant positive relationship exists between direct taxes and economic development. Economics and Development; Economics; Public Finance Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2141423 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141423 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2141423 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2072555_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Getachew Wollie Asmare Author-X-Name-First: Getachew Author-X-Name-Last: Wollie Asmare Title: Decomposition analysis of economic growth in Afar region, Ethiopia Abstract: This paper is aimed to decompose, the economic growth of the Afar national regional state of Ethiopia in to labor productivity, employment rate and working age population and to verify whether the positive economic growth registered earlier on the region was a job creation growth or not. To do so, annual time series data ranging from 2010 to 2018 were used and per capita value added as a measure of economic growth was decomposed by using Shapley decomposition analysis technique. The result reveals that changes in output per worker accounted the highest proportion (74.33%) followed by changes in working age population (32.85%) and employment rate (−7.17%) for the total change in per capita value added during the entire period of time. The negative growth changes registered in employment rate implied that the economic growth registered on the Afar national regional state was a jobless growth. The economic growth patterns of Afar region does not favor the agriculture sector where the poor are found. The within-sector takes the lion share contributing (72.67%) to aggregate change in output per worker growth followed by structural change (13.21%) and interaction of within sectors and structural change (14.11%). Finally, these findings navigated us to suggest for policymakers, to amend their sector-wise economic policies and strategies focused to enhance employment generation and labor productivity of the Afar region. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2072555 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2072555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2072555 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ikhsan Ikhsan Author-X-Name-First: Ikhsan Author-X-Name-Last: Ikhsan Author-Name: Khairul Amri Author-X-Name-First: Khairul Author-X-Name-Last: Amri Title: Does electrification affect rural poverty and households’ non-food spending? Empirical evidence from western Indonesia Abstract: The study aims to determine the effect of electrification on rural poverty and households’ non-food spending (NFS). Using a cross-province dataset of western Indonesia from 2007 through 2017, an econometric model was used to analyze the causal relationship between the variables. The econometric model is a panel cointegration test, panel VECM, and Granger causality tests. The study pointed out three main findings. Firstly, there is a long-run equilibrium relationship between rural poverty and households’ NFS and electrification. In the long run, the electrification program has a negative and significant on households’ NFS. Secondly, in the short run, electrification significantly reduces poverty and increases households’ NFS. Thirdly, the Granger causality test pointed out that there is one-way causality from electrification to rural poverty and households’ NFS. The rural poverty reduction and the raising households’ NFS are positive impacts of the electrification program. Therefore, the local governments in western Indonesia should be electrification programs as one of the strategic options for rural poverty reduction in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095768 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095768 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2093429_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Cyprian Amutabi Author-X-Name-First: Cyprian Author-X-Name-Last: Amutabi Title: COVID-19 and price stability in Eastern Africa: How effective were the governments’ policy response measures? Abstract: This study used monthly panel data for the period March 2020-April 2021 in analyzing the differences in the impact of the COVID-19 pandemic on price stability in the East Africa Community (EAC) region. We also sought to establish the effectiveness of the governments’ policy response measures in maintaining price stability. Estimates from the Pooled Mean Group (PMG) model revealed evidence of a long-run relationship between COVID-19 and the Consumer Price Index (CPI) in the EAC region. Secondly, COVID-19 significantly increased the CPI across the panel in the long run. In the short run, the impact was significant and positive for Kenya but negative for Rwanda and South Sudan. The question of whether government policy response measures were indeed effective in maintaining price stability posits a dilemma that is rather reminiscent of a paradoxical policy solution. On one hand, governments are concerned with the welfare of their citizens which was worsened by the inception of the pandemic, and thus roll out relief measures to help inject liquidity into businesses and households. Conversely, governments are also wary that their actions might actually increase the money supply and thus trigger inflation. Governments, therefore, need to step up their vaccination drive as this is critical in spearheading the economies’ re-opening and, thus, recovery in the long run. This is contrary to the long-term application of the relief measures. Further, governments within the region need to develop well-managed food reserves that can provide a cushion in the event of price fluctuations emanating from the effects of such economic shocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2093429 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2093429 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Girma Mulugeta Emeru Author-X-Name-First: Girma Mulugeta Author-X-Name-Last: Emeru Title: The perception and determinants of agricultural technology adaptation of teff producers to climate change in North Shewa zone, Amhara Regional State, Ethiopia Abstract: The ongoing climate change is vital to exert context-specific responses to allay its adverse effects. The purpose of this study is to examine the perception and determinants of agricultural technology adaptation of teff producers to climate change in North Shewa zone, Ethiopia. Data were collected from 378 farming households through a multistage and simple proportional sampling procedure. Both descriptive and econometric analyses were used in this study. A Heckman probit model and a multinomial logit (MNL) model are used to examine the determinants of perception and adaptation to climate change, respectively. The results of the Heckman probit model revealed that gender, farm experience, access to extension services and information access were found to have a significant influence on the probability of farmers to perceive and/or adapt to climate change. The multinomial logit models showed that education, gender of the household head being male, marital status, farming experience, income, access to information, livestock ownership, tenure status, and access to extension are the main factors that increase adaptive capacity. However, distance to the nearest market and family size negatively and significantly affect the decision to adopt various agricultural technologies. This study recommends that, Future development initiatives should focus on enhencing perception and scaling up climate change adaption technology, which calls for a public-private collaboration and a shared vision of all potential stakeholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095766 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095766 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2135723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Liu Jianjiang Author-X-Name-First: Liu Author-X-Name-Last: Jianjiang Author-Name: Zhang Zhiyue Author-X-Name-First: Zhang Author-X-Name-Last: Zhiyue Author-Name: Fidelis Ayangbah Author-X-Name-First: Fidelis Author-X-Name-Last: Ayangbah Title: The impact of industrial internet on high quality development of the manufacturing industry Abstract: Comprehensive Development Index of industrial Internet from 2009 to 2018 of 31 provinces in China was obtained by using the entropy method for the article. This paper analyzes the impact of industrial Internet on high-quality development of China’s manufacturing industry by building a fixed effect model, and also studies the intermediary role of intelligence and greening on this basis. The results indicate that, Industrial Internet has significantly promoted the high-quality development of China’s manufacturing industry, of which intelligence and green play an intermediary role between the Industrial Internet and the high-quality development of the manufacturing industry, and the impact of industrial Internet on the development of manufacturing industry in the Eastern region is significantly higher than that in the Central and Western regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2135723 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2135723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2135723 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2105975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Fentaw Leykun Fisseha Author-X-Name-First: Fentaw Author-X-Name-Last: Leykun Fisseha Title: Effect of capital flight on domestic investment: Evidence from Africa Abstract: Capital flight is a major issue in developing economies; the problem is more severe in Africa, where domestic investment has been affected. Much attention has been given to the effect of legal and foreign capital flows in the international capital movement, disregarding illicit capital outflows (capital flight) from developing countries including Africa. This study examines the effects of capital flight and financial liberalization on domestic investment using the dynamic system generalized method of moments (GMM) for 30 African nations between 2000 and 2019. The econometric analysis revealed that capital flight is one of the conditions that severely constrains domestic investment financing in Africa. However, the impact of financial liberalization on domestic investment is shown to be insignificant. The empirical evidence is used to draw some policy implications aimed at reducing capital flight and enhancing domestic investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2105975 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2105975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2105975 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2117117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bayelign Abebe Zelalem Author-X-Name-First: Bayelign Author-X-Name-Last: Abebe Zelalem Author-Name: Ayalew Ali Abebe Author-X-Name-First: Ayalew Author-X-Name-Last: Ali Abebe Author-Name: Sitotaw Wodajo Bezabih Author-X-Name-First: Sitotaw Author-X-Name-Last: Wodajo Bezabih Title: Corporate governance and financial performance in the emerging economy: The case of Ethiopian insurance companies Abstract: The function of the board in financial institutions differs from that of non-financial institutions because the board of directors’ discretionary power would be limited, particularly in regulated financial systems where financial institutions must operate under legislative and prescriptive procedures, policies, rules, and regulations. As a result, the goal of this research was to look into the effect of corporate governance on the financial performance of Ethiopian insurance companies that are heavily regulated. The study used an explanatory research design with econometric panel data from nine insurance companies from 2012 to 2020. Random effect estimation technique was used to find out the most significant variable. Return on asset and equity were used to measure the financial performance and board size, management soundness, board remuneration, financial disclosure, debt and dividend policy as explanatory variables. The result revealed that board size, management soundness, board remuneration, and financial disclosure have a positive and significant effect on insurance company financial performance, whereas debt and dividend payout have a negative and significant impact on insurance company financial performance. Thus, the study concludes that all corporate governance measures have a significant impact on insurance companies' financial performance in Ethiopia as measured both by return on asset and equity. The study contributes to managers and stakeholders to improve the financial performance. Therefore, directors and other stakeholders should put in place proper governance frameworks to improve financial performance and regulators and policymakers develop policies and regulations to guarantee that businesses adopt proper governance structures in order to improve performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2117117 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2117117 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114161_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammed Armah Author-X-Name-First: Mohammed Author-X-Name-Last: Armah Author-Name: Godfred Amewu Author-X-Name-First: Godfred Author-X-Name-Last: Amewu Author-Name: Ahmed Bossman Author-X-Name-First: Ahmed Author-X-Name-Last: Bossman Title: Time-frequency analysis of financial stress and global commodities prices: Insights from wavelet-based approaches Abstract: We examine the time-frequency lead–lag relationships and the degree of integration between the US financial stress index and global commodity prices (i.e., oil, gold, silver, and cocoa) with data covering over 47 decades (January 1975 to December 2021). For this purpose, we resort to the bi- and multiple wavelet econometric approaches. Findings from the bivariate wavelet analysis evidence the significant influence of the US financial stress in driving the price-generating process in commodities markets. Our findings support the hedging abilities of commodities across the time-frequency space. Findings from the multiple correlations explicate that the interrelation between the commodities and financial stress is attributable to their interdependence in the long term during financial market meltdowns. The dynamic and nonhomogeneous lead/lag relations underscored by our findings highlight the importance of cross-commodity investments. As such, by acknowledging the response of different commodities to financial stress, asset allocation should factor in commodities that offer opposing responses to a financial stress to hedge downside risks associated with portfolios. Our findings are of interest to regulators, risk managers, investors, and commodities producers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114161 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114161 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114161 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2117116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Fidelis Ayangbah Author-X-Name-First: Fidelis Author-X-Name-Last: Ayangbah Author-Name: Bismark Addai Author-X-Name-First: Bismark Author-X-Name-Last: Addai Author-Name: Adjei Gyamfi Gyimah Author-X-Name-First: Adjei Gyamfi Author-X-Name-Last: Gyimah Title: The effect of political risk on China’s foreign direct investment Abstract: This study examines the impact of political risk on Chinese outward foreign direct investment (OFDI) and what motivates their preferred location. The study also analyzes the OFDI of other countries to enhance the comparison of China and other countries’ OFDI sensitivity to political risk. The study used annual panel data on 134 countries from 2003 to 2017. The results indicate that China’s OFDI tends to favor countries and regions with higher expropriation risk, and China’s OFDI exhibits strong resource-seeking motives and weak market-seeking motives. On the other hand, OFDI in countries around the world tends to favor countries and regions with lower expropriation risk and conflict risk, and OFDI in those countries exhibits market-seeking motives. The study results also show that China’s political risk preference and investment motives depend on the level of economic development and the presence of natural resources in the host country. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2117116 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117116 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2117116 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Akm Mohsin Author-X-Name-First: Akm Author-X-Name-Last: Mohsin Author-Name: MD Rashidul Islam Sheikh Author-X-Name-First: MD Rashidul Islam Author-X-Name-Last: Sheikh Author-Name: Hasanuzzaman Tushar Author-X-Name-First: Hasanuzzaman Author-X-Name-Last: Tushar Author-Name: Mohammed Masum Iqbal Author-X-Name-First: Mohammed Masum Author-X-Name-Last: Iqbal Author-Name: Syed Far Abid Hossain Author-X-Name-First: Syed Author-X-Name-Last: Far Abid Hossain Author-Name: Md. Kamruzzaman Author-X-Name-First: Md. Author-X-Name-Last: Kamruzzaman Title: Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans? Abstract: FinTech has raised the risk-taking level of financial institutions. This paper aims to explore FinTech Credit (FTC) scale of non-financial institutions and the risk-taking level of financial institutions into Opiela’s model, constructs objective functions and constraints for representative financial institutions by conducting theoretical analysis and research hypothesis. It also explores the relationship between FTCscale and the proportion of agriculture-related loans. Based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the individual fixed effects model is used to test the research hypothesis. Then, based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the research hypothesis was tested using an individual fixed-effects model to explore the relationship between FTCscale and the proportion of agriculture-related loans. The results show that the FTCscale can increase the share of agriculture-related loans in financial institutions. Still, the percentage of agriculture-related loans and e-commerce factors increase at a marginal decreasing rate. Furthermore, the study shows that marketization and real estate development also indirectly affect the proportion of agricultural loans through the mediating part of the FTCscale. Finally, policy recommendations are proposed to develop FTC and the implementation of rural revitalization strategy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114176 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114176 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jehona Shkodra Author-X-Name-First: Jehona Author-X-Name-Last: Shkodra Author-Name: Verlinda Bajrami Author-X-Name-First: Verlinda Author-X-Name-Last: Bajrami Title: Impact of COVID-19 on the finance sources of women in the agricultural sector: the case of Kosovo Abstract: The aim of this study is to analyse the level and determinants of women farmers’ access to financial resources in agriculture in Kosovo. The study describes the socio-economic characteristics of women farmers and identifies the socio-economic factors that influence access to financial resources. Primary data were collected from one hundred forty-six (146) women farmers who had access to a source of finance using multistage random sampling. Data were analysed using descriptive statistics, Likert scores, and probit regression estimates. 61.94% of the women had a farm size between 0.2 and 1.0 hectares and had an average farming experience of 8.33 years. The majority, 40.48% of the respondents, had formal education. They had a relatively high number of sources of finance through “family savings” and did not have access to finance through “borrowing from family members”. The probit regression estimation showed that education level, gross annual income, and net worth each exerted a significant positive influence on the probability. This implies that the relevant institutions in the country should develop policies and programmes for women farmers with low levels of education, income, and net worth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085294 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085294 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114160_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Amola Bhatt Author-X-Name-First: Amola Author-X-Name-Last: Bhatt Author-Name: Mayank Joshipura Author-X-Name-First: Mayank Author-X-Name-Last: Joshipura Author-Name: Nehal Joshipura Author-X-Name-First: Nehal Author-X-Name-Last: Joshipura Title: Decoding the trinity of Fintech, digitalization and financial services: An integrated bibliometric analysis and thematic literature review approach Abstract: Technology has reshaped how financial services are designed, delivered, and consumed over the past decade. The increased mobile and internet penetration and availability of cheap data combined with the advent of Fintech, digitalization, blockchain technology, machine learning, and artificial intelligence have fast-tracked the digital transformation of economies worldwide. Covid19-induced lockdowns accelerated the digitalization of financial services. This study identifies the main areas and current dynamics of Fintech, digitalization, and financial services and suggests future research directions. Using a bibliometric analysis followed by a thematic literature review, the study examines a sample of 583 journal articles from the Scopus database from 1984 to 2021. Based on the bibliometric analysis, we identified four dominant themes. These themes are further explored through a thematic literature review to gain further insights. We conclude by suggesting potential directions for future research in the field. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114160 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114160 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114160 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2147646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yuqi Gu Author-X-Name-First: Yuqi Author-X-Name-Last: Gu Title: CEOs’ uncommon names and corporate innovation Abstract: I study the relationship between a Chief Executive Officer (CEO)’s uncommon name and corporate innovation. Consistent with the view that individuals with uncommon names prefer being distinctive, I document a significant positive relationship between CEO name uncommonness and corporate innovation quantity but not quality. To mitigate endogeneity concerns, I use the death of the CEO as a plausible exogenous shock and find results are robust in the difference-in-differences setting. I further show that the impact on innovation output is concentrated in the areas that are well-known to the company, of low economic value, and have a low scientific impact. Overall, the findings presented in this paper suggests that the heightened innovation activities by uncommonly named CEO exacerbate the investment distortions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2147646 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2147646 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2151703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Berihu Assefa Gebrehiwot Author-X-Name-First: Berihu Assefa Author-X-Name-Last: Gebrehiwot Title: Job quality in the micro and small enterprise sector in Ethiopia: Evidence from firm-level data Abstract: Micro and small enterprises are ubiquitous in developing countries and play a central role in employment. While there is solid empirical evidence that micro and small enterprises are important drivers of job creation, there is limited evidence on the quality aspects of employment in this sector, particularly in developing countries. Much of the previous research has focused primarily on quantitative job creation. Some studies have investigated job quality using labor force survey data at the employee-level. However, these studies hardly examined the role of entrepreneurial and firm characteristics on job quality. Firms and entrepreneurs in the micro and small business sector are natural targets of policy initiatives to improve job quality. Cognizant of this, this research aims to examine the determinants of job quality in the micro and small business sector in Ethiopia. Using a large firm-level primary dataset collected in the 10 largest cities in Ethiopia, the paper examines the relationship between entrepreneurial characteristics and indicators of job quality. Our regression results show the existence of a positive and significant correlation between job quality, as measured by average wages and job security and safety indicators, and entrepreneurial education and experience, as well as firm size and the presence of a professionally recruited manager. Our findings offer some important implications for policymakers to improve job quality by identifying the entrepreneurial and firm characteristics that drive or constrain quality job creation in the formal micro and small business economy in urban contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2151703 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2151703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2151703 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tiago Cardao-Pito Author-X-Name-First: Tiago Author-X-Name-Last: Cardao-Pito Title: Hypothesis that Tobin’s q captures organizations’ debt levels instead of their growth opportunities and intangible assets Abstract: The informational content of prices hypothesis in Modigliani and Miller (and Fisher before them) advocates that organizations’ market prices could somehow estimate their growth prospects and intangible assets. For this estimation, discounted cash flow models are frequently employed. However, these models require information about monetary flows and discount rates in the long future, which are most difficult to confirm in the moment of the analysis. Thus, Tobin’s q or similar procedures as the market-to-book value of the firm have been claimed (and presupposed) as evidence that markets could identify growth prospects and intangible assets. Indeed, Tobin’s q tends to be higher for new and/or intangible intensive firms. Nevertheless, we know that for q > 1, less debt tends to imply a higher q, whereas the inverse holds for the less frequent q < 1. To explain this phenomenon, we propose a “mechanical effect hypothesis” describing an automatic relationship between q and capital structures at the variable computation. Accordingly, as intangible-intensive and/or new firms are likely to have q > 1 and less debt, a mechanical effect increases their q-values without requiring growth perspectives, or intangibles. Hence, this new hypothesis disputes Fisher-Modigliani-Miller’s utilization of discounted cash flow models to explain markets and prices. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132636 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132636 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132636 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2044587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khalil Nimer Author-X-Name-First: Khalil Author-X-Name-Last: Nimer Author-Name: Ali Uyar Author-X-Name-First: Ali Author-X-Name-Last: Uyar Author-Name: Cemil Kuzey Author-X-Name-First: Cemil Author-X-Name-Last: Kuzey Author-Name: Friedrich Schneider Author-X-Name-First: Friedrich Author-X-Name-Last: Schneider Title: E-government, education quality, internet access in schools, and tax evasion Abstract: The study examines whether e-government services reduce the prevalence of tax evasion. Importantly, the study also investigates whether education quality as captured by three proxies and internet connection in schools strengthens the negative relationship between e-government services and tax evasion. The period covered by the study is confined to the years from 2006 to 2017 due to the data availability and Time Fixed-Effects Panel Data Analysis was adopted as empirical methodology. The results confirmed the significance of e-government services in reducing tax evasion and the moderating role of education quality in this relationship. More specifically, while overall, education quality and the quality of business management schools were shown to reinforce the significant negative link between e-government and tax evasion, the quality of math education did not. Finally, internet connection in schools was also found to reinforce the negative association between e-government and tax evasion. For public administrations, e-government initiatives and services are strengthening the capacity to leverage online services in the public domain to enhance tax compliance. Education system designers can consider these results in shaping curricula, integrating taxation issues in curricula, and enabling more equitable and reliable internet access in schools. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2044587 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2044587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2044587 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2080316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sania Ashraf Author-X-Name-First: Sania Author-X-Name-Last: Ashraf Author-Name: Jithin P Author-X-Name-First: Jithin Author-X-Name-Last: P Author-Name: Zaghum Umar Author-X-Name-First: Zaghum Author-X-Name-Last: Umar Title: The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies Abstract: We investigate the asymmetric nonlinear link between foreign direct investment, oil prices, and CO2 emissions for the Gulf Cooperation Council nations, using foreign direct investment and oil price data. As foreign direct investment is positively associated with carbon emissions in the long run and oil prices have positive, significant effects on CO2 emissions, our findings support the pollution-haven hypothesis. Furthermore, these variables have an asymmetric nonlinear relationship, which corresponds to the theoretical expectations of the pollution-haven hypothesis. We also find that negative changes in foreign direct investment have positive, significant impacts on carbon emissions in the short run, implying that foreign enterprises utilize green technologies in their manufacturing processes in the short run. In the long run, however, negative changes in oil prices are positively associated with carbon emissions. These findings should help Gulf Cooperation Council economies focus on policies that encourage foreign direct investment in green rather than dirty industries in order to ensure environmental sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2080316 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080316 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2080316 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2035043_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shewit Kiros Author-X-Name-First: Shewit Author-X-Name-Last: Kiros Author-Name: Getamesay Bekele Meshesha Author-X-Name-First: Getamesay Bekele Author-X-Name-Last: Meshesha Title: Factors affecting farmers' access to formal financial credit in Basona Worana District, North Showa Zone, Amhara Regional State, Ethiopia Abstract: This study examines the factors affecting farmers’ access to formal credit in Basona Worana District, North Showa Zone, Amhara Regional State, Ethiopia. The study used cross-sectional data while conducting a survey. It was conducted from November 2019 to June 2020 G.C. A multistage random sampling technique was used, and 299 smallholders’ farmers were selected and fully took part in the survey. Quantitative data were collected using a structured questionnaire to identify the main factors of formal financial credit access. Of the total 299 participants, only 72 (24.1%) took formal financial credit from lending institutions. The data were analyzed by descriptive statistics and logistic regression analysis. The regression result reveals that age, sex of household head, family size, extension contacts, off-farm income, interest rate, lending procedure, group lending and Rapid Repayment Period are the main determinant factors that affect formal financial credit access at the household level, and these variables are found to be statistically significant at 1 % and 5 % levels of precision. On the other hand, the other remaining variables like education status, attitude towards credit risk, experience on credit use, farm land size, livestock ownership and distance from lending institutions are found to be statistically insignificant. Thus, policy makers should work to improve credit service supply and amount of credit and assist smallholders to invest the credit on their farming. Lending institutions should revise their group lending system, interest rate, lending procedure and rigid repayment periods. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2035043 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035043 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2129372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Goh Lim Thye Author-X-Name-First: Goh Lim Author-X-Name-Last: Thye Author-Name: Siong Hook Law Author-X-Name-First: Siong Hook Author-X-Name-Last: Law Author-Name: Irwan Trinugroho Author-X-Name-First: Irwan Author-X-Name-Last: Trinugroho Title: Human capital development and income inequality in Indonesia: Evidence from a nonlinear autoregressive distributed lag (NARDL) analysis Abstract: Indonesia ranks sixth globally in terms of wealth distribution inequality. Changes in human capital development may affect labor force efficiency and productivity as well as wages and income inequality levels. This study applies a nonlinear autoregressive distributed lag (NARDL) model to data from 1970 to 2019 to investigate the asymmetric impact of human capital development on income inequality in Indonesia. Our results provide significant evidence of the long-run asymmetric effects of human capital development on income inequality. More specifically, income inequality responded more significantly to increase in human capital development than to reduction. Hence, policymakers should establish inclusive lifelong learning systems that concentrate on skill enhancement, such as re-training and re-skilling, and technical and vocational training (TVET) systems to enhance a country’s human capital development. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2129372 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129372 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2129372 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2098607_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Panagiotis G. Artikis Author-X-Name-First: Panagiotis G. Author-X-Name-Last: Artikis Author-Name: Christos G. Kampouris Author-X-Name-First: Christos G. Author-X-Name-Last: Kampouris Title: Is intrinsic value priced in the cross section of stock returns? Abstract: This paper provides insights about the information content and predictive ability of the intrinsic value of the firm in an asset pricing context. The intrinsic value of a firm is of great importance for both the management and the investors of the company. We seek to assess whether the value-to-price (V/P) ratio, estimated with the residual income model (RIM), can explain the cross section of stocks returns. The study enhances the literature in the area of asset pricing by developing a new intrinsic value risk factor, which is a zero-investment portfolio that is neutral to the size, book-to-market equity ratio and the momentum effect. Furthermore, we incorporate in the RIM, for the first time, a time-series model that does not rely on analysts’ forecasts for the estimation of the key parameters of the model. A unique dataset from Greece, Italy, Spain and Portugal is utilized, from 31/12/2000 to 30/6/2019, that has a number of idiosyncrasies that are not observable in other developed markets, contributing by this way to the necessary accumulation of non-US research. The results show that the new intrinsic value risk factor absorbs the information content of the HML factor and explains better the cross section of returns, mainly for small size and high book to market value companies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2098607 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098607 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2098607 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_1996020_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Esmael Abdu Author-X-Name-First: Esmael Author-X-Name-Last: Abdu Title: Financial distress situation of financial sectors in Ethiopia: A review paper Abstract: The development of financial sectors is considered as one of vital determinants of the growth of Ethiopian economy, and for secure equitable distribution of the benefits to the society. However, financial distress has an effect on the sectors. This review was conducted to assess financial distress situation of financial sectors in Ethiopia. The objective is specifically to identify the determinants of financial distress, opportunities of financial sectors, and challenges and constraints of financial distress in Ethiopia. Ethiopia is a developing country with majority of unbanked population. Liquidity, profitability, leverage, firm size, capital adequacy, management efficiency, earning ability, inflation and interest rate are major determinant of financial distress in Ethiopia. Moreover, Ethiopian financial sectors have an opportunity of trade openness, rapid economic growth, unexploited resource, population growth and encouragement of privatization. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.1996020 File-URL: http://hdl.handle.net/10.1080/23322039.2021.1996020 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:1996020 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Arthur Benedict Author-X-Name-First: Arthur Author-X-Name-Last: Benedict Author-Name: Sithembile Mafika Author-X-Name-First: Sithembile Author-X-Name-Last: Mafika Author-Name: Kyei Baffour Tutu Author-X-Name-First: Kyei Baffour Author-X-Name-Last: Tutu Author-Name: Afenya Millicent Selase Author-X-Name-First: Afenya Millicent Author-X-Name-Last: Selase Title: The effects of political risk on foreign exchange demand: Evidence from Zimbabwe Abstract: The political climate of any country has become one of the pillars of decision-making for investment and any other financial business. Zimbabwe is one of the countries that have experienced political instability for the longest time. Many studies have looked at the impact of political risk on the stock market and other macroeconomics variables without considering the impact of political risk on the demand for foreign exchange in a country. Using secondary data from the World Bank - World Development Indicator (WDI), International Country Risk Guide (ICRG), and Reserve Bank of Zimbabwe (RBZ), this study examined the effects of political risk on the foreign currency demand in Zimbabwe. The regression results showed a negative and significant association between political risk and foreign exchange reserve both in the short run and long-run period, implying an increase in foreign currency demand as political risk increases. The study also applied an alternate indicator for foreign exchange demand to test whether the main findings are robust to different dependent variable measures. The results from the robustness test are consistent with the main findings of the study. The study makes recommendations for policymaking by the Zimbabwean government and other regulators. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111806 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111806 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Francesca Bell Author-X-Name-First: Francesca Author-X-Name-Last: Bell Author-Name: Gary van Vuuren Author-X-Name-First: Gary Author-X-Name-Last: van Vuuren Title: The impact of climate risk on corporate credit risk Abstract: Firms must estimate expected credit losses (EL) to comply with accounting standards and unexpected credit losses (UL) to determine regulatory credit risk capital. Both rely on estimates of obligor probabilities of default (PD). Investors also pay close attention to credit ratings—derived from inter alia default rates. Changes in climate will increase firm default rates. Studies investigating the impact of climate change on PDs are limited because this is a novel field and data are still relatively scarce. Africa will be most severely impacted by climate change: default rates will deteriorate leading to increased PDs, LGDs, provision requirements (through increased expected losses) and regulatory credit risk capital (through increased unexpected losses). Corporate equity prices are simulated using Geometric Brownian motion (GBM) and shocks brought about by climate events of differing frequency and severity are applied to these simulated prices. Post shock prices and return volatilities are differentially affected depending on the nature of the applied shock. These constitute inputs into a well-known model of corporate default form which resultant PDs may be extracted. A possible calibration approach is developed for climate event-based impacts on corporate default rates. A scaling factor matrix (an amount by which the unaffected default rate increases after a specified climate event type occurs) can help market participants forecast default rate changes. Climate related impacts have been quantified, calibrated, and used to assess credit quality degradation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148362 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148362 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2080898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nasir Khan Author-X-Name-First: Nasir Author-X-Name-Last: Khan Author-Name: Ogunleye Oluwasegun Abraham Author-X-Name-First: Ogunleye Oluwasegun Author-X-Name-Last: Abraham Author-Name: Adegboye Alex Author-X-Name-First: Adegboye Author-X-Name-Last: Alex Author-Name: Damilola Felix Eluyela Author-X-Name-First: Damilola Felix Author-X-Name-Last: Eluyela Author-Name: Iyoha Francis Odianonsen Author-X-Name-First: Iyoha Francis Author-X-Name-Last: Odianonsen Title: Corporate governance, tax avoidance, and corporate social responsibility: Evidence of emerging market of Nigeria and frontier market of Pakistan Abstract: The main purpose of this study is to shed light on the relationship between corporate governance, tax avoidance, and corporate social responsibility disclosure in emerging and frontier markets Nigeria and Pakistan, respectively. The current study employs a unique set of datasets about 91 companies from the Nigeria Stock Market and 121 companies from the Pakistan Stock Market for the period of ten years from 2011 to 2020. We used a fixed effect regression model to analyze the panel data. From the analysis, we find that corporate social responsibility is positively and significantly associated with tax avoidance in the case of Nigeria. Meanwhile, CSR has a positive but insignificant effect on tax avoidance in the case of Pakistan. However, board nationality shows a positive and insignificant impact on CSR, whereas board independence, board ownership, board diversity, and board size are negatively and insignificantly associated with CSR in Nigerian firms. In the case of Pakistani firms, both board ownership and board independence are positively and insignificantly associated with CSR, though board nationality has a negative but significant relationship with CSR, and board diversity and board size are negatively and insignificantly related to CSR. The paper’s findings have vital implications for policymakers, academics, and capital market users in the frontier and emerging economies. It has better significance for the government and companies to pay attention to CSR. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2080898 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080898 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2080898 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2129367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yaping Liu Author-X-Name-First: Yaping Author-X-Name-Last: Liu Title: Will and power: Investment diversification and systemic deviation from irrational risk Abstract: Examining China’s stock market, mean variance is used to measure returns and risk and build an irrational risk-asset pricing model. The power of heterogeneous beliefs and risk-valuation deviation are found to affect capital asset pricing, presenting excessive fluctuations that neoclassical finance theory cannot easily explain. A diversified portfolio can disperse or aggregate irrational risk. Trading frequency and quantity reflect differences in investors’ rationality and reveal irrational risk effects. On that basis, regulatory tools and derivative products can be designed to build a rational risk anchor, prevent the systematic bias of irrational risk, and improve capital allocation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2129367 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2129367 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2079586_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Zewdie Habte Shikur Author-X-Name-First: Zewdie Habte Author-X-Name-Last: Shikur Title: Wheat policy, wheat yield and production in Ethiopia Abstract: One of Ethiopia’s main challenges is increasing wheat production and productivity by designing and implementing an appropriate wheat policy. The country has a wheat supply and demand gap, forcing the country to spend a substantial amount of foreign currency for wheat imports, which are primarily derived from coffee and oilseed exports. The increasing imbalance between supply and demand for wheat presents serious policy issues. The purpose of this study was to evaluate the effects of wheat policy, and wheat processing industrial policy on wheat yield and production using Vector Error Correction (VEC) and Tobit models. The comparative use of both Tobit and vector error correction models enables useful critiques of the applicability of both models. The models’ results indicated that wheat policy had significant and positive effects on wheat yield and production. Importantly, the sign of the estimated coefficients is consistent across the models (i.e., Tobit and VEC models). More specifically, the estimated coefficients for technical change, market coordination, and integrated wheat policy interventions were positive, thereby confirming that the implementation of wheat policy interventions would significantly increase wheat production and productivity. Wheat yield and production were elastic due to policy interventions in the long run (i.e., elasticities values of wheat yield and output are greater than 1.00 unit). The results imply that wheat policy is important to increase wheat production and productivity by increasing the level of adoption of wheat technologies that shift from inelasticities to elasticities of wheat yield and production due to changes in the demand and price incentive in the long-run. The current supply-demand gap in wheat was 44%. In the long run, if the government implements the suggested wheat policy initiatives, this disparity might be decreased from 44 to 7%. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2079586 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079586 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2079586 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2058156_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ferry Syarifuddin Author-X-Name-First: Ferry Author-X-Name-Last: Syarifuddin Title: The dynamics of foreign direct investment and exchange rates: An interconnection approach in ASEAN Abstract: This paper examines the direct and spillover effects of exchange rate on foreign direct investment (FDI) inflows in a panel of ASEAN countries from 2001 to 2018. We utilize the spatial econometric approach to accommodate the nature of spatial dependence among ASEAN countries. Our results suggest that the effect of the exchange rate depends on the source-region of FDI, implying the existence of spatial heterogeneity in ASEAN’s FDI. We also show that FDI inflows in ASEAN are not only influenced by the exchange rate of the country itself but also by those of the neighboring countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2058156 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058156 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2058156 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2069905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Siyakudumisa Takentsi Author-X-Name-First: Siyakudumisa Author-X-Name-Last: Takentsi Author-Name: Kin Sibanda Author-X-Name-First: Kin Author-X-Name-Last: Sibanda Author-Name: Yiseyon-Sunday Hosu Author-X-Name-First: Yiseyon-Sunday Author-X-Name-Last: Hosu Title: Energy prices and economic performance in South Africa: an ARDL bounds testing approach Abstract: This paper empirically investigates the causal relationship between energy prices and economic performance in South Africa by employing the auto-regressive distributed lag (ARDL) bounds test technique for the period 1994 to 2019. The empirical evidence that was reviewed used a different methodology and covered different periods, particularly in the South African context. While previous studies investigated energy prices by examining oil or electricity prices separately, this study combined these prices in the regression model. The ARDL model is capable of detecting hidden cointegration relationships and works even in series that are integrated of different orders. The study established a long-run relationship between the variables. The findings revealed that electricity prices have a significant negative impact on economic growth in the long and short run, while crude oil prices show a significant positive linkage with economic growth in the long and short run. The Granger causality analysis did not establish a causal relationship between energy prices and economic growth in South Africa. However, it pointed to unidirectional causality from both labour productivity and gross fixed capital formation to economic growth. It is thus recommended that the government should take steps to mitigate the effects of high electricity prices on economic growth in South Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2069905 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2069905 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2023263_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Van Cuong Dang Author-X-Name-First: Van Cuong Author-X-Name-Last: Dang Author-Name: Quang Khai Nguyen Author-X-Name-First: Quang Khai Author-X-Name-Last: Nguyen Title: Audit committee characteristics and tax avoidance: Evidence from an emerging economy Abstract: This study aims to examine the impact of the characteristics of the audit committee on tax avoidance in Vietnam. The article uses data of non-financial firms listed on the Ho Chi Minh City and Ha Noi Stock Exchange over the period 2010–2019. By using the FEM and SGMM estimation for panel data, the empirical results show how the characteristics of the audit committee affect tax avoidance differently. Specifically, we find that the size of the audit committee has a positive correlation to tax avoidance, while the proportion of female members, financial and accounting experts of the audit committee can constrain tax avoidance behaviors. Our finding provides some important implications for listed firms to enhance the role of the audit committee in constraining tax avoidance behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2023263 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023263 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2023263 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2038417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Minh Ha Author-X-Name-First: Nguyen Author-X-Name-Last: Minh Ha Author-Name: Bao Ngoc Do Author-X-Name-First: Bao Ngoc Author-X-Name-Last: Do Author-Name: Trung Thanh Ngo Author-X-Name-First: Trung Thanh Author-X-Name-Last: Ngo Title: The impact of family ownership on firm performance: A study on Vietnam Abstract: The purpose of this study is to examine the effect of family ownership and other factors on firm performance in Vietnam and to determine the optimal level of family ownership required to maximize firm performance. The study employs the quantitative method of panel-corrected standard errors (PCSE) regression to analyze data on 31 nonfinancial enterprises listed on the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam between 2011 and 2019. The firm performance is analyzed from both a market perspective (via Tobin’s Q) and an accounting perspective (via return on assets [ROA]). The U-shaped curve illustrating this effect show that the relationship between family ownership and the performance of Vietnamese enterprises is negative. Tobin’s Q decreases as the family ownership ratio increases. Firm performance reaches its lowest point when family ownership exceeds 42.53%; then, as family ownership increases, Tobin’s Q increases as well. Similarly, as family ownership increases, ROA decreases, and firm performance reaches its lowest point at 65.89%; then, as family ownership increases, firm performance improves. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2038417 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2038417 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2009664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gutema Bati Fedi Author-X-Name-First: Gutema Author-X-Name-Last: Bati Fedi Author-Name: Fekadu Dereje Asefa Author-X-Name-First: Fekadu Author-X-Name-Last: Dereje Asefa Author-Name: Abebe Tafa Waktole Author-X-Name-First: Abebe Author-X-Name-Last: Tafa Waktole Title: Farm households’ perception about sugarcane outgrowers’ scheme: Empirical evidence around Wonji/Shoa Sugar Factory Abstract: The study assessed the perception of contract farm households about sugarcane outgrowers’ scheme around the Wonji/Shoa sugar factory. The study utilized primary data collected from randomly selected samples of 200 members of sugarcane-producing farmers’ cooperatives through a structured survey questionnaire. Purposively selected ten KIIs and six FGDs were also conducted with contract farmers and stakeholders. The five-point Likert scale measurement was created and applied to measure the perception of respondents about the scheme on considered 26 attributes and analyzed through descriptive statistics. Results revealed that the overall perception of the respondent contract farm households about the scheme was unfavorable with a weighted mean/index score of ‘2.32ʹ with a mixed perception index score on considered 26 attributes. The study discussed the policy implications of the findings. The main areas of concern are the payment system, the relationship of contract farmers with representatives (from the union, factory, and cooperatives), the income of contract farm households, the provision of services package (like free training, extension services, technical advice), the transparent and comprehensive contract terms and conditions, the provision of basic inputs and production services as per agreement (like adequate land preparation, infield irrigation), the effective and efficient legal framework system, additional support by third parties (on pre and post-harvest, production input provision, basic skill training, and etc.), and both parties should develop trust by having confidence on each other and not by acting opportunistically. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2009664 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009664 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2009664 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2145749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Duc Hieu Pham Author-X-Name-First: Duc Hieu Author-X-Name-Last: Pham Title: Determinants of going-concern audit opinions: evidence from Vietnam stock exchange-listed companies Abstract: In this study, we aim to examine the effect of company and auditor characteristics on the issuance of going-concern opinions. The study population encompasses all financially distressed manufacturing companies listed on the Vietnam Stock Exchange during 2010–2019. The results indicate that the financial condition, incurring loss, audit report delay, and frequency of the board of director meetings significantly influence the issuance of auditors’ going-concern opinions. Company size, auditor size, and other financial ratios such as return on asset, leverage, and liquidity have no significant impact on the going-concern audit opinions. This study contributes to the limited research on going-concern audit opinions in the context of Vietnam. The results also provide a basis for recommendations to both auditors and audit clients on the determinants of going-concern audit opinions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2145749 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145749 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2145749 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2079178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Stefani Milovanska-Farrington Author-X-Name-First: Stefani Author-X-Name-Last: Milovanska-Farrington Title: Do parents expect too much or is it all about grades? The discrepancy between parents’ aspirations and child’s academic performance, and parental satisfaction with the school Abstract: Schooling is related to health and future labor market outcomes. The school parents choose for their children often depends on feedback received from other parents. Therefore, it is important to understand whether parental satisfaction with the school depends only on objective measures of the quality of the school. We examine the association between children’s academic performance, parents’ aspirations, the mismatch between the two, and parents’ satisfaction with different aspects of children’s schooling. The findings suggest that excellent academic performance of the child is associated with higher parental satisfaction, regardless of parents’ aspirations. High expectations accompanied by low performance are negatively related to parental satisfaction with all aspects of children’s schooling. The results have implications related to school rankings and the significance of parental school reviews. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2079178 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2079178 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127489_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Van Hai Hoang Author-X-Name-First: Van Hai Author-X-Name-Last: Hoang Title: Firm-specific news and idiosyncratic volatility anomalies: Evidence from the Chinese stock market Abstract: In this paper, we examine the relationship between idiosyncratic volatility and future returns around the firm-specific news announcements in the Chinese stock market following. The results show that the pricing of non-news idiosyncratic volatility is more strongly negative compared to news idiosyncratic volatility. Such findings imply that limited arbitrage cannot fully explain the negative pricing of idiosyncratic volatility in the Chinese stock market. These results are robust after controlling for several well-known variables, such as market beta, firm size, book-to-market, momentum, liquidity, and maximum return. However, after adjusting by additional macroeconomic variables, the Chinese four-factor model and the salience trading volume factor, the average returns on zero-investment IVOL and non-news IVOL portfolios turn out to be insignificant, indicating that they may be one driver of the IVOL puzzle in the Chinese stock market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127489 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127489 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127489 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114168_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shemelis Kebede Hundie Author-X-Name-First: Shemelis Kebede Author-X-Name-Last: Hundie Author-Name: Bane Biratu Author-X-Name-First: Bane Author-X-Name-Last: Biratu Title: Response of Ethiopian coffee price to the world coffee price: Evidence from dynamic ARDL simulations and nonlinear ARDL cointegration Abstract: World coffee prices may have crucial implications on domestic prices of coffee. However, empirical evidence on the effect of world coffee prices on the price of coffee traded at the Ethiopian Commodity Exchange (ECX) is very scant. The main objective of this study is to analyze the response of the price of coffee traded at ECX to change in world coffee price. Monthly time series data ranging from July 2009 to June 2020 were used to address the objectives of this study. The result of the Kapetanios and Shin unit root test shows that majority of the series are stationary at first difference while some variables are stationary at level. The ARDL bounds test was applied to examine whether co-movement exists between the world coffee price and the price of coffee traded at ECX and the result reveals that the two prices are cointegrated. The nonlinear ARDL was applied to test the presence of asymmetric price transmission from the world coffee price to the ECX coffee price. The result reveals that there is an asymmetric price transmission both in the short-run and long-run. ECX coffee prices respond more to a positive shock in world coffee prices than a negative shock in the same variable. Results from the dynamic ARDL simulations reveal that a counterfactual shock in world coffee price has a long-lasting short-and long-term effect on ECX coffee price. The TY and frequency-domain Granger causality test results indicate that all variables except the exchange rate the world coffee price Granger cause ECX coffee price. The frequency-domain Granger causality test results show that world coffee price, economic growth, and money supply granger cause ECX coffee price in the long-run while trade openness and volume of coffee exported granger cause ECX coffee price in the short term. Policymakers should focus on improving competitiveness and transaction cost prevailing in the coffee market in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114168 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114168 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2104780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jules Ngango Author-X-Name-First: Jules Author-X-Name-Last: Ngango Author-Name: Fabrice Nkurunziza Author-X-Name-First: Fabrice Author-X-Name-Last: Nkurunziza Author-Name: Joseph Ndagijimana Author-X-Name-First: Joseph Author-X-Name-Last: Ndagijimana Title: Assessing rural farmers’ willingness to pay for crop insurance scheme: Evidence from Rwanda Abstract: Agriculture plays a significant role in Rwanda’s economic growth but is still highly rain-fed with risks and losses caused by adverse natural and climate shocks. Agricultural insurance schemes are widely recognized as potential risk management strategies. This study aims to examine the determinants of farmers’ willingness to insure maize farms and the premium farmers are willing to pay for crop insurance. The data used in this study were obtained from a household survey conducted in Eastern Rwanda and a sample of 325 households was drawn. A double-hurdle model is used for empirical analysis and the findings show that education, land tenure, farm size, group membership, and insurance awareness have a positive effect on maize farmers’ decision to adopt crop insurance. Regarding the determinants of willingness to pay, education, land tenure, farm size, credit access, and income positively influenced the insurance premium maize farmers were willing to pay whereas household size negatively influenced the premium farmers were willing to pay for crop insurance. The study recommends policy frameworks that strengthen the education in rural communities about the usefulness of crop insurance to enhance farmers’ participation in crop insurance and increase the premium farmers will be willing to pay for crop insurance. Besides, the study highlights the importance of building the capacity of farmers’ groups or cooperatives to promote the uptake of crop insurance as well as the premium to be paid. The study also recommends the improvement of farmers’ access to credit facilities to allow farmers to get the financial capability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2104780 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2104780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2104780 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2116788_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Julio Vicente Cateia Author-X-Name-First: Julio Author-X-Name-Last: Vicente Cateia Author-Name: Luc Savard Author-X-Name-First: Luc Author-X-Name-Last: Savard Author-Name: Edivo de Oliveira Almeida Author-X-Name-First: Edivo Author-X-Name-Last: de Oliveira Almeida Title: Impact of covid-19 on labor force participation in Brazil Abstract: This study aims to analyze the impact of Covid-19 on the female’s labor force participation (LFP) probability in Brazil in 2020. We found through the probit model that females are about 7 percentage points less likely to participate in the labor force than males. Covid-19 and layoffs decrease by about 7 and 30 percentage points the women’s LFP probability, respectively. An additional year of schooling increases female’s LFP probability by 14 percentage points. These results are statistically significant at 1%. However, Covid-19-gender interaction term coefficient is not significant. We suggest a rich agenda for women’s jobs opportunities in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2116788 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2116788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2116788 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Melsew Nibret Mazengiya Author-X-Name-First: Melsew Nibret Author-X-Name-Last: Mazengiya Author-Name: Girmachew Seraw Author-X-Name-First: Girmachew Author-X-Name-Last: Seraw Author-Name: Birhanu Melesse Author-X-Name-First: Birhanu Author-X-Name-Last: Melesse Author-Name: Tesfaye Belete Author-X-Name-First: Tesfaye Author-X-Name-Last: Belete Title: “Determinants of rural household saving participation: A case study of Libokemkem District, North-west Ethiopia” Abstract: Saving is an important factor in households’ welfare in developing countries. However, most studies have focused on urban areas and at the macroeconomic level. Consequently, such studies mask the reality of rural households, which constitute a large proportion in Ethiopia. Hence, this study aims at analyzing the factors that influence the probability of saving participation at the household level in the Libokemkem District. We employed a systematic random sampling technique to select a total of 157 household heads in three kebeles in Libokemkem District, Ethiopia. We used structured questionnaires to collect data from the sampled households. We then analyzed the data using a logistic regression model. The results of the study show that family size, farm land, education status, credit access and frequency of extension contact are the determinant factors for saving participation among rural households. We recommend that the Ethiopian Ministry of Economic and Finance should strengthen the existing credit services and create awareness campaigns for the communities to enhance rural saving participation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127219 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127219 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127219 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2116789_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Baher Ahmed Elgahry Author-X-Name-First: Baher Ahmed Author-X-Name-Last: Elgahry Title: Floating versus fixed: How exchange rate regimes affect business cycles comovement between advanced and emerging economies Abstract: This article investigates the effects of the different exchange rate regimes on business cycles comovement between advanced and emerging countries. We use the Granger Causality test (VAR model) on panel data to examine the causal relationships. Our findings show the existence of a bidirectional causal relationship between output comovement and the exchange rate regimes. We check the robustness of our results by applying Dumitrescu-Hurlin (2012) panel causality test that confirms our findings. Furthermore, the impulse response functions illustrate that business cycles comovement between advanced and emerging economies responds positively and significantly to the exchange rate regimes of these two groups of countries in the short term. However, the positive effect begins to wane before being negative from the third quarter and the fifth quarter for emerging economies and developed economies, respectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2116789 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2116789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2116789 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2117118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kelvin Yong Ming Lee Author-X-Name-First: Kelvin Yong Author-X-Name-Last: Ming Lee Author-Name: Pick-Soon Ling Author-X-Name-First: Pick-Soon Author-X-Name-Last: Ling Author-Name: Chiang-Ching Tan Author-X-Name-First: Chiang-Ching Author-X-Name-Last: Tan Title: Does environmental issue matter? Effect of air pollution on the stock market performance Abstract: Air pollution is one of the most serious environmental issues. In Malaysia, the emission of air pollutants has increased in recent years. This study aimed to examine the impact of air pollution on sectoral indices in Malaysian stock market. The dependent variables used in this study were the daily return of 13 sectoral indices, while the independent variables were as follows: (i) the lagged daily return of sectoral indices; (ii) the lagged standard deviation of sectoral indices; and (iii) the Air Quality Index (AQI). The sample period of this study covered from 5 July 2019 to 8 April 2022. The findings showed that the lagged daily return only significantly affected the daily return of few sectors. Meanwhile, the lagged standard deviation significantly affected the daily return of all the sectoral indices, but not under all the market conditions. The lagged AQI and AQI also significantly affected the daily return of eight sectors, which included finance, property, construction, healthcare, technology, energy, utilities, and consumer sectors. Hence, investors need to observe the changes in the air pollution level and market conditions when making investment decision. These findings could help investors in identifying the environmental factors that need to be considered before investing in the stocks of particular sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2117118 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2117118 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2058735_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Isaac Ofoeda Author-X-Name-First: Isaac Author-X-Name-Last: Ofoeda Author-Name: Elikplimi Komla Agbloyor Author-X-Name-First: Elikplimi Komla Author-X-Name-Last: Agbloyor Author-Name: Joshua Yindenaba Abor Author-X-Name-First: Joshua Yindenaba Author-X-Name-Last: Abor Title: How do anti-money laundering systems affect FDI flows across the globe? Abstract: This paper is a systematic attempt to establish the effect of anti-money laundering (AML) systems on FDI flows across the globe. Complex and related hypotheses are tested using data from 2012 to 2018 across 165 economies across different continents, income levels, and regulatory environments. First, the paper examines the effect of AML systems on FDI flows. Second, the paper examines the nonlinearities of the AML systems-FDI nexus. Third, the paper examines if host country peculiarities such as an offshore financial centre (OFCs) or originating from Africa alter this relationship. The paper employs the two-step system GMM and the dynamic panel threshold regression techniques to test the hypotheses of the study. Generally, the paper provides evidence that AML systems positively promote FDI inflows. However, the paper finds that AML structures dampen FDIs inflows for OFCs. Further, the paper finds that the influence of AML systems on FDIs is threshold-specific. Specifically, AML systems positively impact FDIs below the threshold for our full, developing, and African country samples. At the same time, the study finds a negative impact of AML structures on FDIs above the threshold value for our full sample and developing countries. However, for Africa, the study provides evidence of a positive impact of AML systems on FDIs across the different AML structures. Again, the study finds that AML systems negatively impact FDI across all AML structures for offshore financial centres. The findings of the study provide insights into the importance of AML systems in influencing MNEs’ FDI decisions to a country. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2058735 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2058735 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mamadou Asngar Thierry Author-X-Name-First: Mamadou Asngar Author-X-Name-Last: Thierry Author-Name: Ongo Nkoa Bruno Emmanuel Author-X-Name-First: Ongo Nkoa Author-X-Name-Last: Bruno Emmanuel Author-Name: Nchofua Protus Biondeh Author-X-Name-First: Nchofua Author-X-Name-Last: Protus Biondeh Title: Environmental sustainability in Sub-Saharan Africa: Does information and communication technology (ICT) matter? Abstract: This study investigates the effect of information and communication technology (ICT) on environmental sustainability in 38 Sub-Saharan African (SSA) countries over a period 2000–2016. ICT is measured by internet penetration and mobile phone penetration whereas environmental sustainability is measured by CO2 emissions. The empirical evidence is based on the extended stochastic impact by regression on population, affluence and technology model. As estimation techniques, pooled ordinary least squares (OLS), fixed effect (FE), random effect (RE), panel correlated standard error (PCSE) and feasible generalised least squares (FGLS) are employed. The finding broadly shows that investment in ICT infrastructure enhances environmental sustainability. In addition, the effect of ICT is uniform across different income levels in SSA. As a policy implication, universal ICT access that encourages low pricing and broad coverage of equipment should be considered. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125657 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125657 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2073656_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tony Anyangwe Author-X-Name-First: Tony Author-X-Name-Last: Anyangwe Author-Name: Annabel Vanroose Author-X-Name-First: Annabel Author-X-Name-Last: Vanroose Author-Name: Ashenafi Fanta Author-X-Name-First: Ashenafi Author-X-Name-Last: Fanta Title: Determinants of financial inclusion: does culture matter? Abstract: This study aims to assess the role of culture as a determinant of financial inclusion, defined with respect to formal account ownership, saving and credit in/from formal financial institutions. A sample of 85 countries, comprising 50 developing and 35 developed countries from the World Bank’s Global Findex database is used to perform probit estimations. Hofstede’s cultural dimensions, namely power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, short/long-term orientation, and indulgence/restraint are used as culture measures. Our findings indicate that living in high power distance, more masculine, and high uncertainty avoidance cultures reduces the likelihood for financial inclusion. Meanwhile, living in more individualistic, long-term oriented, and more indulgent cultures increases the likelihood for financial inclusion. These findings are relevant for the design of policies to foster financial inclusion across the developing world, especially as financial inclusion affects poverty levels and reduction strategies, and economic development as a whole. We provide evidence which dismisses the global “one size fits all” strategy applied to development-related initiatives like the global provision of funds towards financial inclusion, and argue for a more customised approach given country-level differences conditioned by different cultural frameworks. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2073656 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2073656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2073656 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2082025_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jean René Cupidon Author-X-Name-First: Jean René Author-X-Name-Last: Cupidon Author-Name: Judex Hyppolite Author-X-Name-First: Judex Author-X-Name-Last: Hyppolite Title: An exchange rate model where the fundamentals follow a jump-diffusion process Abstract: This paper presents some models of exchange rate with jumps, namely jump diffusion exchange rate models. Jump diffusion models are quite common in computational and theoretical finance. It is known that exchange rates sometimes exhibit jumps during some time periods. Therefore, it is important to take into account the presence of these jumps in exchange rate modeling in general. However, even the simplest jump diffusion model introduces some analytical difficulty in terms of finding a solution to the model. The models we analyze in this paper make use of Approximation Theory in order to come up with closed form solutions to the underlying variables. This approach leads to the branch of differential equations called functional differential equations and more specifically the so-called delay differential equations. Our approach leads to a second order delay differential equation. Though, in principle, these types of functional differential equations can be solved analytically in some cases, the task, in general, is quite enormous. We circumvent this technical difficulty by deriving an approximate solution using a power series expansion of the second order. Therefore, we derive a complete solution to the models and also investigate the model’s predictions of the exchange rate. We introduce two jump diffusion models. The first model examines the case where there are jumps with a constant magnitude. The second model considers the case of jumps of different sizes. These are relatively simpler cases to be analyzed. We will present some computational aspects in terms of the difficulty often encountered in estimating these types of models. The difficulty increases for the type of exchange rate models being considered in this paper. Taking advantage of the specification of the models we have estimated the parameters using a two-step M-estimation strategy that combines full information maximum likelihood estimation in the first step and the simulated method of moments in the second step. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2082025 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2082025 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087290_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Duc Nguyen Nguyen Author-X-Name-First: Duc Nguyen Author-X-Name-Last: Nguyen Author-Name: Thuy T. Dang Author-X-Name-First: Thuy T. Author-X-Name-Last: Dang Title: The relationship between central bank independence and systemic fragility: global evidence Abstract: This study investigates the relationship between central bank independence and financial stability in a global sample covering 56 countries from 1980 to 2012. We find strong and robust evidence that central bank independence and its four dimensions (personnel independence, financial independence, policy independence, and central bank objectives) are negatively associated with bank systemic risk. In addition, the results indicate that the reductive effect of central bank independence on systemic risk is more pronounced during actual episodes of banking crises. Moreover, our results suggest that the democratic environment plays a vital role in moderating the central bank independence − systemic risk nexus. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087290 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087290 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087290 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111799_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Richard Chamboko Author-X-Name-First: Richard Author-X-Name-Last: Chamboko Author-Name: Sevias Guvuriro Author-X-Name-First: Sevias Author-X-Name-Last: Guvuriro Title: On the predictors of loan utilization and delinquency among microfinance borrowers in Zimbabwe: A Poisson regression approach Abstract: Microfinance institutions (MFIs) are a prominent financial inclusion initiative in many developing countries. In Zimbabwe, however, less is known about microfinance borrowers, determinants of loan utilisation and borrowers’ repayment behaviour. Demonstrating that MFIs serve those who are economically marginalised and traditionally excluded from the formal financial system is useful in a country where most of the economic activities are in the informal sector. This study investigated the factors associated with the utilisation of microfinance loans and delinquency among microfinance borrowers using the Poisson, logit and the zero-truncated Poisson regression models on 6165 unique borrowers in Zimbabwe. The study findings revealed that microfinance loans were significantly more likely to be accessed by low-income individuals, who took small loans with relatively high instalments. Women were less likely to access microfinance loans, and reliable borrowers were more likely to access repeat loans. The level of income, number of previous loans and loan terms explained the delinquency among borrowers. Largely, the findings suggest that microfinance in Zimbabwe serves the needs of the low-income group. However, policies that seek to improve access to credit for women and youth remain a priority. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111799 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111799 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111799 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2056361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Haidar Alqadhib Author-X-Name-First: Haidar Author-X-Name-Last: Alqadhib Author-Name: Nada Kulendran Author-X-Name-First: Nada Author-X-Name-Last: Kulendran Author-Name: Lalith Seelanatha Author-X-Name-First: Lalith Author-X-Name-Last: Seelanatha Title: Impact of COVID-19 on mutual fund performance in Saudi Arabia Abstract: This study aims to measure the performance of actively-managed Saudi Arabia mutual funds during the COVID-19 outbreak and examines the potential impact of COVID-19 growth on the measured performance. The authors apply the Fama and French five-factor model to measure the risk-adjusted performance of a selected sample of 79 mutual funds. Mutual funds in Saudi Arabia outperformed the market with a significant positive alpha of 0.15%. The panel data regression technique identified the impact of growth in new confirmed cases and fatalities with fund-specific variables on mutual fund performance. The findings suggest that new confirmed cases had a significant and negative impact on mutual fund unadjusted returns and risk-adjusted returns. The significant positive impact of growth in COVID-19 fatalities on fund performance may have been interpreted as positive news by the market participants as the actual mortality rate was lower than previous forecast. Moreover, the study found that even individually, most mutual fund managers were not able to minimise the impact of the COVID-19 outbreak on mutual fund returns compared to the market portfolio. This study examines the potential impact of growth in COVID-19 cases as a new factor affecting mutual fund performance which helps investors to understand the behaviour of mutual fund performance during the COVID-19 crisis. It also provides evidence on how mutual fund performance reacted to the COVID-19 outbreak when compared to the overall market performance reaction. Moreover, this is the first study that applied the Fama and French five-factor model to estimate the mutual funds’ risk-adjusted performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2056361 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2056361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2056361 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kwasi Poku Author-X-Name-First: Kwasi Author-X-Name-Last: Poku Author-Name: Emmanuel Opoku Author-X-Name-First: Emmanuel Author-X-Name-Last: Opoku Author-Name: Priscilla Agyeiwaa Ennin Author-X-Name-First: Priscilla Author-X-Name-Last: Agyeiwaa Ennin Title: The influence of government expenditure on economic growth in Ghana: An Ardl approach Abstract: The relationship between public sector expenditure and economic growth for several decades past is still relevant today and continues to be a topic of debate among policy-makers and researchers. We examine the impact of government expenditure on economic growth in Ghana using data from 1970 to 2016, employing ARDL econometric estimation technique. The empirical findings indicate that, government expenditure has a positive relationship with economic growth in the short-run. The results further show that, Gross Capital Formation and Foreign Direct Investment show a significant positive relationship with economic growth in both the short-run and long-run. However, population growth reveals a significant negative relationship with economic growth (GDP Growth). We recommend government to increase public expenditure on profitable projects since it promotes economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2160036 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160036 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2160036 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2019360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: M. Fahad Malik Author-X-Name-First: M. Fahad Author-X-Name-Last: Malik Author-Name: Masood Sarwar Awan Author-X-Name-First: Masood Sarwar Author-X-Name-Last: Awan Author-Name: Waseem Shahid Malik Author-X-Name-First: Waseem Shahid Author-X-Name-Last: Malik Title: Determination of inflationary behavior: A comparative analysis Abstract: Standard theory of consumer behavior stands on the maxim of utility maximization. Optimizing behavior of consumer is achieved by maximization of utility subject to budget constraint. An increase in inflation that is not accompanied by proportionate increase in income can leave a consumer worse off. Therefore, it is imperative for consumers to have right assessment about inflation which in turn requires appropriate modelling of inflationary behavior. This study assesses efficacies of different versions of new Keynesian Phillips curve for capturing dynamics of CPI inflation. Estimation of different formulations of this curve is achieved by employing generalized method of moments. This choice of estimation technique is made to handle potential problem of endogeneity. Countries with different resource and market structures are included to evaluate and compare fitness of different formulations for different economies. Economies of Pakistan and Turkey represent developing economies, economy of South-Korea is incorporated for emerging market economy and economies of Canada, UK and US are included for developed economies. The results of this study reveal that internal as well as external factors are crucial for explaining inflationary behavior of developing economies. Whereas, dynamics of domestic inflation for advanced economies are mostly explained by internal factors. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2019360 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2019360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2019360 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127486_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Andini Nurwulandari Author-X-Name-First: Andini Author-X-Name-Last: Nurwulandari Author-Name: Hasanudin Hasanudin Author-X-Name-First: Hasanudin Author-X-Name-Last: Hasanudin Author-Name: Bambang Subiyanto Author-X-Name-First: Bambang Author-X-Name-Last: Subiyanto Author-Name: Yulia Catur Pratiwi Author-X-Name-First: Yulia Catur Author-X-Name-Last: Pratiwi Title: Risk Based bank rating and financial performance of Indonesian commercial banks with GCG as intervening variable Abstract: This study aims to analyze the effect of the financial health of Indonesian commercial banks on financial performance with good corporate governance as an intervening variable. This study utilizes the risk-based bank rating (RBBR) method with secondary data by examining annual reports of 41 commercial banks taken as samples for the period from 2014 to 2019. The ratios used in this study are Non-Performing Loans (NPL), Loan Deposit Ratio (LDR), Net Interest Margin (NIM), and Operating Efficiency Ratio (OER), Capital Adequacy Ratio (CAR), Return on Assets (ROA) and Good Corporate Governance (GCG). The results showed that NIM had a direct positive and significant effect on ROA, while OER had a negative and significant effect on ROA, as hypothesized. Direct testing of GCG shows a negative and significant effect of NPL and OER, as well as a positive and significant effect of NIM. Furthermore, indirect testing with intervening variables shows that GCG is able to mediate the relationship between NPL and OER on the financial performance of conventional banks in Indonesia. In addition, GCG is also empirically proven to strengthen the positive and significant effect of NIM on ROA. This finding underscores the importance of good corporate governance in improving the financial health of commercial banks in Indonesia. In addition, the results theoretically would imply for the relevance of investigations regarding governance mechanisms and moral ethics as the domains of strategic issues of corporate governance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127486 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127486 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2107766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hendrik Widjaja Author-X-Name-First: Hendrik Author-X-Name-Last: Widjaja Author-Name: Moch. Doddy Ariefianto Author-X-Name-First: Moch. Doddy Author-X-Name-Last: Ariefianto Title: The dynamic of bank stock price and its fundamentals: Evidence from Indonesia Abstract: This study examines the relationship between bank stock price and its selected fundamentals, namely, profitability, credit risk, and liquidity risk. Using the dynamic common correlated effect (DCCE) technique, we discover a mechanism error-correction between the stock price and the selected fundamentals. We estimate that the equilibrating process of stock price takes between 2.62 and 3.22 months. This study also provides significant support for hypotheses of the positive role of profitability (proxied by ROE and NIM) to bank stock price. Credit and liquidity risk measures do not significantly affect stock price. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2107766 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2107766 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2156090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Markew Mengiste Neway Author-X-Name-First: Markew Mengiste Author-X-Name-Last: Neway Author-Name: Solomon Estifanos Massresha Author-X-Name-First: Solomon Estifanos Author-X-Name-Last: Massresha Title: The determinants of household poverty: the case of berehet woreda, amhara regional state, Ethiopia Abstract: Nowadays, poverty is one of the most important issues that needs due attention in many developing countries like Ethiopia. Nonetheless, poverty in Ethiopia remains widespread in both rural and urban areas. Therefore, this study aimed to examine the determinants and status of poverty in Berehet Woreda. The study was conducted using a cross-sectional survey. To conduct the study, a sample of 384 households was selected using a stratified simple random sampling technique. Foster Greer Thorbecke’s Poverty Index was used to examine the extent and severity of poverty in the Woreda. Accordingly, about 36% of households in Woreda live below the poverty line, with an average poverty gap of 12% and poverty severity of about 7%. The binary logit model showed that household education status, dependency ratio, residential area, and access to credit were statistically significant in determining household poverty status. Since the poverty situation in Woreda was worse than the national average, the regional government should prioritize this Woreda and develop a special type of projects especially in rural areas that can lift the majority of the poor out of poverty. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2156090 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2156090 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2071386_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Safari Mulume Bonnke Author-X-Name-First: Safari Author-X-Name-Last: Mulume Bonnke Author-Name: Paul Martin Dontsop Nguezet Author-X-Name-First: Paul Martin Author-X-Name-Last: Dontsop Nguezet Author-Name: Alexis Nyamugira Biringanine Author-X-Name-First: Alexis Author-X-Name-Last: Nyamugira Biringanine Author-Name: Mulumeoderhwa Shalukoma Jean-Jacques Author-X-Name-First: Mulumeoderhwa Shalukoma Author-X-Name-Last: Jean-Jacques Author-Name: Victor Manyong Author-X-Name-First: Victor Author-X-Name-Last: Manyong Author-Name: Zoumana Bamba Author-X-Name-First: Zoumana Author-X-Name-Last: Bamba Title: Farmers’ credit access in the Democratic Republic of Congo: Empirical evidence from youth tomato farmers in Ruzizi plain in South Kivu Abstract: This article assesses the opinions of youth tomato growers on the accessibility of agricultural credit and factors that influence the accessibility in the Democratic Republic of the Congo (DRC). Data originated from a household survey for the 2019/2020 farming season. We interviewed 218 youth tomato growers from 6 horticulture production zones in the South-Kivu, eastern DRC. The result reveals a low rate of 20.6% on accessing agricultural credit among tomato growers. The topmost nature of agricultural credit received was cash-based, mostly from informal sources of finance (92.7%). The findings reveal that the lack of information on agricultural credit, the fear of credit default, and the absence of Microfinance Institutions in the study areas were the highest-ranking factors hindering tomato growers from accessing agricultural credit services. Our probit model shows that total household income, gender, and tomato growers’ membership in a cooperative were essential factors that explain the probability of accessing agricultural credit. We recommend formalising the agricultural credit system by improving agri-finance extension service delivery to associations of tomato growers among the young to access and use agricultural microcredit services effectively to enhance agricultural production, which is a proxy for rural employment creation and poverty reduction. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2071386 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071386 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071386 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101239_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Saturnin Bertrand Nguenda Anya Author-X-Name-First: Saturnin Bertrand Author-X-Name-Last: Nguenda Anya Author-Name: Fabrice Nzepang Author-X-Name-First: Fabrice Author-X-Name-Last: Nzepang Title: The effects of alternating heads of state on structural transformation in sub-Saharan Africa Abstract: The objective of this paper is to investigate the effect of alternating heads of state on structural transformation in sub-Saharan Africa (SSA). Indeed, the alternation of a head of state is an institutional tool likely to promote the reallocation of labor, innovation and human capital and thus improve structural change and intra-industry productivity, which are the two components of structural transformation. The primary data collected on the alternation of heads of state, the Africa sector database (ASD) and the World Development Indicators (WDI) allow us to illustrate our remarks using the two steps least squares (2SLS) method on a panel of 17 SSA countries. The results obtained show that the number of alternations of heads of state positively and significantly affects intra-industry productivity and structural change in SSA. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101239 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101239 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101239 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2107149_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bongumusa Prince Makhoba Author-X-Name-First: Bongumusa Prince Author-X-Name-Last: Makhoba Author-Name: Irrshad Kaseeram Author-X-Name-First: Irrshad Author-X-Name-Last: Kaseeram Title: Fiscal policy, sovereign debt and economic growth in SADC economies: A panel vector autoregression analysis Abstract: This study estimates a Panel Vector Autoregressive (PVAR) approach to analyse the impact of fiscal policy and public debt on economic growth in Southern African Developing Communities (SADC). The study further estimated the fixed effects (FE) and random effects (RE) to verify the robustness of empirical findings. The results provide rigorous empirical evidence of a positive response of GDP growth due to shocks in government expenditure, employment, and public debt while gross capital formation exerts a negative effect on economic growth. The study proposes that fiscal authorities ought to focus on the adoption of prudent fiscal policies as a credible stabilization tool at the disposal of policymakers to safeguard stable and yet productive public finances consistent with sustainable economic prosperity. These may include addressing infrastructural development, soaring fiscal deficit, creation of jobs, and creating a conducive environment for both labour and capital-intensive projects to flourish in the SADC economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2107149 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2107149 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2041259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Eliyas Assefa Author-X-Name-First: Eliyas Author-X-Name-Last: Assefa Author-Name: Zemen Ayalew Author-X-Name-First: Zemen Author-X-Name-Last: Ayalew Author-Name: Hawlet Mohammed Author-X-Name-First: Hawlet Author-X-Name-Last: Mohammed Title: Impact of small-scale irrigation schemes on farmers livelihood, the case of Mekdela Woreda, North-East Ethiopia Abstract: Small scale irrigation has multi-dimensional effects on the livelihood development of the rural people in Ethiopia. Thus, the main objective of this study was to examine the impact of small-scale irrigation on farmers’ livelihood. A stratified random sampling technique was applied to select 96 users and 162 non-user sample respondents. The collected data were analyzed using descriptive statistics and an econometric model. Binary logit and Endogenous switching regressions model were employed to identify the determinant of small-scale irrigation participation and its impact on farmers’ livelihood respectively. The Binary logit model result indicates that age and age square of the household, own cultivated land, off-farm job participation, extension contact, distance from homestead to a nearly local market, distance from home to the scheme, and having irrigation user neighbor are significant factors affect farmers’ decision to practice irrigation. To capture the impact of irrigation on farmers’ livelihood, the total income of the household was used in the endogenous switching regression model. The model result shows that the positive and significant impact of irrigation schemes had increased users’ total income by 7829 ETB (8.5%), as compared to non-users. This shows how significant the role of a small-scale irrigation scheme in improving the livelihood condition of farmers in the study area. The finding of this study shows that improving access to market and water for irrigation, provision of extension, and other complementary services would increase the participation of irrigation and improve livelihood. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2041259 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041259 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2041259 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111798_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Giang Thi Huong Vuong Author-X-Name-First: Giang Thi Huong Author-X-Name-Last: Vuong Author-Name: Manh Huu Nguyen Author-X-Name-First: Manh Huu Author-X-Name-Last: Nguyen Author-Name: Wing Keung Wong Author-X-Name-First: Wing Author-X-Name-Last: Keung Wong Title: CBOE volatility index (VIX) and corporate market leverage Abstract: Our paper investigates the nexus between the CBOE Volatility Index (VIX) and the market leverage of firms listed on the US stock market. Analyzing the yearly database of non-financial US firms from 2000 to 2019, we find that an increase in the VIX index has a positive impact on the leverage of the corporate market. We also find robust evidence that the US-listed firms tend to use more market leverage in the future year when the VIX index ascends. Furthermore, we find a more prominent positive effect of the change in the VIX index on the long-term market leverage than the short-term market leverage. Different approaches for the panel models firmly support our findings. In addition, our research suggests that the implied volatility index is a good proxy to measure investors’ fear of securities investment and provides a good foundation for making the capital structure decisions for the firms listed on the US stock market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111798 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111798 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2001141_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ahmed Rashed Author-X-Name-First: Ahmed Author-X-Name-Last: Rashed Author-Name: Chen-Chen Yong Author-X-Name-First: Chen-Chen Author-X-Name-Last: Yong Author-Name: Siew-Voon Soon Author-X-Name-First: Siew-Voon Author-X-Name-Last: Soon Title: The nexus among foreign direct investment in renewable electricity industry, renewable electricity production, and economic growth in Africa Abstract: Africa is still struggling to mitigate its electricity insecurity issues. This situation renders foreign direct investment in the renewable electricity industry (FDIREI) and renewable electricity production (REP) to become simultaneously important to Africa. Using a novel dataset of FDIREI, this paper examines the existence and nature of cointegration and causality nexuses among FDIREI, REP, and economic growth (GDP) in 32 African countries over 2003–2019. For methodological robustness purposes; GDP is added. By applying the panel vector autoregression model based-Granger causality test and a static panel data model, which are followed by robustness tests, more informative results are reported. Importantly, we find evidence of the growth hypothesis between REP and GDP, as a unidirectional Granger causality is seen from REP to GDP. Further, the neutrality hypothesis is confirmed among the remaining variables. This left us with the importance of REP in revitalizing African countries’ economic growth. All facets of REP thus should be enhanced. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2001141 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2001141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2001141 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Benedict Arthur Author-X-Name-First: Benedict Author-X-Name-Last: Arthur Author-Name: Bismark Addai Author-X-Name-First: Bismark Author-X-Name-Last: Addai Title: The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana Abstract: This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148361 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148361 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2103923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Adella A. Ng’Atigwa Author-X-Name-First: Adella A. Author-X-Name-Last: Ng’Atigwa Author-Name: Aloyce Hepelwa Author-X-Name-First: Aloyce Author-X-Name-Last: Hepelwa Author-Name: Victor Manyong Author-X-Name-First: Victor Author-X-Name-Last: Manyong Author-Name: Shiferaw Feleke Author-X-Name-First: Shiferaw Author-X-Name-Last: Feleke Title: Analysis of technical efficiency among youth involved in crop production in Njombe Region, Tanzania Abstract: This study aimed to estimate the Technical Efficiency (TE) of youth crop farmers in Njombe Region of Tanzania, and analyze the determinants of technical inefficiency for crops produced. Data were collected from 572 youths in 16 villages of Njombe Region by using a random sampling technique. The Stochastic Production Function (SPF) model analysed technical efficiency among the youth crop farmers. Results show that youth crop farmers in the study region exhibited decreasing returns to scale, as confirmed by the Returns to Scale of 0.275. The mean TE of crops produced was 19.32%, implying that youth farmers still have room to improve their farming efficiency by 80.68% using the same land resources. Most youth farmers had technical efficiency scores from 18.5% to 20.5%. In addition, the estimated SPF model and inefficiency parameters showed that age, land ownership, and extension contact are factors which reduced technical inefficiency in the study region. Thus, more emphasis might focus on enhancing the accessibility of youth farmers to extension services, land ownership, and efficient use of farm inputs might improve the TE of youth crop farmers in Tanzania and the world as a whole. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2103923 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2103923 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2071385_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Workineh Ayenew Mossie Author-X-Name-First: Workineh Ayenew Author-X-Name-Last: Mossie Title: Understanding financial inclusion in Ethiopia Abstract: The main objective of this paper is to examine the drivers, barriers of financial inclusion, and saving and credit behaviour in Ethiopia. We used the World Bank 2017 Findex database to carry out logit estimations. We found that being educated, richer, a man, and older associated with greater level of financial inclusion with a strong influence of income and education. We found that the existing gender gaps in the financial inclusion is mainly due to women exclusion from the non-financial sector. While younger and poor adults do not access formal accounts due to involuntary exclusion (distance to the nearest financial access point, affordability, and lack of documentation), older and richer individuals are constrained by voluntary barriers (lack of money, family member has account). Women are less likely to save for farm or business and old age security purposes, while educated individuals in the wealthiest 20% quintile save for old age security purposes. The rich and the poor seek formal credit primarily for farm/business and asset purchase. Our work confirms that the determinants, barriers, saving, and credit behaviour are different across individual characteristics. We strongly recommend that policies that aim to foster financial inclusion should target the vulnerable (the poor, young, less educated, and women) population groups. Authorities and policymakers should strive to improve women participation in the formal real sector of the economy, financial institutions should adopt technologies such as mobile banking and mobile money to ensure the accessibility of financial services. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2071385 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071385 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071385 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2079176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ahmad Irsan A. Moeis Author-X-Name-First: Ahmad Irsan A. Author-X-Name-Last: Moeis Author-Name: Nachrowi Djalal Nachrowi Author-X-Name-First: Nachrowi Author-X-Name-Last: Djalal Nachrowi Author-Name: Aris Ananta Author-X-Name-First: Aris Author-X-Name-Last: Ananta Author-Name: Vid Adrison Author-X-Name-First: Vid Author-X-Name-Last: Adrison Title: A trade-off between old-age financial adequacy and state budget sustainability: Searching a government optimum solution to the pension system in Indonesia Abstract: A generous PAYG defined benefit pension system can guarantee retirees to have comfortable life, but the state budget may not be sustainable when the population is ageing. On the other hand, a defined contribution pension system guarantees state budget sustainability, but making retirees’ standard of living depends fully on their labour market performance (before retiring). The choice is even more difficult in developing countries with low budgets such as Indonesia. The defined contribution system is even more uncertain in promising old-age financial adequacy as people’s income and investment rates are low. This paper uses a simple OLG model to find an optimal solution from the government perspective—how much state budget should be allocated for the PAYG defined benefit system. It concludes that with a small state budget allocation, as part of a PAYG defined contribution system, to supplement a defined contribution system, the government of Indonesia can guarantee that retirees will not live under poverty while maintaining the state budget sustainability. It recommends that Indonesia combine a defined contribution system, to make a sustainable state budget, and a small budget allocation for a defined benefit system, to ensure that there is no old age poverty. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2079176 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2079176 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yeshi Jima Author-X-Name-First: Yeshi Author-X-Name-Last: Jima Author-Name: Dawit Diriba Author-X-Name-First: Dawit Author-X-Name-Last: Diriba Author-Name: Feyera Senbeta Author-X-Name-First: Feyera Author-X-Name-Last: Senbeta Author-Name: Belay Simane Author-X-Name-First: Belay Author-X-Name-Last: Simane Title: The impacts of hydropower dam construction on the adjacent rural households’ food insecurity in Northwestern Ethiopia Abstract: This study examines the impact of two hydropower dam reservoirs, Amerti and Neshe, on the adjacent rural household food insecurity in the Abay Chome district, northwestern Ethiopia. A cross-sectional method was employed to collect data from 485 households (268 affected and 217 non-affected households) following a probability proportional to the size sampling procedure. Households’ food insecurity access scale (HFIAS) and households’ dietary diversity score (HDDS) were used to examine households’ food insecurity status in the study area. The Endogenous Switching Regression model was employed to identify the impact of the dam construction on household food insecurity. The results revealed that the average HDDS and HFIAS in the study area were 5.1 and 10.29, respectively. The study also demonstrated that the affected household’s average HDDS and HFIAS were 4.48 and 10.98, respectively. The study results further revealed that the construction of dams has significantly increased the HFIAS of displaced households by 14.6% while reducing HDDS by 24%. This study found a negative relationship between dam construction and food security, although dam construction is supposed to increase food security by increasing access to water. Thus, we recommend that hydropower reservoirs be effectively designed to reduce the impacts on adjacent communities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132632 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132632 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2147648_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Leena Ajit Kaushal Author-X-Name-First: Leena Ajit Author-X-Name-Last: Kaushal Title: Institutional and economic determinants of Indian OFDI Abstract: The study explores the primary determinants of Indian OFDI in 26 developed and 81 developing countries by integrating a nuanced perspective of institutional distance with conventional location factors (2008–2018). Our findings indicate that asset augmentation and market-seeking motives are the primary OFDI drivers in developed and developing regions, respectively. Overall, the institutional environment demonstrates a positive association between Indian OFDI and the robust governance quality of the host country (excluding RS investments in developing region). However, only robust regulatory quality (RQ) & control of corruption (CC) are the primary IQ determinants significantly attracting OFDI in developed nations. Surprisingly, none of the WGI significantly drives OFDI in developing countries. However, the interaction effect reveals that only market-seeking investors from India are drawn to highly regulated (RQ), rule-based (RL) developing nations. The estimated FDI factors differ significantly depending on the destination, but RQ largely remains the crucial determinant across regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2147648 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147648 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2147648 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Zhaobin Sun Author-X-Name-First: Zhaobin Author-X-Name-Last: Sun Author-Name: Xiwei Liu Author-X-Name-First: Xiwei Author-X-Name-Last: Liu Author-Name: Ling Li Author-X-Name-First: Ling Author-X-Name-Last: Li Author-Name: Xiaoliang Yang Author-X-Name-First: Xiaoliang Author-X-Name-Last: Yang Title: Military-Civil fusion and optimisation of urban industrial structure—an evidence from China Abstract: China’s military-civil fusion (MCF) policy has attracted global attention. Since 2010, China has constructed over 30 MCF national demonstration bases (MCFNDBs) to optimise local industrial structure and promote local economic development. However, the evaluation of the actual economic effects of these MCFNDBs has not reached a consensus. We use panel data for 285 cities from 2006–2017 to investigate the economic effect of MCFNDBs by difference-in-difference estimation. We find that constructing MCFNDBs are significantly beneficial to upgrading the urban industrial structure in less developed regions and provincial capital cities; however, it plays an insignificant role in the industrial structure rationalisation. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101221 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101221 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101221 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2098606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tewodros Girma Author-X-Name-First: Tewodros Author-X-Name-Last: Girma Author-Name: Solomon Tilahun Author-X-Name-First: Solomon Author-X-Name-Last: Tilahun Title: Predictability of foreign aid and economic growth in Ethiopia Abstract: Foreign aid is one source of physical capital accumulation in Ethiopia. It is also a main media of government revenue in meeting increasing trends of government expenditure. To investigate the impact of foreign aid flow on economic growth, various empirical studies were conducted, but they came up with mixed result. This leads to raise question of why impact of aid on economic growth in Ethiopia continues to be paradoxical in its findings. To assess the effectiveness of foreign aid in Ethiopia; this study sets predictability of foreign aid and economic growth in Ethiopia as a general objective. Specifically, the study sought to examine the contribution of foreign aid and the macroeconomic policy environment to economic growth in the country. In order to meet the aforementioned objective, the study employed an autoregressive distributed lag (ARDL) approach over the period 1985–2019. The empirical finding shows that foreign aid has a positive role in economic growth in the long run but its short run effect is found to be insignificant. Again, this finding also reveals that both in the short run and long run the predictability of foreign aid has a positive effect both on economic growth. Macroeconomic policy index also has a positive effect in the long run, but its short run effect become negative. Based on the listed empirical finding, the study came up with policy recommendation; the government should allocate the external assistance on the successful development projects rather than simply on consumption. Furthermore, for the persistent and predictable flow of foreign aid overtime, joint mechanism of transparency has to be developed between Ethiopian government and donor communities. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2098606 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2098606 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2143772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abdul Sattar Author-X-Name-First: Abdul Author-X-Name-Last: Sattar Author-Name: Abida Hassan Author-X-Name-First: Abida Author-X-Name-Last: Hassan Author-Name: Muhammad Noshab Hussain Author-X-Name-First: Muhammad Noshab Author-X-Name-Last: Hussain Author-Name: Uzma Sakhi Author-X-Name-First: Uzma Author-X-Name-Last: Sakhi Author-Name: Ali Raza Elahi Author-X-Name-First: Ali Raza Author-X-Name-Last: Elahi Title: Impact of foreign direct investment on socio-economic development in belt and road countries Abstract: This study is an attempt to empirically investigate the impact of foreign direct investment (FDI) on socio-economic development in the “Belt & Road” initiative (BRI) countries. It employed panel data for the period 2005 to 2018. This study used three socio-economic development indicators, life expectancy, GNI per capita, and human capital development, as outcome variables. This study found a long-run association between FDI and socio-economic development. The baseline regression results indicate that FDI does not contribute to socio-economic development in BRI countries and these findings are robust with Fully Modified Ordinary Least Square (FMOLS). However, when taking into account the region-wise analysis it is found that FDI has a positive and significant impact on poverty reduction in South Asia (SA) and Central and Western Asia (CWA) region and a negative impact in Central and East Europe (CEU) and Middle East North Africa (MENA) and it has no effect on poverty reduction in Sub-Sahara Africa (SSA) and East Asia Pacific (EAP) region. FDI has a positive effect on improved health facilities in SA and CWA region and it has a statistically insignificant or negative impact in the rest of the region. Finally, there is a positive and significant impact of FDI on human capital development in CEU and EAP region and negative association in MENA, however, it has no role in SA, CWA and SSA region. This finding postulates an idea that foreign direct investment is not a black and white mechanism. It is recommended that governments of BRI countries must prioritize public health facilities, social safety programs, poverty reduction initiatives, and human capital development strategies when looking for foreign direct investment in the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2143772 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2143772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2143772 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2062912_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Chuma Mbaleki Author-X-Name-First: Chuma Author-X-Name-Last: Mbaleki Author-Name: Christian Nsiah Author-X-Name-First: Christian Author-X-Name-Last: Nsiah Title: Fiscal expenditures, revenues and labour productivity in South Africa Abstract: The COVID-19 pandemic emerged at a time when the South African economy was already battling to recover from the aftermath of the global financial crisis of 2007–09 which led the country to experience a decade-old slowdown in labour productivity. Our study investigates the role which government plays in influencing labour productivity by estimating a log-linearized growth model augmented with a fiscal sector using the autoregressive distributive lag model applied to annual data of 1990–2020. We further disaggregate the composition of government size into seven expenditure items and six revenue items, and find i) education, health, recreation and public safety to be expenditure items most beneficial to short-run and long-run labour productivity ii) income taxes and VAT to be revenue items most beneficial to long-run productivity and yet most taxes have adverse short-run effects. The policy implications of the study are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2062912 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2062912 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2123888_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Belesity Bekalu Ayenew Author-X-Name-First: Belesity Bekalu Author-X-Name-Last: Ayenew Title: The impact of foreign financial inflows on the economic growth of sub-Saharan African countries: An empirical approach Abstract: The impact of foreign financial inflows on the economic growth of recipient countries is a controversial issue in many empirical studies. The majority of the previous studies use one variable as an indicator of foreign financial inflows; they fail to incorporate many variables. The study fills this gap by using remittance inflows, foreign direct investment, official development assistance, and external debt as an indicator of foreign financial inflows. This study investigates the impact of foreign financial inflows on the economic growth of 31 sub-Saharan African countries over the period 2009 to 2019. The study employed a two-step system GMM due to its practical advantage on the dynamic panel data set. The finding shows that only foreign direct investment has a significant and positive contribution to economic growth. Official development assistance and external debt affect economic growth negatively, and they are statistically significant. Remittance inflow affects economic growth negatively, but it is statistically insignificant. The study suggests that policymakers should work on the way that remittance inflow promotes investment and reduce dependency on official development assistance. In addition, external borrowing should be used for productive purposes. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2123888 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2123888 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jagjeevan Kanoujiya Author-X-Name-First: Jagjeevan Author-X-Name-Last: Kanoujiya Author-Name: Shailesh Rastogi Author-X-Name-First: Shailesh Author-X-Name-Last: Rastogi Author-Name: Venkata Mrudula Bhimavarapu Author-X-Name-First: Venkata Mrudula Author-X-Name-Last: Bhimavarapu Title: Competition and distress in banks in India: An application of panel data Abstract: Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society’s areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank’s FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman’s Z-score are used for the assessment of FD. Lerner’s index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman’s z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122177 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hung Quang Bui Author-X-Name-First: Hung Quang Author-X-Name-Last: Bui Author-Name: Thao Tran Author-X-Name-First: Thao Author-X-Name-Last: Tran Author-Name: Toan Tan Pham Author-X-Name-First: Toan Tan Author-X-Name-Last: Pham Author-Name: Hung Le-Phuc Nguyen Author-X-Name-First: Hung Le-Phuc Author-X-Name-Last: Nguyen Author-Name: Duc Hong Vo Author-X-Name-First: Duc Hong Author-X-Name-Last: Vo Title: Market volatility and spillover across 24 sectors in Vietnam Abstract: While market volatility and volatility connectedness across different financial markets have been examined, the spillover effects across sectors have been under-examined. As such, this study aims to examine market volatility and the volatility patterns for 24 Vietnamese sectors. Our study uses the ARMA-GARCH estimation technique over the 2012–2021 period. The spillover effects between these sectors are then investigated using the vector autoregression (VAR) technique. Three key findings are as follows. First, the market volatility of Development Investment, Education, and Securities is most affected by the market volatility from the previous periods, whereas Construction is least affected. Second, the Vietnamese stock market exhibits a substantial inter-sector connectedness above 60 per cent from 2012 to 2021. However, the sectoral spillover effects increase to around 90 per cent during the Covid-19 pandemic. We found that Aquaculture, Building Materials, Food, and Plastic are the four primary risk transmitters at the sectoral level. Third, market volatility for Energy, Plastic, and Steel is unaffected by the pandemic. Meanwhile, Securities, Fertilizer, and Transportation exhibited a significant increase in market volatility during Covid-19. Based on these empirical results, policy implications have emerged for the Vietnamese government to support affected industries to recover and develop. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122188 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122188 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122188 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2031433_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yonas Nigussie Isayas Author-X-Name-First: Yonas Nigussie Author-X-Name-Last: Isayas Title: Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia Abstract: In today’s economy, banks play significant and irreplaceable roles in the growth of financial services, which ultimately leads to the overall success of the economy of a country. The very objective of this study was to investigate the key firm-specific and macroeconomic determinants of profitability of commercial banks in Ethiopia. The empirical analysis is carried out using the generalized method of moments (GMM) estimation of dynamic panel data from 14 banks covering 12 years of operation from 2008 to 2019. A quantitative approach and explanatory design were employed to realize the stated objectives. To achieve the study objective, secondary data were collected from annual audited financial statements of sampled banks for the stated period. The model results of the study revealed that firm size, liquidity ratio, asset tangibility, capital adequacy, leverage and real GDP growth rate have a positive and statistically significant effect on the profitability of banks, while firm age and the inflation rate have a negative but statistically insignificant effect on the profitability of banks in Ethiopia. Future studies are suggested to be conducted in this research area by incorporating variables that are other than variables used in this study and unlike this study, all other financial institutions need to be included. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2031433 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031433 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2031433 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2069638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Onong Junus Author-X-Name-First: Onong Author-X-Name-Last: Junus Author-Name: Mohammad Nasih Author-X-Name-First: Mohammad Author-X-Name-Last: Nasih Author-Name: Muslich Anshori Author-X-Name-First: Muslich Author-X-Name-Last: Anshori Author-Name: Iman Harymawan Author-X-Name-First: Iman Author-X-Name-Last: Harymawan Title: Politically connected independent board and firm performance Abstract: This research examines the relationship between politically connected independent commissioners and independent directors on firm performance. The sample are all listed companies on the Indonesia Stock Exchange (IDX) from 2010–2017. In this study, we employ the ordinary least squares (OLS) regression model and Heckman’s 2SLS test to handle the problem of endogeneity. We document that politically connected independent commissioners did not affect the firm performance. On the contrary, politically connected independent commissioners had a negative relationship to firm performance; this was due to the appointment of independent commissioners and independent directors not based on expertise and knowledge in the financial and managerial company field, based solely on previous work experience. Moreover, our result is robust to the Heckman 2SLS test. Therefore, the result is expected to give insight for public firms and policy regulators, to avoid misunderstandings in decision-making at company owners and management levels. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2069638 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2069638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Phuong Anh Nguyen Author-X-Name-First: Phuong Anh Author-X-Name-Last: Nguyen Author-Name: Thi Thanh Thuy Nguyen Author-X-Name-First: Thi Thanh Thuy Author-X-Name-Last: Nguyen Title: The effect of mergers and acquisitions on the efficiency of Vietnam banking system during the restructuring period Abstract: Since 2011, the Vietnamese banking system has performed many M&A deals. Some small banks which had weak competitiveness and experienced operating activities risk were on the verge of bankruptcy, and had been acquired by potential financial institutions. Although M&A transactions are known for numerous advantages which are brought back for banking industry, most banks still have not actively participated. Therefore, gaining more information about how M&A activities changed our banking system is essential for providing suitable implications and developments for the future. This report first aims to investigate the efficiency level of 30 Vietnamese commercial banks during 2011–2019 period under intermediation and operating approach using Bootstrap Data Envelopment Analysis. Next, applying Robust Truncated Regression, this paper shows that M&As negatively affect banking efficiency. Meanwhile, a set of explanatory variables following CAMELS standards can contribute to increase the efficiency level. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127221 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127221 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127221 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Addisu Bezabeh Author-X-Name-First: Addisu Author-X-Name-Last: Bezabeh Author-Name: Fekadu Beyene Author-X-Name-First: Fekadu Author-X-Name-Last: Beyene Author-Name: Jema Haji Author-X-Name-First: Jema Author-X-Name-Last: Haji Author-Name: Tesfaye Lemma Author-X-Name-First: Tesfaye Author-X-Name-Last: Lemma Title: Evaluating the commercialization of smallholder malt barley farmers via vertical coordination in Arsi highlands, Oromia region, Ethiopia Abstract: Smallholder farmers search for their product buyers in local spot market transactions. In spot market transactions, farmers will not be assured of ready markets for their production, or face volatile market prices. Similarly malt barley farmers used to face challenges of accessing input, farm technology, credit, and information that undermine their livelihoods. Vertically coordinated malt barley supply chain is evolving fast in Ethiopia. The purpose of this study was to analyze nexus between vertical coordination and level of malt barley commercialization in the study area. This study has been conducted in four districts of Arsi highlands known for their malt barley production potentials and presence of active supply chain coordination. A three-stage sampling procedure was employed to collect data using interview schedule from 384 (190 contract and 194 non-contract) randomly selected malt barley farmers. Descriptive statistics and Tobit regression model used to analyze farmer and farm-related factors vis-à-vis vertical coordination and level and determinants of commercialization farm households. Accordingly, the study identified that 11.05% of the respondents had <30% level of commercialization, when 55% were in between 30% and 65% and the rest, 34.21% of sampled malt barley farm households had more than 65% level of malt barley commercialization. Tobit regression revealed that farm size, yield, price, quantity of fertilizer applied, contract agreements, mobile phone ownership and access to credit were determinants of level of malt barley commercialization. Thus, endeavors of malt barley commercialization have to focus on improving access to technology, credit, extension, and organizing farmers in contract farming among others. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125660 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125660 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125660 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2125656_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Author-Name: Mawuli K. Couchoro Author-X-Name-First: Mawuli K. Author-X-Name-Last: Couchoro Author-Name: Kokou Wotodjo Tozo Author-X-Name-First: Kokou Wotodjo Author-X-Name-Last: Tozo Title: Macroeconomic channels of transmission of post-pandemic recovery strategies for African economies Abstract: The Sar-Cov-2 pandemic that began in 2019 has significantly affected the global economy and, in particular, those of African countries. This paper analyzes possible intervention channels by African states to put their economies back on a sustainable growth path once the health crisis is under control. The paper proposes workable macroeconomic channels for these countries’ recovery from post-pandemic periods by using historical data to conduct empirical analyses. The paper employs World Bank data and ILOSTAT for 54 African countries within the period 1990–2018. We use a post-Keynesian framework and the difference and system generalized method-of-moments to show that wages drive African economic dynamics in the short run. This is particularly true for Sub-Saharan African countries. In addition, foreign output, proxied by European Union output, has a positive and significant impact on Sub-Saharan African economies in the short and long run. The results highlight strategic policy measures for recovering African economies, including improving wages and deepening international economic relations, particularly with the Eurozone countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2125656 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2125656 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2140905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Isaiah Sikayena Author-X-Name-First: Isaiah Author-X-Name-Last: Sikayena Author-Name: Isaac Bentum-Ennin Author-X-Name-First: Isaac Author-X-Name-Last: Bentum-Ennin Author-Name: Francis K. Andoh Author-X-Name-First: Francis K. Author-X-Name-Last: Andoh Author-Name: Richard Asravor Author-X-Name-First: Richard Author-X-Name-Last: Asravor Title: Efficiency of public spending on human capital in Africa Abstract: Government spending on human capital continues to increase over the years. However, knowledge of the efficiency of such spending is limited. Using data from World Bank’s World Development Indicator and World Governance Indicator from 2006 to 2017 and Data Envelopment Analysis and DEA Bootstrapping models, the study examined the relative technical efficiencies of public spending on human capital and their correlates in Africa. The study found public spending on health and education in Africa to be inefficient. Efficiency was much higher in health spending than in educational spending. Factors such as institutional quality, economic growth, government expenditure, foreign direct investment, and trade openness were found to influence the efficiency of public spending on human capital. Government should put in place measures to stimulate trade, ensure institutional quality and growth of urbanization to help improve efficiency in public spending. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2140905 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2140905 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101223_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mesele Belay Zegeye Author-X-Name-First: Mesele Belay Author-X-Name-Last: Zegeye Author-Name: Abebaw Hailu Fikrie Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikrie Author-Name: Anteneh Bizualem Asefa Author-X-Name-First: Anteneh Bizualem Author-X-Name-Last: Asefa Title: Impact of agricultural technology adoption on wheat productivity: Evidence from North Shewa Zone, Amhara Region, Ethiopia Abstract: Wheat is one of the most important cereal crops cultivated in wide range of agro-ecologies in Ethiopia. But, its productivity has remained low. Hence, this study intends to examine the impact of agricultural technology adoption on wheat productivity in north Shewa zone of the Amhara region, Ethiopia. The analysis is based on household level data covering 693 households collected in 2020. Multinomial logit model (MNL) and multinomial endogenous switching regression (MESR) models are used for analysis. The results reveal that agricultural technology adoptions are affected by the education level of the household head, off-farm employment, tropical livestock, access to credit, household saving, extension visit, and distance from the market. In addition, the study shows that the adoption of fertilizer and/or improved seed increases wheat productivity significantly. Furthermore, the adoption of a combined fertilizer and improved seed provides higher productivity than the adoption of single technologies. Therefore, this study recommends that government and other stakeholders should have to work in collaboration with rural farmers to increase rural technology generation; dissemination and adoption interventions to improve wheat productivity in the study area. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101223 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101223 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Angela Akpemada Kwashie Author-X-Name-First: Angela Akpemada Author-X-Name-Last: Kwashie Author-Name: Samuel Tawiah Baidoo Author-X-Name-First: Samuel Tawiah Author-X-Name-Last: Baidoo Author-Name: Enock Kojo Ayesu Author-X-Name-First: Enock Kojo Author-X-Name-Last: Ayesu Title: Investigating the impact of credit risk on financial performance of commercial banks in Ghana Abstract: The financial performance of banks across the globe is of utmost importance to its shareholders, managers, investors, regulators, and the general public. This study therefore investigates the impact of credit risk with focus on non-performing loans on the financial performance of commercial banks in Ghana. Return on asset and economic value-added are used as measures of financial performance. Internal bank factors such as the age and size of the bank are also considered. Macroeconomic factors such as gross domestic product, inflation, and monetary policy rate are included in the analysis. Panel data spanning the period 2013 to 2018 on 15 commercial banks in Ghana is used for the analysis. The results from the random effect estimation technique show that non-performing loans have a negative impact on both measures of financial performance. Also, monetary policy rate has a negative impact on both measures of financial performance, albeit insignificant for economic value-added measure. It is further revealed that the size of bank, age of bank, and gross domestic product have a significant positive effect on both measures of financial performance although significant for return on asset. Based on the negative relationship between non-performing loans and financial performance, it is suggested that commercial banks should adopt stringent credit risk management policies, which should also be updated regularly to guide actions and processes to granting of loans and monitoring credit risk. Furthermore, it is suggested that the value of depreciable assets pledged as collaterals to the banks should be reviewed frequently (probably annually) to reflect a decline in their value. The novelty of the present study pertains to the use of economic value-added as a financial performance measure, which previous studies have virtually ignored in the analysis of credit risk and financial performance nexus. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109281 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109281 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2019361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bohumil Stádník Author-X-Name-First: Bohumil Author-X-Name-Last: Stádník Title: Convexity arbitrage – the idea which does not work Abstract: Algorithmic trading, so popular nowadays, uses many strategies that are algorithmizable and promise profitability. This research answers the question whether it is possible to successfully use a convexity arbitrage strategy in a bond portfolio in financial practice. It should provide a positive expected excess return and a small or zero potential loss. Convexity arbitrage has been described in academic literature before, but an assessment of its practical success is lacking. Arbitrage portfolio, which consists of two portfolios of bonds, is constructed theoretically and practically. These two portfolios have the same Macaulay Duration and price, but a different convexity at a certain yield to maturity point (YTM point). As the first portfolio is long, while shorting the second (with higher convexity), the result would therefore be a market-directional bet on parallel YTM shifts of the same size. Methodology: a mathematical definition of this arbitrage; the construction of the arbitrage portfolio; back-testing on USD and EUR zero-coupon yield curve. To construct the arbitrage portfolio could be unrealistic on markets with low liquidity. Moreover, the assumption of parallel YTM shifts of the same size is not fulfilled enough to ensure that the arbitrage is profitable. This research helps practitioners considering the implementation of this strategy in algorithmic trading to make an adequate assessment. Its findings show that the practical and profitable utilization of convexity arbitrage is unrealizable. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2019361 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2019361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2019361 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2008090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Leena Ajit Kaushal Author-X-Name-First: Leena Ajit Author-X-Name-Last: Kaushal Title: Impact of regional trade agreements on export efficiency – A case study of India Abstract: The study analyses the role of RTAs in determining the export efficiency of India using a stochastic frontier version of the gravity model. We estimate the impact of select RTAs (bilateral, SAFTA, APTA, ASEAN, and MERCOSUR trade bloc) and the partner nation’s regulatory quality on India’s export efficiency throughout 2008–2018. The findings suggest that India has been substantially able to exploit exports efficiency to its trading partners under FTAs (ASEAN&SAFTA) and bilateral agreements compared to PTAs (MERCOSER&APTA); however, India’s exports are yet quite far from the potential frontier. Excluding APTA, all other agreements are statistically significant, implying that joining trade agreements augments India’s export efficiency. The study finds that the regulatory quality of importing nations bears a significant positive impact on India’s export efficiency. This highlights the importance of good institutions and better regulatory quality in realizing the potential level of exports with partner nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2008090 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2008090 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Basri Savitha Author-X-Name-First: Basri Author-X-Name-Last: Savitha Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Title: What motivates individuals to use FinTech budgeting applications? Evidence from India during the covid-19 pandemic Abstract: The purpose of the present study was to explicate the factors determining customers’ intention to use budgeting apps since the outbreak of COVID-19 pandemic. A cross-sectional survey in South India was conducted to collect data from 285 FinTech users. The data were analyzed using partial least square regression to estimate path coefficients and the PROCESS macro technique to identify moderation effects. Firstly, app engagement and self-efficacy were found to have a positive effect on the intention to use budgeting apps. Secondly, individuals who use FinTech services less frequently and those who use it to pay for a variety of expenses were found to have a greater effect on usage intentions of customer engagement, perceived trust, and perceived ease of use. Therefore, customization, real-time suggestions, providing tools for data visualization, smart data insights, and artificial intelligence-based recommendations and advice would assist customers in prudence money management. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127482 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127482 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Osama A. Mah’d Author-X-Name-First: Osama A. Author-X-Name-Last: Mah’d Author-Name: Ghassan H. Mardini Author-X-Name-First: Ghassan H. Author-X-Name-Last: Mardini Title: Matters may matter: The disclosure of key audit matters in the Middle East Abstract: The main objective of this research is to investigate the extent of the disclosure of key audit matters (KAMs) and the factors that affect the level of KAMs’ disclosure in the audit reports of the Middle East (ME) region. A disclosure index approach is employed to consider eight KAMs generated from the International Standard on Auditing (ISA) 701 and a fixed effect regression run on a sample of 281 firms from four countries (Oman, the UAE, Bahrain, and Jordan) for four years (2017–2020), comprising 1124 observations. The findings show that the overall KAMs’ disclosure is approximately 56% across all countries. The study takes into consideration the positive and significant correlation between the leverage, audit committee characteristics, financial industry, audit firm, client size, profitability, liquidity, and KAMs’ disclosure in most sampled countries. This research contributes to our understanding of the level of KAMs’ disclosure and the factors specific to the ME region, which enhances policymakers’ and decision-makers’ knowledge of KAMs’ disclosure in audit reports. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111787 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111787 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111787 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2013587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Atrsaw Anteneh Mihretie Author-X-Name-First: Atrsaw Anteneh Author-X-Name-Last: Mihretie Author-Name: Azanaw Abebe Author-X-Name-First: Azanaw Author-X-Name-Last: Abebe Author-Name: Girmachew Siraw Misganaw Author-X-Name-First: Girmachew Siraw Author-X-Name-Last: Misganaw Author-Name: Raoul Fani Djomo Choumbou Author-X-Name-First: Raoul Fani Author-X-Name-Last: Djomo Choumbou Title: Adoption of Tef (Eragrostis Tef) Production Technology Packages in Northwest Ethiopia Abstract: Adoption of Tef production technology has paramount importance to increase Tef productivity, foster food security, and secure the well-being of smallholder farmers. Hence, this study aims to identify the determinants of adoption of Tef technology packages in Yilmana Densa district, and subsequently assess the factors influencing the intensity of adoption of the technology. In this study, 224 sample households were selected using systematic random sampling techniques. The data were obtained mainly from sampled Tef grower households via structured interviews, and it was supported by key informant interviews. Descriptive statistics such as Chi-square, t-test, and one-way ANOVA were employed. First-hurdle of double hurdle model result revealed that adoption decision of Tef technology packages was determined via the frequency of extension contact, agricultural training, farmers’ perception, and farmers’ cooperative membership, positively. The second-hurdle result also shown that the adoption intensity of Tef technology packages was influenced by the frequency of extension contact, agricultural training, demonstration participation, and seed multiplication membership, positively, whereas the distance to input market and land fragmentation influenced negatively. Therefore, efforts to be expected from the Ministry of Agriculture, extension agents, and other stockholders to enhance the adoption level of farmers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2013587 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2013587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2013587 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087647_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Maria Widyastuti Author-X-Name-First: Maria Author-X-Name-Last: Widyastuti Author-Name: Y. Budi Hermanto Author-X-Name-First: Y. Budi Author-X-Name-Last: Hermanto Title: The effect of financial literacy and social media on micro capital through financial technology in the creative industry sector in East Java Abstract: This study aimed to examine the effect of financial Literacy and social Media on micro capital through financial technology. This type of research is explanatory/associative, accompanied by hypothesis testing. The unit of analysis of this research is the Creative Industry Sector in East Java, with a population of 376 creative industries. The number of samples is 65 SMEs using the stratified random sampling method. The results of this study prove that financial literacy has a positive and significant effect on financial technology, social media has a significant effect on financial technology, financial literacy has a positive and significant effect on micro capital, social media has a significant effect on micro capital, and financial technology has a significant effect on micro capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087647 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087647 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2023955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Agnes Akpene Akakpo Author-X-Name-First: Agnes Author-X-Name-Last: Akpene Akakpo Author-Name: Mohammed Amidu Author-X-Name-First: Mohammed Author-X-Name-Last: Amidu Author-Name: William Coffie Author-X-Name-First: William Author-X-Name-Last: Coffie Author-Name: Joshua Yindenaba Abor Author-X-Name-First: Joshua Yindenaba Author-X-Name-Last: Abor Title: Financial literacy, financial inclusion and participation of individual on the Ghana stock market Abstract: This paper examines the impact of financial literacy and financial inclusion on stock market participation in Ghana. It employs a sample of 1,966 respondents across the 10 regions of Ghana for the year 2018. We employ biprobit models to estimate the influence of financial literacy on financial inclusion, while robust probit models are used to independently analyse the effect of financial literacy and financial inclusion on stock market participation as well as their joint effect. We find the following results: first, financial literacy positively influences financial inclusion. Second, the study does not support previous findings that financial literacy is not a determinant of stock market participation in Ghana. Third, financial inclusion through using an account to save significantly affects stock market participation. Finally, the interaction of financial literacy and financial inclusion on stock market participation provides evidence of no significant effect. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2023955 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2023955 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127238_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ayman Hassan Bazhair Author-X-Name-First: Ayman Author-X-Name-Last: Hassan Bazhair Title: Audit committee attributes and financial performance of Saudi non-financial listed firms Abstract: This article investigates the impact of the audit committee attributes in determining the financial performance of Saudi non-financial firms. The research sampled the data of 100 companies spanning from 2010 to 2019 obtained from the firms’ financial statements. The data generated were analysed using different panel data techniques (pooled OLS, fixed and random effects). This study emphasises that audit committee size and meetings negatively influence firms’ performance. However, audit committee independence and financial expertise indicate a strong and positive relationship with financial performance. Therefore, this study provides valuable insights into how audit committee attributes affect profitability. Furthermore, this research may guide companies’ top management on restructuring the audit committee to improve corporate governance practices. Also, the results suggest that Saudi regulatory agencies should ensure that listed firms set up audit committees with more independent directors and financial experts. This requirement may help the firms mitigate information disparity between management and shareholders, thus, reducing agency conflicts and boosting firm performance. Consequently, this paper sheds light on the Saudi corporate environment, so investors may find this research helpful in making their investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127238 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127238 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127238 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122187_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Prateek Jain Author-X-Name-First: Prateek Author-X-Name-Last: Jain Title: Regulatory actions against corporate irregularities in India: analyzing the stock market impact Abstract: In this article, I use a unique dataset consisting of listed Indian firms that have been indicted for economic malpractice/default or have been non-compliant with laws/ regulations/ guidelines to estimate the stock price impact of regulatory actions against corporate irregularities. The sample consists of regulatory charges imposed by two major Indian regulators, (i) the Ministry of Corporate Affairs (MCA) and (ii) the Securities and Exchange Board of India (SEBI). I find that regulatory actions are an effective deterrence against corporate misconduct and have a significantly negative impact on a firm’s stock price. The level of negative effect on the stock price of a firm is directly related to the severity of regulatory charges against it, i.e., cases of fraud or cheating, or payment default attract a much more negative reaction as compared to cases such as failure to disclose information, other non-compliance, etc. Finally, the results indicate that younger and less profitable firms have a higher (more negative) stock price reaction to regulatory action announcements. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122187 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122187 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122187 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2114178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Guizhou Wang Author-X-Name-First: Guizhou Author-X-Name-Last: Wang Author-Name: Kjell Hausken Author-X-Name-First: Kjell Author-X-Name-Last: Hausken Title: A game between central banks and households involving central bank digital currencies, other digital currencies and negative interest rates Abstract: Central Bank Digital Currencies (CBDCs) enable negative interest rates. A game is analyzed between a central bank (accounting for the government’s interest) and a representative household choosing to consume, hold CBDC, or hold non-CBDC. The central bank chooses negative interest rate when it realizes that the household is willing to pay the central bank for holding CBDC. The household pays the negative interest rate because of its Cobb Douglas preferences whereby it values holding CBDC while simultaneously holding the competitive non-CBDC with a given interest rate, consuming with various output elasticities, and accounting for transaction efficiencies and costs. More explicitly, intuition and how the players benefit are provided for the following results: The central bank chooses more negative interest rate when the household’s output elasticity for consumption increases, the household’s output elasticity for holding CBDC decreases, the CBDC and non-CBDC transaction efficiencies increase, the household’s transaction efficiency for consumption decreases, the household’s scaling of the transaction cost increases, the scaling parameter for the central bank’s profit per household decreases, the household’s monetary energy decreases, and the non-CBDC interest rate decreases. The results are determined analytically and illustrated numerically where each of nine parameter values is varied relative to a benchmark. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2114178 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114178 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2140907_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abdallah A.S. Fayad Author-X-Name-First: Abdallah A.S. Author-X-Name-Last: Fayad Author-Name: Arifatul Husna Binti Mohd Ariff Author-X-Name-First: Arifatul Husna Author-X-Name-Last: Binti Mohd Ariff Author-Name: Sue Chern Ooi Author-X-Name-First: Sue Chern Author-X-Name-Last: Ooi Title: Dose board characteristics influence integrated reporting quality? Empirical evidence from an emerging market Abstract: Although scholars and practitioners are recently showing a growing interest in integrated reporting, investigating the variables affecting the integrated reporting quality in Malaysia has not been examined and is still unexplored. This paper aims to fill this gap, by exploring the influence of board of directors’ characteristics on integrated reporting quality in Malaysia. The board’s characteristics considered are size, independence, expertise, gender diversity, and activity, as hypothesized by the agency theory. A total of 64 companies were analyzed from 2017 to 2020, for a total number of 173 integrated reports. The findings highlight that IRQ is positively related to the board size, gender diversity and activity of the board. This study’s finding adds to the current literature in numerous ways, and it contributes to the intensive scientific debate on integrated reporting. Furthermore, it is the first study that investigates such a relationship in Malaysia. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2140907 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2140907 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2139887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thanh Phuc Nguyen Author-X-Name-First: Thanh Phuc Author-X-Name-Last: Nguyen Author-Name: Thi Thu Hong Dinh Author-X-Name-First: Thi Thu Hong Author-X-Name-Last: Dinh Author-Name: Ngoc Tho Tran Author-X-Name-First: Ngoc Tho Author-X-Name-Last: Tran Author-Name: Trang Duong Thi Thuy Author-X-Name-First: Trang Author-X-Name-Last: Duong Thi Thuy Title: U-shaped impacts of institutional quality and ICT penetration on economic growth: Evidence from selected emerging countries Abstract: This research aims to consider determinants of economic growth, such as financial development, institutional quality, and information and communication technology (ICT) penetration, which have been explored separately in previous studies and have produced mixed findings in different regions. Using the two-step system generalized method of moments (GMM) estimator for a dynamic panel dataset of 35 selected emerging countries, several research findings could be drawn as the following. First, both ICT penetration and institutional quality have significantly positive effects on economic growth. On the contrary, economic development could be hampered by financial development. Second, there are the U-shape and inverted U-shape relations for the cases of institutional quality and ICT penetration on economic growth, respectively. Third, the interaction effect of ICT penetration and financial development could enhance economic growth while the negative impact of financial development on economic development is amplified by the high level of institutional quality. These findings are robust to the global financial crisis control and the use of an alternative ICT proxy when setting up the approach of principal component analysis. Given these findings from emerging countries, some policy challenges that policy-makers should address by simultaneously considering each growth driver, such as financial development, ICT evolution, and institutional quality and interactions between them, as well as the non-monotonic effect of ICT penetration and institutional quality to facilitate economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2139887 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2139887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2049477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sokratis Mitsas Author-X-Name-First: Sokratis Author-X-Name-Last: Mitsas Author-Name: Petros Golitsis Author-X-Name-First: Petros Author-X-Name-Last: Golitsis Author-Name: Khurshid Khudoykulov Author-X-Name-First: Khurshid Author-X-Name-Last: Khudoykulov Title: Investigating the impact of geopolitical risks on the commodity futures Abstract: This paper examines the effect of real-time global geopolitical risks (GPRs), acts (GPAs), and threats (GPTs) indices on monthly returns and volatility of several American commodity futures. By modeling volatility via an Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH), we provide evidence that GPRs and GPTs do not only impact but trigger adverse effects on the returns of crude oil, gold, platinum, and silver, while GPAs negatively affect the returns of crude oil, heating oil, platinum, and sugar futures. Furthermore, GPTs have a weak positive effect on corn futures volatility. Overall, our findings provide portfolio diversification benefits by showing how the impact of global GPRs, GPAs and GPTs on portfolio returns could be mitigated. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2049477 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2049477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2049477 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2017599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Simion Matsvai Author-X-Name-First: Simion Author-X-Name-Last: Matsvai Author-Name: Abbissynia Mushunje Author-X-Name-First: Abbissynia Author-X-Name-Last: Mushunje Author-Name: Simbarashe Tatsvarei Author-X-Name-First: Simbarashe Author-X-Name-Last: Tatsvarei Title: Technical efficiency impact of microfinance on small scale resettled sugar cane farmers in Zimbabwe Abstract: The main objective of the study was to investigate the impact of microfinance on smallholder resettled sugarcane farmers’ productivity and technical efficiency. The study evaluated the impact of microfinance on technical efficiency of resettled sugarcane smallholders as well as the determinants of their technical efficiency. The study used Transcendental Logarithmic (Translog) Stochastic Frontier Analysis. Data from a household level survey of 2018 was collected using questionnaires in a multi-stage sampling technique. The hypothesis tests confirmed the adequacy of Translog SFA frontier over Cobb–Douglas together with the appropriateness of SFA over OLS. The results revealed that both microfinance and intensity of participation significantly improve technical efficiency. Extension services, secondary education, tertiary education, experience, and farming assets were among statistically significant determinants of observed variation in technical efficiency. Estimated technical efficiency scores from the truncated normal distribution model with heteroscedasticity and exogenous determinants were on average 64.4% and 33.6% for treatment and control groups, respectively. Bank participants were more efficient (65.4%) than MFIs participants (63.3%). The results confirmed that microfinance promote efficient utilization of agricultural inputs. Policy suggestions include expansion and sufficient disbursement of microfinance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2017599 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2017599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2017599 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2008588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Idris Idris Author-X-Name-First: Idris Author-X-Name-Last: Idris Author-Name: Mohammad Enamul Hoque Author-X-Name-First: Mohammad Enamul Author-X-Name-Last: Hoque Author-Name: Perengki Susanto Author-X-Name-First: Perengki Author-X-Name-Last: Susanto Title: Willingness to pay for the preservation of urban green space in Indonesia Abstract: Padang has just begun to build an urban green space to increase the quality of the urban environment and provide recreational opportunities to residents. In such cases, a well-informed professional management plan needs to be formulated to preserve a better environment. Therefore, this study seeks to determine the visitors’ willingness to pay for the preservation of urban green space. This study was carried out at the Urban green space of Imam Bonjol Park Padang using a survey approach, and the respondents were chosen using the purposive technique. The logistic regression shows that the willingness to pay for the urban green space is affected by the visitors’ perception of Imam Bonjol Park, the knowledge of functions, and marital status. The empirical results show that income, family dependents, and park-related factors are insignificant in influencing willingness to pay for the urban green space. Using the Contingency Valuation Method, this study discovered that most visitors are willing to pay some amount for environmental preservation, and the estimated amount is IDR. 4,877. The empirical results have a few practical implications. As a result, this study suggests launching awareness-raising programs. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2008588 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008588 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2008588 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2066763_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ly Thi Hai Tran Author-X-Name-First: Ly Thi Hai Author-X-Name-Last: Tran Author-Name: Thao Thi Phuong Hoang Author-X-Name-First: Thao Thi Phuong Author-X-Name-Last: Hoang Title: Signaling or insider opportunism: an investigation of repurchase activity in Vietnam Abstract: This paper examines whether share repurchase announcements are signals of undervaluation or insiders’ opportunistic activities by investigating insider trading patterns surrounding buyback announcements in Vietnam. Consistent with the insider opportunism hypothesis, we show that insiders are net buyers before the announcements but they sell intensively after the event. We also find that repurchase announcements with subsequent net insider selling are not followed by an improvement in firms’ operating performance but associated with underperformance in long-term stock returns. Overall, our findings suggest that a proportion of repurchase announcements in Vietnam are subject to insider opportunism; therefore, short-swing rules should be regulated to limit insider opportunistically trading around repurchase announcements. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2066763 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066763 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2066763 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2071384_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abigail G. Adeyonu Author-X-Name-First: Abigail G. Author-X-Name-Last: Adeyonu Author-Name: Olubunmi L. Balogun Author-X-Name-First: Olubunmi L. Author-X-Name-Last: Balogun Author-Name: Ifeoluwapo O. Amao Author-X-Name-First: Ifeoluwapo O. Author-X-Name-Last: Amao Author-Name: Timothy O. Agboola Author-X-Name-First: Timothy O. Author-X-Name-Last: Agboola Title: Does farmers’ entrepreneurial competencies explain their household poverty status? Evidence from rural areas of Kwara State, Nigeria Abstract: Ending poverty in all its forms and in all places by 2030 is number one of the 17 Sustainable Development Goals (SDGs). However, in less than a decade to the time set for actualizing this goal, poverty is still pervasive in Nigeria and more endemic among farmers in rural areas. Entrepreneurship is seen as a veritable tool to alleviate poverty and stimulate economic growth in some developing countries including Nigeria. Howbeit, little is known about the relationship between farmers’ entrepreneurial competencies and poverty. Thus, this study examined the effects of farmers’ entrepreneurial competencies on household poverty status in rural areas of Kwara State, Nigeria. A three-stage sampling procedure was employed in selecting 272 farm households, with at least a member who was engaged in at least one other means of livelihood (enterprise). Data were collected between February and March 2019 and analysed with descriptive statistics, factor analysis, Foster, Greer, and Thorbecke (FGT) weighted poverty indices and probit regression at p = 0.05. At a daily poverty line of $1.90 (₦684.00) per capita, 55.15% of the households were poor. The findings indicate that poverty among farm households varied with their level of entrepreneurial competencies. Perseverance competence significantly increased household poverty, while social competence reduced it. The findings suggest poverty reduction strategies that come directly from farmers’ own initiative and their resilience which is rural focused regardless of other challenges that may exist. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2071384 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071384 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2071384 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2043589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammad Naim Azimi Author-X-Name-First: Mohammad Naim Author-X-Name-Last: Azimi Title: Revisiting the governance-growth nexus: Evidence from the world’s largest economies Abstract: This study delves into the symmetric effects of governance on economic growth for the world’s ten largest economies, employing a model augmented with well-known growth, governance, and control predictors to inform model specification. Using panel and time-series techniques, both collectively and individually, the initial results reveal that governance predictors and growth postulate a long-run symmetric nexus. Applying the autoregressive distributed lags (ARDL) model, the results show that although governance predictors positively impact the economic growth of the panel both in the short and long runs, growth is weakly sensitive to governance predictors. The results of the ARDL estimates for cross-country show that Canada’s growth is highly sensitive to governance predictors, followed by France, showing moderate sensitivity. Moreover, the findings support the notion that the US, China, Germany, India, the UK, Brazil, and Italy exhibit weak sensitivity to governance predictors. Besides, the error-correction results demonstrate a high speed of adjustment of the short-run symmetries of the panel to its long-run equilibrium. Since economic growth swiftly responds to the rise and fall of governance predictors, specific policy adjustments are required to maintain sustainable and long-run growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2043589 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2043589 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2095764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Nagaratnam Jeyasreedharan Author-X-Name-First: Nagaratnam Author-X-Name-Last: Jeyasreedharan Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Paul Author-X-Name-Last: Alagidede Title: On the goodness-of-fits of the generalized lambda distribution on high-frequency stock index returns Abstract: In this paper, we investigate the goodness-of-fit of the flexible four-parameter generalized Lambda Distribution (GLD) for high-frequency 5-min returns sampled from the DJI30 Index. Applying Moment Matching (MM) and Maximum Likelihood Estimation (MLE) techniques, we highlight the significance of the higher-order parameters of the GLD distribution to depict the asymmetric and fat-tailed behaviour observed in high-frequency returns data. We also show and explain why the MLE consistently outperforms the MM; especially in the presence of “outliers”. Finally, we use lambda-space scatterplots to introduce, clarify and discuss additional stylized facts of high-frequency index returns not found in the extant high-frequency literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2095764 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2095764 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2012986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Fisseha Zegeye Birhanu Author-X-Name-First: Fisseha Zegeye Author-X-Name-Last: Birhanu Author-Name: Abrham Seyoum Tsehay Author-X-Name-First: Abrham Seyoum Author-X-Name-Last: Tsehay Author-Name: Dawit Alemu Bimerew Author-X-Name-First: Dawit Author-X-Name-Last: Alemu Bimerew Title: Cereal production practices and technical efficiency among farm households in major “teff” growing mixed farming areas of Ethiopia: A stochastic meta-frontier approach Abstract: This study examined the effects of research-based recommended cereal production practices on the technical efficiency of farm households based on household-level data generated from questionnaire surveys, focus group discussions, and key informant interviews. The technical efficiency scores were estimated using the stochastic meta-frontier approach because it allows addressing the expected differences in production technologies. Tobit regression framework was applied to identify factors related to farm inefficiency. Results showed mean technical efficiency of 58%, implying that the farm households can improve cereal output by about 36% with the current level of input mix and technologies. The t-test results revealed farm households who adopted high-yielding varieties with research-based recommended production practices were technically more efficient than their counterparts. Our econometric model results also indicated that the use of high-yielding varieties and research-based recommended seed rate affects the technical efficiency of farm households positively and significantly. In addition, we find gender, age, mobile telephone ownership, cooperative membership, access to input market, and crop damage as significant factors affecting the efficiency of farm households. Our findings highlight the importance of addressing technology adoption gaps and gender-based disparities, expanding access to information and modern inputs, strengthening social capital, and adopting climate change adaptation practices to improve the efficiency of farm households. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2012986 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2012986 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2012986 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2021479_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nawaf Almaskati Author-X-Name-First: Nawaf Author-X-Name-Last: Almaskati Title: The determinants of bank profitability and risk: A random forest approach Abstract: This study is the first to analyse the relative importance of a number of the most cited determinants of bank risk and profitability using random forest’s relative value importance measure. The results show that a bank’s profitability is largely determined by bank-specific factors, while a bank’s risk is predominantly impacted by country-level factors. The results also suggest that proxies for market power and size play significant roles in impacting both the bank’s profitability and its risk profile. The analysis also confirms the presence of a major role for a country’s financial development status and regulatory quality in impacting the bank’s riskiness. Lastly, the analysis confirms the presence of a small number of dominant determinants of a bank’s profitability in contrast to the absence of clear dominant determinants of a bank’s riskiness. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2021479 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2021479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2021479 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2156678_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Joseph Nyamapheni Author-X-Name-First: Joseph Author-X-Name-Last: Nyamapheni Author-Name: Zurika Robinson Author-X-Name-First: Zurika Author-X-Name-Last: Robinson Title: How can different currency regimes affect the willingness to pay tax? Tax morale evidence from Zimbabwe Abstract: The article investigates tax morale during different economic milieus, going hand in hand with the introduction of different currency regimes. It was guided by econometric research and data were collected using questionnaires from the 2010–2014 and 2017–2020 World Values Survey (WVS). For Zimbabwe, Wave 6 and Wave 7 had a sample size of 1500 and 1200 respectively. The article’s dependent variable, tax morale and independent variables included marital status, age, income level, employment and religion among others, and analysed them using the Ordered Logit Model. The article concludes with an understanding of how tax morale and its determinants is crucial for governments in their bid to boost voluntary compliance. Also, different economic milieus for a particular country affect the level of tax morale significantly. Tax morale was established to be high when Zimbabwe was experiencing economic growth due to the introduction of multi-currency, herein called the dollarization period, and the opposite was true for the post-dollarization era. Corruption, which is a menace under study, has proven to be an important factor that influences tax morale. Results of all the models show that demographic factors have little effect on tax morale. The article introduced an important variable of hunger in its analysis of determinants of tax morale. The article showed that there is a negative relationship between hunger and tax morale for Zimbabwe in both economic situations. Based on the findings, policy makers should consider the eradication of corruption and hunger in order to boost tax morale, which in turn improves tax compliance. Also, policy makers should include improvement in the perception of democracy in the mix of enhancement strategies of tax compliance. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2156678 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2156678 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2157541_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yaser Mohd Hamshari Author-X-Name-First: Yaser Mohd Author-X-Name-Last: Hamshari Author-Name: Mohammad Ahmad Alqam Author-X-Name-First: Mohammad Ahmad Author-X-Name-Last: Alqam Author-Name: Haitham Yousef Ali Author-X-Name-First: Haitham Yousef Author-X-Name-Last: Ali Title: The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange Abstract: The purpose of this study is to examine how the COVID-19 epidemic has affected the working capital management practices of Amman Stock Exchange (ASE) companies. From 2012 to 2021, 101 firms were studied in the financial sector. The data was also examined using a Multiple Regression Model in the study. The results revealed that Covid-19 Pandemic has significant and negative effect on working capital management. According to the results, companies tended to take a relatively conservative approach to managing their working capital. More importantly, the data demonstrated that the COVID-19 pandemic crisis drove changes in working capital management practices. Companies with a high FL, QR, and CCC have attempted to increase their client base by prolonging the average age of their accounts receivable and decreasing the turnover rate of their liabilities, respectively. Companies with a greater CCC, as well as those whose principal current assets are accounts receivable, outperformed the other working capital management strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2157541 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2157541 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Changjun Zheng Author-X-Name-First: Changjun Author-X-Name-Last: Zheng Author-Name: Md Nazmul Islam Author-X-Name-First: Md Nazmul Author-X-Name-Last: Islam Author-Name: Najmul Hasan Author-X-Name-First: Najmul Author-X-Name-Last: Hasan Author-Name: Md. Abdul Halim Author-X-Name-First: Md. Abdul Author-X-Name-Last: Halim Title: Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior? Abstract: The aim of this study is to investigate whether a bank’s intellectual capital (IC) efficiency impacts its performance and risk-taking behavior in an emerging economic country. The study used panel data (unbalanced) of 30 commercial banks in Bangladesh during 2002–2019. Data were analyzed through the use of the generalized method of moments (GMM) by Eviews-10. The pragmatic results demonstrate that IC efficiency (HCE), RCE and SCE have significant positive (negative) impacts both on the bank’s performance and risk-taking behavior, this finding is similar to resource-based theory. Moreover, adequate capital and liquidity position improves bank performance, but leverage, size, and non-performing loans to total loan have a significant negative impact on bank performance. In addition, the macro-economic variable growth (i.e., gross domestic product) rate of inflation and financial crisis year negatively impacts both bank performance and risk-taking behavior. The panel dataset in this research is restricted to the Bangladeshi banking sector, which restricts the study’s generalizability. Bank performance in Bangladesh is unaffected by leverage, loan size, and the proportion of non-performing loans to total loans. Regulatory authorities, managers and policymakers should step up their surveillance of banks and other financial institutions when the GDP inflation rate and financial crisis year have a negative impact on both bank performance and risk-taking behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127484 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2131230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Giridhari Mohanta Author-X-Name-First: Giridhari Author-X-Name-Last: Mohanta Author-Name: Ashutosh Dash Author-X-Name-First: Ashutosh Author-X-Name-Last: Dash Title: Do financial consultants exert a moderating effect on savings behavior?A study on the Indian rural population Abstract: Access to basic financial services, though, enables destitute and vulnerable individuals in society to promote prosperity, a significant section of rural population is still unbanked in India. Unveiling various small saving schemes, the Indian Government has accelerated the financial inclusion, but the availability of numerous alternative schemes has created a surplus of market information, causing difficulty in building economic judgment for the rural people having no financial socialization through formal and informal education and training. While dismissive investors rely on their own decisions, the convincing behaviour of financial consultants may play a crucial role in shaping the saving habits of the preoccupied population. To analyse the moderation effect of financial consultants on the relationship between small savings schemes, financial literacy and behaviour, and savings habit of rural people, the empirical study employs a two-phase structural equation modelling on the data gathered from 343 adult respondents from 12 Indian districts with a considerable rural population. In order to validate the hypothesized measurement model, a confirmatory factor analysis is carried out and in the next phase, the structural model is used to verify the association between exogenous and endogenous variables. The study exhibits a significant positive impact of predictors and moderation variables on the savings habit. The study recommends integrating consultants into the financial engineering process to advance inclusivity and encourage saving behaviour of rural individuals for personal and economic prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2131230 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2131230 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2131230 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2024722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dagninet Asrat Author-X-Name-First: Dagninet Author-X-Name-Last: Asrat Author-Name: Adugnaw Anteneh Author-X-Name-First: Adugnaw Author-X-Name-Last: Anteneh Author-Name: Mohammed Adem Author-X-Name-First: Mohammed Author-X-Name-Last: Adem Author-Name: Zewdu Berhanie Author-X-Name-First: Zewdu Author-X-Name-Last: Berhanie Title: Impact of Awash irrigation on the welfare of smallholder farmers in Eastern Ethiopia Abstract: Ethiopia’s agriculture is dominated by small-scale rain-fed production in combinations of natural and manmade factors have resulted in serious poverty. Irrigation farming is increasing been used as a strategy in Ethiopia. However, lack of consensus on the role of the irrigation sector on the welfare of smallholder farmers and pitfalls in impact study methodologies resulted in mixed findings. This study evaluated the impact of Awash irrigation on the welfare of rural smallholder farmers. Two-stage stratified sampling technique employed to select sample households. Cross-sectional household level data from a survey of 315; 165 irrigation users and 151 non-users smallholder farmers in Asiyta district, Ethiopia used for the analysis. This study employed endogenous switching regression model to control for endogeneity problems associated with adoption decision. Accordingly, the correlation coefficient result proved that the existence of self-selection and endogeneity. Results indicated, irrigation users’ per capita consumption expenditure and income were 16 percent and 35 percent, respectively, higher compared to non-irrigation-users significantly. Endogenous switching regression model further identified amount of own land cultivated, education status, number of extension contact, livestock holding, nearest market distance, access to non-farm job and nearest canal distance significantly determine irrigation participation. The study concluded that Awash irrigation is one of the viable solutions to improve the welfare of smallholder farmers in the study area. Therefore, governmental and non-governmental organization should promote, improve and expand Awash irrigation in all areas of the Woreda in particular and irrigation agriculture in general. Figure 1.Conceptual framework for determinants of irrigation participation.Source: Modified from Mengistie and Kidane (2016) Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2024722 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2024722 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2079177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Komlan Ametowoyo Adeve Author-X-Name-First: Komlan Ametowoyo Author-X-Name-Last: Adeve Author-Name: Essosinam Franck Karabou Author-X-Name-First: Essosinam Franck Author-X-Name-Last: Karabou Title: Public debt and development sustainability issues in the West African Economic and Monetary Union (WAEMU) Abstract: This article analyses the impact of public debt on sustainability as measured by the genuine savings indicator covering the period from 2004 to 2018. The methodology adopted is based on dynamic panel generalized methods of moments (GMM). The results after estimation show a negative and significant contribution of public debt to the WAEMU countries’ development sustainability. However, we note that an improvement in institutional governance, an increase in health expenditures and climate change expenditures contribute significantly to putting these countries on a sustainable development trajectory. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2079177 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2079177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sarit Biswas Author-X-Name-First: Sarit Author-X-Name-Last: Biswas Author-Name: Mousumi Bhattacharya Author-X-Name-First: Mousumi Author-X-Name-Last: Bhattacharya Author-Name: Pradip H Sadarangani Author-X-Name-First: Pradip H Author-X-Name-Last: Sadarangani Author-Name: Justin Yiqiang Jin Author-X-Name-First: Justin Yiqiang Author-X-Name-Last: Jin Title: Corporate governance and earnings management in banks: An empirical evidence from India Abstract: This paper aims to examine the role of corporate governance (CG) on earnings management (EM) in Indian commercial banks. In addition, the study examines the role of board gender diversity within the CG framework using data from 22 publicly traded commercial banks in India from 2010 to 2019. The study uses Principal Component Analysis (PCA) to develop a comprehensive CG measure. Using a Panel Corrected Standard Error (PCSE) approach, the study finds that CG has a significant negative impact on EM in Indian commercial banks. The findings further revealed a positive association between gender diversity of boards and EM, indicating that the lack of gender diversity on a bank’s board outweighs the benefits of gender-diverse boards. Our study shows that CG mechanisms are more effective when combined together than individual governance mechanisms. The study also provides new insight into the role of board gender diversity as a CG mechanism on EM in banks in the context of a developing country. The study provides practical implications for investors, managers, regulators and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085266 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085266 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2156092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Monika Chopra Author-X-Name-First: Monika Author-X-Name-Last: Chopra Author-Name: Chhavi Mehta Author-X-Name-First: Chhavi Author-X-Name-Last: Mehta Title: Is bitcoin a diversifier, hedge or safe haven for traditional and alternate asset classes? Abstract: Given the skyrocketing returns earned by bitcoin, it has received widespread attention as an investment asset. The shocks experienced by stock and bond markets over time and especially during the COVID-19 pandemic has led to an evaluation of bitcoin as a wealth protection asset, a role that gold has played until now. The current paper tests the hedging and safe haven properties of bitcoin in a broad portfolio of both developed and emerging markets stocks, bonds and real estate over a period of 10 years and during COVID-19 pandemic. Using a DCC-GARCH method, the study finds weak hedge and safe haven benefits of bitcoin. The results of the study establish that there is still a long way to go before bitcoin displays a strong safe haven behavior. However, there is a need for portfolio managers to become more cognizant about bitcoin given its potential to protect their portfolios. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2156092 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2156092 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Vinh Khuong Author-X-Name-First: Nguyen Vinh Author-X-Name-Last: Khuong Author-Name: Le Huu Tuan Anh Author-X-Name-First: Le Huu Tuan Author-X-Name-Last: Anh Author-Name: Nguyen Thi Hong Van Author-X-Name-First: Nguyen Thi Hong Author-X-Name-Last: Van Title: Firm life cycle and earnings management: The moderating role of state ownership Abstract: The study examined the relationship between firm life cycle (FLC) and earnings management (EM) in the Vietnamese context with the moderating role of state ownership (SOE). We used the sample of 622 Vietnamese listed companies over the period 2010–2019. To eliminate autocorrelation and heteroscedasticity violations, we utilized FE Robust on all models. The data show that accrual earnings management (AEM) behavior varies between FLC phases. The results revealed a U-shaped pattern, with discretionary accruals (DAs) being more remarkable in the introduction and decline stages and lower in the remaining stages. The findings on the connection between FLC and real earnings management (REM) varied depending on the REM technique used. The results support the involvement of SOE as a moderator in both the FLC—REM and the FLC—EM relationship. This study significantly contributed to the existing literature about FLC and EM behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085260 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085260 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085260 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2085264_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: R. Younes Author-X-Name-First: R. Author-X-Name-Last: Younes Title: Investigation on the credit risk transfer effects on the banking stability and performance Abstract: Considered among of the main causes of the 2007 financial crisis, the credit risk transfer activities deserve nowadays particular attention. This study discusses the continuous effectiveness of the credit risk transfer activities by investigating their effects on the bank risk, liquidity and profitability before the crisis event and contributes to the recent scarce literature identifying this effect in the post-crisis period. Using models treating this impact on two samples of US commercial banks over the period from 2001 to 2017, the obtained results suggest an overall amplification of the risk incurred by banks notably before the crisis, a decrease of liquid assets hold on balance sheet and, generally an increase of the profitability. The employment of credit derivatives does not exhibit a conclusive result of its impact on the banking stability and performance. Nevertheless, the effect of residential mortgage loans securitization on bank risk appeared to be negative after the crisis, indicating that the securitization of this type of credit can reduce the bank risk in the detriment of a lower profit, in the new regulatory context required by Basel III. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2085264 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085264 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085264 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2046322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Charles Shaaba Saba Author-X-Name-First: Charles Shaaba Author-X-Name-Last: Saba Author-Name: Nicholas Ngepah Author-X-Name-First: Nicholas Author-X-Name-Last: Ngepah Author-Name: Abieyuwa Ohonba Author-X-Name-First: Abieyuwa Author-X-Name-Last: Ohonba Title: Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective Abstract: This study examines the impact of general/national, provincial and local government capital on employment in South Africa. The study spans from 1993 to 2017 for a panel of 269 South African municipalities. The study employs the Granger causality test and the System Generalised Method of Moments (SGMM) estimation techniques. Findings show bidirectional causality between the variables of interest in the eight economic sectors. The results from the SGMM show that general/national government capital contributes more to total employment and the categories of employment (that is, different skills levels) in the economic sectors compared to provincial and local government capital. This suggests provincial and local government capital has not adequately contributed to citizens’ different skills development and employment levels. Therefore, this article recommends synergised and well invested national, provincial and local government capital at all levels of skills development to equip citizens, create jobs, and grow the South African economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2046322 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2046322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2046322 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2136237_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Goksu Aslan Author-X-Name-First: Goksu Author-X-Name-Last: Aslan Title: Enhancing youth and women’s financial inclusion in South Asia Abstract: The youthful population of South Asia, holding the majority in the subregion, will also have a great share in the future alongside the risk of being not in education, employment, or training with a persisting gender gap. This makes it important to adopt a gender-responsive policy framework for youth empowerment. This paper, after constructing a multidimensional financial inclusion index, based on a multilevel estimation framework considering the hierarchical structure of the dataset, shows evidence on how to increase financial inclusion among the South Asian youth. It furthermore provides policy recommendations considering the gendered effects. The paper finds that education level, formal employment, having a national ID, and government expenditure on education and health are important drivers of financial inclusion. The paper furthermore finds that education level becomes especially more important for those at the bottom income quintile and that government expenditure into education and health would boost the youth financial inclusion in South Asia, especially for the female youth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2136237 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2136237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2136237 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2058734_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Bernard Sarpong Author-X-Name-First: Bernard Author-X-Name-Last: Sarpong Author-Name: Edward Nketiah-Amponsah Author-X-Name-First: Edward Author-X-Name-Last: Nketiah-Amponsah Title: Financial inclusion and inclusive growth in sub-Saharan Africa Abstract: This paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discernible impact on inclusive growth compared with availability and knowledge of financial services. Precisely, a unit increase in the usage of financial products and services improves inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to literature by initially constructing a broader index of inclusive growth and subsequently estimating the separate quantitative effects of three categories of financial inclusion indicators on inclusive growth by employing the Arellano–Bover/Blundell–Bond system Generalized Method of Moment estimator. The findings underscore the need for policymakers to develop innovative, sustainable and inclusive financial systems capable of distributing growth benefits equitably. This can be achieved through moderate lending rates and transaction charges, improved access to retail and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user-friendly financial technologies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2058734 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2058734 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sangho Kim Author-X-Name-First: Sangho Author-X-Name-Last: Kim Title: Temporal changes in factor adjustment of the Japanese manufacturing industry Abstract: This study investigated temporal changes in factor adjustment of the Japanese manufacturing industry by applying a dynamic factor model, in which labor and capital were quasi-fixed to a panel of industries from 1972 to 2012. Estimations show that the adjustment speeds, with which factors approach their optimum levels, have increased over the period. Particularly, factor adjustment rates have significantly increased since 2000. The estimations suggest that Japanese manufacturers have become more flexible in hiring workers and faster in making investments, which reduces adjustment cost significantly. This dynamic gain is ignored from static analysis, underestimating the benefit of labor market reform. The study suggests that policymakers should consider dynamic factor adjustment in assessing policy impacts accurately when implementing an industrial policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122191 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122191 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2035044_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thanh Phuc Nguyen Author-X-Name-First: Thanh Phuc Author-X-Name-Last: Nguyen Author-Name: Thi Thu Hong Dinh Author-X-Name-First: Thi Thu Hong Author-X-Name-Last: Dinh Title: The role of bank capital on the bank lending channel of monetary policy transmission: An application of marginal analysis approach Abstract: While there is a large body of research on the bank lending channel of monetary policy transmission and the distributional dependence of this transmission on bank characteristics, the asymmetric effect of bank capital on monetary policy—bank loan supply nexus has been ignored. To fill this void, the new post-estimation approach of marginal analysis based on the two-step system-GMM methodology is conducted for the dynamic panel data of Vietnamese commercial banks covering the period of 2007–2020. The results confirm the inertia related to loan growth and the presence of a monetary policy bank lending mechanism, which is robust across a series of monetary policy instruments and the approach of variable exclusion from the baseline model. In addition to previous empirical evidence on less sensitivity of well-capitalized banks to tightened monetary policy, this study shows the specific range value of bank capital that monetary policy stance has no impact on bank loan supply in a time of monetary restrictions. Furthermore, better capitalized banks could take more advantage of the expansionary monetary policy by lending more. The relevant policy recommendations for policy-makers are also provided to the best practice of monetary policy implementations considering these asymmetric effects. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2035044 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035044 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammad Imdadul Haque Author-X-Name-First: Mohammad Imdadul Author-X-Name-Last: Haque Author-Name: Bashir Umar Faruk Author-X-Name-First: Bashir Umar Author-X-Name-Last: Faruk Author-Name: Mohammad Rumzi Tausif Author-X-Name-First: Mohammad Rumzi Author-X-Name-Last: Tausif Title: Growth-finance nexus in oil abundant GCC countries of MENA region Abstract: Economic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development considering institutions for countries with substantial oil rents. The study uses the Pedroni test for cointegration, Granger causality, Ordinary Least Squares (Panel, Fully Modified, and Dynamic) methods to study the relationship on a panel data of six countries from 2000 to 2019. The study proceeds with the hypothesis that economic growth leads to financial development in countries having oil rents. The study finds that economic growth has a significant positive impact on the financial sector development of the GCC countries and not vice versa. The study also reports that poor institutional quality constraints the contribution of oil rents to financial development. The results imply that in countries accruing oil rent, the quality of institutions needs to be improved for furthering the cause of financial development. Although the study advances the empiricism on the link between economic growth and financial development, incorporating institutions and oil rents is the study’s novelty. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087646 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087646 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2028974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ho Hoang Gia Bao Author-X-Name-First: Ho Hoang Gia Author-X-Name-Last: Bao Author-Name: Thi Hai Ly Tran Author-X-Name-First: Thi Hai Ly Author-X-Name-Last: Tran Author-Name: Hoang Phong Le Author-X-Name-First: Hoang Phong Author-X-Name-Last: Le Title: The roles of vehicle currency and real effective exchange rate in China’s trade with the whole EU Abstract: Devaluation of domestic currency is traditionally believed to foster a country’s trade balance. Innumerable papers have attempted to scrutinize the exchange rate-trade balance nexus in many countries across the globe, yet their conclusions diverge as they utilize different data, time frames, and methods. Most of them share the same weakness: disregarding the role of vehicle currency. Even though the literature about China is relatively large, no study has scrutinized the asymmetric impacts of vehicle currency and real effective exchange rate on China’s total trade balance with the entire EU. This research gap is especially notable in the circumstances that the EU has surpassed the USA to become China’s largest trading partner, and USD is the vehicle currency heavily employed in China-EU trade. This article aims to fill the aforesaid gap by applying the nonlinear ARDL method to investigate how USD as a vehicle currency, alongside real effective exchange rate, asymmetrically influences China’s trade balance with the whole EU. The empirical results indicate both long-run and short-run asymmetries in all models, and China’s trade balance reacts differently to the two kinds of exchange rates. The findings are robust in the EU-28 and EU-27 cases, and some useful implications are provided for policy-makers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2028974 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2028974 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2045720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Khanh Hoang Author-X-Name-First: Khanh Author-X-Name-Last: Hoang Author-Name: Son Tran Author-X-Name-First: Son Author-X-Name-Last: Tran Author-Name: Liem Nguyen Author-X-Name-First: Liem Author-X-Name-Last: Nguyen Author-Name: Mohammed M Elgammal Author-X-Name-First: Mohammed M Author-X-Name-Last: Elgammal Title: Credit information sharing, nonperforming loans and economic growth: A cross-country analysis Abstract: Employing 3-Stage Least Squares (SLS) regression on the aggregate dataset of 120 countries from 2004 to 2017, this study is the first to investigate whether credit information sharing exerts impact on nonperforming loans of banking system and economic growth rate. First, our findings provide evidence of a negative association between bad debt levels and credit information sharing, suggesting that information sharing tends to enhance the financial sustainability of the banking sector. Furthermore, our study provides evidence in line with an indirect channel via which information sharing is conducive to economic growth: information sharing decreases the nonperforming loans, which hampers economic growth. This result remains unchanged due to the introduction of additional explanatory variables, as well as the use of an alternative dependent variable. Finally, policy implications are discussed based on the findings of the research. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2045720 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2045720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2045720 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2062092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Chala Amante Abate Author-X-Name-First: Chala Amante Author-X-Name-Last: Abate Title: The relationship between aid and economic growth of developing countries: Does institutional quality and economic freedom matter? Abstract: Foreign aid is an important means of finance for governments of developing countries. The current study investigates whether too much inflow of aid to developing countries is beneficial or harmful to their economy and whether institutional quality and economic freedom matters in aid–growth relationship. To this base, a panel data covering the period 2002–2019 was collected from 44 developing countries of the world. System generalized method of moment was employed to examine the nature of relationship between foreign aid and economic growth, and dynamic panel threshold regression is utilized to uncover the mediating role of institutional quality and economic freedom. The result thus obtained reveals that the relationship between foreign aid and economic growth takes inverted U shape indicating the existence of optimal level of aid equal to 9.7% of GNI. The result from dynamic panel threshold regression shows that the effect of aid on economic growth is negative when arithmetic mean of institutional quality index is less than or equal to −0.614 and the overall index of economic freedom is less than or equal to 60.521. Above the indicated thresholds, the effect of aid on economic growth is positive which means institutional quality and economic freedom matters in aid–growth relationship. Drawing on the results obtained, the study suggest that developing countries should not receive huge amount of aid from donors, reform their institutions for the better, and improve economic freedom if they want to reap the benefit of aid. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2062092 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2062092 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2022858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Theophilus Tweneboah Kodua Author-X-Name-First: Theophilus Author-X-Name-Last: Tweneboah Kodua Author-Name: Edward Ebo Onumah Author-X-Name-First: Edward Author-X-Name-Last: Ebo Onumah Author-Name: Akwasi Mensah-Bonsu Author-X-Name-First: Akwasi Author-X-Name-Last: Mensah-Bonsu Title: Technical efficiency of improved and local variety seed maize farms in Ghana: A meta-frontier analysis Abstract: The meta-frontier model technique is employed to compare the technical efficiency levels of improved and local maize seed variety farms in Ghana using a cross-sectional data from 214 farmers. The study shows that inefficiencies in maize production relate to exogenous variables considered even though some of the variables are not statistically significant. All input variables considered contribute positively to maize output in both improved and local seed varieties as well as in the pooled data. Maize farms generally exhibit increasing returns to scale (IRS) in the study area. The mean technical efficiency relative to the meta-frontier is estimated to be 72%, 44% and 50% for the improved, local maize seed variety farms and the pooled data respectively. Based on the estimated TGR of 90% and 72% for the improved and local seed variety maize farms, respectively, the study concludes that maize farmers who cultivated improved maize seed varieties are more technically efficient compared to their counterparts who do otherwise. It is recommended that stakeholder efforts should focus on labour source, education, extension contacts, ready market availability and credit that contribute positively to farmers’ efficiency to further increase maize output in Ghana. Furthermore, farmers should be encouraged and educated more on the benefits of newly developed varieties of maize so that they will be convinced enough to adopt in order to increase their output in the near future. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2022858 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2022858 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2122190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Raavinuthala Satya Krishna Sharma Author-X-Name-First: Raavinuthala Author-X-Name-Last: Satya Krishna Sharma Author-Name: Kumar Bijoy Author-X-Name-First: Kumar Author-X-Name-Last: Bijoy Author-Name: Arunaditya Sahay Author-X-Name-First: Arunaditya Author-X-Name-Last: Sahay Title: Issues in liquidity management in banking system: An empirical evidence from Indian commercial banks Abstract: Maintaining the optimal level of liquidity in the banking system has always been a challenge for banks globally. Liquidity deficit Indian Banks turned to liquidity surplus due to the demonetization of higher denomination currencies in November 2016. The liquidity deficit has the potential to trigger systemic risk whereas a surplus can weaken monetary transmission leading to the creation of asset bubbles. This study explores the impact of various interventions of policymakers to maintain the optimal liquidity by simultaneously insulating the banks’ profitability and overall economic growth from the policy’s negative impact using Auto-Regressive Distributed Lag (ARDL) regression. The study records and analyses the impacts of “Fiscal Deficit”, “Lending and Deposit Rates”, and “Credit Growth Rate” on Liquidity Deficit, GDP growth and Banks’ Profitability levels. It is found that Fiscal deficit is negatively related to Liquidity deficit and GDP growth but increases Banks’ profit whereas Lending rates have an insignificant impact on Liquidity Deficit. Increasing Deposit rates have a positive impact on Liquidity deficit, negative on Banks’ Profit, and immediate positive relationships with GDP growth which changes to negative at the third lag. Similarly, the Credit growth rate has a positive relationship with the Liquidity deficit, augments GDP growth, and reduces Banks’ profit. It is also observed that the profit of Indian Scheduled Commercial banks has reduced after the demonetization. This study, apart from contributing to academic literature, will help the monetary authorities and the financial institutions in their policy decisions for managing the liquidity issues in the market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2122190 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122190 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2106628_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shafaat Muhammad Habib Author-X-Name-First: Shafaat Muhammad Author-X-Name-Last: Habib Author-Name: Haroon Hussain Author-X-Name-First: Haroon Author-X-Name-Last: Hussain Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Author-Name: Rana Yassir Hussain Author-X-Name-First: Rana Yassir Author-X-Name-Last: Hussain Title: Impact of firm characteristics and ownership structure on firm efficiency: evidence from non-financial firms of Pakistan Abstract: This study aims to examine the impact of firm characteristics and ownership structure on the firm efficiency of listed non-financial firms in Pakistan from 2012 to 2017. Firm characteristics include market capitalization, cash holdings, book-to-market ratio and negative book-to-market ratio and ownership structure includes insider ownership, institutional ownership and concentration ownership while controlling for firm size, profitability, leverage and age. Data related to firm efficiency, cash holdings, book-to-market ratio and negative book-to-market ratio was collected from Financial Statement Analysis published by SBP whereas data related to market capitalization and ownership structure (insider ownership, institutional ownership and concentration ownership) was collected from business recorder and published annual reports respectively. At first stage the firm efficiency is reported by using DEA CRS approach and results show that the year 2014 was the best year because 24% firms were efficient and 2015 was the worst because only 18% firms were efficient. The results also show that textile, sugar, food, manufacturing, chemical & pharmaceuticals, cement, motor vehicle, information communication & transportation are the poor performing sectors of Pakistan. This inefficiency might be due to the inefficient use of resources as agency theory advocates. Then at second stage, the correlation and variance inflation factor did not show any multicollinearity. Tobit model is used to find the regression results. The regression results show that market capitalization, cash holdings and concentration ownership positively and significantly influence the firm efficiency. Negative book-to-market ratio, insider ownership and institutional ownership negatively and significantly influence the firm efficiency whereas the book-to-market ratio is insignificant with the firm efficiency. It might be due to the self-interest by the insider and institutional ownership. This study is also helpful for the investors. They can choose the efficient firm for investment and to avoid the inefficient firms to stay away from the losses. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2106628 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106628 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2031434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mohammed Abu Alfoul Author-X-Name-First: Mohammed Author-X-Name-Last: Abu Alfoul Author-Name: Zakia Ahmad Mishal Author-X-Name-First: Zakia Ahmad Author-X-Name-Last: Mishal Author-Name: Friedrich Schneider Author-X-Name-First: Friedrich Author-X-Name-Last: Schneider Author-Name: Khaled Magableh Author-X-Name-First: Khaled Author-X-Name-Last: Magableh Author-Name: Abeer Rafi Alabdulraheem Author-X-Name-First: Abeer Rafi Author-X-Name-Last: Alabdulraheem Title: The hidden economy in Jordan: A MIMIC approach Abstract: This paper uses the Multiple Indicators Multiple Causes (MIMIC) approach to determine the annual size and growth of the hidden economy in Jordan for the period 1980–2018. We find that the key causal variables of the hidden economy in Jordan are: female labor force participation, the inflation rate, the unemployment rate, total tax revenue, and the budget deficit. The growth of these causal variables increases Jordan’s hidden economy. According to our findings, the estimated average of the hidden economy from 1980 to 2018 is 17.6% of the official GDP. Thus, it comprises a large portion of the official GDP. Furthermore, our results suggest an increase in the size of Jordan’s hidden economy from 11.8% in 1980 to 22.4% in 2018. The overall results can assist policymakers in Jordan to combat and reduce the size of the hidden economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2031434 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031434 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2031434 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2013588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nassim Dehouche Author-X-Name-First: Nassim Author-X-Name-Last: Dehouche Title: Revisiting the volatility of bitcoin with approximate entropy Abstract: Two distinct and non-redundant understandings of volatility, as deviation from consistency, exist for a time-series: (1) exhibiting high standard deviation and, closer to the dictionary definition of the term, (2) appearing highly irregular and unpredictable. We find that Bitcoin is a prime example of an asset for which the two concepts of volatility diverge. We show that, historically, Bitcoin combines high Standard Deviation and low Approximate Entropy, relative to Gold and S&P 500. Moreover, subsample analysis for different time-scales (daily, weekly, monthly) shows that lower sampling frequencies drastically reduce the Kurtosis of the distribution of log-returns of Bitcoin. The opposite effect is observed for Gold and S&P 500. These properties suggest that, contrary to the volatility of the two traditional assets, Bitcoin’s high volatility is essentially an intra-day phenomenon that is strongly attenuated for a weekly or monthly time-preference. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2013588 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2013588 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2013588 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2101995_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Zachary Ezra Cohen Author-X-Name-First: Zachary Ezra Author-X-Name-Last: Cohen Author-Name: Aylit Tina Romm Author-X-Name-First: Aylit Tina Author-X-Name-Last: Romm Title: The nature of inconsistencies in two measures of risk preferences in a sample of young African South Africans Abstract: In this paper, we attempt to unpack the nature of revealed inconsistencies in two measures of risk preferences for a sample of young African South Africans. The first measure is a self-reported propensity to take risk in general, and the second is a risk preference elicited through a hypothetical financial gamble. We find that the majority of individuals are inconsistent in their responses that provide these two measures of risk preferences with the majority of contradictions coming from individuals reporting themselves as risk seeking, when their revealed risk preferences from the hypothetical gamble show them to be risk averse. Our results suggest that such inconsistencies are more prevalent amongst males, and amongst females with greater mathematical ability. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2101995 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101995 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101995 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127485_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Tu DQ Le Author-X-Name-First: Tu DQ Author-X-Name-Last: Le Author-Name: Trang NT Ho Author-X-Name-First: Trang NT Author-X-Name-Last: Ho Author-Name: Dat T Nguyen Author-X-Name-First: Dat T Author-X-Name-Last: Nguyen Author-Name: Thanh Ngo Author-X-Name-First: Thanh Author-X-Name-Last: Ngo Title: Intellectual capital – bank efficiency nexus: evidence from an emerging market Abstract: This paper investigates the effect of intellectual capital (IC) and its components on the efficiency of Vietnamese commercial banks from 2007 to 2019 using the two-step Data Envelopment Analysis approach. Banks’ efficiency scores are firstly estimated, while the relationship between IC and bank efficiency is examined in the second stage. The results indicate a positive relationship between IC and banks’ pure technical efficiency, allocative efficiency, and total cost efficiency. When observing the effect of IC decompositions, the findings show that only human capital enhances all types of bank efficiency. Furthermore, bank size and liquidity risk are significant drivers of Vietnamese bank efficiency. Therefore, our findings suggest that bank managers should focus on intellectual capital, particularly human capital, to strengthen bank efficiency further. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127485 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127485 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2140906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Achsanul Qosasi Author-X-Name-First: Achsanul Author-X-Name-Last: Qosasi Author-Name: Hendra Susanto Author-X-Name-First: Hendra Author-X-Name-Last: Susanto Author-Name: Rusmin Rusmin Author-X-Name-First: Rusmin Author-X-Name-Last: Rusmin Author-Name: Emita W. Astami Author-X-Name-First: Emita W. Author-X-Name-Last: Astami Author-Name: Alistair Brown Author-X-Name-First: Alistair Author-X-Name-Last: Brown Title: An alignment effect of concentrated and family ownership on carbon emission performance: The case of Indonesia Abstract: This study considers the effect of ownership characteristics on carbon emission disclosures using balanced panel data and a matched-pair design of 124 annual reports of non-financial firms listed on the Indonesia Stock Exchange (IDX) during 2017–2019. The main result from multivariate analysis reveals that firms with concentrated and family ownership tend to disclose more carbon emission information. This finding suggests that the stewardship qualities of concentrated and family-controlled entities align with carbon emission accountability and strategies to reduce emissions. Our additional analyses show that firms with family board members generate more carbon emission information. Finally, the analysis of nonlinear relationships confirms both monitoring and expropriation effects of family ownership on carbon emission performance. Therefore, the results of this study suggest that considerable work is needed for all non-financial listing firms to specify emission reduction targets and target years, quantify emission reductions and associated costs or savings, and factor costs of future emissions into capital expenditure planning. This study makes a valuable contribution to the family business and carbon emissions, a contribution of considerable interest to a broad interdisciplinary audience, including family business owners, managers, governments, and academics. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2140906 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140906 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2140906 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2109279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Nguyen Thanh Hung Author-X-Name-First: Nguyen Thanh Author-X-Name-Last: Hung Author-Name: Su Dinh Thanh Author-X-Name-First: Su Dinh Author-X-Name-Last: Thanh Title: Fiscal decentralization, economic growth, and human development: Empirical evidence Abstract: The objective of this paper is to examine the simultaneous relationship between fiscal decentralization, economic growth, and human development using the panel data of 18 countries over the 2011–2017 period. 3SLS-GMM (Three Stage Least Squares—Generalized Method of Moments Estimator) and GMM-HAC (Generalized Method of Moments—Heteroskedastic and Autocorrelation Consistent estimator) are employed to obtain unbiased coefficients in the system of equation. The results indicate that the significant relationship does exist between fiscal decentralization, economic growth, and human development from different directions. Specifically, economic growth and human development are positively and negatively affected by fiscal decentralization, respectively. These results hold true with alternative estimation methods and sub-indexes of decentralization. Interestingly, economic growth is fostered by human development index, as justified by the statistical evidence of the studied sample, but these results are found to be consistent as well when it comes to expenditure-based decentralization. However, in the opposite direction, the impact of human development on economic growth is ambiguous and only remains significant in the case of expenditure decentralization purposefully utilized as an explanatory variable. Thirdly, economic growth does not give rise to the efficiency of fiscal decentralization, yet could reduce human development instead. The results provide several plausible implications to policy makers. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2109279 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109279 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2059911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Agus Widarjono Author-X-Name-First: Agus Author-X-Name-Last: Widarjono Author-Name: Diana Wijayanti Author-X-Name-First: Diana Author-X-Name-Last: Wijayanti Author-Name: Suharto Suharto Author-X-Name-First: Suharto Author-X-Name-Last: Suharto Title: Funding liquidity risk and asset risk of Indonesian Islamic rural banks Abstract: This study explores the influence of funding liquidity risk and several control variables on Islamic rural banks’ asset risk in Indonesia. Our study analyzes Islamic rural banks comprising 142 Islamic banks with quarterly data from 2013: Q1 to 2018: Q4. Panel regression is then employed. We divide Islamic banks related to their size and location for further analysis. Our results confirm the funding liquidity risk increase Islamic banks’ asset risk. Small Islamic banks encounter less asset risk than large Islamic banks, but large banks face a lower probability of bad financing than small Islamic banks. The influence of funding liquidity risk on asset risk is higher for Islamic banks in developed areas than in less developed areas. More interestingly, the results using an interaction term between funding liquidity risk and financial contracts show that Islamic banks providing profit-loss sharing contracts (PLS) and non-PLS face lower asset risk than those Islamic banks providing only non-PLS contracts. Results also highlight the importance of market power, size, financing, and efficiency in lowering asset risk. Our findings have two implications. First, policymakers can implement investment account product to reduce mismatch between liquidity risk and asset risk. Second, Islamic banks should provide both PLS and non-PLS contracts by optimizing both contracts to reduce Islamic banks’ risk assets. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2059911 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2059911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2059911 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2152938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Pham Thi Bich Ngoc Author-X-Name-First: Pham Author-X-Name-Last: Thi Bich Ngoc Author-Name: Pham Dinh Long Author-X-Name-First: Pham Author-X-Name-Last: Dinh Long Author-Name: Huynh Quoc Vu Author-X-Name-First: Huynh Author-X-Name-Last: Quoc Vu Title: The impact of absorbing productivity spillover on export ability: evidence from an emerging market Abstract: This paper examines spillover effects of foreign direct investment (FDI) through horizontal, backward, and forward linkages, and how these spillovers are driven by the exporting ability for Vietnamese manufacturing enterprises. Those participating in export activity can increase the spillover absorption from FDI through the horizontal and backward linkages although local firms are less likely to take advantage of productivity spillovers during this period. In addition, these exporting firms confront the productivity protection of the FDI firms in the same industries. In contrast, the higher their exportability is, the better their learning from the foreign firms in the same downstream sectors becomes. The findings of this paper provide valuable evidence and implications for policymakers in managing and enhancing export ability for firms in the emerging market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2152938 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2152938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2152938 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2131115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Abubakar Musah Author-X-Name-First: Abubakar Author-X-Name-Last: Musah Author-Name: Godfred Aawaar Author-X-Name-First: Godfred Author-X-Name-Last: Aawaar Title: Financial development and educational quality in Sub-Saharan Africa Abstract: This paper examines the effect of financial development on educational quality in Sub-Saharan Africa. This paper also analyses the interaction effect of public education financing and measures of financial development on quality of education in Sub-Saharan Africa. The study adopts the two—step system generalised method of moment (Two-Step System GMM) model in estimating the effect of financial development on educational quality and the interaction effect of financial development and public education financing on educational quality. We use data for the period 1990 to 2019 for 42 Sub-Saharan African countries obtained largely from the World Development Indicators of the World Bank and the International Monetary Fund (IMF) financial development index database. The results show that overall financial development, financial access, financial depth, and financial efficiency improve quality at the primary, secondary, and tertiary levels of education. We also find that public education financing improves quality at all levels of education. The results also show that public education financing positively moderates the nexus between measures of financial development and educational quality in Sub-Saharan Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2131115 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2131115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2131115 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2067021_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Maria Faiq Javed Author-X-Name-First: Maria Faiq Author-X-Name-Last: Javed Author-Name: Atif Khan Jadoon Author-X-Name-First: Atif Khan Author-X-Name-Last: Jadoon Author-Name: Ayesha Malik Author-X-Name-First: Ayesha Author-X-Name-Last: Malik Author-Name: Ambreen Sarwar Author-X-Name-First: Ambreen Author-X-Name-Last: Sarwar Author-Name: Munazza Ahmed Author-X-Name-First: Munazza Author-X-Name-Last: Ahmed Author-Name: Saima Liaqat Author-X-Name-First: Saima Author-X-Name-Last: Liaqat Title: Gender wage disparity and economic prosperity in Pakistan Abstract: The present study is designed to examine the relationship between wage inequalities and economic prosperity in the case of Pakistan. Using provincial-level data for the years 2000 to 2020, the study estimated a multivariate regression model by employing Auto Regressive Distributive Lag (ARDL) pooled mean group (PMG) technique. The results reveal that wage inequality, government development spending, labor force participation, and human development significantly affect economic prosperity. It is concluded that gender disparity in the labor market is the main hurdle in the economic wellbeing of the masses in the country. Reducing the differences in wages will enhance overall economic prosperity. The government and private sector should take collaborative measures to reduce wage disparities between the male and female workforce. The study also suggests that government should increase development expenditure, especially on health, education, and social infrastructure, to increase economic prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2067021 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2067021 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2067021 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2087644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yasin Ahmed Author-X-Name-First: Yasin Author-X-Name-Last: Ahmed Author-Name: Seid Ebrahim Author-X-Name-First: Seid Author-X-Name-Last: Ebrahim Author-Name: Mohammed Ahmed Author-X-Name-First: Mohammed Author-X-Name-Last: Ahmed Title: Determinants of solar technology adoption in rural households: The case of Belesa districts, Amhara region of Ethiopia Abstract: The adoption of modern energy such as solar energy has been recognized as, an important way to reduce carbon emissions and enrich the energy supply of rural households in Ethiopia. This study investigated the factors that determine the solar technology adoption in rural households in case of West Belesa and East Belesa districts of Ethiopia. Data were collected from 500 farm households which were selected using a multi-stage sampling technique procedure through a structured survey questionnaire with online KOBO application through the Computer-Assisted-Personal-Interview (CAPI) system. The data was collected through focus group discussions and key informant interviews. Binary logit models were utilize to analyze the data. The finding of the study revealed that seven independent variables were significant in explaining the factors affecting farmers’ adoption of solar technology. These variables were education status, family size, participation in natural resource management activity, extension services, knowledge about solar technology, credit utilization, and perception of climatic change were the positive determinants of adoption. Based on the finding, the study recommends that the government should raise farmers’ awareness through increase access of education and improved especially credit services to rural household’s to increase the adoption of solar energy technology. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2087644 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087644 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2090664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Adedoyin Isola Lawal Author-X-Name-First: Adedoyin Isola Author-X-Name-Last: Lawal Author-Name: Eziekel Oseni Author-X-Name-First: Eziekel Author-X-Name-Last: Oseni Author-Name: Bukola Bose Lawal-Adedoyin Author-X-Name-First: Bukola Bose Author-X-Name-Last: Lawal-Adedoyin Author-Name: Joseph IseOlorunkanmi Author-X-Name-First: Joseph Author-X-Name-Last: IseOlorunkanmi Author-Name: Abiola J. Asaleye Author-X-Name-First: Abiola J. Author-X-Name-Last: Asaleye Author-Name: Henry Inegbedion Author-X-Name-First: Henry Author-X-Name-Last: Inegbedion Author-Name: M. Santanu Author-X-Name-First: M. Author-X-Name-Last: Santanu Author-Name: Abigail DickTonye Author-X-Name-First: Abigail Author-X-Name-Last: DickTonye Author-Name: Opeyemi Olagunju Author-X-Name-First: Opeyemi Author-X-Name-Last: Olagunju Author-Name: Elizabeth Ogunwole Author-X-Name-First: Elizabeth Author-X-Name-Last: Ogunwole Title: Impact of macroeconomic variables on the Nigerian manufacturing sector Abstract: The essence of this study is to examine the impact of macroeconomic variables and some salient socio-economic and political variables on the manufacturing sub-sector of the Nigerian economy by using the autoregressive distributed lag to analyze data source from 1986 to 2019 within the context of two macroeconomic theories: The Solow growth and the endogenous growth theories. The study noted that both the Solow growth theory and endogenous growth model are valid in the short run for the studied economy, but the result is not the same in the long run, as only the endogenous growth model was valid in the long run. The study noted that to achieve sustainable economic growth powered by strong manufacturing sector, there must be an alignment between the macroeconomic variables employed and the socio-political factors. The findings of the study have some policy implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2090664 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090664 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2090664 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2058189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Mesele Belay Zegeye Author-X-Name-First: Mesele Belay Author-X-Name-Last: Zegeye Author-Name: Abebaw Hailu Fikire Author-X-Name-First: Abebaw Hailu Author-X-Name-Last: Fikire Author-Name: Getamesay Bekele Meshesha Author-X-Name-First: Getamesay Bekele Author-X-Name-Last: Meshesha Title: Determinants of multiple agricultural technology adoption: evidence from rural Amhara region, Ethiopia Abstract: The adoption of modern agricultural technologies remains to be a promising strategy to improve agricultural productivity, achieve food security and reduce poverty in Ethiopia. Despite the efforts to promote adoption in the country, the adoption rate has always been very low. So, it is essential to understand the determinants to the adoption of modern agricultural technologies. This study investigates the determinants of agricultural technology adoption decisions in the rural Amhara region of Ethiopia. The study is based on an Ethiopian socio-economic survey of 2015/16 and a sample of 656 farm households is considered. The paper uses a multinomial logit model to assess the factors affecting the adoption decision of agricultural technology. The result shows that farmers with more educational level, family size, off-farm participation, livestock, extension service, credit access, advisory service, and farmers closer to plot, all-weather road, zonal town, and farmers with lower remittance income are more likely to adopt new or improved agricultural technology. Accordingly, the study provides crucial policy implications regarding the technology adoption in the agricultural sector for all regions of Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2058189 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2058189 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2111802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Gagan Sharma Author-X-Name-First: Gagan Author-X-Name-Last: Sharma Author-Name: Sanjay Sehgal Author-X-Name-First: Sanjay Author-X-Name-Last: Sehgal Author-Name: Anil V. Mishra Author-X-Name-First: Anil V. Author-X-Name-Last: Mishra Title: Does financial integration impact performance of equity anomalies? Abstract: We examine prominent market anomalies and evaluate the efficacy of alternative asset pricing models under different financial integration settings. A financial integration index is developed for classifying 25 sample markets into high-, medium- and low integration groups. Size is found to be the strongest anomaly in world markets, followed by value and liquidity. Value and profitability effects are larger for low-integrated markets. Highly integrated markets experience short-term momentum while many low-integrated markets exhibit mild reversals. Fama and French five-factor model outperforms capita l asset pricing model (CAPM) and Fama and French three-factor model in explaining returns. International factors augment the role of local factors for more integrated markets. Our study has implications for global investors to design anomaly based investment strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2111802 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111802 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132642_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thich Van Nguyen Author-X-Name-First: Thich Author-X-Name-Last: Van Nguyen Author-Name: Hang T.T. Bui Author-X-Name-First: Hang T.T. Author-X-Name-Last: Bui Author-Name: Chi H.D. Le Author-X-Name-First: Chi H.D. Author-X-Name-Last: Le Title: The impacts of corporate social responsibility to corporate financial performance: A case study of Vietnamese commercial banks Abstract: This study aims to investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). A multi-method approach has been applied to measure CSR. Net interest margin (NIM), return on assets (ROA), and return on equity (ROE) are selected to represent the financial performance of the bank. Using a sample of Vietnamese commercial banks from 2012 to 2019 to perform regressions in the dynamic panel models with the two-step system generalized method of moments (GMM) estimator, the results show a positive effect of both corporate social responsibility expenditure (CSRE) and corporate social responsibility disclosure (CSRD) on the financial performance of the bank. The results also show the impact of the component CSRs on the bank’s financial performance, particularly finding a positive effect of Environmental responsibility and Employee responsibility. In contrast, the influence of Community responsibility is not evident. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2132642 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132642 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132642 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2075520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kudakwashe Zvitarise Javangwe Author-X-Name-First: Kudakwashe Zvitarise Author-X-Name-Last: Javangwe Author-Name: Oliver Takawira Author-X-Name-First: Oliver Author-X-Name-Last: Takawira Title: Exchange rate movement and stock market performance: An application of the ARDL model Abstract: The study examines the relationship between the stock market and exchange rate in South Africa for the period from 1980 to 2020. Quarterly data was used employing the Autoregressive Distributed Lag (ARDL) model given the order of integration of the variables. The empirical results revealed that there is a long-term relationship between the variables of interest. The results also revealed that there is a negative relationship between the stock market and exchange rate movement. The results also show that there is a negative relationship between the stock market and the interest rate as well as inflation as measured by CPI. These results imply that innovations in the exchange rate do have an impact on what happens to the stock market. The impact of exchange rates on stock market can be positive in the short run and negative in the long run and so policymakers can use our findings to avoid making unnecessary monetary or fiscal policy decisions. Policy makers may be able to know when to intervene in influencing the markets using monetary or fiscal policies. Investors and portfolio managers can apply the findings of this study to hedge against exchange rate risk, efficiently diversify their portfolios and predict future stock market movements by observing the exchange rate market. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2075520 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2075520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2075520 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2015084_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sunitha Kumaran Author-X-Name-First: Sunitha Author-X-Name-Last: Kumaran Title: Modelling the downside risk potential of mutual fund returns Abstract: Investors are becoming more sensitive about returns and losses, especially when the investments are exposed to downside risk potential in the financial markets. Despite the computational intensity of the downside risk measures, they are very widely applied to construct a portfolio and evaluate performance in terms of the investors’ loss aversion. Value-at-risk (VaR) has emerged as an industry standard to analyze the market downside risk potential. The approaches used to measure VaR vary from the standard approaches to more recently introduced highly sophisticated volatility models. In this paper, the standard approaches (student-t-distribution, log normal, historical simulation) and sophisticated volatility models (EWMA, GARCH (1,1)) both have been used to estimate the VaR of mutual funds in the Saudi Stock Exchange between June 2017 and June 2020. The VaR approaches have been subjected to conditional coverage backtest to identify the model that is the best at predicting VaR. The empirical coverage probability of the models reveals that EWMA was able to capture VaR better than the other models at a higher significance level followed by GARCH (1,1). Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2015084 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2015084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2015084 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2060552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Djihad Tria Author-X-Name-First: Djihad Author-X-Name-Last: Tria Author-Name: Mukaramah Harun Author-X-Name-First: Mukaramah Author-X-Name-Last: Harun Author-Name: Mahmudul Alam Author-X-Name-First: Mahmudul Author-X-Name-Last: Alam Title: Microcredit as a strategy for employment creation: A systematic review of literature Abstract: National governments and their development partners have considered microcredit as a strategic tool for vulnerable populations. Easy access to finance increases the client’s ability to invest and allows clients to use resources to change their behaviour, increase their business opportunities and create employment. This paper aims to review studies that focused on microcredit and employment issues affecting beneficiaries, including gender-based employment creation and the informal sector. Through a systematic search of electronic databases and keywords to identify relevant studies, 40 core articles are identified for the period 1998–2021. The results indicate the significant impacts of microcredit on women’s employment creation and business revenue of microenterprises in the informal sector. Moreover, a few studies set out to integrate gender employment creation and the informal sector with reference to microcredit. A framework is proposed to address the relationship between employment structure and microcredit. Finally, this study recommends developing a financial social accounting matrix and run empirical analysis on macro modelling such as input-output or general equilibrium modelling. Doing so will help obtain better understanding of how microcredit participation is associated with employment creation in different sectors and different types of household groups. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2060552 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2060552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2060552 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2035493_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Richard Mumo Author-X-Name-First: Richard Author-X-Name-Last: Mumo Author-Name: John Boscoh H. Njagaraha Author-X-Name-First: John Boscoh H. Author-X-Name-Last: Njagaraha Author-Name: Mercy K. Kiremu Author-X-Name-First: Mercy K. Author-X-Name-Last: Kiremu Author-Name: Richard Watt Author-X-Name-First: Richard Author-X-Name-Last: Watt Title: On the use of intertemporal models to analyse how post-loss and post no-loss insurance demands differ Abstract: A general problem in insurance economics is to establish how insurance demand is affected by the size of the loss suffered in the previous period. This problem lays out the underlying objective of this study, which examines how insurance demand changes post-catastrophes, and how it can be theoretically modelled. We present a basic theoretic model to examine how post-accident insurance demand differs from post no-accident insurance demand. Our study first explores post-loss insurance demand from a two-period perspective and then examines how utility curvature parameters affect insurance demand across two periods. In our simulation results, it is observed that the optimal insurance demand with or without intertemporal consideration is the same in the absence of consumption smoothing mechanism. In addition, the experience of having an accident increases insurance purchases in the next period compared to when there was no accident in the previous period. In view of our findings, insurance stakeholders can develop strategies designed to improve post-loss outcomes for insurance consumers that include adequate coverage both after a loss and following a no-loss event by better understanding how insurance demand changes post-loss. We note that our proposition is limiting, but this limitation offers an interesting area of exploration. More studies are thus encouraged to model explicitly the utility derived from the wealth in the second period. In addition, further research is needed into the effects of consumption decisions and how to solve the bivariate optimisation problem that results. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2035493 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035493 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2022859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Vu Minh Ngo Author-X-Name-First: Vu Minh Author-X-Name-Last: Ngo Author-Name: Huan Huu Nguyen Author-X-Name-First: Huan Huu Author-X-Name-Last: Nguyen Author-Name: Hien Thu Phan Author-X-Name-First: Hien Thu Author-X-Name-Last: Phan Author-Name: Phương Thanh Thi Tran Author-X-Name-First: Phương Thanh Thi Author-X-Name-Last: Tran Title: Lives and livelihoods trade-offs: Which COVID-19 strategies for which countries? Abstract: Are COVID-19 non-pharmaceutical interventions (NPIs) at the expense of economic outcomes? Furthermore, given the heterogeneities in macroeconomic conditions, should countries follow a unified COVID-19 strategy such as “No-COVID”? This study provides cross-country evidence that attempts to address these critical questions during the pandemic era. Given the substantial heterogeneity in unemployment rates of OECD countries, it is necessary to understand the effects of NPIs’ implementation, which could vary widely across conditional quantiles of unemployment rates. Using monthly data from OECD countries from February 2020 to June 2021 and quantile regression analysis for panel data (QRPD), we explore the impacts of NPIs on economic outcomes. The results indicate that NPIs effectively contained the pandemic and had substantial positive impacts on low quantiles of unemployment rates. However, at high quantiles of unemployment rates, the trade-off is viable and significant. In addition, countries’ vaccination policies and scales also predict their economic outlooks, especially when combined with non-pharmaceutical interventions. Based on these findings, this study suggests different COVID-19 strategies for different groups of countries according to their macroeconomic settings. The trade-off between lives and livelihoods is much more troublesome and prevalent in countries with unfavorable macroeconomic conditions and hinders them from pursuing strategies such as “No-COVID”. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2021.2022859 File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2022859 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2129368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Eleftherios Spyromitros Author-X-Name-First: Eleftherios Author-X-Name-Last: Spyromitros Author-Name: Minas Panagiotidis Author-X-Name-First: Minas Author-X-Name-Last: Panagiotidis Title: The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators Abstract: Although corruption has attracted researchers’ attention for more than 30 years, it remains one of the most significant political challenges all countries face. Even though corruption measures have improved, they lack reliability and clarity. Two aspects of corruption are examined in this paper: a) its measurement and b) its effects on the economic performance of 83 developing countries in the period 2012–2018 with AR (1) and FM-OLS data processing techniques. It provides an extensive reference for and critical assessment of different corruption index approaches, focusing on the already known and widespread indicators. Furthermore, it refers to the measures most suited for statistical analyses regarding perceptions and experiences. In addition, the study’s empirical results show that corruption hinders the economic growth of those developing countries. Different levels of corruption impact economic growth in different regions; specifically in Latin American countries, corruption impacts positively on economic growth or vice versa; in the other regions, it is negative. Finally, investment, human development, government growth, and institutional quality play essential roles in economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2129368 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2129368 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2127218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: John Gakuu Karanja Author-X-Name-First: John Gakuu Author-X-Name-Last: Karanja Title: Domestic trade regulation and growth of wholesale and retail firms; evidence from Kenya Abstract: The aim of this paper was to assess the effect of Kenya’s domestic trade regulations on the growth of wholesale and retail firms in Kenya. To achieve the study objective, the existing domestic trade regulatory framework was reviewed, and policy gaps were identified. Further, a cross-sectional dataset from the World Bank enterprise survey 2018 was used for empirical analysis as it contains regulatory variables that influence the growth of wholesale and retail trade firms. The Tobit model was used for regression analysis. The study established that business registration regulations, licensing regulations, firm size, use of mobile money, business websites, membership in a trade association, and training of employees support firms’ ability to grow and therefore create jobs. The study recommended that there is a need to develop a framework that will coordinate both national and county governments in the implementation of business registration reforms provided under the Business Registration Act of 2015 and other reforms provided for ease of doing business in the country. Further, there is a need to reduce business licensing obstacles across the counties by simplifying business license application procedures, conditions, and requirements. Finally, there is a need to fast-track the implementation of the MSE Act 2012 and the MSE regulations 2019 on trade associations, as well as to assess their contribution to the wholesale and retail trade sectors’ self-regulation since their enactment and, if necessary, to revise them. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2127218 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127218 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2063525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Emrah Beşe Author-X-Name-First: Emrah Author-X-Name-Last: Beşe Author-Name: H. Swint Friday Author-X-Name-First: H. Swint Author-X-Name-Last: Friday Title: THE RELATIONSHIP BETWEEN EXTERNAL DEBT AND EMISSIONS AND ECOLOGICAL FOOTPRINT THROUGH ECONOMIC GROWTH: TURKEY Abstract: The influence of external debt on the environment is a rising issue in the rapidly developing climate crisis. This study analyzes the relationship between carbon dioxide emissions per capita, gross domestic product per capita and ecological footprint per capita by applying an autoregressive distributed lag model for the Republic of Turkey. According to the results of this study there is an inverted U relationship between carbon dioxide emissions and external debt. There is no inverted U relationship between ecological footprint per capita and external debt while there is bidirectional causal relationship between external debt and economic growth. In addition, the results reveal that economic growth has a significant impact on ecological footprint per capita in the long run. There is causal relationship from external debt to emissions. This study recommends that further analysis be done for other countries that have high foreign debt to investigate the relationship between external debt and emissions. Similar analysis may be carried out for the external debt and ecological footprint per capita nexus for future studies. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2063525 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2063525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2063525 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2146631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Randolph Nsor-Ambala Author-X-Name-First: Randolph Author-X-Name-Last: Nsor-Ambala Author-Name: Ebenezer Bugri Anarfo Author-X-Name-First: Ebenezer Author-X-Name-Last: Bugri Anarfo Title: A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana Abstract: The paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and therefore contributes to understanding the contextual realities of the impact of FDI inflow, an often-prioritised policy choice, on widely used measures of social coherence and welfare. The study employed a vector autoregressive (VAR) estimation approach to empirically explore the relationships among corruption, foreign direct investment, and economic growth. The findings suggest that there is a reverse causality among corruption, foreign direct investment, and economic growth. This indicates that these variables are complementary rather than contradictory. These findings imply that central government and policymakers should not pursue any of these variables as a policy goal, but rather treat them as complements when modelling or formulating economic policies. This means that policies aimed at promoting foreign direct investment will not jeopardize or compromise the control of corruption and economic growth and vice versa. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2146631 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2146631 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2051824_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Thi Ngan Nguyen Author-X-Name-First: Thi Ngan Author-X-Name-Last: Nguyen Author-Name: Thi Kieu Hoa Phan Author-X-Name-First: Thi Kieu Hoa Author-X-Name-Last: Phan Author-Name: Thanh Liem Nguyen Author-X-Name-First: Thanh Liem Author-X-Name-Last: Nguyen Author-Name: David McMillan Author-X-Name-First: David Author-X-Name-Last: McMillan Title: FINANCIAL CONTAGION DURING GLOBAL FINANCIAL CRISIS AND COVID–19 PANDEMIC: THE EVIDENCE FROM DCC–GARCH MODEL Abstract: This paper is the first study to examine the financial contagion from the U.S., Japanese and Chinese markets to Asian markets during the Global Financial Crisis (GFC) and Covid-19 Pandemic Crisis. We employ the DCC-EGARCH methodology and daily data of stock returns from 2005 to 2021 to estimate the time-varying correlations and the volatilities of stock markets. Our results show that the correlation between the U.S. and Japanese markets with emerging Asian ones is quite high, implying the interdependence between these markets. Furthermore, we find significant contagion effects from the U.S. equity market to markets in both advanced and emerging economies during the GFC. Nonetheless, during the Covid-19 pandemic, only 3 out of 10 Asian emerging markets had experienced the contagion from the U.S. Our findings also suggest that contagion effects are not strongly related to the level of global integration and Asian markets seem to be more affected by the contagion from Japan and China. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2051824 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2051824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2051824 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2113496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Sarwar Uddin Ahmed Author-X-Name-First: Sarwar Uddin Author-X-Name-Last: Ahmed Author-Name: Samiul Parvez Ahmed Author-X-Name-First: Samiul Parvez Author-X-Name-Last: Ahmed Author-Name: Mohammad Abdullah Author-X-Name-First: Mohammad Author-X-Name-Last: Abdullah Author-Name: Uttam Karmaker Author-X-Name-First: Uttam Author-X-Name-Last: Karmaker Title: Do socio-political factors affect investment performance? Abstract: Despite increasing research on the relationship between behavioral factors and investment performance, little is known about the perspective of emerging markets like Bangladesh. This paper investigates the mediating role of socio-political factors in explaining the relationship between behavioral factors and investment performance in the Dhaka Stock Exchange (DSE). Using structural equation modeling (SEM) on 1,123 completed responses, we find that social and political environment mediates investors’ behavior in translating into investment performance. The finding suggests behavioral factors and the socio-cultural context of Bangladesh can explain market anomalies seen for decades in the largest stock exchange in the country and demands further research in this direction. Additionally, results show herding effect has the strongest effect on investment performance through combined mediation effect of social and political factors. The study results have significant implications for both theoretical and practical analysts by contributing to the evolution of post-neoclassical finance theories from an emerging market viewpoint and suggesting the probable causes behind historical market instability in DSE, respectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2113496 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2113496 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2113496 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2157117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Maun Jamaludin Author-X-Name-First: Maun Author-X-Name-Last: Jamaludin Author-Name: Hari Busthomi Author-X-Name-First: Hari Author-X-Name-Last: Busthomi Author-Name: Soma Gantika Author-X-Name-First: Soma Author-X-Name-Last: Gantika Author-Name: Abdul Rosid Author-X-Name-First: Abdul Author-X-Name-Last: Rosid Author-Name: Erry Sunarya Author-X-Name-First: Erry Author-X-Name-Last: Sunarya Author-Name: Tuah Nur Author-X-Name-First: Tuah Author-X-Name-Last: Nur Title: Market orientation and SCM strategy on SME organizational performances: the mediating effect of market performance Abstract: This study aims to examine the effects of market orientation and SCM strategy on SME financial performance and operational performance by using market performance as the mediating variable. A simple random sampling technique was employed. A total of 150 SME managers and owners participated in this study. By using Structural Equation Model (SEM) with AMOS 20 software, the results found the positive effects of market orientation on market performance and on financial performance. A positive effect was also obtained in examining the relationship between SCM strategy on market and operational performances. Market performance is also empirically proven to have a significant influence on operational performance. However, the results found no significant influence of market orientation on market and financial performances. The mediating testing showed that market performance strengthens the effect of SCM strategy on operational and financial performances. The results practically highlight the need for SMEs to rely on aspects of supply chain sustainability and be oriented to existing consumer demand patterns to encourage increased and sustainable business performance. Theoretically, the findings reveal SMEs’ emphasis on the strength of SCM strategy as a marketing focus and underscore the need to satisfy end customers and supply chain management members. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2157117 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2157117 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2148363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Iwan Putra Author-X-Name-First: Iwan Author-X-Name-Last: Putra Author-Name: Urip Sulistiyo Author-X-Name-First: Urip Author-X-Name-Last: Sulistiyo Author-Name: Enggar Diah Author-X-Name-First: Enggar Author-X-Name-Last: Diah Author-Name: Sri Rahayu Author-X-Name-First: Sri Author-X-Name-Last: Rahayu Author-Name: Syurya Hidayat Author-X-Name-First: Syurya Author-X-Name-Last: Hidayat Title: THE INFLUENCE OF INTERNAL AUDIT, RISK MANAGEMENT, WHISTLEBLOWING SYSTEM AND BIG DATA ANALYTICS ON THE FINANCIAL CRIME BEHAVIOR PREVENTION Abstract: This study provides a critical review of the literature that examines and analyses how Fraud Prevention mediates the Effect of Internal Audit, Risk Management, Whistle Blowing System and Big Data Analytics on the Prevention of Financial Crime Behaviour. The problem discussed in this study is the limited strategic formulation in risk management, internal audit, whistleblowing system and big data analytics for early detection for fraud prevention and prevention of financial crime behavior in Indonesia, especially the problem of fraud that occurs in the Sumatra Regional Government, namely in Aceh, North Sumatra, Riau, Kepulauan Riau, South Sumatra, Bangka Belitung, Jambi, West Sumatra, Bengkulu and Lampung. Various kinds of scientific studies that have been carried out provide clues that the skills mismatch on the impact of fraud and financial crime behavior is still a fundamental polemic that will continue to hamper the productivity and competitiveness of various economic and industrial sectors in Regional Governments in Indonesia. To prepare for the emerging discourse, this research refers to 90 articles published in leading academic journals, discussing related topics from the early 1990s to 2021. Therefore, the formulation of the problem in this study: (1) How does Internal Audit influence prevention fraud, (2) How does Risk Management influence fraud prevention, (3) How does Whistleblowing system influence fraud prevention, (4) How big data analytics influence fraud prevention, (5) How fraud prevention mediates the influence of Internal Audit, Risk Management, whistleblowing system and big data analytics to prevent financial crime behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 10 Year: 2022 Month: 12 X-DOI: 10.1080/23322039.2022.2148363 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148363 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196851_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniel Ofori-Sasu Author-X-Name-First: Daniel Author-X-Name-Last: Ofori-Sasu Author-Name: Elikplimi Komla Agbloyor Author-X-Name-First: Elikplimi Komla Author-X-Name-Last: Agbloyor Author-Name: Emmanuel Sarpong-Kumankoma Author-X-Name-First: Emmanuel Author-X-Name-Last: Sarpong-Kumankoma Author-Name: Joshua Yindenaba Abor Author-X-Name-First: Joshua Yindenaba Author-X-Name-Last: Abor Title: Central bank coordinated policies and bank market power: an insight from the African context Abstract: The paper examines the impact of central bank regulatory policies on market power in Africa. The study presents a representative sample of 52 African economies over the period 2006–2020. The study shows that the individual regulatory policies of the central bank (i.e. monetary and macro-prudential policies) enhance banks’ market power. Also, it reveals that central bank regulatory policies are better coordinated, as complements, in achieving greater market power of banks in countries with strong central bank independence (CBI) framework. However, the coordinated policies are substitutes in determining bank’s market power in countries with weak CBI framework. The policy implication is that the right policy mix of coordinated central bank regulatory policy framework is important in determining an optimal outcome of bank’s market power in both an inclusive central bank (monetary-prudential) policy targeting economies and an independent policy targeting economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196851 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196851 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2162687_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nam Hai Pham Author-X-Name-First: Nam Hai Author-X-Name-Last: Pham Title: CEO characteristics and bank performance: Case of Vietnamese commercial banks Abstract: The article was conducted to evaluate the impact of CEO characteristics on the performance of Vietnamese commercial banks. Variables representing the performance of commercial banks are return on total assets (ROA) and return on equity (ROE). Data was collected from 30 Vietnamese commercial banks from 2012–2020. By the regression methods of Pooled OLS, Fixed Effects Model (FE), Random Effects Model (RE), Feasible Generalized Least Squares (FGLS), the research results show that CEO duality and CEO age positively impact the performance of Vietnamese commercial banks. In contrast, the female CEO factor has a negative impact on ROE. In addition, the study did not find evidence of the impact of the CEO’s financial background and the CEO tenure on the performance of Vietnamese commercial banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2162687 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2162687 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2172802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: António Carvalho Author-X-Name-First: António Author-X-Name-Last: Carvalho Author-Name: Filipe Sardo Author-X-Name-First: Filipe Author-X-Name-Last: Sardo Author-Name: Luís Pacheco Author-X-Name-First: Luís Author-X-Name-Last: Pacheco Title: The firms’ debt reversibility trend: An application to a large sample of industrial SMEs Abstract: The corporate debt reversibility analysis can be carried out not only from the owner/manager’s active intervention perspective but also from the perspective of a mechanical reversion, independent of owner/managers’ deliberations. Our study aims to discover how and which theoretical perspective underlying reversibility has the most significant impact on the capital structure of Portuguese industrial small and medium-sized enterprises (SMEs). The present paper proposes a new approach linking the measures commonly used to determine the target leverage level to the specific assumptions of theories addressing debt dynamics. Our results show that the perspective with the stronger impact on capital structure materialises in the dynamic trade-off theory assumptions. However, owners/managers also strongly consider the industry references to which firms belong. The perspective of mechanical debt reversion also contributes, at its level, to the firms’ debt permanent reversibility in the sense of possible long-term stationarity. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2172802 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2172802 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muhammad Zahid Author-X-Name-First: Muhammad Author-X-Name-Last: Zahid Author-Name: Syeda Um-Ul-Baneen Naqvi Author-X-Name-First: Syeda Um-Ul-Baneen Author-X-Name-Last: Naqvi Author-Name: Amin Jan Author-X-Name-First: Amin Author-X-Name-Last: Jan Author-Name: Haseeb Ur Rahman Author-X-Name-First: Haseeb Ur Author-X-Name-Last: Rahman Author-Name: Said Wali Author-X-Name-First: Said Author-X-Name-Last: Wali Title: The nexus of environmental, social, and governance practices with the financial performance of banks: A comparative analysis for the pre and COVID-19 periods Abstract: This study aims to examine the impact of ESG practices on the financial performance of the banking industry of Pakistan during the pre and COVID-19 periods. The data were collected from the annual reports of selected banks for the pre-COVID-19 period (2018) and the COVID-19 period (2020). Results of the t-test show that there is a significant difference in ESG disclosures between the pre and during-COVID-19 periods. The regression analysis shows that the formative ESG factor positively affected the financial performance of the banking industry during the pre-COVID-19 period. While the reflective factors (environmental and social) positively affected the financial performance of the banking industry in the pre-COVID-19 period. During the COVID-19 period, the formative factor of ESG was found to have a significant positive impact on the financial performance of the banking industry. Similarly, in this period, the reflective factors (social and governance) were also found to have a significant positive impact on the financial performance of the banking industry. Interestingly, environmental sustainability negatively impacted the financial performance during the COVID-19 period. It indicates that the banking industry ignored environmental sustainability practices during the COVID −19 period, negatively affecting their financial performance. It suggests that ignoring environmental sustainability practices will deteriorate financial performance following the COVID-19 period. These results have profound policy implications for practitioners and policymakers in the banking industry, which are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183654 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183654 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2213014_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Randolph Nsor-Ambala Author-X-Name-First: Randolph Author-X-Name-Last: Nsor-Ambala Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Title: The government revenue – expenditure nexus in Ghana: A wavelet analysis Abstract: This study explores the nexus among government revenue, government expenditure, and gross domestic product (GDP) across time and/or frequency using a Ghana dataset. It applies the wavelet approaches to investigate the lead-lag nexus, degree of integration and interdependency among public expenditure, public revenue, and gross domestic product (GDP) in the Ghanaian context. The data source is the World Bank and consists of yearly data from 1983 to 2021 yielding 39 observations. While public expenditure and revenue are closely related, and mostly positive throughout both time and frequency, there is a nexus between public spending and revenue at specific intervals and on a regular basis that was bi-directional, bi-causal, and interdependent. Between 1993 and 2021, a bi-directional nexus could be seen; however, most of the arrows pointed to the right. This shows that the co-movements between public spending and revenue are positive and behave similarly as a result. Accordingly, it is anticipated that increased levels of public spending will be met by higher levels of public spending, and vice versa. This is the first application of a wavelet approach to the study of this phenomenon with a Ghana dataset. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2213014 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213014 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196856_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Achille Barnabé Assouto Author-X-Name-First: Achille Barnabé Author-X-Name-Last: Assouto Author-Name: Dewanou Jean-Luc Houngbeme Author-X-Name-First: Dewanou Jean-Luc Author-X-Name-Last: Houngbeme Title: Access to credit and agricultural productivity: Evidence from maize producers in Benin Abstract: Access to agricultural credit is still a challenge in developing countries. The weakness of agricultural financing prevents producers from acquiring the modern technologies that are essential for the development of their activity. This paper aims to determine the impact of access to credit on agricultural productivity in Benin using alternative measures of productivity. To do this, we use the endogenous switching regression model to control for potential selection and unobserved heterogeneity issues associated with this impact analysis. The data used comes from the statistical databases of the National Agricultural Research Institute of Benin. The results show that the adoption of improved seeds, the geographic location, the area sown and member of peasant organization determine producers’ access to credit are factors that determine producers’ access to credit. Farmers’ access to credit generates an estimated gain of 40.07% and 31.97% respectively for production per hectare and production per FCFA invested. These results require a comprehensive and coherent public action. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196856 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196856 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Teshager Mazengia Author-X-Name-First: Teshager Author-X-Name-Last: Mazengia Author-Name: Misikir Bezabih Author-X-Name-First: Misikir Author-X-Name-Last: Bezabih Author-Name: Fasika Chekol Author-X-Name-First: Fasika Author-X-Name-Last: Chekol Title: Financial development and export diversification in Ethiopia: ARDL approach Abstract: The main aim of this study was to examine the effect of financial development on Ethiopia’s export diversification by applying annual time series data from the period 1980 to 2019. An ARDL estimation technique was employed. In the short run financial development, external debt, and real gross domestic product have a positive significant effect on export diversification. The coefficient of the error correction model is −0.7168 or 71.68% and it is statistically significant that a deviation from long-run equilibrium is not persistent rather it adjusts towards equilibrium at a speed of 71.68% per year. In the long run financial development, trade liberalization, external debt, and real gross domestic product have a positive significant effect on export performance and the bound test confirms the presence of long-run co-integration between variables. It is recommended that government and the national bank of Ethiopia can adjust both saving and lending interest rate policies, providing sufficient loan to export industries that diversify and shifts towards the export of manufactured goods would be indispensable, keeping track of international exchange rate adjustment, liberalization of external trade is crucial and the government of Ethiopia should allocate the borrowed money into high return investment and import substitute goods. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163079 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163079 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163079 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164669_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Adel M. Qatawneh Author-X-Name-First: Adel M. Author-X-Name-Last: Qatawneh Title: The role of organizational culture in supporting better accounting information systems outcomes Abstract: The current study aimed at exploring the role of organizational culture in supporting better AIS outcomes from perspective of financial and accounting managers within SMEs in Jordan during the fiscal year 2021–2022. Independent variables of study (organizational culture) included (Involvement, Adaptability, Mission, Consistency), while dependent variable was AIS outcomes within the organization. Quantitative approach was adopted and (318) questionnaire was distributed on financial and accounting managers from different SMEs in the Jordanian capital Amman, during the fiscal year 2021/2022. SPSS was employed so as to reach numerical results that can lead to explaining the phenomenon under study, and it was indicated that the main hypothesis was accepted “Organizational culture has a statistically positive influence on reaching better AIS outcomes within SMEs in Amman”. Among the sub-variables it was seen that involvement to be the most influential variable with an R = 0.772 followed directly by consistency scoring an R = .608, other variables were also seen to influential with lower degrees. Study Recommended carrying out a research that explores the influence of AIS outcomes and characteristics on organizational culture, in addition to the need from organizations to employ highly skilled and competent professionals and accountants to generate financial information and have appropriate academic qualifications. Further recommendations were presented later in the study Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164669 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164669 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2172809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kathryn A.A.O Assefuah Author-X-Name-First: Kathryn A.A.O Author-X-Name-Last: Assefuah Author-Name: Joshua Y. Abor Author-X-Name-First: Joshua Y. Author-X-Name-Last: Abor Author-Name: Saint Kuttu Author-X-Name-First: Saint Author-X-Name-Last: Kuttu Author-Name: Lordina Amoah Author-X-Name-First: Lordina Author-X-Name-Last: Amoah Title: Pension funds and capital market development in Africa: The role of institutional quality Abstract: This study investigates the effect of pension funds (PF) and institutional quality (IQ) on capital market development in 48 African countries. Using a system GMM regression, the study found that the interaction between PF and IQ significantly negatively affects capital market development. The results of the study suggest that PF in Africa contributes positively to overall financial development, and pension fund managers (PFM) seem to be focusing more on other financial market assets than capital markets. It was concluded that IQ may act as a risk management tool. It is therefore recommended that policies on strong IQ should be put in place to enable fund managers to meet their obligations towards the principal (contributor) during retirement. The study recommends that policymakers should integrate the capital markets by ensuring the cross-listing of some of the national exchanges and cross-border investment and also encourage investments in alternative asset classes. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2172809 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2172809 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2199552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Grace Awotayo-Ayeni Oyinkansola Author-X-Name-First: Grace Awotayo-Ayeni Author-X-Name-Last: Oyinkansola Author-Name: Cordelia Onyinyechi Omodero Author-X-Name-First: Cordelia Onyinyechi Author-X-Name-Last: Omodero Title: Impact of statutory audit and corporate taxation on profitability of selected listed companies in Nigeria Abstract: The study evaluates the impact of statutory audit and corporation tax charges on the profitability of Nigerian listed firms using data from 2016 to 2021. This study is highly inspired by corporate governance detects, which mandate corporations’ stewardship, civic, and transparency duties to stakeholders. However, there is a need to analyze the compliance rate and its implications for corporate performance. The research data for this study are derived from the yearly financial reports of the sampled businesses. The descriptive statistics, correlation matrix, Hausman test, fixed and random effects techniques are also used in the study to determine the suitability of the data collected for the study and to determine the relationship between the study variables as well as the influence of the predictor variables on the reliant factors. According to the findings, corporate tax costs and statutory audit have a considerable impact on business profitability but while the corporate tax impact positively on profitability, an immaterial negative effect on net asset base is established. The total assets employed as the control variable in this study does not have tangible effect on both the profit after tax and net asset base. In terms of the relationship, all variables have a large and very strong positive interconnection with one another except the total assets applied as the moderating variable. It is also established that the data used in this inquiry is entirely normally distributed and appropriate for analysis. According to the findings, organizations should maintain a consistent statutory audit and regularly comply with tax obligations to establish a stronger corporate image that would promote excellent financial performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2199552 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2199552 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163873_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Susan Pendame Author-X-Name-First: Susan Author-X-Name-Last: Pendame Author-Name: Joseph Oscar Akotey Author-X-Name-First: Joseph Oscar Author-X-Name-Last: Akotey Title: The effect of a moveable collateral registry on MSME access to finance: Evidence from Malawi Abstract: This study explores to answer the question: does the introduction of a moveable collateral registry lead to significant increase in access to credit to micro, small and medium-sized enterprises? We examine this question through a unique dataset collected from the moveable collateral registry and commercial banks in Malawi. The findings indicate that the introduction of the registry in Malawi has led to marginal increase in MSME’s access to bank credit. Real property, however, remains the preferred collateral and ability to repay the loan is the most important consideration amongst banks in assessing whether to lend to micro, small and medium-sized enterprises. We recommend the registry to integrate into its programs financial literacy training for MSMEs, and credit guarantee schemes to mitigate the perceived high risk associated with small enterprises. This will equip the MSMEs to keep proper accounts and enhance their access to the registry and bank credit. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163873 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163873 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2178121_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Waqas Shair Author-X-Name-First: Waqas Author-X-Name-Last: Shair Author-Name: Mumtaz Anwar Author-X-Name-First: Mumtaz Author-X-Name-Last: Anwar Title: Effect of internal and external remittances on expenditure inequality in Pakistan Abstract: The impact of remittances on household expenditure inequality is extensively documented in the development literature. Yet, it is relatively less focused on its effect at the household level. In the context of Pakistan, higher labour migration offers enough scope to examine the expenditure inequality across the remittance-receiving and non-receiving households. This study analyzes the effect of external and internal remittances on expenditure inequality of households in Pakistan. The study uses data from PSLM—HIES 2018–2019 survey. The quantile regression results suggest an unequal expenditure distribution across the household. The external remittance-receiving household is significantly higher in expenditure per capita across the distribution vis-à-vis internal migrant or without migrant households. The study concluded that the current level of endowment is higher in the external remittance-receiving household, which is a significant source of expenditure gap across the household categories. The aftermath of the mean decomposition model suggests that the relatively higher income of the external remittance-receiving household significantly contributes to the expenditure gap across the household categories. The findings from quantile decomposition suggest that external remittances cause more discrimination for the affluent household than the poor ones. The study’s implication suggests some policy measures to ease the access to international migration to improve the expenditure distribution. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2178121 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178121 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2178121 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cornelius Yao Azumah Author-X-Name-First: Cornelius Yao Author-X-Name-Last: Azumah Author-Name: Anthony Owusu-Ansah Author-X-Name-First: Anthony Author-X-Name-Last: Owusu-Ansah Author-Name: Godfred Amewu Author-X-Name-First: Godfred Author-X-Name-Last: Amewu Author-Name: Williams Ohemeng Author-X-Name-First: Williams Author-X-Name-Last: Ohemeng Title: The effect of banking sector reforms on interest rate spread: Evidence from Ghana Abstract: The wide interest rate spread has been a matter of concern for many developing economies. In Ghana, the perception is that the interest rate spread is too wide and that banks have linked it to various variables affecting them. This study examines the effect of banking sector reforms on bank interest rate spread in Ghana over the period 2008–2020, using an unbalanced panel-data dynamic-equation regression model. The findings reveal that bank size, profitability, gross domestic product, and inflation rate significantly influence Ghana’s bank interest rate spread. Results also suggest that these factors account for determining the interest rate spread in the universal banking industry in Ghana. The industry needs to mitigate the interest rate spread by improving the macroeconomic environment, address industry-specific issues, strengthen institutional systems, such as governance and supervision, and also continue to ensure stability in the political environment. The study provides valuable insights regarding the design and formulation of competitive policies and regulatory changes on interest rate regimes, to help promote the competitiveness of the universal banking industry in the country. Policymakers and regulators should emphasize enterprise risk management practices in Ghana’s universal banking industry to check credit risk and other risk forms. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175463 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175463 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175463 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2191448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Louis Bernard Tchekoumi Author-X-Name-First: Louis Bernard Author-X-Name-Last: Tchekoumi Author-Name: Patrick Danel Nya Author-X-Name-First: Patrick Danel Author-X-Name-Last: Nya Title: Remittances and economic growth: What lessons for the CEMAC zone? Abstract: To the question of what lessons can be drawn from the relationship between migrant remittances and economic growth, this article provides an answer based on econometric evidence, using data from a sample of six countries belonging to the CEMAC zone, over the period 1990–2018. Using the PSTR2 and GMM3 models, we obtain two main results. First, there is a non-linear relationship between migrant remittances and economic growth that translates into the existence of two regimes, thus, confirming the existence of a threshold effect. Second, under the first regime, remittances have a positive and significant impact on economic growth, while under the second regime this impact is negative. The results suggest that the non-linear relationship between remittances and economic growth depends mainly on trade openness, private investment and political stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2191448 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191448 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2191448 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2185344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Richard Kwasi Bannor Author-X-Name-First: Richard Author-X-Name-Last: Kwasi Bannor Author-Name: George Osei Author-X-Name-First: George Author-X-Name-Last: Osei Author-Name: Samuel Kwabena Chaa Kyire Author-X-Name-First: Samuel Kwabena Chaa Author-X-Name-Last: Kyire Title: Meeting European exporting certification standards as a sustainable marketing choice among mango farmers in Ghana Abstract: Amidst the prevalence of certification and pursuit of global markets, there is a dearth of studies on compliance with EU certification standards and market outlet preference among mango farmers in Ghana. Therefore, this study sought to determine factors influencing mango farmers to produce to meet European standards and certification, and the marketing outlet choice of mango farmers in the Bono and Bono East regions of Ghana. A multistage sampling technique was employed to select 300 mango farmers. Data gathered were analysed using multinomial and binary probit regressions. Empirical results show that gender, age, farming experience, and access to the ready market are significant predictors of a farmer’s choice of the local market. On the other hand, farming experience, ready market, the quantity of harvest, fruit quality, market assurance, and good agronomic practices (GAP) significantly predict farmers’ preference for retail. The level of education, farm size, GAP, annual farm income, ready market, training, and access to credit are essential determinants of a farmer’s decision to practise EU standards and certification. Given the findings, it is recommended that farmers who sell and are likely to sell to processors should be targeted for pieces of training on EU market export as they are more likely to be convinced and already involved in relevant practices for such exports Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2185344 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2185344 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Beyan Ahmed Author-X-Name-First: Beyan Author-X-Name-Last: Ahmed Author-Name: Jema Haji Author-X-Name-First: Jema Author-X-Name-Last: Haji Author-Name: Mengistu Ketema Author-X-Name-First: Mengistu Author-X-Name-Last: Ketema Author-Name: Kedir Jemal Author-X-Name-First: Kedir Author-X-Name-Last: Jemal Title: Impacts and adaptation extents of climate smart agricultural practices among smallholder farmers of Ethiopia: Implication to food and nutrition security Abstract: The integrated use of various levels of climate change adaptation practices is a means of increasing farm productivity to meet the food demand of the world’s growing population without harming the environment. Both primary and secondary data were used. In the 2020/21 production year, primary data was collected from 461 sample households of East Hararghe Zone, Oromia, Ethiopia, for the study. For data analysis, the study employed descriptive statistics and multinomial endogenous switching econometric model. Gender, education, extension, livestock holding, cooperatives, market information, soil fertility, farm land slopes, training on land management, climate change information, training, perception of land degradation, climate change perception, and weather road distance are estimated to have a significant influence on the probability of adopting different levels of climate smart practices. According to the impact evaluation results, adopting low levels of climate smart practices increases households’ food and nutrition security by 28% and 4.3%, respectively. Adopting medium-level climate-smart practices boosts food and nutrition security by 43% and 20%, respectively. Adopting high and higher levels of climate smart practices increases food and nutrition security by 56% and 19%, respectively, over very low adopter households. As a result, policymakers should place a premium on climate change adaptation agricultural practices in order to improve rural households’ livelihoods. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210911 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210911 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2161771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mekonnen Kumlachew Yitayaw Author-X-Name-First: Mekonnen Kumlachew Author-X-Name-Last: Yitayaw Author-Name: Yohannes Kefale Mogess Author-X-Name-First: Yohannes Kefale Author-X-Name-Last: Mogess Author-Name: Habtamu Legese Feyisa Author-X-Name-First: Habtamu Legese Author-X-Name-Last: Feyisa Author-Name: Wondmagegn Biru Mamo Author-X-Name-First: Wondmagegn Biru Author-X-Name-Last: Mamo Author-Name: Salah Mohammed Abdulahi Author-X-Name-First: Salah Mohammed Author-X-Name-Last: Abdulahi Title: Determinants of bank stability in Ethiopia: A two-step system GMM estimation Abstract: Studies on the determinants of bank stability conclude that bank-specific and external factors affect bank financial stability. However, most of these studies are conducted in developed countries, where Banks, on average, are richer and have more liquidity. This study evaluates the effect of bank-specific and external factors on Bank Stability in a least developed country—Ethiopia using commercial banks data from 2014 to 2020. By using Two-Step System Generalized Method of Moments (GMM) estimation, we find that bank lending rate, tangibility, GDP growth rate, control of corruption, and rule of law effectiveness stabilize bank financial stability. The effect is more pronounced for Banks with high market share of mobilized capital. On the other hand, bank concentration and bank efficiency reduce bank financial stability by about 2.51 and 0.97 units, respectively. Furthermore, the effect of historical level of bank stability has a positive and significant effect on current level of bank financial stability. The implication of this result is vital for policy-makers, as it explicitly suggests that keeping bank stability today has a vital role in achieving higher bank stability in the future. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2161771 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2161771 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164556_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nur Fadjrih Asyik Author-X-Name-First: Nur Fadjrih Author-X-Name-Last: Asyik Author-Name:   Muchlis Author-X-Name-First:   Author-X-Name-Last: Muchlis Author-Name:   Triyonowati Author-X-Name-First:   Author-X-Name-Last: Triyonowati Author-Name:   Rusdiyanto Author-X-Name-First:   Author-X-Name-Last: Rusdiyanto Author-Name: Ignatia Martha Hendrati Author-X-Name-First: Ignatia Martha Author-X-Name-Last: Hendrati Author-Name: Dian Anita Nuswantara Author-X-Name-First: Dian Anita Author-X-Name-Last: Nuswantara Author-Name:   Suyanto Author-X-Name-First:   Author-X-Name-Last: Suyanto Title: The effect of male CEO masculinity face on earnings management: Evidence from Indonesia Abstract: This study aims to prove the consistency of Agency Theory, Behavioral Consistency Theory and Upper Echelon Theory as a solution to explain the influence of male CEO masculinity on earnings management. This study uses a quantitative approach with a population and research sample using companies on the Indonesia Stock Exchange in 2016–2021. The study collected images of faces identified as male CEOs from data from the Indonesia Stock Exchange website and company websites and using Google searches. The data analysis method in this study uses Ordinary Least Square Regression, Fixed Effects, Random Effects, Robust by using Stata Software which is one of the regression solving procedures that has a high level of flexibility in research that connects theories, concepts and data that can be carried out on research variable. These findings explain that the higher the masculinity of the male CEO’s face has an impact on increasing earnings management, and vice versa, the lower the masculinity of the male CEO’s face has an impact on the decrease in earnings management. The empirical findings have implications for management as a policy maker regarding the face of male masculinity which has an impact on earnings management policies, so that these empirical findings can be used by corporate and government management. The empirical findings provide evidence in the field of behavioral accounting by looking at the face of male masculinity as determinant of company earnings management. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164556 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164556 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164556 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2191459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bui Thanh Khoa Author-X-Name-First: Bui Thanh Author-X-Name-Last: Khoa Author-Name: Tran Trong Huynh Author-X-Name-First: Tran Trong Author-X-Name-Last: Huynh Title: The value premium and uncertainty: An approach by support vector regression algorithm Abstract: Risk premium plays an important role in stock investing. Experiments have shown that value stocks typically have a higher average return than growth stocks; however, this effect persists indefinitely, even disappearing in some stages. Some studies suggested high volatility in the series of returns, broken structures, market volatility, or the impact of financial crises. This study aimed to build the uncertainty index and control it in the regression analysis model to solve the limitations above. The empirical analysis in Ho Chi Minh Stock Exchange (HOSE) showed that a value premium exists, and value stocks have a higher average return than growth stocks due to the higher overall risk. Furthermore, this study combined the Support Vector Regression (SVR) algorithm with the risk premium theoretical framework for the forecasting model; consequently, it is the most efficient model. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2191459 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2191459 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175471_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hoang Van Hai Author-X-Name-First: Hoang Van Author-X-Name-Last: Hai Title: MAX, lottery-type stocks, and the cross-section of stock returns: Evidence from the Chinese stock market Abstract: This study empirically investigates a relationship between MAX and lottery-type stocks in the Chinese stock markets. We find that the lottery-type stocks, which are preferred for lottery demand of investors, are negatively priced in the Chinese market. Moreover, the MAX effect as a proxy for lottery stock is not strongly exhibited as the lottery behavior in the Chinese stock market. Our results show that the higher MAX stocks in the lowest price stocks are stronger than those in the highest price ones. This can explain why the MAX phenomenon of the Chinese market is different from that in the developed market regarding the candidate of the IVOL puzzle explanation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175471 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175471 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tafirenyika Sunde Author-X-Name-First: Tafirenyika Author-X-Name-Last: Sunde Title: The impact of foreign direct investment on Namibia’s economic growth: A time series investigation Abstract: The current study investigates the impact of foreign direct investment on the growth of Namibia’s economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic investment, government consumption expenditure, human capital, a proxy for economic stability, and return on investment are responsible for Namibia’s economic growth. The article confirms the FDI-led growth and the Bhagwati hypotheses for Namibia as shown by the FDI and the interactive variable of FDI and trade openness, respectively. To reap the full benefits of FDI on economic growth in Namibia, the government must focus on improving physical infrastructure and the quality of human resources. It should also facilitate the development of an entrepreneurship culture, create a stable macroeconomic environment, and improve conditions for productive investments to accelerate economic growth and development. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210857 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210857 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Joseph Chukwudi Odionye Author-X-Name-First: Joseph Chukwudi Author-X-Name-Last: Odionye Author-Name: Ethelbert Ukachukwu Ojiaku Author-X-Name-First: Ethelbert Ukachukwu Author-X-Name-Last: Ojiaku Author-Name: Chiwuike N. Uba Author-X-Name-First: Chiwuike N. Author-X-Name-Last: Uba Title: Impact of interest rate differential, exchange rate changes and political stability on Foreign capital inflow in Nigeria: Discrete threshold regression model Abstract: Lack of investable capital has slowed down the development process in many developing nations, including Nigeria, and this has sparked empirical research on the factors affecting foreign capital flow. Therefore, the purpose of this study was to investigate the effects of interest rate differential, exchange rate changes, and political stability on the entrance of foreign capital into Nigeria between 1981 and 2021. To investigate the impact of the factors on foreign capital inflow in regimes with low and high interest rate differentials, the study used a discrete threshold regression model (DTRM). The study discovered an interest rate differential threshold value of 3.68 percent, indicating that an interest rate differential high and over the predefined threshold promotes a favorable and considerable inflow of foreign capital into the nation. Additionally, the country’s capital inflow is influenced by political stability and exchange rate fluctuations. The implication is that investors evaluate a country’s IRD in relation to other risk factors (political and macroeconomic) and will only invest if the IRD is higher than3.68 percent since it will balance out other opportunity costs at home and risk factors in the receiving country’s economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203590 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203590 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2207265_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Samuel Nduati Kariuki Author-X-Name-First: Samuel Author-X-Name-Last: Nduati Kariuki Title: Corporate governance mechanisms and efficiency of insurance firms: evidence from an emerging market Abstract: The paper assessed linkage amongst governance mechanisms and efficiency of insurers in Kenya over 8 year period from 2013 to 2020. The study estimated the efficiency of insurers using DEA approach in light of previous literature during the first stage. During the second stage, the bias-corrected efficiency scores were regressed against corporate governance (CG) proxies and control variables using SW (2007) approach on a sample of 53 insurers. Using this two-stage, bootstrapping SW approach, the study documents that the Kenyan insurers are technically inefficient. Overall, the paper presents evidence showing that CG variables influence technical efficiency of insurers in Kenya. Precisely, board independence, gender diversity and audit quality positively and significantly impact Kenyan insurers’ technical efficiency. Further, the paper finds that size of the board negatively affect Kenyan insurers’ technical efficiency. However, the study established insignificant relationship between CEO duality, intensity of board activities and technical efficiency. The paper makes contribution to the bourgeoning reservoir of empirical works on the insurers’ CG-efficiency nexus from an emerging market perspective. Particularly, the article offers empirical insights on some of the least studied CG proxies such as gender diversity, quality of audit and intensity of board activities. The research outcomes also have practical implications for regulators, academia, insurers, government policy makers, practitioners, shareholders and consumers of insurance products by raising their awareness on the influence of CG proxies on the efficiency of the insurers. This is especially beneficial in countries that are pursuing CG and efficiency policy reforms. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2207265 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2207265 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2184447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Abdelkaf Elias Author-X-Name-First: Abdelkaf Author-X-Name-Last: Elias Author-Name: Amsalu Dachito Author-X-Name-First: Amsalu Author-X-Name-Last: Dachito Author-Name: Shabu Abdulbari Author-X-Name-First: Shabu Author-X-Name-Last: Abdulbari Title: The effects of currency devaluation on Ethiopia’s major export commodities: The case of coffee and khat: Evidence from the vector error correction model and the Johansen co-integration test Abstract: Devaluation of the currency has been stipulated and utilized increasingly as a stabilization device in developing countries. The Ethiopian government employed a devaluation policy to improve the export performance of the country. However, various literature demonstrates that the devaluation of the Ethiopian Birr (ETB) has an ambiguous effect on the country’s export performance. Therefore, the prime objective of the study was to investigate the effect of domestic currency devaluation on Ethiopian major primary export commodities by employing time series data for the period 1987 to 2020. With the help of Johansen’s co-integration and vector error correction modelling, the impact of the devaluation of the real effective exchange rate on major export commodities was assessed in the long run as well as in the short run. The study found that the devaluation of the real effective exchange rate has a positive and significant relationship with the values of major export commodities in the long run. This implies that the decrease in the value of the domestic currency promotes exports in the long run. Other variables like foreign direct investment, with an expected positive sign, and real gross domestic product (with a negative sign), are also found to be statistically significant in explaining exports in the long run. The findings of this paper suggest that policy intervention in the form of devaluing the domestic currency could be effective in improving export performance given that the effect of inflation on output is controlled. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2184447 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2184447 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2184447 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2197367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Thanh Cuong Dang Author-X-Name-First: Thanh Cuong Author-X-Name-Last: Dang Author-Name: Thi Thao Banh Author-X-Name-First: Thi Thao Author-X-Name-Last: Banh Author-Name: Thi Hang Trinh Author-X-Name-First: Thi Hang Author-X-Name-Last: Trinh Author-Name: Thi Viet Hoang Author-X-Name-First: Thi Viet Author-X-Name-Last: Hoang Author-Name: Thi Ngoc Han Doan Author-X-Name-First: Thi Ngoc Han Author-X-Name-Last: Doan Title: Territorial Marketing Impacts on Foreign Direct Investment Attraction(Empirical Evidence in Nghe An Province, Vietnam) Abstract: FDI and territorial marketing are fields of interest and research by many scientists and managers. However, this is still a new field of science in Vietnam, both academically and practically. The awareness of building a local image to investors, especially foreign investors, is still limited. This has had a significant impact on attracting FDI into many provinces of Vietnam in general and Nghe An province in particular. Although Nghe An has issued and implemented many policies to attract FDI, FDI attraction results are not commensurate with the potential and position of the province. In this study, the author conducted a survey of foreign investors who made surveys to invest in or implemented FDI projects in Nghe An. Data is primary data which is collected from 160 foreign investors who invested or did investing survey, then processed by exploratory factor analysis (EFA) and multiple regression to determine the territorial marketing factors affecting the investment decisions of foreign direct investors in Nghe An. Research results have shown that 6 territorial marketing factors have a positive impact on the investment decision of foreign direct investors, this will be an important foundation to propose solutions for territorial marketing to attract FDI in Nghe An in the next coming time. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2197367 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2197367 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Saibal Ghosh Author-X-Name-First: Saibal Author-X-Name-Last: Ghosh Title: Religion, caste and access to credit by SMEs: Is there a link? Abstract: Using unit-level data on the entire population of registered manufacturing SMEs in 2007 for India, we explore the impact of religiosity on their access to finance. The findings indicate that certain categories of religion, such as Hindus and Sikhs, are less likely to have access to institutional credit, after accounting for other relevant factors. The disaggregated analysis suggests that these results differ across key characteristics such as SME ownership and gender and caste. In addition, the results also show SMEs for the aforesaid religious categories are less likely to use institutional credit. Therefore, our findings underscore the role and relevance of religion in influencing SMEs access to credit for a large emerging economy whose religious demography differs significantly from Western democracies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160126 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160126 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2178124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R. Dimas Bagas Herlambang Author-X-Name-First: R. Dimas Author-X-Name-Last: Bagas Herlambang Author-Name: Rudi Purwono Author-X-Name-First: Rudi Author-X-Name-Last: Purwono Author-Name:   Rumayya Author-X-Name-First:   Author-X-Name-Last: Rumayya Title: Testing the consistency of asymmetric interest rate pass-through: The case of Indonesia Abstract: This paper investigates the consistency of asymmetric interest rate past-trough (IRPT) using a nonlinear autoregressive distributed lag framework. Superior to the previous studies, this study exploits the historical profile of Indonesia to enrich the analysis. Asian Financial Crisis (AFC) which crashed the country in 1998 and several monetary policy changes implemented by the government offer different perspectives to grasp IRPT. The results of this study indicate that there is a consistent upward rigidity in the long-run pass-through in Indonesia. Particularly during the AFC, it is well proven that the asymmetric behavior is fickle whether disappear or bounce back to the downward rigidity. This finding demonstrates the importance of a rolling-window approach in understanding IRPT. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2178124 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2178124 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Quang Luu Thu Author-X-Name-First: Quang Author-X-Name-Last: Luu Thu Title: Impact of earning management and business strategy on financial distress risk of Vietnamese companies Abstract: Many Vietnamese companies’ net incomes have increased significantly in recent years as a result of creative competitive strategies, but many of them are being forced to delist due to persistent losses and manipulative earnings. In this paper, we are the first to investigate the simultaneous impact of business strategy and earning management on the risk of financial distress. The sample for the study includes information from 601 companies that are listed on the Ho Chi Minh City Stock Exchange between 2010 and 2021. The finding indicates that there is a high risk of financial distress for companies that manipulate earnings by increasing discretionary accruals value. However, if firms manipulate earnings through real operations, the risk of financial distress is reduced. Firms will see a significant improvement in their financial performance if they adopt a key differentiation or low-cost leadership strategy that gives them a competitive advantage in the same industry. The firm size, leverage, firm loss, and liquidity ratio are also the main factors that influence financial distress risk. These results are robust by using alternative proxies of financial distress risk (O and ZM score) to control for potential endogeneity. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183657 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183657 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2173123_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lubna Khalaf Author-X-Name-First: Lubna Author-X-Name-Last: Khalaf Author-Name: Rimel Kouki Author-X-Name-First: Rimel Author-X-Name-Last: Kouki Author-Name: Esam-Aldin M. Algebaly Author-X-Name-First: Esam-Aldin M. Author-X-Name-Last: Algebaly Title: The bidirectional relationship between MFIs’ financial and social performance: Sustainability and outreach perspective Abstract: This paper examines the bidirectional relationship between sustainability and outreach of microfinance institutions (MFIs) in the MENA region, using unbalanced panel data regression during the period from 1999 to 2018. The simultaneous equation model (SEM) is used based on the 2SLS regression considering endogeneity problem between sustainability and outreach. Two main systems are developed based on SEM; the first relates sustainability with breadth of outreach, while the second includes sustainability and depth of outreach. Results state that sustainability and outreach are complementary objectives, and the direction of their relationship is from outreach to sustainability. This finding is tested and supported using various robustness checks, namely: excluding firms with few data, using other methods to estimate 2SLS regression model, and examining the impact of sustainability on outreach based on their indices developed based on the TOPSIS method. The study concludes with some suggestions for future research in this field. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2173123 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2173123 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164565_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mustapha Immurana Author-X-Name-First: Mustapha Author-X-Name-Last: Immurana Author-Name: Abdul-Aziz Iddrisu Author-X-Name-First: Abdul-Aziz Author-X-Name-Last: Iddrisu Author-Name: Samuel Owusu Author-X-Name-First: Samuel Author-X-Name-Last: Owusu Author-Name: Hadrat Mohammed Yusif Author-X-Name-First: Hadrat Mohammed Author-X-Name-Last: Yusif Title: Foreign Direct Investment and child health outcomes in Africa Abstract: While several studies have examined the effect of Foreign Direct Investment (FDI) on economic development indicators, most of these studies focused on economic growth with very little attention paid to health outcomes. Moreover, among the studies that took account of health outcomes, none of them investigated the effect of FDI on child health outcomes across a sample of African countries. However, focusing on African countries is very important because sub-Saharan Africa (SSA) has the highest rate of child mortality in the world. This study, therefore, investigates the effect of FDI on child health outcomes in 39 African countries from 1980 to 2018. Neonatal and infant mortality rates are used to proxy child health outcomes. The baseline estimation technique employed is the Fixed Effects (FE) regression. However, to deal with potential endogeneity, we employ the system Generalised Method of Moments (GMM) regression as the robustness estimation technique. Our findings show that, FDI improves child health outcomes, especially through economic growth after controlling for endogeneity. Thus, in African governments’ quest to reduce child mortality, a major useful strategy could be attracting more FDI inflows. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164565 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164565 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164409_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yerik Bukatov Author-X-Name-First: Yerik Author-X-Name-Last: Bukatov Author-Name: Galiya Gimranova Author-X-Name-First: Galiya Author-X-Name-Last: Gimranova Title: Government measures to address out-of-pocket health expense in Kazakhstan Abstract: Despite the fact that healthcare spending in Kazakhstan increased annually from 2011 to 2020, the country’s healthcare system is seriously underfunded. For this reason, household spending in Kazakhstan plays a significant role in overall health spending. According to WHO, if the share of private spending in total health care spending does not exceed 20%, the health care system can be considered sustainable. The risk of a decrease in the purchasing power of the population increases in cases where this indicator is exceeded, which in turn leads to negative consequences for the population itself. Therefore, the Government of Kazakhstan needs to take decisive measures to reduce the “out-of-pocket expense” of the population for health care, especially the cost of purchasing medicines. Effective government policy, timely reforms and mutually beneficial cooperation with pharmaceutical market actors can reduce the level of “out-of-pocket expenses” of the population for health care to generally accepted world indicators. Based on this, the study of different views on solving problems related to public and private spending in health care, price regulation and building an effective drug pricing system is an important condition for building an effective health care system. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164409 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164409 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163078_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sandra Alves Author-X-Name-First: Sandra Author-X-Name-Last: Alves Title: The impact of managerial ownership on audit fees: Evidence from Portugal and Spain Abstract: This study examines the impact of managerial ownership on audit fees in a context of concentrated ownership and poor investor protection. Using samples of Portuguese and Spanish listed companies for the period 2010–2021, the results of this research suggest that there is a non-linear relationship between managerial ownership and audit fee which corresponds to a pattern of “alignment-entrenchment-alignment”. In Portugal and Spain, the convergence of interest effect dominates the entrenchment effect in the low and high ranges of managerial ownership, leading to the conclusion that a policy of providing management with amounts of equity within these ranges of managerial ownership should reduce agency costs and decrease audit fees. In contrast, in Spain, the entrenchment effect dominates the convergence of interest effect in the intermediate range of managerial ownership, which have the effect of increasing audit fees. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163078 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163078 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kyle Rechard Author-X-Name-First: Kyle Author-X-Name-Last: Rechard Author-Name: Narendra Raj Regmi Author-X-Name-First: Narendra Raj Author-X-Name-Last: Regmi Title: Greenspan’s adherence to the Taylor rule: examining Federal Reserve chairmen policy regimes and deviations from the Taylor rule Abstract: This paper examines the relationship between Federal Reserve policy and the Taylor rule, a commonly used model for guiding monetary policy. The study analyzes the deviation of the actual Federal Funds Rate from the Taylor Rule model during distinct structural changes, using real-time macroeconomic data available to the Fed at the time of their interest rate decision. The research focuses on whether former Fed chair Alan Greenspan’s policies from 2003 to 2006, which have been linked to the housing bubble, were deviant from the Taylor Rule. The findings show that there isn’t sufficient statistical evidence to support this claim, and a machine learning text analysis of the Federal Open Market Committee transcripts confirms the presence of only one regime during this period. These results contribute to the existing literature on monetary policy and its impact on the economy, providing valuable insights into the relationship between Federal Reserve policy and the Taylor Rule. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209951 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209951 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2216036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name:   Feryanto Author-X-Name-First:   Author-X-Name-Last: Feryanto Author-Name:   Harianto Author-X-Name-First:   Author-X-Name-Last: Harianto Author-Name:   Herawati Author-X-Name-First:   Author-X-Name-Last: Herawati Title: Retail trader pricing behavior in the traditional rice market: A micro view for curbing inflation Abstract: The price of rice at the retail level affects consumer welfare and influences inflation. The research objective was to study rice retail trader pricing behavior in traditional markets. This study employed an econometric model consisting of six equations of price spread between the retail market level and wholesale level of different rice qualities and grades. To overcome endogeneity problems due to the use of several equations that could cause potential bias, the simultaneous method with the 3SLS approach was deemed appropriate to use to obtain consistent and efficient coefficient estimates. The results show that, by examining the behavior of price spreads in the model, it can be deduced that rice retailers in the traditional market applied a price stabilization strategy. A lower price spread responded to an increase in price at the wholesale level. Rice retailers in traditional markets also implemented a price-averaging strategy. The results of this study have important policy implications for reducing food price volatility and its impact on inflation. That is, a price policy aimed at price stabilization at the retail level, as in this study, will be more effective if the price stabilization is focused on the wholesale level. However, if the pricing policy continues to be applied at the retail level, it must consider the relationships between different rice qualities and prices. This study also highlights the need for more intensive research on pricing behavior at the wholesale level. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2216036 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2216036 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2216036 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2192454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mehdi Abid Author-X-Name-First: Mehdi Author-X-Name-Last: Abid Author-Name: Mohammed Benmeriem Author-X-Name-First: Mohammed Author-X-Name-Last: Benmeriem Author-Name: Zouheyr Gheraia Author-X-Name-First: Zouheyr Author-X-Name-Last: Gheraia Author-Name: Habib Sekrafi Author-X-Name-First: Habib Author-X-Name-Last: Sekrafi Author-Name: Hanane Abdelli Author-X-Name-First: Hanane Author-X-Name-Last: Abdelli Author-Name: Abdelhadi Meddah Author-X-Name-First: Abdelhadi Author-X-Name-Last: Meddah Title: Asymmetric effects of economy on unemployment in Algeria: Evidence from a nonlinear ARDL approach Abstract: This paper aims to establish the asymmetric effects in the short and long term of cyclical output on Algeria’s unemployment rate during the period 1970–2018. To achieve this objective, the “Okun” relation was applied, relying on a NARDL model methodology in the estimation. The main results of this study are summarized as follows. In the long run, we concluded that unemployment gap in Algeria responds in the same proportion to both recession and economic expansion (with a different signal), where the effect size reached 0,02. This shows a positive and significant effect of the unemployment gap for the last period on the current unemployment gap (where the impact size reached 0,37). In the short run, we concluded that the unemployment gap responds to recession only but does not respond to recovery. Finally, through the analysis of the dynamic multiplier effects, we concluded that the unemployment gap responds slowly to negative changes compared to positive changes in the output gap at the beginning of the period, but they converge in the long term (after 7–8 years). From a policy perspective, it follows that an increase in economic growth will not only have the desired result of reducing the overall unemployment rate, but will also have the distributional effect of reducing youth unemployment. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2192454 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2192454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2192454 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2181603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mohamed Rachidi Author-X-Name-First: Mohamed Author-X-Name-Last: Rachidi Author-Name: Abdeslam El Moudden Author-X-Name-First: Abdeslam Author-X-Name-Last: El Moudden Title: More on the profit shifting costs function. Analysis of the literature and other modelling approaches Abstract: In this paper, we study another approach to the profit shifting costs function of multinational profit shifting. First, we describe the modelling approaches of such costs functions and provide a synthesized analysis. More precisely, we investigate the involved resource costs that multinational firms incur through a tax-motivated reallocation of profit across tax jurisdictions. Second, we set up a simple theoretical model of a representative multinational firm within which we conceptualize our new cost function. We expand the literature by including a relationship between profit shifting costs and tax uncertainty. Furthermore, we describe the costs split, the property of our costs function and we express its parameters. Finally, we discuss our results in conjunction with the literature, emphasizing that profit shifting costs and tax uncertainty cause more concerns for developing countries than advanced economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2181603 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2181603 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Haftu Girmay Giday Author-X-Name-First: Haftu Girmay Author-X-Name-Last: Giday Title: Financial inclusion and its demand-side determinants: Evidence from Ethiopia Abstract: Financial inclusion is one of the development priorities of the Ethiopian Government. However, factors, which might affect it are not explored adequately with appropriate methods. To examine the relationship between financial inclusion and its demand-side determinants, we applied a simple probit model and two probit models with sample selection to the 2018/19 Ethiopia Socioeconomic Survey (ESS4). Our simple probit model estimation results show that male, older, non-Muslim, married, more educated, richest, mobile users or people who are aware of how to open a bank account are more likely to have a formal account than their counterparts. However, being from a rural area or from a larger household size reduces the likelihood of having an account. Results from the probit selection model show that rural residents, employed, richer people, or people who are out of labor force are more likely to use their account to save money than their counterparts. Furthermore, the third model shows that being non-Muslim, married, widowed, or poorer reduces the likelihood of account use than their counterparts. Thus, policies should target the most vulnerable groups of the society. Especially, rural households, women, the Muslim population, the poor, less educated people, and the young should be the focus of financial inclusion endeavors of the Government. Parallel to these policy measures, awareness of opening bank account and financial education programs should be promoted. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186031 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186031 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Juniours Marire Author-X-Name-First: Juniours Author-X-Name-Last: Marire Title: Structure of R&D capital expenditure and national total factor productivity Abstract: This paper examines the relationship between the structure of R&D fixed capital spending, measured as the ratio of the private sector to public sector R&D capital expenditure, and national total factor productivity. It employs South African data for the period 1965 to 2019. This study employs the non-linear distributed lag modelling framework to cater for non-linearities in the relationship. The findings, first, suggest that the ratio of private sector to public sector R&D capital spending has a positive effect on total factor productivity. Second, the structure of R&D capital spending has large asymmetric effects on national total factor productivity, with negative changes dominating positive changes. Negative changes in the structure of R&D capital spending negatively influence total factor productivity, but positive changes have positive effects. Both in the short run and the long run, cumulative multipliers indicate that negative changes in the structure of R&D capital spending dominate positive changes by a very large margin. The findings imply that the private sector must become more dominant than the public sector in R&D capital spending in the national system of innovation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223423 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223423 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223423 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Safia Abdo Ali Al-Begali Author-X-Name-First: Safia Abdo Ali Author-X-Name-Last: Al-Begali Author-Name: Lian Kee Phua Author-X-Name-First: Lian Kee Author-X-Name-Last: Phua Title: Earnings management in emerging markets: The COVID-19 and family ownership Abstract: This paper investigates the impact of COVID-19 and family ownership on earnings management (EM), both accruals (DA) and real (REM). This research also seeks to determine whether there is a substitutional or complementary relationship between DA and REM.The study’s sample includes firms listed on the Jordanian market after excluding the banking and insurance sectors from 2017 to 2021. It used feasible generalised least squares estimation (FGLS) regressions to achieve the study’s goals. The results reveal a negative and significant correlation between COVID-19 and discretionary accruals (DA), which indicates that COVID-19 restricts DA in Jordanian companies. However, the outcome shows a significant positive relationship between COVID-19 and REM, which indicates that COVID-19 encourages Jordanian companies to practice REM. According to the entrenchment theory, the majority shareholders in a family-owned business environment seek to expropriate the rights of the minority shareholders. Consistent with this theory, the result documents a significant positive correlation between family ownership and DA, indicating that high family ownership manages earnings through accruals. However, this study finds a significant negative relationship between family ownership and REM, indicating that a high concentration of family ownership restricts the practice of REM. This finding aligns with the alignment theory, which argues that the interests of minority and majority shareholders are compatible. These findings indicate a lack of accuracy and reliability in the financial reports in the Jordanian industrial and service enterprises due to the practicing DA by the family-owned companies as well as the outbreak of COVID-19 that led to a rise in the practice of REM. Finally, the findings document that Jordanian companies use REM and DA as complementary tools to maximise their impact on earnings. The findings of earlier research on EM who have used Jordanian-listed companies might not be beneficial in light of the current COVID-19 pandemic. Thus, the current study is one of the first empirical attempts to examine the impact of the COVID-19 pandemic and family ownership on the quality of financial reporting using both EM (DA and REM) in the context of the Jordanian market. The current study’s findings are an important contribution to the literature on how family ownership affects the quality of financial reporting (QFR) and how COVID-19 affects the practice of EM. Therefore, the findings of this study can provide all stakeholders with information regarding the QFR in family-controlled companies and explore the accounting implications of the pandemic in order to assist all interested parties, particularly those in developing markets, in making more informed decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220246 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220246 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220246 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2181786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Suliyat Omolade Jimoh Author-X-Name-First: Suliyat Omolade Author-X-Name-Last: Jimoh Author-Name: Olayinka Isiaka Baruwa Author-X-Name-First: Olayinka Isiaka Author-X-Name-Last: Baruwa Author-Name: Adetomiwa Kolapo Author-X-Name-First: Adetomiwa Author-X-Name-Last: Kolapo Title: Analysis of profit efficiency of smallholder beef cattle farms in South-West Nigeria Abstract: The study was carried out to analyze the profit efficiency in beef production in South West, Nigeria. These were with a view to improving beef cattle production to meet its increasing demand and income generated from it for producers. Multistage sampling techniques were used to select respondents used for the study. Primary data were collected with the aid of a well-structured questionnaire. Budgetary analysis and stochastic production frontier were used to analyze the data collected. The result of the study shows that total revenue generated was ₦1,879,928.11 while the Gross margin and Net return to management were ₦835,443.63 and ₦726,295.65, respectively. In addition, the Profit efficiency average is 62.2% ± 22.52. Beef cattle production on the average was operated at two-thirds of the profit efficiency frontier. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2181786 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2181786 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Juniarti Juniarti Author-X-Name-First: Juniarti Author-X-Name-Last: Juniarti Author-Name: Dea Devina Theja Author-X-Name-First: Dea Author-X-Name-Last: Devina Theja Author-Name: Novita Tenoyo Author-X-Name-First: Novita Author-X-Name-Last: Tenoyo Author-Name: Alan Darmasaputra Author-X-Name-First: Alan Author-X-Name-Last: Darmasaputra Title: Does the market respond differently to the timing of the announcement of corporate actions? Abstract: This study aims to expand research evidence related to investor responses to the timing of corporate action announcements. In contrast to previous studies, this study distinguishes corporate action announcements during the development and realization stage. Furthermore, we will also distinguish the types of corporate actions, consisting of new products and systems and technology innovation. Investor’s reactions are measured using cumulative abnormal returns (CAR) with (−5,+5) and (−2,+2) event windows. The Sample is based on 257 corporate action announcements in the automobile manufacturing firms in East Asia from 2017 to 2021. This research found a significant difference in CAR between the development and realization of announcements. Furthermore, it indicates that investors in East Asia react more positively when companies announce the realization of a new product and system and technology innovation rather than when it is still under the planning or development process. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203986 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203986 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203986 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vismaya Gangadharan Author-X-Name-First: Vismaya Author-X-Name-Last: Gangadharan Author-Name: Lakshmi Padmakumari Author-X-Name-First: Lakshmi Author-X-Name-Last: Padmakumari Title: Annual report readability and stock return synchronicity: Evidence from India Abstract: This study investigates the relationship between the comprehensibility of a firm’s annual report and its stock return synchronicity in the Indian market. The study employs the readability of annual reports as a measure for the cost of information processing. The findings suggest that firms with more readable annual reports tend to display higher stock return synchronicity. This relationship implies that more legible financial disclosures are associated with more efficient and transparent capital markets. Additionally, the research discovered that the relationship between readability and stock return synchronicity is particularly pronounced for companies with high institutional investment, high analyst coverage, and lower information asymmetry. The sample size of the study encompasses NSE 500 companies for the period 2015–2016 to 2019–2020. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186034 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186034 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186034 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2208895_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Birara Endalew Author-X-Name-First: Birara Author-X-Name-Last: Endalew Author-Name: Mezgebu Aynalem Author-X-Name-First: Mezgebu Author-X-Name-Last: Aynalem Author-Name: Adugnaw Anteneh Author-X-Name-First: Adugnaw Author-X-Name-Last: Anteneh Author-Name: Habtamu Mossie Author-X-Name-First: Habtamu Author-X-Name-Last: Mossie Title: Sources of wheat production technical inefficiency among smallholder farmers in Northwestern Ethiopia: Beta regression approach Abstract: Wheat production is dominated by a subsistence smallholder production system. Additionally, more than 4.7 million smallholder farmers are engaged in wheat production. However, poverty is chronic and pervasive among smallholder farmers. Hence, targeting the efficiency of wheat production is the right strategy to improve the well-being of smallholder farmers. Therefore, we conducted this study to measure the level of wheat production efficiency and figure out the sources of wheat production inefficiency among smallholder farmers using stochastic frontier and beta regression models, respectively. Hence, 400 smallholder farmers were selected to gather firsthand information on wheat production and important variables. The stochastic frontier result shows that the number of oxen, amount of urea fertilizer, and seed had a positive and statistically significant effect on the level of wheat production, unlike wheat farm size. The mean technical efficiency result indicates that smallholder farmers operate 23% below the maximum capacity of wheat production. Additionally, smallholder farmers were producing 18.97 quintals per hectare less than the potential production capacity. Consequently, the beta regression model result shows that an increase in the dependency ratio, distance to the local wheat market, and distance to the extension office will increase the technical inefficiency of wheat production. On the contrary, educational status, farm experience, and access to wheat price information decrease the technical inefficiency of wheat production. Therefore, policymakers, stakeholders, and farmers should consider the main sources of technical inefficiency to minimize the sources of wheat production inefficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2208895 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2208895 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2208895 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2166210_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Agumas Alamirew Mebratu Author-X-Name-First: Agumas Alamirew Author-X-Name-Last: Mebratu Title: Mebratu-B-PLC theory implication on developing country’s oxygen of bank Abstract: The main aim of this study was to examine Mebratu-B-PLC Theory Implication on developing Country oxygen of Bank. The quantitative data covered from 2011–2021 for the sample of eleven non-public commercial banks was collected from the annual report of the National Bank of Ethiopia and World Bank data. The panel the least square regression analysis showed that, except capital adequacy all explanatory variables’ customer growth rate, branch expansion, profitability, life expectancy rate and deposit interest rate affect deposit growth of non-public commercial bank shave positive, whereas GDP growth rate has negative significant effect on deposit growth of non-public commercial banks. From the results, branch expansion rate and customer growth rate were the two most powerful variables that affected deposit growth rate. Those non-public commercial banks that were sampled should build their image to attract more customers. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2166210 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2166210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2166210 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2202965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name:   Susanti Author-X-Name-First:   Author-X-Name-Last: Susanti Author-Name: Rediyanto Putra Author-X-Name-First: Rediyanto Author-X-Name-Last: Putra Author-Name: Moh. Danang Bahtiar Author-X-Name-First: Moh. Danang Author-X-Name-Last: Bahtiar Title: Banking performance before and during the Covid-19 pandemic: Perspectives from Indonesia Abstract: This study aims to provide empirical evidence regarding the impact of the COVID-19 pandemic on banking performance in Indonesia. This study examines differences in Indonesian banking performance before and during the COVID-19 pandemic. Banking performance in this study was measured using the CAMEL measure. The analysis was carried out by conducting a different test using the SPSS application version 22.0. Based on the results of tests conducted on 205 observations on banking from 2018 to 2021, it was found that the CAR, ROA, ROE, BOPO, LDR, and Customer Deposit levels from banks in Indonesia had a significant difference between before and during the COVID-19 pandemic. However, there was no significant difference between the NPL banking level in Indonesia before and during the COVID-19 pandemic. This proves that the COVID-19 pandemic has harmed banking in Indonesia, so the government must pay attention to the current banking strength to survive and recover after the COVID-19 pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2202965 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202965 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2202965 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lithin B M Author-X-Name-First: Lithin Author-X-Name-Last: B M Author-Name: Suman Chakraborty Author-X-Name-First: Suman Author-X-Name-Last: Chakraborty Author-Name: Vishwanathan Iyer Author-X-Name-First: Vishwanathan Author-X-Name-Last: Iyer Author-Name: Nikhil M N Author-X-Name-First: Nikhil Author-X-Name-Last: M N Author-Name: Sanket Ledwani Author-X-Name-First: Sanket Author-X-Name-Last: Ledwani Title: Modelling asymmetric sovereign bond yield volatility with univariate GARCH models: Evidence from India Abstract: Does Indian sovereign yield volatility reflect economic fundamentals, or whether it is a self-generated force flowing through markets with little connection to such fundamentals? To answer the question, this research explores the volatility dynamics and measures the persistence of shocks to the sovereign bond yield volatility in India from 1 January 2016, to 18 May 2022, using a family of GARCH models. The empirical results indicate the high volatility persistence across the maturity spectrum in the sample period. However, upon decomposing the markets into bull and bear phases, our results support the existence of weak volatility persistence and rapid mean reversion in the bear market. This shows that the economic response policies implemented by the government during the pandemic, including fiscal measures, have a restraining effect on sovereign yield volatility. For a positive γ, the results suggest the possibility of a “leverage effect” that is markedly different from that frequently seen in stock markets. Results further indicate that the fluctuations in Indian sovereign yields cannot be dissociated from inflation and money market volatility. Our findings herein provide valuable information and implications for policymakers and financial investors worldwide. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189589 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189589 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michael Karikari Appiah Author-X-Name-First: Michael Author-X-Name-Last: Karikari Appiah Author-Name: Newman Amaning Author-X-Name-First: Newman Author-X-Name-Last: Amaning Author-Name: Paul Kwaku Tettevi Author-X-Name-First: Paul Kwaku Author-X-Name-Last: Tettevi Author-Name: Daniel Frimpong Owusu Author-X-Name-First: Daniel Author-X-Name-Last: Frimpong Owusu Author-Name: Emmanuel Opoku Ware Author-X-Name-First: Emmanuel Author-X-Name-Last: Opoku Ware Title: Internal audit effectiveness as a boon to public procurement performance: a multi mediation model Abstract: As part of Governments of Ghana efforts to deal with misappropriation of public sector resources, the Internal Audit Agency Act, 2003 (Act 658) was established to ensure probity, accountability, and transparency in the management of public sector resources, yet there is a high Corruption Perception Index in Ghana as asserted by the Transparent International 2021 release. To address this concern, our paper is aimed to develop a new model to explain the extent to which internal audit effectiveness (IAE) could be used to build strong organizational resilience as a mechanism through which efficiency in public procurement could be achieved while reducing public sector corruption incidence. Data have been collected from a cross-section of public sector workers. The structural equation modeling approach has been used to analyze the survey data. Our results have shown that cultural, and strategic resilience dimensions of organizational resilience significantly mediate the relationship between IAE and procurement performance. These results have implications for re-enforcement of audit regulations to ensure transparency in managing public sector resources with a focus on reducing negative public sector corruption perception. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2164968 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2164968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164968 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164555_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Adamu Braimah Abille Author-X-Name-First: Adamu Braimah Author-X-Name-Last: Abille Author-Name: Sulemana Mumuni Author-X-Name-First: Sulemana Author-X-Name-Last: Mumuni Title: Tax incentives, ease of doing business and inflows of FDI in Africa: Does governance matter? Abstract: Apart from the corporate tax rates, the ease of doing business (EDB) index accounts for the cross-country or regional differences in the inflows of foreign direct investment (FDI) as established in the literature. However, this study contends that institutional quality indicators are critical to complement the role of the EDB in attracting the desired FDI into Africa. For empirical evidence, the study performs governance indicators-related step-wise system-GMM estimations of the effect of corporate tax, un-interacted EDB, and the interplay between EDB and governance indicators on the net inflows of FDI using data from 2015 to 2019 for 50 African countries. The findings show that the corporate tax rate and the un-interactive EDB have significant negative effects on the inflows of FDI in Africa in the short- and long runs. In contrast, governance indicators such as control of corruption, political stability, regulatory quality, rule of law, and government effectiveness complement EDB to exert positive effects on the inflows of FDI in Africa, albeit the findings are not generally significant. Tus, to attract the desired FDI, the study inter-alia calls for strict institutional quality assurance in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164555 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164555 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2164665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Minhas Akbar Author-X-Name-First: Minhas Author-X-Name-Last: Akbar Author-Name: Ahsan Akbar Author-X-Name-First: Ahsan Author-X-Name-Last: Akbar Author-Name: Hafiz Sajid Yaqoob Author-X-Name-First: Hafiz Sajid Author-X-Name-Last: Yaqoob Author-Name: Ammar Hussain Author-X-Name-First: Ammar Author-X-Name-Last: Hussain Author-Name: Libuše Svobodová Author-X-Name-First: Libuše Author-X-Name-Last: Svobodová Author-Name: Fakhra Yasmin Author-X-Name-First: Fakhra Author-X-Name-Last: Yasmin Title: Islamic finance education: Current state and challenges for Pakistan Abstract: Islam stipulates its adherents to abide by religious principles in their economic transactions. The aim of this study is twofold. First, it accounts for the adherence of Shariah board members of Islamic banks with the Fit and Proper Criteria (FAPC) promulgated by State Bank of Pakistan (SBP). Second, it explores the current state of provision of Islamic finance education in the universities and madaris (i.e., Islamic seminaries) in Pakistan. This is the unique study in a sense because it draws attention of the stakeholders concerned (i.e., SBP, Higher Education Commission, Ittehad-e-Tanzimat Madaris-e-Deeniya & Ministry of Education) to revisit and make strategic milestones in congruent with the demand-supply gap of Islamic professional experts. Total sample consists of 21 banks, out of which the first five are full-fledged Islamic and remaining 16 are the commercial banks with Islamic banking branches. Descriptive research design has been employed to examine the supply of Shariah experts from madaris and universities in Pakistan. Our findings reveal the following: (1) Profiles of all the Shariah board members fully comply with the FAPC of SBP, and more than 50% of members represent multiple boards of Islamic banks. (2) With 26,000 madaris across Pakistan, 75% of the Shariah experts received their education from one Madrisa named Jamia-dar-ul-uloom, Karachi. Notably, province-wise stats highlight Punjab atop in terms of madaris (45% to 56%) in the country, though it produces less than 10% scholars for the Islamic banks’ Shariah boards. A similar situation persists in Khyber Pakhtunkhwa that has 1354 to 3136 madaris and only one Shariah scholar received education from this province. Karachi, the capital of Sindh province and hub of Islamic seminaries, solely contributed more than 85% SB members to the Islamic banks. (3) Among the top fifteen business schools of Pakistan, only four are offering a degree in Islamic finance. Moreover, these four schools have only eight full-time faculty members with a core degree in Islamic finance. This study suggests the practitioners to increase the supply of Shariah scholars and also strengthen the capabilities and skills of human capital regarding Islamic finance education through education, training, social awareness and capacity building. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2164665 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2164665 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2191455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jared Masini Ichwara Author-X-Name-First: Jared Masini Author-X-Name-Last: Ichwara Author-Name: Tabitha W. Kiriti-Ng’ang’a Author-X-Name-First: Tabitha W. Author-X-Name-Last: Kiriti-Ng’ang’a Author-Name: Anthony Wambugu Author-X-Name-First: Anthony Author-X-Name-Last: Wambugu Title: Changes in gender differences in household poverty in Kenya Abstract: Gender poverty differences in households are likely to affect female-headed households more than male-headed households. This paper examined the evolution of the gender poverty rate gap and identified the factors that underlie differences in poverty rates between female-headed households and male-headed households using the most recent representative household surveys conducted by the Kenya National Bureau of Statistics in 2005/06 and 2015/16. An extended Blinder-Oaxaca decomposition analysis with nonlinear regression was performed. The findings indicate that poverty rates for female-headed households and male-headed households declined from 38.56 to 32.73% in 2005/06 to 30.23 and 26.04% in 2015/16, respectively. Although female-headed households (1.12) have a higher chance of falling into poverty than male-headed households (0.95), the decline in the poverty rate was higher for female-headed households (8.33%) than for male-headed households (6.69%). Therefore, the results do not support the feminization of poverty hypothesis in Kenya. Factors that have bridged the gender poverty gap include cash transfers that explain 11.02% of the gaps, literacy (53.97%), university education (10.39%), secondary education (40.84%), employment in public and private sectors (26.66%) and business employment (10.58%). Recommended policies include the implementation of the gender policy and affirmative action, enhancing literacy levels, and secondary and university enrolment. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2191455 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191455 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2191455 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2202049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dominic Tasila Konja Author-X-Name-First: Dominic Author-X-Name-Last: Tasila Konja Author-Name: Franklin N. Mabe Author-X-Name-First: Franklin N. Author-X-Name-Last: Mabe Title: Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach Abstract: Market participation is both a cause and a consequence of economic development. Markets offer households the opportunity to specialize according to comparative advantage and thereby enjoy welfare gains from trade. The current literature on product marketing in Ghana is inadequate for designing and implementing effective policies to overcome problems in the marketing system, especially leguminous crops. Based on this, the study analyses the determinants of groundnut farmers’ decision to participate and the level of market participation in Northern Ghana using cross-sectional data from 250 smallholder farmers. We employed the generalized double hurdle model to analyse the objectives of this study. On average, the study found that 62% of groundnut output harvested by farm households in Northern Ghana was sold on the market. The most significant determinants of market participation decision and intensity of participation in the groundnut market include extension service, distance to output market, farmer-based organization, off-farm income, output price, use of improved groundnut variety, and access to transport. We recommend that strategies and policies aiming at promoting smallholder commercialization should focus on providing rural infrastructure, market-oriented extension services, and forming farmer groups for collective marketing. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2202049 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202049 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2202049 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2169996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fassil Eshetu Author-X-Name-First: Fassil Author-X-Name-Last: Eshetu Author-Name: Jema Haji Author-X-Name-First: Jema Author-X-Name-Last: Haji Author-Name: Mengistu Ketema Author-X-Name-First: Mengistu Author-X-Name-Last: Ketema Author-Name: Abule Mehare Author-X-Name-First: Abule Author-X-Name-Last: Mehare Title: Impact of rural out-migration on poverty of households in southern Ethiopia Abstract: This study examined the impact of rural out-migration on the poverty of migrant-sending households by applying the new economics labor migration theory as a theoretical framework, and the multinomial endogenous switching regression as an analytical model in southern Ethiopia. Data were gathered from 415 sample rural households using stratified random sampling in the year 2021. The cost of basic needs approach and the Foster, Greer, and Thorbecke (FGT) method were used to establish the poverty line and create the poverty indices, respectively. The average annual food and non-food poverty lines are Birr 8997.52 and 2249.38 per adult equivalent. The incidence, depth, and severity of general poverty are 39.76, 10.11, and 3.55%, respectively, while the incidence, depth, and severity of food poverty are 34.70, 9.47, and 3.58%, respectively. When compared to other households, households with international migrants have a lower incidence, depth, and severity of poverty. The regression result of the multinomial endogenous switching model showed that international migration increases consumption per adult equivalent of households by 29.8% and is significant at the 1% level. Participation in rural-urban and international migration increases kilocalories per adult equivalent per day by 7.4 and 36.4%, respectively, in migrant-sending rural households. The findings support the new economics labor migration theory’s remittance hypothesis. Promoting access to land, capital, farm and non-farm employment, irrigation, family planning, and basic public services would improve rural household welfare and reduce the current wave of rural out-migration in Southern Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2169996 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169996 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2169996 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2169998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mohd Adil Author-X-Name-First: Mohd Author-X-Name-Last: Adil Author-Name: Yogita Singh Author-X-Name-First: Yogita Author-X-Name-Last: Singh Author-Name: Mohammad Subhan Author-X-Name-First: Mohammad Author-X-Name-Last: Subhan Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Author-X-Name-Last: Saleh Al-Faryan Author-Name: Mohd Shamim Ansari Author-X-Name-First: Mohd Shamim Author-X-Name-Last: Ansari Title: Do trust in financial institution and financial literacy enhances intention to participate in stock market among Indian investors during COVID-19 pandemic? Abstract: This research aims to investigate the significance of trust in financial institution and financial literacy in the investment decision-making of individual investors during the COVID-19 pandemic and investigates the strength of the theory of planned behavior (TPB) in this framework. This study considered a structured questionnaire to collect data from 460 individual investors of different districts in four states of India. For testing the research hypotheses, SPSS and PLS-SEM were taken into consideration. The findings enlighten that elements of TPB, i.e. attitude (ATT) and subjective norms (SNs), are significantly associated with investment intentions (INT) while perceived behavioral control (PBC) displays an insignificant association with INT. Furthermore, along with the original components of the TPB model, Trust in financial institution (TFI) and Financial Literacy (FL) were also incorporated in the model, which shows a significant affect on investors’ intention to invest in the stock market. The results stated that TFI is the most significant factor that enhances investors’ intention to participate in stock market during COVID-19 pandemic. The study describes that during the phase of uncertainty like COVID-19 pandemic trust is the most important factor that enhances investors’ participation in the stock market. Authors suggest SEBI and other financial institutions should promote trust and trusting behavior in financial institutions as it is significant not only from the perspective of financial development but also to empower the individuals to gain from institutional services as well as to guard them, from possible negative effects (like financial frauds), which are more likely to be present outside of regulatory boundaries. This study is one of the initial attempts in the context of the Indian Stock Market to introduce TFI as a dual (both mediating and moderating) variable between the basic constructs of TPB. Further, the study also examines the importance of trust in financial institution and financial literacy in enhancing investors’ intention to participate in stock market during COVID-19 pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2169998 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2169998 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Glenda Maluleke Author-X-Name-First: Glenda Author-X-Name-Last: Maluleke Author-Name: Nicholas M Odhiambo Author-X-Name-First: Nicholas M Author-X-Name-Last: Odhiambo Author-Name: Sheilla Nyasha Author-X-Name-First: Sheilla Author-X-Name-Last: Nyasha Title: Symmetric and asymmetric impact of public investment on private investment in South Africa: Evidence from the ARDL and non-linear ARDL approaches Abstract: This study examines the impact of public investment on private investment in South Africa using the autoregressive distributed-lag (ARDL) and nonlinear ARDL bounds testing approach for the period from 1980 to 2018. The ARDL results show that public investment crowds in private investment in the long and short run. The NARDL results indicate that the negative shock in public investment leads to a decrease in private investment in the long and short run. The results show that public investment has an asymmetric impact on private investment in South Africa. The study recommends that government increase investment in infrastructure such as energy, roads and railways, among others, in order to promote private investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189560 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189560 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189560 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2181281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jean-Luc Mubenga-Tshitaka Author-X-Name-First: Jean-Luc Author-X-Name-Last: Mubenga-Tshitaka Author-Name: Johane Dikgang Author-X-Name-First: Johane Author-X-Name-Last: Dikgang Author-Name: John W. Muteba Mwamba Author-X-Name-First: John W. Author-X-Name-Last: Muteba Mwamba Author-Name: Dambala Gelo Author-X-Name-First: Dambala Author-X-Name-Last: Gelo Title: Climate variability impacts on agricultural output in East Africa Abstract: This paper investigates whether the effects of weather variability in temperature and precipitation on agricultural output are short- or long-run. The contribution of this paper is twofold. First, the paper attempts to establish whether temperature or precipitation variability affects agricultural output in the short or the long run. Second, it examined whether the effects of temperature or precipitation variability on agricultural output are homogenous across East African countries. The results reveal that variability in temperature had a long-run impact on agricultural output, while variability in precipitation had a short-run effect. The findings also reveal that the long-run temperature variability effect was heterogeneous across East African countries, and to some extent, there is also evidence for the long-run effect of precipitation variability. These results are crucial in providing decision-makers and other interested parties a thorough evaluation of climate impacts and adaptation measures aimed at increasing agricultural production and food security. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2181281 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2181281 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Citra Amanda Author-X-Name-First: Citra Author-X-Name-Last: Amanda Title: Spatial competition on rural bank efficiency: Evidence from Indonesia Abstract: This study empirically examines bank spatial competition within the rural banking setting of Indonesia. The specific focus is on bank cost efficiency. It presents a new competition measure based on two spatial variables: physical distances and Thiessen polygon market boundaries. This study uses panel data from a large sample of more than 1,000 rural banks using quarterly financial data of rural banks in Indonesia from Q1–2014 to Q4–2018. Parametric or stochastic frontier analysis of Model EN is used to handle the endogeneity in bank cost efficiency measurement. The results show that bank efficiency is higher for shorter distances between banks and larger boundaries. Overall, the results support the competition-efficiency hypothesis. It also helps the idea that banks have mark-up pricing (higher market power) and may choose to reduce their effort to maximize profit. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190216 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190216 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nadia Sghaier Author-X-Name-First: Nadia Author-X-Name-Last: Sghaier Author-Name: Mondher Kouki Author-X-Name-First: Mondher Author-X-Name-Last: Kouki Author-Name: Samia Ben Messaoud Author-X-Name-First: Samia Ben Author-X-Name-Last: Messaoud Title: Further evidence of contagion effect between the Chinese and the G20 stock markets during the COVID-19 pandemic: A time-varying copula approach Abstract: This paper examines the presence of a contagion effect between Chinese and G20 stock markets as well as its intensity over a recent period from 1st January 2013 to 7 April 2022. The empirical study is conducted using the time-varying copula approach. The obtained results show strong evidence of a contagion effect between China and all countries except United States America, Argentina and Turkey during the COVID-19 period. In particular, the Chinese stock market exhibits the highest level of dependence with the Asian and European stock markets in addition to the greatest variability in dependence. These findings are interesting and have important implications for several financial applications. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210363 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210363 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2185346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tariku Lorato Author-X-Name-First: Tariku Author-X-Name-Last: Lorato Author-Name: Tasew Tadesse Author-X-Name-First: Tasew Author-X-Name-Last: Tadesse Author-Name: Yodit Abebe Mamo Author-X-Name-First: Yodit Author-X-Name-Last: Abebe Mamo Author-Name: Berhanu Getinet Author-X-Name-First: Berhanu Author-X-Name-Last: Getinet Title: The urban informal sector as a means of livelihood improvement among youth: Evidence from Hawassa city, Ethiopia Abstract: The informal sector constitutes a vital part of developing countries’ economy. It serves as a major source of employment and livelihood for the urban poor. However, despite its multifaceted economic contributions in many developing countries, little is known about its contribution. Hence, this study examines the role of the urban informal sector in improving the livelihoods of the participants in Hawassa city, southern Ethiopia, using primary data. A random sample of 182 informal sector participants was selected from eight kebeles using multi-stage sampling techniques. Descriptive statistics and a logistic regression model were used to analyze the data. The descriptive analysis results showed that the majority of the participants (67%) perceived that participating in the informal sector has considerably improved their livelihood. The econometric analysis reveals that informal business operators who earn a higher monthly income, those who save their income, stayed longer in the business, have access to credit and own more working capital, and those who get training opportunities are observed to have better livelihood improvement compared to their comparative group. Given the sector’s role in creating employment opportunities for the burgeoning urban labor force and improving livelihood, informal businesses should not be treated as a hostile group with a marginal role in the economy. Thus, along with designing strategies for the formalization of informal enterprises, facilitating access to finance, training programs, improving the business environment, and provision of business development services prepare youth to navigate the informal sector in the study area, in particular, and Ethiopia, in general. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2185346 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185346 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2185346 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B. G. Jean Jacques Iritié Author-X-Name-First: B. G. Jean Jacques Author-X-Name-Last: Iritié Author-Name: Jean Baptiste Tiémélé Author-X-Name-First: Jean Baptiste Author-X-Name-Last: Tiémélé Title: Foreign direct investment and economic growth in Côte d’Ivoire : An application of the bounds testing approach to cointegration Abstract: This paper analyzes the contribution of foreign direct investment (FDI) to economic growth in Côte d’Ivoire, for the period 1980–2019. We use the World Development Indicators (World Bank) database. The Autoregressive Distributed Lag (ARDL) cointegration approach results show that, in the short and long-run, FDI negatively impacts economic growth in Côte d’Ivoire. We conjecture that these results are due to the predominance of extractive FDI in Côte d’Ivoire. Indeed, the extractive sector is weakly linked to the national economy and is subject to practices of fraud and corruption. Our results also show the importance of education (human capital) in the country’s economic growth. All of these findings suggest the need for selective FDI attraction policies, the integration of the enclave extractive sector into the national economy and the strengthening of the education system for a more efficient human capital capable of absorbing and using new knowledge and high technologies transferred by FDI. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223940 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223940 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223940 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lutengano Mwinuka Author-X-Name-First: Lutengano Author-X-Name-Last: Mwinuka Author-Name: Veronica Claud Mwangoka Author-X-Name-First: Veronica Claud Author-X-Name-Last: Mwangoka Title: Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 Abstract: The study investigates the Tanzania manufacturing sector’s growth with a view to provide empirical lessons from macroeconomic factors with limited political regimes reflections. A vector error collection model was used to assess the influence of foreign direct investments (FDI), inflation (INF), export of product (EXP), power supply (PS), government expenditure (GoE), nominal lending interest rate (IRL), population growth rate (PGR) and exchange rate (EXR). The estimated value of the coefficient measuring the speed of adjustment toward long-run equilibrium is statistically significant and negative, implying that 41.6% of the short-run shocks can be corrected back to the long-run equilibrium immediately in the following year so has to prevent the model from explosion. Signs of INF, PS and IRL in the model estimation conform to expectations. Moreover, reducing production costs, increasing the trade openness, attracting FDI, offering appropriate government incentives and management of the foreign exchange rate have potentials of boosting the Tanzania’s economic growth. Thus, the government in collaboration with other stakeholders should work toward making the Tanzania manufacturing sector’s growth more competitive by creating conducive business environment that will lead to multiplier effects. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223419 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223419 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223419 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186043_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Luu Bich Thu Author-X-Name-First: Luu Bich Author-X-Name-Last: Thu Author-Name: Nguyen Vinh Khuong Author-X-Name-First: Nguyen Vinh Author-X-Name-Last: Khuong Title: How does the corporate life cycle influence Vietnamese firms corporate social responsibility? Abstract: This study investigates the association between the corporate life cycle and corporate social responsibility (CSR) disclosure in Vietnam. We hypothesize that the ability and motivation of firms to engage in various CSR activities at each stage of the corporate life cycle are different. Data are collected from 218 companies listed on the HOSE and HNX exchanges in Vietnam from 2014 to 2018 to measure the CSR according to the 2016 GRI General Standards, Parts GRI 200, GRI 300, and GRI 400. Using 2SLS estimation, the empirical findings of our study are consistent with our hypothesis. Our findings suggest that the introduction and growth stages are positively associated with CSR disclosure. Firms in the decline and shake-out phases no longer focus much on CSR disclosure, which shows that older firms do not invest in CSR activities as much as young firms. This study has two contributions. First, the research findings help to expand the literature in the Vietnamese context by applying business life cycle theory and aligning CSR with corporate life cycle stages. Second, the results of this study contribute to managerial implications in making CSR dimension decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186043 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186043 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ibtisam Al Abri Author-X-Name-First: Ibtisam Author-X-Name-Last: Al Abri Author-Name: Behnaz Saboori Author-X-Name-First: Behnaz Author-X-Name-Last: Saboori Author-Name: Razan Al Humaidi Author-X-Name-First: Razan Author-X-Name-Last: Al Humaidi Title: The dynamics of the relationship between foreign exchange reserves and import demand function Abstract: This study empirically investigates the dynamics of the relationship between import demand and foreign exchange reserves for an oil-rich and high-income developing country, Oman. This study employs the Autoregressive Distributed Lag (ARDL) model to investigate the impact of real income, domestic prices, and foreign exchange reserves on aggregate and disaggregated import demand function. Results reveal that total imports are significantly affected by domestic prices only; whereas, demand for goods import is influenced by income. The level of foreign exchange reserves does not influence import demand function. These findings indicate that currency peg stabilization efforts, foreign asset leakages and varying sources of foreign currency could have weakened the link between foreign reserves and import levels. Considering domestic prices and income, competition and efficient production of local goods and services should be further encouraged, especially concerning ongoing issues like food security. Understanding import dynamics enhances robust import forecasts, international trade planning and policy formulation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189623 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189623 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189623 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Le Ha Diem Chi Author-X-Name-First: Le Ha Diem Author-X-Name-Last: Chi Author-Name: Bui Thi Thu Hang Author-X-Name-First: Bui Thi Thu Author-X-Name-Last: Hang Title: Corporate social responsibility expenditure and financial performance: A comparison of Vietnamese listed and unlisted banks Abstract: There are legal requirements for a bank to be officially listed on the Vietnam stock exchange; hence by the end of 2020, Vietnam’s banking industry had 43% of banks officially listed on the stock exchange and 57% of banks not officially listed. Accordingly, the difference between these two groups of banks is clear. This study aims to find empirical evidence for a one-way relationship between corporate social responsibility expenditure (CSRE) and the financial performance of Vietnamese commercial banks. In addition, the study also looks for the influence of each component of CSRE, including Community, Government, and Employee Responsibility, on the financial performance of listed and unlisted banks. Using the Generalized Method of Moments (GMM) controlling for heteroscedasticity, serial correlation, and endogeneity effects, the research results of the study show that CSRE as a cost reduces the bank’s financial efficiency; however, social responsibility spending with the community is a positive factor that increases the bank’s financial efficiency through creating an image and good impression with society and customers. Especially significantly stronger for commercial banks that have been officially listed on the stock exchange. Research results show the need to strengthen CSR implementation in the banking industry. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203987 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203987 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2216980_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sabyasachi Mohapatra Author-X-Name-First: Sabyasachi Author-X-Name-Last: Mohapatra Author-Name: Arun Kumar Misra Author-X-Name-First: Arun Kumar Author-X-Name-Last: Misra Author-Name: Molla Ramizur Rahman Author-X-Name-First: Molla Ramizur Author-X-Name-Last: Rahman Title: Impact of banking sector competition on emerging market banks’ safety and soundness – A study on Indian Banks Abstract: The literature is unsettled on the simultaneous existence of Competition-Stability and Competition-Fragility phenomena in the banking system. Our study has extended the debate where we have incorporated accounting-based information along with 2-SLS system equation modeling to further explore linkages between competition, systemic risk, and stability prevailing in the Indian banking system. The study revealed that for Indian banks competition and systemic risk are inversely related. Systemic risk build-up occurs during the business growth cycle, and it spillovers onto the banking system during the economic down-cycle. The article finds that while a healthy competition would support the overall stability of banks, a fierce competition exerts competitive pressure on the banking system, and hence it negatively contributes to the bank’s stability. It has supported the financial fragility hypothesis and envisages that increased capital restricts competition, and aggressive loan creation increases fragility. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2216980 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2216980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2216980 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2184062_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Agness Mzyece Author-X-Name-First: Agness Author-X-Name-Last: Mzyece Author-Name: Aleksan Shanoyan Author-X-Name-First: Aleksan Author-X-Name-Last: Shanoyan Author-Name: Vincent Amanor-Boadu Author-X-Name-First: Vincent Author-X-Name-Last: Amanor-Boadu Author-Name: Yacob Abrehe Zereyesus Author-X-Name-First: Yacob Abrehe Author-X-Name-Last: Zereyesus Author-Name: Kara Ross Author-X-Name-First: Kara Author-X-Name-Last: Ross Author-Name: John N. Ng’ombe Author-X-Name-First: John N. Author-X-Name-Last: Ng’ombe Title: How does who-you-sell-to affect your extent of market participation? evidence from smallholder maize farmers in Northern Ghana Abstract: This study examines the effect of marketing channel choice on the extent of market participation, with the goal of helping farm managers and policymakers to identify ways of enhancing market participation outcomes. The study uses data from 383 smallholder maize farmers who were part of the respondents to the Agriculture Production Survey conducted in 2014 and the Population-Based Survey conducted in 2012 in Northern Ghana. Econometric analysis was performed using the double hurdle model to account for data censoring in a more flexible way. Findings indicate that smallholder farmers in Ghana sell larger maize quantities when they sell to aggregators than when they sell directly to consumers. By changing from selling to consumers to selling to aggregators, farmers can increase the amount of maize sold by 128.46 kg conditional on participation and by 43.41 kg unconditional on participation. This is potentially due to the scale advantages and non-pecuniary cost savings that aggregators present. The results imply that facilitating access to aggregator-type middlemen may improve market participation in markets where market infrastructure and institutions are not developed enough to substantially lower pecuniary and non-pecuniary marketing costs of selling directly to consumers. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2184062 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2184062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2184062 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160044_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nga Phan Thi Hang Author-X-Name-First: Nga Author-X-Name-Last: Phan Thi Hang Title: Policy recommendations for controlling credit risks in commercial banks after the Covid-19 pandemic in Vietnam Abstract: Credit activities are an essential commercial bank activity. Therefore, preventing and limiting credit risks is vital for their credit activities. The Covid-19 epidemic is still ongoing. In 2021, 30 banks listed bad debts of more than 113 trillion VND, a 26% increase relative to 2020. Vietnam has the dual goal of fighting the outbreak while continuing with socio-economic development. In this context, credit activities are still essential. Banks require the necessary and appropriate management solutions to adapt to the new situation to ensure safe and sustainable credit activities. This study analyzes some current problems and leading causes of the credit risk of commercial banks. The author has primary data from detailed questionnaires distributed directly to 300 credit risk managers based on a random process. This study examines the descriptive statistics, and compares, analyzes, and synthesizes the statistical reports of commercial banks. The study is novel in that it analyzes more than 60% of commercial banks affected by Covid-19 in terms of risks from subjectivity and risks due to objective causes. Therefore, the results suggest several policy recommendations for minimizing Vietnamese commercial banks’ credit risks after the Covid-19 pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160044 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160044 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Meera Aranha Author-X-Name-First: Meera Author-X-Name-Last: Aranha Author-Name: Kartikeya Bolar Author-X-Name-First: Kartikeya Author-X-Name-Last: Bolar Title: Efficacies of artificial neural networks ushering improvement in the prediction of extant credit risk models Abstract: The study’s objective is to check whether the predictive power of Machine Learning Techniques is better than Logistic Regression in predicting the bankruptcy of firms and that the same predictive power of ascertaining bankruptcy improves when a proxy for uncertainty is added to the model as a default driver. We considered the covid pandemic a black swan event that had caused ambiguity. A significant factor that has increased the probability of bankruptcy in recent times has been the large-scale supply chain disruptions and crippling lockdowns. Firms are trying to get back to pre-Covid utilization of plant capacity or pivot their business models differently to seize newer opportunities amidst the crisis. We considered the change in operating expenditure (primarily decrease) as our proxy for uncertainty as firms were forced to cut down majorly on their operations and thus incurred lesser variable costs. In an economy showing inflationary trends, the operating expenses will generally increase. But we found that the operational costs had shown a dip in the case of many of the firms during FY 20–21, and we attributed it to Covid disruptions. Results show that Machine Learning Techniques are better than Logistic Regression in predicting the bankruptcy of firms and that the same predictive power of ascertaining bankruptcy improves when a proxy for uncertainty is added to the model. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210916 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210916 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nguyen Vinh Khuong Author-X-Name-First: Nguyen Vinh Author-X-Name-Last: Khuong Author-Name: Huynh Thi Ngoc Ly Author-X-Name-First: Huynh Thi Ngoc Author-X-Name-Last: Ly Author-Name: Le Huu Tuan Anh Author-X-Name-First: Le Huu Tuan Author-X-Name-Last: Anh Title: Accrual-based, real activities earnings management and corporate social responsibility: A virtuous circle? emerging market evidence Abstract: The relationship between Earnings Management (EM) and Corporate Social Responsibilities (CSR) has raised a considerable number of attentions, especially, in financial and accounting field since they determine firms’ performance as well as market positioning. On the contrary, in an emerging country as Vietnam, the number of relevant studies are rare together with several limitations. Thus, this paper is the pioneer investigating the cause and effect among Accruals Earnings Management (AEM), Real Earnings Management (REM) as two proxies for EM, and CSR. Next, Granger’s causality replacing for traditional method is employed in order to interpret this nexus. The analysis relies on the sample size of 225 companies during the period 2014–2018 from Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange (HOSE). We figured out executives prefer REM to AEM when implementing earnings manipulations. Consistent with the expectations and prior scholars, we found there is a negative correlation in the association of AEM and CSR while it is positive in the case of REM and CSR. Besides the consistent results with multivariate regression analysis (MRA) in terms of CSR-EM association, the fsQCA findings also explore more combinations regarding the relationship between CSR-EM. Additionally, all empirical results also provide evidence that there is cause-and-effect relationship in terms of AEM, REM and CSR which has never been researched and discussed over the past several years. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209955 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209955 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaoling Song Author-X-Name-First: Xiaoling Author-X-Name-Last: Song Author-Name: Yage Jing Author-X-Name-First: Yage Author-X-Name-Last: Jing Author-Name: Xuan Qin Author-X-Name-First: Xuan Author-X-Name-Last: Qin Title: BP neural network-based early warning model for financial risk of internet financial companies Abstract: We built an early warning model for financial risk using a back propagation neural network. To this end, the financial data of 136 listed Internet financial companies in the People’s Republic of China were selected, spanning from 2010–2019, as the sample for the empirical test. We categorized the financial status of enterprises as either “healthy” or “early warning” by the K-means clustering algorithm. Furthermore, factor analysis was performed to obtain seven common factors for building the early warning model. Overall, we confirmed the model’s excellent comprehensive accuracy and prediction efficiency, with accuracy, precision, recall, and specificity rates of 99.51%, 99.71%, 99.71%, and 98.30%, respectively. Thus, the model obtained by training and simulation using the back propagation neural network algorithm can effectively screen enterprises with hidden financial conditions and will not misclassify enterprises with good financial conditions. Notably, the misjudgment and omission rates are considerably low. The model is highly capable of identifying the financial status of Internet financial companies and has good predictive power. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210362 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210362 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2167361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Victoria Nutassey Author-X-Name-First: Victoria Author-X-Name-Last: Nutassey Author-Name: Samuel Agyei Author-X-Name-First: Samuel Author-X-Name-Last: Agyei Author-Name: Siaw Frimpong Author-X-Name-First: Siaw Author-X-Name-Last: Frimpong Author-Name: Kaku NoKoe Author-X-Name-First: Kaku Author-X-Name-Last: NoKoe Title: Introducing electronic transaction levy in Ghana: A possible curse or a blessing? The public’s perception Abstract: This study seeks to determine Ghanaians’ perceptions of the new electronic transaction levy (E-levy) and the impact of their perception on their intention to use electronic transactions (ETs) that attract the levy, financial inclusion (FI) and financial well-being (FW). To achieve this, the study employs PLS-SEM with a sample size of 782. Generally, we found Ghanaians have limited knowledge on E-levy. Thus, Ghanaians should be re-educated about E-levy. We again document that the perception of Ghanaians towards E-levy is negative. Also, we found most Ghanaians intend to reduce their patronage of ETs that attract levy. Furthermore, Ghanaians’ perception of the E-levy reduces their intention to use ETs that are affected by the levy and, by extension, adversely affect FI and FW. Hence, based on the perception of Ghanaians, the E-levy introduced is a curse. We recommend that the government of Ghana review the E-levy policy to minimize its negative effects. We specifically suggest that government raise the GH¢100 per day transaction exemption threshold to increase the intention to use ETs and FI; moreover, government can exempt businesses that pay income tax from E-levy to reduce the tax burden on their income. Also, government should re-enlighten the public on the benefits of E-levy to the country, reassuring the public of accountability and honesty in implementing the E-levy policy to increase their intention to patronize ETs that attract levy. Again, we record a significant and positive total effect of FI on FW. Thus, additionally, government should introduce policies that ensure FI. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2167361 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2167361 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Faisal Alnori Author-X-Name-First: Faisal Author-X-Name-Last: Alnori Title: Financial shock and the United States multinational and domestic corporations leverage Abstract: Puzzling findings from prior studies demonstrated that US multinational corporations (MNCs) capital structure include significantly lower leverage than their domestic counterparts. This study utilized the period of the 2008- Global Financial Crisis (GFC) to compare the leverage ratios between MNCs and Domestic Corporations (DCs) to provide a new approach to testing whether the lower expected bankruptcy cost of MNCS enables them to use more leverage than their domestic counterparts. The data used includes Compustat non-financial firms over the years 2002–2019 and the empirical method applied is the panel data fixed effects regression. Consistent with prior studies, the results show that MNCs capital structure includes lower leverage levels in comparison to their domestic counterparts before and post the GFC period. However, in the 2008 financial shock event, this study explores that MNCs have significantly higher market and book leverage than purely domestic firms. This higher leverage of MNCs is attributed to their lower expected bankruptcy arising from their international diversification of operations and their advantage in accessing external financial markets. Prior research justified MNCs’ lower leverage ratios to higher agency costs. Nevertheless, the current study confirms that the trade-off theory’s bankruptcy cost is still empirically relevant. The findings are robust after employing alternative robustness checks. At best, this is the first study that compares the capital structure of MNCs and DCs during times of financial shock and credit constraint. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210364 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210364 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Belainew Belete Author-X-Name-First: Belainew Author-X-Name-Last: Belete Author-Name: Tadele Bayu Author-X-Name-First: Tadele Author-X-Name-Last: Bayu Title: Does Social protection improve female-headed households’ food security in Ebinat district, Ethiopia Abstract: Though social protection in sub-Saharan Africa is intensive to alleviate food insecurity of the vulnerable group such as women, its impact on the food security status of female-headed rural households has not been well documented. Accordingly, the present study aims to evaluate the effect of the Productive Safety Net Program (PSNP) on the food security of female-headed farm households. The study employs the Propensity Score Matching (PSM) method to identify the comparable beneficiary and non-beneficiary sample households. The study finding indicates that PSNP improves the food security status of female-headed farm households. Moreover, the study suggested that the food security status of the beneficiary household is better than the non-beneficiary household even after controlling the potential heterogeneity. Based on the findings of the present study, we recommend that PSNPs should focus on building a sustainable income-generating livelihood system. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210854 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210854 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2167369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ghada Tayem Author-X-Name-First: Ghada Author-X-Name-Last: Tayem Title: The threat of political extraction and corporate cash holdings: The case of the GCC countries Abstract: This study examines the motives of corporations in the Gulf Cooperation Council (GCC) countries to hold cash with a focus on institutional characteristics related to the threat of political extraction. Using firm-level financial data and macro-level and institutional data and applying the GMM estimation method, the study finds that corruption (a proxy of the threat of political extraction) is positively related to cash holdings which suggests that the risk of political extraction induces GCC firms to accumulate cash to make political payoffs and preserve their financial flexibility. In terms of firm-level characteristics, GCC firms follow a pecking order as they deplete more cash the larger their capital expenditures. In addition, GCC firms save cash for transaction and precautionary purposes as indicated by the negative relation between cash and cash substitutes. This is the first study to examine the threat of political extraction on cash holdings using the context of the GCC, a cash-rich region with unique institutional settings. The findings on the GCC countries contribute to the ongoing debate regarding the political extraction-cash holdings relationship by examining a context under which corruption is likely to exert a positive impact on the level of cash holdings. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2167369 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167369 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2167369 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2174637_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Afaqa Hudaya Author-X-Name-First: Afaqa Author-X-Name-Last: Hudaya Author-Name: Firmansyah Firmansyah Author-X-Name-First: Firmansyah Author-X-Name-Last: Firmansyah Title: Financial stability in the Indonesian monetary policy analysis Abstract: Financial stability is one of the main factors for a country’s economic sustainability nowadays. Financial instability has adverse effects on the economy which can lead to the financial crisis. This research tries to answer how monetary policy related to Indonesian financial stability in the short and long term, how specific the relations between its parts such as money supply, interest rate, and exchange rate to indonesian financial stability, and which one of these parts that have ways more effective to influence Indonesian financial stability. This research data use time series quarterly as quantitative data in Indonesia. By employing econometric models of error correction on quarter data that consist of the stationary stochastic process, long-run model and cointegration approach and error correction model, this model can indicate how quickly the effect of the money supply, interest rate or exchange rate is fully accepted by the financial stability in the short term. The finding of this study showed that the increase in interest rate began to be able to improve indonesian financial stability responsively in four times the period, namely an increase of one percent in interest rate could increase 0.4161 percent of financial stability in Indonesia. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2174637 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2174637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2174637 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163075_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Trinh Hiep Thien Author-X-Name-First: Trinh Hiep Author-X-Name-Last: Thien Author-Name: Nguyen Xuan Hung Author-X-Name-First: Nguyen Xuan Author-X-Name-Last: Hung Title: Intangible investments and cost of equity capital: An empirical research on Vietnamese firms Abstract: Together with the development of knowledge-based economy, investment in intangibles has been dramatically increasing. Although intangibles are widely recognized as primary value drivers for more firms, as evidence of many studies related to the value relevance or the market valuation of intangible investments, little is known in the literature about the cost of equity capital for financing intangible investments, especially in Vietnamese literature extent. This paper’s aim is therefore to empirically investigate the association between a firm’s cost of equity capital and intangible investments detailed by research and development investment, business combination investment and organizational capital investment. We investigate the above relationship through the sample of 120 Vietnamese-listed firms from 2013–2017. Regression result confirmed that both higher level of research and development investment and larger amount of accounting goodwill raise the firm’s overall cost of equity capital since their characteristics of these investments are riskier and less liquid and has a higher level of information asymmetry. Our findings could suggest several implications for managers and shareholders in making their investment decisions. Once again, this study adds to the existing business valuation literature by providing additional evidence of the impact of research and development investment as well goodwill on accounting for equity capital valuation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163075 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163075 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163075 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2207939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K. Nirmal Ravi Kumar Author-X-Name-First: K. Nirmal Author-X-Name-Last: Ravi Kumar Author-Name: S.N. Mishra Author-X-Name-First: S.N. Author-X-Name-Last: Mishra Author-Name: Adinan Bahahudeen Shafiwu Author-X-Name-First: Adinan Author-X-Name-Last: Bahahudeen Shafiwu Author-Name: Shailendra Gajanan Author-X-Name-First: Shailendra Author-X-Name-Last: Gajanan Author-Name: Suresh Chandra Babu Author-X-Name-First: Suresh Author-X-Name-Last: Chandra Babu Author-Name: A. Sandhya Neelima Author-X-Name-First: A. Sandhya Author-X-Name-Last: Neelima Title: Production technology adoption and electronic market participation intensity of chilli (dry) farmers in India: Application of triple-hurdle model Abstract: Agricultural and food system transformation helps increase farm productivity and encourages farmers to participate in updated value chains, adopt newer technologies, thereby helping farmers transform their livelihoods in a sustainable manner. Relatedly, value chain innovations depend on multiple decisions farmers make at various stages of the value chain, adequate participation being a primary factor. In this paper, we integrate farmers’ adoption decision of a new variety of chilli crop (“Teja”) along with their electronic market participation decision and e-market participation intensity, based on data from the chilli farming sector in India, where agricultural markets have been modernized through digitization (Kalgudi e-Market). Thus, the employed Triple-Hurdle Model (THM) integrates adoption decision of “Teja” variety of chilli, e-Market Participation Decision and e-market participation intensity thereby, allowing us to make inferences relating to chilli farmers in Andhra Pradesh, India. Our results, showed that the drivers of “Teja” variety adoption, e-market participation, and e-participation intensity include education, reliable extension services, access to seeds of high yielding varieties, market information, and membership in farmer-producer organizations. Added to these, personnel training visits, prompt deliveries of inputs, and prompt payment of sales proceeds are also important in influencing participation and intensities. Results show that the three stochastic decisions of THM are strongly correlated implying that the adoption decision of “Teja” variety of chilli by the farmers influences the e-market participation decision and consequently, e-market participation intensity and these three decisions are sequential. On the contrary, the decisions viz., e-market participation decision and e-market participation intensity as input buyers and consequent adoption of “Teja” variety of chilli are simultaneous. So, the policy measures that promote production technology interventions (say, “Teja” variety of chilli) will definitely enhance better e-market access of chilli farmers. Accordingly, the breeding programs of the agricultural research stations should enhance the uptake of improved varieties in tune with modern marketing (e-market) technologies. Future farm policy and agricultural-research and innovations must recognize the potential that the digital marketing systems have to offer. Such considerations coupled with the provision of market infrastructure including assaying, grading, storage, and market information will promote digital transformation in agricultural value chains in developing countries like India. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2207939 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207939 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2207939 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2162688_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Paulo Viegas de Carvalho Author-X-Name-First: Paulo Viegas Author-X-Name-Last: de Carvalho Author-Name: Joaquim Ferrão Author-X-Name-First: Joaquim Author-X-Name-Last: Ferrão Author-Name: Joaquim Santos Alves Author-X-Name-First: Joaquim Santos Author-X-Name-Last: Alves Author-Name: Manuela Sarmento Author-X-Name-First: Manuela Author-X-Name-Last: Sarmento Title: The informational value contained in the different types of auditor’s opinions: Evidence from Portugal Abstract: This paper examines the distinct types of modified auditor opinions and the non-compliance with the legal certification of accounts, to assess whether they provide different relevant informational content on the risk of impending bankruptcies. The study also addresses the signalling effects when firms do not comply with disclosure obligations. Controlling for the a priori risk classification, we find that distinct opinion types have dissimilar marginal influences, with a disclaimer of opinion denoting the highest level of risk, followed by the non-compliance with the legal certification of accounts and the issuance of an auditor’s adverse opinion. The odds of a firm becoming failed are significantly greater when emphases and reserves are issued by a Big 4 auditor. These findings are based on the evidence of 36,509 firms in Portugal, a country characterized by a proportionately high number of small-sized audited firms and by a lack of independent oversight of auditors, which makes it a relevant setting to analyse. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2162688 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2162688 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Issa Dawd Author-X-Name-First: Issa Author-X-Name-Last: Dawd Author-Name: Noureddine Benlagha Author-X-Name-First: Noureddine Author-X-Name-Last: Benlagha Title: Insurance and economic growth nexus: New Evidence from OECD countries Abstract: This study tackles the debate on the relationship between insurance development and economic growth by providing new evidence on the insurance sector. Most of the existing empirical studies focus primarily on the banking sector. This article applies linear dynamic panel-data approaches to examine the nexus between insurance (life insurance, non-life insurance, and the total insurance) and economic growth in 16 OECD countries from 2009 to 2020. We show that insurance development is associated with economic growth. The relationship between life and non-life insurance premiums and economic growth is non-linear. Based on the analysis of the data, an inverted U-shaped relationship is observed between insurance premiums and economic growth, thereby supporting the hypothesis reported in the literature on the non-linear relationship between financial development and economic growth. This implies that more finance may only be better up to a point, after which it tends to harm growth. Thus, our results confirm that the relationship between the insurance sector and economic growth appears to behave like the association between the financial industry and GDP. These findings offer several useful empirical implications for insurance companies and certain perspectives that would help policymakers, governments in OECD and other regions identify important aspects that can be considered while formulating financial regulations related to insurance activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183660 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183660 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183660 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2213951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Getasew Daru Author-X-Name-First: Getasew Author-X-Name-Last: Daru Author-Name: Degsew Melak Author-X-Name-First: Degsew Author-X-Name-Last: Melak Author-Name: Wondim Awoke Author-X-Name-First: Wondim Author-X-Name-Last: Awoke Author-Name: Sinkie Alemu Author-X-Name-First: Sinkie Author-X-Name-Last: Alemu Title: Farmers’ participation in small-scale irrigation in Amhara region, Ethiopia Abstract: Irrigation has a critical role in improving food security and alleviating poverty. Long-term studies on small-scale irrigation have identified several factors that influence the participation of farmers in irrigation. However, farmers in the study area are still hesitant to participate in small-scale irrigation as a source of income. As a result, the focus of this study was examining farmers’ engagement in small-scale irrigation. A stratified random sampling technique was used to select 184 respondents, and data was collected from those sample respondents. The double hurdle model was used to identify determinants and the extent of farmers’ participation in small-scale irrigation. The model’s first hurdle found that farmers’ desire to participate in small-scale irrigation was highly influenced by their age (1.3%), educational level, extension contact (20.8%), training access (19.7%), dependency ratio, farm distance from water, and land topography. According to the result of the second hurdle, the level of farmers’ participation in small-scale irrigation was highly affected by land size (11.6%), income, adult labor, educational level, age, and market distance. The study finds that strengthening income sources, land utilization, training access, extension contact, market access, and education level would increase farmer participation in small-scale irrigation. Therefore, stakeholders should strive to deliver these essential services to encourage farmers to participate in small-scale irrigation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2213951 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213951 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2159735_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nguyen Thi Hoa Hong Author-X-Name-First: Nguyen Thi Hoa Author-X-Name-Last: Hong Author-Name: Tran Khanh Linh Author-X-Name-First: Tran Khanh Author-X-Name-Last: Linh Title: Institutional investors, corporate governance and firm performance in an emerging market: evidence from Vietnam Abstract: This study examines the relationship between institutional investors, corporate governance, and firm performance in Vietnam. The findings on Vietnamese listed companies indicate that while institutional investors are less likely to hold shares of companies with larger board sizes, Chief Executive Officer (CEO) duality, and ultimate control by the state (except for state-owned institutions’ perspective), the effect of their ownership on firm performance depends on whether they are pressure-sensitive (grey) or pressure-insensitive (independent) institutions. In Vietnam, independent institutional investors monitor the company and their investment more effectively than grey institutional investors. They can significantly influence management decisions and improve shareholder value. In contrast, grey institutional ownership is either negatively or insignificantly related to firm performance due to conflicts of interest, as they have a potentially related business relationship with the invested companies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2159735 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2159735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2159735 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163874_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Getaye Gizaw Author-X-Name-First: Getaye Author-X-Name-Last: Gizaw Author-Name: Habtamu Kefelegn Author-X-Name-First: Habtamu Author-X-Name-Last: Kefelegn Author-Name: Bewuketu Minwuye Author-X-Name-First: Bewuketu Author-X-Name-Last: Minwuye Author-Name: Gizachew Mengesha Author-X-Name-First: Gizachew Author-X-Name-Last: Mengesha Author-Name: Daregot Berihun Author-X-Name-First: Daregot Author-X-Name-Last: Berihun Title: Impact of business regulations on foreign direct investment inflows and economic growth in East African countries Abstract: Continuous improvement of the business environment is important for countries seeking to benefit from increased trade and investment through regional integration. Creating an enabling environment for businesses to thrive and expand has become a new concept in international development organizations, and a good business climate allows good ideas to take root, which leads to the creation of jobs and better lives for host countries. The main objective of this study was to investigate the impact of business regulations on FDI inflow and economic growth in East Africa region using data collected from the World Bank spanning from 2010–2019. The study finds that dealing with construction, enforcing contracts, getting credit, getting electricity, paying tax and protecting minority investors have a significant impact on FDI inflow in the region. While enforcing contracts, getting credit, protecting minority investors, resolving insolvency, starting a business and trade across borders have a significant impact on economic growth in the region. Moreover, each additional reform during 2010–2019 is associated, on average, with a 3.09% increase in FDI inflows and 2.24% increase in GDP in East African countries. The findings of this study will help policy makers in the region to establish a strong legal framework of business regulations to attract FDI inflow into their economies, to adjust their ease of doing business procedures to attract FDI to their economies and to promote regional economic growth. This will also assist investors in monitoring these key indicators to facilitate investment decisions in foreign countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163874 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163874 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Title: Impact of government expenditure on economic growth in different states in South Africa Abstract: This paper investigates the impact of long-run government expenditure and economic growth in different states in South Africa. Economic growth has been below the policy target of 5% stipulated in the National Development Plan Vision 2030, while government expenditure growth has been volatile but increasing at a decreasing rate. The paper uses the Vector-error correction (VEC) and Markov-switching dynamic regression with the data from 1994 to 2021. The significance of the paper is that it assesses the short and long-run impacts of government expenditure on different states of economic growth in South Africa. It is found that more government expenditure in South Africa hasn’t resulted in the nation’s economy growing, which is at odds with the Keynesian viewpoint. In both lower economic states, government expenditure reduces economic growth by 0.009% and 0.30%. The economy is expected to stay for 1 year in state 1, while it is expected to stay for 13 years in state 2. Government expenditure shocks were found to be detrimental to economic growth. It is recommended that fiscal authorities increase government expenditure in the short run rather than in the long run and monitor government expenditure. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209959 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209959 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2173871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Collins Baffour Kyei Author-X-Name-First: Collins Baffour Author-X-Name-Last: Kyei Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Anokye Mohammed Adam Author-X-Name-First: Anokye Mohammed Author-X-Name-Last: Adam Author-Name: Anthony Adu-Asare Idun Author-X-Name-First: Anthony Adu-Asare Author-X-Name-Last: Idun Author-Name: Justice K.G Agyenim Boateng Author-X-Name-First: Justice K.G Agyenim Author-X-Name-Last: Boateng Title: Nexus between commodities and banking sector financial soundness: The role of general macroeconomic setting in Ghana Abstract: The level of causation and interdependencies among three commodities (cocoa, gold, and Brent crude oil), five banking sector performance indicators (Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Return on Equity (ROE), Return on Assets (ROA) and Core Liquid assets to total assets (CLATA)), and three general macroeconomic indicators (Inflation, Exchange rate and Global Economic Policy Uncertainty) are explored in this study. As a result, the wavelet techniques are employed to investigate time-frequency and frequency-dependent nexus in the Ghanaian context. In terms of time-frequency, a mix of negative and positive bi-causality among commodities, banking sector performance indicators, and macroeconomic indicators are found. Outcomes from the wavelet multipleprovide that these variables are highly integrated, with the exchange rate leading in the long-run. Hence, implying that exchange rate in Ghana has a high susceptibility to shocks before the other variables in the study. We advocate Government of Ghana and policy-makers should fine-tune policies that take into account the impact on other economic factors. Policies should be initiated to minimise fluctuations in the exchange rate. To limit the adverse impact of inflation and GEPU, it is required that effective and efficient country-level policies geared towards stability be initiated to resuscitate the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2173871 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173871 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2173871 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2213016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Afnan Ghanayem Author-X-Name-First: Afnan Author-X-Name-Last: Ghanayem Author-Name: Gareth Downing Author-X-Name-First: Gareth Author-X-Name-Last: Downing Author-Name: Murad Sawalha Author-X-Name-First: Murad Author-X-Name-Last: Sawalha Title: The impact of political instability on inflation volatility: The case of the Middle East and North Africa region Abstract: This study examines the impact of political instability on inflation volatility in the Middle East and North Africa (MENA) region. First, it analyzes the multidimensionality of political instability by adopting a factor analysis technique and finds five dimensions of political instability. Next, it adopts GARCH, EGARCH, and TGARCH volatility specifications to model country-specific monthly inflation data. Finally, it examines the impact of the five dimensions of political instability on GARCH conditional inflation volatility by employing the dynamic Generalized Method of Moments (GMM) panels. This paper reports both positive and negative effects of political instability on inflation volatility in the MENA region. Specifically, we show that the instability of the political regime dimension significantly increases inflation volatility, while the dimension of government instability significantly reduces inflation volatility. Our results hold for a set of robustness checks, including the MIDAS weighted conditional inflation volatility measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2213016 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213016 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nguyen Vinh Khuong Author-X-Name-First: Nguyen Vinh Author-X-Name-Last: Khuong Author-Name: Tran Trung Kien Author-X-Name-First: Tran Author-X-Name-Last: Trung Kien Author-Name: Le Ong Tieu Bang Author-X-Name-First: Le Ong Tieu Author-X-Name-Last: Bang Author-Name: Dinh Ho Tuyet Anh Author-X-Name-First: Dinh Ho Tuyet Author-X-Name-Last: Anh Author-Name: Van Cong Danh Author-X-Name-First: Van Cong Author-X-Name-Last: Danh Author-Name: Pham Xuan Hung Author-X-Name-First: Pham Xuan Author-X-Name-Last: Hung Author-Name: Nguyen Ai Ngan Author-X-Name-First: Nguyen Ai Author-X-Name-Last: Ngan Title: Related party transactions and firm value in an emerging market: Does corporate social responsibility matter? Abstract: This study investigates the effect of related party transactions (RPTs) on firm value (FV) with moderating role of corporate social responsibility (CSR) in the context of an emerging market. For a sample of 625 listed firms on the Vietnamese Stock Exchange from 2015 to 2019, we do quantitative analysis utilizing the appropriate method for panel data with modification to strengthen the study’s robustness. We design a regression model to test the result. According to the findings of the study, RPTs have an effect on corporate value. This is in keeping with the belief that CSR reporting, which represents a company’s ethical concerns, might act as a deterrent to opportunism by management. Our study makes recommendations to improve transaction transparency with corporate stakeholders, contributing to the growth of the Vietnamese stock exchange. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186036 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186036 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186036 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186035_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Samuel Kwaku Agyei Author-X-Name-First: Samuel Kwaku Author-X-Name-Last: Agyei Author-Name: Ahmed Bossman Author-X-Name-First: Ahmed Author-X-Name-Last: Bossman Title: Exploring the dynamic connectedness between commodities and African equities Abstract: Market participants, regulators, and practitioners might have disregarded the prospective integration of African markets and the integration of commodity markets with traditional markets. We examine the nonhomogeneous return spillovers and contagion between 12 commodity sectors and African equities under the time-varying parameter vector autoregressions connectedness method. With daily datasets from February 2010 to February 2022, the average connectedness analysis suggests a low spillover transmission between commodities and respective African equity markets. We reveal that the return connectedness between commodities and African equities is largely driven by idiosyncratic spillovers. The results from the dynamic connectedness analysis reveal significant spillovers between the studied markets. Our findings underscore financial market contagion during stressed trading periods, suggesting that global commodity and African equity markets are not entirely immune to global market shocks. Therefore, prompt management of commodity price volatility and the integration between economies could result in controlled impacts of financial market contagion. Portfolio managers should deploy effective risk management strategies that capitalise on the nonhomogeneous roles of some assets as diversifiers, hedges, and safe havens across time horizons. Additional implications of our findings are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186035 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186035 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2202964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name:   Maeenuddin Author-X-Name-First:   Author-X-Name-Last: Maeenuddin Author-Name: Shaari Abd Hamid Author-X-Name-First: Shaari Abd Author-X-Name-Last: Hamid Author-Name: Mochammad Fahlevi Author-X-Name-First: Mochammad Author-X-Name-Last: Fahlevi Author-Name: Annuar MD Nassir Author-X-Name-First: Annuar MD Author-X-Name-Last: Nassir Author-Name: Padzil Mohd Hashim Author-X-Name-First: Padzil Mohd Author-X-Name-Last: Hashim Title: Predictors of microfinance sustainability: Empirical evidence from Bangladesh Abstract: Poverty reduction and sustainability are the two major issues in achieving sustainable development. Microfinance emerged as an essential catalyst for socioeconomic development and financial inclusion to reduce poverty. MFIs cannot meet their primary objective of poverty reduction if they are not sustainable financially. With the theoretical support of the Profit Incentive theory, this paper examines the financial sustainability of microfinance providers (MFPs) in Bangladesh. A financial sustainability index (FSI) is developed by using Principal Component Analysis (PCA). This study analyzes the data using two-step system GMM from 2006 to 2018 collected from the MIX market of the World Bank. The results show that loan size, number of borrowers, percentage of women borrowers, and inflation significantly impact FSI positively. Organizational structure, liquidity, leverage, cost per borrower and GDP have significant negative impacts on the financial sustainability of the microfinance sector of Bangladesh. Upon further analysis, the estimates demonstrated that national governance indicators have a negative impact on the relationship between organizational structure, average loan balance per borrower and FSI. Similarly, a stronger national governance reduces (erases) the negative effect of number of borrowers and cost per borrower on FS of MFPs of Bangladesh. This study incorporated all six dimensions of the national governance indicators and developed a new financial sustainability index for measuring the financial sustainability of microfinance providers. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2202964 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202964 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2202964 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2191449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ramesh C. Paudel Author-X-Name-First: Ramesh C. Author-X-Name-Last: Paudel Title: Capital expenditure and economic growth: A disaggregated analysis for Nepal Abstract: This paper, using the most recent dataset, examines the government expenditure’s effects on the economic growth of Nepal. In doing so, a particular focus is made on disaggregated government expenditures to identify the importance of sector-specific public expenditure. The methodology adopted in this paper considers the scenario of government budget constraints while allocating resources in specific sectors and attempts to find the elasticity of those expenditures in the country’s economic growth. The results from the estimation employing Auto-regressive distributed lag (ARDL) approach to cointegration for the data from 1981 to 2020 are threefold. First, both capital and current expenditures in aggregate forms are not the contributors to economic growth unlike our assumption that capital expenditure is more important than current expendtirue for economic grwoth. Second, spending more on education, either in the form of capital or current expenditure, would make a meaningful contribution to accelerating economic growth. Third, the public expenditure in the health sector should be very rational, focusing more on capital health expenditure rather than spending current health expenditure. Therefore, the primary policy recommendation from this study is that Nepal should invest more in education and health. Moreover, spending on education to expand the area with wider coverage and quality logistics and infrastructure are both important, while such expenditure in health is to be focused on solid health logistics and infrastructures. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2191449 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191449 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2191449 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nam Thanh Vu Author-X-Name-First: Nam Thanh Author-X-Name-Last: Vu Author-Name: Ngoc Hong Nguyen Author-X-Name-First: Ngoc Hong Author-X-Name-Last: Nguyen Author-Name: Thao Tran Author-X-Name-First: Thao Author-X-Name-Last: Tran Author-Name: Binh Thien Le Author-X-Name-First: Binh Thien Author-X-Name-Last: Le Author-Name: Duc Hong Vo Author-X-Name-First: Duc Hong Author-X-Name-Last: Vo Title: A LASSO-based model for financial distress of the Vietnamese listed firms: Does the covid-19 pandemic matter? Abstract: Financial distress is a vexing managerial challenge for businesses worldwide, especially during a turbulent period like the COVID-19 pandemic. Motivated by an increasing number of closed businesses in Vietnam during the recent COVID-19 pandemic, this study is conducted to provide a comprehensive analysis of financial distress for Vietnamese listed firms. Machine learning approaches are employed using the annual data of 492 listed firms from 2012 to 2021. Specifically, we aim to identify the appropriate distress predictors for the Vietnamese listed firms using LASSO, a technique known to be superior compared to other variable selection techniques. Empirical results reveal that there are four key financial distress predictors for the Vietnamese listed firms, namely the ratios of (i) working capital and total assets, (ii) retained earnings and total assets, (iii) earnings before interest and taxes and total assets and (iv) net income and total assets. We also conducted an industry-level analysis and found that the Energy sector experienced the highest number of financially distressed firms during Covid-19. In contrast, Communication Services, Health Care, and Utilities had the lowest number of distressed firms. Policy implications have emerged based on these important findings from our analysis. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210361 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210361 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2197699_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Meghna Aggarwal Author-X-Name-First: Meghna Author-X-Name-Last: Aggarwal Author-Name: Keyurkumar M Nayak Author-X-Name-First: Keyurkumar M Author-X-Name-Last: Nayak Author-Name: Viral Bhatt Author-X-Name-First: Viral Author-X-Name-Last: Bhatt Title: Examining the factors influencing fintech adoption behaviour of gen Y in India Abstract: The main impetus of the research is to inquire into the fintech adoption behaviour of India’s GenY population. The focus of this research paper is to enlarge the scope of the planned behaviour theory by including other exogenous variables, information quality (IQ), and readiness to pay for privileges. Responses from the 349 selected higher education students based on judgmental sampling were collected from various institutes of repute in India. The suggested framework was evaluated using the Smart PLS 4 software bootstrapping method. It was found that multiple hypotheses framed in the study exert notable impact besides the belief that there is a direct linkage between observed behavioural control (OBC) and actual intention (AI). The paper confirms the application of the theory of planned behaviour for the effective implementation of fintech in India. It was observed that information quality is one of the crucial elements which influences the fintech adoption behaviour. The research enriches past studies by expanding the blueprint of a theory of planned behaviour by identifying the information quality factor as the influencing intent and behaviour. The reliability and validity of the suggested framework were analyzed after keeping in mind the impact of a business environment’s constantly changing dynamic forces. The study identified the primary constructs affecting the fintech adoption behaviour with a particular focus on the GEN Y population of India. It will also help the financial technocrats to optimally utilize the immense underlying capabilities of the fintech users and strategically launch more user-friendly products and services. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2197699 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2197699 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2173124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Heitham Al-Hajieh Author-X-Name-First: Heitham Author-X-Name-Last: Al-Hajieh Title: Predictive directional measurement volatility spillovers between the US and selected Asian Pacific countries Abstract: Since portfolio management relies on the association of portfolio diversification, analyzing the spillover between the United States (US) and Asian-Pacific financial markets has become more critical. If Asian stock markets have low or negative correlations with each other and/or the US market, global investors may benefit from diversification. This study examines the return and volatility spillover between the S&P 500 and 12 Asian stock markets using weekly data from January 2000 to February 2020. DECO-GARCH models are employed to measure volatility transmission between markets. A generalized VAR, variance decomposition, and spillover index is employed to investigate the directional spillover across the sample, allowing for a focus on the interdependence of the conditional returns, conditional volatility, and conditional correlations between the stock markets. Hedge ratios and portfolio weights use to examine the results’ implications for international portfolio diversification and risk management. The study calculates the effectiveness of hedging equities portfolios between markets, using the beta hedge approach to minimize the risk of this stock market index returns portfolio. The results demonstrate that Hong Kong and Singapore have a clear direction of a return to other stock markets, whereas China has a clear net recipient. The US market does not provide a superior hedging ratio for Asia-Pacific nations. For other stock markets, India, Hong Kong, and New Zealand have the best hedge ratios, portfolio weights, and hedging efficacy. Finally, this research raised the information linked between the stocks market index and can also apply to improve international portfolio by re-considering the cheapest hedging markets and improving the trading strategies in international markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2173124 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2173124 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2204606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Benedict Huruma Peter Mwakabungu Author-X-Name-First: Benedict Huruma Peter Author-X-Name-Last: Mwakabungu Author-Name: Jignesh Kauangal Author-X-Name-First: Jignesh Author-X-Name-Last: Kauangal Title: An empirical analysis of the relationship between FDI and economic growth in Tanzania Abstract: This study examines causal relationship between foreign direct investment (FDI) inflows and economic growth in Tanzania during 1990–2020. As financial development and trade were not incorporated in extant studies, we included them as intermediate variables because of their intermediation role in this study. FDI inflow is considered an important economic growth catalyst in developing economies. Neoclassical growth theories claim that it enhances economic growth by augmenting capital stock and technology. According to the neoclassical theories, FDI does not enhance the long-run growth rate but instead is related to the level of output. However, empirical evidence is rather mixed, with some supporting the neoclassical theoretical views on economic growth, while others opposing them. We employ the autoregressive distributed lag model and Granger causality tests to analyze the relationship. The results indicate that there exists a long-run relationship among the variables under considerations in Tanzania. Furthermore, the finding reveals positive and statistically significant unidirectional causality running from FDI inflow to economic growth in Tanzania in the long and short run. Hence, we conclude that Tanzania should emphasize FDI-led growth policies to enhance economic growth to realize the desired economic objectives. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2204606 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2204606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2204606 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189562_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vu Thi Kim Hanh Author-X-Name-First: Vu Author-X-Name-Last: Thi Kim Hanh Author-Name: Nguyen Hong Nga Author-X-Name-First: Nguyen Author-X-Name-Last: Hong Nga Title: The effect of labor and capital on transportation logistics’ development: The case of Ho Chi Minh, Vietnam Abstract: The objective of this study was to measure eight variables, which included total labor, female labor, trained labor, high school labor, annual capital, asset and long-term capital, state capital, and abroad capital. A second objective was to assess which variables impact labor productivities, capital productivities, and gross domestic product (GDP) growth in four provinces in the southern key economic region in Vietnam. It also assessed how the GDP growth of transportation logistics in Ho Chi Minh (HCM), the GDP growth of HCM, and the GDP growth of Vietnam are impacted by the above eight variables and how they affect each other. The methodology used included the Cobb-Douglas formulation employed in a structural equation modeling (SEM) analysis and five steps of SEM’s goodness of fit testing. The software used is Stata 17.0. Some remarkable findings are: Firstly, trained labor had a total and direct positive impact on both goods labor productivity and passenger labor productivity. Secondly, state capital had no effect on goods labor productivity, passenger labor productivity, goods capital productivity, and passenger capital productivity. Thirdly, while trained labor positively affected the growth of Tay Ninh Province, state capital negatively affected the GDP growth of Tien Giang Province. Fourthly, trained labor indirectly negatively affected the GDP growth of transportation logistics in HCM. The implications are that, based on the magnitude of the coefficients, the direction of the effects, the number of variables that affect and are affected, and the magnitude of the effects, we believe that trained labor should be decreased while the GDP growth of transportation logistics should be increased in HCM. State capital had a direct and negative impact on GDP growth in Tien Giang Province; our recommendation is that state capital should be reduced in order to increase GDP growth in Tien Giang Province. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189562 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189562 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Oluchukwu F Anowor Author-X-Name-First: Oluchukwu F Author-X-Name-Last: Anowor Author-Name: Hyacinth E Ichoku Author-X-Name-First: Hyacinth E Author-X-Name-Last: Ichoku Author-Name: Vincent A Onodugo Author-X-Name-First: Vincent A Author-X-Name-Last: Onodugo Author-Name: Chinedu Ochinanwata Author-X-Name-First: Chinedu Author-X-Name-Last: Ochinanwata Author-Name: Peter Chika Uzomba Author-X-Name-First: Peter Chika Author-X-Name-Last: Uzomba Title: Does investment in education and health impact youth employment outcomes? Evidence from Sub-Saharan Africa Abstract: Labour engagement, underutilization and unemployment has dominated discourse in development literature in developing economies. It tangentially dictates the direction of migration, gross domestic output and in some cases, youth restiveness. This study investigated the unique relationship between investment in human capital proxied by spending in education and health and its effects on youth employment outcomes in Sub-Saharan Africa (SSA). Annual data spanning 1995–2017 were obtained from 40 SSA countries comprising 920 macro panel observations. The bootstrap-based bias correction for the panel fixed effects estimation technique was employed to improve on the analytical corrections. Findings suggest that human capital investment comprising private and government health expenditures, primary, secondary and tertiary education expenditures were found to have varying significant impact on youth employment in SSA. The policy implication is that to reverse the perennial problem of youth unemployment in SSA would require serial consistent disproportionate investment more in education than in health. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160128 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2213876_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Andrew C. Meek Author-X-Name-First: Andrew C. Author-X-Name-Last: Meek Author-Name: Seth A. Hoelscher Author-X-Name-First: Seth A. Author-X-Name-Last: Hoelscher Title: Day-of-the-week effect: Petroleum and petroleum products Abstract: This study tests for calendar anomalies in returns for petroleum and petroleum products via the futures market, specifically, the day-of-the-week (DOW) effect. The energy future contracts in this study are the WTI (West Texas Intermediate), Brent, RBOB (Reformulated Blendstock for Oxygenate Blending) Gasoline, Heating Oil, and Natural Gas. Futures provide a more liquid insight into price movements relative to spot prices, where financial market participants can engage. We ensure the most appropriate price is used by focusing on the most liquid contracts by combining the front two months of the studied commodities nearing expiration. Our research shows that the DOW effect varies across the respective energy commodities; however, for investors engaged in trading these futures, our results may help time their trade decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2213876 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213876 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2213015_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Masudul Hasan Adil Author-X-Name-First: Masudul Hasan Author-X-Name-Last: Adil Author-Name: Neeraj R. Hatekar Author-X-Name-First: Neeraj R. Author-X-Name-Last: Hatekar Title: How justified is abandoning money from monetary policy? Evidence from dynamically simulated ARDL Abstract: The stable money demand function is a crucial policy tool of the monetary policy of any central bank, which links the monetary sector of an economy to its real sector. Notably, after the global financial crisis of 2007–08, the role of money has come to be envisaged as an essential issue while formulating and conducting the monetary policy, especially at zero lower bound. It is crucial to know whether money demand is stable for inferring a sound monetary policy. To this end, the present study examines the short- and long-run money demand relationship and its stability in India from 2006:Q3 to 2019:Q4. The study has employed a dynamically simulated autoregressive distributed lag (ARDL) cointegration approach, which shows a well-specified and stable money demand in India after incorporating the inflation forecast variable as one of the essential determinants along with other covariates. Furthermore, the dynamically simulated impulse response also supports the economic relationship among variables. The current finding of stable money demand implies a policy implication in terms of focusing on monetary aggregate, in the ongoing flexible inflation targeting framework, as one of the essential information or indicator variables, which acts as a long-term assessment of short-term interest rate setting behaviour to achieve the macroeconomic goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2213015 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213015 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213015 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189559_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Esmael Abdu Author-X-Name-First: Esmael Author-X-Name-Last: Abdu Author-Name: Mohammd Adem Author-X-Name-First: Mohammd Author-X-Name-Last: Adem Title: Tax compliance behavior of taxpayers in Ethiopia: A review paper Abstract: This review paper attempted to assess the tax compliance behavior of taxpayers in Ethiopia. The objectives were specifically to identify determinants and challenges of tax compliance behavior of taxpayers in Ethiopia. Taxes are the most important sources of the government that make it possible to finance infrastructure, investment, and the provision of services for citizens. Tax compliance involves being aware and complying with tax laws and regulations set by the government and tax authorities. Tax non-compliance is an unwillingness in obeying tax laws and regulations. Tax non-compliance has been a challenge to the government and tax authorities in collecting as much tax as required for the nation. Failure to comply with tax prevents adequate revenue collection of the state. The major challenges of tax compliance in Ethiopia are the complexity of the tax system, inefficiency of tax authorities, lack of tax knowledge and awareness, negative perception of taxpayers, a negative act of tax assessors, absence of tax training, lack of transparency of tax system, arbitrary estimation of taxes, personal financial constraints, political instability and lack of timely tax audit. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189559 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189559 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2187128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Omer Faruk Derindag Author-X-Name-First: Omer Faruk Author-X-Name-Last: Derindag Author-Name: Bisharat Hussain Chang Author-X-Name-First: Bisharat Hussain Author-X-Name-Last: Chang Author-Name: Raheel Gohar Author-X-Name-First: Raheel Author-X-Name-Last: Gohar Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Author-Name: Niaz Ahmed Bhutto Author-X-Name-First: Niaz Ahmed Author-X-Name-Last: Bhutto Title: Food prices response to global and national factors: Evidence beyond asymmetry Abstract: The current series of studies examine how local food prices are affected by domestic and international factors. This research advances the existing body of knowledge by examining this effect at different quantiles, frequencies, and times. We use research data from January 1999 to August 2022 using three local and six global variables as independent variables. Additionally, our study uses recent econometric methods, including Wavelet Coherence, Quantile-on-Quantile Regression (QQR), and Granger Causality in Quantiles (GCQ). Moreover, this research uses the Quantile Regression (QR) approach to determine how reliable the findings are. Based on the GCQ approach, the results demonstrate that the correlation persists at most of the quantiles. Moreover, the WC results demonstrate a substantial association between local prices of food and the independent factors across various frequencies and times. Additionally, QQR estimates demonstrate that the impact of exogenous variables on food prices vary among quantiles. These findings are also supported by the QR method. Last but not least, our study offers policy suggestions obtained based on the results of this study. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2187128 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2187128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2187128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203435_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: George Okello Candiya Bongomin Author-X-Name-First: George Okello Candiya Author-X-Name-Last: Bongomin Author-Name: Charles Akol Malinga Author-X-Name-First: Charles Author-X-Name-Last: Akol Malinga Author-Name: Alain Amani Manzi Author-X-Name-First: Alain Author-X-Name-Last: Amani Manzi Author-Name: Rebecca Balinda Author-X-Name-First: Rebecca Author-X-Name-Last: Balinda Title: Agent liquidity: A catalyst for mobile money banking among the unbanked poor population in rural sub-Saharan Africa Abstract: A large body of research shows that mobile money through its agent networks can potentially increase financial inclusion, especially in the unbanked rural regions of the developing world. This study intends to establish whether agent liquidity has a significant moderating effect in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa. The data were collected from mobile money users through a cross-sectional approach using a semi-structured quantitative questionnaire and Analysis of Moment Structures was used to test for the moderating effect of agent liquidity between mobile money services and financial inclusion. The results revealed a significant moderating effect of agent liquidity in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa with data collected from rural Uganda. Agent liquidity enhances access to and usage of mobile money services by 27 percentage points to spur financial inclusion among the unbanked rural poor population. Similarly, agent liquidity has a direct significant effect on access to and usage of mobile money services among the unbanked rural poor population. Overall, the results showed that agent liquidity plays a significant and positive moderating role between mobile money services and financial inclusion. The findings from this study can help mobile money providers to increase cash float amounts to boost agent liquidity to meet instant cash-in and cash-out demands of customers. Besides, regulations on mobile money agents should be loosen to allow more village “dukas” (small village shops) to offer mobile money financial services to crowd-in more unbanked rural poor population. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203435 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203435 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203435 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2172810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Olufunmilayo Olayemi Jemiluyi Author-X-Name-First: Olufunmilayo Olayemi Author-X-Name-Last: Jemiluyi Author-Name: Leward Jeke Author-X-Name-First: Leward Author-X-Name-Last: Jeke Title: Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? Abstract: In addition to performing their basic fiscal functions, governments in developing economies are constantly challenged by new and re-emerging socioeconomic issues such as insecurity, hunger, natural disaster, collapsing infrastructure and disease outbreaks. These piles of challenges have made the competition for limited resources fierce and hence the need to mobilize more funds. Bearing this in mind, this study explored the role of ICT in mobilizing tax revenue in a trade bloc made up of developing countries—Southern African Development Community (SADC). Using panel data of 12 member countries of the bloc between 2001 and 2020 within the Fully Modified OLS (FMOLS) framework, the estimated parameters of the employed measures of ICT (internet usage and mobile cellular) indicated that ICT has a statistically significant positive effect on tax revenue. The results are consistent for all categories of taxes examined including total tax revenue, taxes on goods and services, and taxes on income, profit and capital gains. Following the outcomes of this study, it is recommended that in addition to sound public finance policies, policies aimed at fostering digital automation of tax processes should be focal in revenue mobilization plans of member countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2172810 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2172810 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tafirei Mashamba Author-X-Name-First: Tafirei Author-X-Name-Last: Mashamba Author-Name: Shenaaz Gani Author-X-Name-First: Shenaaz Author-X-Name-Last: Gani Title: Fintech, bank funding, and economic growth in Sub-Saharan Africa Abstract: The emergence of financial technology (Fintech) has greatly impacted the financial landscape in Sub-Saharan Africa (SSA) in recent years. The impact on bank funding and economic growth in the region cannot be ignored. This paper examines the extent to which Fintech has affected bank funding and economic growth in the region by utilizing data from 56 banks across 19 SSA economies between 2010 and 2020. The analysis was conducted using a covariance-based structural equation modeling method. The results show that Fintech disruptions have triggered an increase in equity funding for banks, while having negligible effects on deposit and long-term debt financing. The study also outlines that Fintech’s limited size within the financial system has ultimately restricted its effects on economic growth in SSA. Furthermore, the study did not find evidence of Fintech mediating the impact on economic growth via the bank funding channel, suggesting that SSA banking systems are capable of resisting Fintech disruptions for financial stability. Overall, these findings highlight the resilience of bank funding structures to Fintech disruptions, emphasizing the importance of prudent funding management and continued investment in Fintech for sustained economic growth in Sub-Saharan Africa. However, as Fintech continues to evolve and grow, policymakers should remain vigilant and monitor its impact on the financial system and economic growth in the region. By understanding the implications of Fintech on bank funding and economic growth in SSA, this paper contributes to the ongoing discussion on the potential benefits and challenges of technological innovations in the financial sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2225916 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2225916 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2161774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sulemana Mumuni Author-X-Name-First: Sulemana Author-X-Name-Last: Mumuni Author-Name: Thomas Mwimba Author-X-Name-First: Thomas Author-X-Name-Last: Mwimba Title: Modeling the impact of green energy consumption and natural resources rents on economic growth in Africa: An analysis of dynamic panel ARDL and the feasible generalized least squares estimators Abstract: The United Nations Sustainable Development Goals (SDGs) 7, 11, and 12 are all aimed at advancing green energy consumption in the fight against the three planetary crises facing the world today: climate change, biodiversity loss, and pollution. Besides, Africa has an abundance of natural resources, yet, the continent continues to witness slow growth and development compared to its counterparts. Therefore, this study, the first of its kind, simultaneously assesses the impact of green energy consumption and natural resources rents on economic growth by applying the dynamic panel ARDL and the Feasible Generalized Least Square (FGLS) estimators on data from 1990 to 2020 for 24 selected African countries. The results show that green energy consumption has a short-run growth-limiting and a long-run growth-enhancing effect in Africa. Also, CO2 emissions have both short- and long-run significant positive impacts on economic growth, while fossil fuel combustion negatively impacts growth both in the short and long run, albeit the effect is not significant in the long run. Similarly, regarding Africa’s natural resource rents’ impact on growth, the results show that total natural resource rents are growth-enhancing in the short run and growth-limiting in the long run. Additionally, both forest and mineral rents have a significant short-run negative impact on growth in Africa. However, in the long run, only the effect of mineral rent is growth-enhancing although generally not statistically significant. These findings provide relevant implications for policy shifts to enhance environmental sustainability, achieve sustainable economic growth, and ensure proper natural resources management in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2161774 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2161774 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2174650_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Han Qing Author-X-Name-First: Han Author-X-Name-Last: Qing Title: The role of public-private partnerships in selling, general, and administrative cost stickiness Abstract: Public-Private Partnerships (PPP) which promotes public welfare is greatly supported by the China government. The authority endorsements relax financial constraints and promote operation efficiency. Using a sample of 9,733 firm-years in the empirical study, it is found that companies participating in PPP projects are associated with greater selling, general, and administrative (SG&A) cost stickiness, and it is more prominent in companies with severe financial constraints. Meanwhile, SG&A cost stickiness is stronger in companies carrying PPP projects in provinces with great amount of PPP investments which alleviates hardship of the government by issuing debts. To verify the causal link between PPP and cost stickiness, it is found that PPP projects can reduce relative changes between productions and demands in companies, implying PPP improve the bargaining power against suppliers and the control of manufacturing cost. Typical PPP projects have great public interest that should be reinforced by high-quality construction and commitments on investments, thus the marginal stickiness brings out incremental social benefit. The overall actual performance of PPP projects in China is good. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2174650 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2174650 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2174650 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Irwan Trinugroho Author-X-Name-First: Irwan Author-X-Name-Last: Trinugroho Author-Name: Aldy Fariz Achsanta Author-X-Name-First: Aldy Fariz Author-X-Name-Last: Achsanta Author-Name: Putra Pamungkas Author-X-Name-First: Putra Author-X-Name-Last: Pamungkas Author-Name: Nugroho Saputro Author-X-Name-First: Nugroho Author-X-Name-Last: Saputro Author-Name: Sari Yuniarti Author-X-Name-First: Sari Author-X-Name-Last: Yuniarti Title: Democracy, economic growth, and income inequality: Evidence from province level data Abstract: Democracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democracy will impact economic growth. In this paper, we, therefore, empirically examine the impact of democracy on economic growth and income inequality at the regional level by studying provinces in Indonesia. A panel data estimation is employed with 335 province-year observations to test our empirical model covering 34 provinces. We find that overall democracy is a detrimental factor to regional economic growth as higher level of democracy needs substantial cost to finance. However, our study reveals that democracy help reduce inequality across provinces as it may open up the possibilities to get more education for marginalized people which then implies for higher income for those people. Several policy implications are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220244 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220244 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220244 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2170000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mohd Hammad Naeem Author-X-Name-First: Mohd Author-X-Name-Last: Hammad Naeem Author-Name: Mohammad Subhan Author-X-Name-First: Mohammad Author-X-Name-Last: Subhan Author-Name: Md Shabbir Alam Author-X-Name-First: Md Shabbir Author-X-Name-Last: Alam Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Author-Name: Mohammad Yameen Author-X-Name-First: Mohammad Author-X-Name-Last: Yameen Title: Examining the role of financial innovation on economic growth: Fresh empirical evidence from developing and developed countries Abstract: From an economic prospective, the relationship between financial innovation and economic growth has always been a critical aspect of the financial system. However, this relationship has not recieved extensive attention in academia. Therefore, this study examines the effect of financial innovation on economic growth in the context of developing and developed countries using 92 cross-sectional data over the period of 2002 to 2020, the fixed effect method of panel regression has been applied to examine the relationship between financial innovation and economic growth. This study has compared the results of developing and developed countries using different combinations of explanatory variables. The results of this study depict that various combinations of variables have varied impacts on dependent variable. This study has revealed the negative relationship between financial innovation and economic growth. However, domestic credit to private sector banks has the best proxy for financial innovation. This study suggests that regulators should focus on encouraging and discouraging financial innovation based on its impact on the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2170000 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2170000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2170000 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2162689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Nderitu Githaiga Author-X-Name-First: Peter Nderitu Author-X-Name-Last: Githaiga Author-Name: Andrew Wenani Kilong’i Author-X-Name-First: Andrew Wenani Author-X-Name-Last: Kilong’i Title: Foreign capital flow, institutional quality and human capital development in sub-Saharan Africa Abstract: This study investigates the moderating effect of institutional quality on the relationship between foreign capital flow and human capital development in sub-Saharan Africa. The study uses a sample of 34 countries in sub-Saharan Africa and data for 2009 to 2019. Human capital development is measured using the Human Development Index (HDI). To control for endogeneity, the study uses the system generalized method of moments (GMM) estimator. The results demonstrate a positive relationship between remittances, foreign direct investment (FDI), institutional quality and human capital development. Official development assistance (ODA), on the other hand, has a negative and significant effect on human capital development. The findings further reveal that the effect of remittances and FDI on the human capital development is moderated by the institution’s quality. However, the effect of ODA on the development of human capital is not influenced by institutional quality. Findings from the study provide valuable insights to policymakers. This study highlights the importance of remittances and FDI in stimulating human capital development in sub-Saharan Africa. Additionally, the study reveals the harmful impact of official development on human capital development that necessitates policy interventions. Drawing on these findings, policymakers should undertake policy reforms to improve the quality of institutions and enhance the impact of foreign capital flows on human development. This study offers two contributions. First, the study fills a vacuum in the literature by focusing on the relationship between foreign capital flow, institutional quality, and the development of human capital in sub-Saharan Africa. Second, the SSA is one of the developing nations that has seen a significant brain drain because of widespread migration to industrialized nations. Therefore, it is necessary to investigate how much foreign capital flows through the development of human capital contribute to the socio-economic change of the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2162689 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2162689 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Arif Lukman Santoso Author-X-Name-First: Arif Lukman Author-X-Name-Last: Santoso Author-Name: Fakarudin Kamarudin Author-X-Name-First: Fakarudin Author-X-Name-Last: Kamarudin Author-Name: Bany Ariffin Amin Noordin Author-X-Name-First: Bany Ariffin Author-X-Name-Last: Amin Noordin Author-Name: Lau Wei Theng Author-X-Name-First: Lau Author-X-Name-Last: Wei Theng Title: Islamic ethics commitment and bank outcomes: Evidence in South East Asia Abstract: Ethical values in corporations and businesses are inseparable. Religious norms revise the system and economic law as a code of ethics and discipline applied to solve moral problems in business. This study analyzes the disclosure of Islamic Ethics commitment in the annual report of Islamic banking in South East Asia and the effect on Bank Outcomes. Bank Outcomes in this study are financial performance and business risk during 2012–2019. This study used 29 full-fledged Islamic banks in Southeast Asia. The results showed that Islamic Ethics Commitment (IEC) positively affects financial performance, measured by return on asset (ROA). However, if ROE measures financial performance, IEC does not correlate. The IEC also negatively correlates with business risk measured by banks’ liquidity and financing risk (Deposit to Asset ratio and Non-Performing Financing). The test is robust when financial performance is measured by banks’ Net Interest Margin (NIM), and the financing-to-deposit ratio (FDR) measures business risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175458 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175458 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2167356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Esat Durguti Author-X-Name-First: Esat Author-X-Name-Last: Durguti Author-Name: Erëza Arifi Author-X-Name-First: Erëza Author-X-Name-Last: Arifi Author-Name: Emine Gashi Author-X-Name-First: Emine Author-X-Name-Last: Gashi Author-Name: Muhamet Spahiu Author-X-Name-First: Muhamet Author-X-Name-Last: Spahiu Title: Anti-money laundering regulations’ effectiveness in ensuring banking sector stability: Evidence of Western Balkan Abstract: The paper aims to provide an in-depth understanding of the effectiveness of anti-money laundering (AML) regulations in measuring banking sector stability in Western Balkan countries, as well as to explore the possibility of enhancing banking sector policy and performance. The study employs a quantitative methodology created on secondary data from 2012 to 2021. The data analysis methodology incorporates static and dynamic approaches to examine the banking sector stability using OLS and 2SLS. The results of the study show that the tight $${\rm{AM}}{{\rm{L}}_{{\rm{i}},{\rm{t}}}}$$AMLi,t implementation of both approaches has a positive and statistically significant impact on the banking sector stability ($${\rm{BSS}}$$BSS). The value of the paper is unique in that it applies the most recent data in this field for Western Balkans countries, and it brings benefits for a better understanding of the effectiveness of $${\rm{AML}}$$AML regulations. The research will encourage fruitful discussion among policymakers, practitioners, researchers, and financial institution executives. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2167356 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2167356 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2153412_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Oluwatoyin Esther Akinbowale Author-X-Name-First: Oluwatoyin Esther Author-X-Name-Last: Akinbowale Author-Name: Heinz Eckart Klingelhöfer Author-X-Name-First: Heinz Eckart Author-X-Name-Last: Klingelhöfer Author-Name: Mulatu Fekadu Zerihun Author-X-Name-First: Mulatu Fekadu Author-X-Name-Last: Zerihun Title: Application of forensic accounting techniques in the South African banking industry for the purpose of fraud risk mitigation Abstract: The purpose of this study is to investigate the application of forensic accounting techniques in relation to fraud risk mitigation. This study employed an explanatory research design and a qualitative approach accompanied with a purposive sampling method. A primary data source was devised with a focus on the 17 licensed commercial banks registered in South Africa. By obtaining a true reflection of the situations in the banks, a conclusion was drawn following the outcome of the inferential statistical analysis. The research was conducted at the individual and organisational levels, with the bank consultants presenting their views. One hypothesis was formulated and non-parametric statistical analyses involving the use of Chi-square test, Fisher's Exact test and Spearman’s correlation were carried out. The results obtained substantiate that the loopholes created as a result of non-effective application of forensic techniques are partly responsible for some cyberfraud incidents in the banking industry. There is no sufficient evidence to ascertain whether the fraud risk assessment and management in the banking industry has a relationship with the effective application of forensic accounting techniques in terms of the identified causes of cyberfraud. However, the findings establish a positive correlation between fraud risk assessment and management as it relates to forensic accounting implementation. This study provides an insight into the significance of forensic accounting applications for fraud risk mitigation. There is still a death of information regarding the forensic accounting for fraud risk mitigation; hence, it is envisaged that this study will add to the existing literature in this regard. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2153412 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2153412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2153412 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210914_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jean Tony Ezako Author-X-Name-First: Jean Tony Author-X-Name-Last: Ezako Title: “Analyze of inflation and economic growth relationship in Burundi” Abstract: The objective of this paper was to analyse the relationship between inflation and economic growth in Burundi and to determine whether there is an inflation threshold or not to allow monetary authority to adopt the optimal policies to deal with shocks. With annual data from 1990 to 2020, the ARDL approach is adopted to assess the short and long run relationship between inflation and economic growth. The results showed a negative and significant relationship in the short run between inflation and economic growth, and a positive and significant relationship between investment, household consumption, and exchange rate with economic growth in the long run. Moreover, with the conditional least square (CLS) method used to determine the threshold, an inflation threshold of 13% above which inflation is harmful to growth by 3.7% was found. In addition, two stage least square (2SLS) was used for robustness checking and yielded the same results. We recommend to policy makers to target an inflation ceiling of 13%, to coordinate the various policies, whether monetary, budgetary and fiscal, and to promote investment and improve the structure of production. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210914 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210914 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210914 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2207928_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alula Tafesse Author-X-Name-First: Alula Author-X-Name-Last: Tafesse Author-Name: Samuel Dema Author-X-Name-First: Samuel Author-X-Name-Last: Dema Author-Name: Abrham Belay Author-X-Name-First: Abrham Author-X-Name-Last: Belay Title: Irrigated Onion Production Efficiency in Humbo District, Southern Ethiopia Abstract: The study sought to establish the level of technical, allocative, and economic efficiencies in irrigated onion production in southern Ethiopia, as well as to identify the sources of inefficiencies. The cross-sectional data were obtained from a total of 165 random onion farmers selected from the Humbo area. The parametric stochastic frontier model was used to estimate technical, allocative, and economic efficiency levels, whilst the two-limit Tobit model was utilized to identify determinants of inefficiencies. The data acquired suited the Cobb-Douglas (CD) production function, with land, labor, fertilizer, and chemicals as input factors that had a positive and significant influence on irrigated onion production. The sampled onion farmers’ technical, allocative, and economic efficiencies were determined to be 77, 88, and 68%, respectively. The model results indicated that the age of the farmers, years of education, and total farm financial gain were identified as important sources of irrigated onion production inefficiencies in the research area. The mean technical efficiency levels indicate that irrigated onion producer farmers in the research area may raise their output by 23% with present inputs and technology. Alternatively, farmers will reduce their average production price by 12% while maintaining the current level of output. It is based on this that there is room to improve the efficiency of irrigated onion production. Therefore, the government’s policies and actions should focus on timely and quality agricultural input supply for onion farmers and backing them through availing of formal and informal educational services. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2207928 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207928 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2207928 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186046_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hinsene Lemma Wegari Author-X-Name-First: Hinsene Lemma Author-X-Name-Last: Wegari Author-Name: Sisay Tolla Whakeshum Author-X-Name-First: Sisay Tolla Author-X-Name-Last: Whakeshum Author-Name: Negese Tamirat Mulatu Author-X-Name-First: Negese Tamirat Author-X-Name-Last: Mulatu Title: Human capital and its impact on Ethiopian economic growth: ARDL approach to co-integration Abstract: Maintaining human capital at an optimal level is among the important mechanisms for ensuring steady economic growth. This study aims to examine the impact of human capital on Ethiopia’s economic growth. The study used the ARDL model applying annual data for the period 1980 to 2020. The ARDL-bound test was used to evaluate the presence of con-integration between human capital and independent variables. The study also applied the augmented Dickey-Fuller and Phillips-Perron unit root tests to check the stationarity of the variables. The test result presented that almost all variables become stationary after the first difference. Accordingly, the result from the bound test indicated the existence of a long-run relationship between the dependent variable and independent variables entered into the model. The estimated error correction model with a − 0.9528 coefficient also confirmed the existence of co-integration with a high speed of adjustment towards the long-run equilibrium. In the long-run real GDP, education expenditure, health expenditure, labor force, gross capital formation, total government expenditure, official development assistance, secondary school enrolment, consumer price index, drought, and policy change have astable long-run connection. The finding indicates an increasing ratio of health expenditure and secondary school enrollment should be designed, among others, to contain improved human capital in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186046 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186046 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Minati Sahoo Author-X-Name-First: Minati Author-X-Name-Last: Sahoo Author-Name: Kailash B.L. Srivastava Author-X-Name-First: Kailash B.L. Author-X-Name-Last: Srivastava Author-Name: Neeraj Gupta Author-X-Name-First: Neeraj Author-X-Name-Last: Gupta Author-Name: Sachin Kumar Mittal Author-X-Name-First: Sachin Kumar Author-X-Name-Last: Mittal Author-Name: Priti Bakhshi Author-X-Name-First: Priti Author-X-Name-Last: Bakhshi Author-Name: Tarun Agarwal Author-X-Name-First: Tarun Author-X-Name-Last: Agarwal Title: Board meeting, promoter CEO and firm performance: Evidence from India Abstract: The study examined the relationship between board characteristics and firm performance and the moderating effects of firm size, the board size, and firm age between board characteristics and firm performance. This study considers the legal reforms implemented after the Indian Companies Act 2013. Data from 113 firms with 904 observations from 2012–13 to 2019–20 were analyzed using the fixed panel data estimation approach. A subsample analysis is employed, dividing the data by firm size, the board size, and firm age to test the robustness of the results. The results show that the board size, female director, Promoter CEOs, meeting frequencies, and attendance rate positively affect firm performance. At the same time, the impact of the independent directors and busy CEO has a negative impact on performance. Male CEOs are beneficial for firm performance. The study adds to the literature by identifying critical board characteristics in light of ongoing regulatory reform in emerging economies like India. It has implications for regulators and policymakers who are entrusted with the framing of corporate governance policies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175465 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175465 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2189671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hansen Tandra Author-X-Name-First: Hansen Author-X-Name-Last: Tandra Author-Name: Arif Imam Suroso Author-X-Name-First: Arif Imam Author-X-Name-Last: Suroso Title: The determinant, efficiency, and potential of Indonesian palm oil downstream export to the global market Abstract: This study aims to investigate the determinants, efficiency, and potential of Indonesian palm oil downstream exports to the global market during 2012–2020. The stochastic frontier gravity model (SFGM) has been used to estimate the determinants, efficiency, and potential of palm oil downstream exports. The determinants show that the gross domestic product (GDP) importer, Indonesia’s GDP per capita, the bilateral exchange rate, colonialization, and World Trade Organization (WTO) membership have a positive and significant impact on Indonesia’s palm oil downstream exports. Nevertheless, there are negative and significant effects from Indonesia’s GDP, geographical distance between Indonesia and trading partners, the importer’s GDP per capita, and landlocked countries. In addition, the results reveal that no destination countries have maximum efficiency. Moreover, Indonesia has 148 countries that can be classified as trade potential growth in the global market. Therefore, there is a vast potential for the export of Indonesian palm oil downstream in the global market. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2189671 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189671 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kindineh Sisay Author-X-Name-First: Kindineh Author-X-Name-Last: Sisay Author-Name: Tessema Toru Author-X-Name-First: Tessema Author-X-Name-Last: Toru Title: Households’ willingness to pay for the restoration of degraded forest: empirical evidence from Dengego model tree-based restoration project site, Haramaya District, Ethiopia Abstract: Forests are admitted as a home for many inestimable goods and services that have an economic value for people living around. However, now a day, due to unsustainable utilization, different destructive human activities and natural phenomena’s, most forest resources and their benefits become highly deteriorated from time to time. Hence, this study aimed in estimating households’ willingness to pay for the intervention of forest restoration is found to be a vital step for priority setting in its sustainable management. For doing so, data’s were collected from 226 randomly selected households of Haramaya district, Oromia National Regional State, Ethiopia. For analyzing the collected data, descriptive statistics, inferential statistics and econometric models such as, bivariate probit and seemingly unrelated bivariate probit models were used. The result from 221 valid responses showed that 196 (88.69%) households were willing to contribute for the restoration whereas the remaining 25 (11.31%) households were not. This asserts that the proposed intervention was highly accepted by the majority of the sampled households hence they are more willing to sustain it. Following the seemingly unrelated bivariate probit parameter estimate, the mean WTP was about 439 Ethiopian birr per year, per household. Accordingly, by using this mean willingness to pay value, the welfare gain from the intervention (forest restoration and its management) for the study district (Haramaya) was computed to be 23,269,634 Ethiopian birr per year. Moreover, as the bivariate probit model results indicate, the probability of willingness to pay was positively and significantly affected by variables such as, sex, frequency of extension contact, land certificate, livestock holding, and slope of the land whereas, age, off/non-farm income, initial bid value (bid1), size of own land and farm experience affected willingness to pay negatively and significantly. Hence, to improve the participation level of the households, policy makers should target on these variables. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210915 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210915 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Albert Ayi Ashiagbor Author-X-Name-First: Albert Ayi Author-X-Name-Last: Ashiagbor Author-Name: Raymond Dziwornu Author-X-Name-First: Raymond Author-X-Name-Last: Dziwornu Author-Name: Aku Vivian Gbade Author-X-Name-First: Aku Vivian Author-X-Name-Last: Gbade Author-Name: kwasi Offei-Kwafo Author-X-Name-First: kwasi Author-X-Name-Last: Offei-Kwafo Author-Name: Gagakuma Liticia Author-X-Name-First: Gagakuma Author-X-Name-Last: Liticia Title: Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry Abstract: Efficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance industry in Ghana poses management challenges. The main objective of this paper is to measure the efficiency and productivity changes in the life insurance industry in Ghana. The Ghana National Insurance Commission’s annual report data was used in this study. We employ the non-parametric Malmquist productivity change indices and the bootstrap technique to measure the productivity changes of a sample of 19 out of 20 Ghanaian life insurance firms for the period 2015–2020. The empirical results show that the level of output-oriented technical inefficiency of the life insurance industry in Ghana is approximately 17% over the period 2015–2020. This result provides us with a general guide to identify the periods in which the industry is most and least technically efficient. Also, our findings show that the estimate of total productivity changes has retrogressed about 13% over the period in the Ghanaian life insurance industry. We further identified that the deterioration in the productivity is due to efficiency changes. The decomposition of the technological changes also reveals that the life insurance industry did not benefit from pure scale efficiency. This study contributes by encouraging the policy makers and managers of life insurance firm to use scarce resources efficiently and productively in order to stay in business. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2210855 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210855 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2210855 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2170766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Serebour Quaicoe Author-X-Name-First: Serebour Author-X-Name-Last: Quaicoe Title: Elections, economic development and debt servicing in Africa Abstract: Despite the growing public debate on fiscal surprise during election periods in jurisdictions where the democratic dispensation is young, comprehensive empirical works to this effect in the case of Africa are hard to find. This study, therefore, sought to contribute to the debate on two counts. First, the study examines the effect of elections on debt servicing in Africa. Second, the study investigates the joint effect of economic development and elections on debt servicing in Africa. Using data drawn from the World Bank’s World Development Indicators over the period 1985–2015 for 43 African countries, the study provides evidence from the dynamic system GMM and the ordinry least squares estimators to show that— (1) election periods are associated with lower debt servicing in Africa, and (2) economic development is significant in enhancing debt servicing commitments even in election periods. Policy recommendations are provided in line with the growing levels of debt accumulation and unemployment in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2170766 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2170766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2170766 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2197322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sylvester N. Ayambila Author-X-Name-First: Sylvester N. Author-X-Name-Last: Ayambila Author-Name: Umar Adam Author-X-Name-First: Umar Author-X-Name-Last: Adam Author-Name: Benjamin Tetteh Anang Author-X-Name-First: Benjamin Author-X-Name-Last: Tetteh Anang Title: The determinants of non-traditional agricultural exports’ growth in Ghana Abstract: The Nontraditional Agricultural Exports (NTAE) sub-sector is a key contributor to agricultural gross domestic product (GDP) in several developing countries. It has the potential to create jobs and contribute to enhancing food and nutrition security, hence an important pillar to the economies of several countries including Ghana. This study, therefore, examines the factors driving the growth of nontraditional agricultural exports in Ghana using an Autoregressive Distributive Lag (ARDL) model. The study was based on secondary data from the World Development Indicators (WDI) and Food and Agriculture Organization (FAO). The study identified real GDP to be a significant determinant of NTAE’s growth in both contemporaneous and lag forms. Other variables including inflation, gross capital formation and foreign direct investment influence NTAE’s growth through their lag values. Exchange rate, inflation and RGDP significantly determine the growth of NTAEs in the long-run. The study further identified a co-integrating relationship between NTAE and other explanatory variables. The Error Correction Model showed an adjustment speed of 0.41, indicating that 41% adjustment will occur within the first year and it will take 2.4 years for the system to return to equilibrium in the long-run. Based on the findings, the study recommends that Ghana Export Promotion Authority (GEPA) adopts promotional strategies including providing incentive packages to farmers, exhibitions and trade fairs to curtail the declining trend in the growth of the NTAE’s sector. The Ministry of Food and Agriculture (MoFA) should educate farmers on the use of acceptable agronomical practices in the production field. Lastly, Ghana Investment Promotion Center (GIPC) and MoFA should collaborate to identify strategic areas for domestic support and foreign direct investment in the NTAE’s sub-sector to ensure it grows and contributes towards socio-economic development in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2197322 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2197322 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2188713_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Christos Sigalas Author-X-Name-First: Christos Author-X-Name-Last: Sigalas Title: Impact of COVID-19 lockdowns on retail stock trading patterns Abstract: The purpose of this paper is to explore the impact of the first wave of COVID-19 lockdowns on retail stock trading patterns, at a transnational level. Cross-sectional empirical research was utilized with five samples of public companies from the US, Europe, Asia, and blended equity capital markets globally. The impact of the first wave of COVID-19 lockdowns on stock trading patterns was investigated using median tests and the factors that influence retail stock trading were explored with regression analyses. Contrary to the conventional proposition that stock trading activity is reduced during times of crisis, the results of this study indicate that retail stock trading increased during the first wave of COVID-19 lockdowns. In addition, the findings raise awareness of the risks to novice retail investors associated with the increased stock trading due to herd behavior. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2188713 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2188713 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2188713 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2215086_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Emmanuel Abokyi Author-X-Name-First: Emmanuel Author-X-Name-Last: Abokyi Author-Name: Kofi Fred Asiedu Author-X-Name-First: Kofi Fred Author-X-Name-Last: Asiedu Title: Measurement of the impact of buffer stock intervention on food security of smallholder farmers in Ghana by means of the nutrient-content household dietary diversity index Abstract: Buffer stock intervention is a hedging policy against income losses due to price fluctuations, primarily from farming activities, notably the production of cereals. This paper investigates the impact of buffer stock intervention on smallholder farmers’ food security in Ghana. To this end, the motivation was to estimate the nutrient-content household dietary diversity index (NHDDI) based on a cross-sectional data set. We apply Coarsened Exact Matching, Weighted Least Squares, and Weighted Ordered Probit analysis as econometric methods. We find that marital status, gender, education, and income positively impact food security, while the household size and the number of children under five years old have a negative impact. We also find that income and education, which have a positive direct impact on food security, have a mitigating effect on the negative impact of children under five years. The most important finding is that participation in the buffer stock operations improves the household food security of participating smallholder farmers. NAFCO in its present form has positive effects on food security for participants, positive but smaller price effects for non-participating smallholder farmers, and negative effects for consumers at large. The latter effect could be reduced by implementing a buffer stock policy consisting of buying during the glut and selling when supply is tight. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2215086 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2215086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2215086 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2166211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Frank Adu Author-X-Name-First: Frank Author-X-Name-Last: Adu Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Paul Author-X-Name-Last: Alagidede Author-Name: Dennis Boahene Osei Author-X-Name-First: Dennis Boahene Author-X-Name-Last: Osei Author-Name: Michael Effah Asamoah Author-X-Name-First: Michael Effah Author-X-Name-Last: Asamoah Title: Asymmetric effect of tax systems on poverty and inequality: Exploring the distributional impact of domestic resource mobilization systems in Ghana Abstract: Earlier studies have assumed the effect of tax systems on poverty and inequality to be symmetric by imposing linear specifications. In this study, we account for possible asymmetries by re-examining the effect of tax systems on poverty and inequality in Ghana. We rely on the Nonlinear Autoregressive Distributed Lag (NARDL) estimation techni que and time-series data from 1983 to 2016. The findings revealed that, while the nexus between tax systems and poverty is asymmetric, the reverse holds for the relationship between tax systems and inequality. Specifically, we establish that, while positive (negative) shocks in direct taxes raise (reduce) the level of poverty, the shocks in indirect and overall tax systems produce negative results. Moreover, the symmetric evidence is observed only for indirect taxes and inequality in the long-run, and the relationship is positive. We recommend for a poverty reduction strategy that is centered on tax reduction at all levels. Equally important is a policy that has a firm foundation in the indirect tax system to bridge the inequality in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2166211 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2166211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2166211 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2182034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hayleslasie Tsegay Aregawi Author-X-Name-First: Hayleslasie Tsegay Author-X-Name-Last: Aregawi Author-Name: B.C.M Patnaik Author-X-Name-First: B.C.M Author-X-Name-Last: Patnaik Title: Impact of Government Intervention on Manufacturing Enterprises Innovation level, in Ethiopia Abstract: Besides alert devastation situation of Small Manufacturing Enterprises (SMEs) in the country, what support receives from the government, banking, microFinance institutions, technology transfer and their role in the local economic development are the main issues that need to be addressed. Hence, the main objective of the study is to evaluate the impact of government intervention on the Small Manufacturing Enterprises Innovation level in Tigray, Ethiopia. For this purpose, we conducted a survey of 464 small manufacturing enterprise (textile and garment, metal and wood works, input for construction, chemical products, jewellery, and agro-processing sectors) owners. The study is, stressed the primary data, adopt a Cross-sectional survey study with a mixed research approach, and the types of research are explanatory. Multistage cluster sampling was applied to select each business owner. Descriptive statistics, chi-square test, propensity score matching and logistic regression were relayed for the analysis part with the help of Stata version 12. The average score innovation level of the enterprise is found at 2.89 which is assembled under the low innovators in the sample of the enterprise analyzed. Innovations activity has performed with the highest score level in the customer dimension. With regard to the PSM estimated, government intervention plays a significant role in utilizing innovation and technology transfer. Likewise, in a binary logistic regression, the study found that the intervention of the program has a positive effect on the innovation process dimension. Before and after matching, the findings of both models are similar in terms of the owner’s innovation of offering dimension, solution dimension, customer dimension, and value capture, which is positive and significant. Designing a new government policy intervention of Small Manufacturing Enterprises is among the resolutions to be applied by the government for purpose of productivity enhancement, self-employability, sustainability of the business and transforming to produce innovative products to replace imported goods. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2182034 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2182034 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2182034 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2207266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: John Fry Author-X-Name-First: John Author-X-Name-Last: Fry Author-Name: Olamide Ibiloye Author-X-Name-First: Olamide Author-X-Name-Last: Ibiloye Title: Towards a taxonomy for crypto assets Abstract: We explore the taxonomy of cryptocurrencies and integrate our analysis with traditional ways of understanding financial assets. We thus classify cryptocurrencies using the time series and distributional properties of returns. Cryptocurrencies appear inherently speculative in nature. The result is even more clear cut when time series measures of distance are used. Results tally with wider concerns raised regarding excessive volatility of stablecoins. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2207266 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2207266 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tamisai Chipunza Author-X-Name-First: Tamisai Author-X-Name-Last: Chipunza Author-Name: Senia Nhamo Author-X-Name-First: Senia Author-X-Name-Last: Nhamo Title: Fiscal capacity and public health expenditure in Zimbabwe Abstract: Public healthcare financing is important for achieving one of the 2030 Sustainable Development Goals (SDGs), the goal of healthy living and well-being (SDG3). Understanding the impact of fiscal capacity on public healthcare financing helps in assessing the government’s commitment towards attaining SDG3. The study sought to investigate the relationship between fiscal capacity and public health expenditure in Zimbabwe. An Autoregressive Distributed Lag (ARDL) model was estimated using annual time series data for the period 1980–2017. The results of the ARDL model were validated using the Fully Modified Ordinary Least Squares (FMOLS) and Canonical Cointegrating Regression (CCR) methods. The study found that fiscal capacity (measured as the ratio of tax revenue to GDP) impacted positively on public health expenditure. The results suggest that following an improvement in resources, the government prioritised the health sector. The study recommends that the government continues to prioritise health in the national budget to enhance the country’s achievement of SDG3. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175459 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175459 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186042_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mohammed T. Abusharbeh Author-X-Name-First: Mohammed T. Author-X-Name-Last: Abusharbeh Title: Modeling the factors of portfolio at risk for microfinance institutions in Palestine Abstract: The main objective of this paper is to examine the determinants of portfolio at risk in Palestine by analyzing the impact of macroeconomic and micro-level factors on credit risk for microfinance institutions during the period of 2010–2020. This study includes five regulated MFIs using generalized method of moment estimator. The findings indicate that portfolio at risk is more sensitive to the institutional factors and economic cycle. The operating efficiency and number of loan officers have positive and significant effect on credit risk. However, growth in GDP and number of active borrowers have negative and significant effect on credit risk. But, no evidence supports the impact of inflation and interest rate on vulnerability of credit risk. The conclusion presented may be useful for MFI directors and regulators in timely repayments and credit risk control. Overall, our ample evidence suggests that MFIs directors should consider the influence of institutional factors on their investment and credits decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186042 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186042 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186042 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175470_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fitri Yeni Author-X-Name-First: Fitri Author-X-Name-Last: Yeni Author-Name: Sitti Rizki Mulyani Author-X-Name-First: Sitti Rizki Author-X-Name-Last: Mulyani Author-Name: Susriyanti Susriyanti Author-X-Name-First: Susriyanti Author-X-Name-Last: Susriyanti Title: Islamic financial literacy, spiritual intelligence, public perception and behaviour on public interest in Islamic banking services Abstract: This study aimed to determine the effect of Islamic financial literacy, spiritual intelligence, public perception, and behaviour on public interest in Islamic banking services. This research is classified as quantitative research. Islamic financial literacy, spiritual intelligence, and public perception are independent variables. Public behaviour as a mediating variable. The population in this study is the entire community in Padang city who are already customers of Islamic banks. The sample is determined by the Hair method, five times the number of indicators, where the number of indicators is 46 items. The number of respondents in this study was 230 people. Data analysis using structural equation model by using Smart-PLS. The results show Islamic financial literacy and public perception have no significant effect on public interest in Islamic banking services. However, spiritual intelligence has a positive and significant effect on public interest in Islamic banking services. Public behaviour fully mediates the relationship between public perception and public interest in Islamic banking services. Islamic banking is expected to be able to educate prospective customers through increasing spiritual intelligence. Public behaviour can be improved with the religiosity community, thereby increasing interest in saving in Islamic banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175470 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175470 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2178123_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Anisa Dwi Utami Author-X-Name-First: Anisa Dwi Author-X-Name-Last: Utami Author-Name: Harianto Harianto Author-X-Name-First: Harianto Author-X-Name-Last: Harianto Author-Name: Bayu Krisnamurthi Author-X-Name-First: Bayu Author-X-Name-Last: Krisnamurthi Title: Exploring the pattern of price interdependence in rice market in Indonesia in the presence of quality differential Abstract: Being the main food commodity, the dynamics of rice prices is one of the most important issues for Indonesian economy. The prices at the retail level and at the farm level are influenced not only by the demand and supply in each of these markets but also by price behavior at the wholesale market. This study aims to analyse the dynamics of the relationship and behaviour of the prices of various varieties and qualities of rice in the wholesale market. The dynamics of rice prices are investigated by employing multivariate vector error correction model (VECM) and using daily price series at wholesale level during the period of 1 October 2014 until 12 February 2018. The results show a strong price relationship between premium-quality rice and medium-quality rice and between medium-quality rice and low-quality rice. Changes in the price of premium-quality rice and changes in the price of low-quality rice will have a large influence on the price of medium quality rice, but not vice versa. Furthermore, regarding the price stabilization policy, the results suggested that the policies aimed at regulating medium-quality rice prices are estimated to have relatively weak effects on the prices of premium-quality rice and low-quality rice. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2178123 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2178123 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fan Fei Author-X-Name-First: Fan Author-X-Name-Last: Fei Author-Name: Jianing Zhang Author-X-Name-First: Jianing Author-X-Name-Last: Zhang Title: Chinese stock market volatility and herding behavior asymmetry during the COVID-19 pandemic Abstract: The primary purpose of this paper is to explore the herding behavior in the Chinese stock market during COVID-19 and the asymmetry of that behavior using the daily returns of A- and B-shares from 2 January 2019, to 15 October 2021. The study uses the cross-sectional absolute deviation model to analyze stock market herding behavior by non-linear polynomial regression. We show that the herding behavior in the Chinese stock market is more prominent during the COVID-19 pandemic. Herding behavior has a negative effect on stock market volatility. Moreover, such a suppressing effect weakened during the COVID-19 pandemic. There is an asymmetry in herding behavior during the bull and bear markets, which is helpful in our investigation of the market’s volatility during the COVID-19 pandemic. The pronounced asymmetry in the herding behavior of the Chinese stock market during COVID-19 is assessed using the E-GARCH (p, q) model. The empirical results of the present study contribute to the literature about herding asymmetry by showing the herding behavior during the health crisis and bull and bear markets. It also helps reconcile the debate about the impact of herding on market stability and provides insightful guidance for investors wishing to invest in the Chinese stock market. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203436 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203436 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183640_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chiang-Ching Tan Author-X-Name-First: Chiang-Ching Author-X-Name-Last: Tan Author-Name: Pick-Soon Ling Author-X-Name-First: Pick-Soon Author-X-Name-Last: Ling Author-Name: Siew-Ling Sim Author-X-Name-First: Siew-Ling Author-X-Name-Last: Sim Author-Name: Kelvin Lee Yong Ming Author-X-Name-First: Kelvin Lee Yong Author-X-Name-Last: Ming Title: Hedge and safe-haven properties of Cryptocurrencies: evidence in east asia-5 market Abstract: This study examined the capabilities of six cryptocurrencies as a hedge and safe haven against the stock indices and foreign exchange rate in the East Asia-5 markets. According, MGARCH-DCC was adopted and implemented in data collection processes together with Rathner and Chiu regression method, which spanned from April 2013 to December 2019. The results revealed that these cryptocurrencies had dissimilar hedging and safe haven capabilities across various stock indices and exchange rates in the East Asia-5 markets. In particular, Bitcoin, Litecoin, and Ethereum offered strong hedge properties on most of the East Asia-5 equity indices. Moreover, Bitcoin and Litecoin only provided a safe haven for Japanese Yen currency, while Taiwanese equity indices and Chinese Yuan currency can be safely protected via an investment into Stellar. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183640 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183640 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dao Ha Author-X-Name-First: Dao Author-X-Name-Last: Ha Author-Name: Yen Nguyen Author-X-Name-First: Yen Author-X-Name-Last: Nguyen Title: Institutional quality’s influence on financial inclusion’ impact on bank stability Abstract: Using the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this effect will be improved if it is implemented in an environment of good institutional quality. This is verified again in terms of institutional quality aspects. Corruption control, political stability, government efficiency, and the rule of law have positive effects, while regulatory quality has negative effects. The results are consistent across all three measures of bank stability, Zscore, standardized Zscore, and non-performing loans (NPL). With the above results, the study recommends that national governments take steps to improve institutional quality to increase the stability of banks in promoting financial inclusion. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190212 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190212 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2202048_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sehar Saleem Author-X-Name-First: Sehar Author-X-Name-Last: Saleem Author-Name: Maria Aslam Author-X-Name-First: Maria Author-X-Name-Last: Aslam Author-Name: Rehan Ahmad Khan Sherwani Author-X-Name-First: Rehan Ahmad Khan Author-X-Name-Last: Sherwani Author-Name: Atif Khan Jadoon Author-X-Name-First: Atif Khan Author-X-Name-Last: Jadoon Author-Name: Ambreen Sarwar Author-X-Name-First: Ambreen Author-X-Name-Last: Sarwar Author-Name: Ijaz Butt Author-X-Name-First: Ijaz Author-X-Name-Last: Butt Title: Determinants of rural household poverty in Pakistan with multilevel approach Abstract: Rural poverty is often discussed in combination with spatial inequality where rural poor face worse problems with diverse remedies in comparison to urban poor. The present study aims to find out area-level effects and possible determinants of rural poverty based on data from the Rural Household Panel Survey of Pakistan Round-1 (2012). The multilevel binary logistic model is used to integrate concurrent individual and district-level variables to explore area-level effects on poverty. A two-level multilevel model is used for the analysis of the poverty status of 4804 respondents nested in 19 districts. Individual-level variables included in the model are education, socioeconomic status, and spending behaviour. It is found that approximately 60% of individuals of the overall population were found poor, and district-level effect accounts for 7% variations in poverty. A particularly significant ratio of poor is found for people who attained deeni madrassa/religious education or no education at all. Poverty existence is significantly associated with spending behavior and socioeconomic status. The persons with relatively middle/high socioeconomic status and successful educational achievement but a lacking attitude toward spending money are considered poor. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2202048 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2202048 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2171575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Laith Akram Al-Qudah Author-X-Name-First: Laith Akram Author-X-Name-Last: Al-Qudah Title: The role of social responsibility accounting in mitigating the economic impacts of the COVID-19 pandemic in Jordan Abstract: The purpose of this research was to determine whether or not social responsibility accounting plays a part in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. The study’s secondary objective was to investigate the COVID-19 pandemic that broke out in Jordan. It is vital to find adequate remedies, just as it is necessary in other nations, in order to avert the damage that this pandemic might cause to society, individuals, and the economy. The methodology of the study centered on utilizing both descriptive and inferential techniques to data collection and analysis. Participants in the survey were 861 branch managers working for Jordanian and international banks that were licensed to do business in the country. Each participant utilized the Purposive Sample Approach while completing one of the 500 questionnaires that were handed out. The research identified a number of conclusions, including the fact that there is a statistically significant role for social responsibility accounting (economic and social) in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. According to the findings of the study, economic and social responsibility accounting both play a part in reducing the impact of adverse economic conditions such as unemployment, budget deficits, and the risk of consumer credit. This study is one of the most important studies in terms of its scientific contribution at the level of Jordan as a Middle Eastern country, as well as for all countries around the world in the process of developing solutions and strategies to mitigate the economic and social consequences of the coronavirus pandemic, as well as the possibility of many future crises, whether as a result of wars or the emergence of new viruses. This study makes a contribution to the formation of research frameworks that researchers from all over the world can use to search for solutions to reduce the effects of the coronavirus pandemic on the global economy as well as the spread of poverty and unemployment as a direct result of the pandemic. This research, which is also a scientific supplement, is intended for companies in all nations throughout the world in order to assist in mitigating the consequences of the coronavirus pandemic. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2171575 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2171575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2171575 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2194128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nazmoon Akhter Author-X-Name-First: Nazmoon Author-X-Name-Last: Akhter Title: Determinants of commercial bank’s non-performing loans in Bangladesh: An empirical evidence Abstract: Non-performing loan (NPL) is a red flag, providing signal of jeopardize for a country’s economy. With respect to increase in NPLs, banking sector of Bangladesh has trapped in gridlock. This problem has become an alarming issue for bank’s sustainability. The present study investigates the determinants of commercial bank’s NPLs in Bangladesh. Due to data deficiency, the study collects data from 30 sampled commercial banks in Bangladesh over the period from 2011 to 2020, as during 2011, the total scheduled commercial banks in Bangladesh were 34. The study performs Random Effect Regression Model, Fixed Effect Regression Model, and one step GMM system to get the robust and significant result. The study reports that firm-specific factors like lag of NPLs, loan loss provision to total equity ratio, equity-to-total asset ratio, capital adequacy ratio, net loan to total deposit and borrowing ratio, return on equity, and macroeconomic factors such as inflation, and GDP ratio are the crucial determinants of NPLs in Bangladesh. The study concludes that commercial banks should operate its activities more efficiently and avoid reckless lending along with mandatory capital requirement in order to reduce NPLs and to ensure profit for their shareholders. The analysis of the study would provide insight guidelines regarding bank’s credit risk management procedures and systems to country’s regulatory body in order to design and adopt required prudential regulations in credit policy. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2194128 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2194128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2194128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2154002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tina Herianty Masitah Author-X-Name-First: Tina Herianty Author-X-Name-Last: Masitah Author-Name: Maman Setiawan Author-X-Name-First: Maman Author-X-Name-Last: Setiawan Author-Name: Rina Indiastuti Author-X-Name-First: Rina Author-X-Name-Last: Indiastuti Author-Name: Adhitya Wardhana Author-X-Name-First: Adhitya Author-X-Name-Last: Wardhana Title: Determinants of the palm oil industry productivity in Indonesia Abstract: This paper investigates total factor productivity growth (TFPG) and its determinants in the Indonesian palm oil sector industries. TFPG is estimated using a growth accounting method. This paper applies the fixed effects model to investigate the determinants of the TFPG. The data is sourced from a manufacturing survey of the Indonesian Bureau of Central Statistics (Badan Pusat Statistika/BPS) for the period 2000–2017. This paper finds that the TFPG of the Indonesian palm oil industry is relatively low. Moreover, output growth, output per worker, export activity, and wages per worker have significant effects on the TFPG. The effect of output growth, which is dominated by the large use of inputs, raises concerns in the aspect of environmental sustainability due to uncontrolled land expansion. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2154002 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2154002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2154002 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Benjamin Tetteh Anang Author-X-Name-First: Benjamin Tetteh Author-X-Name-Last: Anang Author-Name: Clever Kwasi Apedo Author-X-Name-First: Clever Kwasi Author-X-Name-Last: Apedo Title: The influence of off-farm work on farm income among smallholder farm households in northern Ghana Abstract: Income diversification is an essential livelihood strategy among small-scale farmers in low-income countries. Through income diversification, farmers can potentially invest off-farm earnings into their farm business to enhance productivity and income from farming. Conversely, working off-farm can lead to a labour-loss effect which can reduce farm performance. This study therefore assesses the effect of off-farm work (OFW) on farm income using data from 486 smallholder farmers in northern Ghana. An endogenous treatment regression model was used to assess the effect of diversifying income sources on farm income. The results showed that involvement in OFW enhanced farm income per acre by GH¢ 386. Other factors that enhanced farm income included years of formal education and access to extension services and input subsidy. Farmer group membership and household size however reduced farm income. The farm sector can therefore take advantage of the positive linkage with the non-farm sector to improve farm income levels of farmers. In this light, government’s rural industrialization policy should seek to provide more job opportunities outside the farm sector to enable smallholder farmers to take advantage of such opportunities to improve income from on-farm activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196861 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196861 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Luitfred Kissoly Author-X-Name-First: Luitfred Author-X-Name-Last: Kissoly Title: Households’ participation in agri-food based livelihoods: Insights from urban and peri-urban contexts of Tanzania Abstract: Agri-food systems are receiving increased attention globally and more so in the regions like sub-Saharan Africa, owing to a confluence of forces such as population growth, urbanization, migration, and climate change. These ongoing dynamics have considerable transformational implications on the present and future forms of agri-food systems and associated livelihoods. However, empirical evidence on the nature of agri-food-based livelihoods and associated patterns of engagement of households has not kept pace with these dynamics. Using household-level data from a sample of urban and peri-urban households, this study employs descriptive and econometric analyses to assess household participation in agri-food-based livelihood activities. Results illustrate that agri-food systems are a fundamental source of livelihood. A sizable proportion of households is engaged in agriculture (mainly cultivation of permanent and vegetable crops and livestock keeping) reflecting the continued importance of urban and peri-urban agriculture. Results also show that food vending is an important livelihood activity for most households residing in urban areas. Only a relatively small proportion of households participate in processing of agri-produce and transportation. Importantly, the results reveal that agri-food-based livelihood activities in urban and peri-urban settings are far more relied upon by households in lower-income brackets, underscoring the critical role that agri-food system plays enhancing livelihoods of the majority of the urban poor. These findings underline the need for policy and other interventions to prioritize efforts aiming at facilitating an “enabling environment” that fosters inclusive and sustainable agri-food-based livelihoods through, among others, enhancing governance of these activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196859 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196859 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2192455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tsegamariam Dula Sherka Author-X-Name-First: Tsegamariam Dula Author-X-Name-Last: Sherka Title: Factors affecting women’s participation in soil & water conservation in abeshege district Southern Ethiopia Abstract: The primary industry in Ethiopia that makes a significant contribution to economic growth is still agriculture. Despite making a considerable contribution to livelihoods, the sector continues to encounter difficulties since soil degradation and resource depletion have decreased crop and livestock yields. To curb the effects of land degradation, the Ethiopian government has taken serious measures to expand soil and water conservation (SWC) practices across the country. Despite the efforts made, the participation of women in SWC activities has been low. The study was conducted to investigate women’s participation in SWC practices in the Abeshege district of southern Ethiopia. A random sampling procedure was used to select 164 participating and 70 non-participating households from a purposively selected sample of six rural kebeles. Data were collected from both primary and secondary sources using interview designs, focus group discussions, semi-structured interviews, and discussions with key informants. The study found that women participate in various SWC practices, including agroforestry, crop rotation, waterways, stone terracing, and contour plowing, among others. The study findings suggest that education, land size, economically active household members, size of household members, and extension contact were found to significantly affect the participation of women in SWC activities. Therefore, recognize and support women’s active involvement in SWC through tailored policies, programs, and initiatives that address the identified factors affecting their participation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2192455 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2192455 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2192455 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2172803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Imron Mawardi Author-X-Name-First: Imron Author-X-Name-Last: Mawardi Author-Name: Muhammad Ubaidillah Al Mustofa Author-X-Name-First: Muhammad Ubaidillah Author-X-Name-Last: Al Mustofa Author-Name: Tika Widiastuti Author-X-Name-First: Tika Author-X-Name-Last: Widiastuti Author-Name: Wahyu Wibisono Wahid Author-X-Name-First: Wahyu Wibisono Author-X-Name-Last: Wahid Title: Early warning systems in Indonesian Islamic banks: A comparison of Islamic commercial and rural banks Abstract: The study examines the stability of Indonesian Islamic Commercial Bank (ICB) and Islamic Rural Bank (IRB) by employing a Markov Switching Dynamic model of two regimes, stable (tranquil) and unstable (crisis). This study utilizes monthly data between December 2007 and April 2022. Findings show that both ICB and IRB have greater probabilities of remaining in the tranquil regime compared to the period of crisis. Even though ICB Z-scores have a wider range of volatility than IRB Z-scores, the ICB has been shown to recover from crises faster than the IRB. The differences in characteristics between ICB and IRB, as well as swings in the Z-score, do not provide resilience benefits. Thus, both ICB and IRB are equally vulnerable to the crisis. This study’s findings could be used to generate policy for the relevant stakeholders of Islamic banking industries. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2172803 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2172803 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2199550_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Satish Chandra Tiwari Author-X-Name-First: Satish Chandra Author-X-Name-Last: Tiwari Author-Name: Munawar Sayyad Author-X-Name-First: Munawar Author-X-Name-Last: Sayyad Author-Name: Md Sikandar Azam Author-X-Name-First: Md Sikandar Author-X-Name-Last: Azam Author-Name: N S Sudesh Author-X-Name-First: N S Author-X-Name-Last: Sudesh Title: Determinants of WCM of Indian listed firms: A GMM regression approach Abstract: This research paper purposes to discover the reasons that impact the working capital management (WCM) of Indian-listed manufacturing firms. The study uses a panel data set of 291 firms covering years from 2011 to 2020. The authors use working capital requirement (WCR) and cash conversion cycle (CCC) as proxies for working capital management and assess the effect of operating cash flow (OCF), performance as return on assets (ROA), valuation as Tobin’s Q (TQs), size, age, growth opportunities, leverage, and economic condition as the gross domestic product (GDP) over them. We use OLS and GMM estimators for the analysis of the study. Indian listed manufacturing firms’ cash conversion cycle (CCC) has been found to be positively correlated to their firm value, performance, and leverage. At the macro level, CCC is positively correlated to GDP. Further, CCC has been found to be negatively correlated with growth opportunities, operating cash flow, firm size, and age. The working capital requirement (WCR) of the firms, on the other hand, is positively associated with performance, firm age, and value, while it is negatively related to OCF, growth opportunities, leverage, size, and GDP. Our study adds uniqueness to the existing works on working capital in many ways. First, to our knowledge, very few studies exist to measure working capital management in the Indian context using two proxies WCR and CCC of working capital as dependent variables. Second, we used both OLS and GMM estimators to measure the explanatory variable’s effect over WCR and CCC which provided a more valid result. Third, we used eight factors as explanatory variables that provide a wider scope to explain the working capital management of Indian listed firms. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2199550 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199550 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2199550 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2185343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: John Kwaku Mensah Mawutor Author-X-Name-First: John Kwaku Mensah Author-X-Name-Last: Mawutor Author-Name: Ernest Sogah Author-X-Name-First: Ernest Author-X-Name-Last: Sogah Author-Name: Freeman Gborse Christian Author-X-Name-First: Freeman Gborse Author-X-Name-Last: Christian Author-Name: Desmond Aboagye Author-X-Name-First: Desmond Author-X-Name-Last: Aboagye Author-Name: Alexander Preko Author-X-Name-First: Alexander Author-X-Name-Last: Preko Author-Name: Barbara Deladem Mensah Author-X-Name-First: Barbara Deladem Author-X-Name-Last: Mensah Author-Name: Olivia Nanakua Boateng Author-X-Name-First: Olivia Nanakua Author-X-Name-Last: Boateng Title: Foreign direct investment, remittances, real exchange rate, imports, and economic growth in Ghana: An ARDL approach Abstract: The main objective of this quantitative study is to ascertain the effect of foreign direct investment, real exchange rate, remittances, and import on economic growth in Ghana. Secondary data on gross domestic product, foreign direct investment, real exchange rate, remittances, import, and gross capital formation from 1980 to 2018 were analyzed. The study employed Autoregressive Distributed Lag for the econometrics analysis. The study found that foreign direct investment, real exchange rate, remittances, import, and gross capital formation cointegrates with economic growth. The main findings are that foreign direct investment, real exchange rate, import, and remittances matter from growth perspective. Remittances have a positive and significant effect on economic growth in Ghana both for the short run and the long run. The study also revealed that foreign direct investment, real exchange rate, and imports have a negative and significant effect on the growth process of Ghana’s economy for both the short run and the long run. The study recommends that the Ministry of Finance, Ghana, financial analysts and other policy makers should undertake steps to reduce imports and attract more remittances inflows to attain long-run economic growth. In addition, the economy must concentrate on viable exchange rate policies such as undervaluation of currency to stimulate sustainable economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2185343 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2185343 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2197323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Abreham Adera Author-X-Name-First: Abreham Author-X-Name-Last: Adera Title: Do migrant remittances have state de-legitimizing tendencies? A micro-survey based evidence from Africa Abstract: This paper examines the micro-level link between migrant remittances and state legitimacy. The paper argues that there are two theoretical channels through which remittances may ultimately erode state legitimacy. First, remittance income earners may use remittance income to bribe state institutions, and thus may feel that they do not need to abide by the laws those state institutions enact. Second, remittances provide funds for political mobilization and thus may enhance uprisings against autocratic states. I test these claims using individual-level pooled data from 3 rounds of the Afrobarometer surveys. For the quantitative analysis, I use multiple linear regression, propensity score matching, and an informal method of testing for omitted variables bias. Overall, the findings of the study show that remittance-receiving Africans hold de-legitimizing behavior towards the state. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2197323 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2197323 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ayesha Sayed Author-X-Name-First: Ayesha Author-X-Name-Last: Sayed Author-Name: Christo Auret Author-X-Name-First: Christo Author-X-Name-Last: Auret Title: Speculative ratios and returns volatility in the South African white maize futures market Abstract: This paper examines the relationship between trading activity and returns volatility in white maize futures listed on the South African Futures Exchange (SAFEX) and investigates the impact of speculative activity on volatility. Returns volatility is estimated using a GARCH (1,1) model. Trading activity changes are observed by computing two negatively correlated ratios from daily trading volume and open interest. The dynamic relationship between volatility and trading activity is explored over the period April 2000 to May 2022 using a vector autoregressive framework. The paper examines not only the Granger-causality between speculative and hedging ratios and volatility but also assesses their interactions through variance decomposition and impulse response functions. The first ratio, of volume to open interest, is used to capture speculative market activity; and the second, a ratio of the change in open interest to volume, is used to reflect the activity of hedgers. The results shed light on the effectiveness of targeting speculators for regulation in grain futures markets, while also contributing to the veracity of price limits in effectively moderating volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160127 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160127 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160127 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2173125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Manh Dung Tran Author-X-Name-First: Manh Dung Author-X-Name-Last: Tran Author-Name: Hong Hanh Ha Author-X-Name-First: Hong Hanh Author-X-Name-Last: Ha Title: Corporate governance disclosure and annual reports quality: An investigation in Vietnam context Abstract: Corporate governance reports (CGR) and annual reports are two fundamental corporate documents disseminated to shareholders about the companies’ financial condition and operation. While the annual reports could be seen as outside appearance, the CGR reflects internal processes that an entity monitors the actions, policies, practices and decisions (Muttanachai and Thanyaorn, 2022; Ho and Taylor, 2014). Vietnam’s publicly traded companies are compulsory required to provide annual reports and CGR to shareholders. The purpose of this research is to investigate the link between the level of corporate governance disclosure (CGD) and the quality of annual reports in the context of Vietnam—an emerging and dynamic country in South East Asia. The existing literature review is developed by using a bibliometric analysis (via VOSviewer software) with Scopus database from 2002 to 2022 provides comprehensive evidence for mixed effects of the level of CGD on quality of annual reports, therefore, the paper attempts to contribute to the ongoing debate by examining whether the association between CGD and the quality of annual reports is nonlinear. Furthermore, the quality of annual reports and level of CGD are measured basing on scorecard of Vietnam Listed Company Awards (VLCA) reflect the typical research issues in the context of Vietnam. A panel smooth transition regression (PSTR) model is applied in order to test the relationship and calculate the value transition threshold of 356 Vietnamese listed companies from 2017 to 2022. Empirical findings indicate that there has been a nonlinear relationship between two tested variables. In addition, the quality of annual reports positively increases when the level of CGD exceeds the value transition threshold. Hence, the listed companies with high level of CGD (exceeds threshold value) have an incentive of preparing high quality annual reports. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2173125 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2173125 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220248_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justice Kyei-Mensah Author-X-Name-First: Justice Author-X-Name-Last: Kyei-Mensah Title: The long-run validity of PPP in some major advanced and emerging countries using alternative models Abstract: The study examines whether the long-run validity of PPP holds in some major advanced and developing economies. The study employed the smooth time-varying cointegration (TVC) and time-varying detrended fluctuation analysis (DFA) methodology, and we are not aware of any study that has applied TVC and DFA to investigate the long-run validity and determinants of the PPP. Using both the US and Japan as base countries, the empirical results from the univariate unit root tests show that PPP does not hold and thus invalidates PPP. The study finds strong evidence for both the VAR model and the TVC. Our results show that PPP can be used for determining equilibrium exchange rates for these 15 countries, under both methods. The results of DFA and the Hurst exponents for real exchange rates (RERs) in absolute values showed that the Hurst exponent is greater than 0.5 in any country, thus persistent and not mean-reverting but in a rolling window form RERs provide mixed results about the validity of PPP in these countries. These results might be different from earlier works due to different techniques applied and also the long period of data used in this study. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220248 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220248 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220248 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2217581_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sharmila Devi R Author-X-Name-First: Sharmila Devi Author-X-Name-Last: R Author-Name: Swamy Perumandla Author-X-Name-First: Swamy Author-X-Name-Last: Perumandla Title: Does hedonism influence real estate investment decisions? The moderating role of financial self-efficacy Abstract: The goal of this paper is to emphasize the importance of prioritizing pleasure and enjoyment in the properties being invested in over financial returns. This research aims to determine the impact of hedonism on an individual’s real estate investment decisions, with financial self-efficacy acting as a moderator. The study employs a quantitative, cross-sectional research approach, and data was collected from retail investors (homeowners and prospective home buyers) using a structured questionnaire. A total of 375 responses were obtained through snowball sampling. Further, PLS SEM was taken into consideration to test research hypothesis. The study’s findings indicate that an individual’s hedonism value has a significant positive influence on real estate investment decisions. Moreover, we found that financial self-efficacy has a significant negative impact on hedonism and real estate investment. One possible reason is that individuals with high financial self-efficacy may be more likely to analyse the financial details of a real estate investment carefully and make decisions based on a well-informed understanding of the potential returns and risks. It has also been observed that both age and income contribute positively to the decision to invest in real estate. This means that a young person is more likely to make risky investments like buying real estate stocks, land, etc. When individuals become older, real estate investment in the form of houses increases in order to provide a secure and comfortable living space for themselves and their families. Finally, when income rises, individuals seem to be looking for a comfortable life, pleasure, happiness, and social recognition, which significantly influence the real estate investment decision. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2217581 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2217581 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163543_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Norman T. Muzeza Author-X-Name-First: Norman T. Author-X-Name-Last: Muzeza Author-Name: Amon Taruvinga Author-X-Name-First: Amon Author-X-Name-Last: Taruvinga Author-Name: Peter Mukarumbwa Author-X-Name-First: Peter Author-X-Name-Last: Mukarumbwa Title: Analysis of factors affecting technical efficiency of A1 smallholder maize farmers under command agriculture scheme in Zimbabwe: The case of Chegutu and Zvimba Districts Abstract: In an effort to address the decline in maize productivity, the government of Zimbabwe in 2016/17 endorsed a special program for input support named command agriculture scheme (CAS). Against this background, the study questioned the beneficiaries’ technical efficiency and factors that influence farmers to gravitate towards the frontier using Chegutu and Zvimba districts of Zimbabwe as case studies. The study used a cross-sectional survey of 240 households randomly selected through a three-stage multiple-sampling procedure. The single-stage modelling stochastic frontier approach was applied to assess technical efficiency of A1 smallholder command agriculture maize farmers. The study revealed that A1 smallholder command agriculture maize farmers in Chegutu and Zvimba districts were technically efficient at 85% and 94%, respectively. The major determinants of technical efficiency were basal fertilizer, labour, area allocated to maize production and topdressing fertilizer which all indicated a positive relationship. The main determinants of technical inefficiency were age, maize farming experience, level of education, marital status, occupation status and other sources of income. Results further revealed that farmers from Chegutu district had increasing returns to scale (1.43) while farmers from Zvimba district had decreasing returns to scale (0.54). The study therefore argues that despite the observed high technical efficiencies, Chegutu farmers could bridge their 15% gap between the observed output and the frontier output by focusing more on input usage with increasing returns to scale while Zvimba farmers could bridge their 6% gap by focusing more on socio-economic drivers of technical inefficiency given their decreasing returns to scale. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163543 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163543 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Patrick Kwashie Akorsu Author-X-Name-First: Patrick Kwashie Author-X-Name-Last: Akorsu Author-Name: Samuel Okyere Author-X-Name-First: Samuel Author-X-Name-Last: Okyere Title: Trade openness, foreign direct investment and industrialisation in Ghana Abstract: The industrialisation of the Ghanaian economy has seen less light despite the high levels of trade and being one of the highest receivers of foreign direct investment (FDI) in West Africa. This low performance in the industrial sector may be due to the frequent shocks the country suffers in her trade engagements and FDI inflows. Therefore, this study sought to examine the asymmetric effect of trade openness and FDI on industrialisation in Ghana. In achieving this, contemporary time series approaches, involving Autoregressive Distributed Lag (ARDL) and Non-Linear Autoregressive Distributed Lag (NARDL) approaches to cointegration, were used to analyse the time series data from 1983 to 2019. The results revealed that in both the long- and short-run, the positive shocks in trade openness have no effect on industrialisation, and the negative shocks in trade openness cause industrialisation to fall. Regarding FDI, the positive shocks in FDI exert positive effect on industrialisation in both the long- and short-run, but the negative shocks exert no effect on industrialisation in the long-run, however, a positive effect on industrialisation in the short-run. Findings from the study imply that trade openness in both the long- and short-run is detrimental to industrial progress in Ghana. Also, FDI is much needed for Ghana to industrialise her country. It is recommended that government policies should be channelled to reducing external shocks faced by traders, mostly exporters, while focusing on creating an enabling environment to attract the needed FDI to the industrial sector, and increasing infrastructural base of the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183638 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209954_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Agus Widarjono Author-X-Name-First: Agus Author-X-Name-Last: Widarjono Author-Name: Abdur Rafik Author-X-Name-First: Abdur Author-X-Name-Last: Rafik Title: Do Islamic banks have their benchmarks for financing rates in the dual-banking system? Abstract: This study examines whether conventional bank lending rates influence Islamic bank financing rates in Indonesia and Malaysia that apply the dual-banking system. We employ the ARDL, the non-linear ARDL (NARDL) model, and the Pooled Mean Group (PMG). Evidence of the long-run link between Islamic financing rate and conventional lending rate is found. However, instead of symmetry, the link between them is asymmetry. The asymmetric pricing of the Islamic financing rate and some specific contracts such as Mudharaba and Murabaha rates in Indonesia strongly follow the decrease in conventional lending rate, but it is sticky against the increase in conventional lending rate. The asymmetric pricing of the Islamic financing rate in Malaysia is obviously pegged to the conventional lending rate. The PMG results strengthen the asymmetric findings where the effect of a reduction in the conventional lending rate is larger than the effect of an increase in the conventional lending rate on the Islamic financing rate. These findings imply that Islamic bank borrowers are profit-driven borrowers in a dual-banking system. Accordingly, the Islamic financing rate is pushed to follow the conventional lending rate due to the uncompetitive Islamic financing rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209954 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209954 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223414_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michael Amoh Asiedu Author-X-Name-First: Michael Amoh Author-X-Name-Last: Asiedu Author-Name: Emmanuel Mensah Author-X-Name-First: Emmanuel Author-X-Name-Last: Mensah Title: Re-examining the corporate governance – Firm performance nexus: Fresh evidence from a causal mediation analysis Abstract: The role that corporate governance (CG) plays in contributing to firm performance enhancements has been widely acknowledged. However, the conduit through which CG is able to affect firm performance is an emergent theme. This paper re-examines the relationship between corporate governance (CG) and firm performance via means of causal mediation analysis using financial reporting quality (FRQ) as a mediator. The study samples 104 companies listed on the respective stock markets of nine sub-Saharan African countries, and collects annual reports data spanning over a period of 2007 to 2019 for analysis using causal mediation. The study finds that a causal relationship exists between CG and firm performance, albeit through the transmission mechanism of FRQ. Again, the study finds that CG positively affects firm performance both directly and indirectly through the mediation of FRQ. The study is useful in highlighting for mangers and CG practitioners attention, an important channel through which CG would favourably affect firm performance, being FRQ. The current study is unique, in that it is the first panel multi-cross-country investigation within Africa to introduce FRQ in the study of the relationship between CG and firm performance. It therefore extends the agency theory by employing FRQ as a mediating variable in the CG—firm performance nexus within the African context. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223414 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223414 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniel Aidoo-Mensah Author-X-Name-First: Daniel Author-X-Name-Last: Aidoo-Mensah Title: Determinants of savings frequency among tomato farmers in Ghana Abstract: Multinomial logistic regression was employed to identify the determinants underlying the respondents’ frequency of savings—weekly, monthly and seasonally. The results of the study showed that amount saved per period, number of years of education and engagement in non-farm income generating activities significantly influenced farmers’ savings frequencies. The findings are quite significant as they take the decision to save beyond the suggested two-stage sequential process to include a third stage, which is the time horizon of savings. The findings revealed that rural households are predisposed to extend their savings time horizon by holding onto their surplus funds in order to retain some capacity for their present consumption and other needs before thinking of saving. On the other hand, the anticipation of a gloomy future as a result of bad harvest for instance may induce the rural householder to shorten his/her savings time horizon, that is, reduce the time-frame s/he holds onto surplus funds and quickly save such funds. Finally, the study suggests education as a catalyst to create a desirable behaviour of saving “now” (weekly or monthly) rather than procrastinating savings to the “future” that is, saving seasonally. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196862 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196862 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196862 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Abreham Adera Author-X-Name-First: Abreham Author-X-Name-Last: Adera Title: Chinese aid and social ties in Africa: Evidence from sub-national aid projects Abstract: Is there any possibility that foreign aid may negatively affect African social ties? To answer such a question, this paper examines the impact of local Chinese aid projects on social capital in Africa. China or Chinese contractors directly control or operate Chinese projects in Africa. This feature may disengage Africans from participating in their own local development activities. Likewise, China gives unconditional aid, which may nurture corruption. By creating losers and winners, corruption may make people unhappy. Because of these features, Chinese aid projects may hinder the formation of social capital. This paper puts this claim to an empirical test using data from the Afrobarometer surveys and AidData. Conditional on a set of controls, I find several interesting results. First, Chinese aid is negatively associated with generalized trust. Second, Chinese aid projects are related to disengagement from associational life. Third, no similar pattern is found when the main analysis is replicated on aid from the World Bank. Finally, neither the Chinese nor the World Bank’s aid is related to subjective wellbeing. The results suggest that Chinese aid may wither local social ties through social disengagement. Overall, the findings imply that it is vital to engage local citizens in the design and implementation of Chinese aid projects. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196843 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196843 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196843 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203439_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sebastian Kaweto Kalovwe Author-X-Name-First: Sebastian Kaweto Author-X-Name-Last: Kalovwe Author-Name: Joseph Ivivi Mwaniki Author-X-Name-First: Joseph Ivivi Author-X-Name-Last: Mwaniki Author-Name: Richard Onyino Simwa Author-X-Name-First: Richard Onyino Author-X-Name-Last: Simwa Title: On regime-switching European option pricing Abstract: The concern of this article is to derive a regime switching model that can be utilized to price European call options for a financial market that exhibits structural changes with time. The model is formulated based on the fact that the underlying asset process is described by a geometric Brownian motion that is modulated by a continuous-time Markov chain with two regimes. Moreover, by an application of the change of measure technique, an option price is derived under the risk neutral valuation and the model parameter estimates is performed by use of the maximum likelihood estimation. The model implementation is carried out by utilizing the Russell 2000 and Facebook in dices data sets. The model results are compared with that of the Black-Scholes model in order to establish the model with better results in terms of predicting the European call option prices. In general, the data sets have common characteristics of financial time series across the regimes and the volatility process spends longer time in regime 2 than it stays in regime 1. The predicted call option prices from both models are more or less similar across the market indices; however, the results of the Black-Scholes model are a bit closer to the market prices than that of the regime-switching model across the two markets. Therefore, the Black-Scholes model slightly gives better results for the Russell 2000 and Facebook indices data sets as compared with the RS model. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203439 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203439 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Olajide Oyadeyi Author-X-Name-First: Olajide Author-X-Name-Last: Oyadeyi Title: Financial development, interest rate pass-through and interest rate channel of monetary policy Abstract: The paper examined the interest rate operations and processes in Nigeria and examined the role of financial development in incentivizing central bank monetary policies from the monetary policy rate to the money market rates, lending rates, and deposit rates. The analysis covered the period from 1981 to 2021 with sub-samples for 1981 to 2011 and 1991 to 2021 to test the consistency of the findings. The findings confirmed that interest rate pass-through is incomplete for Nigeria, albeit to a lower degree in the short run compared to the long run. The reasons for this may be due to interest rate stickiness, problems of asymmetric information, and bank switching costs. Also, the findings confirmed that financial development weakens the impact of monetary policy on the interest rate pass-through process, while the analysis of the asymmetric mean adjustment lags confirmed that changes in the policy rate are transmitted to the deposit and lending rates within the year it was announced. The analysis confirmed that the results across each sub-sample and the robustness tests are consistent with the main analysis. Therefore, it is imperative that policymakers should account for financial development when designing monetary policy effectiveness since it can hinder or strengthen the interest rate monetary policy channel. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209952 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209952 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Danai Tembo Author-X-Name-First: Danai Author-X-Name-Last: Tembo Title: Ecological based environmental Kuznets curve for Africa: Evidence from the fishery sector at continental, regional and country-specific levels Abstract: The purpose of our study is to examine the Fishery-based Environmental Kuznets Curve (EKC) for a sample of 48 African countries between 1970–2019. We estimate cubic EKC-type models using quantile regression to account for distributional asymmetries existing in the time series data, and our empirical analysis is conducted at continental, regional and country-specific levels. Methodologically, our findings indicate that most EKC relationships are found at the tail-end of the quantile regressions, hence demonstrating their usefulness in capturing “hidden relationships” amongst the variables. Empirically, our findings reveal that Southern African countries along the Atlantic Ocean, as well as West African countries which lie along the Gulf of Guinea, tend to have exploitable Fishery-EKC. Conversely, conflict-prone countries found along the Mediterranean Sea, the Indian Ocean and landlocked nations either have inverse or non-existent Fisheries EKC. We provide a novel theoretical explanation for our findings and offer policy recommendations for different stakeholders in African Fisheries markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2225917 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2225917 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186038_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muhammad Farooq Author-X-Name-First: Muhammad Author-X-Name-Last: Farooq Author-Name: Ahmed Imran Hunjra Author-X-Name-First: Ahmed Imran Author-X-Name-Last: Hunjra Author-Name: Saif Ullah Author-X-Name-First: Saif Author-X-Name-Last: Ullah Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: The determinants of financial distress cost: A case of emerging market Abstract: This study analyses the cost of financial distress of non-financial firms listed on the Pakistan stock exchange. Furthermore, it considers the moderating role of concentrated ownership in the relationship between debt and expected financial distress costs. We used the panel data of 214 firms from 2010 to 2018 to analyse the results. We apply fixed effect model to test the hypotheses. We find that ex-ante financial distress costs are based not only on the probability of financial distress but also affect the amount of time and money spent during the distress period. The use of tangible fixed assets and long-term leverage lowers the cost of financial distress, whereas the use of short-term debt has no significant impact on the cost of financial distress. Furthermore, the company’s ownership structure dampens the impact of these factors. Corporate management may reduce the cost of financial distress through better management of fixed assets and financial leverage. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186038 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186038 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186038 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2195041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mohd Yaziz Mohd Isa Author-X-Name-First: Mohd Yaziz Author-X-Name-Last: Mohd Isa Author-Name: Mellisa Daukin Author-X-Name-First: Mellisa Author-X-Name-Last: Daukin Title: The influence of retirement goals and risk attitudes on Malaysian women’s retirement planning Abstract: The lack of retirement savings for the future lives of many individuals, and pre-retirees in particular, is an example of one of the most critical problems facing many emerging countries. Unfortunately, a lack of preparedness can have severe effects on Malaysian cultures, especially for women who are nearing retirement. The issues persist and, most likely, are becoming worse despite all the awareness campaigns that have been running for a while. In order to express fresh thoughts and suggest an extra approach or workable solution to supplement past research and conclusions, this study will analyse this dilemma from a women’s perspective of retirement planning. This study applies a quantitative approach, where primary data was acquired through online surveys of 443 workers in various locations in Malaysia. Validation of the measurement model in this study uses the structural equation model (SEM), which interprets that if the model fits, the strength of path estimates, validity, and reliability of the construct are estimated. The results of this study show that retirement goals affect an individual’s retirement planning, but risk perception does not affect an individual’s perspective on planning for a future retirement. This study also emphasises the significance of financial literacy in retirement planning, specifically how it will boost the confidence of these female workers as they approach retirement. These findings also have useful ramifications for financial planners and advisors, enabling them to better comprehend the variables influencing retirement saving behaviour. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2195041 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2195041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2195041 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209957_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Samuel Antwi Author-X-Name-First: Samuel Author-X-Name-Last: Antwi Author-Name: Anthony Buawolor Tetteh Author-X-Name-First: Anthony Buawolor Author-X-Name-Last: Tetteh Author-Name: Patience Armah Author-X-Name-First: Patience Author-X-Name-Last: Armah Author-Name: Eric Opoku Dankwah Author-X-Name-First: Eric Opoku Author-X-Name-Last: Dankwah Title: Anti-money laundering measures and financial sector development: Empirical evidence from Africa Abstract: The study’s main objective was to evaluate the link between anti-money laundering (AML) regulations and financial sector development (FSD) in Africa and to test the nonlinearities in the AML regulations-FSD nexus. Panel data of 51 African countries from the World Bank’s indicators, the IMF, and the Basel Institute on Governance over the period 2012 to 2019 were used. The study employs the two-step system GMM and the dynamic panel threshold regression in estimating the model. The Hansen test and Arellano—Bond test for AR (2) were conducted to check for the robustness of the model specification. The study employed STATA 15 in analysing the study. The analysis shows that anti-money laundering regulation positively influences African financial sector development. However, the study found a significant positive coefficient for AML below the threshold value at a 1% significant level and a significant negative coefficient for AML above the threshold. This indicates that AML laws favour financial sector development below the threshold, but this link disappears for regimes with high AML requirements in Africa. This suggests that excessive AML structures might discourage financial sector development in Africa due to the cost associated with AML. Financial institutions in Africa should invest in technology solutions to support financial crime compliance efforts in combating criminal crimes involving digital payments, cryptocurrency, third parties and trafficking of proceeds and other crime-related activities such as drug trafficking, corruption, terrorism, arms dealing, confiscation of their illegal funds and bribery. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209957 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209957 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209957 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2161773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ayman Mohammad Al Shanti Author-X-Name-First: Ayman Mohammad Author-X-Name-Last: Al Shanti Author-Name: Mohammad Salim Elessa Author-X-Name-First: Mohammad Salim Author-X-Name-Last: Elessa Title: The impact of digital transformation towards blockchain technology application in banks to improve accounting information quality and corporate governance effectiveness Abstract: By combining two types of studies: theoretical and field, the study aims to explore the impact of digital transformation on the quality of accounting information and the efficacy of corporate governance through the deployment of blockchain technology in banks. The study’s dimensions and variables were examined using a descriptive-analytical technique. To collect data from Jordanian banks’ financial analysts, auditors of shareholders’ accounts, and financial managers in the field research community, data lists were developed. For the analysis of the field research data, SPSS was used. Both the first and third hypotheses were rejected, indicating that the null hypothesis was rejected and the alternative hypothesis was accepted. Neither the second nor the fourth hypotheses were accepted. In order to reap the benefits of blockchain technology in increasing the quality of accounting information and strengthening corporate governance, a digital transformation toward its application in commercial operations is suggested. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2161773 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2161773 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Quoc Trung Nguyen Kim Author-X-Name-First: Quoc Trung Author-X-Name-Last: Nguyen Kim Title: Does COVID-19 affect small and medium enterprises’ capital structure in vietnam? Abstract: This study estimates the effect of COVID-19 on listed small and medium enterprises’ capital structures in Vietnam from 2010 to 2020 by a dynamic panel model with 825 observations. Conducting the generalized method of moments, the findings show that COVID-19 is a significant factor affecting small and medium enterprises’ capital structures. The current results are explained based on the signalling theory. Although the findings are consistent with the previous empirical studies indicating the capital structure and exploring its determinants in diverse ways, these studies are interpreted based on agency theory, pecking of order, trade-off theory. Furthermore, our results are robust to a series of endogeneity checks using an alternative method of regression. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190268 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190268 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2207923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gemechis Merga Author-X-Name-First: Gemechis Author-X-Name-Last: Merga Author-Name: Million Sileshi Author-X-Name-First: Million Author-X-Name-Last: Sileshi Author-Name: Fresenbet Zeleke Author-X-Name-First: Fresenbet Author-X-Name-Last: Zeleke Title: Welfare impact of improved maize varieties adoption among smallholder farmers in Amuru district of Horo Guduru Wollega, Ethiopia Abstract: Government policy strategies, particularly in sub-Saharan Africa (SSA), are aimed at increasing agricultural productivity, which could contribute to improve household welfare. Hence, understanding smallholder farmers’ low and variable crop yields has been a central research and policy priority in addressing food security. Likewise, the purpose of this study was to assess the impact of adopting improved maize varieties on productivity and food insecurity in Amuru district of Horo Guduru Wollega, Ethiopia. The study utilized cross-sectional household data collected in 2020/2021 from 263 randomly selected sample households. The probit model’s findings indicate that factors that positively influenced households’ adoption of the improved maize varieties included the household head’s education level, the amount of livestock owned, access to credit, access to training, farm size, access to extension agents, and access to information from farmers associations, while factors that negatively influenced adoption included family size and market distance. The endogenous treatment effect model’s findings also showed that IMV adoptions considerably improve smallholder farmers’ welfare by lowering food insecurity and raising their average calorie intake and net crop values. Thus, it is advised that governments and other interested institutions should promote the adoption of improved maize varieties on a larger scale in order to boost maize yield and lower rural household food insecurity. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2207923 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2207923 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2197694_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aminu Hassan Jakada Author-X-Name-First: Aminu Hassan Author-X-Name-Last: Jakada Author-Name: Suraya Mahmood Author-X-Name-First: Suraya Author-X-Name-Last: Mahmood Author-Name: Umar Ahmad Ali Author-X-Name-First: Umar Ahmad Author-X-Name-Last: Ali Author-Name: Danmaraya Ismail Aliyu Author-X-Name-First: Danmaraya Author-X-Name-Last: Ismail Aliyu Title: The moderating role of ICT on the relationship between foreign direct investment and the quality of environment in selected African countries Abstract: This empirical study examines the role of information and communication technology (ICT) in the relationship between FDI and environmental quality for six leading African economies from 1970 to 2020. The second-generation tests are used to determine the stationarity level of the variables. Furthermore, the Westerlund panel cointegration test confirms cointegration among the variables. For long-run association, CS-ARDL, which resolved the consequences of heterogeneity and cross-sectional dependency is used. The results of the study reveal that ICT, FDI, economic growth, and financial development degrade environmental quality. The interacting effect of ICT and FDI (ICT*FDI) leads to escalation of CO2 emissions thereby deteriorating the quality of the environment. The study recommends that African countries should promote FDI to support the inflow of green technologies to enhance environmental quality. The implementation of environmentally sustainable technology would help improve the quality of the environment, increase sustainability in the long term and conserve resources for future generation. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2197694 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2197694 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2182454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Emmanuel Asafo-Adjei Author-X-Name-First: Emmanuel Author-X-Name-Last: Asafo-Adjei Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Anokye M. Adam Author-X-Name-First: Anokye M. Author-X-Name-Last: Adam Author-Name: Clement Lamboi Arthur Author-X-Name-First: Clement Lamboi Author-X-Name-Last: Arthur Author-Name: Ebenezer Boateng Author-X-Name-First: Ebenezer Author-X-Name-Last: Boateng Author-Name: Kwadwo Ankomah Author-X-Name-First: Kwadwo Author-X-Name-Last: Ankomah Title: Asymmetric relationships among financial sector development, corruption, foreign direct investment, and economic growth in sub-Saharan Africa Abstract: Prior studies on the relationship between FDI and growth have generally concentrated on mean effects, or average growth benefits. It seems improbable that the majority of sub-Saharan economies will have similar “average” economic growth, hence the emphasis on mean effects in particular falls short. All other drivers can be seen to have an impact based on the uneven growth rates of these economies. The current study brings new evidence about the asymmetric relationship between foreign direct investment (FDI) and economic growth amidst financial sector development (FSD) and corruption covering a sample period of 2002 to 2020 for 48 sub-Saharan economies. For this reason, the instrumental variables panel quantile regression technique is employed to achieve the purpose of the study. The study finds that FDI inflows have a significant positive relationship with economic growth for economies with low growth (less than 50% quantile) but negative at high growth levels (at quantiles 50% and beyond). Also, control of corruption significantly interacts negatively with FDI and GDP per capita irrespective of the GDP levels, whereas FSD significantly positively interacts with FDI to contribute to economic growth at various growth levels. Findings from the study imply that FSD promotes economic growth in sub-Saharan Africa at diverse growth levels. On the other hand, the interacting effect of control of corruption is inimical to FDI-growth nexus at all growth levels. It is pertinent that efforts are made by financial policymakers in sub-Saharan Africa to improve the local financial sector conditions to recuperate the economic advances from FDI. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2182454 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2182454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2182454 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2185347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Andualem Kassegn Author-X-Name-First: Andualem Author-X-Name-Last: Kassegn Author-Name: Umer Abdinasir Author-X-Name-First: Umer Author-X-Name-Last: Abdinasir Title: Determinants of rural households’ livelihood diversification strategies: In the case of north Wollo zone, Amhara National Regional State, Ethiopia Abstract: Diversifying rural livelihoods plays a significant role for rain feed-dependent economy of the rural households like in Ethiopia. Hence the objective of the study was to investigate the determinants of rural households’ livelihood diversification strategies choice in north wollo zone of Ethiopia. A multi-stage stratified random sampling technique was used to select 384 rural household heads as a sample in study areas. Primary data was collected from sample rural household heads using an interview schedule. Multivariate Probit Model was employed to identify the factors influencing the rural household heads’ decision to choose livelihood strategies. The model result showed that agriculture livelihood strategy was positively and significantly associated with male headed household, land holding, cooperative membership, and participation in rural productive safety net program; while it is negatively and significantly affected by distance to market. Non-farm livelihood strategy was positively and significantly affected by dependency ratio, education level, total income, and remittance; while it is negatively and significantly affected by the sex of household head and participation in rural productive safety net program. Off-farm livelihood strategy was positively and significantly influenced by sex of household head; while it is negatively and significantly affected by the land holding, total livestock unit, cooperative membership, credit use, participation in rural productive safety net program. Therefore, the study recommends that local government should attempt to promote the above significant determinants of rural households’ livelihood diversification strategies choice to build more profitable and sustainable livelihood strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2185347 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185347 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2185347 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163542_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Priviledge Cheteni Author-X-Name-First: Priviledge Author-X-Name-Last: Cheteni Author-Name: Ikechukwu Umejesi Author-X-Name-First: Ikechukwu Author-X-Name-Last: Umejesi Title: Evaluating the sustainability of agritourism in the wild coast region of South Africa Abstract: In recent decades, agritourism has been proposed by various agencies as a strategy for the sustainable development of rural areas and the diversification of the rural economy. The study aimed to examine and identify the role of agritourism in entrepreneurship and sustainability. Semi-structured interviews were used to collect data from 15 business owners and 68 residents from local households on the Wild Coast. Consequently, various facets of agritourism for sustainable rural development were investigated using a qualitative research method. The findings revealed that agritourism in the study area can be enhanced by integrating it with farm entrepreneurship. Furthermore, because many disenfranchised families already engage in crafts, subsistence farming, fishing, and other activities, agritourism has the potential to lift many of them out of poverty. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163542 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163542 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2217583_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Syed Akmal Author-X-Name-First: Syed Author-X-Name-Last: Akmal Author-Name: Mohammad Talha Author-X-Name-First: Mohammad Author-X-Name-Last: Talha Author-Name: Syed Mohammad Faisal Author-X-Name-First: Syed Mohammad Author-X-Name-Last: Faisal Author-Name: Moid Ahmad Author-X-Name-First: Moid Author-X-Name-Last: Ahmad Author-Name: Ahmad Khalid Khan Author-X-Name-First: Ahmad Khalid Author-X-Name-Last: Khan Title: Perceptions about FinTech: New evidences from the Middle East Abstract: The study aimed to analyze the perceptions of FinTech in the Middle East region, specifically its usage, and performance. To attain this objective, a strategy employed on surveys as the primary data acquisition method was implemented. The survey was conducted between November 2021 and February 2022, which allowed the researcher to gather comprehensive data from respondents during this period. In order to ensure the descriptive nature of the study, cross-sectional research was employed in its design. This design allowed the researcher to gather data at a single point in time, which was appropriate for the scope of this study. The researcher utilized a questionnaire during the inquiry to elicit information for data collection purposes. The questionnaire was designed to include semi-structured questions, which allowed the respondents to provide detailed information on their perceptions of FinTech. This study employed a survey-based technique to analyze the perceptions of FinTech in the Middle East region. Using a cross-sectional design and semi-structured questions allowed the researcher to achieve the descriptive nature of the research. Additionally, cross-tab analysis and SPSS provided an in-depth understanding of the data collected. The findings from the analysis suggest that FinTech enhances the performance of financial institutions and that digital banking is the best feature of FinTech across all customer groups. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2217583 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2217583 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2203432_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Olivier Niyitegeka Author-X-Name-First: Olivier Author-X-Name-Last: Niyitegeka Author-Name: Sheunesu Zhou Author-X-Name-First: Sheunesu Author-X-Name-Last: Zhou Title: An investigation of financial contagion between cryptocurrency and equity markets: Evidence from developed and emerging markets Abstract: The present study conducts a dynamic conditional cross-correlation and time–frequency correlation analyses between cryptocurrency and equity markets in both advanced and emerging economies. The purpose of the study is twofold. First, the study investigates the presence of the pure (narrow) form of financial contagion between cryptocurrency and stock markets in both advanced and emerging economies, during the black swan event of the COVID-19 crisis. Second, the study examines the hedging and safe-haven properties of cryptocurrencies against equity markets, before and during periods of financial upheaval triggered by the COVID-19 pandemic. Two econometric models are used: (1) the dynamic conditional correlation (DCC) GARCH and (2) the wavelet analysis models. Using the DCC GARCH model, the study found the evidence of high conditional correlations between cryptocurrency and equity markets. The high conditional correlation was mostly detected in periods of financial turmoil corresponding to the first quarter and the second quarter of 2020. The increase in conditional correlation during periods of financial upheaval (compared to a tranquil period) indicates the presence of the pure form of financial contagion. The wavelet cross-correlation analysis showed the evidence of positive cross-correlation between the Bitcoin and the equity markets during period of financial turmoil. The cross-correlation was identified in both short and long (coarse) scales. In short scales, the equity markets lead the cryptocurrency market, while the cryptocurrency market leads equity markets in coarse scales. The findings of the present study revealed that the degree of interdependence between cryptocurrency and equity markets has substantially increased during the COVID-19 period, and this has negated the safe-haven and hedging benefits of cryptocurrencies over equity markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2203432 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203432 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2203432 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220250_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cep Jandi Anwar Author-X-Name-First: Cep Jandi Author-X-Name-Last: Anwar Author-Name: Indra Suhendra Author-X-Name-First: Indra Author-X-Name-Last: Suhendra Author-Name: Saharuddin Didu Author-X-Name-First: Saharuddin Author-X-Name-Last: Didu Author-Name: Anggi Sayektiyani Author-X-Name-First: Anggi Author-X-Name-Last: Sayektiyani Author-Name: Lilis Nur Kholishoh Author-X-Name-First: Lilis Nur Author-X-Name-Last: Kholishoh Title: The impact of monetary policy and credit risk on bank credit behavior: An analysis of banks listed on the Indonesian stock exchange Abstract: The study investigates macroeconomic and bank-specific determinants of credit for commercial banks from 2010Q1–2022.Q4 in Indonesia. The banking credit is divided into an investment, working capital, and consumption credits. The study aims to address a gap in the literature since most prior studies are concentrated on developed markets. A system generalized method of moment (GMM) estimator is employed to investigate the impact of central bank rates and credit risk on credit. Dynamic-GMM estimations find that the central bank rate has a negative impact on the three types of credits. Meanwhile, non-performing loans positively impact investment and working capital credits but negatively affect consumption credit. The interaction between central bank rate and non-performing loans negatively impacts investment and working capital credits but positively affects consumption credit. This study provides managers and policymakers with timely information regarding bank credit drivers, encouraging management to take necessary measures, and policymakers may consider the importance of macroeconomic conditions while creating a bank lending policy. Similarly, it informs potential investors on how to evaluate the data when choosing a better investment option. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220250 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220250 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2167577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gyasi Genevieve Author-X-Name-First: Gyasi Author-X-Name-Last: Genevieve Author-Name: Joseph Magnus Frimpong Author-X-Name-First: Joseph Magnus Author-X-Name-Last: Frimpong Author-Name: Mireku Kwame Author-X-Name-First: Mireku Author-X-Name-Last: Kwame Title: Moderating remittance and economic growth relationship with exchange rate: What new can we learn from Africa’s economy? Abstract: The paper employs partial and biwavelet coherence techniques to examine the time-frequency dependence structure of international remittance inflow on economic growth by moderating the effect of exchange rates. We investigate the comovements of remittance and economic growth from 1980 to 2020. We observed heterogeneous patterns in the comovements structure of international remittance inflow and economic growth at various timescales. By examining the biwavelet coherence, the comovements are noticeable at elevated occurrences, implying that exchange rates, when acting as moderator in the nexus between remittance and economic growth, can hamper economic growth. Findings from the partial wavelet coherence reveal that exchange rates influence remittance and economic growth connectedness in emerging and frontier economies in Africa. Consequently, in situations where radical changes occur in exchange rates, the implemented policies of emerging African countries seem to have largely influenced the comovements between remittance inflow and economic growth. The risk posed by exchange rates on remittance inflow requires sustainable policies to prevent widespread spillovers, mostly during severe economic downturns. We posit that implementation of exchange rate mechanisms are central to parity which is essential to mitigating potential risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2167577 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167577 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2167577 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163077_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Olajumoke Rebecca Ogunniyi Author-X-Name-First: Olajumoke Rebecca Author-X-Name-Last: Ogunniyi Author-Name: Abiodun Funso Okunlola Author-X-Name-First: Abiodun Funso Author-X-Name-Last: Okunlola Author-Name: Michael Akinade Alatise Author-X-Name-First: Michael Akinade Author-X-Name-Last: Alatise Author-Name: Rafiu Adewale Aregbeshola Author-X-Name-First: Rafiu Adewale Author-X-Name-Last: Aregbeshola Title: Socio-economic inclusion and sustainable economic growth: Empirical analysis of Nigeria and South Africa Abstract: In Africa, socio-economic inclusion is often predicated on the degree of access to finance that individuals have to consummate economic activities. This study is centered on this interlink with a focus on Nigeria and South Africa. From the 17 years of data (2004–2020) sourced from the Emissions Database for Global Atmospheric Research (EDGAR), International Monetary Fund (IMF) financial statistics, and the World Bank Development Indicator, the study attempted to empirically validate the existence or absence of a long-run significance of the variables used. Result confirmed that proximity to bank branches and access to credit by the private sector are vital ingredients of sustainable economic growth in both countries, while automated teller machine does not. Thus, this concluding evidence provides an avenue for expansionary policy drive for concerned authorities. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163077 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163077 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163077 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2132649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Menasbo Tesfay Author-X-Name-First: Menasbo Author-X-Name-Last: Tesfay Title: Factors affecting renting in and renting out of land in a semi-arid economy of Tigrai, northern Ethiopia: a generalized random effect order probit model Abstract: In the absence of land sale, the emerging of land rental market among smallholder farmers in developing countries has important implications on land use efficiency, productivity and poverty reduction. The purpose of this study is to analyze jointly the socio-economic factors undertaking decisions renting in and renting out of land in a land scarce and semi-arid economy of Tigrai, northern Ethiopia, using a generalized random effect order probit model. The model result reveals that decisions to rent in and/or rent out of land are significantly correlated, implying that standard order probit model analysis of such decisions are biased, thereby, justifying the use of a generalized random effect order probit approach. Model results show that some of the socio-economic factors affect farmers’ renting in and renting out of land and work in the opposite directions. The likelihood of renting in land is high for farmers with better literacy rate and lived closer to the land. On the other hand, the likelihood of renting out of land is high among the illiterate farmers and lived far distant to their lands. Government policy has an important role to play in improving the factor equalization role of the land rental markets through investment in human capital and infrastructural development. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2132649 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132649 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2132649 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ahmad Bash Author-X-Name-First: Ahmad Author-X-Name-Last: Bash Author-Name: Abdullah M. Al-Awadhi Author-X-Name-First: Abdullah M. Author-X-Name-Last: Al-Awadhi Title: Central Bank Independence and stock market outcomes: An event study on Borsa Istanbul Abstract: This study explores the importance of central bank independence on stock market outcomes. Specifically, we examine the effects of President Recep Tayyip Erdogan’s decree, which removes the top officials of the Central Bank of Turkey, on Borsa Istanbul returns. We use a well-established event study methodology for five events from 20 July 2018, to 11 November 2021. The results show that the market is sensitive to the dismissal decrees in that they have positive effects on cumulative abnormal returns in the first two events, while the three events that follow have negative effects on cumulative abnormal returns. Our results support the importance of central bank independence, revealing that political intervention in central banks has a robust, positive, negative, and significant impact on stock market outcomes. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186032 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186032 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Arumega Zarefar Author-X-Name-First: Arumega Author-X-Name-Last: Zarefar Author-Name: Nurul Azlin Azmi Author-X-Name-First: Nurul Azlin Author-X-Name-Last: Azmi Author-Name: Wan Adibah Wan Ismail Author-X-Name-First: Wan Adibah Author-X-Name-Last: Wan Ismail Author-Name: Khairul Anuar Kamarudin Author-X-Name-First: Khairul Anuar Author-X-Name-Last: Kamarudin Title: The moderating effect of political connection on the relationship between non-audit services and accounting quality: Evidence from an emerging market Abstract: This study investigates whether the provision of non-audit services (NAS) is associated with accounting quality and whether political connection moderates the relationship between the NAS and accounting quality. The sample includes 2,245 firm-year observations from Malaysia during the period 2013–2017. This study uses the absolute value of discretionary accruals to measure accounting quality. We find that provision of high NAS leads to low accounting quality, exhibited by high discretionary accruals. We also find that politically connected (PCON) firms show higher discretionary accruals than non-PCON firms. However, the PCON firms weaken the positive relationship between NAS on discretionary accruals suggesting a substitutive role of political connections in determining the effect of NAS on accounting quality. We further document a non-linear association between NAS and discretionary accruals, whereby the provision of NAS would lead to low discretionary accruals after an optimal point. Therefore, regulators need to weigh the costs and benefits of regulating NAS and consider the moderating effects of PCON firms and the non-linear effect of NAS. This study adds to the limited, albeit substantial, evidence on the joint effect of PCON firms and NAS on accounting quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175457 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175457 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2163081_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Biswajit Patra Author-X-Name-First: Biswajit Author-X-Name-Last: Patra Author-Name: Purna Chandra Padhan Author-X-Name-First: Purna Chandra Author-X-Name-Last: Padhan Author-Name: Puja Padhi Author-X-Name-First: Puja Author-X-Name-Last: Padhi Title: Efficiency of Indian Banks – private versus public sector banks: A two-stage analysis Abstract: This paper estimates and compares various efficiencies, namely, business, profit, and Z-Score efficiencies for private and publicly owned Indian banks. It uses the data envelopment analysis (DEA) following variable returns to scale, under input and output orientation, for measuring efficiency. Further, the Tobit regression model is used in the second stage to check the significant determinants from a list of bank-specific factors for various efficiencies. The study finds that the average efficiency scores of public sector banks (PSBs) are higher than private banks. The Z-score indicates that both PSBs and private banks are facing stability risks. Tobit regression model results confirm that return on assets and capital levels are significantly related to all types of efficiencies for private banks. On the other hand, the efficiency of PSBs is mainly affected by the level of non-performing assets, market share, size of the bank, return on assets, and capital level. It is inferred that the prompt corrective action (PCA) framework of RBI (2014) and the merger and consolidation of PSBs by the government (2019) favorably impacted the efficiencies of PSBs. Additionally, it identifies the stability risk of Indian banks and suggests banks should build up adequate capital for stressful situations. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2163081 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2163081 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196852_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chekwube V. Madichie Author-X-Name-First: Chekwube V. Author-X-Name-Last: Madichie Author-Name: Franklin N. Ngwu Author-X-Name-First: Franklin N. Author-X-Name-Last: Ngwu Author-Name: Eze A. Eze Author-X-Name-First: Eze A. Author-X-Name-Last: Eze Author-Name: Olisaemeka D. Maduka Author-X-Name-First: Olisaemeka D. Author-X-Name-Last: Maduka Title: Modelling the dynamics of cryptocurrency prices for risk hedging: The case of Bitcoin, Ethereum, and Litecoin Abstract: Cryptocurrencies have, over the years, gained an unprecedented prominence in financial discourse, with the market fielding over 5,300 digital currencies and reaching over $2 trillion in market capitalisation in 2022. The surge in market values of digital currencies and their popularity in the world of e-commerce have remained unabated and equally received special attention from researchers focusing on identifying the underlying factors that drive changes in their market values. Thus, this study models the dynamics of the prices of cryptocurrencies alongside their interconnectedness, focusing on Bitcoin, Ethereum, and Litecoin along the time and frequency dimensions of monthly data from 1 March 2016 to 05/31/2022. Based on the ARDL model, results show that the volume of transactions of Bitcoin, Ethereum, and Litecoin, oil prices, and gold prices exert a more significant positive influence on their prices in the longrun than in the shortrun. However, the publicity of the selected cryptocurrencies (google search rates) does not significantly influence their prices. Interestingly, results from the Wavelet Granger causality tests show no causality between the raw series of Bitcoin, Ethereum, and Litecoin prices. However, a bi-directional causality exists between Bitcoin and Ethereum prices during the longrun in their low frequencies, a unidirectional causality running from Bitcoin to Litecoin prices during the longrun in their low frequencies, and a unidirectional causality running from Litecoin to Ethereum prices during the shortrun, medium run and longrun in their high, medium, and low frequencies. These findings have profound implications for the global financial market and investor decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196852 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196852 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196852 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2186039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Salah Mohammed Abdulahi Author-X-Name-First: Salah Mohammed Author-X-Name-Last: Abdulahi Author-Name: Mekonnen Kumlachew Yitayaw Author-X-Name-First: Mekonnen Kumlachew Author-X-Name-Last: Yitayaw Author-Name: Habtamu Legese Feyisa Author-X-Name-First: Habtamu Legese Author-X-Name-Last: Feyisa Author-Name: Wondmagegn Biru Mamo Author-X-Name-First: Wondmagegn Biru Author-X-Name-Last: Mamo Title: Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia Abstract: An efficient bank is more robust to shocks, fosters competitiveness, and promotes stability of the financial system. This study estimates Ethiopia’s commercial banks’ level of efficiency and its determinants during the period 2014–2020. Data Envelopment Analysis (DEA), Malmquist DEA, and Tobit regression were employed to analyze the data. The result indicated that the average efficiency score of banks in the constant returns to scale (CRS), variable returns to scale (VRS), and scale efficiency (SE) models were 95.5%, 99.85%, and 96.95% , respectively. Furthermore, in the VRS model, a state bank is more efficient than private banks. During the study period, the Total Factor Productivity (TFP) of Banks improved by 1%. According to the Tobit model, the efficiency of banks grows with an increment in the number of branches, bank size, and credit risk. However, when, liquidity risk and the log of the fixed asset increase, bank efficiency will decrease. The level of capitalization, log of GDP, and inflation, on the other hand, do not influence bank efficiency. Therefore, banks should pay close attention to aspects that influence technical efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2186039 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186039 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2171609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Khoa Dang Duong Author-X-Name-First: Khoa Dang Author-X-Name-Last: Duong Author-Name: Phuong Mai Duong Tran Author-X-Name-First: Phuong Mai Duong Author-X-Name-Last: Tran Author-Name: Ha Pham Author-X-Name-First: Ha Author-X-Name-Last: Pham Title: CEO overpower and corporate social responsibility of commercial banks: The moderating role of state ownership Abstract: This study examines the impacts of powerful CEOs and state ownership on commercial banks’ corporate social responsibility (CSR) in Vietnam, a transitional market in Asia. Given the differences between emerging and developed markets in terms of their institutions and governance, it is essential to explore the impact of CEO power on CSR disclosure in emerging markets. This study collects data from 37 Vietnamese commercial banks from 2010 to 2020. We employ a dynamic system Generalized Method of Moments to overcome endogeneity and heterogeneity issues. The findings show that powerful CEOs negatively reduce CSR programs. CEO power tends to focus less on CSR investments because CSR expenses reduce the operating free cash flow. Meanwhile, our findings indicate a positive relationship between state ownership and CSR developments. This study reports a moderating role of state ownership in empowering powerful CEOs to develop CSR programs in commercial banks. We also perform a robustness test to confirm the persistence of our main findings across subsamples by CEO ages. Our robustness test results indicate that CEOs have the lowest motivation to improve CSR when their ages are from 40 to 60. Our findings align with agency theory, stakeholder theory and prior literature. Finally, our study contributes practical implications for management and policymakers to develop CSR programs sustainably. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2171609 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2171609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2171609 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183642_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rana Yassir Hussain Author-X-Name-First: Rana Yassir Author-X-Name-Last: Hussain Author-Name: Namarta Kumari Bajaj Author-X-Name-First: Namarta Kumari Author-X-Name-Last: Bajaj Author-Name: Sonia Kumari Author-X-Name-First: Sonia Author-X-Name-Last: Kumari Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Does Economic Policy Uncertainty Affect Foreign Remittances? Linear and Non-linear ARDL Approach in BRIC Economies Abstract: This study investigates the impact of economic policy uncertainty (EPU) on foreign remittances and whether it affects them symmetrically or asymmetrically. The ARDL model is employed to examine the short-run and long-run symmetric impact of EPU on foreign remittances, while the NARDL model is utilized to examine the short-run and long-run asymmetric impact of EPU on foreign remittances, using monthly data for the BRIC economies (Brazil, Russia, India, and China). The results indicate that in the short-run, EPU has a positive and significant impact only on the inflows of foreign remittances received in Russia. Additionally, the short-run asymmetric impact of EPU on foreign remittances is found in Russia and India. Meanwhile, the long-run asymmetric impact of EPU on foreign remittances is observed in the BRIC economies. In particular, the results show that the non-linear response of EPU varies among the sampled countries. The findings of this study enhance our understanding of the role of policy uncertainty in overseas remittances. This information would be beneficial for policymakers, migrants, and recipients, as they are directly involved in making decisions about policies and the transfer of remittances, respectively. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2183642 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183642 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2183642 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2217582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lan Nguyen-Thi-Huong Author-X-Name-First: Lan Author-X-Name-Last: Nguyen-Thi-Huong Author-Name: Hung Nguyen-Viet Author-X-Name-First: Hung Author-X-Name-Last: Nguyen-Viet Author-Name: Anh Nguyen-Phuong Author-X-Name-First: Anh Author-X-Name-Last: Nguyen-Phuong Author-Name: Duy Van Nguyen Author-X-Name-First: Duy Author-X-Name-Last: Van Nguyen Title: How does digital transformation impact bank performance? Abstract: Digital transformation is a keyword that has not only been mentioned in recent years but is also strongly applied by companies. However, the benefits of digital transformation for companies are still an issue that needs to be researched. Therefore, this study is conducted to determine the dynamics of digital transformation on banking business results. The research was conducted with joint stock commercial banks in Vietnam listed on the stock exchange. Based on text analysis on annual reports to measure banks’ digital transformation level from 2015 to 2021. Research results have shown that digital transformation has a negative impact on bank’s performance (through the return on assets and return on equity). Furthermore, the study also found that there was a paradoxical situation where COVID-19 increased the profits of banks. This result provides exciting discussions related to digital transformation and bank performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2217582 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217582 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2217582 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2188712_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kwame Mireku Author-X-Name-First: Kwame Author-X-Name-Last: Mireku Author-Name: Francis Appiah Author-X-Name-First: Francis Author-X-Name-Last: Appiah Author-Name: Joseph Akadeagre Agana Author-X-Name-First: Joseph Akadeagre Author-X-Name-Last: Agana Title: Is there a link between financial literacy and financial behaviour? Abstract: In this paper, we are motivated by the growing complexity of financial service products amidst an unending wave of Ponzi schemes as well as the low levels of financial literacy reported by prior studies. Particularly, while the extant literature has focused on various determinants of financial literacy, limited insights exist on the implications of financial literacy on financial behaviour. Consequently, we focus our empirical test on identifying the link between financial literacy and financial behaviour. We formulated our hypotheses from the family resource management theory which postulates that individual behaviour is a function of their knowledge. Thus, relative to financial literacy and financial behaviour, we argue that financially literate individuals are more likely to exhibit sound financial behaviour than those who are financially illiterate. We tested our hypothesis by using the logistic regression technique on a cross-sectional sample of 3,932 students pursuing various undergraduate and postgraduate programs in Ghanaian public and private universities. Notably, we selected our respondents from six (6) public and six (6) private universities. Consistent with our theoretical predictions, our results show that financially literate students are more likely to exhibit sound financial behaviour. Specifically, the results demonstrate that financial literacy is a major input for financial behaviour. Additionally, we observe that variables such as family characteristics particularly the father’s educational background, and discussion of financial matters at home are significant predictors of sound financial behaviour. Generally, our results have implications for various stakeholders including governments, academic institutions, and families. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2188712 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2188712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2188712 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2182016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guglielmo Maria Caporale Author-X-Name-First: Guglielmo Maria Author-X-Name-Last: Caporale Author-Name: Alex Plastun Author-X-Name-First: Alex Author-X-Name-Last: Plastun Title: Witching days and abnormal profits in the us stock market Abstract: This paper examines price effects related to witching days in the US stock market using both weekly and daily data for three major indices, namely the Dow Jones, S&P500 and Nasdaq, over the period 2000–2021. First it analyses whether or not anomalies in price behaviour arise from witching by using various parametric (Student’s t-test, and ANOVA) and non-parametric (Mann-Whitney) tests as well as an event study method and regressions with dummies; then it investigates whether or not any detected anomalies give rise to profit opportunities by applying a trading simulation approach. The results suggest the presence of the anomaly in daily returns on witching days which can be exploited by means of suitably designed trading strategies to earn abnormal profits, especially in the case of the Nasdaq index. Such evidence is inconsistent with the Efficient Market Hypothesis (EMH). Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2182016 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2182016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2182016 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2202963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Carlos Kokuvi Tetteh Author-X-Name-First: Carlos Kokuvi Author-X-Name-Last: Tetteh Author-Name: Anthony Amoah Author-X-Name-First: Anthony Author-X-Name-Last: Amoah Author-Name: Edmund Kwablah Author-X-Name-First: Edmund Author-X-Name-Last: Kwablah Author-Name: Rexford Kweku Asiama Author-X-Name-First: Rexford Kweku Author-X-Name-Last: Asiama Author-Name: Godson Ahiabor Author-X-Name-First: Godson Author-X-Name-Last: Ahiabor Title: A test of behavioural changes to electronic levy: Evidence from mobile money transactions in a developing country Abstract: Even before its introduction, the electronic levy in Ghana stirred up different behavioural reactions from the public, despite the intention to use its proceeds to provide better public services. As a result, this study examines some of these behavioural changes using pre-tax survey data on the proposed electronic levy. Using a sample size of 2,810 individuals with mobile money accounts, we estimate a multivariate logit model with its marginal effects to determine the associated drivers of individuals’ behavioural changes to the proposed tax. The results show that the electronic levy is likely to have an immediate impact on an individual’s behaviour in positive and negative ways. Thus, while about 88% of the respondents indicated that they are likely to stop using mobile money or reduce their transactions, approximately 12% of the respondents rather reaffirmed their willingness to keep using mobile money or perhaps increase their mobile-money transactions. Furthermore, we find evidence that income, marital status, objective knowledge, trust in government, and the implementation timeframe are the statistically significant determinants of behavioural changes to the electronic tax in Ghana. The results suggest varying behavioural responses to the electronic levy in Ghana, which threaten the realization of expected revenues. We recommend proper education and advocacy at all levels and a keen consideration to implement the levy later, perhaps, when there is more trust in the government’s ability to use tax revenues prudently. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2202963 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202963 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2202963 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2209950_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Md. Asad Iqbal Chowdhury Author-X-Name-First: Md. Asad Iqbal Author-X-Name-Last: Chowdhury Author-Name: Mohammad Shamsu Uddin Author-X-Name-First: Mohammad Shamsu Author-X-Name-Last: Uddin Author-Name: Monir Ahmmed Author-X-Name-First: Monir Author-X-Name-Last: Ahmmed Author-Name: Md. Rizwan Hassan Author-X-Name-First: Md. Rizwan Author-X-Name-Last: Hassan Author-Name: Mohammad Jonaed Kabir Author-X-Name-First: Mohammad Jonaed Author-X-Name-Last: Kabir Title: Potential risks of liquidity and credit affecting the efficiency of Islamic banks in Bangladesh Abstract: Recently worldwide Islamic finance has gained considerable attention. However, Islamic financial institutions face multiple risks to sustaining and growing further. Against this backdrop, the paper examines the impact of both liquidity and credit risk on the efficiency of Islamic banks (IBs) operating in Bangladesh. This paper uses IB’s data from 2007 to 2018 and offers a two-stage assessment. In the first stage, it uses data envelopment analysis (DEA), and in the second stage regression models to assess the impact of both liquidity and credit risk on the efficiency of the IBs. Efficiency scores confirm that IBs are operating with an 86% efficiency level through a 68% share in the constant returns to scale (CRS). Our results also confirm that both liquidity risk (LR) and credit risk (CR) have a significant impact on the efficiency of the IBs in Bangladesh. A higher score for efficiency is shown by a higher liquidity risk, whereas mixed results are confirmed by credit risk indicators. Moreover, the Z-score (a bank stability measurement) and number of branches (a measurement of the bank’s network coverage), have a positive impact on efficiency. On the other side, the size of the bank and the financial crisis period show a negative relationship with the bank’s efficiency. The findings of our paper significantly contribute to the Islamic banking sector, especially for the policymakers and academic researchers. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2209950 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209950 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2209950 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muneer Shaik Author-X-Name-First: Muneer Author-X-Name-Last: Shaik Author-Name: Syed Ahsan Jamil Author-X-Name-First: Syed Ahsan Author-X-Name-Last: Jamil Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Author-Name: Mohammad Sahabuddin Author-X-Name-First: Mohammad Author-X-Name-Last: Sahabuddin Author-Name: Mustafa Raza Rabbani Author-X-Name-First: Mustafa Raza Author-X-Name-Last: Rabbani Author-Name: Mohd Atif Author-X-Name-First: Mohd Author-X-Name-Last: Atif Title: Impact of geo-political risk on stocks, oil, and gold returns during GFC, COVID-19, and Russian – Ukraine War Abstract: The study uses wavelet power spectrum and wavelet coherence transformation methodologies to examine how geopolitical risk affected the returns on stocks, oil, and gold during the GFC, COVID-19, and Russia-Ukraine war-three disruptive events that affected the world’s financial markets. For better diversification benefits during the turbulent times, we further investigate the degree of co-movement in frequency and time domains. We observe that GPR has high variations during Russia-Ukraine war period compared to COVID-19 period and is shown to have least variation during the GFC period. WTI crude oil and DJGI indexes are observed to have high variations during GFC, and COVID-19 periods followed by Russia-Ukraine war. We further observe that GOLD offers better diversification opportunity as well as leading movement against WTI and DJGI during disruptive events in financial markets. The results provide new understanding of how geopolitical risk affects financial assets for international investors, fund managers, and regulators, which would further aid to find risky and safer haven possibilities during the turmoil periods. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190213 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190213 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Samuel Nkosinathi Dlamini Author-X-Name-First: Samuel Nkosinathi Author-X-Name-Last: Dlamini Author-Name: Dr Pfano Mashau Author-X-Name-First: Dr Pfano Author-X-Name-Last: Mashau Title: Determination of the effects and optimal thresholds of monetary policy instruments: A study of Central Bank Lending system in Kingdom of Eswatini Abstract: This paper examines the impact of monetary policy instruments such as discount rate, reserve requirement and liquidity requirement on bank credit to the private sector in the Kingdom of Eswatini. Monthly data sourced from the Central Bank of Eswatini and Eswatini Central Statistics Office is used for the period January 2000 to December 2017. Using the Johansen cointegration test and Vector Error Correction Model, our results show that: there is one cointegration in the model and the current levels of the discount rate, reserve requirement and liquidity requirement bear a negative and significant effect to bank credit to the private sector. This indicates that the three instruments are not supportive to economic growth and they are not optimal to stimulate credit. Applying the Quadratic approach, findings of this study reveal that the optimal monetary policy mix (thresholds) to stimulate bank credit to the private sector while maintaining inflation within reasonable levels is 5.42% for the discount rate, 4.03% for the reserve requirement, 12.48% for the liquidity requirement. The study recommends that the Central Bank of Eswatini should always take into account the existence of trade-off in monetary policy instruments results in order to stimulate bank lending to the private sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160582 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160582 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160582 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2160132_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gebreegziabher Fentahun Author-X-Name-First: Gebreegziabher Author-X-Name-Last: Fentahun Author-Name: Tadesse Amsalu Author-X-Name-First: Tadesse Author-X-Name-Last: Amsalu Author-Name: Zewdu Birhanie Author-X-Name-First: Zewdu Author-X-Name-Last: Birhanie Title: Farmers’ perceptions about the influence of land fragmentation and land quality on sustainable land management in the upper lake Tana Basin: Evidence from Dera District Abstract: The adoption of Sustainable Land Management (SLM) depends, among others, on land fragmentation and soil characteristics. From the factors, land fragmentation is a worldwide trait that result from various institutional, political, historical, and sociological factors which influence farmers perceptionperception on SLM practice. Henceforth, this study was carried out to investigate the effects of land fragmentation and land quality on Sustainable Land Management (SLM) in the upper Lake Tana basin of Dera Woreda. Data on land fragmentation were collected using GPS and GIS tools, and a survey was conducted on 194 farm households, 1,059 parcels, and FGD to secure data on socioeconomic issues and insight of respondents on land fragmentation and associated variable. Simple descriptive and inferential statistics were applied to analyze socioeconomic, demographic and the perception of farmers about land-related factors. Analysis of land fragmentation using the Simpson index indicated 74%, implying that there is a high degree of land fragmentation in the study area. A multivariate probit (MVP) model was used to analyze the effect of land fragmentation and related factors on the interdependent investment decisions of SLM practices (Bunds, Manure, permanent erosion control and chemical fertilizer) using a multiple household level survey. The MVP model analysis indicates that farmers use two or more practices at plot level by considering substitution and complementarity effects of the practices. The results also revealed how land quality (e.g., slope and soil depth), land fragmentation (Simpson index, parcel size and distance from homestead) influence farmers’ investments in SLM practices. The overall results indicate that farm land fragmentation hinders SLM investments, and land quality parameters also improve or hinder the decisions about investments. Policy makers should consider these various land associated factors in designing and implementing SLM policies and programs. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2160132 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160132 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160132 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220249_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tarek Ibrahim Eldomiaty Author-X-Name-First: Tarek Ibrahim Author-X-Name-Last: Eldomiaty Author-Name: Marina Apaydin Author-X-Name-First: Marina Author-X-Name-Last: Apaydin Author-Name: Ahmed El-Sehwagy Author-X-Name-First: Ahmed Author-X-Name-Last: El-Sehwagy Author-Name: Mohamed Hashim Rashwan Author-X-Name-First: Mohamed Hashim Author-X-Name-Last: Rashwan Title: Institutional quality and firm-level financial performance: implications from G8 and MENA Countries Abstract: This paper examines the effects of institutional quality on firm-level financial performance. The data include non-financial firms listed in stock exchanges in G8 and MENA countries. The total number of firms in the G8 and MENA is 347 and 389, respectively, covering the period 2017–2020. The results show that, in the G8 countries, institutional quality is associated significantly and positively with asset efficiency, expense control, debt financing, and liquidity. In the MENA countries, institutional quality is associated significantly and positively with liquidity and profitability, but negatively with asset efficiency, expense control, and debt financing. The results show that the effect of corporate size is asymmetrical. The results also reveal a significant institutional convergence between G8 and MENA countries in terms of voice & accountability, political stability, and government effectiveness. Nevertheless, institutional quality in the G8 is better off that of the MENA countries in terms of Rule of law, Control of Corruption, and Regulatory Quality. The results also show that the duration of improvement in institutional quality takes between 2–4 years to have a significant effect of firms’ financial performance. This paper offers a contribution to corporate managers in terms of offering a guide to design financial strategies that adapts to the quality of institutions in the respective countries. A further contribution is offered to policy makers in terms of offering a road map to improve institutional quality that helps improve the financial performance of the business sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220249 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220249 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2156094_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gideon Link Sackitey Author-X-Name-First: Gideon Link Author-X-Name-Last: Sackitey Title: Do environmental taxes affect energy consumption and energy intensity? An empirical analysis of OECD countries Abstract: The use of environmental taxes can encourage a shift toward eco-friendly choices. When used in conjunction with other policy tools available, environmental taxes can help bring about the adjustments needed in order to address our current environmental and climate challenges. Therefore the objective of this study was to examine the impact of environmental taxes on energy consumption and energy intensity using panel data covering the period 1995–2014 from 35 OECD countries. I employed environmental tax to total tax ratio, total energy consumption, and total energy intensity to estimate the relation between energy consumption and environmental taxes. Using the fully modified and dynamic OLS techniques and I showed that environmental taxes have a negative effect on energy consumption and energy intensity in the long run. Furthermore, using the Dumitrescu and Hurlin’s panel granger causality test I found a bi-directional long-run causality between environmental taxes and energy consumption and intensity. With regards to the disaggregated effect of environmental taxes, this study found that energy taxes (including CO2 taxes) have a larger effect on energy consumption and energy intensity than pollution and transport taxes. To test for the robustness and sensitivity of my model, I resorted to the total environmental tax to GDP ratio and employed both GMM and quantile regressions. Thus, I concluded that environmental taxes have a significant impact on energy consumption and energy intensity among OECD member countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2156094 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2156094 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2196844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xolile Antoni Author-X-Name-First: Xolile Author-X-Name-Last: Antoni Title: THE role of family structure on financial socialiSation techniques and behaviour of students in the Eastern Cape, South Africa Abstract: Financial socialisation techniques are known to influence students’ financial behaviour in the Eastern Cape. Still, the role of family structure on financial socialisation techniques and financial behaviour is unknown in the Eastern Cape. This study investigates the role of family structure on financial socialisation techniques and students’ financial behaviour in the Eastern Cape. A quantitative study was adopted, and closed-ended questionnaires were used in this study to collect primary data from 360 students in one university in the Eastern Cape. It was found that 66.11% of the students were raised in intact families, while 33.89% were raised in non-intact families. In terms of regression results, it was found that family structure significantly influences and shows differences in financial socialisation techniques and students’ financial behaviour. Also, financial socialisation techniques mediate the influence of family structure on students’ financial behaviour. It was recommended that financial educators should take into account the family variables such as family structure when planning for financial education programmes. Ideally, financial educators should develop a financial education programme that separately targets intact and non-intact families. Also, financial educators should encourage students to invite their parents to attend and participate in financial education workshops. This is to ensure that parents are educated on parental financial teaching and modelling as a way to improve students’ financial behaviour. This study demonstrates that family structures should be considered when targeting students’ financial behaviour. Also, financial socialisation techniques are important in improving students’ financial behaviour in the Eastern Cape. This study contributes to personal finance literature by providing empirical data on the role of family structure in financial socialisation and the behaviour of students. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2196844 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196844 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2196844 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Billie Anderson Author-X-Name-First: Billie Author-X-Name-Last: Anderson Author-Name: Nathan Mauck Author-X-Name-First: Nathan Author-X-Name-Last: Mauck Author-Name: Leigh Salzsieder Author-X-Name-First: Leigh Author-X-Name-Last: Salzsieder Title: An experiment on information presentation and investor mutual fund selection Abstract: Our experiments evaluate the role of information presentation in reducing violations of the Law of One Price in individual investor selection of index mutual funds. The results indicate that most individuals fail to minimize fees. However, individuals allocate nearly 27% (43%) more of their investment dollars to the lowest fee index mutual fund when receiving fee information in the form of a table compared to a graph presentation (in ten-year rather than one-year form). Overall, a simple change from table to graph fee presentation results in a statistically and economically significant reduction in the fees paid by investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190214 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190214 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190214 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2169997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Salvatore Joseph Terregrossa Author-X-Name-First: Salvatore Joseph Author-X-Name-Last: Terregrossa Author-Name: Uğur Şener Author-X-Name-First: Uğur Author-X-Name-Last: Şener Title: Employing a generalized reduced gradient algorithm method to form combinations of steel price forecasts generated separately by ARIMA-TF and ANN models Abstract: The research objective of the present study is the development of a model for increased accuracy of steel-price forecasts, which is of paramount importance for firms who use steel as an input and thus need to make informed decisions with regard to an optimal amount and type of hedge against unfavourable steel-price movement. To achieve its aim, the study forms weighted average combinations of steel price forecasts generated separately by a transfer function ARIMA model (ARIMA-TF) and an artificial neural network model (ANN), as both models are shown to contribute independent information with regard to target variable (steel price) movement. A generalized reduced gradient algorithm (GRG) method is employed to estimate the component model forecast weights, which is a novel approach introduced by this study. The data set employed includes a time series of monthly steel prices (cold rolled flat steel) from February, 2012 to November, 2020. Explanatory variables include iron ore price, coking coal price, capacity utilization, GDP and industrial production. With regard to the out of sample forecasts of all models (component and combining), mean absolute percentage forecast errors (MAPE) are calculated and model comparisons are made. The study finds that the combining model formed with the gradient algorithm approach in which the weights are constrained to be nonnegative and sum to one has the lowest MAPE of all models tested, and overall is found to be very competitive with other models tested in the study. The policy implication for firms that use steel as a major input is to base their hedging decisions on a combination of forecasts generated by ARIMA-TF and ANN models, with the forecast weights generated by a constrained generalized reduced gradient algorithm (GRG) method. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2169997 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169997 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2169997 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2218680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aarif Mohammad Khan Author-X-Name-First: Aarif Mohammad Author-X-Name-Last: Khan Author-Name: Uzma Khan Author-X-Name-First: Uzma Author-X-Name-Last: Khan Author-Name: Sana Naseem Author-X-Name-First: Sana Author-X-Name-Last: Naseem Author-Name: Shaha Faisal Author-X-Name-First: Shaha Author-X-Name-Last: Faisal Title: Role of energy consumption, tourism and economic growth in carbon emission: evidence from Kuwait Abstract: Even though the Paris Agreement and the Sustainable Development Goals say that low-carbon economic growth is essential, more research must be done to determine how the tourism sector affects carbon productivity. So, to see if increased energy usage, tourism, and economic growth jointly raise carbon productivity in Kuwait, this study uses a vector error correction strategy to look at the years 1995–2020. Predictions about how sustainable tourism will affect energy efficiency, and carbon productivity improvements are also an excellent way to learn more about this subject. As the amount of carbon dioxide in the air increases, tourism will go down by 0.13 percent. Inverse cointegration is the term for this phenomenon. However, the vector error correction model showed that carbon emissions go down as the economy grows and people pay more attention to how much energy they use. Nevertheless, Granger’s theory of cause and effect says that carbon emissions, energy use, and economic growth can only lead to more tourism in one way. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2218680 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2218680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2218680 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alastair Marais Author-X-Name-First: Alastair Author-X-Name-Last: Marais Author-Name: Claire Vermaak Author-X-Name-First: Claire Author-X-Name-Last: Vermaak Author-Name: Patricia Shewell Author-X-Name-First: Patricia Author-X-Name-Last: Shewell Title: Predicting financial statement manipulation in South Africa: A comparison of the Beneish and Dechow models Abstract: Recently, South Africa has suffered from several large financial statement frauds. To assist stakeholders in identifying fraud, this study investigated the ability of the Beneish M-score and the Dechow et al. F-score to identify fraud in South Africa. The study also explored similarities in earnings management characteristics between false positives and fraudulent companies. Finally, the study re-estimated the models’ coefficients based on current South African data to determine if this improved their predictive capabilities. The study used a sample of 23 manipulated and 2 320 non-manipulated observations from 2006 to 2018 and found that both scores showed low sensitivity and precision. The false positives share similar, or higher, earnings management characteristics to the manipulators. Re-estimating the coefficients reduced the M-scores’ sensitivity by, on average, 6.52% but improved precision by, on average, 4.21%. Conversely, re-estimation increased the F-scores’ sensitivity by, on average, 58.70% but increased the type II error by, on average, 48.09%. These findings suggested that either the M- and F-scores are unsuitable in the South African context or that regulators have failed to identify manipulators adequately. Therefore, investors and other stakeholders should use caution when applying these models in South Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190215 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190215 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190215 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2158630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fabrice-Gilles Ndombi Avouba Author-X-Name-First: Fabrice-Gilles Author-X-Name-Last: Ndombi Avouba Author-Name: A.IBN-Saïd Akougbe Author-X-Name-First: A.IBN-Saïd Author-X-Name-Last: Akougbe Author-Name: Christel le Ines Leticia Ndombi Ondze Author-X-Name-First: Christel le Ines Leticia Author-X-Name-Last: Ndombi Ondze Title: Non-linearity between financial inclusion and economic growth in sub-saharan Africa: What implications for the West African Economic and Monetary Union (WAEMU)? Abstract: In a context where many African populations are excluded from the traditional banking system, financial inclusion appears to be a determining factor in enabling agents in need of financing, notably producers and consumers, to have easy access to financial services in order to contribute to the multiple efforts of economic and social progress of nations. However, to date, the literature remains silent on the optimal level of financial inclusion that can boost growth. Consequently, this paper aims to verify whether there is a non-linear relationship between economic growth and financial inclusion in the WAEMU zone. Econometric applications based on the PCSE (panel-corrected standard error) model on a panel of eight countries for the period 2014–2018 reveal a U-shaped relationship between the extended banking rate and economic growth. Economic growth shows two different behaviours depending on whether one is on the side of one or the other of the regimes inherent to the inflection point. In view of these results, we suggest that the public authorities: i) intensify campaigns to open accounts in local languages, ii) promote the development of online sales applications for goods and services, iii) pursue the dematerialisation of financial operations within public administrations. Finally, this paper paves the way for future research on the microeconomic component and a similar treatment of the subject, but taking into account the occurrence of the Covid pandemic19. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2022.2158630 File-URL: http://hdl.handle.net/10.1080/23322039.2022.2158630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2158630 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2166733_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Salem Al Mustanyir Author-X-Name-First: Salem Author-X-Name-Last: Al Mustanyir Title: Government healthcare financing and dwindling oil prices: Any alternatives for OPEC countries? Abstract: Crude oil is one of the sources by which budgets are financed in OPEC countries. However, the fall in oil prices in 2014 put their governments’ finances under significant pressure. Healthcare was one of the sectors experiencing fiscal strain. This study examined the effect of a fall in oil prices on healthcare financing in eight OPEC countries and whether such financing has shifted away from the dependence on oil. Quantitative healthcare expenditure data from the WHO covering the period from 2003 to 2019 were evaluated using a comparison of means Welch’s t-test. The result showed that government healthcare expenditure in Iran, Venezuela, and Kuwait increased in the period post-2014 compared to the expenditure after 2008 and 2002, suggesting that these countries succeeded in shielding such spending against the fall in oil prices. By contrast, the United Arab Emirates, Saudi Arabia, Iraq, Nigeria, and Algeria did not, highlighting that they have not yet moved from dependence on oil. With the economic uncertainty caused by oil fluctuations, global political and economic developments, and the world transitioning to green energy, oil-dependent countries should free their governments’ healthcare expenditure from dependence on such sources of funding. Furthermore, they should not focus on temporary plans by shifting the burden to private spending at a time of falling oil prices, but to utilize different financing approaches. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2166733 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2166733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2166733 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2199596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tadele Alamneh Author-X-Name-First: Tadele Author-X-Name-Last: Alamneh Author-Name: Melkamu Mada Author-X-Name-First: Melkamu Author-X-Name-Last: Mada Author-Name: Tora Abebe Author-X-Name-First: Tora Author-X-Name-Last: Abebe Title: Impact of Urban expansion on income of evicted farmers in the peri-Urban areas of Amhara Regional State, Ethiopia: Endogenous switching regression approach Abstract: The rate of urbanization in the Amhara region has apparently increased over the past three decades and is now higher than that of any other region in Ethiopia. As cities expand, peri-urban farmers in the region are being compelled to abandon their landholdings, which is their life-long asset. Therefore, the aim of this study is to investigate the impact of urban expansion on the income of evicted peri-urban farmers in Injibara, Burie and Gish Abay cities of the Amhara regional state, Ethiopia. Using stratified sampling technique, primary data was collected from 393 households (197 evicted and 196 non-evicted). The endogenous switching regression model was employed to examine the impact of urbanization on the income of evicted farmers. The model’s output of ATT revealed that evicted farmers had a substantial reduction in yearly income of 9202.36 Ethiopian Birr as compared to their counterfactuals. In other words, eviction diminishes the annual income of evicted farmers by 26.73%. Furthermore, ATU results also confirmed that non-evicted farmers’ income would have decreased by 4666.78 Birr if they had chosen to be evicted, proving that eviction might have a negative impact on farmers’ income at any circumstance. Therefore, this study suggests that the government conduct a comprehensive socioeconomic and demographic evaluation before evicting indigenous farmers and that an alternative strategy be developed to mitigate the negative effects of eviction on peri-urban farmers. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2199596 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199596 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2199596 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zahid Jumah Author-X-Name-First: Zahid Author-X-Name-Last: Jumah Author-Name: Zahid Irshad Younas Author-X-Name-First: Zahid Author-X-Name-Last: Irshad Younas Author-Name: Nabeel Safdar Author-X-Name-First: Nabeel Author-X-Name-Last: Safdar Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Economic policy uncertainty and corporate leverage - does cash holdings matter? Evidence from the U.S. Abstract: This research study examines the mediating role of cash holdings between the economic policy uncertainty (EPU) and corporate leverage relationship. Using stepwise regression analysis and annual firm-level data of 2,534 U.S. firms listed at NYSE over 1995–2018, we provide novel evidence that cash holdings significantly and partially mediate the EPU-leverage relationship, accounting for a 10.72% increase in the corporate leverage during EPU. We discover that the mediating role of cash holdings between EPU and leverage is sensitive to firm-level heterogeneity. Also, the mediating effect of cash holdings remains significant based on long- and short-term leverage. Finally, our findings are robust to outliers’ effect, alternate EPU measurement, endogeneity concerns and sample-selection bias. The findings of this study highlighted the role of firm cash holdings in a firm’s leverage decision during economic uncertainty and recommends increasing debt financing to incentivize value-increasing decisions and mitigate agency problems by reducing the cost of free cash flows. Policymakers should be aware of public and private firms’ challenges during high EPU. As we showed in this study, firms have to adjust their financial decisions during high economic uncertainty. Also, the study suggests that policymakers should maintain economic policies to avoid external shocks that may force firms to adjust their financial decision-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223809 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223809 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2220520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Eleonora Sofilda Author-X-Name-First: Eleonora Author-X-Name-Last: Sofilda Author-Name: Muhammad Zilal Hamzah Author-X-Name-First: Muhammad Author-X-Name-Last: Zilal Hamzah Author-Name: Suhal Kusairi Author-X-Name-First: Suhal Author-X-Name-Last: Kusairi Title: Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia Abstract: In Indonesia, fiscal decentralisation has been implemented for two decades, and it is expected that the regions will have a sufficient level of independence to increase economic growth and welfare. This study investigates the influence of fiscal decentralisation and human development on regional economic growth. The sample data comprised 484 county-level in Indonesia and utilised the panel data method. The findings showed that the central government grant, locally generated revenue, and human capital development positively influenced regional economic growth, although the degree of decentralisation negatively affected regional growth. Meanwhile, for regions with independence above 50 per cent, decentralisation, locally generated revenue, central government transfer and provincial loans and human capital development positively influenced regional economic growth. In addition, findings also indicated that a dynamic effect exists, implying that the performance of previous regional economic growth influenced current economic achievements. The policy implication of the study is that policymakers cannot equalise policy to boost regional economic growth because every county has its specific characteristics. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2220520 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2220520 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fazlul Miah Author-X-Name-First: Fazlul Author-X-Name-Last: Miah Author-Name: Omar Altiti Author-X-Name-First: Omar Author-X-Name-Last: Altiti Author-Name: Abdoul Wane Author-X-Name-First: Abdoul Author-X-Name-Last: Wane Title: Some cross-country evidence on information rigidity in inflation forecasts Abstract: The study investigates the existence and extent of information rigidity in inflation forecasts among 25 developed and 18 developing economies during 2002–2017 period utilizing a survey data set never explored before on this issue. In general, the study finds some evidence of information rigidity. Rigidity is present during the recession period of global financial crisis of 2007 for both the developed and the developing countries alike, and we find weak evidence of information gathering picking up during the recession period. We also find that forecast revisions depend on both own country and cross-country lagged revisions. Therefore, one source of information rigidity is not to incorporate overseas events in forecast revisions quickly and completely. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2223417 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2223417 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2190643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Joseph Upile Matola Author-X-Name-First: Joseph Upile Author-X-Name-Last: Matola Title: How monetary policy affects industrial activity in Malawi: Evidence from ARDL and VAR models Abstract: In this paper, the impact of monetary policy on industrial production is investigated for Malawi. Using the ARDL bounds testing approach, and VAR models, it is shown that tight monetary conditions negatively affect industrial production both in the short run and in the long run. This is the case whether the central bank’s policy rate or reserve money is used as the policy tool. The study further establishes the interest rate channel, and money supply channel as the main mechanisms through which this effect of monetary policy is transmitted to industrial production. Given these results, a recommendation is made that the Reserve Bank of Malawi should refrain from prolonged use of tight monetary policy in their quest to achieve stability of prices as this stifles growth of the industrial sector. Rather monetary policy should be used as a temporary stabilization tool when faced with temporary shocks to the bank’s policy objectives. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2190643 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190643 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190643 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2175467_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: George Okello Candiya Bongomin Author-X-Name-First: George Okello Candiya Author-X-Name-Last: Bongomin Author-Name: Waswa Balunywa Author-X-Name-First: Waswa Author-X-Name-Last: Balunywa Author-Name: Edith Mwebaza Basalirwa Author-X-Name-First: Edith Author-X-Name-Last: Mwebaza Basalirwa Author-Name: Muhammed Ngoma Author-X-Name-First: Muhammed Author-X-Name-Last: Ngoma Author-Name: Joseph Mpeera Ntayi Author-X-Name-First: Joseph Author-X-Name-Last: Mpeera Ntayi Title: Contactless digital financial innovation and global contagious COVID-19 pandemic in low income countries: Evidence from Uganda Abstract: Since its outbreak, Covid-19 has led to upsurge in economic inactivity, leaving many households and firms without access to and use of basic services including financial services. Specifically, with the lockdown and curfew, most traditional bank branches remained closed, leaving households without access to quality, affordable, convenient, and safe financial services. This study aims to establish whether contactless digital financial innovation like mobile money can promote access to and use of financial services in the presence of pandemic positive emotions in low-income countries. SmartPLS 3.0 was used to construct the structural equation mediation model with bootstrap based on 2,737 valid responses. It was found that contactless digital financial innovation such as mobile money significantly promotes access to and use of financial services in low-income countries under pandemic situation. Additionally, the findings showed that the use of contactless digital financial innovation promotes Covid-19 standard operating procedures in low-income countries. Cognizant to the role of human behaviour in technology adoption and usage, the structural equation model with bootstrapping revealed a 4 percentage points improvement in Covid-19 standard operating procedures due to the use of contactless mobile money channel. Accordingly, the findings could be useful in the following ways: governments in low-income countries may use it to promote public health concern under pandemic situations. Mobile money can allow individuals to store, send, and receive money during situation of limited or no movements caused by pandemic health restrictions. Besides, the use of contactless digital financial innovation may promote digital commerce in low-income countries under the pandemic situation. Similarly, mobile money can be used to promote government-to-person, person-to-person, person-to-business, and business-to-person payments under emergency situations. The findings may also help governments in low-income countries to rethink about taxes levied on mobile money. Journal: Cogent Economics & Finance Issue: 1 Volume: 11 Year: 2023 Month: 12 X-DOI: 10.1080/23322039.2023.2175467 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2175467 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Toure Moumbark Author-X-Name-First: Toure Author-X-Name-Last: Moumbark Author-Name: Yawovi M. A. Koudalo Author-X-Name-First: Yawovi M. A. Author-X-Name-Last: Koudalo Title: Firm self-financing, corruption, and the quality of tax administration in Africa Abstract: This study aims to determine the impact of tax administration and corruption on firm self-financing in Africa. The paper also explores the level at which tax administration and corruption are firm financing obstacles and whether these effects on firms differ regarding their size. The article uses data from the World Bank Enterprise Survey, which covers 45,048 firms in 48 countries across Africa. Using the Tobit, IV Tobit, and Multinomial Probit models, the results are robust as we controlled for country, firm diversity, and survey year. The study reveals that corruption reduces a firm’s self-financing by negatively affecting its internal funds or retained earnings. In addition, weak tax administration reduces firm self-financing. The results also reveal that corruption and poor tax administration are severe obstacles to a firm’s self-financed. Furthermore, while weak tax administration generally harms firm financing, the negative impact on larger firms surpasses the adverse effects on smaller and medium firms. The corruption issue is more critical in the case of small and medium firms than big firms as they spend a large portion of their profit to government officials as gifts or informal payments to reduce the burden of regulations and circumvent taxes. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266241 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266241 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2231226_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Chala Amante Abate Author-X-Name-First: Chala Amante Author-X-Name-Last: Abate Title: The nexus of public debt and economic growth in Ethiopia: Is it symmetric? Abstract: This study examines the nature of relationship between public debt and economic growth of Ethiopia. To this end, a time series data was collected over the period 1982–2018. Nonlinear ARDL and multiple thresholds nonlinear ARDL models were used to uncover whether the relationship between debt and economic growth of Ethiopia is asymmetric. Instrumental variable regression model with a quadratic specification was used to test threshold effect of debt. The results reveal there are evidences that support the existence of asymmetric relationship between the indicated variables. Accordingly, it was found that a major positive shock in debt is favorable to economic growth while the effect of a minor and negative shock to debt is unfavorable. The results further reveals that there is a threshold effect of debt such that it is beneficial to economic growth of Ethiopia when it is well below 66.75% of GDP or 36.27% of GNI. Above these threshold levels, debt incurred deteriorates economic growth of the country. The study recommends that government of Ethiopia should create conducive environment that helps to secure more debts from potential creditors and at the same time, keep the annual debt well below 66.75% of GDP and 36.27%. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2231226 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2231226 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2241205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Catalin Gheorghe Author-X-Name-First: Catalin Author-X-Name-Last: Gheorghe Author-Name: Oana Panazan Author-X-Name-First: Oana Author-X-Name-Last: Panazan Title: Effects of information related to the Russia-Ukraine conflict on stock volatility: An EGARCH approach Abstract: The Russia-Ukraine military conflict, commencing on February 24, 2022, notably impacted the international community. This study aims to quantify the volatility engendered by the conflict, drawing from the analysis of stock market indices across 40 countries. Time-series returns data from January 1 to December 31, 2022, were examined utilizing EGARCH econometric models. The relationship between volatility and news regarding the conflict was analyzed through a vector autoregression model, and associations between variables were examined using the Granger causality test. Findings suggest that some markets proximate to Ukraine, notably in Hungary, Polassnd Poland, Serbia, Bosnia and Herzegovina, and the Czech Republic, reacted in anticipation of the conflict, days prior to February 24. Remote markets experienced comparatively lower volatility, along with the primary stock markets. Additionally, a decline in volatility was observed as war-related information became available. Notably, the period between March 2 and March 16, 2022, recorded the highest volatility in 21 countries. Conversely, the value markets of the US, China, Japan, the UK, and Germany navigated the analyzed period with lower volatilities. These results demonstrate that conflict shocks influence stock markets globally. The implications of these findings are significant for investors, decision-makers, portfolio managers, investment funds, and central banks. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2241205 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241205 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241205 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2261307_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Luong Vinh Quoc Duy Author-X-Name-First: Luong Vinh Quoc Author-X-Name-Last: Duy Author-Name: Damien Cassells Author-X-Name-First: Damien Author-X-Name-Last: Cassells Author-Name: Jim Hanly Author-X-Name-First: Jim Author-X-Name-Last: Hanly Title: Household electricity consumption: A study on the role of micro-renewable energy systems in Vietnam Abstract: Although nearly all households in Vietnam have connected to the national grid, electricity shortage in the residential sector is still an issue. One measure of residential electricity shortage is the micro-renewable energy system (micro-RES), but little is known about the drivers for household adoption of such system and whether the presence of a micro-RES can help to reduce household energy consumption. This paper examines the characteristics of households that have adopted a micro-RES and investigates whether the presence of micro-RES would result in a decrease in energy demand by using fixed-effects models. Analysis was carried out on the 2016 and 2018 Vietnam Household Living Standard Survey data sets. The results show that the micro-RES adopters are likely to have lower educational level, lower income or living conditions, and live in the mountainous regions. Micro-RES adopters are found to spend less on electricity and fuel than the non-adopters and this finding is consistent across households of different income groups. The results also suggest that the support schemes may be beneficial to households adopting micro-RES because they really need it to meet the increasing demand in electricity. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2261307 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261307 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2261307 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2279871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Steven Schmeiser Author-X-Name-First: Steven Author-X-Name-Last: Schmeiser Title: Board of discord: Conflicting preferences and performance pay Abstract: This study examines the interaction of conflicting preferences among directors, performance pay, and group effort. I model a corporate board in which directors voluntarily choose to research (or not research) an investment decision made by the board on behalf of the firm. Free-riding among directors creates a need for performance pay to motivate this costly research. The study shows that board diversity, modeled as heterogeneous personal preferences among directors over the chosen investment, can act as a substitute for costly performance pay and, in equilibrium, benefit the firm. This creates a direct financial incentive for firms to increase board diversity. The study then shows how the optimal level of diversity changes with board and firm characteristics and generates a set of testable empirical predictions. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2279871 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2279871 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2279871 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2244857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Minh Duc Do Author-X-Name-First: Minh Duc Author-X-Name-Last: Do Author-Name: Tho Dat Tran Author-X-Name-First: Tho Dat Author-X-Name-Last: Tran Author-Name: Hong Nhung Nguyen Author-X-Name-First: Hong Nhung Author-X-Name-Last: Nguyen Author-Name: Ngoc Mai Le Author-X-Name-First: Ngoc Mai Author-X-Name-Last: Le Author-Name: Duc Hieu Ninh Author-X-Name-First: Duc Hieu Author-X-Name-Last: Ninh Title: Is gold an inflation hedge in Vietnam? A non-linear approach Abstract: This paper investigates the inflation-hedging ability of gold in Vietnam from 2011 to 2022. In order to assess how government management has affected the domestic gold market, two local gold prices (SJC and 9999) were employed. The non-linear autoregressive distributed lags (NARDL) approach is applied to analyze the short- and long-run asymmetry between CPI and gold prices. The result reveals that the relationships between CPI and gold prices are non-linear (asymmetric) and gold can only hedge against inflation in the short run. Additionally, the global gold price fluctuations, combined with limited supply, have created a supply shock, causing domestic enterprises to proactively widen the bid-ask spread in both types of gold to mitigate risks, indirectly exacerbating the local-global price disparities. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2244857 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2244857 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2273590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yezihalem Mebrie Gobezie Author-X-Name-First: Yezihalem Mebrie Author-X-Name-Last: Gobezie Author-Name: Jonse Bane Boka Author-X-Name-First: Jonse Bane Author-X-Name-Last: Boka Title: The nexus between greenhouse gas emissions and food security in sub-Saharan Africa: A system GMM analysis Abstract: In SSA, evidence is scanty on the association between greenhouse gas emissions and food security, though the region is highly vulnerable to climate change. Thus, this study has examined the effects of greenhouse gas emissions on food security in 22 SSA countries for the period 2005–2018. We employed a one-step system GMM to control for endogeneity and individual heterogeneity problems. The GMM was also an efficient estimator for a dynamic panel data model. Results of the study revealed that most SSA countries are in the vicious circle of food insecurity, with very limited improvement over the study period. In addition, the GMM result found that the accumulation of greenhouse gases has significantly contributed to reduction of food security in SSA. Greenhouse gas emissions have a negative and statistically significant effect on food security. A 1% increase in greenhouse gas emissions has resulted in a 1.2% decrease in food security. However, livestock production, agricultural employment, and economic growth have improved food security, though livestock production and economic growth have very low significant coefficients. Therefore, the study recommends that the region should devote an immense effort to boost food security through combating greenhouse gas emissions and achieving the net-zero emission target of SDG 13 on climate change. Policy makers and governments should also consider policy interventions like providing funding to assist green projects and sustainable agricultural practices to reduce the negative effects of climate change. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2273590 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2273590 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2256197_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Isubalew Daba Ayana Author-X-Name-First: Isubalew Author-X-Name-Last: Daba Ayana Author-Name: Wondaferahu Mulgeta Demissie Author-X-Name-First: Wondaferahu Mulgeta Author-X-Name-Last: Demissie Author-Name: Atnafu Gebremeskel Sore Author-X-Name-First: Atnafu Gebremeskel Author-X-Name-Last: Sore Title: Effect of external debt on economic growth in sub-Saharan Africa: System GMM estimation Abstract: Following the upsurge of external debt in SSA countries, the effect of external debt on economic growth has captured the attention of empirical studies during the last two decades of the twenty-first century. This study investigated the short- and long-run effect of external debt on the economic growth of 39 SSA countries during the last decade for the periods of 2011–2021. The annual balanced dynamic panel data for the study were sourced from a recognized trustworthy data source, the world development indicator. The result of the study divulged that external debt has a significant negative impact in both the short and long run. Unequivocally, other things remaining constant, a percentage change in total external debt is associated with a 0.034 percent decline in the real GDP of SSA in the short run, while it leads to 0.65 percent shrinkage in the real GDP of SSA in the long run. The study concludes that the negative impact of the long run is greater than that of the short run. The policy implication is that SSA countries should allocate the external debt on the projects that bring other investment opportunities to amortize external debt. Further, the strategies that improve domestic revenue mobilization sources that compliment external debt such as improving informal sectors to broaden tax bases and minimizing domestic revenue leakages need to be established in SSA countries. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2256197 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256197 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2256197 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285158_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Santosh Gopalkrishnan Author-X-Name-First: Santosh Author-X-Name-Last: Gopalkrishnan Author-Name: Shiba Prasad Mohanty Author-X-Name-First: Shiba Prasad Author-X-Name-Last: Mohanty Author-Name: Megha Jaiwani Author-X-Name-First: Megha Author-X-Name-Last: Jaiwani Title: Do efficiencies really matter? Analysing the housing finance sector and deriving insights through data envelopment analysis Abstract: This study aims to assess the efficiency of housing finance companies operating in India by applying Data Envelopment Analysis (DEA). We analyse 26 housing finance companies’ efficiency using various key financial indicators. In addition to DEA, we utilised Tobit regression to investigate the determinants of efficiency in housing finance companies. The findings indicate that large firms need internal restructuring of their coefficients to achieve efficiency, while small firms maintain efficiency within their capacity in the given scenarios. The total factor productivity change for housing finance companies was the highest in 2020–21, followed by a comparative decline in the subsequent year. By considering censored or truncated data, Tobit regression allows us to identify the specific factors influencing efficiency scores derived through DEA. The independent variables used in the Tobit regression model include financial indicators and other relevant factors impacting housing finance companies’ efficiency. Overall, this study sheds light on the performance of housing finance companies and highlights the financial parameters necessary for maintaining a robust non-banking financial system in the Indian economy. The combination of DEA and Tobit regression provides a comprehensive understanding of efficiency and aids in identifying areas for improvement in the housing finance sector while benefiting policymakers and industry stakeholders alike. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285158 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285158 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2279351_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Tasin Safwath Chowdhury Author-X-Name-First: Tasin Safwath Author-X-Name-Last: Chowdhury Author-Name: Md. Hasanur Rahman Author-X-Name-First: Md. Hasanur Author-X-Name-Last: Rahman Author-Name: Shapan Chandra Majumder Author-X-Name-First: Shapan Chandra Author-X-Name-Last: Majumder Author-Name: Miguel Angel Esquivias Author-X-Name-First: Miguel Angel Author-X-Name-Last: Esquivias Title: Significance of technological progress and capital formation to expand foreign direct investment in Bangladesh: Does money circulation matter? Abstract: The key objective of this study is to investigate how capital formation and technological advancement affect foreign direct investment (FDI) generation in Bangladesh and whether money circulation has a positive or negative impact on FDI. This study has used time series data from 1972–2021, and the result of the unit root test indicates an autoregressive distributed lag (ARDL) model because of stationarity at levels I(0) and I(1). The cointegration test confirms the cointegration among the variables: in the short run and long run, capital formation and technological advancement have a positive impact on FDI; on the other hand, money circulation discourages FDI because of its negative coefficient. The speed of adjustment (CointEq(−1)) is 0.28%, which indicates the estimation moves toward an equilibrium condition from a disequilibrium condition. Causality shows there is bidirectional causality between FDI and money circulation, unidirectional causality between technology and FDI, bidirectional causality between money circulation and capital formation, and unidirectional causality between technology and capital formation. This finding suggests that capital formation should be a great consideration, and technology is also required to expand FDI volume. Further study would include considering other macroeconomic variables such as labor, human resources, and energy issues. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2279351 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2279351 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2279351 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2268790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Author-Name: Joseph Kokouvi Djafon Author-X-Name-First: Joseph Kokouvi Author-X-Name-Last: Djafon Author-Name: Mawuli Kodjovi Couchoro Author-X-Name-First: Mawuli Kodjovi Author-X-Name-Last: Couchoro Author-Name: Yao Mensah Kounetsron Author-X-Name-First: Yao Mensah Author-X-Name-Last: Kounetsron Author-Name: Akoété Ega Agbodji Author-X-Name-First: Akoété Ega Author-X-Name-Last: Agbodji Title: Technological change, the productivity of formal and informal businesses, and the impact on labor market Abstract: Digital transformation, both omnipresent and influential, has deeply impacted various sectors with a particular focus on the economy. The introduction and adoption of tools that facilitate technological changes and online business practices have emerged as game changers. They have endowed corporations with enhanced internal agility and improved employee communications. Online business, with its vast potential, is becoming increasingly crucial in developing countries, where Internet accessibility is steadily growing. This study explores the impact of e-commerce on company productivity by considering both formal and informal sectors. It leverages data from the 2018 General Business Census of Togo. By applying endogenous switching regression and smoothed instrumental variable quantile regression tools, this study demonstrates that online businesses can significantly increase productivity, particularly in firms within the informal sector. However, this finding highlights the potential risk of job loss. This study concludes that support strategies are essential for promoting the integration of online companies, increasing productivity, and protecting jobs. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2268790 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2268790 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230013_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Rowland Seyram Koku Dabi Author-X-Name-First: Rowland Seyram Koku Author-X-Name-Last: Dabi Author-Name:   Nugraha Author-X-Name-First:   Author-X-Name-Last: Nugraha Author-Name:   Disman Author-X-Name-First:   Author-X-Name-Last: Disman Author-Name: Maya Sari Author-X-Name-First: Maya Author-X-Name-Last: Sari Title: Capital structure, financial performance and sustainability of Microfinance Institutions (MFIs) in Ghana Abstract: The study examines the effect of capital structure on financial performance and sustainability of Microfinance Institutions in Ghana. We investigate the role of debt-to-equity ratio, equity-to-asset ratio, and deposit-to-loan ratio in guaranteeing financial performance and sustainability. We implement multiple regression methods to investigate the relationship between the observed performance indicators and a set of explanatory variables. The empirical analysis involves 51 Ghanaian MFIs reporting on the MIX market. We find strong empirical support for the notion that asset size is significantly and positively related to asset returns, self-sufficiency, and financial sustainability. Also, capital structure variables are strongly associated with profitability but exert insignificant impacts on operational self-sufficiency and financial instability of MFIs. The macroeconomic environment also matters to the profitability, self-sufficiency, and sustainability of MFIs. The ability of the MFIs to improve security and lessen the risk is critical in ensuring profit efficiency and self-sufficiency. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230013 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230013 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2263305_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Bulat Mukhamediyev Author-X-Name-First: Bulat Author-X-Name-Last: Mukhamediyev Author-Name: Laila Bimendiyeva Author-X-Name-First: Laila Author-X-Name-Last: Bimendiyeva Author-Name: Galiya Dauliyeva Author-X-Name-First: Galiya Author-X-Name-Last: Dauliyeva Author-Name: Zhansaya Temerbulatova Author-X-Name-First: Zhansaya Author-X-Name-Last: Temerbulatova Title: Unrest in Kazakhstan: Economic background and causes Abstract: The article studies the economic background and reasons for the protest actions of the population on the example of major riots in the regions of Kazakhstan in early 2022. The theory of relative deprivation explains the occurrence of unrest by the growth of social tension in groups of the population who are dissatisfied with living conditions. According to the authors, the causes of the unrest were economic factors. There are many studies on political, inter-ethnic, inter-religious, and other factors of protest actions, but not enough research on the economic factors of urban unrest. The study aims to identify the economic causes of the outbreak of violence in the country’s regions. The research methodology was based on comparative statistical analysis and building a probit model based on panel data. We have established that the growth of the subsistence minimum, the increase in the proportion of the population with incomes below the subsistence minimum, and, especially, the depth of poverty and the acuity of poverty are reasons for social tension, which, after the small trigger, turned into large-scale urban unrest. Moreover, neither income inequality nor rising unemployment was a significant factor in the protest actions. The results indicate the need for the authorities to monitor the socio-economic indicators of the regions and take measures to prevent their significant deterioration, especially the depth and acuity of poverty. A similar empirical approach can be applied to analyzing the economic causes of unrest in regions of other countries. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2263305 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2263305 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2263305 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2268758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Huynh Ngoc Chuong Author-X-Name-First: Huynh Ngoc Author-X-Name-Last: Chuong Author-Name: Nguyen Chi Hai Author-X-Name-First: Nguyen Author-X-Name-Last: Chi Hai Title: Measuring household social capital in rural Vietnam using MIMIC approach Abstract: The concept of social capital has gained significant attention in recent years due to its potential for improving individual and collective well-being, and for its significance in shaping social, economic, and political structures. This study aims to measure the social capital of rural Vietnam households with data from 2008 to 2016. The authors identified different aspects of household social capital as well as social capital proxies from livelihood papers. This paper applied the fundamental theories (the resource theories and network theories to measure the household social capital in Vietnam. We propose to apply the MIMIC model (multiple indicator multiple cause model) to construct the household social capital along with integrating the indicators in both views of household social capital. Results highlight the importance of understanding the multifaceted nature of social capital, which includes different forms of social networks, social participation, and social costs. The findings suggest that participation in diverse organizations plays a vital role in the formation of household social capital. In addition, the MIMIC model shows that participation in social networks is the most important factor in the formation of household social capital. Therefore, we give some implications for the measurement as well as characteristics in the social capital of households in Vietnam. The study contributes to the existing literature on social capital by emphasizing the importance of understanding the different aspects of social capital and how they interact with each other in shaping the livelihoods of rural Vietnamese households. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2268758 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2268758 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2231662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Daniel Page Author-X-Name-First: Daniel Author-X-Name-Last: Page Author-Name: David McClelland Author-X-Name-First: David Author-X-Name-Last: McClelland Author-Name: Christo Auret Author-X-Name-First: Christo Author-X-Name-Last: Auret Title: Pure quantile portfolios on the Johannesburg stock exchange Abstract: Rules-based portfolio sorts are commonplace for the evaluation of style anomalies. An unfortunate consequence of constructing portfolios on a target style is the unintended loading on non-target factors. A plausible approach is the application of optimisation to maintain target factor loading while minimising non-target factor exposures. We test this methodology on an emerging market bourse, the Johannesburg Stock Exchange, via quintile portfolios sorted on momentum, value and size. We find that value and momentum benefit most from optimisation in terms of nominal and risk-adjusted performance. From an emerging market perspective, we show that optimisation is a viable alternative when independent sorts are infeasible. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2231662 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2231662 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2239629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muuz Hadush Author-X-Name-First: Muuz Author-X-Name-Last: Hadush Author-Name: Kidanemariam Gebregziabher Author-X-Name-First: Kidanemariam Author-X-Name-Last: Gebregziabher Author-Name: Sisay Biruk Author-X-Name-First: Sisay Author-X-Name-Last: Biruk Title: Determinants of economic growth in East African countries: A dynamic panel model approach Abstract: The purpose of this study is to analyze the determinant of economic growth in the region of East African countries from 2002 to 2018. In order to investigate empirically the key determinants of economic growth in East African countries, this study used a dynamic panel model. To improve efficiency, Generalized Moments Method (GMM) estimators are used. Based on panel data from the East African countries during the 2002–2018 period, this study, therefore, estimated the determinants of economic growth in the region. The result suggests that government expense, government revenue, volume of imports and exports of goods and services significantly contribute to the economic growth of the countries. However, the consumer price index, current account balance, gross government debt, and foreign direct investment lead to negative economic growth. The paper has three policy implications; first, promoting open trade and ensuring peace and stability in the region is a paramount policy to enhance the economic growth of the region. East African Countries should move forward in creating stability regionally and internally within the countries. Second, countries in East Africa are recommended to strengthen and sustain their policies on government expenses, government revenue and revise their policies on government debt, inflation and current account balance. Major reforms are required in foreign direct investment and general government debt within the region. Third, to address obstacles in trade, climate change and the tax collection system, political and economic integration is fundamental to the region and to making the region competitive in the international trade arena. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2239629 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2239629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2239629 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2273604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Suleiman O. Mamman Author-X-Name-First: Suleiman O. Author-X-Name-Last: Mamman Author-Name: Kazi Sohag Author-X-Name-First: Kazi Author-X-Name-Last: Sohag Author-Name: Attahir B. Abubakar Author-X-Name-First: Attahir B. Author-X-Name-Last: Abubakar Title: Inclusive growth in Africa: Do fiscal measures matter? Abstract: In recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2273604 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2273604 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2244769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hai-Tuan Nguyen Author-X-Name-First: Hai-Tuan Author-X-Name-Last: Nguyen Title: Does institutional quality reduce the impact of market concentration on bank stability? Evidence of developing countries Abstract: This study investigates how market concentration (MC) and institutional quality (IQ) influence bank stability in developing nations, focusing on 80 banks in the ASEAN 4 countries (Indonesia, the Philippines, Malaysia, and Thailand) from 2006 to 2019. The study utilises the generalised method of moments technique to address concerns related to autocorrelation and endogeneity. The findings of the research are noteworthy. Firstly, a positive correlation between bank stability and market concentration is established, supporting the concentration-stability hypothesis. Banks operating in highly concentrated markets tend to exhibit higher stability compared to those in less concentrated markets. However, negative coefficients on square market concentration suggest a potential inverted U-shaped relationship, indicating that market concentration enhances bank stability up to a certain threshold. Secondly, the study highlights the significant impact of institutional quality on bank stability within the ASEAN 4 region. Furthermore, the study found that institutional quality might mitigate the influence of market concentration on bank stability. These results underscore the importance of a well-defined strategy for bank managers and bankers. When market concentration reaches a specific threshold, optimal bank stability is observed, and higher institutional quality contributes to improved bank stability. This research pioneers examining the effects of banking system market concentration and institutional quality on the stability of ASEAN 4 banks. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2244769 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2244769 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Mukoki James Author-X-Name-First: Mukoki Author-X-Name-Last: James Author-Name: Hisali Eria Author-X-Name-First: Hisali Author-X-Name-Last: Eria Author-Name: Mukisa Ibrahim Author-X-Name-First: Mukisa Author-X-Name-Last: Ibrahim Title: Inter-sectoral linkages and economic growth in Uganda: A SAM-based multiplier model analysis Abstract: Sectors are the engines of economic growth in any economy making inter-sectoral linkages the most significant target for development practitioners and policymakers. This study examines and ascertains the magnitude of production and consumption inter-sectoral linkages in Uganda’s economy. Secondary data from 2009/10 and 2016/17 Uganda Social Accounting Matrices (SAMs) is analyzed based on the multiplier model. A buttress of robust checks including a Vector Error Correction Model (VECM) is adopted for validation purposes using a longer time series from 1980 to 2020. The study found that a one million income injection across sectors has a larger multiplier effect (in terms of output, GDP, income, and consumption) than the service sector followed by agriculture and then the industrial sector. Despite the higher multiplier effects of the services sector, its contribution to employment is limited. A large amount of labor is trapped in the low-paying subsistence agricultural sector. Therefore, the government should implement policies that supplement rapid services sector growth with strategies that attract and utilize excess labor in the agricultural sector. Results also indicate that the services sector prematurely emerged as the driver of economic growth before the economy was fully industrialized. Government should formulate industrial sector catch-up policies to rebalance its development agenda. To accomplish this, proportionately more funding should be allocated to the industrial sector. Lastly, sectoral multiplier effects projections and forecasts should be incorporated into the National Development Plans, Budgeting Frameworks, and forecasts. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243167 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243167 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2275960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kindineh Sisay Author-X-Name-First: Kindineh Author-X-Name-Last: Sisay Title: Rural households saving status and its determinant factors: Insight from southwest region of Ethiopia Abstract: Especially for developing countries like Ethiopia, saving is more significant to build capital required to generate income, smooth domestic cash requirements, and allow the ease of consumption during scarcity. However, rural saving at the household level was not substantially investigated in Ethiopia in general and in the study area in particular. The current study, therefore, assessed rural households’ saving status and its determinant factors in Gimbo district, south west region of Ethiopia. Out of the entire sample households surveyed, more than half (52.35%) of the surveyed households were non-saver. This is to mean that a lesser proportion of the sampled households were saving their income left from food and non-food spending or other expenses at formal financial institutions. When we look at the intensity of saving, the whole sampled households saved 4,788.15 ETB on average. As both logit and multiple linear regression model results showed, the education level of the household head, distance from financial institutions, farm income, financial literacy, and participation in non-farm activities were found to affect both decision to save and intensity of saving significantly and positively except distance from financial institutions, which is negatively correlated with both. Therefore, to overcome negative effects of distance from financial institutions, the study recommend the expansion of financial institutions up to kebele levels as much as possible. Moreover, policymakers and other concerned bodies responsible for the enhancement of rural private saving should have to amend rural households’ farm income, education, financial literacy, and participation in non-farm activities. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2275960 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2275960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2275960 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2271658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: John Kwaku Mensah Mawutor Author-X-Name-First: John Author-X-Name-Last: Kwaku Mensah Mawutor Author-Name: Isaac Boadi Author-X-Name-First: Isaac Author-X-Name-Last: Boadi Author-Name: Samuel Antwi Author-X-Name-First: Samuel Author-X-Name-Last: Antwi Author-Name: Anthony Buawolor Tetteh Author-X-Name-First: Anthony Author-X-Name-Last: Buawolor Tetteh Title: Improving banks’ profitability through income diversification and intellectual capital: The sub-Saharan Africa perspective Abstract: This study explores the impact of revenue diversification and intellectual capital on the performance of sub-Saharan African banks. The study applied a panel regression technique to a data set containing information on 80 banks from 21 countries from 2000 to 2020. Secondary data was collected from the unconsolidated financial statements of banks in the Bank scope database, WDI database, and Refinitiv database. The study utilized the two-step system GMM and the dynamic panel threshold regression estimation methods to evaluate the hypotheses. The study revealed that income diversification has a negative and significant impact on the profitability of banks in Sub-Saharan Africa. The study also indicated that value-added intellectual coefficient (VAIC), human capital efficiency (HCE), and structural capital efficiency (SCE) have a positive and significant effect on the performance of banks; however, capital employed efficiency (CEE) has a negative and significant impact on banks’ profitability. The study also revealed that VAIC and HCE positively and significantly moderate the relationship between income diversification and the profitability of banks. SCE has a positive and insignificant moderating effect on the relationship between income diversification and bank performance. The study also revealed that CEE negatively and significantly mediates the relationship between income diversification and banks’ profitability. The threshold results also provide evidence that VAIC and HCE positively affect profitability; however, VAIC and HCE affect profitability above the threshold value. We also found evidence of a threshold effect of SCE below the threshold and a negative effect above the threshold value. The study also revealed that CEE negatively affects banks’ profitability at all levels. The detrimental impact of income diversification on the performance of sub-Saharan banks should be a concern for bank managers. The findings are crucial to comprehending the banking industry developments in Sub-Saharan Africa (SSA) from 2000 to 2020. The results provide important insights into the significance of the development of intellectual capital for the diversification of banking activities in SSA. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2271658 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2271658 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2271658 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2241228_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Sulemana Mumuni Author-X-Name-First: Sulemana Author-X-Name-Last: Mumuni Author-Name: Adamu Braimah Abille Author-X-Name-First: Adamu Braimah Author-X-Name-Last: Abille Title: Do trade liberalization and external debt offset income inequality? New evidence from selected African countries Abstract: Data from the World Bank shows that in the 21st century, over 100 million Africans have become poor and about 43% of the African population is extremely poor. Notwithstanding, African governments have over the years liberalized their economies through a low tariff regime, in addition to external debt financing of major projects and social intervention programs. However, no study has explored the nexus between trade liberalization, external debt, and income inequality in Africa. Therefore, this study examines the impact of trade liberalization and external debt on income inequality using the Driscoll and Kraay augmented fixed and random effects models on data from 2000 to 2018 for 30 African countries. The findings reveal that, while external debt worsens income inequality, win-win trade liberalization policies could act as instruments for poverty alleviation and income inequality reduction in Africa. The results further show that growth in per capita income exerts a widening effect on income inequality in Africa, implying that income is concentrated in the hands of only a few as the economies grow. The study, therefore, calls for strengthening member countries’ commitments to the African Continental Free Trade Area (AfCFTA), cutting down on external debt financing of major developments projects, rolling out more poverty alleviation programs, and enforcing proper regulatory standards to curb illicit financial flows and repatriation of profits by foreign firms. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2241228 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241228 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2251272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hanh Hong Le Author-X-Name-First: Hanh Hong Author-X-Name-Last: Le Author-Name: Jean- Laurent Viviani Author-X-Name-First: Jean- Laurent Author-X-Name-Last: Viviani Author-Name: Fitriya Fauzi Author-X-Name-First: Fitriya Author-X-Name-Last: Fauzi Title: Why do banks fail? An investigation via text mining Abstract: This study aims to investigate the material loss review published by the Federal Deposit Insurance Corporation (FDIC) on 98 failed banks from 2008 to 2015. The text mining techniques via machine learning, i.e. bag of words, document clustering, and topic modeling, are employed for the investigation. The pre-processing step of text cleaning is first performed prior to the analysis. In comparison with traditional methods using financial ratios, our study generates actionable insights extracted from semi-structured textual data, i.e. the FDIC’s reports. Our text analytics suggests that to prevent from being a failure; banks should beware of loans, board management, supervisory process, the concentration of acquisition, development, and construction (ADC), and commercial real estate (CRE). In addition, the primary reasons that US banks went failure from 2008 to 2015 are explained by two primary topics, i.e. loan and management. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2251272 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251272 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230727_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Thuy Cao Author-X-Name-First: Thuy Author-X-Name-Last: Cao Author-Name: Hoang Nguyen Author-X-Name-First: Hoang Author-X-Name-Last: Nguyen Author-Name: Khuong Nguyen Author-X-Name-First: Khuong Author-X-Name-Last: Nguyen Author-Name: Liem Nguyen Author-X-Name-First: Liem Author-X-Name-Last: Nguyen Title: Information asymmetry on the link between corporate social responsibility and stock price crash risk Abstract: Theoretically, corporate social responsibility (CSR) can have both positive and negative effects on stock price crash risk, and the empirical evidence is mixed. CSR can be a useful signal of better informational quality and acts as an effective corporate governance mechanism, both of which serve important roles in emerging markets. Using a sample of 225 listed firms in Vietnam over the period 2014–2019, we examine the impact of corporate social responsibility disclosure (CSRD) on stock price crash risk, considering the moderating effect of information asymmetry. The research shows that CSRD lowers the risk of a stock price crash. Importantly, this is the first study to investigate the moderating role of information asymmetry in the relationship between CSR disclosure and stock price crash risk. This is in line with the view that CSRD decreases information asymmetry, thus lowering the likelihood of stock price crash risk. Based on the results, we provide important implications for corporate governance and investment in the context of developing countries. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230727 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230727 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Berliana Anggun Septiani Author-X-Name-First: Berliana Anggun Author-X-Name-Last: Septiani Author-Name: Maman Setiawan Author-X-Name-First: Maman Author-X-Name-Last: Setiawan Title: The relationship between technical efficiency, firm growth and market structure in the Indonesian palm oil industry Abstract: This research investigates the relationship between efficiency and firm growth as well as the relationship between firm growth and market structure (CR4) to evaluate whether the quiet-life (QL) and/or efficient structure (ES) hypothesis applies in the Indonesian palm oil industry. This study uses large and medium industry survey data sourced from the Indonesian Bureau of Central Statistics (BPS) for the period from 1990 to 2017. The efficiency score is calculated using data envelopment analysis (DEA) using a bootstrapping approach. The two-step generalized method of moments (GMM) and panel vector auto regression (PVAR) are used to test the two hypotheses. The results show that technical efficiency can increase a firm’s market share, market concentration, and market power. These results support the ES hypothesis. This research also finds that market structure (CR4) has an impact on firm efficiency, providing evidence supporting the QL hypothesis. These results indicate that the ES and QL hypotheses apply in Indonesia during a business cycle that needs to be considered by policymakers. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243784 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243784 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2268440_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Raphael Kolade Ayeni Author-X-Name-First: Raphael Kolade Author-X-Name-Last: Ayeni Author-Name: Kemi Funlayo Akeju Author-X-Name-First: Kemi Funlayo Author-X-Name-Last: Akeju Title: Human capital, capital goods import and economic growth in West Africa Abstract: This research paper investigates interactions of human capital, capital goods import and economic growth with a panel of 13 West African countries comprises of 7 low income and 6 low-middle income countries over the period of 1980–2018. The study adopts the Panel Auto-Regressive Distributed Lag (ARDL) cointegration techniques to establish a short and long-run relationship existing among the variables. Panel ARDL (Fixed effect) result revealed that the returns to equipment investment are moderately high on the average. Findings do not support the hypothesis that human capital makes production inputs more effective and helps countries gain from equipment investment and other imported investment for all the countries. This is due to inadequate knowhow and skill arising from the low levels of human capital in these countries. Determining the threshold of human capital development at which countries benefit from equipment investment, findings indicates that countries of the low-middle Income that exhibit a comparatively higher human capital (1.45 on the average) benefited more from imported capital stock and other importations than countries of the low income with very low human capital (1.27 on the average). Thus, we conclude that investment in human capital, innovation, and knowledge are significant contributors to economic growth and should be the priority of developing economies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2268440 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2268440 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Jonas Tia Author-X-Name-First: Jonas Author-X-Name-Last: Tia Author-Name: Naasegnibe Kuunibe Author-X-Name-First: Naasegnibe Author-X-Name-Last: Kuunibe Author-Name: Paul Kwame Nkegbe Author-X-Name-First: Paul Kwame Author-X-Name-Last: Nkegbe Title: Drivers of financial inclusion in Ghana: Evidence from microentrepreneurs in the Wa Municipality of the Upper West Region Abstract: Globally Financial inclusion provides an opportunity to promote equal access to resources for all. One of the crucial catalysts for microenterprises development is access to the financial market. However, the growth of many microenterprises has been truncated in Ghana due to limited access to financial opportunities. Despite this challenge, little is known about the drivers of financial inclusion in Wa Municipality of the Upper West Region of Ghana. This paper examines the drivers of financial inclusion of microentrepreneurs in the Wa Municipality of the Upper West Region of Ghana. Using a close ended questionnaire, this study employed an exploratory survey design to collect data from 200 engaged in trading, manufacturing, and services. The respondents were sampled using a simple random sampling technique. Given that the outcome variable is binary, the study used a binary probit regression model for the data analysis. The results predicted that religion, awareness of loan services, business registration, and preparation of financial statements drive financial inclusion in Wa Municipality. From the results, the study recommends that financial service providers should consider social networks, entrepreneurial practice, gender and religion as sensitive drivers of financial inclusion. In addition, financial education should be intensified as knowledge of the available financial products is a key driver of financial inclusion in the Municipality. While this study has contributed to the body of literature on financial inclusion in Ghana, further research is necessary to identify consumer financial needs to meet clients’ expectations. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267854 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267854 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223416_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Thomas Habanabakize Author-X-Name-First: Thomas Author-X-Name-Last: Habanabakize Author-Name: Mulatu Fekadu Zerihun Author-X-Name-First: Mulatu Fekadu Author-X-Name-Last: Zerihun Title: The criticality of financial intermediation on the South African Agro-Industrialization Abstract: Access to finance is one of the factors influencing economic activities. The current study aimed at determining the role of finance in the South African agro-industrialization relationship. To achieve the study objective, bounds testing, the autoregressive distributed lag (ARDL) and error correction approaches were applied on quarterly time series data spanning between the first quarter of 1994 and the last quarter of 2021. Additionally, an interaction term was included to assist the aforementioned models in determining linkage between agriculture and industrial outputs through farmer’s access to finance. Findings revealed that agricultural output and finance are valid forecasters of the industrialization behaviour in the long-run. Access to finance leads to industrial growth while agricultural output growth causes a decline in the industrialization. Nonetheless, aggregate growth of both financial access and agricultural output are associated with industrial output in the short-run. Grounded of the study findings, this study concludes that financial access influence both agriculture and industrial output. Consequently, improving famers’ financial access through financial facilities, financial intermediaries and government subsidies could be a worthwhile strategy or policy to enhance a country’s industrialization. As implication of the study, obtained finding can assist in linking effectiveness of primary, secondary and tertiary economic sectors in South Africa. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2223416 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2223416 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2244864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Abreham Adera Author-X-Name-First: Abreham Author-X-Name-Last: Adera Author-Name: Lamessa T. Abdisa Author-X-Name-First: Lamessa T. Author-X-Name-Last: Abdisa Title: Financial inclusion and women’s economic empowerment: Evidence from Ethiopia Abstract: This study examines the relationship between financial inclusion and women’s economic empowerment in the Ethiopian context. Scholars and development agents have long argued for the importance of access to financial products and services in achieving equitable economic growth and reducing poverty, particularly focusing on women. However, there is a limited understanding of how financial inclusion specifically impacts women’s economic empowerment in Ethiopia, and little evidence regarding the determinants of women’s financial inclusion within the country. This study attempts to address these research gaps. The empirical methods employed in this study include endogenous switching regression and instrumental variable methods. The data used in this study is from the Women’s module of the Ethiopian Demographic and Health Survey (DHS). The findings reveal a positive and statistically significant impact of financial inclusion on women’s economic empowerment in Ethiopia, indicating that greater access to financial services contributes to improved economic outcomes for women. These findings underscore the importance of collaboration between financial institutions, development agents, and policymakers to implement effective financial inclusion initiatives tailored to the Ethiopian context. Additionally, rigorous evaluation of these interventions is crucial to understand their specific effects and to ensure their successful implementation. By focusing on the Ethiopian case, this study contributes to our understanding of the relationship between financial inclusion and women’s economic empowerment in the country. The findings highlight the significance of prioritizing financial inclusion strategies in Ethiopia to advance gender equality, foster economic growth, and alleviate poverty. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2244864 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2244864 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2276364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Bernard Bawuah Author-X-Name-First: Bernard Author-X-Name-Last: Bawuah Author-Name: Samuel Agyei-Ampomah Author-X-Name-First: Samuel Author-X-Name-Last: Agyei-Ampomah Author-Name: Anthony Owusu-Ansah Author-X-Name-First: Anthony Author-X-Name-Last: Owusu-Ansah Author-Name: Francis Atsu Author-X-Name-First: Francis Author-X-Name-Last: Atsu Title: Currency reform, currency biases and Ghana’s forex market fluctuations: Beyond the macroeconomic fundamentals Abstract: Redenomination of currency has become a common phenomenon in recent past among emerging and transitional economies. In 2007, Ghana became one of the economies to redenominate in recent past. This currency policy adaptation has the potential of triggering certain individual behavioral biases on the forex market. This study provides evidence that currency biases that accompanied Ghana’s currency reform adaptation in 2007 contribute to its forex market price (exchange rate) fluctuations. Using data from 1980 to 2018 with some estimated biases and some selected macroeconomic fundamentals as covariates in an ANCOVA (Analysis of Covariance) model, the study revealed that estimated biases which were induced as a result of currency reform adaptation impact positively and significantly on Ghana’s forex market prices. It is therefore recommended that policy makers, political leaders and stakeholders begin to look at human factors that may exist in the forex market and incorporate this information into future plans in addressing issues relating to forex market fluctuations. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2276364 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2276364 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yohannes Mekonnen Tesema Author-X-Name-First: Yohannes Mekonnen Author-X-Name-Last: Tesema Author-Name: Paulos Asrat Author-X-Name-First: Paulos Author-X-Name-Last: Asrat Author-Name: Dawit Tsegaye Sisay Author-X-Name-First: Dawit Tsegaye Author-X-Name-Last: Sisay Title: Factors affecting farmers’ hiring decisions on agricultural mechanization services: A case study in Ethiopia Abstract: Using appropriate agricultural mechanization services is critical to increasing agricultural productivity and ensuring food security. A large portion of Ethiopian farmers have no access to agricultural mechanization services, including tractors, combine harvesters, and threshers. There are several factors responsible for the limited use of agricultural mechanization services in Ethiopia. The objective of this study was to investigate the key factors that determine smallholder farmers’ decisions in hiring tractor and combine harvester services in the Debre Elias district of the Amhara region of Ethiopia. A multistage sampling technique was used to collect data from 133 respondents. Data collection techniques included structured interviews and focus group discussions. Descriptive statistics and a binary logistic model were employed to analyze the data. The findings showed that promotion and support from different organizations, including the government and development partners, are the main factors that influence farmers’ decisions to hire mechanization services. The results also revealed that economically active family labor, off-farm income, number of oxen, goal of farming, and institutional influence are the main factors that significantly influence farmers’ decisions about hiring tractor services in the study area. Harvesting labor costs and weather uncertainty were discovered to be the factors that positively and significantly influenced the farmers’ hiring decisions for combine harvester services. It is important to create awareness among farmers about agricultural mechanization services. Systematic support for both private machinery service providers and cooperative unions is needed to improve mechanization services for farmers in the area. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2225328 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2225328 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2237715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kwadwo Boateng Prempeh Author-X-Name-First: Kwadwo Boateng Author-X-Name-Last: Prempeh Author-Name: Christian Kyeremeh Author-X-Name-First: Christian Author-X-Name-Last: Kyeremeh Author-Name: Felix Kwabena Danso Author-X-Name-First: Felix Kwabena Author-X-Name-Last: Danso Title: The link between remittance inflows and financial development in Ghana: Substitutes or complements? Abstract: This empirical paper explores the link between remittance inflows and financial development in Ghana from 1980–2019. Empirical analyses are carried out using the ARDL VECM, DOLS, CCR and FMOLS techniques. Furthermore, the IRF and forecast FEVD analyses were employed to comprehend better financial development’s response to shocks to remittance inflows and other macroeconomic factors. The results demonstrate that the variables are cointegrated, and remittance was found to be beneficial to financial development in both the short and long run. Furthermore, from the IRF analysis, positive shocks to remittance have a favourable influence on financial development. The FEVD investigation suggests that shocks to migrant remittance accounted for almost 32% of the overall variations in financial development. The implication is that, from a policy perspective, well-structured strategies should be devised and executed to promote higher remittance flows via official conduits. This will stimulate economic growth, financial development, and other monetary benefits of remittance inflows to the nation. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2237715 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237715 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2237715 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Sylvester N. Ayambila Author-X-Name-First: Sylvester N. Author-X-Name-Last: Ayambila Title: Determinants of micro and small enterprises financial performance in the non-farm sector of Ghana: A quantile regression approach Abstract: This study estimates the factors influencing micro and small enterprise financial performance in the non-farm sector of Ghana. Data was sourced from Ghana ECG/ISSER Socio-Economic Panel Survey in 2010. The study is underpinned by the resource-based view theory of firm performance. Ordinary least squares were used to determine the factors affecting financial performance and quantile regression used to analyse the variation of financial performance among enterprises. Many variables including; gender of the enterprise owner, enterprise owner’s age, technical education, enterprise years of operation, enterprise location, enterprise sub-sector, number of casual, hired labour, and enterprise value of assets significantly influenced enterprise financial performance. Enterprise resources dominated industry and sector characteristics in shaping enterprise financial performance. Inter-quantile regression results indicate that gender variable was statistically significant across six inter-quantiles emphasizing the importance of gender. Enterprises in the services sub-sector were less profitable relative to those from the manufacturing, trade and restaurant sub-sectors. The results from the quantile regressions dismiss the argument that a joint set of factors influence the financial performance of enterprises, and that those factors do not vary irrespective of whether the enterprise is performing well or not. Technical education should be promoted in order to improve enterprise performance. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2225331 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2225331 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2244860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Thuy T. Dang Author-X-Name-First: Thuy T. Author-X-Name-Last: Dang Author-Name: Trang NT Ho Author-X-Name-First: Trang NT Author-X-Name-Last: Ho Author-Name: Duc Nguyen Nguyen Author-X-Name-First: Duc Nguyen Author-X-Name-Last: Nguyen Title: Board gender diversity and financial stability: Evidence from microfinance institutions Abstract: The effects of board gender diversity (BGD) on financial stability of financial institutions have long been an important topic, creating a rich strand of literature that focuses extensively on banks. Meanwhile, little is known about the implications of BGD on risk in microfinance institutions (MFI). This study aims to fill this gap. Using a data sample retrieved from the MIX Market database spanning the 2009–2018 period and the random-effects estimator, we find that the proportion of female directors on the board is positively associated with financial stability of MFIs measured by the Z-score. The result is robust when using alternative measures of financial stability and BGD, and alternative estimation techniques. In addition, we document a negative relationship between BGD and risk-taking behavior of MFIs. Further, the research result favors the critical mass theory rather than tokenism. Lastly, we find that BGD links with financial stability in a monotonic instead of non-monotonic manner. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2244860 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2244860 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2276556_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Xin Yang Author-X-Name-First: Xin Author-X-Name-Last: Yang Author-Name: Ahmad Fahmi Sheikh Hassan Author-X-Name-First: Ahmad Fahmi Author-X-Name-Last: Sheikh Hassan Author-Name: Wei Theng Lau Author-X-Name-First: Wei Theng Author-X-Name-Last: Lau Author-Name: Nazrul Hisyam Ab Razak Author-X-Name-First: Nazrul Hisyam Author-X-Name-Last: Ab Razak Title: The discordance of governance performance from environmental and social performance on idiosyncratic risk: The effect of board composition Abstract: In recent years, the nexus between environmental, social, and governance (ESG) factors and financial performance has been a focal point of academic discourse. While much of the existing literature emphasizes the potential positive correlations between ESG performance and financial gains, ambiguities persist, especially concerning the governance pillar. Against this backdrop, our study delves into the relationship between ESG performance and idiosyncratic volatility, utilizing a comprehensive panel dataset of U.S. listed companies spanning 2005 to 2019. Through analytical methodologies like the two-stage least square method with instrumental variables (2SLS-IV) and the dynamic Generalised Method of Moments (GMM), we unveil an intriguing discovery: governance performance does not significantly correlate with idiosyncratic volatility, whereas environmental and social performance demonstrate a strong negative linkage. This deviation from conventional wisdom underscores our study’s unique contributions. We shed light on the governance factor’s discordance from its environmental and social counterparts in shaping firm-specific risk, introduce the emerging concept of board composition’s moderating effects on the ESG-volatility relationship, and present a holistic perspective by covering an extensive array of U.S. sectors. Our findings carry profound implications for the future trajectory of sustainable investing and corporate governance practices. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2276556 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276556 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2276556 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2228096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yakubu Awudu Sare Author-X-Name-First: Yakubu Awudu Author-X-Name-Last: Sare Author-Name: Andrew Osei Agyemang Author-X-Name-First: Andrew Osei Author-X-Name-Last: Agyemang Author-Name: Emmanuel Caesar Ayamba Author-X-Name-First: Emmanuel Caesar Author-X-Name-Last: Ayamba Author-Name: Bernard Bawuah Author-X-Name-First: Bernard Author-X-Name-Last: Bawuah Author-Name: Akua Gyaawa Koranteng Author-X-Name-First: Akua Author-X-Name-Last: Gyaawa Koranteng Title: Insurance and sectorial growth nexus: Evidence from a developing economy Abstract: The insurance industry plays a substantive vitality in the growth of the economy. However, there is limited literature on the activities of the insurance industry and economic growth in Ghana. As one of the fastest-growing economies in sub-Saharan Africa before the global pandemic in 2020, there is a need to investigate the factors that influence the growth of the economy, of which insurance cannot be underscored. Moreover, proxies used to measure insurance for developing economies combined life insurance (LI) and non-life insurance (NLI) as one indicator. Also, none of the earlier studies considered the impact of insurance on sectorial growth in Ghana. Hence, this study relies on methodological innovation to fill in the literature gap. We employed time-series data from 1989 to 2022. From the Autoregressive Distributed Lag Analysis, an affirmative link was seen between LI and sectorial growth in both short-term and long-term period. With regards to the link between NLI and sectorial growth, except for service sector which revealed a positive but insignificant association, the other variables revealed an affirmative link between NLI and sectorial growth for both short term and long term. The findings affirm that NLI contributes significantly to the three sectors of the economy than LI. In addition, the findings confirm that the activities of insurance in the service sector of the economy are much more enormous than that of the industry and agricultural sectors. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2228096 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2228096 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2256127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Author-Name: Essowaba Egbeleo Author-X-Name-First: Essowaba Author-X-Name-Last: Egbeleo Author-Name: Richard Kuessi Author-X-Name-First: Richard Author-X-Name-Last: Kuessi Author-Name: Mawuli Kodjovi Couchoro Author-X-Name-First: Mawuli Kodjovi Author-X-Name-Last: Couchoro Author-Name: Akoété Ega Agbodji Author-X-Name-First: Akoété Ega Author-X-Name-Last: Agbodji Title: Regulation, institutional quality, and stability of the banking system in West African Economic and Monetary Union Abstract: This study investigates the relationship between prudential regulation and banking risk in the West African Economic and Monetary Union contingent on institutional quality. The empirical analysis employed panel data from 63 banks spanning 2006–2019. The key findings reveal that stringent banking regulations and supervision enhance banks’ stability. Capital regulations, activity restrictions, and supervisory authorities reduce the risk of bank insolvency. The results suggest that a favorable institutional climate promotes rigorous enforcement of regulatory standards and robust supervision, thereby amplifying their efficacy. Overall, this study concludes that prudential policies exhibit risk-mitigating effects in West African Economic and Monetary Union countries conditional on sound institutional frameworks. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2256127 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256127 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2256127 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2280349_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Guglielmo Maria Caporale Author-X-Name-First: Guglielmo Maria Author-X-Name-Last: Caporale Author-Name: Luis A. Gil-Alana Author-X-Name-First: Luis A. Author-X-Name-Last: Gil-Alana Author-Name: Amir Imeri Author-X-Name-First: Amir Author-X-Name-Last: Imeri Title: Tourism persistence in the Southeastern European countries: The impact of covid-19 Abstract: This paper examines tourism persistence in a group of Southeastern European (SEE) countries (Albania, Bosnia, Bulgaria, Croatia, Montenegro, North Macedonia, Serbia and Slovenia) by applying fractional integration methods to monthly data on foreign tourist arrivals and overnight stays. The results indicate that the COVID-19 pandemic has increased the degree of persistence of these series as measured by the fractional differencing parameter; specifically, it has removed the mean reversion property in some countries. In addition, it has reduced the importance of the seasonal component. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2280349 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2280349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2280349 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hideto Shigemoto Author-X-Name-First: Hideto Author-X-Name-Last: Shigemoto Author-Name: Takayuki Morimoto Author-X-Name-First: Takayuki Author-X-Name-Last: Morimoto Title: On the usefulness of dynamically spilled risk: An optimal portfolio allocation based on cross-sector information contagion Abstract: It is well known that the volatility spillover increases when a large economic shock occurs, and then the volatility spillover pattern in the market changes. Accordingly, many papers note that clarifying the time-varying pattern of volatility transmission in domestic and international markets is useful for investors and policymakers. This paper focuses on information contagion across various industrial sectors, investigates portfolio strategies based on the volatility spillovers, and aims to clarify whether an investment strategy based on volatility spillovers benefits investors. Regarding portfolio reallocation, as soon as we observe an increase or a decrease in the effect/timing of a volatility spillover, we obtain a smaller number of reallocations and a more informative portfolio. Our results compare our proposed method with periodic portfolios, for example, daily or annually, showing that our proposed method has larger returns and a greater Sharpe ratio than the others. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243200 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243200 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kholeka Mdingi Author-X-Name-First: Kholeka Author-X-Name-Last: Mdingi Author-Name: Sin-Yu Ho Author-X-Name-First: Sin-Yu Author-X-Name-Last: Ho Title: Income inequality and economic growth: An empirical investigation in South Africa Abstract: This study examines the relationship between income inequality and economic growth in South Africa for the period 1989 to 2018. The study is motivated by the high disparity in income inequality and stagnant economic growth that South Africa is experiencing. Using the autoregressive distributed lag (ARDL) bounds testing technique, we established a long-run relationship between economic growth and income inequality. The results revealed that income inequality has a negative impact on economic growth in the long run, and no effect in the short run. These results are robust with an estimation of the ARDL procedure that considers structural breaks. Therefore, policymakers should employ strategies that entail a double effect of growth in national income and consider the distribution of income in the long run. These policies include human capital accumulation, easily accessible education, and reduction in labour market dualism. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230027 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230027 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: John Kingsley Woode Author-X-Name-First: John Kingsley Author-X-Name-Last: Woode Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Anokye M. Adam Author-X-Name-First: Anokye M. Author-X-Name-Last: Adam Author-Name: Emmanuel Assifuah-Nunoo Author-X-Name-First: Emmanuel Author-X-Name-Last: Assifuah-Nunoo Author-Name: Audrey Foriwaa Adjei Author-X-Name-First: Audrey Foriwaa Author-X-Name-Last: Adjei Title: Nexus between cryptocurrencies and global uncertainty: A quantile regression approach Abstract: The study extends the literature on the nexus between cryptocurrency and uncertainty. This study proxied the cryptocurrencies and global uncertainty, respectively, with the seven most significant and variationally susceptible cryptos and the comprehensive world uncertainty in measuring the crypto-uncertainty nexus over the period (2015–2022) and further employing the quantile regression approach. The OLS model results point to a blend of both significant and insignificant relationship between global uncertainty and cryptocurrencies. These relationships were further examined in quantiles and further accounted for the impact of investor sentiments (VIX) and volatility (OVX), and the results were largely corroborated with the results from the conventional OLS, except for the Bitcoin, Litecoin, and Ripple markets. It was also discovered that the nexus changes across quantiles. The results revealed a blend of strong and weak hedges and safe havens among the selected cryptos against global uncertainty during normal and extreme market conditions. In the face of global turmoil, it was revealed that the average crypto market could serve as a safe haven. Also, the cryptos with an insignificant nexus with global uncertainty were found to be significantly affected by investor sentiment. These findings were further confirmed by the quantile-on-quantile and causality-in-quantile estimations. Given the intense precariousness and lack of hedge and haven capacities within the majority of the cryptocurrencies, it is pertinent for investors to consider the market in general as a means of diversifying their portfolios and reserve the hedge and haven option to the few markets that possess such luxury. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282809 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282809 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhamad Umar Mai Author-X-Name-First: Muhamad Umar Author-X-Name-Last: Mai Author-Name: Sudradjat Author-X-Name-First: Author-X-Name-Last: Sudradjat Author-Name: Etti Ernita Sembiring Author-X-Name-First: Etti Ernita Author-X-Name-Last: Sembiring Title: Board characteristics, state ownership, and corporate social responsibility: Evidence from Indonesian Islamic banks Abstract: This study examines the effect of the characteristics of the board of directors (BOD), the characteristics of the sharia supervisory board (SSB), and state ownership on CSR disclosure (CSRD) of Islamic commercial banks (ICBs) in Indonesia for the 2008–2021 period. The estimation results for the Generalized Least Squares model show that the presence of women in the BOD and SSB as well as the frequency of the two boards’ meetings play an important role in increasing CSRD. In addition, the interaction variables between age and tenure of the chairman of the SSB and state ownership have a positive effect on CSRD. This study contributes to the development of the corporate governance and Islamic corporate governance literature. In addition, it provides insight for practitioners regarding the main factors that influence the CSRD of ICBs in Indonesia. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266323 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266323 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2238462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Fabrice Nkurunziza Author-X-Name-First: Fabrice Author-X-Name-Last: Nkurunziza Author-Name: Richard Kabanda Author-X-Name-First: Richard Author-X-Name-Last: Kabanda Author-Name: Patrick McSharry Author-X-Name-First: Patrick Author-X-Name-Last: McSharry Title: Determinants of shock-coping mechanisms adoption and rural household consumption in Rwanda: A two-stage analysis considering both idiosyncratic and covariate shocks Abstract: This study investigates the features that contribute to shock-coping mechanisms in rural households in Rwanda, making a significant contribution by considering both idiosyncratic and covariate shocks. We employ a combination of multinomial logit regression (MLR) and two-level hierarchical linear modeling (2-HLM). The study focused on two main characteristics: household characteristics like employment and asset ownership, and shock-coping mechanisms. 4782 Rwandan rural households that experienced shocks were analyzed, exploring variations in factors by consumption level (low, medium, high). The findings of the study revealed that: (1) shock-coping mechanisms are driven by several factors like household characteristics, particularly household composition and employment status, as well as shocks related to covariate shocks, and (2) women spend noticeably less on food, non-food items, and overall expenses than those headed by men when they face covariate shocks. The study suggests that increasing more members employed in non-agricultural businesses and raising livestock, particularly goats could be a pro-low-consumption household strategy in response to shocks. Overall, the study’s findings provide valuable insights into the factors that contribute to effective shock-coping mechanisms in rural households and highlight the importance of considering household consumption levels when designing policy interventions. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2238462 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2238462 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2238462 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285142_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: King Carl Tornam Duho Author-X-Name-First: King Carl Tornam Author-X-Name-Last: Duho Title: Determinants of capital adequacy and voluntary capital buffer among microfinance institutions in an emerging market Abstract: This study examines the determinants of capital adequacy and voluntary capital buffers among microfinance institutions (MFIs). We apply the two-stage least squares (2SLS) with instrumental variables to account for endogeneity. Using quarterly panel data of 439 MFIs in Ghana covering the period 2015–2018, the study found that credit risk, income diversification, size, profitability, lending channel, and equity-to-asset ratio significantly affect capital adequacy. Also, the factors that drive voluntary capital buffers are income diversification, size and equity-to-asset ratio, but size and economic growth are insignificant when the upper limits of Basel III requirements are applied. Generally, the results are insignificant among non-deposit-taking (i.e. Tier 3 like Financial NGOs) MFIs. The findings show that non-performing loans negatively affect capital adequacy. Income diversification increases capital adequacy, especially among deposit-taking MFIs which have the regulatory liberty to engage in additional financial intermediation activities. Size has an inverted U-shape nexus with capital adequacy and there is evidence to suggest that for non-deposit-taking MFIs, size may not matter. Profitability increases capital adequacy while equity-to-asset ratio decreases capital adequacy, especially among deposit-taking MFIs. Additionally, lending channels negatively affect capital adequacy, especially among deposit-taking MFIs. Economic growth reduces capital adequacy but results are insignificant when we control for quarter fixed-effects. These results throw light on the application of the capital buffer theory in the context of MFIs which provides useful insights for practitioners, regulators, policymakers and academia. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285142 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285142 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285142 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hoa Nguyen Quynh Author-X-Name-First: Hoa Author-X-Name-Last: Nguyen Quynh Author-Name: Dung Ngo Quoc Author-X-Name-First: Dung Author-X-Name-Last: Ngo Quoc Author-Name: Toan Pham Ngoc Author-X-Name-First: Toan Author-X-Name-Last: Pham Ngoc Author-Name: Lien Nguyen Thi Thu Author-X-Name-First: Lien Author-X-Name-Last: Nguyen Thi Thu Title: Impact of the environmental protection tax on household welfare in Vietnam Abstract: In 2010, Vietnam promulgated the Law on Environmental Protection Tax, introducing a comprehensive package of environmental levies. However, few studies have examined the impacts of such an environmental tax within the country. This study aims to explore the effects of the environmental protection tax, leading to higher fuel prices, on household welfare in Vietnam. Using data from the 2020 Household Living Standard Survey and an input-output approach, this paper finds that the total impact is relatively modest. Interestingly, the results reveal a non-linear relationship between the total effects of rising fuel prices and per capita expenditure. Households in the top quintile are the most affected, followed by those in the third and bottom quintiles. Geographically, wealthier urban households and poorer rural households are primarily affected. These findings suggest that increasing the environmental protection tax on petroleum products could be an effective measure to nudge households’ and producers’ demands toward a greener economy. Simultaneously, mitigating any adverse impacts on household welfare is crucial, particularly for poor households in rural areas. Possible solutions include (i) direct and indirect financial subsidies; (ii) clear public communication about the rationale behind an environmental tax on petroleum; (iii) promoting efficient fuel use and launching campaigns to adjust households’ and producers’ demand for fuel products, encouraging a shift from fossil fuels to greener energy alternatives. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267726 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267726 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2241771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Fitri Kartiasih Author-X-Name-First: Fitri Author-X-Name-Last: Kartiasih Author-Name: Nachrowi Djalal Nachrowi Author-X-Name-First: Nachrowi Djalal Author-X-Name-Last: Nachrowi Author-Name: I Dewa Gede Karma Wisana Author-X-Name-First: I Dewa Gede Karma Author-X-Name-Last: Wisana Author-Name: Dwini Handayani Author-X-Name-First: Dwini Author-X-Name-Last: Handayani Title: Towards the quest to reduce income inequality in Indonesia: Is there a synergy between ICT and the informal sector? Abstract: The study assesses how ICT modulates the effect of informal sector on income inequality and investigates critical mass or threshold of ICT at which the diffusion of information with mobile cellular reduce income inequality. The ICT indicators are the regional ICT development index (RIDI), computer penetration and mobile cellular penetration. The empirical strategy used is Generalized Method of Moments (GMM). Covering panel data from 460 districts/cities in Indonesia for 2015–2019, the study shows that ICT measures of RIDI and computer penetration directly exacerbate income inequality, otherwise mobile cellular penetration directly reduces it. Enhancing ICT beyond certain thresholds is necessary for ICT to modulate informal sector to reduce income inequality. The corresponding ICT thresholds for the reduction of income inequality is 32.78 mobile cellular penetration per 100 people. The established thresholds make economic sense and can be feasibly implemented by policy makers to induce favourable effects on income inequality. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2241771 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241771 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2258704_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Godfred Aawaar Author-X-Name-First: Godfred Author-X-Name-Last: Aawaar Author-Name: Louis Logogye Author-X-Name-First: Louis Author-X-Name-Last: Logogye Author-Name: Daniel Domeher Author-X-Name-First: Daniel Author-X-Name-Last: Domeher Title: Equity return volatility in Africa’s stock markets: A dynamic panel approach Abstract: This study examines the determinants of time-varying return volatility of Africa’s equity markets using monthly indices of eight top African stock markets. The conditional variance is modelled as a proxy for Africa’s volatility indices using the best fitting model among SGARCH, EGARCH and GJR-GARCH. In a bid to account for the dynamic and persistent nature of volatility, the least squares dummy variable bias correction (LSDVC) model is employed. The study finds that volatility of African stock markets follows a dynamic process and is explained by past volatility, domestic exchange rates, Treasury bill rates, money supply, inflation rates, movements in world crude oil prices, volatility of the US and UK stock markets and COVID-19 shocks. The results are largely robust to sub-sample analysis. Further analysis: pre-, during and post-crisis periods (Global Financial Crisis (GFC) and COVID-19 pandemic) reveal that (1) African stock markets became sensitive to advanced market volatility in the period during the GFC and have remained sensitive in the post GFC period and (2) past domestic market return volatility, Treasury bill rates and exchange rates have been the main drivers of stock return volatility during the COVID-19 pandemic in Africa. Additionally, markets in North Africa are revealed as the only African markets immune to advanced market volatility spillovers. These markets may thus provide international diversification opportunities for portfolio managers. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2258704 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258704 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2258704 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2256192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: José Alejandro Fernández Fernández Author-X-Name-First: José Alejandro Author-X-Name-Last: Fernández Fernández Title: European Banking Union structures and dynamics Abstract: This article begins with an analysis of banking flows in the euro zone, through a complex network, from 2006 to 2020. This analysis allows us to observe the topology of the network through different phases of the business cycle. It is obtained that there is greater fragmentation in the network that increases in three stages, with turning points in crises. In turn, the topological structure is less random and presents more capitalized subnetworks with less risk. As for the nodes of the network, Germany gives up the position of centrality in favor of France. The determinants of the links in the network are analyzed with Machine Learning, obtaining as push and pull bank variables solvency and bank income structure, respectively, and productivity as economic variable. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2256192 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256192 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2256192 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2226903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Zuhrohtun Zuhrohtun Author-X-Name-First: Zuhrohtun Author-X-Name-Last: Zuhrohtun Author-Name: M. Zulkifli Salim Author-X-Name-First: M. Zulkifli Author-X-Name-Last: Salim Author-Name: Kunti Sunaryo Author-X-Name-First: Kunti Author-X-Name-Last: Sunaryo Author-Name: Sri Astuti Author-X-Name-First: Sri Author-X-Name-Last: Astuti Title: Returns co-movement and interconnectedness: Evidence from Indonesia banking system Abstract: In this paper, we explore how asset returns used as a proxy to detect interconnectedness of systemic risk in the financial system. Our sample employs a mixture of Indonesian banks’ public and prudential data over the 2012–2019 period. Using the Principal Component Analysis and Granger causality the core banks in the network could explain the variance, risk co-movement, and show shocks propagation. Further, the results are also in line with Basel indicator-based to score the interconnectedness. The dominance of big size banks in the centrality measures raises issue of substitutability. This paper outstretched theories and their application provides a basis for policy makers to develop supervision frameworks to mitigate systemic risk. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2226903 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2226903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2226903 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2269758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Jamal Husein Author-X-Name-First: Jamal Author-X-Name-Last: Husein Author-Name: S. Murat Kara Author-X-Name-First: S. Murat Author-X-Name-Last: Kara Author-Name: Chuck Pier Author-X-Name-First: Chuck Author-X-Name-Last: Pier Title: Are the current accounts of Asian-5 economies mean-reverting? New evidence from Fourier panel stationarity tests Abstract: This study offers a novel examination of the mean-reversion properties of the current account balances, expressed as a percentage of GDP, for the Asian-5 economies: Indonesia, Korea, Malaysia, the Philippines, and Thailand. While prior studies mainly employed traditional unit-root tests, our research stands out for its use of novel panel stationarity tests that account for cross-sectional dependence and incorporate both sharp and smooth structural breaks via a Fourier function. Our findings robustly indicate the sustainability of the current accounts of the Asian-5 nations. The emphasis on the significance of structural breaks with a Fourier component sets this research apart, offering fresh perspectives on the intricacies of current account mean-reversion dynamics and the long-term sustainability implications for these economies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2269758 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2269758 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2234129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Quoc Trung Nguyen Kim Author-X-Name-First: Quoc Trung Nguyen Author-X-Name-Last: Kim Title: Accounting information quality moderates the effect of dividends on investment decisions: Evidence in Vietnam Abstract: The author specifies the pivotal role of accounting information quality in moderating the influence of dividends on the investment decisions of listed firms in Vietnam from 2009 to 2020. In this study, the significant dependence of investment on dividends is proved by the Two-Step System Generalized Method of Moments. The key findings show that dividends and investment decisions have a statistically significant negative relationship. The relationship is clarified based on agency theory, asymmetric information theory, and signaling theory, which are used in low-information-transparency markets such as the Vietnamese market. Primarily, the role of a moderating factor could mitigate the negative relationship above. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2234129 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2234129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2234129 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267752_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhammad Salahudin Al Ayyubi Author-X-Name-First: Muhammad Salahudin Author-X-Name-Last: Al Ayyubi Author-Name: Devanto Shasta Pratomo Author-X-Name-First: Devanto Shasta Author-X-Name-Last: Pratomo Author-Name: Ferry Prasetyia Author-X-Name-First: Ferry Author-X-Name-Last: Prasetyia Title: Does pre-employment card program improve Indonesian youth labor market performance in pandemic era? Abstract: The pre-employment card program, a training voucher policy initiated by Indonesian government in the beginning of 2020 emerged as an alternative instrument in economic recovery, including for youth affected by the COVID-19 pandemic. Using the multinomial logit and Lee’s selection-biased corrections, the objectives of the study then are to see the effect of the program on (1) employment status and (2) income of youth during the pandemic. The data used are sourced from the 2020 National Labor Force Survey. The results show that the participation of youth in the program increases participation in the labor market, especially in the informal sector. However, the results show that there is still no significant effect of the program on income in all employment status, suggesting a potential lagged income effect of the program. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267752 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267752 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267752 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Justice Gameli Djokoto Author-X-Name-First: Justice Gameli Author-X-Name-Last: Djokoto Author-Name: Paragon Pomeyie Author-X-Name-First: Paragon Author-X-Name-Last: Pomeyie Author-Name: Camillus Abawiera Wongnaa Author-X-Name-First: Camillus Abawiera Author-X-Name-Last: Wongnaa Title: Foreign direct investment in food manufacturing and stages of human development Abstract: The extension of the shelf life of food through processing makes food available beyond the shelf-life of fresh agricultural produce, which has implications for food and nutrition security. Food processing creates products for the specified nutritional needs of persons with special nutritional requirements, market access for products from the agricultural sector, employment for households, opportunities for trade and marketing as well as tax revenues for the state. These contribute to the standard of living (income) as well as education and health components of human development. Existing studies have focused on assessing the human development (HD) effects of foreign direct investment (FDI). However, the differences in human development could engender differences in the effect of FDI on human development. Unlike the exante literature, we focus on food manufacturing FDI, the human development stages and the contemporaneous analysis of developed and developing countries. We used panel data from 18 and 26 developing and developed countries respectively from 1991 – 2021 and fitted it to panel generalised estimation equations and the general method of moments estimators. We find that food manufacturing FDI had a significant influence on human development for all human development stages in developing but only for low-developed countries in the category of the low human development index. Not isolating the influence of FDI on human development stages could produce misleading outcomes for developed countries. Policymakers can look at food manufacturing FDI to increase HDI and in some cases to migrate from one stage to another. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267738 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267738 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2247162_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Grace Isidor Temba Author-X-Name-First: Grace Isidor Author-X-Name-Last: Temba Author-Name: Pendo Shukrani Kasoga Author-X-Name-First: Pendo Shukrani Author-X-Name-Last: Kasoga Author-Name: Chirongo Moses Keregero Author-X-Name-First: Chirongo Moses Author-X-Name-Last: Keregero Title: Corporate governance and financial performance: Evidence from commercial banks in Tanzania Abstract: This study looks at mechanisms for improving and stabilising the financial performance of commercial banks in Tanzania. More specifically, this study aimed to assess corporate governance’s influence on financial performance regarding asset quality, efficiency use of equity, earning ability, capital adequacy, and liquidity. The study included the board aspect of governance and board control, constructs which have not been studied previously in assessing the influence of corporate governance on the performance of commercial banks. Other constructs included are the board’s gender diversity, board size, directors’ shareholding, board control, board members’ over boarding, board activities, and the existence of important board committees. Panel data were collected from published reports of 15 commercial banks covering a period of 17 and employing multiple linear regression analysis to establish causal-effect relationships among the study variables. The findings revealed that corporate governance (board aspects of governance, board members over-boarding) positively influences the financial performance of commercial banks in terms of their earning ability, asset quality, and capital adequacy. Corporate governance also negatively influences the efficient use of equity and liquidity through board gender diversity, board aspects of governance, and board control. The study recommends that corporate governance principles and mechanisms be enhanced to improve the financial performance of commercial banks. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2247162 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2247162 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2247162 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Cong Minh Huynh Author-X-Name-First: Cong Minh Author-X-Name-Last: Huynh Author-Name: Nam Hoai Tran Author-X-Name-First: Nam Hoai Author-X-Name-Last: Tran Title: Financial development, income inequality, and institutional quality: A multi-dimensional analysis Abstract: Ambiguous impacts of financial development on income inequality in the literature imply that the impacts can be affected by other variables and may depend on different dimensions of financial development. This paper studies the effects of financial development with multi-dimensional analysis (financial depth, financial access, and financial efficiency) of two main categories (financial institutions and financial markets) and institutional quality on income inequality in 30 Asian countries in the period 2000–2019. Results show that the financial institutions development (FI), the financial institutions access (FIA), the financial institutions efficiency (FIE), and the financial markets access (FMA) reduce income inequality; but the overall financial development (OFD), the financial markets development (FM), the financial institutions depth (FID), and the financial markets depth (FMD) increase it. Notably, better institutional quality not only lessens income inequality but also moderates the effects of financial development on income inequality. Specifically, the improvement of institutional quality strengthens the beneficial effects of FI, FIA, FIE, and FMA on income inequality. Meanwhile, OFD, FM, FID, and FMD initially exacerbate income inequality until respective thresholds of institutional quality, and then beyond those levels of IQ, these indicators of financial development reduce income inequality. Results are robust with various estimators. These findings strongly support the importance of financial development with multi-dimensions and institutional reform in Asian countries as they have both direct and indirect impacts on income inequality through their mutual interactions. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242128 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2245217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhammad Herru Hendrawan Author-X-Name-First: Muhammad Herru Author-X-Name-Last: Hendrawan Author-Name: Felisitas Defung Author-X-Name-First: Felisitas Author-X-Name-Last: Defung Author-Name: Wirasmi Wardhani Author-X-Name-First: Wirasmi Author-X-Name-Last: Wardhani Title: Un/desired impact of capital buffers: Evidence from Indonesian bank profitability and risk-taking Abstract: The study employs a two-step system GMM technique within a panel data framework to investigate the effects of capital buffers on the profitability and risk behavior of Indonesian commercial banks from 2010 to 2020. The findings reveal that capital buffers serve a dual role, acting as a safety net against potential losses while also promoting increased financial stability and stronger shareholder engagement. This ultimately benefits the bank and its stakeholders in the long run. However, the positive effects of capital buffers come at a cost, as they are associated with reduced returns on assets and return on equity. The study emphasizes the importance of managing risk effectively, striking a delicate balance between risk-taking and prudent risk management to achieve optimal profitability. It underscores the need for banks to prioritize robust risk management practices and proper capitalization to avoid pursuing profitability at the expense of these critical factors. The study further highlights the significance of policymakers finding the right equilibrium between promoting financial stability through capital requirements and fostering a competitive banking industry that can generate profits and support economic growth. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2245217 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2245217 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2229177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhammad Arsalan Khan Author-X-Name-First: Muhammad Arsalan Author-X-Name-Last: Khan Author-Name: Siti Nuryanah Author-X-Name-First: Siti Author-X-Name-Last: Nuryanah Title: Combating tax aggressiveness: Evidence from Indonesia’s tax amnesty program Abstract: Taxation has a vital role as a domestic financial source to achieve Sustainable Development Goals (SDGs). To increase domestic revenue, combating tax avoidance is important, especially for Indonesia, one of the most populous countries with the fact that the 2020 country’s tax-to-GDP ratio decreased to 10.1% in 2020 which is below the Asia and Pacific average of 19.1%. This paper examines the effect of the tax policy of Indonesia, i.e., tax amnesty and other factors on tax aggressiveness. Indonesia is taken as the case study for the specific characteristics of its tax reforms. The sample of this study consists of 402 observations from manufacturing companies listed in the Indonesian Stock Exchange (IDX) for the periods of 2013–2018. This study collected secondary data and employed a purposive sampling method for the selection of samples. Multiple regression analysis was used to examine the factors affecting tax aggressiveness. The results show that internal governance mechanisms, namely independent commissioners and institutional ownership, as well as the company’s characteristics, namely leverage and profitability, have a significant effect on tax aggressiveness. This study, however, cannot find the effectiveness of tax amnesty in combatting tax aggressiveness. This study brings an implication for developing tax policies for companies in Indonesia, to reduce tax aggressiveness. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2229177 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2229177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2229177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2255049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Osama Wagdi Author-X-Name-First: Osama Author-X-Name-Last: Wagdi Author-Name: Eman Salman Author-X-Name-First: Eman Author-X-Name-Last: Salman Author-Name: Hatem Albanna Author-X-Name-First: Hatem Author-X-Name-Last: Albanna Title: Integration between technical indicators and artificial neural networks for the prediction of the exchange rate: Evidence from emerging economies Abstract: The study investigated the effectiveness of technical analysis indicators in trading spot exchange rates of emerging economies’ currencies under integration with artificial neural networks (ANN) and the quantitative testing of these indicators’ success in this matter with the goal of rationalizing decisions. The study period was from January 2012 to November 2022 for twenty-four currencies against the US dollar. Based on four technical indicators: the simple moving average (SMA), momentum, moving average convergence divergence (MACD), and relative strength index (RSI), with a total of 131 months. Of them, 51 months are for ANN construction (supervised learning), while 80 months are for hypothesis testing. The study used cross-sectional analysis and hierarchical multiple regression in addition to the Wilcoxon signed ranks test and Kruskal–Wallis test. The study found a significant improvement in the values predicted for exchange rates for emerging economies by artificial neural networks versus the values predicted by technical indicators alone. Finally, the study found a significant difference of gap between the values predicted for exchange rates for emerging economies by artificial neural networks and the actual values based on currency. It is possible to study the interpretation of this result according to the difference in each of the exchange rate regimes in emerging economies, in addition to the difference in structural imbalances between those economies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2255049 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2255049 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2255049 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282838_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Dzung Viet Nguyen Author-X-Name-First: Dzung Viet Author-X-Name-Last: Nguyen Author-Name: Ngan Hoang-Kim Nguyen Author-X-Name-First: Ngan Hoang-Kim Author-X-Name-Last: Nguyen Author-Name: Tien Thuy Dinh Author-X-Name-First: Tien Thuy Author-X-Name-Last: Dinh Title: CEO attributes and firm performance: Evidence from companies listed on Ho Chi Minh Stock Exchange Abstract: This study conducted on HOSE-listed companies for the period 2016–2020 examines the influence of chief executive officer (CEO) attributes on company performance. The System GMM methodology is applied to estimate and test dynamic panel data models. We investigate a fairly large number of CEO attributes including four socio-demographic and five corporate governance-related ones. For the socio-demographic attributes, the results indicate that female gender, below postgraduate education, domestic nationality and older age are the CEO traits that contribute to improve firm performance. With regard to the corporate governance-related attributes, this study provides statistical evidence that shorter CEO tenure, CEO-chairman duality, founder CEO, insider CEO and lower CEO ownership are the characteristics that enhance firm performance. The findings may offer valuable insights to shareholders when they expect to recruit the most qualified CEO to serve their benefits and increase their company performance. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282838 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282838 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2246007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yongjun Ma Author-X-Name-First: Yongjun Author-X-Name-Last: Ma Author-Name: Xuepin Wu Author-X-Name-First: Xuepin Author-X-Name-Last: Wu Author-Name: Jingjie Shui Author-X-Name-First: Jingjie Author-X-Name-Last: Shui Title: The impact of the digital economy on the cost of living of the population: Evidence from 160 cities in China Abstract: The cost of living has shown a gradual upward trend in recent years, which has seriously impacted the quality of life and well-being of residents. This study empirically examines the impact of the digital economy on residents’ cost of living and the mechanisms behind it by measuring the digital economy and cost of living indicators in 160 cities in China from 2010 to 2020. The results show that the digital economy can significantly reduce the cost of living for the population. The “marginal effect” of the digital economy on the cost of living is found to be non-linearly decreasing as the level of the digital economy increases, and the more severe the air pollution, the weaker the impact of the digital economy on the cost of living, using a threshold variable of the digital economy and air pollution. Finally, the analysis of mechanisms shows that environmental regulation and healthcare are important ways in which the digital economy can play a role in reducing the cost of living for the population. Meanwhile, this study reveals the intrinsic link between the digital economy and the cost of living, which is important for alleviating the cost of living and enhancing people’s well-being. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2246007 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2246007 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2235821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Isaac Ofoeda Author-X-Name-First: Isaac Author-X-Name-Last: Ofoeda Author-Name: Joseph K. Tuffour Author-X-Name-First: Joseph K. Author-X-Name-Last: Tuffour Author-Name: Emmanuel Adjei Nketia Author-X-Name-First: Emmanuel Adjei Author-X-Name-Last: Nketia Title: The impact of anti-money laundering regulations on inclusive finance: Evidence from Sub-Saharan Africa Abstract: This study examined the impact of AML regulations on financial inclusion in Sub-Saharan Africa (SSA). Again, the study assessed whether the level of AML regulatory effectiveness determines the impact of AML regulations on financial inclusion. The study employed the Systems Generalized Methods of Moments (SGMM) estimation technique to assess the influence of AML regulations on financial inclusion for a panel of 44 SSA countries from 2012–2019. Data is sourced from the World Development Indicators and the Basel Institute on Governance. The study showed that AML regulations negatively impact accounts ownership and the number of commercial bank branches whereas AML regulations have a positive impact on the number of commercial bank depositors, the number of commercial bank borrowers, and the number of ATMs. Further, the study provided evidence that AML regulations positively impact the number of commercial bank branches and the number of borrowers in low-effectiveness countries (countries with AML regulations below the mean). In contrast, the study reported that AML regulations have a negative impact on accounts ownership for high-effectiveness countries (countries with AML regulations above the mean), while AML regulations have a positive influence on the number of depositors, the number of commercial bank borrowers and number of ATMs above the mean. The findings of the study imply that the impact of AML regulations on financial inclusion depends on the proxy of financial inclusion and also the extent of AML regulations in SSA countries. The uniqueness of this study is its specific focus on assessing the impact of AML regulations on financial inclusion in SSA. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2235821 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235821 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Tafadzwanashe Zinyoro Author-X-Name-First: Tafadzwanashe Author-X-Name-Last: Zinyoro Author-Name: Meshach Jesse Aziakpono Author-X-Name-First: Meshach Jesse Author-X-Name-Last: Aziakpono Title: Performance determinants of life insurers: A systematic review of the literature Abstract: The life insurance industry plays a crucial role in the economy as it serves as one of the channels through which countries mobilize long-term savings, promote the development of capital markets, foster efficient capital allocation, and substitute and complement government security programs. Therefore, the performance of this sector is imperative. Since the early 1990s, researchers have been paying particular attention to the performance of life insurance firms, with a specific emphasis on identifying the key determinants of their performance. The objective of this study is to synthesize the studies that have explored this topic. Using a systematic literature review approach, the study reviews 129 studies published between 1990 and 2021. The analysis reveals that the literature primarily examines factors such as size, organizational structure, capital composition, diversification, distribution systems, risk management practices, and reinsurance strategies as key firm-specific drivers of life insurer performance. Additionally, the study underscores the importance of competition and macroeconomic conditions as commonly discussed external determinants. While a clear relationship between performance and factors like firm size, organizational structure, and risk management practices is evident, the impact of other factors remains inconclusive. One of the implications of this study is that policymakers should enact laws that promote competition in the insurance industry. The study also reveals several research gaps, including methodological gaps. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266915 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266915 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2244353_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Million Adafre Bushashe Author-X-Name-First: Million Adafre Author-X-Name-Last: Bushashe Author-Name: Yitbarek Bayiley Author-X-Name-First: Yitbarek Author-X-Name-Last: Bayiley Title: Fiscal decentralization and macroeconomics stability nexus: Evidence from the Sub-national governments context of Ethiopia Abstract: This study aimed to investigate the effects of fiscal decentralization on Ethiopia’s regional (Sub-national) macroeconomic stability. The study followed a causational research design employing data from 2005–to 2018. The units of analysis in the study are sub-national governments (SNGs). The study utilized the two-step System General Methods of Moment (SYS-GMM) model since it resolves econometric issues, including endogeneity, autocorrelation, and Heteroscedasticity. The study findings revealed that revenue and composite decentralization have significantly shielded macroeconomic instability. In contrast, expenditure and fiscal dependency are significantly aggravating macroeconomic instability. Among the control variables used in the study, regional economic growth and school enrollment significantly reduce macroeconomic instability; Foreign Direct Investment (FDI), population growth, unemployment rate, welfare, and public investment claimed the opposite effect on macroeconomic stability. The primary implication is that the federal government needs to give fiscal autonomy to SNGs since fiscal dependency is causing macroeconomic instability. Expenditure decentralization is also exacerbating macroeconomic instability; it is essential to have a mechanism to engender budget constraints and make SNGs accountable for their expenditure. Besides, to grasp the shielding effect of revenue decentralization from macroeconomic instability, there should be incentive devices to boost SNG’s tax collection efforts. Since capital and welfare expenditures exacerbate macroeconomic instability, the study urges the government to follow a contractionary fiscal policy by cutting its expenditure. Finally, as opposed to prior studies, the present study used multiple fiscal decentralization indicators, making the study more thorough and closing the knowledge gap. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2244353 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2244353 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kidanemariam Gebregziabher Author-X-Name-First: Kidanemariam Author-X-Name-Last: Gebregziabher Author-Name: Muuz Hadush Author-X-Name-First: Muuz Author-X-Name-Last: Hadush Author-Name: Kebede Abrha Author-X-Name-First: Kebede Author-X-Name-Last: Abrha Title: Child labor and its determinants: An empirical test of the luxury axiom-cum the wealth paradox theory Abstract: The paper was motivated to test whether the high child labor prevalence observed in Ethiopia is explained by the poverty (luxury) hypothesis or wealth paradox theories. The data for this study is the Young Lives project, consisting of 1803 children units (a total of 7212 children in four rounds). Major determinants of child labor: household characteristics, shocks, poverty or wealth proxy indicators, and area and time fixed effect variables are controlled. The study employs a Feasible generalized least squares (FGLS) econometric technique to estimate the causal relationship between child labor; household characteristics, poverty, and wealth indicator variables. Both drought and income losses were found to be positive and significant almost across all specifications. Resource or asset ownership indicators, such as land, access to credit, and TLU) were found to be positively related to child labor, consistent with the wealth paradox. However, the wealth index, except in the two quartiles found to be negative and significant at 1 percent, consistent with the luxury axiom. One more result that is interesting is the significant differences between boys and girls in the type of tasks children engaged in. Girls’ dominance in household chores and boys in economic activity. Moreover, the current high level of child labor participation rate of 45 percent is very alarming. Finally, the household head’s educational status also has a strong negative impact on child labor. In view of, the moral obligation of societies and government; future economic benefit of investing in children, policy be directed towards pro-poor development programs especially targeting children’s welfare, promoting adult education, and introducing agricultural insurance schemes to reduce the extent and intensity of child labor. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282890 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282890 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: N Srinivasa Reddy Author-X-Name-First: N Srinivasa Author-X-Name-Last: Reddy Author-Name: Jayanthi Thanigan Author-X-Name-First: Jayanthi Author-X-Name-Last: Thanigan Title: Determinants of purchase intention, satisfaction, and risk reduction: The role of knowledge and information search among mortgage buyers Abstract: As housing demand rose post-COVID-19, new mortgage buyers with distinct preferences are entering the market. Nevertheless, the mortgage purchasing process can prove intricate and precarious for individuals lacking familiarity. Customers leverage various online platforms and supplementary sources to augment their knowledge and mitigate perceived risks, enabling them to make well-informed decisions during the mortgage buying process. Despite exerting these efforts, customers continue to harbor unfavorable purchase intentions due to their subpar purchasing experience, leaving mortgage lenders grappling with retention issues. Research has highlighted that only 15% of mortgage transfer customers would buy a mortgage from the original provider. The present study examines mortgage purchase intention and risk reduction by integrating customer empowerment and uncertainty reduction theories to contribute to the existing literature on mortgage decision-making. A survey was conducted among 554 mortgage buyers, and PLS-SEM was used to test the hypotheses. Knowledge positively influenced satisfaction (β = 0.15, p= = 0.01), and satisfaction positively affected purchase intention (β = 0.75, p = 0.01). The mediating mechanism of risk reduction through involvement and information search is also established. The findings suggest that customers involved in decision-making and information search are more likely to be satisfied with their purchase and experience less risk. Mortgage companies should encourage customers to be more involved and provide complete information during buying. As involved customers experience less confusion; they will make sound financial decisions and remain satisfied and loyal to the mortgage company. Using behavioral finance, policymakers could provide customers necessary nudges to improve decision-making. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266659 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266659 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2210382_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Teguh Dartanto Author-X-Name-First: Teguh Author-X-Name-Last: Dartanto Author-Name: Hera Susanti Author-X-Name-First: Hera Author-X-Name-Last: Susanti Author-Name: Eldest Augustin Author-X-Name-First: Eldest Author-X-Name-Last: Augustin Author-Name: Kania Fitriani Author-X-Name-First: Kania Author-X-Name-Last: Fitriani Title: Reemployment during the Covid-19 pandemic in Indonesia: What kinds of skill sets are needed? Abstract: The COVID-19 pandemic has disrupted the labor market leading to significant unemployment. This study explores the 2019, 2020, and 2021 National Labor Force Survey (Sakernas) to examine the labor market changes and the relationship between workers’ skill sets, such as hard skills (vocational education), soft skills, and digital literacy and reemployment during the COVID-19 pandemic. Our descriptive statistics analysis confirms that the scarring effect exists as the share of the informal sector increases by around 4.5 percentage points during the COVID-19 pandemic. Moreover, our estimations using the Bivariate Probit Model show that social skills and digital literacy are important determinants for reemployment at the national level. In contrast, vocational education and problem-solving skills are statistically insignificant. Workers with social skills tend to have a higher probability of being reemployed, by 41% in 2020 and 27% in 2021, compared to workers without any. Our study also finds a heterogenous relationship between skill sets and reemployment. Social skill is significantly correlated with reemployment in an urban area, Java-Bali, and young workers in the 15–24 age group. In addition, vocational education is crucial for reemployment, especially among young workers during the economic recovery period in 2021. Our study suggests that the government should focus on preparing the correct and relevant skill sets for young workers aged 15–24 to respond to the significant demand changes in the post-pandemic labor market. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2210382 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210382 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2210382 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2236887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Djomo Choumbou Raoul Fani Author-X-Name-First: Djomo Choumbou Author-X-Name-Last: Raoul Fani Author-Name: Ukpe Udeme Henrietta Author-X-Name-First: Ukpe Udeme Author-X-Name-Last: Henrietta Author-Name: Rayner Tabetando Author-X-Name-First: Rayner Author-X-Name-Last: Tabetando Author-Name: Gama Emmanuel Nkwi Author-X-Name-First: Gama Emmanuel Author-X-Name-Last: Nkwi Author-Name: Zoubeirou Mainassara Author-X-Name-First: Zoubeirou Author-X-Name-Last: Mainassara Title: Are young maize and rice farmers’ profit efficient? A gender differential analysis Abstract: The recent trend of development policy makes emphasis on gender disparity in performance, especially in the agricultural sector whereby women partake and play a crucial role and their contribution to the sector cannot be overemphasized. However, the contention is whether such disparity in performance exists typically at old age or whether it exists at youth age as well. A representative household survey with structured questionnaires and assistance from extension agents who served as enumerators make use of multistage sampling techniques to collect datasets from 1019 young producer-marketers involved in the two value chains from three regions of Cameroon including Far North, North, and West Regions. Findings show that the mean profit efficiency for young males is 0.53, and 0.61 while for young females are 0.59, and 0.69 respectively. The result found a significant difference (.001; .002) in the profit efficiency among young males and females rice and maize producer-marketers due to socioeconomic and financial factors such as household size, cost of transport, tax paid, amount of credit received, membership to the association, cost of labour, cost of seed, cost of herbicides and cost of fertilizer. Findings indicate that there is a need to set up agrochemical and improved seed varieties subsidy schemes with special attention given to young female rice and maize producer-marketers given that cost of agrochemical and improved seed varieties significantly affect their profitability. Young females engaged in the rice and maize value chains could benefit from setting up labour-sharing arrangements for mutual help. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2236887 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2236887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2236887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230733_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Nurjannah Nurjannah Author-X-Name-First: Nurjannah Author-X-Name-Last: Nurjannah Author-Name: Raja Masbar Author-X-Name-First: Raja Author-X-Name-Last: Masbar Author-Name: M. Shabri Abd. Majid Author-X-Name-First: M. Shabri Abd. Author-X-Name-Last: Majid Author-Name: Suriani Suriani Author-X-Name-First: Suriani Author-X-Name-Last: Suriani Title: Inter-regional trade and economic growth of ASEAN low middle income: Are corruption control and HDI important? Abstract: The current study aims to analyze the factors influencing ASEAN economic growth and integration. Specifically, the variables of inter-regional trade, human resource development, and corruption were investigated in six lower-middle-income countries from 1996 to 2019 through Driscoll and Kraay’s, Newey and West’s, and Dumitrescu and Hurlin’s as causal analysis. The study’s results found that capital had an impact of 0.248%, labor had an impact of 0.467%, human development had 3.010%, intra-regional trade had an impact of 0.014%, and corruption control had 0.260%. Statistically, all variables have a significant effect except for inflation. Furthermore, a bidirectional found in economic growth from the capital, corruption control, and intra-trade. A unidirectional was found for economic growth between the labor force and human development. At the same time, a neutral relationship was found between inflation and economic growth. Based on these findings, strengthening the economy in the integration area needs to be done, even if it’s only trading with fellow LMIs. Besides that, there is an increasing need to increase the allocation of education and health, which stimulates productivity. The government also needs to strengthen corruption control, which is detrimental to developing nations and economic growth. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230733 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230733 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: John Kwaku Amoh Author-X-Name-First: John Kwaku Author-X-Name-Last: Amoh Author-Name: Kenneth Ofori-Boateng Author-X-Name-First: Kenneth Author-X-Name-Last: Ofori-Boateng Author-Name: Randolph Nsor-Ambala Author-X-Name-First: Randolph Author-X-Name-Last: Nsor-Ambala Author-Name: Ebenezer Bugri Anarfo Author-X-Name-First: Ebenezer Author-X-Name-Last: Bugri Anarfo Title: Tax efforts and tax evasion–economic development Nexus. Does institutional quality matter? Abstract: As a result of the failure to meet tax collection targets, policymakers, economists, and financiers have focused their attention in recent years on how a country’s tax effort has been employed to combat tax evasion and maximise tax collections for economic growth. The study looked at the nexus between tax efforts, tax evasion, and economic development, as well as the effect of institutional quality on moderating the nexus in Ghana. The maximum likelihood (ML) estimation and structural equation modelling (SEM) techniques were used in the study to analyse a sample of quartered data from 1996 to 2020. Testing the hypotheses reveals that both tax efforts and tax evasion have negative effects on the economic freedom of the world index (EFWI) but positive effects on urbanisation. A test of the third hypothesis shows that institutional quality moderates tax evasion in Ghana in order to influence economic development. The findings imply that the idea that tax evasion is bad for an economy or that tax efforts drive domestic revenue mobilisation is based mainly on prima facie evidence. Tax efforts such as tax amnesty may appear to compliant taxpayers as an incentive for tax evaders, which could affect their compliance. The adoption of the tax efforts index measure to examine its econometric impact on economic development is one of the pioneering attempts in the field. The study recommends well-thought-out strategies to ensure that tax efforts achieve their intended goals. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243174 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243174 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243174 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230724_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Abebe Dagnew Author-X-Name-First: Abebe Author-X-Name-Last: Dagnew Author-Name: Degye Goshu Author-X-Name-First: Degye Author-X-Name-Last: Goshu Author-Name: Lemma Zemedu Author-X-Name-First: Lemma Author-X-Name-Last: Zemedu Author-Name: Million Sileshi Author-X-Name-First: Million Author-X-Name-Last: Sileshi Title: Impacts of contract farming on asset accumulation of malt barley farmers in Northwestern Ethiopia Abstract: Agriculture is the mainstay of the Ethiopian economy. Barley, including food and malt barley, is one of the major cereals produced by smallholder farmers. Though malt barley is the fastest-growing industry, demand is outpacing supply. As a result, Ethiopia is a net importer of raw malt barley. Recently, contract farming was implemented to address this issue in malt barley-potential areas. It has been one of the strategies utilized to enhance the commercialization of malt barley and replace imported malt barley, besides solving production and marketing challenges. The predicted results also include satisfying domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation’s foreign exchange. Although not thoroughly investigated, the research area has a low rate of CF participation and a low malt barley yield. Furthermore, previous research has focused on the CF impact of income, food security, and yield indicators of welfare, but no attention has been devoted to the implications of asset accumulation, which is a greater long-term indicator of welfare. Given the issues and research gaps identified, this study seeks to evaluate the impact of CF on malt barley farmers’ asset accumulation in Northwestern Ethiopia. The data were collected from 398 samples in two districts, selected using multistage sampling techniques. The endogenous switching regression (ESR) model was used to account for bias coming from both observable and unobservable sources. For malt barley farmers, the average treatment effect on treated and untreated was 9652.7ETB and 7417.3ETB, respectively, and was significant at 1%. The base heterogeneities for CF participation and non-participation were 886ETB and −1349.4ETB, respectively. The average transitional heterogeneity was 2235.4ETB and statistically significant at 1%. Consequently, malt barley CF participation has a positive association with asset accumulation; this result supports transaction cost economic theory. Cooperative membership, off-farm employment, and age were all positively associated with the propensity to increase asset accumulation. The finding also reveals that land affected participants, whereas credit, household size, and farming experiences had a significant and positive effect on non-participants’ assets. This shows that the asset accumulation of the two groups was determined by common variables with different magnitudes and different variables. Therefore, the concerned bodies should consider these heterogeneities to strengthen and improve the CF participation of malt barley farmers as long as they are adjusted to local conditions. Furthermore, spillover effects of CF on other sectors (other crops and the environment) and non-participants should be considered to check whether it has negative or positive external effects. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230724 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230724 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2231208_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: John Owusu-Afriyie Author-X-Name-First: John Author-X-Name-Last: Owusu-Afriyie Author-Name: Priscilla Twumasi Baffour Author-X-Name-First: Priscilla Author-X-Name-Last: Twumasi Baffour Author-Name: William Baah-Boateng Author-X-Name-First: William Author-X-Name-Last: Baah-Boateng Title: Union wage effect: Evidence from Ghana Abstract: Consistent with Convention 87 of the International Labour Organization (ILO), Section 79 of the Labour Act, 2003 (Act 651) empowers every employee in an organization to either form or join a trade union of their choice for the promotion and protection of their economic and social interests. In spite of this legal provision, union coverage and density in Ghana have continually declined in recent years. The decline in union density and coverage is likely to decrease the collective bargaining strength of unions. It is against this background that our study seeks to examine the effect of unions’ bargaining (proxied by union presence variable) on wages in Ghana. We employ the Heckman Selection Model and quantile regression technique to analyze data extracted from the sixth round of the Ghana Living Standards Survey (GLSS 6) and 2015 Ghana Labour Force Survey (GLFS 2015) respectively. The findings indicate that unions’ bargaining effect on wages is positive. Furthermore, the study finds that the union wage premium is highest at the lowest point of the wage distribution (25th quantile) but lowest at the highest point of the wage distribution (75th quantile). Whilst the study acknowledges the importance of education in earnings determination, we recommend that low-wage employees in a non-union establishment should join a trade union in order to earn a living/decent wage. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2231208 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2231208 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2183667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Mohammed M. Elgammal Author-X-Name-First: Mohammed M. Author-X-Name-Last: Elgammal Author-Name: Anas A. Al Bakri Author-X-Name-First: Anas A. Author-X-Name-Last: Al Bakri Author-Name: AlDana Y. AlJanahi Author-X-Name-First: AlDana Y. Author-X-Name-Last: AlJanahi Title: The Effect of New and Traditional Sources of Financing on the Performance of Small and Entrepreneurship Businesses: The Case of Qatar Abstract: Purpose: This paper investigates how entrepreneurial finance in Qatar affects the performance of small and entrepreneurship businesses (SEB). It is the first study examining the financial decisions of SEB in Qatar, illustrating the advantages and disadvantages of traditional and innovative sources of finance. In addition, we investigate the impact of different funding sources on three dimensions of SEB performance: financial, marketing and internal business and development performance. Methodology: Our sample included 300 SEB owners and managers, selected randomly and contacted in January to March 2020. Following the delivery and collection process, the study obtained 161 questionnaires, which were analysed using ordinary least squares regression. Findings: The results suggest that diversity and accessing new and innovative sources of finance affect the performance of SEBs. Meanwhile, this effect varies among different aspects of performance. The study concluded that SEBs prefer equity to debts. The performance of SBEs is mainly derived through accessibility to funds, governmental support, using innovative finance and the availability of collateral. Implications: This study contributes to the literature and industry by being the first to examine the accessibility of innovative sources of funds for SEBs in Qatar and their impact on different dimensions of performance. Our findings can help decision-makers to consider the impact of diverse sources of funds on different performance dimensions, which affect financing decisions made based on the performance priorities. Moreover, we find a negative impact of governmental support and using crowdfunding on internal business and development performance; this implies that less efficient SEBs, in terms of their internal business and marketing performance, are more active in obtaining both governmental support and crowdfunding, as they may be not eligible for other sources of finance. Our work highlights the key role of adapting to the new accessibility of funds in improving the performance of SBEs in Qatar, which is ultimately reflected in the diversification of the economy. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2183667 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2183667 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243695_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Williams Ohemeng Author-X-Name-First: Williams Author-X-Name-Last: Ohemeng Author-Name: Kenneth Ofori-Boateng Author-X-Name-First: Kenneth Author-X-Name-Last: Ofori-Boateng Author-Name: Elvis Kwame Agyapong Author-X-Name-First: Elvis Author-X-Name-Last: Kwame Agyapong Author-Name: Joseph Darmoe Author-X-Name-First: Joseph Author-X-Name-Last: Darmoe Title: Environmental risk and growth in foreign direct investment: Is the composition of FDI in sub-Saharan Africa a speculative type? Abstract: The study explores the influence of environmental risk (macroeconomic uncertainty and environmental sustainability risk) on the inflow of foreign direct investment (FDI), utilizing data from 37 economies in sub-Saharan Africa (SSA) from 1996 to 2019. The empirical analyses were carried out using Panel Corrected Standard Error (PCSE) estimation technique. The outcomes show that higher level of uncertainty in GDP growth, inflation uncertainty and financial development volatility induce more FDI inflows whilst uncertainty in exchange rate adversely impacts FDI inflows in SSA. The paper highlights how effectiveness of governance, stable political atmosphere and quality of regulatory structures moderate the relationship between environmental risk and FDI with striking varying outcomes. Consistent with the pollution haven hypothesis, the interactions between governance effectiveness, political stability, regulatory structures and environmental risk suggest that the sub-region is attracted to risk loving speculative investors who prefer poorly regulated and weak governance environment. From policy implication, the findings imply that FDI composition in the sub-region may have moved more towards the speculative type, which may not necessarily be classified as pro-growth in nature. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243695 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243695 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2245274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Nisha Prakash Author-X-Name-First: Nisha Author-X-Name-Last: Prakash Author-Name: Madhvi Sethi Author-X-Name-First: Madhvi Author-X-Name-Last: Sethi Title: Relationship between fixed capital formation and carbon emissions: Impact of trade liberalization in India Abstract: The liberalization of economies is aimed at boosting domestic growth through foreign investment and trade. The proponents of liberalization argue that opening up markets in developing economies provides access to capital to enhance production. However, proponents of the pollution haven hypothesis (PHH) argue that liberalization and trade agreements have led to the export of carbon-intensive production from wealthier countries to developing economies. The difference between the two outcomes lies in the nature of fixed assets built by developing countries. In this study, we examine the role of fixed capital formation on carbon emissions during two distinct periods of India’s economic development. India liberalized its economy with trade reforms in 1991, thereby providing two distinct time periods of closed and open trade policies. The economic data during 1971–2021 is divided into two parts—before (1971–1990) and after (1991–2021) liberalization. Gross fixed capital formation (GFCF) is used as a measure of capital formation while carbon emissions are used to represent environmental impact. Auto-regressive distributed lag (ARDL) model is used for analysis. Results indicate that GFCF had no significant relationship with carbon emission before liberalization, whereas, there was a significant, positive impact post-liberalization. The study is of significance to policymakers in developing countries as it suggests a change in the capital formation towards low carbon-intensive products and services. It also strengthens the argument for investing capital in cleaner energy and technologies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2245274 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2245274 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2234220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kumba Digdowiseiso Author-X-Name-First: Kumba Author-X-Name-Last: Digdowiseiso Title: Institutional quality as the driver of fiscal decentralization in developing countries Abstract: In this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average of data from 34 developing countries between 1990 and 2014.I employ the Generalized Method of Moments (GMM) to address the issue of endogeneity, which is a common issue in fiscal decentralization studies. The findings show a strong nonlinear relationship between institutional quality and fiscal decentralization metrics. In this context, since democracy (polity), participatory democracy, bureaucratic quality, law and order, and fiscal decentralization are all emerging from low levels of development, an increase in the magnitude of these institutional quality variables will further reduce fiscal autonomy. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2234220 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2234220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2234220 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2270231_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Sugam Agarwal Author-X-Name-First: Sugam Author-X-Name-Last: Agarwal Author-Name: Smruti Ranjan Behera Author-X-Name-First: Smruti Ranjan Author-X-Name-Last: Behera Title: Spatial concentration of Indian service industries in rural and urban areas: A micro-unit-level analysis Abstract: This paper explores the spatial concentration of 120 service industries in India’s rural and urban areas, covering 33.60 million establishments using Economic census (2013) data at the district level. Besides, this study uses a cartogram map to examine knowledge-intensive business services (KIBS) industries’ spatial concentration patterns and geographical concentration of employment of workers in rural and urban areas in India. Empirical results show that the magnitude of the spatial concentration effect varies in rural and urban areas. Further, empirical results reveal that KIBS industries are localized in rural and urban areas but have a skewed distribution toward urban areas. Moreover, results show that hotspots in rural areas seem higher than urban hotspots, although rural hotspots employ fewer employees than urban hotspots. The empirical results suggest that urban planners and district municipal authorities can give more emphasis and implement suitable KIBS industry-specific policies to boost regional economic growth and employment in rural and urban India. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2270231 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2270231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2270231 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Goodhope Hance Mkaro Author-X-Name-First: Goodhope Hance Author-X-Name-Last: Mkaro Author-Name: Lin Sea Lau Author-X-Name-First: Lin Sea Author-X-Name-Last: Lau Author-Name: Chee Keong Choong Author-X-Name-First: Chee Keong Author-X-Name-Last: Choong Title: The determinants of banking sector performance in Tanzania: A pre-post Treasury Single Account analysis Abstract: This study examined how the Treasury Single Account (TSA) policy, aimed at withdrawing government deposits from commercial banks, impacted the Tanzanian banking sector’s performance in relation to ownership concentration, bank size, and macroeconomic variables. Balanced panel dataset comprising thirty (30) banks, from 2010Q1 to 2020Q4, was analyzed. Regression results revealed that, while foreign and state-owned banks were more resilient, private and domestic banks’ performance deteriorated after TSA adoption. Small banks survived the negative TSA shock while the performance of the larger ones was negatively affected. The effects of interest rate, GDP, and exchange rate turned negative whilst the inflationary effects on bank performance were enhanced after TSA. The study enhances comprehension of the relatively new TSA system in Africa while addressing a literature gap by exploring its influence on banking sector’s performance across various bank classifications. Following TSA adoption, regulators should strike a balance between tightening or relaxing regulatory limits while enforcing banks’ compliance to ensure the sector’s stability. Government support for key economic growth-driving sectors potentially attracts more deposits into the banking system, thus promoting the sector’s stability. Banks are encouraged to innovate strategies to attract deposits from the general public, while deviating from dependence on government funds. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282812 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282812 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2287908_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Baeyong Lee Author-X-Name-First: Baeyong Author-X-Name-Last: Lee Author-Name: Hoolda Kim Author-X-Name-First: Hoolda Author-X-Name-Last: Kim Author-Name: Assad Tavakoli Author-X-Name-First: Assad Author-X-Name-Last: Tavakoli Title: The impact of economic growth, inflation and unemployment on subjective financial satisfaction: A New global evidence Abstract: Using the happiness survey data, a robust body of literature has supported that people’s subjective well-being is related to economic growth, employment, and inflation. Motivated by “Happiness Economics,” this paper focuses on financial satisfaction, a proxy of subjective well-being. It examines the relationship between people’s financial satisfaction and nations’ macroeconomic performances. We use the World Values Survey and inflation, unemployment, and economic growth data collected from 2010–2014 to 2017–2022. We use the ordered probit and ordinary least squares regressions for the analysis. The findings show that financial satisfaction has a negative relationship with inflation and unemployment and a positive relationship with economic growth. Heterogeneity checks indicate that the association’s strength and statistical significance vary by gender, age, household income, marital status, educational attainment level, and employment status. The overall results suggest policymakers should strive to mitigate the economic vulnerability of women, older adults, low-income earners, low-educated, those who are not married but live together, and those who are not in the labor force to maximize the financial satisfaction of individuals and thus promote subjective well-being of them. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2287908 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2287908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2287908 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2246318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Emmanuel Opoku Marfo Author-X-Name-First: Emmanuel Author-X-Name-Last: Opoku Marfo Author-Name: Paul Adjei Kwakwa Author-X-Name-First: Paul Adjei Author-X-Name-Last: Kwakwa Author-Name: Solomon Aboagye Author-X-Name-First: Solomon Author-X-Name-Last: Aboagye Author-Name: Peter Ansu-Mensah Author-X-Name-First: Peter Author-X-Name-Last: Ansu-Mensah Title: The role of female population, urbanization and trade openness in sustainable environment: The case of carbon dioxide emissions in Ghana Abstract: Sustainable environment offers many benefits to individuals and societies. As a result, the agenda to reduce carbon dioxide emissions in order to mitigate climate change remains a global concern. Researchers, policymakers and governments have shown interest in this regard. Empirical studies on the subject matter have been increasing conflicting results and little evidence on the effects of some variables necessitate for further studies. To offer value to the literature, in this study, the effect of female population, urbanization and trade openness on carbon dioxide emission in Ghana is assessed. The study used the Stochastic Impacts by Regression on Population, Affluence, & Technology (STIRPAT) model as the foundation for empirical modelling. Time-series data spanning from 1971–2021 were used for regression analysis. In both long run and short run periods, urbanization was noted to exert positive influence on carbon dioxide emission while trade openness and female population exert a negative effect on carbon dioxide emission. Thus, growth in urbanization increases carbon dioxide emission while the opposite effect is the case for trade openness and the female population. Findings from the study suggest the need to intensify the empowerment of women, which could be a crucial catalyst for the achievement of Ghana’s nationally determined contributions toward CO2 reduction. Also, international trade negotiations that promote environmental protection should not be relaxed. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2246318 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2246318 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2273651_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Li He Author-X-Name-First: Li Author-X-Name-Last: He Title: Assessing the smart city: A review of metrics for performance assessment, risk assessment and construction ability assessment Abstract: With the growing interest and concerns about the concept of smart city, assessing the smart city gains increasing attention from government planners, policy makers and related researchers around the world. This paper aims to provide a critical review of metrics involving national frameworks, institutional standards, and local reports, which focuses not only on the evaluation systems but also the assessing methodologies for assessing performance, risk and construction ability of smart cities. It is concluded that, most existing standards and research foci are on performance, and more attention needs to be paid to assessments of risk and construction ability. The former one suffers from the poor reliability and comparability resulting from massive indicators and unclear calculations, while the latter two are constrained by vague evaluation systems and insufficient method applications. Based on the comparison and discussion of the current research status, limitations and the future research directions, this research sheds light on better planning, monitoring and governance of smart cities. It also contributes to understanding and promoting the development of related research and even strategies or policies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2273651 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273651 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2273651 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2255496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Million Adafre Bushashe Author-X-Name-First: Million Adafre Author-X-Name-Last: Bushashe Author-Name: Yitbarek Bayiley Author-X-Name-First: Yitbarek Author-X-Name-Last: Bayiley Title: Fiscal federalism and public service provision in Ethiopia: A mediating role of sub-national governments capacity Abstract: This study’s purpose is to assess fiscal federalism’s effect on public service provision in Ethiopia. The study adopted an explanatory research design. Considering 10 Sub-National Governments (SNGs) from 2005 to 2018, it employed Partial Least Square Structural Model (PLS-SEM). It also utilized Gaussian copula (GC) estimations since it helps to avoid the endogeneity. The study proved that expenditure decentralization significantly fosters public service provision. Revenue decentralization has no significant role in enhancing public service provision. Besides, though expenditure decentralization has adversely affected SNGs’ capacity, revenue decentralization positively contributes to SNGs’ capacity. On the one hand, SNG’s capacity plays a significant positive mediating role in the impact of revenue decentralization on public service provision. On the other hand, it negatively mediates the contribution of expenditure decentralization on public provision. The most important implication is that the government should raise revenue sources for SNGs and reduce federal grants. In addition, inter-governmental fiscal interactions should uphold the benefit principle and connectedness between the expenditure and revenue sides. The present study bridges gaps in the existing knowledge since it embraced ignored variables (i.e. SNG capacity) essential in the debates of fiscal federalism theories. Therefore, this makes the study more complete and gives a remedy for the piecemeal work of previous studies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2255496 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2255496 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2255496 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2273599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Abdisa Olkeba Author-X-Name-First: Abdisa Author-X-Name-Last: Olkeba Author-Name: Tsegamariam Dula Author-X-Name-First: Tsegamariam Author-X-Name-Last: Dula Author-Name: Paulos Gutema Author-X-Name-First: Paulos Author-X-Name-Last: Gutema Author-Name: Degefa Tolossa Author-X-Name-First: Degefa Author-X-Name-Last: Tolossa Author-Name: Abate Mekuriaw Author-X-Name-First: Abate Author-X-Name-Last: Mekuriaw Author-Name: Alemu Azmeraw Bekele Author-X-Name-First: Alemu Azmeraw Author-X-Name-Last: Bekele Title: The effects of schooling on rural unemployment in Ethiopia Abstract: Nowadays, education is considered an instrument that we use to eradicate poverty. It is also presumed as an indicator of modernization and a development realization tool. Education creates an opportunity to be employed in good positions in reducing unemployment. Scholars debate whether education reduces rural unemployment. Some scholars argue that education is a powerful weapon to reduce rural unemployment. Others encounter that education does not necessarily decrease rural unemployment. This paper describes the effects of schooling on rural unemployment in Ethiopia. We used a quantitative approach with a descriptive research design in this study. A sample of 8700 participants, based on the Ethiopian Central Statistics Agency data collected in 2021, was obtained. We used descriptive and probit models to analyze the data. The descriptive results showed that rural unemployment is unequally distributed based on education, sex, and regional states. The majority are still participating in the agriculture sector. Besides, the finding also reveals that lack of job opportunities, training, experience, and unrelated jobs to education in rural areas is the cause of unemployment. However, the probit model result shows that schooling has a statistically significant positive effect on employment. As a result, for a one-unit increase in education, the probability of employment increases by 0.15. It concludes that schooling is paramount in decreasing rural unemployment in Ethiopia if much attention is given. We recommend that the government should transform rural areas’ activities from agricultural-oriented to services-oriented activities to create extensive job opportunities in rural areas for rural youths, especially educators. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2273599 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2273599 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2235118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Lydia Cheruto Pkaremba Author-X-Name-First: Lydia Cheruto Author-X-Name-Last: Pkaremba Author-Name: Martine Odhiambo Oleche Author-X-Name-First: Martine Odhiambo Author-X-Name-Last: Oleche Author-Name: Elizabeth Owiti Author-X-Name-First: Elizabeth Author-X-Name-Last: Owiti Title: Analysis of contraceptive use among homeless women in Kenya – a case of Nairobi county Abstract: Many factors influence the utilization of reproductive healthcare services in Kenya. Despite the effort by the government and other stakeholders to improve access and utilization of these services, there remains a major challenge in reaching out to marginalized segments of society. The study aims to examine the factors affecting the utilization of modern contraceptives by homeless women in Nairobi, Kenya, and draw policy recommendations based on the findings. The study utilized the logit model to analyze determinants of contraceptive utilization by homeless women in Nairobi using primary data collected from 196 households within Nairobi. The number of children per woman, age at first birth, living with a partner, drug abuse by the respondent, drug abuse by respondents’ partner, poverty, child planning, health facility delivery, neonatal death incidence, knowledge of male sterilization, never attending school, primary school attendance, secondary school attendance, operating of small business and contraceptive spending significantly affect the utilization of modern contraceptives by homeless women in Nairobi, Kenya. The majority of homeless women in Nairobi utilized injectibles (26.63%) and implants (24.07%) as a form of contraception. The government should therefore provide a contraceptive mix that incorporates these forms of contraception to ensure maximum utilization. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2235118 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235118 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2254560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Shubham Kakran Author-X-Name-First: Shubham Author-X-Name-Last: Kakran Author-Name: Arpit Sidhu Author-X-Name-First: Arpit Author-X-Name-Last: Sidhu Author-Name: Parminder Kaur Bajaj Author-X-Name-First: Parminder Kaur Author-X-Name-Last: Bajaj Author-Name: Vishal Dagar Author-X-Name-First: Vishal Author-X-Name-Last: Dagar Title: Novel evidence from APEC countries on stock market integration and volatility spillover: A Diebold and Yilmaz approach Abstract: The interconnection of stock markets offers valuable insights into the broader dynamics of global financial markets. This study uses the Diebold and Yilmaz index model to analyze and measure volatility spillovers and interconnectedness among APEC stock markets. The objective is to identify major transmitters of volatility spillovers and assess the magnitude of different crisis cycles. The results show that the US is the major contributor (69.54%) to volatility spillovers in APEC stock markets, followed by Canada (52.92%) and Mexico (37.09%). These three economies are part of the highly integrated regional bloc, say, North American Free Trade Agreement (NAFTA). New Zealand has the highest net inflow of spillovers, while spillovers account for 32.86% of the error variance across APEC equity markets. Moreover, notable spikes in volatility spillovers have been observed as a result of various events, including the Chinese stock bubble, the Global Financial Crisis (2007–2008), European debt crises, the Chinese stock market crash, the cryptocurrency crash, the COVID-19 pandemic, and the Russia-Ukraine conflict. The study’s findings imply that policymakers should enhance economic integration and cooperation within APEC countries to manage volatility spillovers effectively. The research highlights market interactions for a large sample, aiding in identifying investment opportunities and risk management strategies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2254560 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254560 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2254560 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2281844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Paul Adjei Kwakwa Author-X-Name-First: Paul Adjei Author-X-Name-Last: Kwakwa Author-Name: Justice Boateng Dankwah Author-X-Name-First: Justice Boateng Author-X-Name-Last: Dankwah Author-Name: Emmanuel Adu Boahen Author-X-Name-First: Emmanuel Author-X-Name-Last: Adu Boahen Author-Name: Paul Hammond Author-X-Name-First: Paul Author-X-Name-Last: Hammond Title: Financial development in South Africa: The role of natural resources, IT infrastructure, and government size Abstract: The purpose of this paper is to identify the driving elements of the South African financial sector. While South Africa’s financial sector appears robust, there exists a dearth of empirical research investigating the determinants of its development. Thus, this work assesses how three critical factors: natural resource abundance (NR), IT infrastructure, and government expenditure levels affect financial development (FD) in South Africa using annual data from 1971 to 2020. Preliminary findings show that the series are integrated, and they are cointegrated. Results from regression analysis suggest that the abundance of NR does not significantly contribute to financial development in South Africa. Conversely, advanced IT infrastructure, larger government size, and openness to trade are associated with a more developed financial sector. The implications of these findings are essential for policymakers and stakeholders in understanding the factors that drive financial development in South Africa. The study recommends that, among others, innovative approaches are needed to channel gains from natural resources effectively into the financial sector. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2281844 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281844 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2281844 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Fasika Chekol Author-X-Name-First: Fasika Author-X-Name-Last: Chekol Author-Name: Kindie Abetie Author-X-Name-First: Kindie Author-X-Name-Last: Abetie Author-Name: Teshome Sirany Author-X-Name-First: Teshome Author-X-Name-Last: Sirany Title: Technical efficiency of garlic production under rain fed agriculture in Northwest Ethiopia: Stochastic frontier approach Abstract: The article focuses on evaluating the technical efficiency of garlic production in northwest Ethiopia. The average yield in the region was lower than its potential, indicating a need to improve farming practices. Data were collected from 359 garlic producers using random sampling. The Cobb-Douglas stochastic frontier production function was used to estimate technical efficiency, which was found to be 73%. This means that about 27% of potential garlic output was lost due to inefficiency. Factors such as land size, seed, fertilizer, insecticide, and oxen days were found to have a positive and significant impact on garlic production. On the other hand, factors like age, extension contact, distance, renting land, garlic disease shock, access to finance, and access to information were linked to technical inefficiency. The study suggests that investing in high-quality seeds, improved farming inputs, and access to information can enhance garlic output by leveraging its high efficiency level. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242177 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2245258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kwame Adjei-Mantey Author-X-Name-First: Kwame Author-X-Name-Last: Adjei-Mantey Author-Name: Frank Adusah-Poku Author-X-Name-First: Frank Author-X-Name-Last: Adusah-Poku Author-Name: Paul Adjei Kwakwa Author-X-Name-First: Paul Adjei Author-X-Name-Last: Kwakwa Title: International tourism, exchange rate, and renewable energy: Do they boost or burden efforts towards a low carbon economy in selected African countries? Abstract: Africa continues to suffer from the effects of climate change in many ways. Records show that the continent’s carbon dioxide (CO2) emissions have seen tremendous upward adjustments over the past decades. While international tourism and renewable energy have been touted as sources of reducing CO2 emissions, the empirical evidence has been mixed, and it is also unclear how exchange rates moderate the effect of tourism on CO2 emissions. With the recent pace of tourism and renewable energy development, as well as exchange rate fluctuations in Africa, the study assesses the impact of international tourism, exchange rate, and renewable energy on CO2 emissions of seven most visited countries in Africa. Carbon dioxide emission was modelled within the Environmental Kuznets Curve (EKC) hypothesis. Regression analyses were performed using the quantile regression and fully modified OLS. Regression analysis from the fully modified OLS method shows that the EKC hypothesis holds for the selected countries; renewable energy and international tourism reduce carbon dioxide emissions; and exchange rate interacts with international tourism to reduce carbon dioxide emissions. The quantile regression shows variations in the impacts across the various quantiles. Countries in this study can rely on economic expansion, international tourism, and renewable energy to curb carbon dioxide emissions. It is recommended, among other things, that there should be the development of additional tourism locations and renewable energy adoption be scaled up as a means of reducing heavy polluting energy sources to reduce emissions emanating from the energy sector. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2245258 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2245258 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2269738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Aamir Hussain Author-X-Name-First: Aamir Author-X-Name-Last: Hussain Author-Name: Siti Aznor Ahmad Author-X-Name-First: Siti Aznor Author-X-Name-Last: Ahmad Author-Name: Md Shahin Mia Author-X-Name-First: Md Shahin Author-X-Name-Last: Mia Title: A systematic literature review on performance of social enterprises Abstract: Assessing the performance of social enterprises is gaining popularity in the academic world in recent years. However, different studies focused on different dimensions of performance evaluation. For instance, some studies measured social performance of the social enterprises while others paid attention to financial performance. Consequently, it creates a research gap lacking a complete picture of performance evaluation of social enterprises globally. Insufficient performance evaluation, limited assessment methods, and a lack of systematic thinking are the causes of this research gap. Therefore, this study aims to carry out a systematic literature review to provide a complete picture on performance of social enterprises. Preferred Reporting Items for Systematic Reviews and Meta-Analyses were used to generate a systematic literature review. The study reviewed systematically 35 scholarly articles that focused on social and financial performance of social enterprises. The findings indicate that social enterprises have strong financial and social support and can incorporate different types of resources and goals. It is also reported that performance, which is frequently linked with specific external and internal assistance are essential variables in enabling social enterprises to grow. The study findings might provide a new insight and understanding to fulfil the research gap in this area. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2269738 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2269738 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2251300_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Izunna Anyikwa Author-X-Name-First: Izunna Author-X-Name-Last: Anyikwa Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Title: Quantile connectedness amongst BRICS equity markets during the COVID-19 pandemic and Russia–Ukraine war Abstract: Our study uses the quantile vector autoregressive (QVAR) network approach to compare the median-based and tail connectedness in BRICS equity markets using daily time series spanning from 3rd March 2020 to 9th September 2022. The study is conducted on both returns and volatility series, and the findings from our static and dynamic analysis can be summarized as follows. From the static perspective, we observe stronger connectedness and spillover effects on the left and right (right only) tails for returns (volatility) series. For the returns series, China and South Africa (Brazil, Russia and India) are net receivers (transmitters) of shocks at the left tail and median quantiles whilst China and Russia (Brazil, India and South Africa) are net receivers (transmitters) at the right-tail, whereas for the volatility series China and India (Brazil, Russia and South Africa) are the net receivers (transmitters) at both quantile tails, whilst Brazil (Russia, India, China and South Africa) is (are) the net receiver(s) (transmitters) at the median. From a dynamic perspective, time-varying total connectedness is higher at the median (tail-end) quantile(s) during the COVID-19 pandemic (Russia–Ukraine war). Moreover, the time-varying market-specific analysis distinguishes which individual equities are most or least vulnerable to systemic tail-risk transmission effects during the COVID-19 pandemic and more recent Russia–Ukraine. Ultimately, these findings are relevant for investors in their search for better hedging opportunities in equity markets as well as for market regulators who can use systematic risk as an early warning signal for contagion and market crash. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2251300 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251300 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Amon Taruvinga Author-X-Name-First: Amon Author-X-Name-Last: Taruvinga Author-Name: Siyabonga Jonga Author-X-Name-First: Siyabonga Author-X-Name-Last: Jonga Author-Name: Owethu Zamisa Author-X-Name-First: Owethu Author-X-Name-Last: Zamisa Author-Name: Derick Nomuh Forbanka Author-X-Name-First: Derick Nomuh Author-X-Name-Last: Forbanka Title: Rural women’s participation in wild honey hunting and associated income, dietary diversity, and food insecurity implications: Evidence from South Africa Abstract: Wild raw honey hunting and consumption is very popular among rural communities in South Africa as a source of income and food for households. Although men traditionally dominate wild honey hunting, in recent years participation of women has increased. However, evidence of the participation of rural women in wild honey hunting is often lacking. This study focused on assessing the status of wild honey hunting by women, factors that influence their decision to participate and associated income, dietary diversity, and food insecurity implications. A cross-sectional survey of 200 rural women purposively selected from Ncera communal area in the Eastern Cape Province of South Africa was conducted. The study revealed that an emerging number of rural women were actively involved in wild honey hunting and participation is triggered by age, access to extension services and livelihood diversification, while access to formal honey markets discouraged wild honey hunting. Results further revealed a positive income, dietary diversity, and a significant reduction in food insecurity among participants compared to non-participants. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282864 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282864 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2276794_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhammad Mehboob Alam Author-X-Name-First: Muhammad Mehboob Author-X-Name-Last: Alam Author-Name: Sayed Irshad Hussain Author-X-Name-First: Sayed Irshad Author-X-Name-Last: Hussain Author-Name: Akhtar Hussain Author-X-Name-First: Akhtar Author-X-Name-Last: Hussain Author-Name: Izhar Ul Hassan Author-X-Name-First: Izhar Author-X-Name-Last: Ul Hassan Title: Rural Poverty profile in Pakistan: Incidence, Severity, and Correlates through Consumption Based Approach Abstract: This study is an attempt to estimate the incidence, severity, depth, and determinants of poverty in Jhang district, Punjab, Pakistan. For this purpose, the data were collected from 1,000 households through a specifically designed questionnaire using multistages sampling technique in all four subdistricts of Jhang district. The study used both income-regression model and logistic regression to assess the impact of demographic and socioeconomic factors on poverty incidence. The results show that 54.3% of households are below the poverty line, including 16% extremely poor. Poverty measures including headcount index, severity, and depth of poverty are worse among the households headed by farmers, daily-wagers, and illiterates. Moreover, the results confirm that the household’s livestock population, landholding, ownership of agricultural land, total assets, and earners per household considerably reduced the poverty incidence in Jhang district. While household size, age of household head, economic dependency ratio, and total dependency ratio significantly increased the level of poverty. The study concludes that demographic and socioeconomic characteristics of the households are of greater importance in alleviating poverty generally in Pakistan but particularly in rural areas. Hence, it is suggested that governments should increase public spending on socioeconomic programs and services with a particular focus on education, women’s empowerment, family planning, employment opportunity, pro-agriculture policies, and equitable distribution of land and wealth to alleviate poverty in rural areas of Pakistan. Further research can be conducted by selecting large sample size and analyzing the household characteristics at the disaggregated level incorporating time variations to develop a more impactful policy framework. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2276794 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2276794 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Christina Nizamidou Author-X-Name-First: Christina Author-X-Name-Last: Nizamidou Title: Resilience, crisis management and continuous improvement against the impact of COVID-19 on employees’ engagement and emotions. Insights from a Cypriot SME Abstract: COVID-19 forced governments and organizations to navigate unchartered waters and shift to remote work to prevent its spreading, aiming to be resilient and maintain their sustainability. Recent research showed that COVID-19 impacted employees’ engagement and emotions. As every crisis is unique and every organization experiences a crisis differently, this study adopts the single-case study research method to understand better how a Cypriot SME in the financial service dealt with COVID-19 and its aftermath. By interviewing multiple employees from all hierarchical levels, it assesses the company’s level of resilience. Moreover, it demonstrates the company’s challenges to preserve its commitment to continuous improvement and the implications of remote work on employees’ engagement and emotions. Based on the findings, the company showed a high level of resilience, though it adopted a reactive behavior toward crisis management. These findings are beneficial as they expand on research on the importance of proactive behavior that advances continuous improvement and crisis preparedness. Additionally, it expands research about the implications of remote work. Lastly, by showing that their customers’ financial sustainability directly influenced the company’s financial sustainability due to COVID-19 and the ongoing Russo-Ukrainian War, the current offers novel insights about the impact of two mega-crises combined. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282867 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282867 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2275974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Zainal Abidin Author-X-Name-First: Zainal Author-X-Name-Last: Abidin Author-Name: Sakinah Author-X-Name-First: Author-X-Name-Last: Sakinah Author-Name: Farid Firmansyah Author-X-Name-First: Farid Author-X-Name-Last: Firmansyah Author-Name: Moch Cholid Wardi Author-X-Name-First: Moch Author-X-Name-Last: Cholid Wardi Author-Name: Rudy Haryanto Author-X-Name-First: Rudy Author-X-Name-Last: Haryanto Author-Name: Sri Handayani Author-X-Name-First: Sri Author-X-Name-Last: Handayani Author-Name: Zaenuddin Hudi Prasojo Author-X-Name-First: Zaenuddin Hudi Author-X-Name-Last: Prasojo Title: Islamic business development of Madurese-owned ethnic-based grocery stores: Study from Indonesia Abstract: The retail grocery business is experiencing rapid expansion in several major Indonesian cities. A significant proportion of these establishments is owned and managed by a particular ethnic group, specifically the Madurese community hailing from East Java, who take pride in their identity as Muslim entrepreneurs. This research endeavors to investigate the fundamental factors contributing to the sustainability and expansion of Madurese-owned Muslim-run grocery stores as ethnic-based grocery stores (EGS). The data for this study were acquired through observations and in-depth interviews with key figures among EGS owners and staff. The findings highlight that the pivotal strategy for the success and growth of EGS lies in their capacity to adapt and emulate modern retail outlets. Furthermore, the principles of cooperation, familial bonds, cultural preservation, and adherence to Islamic values that have been fostered within the Madurese Muslim ethnic groups residing in urban environments play a significant role. Additionally, the distinctive relationships between store proprietors and employees contribute significantly to the swift proliferation of EGS across Indonesia. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2275974 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2275974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2275974 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2272485_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Carina Burs Author-X-Name-First: Carina Author-X-Name-Last: Burs Title: A model of cycles and bubbles under heterogeneous beliefs in financial markets Abstract: I study the effect of heterogeneous beliefs about asset prices on the long-term behavior of financial markets. Starting from the ideas of Abreu and Brunnermeier (2003), a two-dimensional system of differential equations is developed. The first dynamic variable is the asset price growth rate. The second dynamic variable is the number of investors who believe that asset prices are abnormally high. In a phase plane analysis, I find both stable and unstable equilibria, depending on the spread of information and the response to other agents’ beliefs. If individuals try to increase their returns while perceiving more overpricing, these equilibria can be spirals or even approach limit cycles. Although I intend to study general price patterns, abnormally high asset prices can be caused by financial bubbles. In this model, bubbles can emerge and deflate both in cycles or directly, or they can grow until they burst. Further, I analyze market behavior after a central bank increases the interest rate. This can lead to new stable equilibria, but the emergence and bursting of bubbles cannot be prevented. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2272485 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2272485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2272485 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2251822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Samuel Osei-Gyebi Author-X-Name-First: Samuel Author-X-Name-Last: Osei-Gyebi Author-Name: John Bosco Dramani Author-X-Name-First: John Bosco Author-X-Name-Last: Dramani Title: Firm performance in sub-Saharan Africa: What role do electricity shortages play? Abstract: Electricity outages affect the performance of firms in sub-Saharan Africa (SSA) through a reduction in production capacity and over-reliance on backup generators, which raises the cost of production and render them uncompetitive. Based on this, we estimated the joint effect of electricity outage frequency and duration of outages on the performance of firms in SSA through the method of instrumental variable (IV). Employing firm-level data from the World Bank Enterprise Survey for 28 SSA countries from 2007 to 2018, the study found a unit increase in outage frequency and its duration combine to reduce yearly sales of firms in SSA by $114.9. Also, the study revealed that small-size firms in SSA incur $408.894 losses relative to large firms for every joint increase in outage frequency and outage duration largely because they cannot cope with electricity outages. Since electricity shortages persist in SSA, mitigation policies must target small firms as they are the worst affected by electricity outages. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2251822 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251822 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Fan Yang Author-X-Name-First: Fan Author-X-Name-Last: Yang Author-Name: Tajul Ariffin Masron Author-X-Name-First: Tajul Ariffin Author-X-Name-Last: Masron Title: Does financial inclusion moderate the effect of digital transformation on banks’ performance in China? Abstract: Digital transformation remains a passion. Globally, science and technology are transforming businesses to make them more competitive and conducive to sustainable development. However, rapid advancements in financial technology have enabled financial institutions to steal customers from traditional banks, resulting in their demise. Consequently, this study employs the System GMM-two step estimator and data from 118 Chinese banks from 2014 to 2021 investigate the issue. Empirical evidence suggests that banks’ digital transformation has a negative impact on their profitability to some extent, but digital inclusive finance has enabled the bank to change its digital transformation behavior and enhance its operational performance. Therefore, banks must continue to strengthen their digital transformation by expanding online customer services, increasing the use of e-accounts and mobile applications, providing digital offline services, strengthening digital risk management and privacy and security controls, reducing customer psychological risk, and promoting financial inclusion. Financial inclusion should simultaneously achieve reduced financial exclusion of customers and increased financial literacy of customers. All these factors will help banks to maintain profitability by leveraging synergies with financial inclusion in the process of digital transformation. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267270 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267270 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2269796_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Sriram K.V Author-X-Name-First: Author-X-Name-Last: Sriram K.V Author-Name: Riddhima Singh Author-X-Name-First: Riddhima Author-X-Name-Last: Singh Author-Name: Vibha Author-X-Name-First: Author-X-Name-Last: Vibha Author-Name: Giridhar B Kamath Author-X-Name-First: Giridhar B Author-X-Name-Last: Kamath Title: Antecedents of credit card usage behaviour: An Indian perspective Abstract: The use of credit cards is closely connected to how well someone is doing financially. It has been associated with behaviors like excessive shopping and materialism. In India, there has been a recent increase in the number of credit cards issued. This research aims to study how Indian consumers use credit cards and how it affects their debt. The study focuses on three factors: power-prestige, credit card features, and ease of use. By understanding these factors, we can gain insights that will help both consumers and credit card issuers improve their financial well-being. The study identified three different groups of consumers based on their motivations for using credit cards. The first group is driven by a desire for power and prestige, while the second group is influenced by credit card features. The third group, which finds credit cards easy to use, has a negative impact on credit card usage. The research discovered several variables that affect how people use credit cards. By classifying consumers based on their motivations, the findings can provide a starting point for both consumers and issuers to better understand their financial well-being. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2269796 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269796 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2269796 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2258672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yaregal Tilahun Author-X-Name-First: Yaregal Author-X-Name-Last: Tilahun Author-Name: Benyam Tadesse Author-X-Name-First: Benyam Author-X-Name-Last: Tadesse Author-Name: Engida Gebre Author-X-Name-First: Engida Author-X-Name-Last: Gebre Author-Name: Kusse Haile Author-X-Name-First: Kusse Author-X-Name-Last: Haile Author-Name: Mekuanint Bayu Author-X-Name-First: Mekuanint Author-X-Name-Last: Bayu Author-Name: Zelalem Adimasu Author-X-Name-First: Zelalem Author-X-Name-Last: Adimasu Author-Name: Zarihun Tolera Author-X-Name-First: Zarihun Author-X-Name-Last: Tolera Author-Name: Buzeye Zegeye Author-X-Name-First: Buzeye Author-X-Name-Last: Zegeye Author-Name: Abebe Bayu Author-X-Name-First: Abebe Author-X-Name-Last: Bayu Title: Factors influencing the intensity of market participation of smallholder livestock producers in southwest Ethiopia Abstract: Livestock market participation is an important way to improve the livelihoods and income of the smallholder farmers in Southwest Ethiopia. Although it plays an important role, livestock producers do not fully participate in the livestock market. The purpose of this study was to investigate the factors that influence the intensity of livestock market participation in Southwest Ethiopia. To analyze the result, descriptive statistics and Poisson regression analysis were used. The results showed that 65.4% of the respondents have participated in livestock markets whereas 34.6% were not market participants. The Poisson regression result showed that experience in livestock production, education status, market access, access to grazing land, livestock owned and extension contact frequency affect positively while distance to a nearby market affects negatively and significantly on the intensity of livestock market participation. Based on the result of the study; lack of market access, long market distance, and lack of updated market information are the factors influencing livestock producers to engage in livestock market participation. Finally, this study suggests boosting farmer education through adult education and developing rural infrastructure (updated market information, road, and market and transport access), increase in farmers’ training centers, improves consultation and training service could enhance the intensity of livestock market participation. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2258672 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2258672 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2280326_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Author-Name: Phocenah Nyatanga Author-X-Name-First: Phocenah Author-X-Name-Last: Nyatanga Title: Impact of fiscal consolidation in different states of domestic government debt in South Africa 1979 to 2022 Abstract: This paper investigates the impact of fiscal consolidation in different states on domestic government debt in South Africa. The government budget constraint theoretical framework and Markov-switching dynamic regression (MSDR) from 1979 to 2022. The contribution of this paper is to examine fiscal consolidation on domestic government debt in different states using measures of fiscal consolidation that account for time-varying elasticity in the cyclical adjusted primary balance (CAPB). The U-shape is found which indicates that fiscal consolidation is effective in reducing domestic government debt at a low level. However, as domestic government debt reaches a high-level fiscal consolidation becomes detrimental and further increase domestic government. Given the result, it recommended that South Africa use less fiscal consolidation in the effort to reduce domestic government debt. Fiscal authorities need to use government expenditure in the productive sector of the economy that will bring about an increase in revenue rather than an increase in the tax rate as advocated in the fiscal consolidation policy. Moreover, develop a tax system that generates optimal tax revenue with adjustment of the tax rates. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2280326 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2280326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2280326 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267920_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Title: Exploring the relationship between exchange rate misalignment uncertainty and economic growth in South Africa Abstract: This paper aims to address the relatively limited attention given to the examination of exchange rate misalignment uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this study fills a crucial gap in the literature and gains a deeper understanding of the factors influencing economic growth in South Africa. While previous literature has provided valuable insights into the relationship between exchange rate uncertainty and economic growth, there is a dearth of studies focusing on the particular issue of exchange rate misalignment uncertainty in South Africa. Therefore, the objective of this research is to investigate the effects of exchange rate misalignment uncertainty on short-term and long-term economic growth in South Africa. To achieve this objective, we employ the generalized autoregressive conditional heteroskedasticity (GARCH) and vector error correction (VEC) models. The analysis utilizes quarterly data spanning from the first quarter of 1960 to the third quarter of 2022. The findings of this study reveal a negative association between exchange rate uncertainty and short-term economic growth, while the long-term effects yield mixed results. Moreover, we observe that higher exchange rate misalignment is linked to positive implications for economic growth. These findings emphasize the significance of managing exchange rate volatility and reducing uncertainty to ensure economic stability and foster long-term growth. Considering these findings, policymakers should prioritize implementing strategies that promote a stable exchange rate and cultivate a favorable business environment. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267920 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267920 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267920 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2228087_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Shatha Mustafa Hussain Author-X-Name-First: Shatha Author-X-Name-Last: Mustafa Hussain Author-Name: Amer Alaya Author-X-Name-First: Amer Author-X-Name-Last: Alaya Author-Name: Thana A. Azizi Author-X-Name-First: Thana A. Author-X-Name-Last: Azizi Title: The impact of financial accounting disclosures on investors’ reactions towards bad news: The moderating role of investors’ sentiments Abstract: This paper examines the influence of financial accounting disclosures (FAD) on the investors’ reactions towards bad news (IRBN), and analytically assesses the moderation effect of the individual investor’s sentiments particularly” Subjective norms” on that relationship in project-based organizations (PBOs) listed in the UAE financial markets from a financial, and psychological perspective. Structural equation modelling (SEM) was used to analyse 310 completed questionnaires using Statistical Package for Social Sciences (SPSS) and Analysis of Moment Structures (AMOS) by multiple regression, path, and moderation analysis. Findings show that four dimensions of the studied FAD have a direct positive impact on the IRBN except for the external auditing and audit service (EAUS). Results also revealed that the subjective norms have a moderating impact on the relationship between FAD and the IRBN. Academically, this research contributes to both the reasoned action theory and the agency theory and satisfies an important gap in FAD literature. Practically, organizations, policymakers, and officials can use the findings of reliable and valid measurements of FAD, IRBN, and investors’ sentiment items to control and develop purposes, as IRBN can be controlled by healthy communication tools via different disclosure channels and healthy disclosure content. Investor Relations (IR) managers can realize if the desired disclosure is well comprehended in investors’ awareness, trust, intention, and perceptual reaction. It is one of the first empirical studies to establish a model illustrating the relationships between FAD, Subjective norms, and IRBN. The proposed model comprises processes and practices that could be used to enhance the decision-making process of investors and control their reactions that impact PBOs in the United Arab Emirates (UAE). Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2228087 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2228087 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Ibrahim Musah Author-X-Name-First: Ibrahim Author-X-Name-Last: Musah Title: An empirical investigation of macroeconomic determinants of public debt in Ghana Abstract: Ghana has a lengthy history of accumulating public debt, primarily driven by the expansion of fiscal deficits. This has resulted in a persistent increase in the public debt ratio, as the country borrowed both externally and internally to stimulate economic growth and augment its capital stock. However, this trajectory has led to concerns about debt sustainability. The study examines the macroeconomic determinants of public debt accumulation in Ghana. It aims to analyse these determinants’ short- and long-term effects using the autoregressive distributed lag (ARDL) model. The study finds a positive association between merchandise trade and public debt, indicating that an increase in trade due to heavy reliance on external trade to meet domestic consumption needs leads to a rise in public debt. Furthermore, it identifies a positive relationship between gross fixed capital formation (growth) and public debt, indicating that as the economy grows and more capital is invested in fixed assets, public debt also increases. The study also reveals that higher interest payments contribute to a greater accumulation of public debt. It further demonstrates that government spending plays a crucial role in shaping the trajectory of public debt, as an increase in spending leads to an increase in public debt. The findings suggest that fiscal policies, external borrowing, trade, interest payments, and budget deficits substantially influence public debt levels in Ghana. As a result, the study highlights the need for policies that promote fiscal discipline, debt sustainability, and transparency to manage public debt effectively. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285625 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285625 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2241700_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Author-Name: Joseph Kokouvi Djafon Author-X-Name-First: Joseph Kokouvi Author-X-Name-Last: Djafon Author-Name: Mawuli Kodjovi Couchoro Author-X-Name-First: Mawuli Kodjovi Author-X-Name-Last: Couchoro Author-Name: Akoété Ega Agbodji Author-X-Name-First: Akoété Ega Author-X-Name-Last: Agbodji Title: Digital transformation, financial access and discrepancies in household wealth accumulation Abstract: In a world where financial capital serves as the backbone of individual and societal economic health, understanding the mechanisms that can stimulate or hinder its accumulation is critical. This study explores how the accessibility of banking services and the integration of digital finance can influence the accumulation of financial wealth, as well as disparities in household savings. Drawing on data derived from the Finscope Consumer Survey for Togo 2016 and the Harmonized Living Standards Measurement Study 2018 for Togo, this study employs a range of analytical methodologies including propensity score matching, double difference, and smoothed instrumental variable quantile regression tools. The outcomes of this study underscore that access to banking services and digital finance significantly enhances physical asset investment and the adoption of sound financial practices rather than an increase in bank savings alone. Therefore, the emergence of digital finance can be seen as a missing link in the formal financial system’s ability to improve the efficiency of financial service provision and make a significant contribution to reducing inequalities in wealth accumulation. This study sheds light on the significant decrease in inequality concerning the capacity for wealth accumulation among households. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2241700 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241700 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241700 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2237716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Amanuel Kussia Guyalo Author-X-Name-First: Amanuel Kussia Author-X-Name-Last: Guyalo Author-Name: Lensa Tekalign Ifa Author-X-Name-First: Lensa Tekalign Author-X-Name-Last: Ifa Title: Impact of agricultural cooperatives on the food security status of households in Oromia regional state, Ethiopia: The case of Halu Woreda Abstract: Agricultural cooperatives are considered as an institutional instrument for supporting smallholder farmers and contributing to poverty alleviation and food security. However, empirical literature and practices on the ground are mixed and inconclusive. The main purpose of this study is, therefore, to analyze the impact of agricultural cooperatives on households’ food security status in the context of Halu Woreda. The study employed a quasi-experimental research design to estimate the impact of such collective organizations on food security. Primary data were collected from 260 rural households drawn via a stratified random sampling technique. A variety of impact estimation models were employed to check the robustness of the results. The findings revealed that being a cooperative member is determined by a combination of factors, including the sex and age of the household head; access to farm inputs, credit, and training; and the welfare status of the household head. The findings also showed that agricultural cooperatives have a statistically significant positive impact on the food security status of households. It is concluded that agricultural cooperatives are effective in improving the food security status of the households in the study area. Therefore, regional rural development policy and strategy should focus on strengthening and genuinely supporting the existing agricultural cooperatives while encouraging the establishment of new ones through an inclusive approach in ways that directly address poverty and food insecurity. By highlighting the implications of the impact of agricultural cooperatives on food security, this article contributes to the ongoing debates on the potential benefits of such associations to farmers’ livelihoods in rural areas. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2237716 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237716 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2237716 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2233315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Umar Farooq Author-X-Name-First: Umar Author-X-Name-Last: Farooq Author-Name: Basem Hamouri Author-X-Name-First: Basem Author-X-Name-Last: Hamouri Author-Name: Ashish Kumar Author-X-Name-First: Ashish Author-X-Name-Last: Kumar Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Effect of country governance on trade credit activities: Empirical evidence from Pakistan Abstract: An existence of good governance situation ensures the progress of economic sectors. The recent literature has mentioned the role of country governance in multiple business operations. However, the effect of country governance on trade credit is not yet explored in the literature. Thus, the current analysis aims to test the empirical nexus between country governance and trade credit activities. The empirical analysis was arranged on Pakistani non-financial enterprises over the period 2010–2019. The regression between variables was established by employing the generalized least square and generalized method of the moment models. The empirical analysis documents the positive effect of aggregate governance index and other proxies of governance including voice and accountability, political stability, regulatory quality, and corruption control on both trade payables and receivables. The favorable governance situation makes business operations more transparent, reduces market uncertainty, and ensures the protection of rights. All these factors positively achieve trade credit operations. We find robust evidence in the presence of both firm-specific and macroeconomic factors. The findings of the study yield an important policy regarding the role of better governance in boosting trade-credit operations. By enlightening the direct effect of country governance on trade credit, this research adds the innovative arrangement of the variable in the existing literature. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2233315 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2233315 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: P.V. Thayyib Author-X-Name-First: P.V. Author-X-Name-Last: Thayyib Author-Name: Muhammed Navas Thorakkattle Author-X-Name-First: Muhammed Navas Author-X-Name-Last: Thorakkattle Author-Name: Faisal Usmani Author-X-Name-First: Faisal Author-X-Name-Last: Usmani Author-Name: Ali T Yahya Author-X-Name-First: Ali T Author-X-Name-Last: Yahya Author-Name: Najib H.S Farhan Author-X-Name-First: Najib H.S Author-X-Name-Last: Farhan Title: Forecasting Indian Goods and Services Tax revenue using TBATS, ETS, Neural Networks, and hybrid time series models Abstract: This study focuses on the crucial task of forecasting tax revenue for India, specifically the Goods and Services Tax (GST), which plays a pivotal role in fiscal spending and taxation policymaking. Practically, the GST time series datasets exhibit linear and non-linear fluctuations due to the dynamic economic environment, changes in tax rates and tax base, and tax non-compliance, posing challenges for accurate forecasting. Traditional time-series forecasting methods like ARIMA, assuming linearity, often yield inaccurate results. To address this, we explore alternative forecasting models, including Trigonometric Seasonality Box-Cox Transformation ARIMA errors Trend Seasonal components (TBATS) and Neural Networks: Artificial Neural Networks (ANN), Neural Networks for Autoregression (NNAR), which capture both linear and non-linear relationships. First, we test single time series models like Exponential Smoothing (ETS), TBATS, ANN, and NNAR. Second, we also test hybrid models combining linear models, non-linear models, and neural network models. The findings reveal that the Hybrid Theta-TBATS model offers superior forecasting accuracy, challenging recent research favouring neural network models. The study highlights the effectiveness of advanced non-linear models, particularly TBATS and its hybridisations with linear models, in GST revenue forecasting. Our study also found that the single TBATS is the second-best model, which offers better forecasting accuracy. These insights have significant implications for policymakers and researchers in taxation and fiscal planning, emphasising the need to incorporate non-linear dynamics and advanced modelling techniques to enhance the accuracy of GST revenue forecasts. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285649 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285649 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285649 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Simon Akumbo Eugene Mbilla Author-X-Name-First: Simon Akumbo Eugene Author-X-Name-Last: Mbilla Title: Social drivers and tax revenue: The mediation effect of tax compliance. Evidence from an emerging economy Abstract: This study examined how social drivers such as culture, tax education, attitude, and equity affect tax compliance behaviour among SMEs in Ghana. Quantitative research approach was adopted for this study. The survey research design was employed for this study, and the data collection instrument was a questionnaire. The sample size of this study comprises of 350 SMEs. The hypotheses were tested with the help of Smart-PLS structural equation modelling version_3. The results revealed that social drivers significantly affect tax compliance behaviour. This study contributes to the body of knowledge, adds to practice and policy by demonstrating that tax compliance has taken on a social dimension in Ghana. While the study has become necessary to improve tax compliance among SMEs, the researcher also seeks to contribute globally to the UN’S sustainable development goals (SDG 10), which aim to reduce inequalities. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285638 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2237714_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Richard Takyi Opoku Author-X-Name-First: Richard Takyi Author-X-Name-Last: Opoku Author-Name: Anokye M. Adam Author-X-Name-First: Anokye M. Author-X-Name-Last: Adam Author-Name: Zangina Mohammed Isshaq Author-X-Name-First: Zangina Mohammed Author-X-Name-Last: Isshaq Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Title: Time-varying connectedness and contagion between commodity prices and exchange rate in Sub-Saharan Africa Abstract: Market participants, policymakers, and practitioners might have ignored the connection between global commodities and the currency markets in sub-Saharan Africa and the potential for contagion at various time scales. We examine the degree of time-varying connectivity and contagion between commodities and the exchange rates of sub-Saharan African countries (SSA). We use the Barunik and Krehlik (BK18) spillover index on monthly data from 1990 to 2019 to illustrate the dynamic connectivity in the time and frequency domains. The BK18 captures the nonlinear, nonstationary, asymmetric, and time-dependent comovements in the relationship. Our analysis indicates that the relationship between commodity returns and exchange rates in Sub-Saharan Africa (SSA) is both time- and frequency-dependent, but stronger at higher frequencies. We observe that, among the three commodities, only crude oil is a dominant spillover propagator. The exchange rates of South Africa dominate spillover transmission among metal-producing countries, and those of Cote d’Ivoire dominate agricultural-producing countries. The dynamic results reveal significant spillovers between commodities and exchange rates during economic turmoil, indicating contagion among the markets. Since uncertainty spillover is more severe amid market upheaval, investors should use their awareness of market dynamics and fluctuations to protect their holdings from lower asset returns. Policymakers should keep a close eye on spillovers because they endanger cross-market connections. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2237714 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2237714 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2257069_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Eric Fosu Oteng-Abayie Author-X-Name-First: Eric Fosu Author-X-Name-Last: Oteng-Abayie Author-Name: Emmanuel Duodu Author-X-Name-First: Emmanuel Author-X-Name-Last: Duodu Author-Name: Seth Oduro Author-X-Name-First: Seth Author-X-Name-Last: Oduro Author-Name: Samuel Tawiah Baidoo Author-X-Name-First: Samuel Author-X-Name-Last: Tawiah Baidoo Title: Greening the future: Unveiling the link between industrial structure upgrading and pollution emission in sub-Saharan Africa Abstract: Industrial structure upgrading (ISU) in sub-Saharan Africa (SSA) has been improving in recent years, making it essential to examine how such upgrading influences pollution emissions in SSA. However, studies concerning the environment in SSA have overlooked this important role. Consequently, achieving the Sustainable Development Goals becomes futile if such critical issues are not given due attention in policy discourse. In light of this, this study examined the effect of ISU on pollution emissions in 28 SSA countries using data from 1980 to 2020 and employed two key measures of ISU as contributions to the literature. Regarding the analysis, the fixed effects, random effects, and feasible generalized least squares estimators and the Dumitrescu and Hurlin (D-H) causality test were employed. The results show that ISU improves the sustainable environment by reducing pollution emissions in SSA by 0.03–0.04%. Furthermore, economic growth (EG) increases pollution emissions by 0.63–0.72%, but after reaching a threshold level of 0.10%, EG reduces pollution emissions by 0.03–0.04%. This confirms the EKC hypothesis in the selected SSAs. The D-H causality analysis also reveals a bidirectional relationship between ISU and pollution emissions. Based on these results, we conclude that upgrading the industrial structure in SSA is crucial for a clean and sustainable environment. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2257069 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2257069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2257069 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2254589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Fahd Alduais Author-X-Name-First: Fahd Author-X-Name-Last: Alduais Title: Unravelling the intertwined nexus of firm performance, ESG practices, and capital cost in the Chinese business landscape Abstract: This research explores the relationship between a company’s commitment to Environmental, Social, and Governance (ESG) factors and its capital equity cost (COE) in the Chinese market. Using statistical methods like regression analysis, the study aims to uncover how ESG disclosure relates to COE. Key findings reveal that environmental and social disclosures increase capital equity costs, indicating higher costs for companies with strong ESG practices. However, governance disclosures don’t significantly impact COE, suggesting that environmental and social aspects carry more weight in shaping investor perceptions and influencing costs compared to governance. The research also shows that this ESG-COE link is more significant for financially sound companies, indicating greater cost implications for strong performers. The study further demonstrates that strong ESG practices are perceived as lower risk, leading to lower capital equity costs. Chinese firms with high ESG scores tend to have lower capital costs, indicating rising investor appreciation for ESG in the Chinese market. The study’s robustness check supports these findings, reinforcing the growing importance of ESG in investment decisions. This research has implications for companies, investors, and policymakers, stressing the role of ESG in attracting investment and reducing costs. Policymakers can use these insights to encourage improved ESG practices and transparency. Overall, the study underscores ESG’s impact on capital equity costs in China, offering valuable insights for decision-makers and highlighting ESG’s relevance in financial choices. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2254589 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2254589 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Khadijah Iddrisu Author-X-Name-First: Khadijah Author-X-Name-Last: Iddrisu Author-Name: James N. Doku Author-X-Name-First: James N. Author-X-Name-Last: Doku Author-Name: Joshua Y. Abor Author-X-Name-First: Joshua Y. Author-X-Name-Last: Abor Author-Name: Raymond Dziwornu Author-X-Name-First: Raymond Author-X-Name-Last: Dziwornu Title: Financial inclusion and inclusive growth in Africa: What is the moderation role of financial stability? Abstract: This article aims to explore the interplay between financial stability, financial inclusion, and inclusive growth in 40 African countries during the period 2004–2020. It acknowledges that an unstable financial system has the potential to erode confidence and hinder the essence of financial inclusion in promoting inclusive growth. However, studies regarding the combined effect of financial inclusion and financial stability on inclusive growth are hard to find, especially in Africa. By examining the effects of financial inclusion on inclusive growth and the synergistic relationship between financial stability and inclusive growth, this study seeks to shed light on how these factors interact in the context of African economies. To cater for endogeneity issues, we used a two-step system generalized method of moment. Our result reveals three outcomes: First, financial inclusion promotes inclusive growth. Second, financial stability alone is less effective to enhance inclusive growth. Lastly, financial stability forms synergy with financial inclusion to further spike inclusive growth. It is recommended that policymakers should strive to enhance financial inclusion by promoting financial stability. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267857 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267857 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2235823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Berhanu Kuma Author-X-Name-First: Berhanu Author-X-Name-Last: Kuma Author-Name: Abebech Godana Author-X-Name-First: Abebech Author-X-Name-Last: Godana Title: Factors affecting rural women economic empowerment in Wolaita Ethiopia Abstract: Empowering rural women economically helps to ensure gender equality, the well-being of nation and the basic needs of a family. This study was conducted to figure out factors affecting rural women economic empowerment endeavors of development practitioners in Wolaita Ethiopia. Multi-stage sampling techniques were used to obtain a sample size of 100 rural households. Data were collected using cross-sectional semi-structured questionnaire, which were analyzed by descriptive and binary logit model. Rural women economic empowerment index was calculated to measure dependent variables. The index result showed that 69% of the households scored less than 0.5, and thus were considered economically not empowered. The binary logit model result revealed that age of women, marital status, educational level, perception toward economic empowerment, motivation, income, participation in decision-making and participation in leadership positively and significantly affected rural women economic empowerment. It is recommended that existing programs and strategies should be reviewed and new ones should be designed to effectively improve the situation of rural women economic empowerment. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2235823 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235823 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235823 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Abdul-Malik Abdulai Author-X-Name-First: Abdul-Malik Author-X-Name-Last: Abdulai Title: The impact of remittances on economic growth in Ghana: An ARDL bound test approach Abstract: International remittances remained one major source of international financial resources in the world. Yet very limited empirical studies exist on the impact of these remittances on economic growth, more especially in Ghana. To bridge this void in literature, the study analyzes the impact of remittances on GDP growth in Ghana from 1990 to 2020. The ARDL estimation technique was used to test the long-run association between the selected variables. The results showed that GDP growth rate has a long-run relationship with remittance inflows, foreign direct investment, unemployment rate, inflation, trade, population growth rate and official development assistance. Lastly, the mediating effect of unemployment on remittance inflows negatively affects GDP growth rate in both runs. It is therefore recommended that to ensure sustained GDP growth rate in Ghana, government should consider tapping into the contribution of remittances by ensuring reliable transfer means and cutting down the cost of transfer. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243189 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243189 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2281177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Suresha B Author-X-Name-First: Author-X-Name-Last: Suresha B Author-Name: Surekha Nayak Author-X-Name-First: Surekha Author-X-Name-Last: Nayak Author-Name: Krishna T A Author-X-Name-First: Author-X-Name-Last: Krishna T A Author-Name: Rejoice Thomas Author-X-Name-First: Rejoice Author-X-Name-Last: Thomas Title: Determinants of Book Built IPO underpricing – differential issue size and market momentum approach revisited Abstract: Pricing of an Initial public offering (IPO) is a complex phenomenon. Price anomalies are commonly observed in IPO markets, especially in emerging markets. Investors perceived underpricing creates undue market momentum during the offer period with an asymmetric effect across different issue sizes. This study examines the determinants of Book Built IPOs underpricing by considering a sample of 180 Book Built IPOs that went public in India between 2011 and 2020. The determinants were verified for differential issue size public offers. Listing day performance was measured using Listing Day-Absolute Return (LD-AR) and Listing Day-Market Adjusted Return (LD-MAR) models. Further, the data obtained was tested for the explanatory capabilities of firm-specific and market momentum factors for underpricing using OLS models. Concerning the differential issue size, the study found a direct relationship between the issue size and underpricing. Dominant underpricing was observed in the case of moderate to large issue size with a linear progressive return, confirming that there was over-optimism on the part of investors. The study’s results also revealed that momentum-specific factors have a significant influence along with firm-specific factors such as firm size, cash flows, a subscription rate of QIBs and RIIs in the listing day return, and underpricing. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2281177 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2281177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2261329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Eugene M. Buthelezi Author-X-Name-First: Eugene M. Author-X-Name-Last: Buthelezi Author-Name: Phocenah Nyatanga Author-X-Name-First: Phocenah Author-X-Name-Last: Nyatanga Title: The dynamic relationship between government debt, fiscal consolidation, and economic growth in South Africa: A threshold analysis Abstract: This paper investigates the threshold impact of government debt on economic growth in the presence of fiscal consolidation in South Africa from 1979 to 2022. The autoregressive threshold regime (TAR) model and two-stage least squares (2SLS) are used. The contribution of the paper is on the estimation of the threshold of government debt using the first difference, dummy variables, and the TAR in the presence of fiscal consolidation in South Africa. The TAR provides evidence with the consideration of fiscal consolidation, there is evidence of the U-shape impact of domestic government debt on gross domestic product per person. At a high threshold, there is evidence of an S-shape impact on gross domestic product per person when there is a range threshold. Overall high domestic government debt harms gross product per person and results in fiscal consolidation not being able to stimulate gross domestic product per person. It is recommended for fiscal authorities to not use fiscal consolidation when the domestic government debt is above 60% in South Africa. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2261329 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2261329 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Solomon Zewdu Leul Author-X-Name-First: Solomon Zewdu Author-X-Name-Last: Leul Author-Name: Alemu Azmeraw Bekele Author-X-Name-First: Alemu Azmeraw Author-X-Name-Last: Bekele Author-Name: Alemseged Gerezgiher Hailu Author-X-Name-First: Alemseged Gerezgiher Author-X-Name-Last: Hailu Author-Name: Solomon Tsehay Feleke Author-X-Name-First: Solomon Tsehay Author-X-Name-Last: Feleke Title: The impact of Korra tef (Eragrostis tef) adoption on commercialization status of tef producing farmers in Northwestern Ethiopia: A propensity score matching analysis Abstract: The government and other development practitioners in Ethiopia have promoted crop technologies like improved tef varieties to improve crop productivity of farmers and, in turn, their commercialization status. The commercialization impacts of these crops, however, were not thoroughly examined. This study examined the commercialization impact of adopting improved tef variety (Korra) in North-western Ethiopia using cross-sectional data of 479 tef producer farm households drawn from two districts, one from the adopters and the other from non-adopters. A multi-stage sampling procedure was followed to select the respondents. A semi-structured questionnaire was used as a principal primary data collection method to collect household survey data, and interviews were conducted with the relevant key informants of the study. The extent of smallholder commercialization was examined using the Household Commercialization Index (HCI), and the impact of Korra tef adoption on adopters’ commercialization was estimated using Propensity Score Matching (PSM). The HCI result revealed that 46.95% of sampled farmers sold tef during 2020; while it was 58.92% and 36.7% for the adopters and non-adopters, respectively. This indicated that the non-adopters and adopters were, respectively, semi- and commercialized. The PSM result also revealed a positive and significant impact on households’ tef commercialization, with the adopters’ commercialization rate exceeding the non-adopters by about 23.43%. Hence, efforts should focus on ensuring that farmers have access to sufficient quantities of high-quality improved Korra tef seed as well as encouraging improved access to institutional services for the same. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242652 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242652 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242652 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2259274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Andi Chairil Furqan Author-X-Name-First: Andi Chairil Author-X-Name-Last: Furqan Author-Name: Abdul Kahar Author-X-Name-First: Abdul Author-X-Name-Last: Kahar Author-Name: Rahma Masdar Author-X-Name-First: Rahma Author-X-Name-Last: Masdar Author-Name: Cinda Andriana Author-X-Name-First: Cinda Author-X-Name-Last: Andriana Author-Name: Fatiah Rahmaniyah Author-X-Name-First: Fatiah Author-X-Name-Last: Rahmaniyah Author-Name: Risma Risma Author-X-Name-First: Risma Author-X-Name-Last: Risma Title: Mechanism of incentives and accountability in rural institutions: Regional context in global dimensions of SDGS Abstract: This study aims to analyze the extent to which government incentives and village accountability contribute to village development in Indonesia. The achievement of the Village Development Index (VDI) consists of three dimensions: social resilience, economic resilience, and environmental resilience. These indicators align with the goals of achieving Sustainable Development Goals (SDGs). The research was conducted using village data from Central Sulawesi Province, Indonesia. The data were obtained from 303 villages and sourced from the Central Sulawesi Statistics Agency. The results of the study show that village accountability and government incentives through the village fund have a positive effect on VDI. This finding is consistent with the differences in VDI measurements using both VDI scores and status. After exploring the dimensions based on VDI, this study also found that accountability had an impact on social resilience and economic resilience, while government incentives contributed to social resilience and environmental resilience. However, village assistance does not appear to have made a significant contribution to village development, and it has also been found that village development in Indonesia has not been evenly distributed in terms of topography. This research provides new insights about the relationship between government incentives, village accountability, and the achievement of SDGs in the rural context. It proposes the formation of accountable villages as one of the strategies and indicators for achieving SDGs in the rural areas of Indonesia. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2259274 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2259274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2259274 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2260658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muoria Kamau Author-X-Name-First: Muoria Author-X-Name-Last: Kamau Author-Name: Ivivi J. Mwaniki Author-X-Name-First: Ivivi J. Author-X-Name-Last: Mwaniki Title: On a robust estimation of option-implied interest rates and dividend yields Abstract: In this paper, a simple no-arbitrage methodology to estimate option-implied interest rates and dividend yields simultaneously via a regression model is employed. Since the mean-based least squares estimation places equal weights on all data points making it sensitive to outliers, a robust median-based estimation approach is proposed. The proposed methodology is only valid for European options; consequently, an empirical analysis is conducted on options on the S & P 500 Index. Robust forward-looking model-free estimates of the risk-free interest rate and dividend yield, based exclusively on market prices of options, are thus obtained. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2260658 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2260658 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2260658 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2235117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hasan Mukhibad Author-X-Name-First: Hasan Author-X-Name-Last: Mukhibad Author-Name: Prabowo Yudo Jayanto Author-X-Name-First: Prabowo Author-X-Name-Last: Yudo Jayanto Author-Name: Risanda Alirastra Budiantoro Author-X-Name-First: Risanda Author-X-Name-Last: Alirastra Budiantoro Author-Name: Bayu Bagas Hapsoro Author-X-Name-First: Bayu Author-X-Name-Last: Bagas Hapsoro Author-Name: Aas Nurasyiah Author-X-Name-First: Aas Author-X-Name-Last: Nurasyiah Author-Name: Ayatulloh Michael Musyaffi Author-X-Name-First: Ayatulloh Author-X-Name-Last: Michael Musyaffi Title: Equity-based financing and risk in Islamic banks: A cross-country analysis Abstract: Equity-based financing (EBF) is an Islamic bank (IB) financing type that promotes justice, spirituality, and Islamic values. However, data shows that IBs still have low EBF. The researcher noted that with EBF, there is information asymmetry, agency problems and the potential for moral hazards, meaning EBF may be a risky type of transaction. This study aims to empirically show whether EBF is a risky transaction by looking at the role of EBF in non-performing financing (NPF), the z-score, and the return on average assets (ROAA). The research sample consisted of 54 IBs from 19 countries, with an observation period of 11 years (2009 to 2019). This study finds that EBF has a positive effect on NPF and does not affect the z-score and ROAA. The subsample test shows that EBF is riskier for large IBs than for small IBs. EBF has a positive effect on NPF and a negative one on ROAA for large IBs. In contrast, EBF has a negative effect on the z-score of small IBs. This research examines the robustness of these findings by employing other models as well as the generalised method of moment (GMM) to address any endogeneity problems. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2235117 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235117 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2246321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Anneke Maré Moolman Author-X-Name-First: Anneke Maré Author-X-Name-Last: Moolman Author-Name: Jaco Paulus Fouché Author-X-Name-First: Jaco Paulus Author-X-Name-Last: Fouché Author-Name: Verona Leendertz Author-X-Name-First: Verona Author-X-Name-Last: Leendertz Title: Sustainability reporting in pandemics: Theoretical development of guidelines for improved reporting Abstract: Given the pervasive effects that COVID-19 and previous pandemics had on companies, the purpose of this study was to develop pandemic-related sustainability reporting guidelines to improve corporate reporting. Pandemic-related reporting was found to be a necessary part of companies’ sustainability disclosure. However, this is not required by any South African or international sustainability framework scrutinised by the researchers. Literature proves the wide-ranging effects of pandemics on companies’ sustainability, though current reporting practices are lacking. The researchers consequently developed corporate reporting guidelines that specifically require and formalise pandemic-related disclosure, through applying grounded theory. With the lack of pandemic-related reporting requirements in existing corporate sustainability frameworks, this study is the first, according to the researchers’ knowledge, to propose corporate reporting guidelines to inform stakeholders of companies’ sustainability regarding pandemics. Framework setters could use these guidelines by incorporating it into existing reporting requirements. The guidelines serve to encourage pandemic-related disclosure by companies with a genuine interest in sustainability. Such disclosure would provide important information for stakeholders, especially given the recurring yet unprecedented nature of pandemics. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2246321 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2246321 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2270595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: J.C Sharmiladevi Author-X-Name-First: J.C Author-X-Name-Last: Sharmiladevi Title: Impact study of agricultural value added on foreign direct investment, economic development, trade openness for India following ARDL approach Abstract: This research aims to identify the impact of agriculture, forest and fishing value-added on international business, capital flow, and economic growth for India from 2000 to 2022, by examining short-term and long-term equilibrium using the Auto Regressive Distributive lag (ARDL) approach. Agriculture value added is taken as a dependent variable, and inward Foreign Direct Investment (FDI), stock of net FDI, economic growth and trade openness are taken as independent variables. Results indicate that there exists a long-term and short-term relationship between agriculture value added, economic growth and trade openness. Economic growth and trade openness have a statistically significant relationship with agricultural value added in the short and long run. Inward FDI and stock of FDI are not significant to agriculture value added. ARDL Bound test results indicate that there is a long-term cointegrating relation among the variables. The error correction term is also strong and significant (−13.96), suggesting resistance to shocks. Existing literatures coverage on agriculture and international business is scarce in the Indian context, and this research will be significant in that line. The results of this study resonate with the findings of a few studies conducted in other geographical areas, indicating the fact that the receptivity and absorptive capacity prevailing in an economy play a dominant role in receiving maximum benefits from inward capital flow leading to economic growth. This research reinstates that agriculture still influences economic growth in India. Openness is essential for creating a conducive atmosphere for economic development. The study also indicates the direction for future research. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2270595 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2270595 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2270595 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yawovi M. A. Koudalo Author-X-Name-First: Yawovi M. A. Author-X-Name-Last: Koudalo Author-Name: Moumbark Toure Author-X-Name-First: Moumbark Author-X-Name-Last: Toure Title: Does financial inclusion promote financial stability? Evidence from Africa Abstract: This study aims to examine the impact of financial inclusion on financial stability across 54 African countries. Using country-level data that spans a 20-year period from 2000 to 2020, the findings suggest a positive association between the level of account penetration and financial stability. This conclusion withstands several tests of robustness performed. Furthermore, the analysis identifies income inequality, political stability and financial openness as influential factors that may condition the relationship between financial inclusion and financial stability. The implications of our findings suggest the need for increased collaboration between regulatory and supervisory agencies in African countries to promote greater financial inclusion, as policies aimed at improving financial inclusion should have the potential to enhance financial stability. It should be noted, however, that the extent to which financial inclusion should be pursued in order to achieve these goals remains an open question that requires further investigation. Future research could also explore the key barriers to financial access, as identifying these obstacles would enable policymakers to set priorities for action and allocate resources more effectively. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2225327 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2225327 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2260243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Tran Thi Kim Oanh Author-X-Name-First: Tran Thi Kim Author-X-Name-Last: Oanh Author-Name: Diep Van Nguyen Author-X-Name-First: Diep Author-X-Name-Last: Van Nguyen Author-Name: Hoi Vu Le Author-X-Name-First: Hoi Vu Author-X-Name-Last: Le Author-Name: Khoa Dang Duong Author-X-Name-First: Khoa Dang Author-X-Name-Last: Duong Title: How capital structure and bank liquidity affect bank performance: Evidence from the Bayesian approach Abstract: This article analyzes the impact of capital structure and bank liquidity on the performance of commercial banks in Vietnam, a transition market in Asia. This research is unique because it is the first study to employ the Bayesian Estimation methods in banking studies. The data includes 463 annual bank-year observations from 37 commercial banks in Vietnam from 2003 to 2020. The Bayesian linear regressions indicate that a higher leverage ratio reduces ROA and ROE while positively empowering EPS. Our findings also document the positive impacts of bank funding liquidity on the performance of commercial banks in Vietnam. Our results are also robust even when employing the Generalized Least Squares estimations. While our results are consistent with the Pecking Order Theory and and prior literature, they do not align with the trade-off theory. Finally, our study contributes implications for policymakers and bank managers to develop the banking system sustainably. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2260243 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2260243 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2260243 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hong Mai Phan Author-X-Name-First: Hong Mai Author-X-Name-Last: Phan Author-Name: Thi Nhu Quynh Le Author-X-Name-First: Thi Nhu Quynh Author-X-Name-Last: Le Author-Name: Vu Duc Hieu Dam Author-X-Name-First: Vu Duc Hieu Author-X-Name-Last: Dam Author-Name: Manh Son Tran Author-X-Name-First: Manh Son Author-X-Name-Last: Tran Author-Name: Thi Hoai Linh Truong Author-X-Name-First: Thi Hoai Linh Author-X-Name-Last: Truong Author-Name: Quoc Anh Le Author-X-Name-First: Quoc Anh Author-X-Name-Last: Le Title: Herd behavior in Vietnam’s stock market: Impacts of COVID-19 Abstract: This paper investigates herd behavior in frontier Vietnamese stock markets under the impacts of COVID-19. Using models with two measures of return dispersions, we find that herd behavior does not exist in the three stock markets in extreme movements but in normal market conditions. Herding is more severe in two stock exchanges, HoSE and HNX, than in the OTC market UpCOM. Intentional herding is the main form and has been more intense in HoSE and HNX since the COVID-19 outbreak, while it is mainly significant in UpCOM in the pre-pandemic period. There is strong evidence of significant intentional herding on days of high volatility in UpCOM and HNX for all the timeframes, while considerable spurious herding on days with low volatility is found in UpCOM and HNX for all the examined periods except for the pandemic one. The evidence that herding was more pronounced during high volatility days in HoSE was relatively weak overall. Finally, pandemic uncertainty or government responses do not affect heightening or mitigating herd behavior, respectively. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266616 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266616 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266616 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Mohammed Ridwan Saani Author-X-Name-First: Mohammed Ridwan Author-X-Name-Last: Saani Author-Name: Abdul-Malik Abdulai Author-X-Name-First: Abdul-Malik Author-X-Name-Last: Abdulai Author-Name: Mubarik Salifu Author-X-Name-First: Mubarik Author-X-Name-Last: Salifu Title: Unemployment and remittances nexus in Ghana: The gender perspective Abstract: The present study aims at investigating the nexus between unemployment and remittances in Ghana, with a focus on the gender perspective. Using time-series data spanning from 1990 to 2021, the ARDL model is estimated. According to the findings, remittances, inflation, FDI, exports of goods and services, and gross capital formation all have a long-run association with the unemployment rate. Remittances positively correlate with unemployment in the long run. All else being equal, remittances in Ghana tend to also increase female unemployment in the long run. In the short run, while the contemporaneous coefficient is negative, the lagged remittance positively correlates with the unemployment rate in Ghana. The lagged remittance further positively correlates with female and male unemployment in the short run. Finally, we also found a mediating effect of GDP on remittances in reducing the unemployment rate in Ghana. The study therefore recommends that, for remittances to reduce unemployment in the short run, policymakers ought to incentivize deposits of remittances in Ghanaian banks using attractive interest rates. As a result, this might encourage savings, investment, and economic growth, which would eventually result in a decrease in the unemployment rate in the long run. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2243068 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243068 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2241222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Jianjiang Liu Author-X-Name-First: Jianjiang Author-X-Name-Last: Liu Author-Name: Jie Cheng Author-X-Name-First: Jie Author-X-Name-Last: Cheng Author-Name: Fidelis Ayangbah Author-X-Name-First: Fidelis Author-X-Name-Last: Ayangbah Title: Impact of China’s comprehensive financial reform pilot zone on digital transformation of manufacturing companies. Evidence from listed companies Abstract: The establishment of the pilot financial reform zone is aimed at promoting regional financial supply-side structural reform. By giving localities broader financial autonomy, local governments are incentivized to target the “pain points and blockages” in financial services to the real economy, thus having a significant impact on the development and transformation of micro enterprises. Based on micro data of A-share listed manufacturing enterprises in Shanghai and Shenzhen from 2010–2021, this paper uses the double difference method (DID) to explore the impact of the establishment of a comprehensive financial reform pilot zone on the digital transformation of micro manufacturing enterprises and its mechanism. The results found that the pilot zone of comprehensive financial reform significantly improved the digitalization of manufacturing enterprises. Specifically, it effectively promotes the digital transformation of enterprises by reducing their financing costs and promoting their physical investment levels. In particular, it has had a stronger positive impact on the digital transformation of non-state-controlled enterprises, competitive enterprises, and labor-intensive and technology-intensive manufacturing enterprises. The results of the present study can provide a reference experience for other regions to carry out financial reforms to serve the transformation and upgrading of enterprises. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2241222 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241222 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2235827_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Gladys A. Abindaw Nabieu Author-X-Name-First: Gladys A. Author-X-Name-Last: Abindaw Nabieu Author-Name: Michael Minlah Author-X-Name-First: Michael Author-X-Name-Last: Minlah Author-Name: David Mensah Author-X-Name-First: David Author-X-Name-Last: Mensah Title: Public debts, fiscal balance and sustainability: What can African governments learn from debt sustainability models? Abstract: This paper examines the impact of public debt on fiscal balance. This study uses the standard debt equation in a fiscal reaction and impulse response functions framework to assess the trajectory of public debt and its sustainability within the Sub-Sahara region from 1980–2017. From the estimations of the fiscal reaction function, the lagged primary balance significantly affects the fiscal deficits of Sub-Saharan African countries. Also, public debts to the gross domestic product beyond a threshold of fifty percent are positive and significantly associated with the primary balance. Fiscal deficits contribute to increases in the debt stock of about 120% over the ten-year for the Sub-Sahara region. The results imply that fiscal governance is required to constrict fiscal deficits whenever debt stock levels approach a certain threshold and growth. Therefore, stakeholders should implement enhanced fiscal policy rules on fiscal balance, public debts, and economic growth to improve debt sustainability. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2235827 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235827 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2250632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Daniel Otieno Jabuya Author-X-Name-First: Daniel Author-X-Name-Last: Otieno Jabuya Author-Name: Fredrick Odhiambo Sule Author-X-Name-First: Fredrick Odhiambo Author-X-Name-Last: Sule Author-Name: Michael Jairo Ndwiga Author-X-Name-First: Michael Jairo Author-X-Name-Last: Ndwiga Title: The effect of agricultural trade openness on economic growth in the East African Community Abstract: The study examined the effects of agricultural trade openness on economic growth in the EAC. We empirically analyzed the issue in five countries from 2000 to 2021. Panel data estimation methods were used in the study. The variables were found to be integrated of order one and zero. There was presence of cointegration, cross-sectional heterogeneity and cross-sectional dependence. The CS-ARDL results revealed that agricultural trade openness and economic growth enjoyed a long-run relationship. The empirical results indicated that the effect of agricultural trade openness on economic growth was positive and significant in the long run. Bootstrap panel granger causality analysis was applied in testing the nature and direction of causal relationships between variables. The results indicated that a unidirectional causal relationship existed between agricultural trade openness and economic growth. This implies that an increase in trade openness promotes economic growth. Based on the findings of the study, we recommend that strategies aimed at promoting trade openness should be complemented with strong policies to enable EAC countries to reap more growth benefits associated with open trade. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2250632 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2250632 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Lilik Sugiharti Author-X-Name-First: Lilik Author-X-Name-Last: Sugiharti Author-Name: Miguel Angel Esquivias Author-X-Name-First: Miguel Angel Author-X-Name-Last: Esquivias Author-Name: Mohd Shahidan Shaari Author-X-Name-First: Mohd Shahidan Author-X-Name-Last: Shaari Author-Name: Ari Dwi Jayanti Author-X-Name-First: Ari Dwi Author-X-Name-Last: Jayanti Author-Name: Abdul Rahim Ridzuan Author-X-Name-First: Abdul Rahim Author-X-Name-Last: Ridzuan Title: Indonesia’s poverty puzzle: Chronic vs. transient poverty dynamics Abstract: Indonesia has lowered the total poverty rate by less than 10%. Earlier poverty measurements in Indonesia suggest that transient poverty is more prevalent. We argue that, when employing the Equally Distributed Equivalent (EDE) approach and disaggregated poverty lines, chronic poverty is more prevalent than transient poverty. We estimated chronic and transient poverty in Indonesia from 2007 to 2014 by employing a large longitudinal dataset and disaggregated poverty line measures at the district level. The empirical results are robust in various groups based on education, gender, marital status, location (urban-rural), and employment characteristics (status, farming and non-farming, type, and sector). The results indicate that chronic poverty accounts for at least two-thirds of total poverty. Poverty gaps based on education, regional location, gender, and employment are significant. Moreover, we assess whether poverty is linked to socioeconomic aspects and policy programs using quantile regression. The findings indicate that gender (female), age, number of household members, and household location are positively related to higher poverty and chronic poverty. Household head deaths and physical disabilities are positively associated with poverty. Although the urban-rural poverty gap has decreased, casual workers remain prone to poverty. Moreover, poverty is negatively linked to educational attainment, access to financial, transportation, and communication services, suggesting that improving these aspects may help reduce poverty. Social aid programs that support health, food assistance, education, and conditional cash transfers are negatively linked to both total and chronic poverty. Energy subsidies were not associated with lower levels of poverty. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267927 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267927 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230725_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Apriani Dorkas Rambu Atahau Author-X-Name-First: Apriani Author-X-Name-Last: Dorkas Rambu Atahau Author-Name: Imanuel Madea Sakti Author-X-Name-First: Imanuel Author-X-Name-Last: Madea Sakti Author-Name: Alliny Namilana Rambu Hutar Author-X-Name-First: Alliny Author-X-Name-Last: Namilana Rambu Hutar Author-Name: Andrian Dolfriandra Huruta Author-X-Name-First: Andrian Author-X-Name-Last: Dolfriandra Huruta Author-Name: Min-Sun Kim Author-X-Name-First: Min-Sun Author-X-Name-Last: Kim Title: Financial literacy and sustainability of rural microfinance: The mediating effect of governance Abstract: This research aims to examine the mediating role of microfinance governance in the relationship between financial literacy and microfinance sustainability. The research used the purposive sampling method to collect data from the Women Farmers Group (WFG) “Tapa Walla Badi” in Mbatakapidu village, East Sumba, Indonesia. The survey was conducted from November through December 2021 with the valid sample for analysis was 200 questionnaires. The Partial Least Squares-Structural Equation Model (PLS-SEM) was used for analysis. The bootstrapping and the Sobel test were required for a better understanding of the findings. Robust test and focus group discussion (FGD) made our methodology more reliable. The findings show that financial literacy plays an important role in the transformation of rural microfinance institutions (MFIs). Financial literacy works positively on the sustainability of rural microfinance via governance. Age, gender, education, and employment situation were taken into account in financial literacy. This research provides a comprehensive view to policymakers in developing rural MFIs, thus implies the urgency to promote financial literacy and improve governance structures within MFIs. The local government may create pro-financial inclusion policies that support sustainable MFIs by implementing financial literacy curriculum in formal and non-formal education. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230725 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230725 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2243709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: M. Azeem Author-X-Name-First: M. Author-X-Name-Last: Azeem Author-Name: Nisar Ahmad Author-X-Name-First: Nisar Author-X-Name-Last: Ahmad Author-Name: Safyan Majid Author-X-Name-First: Safyan Author-X-Name-Last: Majid Author-Name: Jamshaid Ur Rehman Author-X-Name-First: Jamshaid Author-X-Name-Last: Ur Rehman Author-Name: Bilal Nafees Author-X-Name-First: Bilal Author-X-Name-Last: Nafees Title: Corporate governance, financial constraints, and dividend policy: Evidence from Pakistan Abstract: Information asymmetry between insiders and outsiders creates various issues for a firm, such as the agency problem where managers pursue their own interests even at the cost of the well-being of the firm’s shareholders, and probable external financial constraints where external investors discount risk by causing a surge in the cost of financing. Normally, a firm manages the issues of the agency problem and external financing constraints by omitting or initiating dividend payments. Therefore, this study investigated the impact of corporate governance on dividend policies in the presence of financial constraints using a sample of 139 non-financial firms listed on PSE, where a weak regulatory framework generates agency problems and the underdevelopment of the financial sector causes financing constraints for businesses. The results reveal that, in Pakistan, dividends are an Outcome of governance practices. As the quality of firm-level governance improves, shareholders are provided with the legal strength to ultimately force firm managers to pay dividends. Along with the agency problem, the availability of external financing is an important factor related to dividend payment decisions in Pakistan. When a company is confronted with agency problems and financial constraints simultaneously, managers try to avoid costly external financing rather than reducing the agency’s problem. The results of the study can be further refined by enhancing the study period and sample size. Furthermore, the work can be extended by classifying sample subjects to the nature of industry and group ownership. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2243709 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243709 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2233773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Awadh Saeed Bin-Dohry Author-X-Name-First: Awadh Saeed Author-X-Name-Last: Bin-Dohry Author-Name: Hanita Kadir Shahar Author-X-Name-First: Hanita Kadir Author-X-Name-Last: Shahar Author-Name: Sharmilawati Sabki Author-X-Name-First: Sharmilawati Author-X-Name-Last: Sabki Title: Destination choice of the dual listing decision: The case ASEAN-5 firms Abstract: ASEAN authorities took several steps to facilitate firms’ dual listing decisions within their region. However, more than three quarters of ASEAN-5 firms chose to list in European markets, which raises the need for further investigation to assess the determinants of destination choice decisions. Therefore, this study aims to evaluate the determinants of firms’ destination choice decisions. The logistic model has been employed in this study to evaluate the firms’ destination choice and uncover the determinants that drive the dual listing destination choice decision between Europe and the US. The study collected data on firms from the ASEAN-5 countries for the period of 2003–2017. The study’s findings showed that the higher the home country’s trade openness, the lower the number of firms pursuing a dual listing in European markets. Meanwhile, the greater the openness to FDI, the more likely it is that firms will seek to list in European markets. In addition, European markets are considered the main destination for firms characterized by low ownership concentration and high stock volatility. On the other hand, the US markets are the main choice for firms that originated from countries with low trade openness and high FDI openness, as well as for firms that are described as having high ownership concentration and low stock volatility. The current study has provided information to the authorities, investors, and market makers on the relationship between the abovementioned determinants and destination choice decisions, specifically for firms from the ASEAN-5 countries. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2233773 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2233773 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2268804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hakan Altin Author-X-Name-First: Hakan Author-X-Name-Last: Altin Title: Does wealth bring happiness? Abstract: The main purpose of this study is to determine the relationship between wealth and happiness. The study, which uses the 2023 World Happiness Report, uses data from 74 countries. For this purpose, three static and two dynamic models are estimated in a panel data environment. According to all three models, wealth is a factor of happiness. However, happiness cannot be explained by a single wealth factor. Wealth is the fourth-factor explaining happiness. It is seen that the effect of wealth on happiness is limited. There are other important factors affecting happiness. What is certain is that there is a relationship between wealth and happiness. The strength of this relationship is different for different countries and different cultures. In addition, different benchmarks and different research methods lead to different results. The first task for governments, companies and individuals is identifying the factors explaining happiness. The second is to develop policies related to these factors. The third is to achieve social consensus. In conclusion, there is a need for more research on the relationship between wealth and happiness. Existing studies provide important information to the parties involved in understanding this relationship. Thus, they contribute to a happier world. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2268804 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268804 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2268804 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2239032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Bashar Yaser Almansour Author-X-Name-First: Bashar Yaser Author-X-Name-Last: Almansour Author-Name: Sabri Elkrghli Author-X-Name-First: Sabri Author-X-Name-Last: Elkrghli Author-Name: Ammar Yaser Almansour Author-X-Name-First: Ammar Yaser Author-X-Name-Last: Almansour Title: Behavioral finance factors and investment decisions: A mediating role of risk perception Abstract: Modern finance theory assumes that the stock market is efficient, and stock prices reflect all available information. However, behavioral finance theory argues that stock prices can be influenced by psychological and emotional factors. This study aims to examine the impact of behavioral finance factors on investment decisions in the Saudi equity markets through the mediating variable of risk perception. An online questionnaire was distributed to 150 individual investors, out of which 134 were returned and ready for analysis. The data is analyzed using structural equation modeling (SEM). The results show that herding, disposition effect, and blue chip bias have a significant positive impact on risk perception. Overconfidence has a significant positive effect only on investment decision making, but not on risk perception. Risk perception is found to be significantly positively related to investment decision making. All four behavioral finance factors have a significant positive indirect effect on investment decision making through risk perception. This study is conducted in a particular cultural context, namely Saudi Arabia, and may not be generalizable to other cultural contexts. Moreover, this study focused only on four behavioral finance factors, and there may be other factors that could impact risk perception and investment decision making. The results highlight the importance of considering an individual’s perception of risk when making investment decisions, as it can significantly impact their willingness to take risks and ultimately affect the performance of their investment portfolio. The results suggest the need for investors to consider their behavioral biases and for advisors and policymakers to develop strategies to mitigate their impact. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2239032 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2239032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2239032 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2238377_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Vilija Aleknevičienė Author-X-Name-First: Vilija Author-X-Name-Last: Aleknevičienė Author-Name: Karolina Vilimaitė Author-X-Name-First: Karolina Author-X-Name-Last: Vilimaitė Title: Effect of ownership structure on dividend payments: Evidence from public companies in Nordic and Baltic Countries Abstract: We investigate whether ownership structure influences the likelihood and amount of dividend payments in two groups of European Union’s public companies: Nordic and Baltic. Nordic and Baltic capital markets have become increasingly integrated through Nasdaq OMX stock exchanges and harmonized by the EU corporate governance directives. However, some differences in the corporate governance system, legislation, practice, and ownership structure still exist. The study covers Nordic and Baltic companies listed on the Nasdaq OMX for the period 2013–2020. Logit and Tobit panel regressions are applied to disclose the effect of ownership structure on the likelihood and amount of dividend payments accordingly. We find that ownership concentration positively influences the likelihood and amount of dividend payments in Nordic public companies. Managerial ownership does not influence the likelihood of dividend payments but positively influences their amount. Institutional ownership does not influence the likelihood of dividend payments but negatively influences their amount. Our findings revealed that ownership structure does not have any effect either on the likelihood of dividend payments or on their amount in Baltic public companies. We disclosed that the effect of ownership structure on dividend payments is influenced by the context behind ownership structure. The results of our research will improve understanding and predict the decision-making on dividend payments and will help investors manage their portfolios, choosing between current and future consumption. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2238377 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2238377 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2238377 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2225915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Moses Segbenya Author-X-Name-First: Moses Author-X-Name-Last: Segbenya Author-Name: Nana Yaw Oppong Author-X-Name-First: Nana Yaw Author-X-Name-Last: Oppong Author-Name: Emmanuel Arthur Nyarko Author-X-Name-First: Emmanuel Arthur Author-X-Name-Last: Nyarko Author-Name: Sally Abena Baafi-Frimpong Author-X-Name-First: Sally Abena Author-X-Name-Last: Baafi-Frimpong Title: Demographic characteristics and employability skills among tertiary graduates in Ghana: Evidence from the National Service Scheme Abstract: This study examined the effect of demographic characteristics on graduates’ perceptions of employability skills in Ghana. Three demographic characteristics—gender, educational level and sector of national service were used against nine employability skills. The explanatory sequential design from the pragmatists’ philosophical paradigm was adopted for the study. A sample of 2269 national service persons and 363 employers at workplaces where graduates had their national service was drawn from a study population of 77,962. Thirty participants, including 17 graduates and 13 employers, were also interviewed. Data were collected with the help of a questionnaire and a semi-structured interview guide. Data were analysed with descriptive and inferential statistics such as means, standard deviations, Pearson correlation matrix and independent sample t-test. The study found three most important employability skills to employers: the ability to work under pressure with less supervision, the application of computer and technical skills, and processing and interpreting numerical data. A novel finding of the study was that gender and academic qualification were found to have significantly influenced the application of computer and technical skills, numerical data, ability to work under pressure, and entrepreneurial skills. Male graduates had more appreciation for mathematical and information and communication technology (ICT)-related employability skills, while female graduates had a more positive inclination towards emotional intelligence skills and written and verbal communication skills. It was recommended that more attention be given to a partnership between academic institutions, the national service secretariat and the industry to avoid a mismatch between employability skills acquired by graduates and employers’ requirements. The findings of this study, therefore, have implications for teaching pedagogies at tertiary levels and training for job entrants by industry. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2225915 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2225915 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Precious T Phiri Author-X-Name-First: Precious T Author-X-Name-Last: Phiri Author-Name: Freddy Ruzhani Author-X-Name-First: Freddy Author-X-Name-Last: Ruzhani Author-Name: Faustino Madzokere Author-X-Name-First: Faustino Author-X-Name-Last: Madzokere Author-Name: Pamela Madududu Author-X-Name-First: Pamela Author-X-Name-Last: Madududu Title: Factors affecting the profitability of smallholder broiler production in Mutare district, Manicaland Province, Zimbabwe: A quantile regression approach Abstract: Small-scale broiler farming has become one of the fastest-growing sub-sectors in Zimbabwe. However, the profitability levels of these small ventures have been questioned due to the rising production costs owing to the highly inflationary macroeconomic environment. Using a sample of 110 small-scale broiler producers selected using the exponential non-discriminative snowballing sampling method, the paper analysed the factors affecting these farmers’ profitability. Gross margin analysis and quantile regression were used to analyse the data. We found that, although feed costs constituted 56.8% of the total variable costs, small-scale broiler production is a profitable venture in the area with a mean gross margin of US$ 65.25 per batch of 100 broilers and a return per dollar variable costs invested of $ 1.15. Training on broiler production, farming experience, level of education, access to extension services, access to credit and household size significantly determine the profitability of the broiler enterprise at various quantiles, with only training affecting profitability at all three quantiles. All these factors are essential contributing factors to the profitability or lack thereof of small-scale broiler production in Mutare district. We recommend that training programs on effective broiler production be offered to small-scale farmers in the Mutare district. The government and non-governmental organisations should also develop small loan packages that can assist the farmers in improving their production levels and profits. Government extension workers should be more visible and accessible to the farmers in peri-urban areas to positively influence their profitability levels. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242660 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242660 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242660 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2228092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Nayef AlShammari Author-X-Name-First: Nayef Author-X-Name-Last: AlShammari Author-Name: John Willoughby Author-X-Name-First: John Author-X-Name-Last: Willoughby Author-Name: Mariam S. Behbehani Author-X-Name-First: Mariam S. Author-X-Name-Last: Behbehani Title: Political unrest, the Arab Spring, and FDI flows: A quantitative investigation Abstract: The Middle East region is recognized by observers as one of the most politically unstable areas worldwide. Due to the significant growth of foreign direct investment in the MENA region during the period before the recent political turmoil, this study empirically tests the impact of these political disturbances on foreign direct investment over time across Arab Spring countries. The study uses panel techniques to estimate the regression models by applying pooled OLS, fixed effect, and random effect. In addition, the Hausman test is used in order to choose the appropriate estimated model between fixed effects and random effects. The sample covers five countries in the MENA region that experienced the Arab Spring uprising during the period (2011–2014). The whole yearly data set ranges from 1980 to 2014. The data describes the periods before and during the Arab Spring turmoil (2011–2014). According to the appropriate fixed effect approach, results show that the economic, social, and political factors are all crucial contributors to FDI movements and volumes in Arab Spring countries. Interestingly, the Arab Spring era plays a very important role in the deterioration of FDI in these countries. The movement of FDI in the Arab Spring region is related to episodes of political instability. This political unrest has created an adverse impact on foreign investment, and this indicates a lack of trust of potential international investors. This study also confirms that other economic and social factors are significant contributors to FDI in the MENA region. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2228092 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2228092 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Sasatra Sudsawasd Author-X-Name-First: Sasatra Author-X-Name-Last: Sudsawasd Author-Name: Taweechai Charoensedtasin Author-X-Name-First: Taweechai Author-X-Name-Last: Charoensedtasin Author-Name: Nuttawut Laksanapanyakul Author-X-Name-First: Nuttawut Author-X-Name-Last: Laksanapanyakul Author-Name: Piriya Pholphirul Author-X-Name-First: Piriya Author-X-Name-Last: Pholphirul Title: Modelling the overall impacts of COVID-19 on the Thai economy Abstract: Given that estimating the comprehensive and precise impacts of the COVID-19 crisis is challenging, this paper aims to quantify the overall impacts of the COVID-19 on Thai economy both at the macroeconomic and household levels. Our finding indicates that if government supports are not implemented, the country’s GDP could fall by 13.66 percent—the most important transmission channels of this severe impact coming from inbound and domestic tourism demand shocks. The pandemic has also significantly increased the level of poverty in Thailand. And those people facing the greatest risk of falling into poverty tend to be those living in urban areas, especially in metropolitan Bangkok, as well as those whose head of household is working in the tourism sector. In exploring the effectiveness of the mitigation measures implemented by the Thai government, our findings also show that such mitigation measures could successfully help lower the numbers of poor and almost poor people to below those of the Pre-COVID-19 era. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242171 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242171 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Denis Nfor Yuni Author-X-Name-First: Denis Nfor Author-X-Name-Last: Yuni Author-Name: Leseko S. Makhetha Author-X-Name-First: Leseko S. Author-X-Name-Last: Makhetha Author-Name: Sylvester Lelimo Author-X-Name-First: Sylvester Author-X-Name-Last: Lelimo Title: Analyzing the relationship between Industrialization and economic growth in Lesotho Abstract: The recent twin crises of the COVID-19 pandemic and the Russia-Ukraine war have caused global economic effects, with gross variation, across countries. Evidently, higher self-sufficient economies with more effective economic performances faired relatively better with these shocks. This calls for policymakers to revisit the drivers of growth with a specific interest in sectors or tools wherein they seem to have a comparative advantage. Industrialization becomes imperative for Lesotho and inspires this study’s interest in analyzing its relationship with economic growth. Surprisingly, existing empirical literature shows heterogonous outcomes on the relationship between Industrialization and economic growth and sometimes contradicts the expected positive relationship in theories. This study employs the Auto Regressive Distributed Lag (ARDL) model, to test the dynamic effect of Industrialization on economic growth for a unique case study—Lesotho. Additionally, this study employs the nonlinear ARDL to investigate the existence of asymmetry in the model. The time span from 1981 to 2020. The findings show that industrial development has significantly impacted the economic growth of Lesotho in the short and long run. And there exists no significant asymmetry in the short and long run. This provides empirical evidence for policymakers to intensify efforts in promoting Industrialization in Lesotho. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2285620 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285620 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242731_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Abdul-Azeez Sani Baraya Author-X-Name-First: Abdul-Azeez Sani Author-X-Name-Last: Baraya Author-Name: Rossanto Dwi Handoyo Author-X-Name-First: Rossanto Dwi Author-X-Name-Last: Handoyo Author-Name: Kabiru Hannafi Ibrahim Author-X-Name-First: Kabiru Hannafi Author-X-Name-Last: Ibrahim Author-Name: Ahmed Abdulfatahi Yusuf Author-X-Name-First: Ahmed Abdulfatahi Author-X-Name-Last: Yusuf Title: Determinants of households’ energy consumption in Kebbi State Nigeria Abstract: This study aims to scrutinize the determinants of household energy consumption needs in Kebbi State, Nigeria. The data for the study were sourced from household heads within the study area. The paper analyzes the determinants of household energy consumption using six energy consumption indicators (household expenditure on energy, electricity, LPG, kerosene, charcoal, and biomass). To analyze the data, the study used descriptive statistics and binary logistic regression (which has rarely been used in this kind of study) which broaden our understanding of social, economic, and environmental perspectives on energy usage. Our empirical strategy indicates that all the instruments used are appropriate based on Cronbach’s alpha scale value of greater than 0.9. Education level was found to be a significant factor in energy expenditure by household, electricity, LPG, and kerosene usage, while negatively correlated with biomass usage. A binary logit regression model revealed that household head income, availability of different energy choices, reliability, and affordability are the major determinants of household energy consumption needs. Findings further show that low-income household heads which account for more than 60% of the respondents rely heavily on the traditional methods of biomass to meet their energy needs. The finding further revealed that 72.80% of the respondents confirmed that accessibility is one of the driving forces which determines their energy choice. Based on the findings, the study therefore, recommends the need to ensure the availability and affordability of safer forms of energy as well as invest more in making renewable energy available and affordable. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242731 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242731 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2288466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Astewel Takele Author-X-Name-First: Astewel Author-X-Name-Last: Takele Author-Name: Assefa A. Birhanu Author-X-Name-First: Assefa A. Author-X-Name-Last: Birhanu Author-Name: Beneberu A. Wondimagegnhu Author-X-Name-First: Beneberu A. Author-X-Name-Last: Wondimagegnhu Author-Name: Tirusew A. Ebistu Author-X-Name-First: Tirusew A. Author-X-Name-Last: Ebistu Title: The impact of watershed development on food security status of farm households: Evidence from Northwest Ethiopia Abstract: Watershed development is part of a poverty reduction and environmental conservation initiative in Ethiopia. The study evaluates the impact of project-supported and community-based watershed development (WSD) interventions on households’ food security status and identifies the factors that affect WSD participants. A propensity score matching (PSM), a household food balance model (HFBM), a geographic information system (GIS), and a Digital Elevation Model (DEM) were employed to analyze data. The PSM model result revealed that participation in a project-supported WSD had a more significant effect on household food security than the community-based WSD. The average treatment effect for the treated (ATT) was 3845.02 Kcal, while the average treatment effect for the control group (ATE) was 3037.85 Kcal, depicting a significant difference between them. Changes in land use and land cover in the study watersheds imply that agricultural and degraded land patterns decreased, whereas grazing land, bushland, wetland, and plantation land patterns have increased in project-supported watersheds over the study period. On one hand, the main socio-economic drivers that positively impacted the food security status of the WSD participation were land size, credit access, livestock ownership, and training. On the other hand, market distance and distance from farmers’ training centers have a significant and negative impact on the status of the households’ food security. The study concludes that project-initiated WSD intervention has a crucial impact on achieving household food security. Priority should be also given to increasing the productivity of land, increasing access to credit services, improving livestock ownership, and providing veterinary services. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2288466 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2288466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2288466 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2261798_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Ferdinand Ahiakpor Author-X-Name-First: Ferdinand Author-X-Name-Last: Ahiakpor Author-Name: Ralph Nordjo Author-X-Name-First: Ralph Author-X-Name-Last: Nordjo Author-Name: Samuel Erasmus Alnaa Author-X-Name-First: Samuel Erasmus Author-X-Name-Last: Alnaa Title: Financial development and growth: Evidence from Bayesian Modelling Abstract: This paper examines the nexus between financial development and economic growth in Ghana between 1970 and 2020. The study adopted the Bayesian Model Averaging (BMA) techniques to address issues of model uncertainty due to many potential explanatory variables that could influence growth. The study revealed that credit to the private sector, gross domestic savings, inflation rate, labour force participation, current account balance and population growth as key promoters of growth. Therefore, there is the need to address cost of doing business and promote increased credit delivery to the private sector. The direct association between financial development and growth indicates the need for policy makers to implement measures such as provision of legal environment for efficient allocation of credit to the private sector and provide the environment for the establishment of more financial institutions to enhance the growth of the financial sector. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2261798 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2261798 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2251800_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Anthony Ennin Author-X-Name-First: Anthony Author-X-Name-Last: Ennin Author-Name: Emmanuel A. Wiafe Author-X-Name-First: Emmanuel A. Author-X-Name-Last: Wiafe Title: The impact of mining foreign direct investment on economic growth in Ghana Abstract: This paper investigates the impact of mining foreign direct investment on economic growth in Ghana using quarterly time series data from 1996–2015. The study employs the Autoregressive Distributed Lag bounds testing approach to cointegration and the error correction model to investigate the existence of a long-run and short-run equilibrium relationship between foreign direct investment into the mining sector and economic growth. The study established that foreign direct investment into the mining sector hurts economic growth in Ghana in the long run but a positive in the short run. The study also finds that private sector credit, capital stock, government spending, and labour participation rate have a statistically significant positive relationship with economic growth in the long run. Trade openness exhibited a statistically significant negative long-run relationship with economic growth, while inflation had a positive but insignificant impact on economic growth for the study period. The study recommends that government should encourage research and development in the mining sector and align mining and other environmental policies to ensure sustainable growth. It is further recommended that government tactfully provide investment incentives to ensure the development of other sectors to avoid the Dutch disease. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2251800 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251800 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2266318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Saif Ullah Author-X-Name-First: Saif Author-X-Name-Last: Ullah Author-Name: Haitham Nobanee Author-X-Name-First: Haitham Author-X-Name-Last: Nobanee Author-Name: M. Ali Kemal Author-X-Name-First: M. Ali Author-X-Name-Last: Kemal Title: Corporate governance and default probability: The moderating role of bank’s efficiency Abstract: There is a need to explore the moderating role of banks’ efficiency in the relationship between corporate governance (CG) and default probability in Pakistan. Such attention is required due to poor bank governance, which threatens banks’ stability. This empirical study’s objective is to ascertain the impact of CG on bank default probability by considering banking efficiency as a moderating factor for the period spanning 2012–2020 by using secondary data from banks in Pakistan. The results, estimated using System GMM regression—whose robustness was confirmed through Driscoll and Kraay’s standard error approach findings—show a significant relationship between banks’ CG and bank efficiency. Banks’ better CG practices will improve bank efficiency toward financial soundness in Pakistan. Moreover, the current study puts forth certain implications, i.e. that the banks still need to improve the mechanism they use to implement corporate governance attributes to compete properly on the international stage. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2266318 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266318 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2252652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Astrid Maharani Author-X-Name-First: Astrid Author-X-Name-Last: Maharani Author-Name: I Made Narsa Author-X-Name-First: I Made Author-X-Name-Last: Narsa Title: Six-factor plus intellectual capital in the capital asset pricing model and excess stock return: Empirical evidence in emerging stock markets Abstract: This study expands previous research by adding intellectual capital to the capital asset pricing model and deepening the measurement of intellectual capital using more comprehensive proxies. This study is novel in that it is related to evaluation according to market developments using tests on potential factors in the asset pricing model by adding intellectual capital variables. Intangible assets have the explanatory and predictive power of size and value strategies in predicting returns. This study uses a sample of all industries from all companies listed on the Indonesia Stock Exchange during 2012–2022; the sample totals 5767 firm-years. The results show a significant relationship between the six-factor capital asset pricing model, intellectual capital, and excess stock returns. The robustness test supports these findings, suggesting that intellectual capital performs better financially as an intangible asset. This study contributes to the literature regarding the role of intellectual capital in the capital asset pricing model, which can be helpful when making investment decisions in emerging stock markets. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2252652 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2252652 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2252652 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2290371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Tsegamariam Dula Author-X-Name-First: Tsegamariam Author-X-Name-Last: Dula Author-Name: Jemil Yasin Author-X-Name-First: Jemil Author-X-Name-Last: Yasin Author-Name: Haymanot Meseret Author-X-Name-First: Haymanot Author-X-Name-Last: Meseret Author-Name: Abrham Seyoum Author-X-Name-First: Abrham Author-X-Name-Last: Seyoum Title: Determinants of inequalities in welfare among households in Ethiopia: A comparative study of urban and rural Ethiopia Abstract: This study aims to investigate welfare inequality between households in rural and urban Ethiopia using secondary data obtained from the Living Standards Measurement Surveys (LSMS) available on the World Bank website. The data was analyzed using the Atkinson Index to identify welfare inequality among households and quantile regression to identify determinants of welfare inequality in rural and urban Ethiopia. The results show that the Atkinson index for the rural group is 0.123006, while it is 0.110899 for the urban group, indicating a higher level of welfare inequality in rural areas. Furthermore, the quantile regression analysis reveals that among the factors measured, the number of assets, access to health services, and saving are important determinants of welfare inequality in rural households. On the other hand, the number of livestock and household size are found to be significant factors contributing to welfare inequality in urban areas. This study provides valuable insights into the specific drivers of welfare inequality in both rural and urban settings and can inform policymakers on how to address these inequalities to promote social and economic development in Ethiopia. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2290371 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290371 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2290371 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2254579_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Gaurav Gairola Author-X-Name-First: Gaurav Author-X-Name-Last: Gairola Author-Name: Kushankur Dey Author-X-Name-First: Kushankur Author-X-Name-Last: Dey Title: Moderators of pricing and willingness to pay for parametric weather risk mitigants in agriculture: An integrative review, conceptual framework, and research agenda Abstract: The agriculture sector observed the penetration of parametric weather risk financial products, including weather index insurance and weather derivatives, between the late 1990s and the early 2000s. However, the adoption of such products remains low. While the reasons for low adoption are mentioned in the extant literature, there is a lack of a theoretical framework that captures the moderators accelerating and inhibiting pricing structure and willingness to pay for parametric weather risk mitigants in agriculture. Also, the extant literature does not adequately explain the relationships or interdependencies between pricing structure and willingness to pay for parametric weather risk mitigants. This study bridges this gap by performing an integrative literature review. The review integrates the bibliometric analysis and systematic literature review and categorizes the extant literature into five focal areas: (1) weather analytics capability; (2) design, pricing, and testing; (3) users’ criteria for adoption; (4) prototyping; and (5) product efficacy of weather risk mitigation. A conceptual framework evolved from the review classifies the moderators into accelerants and inhibitors of pricing and willingness to pay. The framework hypothesizes that product design, contract specifications such as tick size and strike levels, hedge effectiveness, and instrument adoption have a recursive interaction with the willingness to pay and pricing structure. Future research directions guided by the proposed framework can motivate scholars and practitioners to explore the scope of bundling parametric (index) insurance and weather derivatives as a standalone product to enhance adoption. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2254579 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254579 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2254579 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2269806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Ovikuomagbe Oyedele Author-X-Name-First: Ovikuomagbe Author-X-Name-Last: Oyedele Author-Name: Sheriffdeen Adewale Tella Author-X-Name-First: Sheriffdeen Adewale Author-X-Name-Last: Tella Title: Environmental quality and health outcomes in sub-Saharan Africa- A panel econometric approach on the role of forest investment Abstract: Beyond the economic support in terms of food, fuelwood, charcoal, wood, and timber supplies that investment towards forest environments provides, its contribution to environmental quality could also provide health benefits. Using data from 16 selected sub-Saharan African countries from 2002 to 2016, this study examined the effect of environmental quality on health outcomes with specific consideration for forests. Employing different panel estimation methods for robustness and conducting a sub-sample estimation for sensitivity analysis, the results showed that forest expansion initially seemed to worsen health outcomes; however, after a turning point, it ultimately improved health outcomes as shown by its reduction effect on under-five mortality and its increasing effect on life expectancy at birth. Policies towards improving population health should consider forest expansion and conservation reforms. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2269806 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2269806 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2283992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Yekin Ahmed Ali Author-X-Name-First: Yekin Ahmed Author-X-Name-Last: Ali Title: Does real exchange rate matter better than trade volumes in triggering labour productivity growth? Evidence from Ethiopia Abstract: The trade-growth relation remains one of the controversies unsettled to this date. We test this hypothesis taking Ethiopia as a case study. Ethiopia is a developing economy aspiring to achieve a middle-income level, yet its labour force remains one of the least productive. The study draws on data between 1950 and 2019 to explore the impacts of exports, imports, capital, and the real exchange rate on labour productivity growth of Ethiopia. The Dynamic Ordinary Least Square results reveal mixed results across the time periods. In the long- run, the real exchange rate and imports positively influence labour productivity growth while exports have a negative effect, and the short-run effects of capital and imports are negative but exports have a positive impact. The multivariate Granger-causality analysis shows that: in the long-run, the real exchange is exogenous, and capital, exports, and imports have two-way causal relationships with labour productivity. In the short- run, only capital Granger—causes labour productivity, and the reverse causation runs from labour productivity to exports and to the real exchange rate. The Variance Decomposition analysis demonstrates that the real exchange rate stands out as a macroeconomic policy variable stimulating not only productivity growth but also capital, exports, and imports. To improve the productivity of labour force, it is suggested that Ethiopia adopts a prudent trade policy to better reap the benefits of international trade, and to facilitate the transfer of foreign technology through importation. It also needs to diversify its export basket and switch exports from raw materials and semi-finished goods to high-value products. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2283992 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2283992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2283992 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2256125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Princewill U. Okwoche Author-X-Name-First: Princewill U. Author-X-Name-Last: Okwoche Author-Name: Christine S. Makanza Author-X-Name-First: Christine S. Author-X-Name-Last: Makanza Title: Public debt and economic growth in sub-Saharan Africa: Nonlinearity and threshold effects Abstract: Most studies on the effects of debt on growth, particularly following the global financial crisis, have focused mainly on the advanced and emerging countries. Our focus on sub-Saharan Africa (SSA) derives from the recent experience of slow growth at a time of rising debt in the sub-region. This approach allows us the opportunity to fit a model that accounts for some region-specific characteristics, such as the quality of institutions and policies, conflict, and adverse terms of trade shocks. Our dataset comprises 24 SSA countries spanning 39 years from 1980 to 2018. We employ a variety of panel estimation techniques suitable for addressing the problems of endogeneity and cross-section dependence. The fixed effects instrumental variable technique is used as the baseline technique, while the bias corrected least-squares dummy variable and the limited information maximum likelihood are used for robustness. In agreement with recent literature, we find compelling evidence in support of a nonlinear relationship between debt and growth, which suggests that public debt may become harmful to growth if it rises beyond a certain level. Further to that, the evidence presents a threshold estimate of 78–85% in most cases. Some variations in threshold estimates based on differences in empirical estimation techniques were observed, which point to the need to localize debt–growth studies to country-specific cases for more applicable results. Policy implications based on these findings are discussed. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2256125 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2256125 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2226482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Hyangsuk Cho Author-X-Name-First: Hyangsuk Author-X-Name-Last: Cho Title: Impact of income inequality on carbon-intensive extractivism Abstract: In recent decades, lower emissions have been driven by structural changes such as the shift from manufacturing to the service sector and investment in energy efficiency. However, many developing countries extract fossil fuels from the Earth’s surface, to export raw materials such as coal, oil, and natural gas in the global market. “Extractivism” is a mode of economic growth currently practiced by many developing countries. This way of economic growth can influence the income distribution and composition of activities that contribute to environmental degradation. Therefore, rent-seeking on fossil fuel export can lead to income inequality and a carbon-intensive economy. The relationship between carbon intensity and fossil fuel rent, which is the main concern of this paper, was first studied by Friedrichs and Inderwildi (2013) using the concept of the carbon curse. This paper follows similar model to carbon curse theory; however, it presents a new approach by examining the augmented the carbon curse theory through the lens of income inequality. Accordingly, this paper examines how extractivism affects the relationship between income distribution and carbon intensity for 137 countries from 1990 to 2014. Our findings show that countries that are highly dependent on oil rents have a higher degree of unequal income distribution and carbon-intensive developmental pathways. Additionally, there exists a unidirectional causality relationship among oil rents, income inequality, and carbon intensity. Finally, the short-run effect of oil fuel rents on income inequality typically continues in the long run but the effects changes for carbon intensity. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2226482 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2226482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2226482 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2267748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Mei Kay Loo Author-X-Name-First: Mei Kay Author-X-Name-Last: Loo Author-Name: Sridar Ramachandran Author-X-Name-First: Sridar Author-X-Name-Last: Ramachandran Author-Name: Raja Nerina Raja Yusof Author-X-Name-First: Raja Nerina Author-X-Name-Last: Raja Yusof Title: Unleashing the potential: Enhancing technology adoption and innovation for micro, small and medium-sized enterprises (MSMEs) Abstract: This study conducts a comprehensive systematic review to gain insights into the challenges of technology adoption and innovation for Malaysian Micro, Small and Medium-sized Enterprises (MSMEs), which play a crucial role in the country’s economy. These MSMEs face obstacles, including challenges in adopting technology and a lack of technical efficiency. To address these issues, the study explores prominent technology adoption theories (e.g. TAM, DOI) and organizational theories (e.g. RBV, ST). By addressing these challenges, policymakers can enhance MSMEs’ competitiveness through targeted strategies, fostering innovation and effective technology adoption, thus contributing to their growth and resilience in the Malaysian economy. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2267748 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267748 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2267748 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2281176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Melkamu Wondimu Author-X-Name-First: Melkamu Author-X-Name-Last: Wondimu Title: An empirical investigation of the impact of foreign direct investment on economic growth in Ethiopia Abstract: The main objective of this study is to empirically investigate the impact of foreign direct investment on economic growth of Ethiopia by using a time series data for the period 1992–2019. Other explanatory variables like trade openness, human capital, national saving and gross capital formation were incorporated in the model. For the purpose of undertaking the study, Autoregressive Distributed Lag (ARDL) econometric model was employed. Moreover, a Toda-Yamamoto Causality test was performed to identify the direction of the causality between economic growth and foreign direct investment. Findings from the study show that, both in the short run and long run, foreign direct investment has a positive and significant impact on economic growth. As an outcome of Toda-Yamamoto Causality test shows, there is a unidirectional causality running from economic growth to foreign direct investment. On the basis of the findings, recommendations are made for the government authorities to expand infrastructural facilities for enabling a free movement of the investors to the remote and marginalized areas to further expand investment activities that result in higher economic growth. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2281176 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2281176 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2256124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Dereje Haile Author-X-Name-First: Dereje Author-X-Name-Last: Haile Author-Name: Abrham Seyoum Author-X-Name-First: Abrham Author-X-Name-Last: Seyoum Author-Name: Alemu Azmeraw Author-X-Name-First: Alemu Author-X-Name-Last: Azmeraw Title: Structural and stochastic poverty, shocks, and resilience capacity in rural Ethiopia Abstract: Whilst structurally poor households fall below the income and asset poverty line, stochastically poor households fall below the income poverty line but above the asset poverty line. This distinction suggests different challenges for the households in dealing with shocks and building the resilience to make a lasting escape from poverty. Accordingly, we examine the effect of shocks on structural and stochastic poverty, transitions, and the role of resilience as a mechanism for dealing with shocks and stochastic and structural poverty using the Ethiopian Socioeconomic Survey data. We find that recurrent and concurrent shocks adversely impact structural and stochastic poverty, whilst resilience capacities can curb poverty as shocks intensify. Access to irrigation, literacy, good vegetation cover, and non-farm economic activities help eradicate both structural and stochastic poverty. Rainfall variability, drought, conflict, input and output price volatility, and idiosyncratic shocks all drive both structural and stochastic poverty. However, the critical implication for policy is that reducing structural and stochastic poverty requires enhancing resilience capacity. This will require promoting symbiotic rural–urban links and rural revitalization to ensure a balanced mix of development. The findings suggest that two distinct sets of policies are required to protect against falling into poverty and sustain movements out of poverty, namely harmonizing cargo net and safety net policies. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2256124 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2256124 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Dorcas Gonese Author-X-Name-First: Dorcas Author-X-Name-Last: Gonese Author-Name: Asrat Tsegaye Author-X-Name-First: Asrat Author-X-Name-Last: Tsegaye Author-Name: Sibanesizwe Alwyn Khumalo Author-X-Name-First: Sibanesizwe Alwyn Author-X-Name-Last: Khumalo Author-Name: Forget Mingiri Kapingura Author-X-Name-First: Forget Mingiri Author-X-Name-Last: Kapingura Title: Trade openness and non-income poverty in Southern African Development Community (SADC) countries: A panel Autoregressive Distributive Lag (ARDL) analysis Abstract: The paper examines the effect of trade openness on poverty using the panel Autoregressive Distributive Lag (ARDL) estimation technique from 1980 to 2019 in Southern African Development Community (SADC) countries. The paper focuses on non-income poverty; in this paper, non-income poverty is measured by the human development index since this measure looks at poverty beyond just income. The paper assesses the direct and indirect effects by including the mediating variables in the non-income poverty trade openness model. The study results assist SADC governments and policymakers in addressing poverty reduction policies amid the trade openness era and identifying appropriate complementary policies for reducing poverty in SADC countries. The study’s findings indicate that trade openness reduces non-income poverty (NPOV) in SADC countries in the long run. Again, the empirical results suggest that trade openness reduces NPOV when economic growth and human capital development are high. Yet, trade openness worsens NPOV when income inequality increases. Surprisingly an inconsistent result indicates that a mediating variable of trade openness and financial development has a negative effect on NPOV in SADC countries. This calls for SADC governments and policymaking institutions to revamp the trade opening reform by making economic growth sustainable and inclusive, improving the education system’s quality, maintaining income distribution, and making pro-poor financial systems across the region. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2242668 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242668 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2251803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Suparman Suparman Author-X-Name-First: Suparman Author-X-Name-Last: Suparman Author-Name: Muzakir Muzakir Author-X-Name-First: Muzakir Author-X-Name-Last: Muzakir Title: Regional inequality, human capital, unemployment, and economic growth in Indonesia: Panel regression approach Abstract: The purpose of this study is to estimate the relationship and influence between regional inequality variables, human capital, the open unemployment rate, and economic growth in Indonesia using panel data. The panel data consists of a combination of time series data from the 2010–2020 period, based on information from 32 provinces in Indonesia. The estimation model employed in this study is a panel regression model utilizing three methods: the common effect model (CEM), fixed effect model (FEM), and random effect model (REM). The findings of the study reveal a positive and significant effect of the ETI factor on the LOG (GRDP) factor. Additionally, the HDI variable exhibits a positive and significant impact on the LOG (GRDP) variable, while the UNR variable also shows a positive and significant effect on the LOG (GRDP) variable. Furthermore, the ETI variable is found to have a positive and significant influence on the UNR variable, while the HDI variable has a negative and significant impact on the UNR variable. Finally, the LOG (GRDP) variable demonstrates a positive and significant effect on the UNR variable. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2251803 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251803 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2290359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Dong Quang Dang Author-X-Name-First: Dong Quang Author-X-Name-Last: Dang Author-Name: Ioannis Korkos Author-X-Name-First: Ioannis Author-X-Name-Last: Korkos Author-Name: Weiou Wu Author-X-Name-First: Weiou Author-X-Name-Last: Wu Title: The effects of earnings management on information asymmetry and stock price synchronicity Abstract: In this study, we test whether earnings management has a positive impact on information asymmetry as well as whether earnings management has a negative impact on stock return synchronicity to investigate how discretionary accrual earnings management affects the imbalance of information and the co-movement of stock prices in Vietnam. We utilise the Pooled OLS (OLS), Random Effects (RE), Fixed Effects (FE), and System GMM models to evaluate our dataset collected from 356 non-financial companies listed on the Hochiminh City Stock Exchange (HOSE) spanning from 2012 to 2021. We find that in Vietnamese market earnings manipulations through accrual based falsify the market and cause information asymmetry leading to adverse effects on market liquidity and stock price synchronicity. Additionally, our findings exhibit greater co-movements between stock prices and earnings management at the larger firms with long incorporation history and are audited by Big Four Audit firms due to their credibility. These findings are particularly useful for foreign investors in making investment decisions as we found that their influences on earnings management in Vietnamese market is limited. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2290359 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2290359 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2250692_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Somvang Phimmavong Author-X-Name-First: Somvang Author-X-Name-Last: Phimmavong Author-Name: Rodney J Keenan Author-X-Name-First: Rodney J Author-X-Name-Last: Keenan Author-Name: Viengvilay Phimmavong Author-X-Name-First: Viengvilay Author-X-Name-Last: Phimmavong Author-Name: Jerry Maroulis Author-X-Name-First: Jerry Author-X-Name-Last: Maroulis Author-Name: Tek Maraseni Author-X-Name-First: Tek Author-X-Name-Last: Maraseni Title: Assessing the COVID-19 impacts on the coffee industry in Laos: An input–output modelling approach Abstract: This paper employs an input-output modelling approach to quantify the impact of decreases in coffee exports between 2019 and 2020 resulting from the implementation of various COVID-19 policies in Lao PDR. The analysis was undertaken at two levels in investigating the effects of these policies on (1) the regional economy in the main coffee producing region of Champasak Province in Southern Laos, and (2) the national economy of Lao PDR. Results were rather mixed at both the regional and national levels, for four reasons: (1) reduced production in other countries increased demand for green bean exports, resulting in a 1.8% (US$12 million) increase in the total value of gross outputs of the provincial economy; (2) reduced local demand and declines in processed coffee consumption and export in the food industry sector, resulted in a 1.5% decrease (US$10 million) in gross provincial production; (3) at the national level, more green bean exports increased the gross production output of the economy by 0.2% (US$24 million) while reduced processed coffee in food industry exports led to a reduction in gross production of 0.13% (US$19.6 million); and (4) the overall effects of COVID-19 restrictions are potentially positive for the coffee sector in Lao PDR in the short term but may have longer-term implications for the coffee sector due to shift away from processed coffee exports to green beans. Future policies to mitigate the impact of COVID-19 will be instrumental in stimulating investment and enhancing the benefits for the coffee sector in Laos. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2250692 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250692 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2250692 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2223810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Solomon Kebede Author-X-Name-First: Solomon Author-X-Name-Last: Kebede Author-Name: Getachew Zerihun Author-X-Name-First: Getachew Author-X-Name-Last: Zerihun Author-Name: Kuma Berhanu Author-X-Name-First: Kuma Author-X-Name-Last: Berhanu Author-Name: Tora Abebe Author-X-Name-First: Tora Author-X-Name-Last: Abebe Title: The role of foreign public debt on foreign exchange reserve in SSA countries: Does governance really matters? Abstract: The debt and reserve are playing a pivotal role in the growth and development of national economies. To examine the role of foreign public debt (FPD) on foreign exchange reserve (FER) the study used a panel data by considering 20 Sub-Saharan Africa (SSA) countries by interacting FPD with governance index across 15 years. The dynamic and static Generalized Method of Moments (GMM) models were utilized after checking the possible assumptions. The GMM model found that FPD, governance index, labour and human capital predicted the FER positively and significantly. While foreign debt augmented with governance predicted the variation of FER negatively and significantly. Therefore, Sub-Saharan Africa’s low performance of foreign debt in enhancing foreign exchange reserve partly attributed to bad governance. Finally, the government of SSA countries should improve their quality of governance to properly utilize FPD to enhance the stock of FER, among others. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2223810 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2223810 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2250230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Uyen Pham Author-X-Name-First: Uyen Author-X-Name-Last: Pham Author-Name: Quy Trinh Author-X-Name-First: Quy Author-X-Name-Last: Trinh Author-Name: Hoa Le Author-X-Name-First: Hoa Author-X-Name-Last: Le Author-Name: Uyen Vo Author-X-Name-First: Uyen Author-X-Name-Last: Vo Title: Impacts of regional trade agreements on international tourism demand: Empirical in Vietnam Abstract: This paper sheds some light on the impact of regional trade agreements (RTAs) on international tourism demand in Vietnam. They are using gravity model with data from 29 countries with the highest number of tourists to Vietnam from 2007–2019. The empirical findings indicate a relevant degree of heterogeneity in the results. While the the free trade agreement enhances the international tourism demand in Vietnam, ASEAN community it. These results emphasize the importance of solid integration in promoting Vietnam’s tourism flows. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2250230 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250230 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2250230 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2246218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Conrad Murendo Author-X-Name-First: Conrad Author-X-Name-Last: Murendo Author-Name: Givious Sisito Author-X-Name-First: Givious Author-X-Name-Last: Sisito Author-Name: Grown Chirongwe Author-X-Name-First: Grown Author-X-Name-Last: Chirongwe Title: Resilience capacity, food consumption and socio-economic status in Zimbabwe Abstract: This article examined the role of resilience and resilience pillars on household food consumption differentiated by socio-economic status. The cross-sectional data of 2228 rural households came from Zimbabwe Poverty, Income, Consumption and Expenditure Survey and principal component analysis was used for computing resilience capacity. The study employed dietary diversity and food consumption as outcome variables. Negative binomial regression and linear regression are used for analysis. Resilience capacity improved household food consumption across all socio-economic classes, and effects are more pronounced among poorer households. The resilience pillars—assets (AST), access to basic services and adaptive capacity (AC)—improved household food consumption, while social safety nets (SSN) improved food consumption among the poor only. Public and private sectors and policy makers should consider promoting interventions that increase AC, AST and basic services across all socio-economic classes of households with special focus on poor households and low rainfall areas. SSN should continue to be efficiently targeted to poorer households. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2246218 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2246218 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2230726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Marvellous Ngundu Author-X-Name-First: Marvellous Author-X-Name-Last: Ngundu Author-Name: Shonisani Mphinyana-Chauke Author-X-Name-First: Shonisani Author-X-Name-Last: Mphinyana-Chauke Author-Name: Reon Matemane Author-X-Name-First: Reon Author-X-Name-Last: Matemane Author-Name: Harold Ngalawa Author-X-Name-First: Harold Author-X-Name-Last: Ngalawa Title: The effects of shock in strikes on non-agriculture employment, output, and inflation in South Africa: A structural analysis of Bayesian VAR models Abstract: This study empirically addresses claims about the effects of strikes on output growth, inflation, and non-agricultural employment in South Africa using a structural analysis of Bayesian VAR models with a Normal inverted Wishart prior for the period 1982–2018. We find empirical support for a strikes shock’s transitory negative impact on the country’s output growth. In any case, this was not contested. Our findings, however, contradict the claims that strikes ensue inflation and unemployment in South Africa. Precisely, the findings show that a strikes shock has a positive transient impact on non-agriculture employment but has no effect on inflation. The inflation finding suggests that strikes do not cause a wage-price spiral because the workers’ bargaining power is weak to influence a significant wage increase settlement that can trigger prices. The employment finding implies a negative net change in the number of strikers after a settlement rather than an absolute increase in non-agriculture employment. These findings reveal that strikers resume work with unfulfilled wage increase demands. Hence, the burden borne by companies as a result of strikes is mainly due to lost production rather than a substantial increase in the wage bill. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2230726 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230726 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2258696_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Muhammad Yousaf Author-X-Name-First: Muhammad Author-X-Name-Last: Yousaf Author-Name: Bruce Dehning Author-X-Name-First: Bruce Author-X-Name-Last: Dehning Title: The effects of sales surprise on inventory turnover: An empirical study Abstract: Sales surprise (SS) is a significant factor in a firm’s inventory turnover (ITO). In order to estimate SS, it is necessary to select an appropriate approach of sales forecasting. The current study’s main purpose is to examine the effects of SS on ITO. The data was gained from the Albertina database from 2017 to 2021, for two sectors: manufacturing and construction. The Czech firms’ panel data was used to estimate sales forecasts by four different methods: (i) sales linear forecast (SLF), (ii) sales change (SCH), (iii) sales growth (SG), and (iv) sales forecast random walk (SRW). The two most accurate methods were chosen to calculate SS: sales surprise linear forecast (SSLF) and sales surprise random walk (SSRW). After estimating four different regression models by employing the fixed-effect panel model, the results show that SSRW is positively correlated with ITO. The sales surprise linear forecast (SSLF) is found to be insignificant. Capital intensity (CI) has a positive impact on ITO; on the other hand, the relationship between gross margin (GMN) and ITO is negative. This is the first research in which SS is measured by four different techniques, and then the two most accurate techniques are used to examine the effects of SS on ITO. Therefore, the findings of the current research will be fruitful for managers, academics, policymakers, and directors of firms to estimate SS using different techniques and to understand the effects of SS on ITO. Hence, the research will be useful to the firms’ management in many contexts. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2258696 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2258696 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2269773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Dwi Ratmono Author-X-Name-First: Dwi Author-X-Name-Last: Ratmono Author-Name: Frendy Author-X-Name-First: Author-X-Name-Last: Frendy Author-Name: Zuhrohtun Zuhrohtun Author-X-Name-First: Zuhrohtun Author-X-Name-Last: Zuhrohtun Title: Digitalization in management accounting systems for urban SMEs in a developing country: A mediation model analysis Abstract: This study aims to examine the role of digitalization in management accounting systems (DIMAS) in increasing the effectiveness of management decision-making in urban small and medium enterprises (SMEs) in a developing economy. This study also investigates the mediating role of information quality (accuracy and timeliness) and cost reduction in the relationship between DIMAS and management decision-making. This research employed primary data collected from questionnaire responses from 536 urban SMEs that implemented digitalization in a developing economy setting. The results show that DIMAS has a positive effect on the accuracy and timeliness of accounting information and cost reduction, which in turn contribute to better decision-making. The results of the mediation test reveal that the accuracy and timeliness of accounting information and cost reduction mediate the relationship between DIMAS and management decision-making. The findings of this study provide empirical evidence on the importance of digitalization for urban SMEs operating in a developing country, enabling them to survive and achieve a competitive advantage in an era of high uncertainty due to the industry 4.0 and the COVID-19 pandemic. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2269773 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2269773 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2282869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Suleiman O. Mamman Author-X-Name-First: Suleiman O. Author-X-Name-Last: Mamman Author-Name: Kazi Sohag Author-X-Name-First: Kazi Author-X-Name-Last: Sohag Author-Name: Attahir B. Abubakar Author-X-Name-First: Attahir B. Author-X-Name-Last: Abubakar Title: Climate change and inclusive growth in Africa Abstract: Africa’s pursuit of inclusive and sustainable economic growth is impeded by many challenges, including climate change, whose effect is most apparent in the continent’s tropical regions. To this end, this study investigates the impact of climate change on achieving pro-poor economic growth in Africa. Predicated on poverty-inequality-climate analysis, the Augmented Mean Group (AMG) estimator is used to analyse data from 1996 to 2020 covering 51 African countries. The results reveal that climate change significantly impedes inclusive growth. Furthermore, evidence of a long-lasting negative effect of climate change on inclusive growth, which could be attributed to a lack of coping mechanisms among the poor and vulnerable groups, is found. Finally, the findings show a marginal impact of institutional quality and government spending on inclusive growth in the face of climate change. The study recommends more climate mitigation efforts and enhanced adaptation mechanisms, especially for the poor, as they are most vulnerable to the adverse effects of climate change. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2282869 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2282869 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2286755_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kinda Dooba Author-X-Name-First: Kinda Author-X-Name-Last: Dooba Author-Name: Sulaiman Mouselli Author-X-Name-First: Sulaiman Author-X-Name-Last: Mouselli Title: Portfolio Optimization at Damascus Securities Exchange: A Fractal Analysis Approach Abstract: This paper adopts the fractal analysis approach, specifically a Hurst exponent index in portfolio optimization at the Damascus Securities Exchange (DSE). We construct three portfolios based on the Hurst index from stocks listed on the DSE during the period between 2019 and 2021 and find that these portfolios outperform the market portfolio in terms of returns, Sharpe ratio, Treynor ratio, and alpha. In addition, selecting stocks with high Hurst coefficients further enhances the performance of the portfolio. Importantly, even in out-of-sample tests, the three fractal portfolios continue to outperform the market portfolio. Furthermore, we find that fractal portfolios outperform portfolios formed using the momentum and size strategies demonstrating the superiority of the fractal analysis approach. We conclude that the incorporation of fractal analysis into the portfolio optimization problem allows the creation of a more efficient portfolio. Hence, we recommend that investors consider the Hurst exponent index in their portfolio optimization for better investment decisions. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2286755 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2286755 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2286755 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2233778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Bharat Ram Dhungana Author-X-Name-First: Bharat Ram Author-X-Name-Last: Dhungana Author-Name: Ramkrishna Chapagain Author-X-Name-First: Ramkrishna Author-X-Name-Last: Chapagain Author-Name: Arvind Ashta Author-X-Name-First: Arvind Author-X-Name-Last: Ashta Title: Alternative strategies of for-profit, not-for-profit and state-owned Nepalese microfinance institutions for poverty alleviation and women empowerment Abstract: Microfinance is the provision of financial services to disadvantaged people and the financially excluded, often with a social mission of poverty alleviation and women empowerment. There are many different forms of microfinance institutions (MFIs): for-profit, not-for-profit and state-owned, all of which use different strategies to improve socio-economic status of their clients. The objective of this paper is to examine the alternative strategies of MFIs in Nepal. Primary data was collected through structured questionnaires from 240 women clients of three MFIs. Parametric and non-parametric tests, and exploratory factor analysis have been applied for analysis. The results show that MFIs have different segmentation strategies for their clients, focusing on income levels, total consumption and the number of children. Surprisingly, it was found that the private MFI was reaching poorer people than other MFIs. Our results show that MFIs look at total consumption expenditure rather than total income. Private MFIs target different activities for giving loans compared to government-owned MFIs. The communication strategy of the MFIs is different since the clients of government-owned MFI are better educated and are more likely to read the newspaper. The exploratory factor analysis shows that respondents perceived poverty alleviation and empowerment. The most influencing factors are related to an increase in consumption expenditure, followed by an increase in capital expenditure. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2233778 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2233778 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2259738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Lord Mensah Author-X-Name-First: Lord Author-X-Name-Last: Mensah Title: Intra-Africa regional trade comovements and shock transmission: A baseline for AfCFTA Abstract: This paper examines the trade co-movements and shock spillover across four African geographic regions. Specifically, we were motivated by the very low intra-trade activities in Africa, despite increased regionalism to study the possibility of a country’s trade shock being transferred to its trading partners on the continent. Knowing the trade connectedness and shock transmission among African countries will serve as a baseline for the AfCFTA implementation. In our analysis, we considered the four African regional quarterly data between 2005 and 2021 from UNCTAD. The continent was divided into four regions namely, Western, Middle, Eastern, and Southern Africa. We divided the time into pre- and post-AfCFTA periods. The Dynamic Conditional Correlation (DCC) and the Diebold and Yilmaz (2012) models were adopted to determine the trade co-movement and the shock spillover respectively. The results show different trade co-movement and trade shock spillovers among the regions at different times. The trade co-movement seems to be dominant between the Middle and Southern African regions. Further analysis shows the presence of trade shock transmission across all four regions. The Western African region exhibits a sign of the biggest trade shock receiver from the other regions, while the Southern African regions turn out to be the largest contributor of trade shocks to the other regions both in the post and pre- AfCFTA period. The study contributes by sending a signal to AfCFTA implementers that trading on the African continents behaves differently among the various geographic regions. It also provides early warning signal for AfCFTA policy implementation. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2259738 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2259738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2259738 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2289321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Emmanuel Mensah Author-X-Name-First: Emmanuel Author-X-Name-Last: Mensah Author-Name: Joseph Kwadwo Tuffour Author-X-Name-First: Joseph Kwadwo Author-X-Name-Last: Tuffour Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Does macroeconomic misery index matter in the micro firm-level earnings Management – performance nexus? Evidence from dynamic Panel threshold regression Abstract: Earnings management (EM) and its association with firm performance has been a subject of research interest for decades. This study re-examines the EM—firm performance nexus in a novel way using a nonlinear framework and introducing macro-economic misery index (MI) as a possible threshold variable in the analysis. 52 sampled non-financial listed firms are drawn from nine emerging sub-Saharan African countries spanning a period of 2007–2019. The study employs the dynamic panel threshold estimation approach in analyzing its models. By using MI as a threshold variable, the results show new findings of the performance effect of EM contingent on a uniquely identified MI threshold of 22.51. The study finds that the performance-enhancing effect of EM is realized only when a firm’s MI is below the identified threshold. Above this threshold, the effect of EM on performance is negligible or sometimes adverse. The estimated nonlinear effect of EM on firm performance and the threshold of MI can be benchmarks for Africa and other emerging countries. The findings suggest important implications for national governments in adopting policies that help to minimise the economic misery of the citizenry, as they would generally inure to the greater good of businesses and their varying stakeholders. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2289321 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2289321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2289321 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2245309_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Seyoum Teffera Mengesha Author-X-Name-First: Seyoum Teffera Author-X-Name-Last: Mengesha Author-Name: Eva Berde Author-X-Name-First: Eva Author-X-Name-Last: Berde Title: Financial development and economic growth in Ethiopia: Is there a causal link? Abstract: The relationship between financial development and economic growth has been widely debated in the economics literature, but the results have been inconsistent and vary between the short and long run. In this study, we investigate the causal relationship between financial development and economic growth in Ethiopia using annual data from 1980 to 2021. We employ the Toda-Yamamoto causality test and the nonlinear autoregressive distributed lag (NARDL) modeling framework to analyze the data. Our results show that none of the variables are stationary at the level, but after applying first differences, all variables become stationary. Using the Toda-Yamamoto causality test, we find no causality running from financial development to economic growth, but there is evidence of reverse causality from economic growth to financial development. Furthermore, the NARDL model results suggest that economic growth drives financial development, and the relationship between financial development and economic growth in Ethiopia is nonlinear and asymmetric. Specifically, neither positive nor negative shocks to economic growth affect financial development in the short run, but both affect it in the long run and in joint short run and long run effects. We conclude from our study that financial development may not guarantee economic growth without building better institutions and following sound and stable fiscal policies. Consequently, constructing an effective economic growth strategy that maintains financial development is crucial. Our findings have significant implications for policymakers, academics, and investors and underscore the importance of informed decision-making based on a thorough understanding of the relationship between financial development and economic growth. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2245309 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2245309 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2265659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Ahmad Bash Author-X-Name-First: Ahmad Author-X-Name-Last: Bash Author-Name: Abdullah M. Al-Awadhi Author-X-Name-First: Abdullah M. Author-X-Name-Last: Al-Awadhi Title: Presidential elections and stock market outcomes: An event-study on the effect of Turkey's Presidential Elections on Borsa Istanbul Abstract: This paper uses the event-study methodology to investigate the effect of the Presidential Turkish elections in 2023 on Borsa Istanbul returns. The data used in this study cover the period from 13 June 2022, through 7 June 2023. We employ a market model to study the effect of two election rounds on the stock market’s cumulative abnormal returns (CARs). Our results show that the impact of the first round of the elections on the stock market is mixed, as it has a positive effect on CARs for event windows [−2, 2] and a negative impact on CARs for event windows [−6, 6] and [−7, 7]. However, following round 2 of the elections, results show that re-elections have a significant positive impact on CARs, with average CARs ranging from 678 basis point to 1019 basis point, indicating that uncertainty in the market has vanished and perhaps investors are optimistic about the future of Erdogan reign and his expected economic policies. Results also show that sectors’ returns reacted differently to the first round of the elections and round 2 of the re-elections. For example, the event has a significant negative effect on most of the sectors’ returns during the first presidential elections. In contrast, it has a significant positive impact on most of the sectors’ returns during round 2 re-elections. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2265659 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2265659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2265659 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2246005_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Nozuko Lawana Author-X-Name-First: Nozuko Author-X-Name-Last: Lawana Author-Name: Forget Mingiri Kapingura Author-X-Name-First: Forget Mingiri Author-X-Name-Last: Kapingura Author-Name: Asrat Tsegaye Author-X-Name-First: Asrat Author-X-Name-Last: Tsegaye Title: The impact of non-communicable diseases on employment status in South Africa Abstract: The study examines the impact of non-communicable diseases (NCDs) and employment status in South Africa utilising the National Income Dynamics Study longitudinal data from 2008 to 2017. The Generalized Linear Latent and Mixed Methods (GLLAMM) were employed to fit the multinomial logit model with correlated random intercept over panel multinomial logit without random effects to control for unobserved heterogeneity between individuals or intercepts. The empirical results indicate that the significant impact of NCDs on employment status differs by gender. NCDs were found to be most threatening to women employment status. The odds of women being economically inactive in the labour market are highly associated with NCDs. Further, having multiple NCDs also significantly increases the women’s probability of being economically inactive population relative to being employed. The results highlight the necessity for undertaking a massive awareness campaign regarding the prevention and control of NCDs, especially among women. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2246005 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2246005 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2242662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Kolotioloman Soro Author-X-Name-First: Kolotioloman Author-X-Name-Last: Soro Author-Name: Melain Modeste Senou Author-X-Name-First: Melain Modeste Author-X-Name-Last: Senou Title: Digital financial inclusion and income inequality in WAEMU: What causality for what heterogeneity? Abstract: In developing countries, economic inequality is attracting considerable attention. Many factors including financial exclusion are key in explaining income gap in developing countries. This paper examines the effect of access to financial services through digital technologies on income inequality. Using data from the World Development Indicator (WDI), the Central Bank of West African States (BCEAO) and the Standardized World Income Inequality Database (SWIID), we estimated a pooled means group estimation (PMGE) and a dynamic fixed effect (DFE) as a robustness test. The results indicate that digital financial inclusion leads to a decrease in income inequality. In the long run, there is a negative and significant effect of digital financial inclusion on inequality. The short run results evidenced more of the heterogeneity effect of digital financial inclusion in WAEMU countries due to the diversity, inconclusiveness, and counterintuitive results of the effect of DFI on inequality. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 06 X-DOI: 10.1080/23322039.2023.2242662 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2242662 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2253076_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Saib Fakhar Author-X-Name-First: Saib Author-X-Name-Last: Fakhar Author-Name: Fateh Mohd Khan Author-X-Name-First: Fateh Author-X-Name-Last: Mohd Khan Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Gayas Ahmad Author-X-Name-First: Gayas Author-X-Name-Last: Ahmad Author-Name: Javaid Akhter Author-X-Name-First: Javaid Author-X-Name-Last: Akhter Author-Name: Mujeeb Saif Mohsen Al-Absy Author-X-Name-First: Mujeeb Saif Mohsen Author-X-Name-Last: Al-Absy Title: Financial distress in the banking industry: A bibliometric synthesis and exploration Abstract: Recent financial upheavals and economic downturns have triggered and sped up the research on financial distress in general and in the Banking industry in specific. The current review attempts to gauge and map performance trends and intellectual knowledge structure of the financial distress research in the banking industry. A hybrid approach was adopted to inventorize, analyse and evaluate the financial distress literature pertaining to the banking industry (1982–2022); the authors apply bibliometric analysis to identify critical financial distress literature articles and journals, followed by the identification of central financial distress literature research themes through co-citation analysis. We found that financial distress researchers have published 11 papers each year since 1982, and the number of citations received by the research domain has significantly risen, adding more importance to this research domain. Further, the analysis helps delineate four thematic knowledge clusters throwing light on the nomological network of the field and giving a bird’s eye-view of the intellectual structure of the field. Since this review utilised data from a single database, i.e. Scopus, any shortcomings associated with the database would undoubtedly impact the results. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2253076 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2253076 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2253076 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2276560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Vera Oktari Author-X-Name-First: Vera Author-X-Name-Last: Oktari Author-Name: Wiwiek Dianawati Author-X-Name-First: Wiwiek Author-X-Name-Last: Dianawati Title: Dividend policy, CEO Narcissism, and its influence on companies in Indonesia: A Behavioral Theory of the Firm approach Abstract: In the concept put forward by the Behavioral Theory of the Firm (BTF), the policies implemented must provide added value to the company. In their preparation, policies will be heavily influenced by decision-makers behavior. This study was conducted to see the company’s value dividend policy and the impact of CEO Narcissism in that policy. This empirical research involved companies indexed by Kompas 100 from 2011 to 2019 and was tested using Moderated Regression Analysis (MRA). This study confirms that dividend policy is a signal for increasing firm value, so this policy deserves further attention from management. CEO Narcissism drives the increased value generated by the dividend policy and acts as pure moderation. This result is also strengthened by the robustness test conducted on Tobin’s Q to measure firm value. This research is the first study to examine the moderating effect of CEO Narcissism on dividend policy and its impact on firm value. Through the findings of this research, it is hoped that this study will contribute to the Behavioral Theory of the Firm and become a guide for companies to pay attention to the dividend policy formulation process so that it provides value, both for shareholders and for the company. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2276560 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276560 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2276560 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2258680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Ebenezer Gyan Yirenkyi Author-X-Name-First: Ebenezer Gyan Author-X-Name-Last: Yirenkyi Author-Name: Godwin Debrah Author-X-Name-First: Godwin Author-X-Name-Last: Debrah Author-Name: Kwami Adanu Author-X-Name-First: Kwami Author-X-Name-Last: Adanu Author-Name: Edwin Atitsogbui Author-X-Name-First: Edwin Author-X-Name-Last: Atitsogbui Title: Education, skills, and duration of unemployment in Ghana Abstract: The unmatched growth in available jobs, given the rising youth population, is a major concern for policymakers in sub-Saharan African countries (SSAs), particularly Ghana. The weakness in the link between education and the needed skill by the industry, has been labelled as the cause of rising unemployment and prolonged unemployment duration in Ghana. This paper presents new evidence on the effect of education and skill—language, computer and numeracy skills—on unemployment duration in Ghana using the Skill Towards Employment and Productivity (STEP) skill dataset collected by the World Bank in 2013. The study employs Cox’s Proportional Hazard Model to examine the effect of education, language, computer and numeracy skill on unemployment duration. We found that education reduces the duration of unemployment in general. However, the effect is higher for exiting salaried work compared to self-employed jobs. Proficiency in computer, English or Ewe reduces the duration of unemployment. In particular, we observe that individuals highly skilled in computer use are 34.4% more likely to exit unemployment compared to those without computer skills. Interestingly, the effect of computer skills is through channels other than formal education. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2258680 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2258680 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2287923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853 Author-Name: Egi Arvian Firmansyah Author-X-Name-First: Egi Arvian Author-X-Name-Last: Firmansyah Author-Name: Umar Habibu Umar Author-X-Name-First: Umar Habibu Author-X-Name-Last: Umar Author-Name: Rabiu Saminu Jibril Author-X-Name-First: Rabiu Saminu Author-X-Name-Last: Jibril Title: Investigating the effect of ESG disclosure on firm performance: The case of Saudi Arabian listed firms Abstract: This study investigates how environmental, social, and governance (ESG) disclosures influence the performance of listed Saudi Arabian companies. The study used unbalanced panel data obtained from the Bloomberg database (2010–2020). The results show that ESG has significantly reduced TOBINSQ but has an insignificant association with return on equity (ROE). Concerning the ESG components, environmental disclosure has an insignificant negative association with TOBINSQ but is significantly and positively related to ROE. Social disclosure has a significantly reduced TOBINSQ but is insignificantly and negatively associated with ROE. Meanwhile, governance disclosure significantly improved and reduced TOBINSQ and ROE, respectively. Besides, the findings offer helpful implications for regulatory bodies and policymakers toward providing practical guidelines and policies that ensure the implementation of ESG activities maximizes shareholders’ wealth. Journal: Cogent Economics & Finance Issue: 2 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/23322039.2023.2287923 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2287923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2287923 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Achmad Solihin Author-X-Name-First: Achmad Author-X-Name-Last: Solihin Author-Name: Wahyu Wisnu Wardana Author-X-Name-First: Wahyu Wisnu Author-X-Name-Last: Wardana Author-Name: Iqram Ramadhan Jamil Author-X-Name-First: Iqram Ramadhan Author-X-Name-Last: Jamil Author-Name: Unggul Heriqbaldi Author-X-Name-First: Unggul Author-X-Name-Last: Heriqbaldi Author-Name: Nguyen Thi Thuy Ngan Author-X-Name-First: Nguyen Thi Thuy Author-X-Name-Last: Ngan Author-Name: Widya Sylviana Author-X-Name-First: Widya Author-X-Name-Last: Sylviana Author-Name: Nurul Istifadah Author-X-Name-First: Nurul Author-X-Name-Last: Istifadah Title: Infrastructure provision and economic growth: evidence from the longest bridge construction in Indonesia Abstract: The construction of the Suramadu bridge, the longest bridge in Indonesia connecting the islands of Java and Madura, aimed to stimulate regional economic growth in Madura and reduce disparity. However, 13 years after the construction, significant economic progress in Madura has yet to be seen. This study examines the impact of the bridge construction on the economic growth of Bangkalan, a Madura Island district closest to the bridge from 2010 to 2017. This study employed the synthetic control method (SCM) to construct a synthetic control unit that mimics Bangkalan’s economic growth trajectory in the absence of the Suramadu bridge. The SCM allows for comparison of Bangkalan’s economic growth trajectory with its synthetic control unit post the Suramadu bridge operation. The finding indicates that the Suramadu bridge provision lower the economic growth in Bangkalan. The finding underscores the imperative for careful infrastructure planning to yield optimal returns. Moreover, it advocates for a holistic approach wherein hard infrastructure initiatives are complemented by investments in soft infrastructure, particularly in education and healthcare sectors. Such integrated strategies are essential for realizing the full potential of infrastructure projects in driving sustainable economic growth.This study examines the causal impact of infrastructure provision on regional economic growth in Indonesia. This research question is crucial for many developing countries like Indonesia, where public infrastructure is primarily funded through aid and public debt. The analysis indicates that infrastructure provision has, in fact, led to lower economic growth, challenging many previous studies that identify a positive impact of infrastructure development. This finding underscores the importance of effective infrastructure planning and suggests the necessity of complementary public investments to fully realize the potential benefits of infrastructure provision. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421887 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Louis-Joel Basneouinde Diendere Author-X-Name-First: Louis-Joel Basneouinde Author-X-Name-Last: Diendere Author-Name: Achille Augustin Diendere Author-X-Name-First: Achille Augustin Author-X-Name-Last: Diendere Author-Name: Jude Eggoh Author-X-Name-First: Jude Author-X-Name-Last: Eggoh Title: Role of central bank independence on monetary integration and business cycle synchronization in the economic community of West African States Abstract: This article examines the effects of monetary integration on the synchronization of the business cycle within ECOWAS (Economic Community of West African States) and contributes to the economic literature dealing with these aspects. First, the indicators of de facto and de jure central bank independence are considered to examine the role of central bank independence in the relationship between monetary integration and business cycle synchronization. Second, the ARDL error correction estimator is used to analyze both short- and long-run relationships and to address potential problems related to endogenous variables. Using panel data covering 105 country pairs from 1990 to 2020, the estimation results show a positive and statistically significant effect of monetary integration on the long-run synchronization of the business cycle. Regarding short-term synchronization, the conclusions are mixed. Overall, this study argues for the implementation of economic policy measures aimed, among other things, at complying with convergence criteria, strengthening trade agreements, and ensuring the independence of the central bank of the future monetary union.This article demonstrates that monetary integration promotes long-term business cycle synchronization within ECOWAS, highlighting the importance of central bank independence. Using panel data and an ARDL method, it reveals significant effects of this integration while noting mixed results in the short term. The findings advocate for economic policies focused on convergence criteria, strengthened trade agreements, and central bank independence to enhance regional stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 9 X-DOI: 10.1080/23322039.2024.2399959 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399959 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2339519_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdul Moeed Author-X-Name-First: Abdul Author-X-Name-Last: Moeed Author-Name: Mohd Afjal Author-X-Name-First: Mohd Author-X-Name-Last: Afjal Title: Educational empowerment: evolution, innovations and challenges of educational financing in commercial banks Abstract: This study critically examines the transformative landscape of higher education financing in India, focusing on the shift from traditional government funding to an increased reliance on educational loans provided by commercial banks. The paper employs a detailed methodological approach, utilizing secondary data sources to analyze various aspects of educational financing. The research is structured around key areas: the growth and status of higher education in India, the Gross Enrolment Ratio (GER) trends, patterns in the financing of higher education, and the performance of educational loan schemes under public sector banks. The study examines trends in aggregate public expenditure on education as a percentage of GDP and total expenditure, as well as the streamwise and bankwise distribution of educational loans. It also scrutinizes the growth and performance of educational loan schemes, evaluating the overall effectiveness and challenges within this financing model. The analysis reveals a significant increase in higher education institutions and enrolment rates, accompanied by a shift in funding sources from predominantly government-led to more diversified, including a substantial rise in educational loans. The paper highlights the challenges faced by commercial banks in managing these loans, including issues related to the distribution and repayment of educational loans. The study concludes with insights into the implications of these trends for educational policy, emphasizing the need for a balanced approach in financing higher education that considers affordability and accessibility while ensuring quality and equity.This paper critically examines the evolution and current challenges in the financing of higher education in India, with a particular focus on the role of commercial banks in this transformative landscape. Through an in-depth analysis of secondary data, the study identifies a significant shift from traditional government funding to an increased reliance on educational loans offered by commercial banks. This shift is pivotal as it reflects a broader trend towards privatization and market-driven models in higher education financing. The significance of this work lies in its comprehensive evaluation of the educational loan schemes implemented by public sector banks and their impact on higher education accessibility and affordability. By analyzing trends in the Gross Enrolment Ratio (GER), the distribution and performance of educational loans, and the challenges faced by banks in managing these loans, the paper provides valuable insights into the effectiveness of current policies and practices. It also highlights the critical need for a balanced approach that ensures equitable access to education while maintaining financial sustainability. The findings from this study are instrumental for policymakers, educational planners, and financial institutions as they seek to improve and innovate financing models for higher education. The paper emphasizes the importance of inclusive financial strategies that accommodate the socio-economic diversity of students and ensure that no capable student is deterred from pursuing higher education due to financial constraints. Moreover, the recommendations provided aim to enhance the structural and operational aspects of educational loan schemes, making them more robust and responsive to the needs of the student population. This research not only charts the evolution of educational financing but also serves as a crucial blueprint for future reforms, ensuring that higher education remains a catalyst for socio-economic development in India. By addressing both the achievements and the shortcomings of current financing models, this paper contributes significantly to the ongoing discourse on making higher education both accessible and sustainable. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2339519 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2339519 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2339519 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2363460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Benjamin Frimpong Author-X-Name-First: Benjamin Author-X-Name-Last: Frimpong Author-Name: Abel Fumey Author-X-Name-First: Abel Author-X-Name-Last: Fumey Author-Name: Edward Nketiah-Amponsah Author-X-Name-First: Edward Author-X-Name-Last: Nketiah-Amponsah Title: Effects of public debt on public infrastructure investment in Ghana Abstract: Though studies abound on the relationship between public debt and other macroeconomic variables, research on the effects of public debt on government infrastructure investment, particularly in Ghana has not received much scholarly attention. Therefore, this relationship is explored in this study by using the Non-linear Autoregressive Distributed Lagged (NARDL) model for an annual dataset from 1983 to 2020. The findings indicate a positive correlation between foreign debt and infrastructure investments in both the short-run and the long-run suggesting that foreign debt have more significant impact on public infrastructure investment than domestic debt, highlighting the crucial role of foreign debt in financing Ghana’s infrastructure investments. In the long-run, the study finds a positive asymmetric link between foreign debt and public infrastructure. In particular, a rise in public infrastructure investment by 3.1% increases external debt by 1.3% as foreign debt has a higher effect on public infrastructure investment in the long term. Additionally, public expenditure has a positive effect on public infrastructure investment in the long run whereby a 1% increase in public spending leads to 2.06% rise in public infrastructure investments. The study further identifies a positive asymmetric impact of public debt on public infrastructure investment in Ghana. For policy purposes, the study suggests that government directs public debts to economic projects through capital formation, rather than for consumption purposes. It further advocates for prudent debt management by investing more in capital projects to enhance production and good returns.This study examines the relationship between public debt and public infrastructure investment in Ghana by adopting a Non-linear Autoregressive Distributed Lagged (NARDL) model for a data spanning 1983 - 2020. The findings of the study reveal that there is a positive relationship between public debt and infrastructure investments in the short-run and the long-run. The study further reveals that there exists a positive asymmetric impact of public debt on public infrastructure in Ghana. The study suggests that political and economic decision-makers should enhance public debt expansion for positive effect on infrastructure. The main policy suggestion of this study is that Government should set up systems to monitor borrowed funds, improve debt management by allocating more resources to essential public infrastructure as well as ensuring that foreign loans are invested in projects that yield sufficient returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2363460 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2363460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2363460 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2309812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sagiru Mati Author-X-Name-First: Sagiru Author-X-Name-Last: Mati Author-Name: Goran Yousif Ismael Author-X-Name-First: Goran Yousif Author-X-Name-Last: Ismael Author-Name: Serag Masoud Author-X-Name-First: Serag Author-X-Name-Last: Masoud Author-Name: Karzan Qader Hamad Author-X-Name-First: Karzan Qader Author-X-Name-Last: Hamad Author-Name: Abdullahi Ahmed Mohammed Author-X-Name-First: Abdullahi Ahmed Author-X-Name-Last: Mohammed Author-Name: Mustapha Hussaini Author-X-Name-First: Mustapha Author-X-Name-Last: Hussaini Title: Revisiting ECOWAS-Eurozone exports in the light of asymmetry Abstract: This article evaluates the asymmetric impact of exchange rate volatility on the exports of nine ECOWAS countries to the Eurozone. By comparing Autoregressive Distributed Lag (ARDL) and Nonlinear ARDL (NARDL) models, the study concludes that the effect of volatility on ECOWAS-Eurozone exports (EEE) is asymmetric. The study also investigates the impact of foreign income and prices on the EEE and categorises the goods and services that make up the EEE for each country based on their coefficients. The results show that exchange rate volatility has an asymmetric effect on the EEE, which comprise both substitute and inferior goods. The study recommends that ECOWAS authorities avoid using proportional policies to address increased and decreased volatility, as their impact on trade is asymmetric. The long-run coefficients of income for Nigeria, Togo, and Benin are -1.29, -4.67, and -2.64 respectively, indicating that their exports are dominated by inferior goods. The long-run coefficients of foreign price for Nigeria, Niger, and Burkina Faso are 5.32, 7.87, and 1.91 respectively, suggesting that their exports are mainly substitute goods. The authors confirm long-run asymmetry for three out of nine countries and short-run asymmetry for five countries. Only three countries have an asymmetric trade-volatility relationship in both the short and long run. The study suggests that Nigeria, Togo, and Benin diversify their economies, as their exports to the Eurozone are dominated by inferior goods and services. Additionally, the study recommends that the governments of Nigeria, Niger, and Burkina Faso provide support, as their goods and services are substitutes. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2309812 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2309812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2309812 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2297589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Naveenan R. V Author-X-Name-First: Naveenan Author-X-Name-Last: R. V Author-Name: Ooi Kok Loang Author-X-Name-First: Ooi Kok Author-X-Name-Last: Loang Author-Name: Najaf Iqbal Author-X-Name-First: Najaf Author-X-Name-Last: Iqbal Author-Name: Suresh G Author-X-Name-First: Suresh Author-X-Name-Last: G Author-Name: Mohd Asif Shah Author-X-Name-First: Mohd Asif Author-X-Name-Last: Shah Title: Analyzing corporate disclosure in Indian banks: assessing compliance, corporate attributes, and performance implications Abstract: Corporate disclosure is critical for many stakeholders to make the best decisions possible. Corporate disclosure practices may vary based on corporate attributes. This study focuses on analyzing the influence of corporate attributes on disclosure. We developed a disclosure index using the unweighted disclosure index method for Indian banks. The disclosure index is developed based on data collected from the annual reports covering 2011-2020. The panel regression model examined corporate attributes’ impact on disclosure practices, and the results reveal that corporate attributes significantly influence the disclosure practices of banks. The Disclosure index will help us understand disclosure compliance and the impact of corporate attributes on disclosure. This study reiterates that banks should be transparent and understand the relevance of corporate attributes and information disclosure. It advocates the importance of corporate disclosure, which helps practitioners and policymakers gain the trust of stakeholders, translating into business opportunities and reflecting on the bank’s performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2297589 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2297589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2297589 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2362780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Munira Sultana Author-X-Name-First: Munira Author-X-Name-Last: Sultana Author-Name: Md. Hasanur Rahman Author-X-Name-First: Md. Hasanur Author-X-Name-Last: Rahman Author-Name: Grzegorz Zimon Author-X-Name-First: Grzegorz Author-X-Name-Last: Zimon Title: The impact of external debt and exchange rate on foreign direct investment in emerging investment markets: new evidence using a PMG-ARDL panel data analysis Abstract: The primary goal of this research is to examine the impact of external debt, exchange rates, economic growth inflation and tax revenue on foreign direct investment (FDI) in the Next-11 (N-11) countries where tax revenue used as a control variable. FDI plays an important role in boosting economic growth in developing countries such as the N-11. This study applied secondary data from 1993 to 2020. The panel unit root test has several criteria to make a decision on the unit root of the selected factors. This study considers the PMG panel ARDL model in the case of mixed orders. The exchange rate affects FDI negatively in the short run but positively in the long run, according to the findings of this study, the coefficient of variable external debt has a positive coefficient and result explains that a one percent raise in external debt tends to raise FDI by 0.46 percent in the long run but the result is not statistically significant. Economic growth has a positive impact on FDI over the long run and inflation has negative impact in the long run. By using the Kao cointegration test, a long-run association was found, and the ECT between the variables and the rate of adjustment was 27%. However, this study has the potential to have an impact on economic areas like global trade, global economics, public finance, and foreign direct investment decision-making.This study has significant impact on academic field, accelerating foreign direct investment, international trade. This research also contributes to national and international policy level to increase the foreign direct investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2362780 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2362780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2362780 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2391937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mario Alberto de la Puente Pacheco Author-X-Name-First: Mario Alberto Author-X-Name-Last: de la Puente Pacheco Author-Name: Elkyn Lugo Arias Author-X-Name-First: Elkyn Lugo Author-X-Name-Last: Arias Author-Name: Jose Torres Author-X-Name-First: Jose Author-X-Name-Last: Torres Title: Optimizing capital allocation in microfinance projects: an experimental case study in Barranquilla, Colombia Abstract: This research examines the development and evaluation of an optimization framework for the strategic deployment of financial resources in microfinance initiatives in Barranquilla, Colombia. The framework incorporates an array of variables, including market dynamics, institutional elements, project attributes, and firm-specific factors, to optimize project outcomes and long-term viability. With approximately 3,500 microfinance projects currently operating in the country, Colombia has a thriving microfinance sector that plays a crucial role in promoting financial inclusion and economic development. To ensure a representative sample for this study, 21 microfinance projects were selected using stratified sampling based on key characteristics such as sector, size, and years of operation. The optimization framework developed in this study incorporates an array of variables, including market dynamics, institutional elements, project attributes, and firm-specific factors, to optimize project outcomes and long-term viability. Comprehensive statistical techniques, such as factor analysis, principal component analysis, ANOVA, and t-tests, demonstrate substantial enhancements in critical performance indicators when the optimization framework is implemented. The experimental group, employing the framework, displays superior investment returns, reduced loan defaults, expanded beneficiary reach, and amplified employment generation compared to the control group utilizing conventional allocation strategies. These outcomes corroborate prior studies emphasizing the merits of data-driven methodologies for financial resource allocation in microfinance. The research contributes to the comprehension of effective capital deployment in microfinance initiatives and offers institutions a practical instrument to boost performance, attain financial sustainability, and support poverty reduction and economic growth. The findings have implications for microfinance organizations, policymakers, and academics, underscoring the significance of incorporating a comprehensive set of variables and integrating social capital considerations into microfinance approaches. Subsequent research can expand upon these discoveries to further investigate the efficiency of capital allocation and develop innovative strategies to strengthen microfinance programs.This study demonstrates the significant impact of an innovative optimization model on improving the performance of microfinance projects in Barranquilla, Colombia. Microfinance projects utilizing the optimization framework showed higher returns on investment, lower default rates, increased beneficiary outreach, and greater job creation compared to those using traditional allocation methods. These findings underscore the potential of data-driven approaches to optimize resource allocation in microfinance, offering a valuable tool for practitioners to enhance both financial sustainability and social impact. The study's results have important implications for policymakers and microfinance institutions, highlighting the need for supportive environments that facilitate the adoption of such optimization models. This research contributes to the growing body of evidence on effective strategies for enhancing microfinance performance, with potential applications beyond Colombia to other developing countries facing similar challenges in financial inclusion and poverty alleviation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2391937 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2391937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2391937 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2292918_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Prince Amfo Wiafe Author-X-Name-First: Prince Amfo Author-X-Name-Last: Wiafe Author-Name: Mark Armah Author-X-Name-First: Mark Author-X-Name-Last: Armah Author-Name: Ferdinand Ahiakpor Author-X-Name-First: Ferdinand Author-X-Name-Last: Ahiakpor Author-Name: Kwadwo Addo Tuffour Author-X-Name-First: Kwadwo Addo Author-X-Name-Last: Tuffour Title: The underground economy and tax evasion in Ghana: Implications for economic growth Abstract: The objective of the study was to determine the size of Ghana’s “underground economy” and the extent of tax evasion in Ghana. The underground economy in most countries is vital because it serves as a survival place for most people. However, their activities are mostly related to tax evasion because their economic activities are mostly concealed from government tax authority agencies. The study used the Multiple Indicator Multiple Cause (MIMIC) model to estimate the size of Ghana’s “underground economy”. The data was obtained from the World Bank country indicators, Economic Freedom and Bank of Ghana and its spans from 1990 to 2020. The study is one of the premier to estimate the size of Ghana’s “underground economy” using the MIMIC model. The study found that the average size of Ghana’s underground economy is about 44% of the official GDP of the economy and is primarily caused by tax burden, government integrity, unemployment, government spending, self-employment, inflation and the agricultural sector employment. The estimated tax evasion due to the presence of the “underground economy” is, on average, about 6.28% of GDP. Other findings from the study were that, while tax evasion negatively affects economic growth, the underground economy’s size positively affects economic growth in Ghana. We recommend that since the underground economy, to some extent, provides job security to some individuals within the country, their activities must be formalized by ensuring proper documentation and registration. Furthermore, the government should improve the ways of detecting tax evasion through intensive tax audit. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2292918 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2292918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2292918 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2437022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dhanraj Sharma Author-X-Name-First: Dhanraj Author-X-Name-Last: Sharma Author-Name: Ruchita Verma Author-X-Name-First: Ruchita Author-X-Name-Last: Verma Author-Name: Murad Baqis Hasan Al-Bukari Author-X-Name-First: Murad Baqis Hasan Author-X-Name-Last: Al-Bukari Author-Name: Mohammed A. K. Zaid Author-X-Name-First: Mohammed A. K. Author-X-Name-Last: Zaid Author-Name: Pranav Raghavan Author-X-Name-First: Pranav Author-X-Name-Last: Raghavan Title: Herding behavior in cryptocurrency market: evidence from COVID-19, Russia–Ukraine war, and Palestine–Israel conflict Abstract: This study explores herding behavior in the cryptocurrency market during three major international crises: the COVID-19 pandemic, the Russia–Ukraine war, and the Palestine–Israel conflict. The study uses daily closing prices of five major cryptocurrencies (Bitcoin, Ethereum, Tether, BNB, and Solana) and the CRYPTO20 index data from December 31 2019 to May 20, 2024. The research employs the cross-sectional absolute deviation (CSAD) and cross-sectional standard deviation (CSSD) methods to identify herding behavior in the cryptocurrency market. The Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model is used for the robustness check. Stationarity of the data is verified using the Augmented Dickey-Fuller (ADF) test. The empirical findings reveal the anti-herding behavior in the cryptocurrency market during the three sub-periods. The study’s findings have important implications for investors, policymakers, and market regulators. Understanding the dynamics of herding behavior in the cryptocurrency market during global crises can help in developing strategies to mitigate the adverse effects of herding, such as inefficient asset pricing and increased market volatility.The research explores herding behavior in the cryptocurrency market during three major global crises: the COVID-19 pandemic, the Russia–Ukraine war, and the Palestine–Israel conflict. Utilizing advanced analytical models like CSAD, CSSD, and GARCH on data from five leading cryptocurrencies, the study finds anti-herding behavior, emphasizing independent investor decision-making. These insights challenge traditional herding theories and have significant implications for policymakers, regulators, and investors, particularly in mitigating risks and volatility in evolving markets. By highlighting the resilience and unique dynamics of cryptocurrencies, this work enriches the understanding of financial behaviors during global crises. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2437022 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2437022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2437022 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399954_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hurriyah Author-X-Name-First: Hurriyah Author-X-Name-Last: Author-Name: Maman Setiawan Author-X-Name-First: Maman Author-X-Name-Last: Setiawan Author-Name: Rina Indiastuti Author-X-Name-First: Rina Author-X-Name-Last: Indiastuti Author-Name: Berliana Anggun Septiani Author-X-Name-First: Berliana Anggun Author-X-Name-Last: Septiani Author-Name: Bayu Kharisma Author-X-Name-First: Bayu Author-X-Name-Last: Kharisma Title: The effect of business cycle on the relationship between market structure and industrial performance in the Indonesian food and beverage industry Abstract: The Indonesian food and beverage industry contributes significantly to the economy of the country. However, previous studies have shown that the industry has a high industrial concentration and price-cost margin (PCM). High industrial concentration can exert market power to set price levels and affect performance. In this context, favorable business cycle conditions have been proven to have the potential to improve industrial performance. Therefore, this study aimed to investigate the effect of business cycle on the relationship between market structure and industrial performance. The study procedures were carried out using data obtained from food and beverage industry in Indonesia for the period 1990-2019. Panel cross-sectional data and instrumental variable methods were also used through a fixed-effect approach. The results showed that business cycle positively affected market structure, while industrial performance was positively affected by market structure. In addition, business cycle positively affected the effect of industrial performance on market structure, as well as the effect of market structure on industrial performance.This study examines the impact of the business cycle on the relationship between market structure and the performance of the food and beverage industry in Indonesia from 1990 to 2019. The findings indicate that the business cycle had a positive effect on market structure, while market structure positively influenced industrial performance. Additionally, the business cycle enhanced the impact of industrial performance on market structure, as well as the effect of market structure on industrial performance. This research highlights the complexity of market dynamics influenced by external factors like the business cycle. Understanding the relationship between market structure, the business cycle, and industrial performance is essential for developing effective regulatory policies and sustainable business strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399954 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399954 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2316048_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Satyaban Sahoo Author-X-Name-First: Satyaban Author-X-Name-Last: Sahoo Author-Name: Sanjay Kumar Author-X-Name-First: Sanjay Author-X-Name-Last: Kumar Title: Volatility spillover among the sectors of emerging and developed markets: a hedging perspective Abstract: This study empirically investigates the volatility spillover among the sectors of emerging markets, that is, India and China and developed markets, that is, the United Kingdom (UK) and the United States (US). Focusing on financial services, auto, oil and gas, Information Technology (IT), healthcare and real estate sectors, the research employs the BEKK GARCH and GO-GARCH models to analyze the daily data. Results reveal that the own market’s conditional volatility is primarily responsible for the volatility spillover in every sector. Further, the study also found evidence of major cross-market volatility spillover in the oil and gas, IT, healthcare and real estate sectors of emerging and developed markets. Specifically, the US IT sector dominated other markets’ IT sectors. The hedge ratio indicates that hedging between sectors of the emerging and developed markets is the cheapest, contrasting with the higher cost for hedging solely with the emerging or developed markets sectors. Investors are advised to monitor and rebalance their portfolios based on the volatility and dynamics of developed market sectors for optimum return. Additionally, the study found that the BEKK model is better for risk-return optimization.Assessing the volatility spillovers among markets and sectors reveals the level of capital market integration. The evolving interconnections and volatilities present diverse challenges for investors, portfolio managers, and regulators. This underscores the importance of close and continuous monitoring of sector-specific developments in both emerging and developed markets. Such vigilance enables investors and risk managers to rebalance portfolios and hedge positions more effectively and promptly. Importantly, these findings have varied implications for stakeholders across the financial landscape. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2316048 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2316048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2316048 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2354101_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Aleena Joseph Author-X-Name-First: Aleena Author-X-Name-Last: Joseph Author-Name: Geetha E Author-X-Name-First: Geetha Author-X-Name-Last: E Author-Name: Rohith Radhakrishnan Author-X-Name-First: Rohith Author-X-Name-Last: Radhakrishnan Author-Name: Raksha Jain Author-X-Name-First: Raksha Author-X-Name-Last: Jain Title: Macro-financial nexus: a systematic review on the impact of macroeconomic factors on bank stock returns Abstract: The performance of bank stocks exhibits a country’s overall financial health and signals economic growth. Therefore, understanding the interaction of macroeconomic factors on bank stock returns is crucial for the valuation of financial assets, especially in a highly volatile stock market. Although macroeconomic factors and their impact on bank stock returns have been extensively investigated, there is still a dearth of comprehensive review articles in this domain. To address this lacuna, we conducted a systematic review to identify the macroeconomic determinants driving bank stock returns. Through a systematic search, 64 articles were identified from two electronic databases for literature synthesis based on inclusion and exclusion criteria from 1980–2023. The review posits valuable insights into the macroeconomic factors that influence bank stock returns, the nuances of the variables’ effects and the methodologies employed in these studies. The key macroeconomic factors identified include interest and exchange rate sensitivity, which has been studied extensively; however, the impact of monetary policies, gold prices and oil prices needs further investigation. Subsequently, the study documents various bank-specific characteristics that influence the relationship between macroeconomic factors and bank stock returns. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2354101 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2354101 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2354101 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409415_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Hong Nga Author-X-Name-First: Nguyen Author-X-Name-Last: Hong Nga Author-Name: Pham Hoang An Author-X-Name-First: Pham Author-X-Name-Last: Hoang An Author-Name: Vo Thi Kim Loan Author-X-Name-First: Vo Author-X-Name-Last: Thi Kim Loan Author-Name: Tran Quoc Khanh Cuong Author-X-Name-First: Tran Quoc Khanh Author-X-Name-Last: Cuong Title: Impact of exchange rate changes on export-import dynamics in Vietnam Abstract: This study examines the impact of exchange rate changes on Vietnam’s export-import dynamics during a transitioning exchange rate regime. Utilizing the Autoregressive Distributed Lag (ARDL) model, our findings indicate that global income and import levels are crucial in bolstering exports, assuming other variables remain constant. Additionally, we uncover that the real effective exchange rate (REER) and money supply significantly influence import patterns, with a central exchange rate mechanism enhancing export volumes by approximately 0.14% compared to a fixed peg system. The Nonlinear ARDL (NARDL) analysis further reveals the long-term asymmetric impacts of REER on trade. By applying a threshold model, we also explore the effects of global income and import volumes on export structural changes, as well as the influence of money supply and REER on import adjustments. The research concludes with policy suggestions to aid Vietnam’s economic growth and trade sustainability within its exchange rate framework.This study employs advanced econometric methods, incorporating the import variable to better explain changes in Vietnam's exports. The findings underscore the crucial role of imports and global income in shaping Vietnam's export performance, while the exchange rate has an insignificant impact. These findings provide useful advice for policymakers to improve trade balance strategies and support economic growth, especially in a fast-changing global economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 9 X-DOI: 10.1080/23322039.2024.2409415 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409415 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2319167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Philip Ayagre Author-X-Name-First: Philip Author-X-Name-Last: Ayagre Author-Name: Anthony Q. Q. Aboagye Author-X-Name-First: Anthony Q. Q. Author-X-Name-Last: Aboagye Author-Name: E. Sarpong-Kumankoma Author-X-Name-First: E. Author-X-Name-Last: Sarpong-Kumankoma Author-Name: Patrick Opoku Asuming Author-X-Name-First: Patrick Opoku Author-X-Name-Last: Asuming Title: Bank mergers and acquisitions and the post-merger and acquisition performance of combined banks: evidence from Sub-Saharan Africa Abstract: This study sought to ascertain the effects of bank mergers and acquisitions on the performance of merged banks in Sub-Saharan African (SSA) countries between 2003 and 2019. Specifically, the study aimed to investigate the impact of regulation-induced bank (M&A's) on the post-merger profitability of merged banks in SSA. The motivation for the study is to provide evidence for or against the regulator’s claims that regulation-induced bank M&As will improve the performance of merged banks in SSA. The article presents the results of the total sample of all mergers and acquisitions examined in the study and two sub-samples: the regulation-induced M&A sub-sample and the voluntary M&A sub-sample. We measure profitability by return on assets, return on equity, and net interest margin. The paper employed the dynamic panel Generalized Methods of Moments approach to analyse the relationship between bank M&As and profitability. The study found no profitability improvement after M&A across all profitability measures for the total sample and the two sub-samples. Instead, the empirical results reveal that bank profitability suffers after mergers and acquisitions across all profitability measures. The results show that, for regulation-induced mergers and acquisitions, a merged bank’s profitability is adversely affected from the beginning of the merger or acquisition to the sixth year of mergers and acquisitions. The findings also reveal that bank risk negatively affect profitability, while liquidity positively affect profitability except returns on equity. Bank costs-to-income ratios as expected all show negative relationship with profitability. All macroeconomic variables show the expected relationship, positive for GDP growth and negative for inflation.Over the years, some Sub-Saharan African country’s banking markets have undergone reforms, leading to banking consolidations in these countries. After many years of banking consolidations through bank mergers and acquisitions in SSA, regulators’ claims have yet to be confirmed or refuted to guide other nations who intend to do the same. Empirical research has yet to be conducted to inform future policy decisions of other countries in the sub-region. This study will provide insight into the long-run effects of regulation-induced bank M&As on performance in SSA. Therefore, the study will guide other regulatory authorities in considering bank consolidations as a means to strengthen their banking systems. Bank executives will also be helped by the findings of this study when considering bank M&As as performance improvement and growth opportunities. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2319167 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2319167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2319167 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421888_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Caspar Njoroge Ngigi Author-X-Name-First: Caspar Njoroge Author-X-Name-Last: Ngigi Author-Name: Arvind Goswami Author-X-Name-First: Arvind Author-X-Name-Last: Goswami Author-Name: Harmanpreet Singh Kapoor Author-X-Name-First: Harmanpreet Singh Author-X-Name-Last: Kapoor Author-Name: Rajesh Kumar Jangir Author-X-Name-First: Rajesh Kumar Author-X-Name-Last: Jangir Author-Name: U. Anirudh Author-X-Name-First: U. Author-X-Name-Last: Anirudh Title: Exploring the role of government spending in fostering economic development in Kenya: an ARDL approach Abstract: This study aims to examine the relationship between government spending and economic development in Kenya, given the lack of consensus on the topic globally. While there is an agreement that some level of government expenditure is necessary for economic development, the specific areas of spending that are most beneficial still need to be clarified. This study uses the auto regressive distributed lag(ARDL) model and a Support Vector Machine to explore the effect of public spending on the Kenyan economy from 1980 to 2021. The variables used in this study include GDP, infrastructure, education, health, and defense expenditures. This study hypothesizes that increased investment in infrastructure, health, education, and defense spending leads to accelerated economic development growth in Kenya. The results indicate that education has a negative effect on economic development in the short run but a positive effect in the long run, while health and defense spending have a positive impact on economic development Infrastructure spending has adverse impact on economic development in both the short and long run, but its correlation is low. This study suggests that Kenya should increase funding for education and health, maintain defense spending, and improve infrastructure spending while addressing corruption and bureaucracy.This study investigates the role of government spending in economic development. Historically, there is a debate about the role of the government in the economy. This study addresses this issue, which can be used as an addition in this debate that advocates the enhanced role of government in the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421888 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421888 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2375786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bienvenu Yves-Géthème Gbehe Author-X-Name-First: Bienvenu Yves-Géthème Author-X-Name-Last: Gbehe Author-Name: Yao Silvère Konan Author-X-Name-First: Yao Silvère Author-X-Name-Last: Konan Author-Name: Zié Ballo Author-X-Name-First: Zié Author-X-Name-Last: Ballo Title: Demographic structure, structural change, and economic growth: panel evidence in sub-Saharan African countries Abstract: In the face of rapid demographic transitions, Sub-Saharan African countries stand at a critical juncture where the potential for harnessing a demographic dividend to fuel economic growth is immense. This demographic shift presents both challenges and opportunities, with the right investments in health, education, and employment, countries can turn the growing youth population into a powerful engine for development, driving substantial and sustainable economic progress across the region. This study examines the demographic structure effect on economic growth in the context of structural changes in 26 sub-Saharan African countries. Using data from 1992 to 2019 in the PMG-ARDL, FMOLS, and DOLS estimates, we find that demographic structure has a positive influence on economic growth in the long run, which occurs through effective structural change, that is, structural changes that occur with an increase in labor productivity growth. Indeed, our results show that structural changes are relevant in transforming African youth debt into demographic dividends.The study investigates the impact of demographic structure on economic growth within the context of structural changes in 26 sub-Saharan African countries from 1992 to 2019. It provides a detailed analysis of the impact of demographic transition, characterized by declining fertility rates and an expanding working-age population, on economic growth in sub-Saharan Africa. It highlights the importance of structural changes, such as labor productivity and sectoral composition variations, to transform demographic advantages into sustainable economic growth. Using robust econometric methods (PMG-ARDL, FMOLS, and DOLS), the research demonstrates a significant positive long-term impact of demographic structure on economic development, mediated by effective structural change. The policy implications include promoting family planning and education for young girls, which will help reduce dependency ratios, accelerate demographic transitions, and encourage industrialization and innovation to drive structural change and improve labor productivity. Incorporating demographic characteristics such as education levels and health status into economic planning will help maximize the benefits of demographic transitions. Recommendations include encouraging demographic and sectoral policies to effectively manage demographic transitions and promote structural change and innovation. Future research should include country-specific analyses to address heterogeneity and incorporate additional indicators such as education and health to capture their nuanced impacts on economic growth. The results of this study are significant for policymakers, researchers, and development practitioners working in sub-Saharan Africa. By providing empirical evidence on the interaction between demographic structure and structural change, the study offers valuable insights into strategies for leveraging the demographic dividend to fuel sustainable economic growth in the region. This research contributes to a better understanding of how to navigate demographic transitions and structural changes to achieve long-term economic development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2375786 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2375786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2375786 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdullahi Osman Ali Author-X-Name-First: Abdullahi Osman Author-X-Name-Last: Ali Author-Name: Jama Mohamed Author-X-Name-First: Jama Author-X-Name-Last: Mohamed Author-Name: Mohamed Osman Mohamed Author-X-Name-First: Mohamed Osman Author-X-Name-Last: Mohamed Title: Asymmetric modeling of the fiscal policy–economic growth nexus in Somalia Abstract: Somalia has faced a prolonged challenge of high dollarization, which has limited the effectiveness of conventional monetary policy tools. In response, fiscal policy has taken center stage as the primary means of economic management by the government. This study aims to investigate the asymmetric impact of fiscal policy on Somalia’s economic growth, utilizing annual time series data spanning from 1970 to 2019 and employing the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results indicated the existence of cointegration among the variables. In the long run, both increases and decreases in government expenditure exhibited a significant positive effect on economic growth, with a more pronounced impact observed for decreases in public expenditure compared to increases in government spending. Furthermore, in the short run, both increases and decreases in government expenditure had a significant positive effect on economic growth, although an increase in government spending showed a stronger impact on economic growth compared to a decrease in government expenditure. Notably, the study surpassed various diagnostic tests, ensuring the robustness of the findings. Based on these results, we recommend that policymakers prioritize fiscal policy, particularly public spending, as a crucial channel for fostering economic growth. Additionally, directing public spending towards productive sectors of the economy and promoting fiscal transparency are suggested as means to achieve fiscal policy objectives effectively.Somalia faces a persistent challenge of high dollarization, rendering conventional monetary policy tools ineffective. In response, fiscal policy has become the primary tool for economic management. The asymmetric impact of fiscal policy on economic growth in Somalia remains an underexplored area in the literature, particularly in the context of a least developed country. The research takes the initiative to investigate and understand the asymmetric impact of fiscal policy on Somalia’s economic growth. By utilizing the NARDL model, it aims to provide policymakers with nuanced insights into the specific dynamics of fiscal policy in Somalia. The study evaluates both expansionary and contractionary fiscal policies to offer comprehensive recommendations for effective economic development in this unique and complex environment. Policymakers in Somalia benefit from tailored strategies derived from the study, enabling them to navigate the economic challenges effectively.Researchers and economists gain valuable insights into the asymmetric effects of fiscal policy in a least developed country, contributing to the broader understanding of economic dynamics. The government of Somalia can use the research findings to enhance the design and implementation of fiscal policies, particularly in the allocation of public spending, fostering more effective economic growth. The general population in Somalia stands to benefit from improved economic conditions resulting from more targeted and efficient fiscal policies. This may lead to increased employment opportunities and better living standards. The research contributes to the broader scientific understanding of fiscal policy dynamics in least developed countries. This understanding is crucial for the global community in shaping policies that address the unique challenges faced by such nations. Scholars and researchers focused on economic development, especially in least developed countries, gain from the study's methodology and findings. It adds a nuanced perspective to the existing literature on fiscal policy impacts. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312372 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312372 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312372 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2338971_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Modisane B. Seitshiro Author-X-Name-First: Modisane B. Author-X-Name-Last: Seitshiro Author-Name: Seshni Govender Author-X-Name-First: Seshni Author-X-Name-Last: Govender Title: Credit risk prediction with and without weights of evidence using quantitative learning models Abstract: The credit risk assessment process is necessary for maintaining financial stability, cost and time efficiency, model performance accuracy, comparability analysis and future business implications in the commercial banking sector. By accurately predicting credit risk, highly regulated banks can make informed lending decisions and minimize potential financial losses. The purpose of this paper is to assess the power of conventional predictive statistical models with and without transforming the features to gain better insights into customer’s creditworthiness. The findings of the predicted performance of the logistics regression model are compared to the performance results of machine learning models for credit risk assessment using commercial banking credit registry data. Each model has its strengths and weaknesses, and where one model lacks, another performs better. The article reveals that simpler credit risk assessment techniques delivered outstanding performance while consuming less processing power and have given insights into the most contributing feature categories. Improving a conventional predictive statistical model using some of the feature transformations reduces the overall model performance, specifically for credit registry data. The logistics regression model outperformed all models with the highest F1, accuracy, Jaccard Index and AUC values, respectively.Financial institutions, specifically banks have questioned whether transformations using Weights of Evidence (WoE) have been significant in quantifying the relationship between categorical independent variables for various types of credit data. This study provides insights when considering the usage of feature transformation for credit risk modelling in commercial banking. The transformation technique is particularly useful in situations where statistical predictive modelling techniques are employed. The results revealed that not only can the logistic regression models perform similarly to the machine learning models but can also outperform them. The best performance is attributed to the simplicity, interpretability, and access to understanding features of individual clients within a portfolio of credit products. The logistic regression model without transformation turned out to perform the best out of the five machine learning models. Considering the business impact, enhancing the logistic regression model by using a WoE transformation did not improve the model's performance for commercial banking data considered. However, the transformation did provide insights regarding each binned categorical independent variable. Therefore, our findings in this article contribute towards assisting banks in managing the impact and interpretability of each binned feature category on the discriminatory power of credit scoring. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2338971 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2338971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2338971 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2383083_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Moses Dumayiri Author-X-Name-First: Moses Author-X-Name-Last: Dumayiri Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Paul Author-X-Name-Last: Alagidede Author-Name: Yakubu Awudu Sare Author-X-Name-First: Yakubu Awudu Author-X-Name-Last: Sare Title: Frequency-domain approach to the causal nexus between domestic and international economic policy uncertainties and equity returns of G20 countries Abstract: While uncertainty shocks affect equity markets at various investment horizons, knowledge about the causal effects of uncertainty and equity markets in the frequency domain is scant among the Group of Twenty (G20) countries regarded as systemically important economies. This paper explores the causal relations between domestic and international (US) economic policy uncertainties (EPU) and equity market returns of G20 countries. By employing the frequency-domain causality test, with monthly data spanning January 1997 to June 2021, we reach the following conclusions: 1) irrespective of the frequency, there is more support for the equity-leading hypothesis, implying that domestic stock market volatility contributes to increasing domestic policy uncertainty, as policymakers occasionally have to alter policies in reaction to elevated stock market volatility; 2) the causality between policy uncertainty (whether domestic or international) and equity returns is sensitive to heterogeneous investment decisions and policy uncertainty across horizons in most of our sample; 3) International (US) policy uncertainty has a domineering causal effect in predicting domestic equity returns, relative to domestic policy uncertainty in the short run of about 2.5 months or less. Therefore, the prediction that stock prices fall following government policy announcements is not always supported since countries are different.The G20 forum comprises major economies representing a significant part of global economic activity and playing a crucial role in global economic governance. Therefore, decisions taken at the G20 forum should represent important news for financial markets with potential effects on asset prices. Moreover, market participants in these markets react to and value information relating to policy developments heterogeneously based on the differences in the formation of their beliefs, preferences, risk tolerance abilities, information assimilation, liquidity needs, investment objectives and institutional constraints. However, previous literature has mainly assumed homogeneity in agents’ behaviour, resulting in a dearth of knowledge about the causal effects of uncertainty and equity markets in the frequency domain among the G20 countries. Therefore, this paper analyses the dependence between domestic and international policy uncertainties and equity market returns of G20 countries in the frequency domain. The results show that the dependence patterns between EPU and equity returns tend to vary across different investment horizons in support of the predictions of the fractal market hypothesis. Nonetheless, the stock price leading hypothesis is more dominant regardless of the investment horizon, suggesting that frequent interventions by policymakers to dampen market volatility during periods of high policy uncertainty may exacerbate the uncertainty. Moreover, International (US) policy uncertainty has a domineering causal effect in predicting domestic equity returns relative to domestic policy uncertainty in the short run of about 2.5 months or less. By assuming the homogeneity of market participants, this study offers a nuanced understanding of causal relationships across different time horizons. The findings challenge conventional wisdom about the impact of policy uncertainties on equity markets, revealing complex and heterogeneous effects across countries. These results have significant implications for policymakers, investors, and financial institutions by providing a more accurate and granular perspective on risk management, portfolio allocation, and policy design. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2383083 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2383083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2383083 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2359302_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Adeola Y. Oyebowale Author-X-Name-First: Adeola Y. Author-X-Name-Last: Oyebowale Author-Name: Amr S. Algarhi Author-X-Name-First: Amr S. Author-X-Name-Last: Algarhi Title: Banks, markets, and economic growth in Nigeria Abstract: This paper examines proxies of money market, capital market, and banks in Nigeria using annual data from 1961 to 2018. We employ autoregressive distributed lag (ARDL) bounds testing approach, Wald test, and vector error correction model (VECM) Granger causality technique to analyse the data. Our findings show that total subscriptions of treasury bills has a positive and negative statistically significant relationship with real gross domestic product (GDP) on the long-run and short-run, respectively. Hence, we argue that markets and banks exhibit competitive interaction in favour of markets in Nigeria. Additionally, our findings show a unidirectional short-run causality from real GDP to value of transactions on the Nigerian Stock Exchange (NSE). Furthermore, our results support the existence of growth-led finance view or demand-following hypothesis in Nigeria, as we observe a unidirectional long-run causality from real GDP to both value of money market instruments outstanding as at end-period and total subscriptions of treasury bills.This study investigates finance-growth nexus in Nigeria with a particular focus on banks and markets. The findings of this research reveal that the role of markets on economic growth is superior to banks in Nigeria. Hence, banks and markets are competitive. Additionally, our empirical findings provide evidence to support the existence of growth-led finance view in Nigeria. This research explains the relevance of the financial system on economic growth in Nigeria and provides corresponding insights to policy makers. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2359302 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2359302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2359302 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2423261_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Suresh Kadam Author-X-Name-First: Suresh Author-X-Name-Last: Kadam Author-Name: Madhvi Sethi Author-X-Name-First: Madhvi Author-X-Name-Last: Sethi Title: Target price accuracy of sell-side analysts: evidence from India Abstract: Target prices forecasted by sell-side equity research analysts play a crucial role in market participants’ investment decisions. We, using a large sample for Indian markets, determine during the period and end of the period 12-month ahead target price achievements, examine the effectiveness of valuation methods for determining target prices, evaluate target price accuracy using prediction error metrics, and investigate the factors influencing target price accuracy. Our findings indicate that sell-side analysts have reasonable forecasting abilities, achieving 63% of their target prices over a 12-month forecasting horizon. The level of achievement decreased with increasing optimism in predictions. Analysts generally prefer holistic and multiple-based valuation approaches to determine the target prices. The DCF methodology was less effective than the SOTP hybrid and multiple-based approaches in predicting target prices. We find that more optimistic target prices and higher beta contribute to increased prediction errors, whereas better market returns reduce errors. Analysts struggle to predict prices for loss-making enterprises, and have difficulty forecasting target prices in capital-intensive sectors. These findings contribute to the existing body of knowledge and have significant implications for stakeholders in financial markets.The study examines the accuracy of analysts’ target price forecasts and the factors influencing that accuracy. We find that analysts demonstrate reasonable forecasting abilities, with 63% of their target prices being accurate within a 12-month period. Our results suggest that analysts and brokerage firms should utilize more rigorous valuation models, such as the Sum of the Parts (SOTP) Hybrid, when setting target prices, whenever relevant. Investors should be aware of the limitations linked to analysts’ stock price forecasts, particularly in capital-intensive industries, and should be cautious when considering overly optimistic target price recommendations, especially for small-cap or loss-making companies. Our insights into the impact of valuation methods and capital intensity on target price accuracy contribute new knowledge to the existing literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2423261 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2423261 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2423261 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2423260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kwadwo Boateng Prempeh Author-X-Name-First: Kwadwo Boateng Author-X-Name-Last: Prempeh Author-Name: Christian Kyeremeh Author-X-Name-First: Christian Author-X-Name-Last: Kyeremeh Author-Name: Samuel Asuamah Yeboah Author-X-Name-First: Samuel Asuamah Author-X-Name-Last: Yeboah Author-Name: Felix Kwabena Danso Author-X-Name-First: Felix Kwabena Author-X-Name-Last: Danso Title: Quantifying carbon emissions through financial development in Ghana: empirical evidence from novel dynamic ARDL and KRLS techniques Abstract: The critical issue of environmental degradation emphasises the urgent need for coordinated actions to safeguard and restore the planet’s fragile ecological balance. This study examines the relationship between financial development and carbon emissions in Ghana from 1990 to 2020, focusing on the roles of natural resource rents and economic sustainability. Utilizing time-series data from the World Bank and applying a dynamic autoregressive distributed lag (ARDL) model and kernel-based regularized least squares (KRLS) machine learning technique, the findings indicate that financial development significantly increases carbon emissions in both the short- and long-term. At the same time, natural resource rents have a negligible impact on emissions in the short term but contribute to increased emissions in the long run. Conversely, economic sustainability consistently reduces carbon emissions in the short- and long-run. Our findings highlight the need for policymakers to prioritize green financing initiatives, promote financial products that support renewable energy, and implement stricter regulations on natural resource exploitation. Additionally, incentives for financial institutions to invest in environmentally-sustainable projects are vital for achieving Ghana’s carbon neutrality goals.By investigating the interplay between financial development, natural resource rents, and economic sustainability, this study provides critical insights into carbon emissions dynamics within Ghana, underscoring the implications for environmental policy and sustainable economic growth. Employing advanced econometric models, including the ARDL approach and KRLS machine learning technique, the study reveals that financial development contributes to carbon emissions in both the short and long term. At the same time, economic sustainability effectively mitigates emissions across temporal spans. This work is poised to inform policy directions, advocating for an increased emphasis on green financing, promoting environmentally sustainable financial products, and implementing rigorous regulations on natural resource exploitation. By presenting actionable insights for policymakers and financial institutions, this research supports Ghana’s objectives for carbon neutrality, contributing to a framework for harmonizing economic development with ecological stewardship and resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2423260 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2423260 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2423260 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426542_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abas Omar Mohamed Author-X-Name-First: Abas Omar Author-X-Name-Last: Mohamed Title: Does the Belt and Road Initiative boost industrialization? Empirical evidence from African economies Abstract: Exploiting the economic dividends of the mega-infrastructure investments related to the Belt and Road Initiative as a timely global South-South cooperation model, this study follows the New Structural Economics theory to examine the effects of the BRI membership on Africa’s industrialization. A panel fixed effects and Instrumental Variable (IV) estimation methods were employed to conduct an in-depth empirical analysis of BRI’s impacts on Africa’s industrialization. The study utilized country and firm-level datasets to provide comprehensive macro and micro empirical evidence for 51 African countries from 2000 to 2022. The baseline macro-level findings show that BRI membership and infrastructure investments promoted the aggregate industry value-added share of GDP in Africa. Moreover, the firm-level results provide solid empirical evidence by showing significant annual sales growth of manufacturing firms in African BRI member countries. However, juxtaposing various industry specification measurements, the results did not provide empirical evidence that BRI boosts the narrowly defined manufacturing value added. Meanwhile, consistently withstanding rigorous robustness and heterogenous checks, the study findings provide evidence-based practical policy recommendations for the African economies. Designating BRI as a 21st-century industrialization-led development model, these policy recommendations have overarching implications for achieving economic transformation goals listed in the African Union Agenda 2063.The tiny research on the BRI industrialization strand produced huge controversies with inconclusive results. Another major limitation of these BRI industrialization studies is the ambiguous explanation of the BRI’s mechanism of influence, which relies solely on the BRI membership indicator as the channel of effects. To improve this deficiency, the study contributes to the existing literature in two ways. First, the study includes the values of BRI infrastructure construction projects as a closer indicator of the BRI’s channel of impact on African industrialization. Second, the study combines macro and micro-level empirical evidence and conducts BRI’s deep and shallow industrialization analysis using a large sample of African economies. Employing the panel fixed effects empirical estimation method; the study baseline results show that BRI membership significantly improves African industrialization despite lagging. Furthermore, the Instrumental Variable (IV) results of the firm-level analysis provide solid micro-level empirical validation for the impact of BRI’s macro-industrialization. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426542 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426542 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2302639_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Guglielmo Maria Caporale Author-X-Name-First: Guglielmo Maria Author-X-Name-Last: Caporale Author-Name: Alex Plastun Author-X-Name-First: Alex Author-X-Name-Last: Plastun Title: Persistence in high frequency financial data: the case of the EuroStoxx 50 futures prices Abstract: Differences in the behaviour of asset prices depending on data frequency have not been thoroughly investigated in the literature despite their possible importance. In particular, high-frequency data might contain more information about financial assets because they are updated more rapidly in response to news. This paper explores persistence in high-frequency data (and also daily and monthly ones) in the case of the EuroStoxx 50 futures prices over the period from 2002 to 2018 (720 million trade records) using R/S analysis and the Hurst exponent as a measure of persistence. The results show that persistence is sensitive to the data frequency. More specifically, monthly data are highly persistent, daily ones follow a random walk, and intraday ones are anti-persistent. In addition, persistence varies over time. These findings imply that the Efficient Market Hypothesis (EMH) only holds in the case of daily data, whilst it is possible to make abnormal profits using trading strategies based on reversal strategies at the intraday frequency. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2302639 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2302639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2302639 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2385657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Samuel Amponsah Odei Author-X-Name-First: Samuel Amponsah Author-X-Name-Last: Odei Author-Name: Ivan Soukal Author-X-Name-First: Ivan Author-X-Name-Last: Soukal Author-Name: Eva Freibauer Hamplová Author-X-Name-First: Eva Freibauer Author-X-Name-Last: Hamplová Author-Name: Gabriela Trnková Author-X-Name-First: Gabriela Author-X-Name-Last: Trnková Author-Name: Jan Hruška Author-X-Name-First: Jan Author-X-Name-Last: Hruška Title: The impacts of intellectual protection and R&D collaborations on firm-level innovations: the moderating role of internal funding Abstract: Investments in research and development (R&D) and innovations are proven to be vital catalysts for the successful transition into knowledge-based economies. Despite the growing importance attached to innovations and R&D, they have yet to receive enough scholarly attention in developing countries. This research aims to examine whether intellectual protection and innovation collaborations influence R&D and technological innovations. The empirical results involving 549 firms revealed that trademarks positively and marginally influence technological innovations but not R&D. The findings also revealed that domestic and international innovation collaborations with other firms and universities have a positive marginal effect on both technological innovations and R&D. The results also show that firms’ internal funds significantly moderate the relationship between intellectual protection, technological innovations, and R&D. The main implication from our finding is that Ghanaian firms should consider investing in intellectual protection and forging collaborations with domestic and foreign firms and universities to increase their innovation performance and competitiveness.This research uses insights from the systemic perspective of innovation to examine how firms’ open innovation (domestic and international) and intellectual property rights influence technological innovation and R&D in an emerging economy. We further assess the moderating effect of internal funds in the relationships. Our empirical model based on firm-level data from 549 Ghanaian firms revealed that firms’ collaborations with domestic collaborations with other firms increase technological innovation and R&D, while collaboration with foreign firms increases just technological innovation. The results further proved that firms collaborations with Ghanaian universities increase technological innovation but not R&D. Contrary, firms’ collaborations with foreign universities increase both technological innovation and R&D. Trademarks and copyright protections demonstrated to increase technological innovation and R&D. Utility models were found to increase R&D but not technological innovation. The result of the mechanism effects shows that firms’ internally generated funds positively moderate the relationships between utility models and both technological innovations and R&D. A similar result was found for the positive moderating role of internal funding in the relationships between copyrights and technological innovations and R&D. Contrary, the result proved that internal funding has a negative moderating effect in the relationship between trademarks and technological innovations, as well as R&D. The research findings have several significant implications for theory and practice from the standpoint of enterprises operating in emerging markets. Theoretically, although developed economies have garnered sufficient scholarly attention on innovation collaboration and intellectual property protection, their impact on innovation remains underexplored in emerging markets. Therefore, researching how open innovation involving both domestic and foreign partners as well as intellectual property protection and how they interact with firms’ internal funding resonates with emerging market perspectives. Our findings have provided empirical evidence that open innovation and intellectual property protection influence both technological and R&D activities. These findings contribute to the burgeoning systemic perspective of innovation literature. Second, this study adds some theoretical insights to our comprehension of the effect mechanisms through which these relationships work to impact technological innovation and R&D. These mechanism-effect relationships have not been fully examined by existing studies. The main practical implications from the finding that the low extent of open innovation is that policymakers could extend public funding support to firms and higher educational institutions that intend to collaborate with both domestic and foreign partners. Finally, the allocation of internal funds to assist R&D operations covered by trademarks, utility models, and copyrights should be a top priority for firm management in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2385657 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2385657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2385657 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2408276_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Alicia Ti Author-X-Name-First: Alicia Author-X-Name-Last: Ti Author-Name: Zaäfri Ananto Husodo Author-X-Name-First: Zaäfri Ananto Author-X-Name-Last: Husodo Title: Navigating volatility spillover amidst investor extreme fear in stablecoin and financial markets Abstract: Investor sentiment has the potential to serve as a predictive factor for cryptocurrency assets, yet its impact on volatility spillover across markets remains uncertain. This research investigates the influence of investor sentiment classification on the volatility spillover from stablecoins to conventional financial markets. Empirical findings reveal the role of stablecoins as net volatility receivers from financial assets during extreme fear sentiment conditions, suggesting that stablecoins may function as a potential safe-haven when investors experience significant fear, offering insights to investors and portfolio managers regarding the potential use of stablecoins as a risk mitigation tool within an investment portfolio.Stablecoins play a pivotal role in stabilizing financial markets, particularly during periods of extreme fear and volatility. Using advanced modeling, the analysis uncovers how stablecoins act as critical safe-haven assets, absorbing shocks from both cryptocurrency and traditional markets. This ability to cushion volatility provides investors with a powerful tool for risk mitigation, especially in times of market turbulence. The findings not only highlight stablecoins' growing relevance in portfolio management but also offer key insights for policymakers looking to enhance the resilience of financial systems. By bridging the gap between digital and conventional assets, stablecoins are shown to be vital in maintaining liquidity and market stability, making them essential instruments for navigating both speculative and traditional investment landscapes. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2408276 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2408276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2408276 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2296230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nam Huong Dau Author-X-Name-First: Nam Author-X-Name-Last: Huong Dau Author-Name: Duy Van Nguyen Author-X-Name-First: Duy Author-X-Name-Last: Van Nguyen Author-Name: Hai Thi Thanh Diem Author-X-Name-First: Hai Author-X-Name-Last: Thi Thanh Diem Title: Annual report readability and firms’ investment decisions Abstract: An easy-to-read report may carry positive information for decision making and conversely. In that spirit, this paper investigates the relationship between the readability of companies’ annual reports, defined as the easiness to read, understand, and extract information from the reports, and investment decisions of Singapore companies. Empirical results with an DGMM analysis on 251 domestic companies listed on the Singapore Stock Exchange (SGX) show a positive relationship between the readability of annual reports this year and investments next year. As such, reports’ readability can serve as a signal significant to predict companies’ future investments. Our findings are consistent with signaling theory and contribute significantly to the literature for empirical investigations on the relationship of annual reports’ readability and firms’ investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2296230 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2296230 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2296230 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2307460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Thi Hoa Hong Author-X-Name-First: Nguyen Thi Hoa Author-X-Name-Last: Hong Author-Name: Pham Tuan Kien Author-X-Name-First: Pham Tuan Author-X-Name-Last: Kien Author-Name: Ha Gia Linh Author-X-Name-First: Ha Gia Author-X-Name-Last: Linh Author-Name: Nguyen Vu Ha Thanh Author-X-Name-First: Nguyen Vu Ha Author-X-Name-Last: Thanh Author-Name: Nguyen Le Tuan Author-X-Name-First: Nguyen Le Author-X-Name-Last: Tuan Author-Name: Phung Duc Anh Author-X-Name-First: Phung Duc Author-X-Name-Last: Anh Title: Do climate policy uncertainty and economic policy uncertainty promote firms’ green activities? Evidence from an emerging market Abstract: This study examines the joint effects of climate policy uncertainty (CPU) and economic policy uncertainty (EPU) on the green activities (GAs) of Vietnamese listed companies from 2010 to 2022. CPU and EPU are measured by standardizing the search volume index of relevant keywords using data from Google Trends and Glimpse. Meanwhile, GAs are assessed through variables related to green finance (GF) and green innovation (GI). The findings from multivariate regression models show a positive relationship between CPU, EPU, and either GF or GI in Vietnam during the period of 2010–2022. Furthermore, the interaction between CPU and EPU positively influences both GF and GI among listed firms throughout the research period. This study suggests that governments promoting policies to enhance economic activity or address climate change can facilitate firms in sustaining their green economic activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2307460 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2307460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2307460 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2429769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Glenda Maluleke Author-X-Name-First: Glenda Author-X-Name-Last: Maluleke Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Author-Name: Sheilla Nyasha Author-X-Name-First: Sheilla Author-X-Name-Last: Nyasha Title: Is there a non-linear relationship between renewable energy consumption and economic growth in Namibia? Abstract: This paper examines whether renewable energy has an asymmetric or symmetric impact on economic growth in Namibia for the period 1990 to 2020. The study was motivated by the growing importance of renewable energy in the economic growth process of many economies. Further, knowing whether this relationship is linear or not is crucial for policy formulation purposes, yet no such information is known for Namibia. The study used the Wald test to examine the asymmetric relationship between renewable energy and economic growth. The Wald test results revealed that the relationship between renewable energy and economic growth in Namibia is symmetric, both in the short and long run. Hence, the study only estimated the linear ARDL model. The findings indicate that renewable energy has a positive and significant impact on economic growth in the long and short run. Therefore, the study recommends that Namibia’s government should continue to pursue policies that will enable the government to expand its renewable energy sources as they contribute to economic growth.This study explores the relationship between renewable energy consumption and economic growth in Namibia, specifically investigating whether this relationship is linear or non-linear. The research is particularly relevant given Namibia’s long-term goal of increasing the share of renewable energy in total electricity generation to 60% by 2035. While the study did not identify a non-linear relationship between renewable energy consumption and economic growth, it revealed a consistent positive linear impact of renewable energy consumption on economic growth in both the short and long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2429769 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2429769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2429769 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426537_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hadia Seid Author-X-Name-First: Hadia Author-X-Name-Last: Seid Author-Name: John Kessy Author-X-Name-First: John Author-X-Name-Last: Kessy Author-Name: A. Sigrun Dahlin Author-X-Name-First: A. Sigrun Author-X-Name-Last: Dahlin Author-Name: Zebene Asfaw Author-X-Name-First: Zebene Author-X-Name-Last: Asfaw Title: Homegarden improved avocado cultivation, income diversification, and food security for rural households in Central Ethiopia Abstract: Homegarden avocado cultivation offers a viable option for smallholder farmers to diversify their sources of income and food. This study examined the contribution of avocado cultivars to household income diversification and food security in the Jewe and Upper Gana kebeles of Central Ethiopia. Data were collected from 164 households using a semi-structured questionnaire and supplemented with focus group discussions. The results of this study indicated that Nabal, Hass, and Ettinger were the most commonly cultivated avocado cultivars. On average, the households owned four improved avocado trees. This study revealed that households had highly diversified income sources, with an average SID value of 0.63. The average fruit yields for the Nabal, Hass, and Ettinger cultivars ranged from 45 to 60 kg per household. These cultivars contributed approximately 14% and 10% of the household income sources and food consumption scores, respectively. This study found that, on average, households consumed 40 kg of Hass and 25 kg of Ettinger fruits, and sold 55 kg of Nabal and 25 kg of Ettinger fruits per harvest season. Improved avocado cultivation was positively associated with household income and food consumption. Local governments should encourage cultivation of these cultivars to enhance income and food security for farmers.The cultivation of improved avocado cultivars has sparked significant interest among Ethiopian smallholder farmers owing to the potential benefits offered by the different cultivars. This study examines how avocado cultivars contribute to household income diversification and food consumption among smallholder farmers in Central Ethiopia. The findings indicated that Nabal, Hass, and Ettinger were the most commonly grown avocado cultivars, which significantly contributed to household income sources and food consumption. Furthermore, 64% of the total avocado harvest was used to generate household income, while 36% was used for food consumption. Expanding these three avocado cultivars has the potential to maximise economic profits, enhance food and nutrition security, and support demand-driven avocado farming practices, both within the country and beyond. Consequently, these findings provide valuable information to local government agricultural extension experts, fruit tree development partners, avocado seedling production enterprises, and smallholder avocado farmers. The results can also guide policymakers in developing local-specific enabling policy frameworks that encourage the cultivation of these avocado cultivars on a wider scale, thereby enhancing food security and household income generation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426537 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426537 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426537 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421702_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bulo Feyisa Author-X-Name-First: Bulo Author-X-Name-Last: Feyisa Title: Sources of inflation in Ethiopia: a dynamic ARDL model Abstract: Inflation has recently become a significant obstacle to the Ethiopian government’s efforts to achieve economic progress. Consequently, there is an increasing need to identify the sources of inflation in the country. This study, therefore, analyzed the drivers of inflation in Ethiopia using annual data from 1990 to 2020 and employed an autoregressive distributed lag model for analysis. According to the results of the ADF test, all variables are stationary at first difference. Additionally, the bound test results indicated the existence of long-run co-integration between inflation and its determinants. The study found that money supply, exchange rate, and the gross domestic product of the service sector are significant inflation-augmenting variables, whereas the import volume index and budget deficit are inflation-reducing variables in both the short-run dynamic model and the long-run static model. The coefficient of adjustment, 90 percent, indicates that short-run deviations from the average value of the outcome variable would dissipate within one year. Therefore, the government of Ethiopia should promote agricultural and industrial productivity, implement conservative monetary and exchange policies, and increase imports to reduce the current surge of inflation in the country.This research provides critical insights into the drivers of inflation in Ethiopia, offering policymakers a robust analysis of key economic factors influencing price stability. By identifying the money supply, exchange rate, and service sector GDP as primary inflation-augmenting variables and highlighting the counteracting roles of import volume and budget deficit, this study equips decision-makers with a focused understanding of the economic levers they can adjust to control inflation. The findings underscore the importance of adopting conservative monetary and exchange policies and promoting agricultural and industrial productivity, offering a roadmap to mitigate inflation's adverse effects and foster sustainable economic growth in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421702 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421702 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421702 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2363457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Iman Bastanifar Author-X-Name-First: Iman Author-X-Name-Last: Bastanifar Author-Name: Ali Omidi Author-X-Name-First: Ali Author-X-Name-Last: Omidi Author-Name: Kashif Hasan Khan Author-X-Name-First: Kashif Hasan Author-X-Name-Last: Khan Title: A recursive networking economic analysis of international economic corridors: IMEEC and INSTC Abstract: The expansion of the International North-South Transport Corridor (INSTC) and the introduction of the India-Middle East-Europe Economic Corridor (IMEEC) are of great significance in terms of both politics and trade. This article aims to analyze the methodological shortcomings of traditional models and suggests a new model to evaluate the potential trade benefits of these corridors. The study discusses the reasoning for combining recursive analysis with GIS-network analysis in the logistical planning of international corridors. The authors have used a shopping time model that integrates distance and political risk index (PRI). They have then employed dynamic programming to assess and compare the changing opportunity cost (OPC) of retaining money. The findings suggest that the development of these corridors would provide differing degrees of benefits to different nations, with India being the country that would earn the greatest advantage by joining the IMEEC. Nevertheless, Iran enjoys the most significant benefits in comparison to other members of the INSTC. India stands to benefit somewhat more from its participation in the INSTC compared to the IMEEC.This study offers a pioneering analysis of the economic effects of international trade routes, with a specific emphasis on the India-Middle East-Europe Economic Corridor (IMEEC) and the International North-South Transport Corridor (INSTC). The research proposes a novel approach that combines recursive dynamic programming with network planning. It introduces a new value function that aims to maximise the expected discounted value of future utility for corridor members. This new function considers trade distance and improves upon the traditional model of opportunity cost of holding money. Empirical study provides compelling evidence of the considerable advantages that member nations, namely Iran, Azerbaijan, Russia, and India, experience as a result of the INSTC and IMEEC. Specifically, the INSTC effectively mitigates macroeconomic volatility for Iran, Azerbaijan, and Russia, while the IMEEC offers huge benefits for India. The results emphasise the significance of trade corridors in promoting economic stability, offering policymakers a fresh standard for evaluating the cost-effectiveness and economic advantages of international trade infrastructure investments. Furthermore, the incorporation of a flexible shopping time model emphasises the influence of the duration of transactions on the potential loss of benefits from keeping money, providing a thorough comprehension of how the distance of trade impacts economic well-being. This research has significant implications for international economic policy and infrastructure development. It provides guidance to policymakers on how to optimise trade routes and improve economic stability. Additionally, it paves the way for future research in recursive economic modelling, which aims to develop strong economic policies in a globally interconnected market. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2363457 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2363457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2363457 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2331010_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohamed Chakroun Author-X-Name-First: Mohamed Author-X-Name-Last: Chakroun Title: Health and economic growth: new evidence from a panel threshold model Abstract: The paper examines the relationship between health and economic growth using a dynamic panel with threshold effect and endogeneity. The study uses a sample of 136 countries over the period of 1965–2015 and the results indicate that the relationship between health and economic growth is nonlinear. The findings suggest that the impact of health on economic growth is only positive in countries that have attained minimum benchmarks of health improvement. These findings carry significant policy implications. Low-income countries need a comprehensive approach, encompassing multiple factors, such as education enhancement, productivity boost, and entrepreneurship promotion, that go beyond health promotion to foster substantial economic growth. In countries already attaining satisfactory health outcomes, policies prioritizing improved health outcomes, through directing investments towards Research and Development can serve as an effective means to promote sustainable economic growth.The paper provides an in-depth analysis of the relationship between health and economic growth. By explicitly examining potential non-linearities and thresholds, the study offers insights into how variations in health status may influence economic growth differently across different thresholds or stages of development. By identifying the key health thresholds, the research provides policymakers with actionable insights to allocate resources effectively. This guidance is critical for crafting targeted policies that maximize the impact of health investments on economic development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2331010 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2331010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2331010 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2388233_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Shimeles Getinet Author-X-Name-First: Shimeles Author-X-Name-Last: Getinet Author-Name: Abule Mehare Author-X-Name-First: Abule Author-X-Name-Last: Mehare Author-Name: Aemro Tazeze Author-X-Name-First: Aemro Author-X-Name-Last: Tazeze Title: Determinants of rural households’ willingness to pay for improved potable water supply in Central Rift Valley Ethiopia: contingent valuation method approach Abstract: Access to improved water is a global issue aligned with sustainable economic development. Ethiopia plans to enhance access to safe water through low-cost tech and community mobilization. However, finance is crucial for rural water construction and rehab, and the price mechanisms through users’ contributions can improve the cost recovery of rural water supply. Hence, the objective of this study is to investigate rural households’ willingness to pay (WTP) for improved potable water supply using the contingent valuation method (CVM). Data collected from a randomly selected 272 sample households were analyzed using descriptive and econometrics analysis. The seemingly unrelated bivariate probit (SUBP) econometric model was used to calculate the mean WTP and identify the determinant factors. The results show that 70.96% of the households were willing to pay the initial bid. The results show that sex, annual farm income, off-farm income, the average time it takes to fetch water, use of water treatment and monthly water expense have a positive and significant effect. Yet, household size, perceptions of the quality and reliability of the existing water supply, and bid values have a negative and significant effect. The mean value for improved potable water supply was 1.80 ETB per 20 liters of Jerrican1. Rural households in the study area are willing to contribute up to 7.4% of their annual income. To ensure the financial sustainability and cost recovery of rural water supply, it may therefore be possible to intervene and adopt a new water price system.The objective of this study was to estimate rural households’ willingness to pay improved potable water supply using contingent valuation method. The study reveals the critical need for improved water supply in rural areas, highlighting the significant demand for safe and reliable water supply. It emphasizes the importance of community involvement in water management and provides a platform for collaborative solutions to address water supply challenges. This research provides valuable insights into the willingness of rural households to invest in improved potable water supply, indicating the potential for cost-recovery initiatives and community-driven solutions. The outcome of this study provides relevant information for making sound and well-informed decisions and is essential for developing an optimal pricing strategy which helps to ensure financial sustainability of the rural water supply. It can serve as a baseline data to undertake an appropriate cost-benefit analysis and provide empirical evidence for further researcher on related topics. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2388233 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2388233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2388233 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2414926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mousaab El Khair Ghoujdam Author-X-Name-First: Mousaab Author-X-Name-Last: El Khair Ghoujdam Author-Name: Rachid Chaabita Author-X-Name-First: Rachid Author-X-Name-Last: Chaabita Author-Name: Oussama Elkhalfi Author-X-Name-First: Oussama Author-X-Name-Last: Elkhalfi Author-Name: Kamal Zehraoui Author-X-Name-First: Kamal Author-X-Name-Last: Zehraoui Author-Name: Hicham Elalaoui Author-X-Name-First: Hicham Author-X-Name-Last: Elalaoui Author-Name: Salwa Idamia Author-X-Name-First: Salwa Author-X-Name-Last: Idamia Title: Consumer credit risk analysis through artificial intelligence: a comparative study between the classical approach of logistic regression and advanced machine learning techniques Abstract: This research article presents a comparative analysis between logistic regression as a traditional method, artificial neural networks (ANNs), and decision tree as machine learning techniques for predicting credit risk. It meticulously examines and evaluates these three methods, elucidating their contextual nuances and practical implications. The study utilizes consumer credit data comprising 9766 credit applications. The objective is to explore and evaluate the three models using various performance metrics, including accuracy, sensitivity, F1 score, and area under the ROC curve. Results demonstrate the superior performance of ANNs and decision trees over logistic regression across all metrics evaluated. This study provides compelling evidence endorsing ANNs and decision tree as more effective methods for credit risk prediction, thereby opening avenues for further exploration and application in this domain. However, a limitation of this study lies in its focus solely on three prediction methods, whereas considering additional approaches could have offered a more comprehensive perspective.This study provides valuable insights into the comparative performance of logistic regression, artificial neural networks (ANNs), and decision trees for credit risk prediction, based on a dataset from a Moroccan bank. The results clearly demonstrate the superiority of machine learning techniques, such as ANNs and decision trees, in terms of predictive accuracy and robustness, compared to traditional methods. By proving that these models outperform logistic regression across various performance metrics, this research contributes to improving credit risk assessment practices in the Moroccan financial sector. The implications of this study extend to risk management strategies, where the integration of advanced machine learning techniques can significantly enhance the reliability of forecasting tools. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2414926 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2414926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2414926 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2378961_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Faizi Faizi Author-X-Name-First: Faizi Author-X-Name-Last: Faizi Title: How are Islamic banking products developed? Evidence from emerging country Abstract: Sharia product development in Indonesia faces unique challenges in terms of strategy and innovation compared with conventional products. Islamic banking managers must adhere to Sharia principles to maintain customer trust and comply with Islamic law. Compliance with Sharia principles is not only a religious obligation but also the foundation of the business model. This study used qualitative methods, specifically semi-structured interviews, to validate the Sharia product development practices in Indonesia. Seven experts from diverse backgrounds were interviewed, and their responses were thematically analysed using NVivo version 12. The findings confirm that the Sharia supervisory board and Islamic banking management play crucial roles in developing Sharia products. They collaborate to ensure that Sharia products adhere to the principles, meet customer needs, and comply with relevant regulations and standards. This collaboration enables efficient development of Sharia products that align with values and meet market demands. Moreover, their involvement goes beyond their compliance. They also contribute to the ethical and responsible growth of Islamic banking by fostering customer trust and confidence. Their commitment to upholding the core principles of Islamic banking establishes a solid foundation for the sustainable development of Sharia-compliant products in the global market.Building strong relationships with clients should be a priority for Islamic banks, achieved through a deep understanding of their unique needs and the provision of personalized solutions. This approach helps to establish trust, loyalty, and long-term relationships with customers. Islamic banks should prioritize ethical and responsible banking practices, including transparency in transactions, adherence to ethical standards, and promotion of social responsibility. Islamic banks must effectively communicate the moral and ethical aspects of their business models to customers. This not only helps build customer trust, but also differentiates Islamic banks from conventional banks, attracting customers who value ethical and responsible banking practices. The success of Islamic banks in the competitive banking sector relies on their ability to strategically position themselves by continually innovating and developing products that meet the needs of their target customers. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2378961 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2378961 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2378961 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2374419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Richard Eshun Author-X-Name-First: Richard Author-X-Name-Last: Eshun Author-Name: George Tweneboah Author-X-Name-First: George Author-X-Name-Last: Tweneboah Title: Effects of stock market development on economic growth in ECOWAS: does institutional quality matter? Abstract: This study aims to establish whether the effect of stock market development on the growth of economies in the Economic Community of West African States (ECOWAS) is conditioned by institutional quality threshold. To this end, we used the Hansen threshold estimation approach to assess any discontinuities in this relationship. Data are sourced from the World Development Indicators of the World Bank and cover the period from 2000–2020. We significantly contribute to the literature by examining the nonlinearities in the stock market development-growth nexus when institutional quality is the mediating variable. We established that, as long as institutional quality is below the threshold level, it serves as an impediment for financial markets to drive growth in the West African sub-region. A key implication is that the relationship between stock market development and economic growth in the West African sub-region is contemporaneous, and that the development of the stock market is relevant in the developmental agenda in the sub-region. Therefore, we recommend that at the policy level, countries in West Africa should design strategies that can improve their institutional structures in the areas of allocation of credit, increasing competition, and the implementation of proper regulations that will make it possible for financial markets to stimulate economic growth, as these seem to be important condition to drive growth in the long run.Improving the financial sector is important to guarantee the sustainability of economic growth. This is not different from the Economic Community of West African States (ECOWAS). Regional blocs seek to accomplish this by developing robust and sound stock markets within a solid and healthy institutional framework. This study examines the effect of stock market developments under a strong institutional framework on the economic output of the ECOWAS region. The results show that a robust stock markets and ensuring more credit to the private sector can only improve the gross domestic product of ECOWAS member countries when there is a good institutional quality structure in place. This is crucial for ECOWAS member countries experiencing low manufacturing sector output. Robust institutional quality structures and enhanced credit to the private sector must be continually pursued by the ECOWAS to engender the growth of member economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2374419 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2374419 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2374419 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Jean Tony Ezako Author-X-Name-First: Jean Tony Author-X-Name-Last: Ezako Title: The nexus between human development, official development assistance, carbon emissions, and governance in developing countries for the realization of sustainable development goals Abstract: The paper aims to analyze human development through its interactions with environmental protection, governance, and official development assistance (ODA) in developing countries. This is done to allow the decision-makers of the latter to have an optimal approach to sustainable development goals (SDGs). For this matter, we used data from 56 developing countries for the period from 2005 to 2019 with the novel cross-sectionally augmented ARDL and augmented mean group (AMG). Interactive terms have been used for robustness checks. The results showed that, for low-income countries, ODA harms human development while governance effectiveness has a positive impact. The combination of governance effectiveness and ODA has a positive impact on human development. The same positive impact is found for the combination of governance and carbon emissions on human development. For middle-income countries, the findings showed that carbon emissions have a positive impact on human development. The combination of carbon emissions and ODA has a positive impact on human development. We recommend that; first, low-income countries’ policymakers focus on the achievement of the combination of SDG 16 and SDG 17 with SDG 16 as the central piece for SDGs realization; Second, middle-income countries’ policymakers focus on the achievement of the combination of SDG 8, SDG 16, and SDG 17 with SDG 8 as the central piece for SDGs realization. ODA donors must consider the needs of the countries receiving assistance and ease the conditions for obtaining aid. Moreover, we recommend collaboration focused on technology transfer between developed and developing countries.In recent years, the achievement of sustainable development goals has been the aim of many countries. Human development, linked with many sustainable development goals, plays a central role. Moreover, the current context of climate change is taking on a planetary scale, forcing all the governments of the world to consider only development that guarantees the protection of the environment. The 2030 agenda for pursuing sustainable development requires cooperation between all countries of the world while paying particular attention to the developing country. Thus, the objective of this paper is to analyze human development through its interactions with environmental protection, governance, and development assistance in developing countries. This is done to allow the decision-makers of the latter to have an optimal approach to development but also to allow their partners a better allocation of their assistance. For this matter, data for 56 developing countries for the period from 2005 to 2019 with the novel cross-section ARDL and augmented mean group (AMG) were used. Interactive terms have been used for robustness checks. The results showed that, for low-income countries, ODA harms human development while governance effectiveness has a positive impact. The combination of governance effectiveness and ODA has a positive impact on human development. The same positive impact is found for the combination of governance and carbon emissions on human development. For middle-income countries, the findings showed that carbon emissions have a positive impact on human development. The combination of carbon emissions and ODA has a positive impact on human development. For low-income countries, in regards of the positive impact of governance effectiveness on human development, we recommend that decision-makers prioritize the achievement of SDG 16 “peace, justice and strong institutions” and use this objective as a central piece in the achievement of other SDGs, particularly by fighting corruption in all its forms. We recommend as a priority an analysis of the real needs of every country considering its factor endowment not only for the elaboration of good policies but also for the optimal allocation of resources with the aim of achieving SDG 8 “decent work and economic growth”. moreover, low-income countries need cooperation with other countries, reflecting the importance of SDG 17 “partnerships for the goals”. For middle-income countries, carbon emissions, characterizing an increase in economic activity, constitute an important indicator of economic growth and the realisation of SDG 8 “decent work and economic growth”. We recommend that policymakers of middle-income countries focus on the realization of SDG 8 “decent work and economic growth” and use this objective as a central piece in the achievement of other SDGs for human development. Moreover, we recommend to decision-makers in these countries the association of SDG 8 and SDG 17 “partnerships for the goals” (materializing international cooperation) to further optimize human development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330452 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330452 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2325834_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Anwar Hariyono Author-X-Name-First: Anwar Author-X-Name-Last: Hariyono Author-Name: I. Made Narsa Author-X-Name-First: I. Made Author-X-Name-Last: Narsa Title: The value of intellectual capital in improving MSMEs’ competitiveness, financial performance, and business sustainability Abstract: Intellectual capital is now recognized as a factor influencing organizational progress. However, many Micro, Small and Medium Enterprises (MSME’s) in Indonesia still need to understand the importance of intellectual capital to support their organizational performance. This study aims to strengthen intellectual capital succession in MSME’s in Indonesia to improve their competitiveness, financial performance, and sustainability. The population of this study is all MSME’s players in Indonesia. At the same time, the research sample selection is carried out using the criteria, namely MSME’s that have been running their business for at least ten years and use technology in business activities. The calculation of the minimum number of samples was determined from this research method using the SEM (Structural Equation Modeling) analysis test by carrying out several tests, namely composite reliability, coefficient determination, and hypothesis testing. Scientific tests found that human capital affects structural capital, relational capital, and the competitiveness of MSME’s in Indonesia. Structural and relational capital mediate the strong relationship between human capital and the competitiveness of MSME’s in Indonesia. Structural and relational capital can also mediate the strong relationship between human capital and the continuity of MSME’s businesses in Indonesia. Meanwhile, the relationship between human capital and the financial performance of MSME’s in Indonesia can only be weakly mediated by structural and relational capital. These findings certainly provide new evidence about the importance of intellectual capital for the sustainability and competitiveness of today’s MSME’s businesses.This study aims to strengthen intellectual capital succession in MSMEs in Indonesia to improve their competitiveness, financial performance, and sustainability. In this study, the authors formulate empirical references and findings related to improving the quality of MSMEs to compete and survive through the influence of human capital on structural capital, relational capital and the competitiveness of MSMEs in Indonesia. Scientific tests found that human capital affects structural capital, relational capital, and the competitiveness of MSMEs in Indonesia. Structural and relational capital mediate the strong relationship between human capital and the competitiveness of MSMEs in Indonesia. Structural and relational capital can also mediate the strong relationship between human capital and the continuity of MSME businesses in Indonesia. Meanwhile, the relationship between human capital and the financial performance of MSMEs in Indonesia can only be weakly mediated by structural and relational capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2325834 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2325834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2325834 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2361040_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Godfrey J. Kweka Author-X-Name-First: Godfrey J. Author-X-Name-Last: Kweka Title: Electricity fluctuations and tax revenue in Sub-Saharan Africa: insights from a bias-corrected linear dynamic panel model Abstract: Electricity is an important ingredient for development; however, inadequate electricity supply and its frequent fluctuations adversely affect the productivity and profits of small and medium enterprises in sub-Saharan Africa (SSA). In turn, the adverse effects pose challenges to economic growth and subsequently narrow further the low tax base in the region. Information regarding the macroeconomic effects of electricity fluctuations on the tax base in SSA is limited, thus calling for a detailed and refined study of this nature to analyse the effect of electricity fluctuations on the tax base in SSA. A bias-corrected linear dynamic estimator is employed for the analysis using a panel dataset for 41 SSA countries from 2000 to 2022. The results show that electricity consumption is positively related to the tax base in SSA while electricity fluctuation creates fiscal losses in terms of narrowing the tax base. Specifically, gross capital formation and informal economic activities are adversely affected by electricity fluctuations. This is a dramatic dampening effect that requires policy attention. The results indicate that the African governments in SSA need to increase investments in (including renovation of) the electricity infrastructures and diversify sources of energy into visible and tangible levels. This is because unreliable supply of electricity denies these countries the benefit of digital transformation, especially internet access. Sustaining the pace of stable and reliable electricity is paramount for economic growth and the growth of tax revenue in SSA countries. The article offers a highlight in energy policy review to include reliability as a prime concern for elevating economic growth and tax base in SSA countries.The findings suggest that African countries should speed up renovating/investing in electricity infrastructures that would enable expanded access to electricity and the Internet, among other digital transformation opportunities. Furthermore, policymakers and communities in SSA should continue expanding their knowledge on another source of energy (including renewable energy) in view of ensuring sustainable and reliable access to electricity in the region to support economic growth and subsequent expansion of the tax base. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2361040 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2361040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2361040 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2306536_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Haruna Musa Author-X-Name-First: Haruna Author-X-Name-Last: Musa Author-Name: Nor Hayati Binti Ahmad Author-X-Name-First: Nor Hayati Binti Author-X-Name-Last: Ahmad Author-Name: Alias Mat Nor Author-X-Name-First: Alias Mat Author-X-Name-Last: Nor Title: Extending the Theory of Planned Behavior in financial inclusion participation model – evidence from an emerging economy Abstract: Recently, researchers have deployed the Theory of Planned Behavior (TPB) to examine factors influencing financial inclusion participation behaviour. However, more must be made to expand the theory by integrating sectoral and contextual variables. Hence, this study extends TPB by intergrating additional financial inclusion participation behavior determinants in Nigeria, an emerging economy. The study employed a quantitative research methodology with a positivist research design. The target population included 23 million adults aged 15 years and above in Northwest Nigeria. From this population, a sample of 500 adults was selected using a stratified simple random sampling technique. Data from the sample was collected through survey questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that all the original TPB variables, attitude, subjective norms, perceived behavioural control, and behavioural Intention, strongly influenced financial inclusion participation. It was also found that of the three new variables included, awareness and government support significantly influenced financial inclusion participation behaviour. In contrast, access to banking and digital channels was found to be insignificant. These findings imply that for better financial inclusion and participation, the government should play a proactive role in ensuring essential awareness about new banking products and services, especially those that align with the dominant religious beliefs of the Northwestern region, such as Shariah-compliant banking products and services. Additionally, policy support should be extended to enhance access to banking and digital channels for Nigeria’s underserved communities.This research paper enhances the Theory of Planned Behaviour (TPB) in the realm of financial inclusion by introducing new variables, including Awareness, Government support, and Access to banking and digital channels. The findings propose actionable steps for both Governments and Financial Services Providers. Specifically, in Northwest Nigeria, where literacy rates are low, it emphasizes the importance for the government to raise awareness of financial products, advocating for policies that promote knowledge and visual promotions in rural areas. Recommending a review of the National Financial Inclusion Strategy (NFIS) for 2019-2024 is essential for optimizing efforts to achieve the revised 95% financial inclusion target in Nigeria by 2026. Despite urban banking penetration growth, limited access to digital channels in rural areas impedes financial inclusion progress. The study suggests that financial institutions leverage insights to expand Islamic banking offerings, either by incorporating Islamic banking windows in conventional banks or establishing new Islamic banks to cater to Sharia-compliant financial service demand. Positive attitudes and perceived behavior control in the northwest region present opportunities for introducing Islamic financial products (IFPs) and garnering support for formal financial systems. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2306536 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2306536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2306536 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Average Chikowore Author-X-Name-First: Average Author-X-Name-Last: Chikowore Author-Name: Admire Chawarika Author-X-Name-First: Admire Author-X-Name-Last: Chawarika Title: Impact of land reform policy on tobacco export performance: case of Zimbabwe Abstract: This study seeks to analyze the impact of land reform on the export performance of tobacco, since the cash crop is a major foreign currency earner for Zimbabwe. A gravity model was adopted for the study using secondary panel data from 1992 to 2018. The findings show that 17.2% of the explanatory variables in the model are responsible for changes in tobacco export performance. Land reform, agricultural financial assistance, and distance had significant negative effects on tobacco exports. Land reform must be accompanied by other reforms that complement its success, such as market structure, financing arrangements, and property rights.This research provides critical insights into the effects of land reform on Zimbabwe’s tobacco export performance, highlighting the complexities and challenges associated with policy changes in agricultural sectors. The study reveals that while land reform is intended to empower local farmers and redistribute resources, it can also negatively affect export performance without complementary reforms. The findings underscore the importance of a holistic approach to land reform, where improvements in market structures, financing arrangements and property rights are integrated to enhance the success and sustainability of reforms. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399960 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399960 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kidist Gebreselassie Author-X-Name-First: Kidist Author-X-Name-Last: Gebreselassie Author-Name: Lamessa T. Abdisa Author-X-Name-First: Lamessa T. Author-X-Name-Last: Abdisa Title: Assessing gender equity among businesses in Ethiopia: implications for gender profitability gap Abstract: Evidence shows that gender inequality characterizes the enterprise landscape in sub-Saharan Africa, with women disproportionately concentrating in low return businesses. With the literature leaning toward comparing male- and female-owned enterprises and among females in female- and male-dominated sectors, evidence of a gendered profit gap within male-dominated sectors is scanty and mixed. This study evaluated the gender profitability gap and identified drivers of female participation in male-dominated and high-return sectors using the Ethiopian Socioeconomic Survey 2018/19 dataset. The study did not find evidence of gender gap in profit both before and after controlling for other factors affecting enterprise profit. Our result shows that women with larger households, a longer duration of migration, and better assets are more likely to engage in male-dominated sectors, whereas those who are widowed/divorced/separated and have small children are less likely to engage in such sectors. Larger households and longer durations of migration are more likely to be associated with female engagement in high-return sectors, whereas home-based business is less likely. From this, females in male-dominated sectors tend to have better support systems and lower vulnerabilities. Thus, the findings of the study warrant interventions in access to information on business opportunities, workspace, and paid care services.This study examines gender disparities in profit for businesses within male-dominated sectors. Our findings show no significant gap between female- and male-owned firms, even in high-return sectors. This highlights the importance of equal opportunity for women entrepreneurs. These robust results support efforts towards gender equality and women’s empowerment in business.The study explores why women participate in male-dominated and high-return sectors. It finds that these sectors are not always interchangeable, and household factors like childcare heavily influence female participation. Importantly, the study highlights the role of family support systems and other female entrepreneurs in encouraging women to enter male-dominated sectors. This emphasizes the social and economic influences beyond just industry dominance that impact female entrepreneurship.By examining profitability gaps in male-dominated sectors and the factors influencing women’s participation in both these and high-return sectors, this study offers valuable insights for policymakers. It highlights the need for childcare support to ease women’s entry into male-dominated fields and proposes further research into alternative models for evaluating gender dynamics and business performance. Ultimately, the study paves the way for a more inclusive and equitable entrepreneurial landscape by providing evidence and direction for future initiatives. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364039 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364039 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Huan Huu Nguyen Author-X-Name-First: Huan Huu Author-X-Name-Last: Nguyen Author-Name: Vu Minh Ngo Author-X-Name-First: Vu Minh Author-X-Name-Last: Ngo Author-Name: Uyen Hoang Dinh Nguyen Author-X-Name-First: Uyen Hoang Dinh Author-X-Name-Last: Nguyen Title: Public health and economic outcomes tradeoffs during the COVID-19 pandemic: political perspectives Abstract: This comprehensive study delves into the nuanced relationship between public health initiatives, particularly non-pharmaceutical interventions (NPIs), and their economic repercussions amid the COVID-19 pandemic. Employing a dataset spanning from February 2020 to June 2021, this study conducts a comprehensive analysis of the interplay between democracy, Nonpharmaceutical Interventions (NPIs) and economic outcomes, with a particular focus on unemployment rates. The research findings indicate a nuanced interaction between democracy and the implementation of NPIs, suggesting that democratic contexts do not only enhance the NPI measures’ overall efficacy in curbing the pandemic but also preserve economic stability, particularly by mitigating the adverse effects on unemployment rates. Thus, nations with their robust economic reserves and democratic infrastructures, have effectively employed NPIs to protect public health while mitigating economic downturns, aligning with the ‘Zero-COVID’ strategy. The study also presents a compelling argument that nations under economic strain can still benefit from NPIs, provided they operate within a democratic framework. This assertion is supported by evidence suggesting that democratic governance plays a pivotal role in the effective implementation of NPIs, facilitating both health crisis management and economic stability.This study explores the complex relationship between nonpharmaceutical interventions (NPIs) and their economic impact during the COVID-19 pandemic, particularly focusing on how democratic governance influences this dynamic. Using data from 50 countries over 17 months, the paper demonstrates that NPIs, such as lockdowns and social distancing, effectively mitigated the spread of COVID-19. Importantly, it reveals that democratic nations, due to their governance structures, were better equipped to balance public health imperatives and economic stability, especially in mitigating unemployment. The research emphasizes the critical role of democracy in ensuring effective implementation of NPIs while reducing the adverse economic consequences. The significance of this work lies in its contribution to understanding how different governance models influenced pandemic management. By offering insights into the interplay between health and economic outcomes, the findings provide valuable lessons for policymakers, especially in the context of managing future public health crises. The study also challenges the perception that public health and economic objectives are mutually exclusive, instead advocating for a more integrated approach that ensures both health preservation and economic resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409417 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409417 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421886_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ramatu Ussif Author-X-Name-First: Ramatu Author-X-Name-Last: Ussif Author-Name: Jamal Mohammed Author-X-Name-First: Jamal Author-X-Name-Last: Mohammed Author-Name: Ussif Abdul-Aziz Sirin Author-X-Name-First: Ussif Abdul-Aziz Author-X-Name-Last: Sirin Title: The effect of fuel prices on agri-food sector output in Ghana Abstract: This paper applied the Cobb-Douglas production function to look into the impact of global crude oil prices on agricultural output in Ghana. Annual time-series secondary data spanning from 1980 to 2020 were utilized, sourced from the World Development Indicators and the US Energy Information Administration. The variables employed included agriculture value added per gross domestic product (GDP), international Brent crude oil prices, agricultural employment as a percentage of total employment, Tractors and agricultural equipment, as well as the proportion of land used for agriculture. To investigate the short- and long-term correlations between these variables, the Autoregressive Distributed Lag (ARDL) cointegration technique was employed. A unit root test was performed to evaluate the stationarity of the variables before ARDL analysis. The EViews Statistical/Econometric package facilitated the analysis. The findings from the ARDL cointegration estimates revealed a negative correlation between international crude oil prices and agriculture value added per GDP. According to the model, all variables exhibited cointegration over both the short and long term. Control variables, including agricultural employment as a percentage of total employment and agriculture machinery and tractors, showed a positive correlation with agriculture value added per GDP. However, agricultural land was found to be insignificant in influencing agricultural output.The research evinced a negative effect of crude oil prices on agricultural output in Ghana, hence rising fuel cost could trigger food insecurity and threatens livelihoods, highlighting the need for policy interventions that stabilize energy costs and support sustainable agricultural practices. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421886 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421886 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2359599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Rik Bose Author-X-Name-First: Rik Author-X-Name-Last: Bose Author-Name: Jeevan Nagarkar Author-X-Name-First: Jeevan Author-X-Name-Last: Nagarkar Author-Name: Sushant Malik Author-X-Name-First: Sushant Author-X-Name-Last: Malik Author-Name: Nisha Bharti Author-X-Name-First: Nisha Author-X-Name-Last: Bharti Title: Unveiling the interlinkage between Ethereum and Nifty indices: impact of cryptocurrency on Indian equity markets post Covid-19 Abstract: Predictability of the various financial instruments can lead to more trust and investment. The study examines the long-term and causal relationship between various Nifty indices and the Ethereum cryptocurrency. This study considers the data from April 2015 to December 2022 in two phases, pre-covid and post-covid. Johansen’s cointegration test was used to determine if the vectors in the data set are cointegrated, using the Max-Eigen and Trace tests for evaluation. The Granger causality test was also used to explore the short-term causal relationship between Ethereum and the five Nifty indices. The study found that post-pandemic daily returns of stock market indices have developed a significant cointegration with the cryptocurrency over time. The Granger causality test results showed bi-directional relationships of Nifty 50, Nifty 200 and Nifty Next 50 with Ethereum and a unidirectional relationship between Nifty Auto and Ethereum. The non-linear results reveal a one-way relationship pre-covid and a bi-directional relationship post-covid except for Nifty Banks. Johansen’s cointegration test, both in the pre-and post-covid-era, indicated that these indices had a substantial long-term cointegration with cryptocurrencies. This study also offers guidance to investors in making long-term investment decisions and to regulatory authorities. This implied that the investing decisions resulted in developing a causal relationship between the equity market and cryptocurrencies, which seemed very unlikely before 2020. This indicates that a new and young investor also considered cryptocurrencies a viable alternate investment option compared to traditional options such as fixed deposits, gold, and other fixed-income instruments.The study explores the relationship between Nifty indices and Ethereum cryptocurrency. Bi-directional relationships between Nifty 50, Nifty 200, and Nifty Next 50 with Ethereum are observed. Pre-COVID, a one-way relationship is noted, whereas the relationship was bi-directional post-COVID. These results indicate that consumer trust is increasing in cryptocurrencies and is being accepted as viable investments over traditional investment options. This signals a shift in investor preferences. This finding will also increase the predictability of the market and will impact investor decisions and regulatory frameworks. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2359599 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2359599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2359599 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399947_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Genevieve Gyasi Author-X-Name-First: Genevieve Author-X-Name-Last: Gyasi Author-Name: Joseph Magnus Frimpong Author-X-Name-First: Joseph Author-X-Name-Last: Magnus Frimpong Author-Name: Kwame Mireku Author-X-Name-First: Kwame Author-X-Name-Last: Mireku Title: Examining the currency-equity nexus in frontier African markets: a wavelet-based approach Abstract: This research examines the co-movement between exchange rates and equity prices in a selection of frontier African markets (Ghana, Mauritius, and Tunisia). The analysis encompasses data from 4 January 2010 to 31 March 2023. Employing advanced econometric techniques, the study investigates the interconnectedness of frontier markets and the direction of volatility spillovers between currency and equity markets. Our findings revel that Ghana, Mauritius, and Tunisia are characterized by strong sensitivity to price variations and high volatility. Moreover, significant volatility transmission and spillover effects are observed across the selected markets. Finally, the analysis finds the presence of non-linear dynamics in both the time and frequency domains. In light of these findings, policymakers and investors should incorporate the potential for abrupt and persistent changes, as well as volatility spillovers, into their decision-making processes when considering investments in the Ghana, Mauritius, and Tunisia markets. This research is anticipated to contribute to the development of more robust investment strategies for managing risk exposure within diversified portfolios.This study investigates the relationship between currency and equity markets in frontier African economies using a wavelet-based approach. Focusing on Ghana, Mauritius, and Tunisia, it uncovers significant volatility spillovers and complex, time-varying dynamics. The findings reveal non-linear market behaviors, emphasizing the need for adaptive investment strategies in these volatile regions. By offering deeper insights into the currency-equity nexus, the research provides valuable guidance for investors and policymakers, enabling more informed decision-making and the development of resilient strategies for managing risks in frontier African markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399947 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399947 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399947 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402557_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: James Kofi Blay Author-X-Name-First: James Kofi Author-X-Name-Last: Blay Author-Name: Akshata Nayak Author-X-Name-First: Akshata Author-X-Name-Last: Nayak Author-Name: Isaac Abunyuwah Author-X-Name-First: Isaac Author-X-Name-Last: Abunyuwah Author-Name: Huchaiah Lokesha Author-X-Name-First: Huchaiah Author-X-Name-Last: Lokesha Author-Name: Gracy Chennothumalil Paily Author-X-Name-First: Gracy Author-X-Name-Last: Chennothumalil Paily Title: Asymmetric and threshold price transmission dynamics in onion markets in India Abstract: Functional agricultural marketing system is purported to be the silver bullet and multiplier for stimulating production and consumption and, accelerating the pace of economic and rural enterprise development. Thus, understanding effectiveness of agricultural products market price transmission dynamics in a functional agricultural marketing system is useful for all sections of societies concerned with the marketing of agricultural produce. Thus, this study was conducted to assess the market middlemen response to onion price perturbation. To stimulate policy evaluation and intervention in India onion markets, seven majors’ onion markets namely: Lasalgaon (reference market), Kanpur, Mumbai, Lucknow, Korzhikode, Mysore, and Hyderabad were examined using monthly wholesale prices from January 2011 to December 2018. Market middlemen response to price shocks was examined through the framework of momentum threshold autoregressive model and a regime-switch asymmetric threshold vector error correction model. The results of the estimation procedure revealed that the markets were characterized by threshold co-integration and asymmetric response adjustment path both in the short and long run. The study results indicated that wholesalers responded faster to deviations that tend to increase their profit margin but delayed in responding to prices changes that tend to benefit the producers. We recommend stringent measures against intensification of existing regulated marketing structures that seek to favour middlemen at the expense of producers and consumers and, the conscious effort to improve market intelligence structure for efficient conduct and performance of onion markets in India.The results of the estimation procedure revealed that the markets were characterized by threshold co-integration and asymmetric response adjustment path both in the short and long run. The study results indicated that wholesalers responded faster to deviations that tend to increase their profit margin but delayed in responding to price changes that tend to benefit the producers. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402557 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402557 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402557 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2381682_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Asha Prasuna Author-X-Name-First: Asha Author-X-Name-Last: Prasuna Author-Name: Alivelu Kasturi Author-X-Name-First: Alivelu Author-X-Name-Last: Kasturi Author-Name: Ramesh Annemalla Author-X-Name-First: Ramesh Author-X-Name-Last: Annemalla Title: Unveiling the factors influencing financial inclusion in India: a comprehensive analysis Abstract: Financial Inclusion (FI) is one of the most important indicators of inclusive growth of an economy. This paper examines the status of FI in India by constructing a comprehensive financial inclusion index (FII). The data analysis indicates that states such as Goa, Kerala, Tamil Nadu, Maharashtra, and Telangana performed well in FI. Further, a panel data regression model is estimated to know the determinants of financial inclusion in 27 Indian States for the period 2005 to 2020. The composite index can be used to monitor and assess financial inclusion over time and at the grass root level also. The estimated results show that per capita NSDP, literacy rate, urban population share, road length, and number of factories are perhaps the most important financial inclusion determinants. The novelty of this study is to provide a comprehensive understanding of financial inclusion levels across different states in India for two-decade period along with rural and urban financial inclusion levels.The study serves as a critical resource for understanding the dynamics of financial inclusion in India for the two decades period and offers valuable insights for policymakers by identifying key determinants and guide the development of targeted policies aimed at improving financial inclusion, which is essential for economic growth and development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2381682 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2381682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2381682 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2387242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hellen Namawejje Author-X-Name-First: Hellen Author-X-Name-Last: Namawejje Author-Name: Bruno Yawe Author-X-Name-First: Bruno Author-X-Name-Last: Yawe Title: Financial literacy among rural agribusiness women in Luweero District, Uganda: implications for mobile money and village savings and loan associations Abstract: In an era of growing financial complexity, understanding the financial literacy levels of rural agribusiness women is paramount for promoting economic empowerment and inclusion. This study examines the financial literacy levels among rural agribusiness women in Luweero District, Uganda, and the factors influencing these levels. Using binary logistic regression, we analyze the effect of personal financial training, membership in village savings and loan associations (VSLAs), mobile money usage, possession of a bank account, income levels, and education on financial literacy. Our findings reveal the importance of financial literacy training in enhancing financial literacy levels. Additionally, we identify positive associations between membership in VSLAs, mobile money usage, and financial literacy levels. Moreover, perceived financial control emerges as a significant factor affecting financial literacy among rural agribusiness women in Luweero District. These insights have implications for policymakers and practitioners seeking to promote financial inclusion and empowerment among rural communities, particularly through targeted interventions leveraging mobile money and VSLAs.This research highlights the critical role of financial literacy in empowering rural agribusiness women in Luweero District, Uganda. By analyzing the influence of factors such as financial training, village savings and loan associations (VSLAs), and mobile money usage, the study underscores the importance of targeted interventions in enhancing financial literacy. Our findings demonstrate that financial education, participation in VSLAs, and mobile money usage significantly improve financial literacy levels, which in turn supports economic empowerment and inclusion. These insights provide valuable guidance for policymakers and practitioners aiming to promote financial inclusion in rural communities through strategic, evidence-based programs. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2387242 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2387242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2387242 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2382354_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: M. Aravind Author-X-Name-First: M. Author-X-Name-Last: Aravind Author-Name: C. G. Manojkrishnan Author-X-Name-First: C. G. Author-X-Name-Last: Manojkrishnan Title: Risk appetite and hedging strategies: the impact of age cohorts in financial markets Abstract: The financial instruments are subject to market risk, and the degree of risk may differ. Numerous demographic and behavioral factors determine the willingness of retail investors to face market risk. This work examines the direct effect of investors’ risk appetite on their risk mitigation strategies and the indirect effect of investors’ risk appetite on hedging strategies through financial intermediaries. In both situations, the age cohort is fixed as a moderator. The data consists of 612 active stock market investors across India. The analysis has established partial mediation in the indirect path. The investors aged 26–40 appear to be risk-oriented, whereas those above 60 reported being risk-averse. These results show that risk appetite decreases with age, and people prefer stable returns to volatility as their age progresses. This research points to policymakers and intermediaries to design portfolio management services that fit the investors’ age group.The purpose of this study is to examine whether the risk appetites (RA) of retail investors can have an impact on their hedging strategies (HS) in financial markets and how the age factor is influencing the risk aspiration of the investors. The mediation role of financial intermediaries (FI) in the risk mitigation process and how the service of financial intermediaries (FI) was availed of by investors across age cohorts were duly examined. The study results show that the young investors are more risk-oriented than the older ones and they prefer to rely on their own hedging strategies rather than the tips suggested by financial intermediaries. This result suggests that stock brokers and financial intermediaries must design a balanced decision-making board on the basis of the age group of the investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2382354 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2382354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2382354 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431528_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bhuvan Arora Author-X-Name-First: Bhuvan Author-X-Name-Last: Arora Author-Name: Joseph Daniel Author-X-Name-First: Joseph Author-X-Name-Last: Daniel Author-Name: Anwesha Aditya Author-X-Name-First: Anwesha Author-X-Name-Last: Aditya Title: Market dynamics in India: analysing interconnections among oil, stocks, gold and forex markets Abstract: This paper examines the relationship between India’s Stock Market, Forex Market, Oil Market, and Gold Market to capture interdependencies addressing both direct and indirect market linkages. The study provides new insights into the interdependencies of key markets within India, an emerging economic powerhouse and significant oil consumer. For the same, our analysis is divided into two parts. Part 1 is based on daily data, where we explore the long-run relationships from 1st January 2000 to 15th December 2023 among the markets (oil, stock, gold, and forex) using the Vector Error Correction Model. Further, monthly data from January 2000 to December 2023 (Part-2) has been employed to analyse market mechanisms through intermediary variables. We use data from 10 macroeconomic variables: Bombay Stock Exchange (BSE) Prices, INR/USD Exchange Rate, Consumer Price Index, Bank Interest Rate, 91-day Risk-free Government Bond Yield, Global WTI Oil Prices, WTI Futures, National Gold Prices, and India’s and China’s Imports and utilised Simultaneous Equation Models. As a major oil refiner, Indias deepening integration into global economy highligjts its markets' role in shaping international strategies and promoting insights into resilience and interdependencies amid uncertainty. Oil prices (WTI) are positively associated to WTI futures, reflecting the forward-looking nature, while gold shows a weak negative, though statistically insiginificant correlation with WTI, indicating minimal direct impact.This research provides a comprehensive analysis of the interdependencies among India's stock, forex, oil, and gold markets, shedding light on their dynamic relationships and resilience in the context of a rapidly globalizing economy. The findings not only enhance our understanding of market interconnections in one of the world's largest oil consumers but also offer critical insights for policymakers, investors, and global economic strategists navigating uncertainty and volatility in interconnected markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431528 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431528 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2416992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Suresh Vasani Author-X-Name-First: Suresh Author-X-Name-Last: Vasani Author-Name: Ahmed Mahdi Abdulkareem Author-X-Name-First: Ahmed Mahdi Author-X-Name-Last: Abdulkareem Title: MSME market presence and competitiveness in a global economy Abstract: This study explores the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in India, with a specific focus on export-related issues, including quality standards, document acquisition, and compliance with foreign regulations. Using a sample of 163 MSME service providers from 2019 to 2023, data were collected through structured questionnaires and analysed using ANOVA to assess the significant differences in challenges faced by micro, small, and medium enterprises. The findings reveal that medium-sized enterprises face the highest percentage of difficulties related to document compliance and quality standards, while micro and small enterprises encounter distinct challenges in immigration documentation and export readiness. The study underscores the importance of targeted government support and policy interventions to address these challenges and enhance the export capabilities of MSMEs. Limitations of the study include a narrow geographic focus and reliance on quantitative data, which may not fully capture the complexity of export challenges. Future research should expand the scope to other regions and integrate qualitative methods to provide a more comprehensive analysis. This research contributes to the literature by highlighting the export-related barriers in the MSME sector and offering insights for policymakers to improve their international competitiveness.The research paper “MSME Market Presence and Competitiveness in a Global Economy” examines the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in India's economic landscape, with a focus on their contribution to Gross Value Added (GVA) and export performance. The study analyzes the changing trends in the MSME sector's GVA share and export market presence from 2019 to 2023, highlighting the sector's challenges and opportunities. A significant finding is the decline in the export share of MSME-related products, which underscores the impact of export-related challenges, such as the lack of awareness about product quality requirements in foreign markets. This research emphasizes the need for enhanced support and targeted interventions to address the issues facing MSMEs, particularly in export activities. By fostering better awareness, creating a supportive policy framework, and providing specialized assistance, the paper suggests that India's MSME sector can significantly improve its global market competitiveness. The findings contribute to a deeper understanding of how MSMEs can be empowered to drive sustainable economic growth, strengthen market presence, and enhance India's position in the global economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2416992 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2416992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2416992 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2308670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Surafel Getahun Ashine Author-X-Name-First: Surafel Getahun Author-X-Name-Last: Ashine Title: Assessment of foreign direct investment inflows into Ethiopia in light of peace and security challenges from 2018 to 2022 Abstract: This paper aims at assessing the foreign direct investment inflows to Ethiopia from 2018 to 2022. A qualitative research method is applied to analyze current and relevant documents, government reports, and case studies, obtained through library research. The results indicate that investment inflows during the year 2018 to 2022 were volatile due to the global COVID-19 pandemic and unsecured political conditions in Ethiopia. During the onset of the Tigray war, FDI inflows to Ethiopia declined by 6%, even though it accounted for more than a third of foreign investment in the sub-region. According to the findings of this paper political instability associated with various ethnic conflicts, most notably the conflict in the Northen Ethiopia, as well as the insecurity in the Horn of Africa, and the acute shortage of foreign currency is currently viable challenges for foreign investors. On the other hand, the interest rate, FDI-friendly economic environment, adequate supply of labor force, adequate raw materials supply, proxy to international markets, conducive fiscal and monetary policy, and easy import and export procedures are economic opportunities for foreign investors in Ethiopia. The article suggests that the government should maintain stable political conditions and peace to attract more investment inflows into Ethiopia in the future as well as the need for a comprehensive assessment of the overall risks faced by foreign investor in Ethiopia due to the high degree of peace and security and foreign direct investment interconnectedness and interdependence. Policymakers can use this information and needs to develop policies that address the risks faced foreign investor operating in conflict-prone regions in Ethiopia. The study highlights the need for policymakers to promote peace and stability to attract FDI inflows, especially from developed countries.The article suggests that the government should maintain stable political conditions and peace to attract more investment inflows into Ethiopia in the future and the need for a comprehensive assessment of the overall risks faced foreign investor in Ethiopia due to the high degree of peace and security and foreign direct investment interconnectedness and interdependence. Policymakers can use this information and needs to develop policies that address the risks faced foreign investor operating in conflict-prone regions in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2308670 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2308670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2308670 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426530_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Franck Essosinam Karabou Author-X-Name-First: Franck Essosinam Author-X-Name-Last: Karabou Title: Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS Abstract: Investment, whatever its nature, is an indispensable channel for increasing economic growth. The aim of this paper is to empirically study the effect of institutional quality and investment on economic growth in WAEMU countries. The methodological approach is based on a dynamic panel model covering the period from 2005 to 2020 for all eight WAEMU countries. Results are obtained using the Dynamic Ordinary Least Squares (DOLS). The results show a significant effect of governance indicators and public investment on GDP per capita. Furthermore, the results show that governance indicators modify the effect of investment (public and FDI) on GDP per capita. These results imply that efforts must be made to take full advantage of the positive effects of investment. As the quality of governance is a key factor in attracting and securing investment, policymakers must adopt strategies to improve governance indicators if they are to achieve their growth objectives. The originality of this research lies in highlighting the effects of Institutional quality and investment on economic growth through a DOLS.Investment is an indispensable channel for increasing economic growth. The goal of our research paper is to empirically study the effect of institutional quality and investment on economic growth in WAEMU countries. The results show a significant effect of governance indicators and public investment on GDP per capita. Furthermore, the results show that governance indicators modify the effect of investment (public and FDI) on GDP per capita. These results imply that efforts must be made to take full advantage of the positive effects of investment. As the quality of governance is a key factor in attracting and securing investment, policymakers must adopt strategies to improve governance indicators if they are to achieve their growth objectives. The originality of this research lies in highlighting the effects of Institutional quality and investment on economic growth through a DOLS. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426530 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426530 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426530 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2382375_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hamdan Bukenya Ntare Author-X-Name-First: Hamdan Bukenya Author-X-Name-Last: Ntare Author-Name: John Weirstrass Muteba Mwamba Author-X-Name-First: John Weirstrass Muteba Author-X-Name-Last: Mwamba Author-Name: Franck Adekambi Author-X-Name-First: Franck Author-X-Name-Last: Adekambi Title: Dynamic correlation and hedging ability of precious metals in pre- and post-COVID periods Abstract: This study examines the dynamic correlations and hedge ratios of precious metal stock returns of the Johannesburg stock exchange in pre- and post-COVID scenarios to determine if they can be used to hedge against adverse market movements. The study uses daily return series of four gold stocks and three platinum stocks listed on the Johannesburg Stock Exchange (JSE) spanning from 11 November 2016 to 31 December 2019, for the pre-COVID period and 02 January 2020 to 10 February 2023, for the post-COVID period. Using t-copula-DCC-GJR-GARCH-skew-t and t-copula-aDCC-GJR-GARCH-skew-t models for pre- and post-COVID periods, respectively and the R-vine copula model for tail dependence analysis during times of extreme market conditions; our findings show that gold stocks are better hedge assets than platinum stocks during downturn market. Further, dynamic hedge ratios show that it is more expensive to hedge against long positions in the JSE index in the pre-COVID period than in the post-COVID period. Hedging effectiveness demonstrates that the dynamic portfolio weights strategy is better than hedge ratios when hedging against the JSE index. Based on the findings in this study, the economy of South Africa could possibly benefit if the government and the private sector reinvigorate the precious metal mining sector.This study assesses the ability of precious metals to continue to act as hedge assets against adverse market movements. Although previous studies have concentrated on the pre-COVID period, this study shows that the post-COVID period is characterized by greater uncertainty and a declining ability of precious metals such as gold and platinum to act as good hedges against longer periods of severe market downturns. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2382375 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2382375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2382375 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Admassu Tesso Huluka Author-X-Name-First: Admassu Tesso Author-X-Name-Last: Huluka Title: How is the multidimensional poverty changing in Ethiopia? An empirical examination using demographic and health survey data Abstract: Utilizing three recent waves of Demographic and Health Surveys data from nationally representative samples, this study employs the Alkire and Foster methodology to gauge the Multidimensional Poverty Index in Ethiopia. Examining various factors including living standards, healthcare, and education access, analysis extends to subpopulation groups. By employing an ordered probit model after data restructuring, trends and determinants of multidimensional poverty at national and sub-population levels are assessed. Key factors impacting multidimensional poverty include location, household head’s demographics (sex, literacy, and age), family size, land area, and region of residence. Despite a notable decrease in households in multidimensional poverty, vulnerability to poverty is on the rise. While multidimensional poverty remains predominantly rural, vulnerability in urban households escalates. Empirical evidence supports growing economic disparity in Ethiopia. Regional disparities are evident, with Somali and Afar regions being the hardest poverty hit. Household size demonstrates a non-linear effect on poverty. This study underscores practical and theoretical implications for poverty alleviation strategies.This article offers a critical analysis of multidimensional poverty in Ethiopia, employing data from the 2011, 2016, and 2019 Demographic and Health Surveys. By applying the Alkire and Foster methodology and an ordered probit model, the study highlights trends and determinants of poverty across different subpopulations. It reveals a concerning increase in the vulnerability of households, despite a decline in multidimensional poverty rates. The findings underscore stark urban-rural disparities and the regressive nature of poverty reduction, with wealthier groups disproportionately benefiting. Regional disparities are also emphasized, particularly in Somali and Afar regions, where poverty remains most severe. The study advocates for targeted, inclusive policy measures such as rural development programs, urban economic reforms, and gender empowerment initiatives. By identifying critical areas for intervention, this research informs policy development aimed at sustaining poverty reduction and preventing relapse into poverty, ensuring equitable benefits of economic growth across all segments of the population. The insights provided have significant implications for crafting effective poverty alleviation strategies and fostering sustainable development in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364359 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364359 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: MD Abdul Bari Author-X-Name-First: MD Abdul Author-X-Name-Last: Bari Author-Name: Ghulam Dastgir Khan Author-X-Name-First: Ghulam Dastgir Author-X-Name-Last: Khan Author-Name: Mohammad Ajmal Khuram Author-X-Name-First: Mohammad Ajmal Author-X-Name-Last: Khuram Author-Name: Md. Jahedul Islam Author-X-Name-First: Md. Jahedul Author-X-Name-Last: Islam Author-Name: Yuichiro Yoshida Author-X-Name-First: Yuichiro Author-X-Name-Last: Yoshida Title: Financial inclusion and expenditure patterns: Insights from slum households in Bangladesh Abstract: Vulnerable households often tend to decrease their human capital expenditures, like education and training, to maintain food and non-food (clothing and housing) expenditures when any income shock occurs. Financial inclusion acts as a safeguard to maintain the stability of human capital investments in households because it provides an opportunity to save additional resources to invest for productive purposes. This study examines the impact of financial inclusion on the expenditure pattern of slum households in Bangladesh using propensity score matching. Four outcomes—food, non-food, educational, and health expenditure—are considered in this study. A heterogeneous analysis and inverse probability weighted regression adjustment estimation were conducted as robustness checks. Our results demonstrate that financial inclusion has only a significant positive impact on slum households’ educational expenditures, while financial inclusion has no impact on food, non-food, or health expenditures. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312364 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312364 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2423258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Elysee Nsengiyumva Author-X-Name-First: Elysee Author-X-Name-Last: Nsengiyumva Author-Name: Joseph K. Mung’atu Author-X-Name-First: Joseph K. Author-X-Name-Last: Mung’atu Author-Name: Idrissa Kayijuka Author-X-Name-First: Idrissa Author-X-Name-Last: Kayijuka Author-Name: Charles Ruranga Author-X-Name-First: Charles Author-X-Name-Last: Ruranga Title: Neural networks and ARMA-GARCH models for foreign exchange risk measurement and assessment Abstract: Market turnover levels and liquidity changes across various territories significantly influence currency prices, leading to continuous fluctuations. Consequently, traders and investors constantly seek strategies to mitigate exchange rate risks. This study aimed to measure and assess foreign exchange risk utilizing Neural Networks and ARMA-GARCH models. Data on five leading currencies, covering the period from 6 January 2016 to 28 June 2024 were sourced from the National Bank of Rwanda. Specifically, the study employed the long-short-term memory (LSTM) model, a type of recurrent neural network, to evaluate the riskiness of asset currencies. The estimated volatilities were compared with those derived from traditional ARCH-GARCH models. Notably, the LSTM model yielded lower root mean square error values compared to the ARMA-GARCH models, demonstrating superior accuracy in forecasting currency volatilities. The findings indicate that EGP and KES are riskier than USD, EUR, and GBP.This research explores advanced methods for measuring and assessing foreign exchange risk using Neural Networks, specifically Long Short-Term Memory (LSTM), and ARMA-GARCH models. By focusing on five significant currencies traded in the Rwandan foreign exchange market, the study demonstrates the superiority of the LSTM model over traditional statistical models, offering a more accurate and reliable approach to predicting currency volatilities. These findings provide valuable insights for financial institutions, investors, and policymakers, equipping them with robust tools for risk management in currency trading and enhancing decision-making capabilities. The model's success in accurately forecasting exchange rate fluctuations also highlights the potential for integrating machine learning into finance, contributing to improved stability and foresight in volatile markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2423258 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2423258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2423258 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2308675_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kwadwo Boateng Prempeh Author-X-Name-First: Kwadwo Boateng Author-X-Name-Last: Prempeh Title: The role of economic growth, financial development, globalization, renewable energy and industrialization in reducing environmental degradation in the economic community of West African States Abstract: Since the ECOWAS region is most susceptible to climate change, factors driving climate change and policy processes are pressuring authorities in the region to take more action in the fight against climate change. In light of this, the paper investigates the role of financial development, globalization, renewable energy, economic growth, and industrialization in reducing environmental degradation in the framework of the N-shaped environmental Kuznets curve hypothesis. Second generation econometric techniques, the Driscoll-Kraay panel regression approach and panel quantile estimation techniques were developed based on a panel dataset of 10 ECOWAS countries from 1990 to 2019. From the analyses, the N-shaped EKC is validated for the ECOWAS region. Moreover, the empirical analysis suggests that lower levels of environmental degradation are associated with increased financial development and renewable energy usage. Globalization and industrialization have a deleterious impact on environmental quality. The results from the U-test estimation also reveal that the shape of the EKC is contingent on the nation under study. On the other hand, the panel quantile estimation results show that the N-shaped EKC holds for low and medium emitters but not for high emitters. Globalization and industrialization significantly promote environmental degradation in all quantiles, while renewable energy homogeneously reduces environmental degradation. Financial development was found to hinder environmental degradation in low and high emitters while having a neutral effect in medium emitters. The paper offers valuable policy directions for policymakers in the ECOWAS region based on the findings. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2308675 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2308675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2308675 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Wiza Ng’ambi Author-X-Name-First: Wiza Author-X-Name-Last: Ng’ambi Author-Name: Getrude B. Mwanza Author-X-Name-First: Getrude B. Author-X-Name-Last: Mwanza Author-Name: Lubinda Haabazoka Author-X-Name-First: Lubinda Author-X-Name-Last: Haabazoka Title: A comparative analysis of Zambian and newly industrialised country manufacturing finance models Abstract: This study compares the Zambian and NICs manufacturing finance models to identify their similarities and differences with a view to enhance Zambia’s manufacturing finance and consequently manufacturing development. It applies structural equation modelling on a merged dataset and contrasts four dimensions of manufacturing finance namely, access to working capital finance, access to investment finance, domestic private start-up investment and foreign private start-up investment. The study finds similarities and differences between NICs and Zambia, and across NICs, showing variations in variable effects across contexts owing to varying political and economic conditions. The study argues that effective policy learning requires analyses of the functional level variations in the learning and exemplar countries.The study contrasts four manufacturing finance models across the study countries, making three main contributions to literature. Firstly, while extant literature presents statistical and qualitative comparisons between NICs and developing countries for policy learning, comparison of the functional models is rarely addressed, this study attempts to fill this gap. Secondly, while finance literature focuses on generic access to finance by operating firms, this study simultaneously analyses four disaggregations of access to finance, namely, working capital finance, investment finance, domestic private start-up investment and foreign private start-up investment. These distinctions help understand the respective characteristics and interrelationships among firm creation investment, and working capital and investment finance for operating firms. Lastly, the study pioneers a detailed modelling of Zambia’s manufacturing finance, a topic and context for which literature is limited. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431463 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431463 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431463 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2367219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohammed Ibrahim Gariba Author-X-Name-First: Mohammed Ibrahim Author-X-Name-Last: Gariba Author-Name: Samuel Amponsah Odei Author-X-Name-First: Samuel Amponsah Author-X-Name-Last: Odei Author-Name: Frank Febiri Author-X-Name-First: Frank Author-X-Name-Last: Febiri Author-Name: Romana Provazníková Author-X-Name-First: Romana Author-X-Name-Last: Provazníková Title: Exploring the mediating role of digital economy in the relationship between fiscal decentralization and the SDGs dimensions in the EU Abstract: The motivation of this research is the surge in the integration of the digital economy (DE) and fiscal decentralization (FD) as crucial issues for countries. To maintain sustainable growth, it is important for EU to adopt sustainable development goal (SDGs) practices. However, the connection between DE, FD, and SDG practices has not been thoroughly examined in existing literature. Therefore, the objective of this study was to examine the mediating role of DE between FD and SDGs in EU. We employed a panel dataset between 2016 and 2022 from Eurostat, the Organization for Economic Cooperation and Development, and Government Finance Statistics, using a quantitative research design, and applied the structural equation model (PLS-SEM) analysis to test the hypotheses. The results indicate that FD has a significant negative effect on economic sustainability but a significant positive effect on environmental and social SDGs. In addition, FD has a significant positive effect on DE. We also found that DE has a significant positive relationship with economic and social SDGs. However, DE has a negative but significant influence on environmental sustainability. This study also proved that DE plays a mediating role between FD and Sustainability. This study contributes to theories of fiscal federalism and resource dependency. These original findings have several practical implications for policymakers and contribute to the current debate on the role of FD in SDGs through DE. hence, we recommend that policymakers prioritize the development of broadband Internet access, e-governance resources, and invest in digital skill training programs.This study examines the mediating role of digital economy between fiscal decentralization and sustainable development goals in the European union. The results indicate that fiscal decentralization has a significant negative effect on economic sustainability. Digital economy has a negative but significant influence on environmental sustainability. This study also highlights that digital economy plays a mediating role between fiscal decentralization and Sustainability. This highlights the importance of digitalization for sustainability dimensions. These robust results support efforts towards a move for a digital economy to foster sustainable growth.Utilizing a panel dataset between 2016 and 2022 from Eurostat, the Organization for Economic Cooperation and Development, and Government Finance Statistics, using a quantitative research design, and applied the structural equation model analysis to test the hypotheses. The results indicate that fiscal decentralization has a significant negative effect on economic sustainability but a significant positive effect on environmental and social sustainable development goals. In addition, fiscal decentralization has a significant positive effect on digital economy. We also found that digital economy has a significant positive relationship with economic and social sustainable development goals. However, digital economy has a negative but significant influence on environmental sustainability.The findings of this research have valuable practical implications for policymakers and guide governments in defining more interesting strategies to manage fiscal decentralization in a wise manner to successfully achieve the objectives of the sustainable development goals through the proper implementation of digital economy on a large scale among societies. It is important for policymakers to strike a balance in fiscal decentralization ensuring efficient revenue allocation mechanisms and enhancing fiscal responsibilities, ensuring that local governments have sufficient autonomy to address local needs while maintaining effective oversight and coordination. Consistent with our results on digital economy and sustainable development goals, governments should prioritize the development of broadband Internet access, e-governance resources, and other digital technologies. Investing in digital skills training programs will ensure that citizens and businesses can take advantage of the opportunities presented by digital economy. The study highlights further research could investigate this model in developing economies to enable comparison. Ultimately, the study paves the way for a more digital and sustainable drive by providing evidence and direction for future initiatives. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2367219 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2367219 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2367219 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2300925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ruijie Chen Author-X-Name-First: Ruijie Author-X-Name-Last: Chen Title: Forecasting Ethereum’s volatility: an expansive approach using HAR models and structural breaks Abstract: Cryptocurrencies have become a popular investment option and the Ethereum has become a mainstream cryptocurrency because of the additional functionality that can be accomplished with the backing of the powerful Ethereum network compared to Bitcoin. The high volatility of Ethereum offers both profits and risks, making it crucial to improve the forecasting ability for its price volatility. The results of this study could be useful for investors and policymakers who are interested in understanding and managing the risks associated with investing in Ethereum. Several studies have explored similar topics using heterogeneous autoregressive (HAR) models for cryptocurrencies, but this paper offers a more expansive approach. This paper employs five-minute high-frequency data to construct 4 HAR models to predict the volatility of Ethereum, taking into account the impact of structural breaks, Bitcoin, SP500 and VIX. The model that considers all factors outperforms other models for out-of-sample predictions for the 1-week forecasting. Due to the nature of the Ethereum price, the HAR-RV model has achieved a perfect fit in 1-day and 1-month forecasting. Therefore, other models have a very small improvement in fitness and prediction accuracy. This paper contributes to the understanding of Ethereum’s volatility and its impact on the cryptocurrency market. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2300925 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2300925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2300925 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2345298_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hellena Mohamedy Mushi Author-X-Name-First: Hellena Mohamedy Author-X-Name-Last: Mushi Title: Analyzing the impact of remittance inflows on Tanzania’s social development and economic growth Abstract: This journal article analyses the impact of remittance (REM) inflows on Tanzania’s social development and economic growth (Egrow) spanning from 1990 to 2022 data from the World Bank (WB), International Monetary Fund (IMF) and World Economic Outlook (WEO) were used. The purpose of this article was to measure the relationship between EGrow and REM by using the following variables: Investment (INV), Population growth (POP Grow), Exchange rate (EXCHR), Government Expenditure (GOVEXP) and Inflation (INFL). The study aimed to examine the impact of these factors on REMs on the EGrow concept by integrating it into REM studies in Tanzania. The selected factors on REMs have not been included in most REM studies conducted in Tanzania; thus, their inclusion in the study expands our knowledge of REM utilization in Tanzania. Utilizing the Fourier Stationarity Test and applying the general to a specific technique, this research findings unveil REMs’ positive and notable impact on Tanzania’s EGrow. Additionally, POP Grow, INV, EXCHR, GOVEXP and INFL exert a robust and substantial influence on REM. In conclusion, the empirical findings underscore the pivotal role of REMs in driving EGrow in Tanzania. The journal article recommended that decision-makers create proactive measures to encourage REM inflows.This study investigates the dramatic impact of remittance inflows on Tanzania’s socioeconomic environment between 1990 and 2022. The study examines the complex relationship between remittances and key economic indicators such as investment, population growth, exchange rates, government spending, and inflation by combining data from reputable sources such as the World Bank, International Monetary Fund, and World Economic Outlook. By include these variables in the research, the study not only improves our understanding of remittance dynamics, but also sheds light on hitherto unknown aspects of their impact on Tanzanian economic growth. The findings show a significant and positive relationship between remittance inflows and economic progress, highlighting remittances’ critical role in driving Tanzania’s growth trajectory. Furthermore, the study reveals the subtle linkages between remittances and other socioeconomic indicators, revealing their strong and significant impact on one another. This detailed analysis not only contributes to the academic conversation on remittances, but it also recommends policymakers to focus more on policies that encourage the diaspora to contribute to the country’s development. In this sense, the government should devise novel strategies to capture the diaspora’s funds. The study emphasizes the need of taking proactive efforts to promote and exploit remittance inflows for Tanzania’s long-term socioeconomic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2345298 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2345298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2345298 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2345437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Jean-Luc Mubenga-Tshitaka Author-X-Name-First: Jean-Luc Author-X-Name-Last: Mubenga-Tshitaka Author-Name: Dambala Gelo Author-X-Name-First: Dambala Author-X-Name-Last: Gelo Author-Name: Johane Dikgang Author-X-Name-First: Johane Author-X-Name-Last: Dikgang Author-Name: John W. Muteba Mwamba Author-X-Name-First: John W. Author-X-Name-Last: Muteba Mwamba Title: Panel threshold effect of climate variability on agricultural output in Eastern African countries Abstract: Recent scientific literature shows that in many developing countries, variability in rainfall and temperature in growing season has detrimental effects on agricultural output, especially when the variability is high. It is yet unclear to what extent or threshold these variations impair the agricultural productivity in some parts of Africa. In this study, we answer this research question using a dynamic panel threshold model on a panel dataset of East African countries for the period 1961–2020. We incorporate climate variables disaggregated into growing and non-growing seasons. The empirical results indicate that growing rainfall variability has significant effects on agricultural output. More specifically, we found a significant negative effect from rainfall variability in spring and summer, when precipitation variability exceeds thresholds of −0.533 mL and −0.902 mL respectively. However, these effects are indistinguishable from zero in fall season. Regarding a growing-season temperature variability, we found no significant effects across seasons. Policy implications are discussed.The findings suggest that African countries should speed up renovating/investing in small scale technologies to alleviate the impact of the within growing season precipitation variability. To mitigate the effect caused by the growing seasonal variability in precipitation, technologies such as flexible planting, rainwater harvesting, smart water-management systems that use drop-bydrop, sprinkler irrigation processes to improve agricultural output. Furthermore, new policies should be implemented by governments to encourage innovation in technology. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2345437 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2345437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2345437 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2357155_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Pamela Efua Ofori Author-X-Name-First: Pamela Efua Author-X-Name-Last: Ofori Author-Name: Ametus Kuuwill Author-X-Name-First: Ametus Author-X-Name-Last: Kuuwill Author-Name: Bright Quaye Author-X-Name-First: Bright Author-X-Name-Last: Quaye Title: Effect of human capital development and institutional quality on inclusive growth in African countries Abstract: The study examines the impact of human capital and governance on inclusive growth in Africa. It further explores how governance dynamics influence the relationship between human capital and inclusive growth. Drawing on macro data spanning 43 African countries from 2005 to 2020 and employing the two-step system generalized method of moments (SYS-GMM) estimation technique, the following findings emerge. First, human capital promotes inclusive growth in Africa, while governance has a diminishing effect. Second, the six governance indicators counteracted the positive effect of human capital on inclusive growth. This means that negative governance dynamics completely nullify/dampen the positive effect of human capital on inclusive growth. In conclusion, the anticipated benefits of human capital in fostering inclusive growth may remain elusive unless significant improvements are made to Africa’s weak institutional fabric.This research sheds light on SDGs 4 and 10 by providing a comprehensive understanding concerning the interaction between human capital development and governance, and their effect on inclusive growth in the context of Africa. This study establishes that human capital development promotes inclusive growth whereas governance hinders it. Compelling evidence from the interactive analysis shows that governance nullifies the positive effect of human capital on inclusive growth. The main message from this research is that Africa’s poor economic, political, and institutional governance undermines the role of human capital development in inclusive growth. This research calls for proactive investments that enhance Africa’s institutional fabric and human capital development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2357155 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2357155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2357155 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2382359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tadesse Soka Gignarta Author-X-Name-First: Tadesse Soka Author-X-Name-Last: Gignarta Author-Name: Dinkneh Gebre Borojo Author-X-Name-First: Dinkneh Gebre Author-X-Name-Last: Borojo Author-Name: Zhenzhong Guan Author-X-Name-First: Zhenzhong Author-X-Name-Last: Guan Title: The impacts of economic policy uncertainties on agriculture export Abstract: The agricultural sector has experienced increased haphazard policy interventions and has been exposed to different policy uncertainties. However, relatively little empirical research has been done on how economic policy uncertainties (EPU) affect agricultural exports. Thus, this paper explores the effects of trade and economic policy uncertainties on agriculture exports. It also assesses trade agreements’ mediation function and logistics performance in the EPU-agricultural export relationship. The Poisson pseudo-maximum likelihood (PPML) method is employed to apply the structural gravity specification using data for 60 high-income and emerging economies from 2007-2018. The findings disclose that policy uncertainties adversely impact agricultural exports. The impacts of EPU remain qualitatively indistinguishable from those of a high-income or an emerging economy. However, emerging economies suffer more severe trade policy uncertainty impacts on agriculture exports than high-income countries. The results further prove that strong logistics and trade agreements mitigate policy uncertainty’s effect on agriculture exports. Besides, the results demonstrate that policy actions to improve EPU to the mean value of the sample result in a 2.6% reduction in tariff. Policymakers should take swift and decisive actions to reduce uncertainties and promote agriculture exports. Additionally, this study calls for improving trade agreements and logistics infrastructure to promote agricultural exports.The agricultural sector has faced unpredictable policy uncertainties. Therefore, this study examines the effects of trade and economic policy uncertainties on agricultural exports, considering the role of trade agreements and the logistics performance of the countries. The study utilizes data from 60 agricultural goods exporting and 60 destination countries. The PPML model is utilized to exercise the structural gravity model to find the outcomes.Findings implied that economic policy uncertainty negatively affect agricultural exports, with emerging economies suffering more than high-income ones. However, better logistics performance and trade agreements can mitigate the negative impacts of uncertainties on agricultural exports. Besides, the results highlight that the higher the GDP per capita in the exporting country, the weaker the negative effects of EPU on agriculture export. Moreover, the results show that emerging economies have far more severe agricultural export losses from TPU shock than high-income countries.The significance of this research work lies in its practical implications and policy frameworks to elucidate the complex link between policy dynamics and agricultural export, enabling governments and policymakers to develop more resilient and adaptive policies to mitigate the adverse effects of trade and economic policy uncertainties. Besides, the findings of the study contribute to strategic decision-making for agricultural producers and exporters during high policy uncertainties. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2382359 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2382359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2382359 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2422966_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Chia-Chun Tsai Author-X-Name-First: Chia-Chun Author-X-Name-Last: Tsai Author-Name: Li-Yu Chen Author-X-Name-First: Li-Yu Author-X-Name-Last: Chen Author-Name: Chen-Wei Huang Author-X-Name-First: Chen-Wei Author-X-Name-Last: Huang Author-Name: Peng-Yu Zeng Author-X-Name-First: Peng-Yu Author-X-Name-Last: Zeng Author-Name: Su-Ling Yeh Author-X-Name-First: Su-Ling Author-X-Name-Last: Yeh Title: Psychological dynamics of unit-linked insurance product decision-making: a cognitive model Abstract: Investment and insurance constitute pivotal subjects in financial management, especially in an era characterized by inflation. Unit-Linked Insurance Plans (ULIPs), with a unique combination of investment risks and insurance protection, potentially trigger distinct psychological processes that have been inadequately explored. To bridge this gap, the current research aims to develop a cognitive model for decision-making in purchasing ULIPs. Utilizing structural equation modeling, our research manipulated information related to ULIP products (performance and dividends) while measuring participants’ perceptions, cognitive assessments, emotional states, and investment willingness concerning the products (bottom-up pathway), along with their traits such as risk tolerance (top-down pathway). Our results indicated that perceived performance and dividends affect cognitive assessment and positive emotions within the bottom-up pathway, thereby enhancing the willingness to invest in ULIPs. Conversely, risk tolerance negatively affects perceptions, evaluations, and emotions associated with ULIPs in the top-down pathway. Understanding the perception of product characteristics and individuals’ risk tolerance plays a crucial role in shaping financial decisions. These findings have significant implications for the ULIP decision-making processes.In an era of financial complexity, this research develops a cognitive model that illuminates the psychological mechanisms underlying Unit-Linked Insurance Plan (ULIP) investment decisions. Findings reveal that perceived performance and dividends positively influence cognitive assessments and emotions, enhancing investment willingness, while individual risk tolerance negatively modulates product perceptions, evaluations, and emotions. This nuanced framework provides insurance companies with empirically grounded strategies for understanding investor behavior, ultimately advancing the personalization of financial product development and marketing approaches. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2422966 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2422966 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2422966 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312373_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ousmane Dieng Author-X-Name-First: Ousmane Author-X-Name-Last: Dieng Author-Name: Babacar Sene Author-X-Name-First: Babacar Author-X-Name-Last: Sene Title: The transmission mechanism of monetary policy in West African Economic and Monetary Union (WAEMU): evidence from bank balance’ sheet Abstract: The objective of this research is to assess the effect of holding government securities on the credit channel, taking into account the heterogeneity of WAEMU banks’ balance sheets. The methodology adopted to achieve this objective is VAR panel modelling, proposed by Abrigo and Love. The generalized moment method was applied to a sample of 95 commercial banks operating in the WAEMU covering the period 2000–2019. The main results show that a strong presence of government securities in banks’ balance sheets contributes to the reinforcement of the financial crowding-out effect in the WAEMU. This crowding-out effect differs from one category of bank to another. Indeed, the negative relationship between government securities and the credit channel is more pronounced among large banks, national banks and pan-African banks, in contrast to other bank categories in this Union. The results also point to an asymmetrical effect of monetary policy on the lending behaviour of WAEMU banks to private borrowers. However, the WAEMU monetary authorities should step up supervision of banks that hold a large proportion of sovereign debt on their balance sheets. The high proportion of sovereign debt on banks’ balance sheets creates situations of interdependence. This could have negative consequences on the solvency of banks and therefore on the stability of the banking system in the Union.The aim of this research is to strengthen the existing literature on the transmission mechanisms of monetary policy. This research involves several players in the economic sphere: the Central Bank, commercial banks, WAEMU member states and the private sector (businesses and households). Indeed, it will attempt to provide a solution to the monetary authorities and regulators of the WAEMU area, by contributing to the effort to develop the public securities market and improve the financing of the economies of the Union’s countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312373 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312373 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312373 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Author-Name: Kokou Wotodjo Tozo Author-X-Name-First: Kokou Wotodjo Author-X-Name-Last: Tozo Author-Name: Denera Atanguegnima Author-X-Name-First: Denera Author-X-Name-Last: Atanguegnima Title: Immigrant-led foreign direct investment and the dynamics of cross-border capital allocation in Africa Abstract: This study investigates the effect of immigration on Foreign Direct Investment in 21 African countries between 1990 and 2021. Using random effects, fixed effects, and heteroscedasticity-based identification methods in a dynamic panel model, we found that countries with higher levels of past Foreign Direct Investment inflows and a higher proportion of Foreign Direct Investment-bound immigrants are more appealing to new investors. These findings encourage a critical examination of immigration policy aimed at promptly admitting skilled and enterprising immigrants while remaining committed to ethical principles, promoting social equity, and safeguarding fundamental human rights.Immigrant investors who lead the way serve as strong drivers for Foreign Direct Investment (FDI) inflows to African countries. Our examination of 21 nations in Africa reveals that successfully attracting immigrant investors is linked to higher overall FDI. To maximize effectiveness, policymakers should concentrate on four crucial strategies: designing immigration policies that favor entrepreneurs, creating comprehensive support systems for post-investment needs, establishing special economic zones with tax benefits, and simplifying administrative procedures for initial investors. These specific interventions generate a self-sustaining cycle of FDI attraction, utilizing immigrant networks to propel long-term economic growth while upholding high ethical principles. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426540 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426540 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426540 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2376952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dogo Armand Dago Author-X-Name-First: Dogo Armand Author-X-Name-Last: Dago Author-Name: Yu Pei Author-X-Name-First: Yu Author-X-Name-Last: Pei Title: The effect of the global COVID-19 pandemic on the secondary sector in Côte d‘Ivoire Abstract: This research investigates the repercussions of the global COVID-19 pandemic on the secondary sector of Côte d‘Ivoire during the period 2020–2022. Using two-stage generalized random effects (G2SLS) instrumental variable (IV) models is a statistical method used in econometrics, particularly in the context of instrumental variable (IV) models. In the context of the study, G2SLS helps in establishing the causal impact of the COVID-19 pandemic on the secondary sector while accounting for potential endogeneity issues. This study comprehensively analyzes the effects of COVID-19, and economic performance, country factors, structural characteristics, responses to fiscal and monetary policies, and overall growth in industrial production. Expanding its focus to a comparative analysis with Nigeria, Egypt, South Africa, China, and France, this research uses a robust econometric approach to unravel the complex dynamics of the secondary sector. From a cross-national perspective, this study provides nuanced insights for policymakers and stakeholders. The findings of this study could contribute to secondary sector public policy strategy-making and instruments definitions to resist similar threats.This study examines the effects of the COVID-19 pandemic on Côte d’Ivoire’s secondary sector. By employing advanced econometric models, it assesses both immediate disruptions and long-term structural changes in industrial production and employment. The research also includes comparative analysis with other countries to provide broader insights. The findings highlight the need for robust public policies and strategies to strengthen the sector’s resilience against future crises, emphasizing the importance of economic diversification and adaptive policy measures for sustainable recovery and development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2376952 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2376952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2376952 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2334128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Quang Minh Nguyen Author-X-Name-First: Quang Minh Author-X-Name-Last: Nguyen Author-Name: Chien V. Nguyen Author-X-Name-First: Chien V. Author-X-Name-Last: Nguyen Title: Corporate governance, audit quality and firm performance – an empirical evidence Abstract: The purpose of the study is to assess the impact of governance capacity and audit quality on the financial performance of enterprises listed on the Vietnam Stock Exchange in the period 2012 to 2021, including 40 selected enterprises, this is a complete stage of development of Vietnam’s stock market including the addition of bond market and derivatives market. Data is collected annually from audited financial statements, annual reports, prospectus. The paper deploys the panel data regression methods such as Pooled OLS, FEM and REM, and the feasible generalized least squares (FGLS); and evaluates the possibility of interdependence between enterprises as well as test the possibility of endogenous phenomena in the research model. Research results confirm that board size has a negative impact on the financial performance of the business, in contrast, the participation of women on the board and the selection of men as CEO have a positive effect on corporate profits. Research results also suggest that enhancement of audit quality can improve corporate performance. In addition, businesses should seek funding by equity, or in the case of debt, businesses should use short-term debt to help them its increase financial efficiency. Finally, the study confirms that large enterprises or enterprises investing in fixed assets have the ability to generate higher profits. Thereby creating a basis for enterprises listed on the Vietnam Stock Exchange to improve operational efficiency.The effective functioning of the board of directors can help the business become more efficient, and this result is better if the business has the ability to choose a reputable auditor. In the case of Vietnam, businesses have an increasingly important position in contributing to the country’s socio-economic development, so evaluating the effectiveness of the board of directors becomes necessary. Research results demonstrated that board size has a negative impact on the financial performance, in contrast, the participation of women on the board and the selection of men as CEO have a positive effect on corporate profits. In addition, enhancement of audit quality can improve corporate performance. A firm should seek funding by equity, or in the case of debt, businesses should use short-term debt to increase its financial efficiency. Further, large enterprises or enterprises investing in fixed assets have the ability to generate higher profits. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2334128 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2334128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2334128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2435926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ngan Bich Nguyen Author-X-Name-First: Ngan Bich Author-X-Name-Last: Nguyen Title: How does a sustainable ocean economy affect national GDP? Abstract: A sustainable ocean economy, or blue economy, encompasses economic activities utilizing marine resources while prioritizing the long-term health of oceans. While its potential to contribute to Gross Domestic Product (GDP) is acknowledged, limited research explores its specific influence on national economic performance. This study investigates how a sustainable ocean economy impacts GDP by examining the balance between economic development and environmental stewardship. Through literature review and empirical analysis, four key sectors—sustainable fisheries, marine biotechnology, renewable energy, and government policies—are identified as significant contributors to GDP. The study also highlights the role of open trade in boosting economic growth. Findings indicate that well-managed sustainable ocean economies enhance GDP, promote social well-being, and strengthen environmental resilience. The research emphasizes the necessity of integrated policy frameworks that support sustainable practices and investments in marine resources. By underscoring the blue economy's potential as a driver of economic development, this study advances current literature and advocates for its pivotal role in fostering national prosperity and sustainability.This research examines the critical relationship between a sustainable ocean economy and national GDP, offering insights into how sustainable practices in marine resource utilization drive economic growth. By identifying key sectors such as sustainable fisheries, marine biotechnology, renewable energy, and government policies, the study highlights their significant contributions to GDP while emphasizing the value of open trade in boosting economic performance. The findings underscore the importance of an integrated policy framework to balance economic development with environmental stewardship. This work not only advances the understanding of the blue economy's potential but also provides actionable recommendations for policymakers to harness its power as a driver of national prosperity and sustainability, ensuring long-term socio-economic and environmental resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2435926 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2435926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2435926 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2413659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Jeffrey Kouton Author-X-Name-First: Jeffrey Author-X-Name-Last: Kouton Author-Name: Johan Didier Kakou Author-X-Name-First: Johan Didier Author-X-Name-Last: Kakou Author-Name: Yann Muriel Okoua Author-X-Name-First: Yann Muriel Author-X-Name-Last: Okoua Title: Sectoral dynamics and environmental quality in Côte d‘Ivoire: assessing the impact of structural transformation Abstract: As global consumption patterns continue to exert unprecedented pressure on ecological systems, the urgent need for sustainable development frameworks has become increasingly evident. This study explores the critical intersection of structural transformation and environmental quality within the context of Côte d‘Ivoire, as the country navigates its National Development Plan aimed at structural transformation. Specifically, this research explores how structural changes across the agricultural, industrial, and service sectors impact environmental quality in Côte d‘Ivoire. Employing a Nonlinear Autoregressive Distributed Lag (NARDL) model, it investigates the asymmetric effects of sectoral contributions to the Gross Domestic Product (GDP) on the ecological footprint, distinguishing between positive and negative shocks during the period 1961–2021. The findings reveal that positive changes in the agricultural sector’s share reduce the ecological footprint by 0.222% in the long term, with no significant short-term impact. Conversely, a 1% negative shock in the sector results in a 0.391% increase in the ecological footprint in the short term. For the industrial sector, a 1% increase in its share leads to a 0.178% reduction in the ecological footprint over the long term, while negative shocks show no significant impact. The service sector demonstrates a positive environmental outcome, where a 1% increase in value-added reduces the ecological footprint by 0.368% in the long term and by 0.288% in the short term. For policymakers, these results highlight the importance of promoting sustainable practices within the agricultural and industrial sectors to achieve long-term environmental goals in Côte d’Ivoire. These results are critical for the implementation of Côte d‘Ivoire’s National Development Plan, which emphasizes the important role of agriculture and industry in its economic transformation, while addressing environmental sustainability.This study provides important understanding into the relationship between structural transformation and environmental quality in Côte d’Ivoire. The research reveals how sectoral shifts in the agricultural, industrial, and service sectors influence the country’s ecological footprint, with a focus on the asymmetric effects of these shifts on environmental outcomes. The findings show that while the agricultural and industrial sectors can reduce the ecological footprint over the long term, negative short-term impacts can arise from rapid sectoral changes, particularly in agriculture. A growing service sector appears to have positive environmental contributions. These results are particularly relevant for Côte d’Ivoire’s policymakers, emphasizing the need to adopt sustainable practices across key sectors to balance economic growth with environmental sustainability. They also highlight the importance of promoting green growth strategies and aligning sector-specific policies with the country’s long-term environmental objectives. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2413659 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2413659 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2413659 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2430140_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Peterson Owusu Junior Author-X-Name-First: Peterson Author-X-Name-Last: Owusu Junior Author-Name: Siva Kiran Guptha Kare Author-X-Name-First: Siva Kiran Guptha Author-X-Name-Last: Kare Title: Are all countries created the same? An asymmetric nexus between the COVID pandemic and G20 stock markets Abstract: The impact from COVID is dire to economies, and G20 countries are no exception irrespective of how developed their market are. This is due to how investors respond to bad and good news alike. Using daily data, for the G20 countries and data on COVID, we employ quantile regression (QR) and quantile-on-quantile regression (QQR) to explore the asymmetric nexus between COVID cases and G20 stock indices returns. Our results show that the pandemic fundamentally has a significant negative effect on all G20 stock returns with a heterogeneous nature across portions of the returns. Also, at varying quantiles of the distribution of stock, we highlight the fact that COVID pandemic has rather occasioned an asymmetric effect on G20 stock returns. Conversely, we notice positive link between the COVID and stock returns at the upper quantiles when the market started to bounce back from the crash. While the pandemic has largely slowed down, it is not completely swept out and the impacts may linger for a little long, hence investors are recommended to be more particular in the stock indices they wish to invest as they observe the erratic dynamics across the G20.The study is important to understand that for investors and policy-makers in the G20 countries, there are differences in how the COVID pandemic affected each country through their stock markets, and this is more complex than meets the eye. It should be noted that while concerted efforts are needed to address happenings like these, they should not be uniform. Investors need this information to spread their finances across the G20 markets to safeguard against losing it all. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2430140 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2430140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2430140 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330840_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bashar Abu Khalaf Author-X-Name-First: Bashar Author-X-Name-Last: Abu Khalaf Author-Name: Antoine B. Awad Author-X-Name-First: Antoine B. Author-X-Name-Last: Awad Title: Exploring the bearing of liquidity risk in the Middle East and North Africa (MENA) banks Abstract: The paper examines how liquidity risk affects the Middle East and North Africa (MENA) bank profitability. Banks need profitability to survive, but liquidity risk measures long-term company health. Through Refinitiv Eikon, quantitative data was collected over 11 years from 2012 to 2022 for 71 MENA banks to support the theoretical study. Return on Equity (ROE), a profitability indicator, is the dependent variable, whereas liquidity risk is the independent variable and controlling for size, loan quality, inflation, gross domestic product, income diversification, operational efficiency, capital adequacy, and growth. This study estimates the impact of liquidity risk on MENA bank profitability using OLS and panel regression (fixed and random effects). Several results were found, such as that bank size, operational efficiency, and non-performing loans negatively affect profitability, suggesting that large banks have higher operating costs and may weaken profitability in MENA. Besides, additional non-performing loans increase the bank’s costs and thus diminish profitability. Also, if the bank has no control over the operational expenses, then this will lead to reduce profitability. Liquidity risk, capital adequacy, income diversification, and growth have a positive significant impact on ROE implying that banks with higher growth opportunities, better capital adequacy ratio, more income sources, and liquidity risk will result in higher profitability as explained by the risk-reward theory. The results are robust and this has been confirmed by applying the Generalized Method of Moments (GMM).This study aims to investigate the influence of liquidity risk on the profitability of banks in the Middle East and North Africa (MENA) region over the period of 2012 to 2022 for a total of 71 banks. The analysis employs Ordinary Least Squares (OLS) and panel regression techniques, including fixed and random effects models. The results are robust and this has been verified by implementing the Generalized Method of Moments (GMM). Multiple findings indicate that factors such as bank size, operational efficiency, and non-performing loans have a negative impact on profitability. Besides, Liquidity risk, income diversification, growth, capital adequacy and gross domestic product have positive impact on profitability. This study provides valuable insights into the complex relationship between liquidity risk and profitability in the banking sector of the Middle East and North Africa (MENA) region. The study's conclusions not only contribute to academic knowledge but also have practical consequences for banking professionals, regulators, and investors, highlighting its broad influence across various sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330840 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330840 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330840 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426534_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Brian Tavonga Mazorodze Author-X-Name-First: Brian Tavonga Author-X-Name-Last: Mazorodze Title: Exports, government debt and economic growth in sub-Saharan Africa Abstract: Exports in sub-Saharan Africa have struggled to generate the kind of growth witnessed in Southeast Asia on the background of rising government debt. This article considers the extent to which government debt, which has tripled since 2008, may have constrained export-led growth in the region. Further examined is the extent to which debt reduction is possible through revenue growth and expenditure cuts. From a sample of 44 sub-Saharan countries observed between 2004 and 2023, the impact of exports on economic growth is found to be stronger in countries with low to moderate levels of debt and weaker in countries with high debt. To achieve robust economic growth from exports, sub-Saharan countries need to keep debt below 45% of GDP. From the results, this requires cutting expenditure on GDP by 2–10 percentage points or raising revenue (excluding grants) by 2–12 percentage points. These estimates are in line with the primary balance adjustment of at least 2 percentage points recommended by the IMF. Estimates further indicate that cutting government expenditure reduces debt more than raising revenue. Counterfactual scenarios show that cutting government expenditure on GDP by 15 percentage points would reduce government debt from 55 to 45% of GDP.This paper addresses the question of why trade has hardly accelerated growth in sub-Saharan Africa and the importance of managing government debt as a moderating factor. The empirical evidence from a panel of 44 countries demonstrates the importance of prudent fiscal policies and debt management strategies as the growth effect of exports is constrained by high government debt. This evidence is consistent with the IMF’s policy stance on the need for urgent debt management strategies in the sub-Saharan region. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426534 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426534 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426534 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2373267_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Omer Ahmed Sayed Author-X-Name-First: Omer Ahmed Author-X-Name-Last: Sayed Author-Name: Selma Sidahmed Abedelrahim Author-X-Name-First: Selma Sidahmed Author-X-Name-Last: Abedelrahim Title: The entrepreneurship-growth nexus in the GCC: does political stability matter? Abstract: This research paper aims to explore the complex relationship between entrepreneurship (REE), economic growth (GDP), and the moderating role of political stability (PS) in the context of the Gulf Cooperation Council (GCC) countries. Utilizing a balanced panel dataset from 2006 to 2020, we employed Panel Least Squares and Panel EGLS (Cross-section random effects) to evaluate the interactions among these variables. The findings reveal that more than entrepreneurship alone is needed to significantly contribute to economic growth in the GCC countries. However, when political stability serves as a moderating variable, the impact of entrepreneurship on economic growth becomes markedly positive. The study provides critical insights for policymakers, indicating the necessity of a multi-faceted approach incorporating entrepreneurship and political stability in economic planning. The research fills a significant gap in the existing literature by shedding light on the intertwined nature of entrepreneurship and political stability as crucial drivers of economic growth in the GCC. This paper further offers concrete policy recommendations rooted in empirical evidence, aiming to guide future economic strategies in the region.This research paper explores the intricate relationship between entrepreneurship, economic growth, and the moderating role of political stability within the Gulf Cooperation Council (GCC) countries. Utilizing a balanced panel dataset from 2006 to 2020, the study employs Panel Least Squares and Panel EGLS (Cross-section random effects) to analyze the interactions among these variables. The findings reveal that entrepreneurship alone does not significantly contribute to economic growth in the GCC countries. However, when political stability serves as a moderating variable, the impact of entrepreneurship on economic growth becomes significantly positive. This research provides essential insights for policymakers, highlighting the necessity of a multifaceted approach that incorporates both entrepreneurship and political stability in economic planning. By addressing a critical gap in existing literature, this study underscores the intertwined nature of entrepreneurship and political stability as pivotal drivers of economic growth in the GCC, offering concrete policy recommendations based on empirical evidence to guide future economic strategies in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2373267 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2373267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2373267 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2328484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kalalto Gashe Author-X-Name-First: Kalalto Author-X-Name-Last: Gashe Author-Name: Zerayehu Sime Author-X-Name-First: Zerayehu Author-X-Name-Last: Sime Author-Name: Melkamu Mada Author-X-Name-First: Melkamu Author-X-Name-Last: Mada Title: Intellectual capital and total factor productivity Abstract: This paper defines total factor productivity as a function of a nation’s intellectual capital. By developing a simple model, it explored the long-run relationship between intellectual capital and total factor productivity. The value of total factor productivity for each country was computed from Penn World Tables 10 using the residual method, and an index of intellectual capital was constructed from several indicators taken from world development indicators. Using a common correlated effect approach, a panel of 29 countries over 31 years was estimated using various dynamic macro panel models. The result confirmed the existence of a positive and significant link between total factor productivity and intellectual capital index. This implies that a potential source of productivity difference lies with a nation’s research and development, human capital, processing, and marketing capabilities in boosting the general innovation process. Thus, national and regional development policies need to consider ways to improve broader innovation. Future research on total factor productivity needs to consider things outside the box.The essential causes of productivity has been a formidable question since enlightenment. In classical and pre-classical periods, the difference in productivity was attributed to differences in geographical and people's attitude to work and luxury. In neoclassical, productiveness was an effect of natural force inside material objects and hence, consider differences in material accumulation as cause of productivity difference. Following the failure of material accumulation, the difference was considered as residual or total factor productivity by exogenous growth models and later confined to technological ideas and its spillover effects by the new endogenous growth models. However, none of these could explain the twin productivity puzzles. In this paper, intellectual capital was hypothesized as an integral factor underlying the scatteredly presumed drivers of differences in productivity across countries. It also provided an empirical justification for an existence of consistent link between total factor productivity and intellectual capital across nations at all levels of development in all economic regions. This implies, the previously fragmented concepts and factors are now the characteristics of intellectual capital. The new insight could simplify the theoretical complexities and empirical inconsistencies in productivity literature. It could also beneficial for national and regional policy makers to broader their view beyond technological innovation in order to improve productivity and catch-up process. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2328484 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2328484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2328484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330429_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kalalto Gashe Author-X-Name-First: Kalalto Author-X-Name-Last: Gashe Author-Name: Zerayehu Sime Author-X-Name-First: Zerayehu Author-X-Name-Last: Sime Author-Name: Melkamu Mada Author-X-Name-First: Melkamu Author-X-Name-Last: Mada Title: Intellectual capital and economic growth: evidence from some selected countries Abstract: The aim of this study is to explain the output growth across countries as an effect of intellectual capital growth. Defining intellectual capital as an integral of all the various intangibles, it argued to resolve the conceptual complexities and empirical inconsistencies. For this, the study defined the flow of new ideas as a function of change in intellectual capital level. Thus, it developed a model in which broad ideas predetermine the quality of capital and labor necessary for final goods production. The model was estimated using dynamic common correlated effect estimators for a panel of 29 countries from all income levels and geographic regions from 1990 to 2020. The results show a positive and significant contribution of national intellectual capital to economic growth. Hence, policymakers must enhance innovation in all spaces and phases of learning.The introduction of intellectual capital (IC) to explain economic growth, amidst unceasing complexities in conceptions and modeling intangibles, offers unprecedented significance for academics and policy issues. The concept of IC helps to encompass both technological and social innovation capabilities. Hence, for scholars interested in this field, the approach provides a novel model that explain the rate of flow of new technological and non-technological ideas of a given nation as a function of change in national IC level. This new idea generation function is also safe from ‘scale effect’, an inevitable problem facing all various generations of endogenous models. For economic policy makers the approach could simplify the conceptual complexities and also helps to look for domestic technological and non-technological capabilities before embarking on absorption of frontier technologies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330429 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330429 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2348543_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dharmendra Singh Author-X-Name-First: Dharmendra Author-X-Name-Last: Singh Author-Name: Garima Malik Author-X-Name-First: Garima Author-X-Name-Last: Malik Author-Name: Prateek Jain Author-X-Name-First: Prateek Author-X-Name-Last: Jain Author-Name: Mahmoud Abouraia Author-X-Name-First: Mahmoud Author-X-Name-Last: Abouraia Title: A systematic review and research agenda on the causes and consequences of financial overconfidence Abstract: The literature on overconfidence has witnessed prolific growth since the beginning of the century. This context underscores the necessity to comprehend and categorize an increasingly diverse body of overconfidence research within the financial domain. This study reviews existing literature on financial overconfidence from its inception to the present with a detailed review of 132 articles from 84 journals by examining theories, context, and methods (TCM) used in overconfidence research. Our review unpacks significant themes (i.e. determinants of overconfidence, overconfidence and risk-taking, overconfidence measures and type of investors, overconfidence in a volatile market, overconfidence, and personal financial behavior). We propose a pertinent research framework to investigate the less investigated aspects of financial overconfidence and suggest future research direction.The significance of this paper lies in its potential to deepen our understanding of how psychological biases and significant overconfidence influence investment behavior and market outcomes. By synthesizing findings from multiple studies, this literature review highlights common themes, identifies gaps in knowledge, and suggests avenues for future research. Ultimately, insights gained from such a review can inform investors, financial professionals, and policymakers about the importance of recognizing and addressing overconfidence in investment decision-making processes. This understanding can lead to more informed and rational investment strategies, potentially mitigating the adverse effects of overconfidence on individual investors and market efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2348543 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2348543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2348543 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2356467_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Shailesh Rastogi Author-X-Name-First: Shailesh Author-X-Name-Last: Rastogi Author-Name: Jagjeevan Kanoujiya Author-X-Name-First: Jagjeevan Author-X-Name-Last: Kanoujiya Author-Name: Rahul Singh Gautam Author-X-Name-First: Rahul Singh Author-X-Name-Last: Gautam Author-Name: Neha Parashar Author-X-Name-First: Neha Author-X-Name-Last: Parashar Title: Impact of environmental efficiency on tourism export under the moderation of inflation: a cross-country analysis Abstract: A country’s tourism sector plays an essential role in the nation’s economy and aids in globalization. With the advanced technological establishments, this sector becomes more promising for economic growth. However, the connection of tourism development to environmental effects cannot be denied. Tourism export is also a recent term in this sector that needs to be explored. Therefore, this study aims to determine the impact of environmental efficiency (EE) on tourism export using the cross-country data of 90 countries for the sample period 2011–2020. The panel data is used for the analysis. The findings suggest that EE adversely affects tourism exports. A negative relationship between the two is also observed under the moderating effect of inflation. It means EE reduces tourism exports under higher inflation. This study notably contributes to existing literature through its unique and novel evidence on the EE and tourism export connection. This study recommends that EE be treated as a critical component of tourism policymaking. Figure A presents the graphical abstract.Source: Author’s own compilationWe explore in the current research the crucial relationship that exists between environmental sustainability and the booming tourism sector. In light of the worldwide concern for protecting our natural resources, our research investigates how environmental efficiency affects tourism export. Our purpose in analyzing this relationship is to offer insights that will help the tourism industry as well as the larger objective of attaining sustainable development. Our mission is to promote a sustainable equilibrium between economic growth and environmental preservation for the benefit of the tourism sector as well as the earth in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2356467 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2356467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2356467 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2420213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Omar Tarda Author-X-Name-First: Omar Author-X-Name-Last: Tarda Author-Name: Hasnah Haron Author-X-Name-First: Hasnah Author-X-Name-Last: Haron Author-Name: Nathasa Ramli Author-X-Name-First: Nathasa Author-X-Name-Last: Ramli Author-Name: Supiah Salleh Author-X-Name-First: Supiah Author-X-Name-Last: Salleh Title: The mediator effect of financial performance on the relationship between board of directors’ size and corporate social responsibility disclosure: a case study of Palestinian listed companies Abstract: The Board of Directors (BOD) is responsible for making strategic decisions within a company and holds significant influence over corporate social responsibility (CSR) policies and their disclosure. Furthermore, financial performance plays a vital role in this relationship, as a strong financial performance can impact a company’s ability to allocate resources towards social responsibility and, consequently, affect its CSR disclosure. The previous studies have not examined financial performance as a mediating variable between BOD size and CSR disclosure. This article aims to examine the level of CSR disclosure in Palestine, analyze the impact of BOD size on CSR disclosure and financial performance, and assess the extent to which financial performance acts as a mediating variable between BOD size and CSR disclosure. The study employs panel data analysis using a sample of 31 companies listed on the Palestine Stock Exchange from 2012 to 2021. The Baron and Kenny approach will be used to examine the mediating effect of financial performance between BOD size and CSR disclosure. The theoretical framework of resource dependence theory will be adopted to understand the relationship between the variables under investigation. The results of this study reveal that the CSR disclosure rate was 29.5% among the companies included in the sample. Additionally, the results show a significant positive direct relationship between BOD size, CSR disclosure, and financial performance. Furthermore, the results indicate that financial performance partially mediates the association between BOD size and CSR disclosure in Palestinian companies.The research paper “The Mediator Effect of Financial Performance on The Relationship between Board of Directors' Size and Corporate Social Responsibility Disclosure: A Case Study of Palestinian Listed Companies” investigates the relationship between BOD size, CSRD, and financial performance in Palestinian companies. By examining this relationship, the study contributes to the growing body of literature on BOD size and CSR in emerging economies, specifically in the context of Palestine. The significance of this work lies in its potential to inform policymakers, corporate leaders, and stakeholders about the importance of large boards of directors as a means to enhance CSR practices and financial performance in Palestinian companies. Furthermore, this research addresses a gap in existing literature by investigating the mediating role of financial performance in the relationship between BOD size and CSR disclosure. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2420213 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2420213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2420213 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2392199_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhammad Fawait Author-X-Name-First: Muhammad Author-X-Name-Last: Fawait Author-Name: Haura Azzahra Tarbiyah Islamiya Author-X-Name-First: Haura Author-X-Name-Last: Azzahra Tarbiyah Islamiya Author-Name: Dyah Wulan Sari Author-X-Name-First: Dyah Author-X-Name-Last: Wulan Sari Author-Name: Tri Haryanto Author-X-Name-First: Tri Author-X-Name-Last: Haryanto Author-Name: Sanju Kumar Singh Author-X-Name-First: Sanju Kumar Author-X-Name-Last: Singh Author-Name: Faiz Masnan Author-X-Name-First: Faiz Author-X-Name-Last: Masnan Title: Does market characteristic determine foreign direct investment spillovers? Abstract: This study examines the significance of foreign direct investment (FDI) and market characteristics both within and across industries in determining the productivity and efficiency of firms. This study also measures the total factor productivity (TFP) growth and its components for both foreign and domestic firms. Using Indonesian annual medium and large manufacturing establishments surveys, wholesale price index, and input-output (I-O) table, the authors calculate the horizontal and vertical spillovers and undertake stochastic frontier analysis to estimate the production and inefficiency function. The results show that the less concentrated market of domestic firms within the industry and suppliers reduces productivity and efficiency, while domestic buyers’ less concentrated markets could have the opposite effect. Most domestic and foreign firms still experience deterioration in TFP growth. The policy recommendation is to encourage firms to improve technological progress, such as upgrading machines and investing in human resources, by providing training workers aiming at mastering better managerial expertise. Policymakers should also ensure that the benefits of FDI spillovers outweigh their disadvantages.This study contributes to extending recent empirical literature on the possibility of spillovers in the Indonesian automotive industry not only from foreign firms within the industry, but also from potential externalities arising from downstream and upstream markets using stochastic frontier analysis (SFA). Generally, studies on FDI spillovers examine the role of FDI in explaining the efficiency differences measured by the distance to the frontier; however, few studies consider the impact of efficiency improvement and technological progress on productivity gains from FDI. This study attempts to capture the sources of productivity gains through both channels. The other studies have never discussed, based on author knowledge, the impact of spillovers regarding domestic firms’ specific market concentration as competitors, buyers, or sellers to foreign firms on efficiency and productivity.This study aims to fill this gap and analyze the importance of market characteristics in determining spillovers, VTI, trade openness, and foreign ownership. Previous studies on market concentration employ the Herfindahl-Hirschman Index (HHI), while this study utilizes the relative entropy coefficient (RE) to provide another approach to measure market concentration.In this study, the industry-specific characteristic is controlled using the inclusion of firm size and industrial dummy variables. The SFA estimation results are calculated to measure output elasticity with respect to each input and total factor productivity (TFP) growth. The discussion provides TFP decompositions, which are technical efficiency change (TEC), technological progress (TC), and scale efficiency change (SEC). Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2392199 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2392199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2392199 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2345304_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Awoke Dejen Minyiwab Author-X-Name-First: Awoke Dejen Author-X-Name-Last: Minyiwab Author-Name: Yismaw Ayelign Mengistu Author-X-Name-First: Yismaw Ayelign Author-X-Name-Last: Mengistu Author-Name: Tarekegn Dessalegn Tefera Author-X-Name-First: Tarekegn Dessalegn Author-X-Name-Last: Tefera Title: The effect of livelihood diversification on food security: evidence from Ethiopia Abstract: Livelihood diversification is relevant in poverty reduction, improve food security and a means of coping mechanism and risk management for survival of households. The research intended to examine the dynamics of livelihood diversification and food security over time, investigate the determinant factors of participation rate among household heads on livelihood diversification and to examine its effect on food security of rural and town households of Ethiopia based on the secondary data of Ethiopia living standard measurement survey. Balanced panel data employed enclosing a total 3729 samples representing national level of Ethiopia. The study used the descriptive analysis, Simpson diversification index and random effect logit model. Dynamics of livelihood diversification and food security observed over time. The random logistic regression model revealed that, household size, gender (female) and distance to market affect the livelihood diversification positively & significantly. Whereas, Age of household head, location (rural), distance to main road, credit access, assistance and experience of shocks influenced the probability of livelihood diversification negatively and significantly. Households who experienced shock and engaged in diversified livelihood have lower food security than being a diversified alone. Policy makers and other stakeholders need to integrate on implementations of livelihood strategies to improve food security, building resilience and vibrant economy.This study investigated the determinants of household participation to livelihood diversification and the nexus between livelihood diversification and household food security in Ethiopia focusing on rural and small town context. The study used survey dataset collected by the living standard measurement study of the World Bank group in Collaboration with the Ethiopian Central statistical Agency. the data collection covered a wide range of representative sample in the country (a total 3729 samples) and the authors analysed the dynamics in food security over three waves of the survey (i.e. 2011/12, 2012/13 and 2015/16) which is critical policy concern stage in the Ethiopian development planning period (Ethiopia’s first growth and transformation plan). The dynamics is observed over the comparison of the survey waves in Ethiopia.The result revealed that, compared with the first wave, 70.9% stayed driving income from one income source 15.9% and 13.2% of them moved to less and high-level diversifications in the second wave respectively. The transition level of food security increased by 10.7% and 3.6% in wave two and three compared with the first wave. Simpson Diversification Index suggested that the pattern and extent falls between 0.00 and 0.84. About 72.5% of respondents reported as relies only in one income source (i.e., agriculture). There was variability of trends of shocks over time which was observed highest score in wave three.Household that experiences shock and engaged in less diversified livelihood have lower food security status than being a diversified alone. Policy makers and other stakeholders need to integrate on implementations of livelihood strategies to increase food security, building resilience and vibrant economy.Thus, this study has the significance to policy makers, practitioners and academicians as it gives take ways to each depending on their respective interest. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2345304 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2345304 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2345304 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2331369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Rex Kweku Awuku Asiama Author-X-Name-First: Rex Kweku Awuku Author-X-Name-Last: Asiama Author-Name: Kevin Nell Author-X-Name-First: Kevin Author-X-Name-Last: Nell Title: Can foreign aid influence the level of industrialization in African countries? Abstract: Capital inflows, such as foreign aid, can serve as a means to enhance infrastructure development in developing countries. This suggests that foreign aid might have an impact on the level of industrialization in African nations. While existing studies indicate that foreign aid can affect the competitiveness of the manufacturing sector by appreciating the real exchange rate, the veracity of this claim relies on empirical evidence. This paper explores the influence of aid on manufacturing value added using time-series data spanning from 1990 to 2018 for 27 African countries. Employing a panel vector autoregression technique and generating associated impulse response functions, the study scrutinizes the interactions between foreign aid and manufacturing. The analysis is conducted on both the full dataset and subsamples disaggregated based on the income levels of countries. The results indicate that foreign aid acts as a stimulus for manufacturing, primarily through a sustained depreciation of the real exchange rate. This finding holds true for both the overall dataset and the subset of low-income countries. The study attributes this phenomenon to the strategic utilization of aid to enhance infrastructure, leading to a reduction in the price of non-tradables relative to tradables. Consequently, this enhances the profitability and output capacity of the manufacturing sector in African countries. In essence, the results suggest that foreign aid plays a role in influencing or stimulating industrialization in African countries. The study concludes with a discussion on the implications of these findings for industrial policy in African nations.This paper determines the extent to which foreign aid influences the level of industrialization in African countries. By using time-series data spanning from 1990 to 2018 for 27 African countries, a panel vector autoregression technique and generating associated impulse response functions, the study scrutinizes the interactions between foreign aid and the level of industrialization in African countries. The analysis is conducted on both the full dataset and subsamples disaggregated based on the income levels of countries. Our results negate the general perception that foreign aid inflows harm industrialization in developing countries, which can affect the competitiveness and profitability of manufacturing and lead to deindustrialization. However, this perception has been one-sided because foreign aid can also be used to boost infrastructure in developing countries. The paper helps to unearth the dominant effect of foreign aid in this context and samples African countries because they are generally less developed and industrialized and stand to benefit from foreign aid. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2331369 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2331369 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2331369 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2385644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdisalan Aden Mohamed Author-X-Name-First: Abdisalan Aden Author-X-Name-Last: Mohamed Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Title: Exploring the dynamics of inflation, unemployment, and economic growth in Somalia: a VECM analysis Abstract: Maintaining optimal levels of unemployment and external debt remains a significant challenge for ensuring consistent economic growth in many developing countries. Despite persistent economic difficulties marked by political instability, high unemployment, external debt, inflation, and limited capital formation, Somalia is increasingly recognizing the importance of fostering stability, instituting economic reforms, seeking debt relief through international collaborations, and promoting inclusive growth. Therefore, this paper empirically examines the relationship between gross domestic product (GDP), unemployment, external debt, inflation, and gross capital formation in Somalia using annual data from 1991 to 2021. To attain the aim of the study, we implemented the Augmented Dickey-Fuller (ADF), vector error correction model (VECM), variance decomposition, impulse response function, and Granger causality test. The outcomes of the study present a negative relationship between unemployment and economic growth, implying the applicability of Okun’s law in Somalia. This suggests that the unemployment crisis in Somalia can be attributed to a lack of economic growth. Furthermore, the study identified that economic growth is negatively associated with inflation and external debt. Moreover, the study reveals unidirectional links between unemployment and GDP, gross capital formation and GDP, GDP and external debt, CPI and GDP, unemployment and gross capital formation, and external debt and unemployment. No causal effects were found in the other combinations of interactions. To sustain economic growth and job creation, the government must implement effective fiscal policies, create an inviting atmosphere, and have a flexible labour market policy to encourage the private sector and small businesses.This study, titled “Exploring the Dynamics of Inflation, Unemployment, and Economic Growth in Somalia: A VECM Analysis,” scrutinizes the intricate interconnections among essential macroeconomic variables in Somalia, utilizing data spanning from 1991 to 2021. Through the application of sophisticated econometric methodologies, the research substantiates Okun’s law, revealing a negative correlation between unemployment and economic growth. Additionally, it elucidates the detrimental impacts of inflation and external debt on economic expansion. The insights garnered from this analysis are invaluable for policymakers, underscoring the imperative for effective fiscal policies and comprehensive economic reforms to stimulate private sector development and the growth of small enterprises. By addressing the critical issues of high unemployment, significant external debt, and persistent inflation, this study offers pivotal guidance for advancing sustainable economic development and ensuring stability in Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2385644 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2385644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2385644 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2384962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Anteneh Tenaw Taye Author-X-Name-First: Anteneh Tenaw Author-X-Name-Last: Taye Author-Name: Yilebes Addisu Damtie Author-X-Name-First: Yilebes Addisu Author-X-Name-Last: Damtie Author-Name: Tesfahun Asmamaw Kassie Author-X-Name-First: Tesfahun Asmamaw Author-X-Name-Last: Kassie Title: Determinants of livelihood diversification and its contribution to food security of rural households in Gozamin Woreda, Ethiopia Abstract: This study was conducted to assess the determinants of rural households’ livelihood diversification and its contribution to household food security status in Gozamin Woreda, Amhara region, Ethiopia. A cross-sectional research design and mixed research approach were used. Primary data were collected with the aid of household surveys, key informant interviews, and focus group discussions. A multi-stage stratified random sampling method was used to select 218 households. The Simpson diversity index result showed that 22.94%, 11.93%, 44.5%, and 20.64% of the households were no, low, average, and high livelihood diversifiers. The food consumption score result indicated that 41.28%, 10.09%, and 48.62% of households were found in poor, borderline, and acceptable food security status respectively. In addition, the ordered logistic regression model revealed that education level, agroecology, memberships of cooperative, access to training, access to transport, access to credit, agricultural risk, and total annual income positively affect while sex negatively affect the status of livelihood diversifications. The ordered logistic regression analysis also revealed that the status of livelihood diversification with has a positive and highly significant effect on the status of food security. The study concluded that when the status of households’ livelihood diversification increased, the status of food security also highly increased in the study area. Therefore, to improve the status of food security, extension workers, local governmental and non-governmental organization and policymakers should give higher attention to increasing the status of livelihood diversification of rural households. Finally, policy implications were made according to the finding of the study.Rural livelihood diversification is a key issue to improve food security. This study aims to identify the determinants of livelihood diversification and its contribution to food security of rural households. As a result, this study revealed that education level, agroecology, memberships of cooperative, access to training, access to transport, access to credit, agricultural risk, and total annual income are the determinants of rural livelihood diversification in Gozamin Woreda, Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2384962 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2384962 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2384962 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2381135_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Banchayehu Girma Firew Author-X-Name-First: Banchayehu Girma Author-X-Name-Last: Firew Title: Gender diversity and firm performance: evidence from Malaysia boardrooms Abstract: This study contributes to the literatures on the influence of Malaysia’s board of directors’ gender diversification requirement (soft law) on women’s participation in such positions. In addition, it examines the effect of gender diversification requirement of the board of directors’ on firm performance, board size, and board member characteristics. The empirical analysis was based on data taken from the Orbis (Bureau van Dijk) database and annual reports posted on the Bursa Malaysia Stock market for 452 large and very large publicly listed firms for the period 2007–2016. The requirement significantly increased female participation in the board of directors, although the 30% set target was not achieved. The findings show that gender diversification of the board of directors has a negative effect on firm size (total revenue and total asset) in only higher technology intensive manufacturing sector and firms in good competition sectors; it has no effect on other sectors. This negative effect finding is consistent with social identity theory. Gender diversification of the board of directors has no impact on firm efficiency (profit margin, Return on Equity (ROE), Tobin’s Q). This result does not support resource dependency and agency theory, or social identity theory. The gender diversity requirement adversely affects the board directors’ level of experience and age with no effect on board members’ size and educational qualifications. The findings are robust across different econometrics models [fixed effect and Instrumental variables (IV)] that deal with endogeneity issues, and alternative firm size and firm efficiency measurements.All communities understood the role of females in economic development. In many countries, Non-Governmental and Governmental organizations are working on gender diversification. This study identifies the effect of gender diversification requirement of Malaysian board of directors on firm performance. This requirement increases female participation in the board of directors. Gender’s diversification of the directors had a negative effect on firm size in only higher technology intensive manufacturing sector and firms in good competition sectors; it has no effect on other sectors. In addition, board of directors’ gender diversity has no impact on firm efficiency measurement. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2381135 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2381135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2381135 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2391941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: José González-Núñez Author-X-Name-First: José Author-X-Name-Last: González-Núñez Author-Name: Fernando José Mariné-Osorio Author-X-Name-First: Fernando José Author-X-Name-Last: Mariné-Osorio Author-Name: Salomón Domínguez Author-X-Name-First: Salomón Author-X-Name-Last: Domínguez Title: Financial literacy is a construct: an ordered logit approximation in Mexico Abstract: This research aims to identify the factors explaining the level of financial literacy, divided into three levels, low, medium and high, of the Mexican population over the age of 18. This study fills a gap in microeconomic studies, which essentially lack an analysis of financial literacy and the study of financial literacy as a construct defined by the ENIF 2021 and by the Organization for Economic Cooperation and Development, in which financial literacy is measured by three components, financial knowledge, behaviour and attitudes; a relevant empirical assumption for this methodology is that the variable does not fit a standard normal distribution. Due to the nature of the dependent variable, an Ordered Logistic Model is used, taking into account independent variables with economic, socio-behavioural and institutional characteristics. The number of observations used was 13,570, in which the sample has a probabilistic, three-stage, stratified, clustered design; the sample represents 90.3 million people over the age of 18. The results show that the main explanatory factors for financial literacy are income level, mobile phone tenure, gender, age and town size. Young people (aged 18-35) are more likely to be financially literate than people over 65, who are less financially literate. Females are also more likely to be financially literate than males. In terms of institutional focus, urban dwellers are more likely to be financially literate than those in rural areas. This paper provides policymakers with a valuable opportunity to understand Mexican society better and improve financial decision-making, money management and positive future behaviours.This study employs the ENIF 2021 to analyse financial literacy as a construct comprising financial knowledge, behaviour and attitude. Furthermore, it identifies the variables that determine this construct, including income level, mobile phone ownership, gender, age and city size. Given the characteristics of this construct, the analysis is conducted using an ordinal logit model. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2391941 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2391941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2391941 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2294631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ezako Jean Tony Author-X-Name-First: Ezako Author-X-Name-Last: Jean Tony Title: Analysis of total factor production and official development assistance relationship in developing countries Abstract: The objective of this paper was to analyze the relationship between official development assistance (ODA) and total factor production (TFP) in developing countries to allow a better allocation of aid. We used a panel of 69 developing countries, 29 low-income and 40 middle-income countries, from 2005 to 2019. System GMM and fixed effects were used both with time, and country fixed effects to get rid of unobserved heterogeneity and possible aid endogeneity. For more precision, we disaggregated aid by sector to assess their effect on the main parts of TFP. The results found showed no significant impact of ODA on TFP. However, for low-income countries, aid in the sector of agriculture had a positive impact on human capital, employment, and real GDP. Aid in the sector of industry had a positive impact on human capital, the share of labor compensation, and the real GDP. For middle-income countries, Aid in the sector of education had a positive impact on employment and capital stock. Aid in the sector of economic infrastructure had a positive impact on human capital, employment, and capital stock. We recommend that donors direct most of the aid to low-income countries in the agropastoral sector and in the sector of industry and mining. In addition, we recommend that donors direct a significant part of their support to middle-income countries in the sectors of economic infrastructure and education. Furthermore, very good coordination between donors and institutions in receiving countries is a priority to adapt assistance to the policies of receiving countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2294631 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2294631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2294631 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426528_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nuhfil Hanani AR Author-X-Name-First: Nuhfil Author-X-Name-Last: Hanani AR Author-Name: Moh Shadiqur Rahman Author-X-Name-First: Moh Shadiqur Author-X-Name-Last: Rahman Author-Name: Fahriyah Fahriyah Author-X-Name-First: Fahriyah Author-X-Name-Last: Fahriyah Author-Name: Dodyk Pranowo Author-X-Name-First: Dodyk Author-X-Name-Last: Pranowo Author-Name: Hery Toiba Author-X-Name-First: Hery Author-X-Name-Last: Toiba Author-Name: Rosihan Asmara Author-X-Name-First: Rosihan Author-X-Name-Last: Asmara Author-Name: Sujarwo Sujarwo Author-X-Name-First: Sujarwo Author-X-Name-Last: Sujarwo Author-Name: Mohammad Ilyas Shaleh Author-X-Name-First: Mohammad Ilyas Author-X-Name-Last: Shaleh Author-Name: Mohammad Wahyu Firdaus Author-X-Name-First: Mohammad Wahyu Author-X-Name-Last: Firdaus Author-Name: Mahfudotul 'Ula Author-X-Name-First: Mahfudotul Author-X-Name-Last: 'Ula Author-Name: Dwi Retnoningsih Author-X-Name-First: Dwi Author-X-Name-Last: Retnoningsih Title: Does the climate change adaptation affect technical efficiency? Empirical evidence from potato farmers in East Java, Indonesia Abstract: Under climate change, maintaining technical efficiency in farming is crucial for smallholder farmers to enhance their yield and productivity; therefore, it is essential to implement climate change adaptation strategies to sustain this technical efficiency. This study investigates the impact of diversifying climate change adaptation strategies on the technical efficiency of 217 potato farmers in East Java, Indonesia. Stochastic frontier analysis (SFA) was employed to measure farming technical efficiency, while a two-stage residual inclusion approach (2SRIA) was used to estimate the impact of climate change adaptation on this efficiency. This research identifies six common adaptation strategies: adjusting planting dates, cultivating drought-tolerant varieties, intercropping, altering input usage, conserving land, and improving irrigation systems. The empirical findings reveal a significant positive correlation between diversifying climate change adaptation strategies and enhanced technical efficiency among potato farmers. This suggests that employing more adaptation strategies will significantly improve farmers’ technical efficiency. Analyzing each adaptation strategy, the research highlights the positive impact of adjusting planting dates, adopting drought-tolerant varieties, implementing land conservation, and improving irrigation systems on technical efficiency. By contrast, intercropping and altering input usage adversely affect technical efficiency. This finding implies the need to promote climate change adaptation based on farmers’ specific characteristics.This study reveals that diversifying climate adaptation strategies—such as adjusting planting dates and enhancing irrigation—boosts technical efficiency in potato farming. Key factors like education and experience further influence adaptation. These insights offer guidance for tailored adaptation policies, fostering resilience and productivity among smallholder farmers facing climate change challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426528 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426528 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Vedprakash Meshram Author-X-Name-First: Vedprakash Author-X-Name-Last: Meshram Author-Name: Vaibhav Lalwani Author-X-Name-First: Vaibhav Author-X-Name-Last: Lalwani Title: Inflation hedging via tracking portfolios in the BRICS markets Abstract: This study investigates the creation of portfolios that effectively hedge against inflation in the context of the stock markets of Brazil, Russia, India, China, and South Africa (BRICS). Utilizing Ordinary Least Squares (OLS), Ridge, MM, and Quantile regressions, we construct portfolios that closely track the unexpected changes in Consumer Price Index (CPI) inflation. Our empirical analysis, based on data from spanning 2005 to 2023, demonstrates that statistical tracking portfolios outperform benchmark portfolios in tracking inflation, particularly during periods of low inflation uncertainty. Among all the methods, Quantile regression generally shows good tracking performance, though not universally. The findings suggest that these tracking portfolios can assist investors who are seeking to mitigate inflationary risks in volatile emerging markets. This research contributes to the literature by demonstrating out-of-sample performance of tracking portfolios and their application in less stable economic environments.This study provides a critical analysis of constructing inflation-hedging portfolios tailored for the BRICS stock markets, utilizing advanced regression techniques such as OLS, Ridge, MM, and Quantile regressions. The results highlight the superior performance of statistical tracking portfolios in mitigating inflation risks compared to benchmark portfolios, particularly under low inflation uncertainty conditions. By addressing the challenge of inflation hedging in less stable economic environments, this study offers valuable insights for investors and contributes significantly to the field of portfolio management in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431525 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431525 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eugène Dimaviya Compaore Author-X-Name-First: Eugène Dimaviya Author-X-Name-Last: Compaore Author-Name: Asmo Guira Author-X-Name-First: Asmo Author-X-Name-Last: Guira Author-Name: Boukaré Maiga Author-X-Name-First: Boukaré Author-X-Name-Last: Maiga Title: Mobile money and multidimensional energy poverty: a cross-national study of Burkina Faso and Togo Abstract: Using data from the FinScop survey (2016), this study aims to analyse the effect of mobile money on multidimensional energy poverty (MEPI) in Burkina Faso and Togo. MEPI was calculated using the method of Alkire and Foster in 2011, and a linear regression based on the instrumental variable strategy was applied to control for endogeneity bias arising from the dual causality between energy poverty and mobile money. To test the robustness of our results, we used the endogenous switching regression (ESR) model to resolve the problems of self-selection bias and endogeneity. The average effects of treatment on the treated (ATT) and the untreated (ATU) were calculated from the coefficients of the ESR models. The incidence of multidimensional energy poverty was estimated at 90.7 and 91.1% in Burkina Faso and Togo, respectively. In addition, we found substantial differences between the subgroups in terms of multidimensional energy poverty in each of the countries. The results also robustly indicate that an increase in mobile money adoption per standard deviation is associated with a reduction in multidimensional energy poverty of −0.402 standard deviations in the case of Burkina Faso and −0.628 standard deviations in the case of Togo. We argue that mobile money can be an effective policy tool in the fight against energy poverty in developing countries.This research explores the impact of mobile money on multidimensional household fuel poverty by focusing on two developing countries (Burkina Faso and Togo). The comparative study between these two countries aims to shed light on the mechanisms by which mobile money influences household energy poverty. By analysing the effects of mobile money in different contexts, the study seeks to establish whether the results observed can be generalised. If the impact is similar in the two countries despite their differences, this would allow the conclusions to be applied on a more global level. The results highlight the need to integrate mobile money into policies aimed at reducing household energy poverty in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399758 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399758 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2291886_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muzafar Shah Habibullah Author-X-Name-First: Muzafar Shah Author-X-Name-Last: Habibullah Author-Name: Mohd Yusof Saari Author-X-Name-First: Mohd Yusof Author-X-Name-Last: Saari Author-Name: Ibrahim Kabiru Maji Author-X-Name-First: Ibrahim Kabiru Author-X-Name-Last: Maji Author-Name: Badariah Haji Din Author-X-Name-First: Badariah Author-X-Name-Last: Haji Din Author-Name: Nur Surayya Mohd Saudi Author-X-Name-First: Nur Surayya Author-X-Name-Last: Mohd Saudi Title: Modelling volatility in job loss during the COVID-19 pandemic: The Malaysian case Abstract: This study employs a suitable volatility model that examines the impact of COVID-19 new cases and deaths on the volatility of daily job loss in Malaysia. Autoregressive Distributed Lag (ARDL) and Generalized Autoregressive Conditional Heteroscedasticity (GARCH) were employed as the modelling strategy to estimate daily data from January to December 2020. In addition, the asymmetric GARCH-M (EGARCH-M, TGARCH-M, and PGARCH-M) were further applied. The findings from different versions of the ARDL(p,q1,q2)-(E,T,P)GARCH(1,1)-M model show that the ARDL-EGARCH-M model can capture the volatility and clustering of variability in job loss. The findings revealed asymmetry effects, suggesting that negative shocks (bad news) in a pandemic period increased volatility in job loss compared to positive shocks (good news). Policy implications relating to lockdown measures and news signals were provided. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2291886 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2291886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2291886 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thu Hien Nguyen Author-X-Name-First: Thu Hien Author-X-Name-Last: Nguyen Title: The impact of capital structure on the performance of state-invested enterprises in Vietnam Abstract: This study examines the impact of capital structure on performance of state-invested enterprises (SIEs). Capital structure is measured by total debt ratio (TDR), long-term debt ratio (LTD), and short-term debt ratio (STD), and performance is measured by return on assets (ROA) and Tobin’s Q ratio. The panel data regression method is used to process data collected from 350 state-owned joint stock companies (non-financial companies) listed on the Vietnam stock market from 2015-2022. The research results confirm that TDR, LTD, and STD negatively impact ROA and positively impact Tobin’s Q (except LTD does not affect Tobin’s Q). In addition, several factors that belong to the characteristics of enterprises, such as firm size, liquidity, tangibility, revenue growth rate, and state ownership ratio, impact the performance of SIEs by following different directions in each capital structure. These results imply that capital structure significantly influences ROA and Tobin’s Q of SIEs in Vietnam. The SIEs in the research sample used assets and loans inefficiently according to their bookkeeping value, so they did not attract much attention from investors. However, increasing the debt ratio is considered a positive signal in expanding scale and stabilizing future income streams, creating confidence for investors about the development prospects of the enterprise. Finally, the study offers several important policy implications for policymakers and business managers in developing countries in establishing and disseminating impact mechanisms to help SIEs achieve optimal capital structure, thereby enhancing performance. It also aids lenders and investors in making informed financial or investment decisions.This article aims to examine the impact of capital structure on the performance of SIEs. The study’s findings provide insight into the impacts of capital structure on performance, especially in SIEs in developing countries. The results of the study are a useful reference source for policymakers in developing countries like Vietnam in the process of completing the legal framework for capital market development, managing macroeconomic policies, stabilizing interest rates, etc., creating conditions for SIEs to operate stably and develop sustainably, contributing to supporting the quick and effective divestment of state capital and the highest recovery of state investment capital in these enterprises. Moreover, the research findings play a crucial role in helping business managers develop solutions to restructure or adjust capital structure in a reasonable direction, using loans effectively at each stage of enterprise development to improve performance and enhance the enterprise’s competitive advantage in the context of integration. They also assist lenders in identifying the influence of factors on enterprise performance as a basis when making debt contracts and provide investors with a deeper insight into the enterprise’s operating situation before making investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399955 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399955 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2299125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sabeeh Ullah Author-X-Name-First: Sabeeh Author-X-Name-Last: Ullah Author-Name: Muhammad Arif Author-X-Name-First: Muhammad Author-X-Name-Last: Arif Author-Name: Shahzad Hussain Author-X-Name-First: Shahzad Author-X-Name-Last: Hussain Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Climate change, governance, and economic growth in Asia: a panel cointegration analysis Abstract: Asian economies are extremely vulnerable to climate due to rapid economic progress, poor governance structure and governmental performance. Keeping in view the fragility of Asia economies in context of environmental deterioration, we examine the role of climate change in shaping economic progress based on an extensive dataset of 47 Asia economies over the period of 2010–2020 through advance panel estimation models such as FMOLS and DOLS for long-run relationships, and panel-VECM for granger causality. The finding suggests a long run positive impact of climate change on economic progress. Further, the results also support the bi-directional relationship between climate change and economic development in Asia region. Hence, the current research suggest that proper policies should be warranted to balance government effectiveness for the increased implementation of environmental regulations and economic prosperity to meet the needs of society and maintain environmental sustainability in the long run.We examine the relationship among climate change, governance and economic development in Asia, as this region is extremely vulnerable to disastrous impact of global warming. We ascertained the long relationship among climate change, governance and economic progress and hence suggested that policy makers may design a comprehensive governance policy related to environment in order to achieve sustainable economic development in Asia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2299125 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2299125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2299125 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2303896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Aditi N. Kamath Author-X-Name-First: Aditi N. Author-X-Name-Last: Kamath Author-Name: Sandeep S. Shenoy Author-X-Name-First: Sandeep S. Author-X-Name-Last: Shenoy Author-Name: Abhilash Abhilash Author-X-Name-First: Abhilash Author-X-Name-Last: Abhilash Author-Name: Subrahmanya Kumar N Author-X-Name-First: Subrahmanya Author-X-Name-Last: Kumar N Title: Does investor sentiment affect the Indian stock market? Evidence from Nifty 500 and other selected sectoral indices Abstract: Investor sentiment is the result of irrational speculations about the future asset values driven by the market participants. Though scholarly works on investor sentiment are evolving in both developed and emerging markets, the literature in the Indian context is relatively modest. To fill this void, the study aims to examine sentiment-return relations based on a sectoral analysis framework. The study considered Nifty 500 and sectoral indices return such as Automobile, Information Technology, Metal, Fast-Moving Consumer Goods, and Public Sector Undertakings. To measure investor sentiment a unique sentiment index (INDex) using seven indirect proxy sentiment indicators suitable for the Indian stock market is proposed. To test the framed hypothesis, the study employs Principal Component Analysis and OLS regression. The results uncover that there exists a strong significant positive sentiment effect on Nifty 500 and selected sectoral indices return. The findings assist academicians, practitioners, investors, and policymakers in enhancing their understanding of the sentiment-return nexus in the Indian stock market and thereby guide them to ensure caution while making investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2303896 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2303896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2303896 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2345296_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohammed Ridwan Saani Author-X-Name-First: Mohammed Ridwan Author-X-Name-Last: Saani Author-Name: Abdul-Malik Abdulai Author-X-Name-First: Abdul-Malik Author-X-Name-Last: Abdulai Author-Name: Mubarik Salifu Author-X-Name-First: Mubarik Author-X-Name-Last: Salifu Title: Inflation, public debt and unemployment nexus in Ghana. An ARDL analysis Abstract: In recent years Ghana is challenged with rising debt, surging inflation, and unfavorable unemployment rates. To mitigate their impact on economic prosperity the country requires strategic policy interventions. Using data from 1990 to 2022, this study attempts to analyze the relationship between inflation, public debt, and unemployment in Ghana. The ARDL framework was used to estimate the variables. A long-run relationship between public debt and inflation was established. Notably, inflation correlates negatively with public debt in both short and long -run. Whiles public debt demonstrated a positive correlation with unemployment in both short and long-run, remittances displayed a negative long-run correlation with unemployment. The study suggests that prioritizing domestic debts over foreign debts could be strategic to hedge against inflationary risk. Moreover, we recommend a targeted investment in infrastructure projects and the promotion of agriculture. These initiatives will spur economic growth, engender sustainable development and ultimately create more job opportunities.This study examines the relationship between inflation, public debt, and unemployment in Ghana and provides insightful information that is important for academic discourse as well as policy formulation. Using the Autoregressive Distributed Lag (ARDL) framework and data from 1990 to 2022, the study uncovers significant findings. First of all, it proves that there is a long run negative correlation between public debt and inflation, emphasizing the need for prudent debt management measures. Notably, the preference for local debt over borrowing from external sources appears to be a possible hedge against inflationary risks. Secondly, the analysis reveals a positive long run relationship between unemployment and public debt, highlighting the significance of sustainable economic growth measures to counteract this relationship. To achieve this, it is suggested that targeted investments in infrastructure is required in key sectors like agriculture and manufacturing to stimulate economic growth and create employment opportunities.Furthermore, the study emphasizes how crucial it is to improve the trade balance by promoting exports. The effective use of trade can reduce the burden of public debt and promote prosperity. The Ghanaian government is encouraged by these findings to prioritize domestic borrowing and take into account fixed interest rate loans, or loans denominated in local currency in managing the public debt. In the realm of academic literature, the study enriches the discourse regarding the macroeconomic dynamics of developing economies, with a focus on Sub-Saharan Africa. The research provides empirical evidence to support the current debate on debt management, inflation control employment generation. The study significantly lays the foundation for future studies and the development of public policies that promote economic stability and prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2345296 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2345296 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2345296 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eric B. Yiadom Author-X-Name-First: Eric B. Author-X-Name-Last: Yiadom Author-Name: Lord Mensah Author-X-Name-First: Lord Author-X-Name-Last: Mensah Author-Name: Godfred A. Bokpin Author-X-Name-First: Godfred A. Author-X-Name-Last: Bokpin Author-Name: John K. M. Mawutor Author-X-Name-First: John K. M. Author-X-Name-Last: Mawutor Title: Carbon tax adoption and foreign direct investment: Evidence from Africa Abstract: The study investigates the effect of carbon tax adoption on foreign direct investment in Africa. We set up the Dynamic Stochastic General Equilibrium (DSGE) model and estimate it with the differenced GMM techniques. The data span from 1995 to 2019 and covers 43 Sub-Saharan African countries. Data is sourced from the World Bank’s World Development Indicators. The findings show that the unmitigated effect of the carbon tax on FDI is repressive. However, if the revenue from the carbon tax is recycled into the economy, the carbon tax will have a significant positive effect on FDI. Hence, the findings corroborate the double dividend theory. The results further suggest that a carbon tax of around US$ 8.5 per tonne is reasonable to enhance inward FDI but a carbon tax either above US$ 25 per tonne or below US$ 3 per tonne will be detrimental to the African region. Also, the entrenched negative relationship between FDI and taxes is worsened if the additional carbon tax is levied among high tax regimes countries than their counterparts. This study opens the frontiers to the discussions on the policy implications of carbon tax introduction on the free movement of international capital. Being among the few studies to examine the effect of the carbon tax on FDI, the study makes a significant contribution to the sparse literature in the African context. The use of a stepwise approach to estimate data based on reasonable assumptions can form the basis for future research to venture into areas where data is constrained. The policy implications are that (i) carbon tax per tonne below US$ 3 or above US$ 25 is detrimental to FDI, and (ii) the negative effect of the carbon tax on FDI can be overturned by efficiently reinvesting the carbon tax revenue in the economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312783 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312783 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2408274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ethan S. Casas Author-X-Name-First: Ethan S. Author-X-Name-Last: Casas Author-Name: Ardvin Kester S. Ong Author-X-Name-First: Ardvin Kester S. Author-X-Name-Last: Ong Author-Name: John Francis T. Diaz Author-X-Name-First: John Francis T. Author-X-Name-Last: Diaz Author-Name: Josephine D. German Author-X-Name-First: Josephine D. Author-X-Name-Last: German Author-Name: Ma. Janice J. Gumasing Author-X-Name-First: Ma. Janice J. Author-X-Name-Last: Gumasing Title: The analysis of factors affecting online investment platforms in the Philippine context: an integration of SET-VBN theory Abstract: Innovative technology initiated the popularity of online investment platforms (OIPs) among households. However, acceptability and human factors affecting behavioral use has been underexplored despite its popularity. This study’s main objective was to assess consumers’ behavioral intention to invest among investors from the Philippines through purposive sampling. The integration of Social Exchange Theory (SET) and Value-Belief-Norm Theory (VBN) was considered for the holistic assessment in this study. This study was assessed and evaluated holistically through a higher-order partial least square structural equation analysis to determine significant factors affecting investment intention. Analysis using SMART-PLS v4.0, it was seen that social norm was the most significant latent variable, followed by values (ie traditional, egoistic, openness to change, and altruistic), trust, personal norm, perceived safety, beliefs on utility function, and economic benefit. The study highlights the importance of the perception of influential people regarding investment and how crucial it is for consumers to have their values aligned and satisfied with the platform. The study is the first to utilize SET and VBN outside their usual context – sustainability and environmental-related behavioral studies. Thus, the newly contextualized framework could be developed and extended with further implications presented for utilization both in the theoretical and practical aspects.This study provided insight on the financial and investment behavior among Filipinos, setting a benchmark for this area since no studies have yet covered this. The establishment of the integrated theory could be applied and extended among financial behavior with social and behavioral exchange in terms of economic aspect related studies. Practical and managerial implications have been provided with actionable items for consideration and application in real-life setting. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2408274 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2408274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2408274 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Richard Wamalwa Wanzala Author-X-Name-First: Richard Wamalwa Author-X-Name-Last: Wanzala Author-Name: Nyankomo Marwa Author-X-Name-First: Nyankomo Author-X-Name-Last: Marwa Author-Name: Elizabeth Nanziri Lwanga Author-X-Name-First: Elizabeth Author-X-Name-Last: Nanziri Lwanga Title: Impact of exchange rate volatility on coffee export in Kenya Abstract: Ninety-five percent of Kenyan coffee is exported as green coffee in the international market in Europe. As a spot market, this presents a problem in that the currency of the foreign market differs from that of the domestic country (Kenya), resulting in an exchange rate problem. Kenya has a floating exchange rate system, which means that the country’s exchange rate is decided by the forces of demand and supply for domestic currency. This means that there is a comovement of domestic currencies against other global currencies; in this case, the currencies of Kenya’s key coffee market. Therefore, this study examines the influence of currency volatility on Kenyan coffee exports. According to recent figures from the Central Bank of Kenya, Kenya’s real exchange rate fluctuated from 2001 to 2020 and the country recorded a negative trend in coffee exports during the same period. This begs the question of whether real exchange rate volatility had an impact on coffee exports during this period. Data was sourced from the Coffee Directorate, the International Coffee Exchange, and the Central Bank of Kenya and was analyzed using the gravity model. The exchange rate volatility was estimated using Purée and Steinherr’s model. The findings show that exchange rate volatility hurts Kenyan coffee exports. Similar results were obtained through robustness checks by quantile regression. Consequently, this study advises that monetary and fiscal policy measures should be tailored to reduce exchange rate volatility, while still promoting agricultural exports and overall macroeconomic stability.One of the most contentious issues in international trade today is the impact of exchange rate volatility on imports and exports. Thus, it is important to understand how Kenya’s coffee exports are impacted by changes in exchange rates. For example, there are studies that report positive or negative effects, but there is a dearth of research on coffee exports from Sub-Saharan Africa, particularly from Kenya. The study’s conclusions suggest that Kenyan coffee exports are negatively impacted by fluctuations in exchange rates. This finding may be helpful in reevaluating macroeconomic strategies to boost agricultural exports in nations with economies that are comparable to Kenya’s. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330447 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330447 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330447 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2301207_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2301207 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2301207 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2301207 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2371944_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tariku Lorato Author-X-Name-First: Tariku Author-X-Name-Last: Lorato Author-Name: Yonas Sendaba Author-X-Name-First: Yonas Author-X-Name-Last: Sendaba Author-Name: Tasew Tadesse Author-X-Name-First: Tasew Author-X-Name-Last: Tadesse Title: Tax evasion attitude and taxpayers’ perception of government legitimacy: evidence from Southern Ethiopia Abstract: Tax evasion, a global concern, undermines government revenue, public services, and societal trust. It occurs when taxpayers deliberately avoid their tax obligations. This study primarily explores the link between government legitimacy and tax evasion decisions in Ethiopia. Aside from bridging the knowledge gap in tax evasion, the findings are instrumental for policymakers to develop more effective approaches to tax collection and promote a culture of voluntary tax compliance in Ethiopia. Using survey data from 768 respondents across five administrative zones in Southern Ethiopia. The research examines how taxpayers’ perceptions of government legitimacy influence their attitudes toward tax evasion. Methodologically, the study employed one-way ANOVA and a logistic regression model to analyze the collected data. The findings reveal a significant negative association between government legitimacy and tax evasion. Taxpayers who view the government as legitimate are less likely to consider evasion. However, other factors also play a role. The study identifies age, perceived corruption, penalty severity, and tax system complexity as positively influencing tax evasion attitudes, while education level has a negative effect. Based on these findings, the study recommends strategies to improve government legitimacy and strengthen tax compliance. these include promoting accountable and transparent governance, enhancing public service delivery, simplifying the tax system, increasing penalties for evasion, and tackling corruption. By addressing these aspects, Ethiopia can foster trust in institutions and ultimately reduce tax evasion.This study examines the link between government legitimacy and tax evasion decisions in Southern Ethiopia. Using survey data from 768 respondents across five administrative zones in Southern Ethiopia, the research examines how taxpayers’ perceptions of government legitimacy influence their attitudes toward tax evasion. Methodologically, we employed one-way ANOVA and a logistic regression model to analyze the effect of government legitimacy on the tax evasion decisions of taxpayers. Our findings reveal a significant negative association between government legitimacy and tax evasion. Taxpayers who view the government as legitimate are less likely to consider evasion. Moreover, the study finds that the likelihood of tax evasion increases with age, perception of the presence of corruption, penalty severity, and tax system complexity, while education level is found to have a negative effect. This study not only improves our understanding of tax evasion in Ethiopia but also provides valuable insights for policymakers to design more effective tax collection strategies and promote a culture of honest taxpaying. It holds significance for two main reasons. First, it fills the knowledge gap. Tax evasion is a global problem, but understanding its causes can differ across and within countries. This study specifically explores the phenomenon in Southern Ethiopia, where the issue is not well documented. Accordingly, examining the link between government legitimacy and tax evasion contributes to a more comprehensive understanding of tax compliance behavior. Second, in terms of policy implications, this study goes beyond simply identifying the factors affecting tax evasion. It uses the findings to recommend workable strategies for Ethiopian policymakers. These recommendations target not just tax collection methods (simplifying the system, increasing penalties) but also the root causes of tax evasion (improving government transparency, tackling corruption). By addressing these areas, policymakers can create a system that fosters trust and encourages voluntary tax compliance, ultimately leading to increased government revenue in the region and improved public services. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2371944 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2371944 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2371944 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2344720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Ibrahim Abdukadir Sheik-Ali Author-X-Name-First: Ibrahim Abdukadir Author-X-Name-Last: Sheik-Ali Title: Testing the non-linearities of exchange rate pass-through in Somalia: does dollarization affect consumer prices? Abstract: Over the past three decades, Somalia’s economic landscape has witnessed a noticeable dependence on imported goods. The exchange rate was unregulated owing to the collapse of the country’s central bank. This unregulated environment has introduced significant volatility in exchange rates, profoundly impacting consumer prices and fostering a prevalent shift towards the utilization of the US dollar in economic transactions. Hence, this undertaking delves into the asymmetric effects of exchange rates on consumer prices in the presence of dollarization in Somalia from 1995 to 2019. Employing both linear and nonlinear autoregressive distributed lag (NARDL) cointegration methodologies, we explore the short-run and long-run dynamics between exchange rates and consumer price levels. The long-run empirical results from the NARDL demonstrate asymmetrical cointegration between the unregulated exchange rate and inflation in Somalia. Both appreciation and depreciation of exchange rates exert differing impacts on consumer prices, with depreciation exhibiting a more pronounced effect. In addition, the evidence suggests that the exchange rate pass-through is incomplete in Somalia regarding its inelastic coefficient. Oil prices exhibit a substantial and statistically significant association with inflation, both in the long-run and short-run, while GDP remains inconsequential. In the short-run, the most remarkable outcome indicates that dollarization significantly contributes to mitigating inflationary pressures. Based on our empirical insights, the central bank should enhance regulatory oversight of the foreign exchange market by strictly controlling and prohibiting the issuance of counterfeit banknotes to achieve price stability.This research comprehensively analyzes the complex dynamics between exchange rate fluctuations and consumer prices in Somalia, revealing a pronounced asymmetry. Through sophisticated modeling, the study demonstrates that exchange rate depreciations significantly impact inflation more than appreciations, a finding critical for effective monetary policy in dollarized economies like Somalia. The findings indicate the need for robust regulatory frameworks to mitigate the adverse effects of exchange rate fluctuations on the economy. This work is instrumental for policymakers, providing evidence-based recommendations to enhance regulatory measures aimed at stabilizing prices and managing inflationary pressures. Additionally, it contributes to the broader economic literature by detailing the unique challenges and strategies relevant to managing economies with significant dollarization. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2344720 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2344720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2344720 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2395413_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ayesha Rasool Malik Author-X-Name-First: Ayesha Author-X-Name-Last: Rasool Malik Author-Name: Faheem Aslam Author-X-Name-First: Faheem Author-X-Name-Last: Aslam Author-Name: Paulo Ferreira Author-X-Name-First: Paulo Author-X-Name-Last: Ferreira Title: Bitcoin’s multifractal influence: deciphering the relationship with conventional and renewable energy markets Abstract: The annual electricity consumption of cryptocurrency mining has witnessed significant growth in recent years, fueled by an increase in market participation and the escalating complexity of the mining process. This has led to carbon emissions that exceed those generated by several developed nations. The growing impact of global warming and rising environmental concerns has brought increased scrutiny to Bitcoin’s energy consumption, particularly its potential to influence prices in unforeseen ways. This study investigates multifractal behavior in the cross-correlation of the Cambridge Bitcoin Electricity Consumption Index (CBECI) with both conventional and renewable energy prices using the Multifractal Detrended Cross-Correlation Analysis (MFDCCA) method. For renewable energy, we considered WilderHill Clean Energy, S&P Global Eco, S&P Global Clean Energy, OMX Solar Energy, and OMX Renewable Energy Index. For conventional energy, we considered the daily prices of WTI crude oil, Brent oil, heating oil, Newcastle coal, and natural gas. The daily price data range from 2 April 2013, to 29 August 2023, encompassing 1709 observations. Additionally, we employed a rolling window analysis to uncover the time-varying dynamics in the cross-correlations and persistence levels between Bitcoin electricity consumption and energy prices. The findings reveal the existence of a cross-correlation between the CBECI and energy markets. Overall, the CBECI exhibits a persistent cross-correlation with both energy markets; however, it is more persistent in the fossil fuel market, specifically in the coal market. These findings suggest the incorporation of dynamic changes in the CBECI in portfolio management for effective risk management strategies.The results of this study, which analyses multifractal cross-correlation of Bitcoin Electricity Consumption Index (CBECI) with both conventional and renewable energy prices, reveal the existence of a cross-correlation between variables under analysis. Results are relevant, suggesting the possibility to use CBECI in portfolio management, but also gives information for policymakers relevant, for example, to issues like global and environmental concerns. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2395413 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2395413 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2395413 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2328480_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hilda Gyamfi Ackomah Author-X-Name-First: Hilda Author-X-Name-Last: Gyamfi Ackomah Author-Name: Lord Mensah Author-X-Name-First: Lord Author-X-Name-Last: Mensah Author-Name: Saint Kuttu Author-X-Name-First: Saint Author-X-Name-Last: Kuttu Title: Natural disaster and economic growth in Africa: the role of insurance Abstract: This study examines natural disasters’ short-run and long-run effects on economic growth. We analysed insurance’s short-run and long-run role in the natural disaster-economic growth nexus using 48 African countries from 2000 to 2020. Using a two-step system GMM, the study revealed that natural disasters have a short-term detrimental effect and a favourable long-term impact on economic growth. Regarding the role of insurance in the relationship between natural disasters and economic growth, it should be noted that while insurance and those affected have a positive complementary effect on economic growth in the short run, the long-term effects of insurance and natural disasters on economic growth are negligible. Therefore, regulators must enforce periodic high regulatory capital requirements to ensure the financial stability of insurance markets, especially the non-life market in Africa, and to enable insurers to absorb the unforeseen shocks from natural disasters in Africa. Also, regulators should create insurance coverage awareness through insurance education to promote insurance development and help reduce individuals’ and businesses’ financial losses upon the occurrence of natural disasters.During the previous decade, over three thousand annual natural disasters have displaced millions, cost billions, and caused death, injury, and financial loss. These strain economies considerably. As high-income economies suffer from natural disasters, low-income nations are more susceptible and over-rely on help and grants. Aid and subsidies have failed to reconstruct economies following natural catastrophes; therefore, loans and insurance are used. The findings reveal that natural disasters hurt economic growth in the short term but help in the long term. Insurance and those affected have a positive complementary effect on economic growth in the short run, but the long-term effects are negligible. Thus, regulators and governments should safeguard the financial viability of insurance markets, notably the African non-life market, to allow insurers to withstand natural catastrophe shocks, especially in the immediate term. For insurance development and to limit financial losses from natural catastrophes, regulators and governments should educate the public about insurance coverage. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2328480 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2328480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2328480 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2411768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Placide Aime Kwizera Author-X-Name-First: Placide Aime Author-X-Name-Last: Kwizera Title: Monetary policy reaction function in emerging economies: an empirical analysis Abstract: This article presents the results of a comprehensive cross-country analysis of central banks’ reaction functions in eighteen emerging economies from 2000Q1 to 2017Q4. Utilizing quarterly panel data, the study employs the generalized method of moments (GMM) alongside pooled OLS and fixed-effects estimators to investigate central banks’ interest rate-setting behavior. The focus extends beyond conventional variables, incorporating external conditions into the analysis. The findings demonstrate that central banks in emerging markets adhere to an expanded Taylor rule, considering not only inflation and the output gap but also external financial conditions and commodity prices. The article concludes by suggesting policy implications derived from the empirical results, emphasizing the need for enhanced effectiveness and adaptability of monetary policy in emerging countries, accounting for both domestic and external factors. The study also proposes avenues for future research, encouraging exploration into extended forms of central bank reaction functions, including interactions with central bank independence.This research analyzes the reaction functions of central banks in eighteen emerging economies from 2000 to 2017. It reveals that these banks follow an expanded Taylor rule, considering not just inflation and output gaps, but also external financial conditions and commodity prices. The findings emphasize the need for adaptable monetary policies that respond to both domestic and global influences. This work has significant implications for policymakers in formulating interest rate-setting policies and suggests further research into the interaction between central bank independence and reaction functions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2411768 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2411768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2411768 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2422959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: An Tuan Nguyen Author-X-Name-First: An Tuan Author-X-Name-Last: Nguyen Author-Name: Nhung Thi Nguyen Author-X-Name-First: Nhung Thi Author-X-Name-Last: Nguyen Title: How does investor sentiment affect stock market crash risk? Evidence from Asia-Pacific markets Abstract: This study aims to examine the effect of investor sentiment on stock market crash risk in the Asia–Pacific region. The research employs principal components analysis (PCA) to construct an investor sentiment index, while the Method of Moments Quantile Regression (MMQR) is used to analyze monthly data of 16 Asia-Pacific stock markets. The findings show that investor sentiment positively impacts on crash risk in the middle to higher quantities. Moreover, regional sentiment significantly increases stock market crash risk, particularly at higher quantiles, while local sentiment generally reduces crash risk at the lower to middle quantiles. Besides, the magnitude and direction impact of investor sentiment on stock market crash risk is heterogeneous across market levels. Specifically, the results indicate that at higher quantiles of risk, investor sentiment increases crash risk in developed and emerging markets, while it decreases crash risk in frontier markets.This paper not only provides support for behavioral theories but also have implications for global investors, portfolio managers, and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2422959 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2422959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2422959 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2302633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Quynh Trang Phan Author-X-Name-First: Quynh Trang Author-X-Name-Last: Phan Title: Country-level governance quality, foreign ownership, and firm investment: evidence from WBES database Abstract: This study investigates the effect of foreign ownership on firm investment and how the country-level governance quality adjusts the relationship between foreign ownership and firm investment. Using the 2016–2022 World Bank Enterprise Surveys (WBES) database, the results reveal that foreign-owned firms exhibit a higher likelihood of making investments than domestic-owned firms. Specifically, the odds of research and development (R&D)/fixed asset expenditures for foreign-owned firms are 56.6/67.0% higher than the odds for domestic-owned firms. In addition, the country-level governance quality significantly influences the relationship between foreign ownership and firm investment. Good governance quality can create a better environment for foreign-owned firms to invest and can lead to a significant positive impact on investment activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2302633 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2302633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2302633 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2382350_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nahu Daud Author-X-Name-First: Nahu Author-X-Name-Last: Daud Author-Name: Bayu Taufiq Possumah Author-X-Name-First: Bayu Taufiq Author-X-Name-Last: Possumah Author-Name: Ranggi Aditya Nugraha Author-X-Name-First: Ranggi Aditya Author-X-Name-Last: Nugraha Author-Name: Suyanto Sukri Mustofa Author-X-Name-First: Suyanto Author-X-Name-Last: Sukri Mustofa Author-Name: Chairullah Amin Author-X-Name-First: Chairullah Author-X-Name-Last: Amin Title: Investigating the impact of the COVID-19 pandemic and macroeconomic variables on unemployment among university graduates in Indonesia: Regression and Fs-QCA approaches Abstract: The educated unemployment rate among university graduates (EUUG) in Indonesia has risen steadily, reaching 34.6% during the Covid-19 pandemic (2020-2021), attributed to economic challenges and a national recession. This research aims to analyze the impact of Covid-19 and various macroeconomic variables on educated unemployment across 34 Indonesian provinces. Using panel data regression and Fs-QCA methods, the study found that the pandemic and macroeconomic factors significantly influence educated unemployment. The best configuration for high educated unemployment during the pandemic includes factors such as GDP per capita, inflation, Provincial minimum wage (PMW), investment, and government spending, observed in provinces such as Riau, South Sulawesi, DKI Jakarta, and South Sumatra.This study meticulously investigates the pressing issue of unemployment among educated graduates in Indonesia, offering a comprehensive analysis that spans various provinces and considers the interaction of macroeconomic variables and the effects of the Covid-19 pandemic. The study highlights West Java as having the highest unemployment rate among college graduates, whereas North Kalimantan records the lowest, illustrating significant regional disparities. The analysis robustly determines that macroeconomic factors such as Gross Regional Domestic Product per capita, inflation, minimum wage, investment, government spending, and the Human Development Index all have significant impacts on graduate unemployment. Particularly, it points out that a combination of these factors leads to higher unemployment rates in regions like Riau, South Sulawesi, DKI Jakarta, and South Sumatra. The practical implications of these findings are substantial. The study advises policymakers to utilize these insights for formulating targeted interventions such as economic stimulation measures and educational enhancements to align graduate skills more closely with industry needs. Businesses are encouraged to tailor their investment and workforce development strategies based on regional economic conditions and potential. Educational institutions are urged to adapt curricula to improve student employability through practical skills training and industry partnerships. Additionally, the study recommends that the government focus on creating specialized job opportunities for highly educated individuals and consider minimum wage adjustments based on educational attainment to promote a fair compensation system. It suggests that companies openly communicate wage scales during recruitment to attract and retain highly skilled workers. Graduates are advised to enhance soft skills and consider entrepreneurship as a viable career option. By implementing these recommendations, stakeholders including government bodies, businesses, and educational institutions can collectively foster a more inclusive and resilient labor market, thereby supporting sustainable economic growth and reducing the unemployment rate among university graduates in Indonesia. This study not only provides a foundation for informed decision-making but also outlines a roadmap for future research, which could include exploring the impact of population size on unemployment and differentiating between graduates from public and private institutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2382350 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2382350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2382350 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2397808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Solomon Yaw Agyeman-Boaten Author-X-Name-First: Solomon Yaw Author-X-Name-Last: Agyeman-Boaten Title: Determinants of poverty in rural cocoa farming communities in Ghana: unidimensional and multidimensional analysis Abstract: Poverty is a rural phenomenon due to the dominance of subsistence farming in rural communities. This study compares the estimates of unidimensional and multidimensional methodologies to analyse the factors that influence the poverty levels of cocoa farming households predominantly in rural Ghana. A census was conducted in the Chorichori community in Ghana using a structured questionnaire to gather information from 386 cocoa farming households. The multidimensional poverty index and expenditure-based poverty measures were used to estimate a bivariate probit regression to find the determinants of cocoa farming households’ poverty. The study’s outcome indicates that poverty among the cocoa farmers is jointly determined, unidimensionally and multidimensionally, by the access to healthcare, household child deaths, household’s school-age child not in school, access to farm inputs, and the age of the household head. Whereas the education level of the household head, frequency of ill-health, use of external labour, migration status, and relationship to the household head were significant in determining multidimensional poverty, the number of household members, cooperative union membership, access to farm water, occupational diversity, household access to financial credit, and the marital status of the household head significantly determined unidimensional poverty among the cocoa farmers. Even though both poverty measures produced fairly different results, the study’s findings showed the mutual and exclusive importance of the unidimensional and multidimensional poverty approaches in determining poverty and formulating good developmental policies for cocoa farmers. Therefore, selecting an approach should be based on prevailing circumstances, such as differences across locations and within households or entities.This research provides critical insights into the complex nature of poverty among cocoa farming households in rural Ghana. By comparing unidimensional and multidimensional poverty measures, the study reveals significant disparities in how poverty is assessed, offering a more comprehensive understanding of the socio-economic challenges faced by rural communities. This dual approach not only uncovers the socioeconomic factors that contribute to poverty but also reveals discrepancies and complementarities between different poverty measurement methods, offering a nuanced perspective that can enhance the accuracy of poverty assessments. The findings highlight the need for policymakers, development agencies, and social planners to target interventions that address the specific factors contributing to poverty in rural areas, thereby improving the effectiveness of poverty alleviation programs. By informing more holistic and inclusive policies, this study supports efforts to reduce poverty among rural cocoa farmers, ultimately contributing to broader economic development and social equity in Ghana and similar contexts across developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2397808 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2397808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2397808 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2305010_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Author-Name: Mohd Azlan Shah Zaidi Author-X-Name-First: Mohd Azlan Shah Author-X-Name-Last: Zaidi Author-Name: Dhaqane Roble Halane Author-X-Name-First: Dhaqane Roble Author-X-Name-Last: Halane Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Title: Asymmetric effects of foreign direct investment and trade openness on economic growth in Somalia: Evidence from a non-linear ARDL approach Abstract: Globally, the spread of economic integration and the lowering of trade protectionism through multiple trade pacts offered the products of many developing nations the chance to access global markets. The international economics literature deeply discusses the influence of trade liberalization and foreign investment on economic expansion; however, most assume a symmetric association. It is crucial to evaluate the nonlinear connection, as reliance on linear models might produce biased results. Accordingly, this study explored the asymmetric effects of trade openness and FDI inflows on the economic growth of Somalia using yearly data from 1990 to 2020. The outcomes of the non-linear autoregressive distributed lag (NARDL) suggest that both an increase and decrease in FDI strengthen the economic expansion of Somalia in the short-run and long-run. The domestic investment role in stimulating national output was also considerable. Moreover, the study outlined that a decline in trade openness shrinks growth in the long-run. Besides, we observed from the vector error correction modeling (VECM) a one-way causal linkage from labor force, capital, FDI, and trade openness to GDP in the short-run but not in the long-run. Moreover, short-run unidirectional causation from GDP, trade openness, labor force, and capital to FDI is observed. According to the outcomes, the study proposes that policymakers intensify trade liberalization, encourage local investment, and channel foreign investment toward export-oriented industries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2305010 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2305010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2305010 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2365366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Moghis Ur Rehman Author-X-Name-First: Moghis Ur Author-X-Name-Last: Rehman Author-Name: Adil Saleem Author-X-Name-First: Adil Author-X-Name-Last: Saleem Author-Name: Judit Sági Author-X-Name-First: Judit Author-X-Name-Last: Sági Title: Oil crisis vs pandemic: a broader outlook of time-frequency volatility transmission between Islamic and conventional stock markets Abstract: This study explores volatility spillovers and financial connectedness between conventional and Islamic equity stock markets in developed, emerging, and frontier economies. Four regions– Gulf Cooperation Council (GCC), South Asian Association for Regional Cooperation (SAARC), Brazil, Russia, India, and China (BRIC), and Group of Seven (G7)–were selected for this study following the Diebold and Yilmaz (DY-12) and Baruník and Krehlík (BK-18) spillover methods. Daily data from 01 January 2012 to December 31, 2021, were sourced from the Eikon Refinitiv data stream. The results showed that the COVID-19 crisis was lethal compared to the oil crisis of 2014–15. These results suggest that Islamic stock markets are highly interconnected in terms of overall returns. For conventional stocks, the USA stock market largely serves as the top transmitter of returns and volatility. However, for Islamic stocks, France and the USA found to be the top transmitter and receiver of the shock, respectively. Together with these findings, we found that the DY-12 approach could replicate the frequency-domain connectivity measurements of BK-18. Our findings have significant implications for investors, regulators, and policymakers.This study comprehensively explored the static and dynamic volatility spillover effect between Islamic and conventional stock markets across the globe in four regions covering major economic turmoil including the Oil crisis and Pandemic. The results showed that the US conventional stock market appeared to be the top transmitter of shock during the oil crisis. However, the oil rich countries including Oman, Bahrain, UAE, Kuwait, and Qatar were heavily affected due the decline in the oil prices. In addition, with time- and frequency-volatility spillover perspective, Islamic stock market had stronger impact during the COVID-19 compared to the conventional markets. However, Qatar Islamic index stands out as an exception during pandemic. The findings of our study provide strong implications for the portfolio managers to put emphasize on static and dynamic volatility connectedness to make prudent and informed investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2365366 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2365366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2365366 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409420_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Judy Jemutai Author-X-Name-First: Judy Author-X-Name-Last: Jemutai Author-Name: Moses Mutharime Mwito Author-X-Name-First: Moses Mutharime Author-X-Name-Last: Mwito Author-Name: Paul Mugambi Joshua Author-X-Name-First: Paul Mugambi Author-X-Name-Last: Joshua Title: Asymmetric effects of fiscal policy on inflation in Kenya Abstract: This study investigates the asymmetric effects of fiscal policy on inflation (INF) in Kenya using data for the period from 1991 to 2021. The study differs from previous studies by applying the non-linear autoregressive distributed lag (NARDL) modeling to capture asymmetric dynamics. The study identified a long-run equilibrium and cointegrating relationship among the study variables, with the findings indicating the existence of asymmetric long-run effects of public debt (PD) and government spending (GS) on INF. A positive relationship between increases in PD and INF in the short-run is also established, while decreases in PD are found to increase INF in both the long-run and short-run. Increases in GS raise INF, while decreases in tax revenue (TR) reduce INF in the long-run. Output gap has a persistent positive relationship with INF, while interest rate negatively affects INF. As such, the study recommends that policymakers should prioritize fiscal measures, especially government expenditure by ensuring that any additional spending does not cause inflationary pressures. The government should also regulate PD by ensuring that its levels align with the objective of INF control.Governments use fiscal policy tools such as spending and taxation to influence macroeconomic performance. However, Kenya’s government has been unable to maintain a sustainable fiscal policy due to an imbalance between government expenditures and revenues. In recent years, government spending has consistently exceeded its revenues, resulting in the need to borrow in order to finance its fiscal targets, creating a burden of debt accumulation. This has made it more difficult to finance essential public services and hindered the achievement of the medium term plan’s (MTPs) targets for the realization of the Kenya’s Vision 2030. This study examines the asymmetric effects of fiscal policy on inflation in Kenya using the non-linear autoregressive distributed lag (NARDL) modelling to provide a better understanding of Kenya’s inflation. This helps to inform the policymakers on decision making and careful approach to the fiscal policy strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409420 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409420 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2387443_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohammed Muneerali Thottoli Author-X-Name-First: Mohammed Muneerali Author-X-Name-Last: Thottoli Author-Name: Md. Aminul Islam Author-X-Name-First: Md. Aminul Author-X-Name-Last: Islam Author-Name: Arif Ahsan Author-X-Name-First: Arif Author-X-Name-Last: Ahsan Author-Name: Mohd Faizal Yusof Author-X-Name-First: Mohd Faizal Author-X-Name-Last: Yusof Author-Name: Md. Sharif Hassan Author-X-Name-First: Md. Sharif Author-X-Name-Last: Hassan Author-Name: Rubaiyat Shaimom Chowdhury Author-X-Name-First: Rubaiyat Shaimom Author-X-Name-Last: Chowdhury Title: Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs Abstract: This article explored the mediating and moderating factors of financial technology (FinTech) adoption for small and medium enterprises (SMEs) innovations. A systematic literature review (SLR) was performed as a study method. The current research involved an in-depth evaluation of 96 articles published in English between 2000 and 2023. The methods were developed from meta-analysis and SLR’s indicated reporting items. The articles were collected by carrying out keyword searches on the Scopus-indexed database. The study identified the research gaps in understanding mediating and moderating factors of FinTech adoption for innovation in SMEs. Previous studies, through SLR, have identified a limited mediator or moderator role between FinTech adoption and innovation in SMEs. Due to the limited exploration of mediator or moderator variables, this research offers novel directions for future research about the various FinTech’s mediation and/or moderating role for innovation in SMEs. The outlined moderators and mediators in this study are found by combining both intuitive insights and analytical methods. In addition, the study findings will aid SME business owners, professionals, and practitioners to understand how mediating and moderating factors lead to FinTech adoption for innovation in their businesses.Overall, this research has the potential to drive significant positive change in the SME sector by enhancing their ability to innovate and thrive in a digital-first economy, thereby contributing to broader economic growth and development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2387443 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2387443 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2387443 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2355017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sarika Keswani Author-X-Name-First: Sarika Author-X-Name-Last: Keswani Author-Name: Veerma Puri Author-X-Name-First: Veerma Author-X-Name-Last: Puri Author-Name: Rimjhim Jha Author-X-Name-First: Rimjhim Author-X-Name-Last: Jha Title: Relationship among macroeconomic factors and stock prices: cointegration approach from the Indian stock market Abstract: The performance of a stock market is intrinsically linked to the broader financial and economic landscape of a country. Stock prices, as integral indicators, not only mirror the financial health and collective economic circumstances of a nation but also serve as crucial barometers of tangible financial activities. This research paper aims to undertake a comprehensive exploration of the intricate relationship between specific macroeconomic determinants and the stock market within the context of India. Moreover, this study conducts an exhaustive analysis to assess the relative significance of these variables and their contributions to the predictive capacity of stock prices. This investigation harnesses a dataset consisting of monthly observations of the chosen macroeconomic variables. The outcomes of the cointegration analysis illuminate a robust and statistically significant long-term association between Indian stock prices and the selected macroeconomic factors. The results of the cointegration test affirm a lasting nexus between stock returns and crucial economic indicators, namely Gross Domestic Product (GDP), disposable income, and the participation of Foreign Institutional Investors (FII) in the market. Furthermore, this study underscores the enduring negative relationship between stock returns and factors, such as interest rates, government policies, exchange rates, and inflation. These findings provide valuable insights into the interplay between the stock market and macroeconomic forces in the Indian context.This study comprehensively examines the intricate relationship between macroeconomic variables and the Indian stock market from 2009 to 2019. Utilizing a monthly dataset and rigorous statistical techniques, such as cointegration analysis and the VECM Granger causality test, the research elucidates a significant long-term relationship between macroeconomic variables like GDP, disposable income, and Foreign Institutional Investor (FII) participation, and Indian stock prices.The empirical results reveal a negative correlation with interest rates, government policies, exchange rates, and inflation, and a positive long-term correlation with GDP, disposable income, and FII involvement. The cointegration tests substantiate these findings, reaffirming the enduring nature of these relationships.Furthermore, the VECM Granger causality test highlights the substantial impact of changes in these macroeconomic variables on short-term stock price fluctuations. The study’s conclusions shed new light on the dynamic relationship between macroeconomic factors and the stock market in India. By identifying the predictive capacity of key economic indicators on stock price movements, this research contributes to more informed and strategic decision-making for policymakers, investors, and economists, thereby enhancing the efficacy of economic planning and investment strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2355017 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2355017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2355017 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364045_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kwame Adjei-Mantey Author-X-Name-First: Kwame Author-X-Name-Last: Adjei-Mantey Author-Name: Mark Edem Kunawotor Author-X-Name-First: Mark Edem Author-X-Name-Last: Kunawotor Title: Is self-employment an antidote to poverty in developing countries? Insights from a cross-sectional study in Ghana Abstract: Despite numerous policies implemented in this respect, Ghana still needs to catch up in achieving the Sustainable Development Goal of ending poverty in all forms by 2030. One way to escape poverty for most people is access to a steady flow of sufficient income from employment. However, with limited paid employment opportunities in Ghana, as is the case for other developing countries, the question of engagement in self-employment as a means to escape poverty emerges. This study conducts a thorough empirical analysis to gauge if self-employment could be an effective tool for addressing poverty in Ghana and the types of self-employment that possess the potential as an antidote to poverty in Ghana. The study thus examines the effects of self-employment on poverty and the type(s) of self-employment that is worth pursuing using nationwide cross-sectional survey data. The study with the aid of a linear probability model finds that self-employment has a significant positive relationship with poverty. Self-employed persons are more likely to be poor relative to persons in paid employment. However, non-agriculture self-employment and opportunity entrepreneurs is a viable route out of poverty even for persons with less than desired levels of education and skills. The implications for poverty reduction are discussed.This study examines the effect of self-employment on poverty and the type(s) of self-employment that is worth pursuing using nationwide cross-sectional survey data. The findings show that selfemployed persons are more likely to be poor relative to persons in paid employment. However, non-agriculture self-employment and opportunity entrepreneurs is a viable route out of poverty even for persons with less than desired levels of education and skills. The relevance of this study is that it throws more light on the significance of policies to be directed to eliminating hindrances and bottlenecks in setting up own businesses and making them more productive. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364045 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364045 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364045 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2370913_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eko Arief Sudaryono Author-X-Name-First: Eko Arief Author-X-Name-Last: Sudaryono Author-Name: Wahyu Widarjo Author-X-Name-First: Wahyu Author-X-Name-Last: Widarjo Author-Name: Agung Nur Probohudono Author-X-Name-First: Agung Author-X-Name-Last: Nur Probohudono Author-Name: Adhitya Agri Putra Author-X-Name-First: Adhitya Agri Author-X-Name-Last: Putra Author-Name: Frank Aligarh Author-X-Name-First: Frank Author-X-Name-Last: Aligarh Title: Corruption and earnings quality: further evidence and exploration from Indonesia Abstract: Corruption within corporate entities continues to be a relatively overlooked yet significant issue to date. This study seeks to investigate the impact of corruption on the quality of earnings. The sample comprises 846 firm-years listed on the Indonesian Stock Exchange. Earnings quality encompasses factors such as earnings persistence, earnings value relevance, and earnings predictability. Corruption is gauged by the corruption per capita in the region where the firms are headquartered. The data analysis employs regression models incorporating firm and province effects. Broadly, the findings of this study indicate that corruption diminishes earnings quality. Heightened corruption is associated with weakened controlling and monitoring functions, increased information asymmetry, and diminished managerial quality, all contributing to a decline in earnings quality. This research not only expands upon previous studies but also reaffirms the relevance of the social capital concept while presenting new empirical evidence within a context of a country with a higher corruption perception index, such as Indonesia.The relationship between corruption and earnings quality becomes a new insight for public. Regulator and society can maintain the good norm and value to reduce the bad impact of corruption into social capital. Indonesia has an increasing corruption perception so regulator, society, and business participants can improve the controlling and monitoring function to avoid misbehavior. Specifically, business participants can avoid misbehavior of report the lower quality earnings. It is new evidence in Indonesia and expected to be a consideration to formulate public and business policy in Indonesia Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2370913 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2370913 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2370913 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2411566_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Anju Gupta Author-X-Name-First: Anju Author-X-Name-Last: Gupta Author-Name: Shekhar Mishra Author-X-Name-First: Shekhar Author-X-Name-Last: Mishra Author-Name: Deepak Kumar Behera Author-X-Name-First: Deepak Kumar Author-X-Name-Last: Behera Title: Tracing the trajectory of financial vulnerability: a systematic review and bibliometric analysis Abstract: Over the span of 40 years, a substantial number of conceptual and empirical studies have been conducted on financial vulnerability (henceforth FV). These studies primarily covered socioeconomics, finance, management, and medicine. However, there is a paucity of comprehensive reviews and scientific mapping of the extant literature in the FV domain. Bibliometric analysis attempts to provide quantitative and qualitative knowledge in this area. This study was based on a review of 475 articles published in Scopus-indexed journals from 1990 to 2023. The present study employed the Biblioshiny R studio Bibliometrix package for data extraction and analysis. Our analysis provides information on recent publication trends; prominent authors, institutes, and countries; citations; thematic groups; keyword analysis; and social network analysis to identify influential work in this research domain and future gaps. The present analysis contributes to consolidating the existing fragmented literature on FV and highlights its significance during the current pandemic. Additionally, the study would be useful for researchers, practitioners, and academicians to proceed to further explore the area and outline the trends and their empirical investigation.Over the span of 40 years, a substantial number of conceptual and empirical studies have been conducted on financial vulnerability. Thus, this paper provides a comprehensive overview of the evolution of financial vulnerability research, utilizing both systematic review and bibliometric analysis to map trends, key themes, and influential works. By synthesizing existing literature and visualizing the network of scholarly contributions, this study highlights the critical factors and providing the future research directions in the field. The findings offer valuable insights for researchers, policymakers, and practitioners, aiding in the formulation of strategies to mitigate financial vulnerability and promote financial resilience in diverse socioeconomic contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2411566 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2411566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2411566 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409421_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kingsford Onyina Author-X-Name-First: Kingsford Author-X-Name-Last: Onyina Author-Name: Richmond Silvanus Baye Author-X-Name-First: Richmond Silvanus Author-X-Name-Last: Baye Title: Impact of social protection policies on inclusive growth in Sub-Saharan Africa: evidence from bias-corrected dynamic panel Abstract: This study examines the role of social protection policies as a driver of inclusive growth. While some research argues that social protection policies empower marginalized groups, promote human capital, reduce inequality, alleviate poverty and contribute to long-term sustainable development, other studies contend that these policies can create disincentives and potentially exacerbate poverty. This inconclusive evidence may stem from the complex nature of these welfare indicators. We deviate from existing literature by examining the potential role of social protection policies on inclusive growth. As such, we aim to elucidate the inconclusive debate on the impact on social protection policies on welfare at the macro level. We used a panel of 48 countries in sub-Saharan Africa (SSA) over the period 1990–2022. By using the least squares dummy variable corrected (LSDVC) estimator the results confirm that social protection policies significantly contribute to inclusive growth. This finding is consistent with the Rawlsian theory of justice. We also show that factors such as real effective exchange rate (REER), foreign direct investment (FDI), CO2 emissions and infrastructure positively influence inclusive growth whereas corruption and inflation exert a negative effect. The study underscores the urgency for policy interventions to reinvigorate social protection systems to facilitate inclusive growth in the SSA region.This study sheds light on the crucial role of social protection policies in fostering inclusive growth across Sub-Saharan Africa. By analyzing data spanning over three decades and utilizing advanced econometric techniques, the research reveals that well-structured social protection systems can significantly reduce inequality, uplift marginalized populations, and drive sustainable economic progress. The findings challenge the long-held belief that social protection merely creates disincentives for growth, demonstrating instead that these policies, when effectively implemented, serve as a cornerstone for equitable development. This work holds immediate relevance for policymakers, emphasizing the need for robust and adaptive social safety nets to support long-term inclusive growth, especially in regions grappling with economic disparity and vulnerability. It provides a blueprint for designing social interventions that empower societies to overcome structural inequalities, paving the way for shared prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409421 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409421 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409421 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2305481_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Lisa Kustina Author-X-Name-First: Lisa Author-X-Name-Last: Kustina Author-Name: Rachmat Sudarsono Author-X-Name-First: Rachmat Author-X-Name-Last: Sudarsono Author-Name: Nury Effendi Author-X-Name-First: Nury Author-X-Name-Last: Effendi Title: Does foreign portfolio investment moderate the impact of exchange rate volatility and investor sentiment on country index crash risk? Abstract: This study evaluates the relationship investor sentiment, exchange rate volatility, net foreign portfolio investment and the country index crash risk. The moderating variable, net foreign portfolio investment, is introduced. While previous crash risk studies typically focus on individual firms, this study takes a country-level perspective. CRASH, NCSKEW and DUVOL represent the Country Index Crash risk. The data will be analyzed using EViews software, including panel data from logistic regression and OLS regression using a two-dimensional clustered standard error method. The findings demonstrate the importance of exchange rate fluctuations and investor mood in affecting the country index crash risk. The influence of Net Foreign Portfolio Investment on the crash risk is negligible. Moreover, the study reveals that higher Net Foreign Portfolio Investment does not strengthen the impact of Investor Sentiment but weakens its influence in conjunction with Exchange Rate Volatility on the country index crash risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2305481 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2305481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2305481 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2429771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mahfoudh Hussein Mgammal Author-X-Name-First: Mahfoudh Hussein Author-X-Name-Last: Mgammal Title: The impact of tobacco taxes, VAT, and affordability on the human development index: a global perspective on future economic trends Abstract: The objective of this study is to analyse the correlation between different types of taxation, price, usage, Human-Development-Index (HDI), affordability, and Gross-Domestic-Product(GDP) per capita. In particular, this work hypothesizes that there is a positive relationship between tobacco taxes and HDI. Taxation of tobacco products can enhance human development through a general upswing in public revenues, reduction of tobacco consumption, and the resulting enhancement of health. To test these relationships, cross-sectional-data on 163 countries were used, and four proposed models are estimated using Structural-Equation-Modelling (SEM). We examine the impact of four economic indicators on HDI, demonstrating that all indicators positively and significantly affect HDI. Also, we test the impact of affordability and three economic factors, whereby price in US$ has a positive effect on affordability while taxation and sales taxes have a negative but significant effect. From these findings, it is evident that increasing tobacco taxes can improve the HDI because of the ability to generate public-revenue, decrease tobacco consumption, and improve health status. However, the study also points to some complexities, including the inability to establish causality and the possibility of confounding factors. These insights should be leveraged by policymakers and global health organizations sto develop and implement evidence-based-strategies. More researches are required to understand the qualitative aspects and address existing constraints.It turns out that higher tobacco-taxes affect the HDI and GDP per-capita, creating positive public-income and anti-tobacco consumption, improving public-health. Through analysis across 163 countries, we highlights the benefits of tobacco-taxation: It strengthens-economies and at the same time promotes social development. This study provides useful information to the policymakers to convince them to employ taxation as one of the strategic policies to enhance the economic status while at the same time preventing the fear implications of the disease on the country’s residents. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2429771 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2429771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2429771 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2428955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Ibrahim Abdukadir Sheik-Ali Author-X-Name-First: Ibrahim Abdukadir Author-X-Name-Last: Sheik-Ali Author-Name: Samuel Asumadu Sarkodie Author-X-Name-First: Samuel Asumadu Author-X-Name-Last: Sarkodie Title: Does unregulated exchange rate asymmetrically affect trade balance? An empirical evidence from Somalia Abstract: Somalia has been a stateless nation for over two decades, where government institutions have been destroyed and malfunctioned, including the central bank. Consequently, this ruled out the control and regulation of the money supply and exchange rate by the central bank. This study investigates the effect of unregulated exchange rates on the trade balance in Somalia over the period 1984–2018. Using the nonlinear ARDL model, the results show the presence of asymmetric long-term effects of unregulated exchange rates on the trade balance. The study finds that currency depreciation worsens trade balance both in the long- and short-run, while long-term currency appreciation has a significant impact on trade balance but significant positive short-run effects on the trade balance. Overall, the study confirms the absence of the Marshall-Lerner condition and the J-curve effect, validated by several econometric methodologies for robustness. Our study suggests that reforms in the exchange rate system and monetary policies can restore the credibility and stability of the Somali shilling, which can boost trade and investment.Somalia has been a stateless nation for over two decades where government institutions destructed and became malfunctioning including the central bank. Consequently, this ruled out the control and regulation of money supply and exchange rate by the central bank. The informal unregulated exchange rate market causes serious problems to the Somali economy. Specifically, it constantly increases the inflation rate by raising the price of imported goods given that Somalia is a highly import-dependent country. Additionally, the unregulated exchange rate depreciation does not only raise the price of imported goods, but it also erodes the purchasing power of the low-earning workers who receive their salary in Somali Shillings—thereby causing many households vulnerable to multidimensional poverty. This paper investigates the effect of unregulated exchange rates on the trade balance in Somalia over the period 1984–2018. Using the nonlinear ARDL model, the results show the presence of asymmetric long-term effects of unregulated exchange rates on the trade balance. The study finds that currency depreciation worsens trade balance in both the long- and short-run, while long-term currency appreciation has no significant impact on trade balance but has significant positive short-run effects on the trade balance. Our study suggests reforms in the exchange rate system and monetary policies restore credibility and stability of the Somali shilling which can boost trade and investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2428955 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2428955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2428955 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2302637_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Souvik Banerjee Author-X-Name-First: Souvik Author-X-Name-Last: Banerjee Author-Name: Amarnath Mitra Author-X-Name-First: Amarnath Author-X-Name-Last: Mitra Author-Name: Sangram Kesari Jena Author-X-Name-First: Sangram Kesari Author-X-Name-Last: Jena Author-Name: Debaditya Mohanti Author-X-Name-First: Debaditya Author-X-Name-Last: Mohanti Title: Influence of foreign institutional holding on corporate risk-return profile: a panel quantile regression analysis Abstract: The study investigates the influence of foreign institutional investment on the risk-return profile of firms. Corporate risk is analyzed as business risk and financial risk in this study. The impact of foreign institutional investor’s (FII) holding on business and financial risk taking behavior is studied on 174 listed non-financial firms in India using panel quantile regression methodology for a span of 20 years which include the pre and post 2008 financial crisis periods as well. Panel fixed effect model was found to be appropriate in this study The impact of FII holding is also studied through the distribution of the risk through panel quantile regression. The impact of FII holding on risk taking behaviour of the firms is studied primarily across high, average and low proportion of corporate risk. Overall FII holding has an inverse relationship with corporate risk taking behavior of firms. The positive impact of FII holding across all types of firms in terms of the risk-return profile indicates that their presence is long term and reduces risk taking behaviour of the corresponding firm. The implications of this study will be significant in regulating FII inflows and outflows to ensure discipline on the part of firm management in improving its risk-return profile. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2302637 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2302637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2302637 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2420203_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: JianJiang Liu Author-X-Name-First: JianJiang Author-X-Name-Last: Liu Author-Name: Qi Tang Author-X-Name-First: Qi Author-X-Name-Last: Tang Author-Name: Fidelis Ayangbah Author-X-Name-First: Fidelis Author-X-Name-Last: Ayangbah Title: Digital innovation and manufacturing employment - based on the analysis of mediating and threshold effects Abstract: ‘Profound changesunseen in a century’ superimpose the complex background of weak global economic growth. Employment affects a country's economic development and social stability, and is an urgent issue that every country needs to solve. This study examines the impact of digital innovation on the absorption capacity of manufacturing jobs, using data from listed companies from 2011 to 2021. The mechanism test indicates that digital innovation fosters enterprise employment through three principal avenues: enhanced total factor productivity, alleviation of enterprise financing constraints, and expansion of the market size. A heterogeneity analysis indicates that the impact of digital innovation is more pronounced in low-technology firms, state-owned firms, and technology-intensive firms. Further analysis revealed that the level of enterprise digital innovation positively affects the employment of high-tech and medium-skilled labour, while having no significant impact on low-skilled labour. In addition, the impact of digital innovation on employment in manufacturing enterprises is not a simple linear relationship, but there is a double threshold effect. When the level of digital innovation reaches a certain threshold, the effect of promoting employment becomes more significant. This study enriches the literature on the impact of digital innovation on employment and provides a useful reference for local governments on how to alleviate employment pressures.The paper draws on data from listed companies in China to examine the impact of digital innovation on employment in the manufacturing industry. It combines theoretical insights with empirical evidence, employing the two-way fixed-effect model and the threshold effect model to investigate this relationship. The paper contributes to the theoretical understanding of the impact of digital innovation on employment and has significant practical implications, offering a valuable reference point for policymakers seeking to address employment challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2420203 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2420203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2420203 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2397454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Babatunde Lawrence Author-X-Name-First: Babatunde Author-X-Name-Last: Lawrence Author-Name: Fabian Moodley Author-X-Name-First: Fabian Author-X-Name-Last: Moodley Author-Name: Sune Ferreira-Schenk Author-X-Name-First: Sune Author-X-Name-Last: Ferreira-Schenk Title: Macroeconomic determinants of the JSE size-base industries connectedness: evidence from changing market conditions Abstract: This study provides evidence and proof of dynamic return connectedness alongside the revelation that certain macroeconomic factors determine the return connectedness of size-based industries of the Johannesburg Stock Exchange (JSE). The objective of this study is to examine the effect of COVID-19 on the connectedness of JSE size-based indices and to investigate the effect of macroeconomic variables on JSE size-based index connectedness under changing market conditions. By employing the time varying parameter vector autoregressive (TVP-VAR) model alongside the Diebold and Yilmaz Connectedness framework to examine the time-varying connectedness and using the Markov regime-switching model to determine the drivers of the return connectedness for the period from 4 January 2017, to 30 June 2023. The findings of this study demonstrated that the return connectedness of the JSE-size-based indices vary over time, especially in extreme market conditions such as the pre, during and post-Covid-19 periods. Moreover, the Covid-19 pandemic period reveals a season of high correlation; hence, a heightened co-movement in the returns of all JSE sized-based indices. Moreover, macroeconomic variables have an alternating effect on the connectedness of JSE sized-based indices during bull and bear market conditions. That is, the effect is regime-dependent and time varying. These findings have serious implications for portfolio diversification, in which portfolio rebalancing is needed during alternating market conditions.In recent years there have been problems in equity portfolio decision, formulation, and stability especially during economic turbulence. Hence making the task of investment portfolio formulation a difficult one. The size-based industries on the Johannesburg stock exchange (JSE) are eligible instruments that have the capacity to reflect the market performance of firms in each category (FTSE Russell, 2020), and hence capable to be used in enhancing portfolio decisions, formulation and further enhance return stability on the JSE. This is very important in turbulence periods such as the COVID-19 pandemic during which global and local economic activities was stalled, economic and financial uncertainties spiked and financial markets plunged, which led to global financial chaos that disturbed asset allocations. Hence this study used the sized-based industries on the JSE to establish possible correlations between them (JSE-LRG CAP, JSE-MID CAP, JSE-SML, and JSE-FLD industries) during extreme events that affected global economy such as the COVID-19 pandemic, and further investigates the macroeconomic factors that could determine their connectedness in different market conditions such as during the bullish or bearish regime of an economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2397454 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2397454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2397454 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399760_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ahmed I. Kato Author-X-Name-First: Ahmed I. Author-X-Name-Last: Kato Title: Building resilience and sustainability in small businesses enterprises through sustainable venture capital investment in sub-Saharan Africa Abstract: Venture capital (VC) has the potential to revolutionize sustainability in small and medium enterprises (SMEs), yet this area remains underexplored in sustainable finance. This study explores the role of VC in fostering resilience and sustainability within SMEs in sub-Saharan Africa, highlighting the need for increased sustainable financing to address regional challenges and promote resilient business models. While sustainable financing is crucial for promoting sustainable practices, small businesses face barriers in accessing funding opportunities to strengthen resilience. Through explanatory factor analysis (EFA) of data from 61 VC firms across three sub-Saharan African countries from 2015 to 2021, the study reveals that combining VC investments, resilience, sustainability practices, enhanced business performance, market share expansion and introducing new products and services leads to sustainable growth for SMEs. This has practical implications for investors, policymakers, and business owners seeking to elevate sustainability practices as well as enhance business performance through strategic VC financing. Furthermore, the study presents a framework for sustainable VC finance, stressing its role in driving sustainable growth and market expansion in small enterprises. This contributes to the literature by deepening understanding of the relationship between VC finance, resilience, sustainability, and business performance. Thus far, the varying levels of economic development and sectoral disparities across sub-Saharan Africa may impact the scalability and effectiveness of sustainability practices driven by VC. These contextual challenges raise concerns about the equitable distribution of VC benefits and the depth of their impact on small business resilience and sustainability ecosystems.This study unveils the transformative power of venture capital (VC) in driving sustainable growth and resilience within small and medium enterprises (SMEs) in sub-Saharan Africa. Our analysis of data from 61 VC firms reveals how strategic VC financing can unlock sustainable business models, enhancing resilience, market share, and innovation while addressing regional challenges. This research offers a critical roadmap for investors, policymakers, and business owners to leverage VC for sustainable development, contributing vital insights to the field of sustainable finance and promoting equitable access to capital for a more resilient and sustainable business ecosystem in sub-Saharan Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399760 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399760 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399760 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Rasoul Rezvanian Author-X-Name-First: Rasoul Author-X-Name-Last: Rezvanian Author-Name: Seyed Mehdian Author-X-Name-First: Seyed Author-X-Name-Last: Mehdian Author-Name: Mussie Teclezion Author-X-Name-First: Mussie Author-X-Name-Last: Teclezion Title: The cost efficiency of the U.S. small banks after the 2008 global financial crisis Abstract: This paper examines the relative cost efficiency of U.S. small banks after the 2008 Global Financial Crisis (2008 GFC). Using financial information from 10,495 of the same small banks operating from 2010 to 2021, we examine the after-effects of the recent global financial crises on the U.S. small banks. The study uses Data Envelopment Analysis (DEA) to calculate the overall efficiency using yearly and pooled data. The overall efficiency measure is then decomposed into allocative, technical, pure-technical, and scale efficiency to better understand the sources of small banks’ inefficiencies. The results indicate that the overall efficiency of small banks operating in the U.S. after the 2008 GFC has been continuously low until 2021. The source of the low level of overall efficiency has been the low level of technical efficiency rather than allocative efficiency. In turn, the basis of the low level of technical efficiency has been pure technical and scale efficiency. Understanding the origins of cost inefficiencies in small banks has implications for micro and macro policymaking. Examining the underlying causes of cost inefficiencies in small banks after the financial crisis can inform policymakers in devising strategies to improve banks’ cost efficiency.This paper delves into the impact of the 2008 global financial crisis on the efficiency of small banks in the U.S. using Data Envelopment Analysis (DEA). Understanding the reasons for cost inefficiencies in small banks has implications for both micro and macro policy-making. By investigating the root causes of cost inefficiencies in small banks following the 2008 financial crisis, policymakers can develop strategies to improve small banks’ cost efficiency. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402558 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402558 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402558 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2378121_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ahmed Chafai Author-X-Name-First: Ahmed Author-X-Name-Last: Chafai Author-Name: Wafa Khémiri Author-X-Name-First: Wafa Author-X-Name-Last: Khémiri Author-Name: Rewayda Tobar Author-X-Name-First: Rewayda Author-X-Name-Last: Tobar Author-Name: Eman Fathi Attia Author-X-Name-First: Eman Fathi Author-X-Name-Last: Attia Author-Name: Hady Omar Abozeid Author-X-Name-First: Hady Omar Author-X-Name-Last: Abozeid Title: The moderating effect of audit quality on the relationship between financial inclusion and corporate investment: new evidence from the Middle East and North Africa region Abstract: The purpose of this paper is to examine the impact of financial inclusion on corporate investment. More specifically, this paper investigates the possibility of a nonlinear relationship between financial inclusion and corporate investment, as well as the moderating effect of audit quality in this this relationship. To do so, we selected a group of 400 listed non-financial firms in the Middle East and North Africa (MENA) region (Egypt, Jordan, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, and the United Arab Emirates) over a period from 2007 to 2020. The results show an inverted U-shaped link between financial inclusion and corporate investment, applying the system generalized method of moments (SGMM) method. They also found that audit quality is identified as a moderating factor in the relationship between financial inclusion and corporate investment. Our results show that the interaction of financial inclusion and audit quality improves investment efficiency, but that underinvestment scenario could result from spending free cash-flows on risky projects. The findings of this study could be a valuable contribution to the development of financial inclusion policies and to improving access to credit for policymakers and managers in the MENA region. The combination of financial inclusion and audit quality (internal and external) is indispensable for reducing agency costs and optimizing financial inclusion levels.This paper analyzes the impact of financial inclusion on corporate investment, emphasizing the importance of audit quality. The result reveals an inverted U-shaped relationship between financial inclusion and corporate investment and highlight that audit quality significantly moderates this relationship. The findings have implications for policymakers and managers in the MENA region, emphasizing the need for effective audit practices to reduce costs and improve credit access. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2378121 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2378121 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2378121 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2411558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Huthaifa Alqaralleh Author-X-Name-First: Huthaifa Author-X-Name-Last: Alqaralleh Author-Name: Rim El Khoury Author-X-Name-First: Rim Author-X-Name-Last: El Khoury Author-Name: Muneer M. Alshater Author-X-Name-First: Muneer M. Author-X-Name-Last: Alshater Title: Tail-risk spillovers and interconnectedness in international logistics markets: a QVAR approach Abstract: This research explores the interdependence within the international logistics sector among 17 nations, utilizing a quantile-based technique to assess the transmission of returns. By analyzing daily data from DataStream spanning from 1 June 2016, to 12 August 2024, we apply the Quantile Vector Autoregression framework to examine the synchronous behavior of variables, considering the magnitude of shocks. Our findings reveal varying degrees of linkage at the lower, median, and upper quantiles of the conditional distribution. The results show that extreme events, such as the COVID-19 pandemic and the Russia-Ukraine war, significantly amplified spillovers across logistics markets, while the impact of the Israel-Hamas conflict was more regionally contained. Regional clustering and geographical proximity play a crucial role, with stronger interconnections observed among neighboring countries, such as the US and Canada, and Germany and France. The US stands out as a dominant transmitter of shocks, while countries in Asia and Oceania tend to be net receivers, highlighting their vulnerability to external disruptions. These results underscore the need for quantile-based risk assessments in regulatory frameworks and risk management strategies to better manage asymmetric risk transmissions during global crises.The current study makes significant theoretical contributions to understanding interdependence and risk transmission in the global logistics industry, particularly under extreme market conditions. By employing the Quantile Vector Autoregression (QVAR) approach, we move beyond traditional mean-based analyses, which often overlook the critical behavior of markets during crises. Our focus on tail-risk spillovers highlights how extreme positive and negative shocks exert a much stronger influence on market dynamics than median shocks, advancing the literature on market interdependencies by introducing a more nuanced perspective on risk transmission during periods of stress and stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2411558 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2411558 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2411558 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2407237_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Duyen My Thi Thi Author-X-Name-First: Duyen Author-X-Name-Last: My Thi Thi Author-Name: Hue Trinh Hoang Hong Author-X-Name-First: Hue Author-X-Name-Last: Trinh Hoang Hong Author-Name: Tinh Do Phu Tran Author-X-Name-First: Tinh Author-X-Name-Last: Do Phu Tran Title: Linking among economic growth, technology innovation, carbon dioxide emissions in Vietnam: evidence from three stage least squares models Abstract: To accomplish the goal of net emissions to ‘zero’ by 2050 while maintaining growth in Vietnam, interrelationship among technological innovation (TI), growth and emissions need to be considered. The goal of this research is to evaluate the bidirectional causality linkages among TI, growth and CO2 emissions (CO2E) in Vietnam over the period of 1990–2021 by using the simultaneous equation model with the three-stage least squares models. Empirical results show the existence of bidirectional causality among growth, CO2 emissions and TI. Specifically, growth positively influence on carbon emissions, and CO2 emissions affect on growth positively. Furthermore, innovation positively influences on growth, while growth positively impact on innovation. There is a negative link among innovation and carbon emissions. Implying that innovation negatively effect on CO2 emissions and carbon emissions has a negative influence on innovation. Findings indicate that growth contributes to environmental pollution in Vietnam, and technology innovation is an important factor for promoting economic growth and protecting the environment. Therefore, policymakers should encourage technology innovation for the advancement of clean energy, and apply advanced techniques in production to save fuel, contribute to protect the environment by reducing emissions.The results of this research have considerable policy implications for Vietnam with respect to innovations, growth, and environmental quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2407237 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2407237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2407237 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2391938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dick Chune Midamba Author-X-Name-First: Dick Chune Author-X-Name-Last: Midamba Author-Name: Kevin Okoth Ouko Author-X-Name-First: Kevin Okoth Author-X-Name-Last: Ouko Title: Gender disparities in agricultural extension among smallholders in Western Uganda Abstract: In this study, we aimed to assess gender disparities in access to agricultural extension services and the determinants of access to extension among male and female-headed households in Western Uganda. A cross-sectional survey was conducted to extract primary data from 200 farmers using a semi-structured questionnaire. The collected data were analyzed using descriptive statistics and Binary Logit model. Our findings revealed that majority of the male-headed households had access to extension compared to their female-headed household counterparts. This was also evident in the sources of agricultural extension. The socio-demographic characteristics of farmers also indicated that male-headed households were better off in many areas, for example, male-headed households boasted 498.83 kg/ha maize productivity, while households headed by females produced 405.36 kg/ha, indicating a 94 kg/ha yield gap. Similarly, adoption of agricultural practices was high among the male-headed households than their fellow female-headed counterparts. Finally, the estimates from the Binary Logit revealed that male-headed households’ access to extension was influenced by age, education, farm size, crop diversity, and group membership. The predictor variables that significantly influenced female-headed households’ access to extension include age, education, experience, household size, farm size, distance to extension, crop diversity, non-farm income, and credit access. The study concluded that there are gender disparities in agricultural extension as evident in the access to, sources and determinants of access to agricultural extension. To bridge the gender gap, the study advocates for more training and extension services to female-headed households regarding access to and sources of extension services.Extension service provision is one of the pillars of agricultural productivity among the smallholder farmers in Sub-Saharan Africa. The role of agricultural extension services involves linking farmers and the governments. Through extension services, smallholder farmers are able to acquire modern agricultural techniques that increases farm productivity. With increased farm productivity, farmers are able to come out of the catastrophic levels of food insecurity. Female headed households normally report less productivity of major crops, leading to food insecurity amongst them. This research work contributes to the global discussions on access to extension among the male and female headed households. The study presents results on the state of access to agricultural extension services as well as the determinants of access to extension among the male and female headed households. Our findings and recommendations can be adopted by relevant authorities to increase access to extension, leading to higher crop productivity among female headed households. In the long run, there will be a decline in food insecurity as a result of the increased crop productivity among the female headed households. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2391938 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2391938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2391938 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2341214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Umar Adam Author-X-Name-First: Umar Author-X-Name-Last: Adam Author-Name: Abdul Latif Sulemana Author-X-Name-First: Abdul Latif Author-X-Name-Last: Sulemana Author-Name: Mohammed Shamsudeen Sandow Sule Author-X-Name-First: Mohammed Shamsudeen Sandow Author-X-Name-Last: Sule Author-Name: Mohammed Mudasir Yussif Author-X-Name-First: Mohammed Mudasir Author-X-Name-Last: Yussif Title: Does digitisation determine financial development? Empirical evidence from Africa Abstract: Africa is investing and recalibrating its digital infrastructure in the financial and other sectors to support economic growth and development. It is in light of this, the study seeks to examine from an empirical perspective whether digitisation has a significant role in financial development in African countries. Specifically, the study employed macroeconomic data on Africa from World Development Indicators (WDI) from the period of 2000-2021. The data covers all the 54 African countries. Bayesian Panel Vector Auto-Regressive (BPVAR) was adopted to estimate the parameters involved in the study objective. The results indicate that digitisation helps to increase financial inclusion, reduce transaction costs, and promote the development of new financial products and services, all promoting financial development and exploiting its allied opportunities. The findings also suggest that other factors such as infrastructure, financial inclusion, economic development, institutional quality, and government support are important for the development of the financial sector and should be addressed in conjunction with digital innovation. Policymakers in Africa should take note of these findings and work to create an enabling environment that supports financial sector development. Efforts to improve institutional quality, governance, and infrastructure can help to create a more conducive environment for financial development. Overall, the study suggests that digitisation has the potential to improve financial sector development in Africa, and can play a key role in mitigating financial risk, improving financial sector efficiency and harnessing the opportunities that abound in the financial sector.There are currently encouraging efforts in place by African leaders to digitise almost every sphere of the African economy as a result, Africa is witnessing rapid development in the digital front especially in the financial sector. It is in the light of the aforementioned, the study examined from an empirical perspective whether digitisation has a significant role in financial development in African countries. The results indicate that digitisation helps to increase financial inclusion, reduce transaction costs, and promote the development of new financial products and services, all promoting financial development and exploiting its allied opportunities. The findings also suggest that other factors such as infrastructure, financial inclusion, economic development, institutional quality, and government support are important for the development of the financial sector and should be addressed in conjunction with digital innovation.The study is advocating for policymakers in Africa to take note of these findings and work to create an enabling environment that supports financial sector development. Efforts to improve institutional quality, governance, and infrastructure can help to create a more conducive environment for financial development. Overall, the study suggests that digitisation has the potential to improve financial sector development in Africa, and can play a key role in mitigating financial risk, improving financial sector efficiency and harnessing the opportunities that abound in the financial sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2341214 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2341214 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2341214 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2373540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Yodit Abebe Mamo Author-X-Name-First: Yodit Author-X-Name-Last: Abebe Mamo Author-Name: Abrha Mesele Sisay Author-X-Name-First: Abrha Author-X-Name-Last: Mesele Sisay Author-Name: Behailu Dessalegn WoldeSilassie Author-X-Name-First: Behailu Author-X-Name-Last: Dessalegn WoldeSilassie Author-Name: Kiflie Worku Angaw Author-X-Name-First: Kiflie Author-X-Name-Last: Worku Angaw Title: Corporate social responsibilities contribution for sustainable community development: evidence from industries in Southern Ethiopia Abstract: This study interrogates the contribution of corporate social responsibility to community development from socioeconomic, environmental, ethical, and philanthropic perspectives. A total of 401 households were selected randomly and proportionally from the Southern Nations Nationalities and Peoples Regional State and Hawassa City from the Sidama Region. Survey data were collected from local communities using the paper-assisted personal interview (PAPI) technique. Interviews with government officials and focus group discussions with local community members. Data were analyzed using a mixed research approach, where quantitative data were analyzed using a structural equation model and descriptive statistics, and thematic analysis was used for qualitative data. The study found that CSR contributes to many aspects of local community development. Our empirical model confirms that proper implementation of CSR initiatives substantially contributes to social development β = 0.913, economic development β = 913, environmental sustainability β = 0.784, ethical aspect 0.767, Philanthropic activities β = 0.814, and overall local development β = 0.960 where p ≤ 0.001 statistically significant level. The study reasserts and reiterates the need to design appropriate policy instruments and law enforcement techniques, in addition to promulgating regulatory provisions and legal frameworks. The study sheds light on the imperativeness of CSR for smooth human-environment and business-resource relationships. The study contributes to literature, debate, and policy implications on emerging issues of CSR-business, and development discourses.Our study passionately explores how Corporate Social Responsibility (CSR) initiatives by industries in Southern Ethiopia significantly enhance sustainable community development across socioeconomic, environmental, ethical, and philanthropic dimensions based on first-hand data. Well-implemented CSR programs lead to substantial improvements in social development, economic progress, environmental sustainability, ethical standards, and philanthropy. However, there is a critical need for well-designed policy instruments and regulatory enforcement to promote CSR and foster harmonious human-environment and business-resource relationships. Without this, industrial activities inevitably cause adverse effects, such as pollution and health damage, exacerbated by poor regulatory control and corruption. Industries must engage responsibly with local communities to benefit them while promoting efficient communication. This research offers valuable insights for policymakers, scholars, and practitioners on the importance of CSR in achieving sustainable development goals, emphasizing its relevance in contemporary business and development discourse and providing substantial implications for policy and practice in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2373540 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2373540 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2373540 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2344228_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hung-Yu Chen Author-X-Name-First: Hung-Yu Author-X-Name-Last: Chen Author-Name: Ming-Chin Lin Author-X-Name-First: Ming-Chin Author-X-Name-Last: Lin Author-Name: Zong-Han Lin Author-X-Name-First: Zong-Han Author-X-Name-Last: Lin Title: Do corporate social responsibility activities enhance firm value? An empirical evidence from Taiwan Abstract: In the past few decades, companies have begun to pay attention to the issue of whether companies that are engaged in CSR activities enhance firm value remains a subject of debate. From the perspective of agency theory, high-CSR companies can encounter poor financial performance and a reduction in firm value because of managers’ bad project selection. According to stakeholder theory, high-CSR companies face a positive relationship to financial performance and vament as a result of consideration for the benefits of stakeholders. This study collects CSR data from CommonWealth Magazine and examines how Taiwanese companies engaged in CSR activities affect corporate financial performance. The empirical finding shows that CSR is significantly positive to corporate financial performance. This result suggests that companies actively engaged in CSR activities bring a positive effect on firm value. Therefore, our evidence supports the stakeholder theory that high CSR companies benefit their stakeholders.Recently, there has been a change in the way businesses operate, with enterprises beginning to prioritize issues such as environmental protection, social responsibility, and corporate governance. They coexist and prosper alongside these concerns. Corporate social responsibility is a broad concept of sustainable development, while ESG embodies the principles of how CSR is implemented. This study examines the impact of CSR activities on corporate financial performance among Taiwanese companies. The empirical findings show a significantly positive correlation between CSR and corporate financial performance, suggesting that companies actively engaged in CSR activities bring positive effects to firm value. The evidence supports the stakeholder theory, indicating that high CSR companies benefit their stakeholders. The empirical implications suggest that advocating for CSR could strengthen favorable relationships with stakeholders, thereby benefiting companies. In practice, companies dedicated to engaging in CSR activities can enhance performance and increase value. The research results imply that promoting CSR activities is an investment rather than a cost, urging companies to increase their involvement in CSR activities without hesitation. From an investor’s standpoint, endorsing companies’ efforts in CSR is essential, not only for shareholders’ profitability but also for overall sustainability. Policymakers should formulate comprehensive policies, providing incentives such as tax relief or support schemes to encourage companies to invest in CSR activities. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2344228 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2344228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2344228 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2355547_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Benard Ohene Kwatia Author-X-Name-First: Benard Author-X-Name-Last: Ohene Kwatia Author-Name: Godfred Amewu Author-X-Name-First: Godfred Author-X-Name-Last: Amewu Author-Name: Mohammed Armah Author-X-Name-First: Mohammed Author-X-Name-Last: Armah Title: Does personal freedom matter for financial development in Africa? Abstract: It has repeatedly been claimed that institutions play an important, and decisive role in economic development. Many studies have analyzed the effect of formal institution on financial development while informal institutions have received less attention. With this paper, we contribute to the effect of personal freedom as a measure for informal institutions on financial development using annual data from 40 African countries spanning 2000 to 2020. We employ the novel fixed effect panel quantile regression technique. The study documents that, in the upper quantile, personal freedom negatively and significantly affects financial development. This finding explicates that, a low level of personal freedom restricts human choices, limiting personal participation in the development of the financial system in Africa. Thus, personal freedom is important for Africa’s financial development. The study recommends that policymakers rally resolute support to defend and protect human rights and personal liberties that encourage human choices. Additionally, the findings intuitively reinforce the prerequisite for African governments regularly evaluate policies that promote financial sector development, particularly economic freedom and government expenditures.This research offers a significant contribution to the understanding of the relationship between informal institutions, specifically personal freedom, and financial development in Africa. By employing data from 40 African countries over two decades, and utilising fixed-effect panel quantile regression, the study provides evidence of how personal freedom significantly influences financial development in the upper quantiles. The findings underscore the need of human rights and personal liberties in facilitating financial sector growth, suggesting that enhanced personal freedoms foster greater individual participation in financial markets, which is vital for robust financial sector development.The findings underscore the need for policymakers to prioritising the protection and enhancement of personal freedoms as a strategy for financial sector development in Africa. This research also emphasis the necessity for continuous policy evaluation to provide a strategic roadmap for enhancing Africa’s financial infrastructure. Consequently, the study does not only advance the academic discourse on the importance of informal institutions in financial development in Africa but also, provides actionable recommendations for governance and policy in African countries, potentially stimulating financial growth and stability through the reinforcement of personal freedom. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2355547 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2355547 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2355547 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2322874_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Johannes Schrank Author-X-Name-First: Johannes Author-X-Name-Last: Schrank Title: The impact of a crisis on monetary policy’s influence on financial markets: Evidence from the COVID-19 pandemic Abstract: This study analyzes the effect of monetary policy, measured by interest rates and money supply, on financial markets. Furthermore, it studies the impact of a crisis on monetary policy’s influence on financial markets. The stock and the bond market are used to reflect financial markets. This quantitative study is based on daily data from Thailand before, during and after the COVID-19 pandemic for 15 years. The article finds that interest rate and money supply increases lead to increased stock returns and increased government bond yields. Moreover, during a crisis, interest rate and money supply changes have a larger impact on stock returns and bond yields. The greater the severity of a crisis, the larger the effect of interest rate and money supply changes on financial markets. The results suggest that the central bank may use monetary policy to a different extent during a crisis than during normal times. Investors should consider adjusting their investment strategies during times of crisis to account for the larger impact of monetary policy on financial markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2322874 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2322874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2322874 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2305480_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ziwei Zhang Author-X-Name-First: Ziwei Author-X-Name-Last: Zhang Author-Name: Jianqi Song Author-X-Name-First: Jianqi Author-X-Name-Last: Song Author-Name: Taiyi Shu Author-X-Name-First: Taiyi Author-X-Name-Last: Shu Author-Name: Tiantian Zhao Author-X-Name-First: Tiantian Author-X-Name-Last: Zhao Title: Changes in rural financial exclusion’s supply and demand factors from the perspective of digital inclusive financial policies Abstract: This paper employs a Regression Discontinuity Design (RDD) methodology, utilizing data from the Chinese Household Finance Survey (CHFS), China Rural Statistical Yearbook, China Financial Yearbook, and China Statistical Yearbook. The analysis scrutinizes rural financial exclusion from dual vantage points: the demand and supply sides, with households and provinces serving as fundamental analytical units. Employing years as threshold values, we establish 27 supply-side factors and 18 demand-side factors through RDD models. This analytical framework facilitates an assessment of the existence of breakpoint effects across diverse dimensions of financial exclusion in distinct years and fosters a discourse on rural financial exclusion and its structural dynamics within the context of China’s Digital Inclusive Finance policies. The findings of this study are as follows: (1) Supply-side determinants of rural financial exclusion in China have exhibited negligible change over the past decade, with Digital Inclusive Finance policies exerting limited influence. (2) Conversely, demand-side factors have exhibited some degree of variability, characterized by substantial reductions in channel exclusion and financial risk exclusion in 2013 and 2015. Digital Inclusive Finance policies have manifested a favorable impact on the demand side of rural financial exclusion. (3) In 2017, both financial knowledge exclusion and channel exclusion on the demand side of rural financial exclusion witnessed rebounded. Shifts in the orientation of Digital Inclusive Finance policies may precipitate a deterioration in the policy-dependent rural financial landscape, jeopardizing the preservation of their initial positive effects. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2305480 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2305480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2305480 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2331012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Benjamin Amoah Author-X-Name-First: Benjamin Author-X-Name-Last: Amoah Author-Name: Anthony Amoah Author-X-Name-First: Anthony Author-X-Name-Last: Amoah Title: Distribution of government residential utility stimulus in Ghana: evidence from the COVID-19 intervention Abstract: In the wake of the COVID-19 pandemic, several countries resorted to various levels of lockdown as a panacea for the rampant spread of the virus. However, the imposed lockdown was not without economic challenges, particularly for the poor in developing countries. In response, the government of Ghana unveiled several free social support packages such as free water and electricity services. This study models the behaviour for or against free utility services and further investigates the drivers that explain an individual’s behaviour. Using a survey method and an ordered probit econometric technique, we find evidence that about 71 percent of respondents support free utility services, 14 percent are indifferent, and 15 percent also indicate their disapproval. Furthermore, an ordered probit regression analysis is used to show evidence that educated respondents with higher incomes are less likely to appreciate government-sponsored freebies. Other drivers of such behavioural differences for aggregated and disaggregated free social intervention utility services were further examined.This study examined the reception of free water and a 50 percent electricity discount provided by the Ghanaian government during the COVID-19 pandemic. Utilising survey data and employing an ordered probit method, the research aimed to understand the factors influencing support or opposition towards free utility services. The findings reveal that approximately 71 percent of respondents preferred free utilities, while around 29 percent did not support the Ghana Residential Utility Stimulus implemented by the government. Among those opposed to the residential utility stimulus, a significant proportion were found to be educated individuals with higher incomes, as indicated by the ordered probit regression results. It is suggested that during emergencies like the COVID-19 pandemic, social assistance should be directed towards the impoverished and vulnerable segments of society. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2331012 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2331012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2331012 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2316333_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Winston Moore Author-X-Name-First: Winston Author-X-Name-Last: Moore Author-Name: Stephanie Pascal Author-X-Name-First: Stephanie Author-X-Name-Last: Pascal Title: The determinants of job losses due to the COVID-19 pandemic in small Island developing states Abstract: This paper investigates the determinants of job losses due to the COVID-19 in the small island developing states of the Caribbean. Utilising a survey of 1979 firms in the Caribbean and a probit regression model, the study identifies the key factors that might lead a firm to retrench staff. Two of the most important factors that impacted on job losses were the ease of doing business and innovation. Investing in the ease of doing business within the Caribbean therefore seems to be not only an economic good, but a social benefit as well. The findings of the study also support another use of innovation: as a response to crises.This study identifies the key factors influencing job losses in Caribbean small island developing states during COVID-19. It underscores the importance of strategic investments in the business environment for both economic and social benefits. The findings also highlight the role of innovation as a vital response to crises, emphasizing its capacity to mitigate job losses and enhance resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2316333 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2316333 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2316333 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2300819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Moodhi Raid Author-X-Name-First: Moodhi Author-X-Name-Last: Raid Author-Name: Nisar Ahmad Author-X-Name-First: Nisar Author-X-Name-Last: Ahmad Author-Name: Salim A. Bagadeem Author-X-Name-First: Salim A. Author-X-Name-Last: Bagadeem Author-Name: Jumah Alzyadat Author-X-Name-First: Jumah Author-X-Name-Last: Alzyadat Author-Name: Hisham Alhawal Author-X-Name-First: Hisham Author-X-Name-Last: Alhawal Title: The non-oil institutional sectors and economic growth in Saudi Arabia Abstract: This study explores the role of non-oil institutional sectors in the economic growth of the Saudi economy during the years 1970–2020, using vector auto regression, impulse response function, and variance decomposition. The results of study support the impact of the oil and non-oil sectors (private and public) on the economic growth in Saudi Arabia. The results show that the growth of the oil sector is more vulnerable to shocks, negatively reflecting economic growth for long periods. However, growth in the non-oil sector is stable and reduces the negative shocks on economic growth. Both the private and public sectors contribute to economic stability. The study recommends continuing efforts to diversify the economy and enhance the cooperation and mutual linkages among different sectors, especially the public and private sectors, to contribute in the economic growth coherent with Vision 2030. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2300819 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2300819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2300819 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2344269_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Yednekachew Merkeb Author-X-Name-First: Yednekachew Author-X-Name-Last: Merkeb Author-Name: Kumi Yasunobu Author-X-Name-First: Kumi Author-X-Name-Last: Yasunobu Author-Name: Asres Elias Author-X-Name-First: Asres Author-X-Name-Last: Elias Author-Name: Birara Endalew Author-X-Name-First: Birara Author-X-Name-Last: Endalew Title: Comparative analysis of household food security and its determinants among Productive Safety Net Program (PSNP) beneficiary, graduated, and non-beneficiary in Northwestern Ethiopia Abstract: This study aims to compare household food security and its determinants among PSNP beneficiary, graduated, and non-beneficiary. Data was collected from 396 sample households using a structured questionnaire and key informant interview. Binary Probit regression was used to analyse the determinants of household food security. Household food security was measured using Food Insecurity Experience Scale (FIES) and Household Hunger Scale (HHS). The study found significant differences in household food security among beneficiary, graduated and non-beneficiary both in FIES and HHS. The mean raw scores of FIES and HHS for graduated households were lower than both beneficiary and non-beneficiary households. Graduated households had the highest percentage of food secure households (67.4%), followed by non-beneficiary households (61.5%) and beneficiary households (34.3%). The binary probit model showed the number of clinic visits by household head was the only factor that negatively associated with all the three groups. The number of years benefited from PSNP had a negative influence on both beneficiary and graduated households’ food security. Whereas livestock had a positive effect on the food security of both graduated and non-beneficiary households, unlike dependency ratio. Livelihood zone, drought, and credit were only associated with beneficiary household food security, while crop diversification determined only graduated households’ food security. Hence, the findings suggest that policymakers and practitioners should focus on improving access to health care, limit the duration of PSNP participation, promote crop diversification, and provide proper credit use training to enhance household food security.Effective food security interventions play a significant role in addressing chronic food insecurity. In Ethiopia, Productive Safety Net Program (PSNP) has been implemented to provide predictable and reliable support to chronically food insecure households. Hence, this study compared the household food security and its determinants among PSNP beneficiary, graduated, and non-beneficiary. The findings showed that the household food security status of PSNP beneficiary, graduated, and non-beneficiary were significantly different. Graduated households had better household food security status than both beneficiary and non-beneficiary households. Moreover, the factors that determine the household food security status also vary among PSNP beneficiary, graduated, and non-beneficiary. The number of years benefited from PSNP had a negative effect on both beneficiary and graduated households’ food security. Comparing graduated households to current beneficiaries and non-beneficiaries provides insights on the long-term effects of PSNP. This study helps policymakers and practitioners to make changes on PSNP and design effective food security intervention considering the differences in food security status and determinants among PSNP beneficiary, graduated and non-beneficiary. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2344269 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2344269 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2344269 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2347022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Isaac Luke Agonbire Atugeba Author-X-Name-First: Isaac Luke Agonbire Author-X-Name-Last: Atugeba Author-Name: Emmanuel Acquah-Sam Author-X-Name-First: Emmanuel Author-X-Name-Last: Acquah-Sam Title: Relationship between corporate governance and firm performance in Ghana: does compliance to national governance frameworks matter? Abstract: The study examines the effect of compliance with national governance frameworks on the relationship between corporate governance and the performance of publicly traded companies in Ghana. A sample of 31 companies listed on the Ghana Stock Exchange was drawn for the study based on their annual reports spanning from 2013 to 2022. A new national governance quality index composed of items drawn from world governance indicators and a corporate governance index was developed by principal component analysis. The study used the Huber M-estimation Robust Least Squares (HMRLS) regression method. The findings of our study reveal that corporate governance practices adversely affect the level of firm performance. However, our results demonstrate that compliance with national governance and institutional frameworks plays a significant moderating role in the relationship between corporate governance and firm performance. The study offers managerial implications, as listed firms can adopt effective national governance and institutional quality practices to improve firm performance.This study investigates the relationship between corporate governance and business performance in Ghana, with a special focus on determining whether adherence to national governance frameworks has a significant impact. This research enhances the current understanding of corporate governance in Ghana and its impact on the performance of companies. This study offers useful information to policymakers, regulators, and business organisations in Ghana. This will result in improved corporate practices and greater performance of companies in Ghana. It will further aid stakeholders’ comprehension of the significance of complying with national governance frameworks. Ultimately, the findings in this research would promote a culture of transparency, responsibility, and ethical behaviour in the business industry. This would enhance the overall economic progress and investor confidence in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2347022 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2347022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2347022 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2365585_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Inayat Ullah Wani Author-X-Name-First: Inayat Ullah Author-X-Name-Last: Wani Author-Name: Majed Alharthi Author-X-Name-First: Majed Author-X-Name-Last: Alharthi Author-Name: Ishfaq Nazir Khanday Author-X-Name-First: Ishfaq Nazir Author-X-Name-Last: Khanday Author-Name: Mohammad Subhan Author-X-Name-First: Mohammad Author-X-Name-Last: Subhan Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Exploring the complementary interaction between financial inclusion and gender equality on economic growth: fresh evidence from developing countries Abstract: Financial inclusion and gender equality are the key constituents of the principle of “leaving no one behind” upheld by the Sustainable Development Goals, which emphasise a holistic approach for the sustainable development of all. Financial inclusion and gender equality are interrelated factors that can influence economic growth in complex ways. In addition to their independent impact on economic growth, there is an active interaction between the two which also plays an important role in determining the level of economic growth. This interaction has been neglected by the existing literature. Based on this gap, the paper investigates the existence and type of this interaction between financial inclusion and gender equality in determining economic growth for a group of 48 developing countries for the period 2004–2019 using the Generalised Method of Moments. The study found a complementary interaction between gender equality and financial inclusion, such that improvements in financial inclusion in the presence of better gender parity have a multiplicative effect on economic growth and vice versa. The study concludes that gender equality creates various pull and push factors for better financial inclusion. Similarly, financial inclusion eliminates gender inequality in access to financial products, exacerbating the influence on economic growth both individually and collectively.This study looks at the complementary role of financial inclusion and gender equality in promoting economic growth in developing countries. The study employs a panel data analysis of 48 countries from 2004 to 2019 using the Generalized Method of Moments to find a substantial complimentary relationship between financial inclusion and gender equality. The findings show that innovations in financial inclusion, combined with greater gender equality, have a multiplier effect on economic development. This study emphasizes the need to increase financial inclusion and gender equality as interconnected methods for achieving sustainable economic growth. The policy implications are considerable, implying that attempts to increase financial inclusion should be complemented by actions to improve gender equality, assuring inclusive and equitable economic growth. This work adds to the current literature by addressing a previously overlooked interaction, providing new perspectives for policymakers, economists, and development practitioners working to promote economic development in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2365585 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2365585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2365585 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431536_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Zong-feng Zou Author-X-Name-First: Zong-feng Author-X-Name-Last: Zou Author-Name: Chao Zhang Author-X-Name-First: Chao Author-X-Name-Last: Zhang Author-Name: Xi-yun Sun Author-X-Name-First: Xi-yun Author-X-Name-Last: Sun Title: Risk spillovers among crude oil, gold, and China equity sub-sectors Abstract: This study investigates the time-varying return spillovers among the gold and oil markets and the Chinese equity subsectors using a network system representation. The results of the statics analysis show that crude oil and the majority of equity sectors are the net transmitters of spillovers in the network, whereas gold is the net receiver of spillovers from the network system. Additionally, negative return spillovers are greater than positive return spillovers. The results of time-varying analysis based on the moving window technique show that the dynamic symmetric and asymmetric return propagation rise during several periods of financial difficulties, suggesting the existence of market contagion. This pattern of market spillover effects is particularly notable during the market stress period marked by the COVID-19 crisis. The analysis of dynamic network linkages uncovers the crude oil market and the banking sector as the biggest risk sources in the network system. Finally, we construct and compare the risk performance of portfolios under four different strategies, showing that gold is an effective hedging tool for risk in China’s stock market.This paper analyzes return spillovers between crude oil, gold, and Chinese equity sectors using the Diebold-Yilmaz framework. Key findings reveal asymmetric spillovers, with negative returns dominating. It highlights gold's role in risk diversification and demonstrates that optimal portfolio strategies can significantly reduce downside risk, especially during financial crises. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431536 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431536 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2411567_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Saroj S. Prasad Author-X-Name-First: Saroj S. Author-X-Name-Last: Prasad Author-Name: Ashutosh Verma Author-X-Name-First: Ashutosh Author-X-Name-Last: Verma Author-Name: Priti Bakhshi Author-X-Name-First: Priti Author-X-Name-Last: Bakhshi Author-Name: Shantanu Prasad Author-X-Name-First: Shantanu Author-X-Name-Last: Prasad Title: Superiority of six factor model in Indian stock market Abstract: This novel work is the first study in India to incorporate the Human capital (HC) factor as a six-factor asset-pricing model and presents a robust methodology. The aim of this work is to examine the ability of the six-factor model to capture excess returns using a GMM framework with time periods that were missing in previous studies. Therefore, data for this study were collected using the BSE 500 index. Building on this insight, this study attempts to explain the inherent risk factors (firms and markets) that predict returns over a period of time, considering the dynamics of the Indian market. The GRS test also confirms the superiority of the six-factor model for the Indian equity market. The study asserts that the Instrumental variable- Generalized method of moments (IVGMM) is a robust model over OLS in explaining portfolio returns (single and bivariate), which implies that OLS in the asset pricing model is exaggerated in the Indian context. Single portfolios are constructed based on the factors of size, value, ROE, INV and human capital, while bivariate portfolios are constructed based on the intersection of any these two factors. This study confirms the significant role of HC (wealth) in describing the stock returns of an economy. This study contributes to the ongoing discourse on asset pricing models and offers valuable implications for investment decisions, risk management, and portfolio construction in one of the most attractive global financial markets.This novel work is the first study in India to incorporate the Human capital (HC) factor as a six-factor asset-pricing model and presents a robust methodology. The aim of this work is to examine the ability of the six-factor model to capture excess returns using a GMM framework with time periods that were missing in previous studies. The study asserts that the Instrumental variable- Generalized method of moments (IVGMM) is a robust model over OLS in explaining portfolio returns (single and bivariate), which implies that OLS in the asset pricing model is exaggerated in the Indian context. Single portfolios are constructed based on the factors of size, value, ROE, INV and human capital, while bivariate portfolios are constructed based on the intersection of any these two factors. This study confirms the significant role of HC (wealth) in describing the stock returns of an economy. This study contributes to the ongoing discourse on asset pricing models and offers valuable implications for investment decisions, risk management, and portfolio construction in one of the most attractive global financial markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2411567 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2411567 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2411567 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2383086_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Opoku Adabor Author-X-Name-First: Opoku Author-X-Name-Last: Adabor Author-Name: Michael Essah Author-X-Name-First: Michael Author-X-Name-Last: Essah Title: Effect of financial development on agricultural output growth in Ghana Abstract: This study examines the effect of financial development on agricultural output growth, using autoregressive distributed lag model (ARDL) as the estimation strategy. The ARDL results suggest that the effect of financial development on agricultural output growth is positive and significant in both long run and short run. Specifically, our empirical analysis confirms that credit to the private sector is favourable for agricultural-output growth while net domestic credit and ratio of liquid liabilities to GDP are unfavourable for agricultural-output growth. However, three financial development indexes exert a positive impact on agricultural output, implying that an efficient financial market promotes agricultural growth. Hence, policies aimed at ensuring that the financial sector is well-developed can boost the growth of the agricultural sector. However, much effort, resources, and attention should be given to credit to the private sector.Agriculture plays a major role in Ghana’s economy from the perspective of food production, productivity, source of employment, and ultimately as means of ending extreme poverty. The agricultural sector employs more than 50% of Ghanaians and contributes nearly 25% of the nation’s GDP growth. According to World Bank (2018), the main export crop, cocoa, accounts for 20 to 25% of total foreign exchange earnings in Ghana. Therefore, the growth of the agricultural sector should be of keen interest to policymakers, government, and international bodies. However, implementing policies to promote agricultural growth requires sound empirical evidence. To contribute to literature as well as provide insight to policymakers, government, and international organizations, we examine the effect of financial development on agricultural output growth, utilizing different measures of financial development. Generally, the study finds that financial development promotes agricultural growth in the long run. This finding suggests that policies aimed at promoting and ensuring a strong linkage between the financial and the agricultural sectors can foster the growth of the agricultural sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2383086 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2383086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2383086 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2307098_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Daniel Makina Author-X-Name-First: Daniel Author-X-Name-Last: Makina Title: The long-run relationship between remittances and household consumption: evidence from Lesotho Abstract: The study examines the long-run relationship between remittances and household consumption in Lesotho for the period 1991-2019 using the Johansen cointegration technique and the Engle-Granger Residual Approach. Despite remittances in Lesotho representing over 20% of GDP which is highly significant relative to other African countries, a long-run relationship between remittances and household consumption has not been conclusively established in prior literature. The results of this study, however, confirms a significant positive long-run equilibrium relationship between household consumption, remittances and GNI per capita. According to the results, there exist a negative but insignificant relationship between household consumption and real interest rate. However, in the short-run, remittances negatively affect household consumption. This implies that increase in remittances in Lesotho reduce household consumption initially. A possible explanation is the existence of household consumption adjustment phase when remittances are first received. This means that in the short-run consumption is mostly financed from other income sources which may be informal, as the case with many developing countries. However, in the long run this pattern subsides. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2307098 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2307098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2307098 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2297604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thuy Tien Huynh Author-X-Name-First: Thuy Tien Author-X-Name-Last: Huynh Author-Name: Dang Thuy Truong Author-X-Name-First: Dang Thuy Author-X-Name-Last: Truong Title: Disparity in housing affordability: evidence from a developing city Abstract: This study addresses critical gaps in the existing literature by investigating housing affordability in developing countries and integrating quality considerations into standard affordability measures. Using survey data from a random sample of 670 households in Ho Chi Minh City, Vietnam, we conducted a distributional analysis to examine disparity in housing affordability and regression analysis to investigate factors influencing housing affordability. Our results reveal significant disparities in housing expenditure within HCMC households. On average, housing expenditure accounts for 12.78% of total household income, with renters bearing a disproportionate burden, as rent alone consumes a 27.19% of their income. The highest income quintile dedicates three times more to housing expenditure and consumption than the lowest quintile. The highest housing expenditure quintile covers 90% expenditure, while enjoying 50% of the housing consumption value. Regression results illustrate that housing expenditure and consumption are responsive to long-term income fluctuations, and more responsive to short-term income changes when comparing to results from the distributional analysis. Regressions also reveal no gender-based disparities in housing affordability. Our findings suggest a gender-neutral, affordable housing programs focusing on low-income renters, and the incorporation of flexible payment plans to address income fluctuations. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2297604 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2297604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2297604 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2355546_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Laurent Oloukoi Author-X-Name-First: Laurent Author-X-Name-Last: Oloukoi Title: Food market integration in the West African Economic and Monetary Union (WAEMU): a dynamic panel approach Abstract: Our study examines the integration of food markets in West African Economic and Monetary Union (WAEMU) and assesses the role of bilateral trade. In this study, we hypothesize that each country has a market. We adopted the framework borrowed from Ravallion using a dynamic panel model. The theoretical approach used is the law of one price. The main conclusion is that food markets are segmented in the short term and there is a possibility that they will be integrated in the long term. Furthermore, even if trade development tends to reduce the gap in food prices between countries, this reduction is not significant.In this study, we ask a fundamental question: is there a co-movement of food prices in the West African Economic and Monetary Union (UEMOA)? The appropriate theoretical framework to answer such a question is the law of one price. We therefore analyze the integration of food markets in West Africa by highlighting the role that bilateral trade can play. The importance of our study lies on three levels. First, we draw the attention of state and non-state actors to the need to put in place policies to facilitate better integration of food markets in the short term. This could include improving transport and communications infrastructure, and reducing non-tariff barriers. Second, by showing that long-term integration possibilities exist, we encourage the pursuit of cooperation and food market development strategies. Third, we reveal that the bilateral trade necessary to equalize food prices between countries is not yet achieved in the WAEMU. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2355546 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2355546 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2355546 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2394490_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dilesh Rawal Author-X-Name-First: Dilesh Author-X-Name-Last: Rawal Author-Name: Jitendra Mahakud Author-X-Name-First: Jitendra Author-X-Name-Last: Mahakud Author-Name: Rohan Kumar Mishra Author-X-Name-First: Rohan Kumar Author-X-Name-Last: Mishra Title: Do stronger creditors’ rights and an efficient bankruptcy process affect the speed of adjustment to target capital structure? Evidence from a quasi-natural experiment Abstract: This study investigates the impact of the Insolvency and Bankruptcy Code (IBC) on the capital structure speed of adjustment (SOA) of Indian firms. The IBC, introduced in 2016, significantly enhanced creditors’ rights and streamlined the bankruptcy process, providing a quasi-natural experiment to assess its influence on firms’ leverage dynamics. Utilising a panel data methodology and propensity score matching-based difference-in-differences (PSM-DID) regression; we categorise firms into over-leveraged (treatment) and under-leveraged (control) groups. Our findings reveal that the IBC significantly increased the SOA for over-leveraged firms, compelling them to reduce debt levels swiftly to avoid financial distress and bankruptcy. Conversely, under-leveraged firms exhibited a decreased SOA, reflecting a strategic shift towards financial stability over leveraging benefits. These results underscore the critical role of regulatory frameworks in shaping corporate financial strategies and align with the dynamic trade-off theory, highlighting firms’ active adjustment towards optimal capital structures. The study contributes to the literature on capital structure SOA by providing insights into how legal and institutional changes in an emerging market influence corporate financial behaviour, with significant implications for policymakers, regulators, and corporate executives.The objective of this study was to investigates the effect of the Insolvency and Bankruptcy Code (IBC) on the capital structure adjustment speed of Indian firms. The study reveals that the IBC has significantly accelerated the adjustment speed for over-leveraged firms, driving them to rapidly decrease debt levels to mitigate financial distress. In contrast, under-leveraged firms exhibited a slower adjustment speed, indicating a strategic focus on financial stability over increased leverage. These findings highlight the transformative effect of regulatory frameworks on corporate financial strategies, offering key insights for policymakers, regulators, and corporate executives. This research not only enhances the understanding of capital structure dynamics in emerging markets but also provides empirical evidence that can guide future regulatory policies and strategic financial decision-making in the corporate sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2394490 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2394490 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2394490 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426538_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kafilah Lola Gold Author-X-Name-First: Kafilah Lola Author-X-Name-Last: Gold Author-Name: Fiona Tregenna Author-X-Name-First: Fiona Author-X-Name-Last: Tregenna Title: Trade openness, hydroelectric power production, foreign direct investment and economic growth nexus in Nigeria Abstract: This study examines trade openness, hydroelectric power production, and foreign direct investment (FDI) nexus on economic growth in Nigeria. Despite efforts toward trade liberalisation, Nigeria’s growth remains constrained due to heavy reliance on oil and minerals exports. Furthermore, electricity production challenges exacerbate these issues, hindering intra-African trade, FDI inflows, and overall economic growth. The study explores how trade openness and insufficient electricity production affects economic growth in the long run. The annual data from 1988 to 2022, sourced from the National Bureau of Statistics, Nigeria, Our World in Data, and the World Bank Development Indicator (WDI) database was used. The econometric techniques employed are the autoregressive distributed lag (ARDL) to examine long-run and short-run dynamics, while the dynamic ordinary least squares (DOLS) is used as a robustness to address potential endogeneity and serial correlation concerns. The findings indicate that trade openness positively affects long run economic growth, as supported by DOLS estimates. However, hydroelectric power production and FDI had mixed effects on Nigeria's economic performance. The study recommends prioritising investments in electricity infrastructure to enhance trade competitiveness and attract FDI. Moreover, diversifying exports beyond oil and minerals is crucial for strengthen economic resilience and drive sustainable development in Nigeria.This study provides critical insights into sustainable economic development in Nigeria by examining key factors affecting its growth. Through an in-depth analysis of trade openness, hydroelectric power production, and foreign direct investment (FDI), the research highlights both the drivers and barriers within Nigeria’s economic trajectory. Findings show that trade liberalisation, enhanced electricity infrastructure, and targeted FDI are essential for supporting long-term economic expansion. These insights align with Nigeria’s goals of economic diversification and energy security. The implications of this study are substantial, offering policymakers guidance for strategies that promote both growth and inclusive development. By uncovering the interconnected effects of trade, energy, and investment policies, this work provides a framework for informed national and regional economic planning. The research has the potential to shape decisions on resource allocation, regulatory reforms, and investment priorities, positioning Nigeria towards sustainable industrialisation and resilient economic transformation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426538 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426538 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426538 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2293221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Manh Hung Pham Author-X-Name-First: Manh Hung Author-X-Name-Last: Pham Author-Name: Vu Mai Phuong Tran Author-X-Name-First: Vu Mai Phuong Author-X-Name-Last: Tran Author-Name: Thu Ha Le Author-X-Name-First: Thu Ha Author-X-Name-Last: Le Author-Name: Thu Trang Mai Author-X-Name-First: Thu Trang Author-X-Name-Last: Mai Author-Name: Khanh Nam Nguyen Author-X-Name-First: Khanh Nam Author-X-Name-Last: Nguyen Author-Name: Hoai Linh Dang Author-X-Name-First: Hoai Linh Author-X-Name-Last: Dang Title: Transition to the circular economy under the pressure of the COVID-19 pandemic and stakeholders: application in international firms toward sustainable development goals Abstract: This research aims to examine the influence of stakeholders and the COVID-19 pandemic on the transition towards a circular economy of firms, as well as the consequences of this transition on sustainable development. Using the SEM-PLS model to analyze survey data from 358 international firms, the research indicated that pressure from the COVID-19 outbreak, and the involvement of stakeholders affected the shift to a circular economy. The COVID-19 epidemic has caused huge issues for the whole planet, but it is also seen as a crucial motivator for expediting the move to a circular economy. The transition to the circular economy in companies has been demonstrated to be negatively impacted by obstacles and barriers resulting from stakeholder pressure, while the transition is positively impacted by opportunities and advantages supplied by stakeholders. In addition, the study reveals that the shift to a circular economy will aid multinational firms in achieving sustainable development. A range of recommendations are made in light of the study’s results for assisting businesses undertake a transition to a circular economy.The COVID-19 epidemic and rising stakeholder pressures have increased the need to transition to a paradigm of economic development that extends the product life cycle. This study expands the existing knowledge about the stakeholder and COVID-19-driven pressures on firms throughout the globe to adopt a circular economy model and to verify that such an economic model may indeed lead to sustainable development. Based on our research, we recommend that certain stakeholders undertake measures to mitigate the primary obstacle to the adoption of a circular economy inside the organization. This includes resolving challenges such as interdepartmental communication barriers and the ambiguity around departmental duties related to circular economy initiatives inside companies. Furthermore, the emerging technologies of Industry 4.0 have the potential to enable the implementation of circular economy practises. Therefore, it is essential for managers to be aware of the need to transition to digital supply chains to effectively implement circular economy principles. Another solution is that businesses from different industries should link together and build a system to turn waste from one industry into another industry’s raw materials, or in other words, recycle thoroughly and efficiently to minimize the amount of waste released into the environment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2293221 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2293221 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2293221 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mulugeta Bekele Author-X-Name-First: Mulugeta Author-X-Name-Last: Bekele Author-Name: Maria Sassi Author-X-Name-First: Maria Author-X-Name-Last: Sassi Author-Name: Kedir Jemal Author-X-Name-First: Kedir Author-X-Name-Last: Jemal Author-Name: Beyan Ahmed Author-X-Name-First: Beyan Author-X-Name-Last: Ahmed Title: The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis Abstract: Environmental sustainability is a pivotal facet of sustainable development, captivating the attention of development researchers. Within this context, energy consumption emerges as a pivotal determinant influencing environmental sustainability variations among countries. This study delves into the linkages between renewable energy consumption and environmental sustainability within 30 Sub-Saharan African countries, utilising panel data from 2000 to 2020. It contributes to the expanding literature on this subject by considering the impacts of institutional and political factors while addressing challenges related to cross-sectional dependence, heterogeneity, and serial correlation through robust estimation. To this end, the Augmented Mean Group Model was used in the empirical estimation. The study reveals a noteworthy 67.32% mean score for renewable energy consumption in the total final energy consumption across the sampled countries, a positive deviation from the global average of 11.2%. Empirical results signify a positive and statistically significant long-term relationship between renewable energy consumption and environmental sustainability. Nevertheless, the inclusion of a policy dummy variable indicates a significant increase in greenhouse gas emissions post the Millennium Development Goals period. Granger non-causality test results reveal a bidirectional causality between renewable energy consumption and environmental sustainability. Thus, subsidies and tax exemptions for renewable energy production and consumption, as well as supporting sustainable development goals with appropriate environmental investment, are among the policy options that Sub-Saharan African countries and policymakers could pursue to achieve environmental sustainability and sustainable development goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2285188 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285188 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2285188 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2398217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ashish Kumar Author-X-Name-First: Ashish Author-X-Name-Last: Kumar Author-Name: Suman Ahuja Author-X-Name-First: Suman Author-X-Name-Last: Ahuja Author-Name: Nupur Soti Author-X-Name-First: Nupur Author-X-Name-Last: Soti Author-Name: A.K Saini Author-X-Name-First: A.K Author-X-Name-Last: Saini Author-Name: Bharti Author-X-Name-First: Author-X-Name-Last: Bharti Title: Navigating the green finance frontier: a bibliometric and content analysis of green finance and environmental sustainability Abstract: The present study explores the intersection between green finance (GF) and environmental sustainability (ES) with the help of comprehensive bibliometric and content analysis techniques, unveiling new perspectives on this synergy and contributing novel insights to the field. By synthesizing a wide range of literature, this study provides an important understanding of the dynamics of GF and its implications for ES. The bibliometric analysis helps identify key trends, emerging themes, influential contributors, prominent journals, and institutions contributing to the field of GF. For analyzing the co-citations of authors, publications, journals, and generation of keywords VOSviewer software has been used. Based on an extensive exploration of past research, this study synthesizes the academic literature and offers a comprehensive overview of the emerging field of GF. The findings of our study reveal that GF fosters ES through green innovation, public spending, private participation, and digital finance. These results broaden the current state of GF and provide significant implications for policymakers, researchers, practitioners, and other stakeholders in navigating the complexities of GF and its role in promoting sustainable growth. Through its interdisciplinary approach and rigorous analysis, this manuscript enriches the growing body of knowledge on GF and its role in fostering a sustainable future. Furthermore, the study points out several limitations and knowledge gaps, suggesting avenues for future research to address these gaps.Using extensive analysis of published research with bibliometric and content analysis techniques, this manuscript provided an overview of the relatively new field of study by synthesizing the academic literature on green finance. The study incorporates the bibliometric analysis for studying the descriptive statistics of the study, visual analysis for highlighting conceptual and social structure of the field, and then finally the content analysis is performed to gain valuable insights in the area of green finance and environmental sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2398217 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2398217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2398217 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2318979_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Emmanuel Adu Boahen Author-X-Name-First: Emmanuel Author-X-Name-Last: Adu Boahen Author-Name: Justice Boateng Dankwah Author-X-Name-First: Justice Author-X-Name-Last: Boateng Dankwah Author-Name: Daniel Berko Author-X-Name-First: Daniel Author-X-Name-Last: Berko Title: Understanding the gender gap in productivity in agricultural production among smallholder cereal growers in rural Ghana Abstract: The objective of this paper is to investigate the differences in the agricultural productivity of male and female cereal growers in rural Ghana. This study uses data from the Ghana Socioeconomic Panel Survey (GSPS) conducted in 2017/2018. The paper employs the Oaxaca–Blinder decomposition method to decompose the unconditional gender productivity gap into endowment effects and structural effects. The findings show that the total cereal production of female plot managers is 46% lower than that of their male counterparts. The results from the study reveal that the gender productivity gap varies across productivity distributions. Access to agricultural lands and inputs was found to be the principal factor driving the gender productivity gap. The paper contribute to literature by using actual harvest per acre of land for the yield function instead of using sales revenue which has been adopted by most earlier. Unlike several earlier studies that rely on dataset from small localized communities that cannot provide much information on external validity of their findings, the study uses a national representative dataset for its analysis. The study is the first study in Ghana that tries to investigate the dynamics of the endowment effect and structural effect at different quintiles of the yield function of farm produce.Even though it is widely acknowledged that productivity gap exists between female and male farmers, the available evidence has often relied on samples from small localized communities. Unlike earlier studies this paper uses data from Ghana that covers a wide geographical area and therefore findings and policy recommendations are nationalistic in nature. Thus, any policy to improve access to agricultural land and inputs by women will greatly contribute to the reduction of the gender productivity gaps among cereal growers in rural Ghana and other similar rural communities in sub-Sahara Africa that share similar cultural, religious and socio-economic characteristics like that of rural Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2318979 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2318979 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2318979 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2368901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Vusi Mbewana Author-X-Name-First: Vusi Author-X-Name-Last: Mbewana Author-Name: Irrshad Kaseeram Author-X-Name-First: Irrshad Author-X-Name-Last: Kaseeram Title: The determinants of livelihood diversification among small-scale rural farmers in Alfred Nzo and King Cetshwayo District, South Africa Abstract: The determinants of livelihood diversification have been studied by several researchers globally. However, these factors are not well understood in the ANDM and KCDM, because they are given little attention. The specific objective of the study was to examine the determinants of livelihood diversification in ANDM and KCDM. The cross-sectional dataset was collected from 268 and 264 participants who were randomly selected in ANDM and KCDM, respectively. A structured questionnaire was utilized to collect data on socio-economic and demographic factors among small-scale rural farmers in ANDM and KCDM. The data collection commenced in March to April 2022 in KCDM and started in August to September 2022 in ANDM. Stata version 14.0 was employed to estimate a Quantile regression. The results show that 66.04% of participants in ANDM were female-headed households, whereas 53.79% in KCDM were headed by males. The findings from a Quantile regression show that livelihood diversification was influenced by the household head’s gender, age, marital status, access to extension services, access to credit, employment status, food security, education, household size, farm size, poverty status, farm experience, and improved seeds. To promote livelihood diversification, policymakers should create policies that will target all factors that are significant in the study.The determinants of livelihood diversification have been explored by researchers on a global scale. However, these factors are not well recognized in the ANDM and KCDM regions as they are given little attention. The primary focus of the study was to analyze the determinants of livelihood diversification in ANDM and KCDM. A Quantile regression show that livelihood diversification was influenced by the household head’s gender, age, marital status, access to extension services, access to credit, employment status, food security, education, household size, farm size, poverty status, farm experience, and improved seeds. To enhance livelihood diversification, policymakers should design policies that focus on all significant factors outlined in the study. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2368901 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2368901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2368901 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2358930_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Umar Farooq Author-X-Name-First: Umar Author-X-Name-Last: Farooq Author-Name: Ali Matar Author-X-Name-First: Ali Author-X-Name-Last: Matar Author-Name: Mujeeb Saif Mohsen Al-Absy Author-X-Name-First: Mujeeb Saif Mohsen Author-X-Name-Last: Al-Absy Title: Role of governance in attracting foreign direct investment inflow: empirical evidence from South Asia region Abstract: The inflow of FDI brings many economic benefits including more employment opportunities, sharing of modern knowledge, and the transfer of needed capital to aid the depressing domestic investment. In view of this, the current study aims to find out the empirical impact of the governance quality of the host country on FDI inflow. The empirical analysis was arranged by sampling the 20-year (2000-2019) financial statistics of 8 South Asian economies. For regression assessment, we employ FMOLS and DOLS models and estimate the coefficients in the long run. The empirical analysis discloses the positive significant role of the aggregate governance index on FDI inflow, implying that better governance can uplift the inflow of FDI. In addition, the empirical results disclose the negative impact of the inflation rate, while the significant positive impact of trade volume, population growth, labor force, and financial development on FDI inflow. The empirical analysis yields vital policies both for domestic policy officials and foreign investors. Primarily, it is recommended to focus on improving the governance situation to attract more FDI. This study enriches the literature by showing the interplay between governance and FDI inflow and has equal policy implications for other developing economies of the world.This study examines how governance quality influences foreign direct investment (FDI) in South Asia. The findings reveal that strong governance frameworks characterized by political stability, regulatory quality, and control of corruption, etc., significantly boost FDI inflows. By improving governance standards, South Asian countries can create a more attractive environment for foreign investors, promoting economic growth and regional development. This research underscores the critical role of governance in shaping investment inflow and provides actionable insights for policymakers aiming to enhance FDI attraction. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2358930 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2358930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2358930 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2334102_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Norhamiza Ishak Author-X-Name-First: Norhamiza Author-X-Name-Last: Ishak Author-Name: Nazliatul Aniza Abdul Aziz Author-X-Name-First: Nazliatul Aniza Author-X-Name-Last: Abdul Aziz Author-Name: Fithriah Ab Rahim Author-X-Name-First: Fithriah Author-X-Name-Last: Ab Rahim Title: Green policy effect on firm sustainability: examining the stock performance of ESG adopters in heavy-polluter industry in Malaysia Abstract: This study aims to investigate the effect of the green policy announcement on heavy-polluter stock returns in Malaysian industries. The study adopted a market-model event study methodology to measure 251 heavy-polluter companies from October 9, 2009 to October 29, 2021. Based on the findings, the first objective (to accept H1) showed that investors in Malaysia demonstrated mixed reactions (+ve and –ve) towards the green policy announcement whereas the second objective (to accept H2) revealed that there is an effect (+ve and –ve) for ESG adopters in three industries namely chemical and construction, metal and mining, and travel and leisure towards the green policy announcement. From a practical standpoint, there are several implications to consider. Firstly, investors, portfolio managers, and regulators can utilize stock returns as a means to maximize shareholders’ wealth. Secondly, the incorporation of ESG practices in the selection of companies can serve as a performance indicator for investment decisions. Thirdly, government entities can benefit from the ratification of green policies as an effective approach towards maximizing shareholders’ value. A theoretical perspective, an efficient market, investors cannot generate abnormal profits once the announcement is made. Failure to incorporate information related to environmental events into share prices would be inconsistent with the efficient market hypothesis. Finally, from a management or company standpoint, investing in green initiatives allows heavy-polluter companies to transition into more energy-efficient and environmentally-friendly entities, fulfilling their social, environmental, and ESG responsibilities. This study’s novelty focuses on the relationship between stock performance, green finance policies, and ESG adoption.Green finance policies encompass a range of regulatory measures, incentives, and initiatives aimed at mobilizing financial resources towards environmentally sustainable investments and projects. These policies are designed to address pressing environmental challenges, such as climate change, biodiversity loss, pollution, and resource depletion, by redirecting capital flows towards activities that promote sustainable development and mitigate environmental risks. ESG, on the other hand, encompasses a broader set of criteria used by investors to evaluate a company’s performance and sustainability practices across environmental, social, and governance dimensions. The study adopted a market-model event study methodology to measure 251 heavy-polluter companies from October 9, 2009 to October 29, 2021. On top of that, the study highlights the finding on the effect on green policy announcement. The finding shows that investors in Malaysia demonstrated mixed reactions (+ve and −ve) towards the green policy announcement and there is an effect (+ve and −ve) for ESG adopters in three industries namely chemical and construction, metal and mining, and travel and leisure towards the green policy announcement. This research has significant implication for investors, government, financial institutions, regulators and other stakeholder and academician in Malaysia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2334102 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2334102 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2334102 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2368897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Lea-Rachel D Kosnik Author-X-Name-First: Lea-Rachel D Author-X-Name-Last: Kosnik Title: Where We’re At, and What We’re Looking For Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2368897 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2368897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2368897 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2404707_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Pupung Purnamasari Author-X-Name-First: Pupung Author-X-Name-Last: Purnamasari Author-Name: Adriza Author-X-Name-First: Adriza Author-X-Name-Last: Title: Capital budgeting techniques and financial performance: a comparison between SMEs and large listed firms Abstract: Modern-day firms, both small and medium enterprises (SMEs) and large listed firms (LLFs) practice distinct investment appraisal approaches known as conventional and sophisticated capital budgeting techniques. Despite these prominent developments, the extant literature is yet to empirically examine the impact of these approaches on the financial performance (FP) of respective firms. This study aims to analyze and compare the impact of conventional and sophisticated capital budgeting techniques on the FP of SMEs and LLFs. Following the logic of real option and contingency theories, the payback method and average/accounting rate of return are conceptualized as conventional whereas, net present value, internal rate of return, and profitability index are used as sophisticated capital budgeting techniques. The associated data of 500 Indonesian firms between 2011 and 2020 was obtained and analyzed using the generalized method of moments (GMM) technique. After addressing multicollinearity and heterogeneity issues, the preliminary findings indicate that conventional capital budgeting techniques are not a significant predictor of the FP of SMEs. Conversely, it is observed that sophisticated capital budgeting techniques have a strong and positive effect on the FP of LLFs. The robustness checks confirmed that sophisticated capital budgeting techniques are the significant predictors of the FP of both SMEs and LLFs. The findings of this study are novel and contribute to validating the use of sophisticated capital budgeting techniques for SMEs and LLFs of emerging economies to realize optimal financial outcomes of their investments.Capital budgeting decisions are key to maximizing stakeholders' wealth. Its success hinges on selecting the most viable capital budgeting technique (CBT) from the pool of available techniques. The key criteria used by firms of different sizes such as SMEs and large listed firms is the financial outcomes of adopted CBT. The firms in developing economies particularly located in Southeast Asia remain in dilemma on deciding a financially feasible CBT. This research aims to resolve this issue by examining the impact of different capital budgeting techniques on the financial performance of firms of different sizes. The empirical findings of this study expect to validate the relevance of a financially feasible CBT which can be used as a benchmark by firms of different sizes operating in developing countries for perusing capital budgeting and investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2404707 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2404707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2404707 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bayu Kharisma Author-X-Name-First: Bayu Author-X-Name-Last: Kharisma Author-Name: Alfiah Hasanah Author-X-Name-First: Alfiah Author-X-Name-Last: Hasanah Author-Name: Sutyastie Soemitro Remi Author-X-Name-First: Sutyastie Author-X-Name-Last: Soemitro Remi Author-Name: I. Gusti Gede Gusna Yoga Sanjaya Author-X-Name-First: I. Gusti Gede Gusna Yoga Author-X-Name-Last: Sanjaya Title: An assessment of household food consumption patterns during the COVID-19 pandemic in Bali Province Abstract: This study analyzes changes in household food consumption patterns and socio-economic demographic characteristics during the COVID-19 pandemic in Bali Province. This study uses secondary data collected by Statistics Indonesia, namely the National Socio-economic Survey (Susenas) data with the Quadratic Almost Ideal Demand System (QUAIDS) demand model. The results showed changes in household food consumption patterns during the pandemic. The average food expenditure per capita of the population decreased, while the average non-food expenditure per capita increased slightly. The average per capita food expenditure of residents in urban areas experienced a more significant decline compared to rural areas. The highest average per capita food expenditure increase occurred in the consumption of tubers, vegetables, and beans. In contrast, the highest decline occurred in the average per capita food expenditure on fruit, processed food, and meat commodities. Socio-demographic characteristics that significantly influence the share of household food expenditure are education of the household head, occupation of the household head, and household perception of food access. The price of own goods has a positive influence on the share of food consumption expenditure but will have a negative impact on the quantity of food consumption. The government can implement policies to achieve food self-sufficiency, particularly for grains and meat, by overseeing the availability of staple foods and the distribution of fruits and meats. Policies that assist low-income household groups in rural areas should also be prioritized.This article discusses the impact of changes in household food consumption patterns and socioeconomic demographic characteristics during the COVID-19 pandemic in Bali Province. Since the beginning of the COVID-19 pandemic, Bali Province has been considered one of the most affected areas by the COVID-19 pandemic in Indonesia as its economy relies heavily on tourism. The results showed a shift in household food consumption patterns during the pandemic in Bali Province. Average per capita food expenditure decreased, while average per capita non-food spending increased slightly. Furthermore, per capita food expenditure in urban areas decreased compared to rural areas. Meanwhile, the most significant increase in per capita food expenditure occurred in the consumption of tubers, vegetables, and nuts. In contrast, the most significant decrease occurred in fruits, processed foods, and meat commodities. Socio-demographic factors that influence the share of household food expenditure are the education level of the household head, the occupation of the household head, and the household's perception of food access. The price of goods positively affects the share of food consumption expenditure but has a negative effect on the quantity consumed. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409419 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409419 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409419 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2396034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhammad Farooq Shabbir Author-X-Name-First: Muhammad Farooq Author-X-Name-Last: Shabbir Author-Name: Hassan Danial Aslam Author-X-Name-First: Hassan Author-X-Name-Last: Danial Aslam Author-Name: Elaine Yen Nee Oon Author-X-Name-First: Elaine Yen Nee Author-X-Name-Last: Oon Author-Name: Aamir Amin Author-X-Name-First: Aamir Author-X-Name-Last: Amin Title: Optimizing corporate governance: unraveling the interplay of board structure and firm efficiency Abstract: This study investigates the relationship between board characteristics and firm efficiency in emerging Asian economies, using stochastic frontier analysis and a panel dataset of 5829 firm-year observations. The results suggest that companies with strong monitoring boards concerning diversity, size, and independence achieve higher efficiency. This study provides more specific results on the importance of board characteristics for firm-level governance and highlights the Asian emerging markets’ focus on good governance practices. The study’s use of firm efficiency as a proxy for performance is a unique framework that mitigates endogeneity issues common in corporate governance variables. This approach is an improvement over previous research that has relied on financial ratios, which need to consider the value of management’s actions and investment decisions affecting future performance. The results contribute to the literature on corporate governance and provide valuable insights for investors in emerging markets.This study uses a stochastic frontier analysis to investigate the link between board features and corporate efficiency in emerging Asian economies. The study indicates that companies with independent, diverse, and well-structured boards perform better, underscoring the importance of good governance in improving firm efficiency. The results emphasize how crucial it is to have strong governance mechanisms that are adapted to the distinct socioeconomic and cultural environments of developing countries. This research provides guidelines for policymakers, investors, and business leaders to optimize governance structures in order to boost organizational effectiveness and attract foreign investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2396034 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2396034 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2396034 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2363461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nassir Ul Haq Wani Author-X-Name-First: Nassir Ul Haq Author-X-Name-Last: Wani Author-Name: Afzalur Rahman Author-X-Name-First: Afzalur Author-X-Name-Last: Rahman Author-Name: Veena Grover Author-X-Name-First: Veena Author-X-Name-Last: Grover Author-Name: Shoira Mirzakhidova Author-X-Name-First: Shoira Author-X-Name-Last: Mirzakhidova Author-Name: Mohammad Mirwais Rasa Author-X-Name-First: Mohammad Author-X-Name-Last: Mirwais Rasa Title: Regional trade expansion opportunities in Central and South Asia: exploring trade complementarity, diversification and similarity Abstract: The study investigates the implementation of trade routes and their impact on the regional economic integration of Central and South Asia. It uses three indices, the Trade Complementarity Index (TCI), Similarity Index (SI), and Trade Diversification Index (TDI), to evaluate the level of regional economic integration from 2015 to 2021. The results suggest that the potential trade value in the two regions is twice as significant as the actual level. The study also highlights the importance of various governmental measures to promote and enhance trade and investment within and between the two regions. The study finds a positive correlation between an economy’s size and level of development, suggesting that developed economies tend to have higher ratings. Several trade routes have shown advantages in promoting regional trade growth, such as augmenting price competitiveness, facilitating intra-industry trade and examining trade complementarities. The implications of these findings are significant for the effectiveness of trade-related policies, programs and institutional procedures in promoting enhanced trade within and between the two regions.The study contributes to the empirical literature in such a way as to provide (a) practical knowledge and methods for businesses to take advantage of Central and South Asia regional opportunities; (b) analytical tools for policymakers and researchers; and (c) policy and program recommendations for governments and development partners. It should be of interest to businesses, governments, international development partners, policymakers and researchers, and others concerned with Central and South Asia’s trade and the potential for developing value chains or so-called ‘trade in tasks’ across the two regions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2363461 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2363461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2363461 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2325833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Emmanuel Issifu Fuseini Author-X-Name-First: Emmanuel Issifu Author-X-Name-Last: Fuseini Author-Name: Muazu Ibrahim Author-X-Name-First: Muazu Author-X-Name-Last: Ibrahim Author-Name: Ibrahim Osman Adam Author-X-Name-First: Ibrahim Osman Author-X-Name-Last: Adam Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Author-X-Name-Last: Vinh Vo Title: Re-examining the moderating role of ICT in the nexus between financial development and banking efficiency: evidence from Africa Abstract: Studies on the tripartite nexuses among information and communication technology (ICT), financial development (FD), and banking sector efficiency have largely produced mixed findings. More importantly, how countries’ levels of ICT advancement moderate FD-banks efficiency interlinkages need to be re-assessed. By utilizing data from 48 African countries covering 2004 to 2021 in assessing the tripartite interlinkages, the empirical findings based on the system Generalized Method of Moments (GMM) show that ICT goods imports significantly impact the banking sector positively in enhancing financial access to allocate finance efficiently: Individuals using the internet enhances the banking sector’s efficiency. Fixed telephone subscriptions, Mobile cellular subscriptions, and secured internet servers impact banking sector efficiency insignificantly. Financial formalization and informalization significantly impact banking sector efficiency positively, except in the case of ICT goods imports being added to the equation. On the moderating role of the ICT proxies, our finding showed that how ICT moderates the impact of FD on banking sector efficiency is conditioned on both the proxy of ICT and FD. Further findings show an inverted U-shaped relationship between individuals using the internet, ICT goods imports, and the banking sector efficiency nexus. The study discusses the implications for policy and makes key recommendations to improve ICT infrastructure and FD.The role of financial development in banking sector efficiency cannot be overemphasized. At the same time, how information and communication technology (ICT) mediate the link between financial development and banking sector efficiency is gaining traction. This study therefore examines these tripartite relationships. Based on the findings, it is uncovered that the integration of ICT into the banking industry can provide efficiency gains that are not directly related to financial sector formalization or informalization. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2325833 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2325833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2325833 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2295721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Salim Bagadeem Author-X-Name-First: Salim Author-X-Name-Last: Bagadeem Author-Name: Raheel Gohar Author-X-Name-First: Raheel Author-X-Name-Last: Gohar Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Author-Name: Asma Salman Author-X-Name-First: Asma Author-X-Name-Last: Salman Author-Name: Bisharat Hussain Chang Author-X-Name-First: Bisharat Hussain Author-X-Name-Last: Chang Title: Nexus between foreign direct investment, trade openness, and carbon emissions: fresh insights using innovative methodologies Abstract: Previous research has explored the relationship between carbon emissions, trade openness, and foreign direct investment (FDI), but these studies have not specifically examined carbon emissions using sector-level data. This paper expands upon the existing body of literature by employing a threshold regression approach, utilizing the intensity of carbon emissions as a primary variable to scrutinize the effects of FDI and trade openness on carbon emissions at a sectoral level. Our findings indicate that the impact is contingent upon the chosen thresholds, thereby underscoring the influence of foreign trade openness and FDI on carbon emissions within the industrial sector. The effect of FDI on sector-specific industrial carbon emissions is not constant, with the influence coefficient varying over time. In contrast, trade openness positively and negatively impacts carbon emissions. Specifically, increased foreign trade openness leads to a decrease in carbon emissions in less carbon-intensive sectors. Factors such as the intensity of economic activity, employment levels, independent technical innovation, and per capita GDP significantly influence carbon emissions within industrial sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2295721 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2295721 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2295721 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330428_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sabihaini Author-X-Name-First: Author-X-Name-Last: Sabihaini Author-Name: Arief Kurniawan Author-X-Name-First: Arief Author-X-Name-Last: Kurniawan Author-Name: Januar Eko Prasetio Author-X-Name-First: Januar Author-X-Name-Last: Eko Prasetio Author-Name: Rusdiyanto Author-X-Name-First: Author-X-Name-Last: Rusdiyanto Title: Environmental analysis and impact on green business strategy and performance in SMEs post the Covid-19 pandemic Abstract: PurposeThis study aims to obtain empirical evidence on the effect of environmental analysis on environmentally friendly business strategies and performance in SMEs after the Covid-19 Pandemic.MethodologyThe study included primary data sources such as environmental orientation, top management awareness, environmental performance, green business strategy, and SMEs performance. It involved 103 SMEs, of which 36 were in the food processing industry, 37 were in the leather processing industry, and 30 were involved in furniture manufacturing.FindingsIn this study, 103 SMEs were examined with a focus on performance, environmental performance, top management environmental awareness, green business strategy, and environmental orientation. These findings can support resource-based display theory and assist corporate management in making judgments regarding business plans. A positive mediation association between ecological performance and environmental orientation toward green company strategy through top management’s environmental awareness was also discovered in this study.Implications of researchA mediating relationship between environmental direction, green business strategy, and top management’s ecological awareness and performance orientation is revealed, which supports managers in their decision-making.Originality/valueThis study focuses on green business strategies, environmental performance, environmental performance awareness, and environmental orientation to improve the operations of Indonesian SMEs and address environmental challenges.The environment is an important part and factor that must be considered in the management of business activities. The business environment influences future business development from the external and internal environment. The external environment is a factor outside the company that can influence the organizational structure, direction, internal processes and company actions in its business activities. The relationship between the environment and business is so close that companies must be observant in predicting changes or recognizing environmental problems. Environmental management is an aspect that must be considered and improved in carrying out management functions to achieve company goals that are oriented toward environmental sustainability. It becomes a demand or obligation for a business to pay attention to sustainability and an orientation toward the environment. These efforts are used to anticipate or fulfil various demands from stakeholders regarding environmental protection or preservation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330428 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330428 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330428 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2416987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Thi Ngoc Nga Author-X-Name-First: Nguyen Thi Ngoc Author-X-Name-Last: Nga Author-Name: Nguyen Ngoc Thach Author-X-Name-First: Nguyen Ngoc Author-X-Name-Last: Thach Title: Reexamining the economic globalization-welfare state nexus: a Bayesian mixed approach to linear and non-linear dynamics Abstract: Previous research on the globalization-welfare state nexus has typically been conducted within a linear monotonic framework, focusing on two primary hypotheses. The efficiency hypothesis predicts that globalization shrinks the welfare state's size. In contrast, the compensation hypothesis argues that globalization increases demand for social security, leading to an expanded welfare state. Empirical evidence on this relationship is mixed, with multicollinearity suggested as one possible explanation. This study explores the non-linear, non-monotonic aspects of this nexus using a yearly panel of 10 ASEAN countries from 1970–2019, analyzed through a Bayesian mixed regression. The study focuses specifically on the effects of economic globalization. The results demonstrate a non-linear, non-monotonic relationship characterized by an inverted U-shape, where economic globalization initially expands the welfare state but, after reaching a certain point, leads to its retrenchment. This outcome supports a combination of both the compensation and efficiency hypotheses, aligning with the principles of non-linear and complex system sciences. The study offers a solid and reliable foundation for predicting long-term globalization processes and formulating comprehensive integration policies in ASEAN in the context of declining public expenditures.The study aims to explore the monotonic and non-monotonic relationships between economic globalization and the welfare state in ASEAN. Unlike similar research, this study employs a Bayesian hierarchical approach to handle multicollinearity, revealing a non-linear and non-monotonic effect of economic globalization on the welfare state, consistent with the Armey curve. The findings provide a robust foundation for formulating long-term globalization policies for ASEAN countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2416987 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2416987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2416987 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2437011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ngoc Toan Bui Author-X-Name-First: Ngoc Toan Author-X-Name-Last: Bui Author-Name: Thu-Trang Thi Doan Author-X-Name-First: Thu-Trang Thi Author-X-Name-Last: Doan Title: Foreign direct investment and green GDP: the thresholds of financial development for economic policies Abstract: This study aims to examine the impact of foreign direct investment (FDI) on green GDP while analyzing the role of financial development thresholds in moderating the relationship in the ASEAN-6 countries. These are six leading countries in the ASEAN region. The study employs the Generalized Method of Moments (GMM) regression to estimate the models, in combination with Bayesian regression to check the results’ robustness. The findings indicate that FDI plays an important role in fostering green GDP in the countries. Furthermore, the financial development thresholds can moderate this impact. Specifically, the estimation results used threshold effects reveal that the threshold value for the financial market index is 0.38, and for the financial institution index, it is 0.68, which both represent financial development. The GMM and Bayesian regression results consistently show that the positive impact of FDI on green GDP becomes evident only when financial development surpasses these threshold values. Notably, financial institutions have shown themselves to be more effective than financial markets in amplifying this impact. These findings provide a reliable foundation for the ASEAN-6 countries to develop appropriate economic policies to promote green GDP.FDI is a critical source of capital for many countries globally, particularly for those lacking sufficient funds to foster economic growth while safeguarding the environment. However, most FDI-receiving countries are still struggling to enhance their ability to attract and absorb this capital. To address this issue, this study aims to analyze the impact of FDI on green GDP in the ASEAN-6 countries and also to clarify the moderating role of financial development thresholds in this impact. The first key finding reveals that FDI has a positive impact on green GDP in the ASEAN-6 countries, affirming the importance of FDI in promoting green GDP there. Second, the results reveal the existence of threshold values for both the financial market development and financial institution development indices. The positive effect of FDI on green GDP only becomes evident when financial development exceeds these values. Notably, financial institutions show a more effective role than financial markets in amplifying the impact of FDI on green GDP. These findings suggest that the ASEAN-6 countries should make more efforts to attract FDI while simultaneously improving their domestic financial systems to enhance their capacity to absorb this capital. The findings also provide valuable empirical evidence for researchers in this field. Additionally, the study offers meaningful insights for policymakers in the ASEAN-6 countries to identify suitable economic policies aimed at improving FDI absorption capacity, thereby boosting green GDP growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2437011 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2437011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2437011 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2386388_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Randy Beavers Author-X-Name-First: Randy Author-X-Name-Last: Beavers Author-Name: John Godek Author-X-Name-First: John Author-X-Name-Last: Godek Title: Crypto household behavior and experience during COVID-19 Abstract: Many households struggled both physically and financially during the COVID-19 crisis. In a time of such uncertainty, one might expect households to respond differently to financial instruments considered risker than others. Given the nature and general feelings around cryptocurrency, we expected there might be differences in how households that owned cryptocurrencies fared during the COVID-19 crisis as compared to those that did not own cryptocurrency. Our research found that cryptocurrency-owning households reported fewer financial challenges during the pandemic than households that did not own cryptocurrency. Specifically, they were less likely to experience food insecurity or miss payments on a variety of bills, including medical expenses and utilities. Crypto households experienced less unemployment, as both the head of the household and the partner more readily adapted to working from home. Crypto households were also less likely to experience death from COVID-19 than their counterparts were. Data from the Federal Reserve’s 2022 Survey of Consumer Finances (SCF) reveal that cryptocurrency-owning households in fact fared better than those who did not. The linear probability model results hold after correction for data imputation and controlling for financial literacy, willingness to take risks in the short- and long-term, income, wealth, gender, age, education level, work status, and race. These findings suggest a counternarrative to the mainstream opinion of cryptocurrency owners as risk-loving, irrational, retail day traders. This research contributes to the overall literature by showing households working with cryptocurrency make financially savvy decisions and are better off generally than their counterparts.As cryptocurrency continues to gain traction and assuming it grows at current rates, society will be greatly affected. First, more households may consider expanding their portfolios with cryptocurrency. Assuming this occurs, more individuals and companies will need to become more familiar with this risky asset and other mechanisms through which one can invest in crypto assets, such as exchange-traded funds. Second, cryptocurrency usage is not only increasing among households but businesses too, including public companies. Investors may want to review their other investments, particularly stocks, to see how they may be indirectly invested in cryptocurrency. This consideration may affect other investment motivation considerations in the impact investing space. Last, we demonstrated households had different experiences with the COVID-19 shock event. Individuals may consider cryptocurrency as another asset to diversify in moving forward depending on other potential shock events besides pandemics, such as global or regional recessions or country currency changes in international markets due to political risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2386388 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2386388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2386388 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2348540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Wen-Rang Liu Author-X-Name-First: Wen-Rang Author-X-Name-Last: Liu Title: The role of centralization index in identifying momentum stage of stocks: empirical evidence from investor networks Abstract: This study uses a unique dataset of transactions at the account level to construct investor networks. These networks are then analyzed to examine the role of the network centralization index in identifying the stock momentum stages. The empirical results demonstrate that the early stage strategy of purchasing winner stocks with a low centralization index and selling loser stocks with a high centralization index outperform the simple momentum strategy. Conversely, the late-stage strategy of buying winner stocks with a high centralization index and selling loser stocks with a low centralization index underperforms the simple momentum strategy. Unlike prior research, the momentum effect in the Taiwanese stock market is particularly evident with an early stage strategy. Additionally, the regression analysis shows that the interaction between past cumulative returns and the centralization index significantly influences future returns, even after controlling for liquidity and investor attention variables. The impact of arbitrage frictions on momentum profits across different holding periods was also examined, with early stage strategies proving profitable for stocks facing severe arbitrage constraints. Moreover, this study investigates the influence of investor sentiment and market state on momentum, finding that early stage strategies perform better following periods of high sentiment and up-market states. Utilizing information networks can facilitate the identification of stock momentum stages.This research advances the understanding of momentum strategies in the Taiwanese stock market by examining investor behavior through information networks. Prior studies have struggled to observe the effects of momentum in Asian markets. However, this study innovatively uses the centralization index within investor networks to identify early-stage and late-stage momentum stocks. The findings show that early-stage momentum portfolios achieve significant price continuation. In contrast, late-stage portfolios do not exhibit significant momentum. The empirical results also highlight the importance of information diffusion patterns, arbitrage constraints, and investor sentiment in driving momentum profits. By leveraging information networks, the study contributes to the literature by providing a new lens to explain momentum profits, addressing the gap in previous research on the link between information flow and momentum. The findings have significant implications for investors and researchers, as they underscore the potential of information networks as a valuable tool for understanding market dynamics and enhancing investment strategies. The research also highlights the role of word-of-mouth communication in influencing stock performance, enriching the broader discourse on information evaluation in stock markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2348540 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2348540 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2348540 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2350699_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mbongeni Zwelakhe Ngubane Author-X-Name-First: Mbongeni Zwelakhe Author-X-Name-Last: Ngubane Author-Name: Siyabonga Mndebele Author-X-Name-First: Siyabonga Author-X-Name-Last: Mndebele Author-Name: Kehinde D. Ilesanmi Author-X-Name-First: Kehinde D. Author-X-Name-Last: Ilesanmi Title: Is the current economic performance compatible with the projected NDP unemployment target? Abstract: This study investigated the relationship between unemployment rates and economic growth, known as Okun’s Law. The non-linear autoregressive distributed lags (NARDL) model was employed using quarterly time series data sampled from 2000Q1 to 2021Q4. In this model, unemployment was used as the dependent variable, whereas output, exchange rate, and consumer prices index (CPI), were used as explanatory variables, and were decomposed into positive and negative partial sums to capture asymmetry in their effects on unemployment. The findings of this study provided evidence of asymmetry in the effect of all the explanatory variables in the long-run, and a negative relationship is found between output and unemployment. However, unemployment was found more elastic to negative shocks in output than positive shocks. This implies that in the South African labour market, employers are quicker to retrench when the economy is in recession and slower to absorb when the economy is in expansion. Therefore the 6% unemployment target by 2030 appears hypothetical for South Africa, considering its current position. In this regard, this study recommends South African policymakers adjust their labour laws to be more flexible, so that employers do not substitute more labour with capital in the production process.This year 2024 marks twelve years since the National Development Plan (NDP) goals were formulated in South Africa. It is with deep sadness that the society is still characterised by deep poverty, elevated levels of crime and poor living standards. The stimulus packages employed by the South African government and policy uncertainty seem to be not working towards the direction of achieving the projected national development targets. It was necessary to conduct such an investigation to determine if the current economic experience could potentially steer South Africa towards the trajectory of achieving the NDP goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2350699 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2350699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2350699 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2319173_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bisrat Getinet Chane Author-X-Name-First: Bisrat Author-X-Name-Last: Getinet Chane Author-Name: Desta Yohannes Dalalo Author-X-Name-First: Desta Author-X-Name-Last: Yohannes Dalalo Author-Name: Berhanu Dereja Gebremichael Author-X-Name-First: Berhanu Author-X-Name-Last: Dereja Gebremichael Title: Technical and allocative efficiency of commercial banks in Ethiopia Abstract: This paper investigated the technical and allocative efficiency of commercial banks in Ethiopia. The analysis was based on unbalanced panel data of 19 banks over the period of 1990-2022. The study has applied shadow pricing approach to estimate and decompose the overall cost inefficiency into technical and allocative components. Findings reveal that publicly owned commercial bank is technically more efficient than privately owned commercial banks. Evidence also found that, on average, small and recently established privately owned banks are technically more efficient than other large private owned banks in Ethiopia. All banks are found allocative inefficiency due to over-utilization of loanable funds and physical capital relative to labor input. The overall result also shows that greater cost saving in public owned commercial bank in Ethiopia could be achieved by optimizing input use, while such cost advantage in private owned banks could be attained by improving managerial efficiency.In developing countries like Ethiopia where secondary financial markets are tiny or non-existent, promoting safe and robust commercial banking system is an important prerequisite for economic growth and development. The safety and soundness of the banking system are inextricably linked to economic efficiency of individual commercial banks. This study estimate and decompose cost efficiency of Ethiopian commercial banks into technical and allocative efficiencies (inefficiencies). The results of the study provide a valuable information to the shareholders, government and regulators in designing policies that improve the profitability and competitiveness of commercial banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2319173 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2319173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2319173 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2422958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thanh Cong Nguyen Author-X-Name-First: Thanh Cong Author-X-Name-Last: Nguyen Author-Name: Thai Vu Hong Nguyen Author-X-Name-First: Thai Vu Author-X-Name-Last: Hong Nguyen Author-Name: Christophe Schinckus Author-X-Name-First: Christophe Author-X-Name-Last: Schinckus Author-Name: Thanh Tuan Chu Author-X-Name-First: Thanh Tuan Author-X-Name-Last: Chu Title: Navigating bank risk-taking under excess liquidity: the moderating role of economic policy uncertainty and lessons from the Global Financial Crisis Abstract: The study investigates the moderation effect of economic policy uncertainty (EPU) towards the relationship between excess liquidity and bank risk-taking as well as explores its stronger impact in countries severely affected by the 2008 Global Financial Crisis (GFC). Using System Generalized Methods of Moments (SGMM) on an unbalanced dataset for 33 countries from 2000 to 2019, the study finds that an increase in the EPU index attenuates the positive impact of excess liquidity on bank risk-taking. The study also finds that the attenuating effect of EPU on the relationship between excess liquidity and bank risk-taking is stronger in countries that were most severely affected by the GFC. It argues that the mechanisms by which excess liquidity induces risk-taking are disrupted under high EPU. Our study also extends behavioral theories to shed light on how the GFC altered bank risk-taking in the presence of excess liquidity and high EPU.This study examines the influence of economic policy uncertainty (EPU) on the relationship between excess liquidity and bank risk-taking, particularly in countries that were severely impacted by the 2008 Global Financial Crisis (GFC). Utilizing the System Generalized Method of Moments on data from 33 countries, the research indicates that elevated levels of EPU dampen the risk-taking incentives typically associated with excess liquidity. Remarkably, this moderating effect of EPU is more pronounced in nations significantly affected by the GFC, suggesting that historical crises shape current banking behaviourin the face of economic uncertainty. The study enhances the Excess Liquidity Theory by incorporating behaviouralinsights from Prospect Theory, illustrating that economic uncertainty can function as a stabilizing force against liquidity-driven risk. These findings highlight the urgent need for policymakers to customize financial stability measures, particularly in managing liquidity levels and timing policy actions during times of heightened uncertainty. Ultimately, this research offers valuable insights into how regulatory strategies can utilize economic policy uncertainty to promote prudent banking practices, fostering stability in an increasingly volatile global financial environment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2422958 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2422958 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2422958 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2290368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Oluwaseyi Ebenezer Olalere Author-X-Name-First: Oluwaseyi Ebenezer Author-X-Name-Last: Olalere Author-Name: Janine Mukuddem-Petersen Author-X-Name-First: Janine Author-X-Name-Last: Mukuddem-Petersen Title: Geopolitical risk, economic policy uncertainty, and bank stability in BRICS countries Abstract: Global tensions and uncertainty in economic policy can cause structural change and disruption in the volatile sector of the economy. This study investigates the effects of geopolitical risk on bank stability and the role of economic policy uncertainty in this relationship in BRICS countries. We use the panel VAR and the two-step System GMM estimation technique. The study uses bank-level data from 105 commercial banks during 2009–2021, totaling 1,365 observations. The empirical results revealed that increased geopolitical risk and economic policy uncertainty reduce bank stability once other traditional drivers are controlled for. We found that geopolitical events tend to adversely influence the stability of banks. The results also reveal that the interaction between economic policy uncertainty and geopolitical risk has a negative significant impact on bank stability. More importantly, our findings are robust and offer critical policy interventions and implications for managers, policymakers, and investors in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2290368 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2290368 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409427_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Edmore Munjeyi Author-X-Name-First: Edmore Author-X-Name-Last: Munjeyi Author-Name: Houdine Fourie Author-X-Name-First: Houdine Author-X-Name-Last: Fourie Title: A framework for digitalising tax revenue collection for the informal economic sphere in Zimbabwe Abstract: The paper proposes a novel framework for digitalising tax revenue for the Zimbabwe’s informal economic sphere. The study addresses the pressing chalelnge of informal economy taxation, indetifying the absence of a modern (or contemporary) tax framework as a critical catalyst for this study. The purpose of the study was to to devise an innvovative framework tailored to improve tax revenue collection efficiency from the informal economic sector in Zimbabwe. Employing a mixed method approach deemed effective complex subject, data were gathered through structured questionnaire and in-depths interviews. The findings of this study reveals that the existing presumptive tax system is ineffective and insignificantly contributing to the treasury. Based on the results, the study developed a comprehensive contempoary framework designed specifically for tax revenue collection from the informal economic sphere in Zimbabwe. The study, therefore, advocates for the adoption of the proposed framework to streamline tax collection processes within the informal economy, thereby bolstering economic growth and inclusivity.The study aims to tackle the challenges of tax revenue generation in the informal sector by developing a digital framework to enhance efficiency, transparency, and compliance. By facilitating easier registration and compliance for informal businesses, the study seeks to boost national revenue, promote economic growth, improve governance, and empower local tax authorities, ultimately transforming Zimbabwe's tax landscape. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 9 X-DOI: 10.1080/23322039.2024.2409427 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409427 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sandip Mitra Author-X-Name-First: Sandip Author-X-Name-Last: Mitra Author-Name: Md. Rashid Asef Dipto Author-X-Name-First: Md. Rashid Asef Author-X-Name-Last: Dipto Author-Name: Yasin Ibrahim Ankon Author-X-Name-First: Yasin Ibrahim Author-X-Name-Last: Ankon Title: Does credit constraint matter for technical efficiency, technological shifts, and profitability of flower growers? An empirical study Abstract: This study aims to investigate the variations in efficiency, technology gap, and profitability of flower producers depending on their credit constraint position. A total of 160 flower farmers have been selected from Bangladesh by using a multistage sampling technique. Meta-frontier Data Envelopment Analysis (DEA) is employed to estimate the efficiency differences and technological gaps depending on the credit constraint situation. At the same time, the Tobit regression model is used to estimate the factors influencing the meta-technical efficiency of flower farmers. Profitability differences depending on the credit constraint situation are identified using the gross margin and benefit cost ratio. The mean meta-technical efficiency for Marigold farmers is highest when unconstrained (0.73) and lowest when credit is constrained (0.64) relative to the meta-frontier, which indicates output could be increased by 27 and 36%, respectively, without increasing input. On the other side, the efficiency of credit-unconstrained rose farmers is slightly higher than that of constrained rose farmers. In addition, credit-constrained marigold farmers achieve the lowest technological gap ratio (0.64) compared to credit-unconstrained farmers. Sociodemographic and farm characteristics such as education, source of seed, land tenure, farm area, and age have a significant positive impact, while earning family members, types of flowers, and credit constraints have a significant negative effect on the technical efficiency of flower farmers. The profitability of credit-unconstrained marigold and rose farmers is higher than that of credit-constrained farmers. Facilitating the loan application process, easing the pre-conditions of loan acceptance, and adjusting the repayment schedule help to remove the credit-constrained situation.Bangladesh’s floriculture industry has significant potential, but small-scale farmers face challenges due to limited access to credit. High interest rates and strict collateral requirements hinder their ability to improve technical efficiency, technological gap, and profitability. This study addresses the often-overlooked impact of credit constraints on flower farmers’ efficiency, technological gap, and profitability. Farmers with access to credit are more efficient, as timely investment in inputs increases productivity and profitability. In contrast, limited credit access hampers input application, reducing both productivity and technical efficiency, trapping farmers in low-profit cycles, and increasing the technological gap. Researchers interested in the financial constraints in agriculture and their effect on productivity, efficiency, and profitability can gain valuable insights from this study. It also emphasizes the need for policymakers to enhance access to affordable credit by lowering interest rates and easing collateral requirements, which will help boost productivity and support the sustainable growth of Bangladesh’s floriculture sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399958 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399958 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399958 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2357154_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Duc Kien Author-X-Name-First: Nguyen Author-X-Name-Last: Duc Kien Author-Name: Thi Kim Oanh Dinh Author-X-Name-First: Thi Kim Oanh Author-X-Name-Last: Dinh Author-Name: Truong Tan Quan Author-X-Name-First: Truong Author-X-Name-Last: Tan Quan Author-Name: Nguyen Thai Phan Author-X-Name-First: Nguyen Author-X-Name-Last: Thai Phan Author-Name: Nguyen Cong Dinh Author-X-Name-First: Nguyen Author-X-Name-Last: Cong Dinh Author-Name: Pham Xuan Hung Author-X-Name-First: Pham Author-X-Name-Last: Xuan Hung Author-Name: Dung Truong Quang Author-X-Name-First: Dung Author-X-Name-Last: Truong Quang Title: Farmer-trader vertical coordination: drivers and impact on the lotus-grain value chains in central Vietnam Abstract: Lotus plants have emerged as a relatively new commodity in the food industry in Vietnam, with significant economic potential from its diverse applications in medicine, cosmetics, food, and decoration. Vertical coordination, involving strategic alignment and collaboration among different actors in the value chain, plays a critical role in supporting the small-grain grower-trader relationship. This study aimed to investigate the factors driving the adoption of vertical coordination mechanisms within lotus-grain value chains and to assess the impact of different coordination strategies applied by farmers on their well-being in central Vietnam. Employing a multinomial endogenous switching regression methodology, the study offers nuanced insights into the adoption patterns and impacts of various coordination strategies, controlling for both sample selection bias and unobservable factors. The results highlight the importance of trust, input management, and strategic decision-making in enhancing yield and revenue outcomes among smallholder farming households. Trust between farmers and traders significantly influences the adoption of such strategies in agricultural transactions. Higher trust levels correlate with an increased likelihood of adopting verbal, input, or written contracts. The positive impacts of input contracts on lotus grain yield and revenue, highlighting the importance of effective input management. These findings deepen our understanding of vertical coordination within lotus-grain value chains and assist stakeholders in making evidence-based decisions when selecting vertical coordination strategies for sustainable value chain management.Vertical coordination between farmers and traders has emerged as a promising strategy for enhancing efficiency, promoting mutual benefits, and improving livelihoods within Central Vietnam’s lotus grain value chain. By addressing existing challenges and charting future directions, vertical coordination holds the potential to significantly contribute to the sustainable development of the lotus grain industry in the region. This study highlights the importance of trust, input management, and strategic decision-making in enhancing yield and revenue. Trust between farmers and traders significantly influences the adoption of verbal, input, or written contracts. The positive impacts of input contracts on lotus grain yield and revenue underscore the importance of effective input management. These findings assist stakeholders in making evidence-based decisions for sustainable value chain management. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2357154 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2357154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2357154 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2313899_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Shujaat Naeem Azmi Author-X-Name-First: Shujaat Naeem Author-X-Name-Last: Azmi Author-Name: Kashif Hasan Khan Author-X-Name-First: Kashif Hasan Author-X-Name-Last: Khan Author-Name: Halil Koch Author-X-Name-First: Halil Author-X-Name-Last: Koch Title: Assessing the effect of INSTC on India’s trade with Eurasia: an application of gravity model Abstract: India’s trade with Eurasian countries has been improving steadily. India is aggressively addressing its troubles of accessibility and connectivity to the region, primarily through International North South Transport Corridor (INSTC). The present study has been undertaken to empirically examine the impact of INSTC on India’s export to its member countries. Using gravity model of international trade in a panel data framework, the findings show that both distance and if a trade partner is landlocked, effect India’s export negatively. Additionally, a positive effect of INSTC on India’s export was also discovered, elucidating the need to quickly remove the bottlenecks holding back the success of the project. Knowledge transfer and investment in infrastructure is solicited to facilitate the smooth transfer of goods, which will entail economic benefits for all members and also provide a counter narrative to China’s increasing influence in the region.Economic corridors are generally regarded as a tool for the facilitation of international trade. Therefore, an assessment of a corridor from trade perspective is essential to take corrective measures, if necessary. Our research empirically examines the International North South Transport Corridor (INSTC) for examining its effectives in stimulating exports from India to other member states. The results suggest that both distance and a trade partner being landlocked adversely effects India’s exports. The INSTC has been helpful in bridging these trade cost for India’s export to the member states. This novel work gives credence to the potential of INSTC as a source mutual benefits for the member countries. The research assumes more significance in light of the concerns surrounding supply chain disruptions for INSTC members due to Russia-Ukraine war. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2313899 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2313899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2313899 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312386_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Anh Tu Author-X-Name-First: Nguyen Anh Author-X-Name-Last: Tu Title: Innovation and foreign direct investment attraction in developing countries Abstract: The present study investigates the relationship between innovation (INN) and foreign direct investment (FDI) attraction across 66 developing countries from 2013 to 2021. Adopting the Difference Generalized Method of Moments estimation, the study reveals a statistically positive INN-FDI nexus. Panel Granger causality analysis further indicates a bidirectional between the two variables. Additionally, via feature importance analysis, it is evident that market size, labor resources, and financial development play a critical role in strongly influencing FDI inflows, while innovation shows smaller magnitude. Furthermore, trade openness demonstrates a significantly positive impact on FDI with low impact, while inflation has an insignificantly negative effect on FDI. Policy implications are also discussed.Developing countries, particularly those seeking to attract foreign direct investment (FDI), consider paying attention to the innovation (INN) factor. Alongside traditional factors such as market size and abundant labor force are strengths of FDI attraction for developing countries, new models should be continually developed. In this context, the researcher hypothesizes that multinational enterprises are interested in new resources related to INN to meet their production requirements. Indeed, INN and its efficacy in attracting FDI in developing countries, which pay less resources to allocate innovation, remains unproven. Drawing upon data from the global innovation index, the experimental findings of this research show the bidirectional FDI-INN nexus and suggest that policies aimed at attracting FDI should prioritize those based on advanced technologies. Additionally, via feature importance analysis, market size and labor force cannot be ignored in the analyzed context. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312386 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312386 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312386 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2342459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohsin Showkat Author-X-Name-First: Mohsin Author-X-Name-Last: Showkat Author-Name: Razia Nagina Author-X-Name-First: Razia Author-X-Name-Last: Nagina Author-Name: Usha Nori Author-X-Name-First: Usha Author-X-Name-Last: Nori Author-Name: Muzamil Ahmad Baba Author-X-Name-First: Muzamil Ahmad Author-X-Name-Last: Baba Author-Name: Mohd Asif Shah Author-X-Name-First: Mohd Asif Author-X-Name-Last: Shah Title: Empowering women in the digital age: can digital financial services fulfil the promise of financial autonomy and gender equality in the attainment of Sustainable Development Goal 5? Abstract: Digital financial services play a crucial role in breaking down traditional barriers to financial access, promoting greater financial inclusion, and providing marginalized groups with equal access. These services offer innovative strategies designed to address the unique financial barriers and empower women to achieve financial access and independence. This study aims to examine the influence of the adoption of digital financial services on enhancing women’s financial independence. This study examines the responses of 426 women in North India using Partial Least Squares Structural Equation Modelling (PLS-SEM) as its research approach. This study also employs the PLS Predict technique to evaluate the ability of the model to predict women’s financial autonomy. The findings demonstrate a significant and favourable relationship between the utilization of digital financial services and the improvement of women’s ability to make financial decisions. This study contributes to the discussion on promoting gender equality and economic empowerment, aligning with United Nations Sustainable Development Goal 5; showcasing the potential of information and communication technology (ICT) in advancing women’s economic and social empowerment. The results offer vital perspectives for policymakers, financial service providers, and development agencies, emphasizing the substantial influence of digital financial services in promoting gender parity and enhancing women’s socio-economic circumstances. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2342459 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2342459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2342459 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2408271_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: My-Linh Thi Nguyen Author-X-Name-First: My-Linh Author-X-Name-Last: Thi Nguyen Author-Name: Thi Lam Ho Author-X-Name-First: Thi Lam Author-X-Name-Last: Ho Title: Do fiscal policy and economic growth improve or harm the environment? An empirical analysis with a Bayesian approach and threshold estimation in one of the emerging and growth-leading economies Abstract: As one of the Emerging and Growth-Leading Economies (EAGLES), Vietnam is maintaining rapid economic development at the cost of environmental degradation. However, the impact of economic growth and the role of fiscal policy tools in Vietnam’s pollution equation remains unclear. This study uses a Bayesian approach and threshold estimation to quantitatively assess the relationship between economic growth, fiscal policy tools, and environmental degradation in Vietnam from 1990 to 2021. The results indicate that tools of the fiscal policy significantly contribute to environmental degradation, with government expenditure having a greater impact than taxation. Economic growth exhibits a U-shaped relationship with degradation, implying the existence of an inverted Environmental Kuznets Curve (EKC) hypothesis in a transitional economy. In the early stages of Vietnam’s development, characterized by an agricultural economy, economic growth positively affected the environment. However, economic growth exacerbates environmental degradation in the pre-industrialization and industrialization phases. Diagnostic tests are also applied to confirm the reliability and validity of the empirical estimates, providing valuable insights for proposed policy implications in the study.This study offers critical insights into the relationship between economic growth, fiscal policy, and environmental degradation in Vietnam, an Emerging and Growth-Leading Economy (EAGLE). By applying advanced Bayesian techniques and threshold estimation, the research highlights the significant role of fiscal policy tools—particularly government expenditure—in contributing to environmental degradation. The discovery of a U-shaped relationship between economic growth and environmental impact supports the inverted Environmental Kuznets Curve (EKC) hypothesis in Vietnam’s transitional economy. These findings emphasize the need for targeted fiscal reforms to balance economic growth with environmental sustainability, providing a valuable foundation for policymakers to mitigate environmental harm during Vietnam’s ongoing industrialization. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2408271 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2408271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2408271 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2307246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2307246 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2307246 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2307246 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Richmond Atta-Ankomah Author-X-Name-First: Richmond Author-X-Name-Last: Atta-Ankomah Author-Name: Kwame Adjei-Mantey Author-X-Name-First: Kwame Author-X-Name-Last: Adjei-Mantey Author-Name: Akuffo Amankwah Author-X-Name-First: Akuffo Author-X-Name-Last: Amankwah Title: Digital financial services and livelihood diversification in rural Ghana Abstract: The emergence of digital financial systems, especially mobile money, has significantly changed the financial services space in sub-Saharan Africa in ways that promote financial inclusion among the poor, including those in rural communities. Focusing on mobile money, which is the main avenue for digital financial services for rural households in Ghana, this study investigates whether digital finance affects rural households’ livelihood diversification, using a nationally representative data on Ghana. Employing several econometric methods, including instrumental variable techniques to address potential endogeneity bias, the study finds mobile money to be positively associated with households’ choice of non-farm business as a livelihood option as well as their engagement in livestock production. However, we find a negative relationship between mobile money and diversification in crop production including the extent to which households engaged in the crop sector are able to diversify crop production. The implication is that when rural households have access to mobile money services, they produce fewer number of different crops while exploring non-farm activities and livestock production as additional livelihood options. The results underscore the need to address constraints that limit rural households’ access to digital financial tools, especially mobile money, in Ghana and in similar developing country contexts.This study employs a nationally representative micro-data from rural Ghana to investigate the effect of digital finance on livelihood diversification using several econometric methods including instrumental variables to address potential endogeneity bias. The study represents a significant attempt at addressing an important gap in the existing literature which is about whether digital finance brings any value addition to livelihood diversification efforts by rural households. The key finding is that when rural agricultural households have access to digital financial services through mobile money, they produce fewer different crops, while exploring non-farm activities and livestock production as additional livelihood options. The finding implies that access to digital finance may influence rural households’ ability to reallocate productive resources to areas that yield higher returns to their livelihoods and/or mitigate the risk of income loss. Expanding upon this finding with an exploration of the key correlates of diversification and access to digital finance, the study shows that addressing constraints to access to digital finance or mobile money (particularly, the limited mobile phone connectivity, electricity access or supply challenges, and low education or digital illiteracy in rural areas) is important for deepening livelihood diversification in rural Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330434 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330434 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330434 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2379583_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kobsidthi Silpachai Author-X-Name-First: Kobsidthi Author-X-Name-Last: Silpachai Author-Name: Sununta Siengthai Author-X-Name-First: Sununta Author-X-Name-Last: Siengthai Author-Name: Roger Levermore Author-X-Name-First: Roger Author-X-Name-Last: Levermore Title: Corporate governance, information asymmetry and firm performance: evidence from Thailand Abstract: This paper aims to examine the effect of corporate governance (CG) and information asymmetry (IA) on firm performance (FP). We applied 3SLS (Three-Stage Least Squares) regressions to examine the relationships among (1) internal CG mechanism and FP, (2) internal CG mechanism and IA, and (3) IA and FP. The data used in this study were obtained from secondary sources such as Bloomberg and SETSMART. The period of data collection was for nine years, from 2014 to 2022, with a sample size of 3,692 firm-year observations of companies listed on the Thailand Stock Exchange. Our study finds that internal CG mechanisms (board size, board independence, dividend policy, and financial leverage) are positively related to firm performance. Secondly, CG mechanisms are positively associated with analyst coverage (and hence inversely related to IA). This finding suggests that internal CG mechanisms augment corporate transparency and reduce agency costs and adverse selections. Thirdly, IA is inversely related to firm performance, ie more transparent firms with greater analyst coverage tend to deliver better firm performance as monitoring costs and adverse selection are reduced. We found that additional analyst coverage is associated with an increase of a firm’s ROE by 0.52% and its ROA by 0.08%. Fourthly, we further conducted an interaction effect analysis of CG and IA on FP and found that IA also significantly moderates the relationship between CG and FP. Practical implications from our study are also discussed.This paper aims to examine the effect of corporate governance (CG) and information asymmetry (IA) on firm performance (FP) in an emerging market of Thailand. Our study finds that internal CG mechanisms (board size, board independence, dividend policy, and financial leverage) are positively related to firm performance. Secondly, CG mechanisms are positively associated with analyst coverage (and hence inversely related to IA). This finding suggests that internal CG mechanisms augment corporate transparency and reduce agency costs and adverse selections. Thirdly, IA is inversely related to firm performance, i.e., more transparent firms with greater analyst coverage tend to deliver better firm performance as monitoring costs and adverse selection are reduced. We found that additional analyst coverage is associated with an increase of a firm’s ROE by 0.52% and its ROA by 0.08%. Fourthly, we further conducted an interaction effect analysis of CG and IA on FP and found that IA also significantly moderates the relationship between CG and FP. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2379583 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2379583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2379583 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330426_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ernest Sogah Author-X-Name-First: Ernest Author-X-Name-Last: Sogah Author-Name: Joseph K. Tuffour Author-X-Name-First: Joseph K. Author-X-Name-Last: Tuffour Author-Name: John Kwaku Mensah Mawutor Author-X-Name-First: John Kwaku Mensah Author-X-Name-Last: Mawutor Author-Name: Freeman Christian Gborse Author-X-Name-First: Freeman Christian Author-X-Name-Last: Gborse Title: The relationship between external debt and agriculture GDP growth in Ghana: an ARDL cointegrating bound testing approach Abstract: The relationship between external debt and agriculture productivity is a topic of significant importance in developing economies. Agriculture is a fundamental sector in these economies, often providing livelihoods for a substantial portion of the population. External debt, on the other hand, is a commonly used financing mechanism for economic development. Understanding how these two variables interact is crucial for policymakers because it has far-reaching implications for food security, poverty reduction, and overall economic stability. The main objective of this study is to establish the relationship between external debt and agricultural GDP growth in Ghana. The Augmented Dickey Fuller and Phillips-Parron tests and the autoregressive distributed lag (ARDL) to co-integration bound testing approach were employed for the econometrics analysis from 1980 to 2019. The study revealed a direct and significant effect of external debt on agricultural GDP growth in Ghana. This implies that external funds were optimally channeled and used to stimulate agricultural output. The results indicate that external debt servicing has a positive effect on agricultural GDP growth, suggesting that Ghana is capable of always fulfilling its debt obligation. The study’s key contributions are that the paper is the first to investigate the link between external debt and agricultural GDP growth in Ghana. Furthermore, the study has indicated that external debt is a catalyst to augment agriculture GDP growth in Ghana. Finally, we investigate the long -term effect of the variables of interest on agricultural GDP growth.The finding that external debt has a positive and significant effect on agriculture GDP in Ghana carries substantial implications for both policymakers and stakeholders in the agricultural sector. This result underscores the critical role that external borrowing plays in driving agricultural growth and development in the country.First and foremost, this finding suggests that external financing channels, such as loans and grants from international financial institutions or bilateral donors, can effectively stimulate investment in the agricultural sector. These funds can be utilized to finance crucial initiatives aimed at modernizing agricultural practices, improving infrastructure, enhancing productivity, and promoting value chain development. As agriculture remains a vital sector of Ghana’s economy, contributing significantly to employment, food security, and rural livelihoods, the positive impact of external debt on agriculture GDP signifies the potential for sustainable economic growth and poverty reduction.Moreover, the positive association between external debt and agriculture GDP implies that prudent debt management strategies, coupled with targeted investment in agriculture, can yield favorable outcomes for Ghana’s overall economic performance. By strategically leveraging external resources to bolster agricultural productivity and competitiveness, Ghana can capitalize on its comparative advantage in the sector, diversify its export base, and reduce dependency on imports, thereby enhancing resilience to external shocks and fostering long-term economic sustainability.Additionally, the significance of external debt in driving agricultural GDP underscores the importance of aligning debt-financed projects and programs with national development priorities, particularly those outlined in Ghana’s medium to long-term agricultural development strategies. This entails ensuring that borrowed funds are allocated efficiently, transparently, and equitably across different segments of the agricultural value chain, with due consideration for environmental sustainability, social inclusivity, and gender equality. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330426 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330426 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330426 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2302636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ugochi C. Okoroafor Author-X-Name-First: Ugochi C. Author-X-Name-Last: Okoroafor Author-Name: Thomas Leirvik Author-X-Name-First: Thomas Author-X-Name-Last: Leirvik Title: Dynamic link between liquidity and return in the crude oil market Abstract: In this study, we investigate the dynamic relationship between return and liquidity in the Brent and the West Texas Intermediate (WTI) oil markets. The research utilises daily oil price and volume data and monthly macroeconomic data from January 1, 1996 to April 28, 2023 obtained from the Energy Information Association (EIA), the Organisation for Economic Co-operation and Development (OECD), the Federal Reserve Economic Data (FRED), investing.com, and the International Monetary Fund (IMF). We employ the ARMAX(1,1)-aDCC-GARCH-t(1,1) model to capture time-varying associations between return and liquidity. Our findings reveal a significant impact of speculation on the return-liquidity relationship, which is more persistent in the WTI market. Furthermore, we observe a pattern between the Brent and WTI markets during the study period, which the heterogeneous trader hypothesis can explain. These insights hold implications for policymakers aiming to enhance the crude oil market’s stability, as well as for market traders in developing trading and risk management strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2302636 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2302636 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2302636 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426541_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thomas Habanabakize Author-X-Name-First: Thomas Author-X-Name-Last: Habanabakize Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Title: Analysing the socio-financial determinants shaping food production in the South African agriculture sector Abstract: The 2023 Sustainable Development Goals (SDGs) encompass a specific objective that is to ‘end hunger, achieve food security, enhance agriculture, and improve nutrition’. The realization of this goal relies heavily on efficient agriculture sector management in developing countries. Consequently, assessment of factors that influence agricultural production is one of the way to solve issues that hinders the attainement of the SDGs. This paper aims to investigate the determinants of food production within the South African agricultural sector. Employing econometric methods like Johansen and Canonical Cointegration, VAR and VECM, this study analyes annual time series data spanning from 1961 to 2022. The analysis indicates that factors such as accessible financing, heightened agricultural sector investment, fertilizer usage, and rural demographic growth positively influence food production; contributing to mitigating food insecurity in South Africa. Conversely, elevated lending rates and inflation pose challenges to South African food production. Thise results indicate the role played by monetary policy to improve food production in South Africa. To bolster food production in South Africa, policymakers shoul focus on enhancing agricultural skills, easing credit conditions to improve financial accessibility, and encouraging active investment from government and private sectors in agricultural activities.The current study offers vital insights into the multifaceted determinants of food production within the South African agricultural sector, directly contributing to achieving the 2023 Sustainable Development Goals (SDGs), particularly the aim of “ending hunger, achieving food security, enhancing agriculture, and improving nutrition.” By employing rigorous econometric analyses on comprehensive time series data, this research enhances the existing literature by identifying and elucidating various bottlenecks that obstruct production growth in the South African agricultural sector. Additionally, the study conducts a thorough investigation into the impact of key factors of production in agriculture, providing evidence-based recommendations and robust strategies designed to alleviate hunger and malnutrition through enhanced food production techniques. It underscores the critical significance of targeted investment growth, agricultural skills enhancement, and improved financial accessibility as essential strategies for boosting agricultural productivity. The findings are not only relevant to South Africa but also offer valuable lessons for other developing countries facing similar agrarian challenges. By illuminating the pathways to improved food production and food security, this study serves as a foundational resource for policymakers, agricultural practitioners, and other stakeholders striving to create sustainable food systems that can effectively eradicate hunger and elevate nutrition standards on a global scale. This study highlights the usefulness of a collaborative approach incorporating government initiatives, private sector investments, and community engagement to foster a resilient agricultural sector capable of adapting to changing socio-economic conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426541 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426541 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: K. Nirmal Ravi Kumar Author-X-Name-First: K. Nirmal Author-X-Name-Last: Ravi Kumar Author-Name: K. Gurava Reddy Author-X-Name-First: K. Gurava Author-X-Name-Last: Reddy Author-Name: Adinan Bahahudeen Shafiwu Author-X-Name-First: Adinan Bahahudeen Author-X-Name-Last: Shafiwu Author-Name: M. Jagan Mohan Reddy Author-X-Name-First: M. Jagan Author-X-Name-Last: Mohan Reddy Title: Trade determinants and opportunities for Indian rice: a dynamic panel gravity model perspective Abstract: The dynamics of international trade play a pivotal role in shaping economic growth and development for nations worldwide. This significance is particularly pronounced in the context of India’s agrarian economy. With a substantial portion of its population dependent on agriculture, engaging in global trade presents a myriad of advantages. As a member of the World Trade Organization (WTO), India benefits from a framework that fosters transparent and fair-trade relations, enabling dispute resolution and favourable negotiations. India’s agro-climatic diversity grants it a competitive edge in cultivating various agricultural products, predominantly rice. Enabling policies, like Minimum Support Price and subsidies, incentivize farmers, while adherence to international quality standards enhances the acceptance of Indian rice abroad. The gravity model employed in this study to analyze India’s rice trade with major importing countries, offers valuable insights into trade dynamics. When delving into specific determinants of trade, the Heckman selection equation proves useful. Factors like Gross Domestic Product (GDP), per capita income, trade history, and exchange rates consistently impact partner selection. The likelihood of choosing a trading partner is influenced by economic compatibility, historical trade relations and WTO membership. Additionally, shared borders and regional affiliations play a role, while economic recessions tend to decrease partner selection due to reduced demand. Examining trade quantity reveals nuanced dynamics. Historical trade interactions, economic indicators and WTO membership consistently influence trade volumes. Larger GDPs, per capita incomes, and populations of trading partners enhance trade prospects, while disparities in income and exchange rate fluctuations impact trade negatively. Importantly, distance remains a key factor affecting trade volume, as logistical complexities and transportation costs influence trade decisions. These findings shed light on trade dynamics, enabling evidence-based policy decisions to enhance trade relationships, boost competitiveness and propel India’s rice exports to new heights. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312367 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312367 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402035_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: David Boansi Author-X-Name-First: David Author-X-Name-Last: Boansi Author-Name: Michael Gyasi Author-X-Name-First: Michael Author-X-Name-Last: Gyasi Author-Name: Stephen Nuamah Author-X-Name-First: Stephen Author-X-Name-Last: Nuamah Author-Name: Enoch Kwame Tham-Agyekum Author-X-Name-First: Enoch Kwame Author-X-Name-Last: Tham-Agyekum Author-Name: Fred Ankuyi Author-X-Name-First: Fred Author-X-Name-Last: Ankuyi Author-Name: Richmond Frimpong Author-X-Name-First: Richmond Author-X-Name-Last: Frimpong Author-Name: Albert Gbafah Author-X-Name-First: Albert Author-X-Name-Last: Gbafah Author-Name: Charles Bosompem Gyan Author-X-Name-First: Charles Bosompem Author-X-Name-Last: Gyan Title: Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana Abstract: This study identified the determinants of cocoa farmers’ access to credit in Ghana and estimated the impact of credit access on yield, yield gap, gross income, cost of production, and net income using propensity score matching. A total of 384 cocoa-farming households were included in the analysis. Only 33.3% of cocoa farmers accessed credit for production and cooperative unions were the main source of credit accessed by the farmers. The study finds significant positive impacts of agricultural credit on yield, gross income, and net income, while yield gap decreases significantly (by 12.2–16.7%) with access to credit. Policy efforts to improve cocoa farmers’ access to credit could therefore enhance the productivity and profitability of cocoa production. It was found that male-headed households with access to credit derive greater benefits than their female counterparts. This may be attributed to differences in resource endowments and marginalization (between male and female heads). In addition, it was found that with access to credit, cultivating more than one cocoa farm could make cocoa production more productive and profitable. This indicates more efficient and profitable use of credit on fragmented farms, than on non-fragmented farms. However, under credit constraint, the practice of land fragmentation could be counterproductive.Through the generation of foreign exchange, creation of employment, and the provision of other environmental and health related benefits, cocoa can be classified as a gem among the major export commodities from Ghana. Despite the benefits the commodity offers to the Ghanaian economy, the cocoa subsector has been subjected to myriads of production related challenges (including aging trees, low soil fertility, low or limited adoption of productivity-enhancing inputs, challenges with post-harvest management, etc.), which have led to declining trend in cocoa production, rising production costs and decreasing farm income. Majority of these challenges have in recent research efforts been linked to credit constraints. While efforts have been made by previous and current governments to improve cocoa farmers access to credit and enhance the performance of the subsector, credit remains insufficient for cocoa farmers, and very little has so far been documented empirically on the impact of agricultural credit on cocoa production, especially in Ghana. This study addresses this gap by analyzing the determinants of cocoa farmers access to agricultural credit and the impact of agricultural credit on productivity (yield, yield gap, and gross income), cost and returns from cocoa production. The study also identifies and documents potential heterogeneity in impacts of agricultural credit on male and female headed households, and between farmers who operate on fragmented and non-fragmented lands, stressing on the need to consider the differences in impact between these two groups when implementing measures to enhance farmers access to credit and the impact on farm performance. Findings from this study could guide policy formulation, especially in targeting of farmers for agricultural credit and in the implementation of measures to address challenges in cocoa production. To farmers, this study could enlighten them on the benefits of operating on fragmented lands with improved access to credit, and the risk of operating on fragmented lands under credit constraint Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402035 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402035 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364353_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Michael Murigi Author-X-Name-First: Michael Author-X-Name-Last: Murigi Author-Name: Dianah Ngui Author-X-Name-First: Dianah Author-X-Name-Last: Ngui Author-Name: Maurice Juma Ogada Author-X-Name-First: Maurice Juma Author-X-Name-Last: Ogada Title: Impact of smallholder banana contract farming on farm productivity and income in Kenya Abstract: Smallholder banana farmers in Kenya grapple with declining farm productivity and low market prices in a fragmented, broker-dominated market. To address these challenges, the Kenya National Banana Development Strategy advocates for the adoption of contract farming. This research utilizes Difference-in-Differences (DID) regression analysis to assess the impacts of smallholder participation in banana contract farming on farm productivity and income. The empirical results reveal positive impacts, emphasizing the potential of contract farming to enhance productivity, increase incomes for smallholder farmers, and invigorate rural economies. These findings provide valuable insights into the efficacy of contract farming as a strategy for addressing challenges in banana farming. To maximize this potential, the study recommends policy interventions, including increased government support, improvements in infrastructure and market accessibility, reinforced institutional backing, and the promotion of sustainable practices. These measures aim to secure enduring benefits for both farmers and food marketing firms in Kenya.This study examines the effectiveness of contract farming in addressing the struggles of Kenyan smallholder banana farmers. The study finds that participating in contract farming leads to increased farm productivity and income for these farmers. These findings highlight the potential of contract farming to revitalize rural economies. To maximize these benefits, the research recommends policy changes, such as increased government support and improved infrastructure, to create a sustainable and mutually beneficial system for both farmers and food companies in Kenya. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364353 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364353 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431544_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Arturo García-Santillán Author-X-Name-First: Arturo Author-X-Name-Last: García-Santillán Author-Name: Milka Elena Escalera-Chávez Author-X-Name-First: Milka Elena Author-X-Name-Last: Escalera-Chávez Author-Name: Josefina C. Santana Author-X-Name-First: Josefina C. Author-X-Name-Last: Santana Title: Exploring resilience: a Bayesian study of psychological and financial factors across gender Abstract: The study aims to demonstrate gender differences in financial health indicators, assessed through perceptions, lived experiences, and actions to deal with financial crises. The scale used is a composite instrument that includes the eight financial health indicators from BBVA and the Center for Financial Services Innovation (CFSI), together with a scale designed to measure lived experiences and actions to manage financial crises. The sample consisted of 951 participants, 394 (41.4%) men, 504 (53.0%) women, and 53 (5.6%) LGBTQ+. Bayesian analysis indicates that perceptions, lived experiences, and actions in managing economic crises do not differ significantly between genders. The study suggests no significant differences in financial resilience between men, women, and LGBTQ+ people. Actions to cope with economic crises also indicate that resilience does not vary significantly by gender. Despite the absence of gender differences in financial perceptions and experiences, it is inferred that participants possess an acceptable level of financial knowledge, which helps them manage unforeseen expenses and reduce dependence on loans. Financial education is a key factor in strengthening resilience and promoting financial inclusion, which is essential, especially in diverse socioeconomic contexts. The findings suggest that financial inclusion may improve household resilience, particularly in rural areas.This study sought to explore gender differences in financial health indicators, assessed through perceptions, lived experiences, and actions to deal with financial crises. Though the study found no significant differences in financial resilience between men, women, and LGBTQ+ people, it can be inferred that participants possess an acceptable level of financial knowledge, which helps them manage unforeseen expenses and reduce dependence on loans. This underscores the importance of financial education, especially in regions with frequent economic challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431544 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431544 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2404709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Shigeru Matsumoto Author-X-Name-First: Shigeru Author-X-Name-Last: Matsumoto Author-Name: Tsunehiro Otsuki Author-X-Name-First: Tsunehiro Author-X-Name-Last: Otsuki Title: How did Japanese households change their food purchasing behavior at the initial period of the COVID-19 outbreak? Abstract: Fearing the COVID-19 infection, people began to avoid eating out and eating at home. Simultaneously, they began using meal delivery services. Numerous studies have assessed the impact of COVID-19 on various economic activities. However, its effects on food consumption patterns have not yet been fully examined. By analyzing household spending data from 1448 households in Tokyo, Tokai, and Kinki areas of Japan, we observed changes in food spending before and after the pandemic. During the emergency, the share of expenditures on food-away-from-home (FAFH) decreased by 1.8%, the share of expenditures on food-at-home (FAH) increased by 0.5%, and the share of expenditures on food delivery services (FDS) increased by 1.3% for all eligible households. However, the extent of the shift from FAFH to FAH and FDS varied widely across households. Single-person and single-parent households continued to rely on FAFH during the pandemic, whereas parent-child households shifted more to FAH. This suggests that time-constrained households could not prioritize meal preparation even during the pandemic. While various policies have recently been introduced to promote healthy eating at home, our empirical findings suggest that policies to ease household time constraints are simultaneously required for these programs to work.During the COVID-19 pandemic, people spent more time at home, ate out less frequently, and started cooking at home. However, the extent to which eating habits changed during the pandemic varied greatly among households. Households with parents and children substantially shifted towards eating at home, while single-person households and households with single parents continued to eat out during the pandemic. These results indicate that people with limited time found it very challenging to change their eating habits. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2404709 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2404709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2404709 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sunday Anderu Keji Author-X-Name-First: Sunday Anderu Author-X-Name-Last: Keji Author-Name: Gbenga Wilfred Akinola Author-X-Name-First: Gbenga Wilfred Author-X-Name-Last: Akinola Author-Name: Josue Mbonigaba Author-X-Name-First: Josue Author-X-Name-Last: Mbonigaba Title: A comparative analysis of the spillover effects from human capital skill and infrastructural development on industrial sector growth across sub-regional economies in sub-Saharan Africa Abstract: Despite the sub-Saharan African (SSA) region’s vast size in terms of human capital and physical capital resources, the industrial output growth in SSA still needs to catch up to the other regions. This is because of low productive skills and the dilapidated spread of infrastructural technology (tech), which have constrained rapid industrial growth. On this premise, the study fills gaps in the literature via trend analysis, sub-sample analysis, Fixed Effect Least Square Dummy Variable (Fixed-LSDV) and disaggregated system-GMM techniques to ascertain the spillover effects of human capital skill and infrastructure development on industrial sector growth across the SSA sub-regional blocs. Findings disclosed that SADC and ECCAS have better spillover effects on industrial growth than EAC and ECOWAS. Notably, ECOWAS, having the highest labor force among the economic blocs, was found to have performed most poorly. Equally, a comparative analysis via FE-LSDV technique, as suggested by the Hausman test, was adopted to examine sub-regional spillover effects across SSA. The LSDV outcomes from the combined model were compared with the LSDV outcomes from specific model to systematically reveal spillover effects from human capital skill and infrastructure on industrial output growth. The overall results showed significant diverse effects from human capital skill and infrastructural-technology development on industrial sector growth across the sub-regional groups in SSA. Consequently, the study suggests that countries at the sub-regional level should draft more policy support to prioritize factor input based on their specific spillover effect to reduce real cost and money cost of production for rapid industrial growth.In recent times, individual sub-regions across the globe have strived to promote industrial output growth through varied means of productive inputs. For example, South Asia changed industrial production fortunes through massive infrastructural investment (Du, Zhang and Han, 2022). While, North America sub-region promoted industrial output growth through massive advancement in human capital skills and infrastructure (World Bank Development Index, 2023). However, the fortunes of advancing industrial output growth have remained mirage in sub-Saharan Africa (SSA) due to poor human capital skills and low infrastructure development (Akinlo, 2020; Keji, 2021; Amoah and Jehu-Appiah, 2022; World Bank Development Index, 2023). Consequently, findings from this study would provide the needed means to improve human capital and infrastructure spillover effects towards advancing industrial output growth in EAC ECCAS ECOWAS and SADC sub-regional blocs in SSA. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402178 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402178 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426539_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Evangelos Vasileiou Author-X-Name-First: Evangelos Author-X-Name-Last: Vasileiou Author-Name: Elroi Hadad Author-X-Name-First: Elroi Author-X-Name-Last: Hadad Title: Benefits and drawbacks of the cost average plan as an alternative investment strategy in EMU countries Abstract: This study explores long-term investment strategies for individuals in European countries who have limited initial capital and may have no expertise in financial economics. We compare three strategies—Cost Average Plan (CAP), Bank Deposits Plan (BDP), and Buy and Hold (BnH)—by analyzing their risk and performance across six European Monetary Union (EMU) countries: France, Germany, Italy, Ireland, the Netherlands, and Spain, using data from January 2003 to December 2023. CAP is ideal for individuals aiming to build wealth gradually by investing a fixed amount monthly in an ETF that tracks an index, while BDP involves saving money in a bank account. This analysis also aligns with the European Commission’s Pan-European Personal Pension Product (PEPP) guidelines. The findings reveal that CAP generally outperforms monthly bank deposits, making it a better choice for those unable to invest large sums upfront, such as young individuals or new parents with long-term savings goals. Although CAP underperforms BnH in terms of returns, it offers significantly lower risk, making it suitable for investors with moderate risk tolerance. Additionally, CAP demonstrates greater stability in adverse market conditions compared to BnH. Future research could build on these results by incorporating more variables, markets, and investment horizons.This study provides valuable insights into the comparative performance of investment strategies within the European financial landscape, emphasizing their practical implications for investors with varying levels of capital and risk tolerance. By addressing the unique economic dynamics of EU countries, this research supports more informed financial decision-making, contributing to the broader goal of promoting financial equity and resilience in the EU. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426539 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426539 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426539 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Richard Fosu Amankwa Author-X-Name-First: Richard Fosu Author-X-Name-Last: Amankwa Author-Name: Eric B. Yiadom Author-X-Name-First: Eric B. Author-X-Name-Last: Yiadom Author-Name: Evans Acheampong Author-X-Name-First: Evans Author-X-Name-Last: Acheampong Author-Name: John K. M. Mawutor Author-X-Name-First: John K. M. Author-X-Name-Last: Mawutor Title: Climate change mitigation with Eurobonds: an Environmental Kuznets Curve analysis Abstract: This study examines the impact of Eurobonds on carbon dioxide emissions in Africa using a panel dataset. The paper reconsidered the Environmental Kuznets Curve (EKC) and integrated it into Eurobond Environmental Kuznets Curve (EEKC). This study modelled a panel dataset spanning from 2007 to 2018 using all 17 sovereign African countries that have issued Eurobonds. The findings highlight a significant scientific value in exploring Eurobonds as a financing option to reduce carbon dioxide emissions in Africa. Specifically, the study reveals a positive relationship between Eurobond issuance and carbon dioxide emissions at the initial stage of the EEKC. By including the square term of Eurobond, the research identifies the existence of the EEKC in Africa, which supports the EKC theory. These results contribute to the growing body of literature on climate change mitigation and financing strategies in the context of African economies. Moreover, this study fills a critical void in the literature by introducing Eurobonds into the climate financing debate, emphasizing their potential role in financing climate-resilient activities. The study recommends that the issuing of Eurobonds should be linked to climate resilient activities, enabling funds to be directly invested in green sectors of the economy. This novel perspective on Eurobonds as a tool for environmentally sustainable projects adds scientific significance to the discourse on climate finance and sustainable development in Africa.The paper “Climate Change Mitigation with Eurobonds: An Environmental Kuznets Curve Analysis” presents a groundbreaking examination of Eurobond issuance’s impact on carbon emissions in African countries. By integrating the Environmental Kuznets Curve theory with Eurobond financing, it uncovers insights into Eurobonds’ potential for climate change mitigation and sustainable development. This research contributes significantly to climate finance and environmental sustainability discussions by analyzing panel data from 2007 to 2018 across 17 African nations. Initially, Eurobond-funded projects increase carbon emissions, in line with the Environmental Kuznets Curve hypothesis. However, as economies progress, Eurobonds correlate with reduced emissions, suggesting the emergence of an “Eurobond Environmental Kuznets Curve.” These findings offer vital guidance for policymakers, advocating for aligning Eurobond issuance with environmental goals and promoting eco-friendly projects. They emphasize the importance of tailored policies that evolve with African countries’ economic growth stages, alongside investments in education, domestic initiatives, and environmentally-conscious foreign direct investment. This research lays the groundwork for informed decision-making in climate finance and sustainable development strategies, vital for steering towards more environmentally sustainable paths. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312782 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312782 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2318128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hiroaki Isoyama Author-X-Name-First: Hiroaki Author-X-Name-Last: Isoyama Title: Accruals anomalies could be explained by the adverse selection risk induced by the information structure: the case of the Japanese securities market Abstract: Accruals are regarded as investments in working capital and are an integral component in the growth process of firms. By assuming asymmetry of information among investors when predicting the returns on such investments, investors are exposed to adverse selection problems. Consequently, in market equilibrium, investors are believed to require compensation for the systematic risk associated with adverse selection exposure. By constructing the accruals factor as a variable to proxy for such risks, this study demonstrates that the accruals factor is priced and can enhance existing asset pricing models. Moreover, categorizing accruals into discretionary and non-discretionary components and constructing accruals factors from these components yields similar results. When the discretion of managers or market environment increases the degree of asymmetric information, adverse selection problems become more pronounced. Therefore, the accruals factor, serving as a proxy for the systematic risk associated with adverse selection, is an essential risk factor in asset pricing models.The accruals anomaly is a phenomenon that contradicts the EMH (efficient market hypothesis). This anomaly has been a compelling topic for accounting and finance scholars over the past quarter-century, as it pertains to fundamental issues, including the function of capital markets in pricing risk assets, allocating resources efficiently, and the institutional framework of information disclosure that affects the information environment of capital markets.While numerous studies have validated the robustness of this phenomenon, the reasons behind its occurrence remain unclear. Assuming the presence of information asymmetry among investors, as described by market microstructure theory, uninformed investors are exposed to the risk of adverse selection. To compensate for such risk exposure, it is believed that these investors require a risk premium. Empirical analyses using the GRS test, its Bayesian framework, and HJ-Distance (Hansen-Jagannathan-Distance) support this theoretical prediction.Excluding the role of the information structure when discussing market efficiency is akin to disregarding a crucial puzzle piece. Considering a more intricate structure makes it possible to rationally explain phenomena previously deemed anomalous. Therefore, it is believed that conducting analyses based on aspects of market microstructure theory, which specifically describe information asymmetry, is highly important for future research in accounting and finance. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2318128 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2318128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2318128 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kwame B. Bour Author-X-Name-First: Kwame Author-X-Name-Last: B. Bour Author-Name: Kwaku Adu Author-X-Name-First: Kwaku Author-X-Name-Last: Adu Author-Name: Anthony Amoah Author-X-Name-First: Anthony Author-X-Name-Last: Amoah Author-Name: Braimah Kassum Author-X-Name-First: Braimah Author-X-Name-Last: Kassum Author-Name: Collins Gameli Hodoli Author-X-Name-First: Collins Author-X-Name-Last: Gameli Hodoli Author-Name: Patience A. K. Awua-Boateng Author-X-Name-First: Patience Author-X-Name-Last: A. K. Awua-Boateng Title: Profit as a predictor variable for environmental sustainability practices (ESPs) of manufacturing companies for achieving green manufacturing in contemporary Ghana Abstract: The complex relationship between profit margins and environmental sustainability practices (ESPs) in Ghana’s manufacturing industry is examined in this study. Utilizing information gathered from six manufacturing firms, the study uses regression analysis to examine how different ESPs affect profit margins. The hypothetical statements were tested using analysis of variance (ANOVA). ANOVA was used to ascertain the variability between the dependent and independent variables. The result from the model summary showed a significant relationship between the MCs’ profit margins and their ESPs. The results show that although certain ESPs, like using conventional pollution protection techniques, may only slightly raise profit margins, others, like putting modern pollution control technology into practice, may drastically lower profitability. Furthermore, the study emphasizes how waste management and environmental regulations have a favorable impact on profit margins, indicating that businesses that have strong environmental strategies typically have better financial results. However, the study also reveals the possible downsides of programs like eco-awards and environmental socialization, which have expenses but little return on investment. Overall, the study highlights the intricate relationship between economic performance and environmental sustainability in Ghanaian manufacturing, providing useful information for industry stakeholders and policymakers who want to support sustainable development practices without sacrificing profitability. By providing empirical evidence of the connection between ESPs and profit margins, the study advances academic knowledge and improves corporate economics and environmental management knowledge. The design of incentive programs and regulatory frameworks to support sustainable behaviors can be informed by findings, that balance environmental responsibility and financial feasibility. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364362 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364362 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2376951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eleonora Sofilda Author-X-Name-First: Eleonora Author-X-Name-Last: Sofilda Author-Name: Dida Nurhaida Author-X-Name-First: Dida Author-X-Name-Last: Nurhaida Author-Name: Muhammad Zilal Hamzah Author-X-Name-First: Muhammad Zilal Author-X-Name-Last: Hamzah Title: Foreign direct investment experience in middle income countries Abstract: This study was conducted to identify the variables that impact FDI inflows to enhance the economies of Middle-Income Countries. Its unique contribution lies in integrating the Ease of Doing Business Rankings (EoDB) indicator with the Corruption Perception Index (CPI). This study also added control variables such as Gross Domestic Product (GDP), Population, Human Development Index (HDI), Labor Force, Exchange Rate, and Infrastructure Budget for 2010–2019. This study used a Panel Regression Analysis with the following procedure to choose the best-fit model. The main finding is that only one indicator of the EoDB, Paying Taxes, has a positive and significant impact on FDI. Another interesting result is that HDI and the Labor Force have a positive and significant influence on FDI. Countries with higher HDI tend to have better infrastructure, a skilled workforce, and greater social stability, all of which are attractive to foreign investors. This study also finds that the EODB rankings often reflects how low transaction costs are for investing in a country. Countries with better EODB rankings tend to have better institutions, which in turn attract more investment. Policymakers in each Middle-Income Country must pay attention to investment and regulatory policies, fiscal incentives, the availability of skilled labor, the quality of human resources, adequate infrastructure, and large market potential.This study explores the variables influencing Foreign Direct Investment (FDI) in Middle-Income Countries, highlighting the integration of the Ease of Doing Business Rankings (EoDB) and the Corruption Perception Index (CPI). The findings highlight the importance of reforming the tax system and administrative processes to improve the business climate and boost the economy. Additionally, improving human capital is crucial for a country’s competitiveness. Countries with higher HDI typically have better infrastructure, a skilled workforce, and greater social stability, making them more attractive to foreign investors. These implications suggest that each country must strive to enhance its economic environment. Specifically, China should focus on improving its performance in starting businesses and protecting minority investors. India and Indonesia need to streamline bureaucratic processes to facilitate business operations. Countries with low HDI, such as India, Bangladesh, and Myanmar, should prioritize improving their HDI to attract more foreign investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2376951 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2376951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2376951 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2387245_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Omar Ahmedqani Hussein Author-X-Name-First: Omar Ahmedqani Author-X-Name-Last: Hussein Author-Name: Khadija Shamsi Mohamed Author-X-Name-First: Khadija Shamsi Author-X-Name-Last: Mohamed Title: Renewable energy and globalization influence: assessing environmental degradation in Somalia Abstract: The pressing issue of environmental degradation underscores the urgent need for collective action to preserve and restore our planet’s delicate balance. This study investigates the relationships between environmental degradation, globalization, renewable energy adoption, economic growth, and domestic investment in Somalia from 1990 to 2020. It utilizes various statistical techniques, such as descriptive analysis, unit root tests, cointegration tests, ARDL analysis, FMOLS, and CCR, to examine short-term fluctuations and long-term patterns among these variables. The empirical findings reveal several key insights. Renewable energy plays a significant role in promoting environmental well-being, both in the short and long term. On the other hand, economic growth contributes to environmental degradation. Globalization has mixed impacts across different time frames, suggesting its potential to support environmental preservation in the long run. Domestic investment also has a modest positive influence on environmental sustainability. Based on these findings, the study recommends investing in renewable energy infrastructure and implementing sustainable growth strategies to mitigate environmental degradation. It emphasizes the importance of strengthening regulations and promoting eco-friendly practices to minimize adverse environmental impacts. Lastly, the study highlights the need to integrate environmental considerations into policy making processes and foster global solutions.Somalia is currently facing significant environmental and socio-economic challenges. Therefore, this study critically examines how renewable energy adaptation and globalization can mitigate the carbon dioxide emissions in Somalia. By applying advanced statistical techniques, this research revealed that renewable energy and globalization significantly enhance environmental sustainability while economic growth exacerbated environmental degradation in Somalia. The effects of the positive influence of domestic investment underscore the complexity of these dynamics, highlighting the significant role each individual and entity can play in shaping a sustainable future. The significance of this study lies in its actionable insights. It advocates for investment in renewable energy infrastructure in Somalia, implementing sustainable growth strategies, and integrating environmental considerations into policymaking in Somalia. This research highlights the need for strengthened regulations and eco-friendly practices and provides a vital roadmap for mitigating environmental degradation and fostering global environmental solutions. This study is of utmost importance in the current environmental and socio-economic context. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2387245 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2387245 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2387245 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2306767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdullah Al-Malki Author-X-Name-First: Abdullah Author-X-Name-Last: Al-Malki Author-Name: Mehdi Abid Author-X-Name-First: Mehdi Author-X-Name-Last: Abid Author-Name: Habib Sekrafi Author-X-Name-First: Habib Author-X-Name-Last: Sekrafi Author-Name: Nasareldeen Hamed Ahmed Alnor Author-X-Name-First: Nasareldeen Author-X-Name-Last: Hamed Ahmed Alnor Title: Does globalization matter for environmental sustainability? New evidence from the QARDL approach Abstract: Many researches have been conducted to provide theoretical explanations and/or empirical evidence of how globalization affects environmental quality. However, theoretical explanations have not reached consensus, empirical research has not yet clarified the possible effects in developing countries particularly. For Saudi Arabia from 1981 to 2018, we tested the environmental Kuznets curve hypothesis (EKC). We studied the impact of globalization on the ecological footprint (ECP) relying on the QARDL approach. Four globalization indicators are used namely: social (GLOBS), economic (GLOBE), political (GLOBP), and total globalization (GLOBG). Based on QARDL results, it appears that all quantiles show a statistically significant and negative sign for error correction parameter. These results affirm that the related variables and ecological footprint in Saudi Arabia are reverting to a long-term equilibrium. In the long-run, the results of the study suggest that GLOBG, as well as GLOBE, will lead to increased ECP across all the quantiles. However, the fluctuations in GLOBP and GLOBS negatively affect ecological footprint in higher quantiles. Additionally, the QARDL results confirmed that the Saudi economy has an inverted U-Shaped curve. In the short-run, ECP is negatively affected by four globalization indicators in middle and upper quantiles. Sustainable development and environmental policy can be advanced using the guidelines found in this research. Based on the findings, the government and political system in Saudi Arabia should pay more attention to global and economic globalization to achieve sustainable environmental goals in the long run. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2306767 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2306767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2306767 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2295754_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Asim Alshaikhmubarek Author-X-Name-First: Asim Author-X-Name-Last: Alshaikhmubarek Author-Name: Nada Kulendran Author-X-Name-First: Nada Author-X-Name-Last: Kulendran Author-Name: Lalith Seelanatha Author-X-Name-First: Lalith Author-X-Name-Last: Seelanatha Title: The Impact of COVID-19 on Stock Returns and Firm Characteristics in the Saudi Stock Market Abstract: This paper investigates the impact of the spread of COVID-19 on the Saudi stock market. More particularly, this study examines the implications of the recent coronavirus on the overall stock returns, sectoral stock returns, and the stock returns of specific firm characteristics: market capitalization, book-to-market ratio, profitability, investment growth, and Islamic compliance. The sample deployed in this study covers the weekly data from 3 March 2020 until 25 May 2021, with 62 observations for 183 stocks. For each firm characteristic, all the stocks in our sample were divided into three subsamples using the 35th and 65th quantiles as breakpoints, specifically to examine the implications of COVID-19 for different firm characteristics. Then, panel regression analysis and Wald tests were applied to test the devised hypotheses. A negative impact of COVID-19 was recorded for all market capitalization groups, and the impact was the same on small and large market capitalization stocks, whereas the worst was on medium stocks. The outcome also indicated that less profitable stocks were more vulnerable to COVID-19 than other profitability groups. Furthermore, the impact of COVID-19 on non-Islamic stocks was lower than that on Islamic stocks, which were affected the most by the contagion. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2295754 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2295754 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2295754 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431542_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhammad Husnain Author-X-Name-First: Muhammad Author-X-Name-Last: Husnain Author-Name: Shamrez Ali Author-X-Name-First: Shamrez Author-X-Name-Last: Ali Author-Name: Qaiser Munir Author-X-Name-First: Qaiser Author-X-Name-Last: Munir Author-Name: Ammar Jreisat Author-X-Name-First: Ammar Author-X-Name-Last: Jreisat Title: On shrinkage covariance estimators: how inefficient is 1/N strategy of covariance estimation for portfolio selection in foreign exchange market? Abstract: We investigate portfolio selection performance as in Markowitz by evaluating variance matrix estimation criteria in the currency market. This study challenges theoretically rigorous shrinkage covariance estimators using multiple evaluation metrics: systematic loss function, risk profile of minimum variance portfolios, Herfindahl index, financial efficiency, and concentration level. We assess out-of-sample performance across conventional models, factor models, linear shrinkage estimators, and equally weighted portfolios by applying mean-variance criteria and minimum variance framework to the 10 most traded currencies. Our findings reveal that mean-variance optimal portfolios are concentrated, counterintuitive, and highly sensitive to optimizer input choices in currency markets. We discovered that shrinkage estimators do not provide additional benefits to investors and fund managers regarding systematic loss function and minimum variance portfolio risk profiles. The research highlights critical limitations in traditional portfolio construction approaches, demonstrating that portfolios built using mean-variance criteria are prone to significant input data sensitivity and tend to create overly concentrated investments. Consequently, the study suggests that investors and fund managers should exercise caution when selecting covariance estimators and consider exploring more diversified strategies to optimize portfolio performance in foreign exchange markets.This study critically evaluates the efficacy of covariance estimators in optimizing portfolios within the foreign exchange market, highlighting limitations of traditional and sophisticated shrinkage methods. Through comprehensive analysis, it demonstrates that mean-variance optimal portfolios are prone to input sensitivity and concentration, offering little advantage to fund managers over simpler 1/N diversification strategies. With a comprehensive dataset spanning decades, the research provides actionable insights into minimizing estimation errors and improving portfolio stability. The findings challenge prevailing methodologies, emphasizing simplicity and diversification to enhance decision-making for investors, fund managers, and policymakers navigating the complexities of currency markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431542 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431542 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421894_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Phuong Thi Minh Nguyen Author-X-Name-First: Phuong Thi Minh Author-X-Name-Last: Nguyen Author-Name: Phuc Trong Ho Author-X-Name-First: Phuc Trong Author-X-Name-Last: Ho Author-Name: Hung Xuan Pham Author-X-Name-First: Hung Xuan Author-X-Name-Last: Pham Title: Impacts of seasonal climate variation on rice yield: Evidence from the Central Coast of Vietnam Abstract: This study investigates the impact of seasonal climate change on rice productivity in Vietnam’s Central Coast, using 26 years of data from 1996 to 2021. To achieve this objective, the study applies a Feasible Generalized Least Squares (FGLS) model to obtain robust estimates for the panel analysis. The findings reveal the consequences of climate variation on rice productivity throughout different seasons. Notably, increases in maximum temperature during the winter–spring season and minimum temperature during the summer–autumn season boost rice yields, while higher maximum temperatures in summer–autumn and minimum temperatures in winter–spring reduce yields. Specifically, a 1% increase in maximum temperature improves winter–spring yields by 1.66% but reduces summer–autumn yields by 1.01%, while a 1% rise in minimum temperature decreases winter–spring yields by 0.30% but enhances summer–autumn yields by 3.32%. In addition, increases in both maximum and minimum relative humidity positively impact yields. The study also finds that a 1% increase in maximum precipitation slightly reduces summer–autumn yields. These findings provide important insights for developing strategies to improve the resilience of rice production to climate change.This study aims to provide reliable scientific evidence on the impacts of seasonal climate change on rice productivity over an extended period of time in the Central Coast of Vietnam. Its findings can assist policymakers in proposing climate-adaptive farming measures to mitigate adverse effects on rice production and may also serve as a reference for regions with similar climates in other rice-producing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421894 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421894 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2293297_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Quynh Anh Do Author-X-Name-First: Quynh Anh Author-X-Name-Last: Do Author-Name: Anh Duc Do Author-X-Name-First: Anh Duc Author-X-Name-Last: Do Author-Name: Minh Huan Doan Author-X-Name-First: Minh Huan Author-X-Name-Last: Doan Author-Name: Quoc Hoi Le Author-X-Name-First: Quoc Hoi Author-X-Name-Last: Le Author-Name: Anh Duc Le Author-X-Name-First: Anh Duc Author-X-Name-Last: Le Author-Name: Thi Thanh Duong Nguyen Author-X-Name-First: Thi Thanh Duong Author-X-Name-Last: Nguyen Title: Spatial effects of foreign direct investment on wage inequality in Vietnam Abstract: This study analyzes the effects of foreign direct investment (FDI) on wage inequality in Vietnam by utilizing panel data from 63 provinces over the period 2010–2018. The spatial autocorrelation model is used in the study. Empirical results from the spatial econometric model reveal that FDI tends to increase wage inequality in localities and has direct and spatial effects. Economic growth has led to a reduction in the wage inequality between skilled and unskilled labor. The increase in the proportion of the skilled labor force reduces wage inequality in provinces with high human capital and developed education systems. The study results imply that the policy on attracting and utilizing FDI needs to be aligned with training and human capital development to ensure sustainable development. It is also necessary to emphasize professional training for the workforce to attract FDI. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2293297 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2293297 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2293297 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2422217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Suzie Adee Author-X-Name-First: Suzie Author-X-Name-Last: Adee Author-Name: Evan Lau Author-X-Name-First: Evan Author-X-Name-Last: Lau Author-Name: Shirly Wong Author-X-Name-First: Shirly Author-X-Name-Last: Wong Title: Mediating factors in retirement savings and well-being: a focused study on Sarawak Abstract: This study aims to examine the factors that influence societal savings habits and pre-retirement well-being. Triggered by the global trend of low personal interest rates, it seeks to illuminate how preparedness for retirement affects the overall quality of life and societal well-being. More specifically, the study pursues three (3) main objectives: 1) to identify the socio-demographic and behavioural elements that shape societal savings habits; 2) to determine the factors that affect individuals’ propensity to save; and 3) to assess the impact of savings behaviours on pre-retirement well-being, focusing on aspects such as happiness, prosperity, health, comfort, and security. We used the Partial Least Squares Structural Equation Model (PLS-SEM) with SMART-PLS to analyse these relationships. The results illustrate significant correlations among financial literacy, savings habits, financial risk tolerance, future time perspectives, retirement savings, and retirement well-being. These findings bolster the study’s conclusions, which are further supported by active survey participation.The research presented in this paper examines the critical intersection of retirement savings, individual well-being, and savings habits. In an era marked by economic uncertainty, understanding how savings habits impact long-term financial security and overall quality of life is of paramount importance. Our study delves into the complex dynamics that influence retirement saving decisions and their implications for individuals, families, and society as a whole. By exploring the relationship between savings habits and well-being indicators such as financial stress, mental health, and overall life satisfaction, we aim to provide insights that can inform policy interventions and financial literacy initiatives. The findings of this research have significant implications for public policy, financial institutions, employers, and individuals alike. By identifying barriers to effective retirement saving and highlighting strategies to promote greater financial resilience, we hope to contribute to the development of policies and programs that support retirement security for all segments of the population. Thank you for considering the public interest implications of our research and for your support in advancing our collective efforts to promote financial well-being and retirement security. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2422217 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2422217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2422217 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2383098_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohammed Gbanja Abdulai Author-X-Name-First: Mohammed Gbanja Author-X-Name-Last: Abdulai Author-Name: Mubarik Salifu Author-X-Name-First: Mubarik Author-X-Name-Last: Salifu Author-Name: Paul Bata Domanban Author-X-Name-First: Paul Bata Author-X-Name-Last: Domanban Title: Determinants of multi-dimensional women empowerment in Mali Abstract: This study assesses the dimensions and determinants of multidimensional women empowerment in Mali. It uses the Alkire Foster methodology and factor analysis to create different measures of multidimensional empowerment for 1691 consistent responses. Five indicators of empowerment are employed to create the multidimensional empowerment index. We found that women are multidimensionally disempowered for all the indicators used. At a deprivation cutoff of 2/5, 41.8% are multidimensionally disempowered, and 79.6% using the multidimensional disempowerment headcount. Also, we find that agency domain contributes significantly to the empowerment index. For the factor analysis method, two factors played a very important role in the creation of the empowerment index. Age of the respondent, wealth index, sex of the household head, educational status, and region of residence play an important role in determining empowerment in both approaches used in the study. The study concludes that the level of women empowerment in Mali is relatively low and that more policy efforts are needed to improve women empowerment. In view of these empirical insights, a number of policy recommendations are proposed to promote the empowerment of women in Mali. First, interventions should concentrate on the identified determinants, including the improvement of educational opportunities, particularly in areas where empowerment scores are lower. Second, it is essential to implement strategies aimed at wealth redistribution and economic inclusion to offset disempowerment resulting from economic disparities. Furthermore, the promotion of gender-balanced household dynamics through awareness campaigns and policy incentives could make a substantial contribution to women’s empowerment.This study evaluates multidimensional women empowerment in Mali, using data from 1,691 respondents. Employing the Alkire Foster methodology and factor analysis, it reveals that 41.8% of women are multidimensionally disempowered, with significant influences from factors such as age, wealth, household head gender, education, and region. The findings emphasize the need for policies enhancing educational opportunities, wealth redistribution, and gender-balanced household dynamics to improve women’s empowerment in Mali. These insights are crucial for informing effective policy interventions and promoting gender equality in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2383098 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2383098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2383098 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2308671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Doukouré Charles Fe Author-X-Name-First: Doukouré Charles Author-X-Name-Last: Fe Author-Name: Adou Christian Konin Author-X-Name-First: Adou Christian Author-X-Name-Last: Konin Author-Name: Akra Mohaye Marius N'Guessan Author-X-Name-First: Akra Mohaye Marius Author-X-Name-Last: N'Guessan Title: Economic convergence in the West African Economic and Monetary Union: a new analysis Abstract: This paper uses a structural approach to analyse economic convergence within the West African Economic and Monetary Union (WAEMU) countries. This Regional Economic Community has recorded several postponements of the convergence horizon defined by the Economic Commission. However, it is a framework that is supposed to lead to economic growth and living conditions. So, we estimate a structural convergence model over 1996–2021 for the WAEMU panel of countries. We apply the Generalized Moment Method to address the endogeneity issue in evaluating the coefficient. The analysis confirms no economic convergence within WAEMU countries during this period. This finding means that the economic structures of the WAEMU countries do not come closer over time. Therefore, policymakers must continue implementing initiatives to harmonise regional policies and reinvigorate the regional economic program. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2308671 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2308671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2308671 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2322889_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nusiebeh Nahar Falah Alrwashdeh Author-X-Name-First: Nusiebeh Nahar Falah Author-X-Name-Last: Alrwashdeh Author-Name: Umara Noreen Author-X-Name-First: Umara Author-X-Name-Last: Noreen Author-Name: Muhammad Hassan Danish Author-X-Name-First: Muhammad Hassan Author-X-Name-Last: Danish Author-Name: Rizwan Ahmed Author-X-Name-First: Rizwan Author-X-Name-Last: Ahmed Title: Bank capital and risk in emerging banking of Jordan: a simultaneous approach Abstract: Financial risk has received increasing attention from policymakers and financial institutions. Therefore, the present study examines the relationship between capital and risk for Jordanian banks by using data from 2010–2019. The study employs fixed effect, random effect, GMM, and 3SLS. Our findings show that the capital requirement regulation has a positive impact on capital and risk rates. Moreover, the study also concludes that Jordanian banks hold more than the minimum regulatory capital requirements laid down by Basel II, III, and the CBJ. The banking sector increases its capital adequacy by raising its liquidity and reducing its tendency to take risks. Our results indicate a highly significant negative relationship between Jordanian commercial bank capital and risk. Liquidity risk, ROA and stock market capitalization are positively related to bank capital. The results of the study suggest that Jordanian banks should be involved in higher-risk lending actions and help increase competition in the banking sector.The banking sector plays a vital role in economic growth and bank capital serves as a buffer at the time of economic shock. Similarly, risk management is also crucial for the sustainable financial sector and economic development. Thus, this study employs a simultaneous approach in developing a relationship between bank capital and risk in the Jordanian banking sector. Our findings show that the capital requirement regulation has a positive impact on capital and risk rates. Our results also indicate a highly significant negative relationship between Jordanian commercial bank capital and risk. Studying the association between capital and risk offers insights into how banks manage and reduce different risks, helping to develop efficient risk management strategies. After studying this relationship banks can also optimize their capital allocation strategies and can shed a light on how capital can affect the lending power and credit availability to boost the finance in industries and thus contribute to economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2322889 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2322889 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2322889 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2314887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhammad Bilal Khan Author-X-Name-First: Muhammad Bilal Author-X-Name-Last: Khan Author-Name: Umar Nawaz Kayani Author-X-Name-First: Umar Nawaz Author-X-Name-Last: Kayani Author-Name: Hummera Saleem Author-X-Name-First: Hummera Author-X-Name-Last: Saleem Author-Name: Ahmet Faruk Aysan Author-X-Name-First: Ahmet Faruk Author-X-Name-Last: Aysan Title: Loan guarantee, management earnings forecasts and cost of debt: evidence from Chinese manufacturing firms Abstract: One of the most pressing issues facing developing economies is how to provide expansion capital for existing businesses. However, this issue is more pressing in China, where private enterprises suffer significant financial constraints from capital market limitations. Therefore, the significance of obtaining third-party loan guarantees rises among private firms in the secondary loan market. This study investigates the relationship between loan guarantees and the firm’s cost of debt and the moderating effect of management earnings forecasts. We find that loan guarantees have a significant negative relationship with the firm’s cost of debt. However, a positive relationship between information asymmetry measures and loan guarantees is more pronounced, suggesting that loan guarantees reduce the significance of information asymmetry issues, which impair borrowing firms’ re-payment ability and increase the credit risk of guarantors and banks. In contrast, frequent and quality management earnings forecasts help firms to build their reputation in the market by reducing the concerns of information asymmetry, information risk, agency problems, and loan repayment with banks, which, in turn, benefit firms in reducing their cost of debt. Our study results are robust to the use of two-stage least square analysis, and Heckman two-stage treatment effect model. This work offers the latest contribution to the recent understanding of the effects of loan guarantees in reducing the cost of debt and the vital role of management earnings forecasts in firms’ growth.A firm’s loan guarantee is oftenrecognizedasauseful instrument for mitigating the risks involved with borrowing to firms that lack a solid credit history and auditing procedures. However, loan guarantees are frequently associated with riskier or lower-quality borrowing enterprises, which leads to serious information asymmetry problems. This, in turn, has a negative effect on the company’s reputation and exposes it to threats of bank and guarantor non-payment. Our empirical study looks at how loan guarantees might reduce debt costs by neglecting information asymmetry in the bank lending process. Furthermore, our findings provide empirical evidence of the substitution effect of management earnings forecasts over loan guarantees in lowering the firm’s cost of debt. The findings imply that both loan guarantee and management earnings forecasts have a negative impact on firms’ cost of debt in China. First, on the one hand, the loan guarantee lowers the cost of debt by ignoring information asymmetry, which results in adverse selection and ethical uncertainty concerns, both of which raise the default and litigation risks faced by financial institutions and clients. Second, management earnings forecasts have a substitution effect on funding injection into China’s bank loans. It may help firms improve their reputations, reducing informational asymmetries concerns such asunfavorableshortlisting and ethical inconsistency, and lowering their cost of debt in banks’ credit lendingprograms. The present study contributes to the most contemporary understanding of the impacts of loan guarantees on debt cost reductions and the critical role of management earnings forecasts in company expansion. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2314887 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2314887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2314887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2394491_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Olugbenga Michael Adewumi Author-X-Name-First: Olugbenga Michael Author-X-Name-Last: Adewumi Author-Name: Chukwuemeka Echebiri Author-X-Name-First: Chukwuemeka Author-X-Name-Last: Echebiri Author-Name: Andrew Adewale Alola Author-X-Name-First: Andrew Adewale Author-X-Name-Last: Alola Title: Circular business activities and economic performance optimization in EU countries: towards consumption footprint management Abstract: As circular business activity is a pivotal component of the European Green Deal, this study examines its impact on economic prosperity by examining how the model influences income levels. The investigation spans a panel of 27 European Union (EU) member countries from 2014 to 2023, factoring in the income effect of consumption footprint and public trust in governing institutions. Based on the system Generalized Method of Moments (GMM) estimators of the dynamic panel model, the results reveal that circular business activities enhance economic well-being. However, the interaction effect of consumption footprint limits the full potential of this enhancing effect. Moreover, as public confidence in government institutions improves, so does economic well-being. This perspective underscores the pivotal role of trust in bolstering the economic benefits of circular business activities, leading to more robust societal conditions. Overall, the study suggests that while circular business activities can improve economic well-being, efficient management of the consumption footprint is crucial for optimization. Its policy implication emphasizes balancing economic aspects with social, institutional, and environmental elements to enhance individual well-being. Thus, the findings contribute to the literature and provide valuable policy insights into circular economy models, opening up avenues for future consideration.This study highlights the significant role of circular business activities in enhancing economic prosperity within the framework of the European Green Deal. By analyzing data from 27 EU member countries between 2014 and 2023, the research demonstrates that while circular business practices positively impact economic well-being, their full potential is constrained by the interaction effect of consumption footprint. Additionally, it finds that increased public trust in government institutions further amplifies the economic benefits of circular activities. The study underscores the importance of managing consumption footprints and fostering institutional trust to optimize circular economy models’ economic and societal advantages. These insights offer valuable policy implications, emphasizing the need to integrate various factors to improve overall well-being. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2394491 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2394491 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2394491 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2312777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Isaac Doku Author-X-Name-First: Isaac Author-X-Name-Last: Doku Title: Is climate finance aiding food security in developing countries? A focus on Sub-Sahara Africa Abstract: This study seeks to find out whether climate finance (CF) geared toward 35 Sub Saharan Africa (SSA) countries is assisting to achieve food security in the continent. To achieve this objective, we adopted FAO’s classification of food security of 4 main dimensions: food availability, access, stability and utilization and use principal component analysis (PCA) to generate food security indexes corresponding to the different dimensions of food security. The data was analyzed using system generalized methods of moments (GMM) whereas panel quantile regression (PQR) was employed as a sensitivity analysis. Our findings show that climate finance is more useful in securing food availability but fails to enhance food access, stability and utilization. Further analysis shows that other factors such as foreign direct investment and government readiness have more impact in enhancing the different dimensions of food security whilst rural population, agricultural spending, agricultural land and capacity have more adverse effects on food security. Relevant policy implications based on our analysis are discussed.Global warming is a significant human concern. Despite minimal contributions to climate change, African countries suffer disproportionately due to limited resources for mitigation and adaptation to climate change. Industrialized economies, major contributors to climate change, have committed climate funds to aid less developed nations. Our study assesses the impact of climate finance on ensuring food security in 35 Sub-Saharan African countries, crucial given the region’s vulnerability to food scarcity due to climate change. Results reveal that while climate finance may promote food availability, it falls short in enhancing access, stability, and utilization. Other factors like government readiness, agricultural spending and foreign direct investment are found to be contribute to different dimensions of food security. Policy implications arising from our findings are discussed. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2312777 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2312777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2312777 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2413963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Camille Detondji Guidime Author-X-Name-First: Camille Detondji Author-X-Name-Last: Guidime Author-Name: Adama Diaw Author-X-Name-First: Adama Author-X-Name-Last: Diaw Author-Name: Barthélémy Biao Author-X-Name-First: Barthélémy Author-X-Name-Last: Biao Title: Exchange rates and trade balance in West African economy and monetary union countries: does the content of the traded goods matter? Abstract: This paper analyzes the role of the nature of traded goods in the effect of the real exchange rate on the trade balance in West African Economy and Monetary Union countries. Empirically, the estimation of the parameters of a distributed lag autoregressive model using the technique of dynamic common correlation estimators is carried out. The results show that, firstly, the low level of intra-industry trade comfort positive real exchange rate effect on trade balance. However, WAEMU countries export raw materials used by their foreign trading partners to manufacture products, which WAEMU countries import in turn; but the raw materials percentage used in the manufacture of those products is negligible to have a beneficial impact on trade balance. Secondly, foreign income levels are less favorable to the countries’ balance of trade, as partners have a preference for increasingly sophisticated goods that WAEMU countries do not produce. In terms of economic policy implications, a currency devaluation would have an expected positive effect if trade policy would encourage the consumption of goods and services containing, in their manufacturing process, a significant quantity of their exported products. This article contributes to the existing economic literature by taking into account the characteristics of traded goods in the analysis of the influence of the real exchange rate on the trade balance. A low content of exported goods in the manufacturing process of imported goods from a less advanced country could limit the rebalancing of its trade balance following a change in the real exchange rate.The importance of this research is to empirically show the significant role of the quantity of domestic goods contained in the manufacture of imported goods in studying the relationship between exchange rate changes and the trade balance. The implementation of a specific trade policy coupled with an exchange rate policy in favour of the transformation of primary products into semi-manufactured goods is important for the economy of WAEMU countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2413963 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2413963 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2413963 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kunal Saha Author-X-Name-First: Kunal Author-X-Name-Last: Saha Author-Name: Muneer Shaik Author-X-Name-First: Muneer Author-X-Name-Last: Shaik Title: Dynamic nexus between Sharia and ESG indices and ETFs in India Abstract: This study aims to uncover interdependencies between two distinctive but increasingly influential dimensions in contemporary finance, namely, Environmental, Social, and Governance (ESG) and Sharia guidelines. We examine the long-term association between ESG and Sharia indices, along with ESG and Sharia Exchange-Traded Funds (ETFs) for the Indian market. We do this by employing Cointegration, Vector Auto-regression (VAR), Granger causality and dynamic connectedness analyses. We found a lack of cointegration between both the ESG and Sharia indices and ETFs. Second, we observed bi-directional causality between the chosen ESG and Sharia index and ETF pairs. Subsequently, the level of dynamic connectedness was found to be consistently high. We find that ETFs are recipients of return spillovers from the indices. In terms of applicability of findings, traders can devise hedging strategies and short-term trading scenarios based on dynamic connectedness analysis. The lack of cointegration may be attributable to the difference in the underlying asset composition of ESG and Sharia indices and ETFs. This suggests that while Sharia-based instruments cannot be a substitute for ESG-based instruments, they can be seen as a complementary asset class. Finally, this complementarity can contribute to a greater understanding of how Islamic finance principles align or diverge from ESG considerations, providing valuable insights for investors, financial institutions, and policymakers.This study sheds light on the relationship between ESG and Sharia based financial instruments. By analysing data of ESG and Sharia based indices and ETFs from India, the research reveals that indices are transmitters and the ETFs are receivers of spillovers. The findings also show the dynamic nature of connectedness between instruments over time. Most importantly, both types of instruments can act as complementary asset classes for investors. Hence, these observations have significant ramifications for financial institutions who specialise in designing financial indices and investment instruments, such as ETFs. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409423 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409423 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409423 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2318974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Genevieve Gyasi Author-X-Name-First: Genevieve Author-X-Name-Last: Gyasi Author-Name: Joseph Magnus Frimpong Author-X-Name-First: Joseph Magnus Author-X-Name-Last: Frimpong Author-Name: Kwame Mireku Author-X-Name-First: Kwame Author-X-Name-Last: Mireku Title: Economic growth through global value chains; new insight from exchange rate effects on the African economy Abstract: The study investigated GVC and exchange rate comovements from 1990 to 2018. The study employed a continuous wavelet coherence procedure to investigate the time-frequency dependence of global value chain (GVC) participation and exchange rates relationship in Africa. We find from the study that there is interdependency between exchange rates and global value chain participation only in the very short term for all selected countries. The study finds interdependent and well-governed networks continue to experience muted effects of exchange rate effects on GVC participation while independent firms in countries participating in GVC forward integration are negatively impacted.The use of continuous wavelet coherence technique to monitor global value chain (GVC) participation levels amidst extreme market volatility offers unprecedented insights for both countries and firms. By enabling the measurement of interdependency between exchange rates and African economies’ participation in GVCs, this approach facilitates informed decision-making and risk management strategies. It empowers stakeholders to gauge the impact of macroeconomic variables, particularly exchange rates, on GVC involvement, thereby fostering adaptability and resilience in an ever-changing economic landscape. Ultimately, this innovation enhances the ability of nations and businesses to navigate volatile market conditions and optimize their engagement in global value chains. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2318974 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2318974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2318974 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2398308_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: The Editors Title: Correction Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2398308 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2398308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2398308 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Marida Nach Author-X-Name-First: Marida Author-X-Name-Last: Nach Author-Name: Ronney Ncwadi Author-X-Name-First: Ronney Author-X-Name-Last: Ncwadi Title: Evaluating BRICS as an optimum currency area: insights from SVAR modeling Abstract: The study evaluates the feasibility of BRICS (Brazil, Russia, India, China, and South Africa) countries to form an Optimum Currency Area (OCA) through the analysis of shock correlation within the OCA framework. Employing a structural vector auto regression (SVAR) model proposed by Blanchard and Quah, the analysis encompasses both external and domestic shocks affecting individual countries. The study employs four variables: world real GDP, domestic real GDP as a proxy for output, the real effective exchange rate, and the inflation rate as a proxy for price level, to estimate the shocks. Subsequent analysis includes ANOVA, impulse response function (IRF), and variance decomposition to discern shock magnitudes, adjustment dynamics, and underlying determinants of variability. Empirical results show that BRICS countries display symmetric responses to external shock, however, with overall different sources of variation in the responses to domestic supply, demand, and monetary shocks. The results of the analysis using the ANOVA test, IRF, and variance decomposition also highlight the nuanced disparities across BRICS countries in terms of demand, and monetary shocks, indicative of differences in transmission mechanisms and policy responses. The study underscores the implication of aligning exchange rate mechanisms and monetary policies in facilitating the convergence of shock levels, thereby fostering economic stability among BRICS countries.This study provides a critical analysis of the feasibility of BRICS countries forming an Optimum Currency Area (OCA) through the application of Structural Vector Auto Regression (SVAR) modeling. By analyzing the correlation and dynamics of both external and domestic macroeconomic shocks, the research highlights significant disparities in how these shocks affect BRICS countries. Despite these differences, the study identifies a strong symmetric response to external shocks. These findings underscore the challenges of aligning exchange rate mechanisms and monetary policies among these diverse economies, yet also reveal the potential for economic stability through coordinated policy responses to symmetric external shocks. This work is pivotal in informing policy decisions on deeper economic integration within the BRICS bloc. It also suggests that with careful policy design, particularly focusing on strengthening economic interdependencies and mitigating asymmetric shock, the BRICS bloc could enhance its economic stability and global influence. Therefore, the study also offers valuable insights into the feasibility of a common currency or enhanced economic integration for emerging economies considering monetary unions in a complex global financial landscape. The study’s recommendations provide a roadmap for BRICS countries to navigate the complexities of economic integration, making it a significant contribution to the field of international economics and regional development strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399321 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399321 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2409416_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ali Yusuf Hassan Author-X-Name-First: Ali Yusuf Author-X-Name-Last: Hassan Author-Name: Omar Ahmedqani Hussein Author-X-Name-First: Omar Ahmedqani Author-X-Name-Last: Hussein Title: Reducing carbon dioxide emissions in Somalia: do renewable energy and urbanization matter? Abstract: This study investigates the interplay between renewable energy Consumption, urbanization, and carbon emissions in Somalia, a region facing pressing environmental challenges. The study uses advanced econometric techniques like the ARDL model to uncover short- and long-term dynamics that impact environmental degradation. In the short term, this study found that renewable energy consumption and domestic investment have a significant negative correlation with carbon dioxide emissions, highlighting the immediate impact of environmental mitigation. Conversely, urban population dynamics have a modest immediate effect. In the long run, this study revealed that renewable energy consumption consistently correlates negatively with carbon emissions, indicating its potential to drive sustainable development and reduce reliance on carbon-intensive energy sources over time. However, the positive correlation between urban population and carbon emissions underscores the importance of addressing urbanization challenges to promote environmental conservation efforts. This study recommends policy interventions prioritizing renewable energy consumption and sustainable urban development to achieve long-lasting environmental sustainability in Somalia.Somalia is one of the African counties suffer climate change problems without contributions, This study provides valuable empirical evidence on the relationship between renewable energy consumption, urbanization, and carbon dioxide emissions in Somalia, addressing a significant gap in existing research. By employing advanced econometric techniques, such as the ARDL model and Granger causality tests, the research confirms that renewable energy and domestic investment play a critical role in reducing CO2 emissions, while urbanization and economic growth contribute to increasing emissions. These findings highlight the need for Somalia to prioritize investments in renewable energy infrastructure and sustainable urban planning to mitigate the adverse effects of carbon emissions. Additionally, the study's recommendations for policy interventions, including promoting cleaner energy sources, enhancing domestic investment, and raising environmental awareness, offer actionable insights that can drive Somalia toward achieving environmental sustainability and meeting its climate change goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2409416 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2409416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2409416 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2420218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Huong Lan Do Author-X-Name-First: Huong Lan Author-X-Name-Last: Do Author-Name: Hong Hai Ho Author-X-Name-First: Hong Hai Author-X-Name-Last: Ho Author-Name: The Cuong Mai Author-X-Name-First: The Cuong Author-X-Name-Last: Mai Author-Name: Thu Nga Nguyen Author-X-Name-First: Thu Nga Author-X-Name-Last: Nguyen Author-Name: Thai Son Nguyen Author-X-Name-First: Thai Son Author-X-Name-Last: Nguyen Title: Does ESG really matter to the bank’s stability in ASEAN countries? Abstract: On the rising interest in the sustainability and stability of commercial banks in ASEAN, we set out to examine the impacts of Environmental, Social, and Governance (ESG) activities on bank stability in this region. We build models based on signal theory, stakeholder theory, and overinvestment theory. Upon data collected from banks in the ASEAN from 2015 to 2022, we perform various econometric analyses, including system GMM (Generalized Method of Moments), to demonstrate that attending to ESG imposes an inverse effect on bank stability. It can be seen that the implementation of ESG in banks in ASEAN countries is at the expense of current sustainability. However, in the future, this relationship may be different. The findings support several implications for research and practice in the ASEAN banking environment.While vast evidence has been accumulated in developed countries on the positive contribution of ESG to the stability of the bank, little is found in developing countries. We find significant evidence to support that banks in developing countries should be cautious with spending on ESG activities since it consistently and significantly suppresses the overall stability of the bank. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2420218 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2420218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2420218 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2375643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tafirei Mashamba Author-X-Name-First: Tafirei Author-X-Name-Last: Mashamba Author-Name: Shenaaz Gani Author-X-Name-First: Shenaaz Author-X-Name-Last: Gani Title: Upstarts vs incumbents: the interaction between fintech credit and bank lending in Sub-Saharan Africa Abstract: This study analyzes how fintech credit affects bank lending in Sub-Saharan Africa (SSA) and how this relationship is influenced by financial inclusion measured by bank branch networks. We utilized the system GMM to examine data spanning 19 SSA economies from 2013 to 2019. This study finds that fintech credit has a mixed effect on bank lending in SSA, depending on how it is measured. When fintech is measured by total alternative credit (fintech and Bigtech credit), there is a negative and significant relationship between Fintech and bank lending in SSA economies, suggesting that some borrowers are shifting towards fintech options. However, we observe a positive and significant relationship when we focus solely on fintech credit, suggesting that fintech can complement traditional bank lending, potentially by expanding access to financial services. Furthermore, this study underscores the importance of the presence of physical banks. Fintech lending growth has a negative net effect on bank lending when traditional banks reduce their branch network. This suggests that physical branches remain crucial for financial inclusion, particularly in areas with a limited digital infrastructure. These insights offer valuable guidance for policymakers and industry leaders seeking to promote financial inclusion and stability in SSA’s evolving financial landscape.This study investigates the impact of credit provided by fintech players on lending activities of traditional banks and the moderating effect of financial inclusion proxied by bank branch density on this nexus. Using data from 19 sub-Saharan African economies and GMM for estimation, the study identified a mixed effect of fintech on bank lending. When fintech is measured by total alternative credit (fintech and Bigtech) the results show that fintech tends to reduce bank lending, suggesting that some borrowers are shifting towards fintech products potentially competing with traditional banks. However, fintech credit alone show a positive effect, suggesting a complimentary effect of fintech activities to enhance financial access. The study also shows that fintech lending negatively affects bank lending when banks reduce branch networks, emphasizing the importance of continued physical bank branches. Overall, this research highlights the complex interplay between fintech and traditional banking in Sub-Saharan Africa, providing valuable insights for policymakers and industry leaders seeking to promote financial inclusion and stability in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2375643 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2375643 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2375643 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2414236_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Linghui Yang Author-X-Name-First: Linghui Author-X-Name-Last: Yang Author-Name: Hamdan Amer Ali Al-Jaifi Author-X-Name-First: Hamdan Amer Ali Author-X-Name-Last: Al-Jaifi Author-Name: Kelvin Yong Ming Lee Author-X-Name-First: Kelvin Yong Ming Author-X-Name-Last: Lee Title: A dynamic bibliometric analysis of financial inclusion and happiness with CiteSpace Abstract: Financial inclusion facilitates the exchange of information, reduces transaction costs, and lowers the barriers to the access of financial services. However, how this affects happiness remains unknown. The purpose of this study is to make bibliometric analysis between financial inclusion and happiness by using CiteSpace and find frontiers in the future by reviewing the literature at CiteSpace. In this study, 335 samples spanning from 2003 to 2023 were selected from the database of Web of Science. By using CiteSpace software and bibliometric methods, in this study, we can draw a map of author cooperation, institutional cooperation, keyword co-occurrence analysis, cluster analysis, and emergent word analysis in this field. Future research should focus on the influence of financial behavior on the relationship between financial inclusion and happiness. Digital financial inclusion may be a crucial factor in future research worldwide. These findings may be used as a reference for governments in policymaking.This study explores the relationship between financial inclusion and happiness using a bibliometric analysis over the past 20 years. By mapping global research trends, it highlights how financial inclusion, especially digital financial services, influences well-being. The findings are useful for policymakers, researchers, and financial institutions to better understand the benefits and risks of financial inclusion, ensuring that access to financial services leads to improved happiness and financial well-being. This study also suggests the need for future research to focus on financial literacy and cross-country comparisons to enhance policy effectiveness. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2414236 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2414236 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2414236 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2386390_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ali Yassin Sheikh Ali Author-X-Name-First: Ali Yassin Author-X-Name-Last: Sheikh Ali Author-Name: Ali Abdukadir Ali Gutale Author-X-Name-First: Ali Abdukadir Ali Author-X-Name-Last: Gutale Author-Name: Mohamed Saney Dalmar Author-X-Name-First: Mohamed Saney Author-X-Name-Last: Dalmar Title: Biomass energy consumption and sustainable human development: the role of financial development in EAC member countries Abstract: Researchers are still in conflict on how biomass energy usage affects the environment, the economy, and human development. Moreover, since its inception, climate change has become one of humanity’s greatest challenges, inspiring massive efforts to lessen its effects and concentrate on sustainable development. This study examined the relationship between biomass energy consumption and sustainable human development in East African Community (EAC) member states between 1990 and 2019. This study uses econometric approaches to address the challenges of cross-sectional dependence and slope heterogeneity. We used the CIPS and CADF unit root tests together with the Westerlund cointegration test to address these issues. Additionally, Contemporaneous Correlation estimators (Feasible Generalized Least Squares – FGLS) and Panel Corrected Standard Errors – PCSE) and the Fully Modified Ordinary Least Squares (FMOLS) were employed. We also used the Dumitrescu-Hurlin panel causality test. Our analysis revealed that the East African Community (EAC) members’ sustainable human development (SHD) is threatened by biomass energy consumption (BEC), which has a coefficient of -0.920. The BEC-SHD nexus is found to be reversed by the moderating impact of financial development, with an interaction coefficient of 0.329. Finally, we successfully demonstrated the existence of a bidirectional causal relationship between BEC and SHD as well as BEC and EG.This study provides a thorough analysis of the complex connection between the use of biomass energy and the promotion of sustainable human development in the member states of the East African Community (EAC) during a span of 30 years (1990–2019). By employing sophisticated econometric techniques to tackle issues of cross-sectional dependence and slope heterogeneity, our research reveals a substantial adverse effect of biomass energy use on sustainable human development, as shown by a coefficient of −0.920. Significantly, the study demonstrates that financial development might alleviate this negative impact, indicating that measures targeted at improving financial infrastructure should encourage more sustainable utilization of biomass energy. The bidirectional causal linkages between biomass energy consumption, sustainable human development, and economic progress have been shown, highlighting the intricate nature of energy policy in the region. These insights are crucial for policymakers as they offer empirical information to inform the creation of strategies that effectively balance energy requirements with sustainable development goals. This ultimately promotes a more resilient and fair future for the East African Community (EAC). Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2386390 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2386390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2386390 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330431_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Stella Nyakudya Author-X-Name-First: Stella Author-X-Name-Last: Nyakudya Author-Name: Newettie Jambo Author-X-Name-First: Newettie Author-X-Name-Last: Jambo Author-Name: Pamela Madududu Author-X-Name-First: Pamela Author-X-Name-Last: Madududu Author-Name: Timothy Manyise Author-X-Name-First: Timothy Author-X-Name-Last: Manyise Title: Unlocking the potential: challenges and factors influencing the use of ICTs by smallholder maize farmers in Zimbabwe Abstract: The study aims to investigate the challenges faced by smallholder maize farmers and identify the pivotal factors influencing the adoption of ICTs in agriculture. A blend of descriptive and probit regression analytical techniques is applied by analyzing cross-sectional survey data from a selected multistage random sample of 155 maize farmers in Marondera Rural District, Zimbabwe. The study findings revealed that the foremost obstacles hampering ICT adoption include electricity shortages attributable to load-shedding and persistent communication network challenges. Additionally, it was observed that the utilization of mobile phones for agricultural purposes remains moderately low, while the use of computers in agriculture is strikingly minimal. The probit regression model results revealed that age, gender, access to credit, and extension contact are significant determinants for computer use in agriculture. Furthermore, critical influencers of mobile phone adoption for agricultural activities that were identified include farming experience, engagement in non-farm activities, credit access, remittances, and extension visits. The study recommends fostering an enabling environment to encourage farmers to embrace ICTs for agricultural purposes. To support this endeavor, the study advocates an improved agricultural training and extension system, with particular attention to less experienced and elderly farmers who may exhibit resistance to technological advancements. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330431 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330431 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2300924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Paul Bata Domanban Author-X-Name-First: Paul Bata Author-X-Name-Last: Domanban Title: Determinants of loan sizes in microfinance institutions: evidence from the Upper West Region of Ghana Abstract: The impact of microfinance institution (MFIs) activities on household revenue in Northern Ghana is of significant importance, particularly in light of the high levels of poverty in the region. The objective of this research is to explore the factors that influence the amount of loans granted to beneficiaries of three microfinance systems, namely the informal, semi-formal, and formal institutions, in the Upper West Region. This seeks to identify the factors that influence households’ credit access from microfinance systems. To achieve this objective, primary data collected through a questionnaire was analysed using the Ordinary Least Squares (OLS) estimation technique. The model was initially run using data from the three microfinance systems and then separately estimated for each system. The study found consistency in the variables that affect the amount of loans received by borrowers across all systems. Age, household size, interest rate charged by the institution, and group membership were found to have a negative relationship with the amount of loan received by borrowers. The study recommends that microfinance institutions in the Upper West Region focus on reducing the geographical distance between the institution and potential borrowers, providing access to microfinance information and education, and extending repayment periods to increase the loan amount borrowers receive. Moreover, the study suggests that microfinance institutions in the region should factor in the influence of interest rates on loan accessibility and adopt measures to counteract any negative consequences. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2300924 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2300924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2300924 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2381695_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Isaac Bawuah Author-X-Name-First: Isaac Author-X-Name-Last: Bawuah Title: Bank stability and economic growth in Sub-Saharan Africa: trade-offs or opportunities? And how do institutions and bank capital affect this trade-off? Abstract: PurposeThere are concerns that while stringent capital policy may enhance banks’ resilience, it may also have other unintended economic repercussions. This study contributes to this debate by investigating whether regulatory bank capital induces a trade-off between bank stability and economic growth and whether institutional quality affects this trade-off.Design/methodology/approachThe study tested the model empirically with data from 71 banks in 9 Sub-Saharan African (SSA) countries from 2007 to 2021, using several estimators such as the system generalised methods of moments (SGMM), fixed effects (FE), two-stage least square (2SLS) and the Bayesian methods.FindingsThis study discovers that regulatory capital can maintain bank stability and economic growth, as opposed to the concern that higher regulatory capital poses economic problems. This indicates no support for a capital-induced trade-off between bank stability and economic growth, but rather opportunities. Further, while institutional quality alone does not directly impact this link, it enhances the positive effects of regulatory capital on economic growth. The findings suggest the need for governments to ensure strong institutional and capital policies to achieve economic growth.Originality/valueThis study has explored the intricate relationship among banking sector activities, institutional mechanisms, and the economy. The trade-off model is novel in the SSA literature, providing deeper insights into integrating selective Basel III into institutional strategies to achieve bank stability and economic growth.By investigating whether high regulatory bank capital induces a trade-off between bank stability and economic growth, and the impact of institutional quality and bank capital on the relationship between bank stability/capital and economics in Sub-Saharan Africa, the study offers insights that high regulatory capital can promote bank stability and economic growth simultaneously. This addresses concerns that banks constrain credit to meet regulatory capital requirements, undermining economic growth. The findings, however, suggest that regulatory capital improves stability, allowing banks to finance the economy. In addition, by establishing that the positive impact of bank stability on economic growth is stronger at higher levels of bank capital and institutional quality, this study offers bank management, policymakers, governments and financial regulators insights to supervise effective capital regulations and enhance the poor institutional environment in SSA. This guidance is critical for promoting institutional reforms, cooperative capital regulation and strong financial supervisory oversight. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2381695 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2381695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2381695 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2376947_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Harold M. L. Utouh Author-X-Name-First: Harold M. L. Author-X-Name-Last: Utouh Author-Name: Felician Andrew Kitole Author-X-Name-First: Felician Andrew Author-X-Name-Last: Kitole Title: Forecasting effects of foreign direct investment on industrialization towards realization of the Tanzania development vision 2025 Abstract: PurposeThis paper aims to deepen understanding and knowledge regarding the impact of foreign direct investment (FDI) on the industrialization process. Many developing countries aspire to shift from agriculture-centric economies to achieve sustainable development through industrialization. Realizing this goal, however, has been challenging, prompting an examination of the sixty-year trends and effects of FDI on Tanzania’s industrialization trajectory.MethodologyThis study employs a comprehensive approach utilizing time series models, specifically the Vector Autoregressive (VAR) model and the Error Correction Model (ECM), to analyze the dynamic influence of FDI on industrialization. By forecasting the five-year trajectory of industrial growth and FDI inflows using data from the Bank of Tanzania and the National Bureau of Statistics spanning 1960 to 2020, this methodological framework aims to provide a nuanced understanding of the FDI-industrialization relationship, contributing valuable insights to the economic development discourse.FindingsThe study’s results highlight the significant role of FDI in shaping both short- and long-term industrial progress, which is critical to advancing Tanzania’s industrialization goals. Conversely, factors like exchange rates predominantly impact the short-term industrial landscape. Forecasts from the analysis indicate a projected decline in both FDI and industrialization from 2020 to 2022, followed by a notable upturn from 2022 to 2025. This underscores FDI as a key driver for integrating agriculture-based economies into global value chains, facilitating economic upgrading through capital accumulation—a fundamental catalyst for sustained industrialization. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2376947 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2376947 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2376947 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2347026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muazu Ibrahim Author-X-Name-First: Muazu Author-X-Name-Last: Ibrahim Author-Name: Samuel Adams Author-X-Name-First: Samuel Author-X-Name-Last: Adams Author-Name: Xuan Vinh Vo Author-X-Name-First: Xuan Vinh Author-X-Name-Last: Vo Author-Name: Dennis Boahene Osei Author-X-Name-First: Dennis Boahene Author-X-Name-Last: Osei Title: Accelerating innovation in industrialized countries: how relevant is the interaction between financial development and environmental factors? Abstract: The impact of countries’ levels of financial sector development in influencing innovation and environmental quality cannot be overemphasized. However, studies on the tripartite relationships among financial sector development-innovation-environmental quality have produced mixed results, necessitating further research. This study, therefore, aims to investigate the impact of financial sector development on innovation and examine how financial sector development moderates the impact of environmental factors in influencing innovation. Relying on panel data spanning 1991–2014 for 27 selected industrialized countries, findings from the system generalized method of moment (GMM) suggest that higher financial development robustly increases innovation. Further evidence also shows that while higher energy consumption, renewable energy, and carbon dioxide emissions spur innovation, increases in ecological footprint lower innovations. However, a well-developed financial sector dampens the negative impact of ecological footprint on innovation while propelling the innovation-enhancing effect of carbon dioxide emissions and energy consumption with no apparent impact on renewable energy. A key implication of the findings is that financial development has a far more significant effect on innovation in countries with high environmental degradation and energy consumption.In addition to examining to the effect of financial sector development on innovation, this study examines how financial sector development mediate the impact of environmental factors in influencing innovation in industrialized countries. We find that higher financial development and ecological footprint individually promote increases and decreases innovation respectively. However, a well-developed financial sector reduces the negative effect of ecological footprint on innovation. This study is significant and makes a case for countries to develop their financial sectors as a way of curbing environmental pollution. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2347026 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2347026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2347026 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2385655_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Basil Msuha Author-X-Name-First: Basil Author-X-Name-Last: Msuha Author-Name: Luitfred D. Kissoly Author-X-Name-First: Luitfred D. Author-X-Name-Last: Kissoly Title: Impact of productive social safety net on households’ vulnerability to food insecurity in Tanzania Abstract: The effectiveness of social safety nets (SSNs) as anti-poverty policy instruments is increasingly attracting attention in development discourse. Previous studies on their impacts have mainly considered outcomes other than vulnerability, leaving a gap in the knowledge and literature. We use the Tanzanian 2017–18 Household Budget Survey dataset, comprising 9,463 households, to evaluate the impact of the productive social safety net (PSSN) program on households’ vulnerability to food insecurity (VFI). The VFI is evaluated using the vulnerability as expected poverty (VEP) approach, whereas the impact is estimated using the Instrumental Variable (IV) approach. We found evidence consistent with the significant impact of PSSN on the VFI. Curiously, the estimated impacts are greater for households enrolled in conditional cash transfer (CCT) and public works (PW) combined, implying that a package of CCT and PW is likely to have a greater impact on vulnerability reduction space. Overall, the results provide evidence in support of policies that encourage wider expansion of SSNs as a policy instrument for assisting extremely poor households in moving out of the chronically poor and the risk of falling or remaining food insecure in the future.Social safety nets are widely used in sub-Saharan Africa to address persistent poverty. However, despite holding the premise of poverty and vulnerability reduction, opponents criticize them as short-term measures and wasteful use of limited public resources, with an insignificant impact on poverty reduction. Previous research has primarily concentrated on evaluating ex post evidence, with little attention given to ex ante evidence. Both types of evidence are crucial for determining the effectiveness of anti-poverty policy interventions because poverty is a dynamic phenomenon that can change over time. We drew on the Tanzanian 2017-18 Household Budget Survey dataset, comprising 9,463 households, to evaluate the impact of the productive social safety net (PSSN) program on households’ vulnerability to food insecurity, considering the role of conditional cash transfer (CCT) and public works (PW) schemes in the vulnerability reduction space. The vulnerability to food insecurity is estimated using vulnerability as expected poverty, whereas the impact is estimated using the instrumental variable (IV) approach. Findings indicated that social safety nets significantly reduced households’ vulnerability to food insecurity, with CCT and PW combined having more impact than CCT alone. The findings imply that social safety nets are effective in reducing poverty and vulnerability, and combining CCTs and PWs may have a significantly greater impact than when the two are separated. Consequently, it is quite shortsighted to view social safety nets as merely short-term palliatives, wasting money or squandering scarce public resources, and doing little to overcome the problems of poverty and food insecurity. The significance of this study lies in its endeavor to broaden the range of existing literature on the effectiveness of social safety nets by incorporating ex ante analysis. This knowledge and understanding are helpful in expanding or designing effective social safety nets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2385655 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2385655 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2385655 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2367368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdulrhman Alqurayn Author-X-Name-First: Abdulrhman Author-X-Name-Last: Alqurayn Author-Name: Nada Kulendran Author-X-Name-First: Nada Author-X-Name-Last: Kulendran Author-Name: Ranjith Ihalanayake Author-X-Name-First: Ranjith Author-X-Name-Last: Ihalanayake Title: An event study of potential insider trading in the Saudi stock market Abstract: This study assesses the level of potential insider trading on the Saudi stock market (Tadawul) before and after the introduction of financial reforms. The level of potential insider trading is estimated by employing the market cleanliness measure (MCM) which determines the proportion of significant announcements (SAs) that were preceded by abnormal pre-announcement price movements (APPMs). The analysis was carried out using an event study approach to gauge the impact of an event on a security return. The market model is used to estimate the expected return which is subsequently compared with the actual return. The findings suggest the existence of significant abnormal returns surrounding 128 out of 1,958 unscheduled announcements made by firms listed on Tadawul from 2011 to 2020. The MCM shows that 56.36% of SAs were preceded by APPMs during the pre-financial reforms period whereas the ratio dropped to 45.2% over the post-financial reforms period. Although the findings suggest a reduction in the MCM by 11.16%, the statistics for the subsequent period was not statistically lower than the preceding period. The present study establishes a fundamental basis for tracking the efficacy of new regulations in deterring insider trading activities. This study provides empirical evidence and implications that can be taken into consideration by all parties concerned with illegal insider trading and market integrity.In view of the significance of market integrity and fairness, it is important to identify the consequences of impairments to market integrity and insufficient deterrence of insider trading. The findings of the study may be beneficial in driving regulators’ enforcement mechanisms for strengthening market surveillance and combating market misconduct by more actively implementing disciplinary actions. In addition, sequential reviews and assessments have been called for since the launch of Saudi Vision 2030 to ensure the delivery of its financial reform plans. Apart from its policy implications, the study is of interest to policymakers as it offers a foundation for regulatory bodies to determine whether further regulations are needed to strengthen regulatory performance and promote market discipline. Second, the results may be of interest to firms seeking to ensure proper functioning to accurately maintain material-sensitive information and regulate its release through appropriate channels. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2367368 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2367368 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2367368 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2398737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Emad Awadallah Author-X-Name-First: Emad Author-X-Name-Last: Awadallah Title: Advancing human and social dimensions in balanced scorecards for GCC corporations: a nuanced approach Abstract: In today’s corporate world, where accountability extends beyond mere economic output to embrace social, environmental, and cultural contributions, it is imperative to reevaluate traditional performance measurement systems. This research emphasizes the critical need to embed human and social metrics into these systems. This need is particularly pronounced in the dynamic corporate world, where Environmental, Social, and Governance (ESG), Diversity, Equity, and Inclusion (DEI) criteria and sustainability imperatives are increasingly at the forefront. Rooted in Stakeholder Theory, this study contends that corporations must broaden their performance metrics. Such integration is essential to maintaining competitiveness, responsibility, and relevance in a culturally diverse and rapidly changing environment. Our empirical investigation involved 89 GCC firms and 201 senior executives, alongside 21 semi-structured interviews from the same pool of senior executives who had completed the survey. The findings highlight a significant gap between existing performance measurement frameworks and the demands of the contemporary business ethos, marked by the sociocultural nuances of the GCC. A notable trend among participants was the desire for more comprehensive metrics within the BSC that genuinely reflect a firm’s societal impact. However, this ambition faces significant barriers, including resistance to change, training and development needs, data availability and quality, and the alignment of these metrics with overarching organizational strategy. These findings emphasize the complex yet crucial task of advancing the human and social dimensions in BSCs, presenting both opportunities and challenges for GCC corporations in their journey toward more inclusive and comprehensive performance measurement.This research provides significant insights into the evolving nature of performance measurement systems by integrating human and social dimensions within the Balanced Scorecard (BSC) framework for corporations in the Gulf Cooperation Council (GCC) region. The study’s findings highlight a critical gap in current performance metrics, which often overlook the importance of Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) considerations. By employing both quantitative and qualitative methods, this research underscores the necessity for GCC firms to broaden their performance evaluation criteria to remain competitive and socially responsible in a rapidly changing business landscape. The implications of this study are profound, offering actionable recommendations for organizations to enhance their strategic alignment and operational efficiency by incorporating broader, more inclusive metrics. This work contributes to the global discourse on sustainable business practices and provides a model for other regions aiming to integrate comprehensive performance measures into their strategic frameworks. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2398737 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2398737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2398737 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426535_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bashir Mohamed Osman Author-X-Name-First: Bashir Mohamed Author-X-Name-Last: Osman Author-Name: Abdillahi Mohamoud Sheikh Muse Author-X-Name-First: Abdillahi Mohamoud Sheikh Author-X-Name-Last: Muse Title: Predictive analysis of Somalia’s economic indicators using advanced machine learning models Abstract: Accurate Gross Domestic Product (GDP) prediction is essential for economic planning and policy formulation. This paper evaluates the performance of three machine learning models—Random Forest Regression (RFR), XGBoost, and Prophet—in predicting Somalia's GDP. Historical economic data, including GDP per capita, population, inflation rate, and current account balances, were used in training and testing. Among the models, RFR achieved the best accuracy with the lowest MAE (0.6621%), MSE (1.3220%), RMSE (1.1497%), and R-squared of 0.89. The Diebold-Mariano p-value for RFR (0.042) confirmed its higher predictive accuracy. XGBoost performed well but with slightly higher error, yielding an R-squared of 0.85 and p-value of 0.063. In contrast, Prophet had the highest forecast errors, with an R-squared of 0.78 and p-value of 0.015. For enhanced interpretability, SHapley Additive exPlanations (SHAP) were applied to RFR, identifying lagged current account balance, GDP per capita, and lagged population as key predictors, along with total population and government net lending/borrowing. SHAP plots provided insights into these features' contributions to GDP predictions. This study highlights RFR's effectiveness in economic forecasting and emphasizes the importance of current and lagged economic indicators.This study presents a critical advancement in economic forecasting for Somalia by comparing the performance of three machine learning models—Random Forest Regression, XGBoost, and Prophet—in predicting Gross Domestic Product (GDP) based on historical economic data. The findings underscore the superior accuracy of the Random Forest Regression model, which yielded the lowest error rates and highest interpretability through SHapley Additive exPlanations (SHAP). Key economic indicators, including lagged current account balances, GDP per capita, and population data, were identified as significant predictors of GDP. By enhancing the accuracy and interpretability of GDP forecasts, this research provides valuable insights for policymakers, aiding in data-driven economic planning and policy formulation to support sustainable development in Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426535 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426535 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399956_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Reenu Kumari Author-X-Name-First: Reenu Author-X-Name-Last: Kumari Author-Name: Sunil Kumar Singh Author-X-Name-First: Sunil Kumar Author-X-Name-Last: Singh Author-Name: Shinu Vig Author-X-Name-First: Shinu Author-X-Name-Last: Vig Title: Analyzing the association between crude oil price volatility and economic growth in OECD economies Abstract: This research has sought to determine how the crude oil price volatility (COPV) relates to economic growth (EG) using the case of the OECD countries between 2000 and 2022. Therefore, this article employs various panel data estimation strategies: random effect regression, fixed effect regression, dynamic panel data estimation, one-step system GMM and dynamic panel data estimation; two-step system GMM. The chosen time domain consists of oil-producing and consuming major countries within the OECD. The key findings of the study suggest that COPV has adverse effects on the growth of OECD economies. This would consequently mean that the knowledge of how volatility in crude oil prices (COPs) could affect very influential economic performance is of paramount importance and might bring out certain vital challenges that could be brought up by oil market volatility. The article ends with a few policy suggestions that may assist in mitigating the adverse impact of exogenous, unpredictable fluctuations in oil prices on the EG of the countries of the OECD.This research provides critical insights into the relationship between crude oil price volatility (COPV) and economic growth (EG) within OECD countries, offering significant contributions to macroeconomic theory and policy formulation. By employing robust panel data estimation techniques, including dynamic panel data analysis and system GMM, the study examines the adverse effects of COPV on the economic performance of both oil-exporting and oil-importing nations over a 23-year period. The findings are particularly relevant for policymakers in oil-dependent economies, where economic stability is more vulnerable to oil price fluctuations. The research challenges traditional economic models by highlighting the asymmetric and nuanced nature of oil price effects, emphasizing the need for tailored risk management strategies and macroeconomic policies to mitigate the unpredictable impacts of COPV on growth. The theoretical advancements made in understanding the complex interplay between oil prices, COPV, and economic growth extends the existing knowledge in macroeconomics, international trade, and econometrics. These insights can be leveraged to enhance economic resilience in the face of volatile global oil markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399956 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399956 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2344122_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abhishek N Author-X-Name-First: Abhishek Author-X-Name-Last: N Author-Name: Habeeb Ur Rahiman Author-X-Name-First: Habeeb Author-X-Name-Last: Ur Rahiman Author-Name: Neethu Suraj Author-X-Name-First: Neethu Author-X-Name-Last: Suraj Author-Name: Abhinandan Kulal Author-X-Name-First: Abhinandan Author-X-Name-Last: Kulal Author-Name: Ashoka M L Author-X-Name-First: Ashoka Author-X-Name-Last: M L Author-Name: M. S. Divyashree Author-X-Name-First: M. S. Author-X-Name-Last: Divyashree Author-Name: Swapna Raghupathi Author-X-Name-First: Swapna Author-X-Name-Last: Raghupathi Title: Renewable energy initiatives by corporates and sustainable development – a mediation analysis Abstract: Corporate efforts in eradicating environmental negativities are a significant aspect that is playing a vital role to contribute sustainable development. Renewable energy initiatives by corporations are also a trending effort through which they can promote the generation and consumption process of clean energy that helps to conserve non-renewable natural resources and contributes to the same for future generations. Therefore, the study followed both quantitative and qualitative approaches to achieve the objectives. The qualitative approach consists of content analysis of earlier literature and theories and focus group discussions for finalizing the research instrument. The research instrument was distributed to managers and academicians through e-forms, 271 responses were received and 253 completed responses were considered for further analysis. The study employed descriptive statistics, structural equation modelling, and mediation analysis techniques to draw conclusions based on the objectives. The results of the one-sample t-test revealed that the respondents positively opined that renewable energy initiatives by corporations influence sustainable development. Further, the results of structural equation modelling and mediation analysis confirmed the influence of such initiatives have an indirect influence on sustainable development, mediated by the environmental, social, and economic aspects. The outcomes of this study help industries to know the importance of such initiatives and provide inputs to design their business models based on such initiatives and also guides to frame the policies to align their operations with sustainability. Further, the outcome also helps to correlate complex relationships between corporations’ actions and sustainable development goals. Lastly, the study contributes to the existing body of knowledge on the intersection of corporations’ initiatives, renewable energy, and sustainable development. Advancing the research in this field paves the way for future research and to frame policies for fostering sustainable business practices and addressing environmental issues.The study focuses on stakeholders’ perceptions on Renewable Energy Initiatives (REIs) by corporate entities and their impact on sustainable development. Many statistical experiments have been done and evidentially found that there is a positive perception among respondents on the influence of REIs by corporates on sustainable development. This influence is statistically mediated by environmental, social, and economic aspects. However, the study acknowledges limitations such as subjective perceptions, lack of assessment of long-term effects, and did not focus the actual practices of business entities. The outcome of the study offers insights for policymakers to frame guidelines and frameworks for REIs, including company disclosure requirements, aligning national strategies with sustainability goals, and providing subsidies and incentives for such initiatives. This can lead to better monitoring, transparency, and coordinated efforts towards sustainability.The corporates can use this outcome as evidence while making decision on engaging in REIs, contributing to environmental, social and economic sustainability. The study also highlights the significance of disclosing such information in their reports to enhance accountability and transparency. And also helps in building corporate image and leadership in the market.From the outcome of the current study, future studies can build upon existing theories like stakeholder theory and institutional theory. This can lead to a better understanding of how stakeholder interests and institutional pressures influence corporate decision-making regarding REIs.The study also has significance in offering suggestions in developing sustainability frameworks to incorporate various factors beyond REIs alone, such as water usage, waste management, and supply chain sustainability. This would provide more comprehensive insights into corporate sustainability practices and their impacts. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2344122 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2344122 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2344122 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2285068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Biru Gelgo Dube Author-X-Name-First: Biru Author-X-Name-Last: Gelgo Dube Author-Name: Adeba Gemechu Gobena Author-X-Name-First: Adeba Author-X-Name-Last: Gemechu Gobena Author-Name: Amsalu Bedemo Beyene Author-X-Name-First: Amsalu Author-X-Name-Last: Bedemo Beyene Title: Distortion of agricultural incentives in East Africa: effects on agricultural value added Abstract: This study examines the effects of distortion of agricultural price incentives on agricultural value added in East Africa. The World Bank, IFPRI, FAO, and CSP are the sources of data. The dataset ranges from 1981 to 2018, and the error-corrected LSDV model is used to analyze the data. The results indicate that agricultural price incentives have positive and significant effects on agricultural value-added. Aggregate nominal assistance coefficient, exportable agricultural products nominal assistance coefficient, and nominal rate of protection have increased agricultural value-added significantly. Agricultural price incentives targeting different levels of value addition have larger effects than those targeting aggregate outputs. This implies that agricultural incentive policies and market conditions in support of local producers are vital to enhancing AVA in East Africa. Besides, larger areas of arable land, lower agricultural employment, a smaller population size, a larger GDP, less spending on education, and a better-performing polity contribute to a significant increase in the regional agricultural value added. The results generally imply that agricultural price incentives are vital to accelerating agricultural value addition in East Africa. Governments in this region should thus consider revising agricultural policies in a pro-agricultural way to further accelerate regional growth in agricultural value-added. Enhancing agricultural price support needs to be a crucial element of policy revisions in the region.In East Africa, agriculture is the main source of employment for a large section of the population. However, agricultural incentives have been reportedly distorted against agriculture, and sectoral income has been low. Consequently, farmers’ income from agricultural value addition has been low. This study reports the effects of the distortion of agricultural incentives on agricultural value added in East Africa. The study shows that favorable agricultural incentives enhance agricultural value-added. The findings have strong implications for the region’s smallholders, who are the subject of heavy taxation, either directly or indirectly. It will have far-reaching consequences for the poor, who rely on agriculture for a living. In particular, the findings influence regional anti-agricultural policy design, which is vital for the regional goal of achieving inclusive growth and structural transformation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2285068 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2285068 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2321811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Yizhou He Author-X-Name-First: Yizhou Author-X-Name-Last: He Author-Name: Tae Hwan Yoo Author-X-Name-First: Tae Hwan Author-X-Name-Last: Yoo Title: Financial development impact on domestic investment: does income level matter? Abstract: Financial development significantly bolsters a country’s economic growth and resilience. Despite increasing focus on the relationship between financial development and economic growth, few studies examine the impact of financial development on domestic investment across countries’ income levels. Therefore, this study employs the system Generalized Method of Moments estimator and the Pooled Mean Group estimator to investigate this relationship, utilizing a panel of 152 countries from 1980 to 2021. The empirical findings affirm that financial development positively influences investment performance until a specific threshold over time. However, while increasing financial development benefits investment, further deepening the financial sector may eventually diminish its impact on domestic investment. Specifically, the benefit of investment growth remains valid only up to a threshold of 0.5147, beyond which it becomes a hindrance. In the short run, financial development changes do not substantially impact investment. Additionally, the marginal effect of financial development on investment is more pronounced in low- and middle-income countries. These empirical findings provide valuable reference for enhancing financial development to foster investment growth.Investment is pivotal for sustaining long-term economic growth, fostering development, expanding market access, promoting innovation, and reducing transaction costs. This research aims to examine the impact of financial development on domestic investment across countries with varying income levels. Utilizing the system generalized method of moments (GMM) and the pooled mean group (PMG) estimator, the study analyzes a panel of 152 countries from 1980 to 2021. The findings reveal a positive influence of financial development on investment performance, particularly up to a certain threshold in the long run. Importantly, as countries’ income levels rise, the significance of financial development on investment performance becomes more pronounced in low- and middle-income countries. However, with the deepening of the financial sector, its effect on domestic investment may eventually diminish. These results underscore the importance of considering the optimal level of financial development to foster investment growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2321811 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2321811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2321811 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2386130_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Moses G. Chamisa Author-X-Name-First: Moses G. Author-X-Name-Last: Chamisa Author-Name: Tafirenyika Sunde Author-X-Name-First: Tafirenyika Author-X-Name-Last: Sunde Title: Key determinants of tax revenue in Zimbabwe: assessment using autoregressive distributed lag (ARDL) approach Abstract: The study investigates the determinants of tax revenue in Zimbabwe using the ARDL approach for the period 1980 to 2022. This study aims to offer a thorough summary of the different factors that influence tax revenue within the framework of economic and social factors. The variables included in the analysis are GDP growth, the share of agriculture in GDP, private consumption expenditure, inflation, foreign direct investment, real interest rates, trade openness, shadow economy and population growth. The results indicate that private consumption expenditure and share of agriculture in GDP negatively and significantly impact tax revenue in the long run. GDP growth, inflation, foreign direct investment and real interest rates exhibit a positive but insignificant impact on tax revenue. Trade openness, shadow economy and population growth are negatively and insignificantly related to tax revenue. The short-run analysis indicates that lagged tax revenue, GDP growth, private consumption expenditure, inflation, and trade openness significantly impact tax revenue, while the share of agriculture in GDP and the shadow economy significantly hinder tax revenue. Real interest rates and population growth have positive but insignificant impacts on tax revenue. The study’s findings provide valuable guidance to policymakers in formulating policies and strategies that enhance tax revenue collection and support the government’s domestic resources mobilisation agenda by uncovering the relationships between tax revenue and its determinants.This research paper provides an in-depth analysis of the determinants of tax revenue in Zimbabwe from 1980 to 2022 using the Autoregressive Distributed Lag (ARDL) approach. By examining various economic and social factors, such as GDP growth, private consumption expenditure, the share of agriculture in GDP, inflation, foreign direct investment, and the shadow economy, the study uncovers both short-term and long-term relationships between these variables and tax revenue. The findings have significant implications for policymakers, offering valuable guidance on enhancing tax revenue collection and supporting Zimbabwe’s domestic resource mobilisation agenda.The research offers crucial insights into the factors influencing Zimbabwe’s tax revenue performance, which is vital for economic stability and government prosperity. By identifying both the positive and negative impacts of various economic and social factors on tax revenue, the study provides policymakers with a robust foundation for designing effective fiscal policies. The findings emphasise the need for targeted strategies to enhance tax compliance, broaden the tax base, and address challenges the shadow economy poses. Additionally, the research contributes to the broader understanding of tax revenue dynamics in developing countries, making it a valuable resource for economists, analysts, and policymakers working in similar contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2386130 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2386130 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2386130 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2386110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thi Thuy Hang Le Author-X-Name-First: Thi Thuy Hang Author-X-Name-Last: Le Author-Name: Nga Thi Hang Phan Author-X-Name-First: Nga Author-X-Name-Last: Thi Hang Phan Title: Material footprint, economic growth, and climate change in emerging Southeast Asian markets Abstract: The trade-off between environmental degradation and economic growth is occurring at various global scales due to the use of non-renewable energy. In developed countries, the majority of this issue has been the focus of research and attention. Currently, there is a research gap regarding the material footprint in the relationship between economic development and climate change in emerging markets. This research used a Panel Vector Autoregression (PVAR) model to analyze the causal effects of foreign direct investment, economic development, and material footprint in emerging Southeast Asian economies using Generalized Method of Moments (GMM) regression. This analysis employs five variables, namely the Annual Growth Rate of Real GDP per Capita at Constant 2015 $ (GDP), Carbon Dioxide Emissions (CDE), Material Footprint (MF), Direct Economic Loss Attributed to Disasters (DEL), and Domestic Material Consumption (DMC). The study’s data collection spans from 2000 to 2021. The results of this study provide evidence for the existence of correlations between economic phenomena and climate change in Southeast Asian nations. Material footprints and energy consumption contribute to environmental deterioration. Economic expansion necessitates acknowledging the trade-off that arises from the increased CO2 emissions released into the environment. A 1% increase in economic growth leads to the release of more than 9% of CO2 emissions into the environment. Conversely, there is a significant relationship between the amount of environmental pollution and the material footprint. This indicates that the growing consumption of input materials and the inefficient use of these resources are contributing to environmental pollution in rising economies. Natural catastrophes account for more than 3% of the economy’s CO2 emissions. Given the ongoing efforts to lessen the impact of climate change, the study recommends that policy solutions concentrate on restructuring economic growth and improving energy efficiency in industrial operations.This research supports the government’s consideration of implementing a green economy and moving towards sustainable development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2386110 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2386110 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2386110 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Negusie Abuhay Mengistu Author-X-Name-First: Negusie Abuhay Author-X-Name-Last: Mengistu Title: Farmer’s adoption of indigenous knowledge-based off-farm and non-farm livelihoods and its determinants in Takusa Woreda, North-Western Ethiopia Abstract: Adoption of indigenous knowledge has a significant role in supporting the agricultural production system and diversification of off-farm and nonfarm livelihood activities. However, most studies focused on indigenous farming livelihoods and there is a knowledge gap in the literature and was not studied in the study area. Therefore, this study has assessed determinants of farmers’ adoption of indigenous knowledge-based off-farm and non-farm livelihoods in Takusa woreda, Northwestern Ethiopia. Both quantitative and narrative qualitative data were collected from both primary and secondary sources. Data were collected by using Questionnaire, key informants, focus group discussions, and other secondary sources. The study employed multistage sampling techniques. The descriptive results showed that about 17.68, 19.82, and 18.6% have adopted indigenous knowledge-based off-farm, non-farm, and both off-farm and non-farm livelihood activities respectively. Depending on their indigenous knowledge practices, farmers practiced indigenous knowledge-based off-farm and non-farm livelihood activities. Moreover, the logit model result shows that access to extension contact, having more educational level, and near to the market distance are negatively correlated. Also, more dependency ratio, more livestock ownership (TLU), and practicing livelihood diversification strategies are positively correlated. Therefore, determinants of adoption of indigenous knowledge-based off-farm and non-farm livelihoods needs attention by programs for additional livelihoods.Indigenous knowledge is culture-constructed knowledge that is explicit to certain groups of people. In Africa, particularly in Ethiopia, there are ample indigenous knowledge practices that are used for practicing alternative livelihoods in addition to crop and livestock production. Indigenous knowledge played an indispensable role in improving socioeconomic conditions through the diversification of indigenous-based off-farm and nonfarm livelihood activities. Therefore, this study is relevant for promoting existing indigenous knowledge practices through the investigated results on the adoption of indigenous knowledge-based off-farm and non-farm livelihoods, and their determinants. Based on the results of this study, the adoption level varies depending on the indigenous knowledge level within a community. Likewise, different socio-economic, institutional, and environmental factors have determined the farmers adoption of indigenous knowledge-based livelihoods. Therefore, indigenous knowledge requires policy attention for diversifying livelihood options. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364360 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364360 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2291893_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sumaia Ayesh Qaderi Author-X-Name-First: Sumaia Ayesh Author-X-Name-Last: Qaderi Author-Name: Belal Ali Ghaleb Author-X-Name-First: Belal Author-X-Name-Last: Ali Ghaleb Author-Name: Ameen Qasem Author-X-Name-First: Ameen Author-X-Name-Last: Qasem Author-Name: Sami Sobhi Saleem Waked Author-X-Name-First: Sami Sobhi Saleem Author-X-Name-Last: Waked Title: Audit committee effectiveness and integrated reporting quality: Does family ownership matter? Abstract: With the increasing demand for greater financial and sustainability reporting transparency, firms globally have embraced integrated reporting (IR). However, little is known about how audit committee effectiveness (ACE) affects IR quality and whether family ownership moderates this relationship. This study aims to address this research gap by examining the impact of ACE on IR quality in the Malaysian market. In addition, the study further examined the moderating role of family ownership on this relationship. Data are extracted from firms’ annual reports and Thomson Reuters DataStream to analyse Malaysian firms spanning the period 2017–2021. Our findings indicate that ACE positively influences IR quality, fostering more transparent disclosure. Additionally, our analysis reveals a negative moderation effect by family ownership on the ACE-IR quality nexus. Further scrutiny of a sub-sample suggests a positive ACE—IR quality relationship in firms without family ownership, contrasting with a negative relationship in those with family ownership. Our results withstand alternative measures of IR, ACE, estimation techniques, and control for endogeneity issues. This research contributes to the literature on IR by adding new insights into the impact of ACE and family ownership on IR quality and provides important implications for regulators, stakeholders, researchers, managers, and investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2291893 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2291893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2291893 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2363466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hafiz M. Sohail Author-X-Name-First: Hafiz M. Author-X-Name-Last: Sohail Author-Name: Hossam Haddad Author-X-Name-First: Hossam Author-X-Name-Last: Haddad Author-Name: Mirzat Ullah Author-X-Name-First: Mirzat Author-X-Name-Last: Ullah Author-Name: Nidal Mahmoud Al-Ramahi Author-X-Name-First: Nidal Mahmoud Author-X-Name-Last: Al-Ramahi Author-Name: Nazatul Faizah Haron Author-X-Name-First: Nazatul Faizah Author-X-Name-Last: Haron Author-Name: Ayman Mansour Khalaf Alkhazaleh Author-X-Name-First: Ayman Mansour Khalaf Author-X-Name-Last: Alkhazaleh Title: Optimizing sustainable high-quality economic development through Green Finance with robust spatial estimation Abstract: Green finance (GF) holds significant potential in fostering high-quality economic development (HED), enhancing societal affluence consistency, and alleviating poverty by promoting sustainable development, innovation, and resilience. This study addresses environmental challenges and the promotion of sustainable economic growth through the pivotal tools of GF. We employ spatial spillover, quantile regression, and regional-wise models to derive four key findings. Firstly, baseline regression analysis reveals a noteworthy positive association between GF and HED, indicating that the adoption and utilization of green financial mechanisms significantly advance economic development while maintaining ecological sustainability. Secondly, using a spatial econometric model, this study identifies the presence of a spillover effect, showing that the positive impact of GF on HED extends beyond individual provinces and contributes to overall economic development on a broader geographical scale. Thirdly, the analysis of regional heterogeneity demonstrates that the correlation between GF and HED varies across different regions of China. Notably, a significant association between GF and HED is observed in the western region, highlighting the importance of considering regional disparities in the implementation and effectiveness of green financial policies. Lastly, through quantile regression analysis, this study uncovers non-linear relationships between GF and HED, emphasizing that the impact of green financial strategies on economic development varies across different quantiles of the economic development distribution. This study provides several practical policy implications for financial institutions and policymakers.The study examines the role of Green Finance (GF) in promoting High-quality Economic Development (HED) across 31 provinces of China from 2006 to 2020. We used spatial spillover, quantile regression, and regional models to analyze the relationship between GF and HED. The baseline regression shows a positive relationship, with spillover effects indicating GF’s impact extends beyond individual provinces. Regional analysis reveals a significant GF-HED relationship, particularly in western China, representing regional variation in policy effectiveness. Quantile regression confirms a non-linear GF-HED association. This study advocates for financial transfers to address regional disparities. Diagnosing fences hindering GF effectiveness and implementing tailored strategies to overcome these challenges are critical steps toward inspiring HED. This study contributed to the existing literature by addressing a previous relationship, including non-linear, spatial spillover effects and regional analysis. It offers fresh insights into environmental practices and aims to attain sustainable development goals through the promotion of sustainable and green finance. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2363466 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2363466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2363466 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2390949_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tesfamlak Gizaw Author-X-Name-First: Tesfamlak Author-X-Name-Last: Gizaw Author-Name: Zerihun Getachew Author-X-Name-First: Zerihun Author-X-Name-Last: Getachew Author-Name: Malebo Mancha Author-X-Name-First: Malebo Author-X-Name-Last: Mancha Title: Sectoral allocations of domestic credit and their effects on economic growth in Ethiopia Abstract: The optimal allocation of financial resources by well-established financial systems is crucial for fostering economic growth. Nevertheless, due to imperfections in real-world settings, financial systems inadvertently distribute credit to unproductive sectors, resulting in inefficiencies in economic performance. Thus, this study aims to investigate the sectoral allocations of credit and how, in turn, such credit allocations affect the performance of each economic sector, from 1991 to 2022. To this effect, it employed the Cross-Section Augmented Error Correction (CS-ECM) model, and this model has a PMG estimation technique; hence, heterogeneous (short-run) and homogeneous (long-run) coefficients are computed as a result. The descriptive results show that domestic credits that are allocated to agriculture, industry, services, and the private and public sectors are not only small but also misallocated to inefficient sectors. Similarly, the econometrics results indicate that credits given to the public and industry sectors have a negative effect on output growth in the short term, while credits distributed to the agricultural, service, and private sectors have a small but positive effect on growth. Besides, the long-term results show that the overall credit allocation to the economy has negative effects on growth, indicating credit misallocation has unfavorable long-term effects compared to short-term effects. Financial policies and strategies should therefore be designed to welcome foreign banks as well as capacitate the existing domestic financial institutions so that substantial financial resources can be mobilized, both from the external and internal economies, and distributed in such a way as to ‘give more credit to an efficient sector’.Since credit is essential to many business and economic endeavors, it ought to be distributed to the most prosperous industries, which make significant contributions to both economic expansion and improved living standards. Nonetheless, the majority of developing nations experience inefficiencies in their economic performance as a result of financial institutions lending to less productive economic sectors. This study also looks into the sectoral distribution of credit and how each Ethiopian economic sector performed from 1991 and 2022 as a result of these credit distributions. And the study's findings first showed that there is a misallocation of credit to less productive sectors in addition to financial institutions' inadequate lending to each industry. Second, it showed that the misallocation is the reason behind the negligible contributions of industry and the public sector to economic growth, as well as the little contributions of services, agriculture, and the private sector. As a result, these findings provide pertinent information to enterprises, sectors, and financial institutions. It also provides information for researchers who need to do more study in relevant fields. The results of this study are also very beneficial to policymakers, who should create proper financial and economic policies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 8 X-DOI: 10.1080/23322039.2024.2390949 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2390949 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2390949 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2437002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Iulia Cristina Iuga Author-X-Name-First: Iulia Cristina Author-X-Name-Last: Iuga Author-Name: Raluca-Andreea Nerișanu Author-X-Name-First: Raluca-Andreea Author-X-Name-Last: Nerișanu Author-Name: Larisa-Loredana Dragolea Author-X-Name-First: Larisa-Loredana Author-X-Name-Last: Dragolea Title: Volatility and spillover analysis between cryptocurrencies and financial indices: a diagonal BEKK and DCC GARCH model approach in support of SDGs Abstract: This study explores the volatility spillover effects between clean and dirty cryptocurrencies and key financial indices, specifically focusing on Green Finance Indices (such as solar, wind, and nuclear) and Economic Indices (like the Baltic Dry Index and CRB Index). Employing the diagonal BEKK model and the DCC GARCH model, the study spans data from February 17, 2020, to September 30, 2024, to analyze how cryptocurrencies, categorized by their environmental impact, influence these indices. The results reveal significant volatility spillovers from both clean and dirty cryptocurrencies, with clean cryptocurrencies such as Cardano showing a stabilizing effect, while dirty cryptocurrencies like Bitcoin exhibit more pronounced and asymmetric volatility impacts on green finance indices. Furthermore, the persistent correlations identified through the DCC GARCH model highlight the dynamic relationships between cryptocurrency markets and green finance, suggesting that shocks in cryptocurrency volatility can significantly affect the financial dynamics of renewable energy investments. These insights are valuable for portfolio diversification and risk management, indicating that certain cryptocurrencies may serve as effective hedging instruments against risks in green finance. This study contributes to a deeper understanding of the interaction between digital financial assets and sustainable investments, offering practical implications for investors, financial managers, and policymakers committed to achieving Sustainable Development Goals (SDGs).The significance of this research lies in its ability to bridge the emerging domains of cryptocurrency markets and green finance, offering a nuanced understanding of their dynamic interplay. By employing advanced econometric models, such as the diagonal BEKK and DCC GARCH, the study provides robust empirical evidence of the volatility spillovers between clean and dirty cryptocurrencies and their impact on green finance indices. This is particularly critical in an era where sustainable investment is becoming a cornerstone of global financial strategies, driven by the need to align economic activities with Sustainable Development Goals (SDGs). By addressing the interplay between digital financial innovations and green finance, this study contributes to the broader understanding of their implications for achieving Sustainable Development Goals (SDGs), offering practical insights for investors, policymakers, and financial managers focused on sustainable development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2437002 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2437002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2437002 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2376363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Safia Abdo Ali Al-Begali Author-X-Name-First: Safia Abdo Ali Author-X-Name-Last: Al-Begali Author-Name: Lian Kee Phua Author-X-Name-First: Lian Kee Author-X-Name-Last: Phua Author-Name: Magdi Abdoh Al-Rowaidi Author-X-Name-First: Magdi Abdoh Author-X-Name-Last: Al-Rowaidi Title: CEO features, foreign ownership, and real earnings manipulation: evidence from Jordan Abstract: This study investigates the impact of foreign ownership (FOR) on the relationship between CEO features and real earnings management (REM) practices, including abnormal cash flow from operating (ACO), abnormal discretionary expenses (ADIET), abnormal production costs (APRC), and aggregate REM. Using the Feasible Generalized Least Squares (FGLS) method, regressions were performed using 685 enterprise-year observations of enterprises listed on the Amman Stock Exchange from 2017 to 2021. The findings reveal that female CEOs restrict REM (APRC), while CEOs with prior experience engage more in REM by manipulating sales, reducing discretionary expenses, and engaging in aggregate REM to establish a positive reputation. Additionally, it was found that CEOs with longer tenures are less likely to engage in REM (ADIET and APRC). Furthermore, enterprises with older CEOs have a mitigating effect on aggregate REM practices, although they are more inclined to engage in REM by reducing discretionary expenses. Consistent with the knowledge spillover hypothesis, foreign ownership acts as a constraint on the practice of REM. Specifically, when combined with CEO tenure, foreign ownership limits REM (ACO and aggregate REM). However, in line with the information asymmetry hypothesis, the study reveals that foreign ownership, in combination with CEO gender, increases REM (ACO). Moreover, foreign ownership increases REM (ADIET) when combined with CEO experience. Additionally, the results indicate that foreign ownership intensifies REM (ACO and aggregate REM) when combined with CEO age. This study provides new insights into the impact of foreign ownership (FOR) on the relationship between CEO features and REM practices, demonstrating that foreign ownership can either limit or intensify REM practices depending on the specific combination of CEO features, such as gender, experience, tenure, and age. These findings will benefit practitioners, investors, and regulators by enhancing their understanding that enterprises with significant FOR and longer CEO tenure tend to demonstrate higher financial reporting quality (FRQ) and employ lower levels of REM.This study highlights how foreign ownership (FOR) affects the relationship between CEO features (CEO gender, experience, tenure, and age) and REM, namely, abnormal cash flow from operating (ACO), abnormal discretionary expenses (ADIET), abnormal production costs (APRC), and aggregate REM. It provides evidence that CEOs who are female tend to decrease REM through sales manipulation, and CEOs experience increased REM through manipulating sales, reducing discretionary expenses, and engaging in aggregate REM. Additionally, it was found that CEOs with longer tenures are less likely to engage in REM through discretionary expenses and overproduction. Also, enterprises with older CEOs have a mitigating effect on aggregate REM practices, although they are more inclined to engage in REM by reducing discretionary expenses. The results revealed that foreign ownership could limit or intensify REM practices depending on the combination of CEO features, such as gender, experience, tenure, and age. These findings will benefit practitioners, investors, and regulators by enhancing their understanding that the interaction between foreign ownership and CEO tenure further contributes to restricting REM (ACO and aggregate REM). Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2376363 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2376363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2376363 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2373266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mustafa Raza Rabbani Author-X-Name-First: Mustafa Raza Author-X-Name-Last: Rabbani Author-Name: Md Qamar Azam Author-X-Name-First: Md Qamar Author-X-Name-Last: Azam Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Author-Name: Rashed Aljalahma Author-X-Name-First: Rashed Author-X-Name-Last: Aljalahma Author-Name: Suzan Dsouza Author-X-Name-First: Suzan Author-X-Name-Last: Dsouza Title: Does an overconfidence bias affect stock return, trading volume, and liquidity? Fresh insights from the G7 nations Abstract: The article extends the empirical literature on overconfidence bias in G7 stock markets during pre- and post-COVID-19 and provides additional evidence. Using vector autoregression and impulse response functions (IRFs), we analyze the overconfidence bias for the daily data from January 2015 to December 2021. Because the pertinent coefficients are positive and highly significant for only a few lags, there is a strong contemporaneity between market volume and market return in the pre-COVID-19 period of the Canadian and Italian stock markets. The study shows compelling evidence of overconfident behavior in the Italian market during the COVID-19 crisis. Along with trading volume, market liquidity influences overconfidence bias, which tracks market return but not vice versa. For investors, decision-makers, and market regulators, the study has significant ramifications in the current market turbulence caused by the COVID-19 pandemic. Furthermore, overconfidence contributes to the reported extra unpredictability due to the high level of sensitive data. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2373266 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2373266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2373266 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2322876_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Van Le Thi Thuy Author-X-Name-First: Van Author-X-Name-Last: Le Thi Thuy Author-Name: Tran Thi Kim Oanh Author-X-Name-First: Tran Thi Kim Author-X-Name-Last: Oanh Author-Name: Nguyen Thi Hong Ha Author-X-Name-First: Nguyen Thi Hong Author-X-Name-Last: Ha Title: The roles of gold, US dollar, and bitcoin as safe-haven assets in times of crisis Abstract: Using the GJR-GARCH method, this study examines the safe-haven role of gold, US dollar, and Bitcoin over a period including the global financial crisis, the COVID-19 pandemic and the Russia-Ukraine conflict from 3 April 2006 to 19 May 2023. The study supports the hypothesis that the safe-haven role of assets changes over periods of crisis. Specifically, gold loses its role as a safe-haven asset during the COVID-19 pandemic, but this role has been restored in the Dutch, US and German markets during the Russia-Ukraine conflict. Similarly, Bitcoin is not a safe-haven asset during the COVID-19 pandemic but is a strong safe-haven asset for the stock markets of some European countries, and a weak safe-haven asset for China when the Russia-Ukraine conflict occurred. Only the USD acts as a stable safe-haven asset through periods of crisis. However, this role is weakened in Russia. These results partly help investors and portfolio managers choose a safe haven for their assets, especially during volatile market periods.Investors often want to protect their assets by diversifying their investment portfolios or using risk prevention tools. Especially when the financial market encounters instability caused by the crisis, investors tend to look for safe-haven assets such as precious metals, foreign currencies, and cryptocurrencies. This study re-evaluates the safe-haven role of gold, USD, and Bitcoin during the Russia-Ukraine conflict, then compares the research results with two previous crises, GFC 2008 and the COVID-19 pandemic. Research results help investors choose appropriate assets during market volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2322876 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2322876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2322876 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431543_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kelleb Mloyi Author-X-Name-First: Kelleb Author-X-Name-Last: Mloyi Author-Name: Edson Vengesai Author-X-Name-First: Edson Author-X-Name-Last: Vengesai Title: The impact of global risk aversion and domestic macroeconomic factors on the dynamic conditional correlations of South African financial markets Abstract: This paper considers the impact of global risk aversion and domestic macroeconomic factors on the dynamic conditional correlations between the South African stock, bond, and foreign exchange markets. Our first stage findings using the DCC-GARCH model show that correlations between the selected markets are significantly dynamic over time. We further show that the correlations of asset pairs do not fall for extended periods during crisis periods, implying only short-lived increase in diversification benefits. Further analysis using the OLS regression model shows that global risk aversion and domestic macroeconomic factors have a heterogenous impact on the dynamic correlations of asset pairs. Consequent to these findings, this study advocates for the adoption of dynamic asset allocation and diversification strategies necessitating the periodic optimisation of portfolios as asset correlations, global risk aversion and domestic macroeconomics evolve. The study offers valuable insights and policy recommendations for investment practitioners, policymakers, and academics.This research provides valuable insights into how global risk aversion and domestic macroeconomic factors influence the relationships between South African stock, bond, and foreign exchange markets. The study demonstrates that these correlations are highly dynamic, emphasising the need for investors to adopt responsive and flexible investment strategies. The findings offer crucial practical guidance for portfolio optimisation, risk management, and informed investment decisions in a volatile economic environment. This work is significant for its potential to inform investment practices and policy, ensuring they are aligned with the evolving financial landscape. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431543 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431543 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2420220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Anthony Amoah Author-X-Name-First: Anthony Author-X-Name-Last: Amoah Author-Name: Carlos Kokuvi Tetteh Author-X-Name-First: Carlos Kokuvi Author-X-Name-Last: Tetteh Author-Name: Noble Osei-Bonsu Author-X-Name-First: Noble Author-X-Name-Last: Osei-Bonsu Author-Name: Paragon Pomeyie Author-X-Name-First: Paragon Author-X-Name-Last: Pomeyie Author-Name: Godson Ahiabor Author-X-Name-First: Godson Author-X-Name-Last: Ahiabor Author-Name: George Hughes Author-X-Name-First: George Author-X-Name-Last: Hughes Author-Name: Ignanpin Kwabenabu Author-X-Name-First: Ignanpin Author-X-Name-Last: Kwabenabu Author-Name: Benjamin Otchere-Ankrah Author-X-Name-First: Benjamin Author-X-Name-Last: Otchere-Ankrah Title: Determinants of household saving behaviour in Ghana Abstract: Developing countries generally exhibit low ‘saving’ (flow concept) and ‘savings’ (stock concept) rates. The factors underlying household positive or negative saving behaviours in developed and developing countries are not new in the macroeconomic literature. Whereas some determinants are theoretically generic, others are country- or community-specific and worth investigating. In this study, the determinants of household saving behaviour are examined. We obtain the results using primary data from a household survey and a logit econometric model with its associated average marginal effects. Our evidence shows that household income, level of education completed, employment status, and households with launching children (or transitioning older adults) are primary drivers of household saving behaviour in Ghana. Further heterogeneous analysis shows that saving behaviour does not statistically differ by gender but by poverty headcount. In line with the findings of this study, relevant policy prescriptions are discussed.This study contributes to the ongoing discourse on household saving behaviour, specifically within the context of developing countries, by providing empirical evidence from Ghana. Utilising primary household survey data, the research identifies key factors such as income, education level, employment status, and household lifecycle stages (e.g., families with launching children or transitioning older adults) as critical determinants of saving behaviour. The findings offer actionable insights for policymakers in developing economies aiming to boost saving rates, reduce poverty, and promote financial stability. By demonstrating that household saving behaviour varies by poverty headcount rather than gender, the study underscores the need for targeted financial inclusion and education policies. The results are particularly relevant for economic development strategies in countries with similar socio-economic structures, offering a foundation for tailored interventions that can foster more resilient household financial practices. This paper’s insights can shape future research and policy development aimed at addressing the unique saving dynamics in developing nations, ultimately contributing to improved macroeconomic stability and individual financial security. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2420220 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2420220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2420220 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2399957_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Oliver Lukason Author-X-Name-First: Oliver Author-X-Name-Last: Lukason Author-Name: Tiia Vissak Author-X-Name-First: Tiia Author-X-Name-Last: Vissak Title: Exporters’ failure predictors and processes: a multi-country analysis based on the theoretical concept of firms’ financial crisis types Abstract: This study aims to identify the financial predictors and processes of (non-)bankrupt exporters’ failure in five European countries. A novel theoretical concept of financial processes based on the dynamic evolution of different types of financial crises was created. Relying on gaps in the literature, the study answers five research questions (RQs) by using financial data of 15,551 (non-)bankrupted firms. First, the empirical analysis suggests that from the four crisis types, solvency and profitability crises are the most important failure predictors generally, and second, also in different stages for the majority of studied financial processes. Among the eight financial processes detected based on the failure probability evolvement during 3 years, survived firms are mainly subject to persistent absence of failure risk, while exactly the opposite occurs for half of the bankrupt firms. Concerning firm-level characteristics, firm age mainly determines the prevalence of these processes, while export intensity plays a modest role. The empirical section is finalized with the development of high-accuracy failure prediction models for exporting firms, enabling the extension of the scientific findings to financial practice. As the main contribution to the extant literature, the article presents a holistic analysis of the financial dynamics of (non-)bankrupting exporting firms.Besides developing high-accuracy bankruptcy prediction tools for exporting firms, in the case of which such studies are rare, the scientific and practical impact of the paper is much more multi-faceted. Failure prediction studies usually do not focus on how the values of financial predictors and failure risk evolve in time for different firm types. In addition, financial predictors are usually chosen based on their predictive ability, rather than theoretical nature. Based on the theoretical concept created in the paper combining four financial crisis types (i.e. liquidity, solvency, profitability, revenue creation ability) and eight failure processes, it outlines how and why failure risk evolves dynamically for different types of (non-)failing firms. A major practical takeaway emergent from the latter is that the classification errors in bankruptcy prediction are largely emergent from two types of firms. The first is a surviving firm lengthily in a poor financial status, being dynamically almost constantly characterized by all four crisis types, although in a mild form. The second is a bankrupting firm, which dynamically almost never does not indicate any of the four crises, being therefore very similar to a well-performing surviving firm. Besides this main implication, the paper offers additional rich evidence, including the prevalence of financial processes and accuracies of failure predictors in different European countries, the ranking of the importance of crisis types by financial processes, and the dependencies of financial processes on firm characteristics. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2399957 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2399957 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2399957 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mamadou Ndione Author-X-Name-First: Mamadou Author-X-Name-Last: Ndione Author-Name: Arvind Ashta Author-X-Name-First: Arvind Author-X-Name-Last: Ashta Author-Name: Bernard Bahama Bako Liba Author-X-Name-First: Bernard Bahama Author-X-Name-Last: Bako Liba Title: Banks, microfinance institutions and fintech: how the ratio of male and female entrepreneurs moderates their capacity for financial inclusion Abstract: This article highlights the determinants of financial inclusion within the West African Economic and Monetary Union (WAEMU), focusing on the moderating role of the male/female entrepreneurial rate. To this end, we collected quantitative data for the eight member countries from 2010 to 2020 and used a panel model to determine if total financial inclusion service points was influenced by the supply of service points of banks, MFIs, or e-money, after controlling for public governance and investment rate and whether the rate of female or male entrepreneurship moderates this relationship between the supply of banking, microfinance or e-money providers and total financial inclusion service points. We also check if the growth of the different service providers is impacted by competition from each other. Finally, we check whether there is reverse causality: whether female or male entrepreneurship is impacted by the provision or any specific financial service. Our analysis finds that e-money service providers have grown exponentially, banking service points modestly, while microfinance service points have reduced in the region. Our regression results confirm that e-money services positively impact total financial inclusion, unlike banks and MFIs, which have no significant impact. Using interactive variables, we find that male entrepreneurs tend to enhance the relationship of banking and e-money services to total financial inclusion. On the other hand, women's entrepreneurship reduces the relationship between microfinance and e-money services providers to total financial inclusion. Our check for reverse causality shows that the male and female entrepreneurship rates are affected negatively by microfinance service provision.This work contributes to the understanding of the behavior of financial actors within developing countries such as those in the WAEMU. It thus offers an opportunity for decision-makers to take corrective measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402031 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402031 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2421698_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mduduzi Biyase Author-X-Name-First: Mduduzi Author-X-Name-Last: Biyase Author-Name: Hinaunye Eita Author-X-Name-First: Hinaunye Author-X-Name-Last: Eita Author-Name: Thomas Bilaliib Udimal Author-X-Name-First: Thomas Bilaliib Author-X-Name-Last: Udimal Author-Name: Talent Thebe Zwane Author-X-Name-First: Talent Thebe Author-X-Name-Last: Zwane Title: Does military spending affect inequality in South Africa? A revisit Abstract: Previous investigations on the military spending-inequality nexus (in South Africa) were underpinned by the assumption that military spending and inequality behaves in symmetric fashion and employed linear autoregressive distributed lag (ARDL) model in their analysis. This paper extends and improves upon prior studies by investigating the short-run and long-run asymmetric effect of military spending on South Africa’s income inequality. Using annual data from 1980 to 2017 and the asymmetric autoregressive distributed lag (NARDL) model by Shin et al. (2014), our paper revisits the military spending-income inequality nexus. We find evidence to suggest an asymmetric association between military and income inequality—income inequality responds differently to positive and negative shocks of military spending in the long- and short-run. Based on these findings, we conclude that the NARDL model delivers more accurate estimates and provides nuanced insights that the traditional linear ARDL.Our study examines the relationship between military spending and income inequality, revealing an asymmetric dynamic. These findings suggest that the Nonlinear ARDL (NARDL) model offers more precise estimates and deeper insights compared to the conventional linear ARDL approach. The significance of this study is that income inequality reacts differently to increases and decreases in military spending, both in the short and long term. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2421698 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2421698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421698 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2386401_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Andi Faisal Anwar Author-X-Name-First: Andi Author-X-Name-Last: Faisal Anwar Author-Name: Dyah Wulan Sari Author-X-Name-First: Dyah Author-X-Name-Last: Wulan Sari Author-Name: Haura Azzahra Tarbiyah Islamiya Author-X-Name-First: Haura Azzahra Tarbiyah Author-X-Name-Last: Islamiya Author-Name: Raja Adzrin Raja Ahmad Author-X-Name-First: Raja Adzrin Author-X-Name-Last: Raja Ahmad Author-Name: Nur Salimah Alias Author-X-Name-First: Nur Author-X-Name-Last: Salimah Alias Title: Understanding the impact of mining activities and human capital improvement on achieving sustainable development goals; evidence from East Luwu, Indonesia Abstract: Mining activities and efforts to increase human capital in East Luwu Regency, Indonesia, have not been able to contribute significantly to achieving Sustainable Development Goals, namely reducing unemployment and poverty. This study aims to determine whether the contribution of the mining sector and human capital affects the achievement of SDGs, either directly or indirectly. The novelty of this research is that it seeks to explore how much influence human capital and the mining sector in East Luwu, the largest mining center in Indonesia, have on realizing inclusive economic development. The type of research used is descriptive quantitative with a path analysis method approach using secondary time series data in the span of fifteen years, 2008-2022, obtained from the Statistics of Indonesia (BPS). Referring to the research results, it can be concluded that the mining sector’s contribution has a negative effect on reducing unemployment and poverty in East Luwu Regency. Likewise, human capital has a negative effect on reducing unemployment and poverty. Meanwhile, the unemployment rate variable positively affects the poverty rate. Seen from the indirect effect, the mining sector and human capital can reduce poverty indirectly through the unemployment rate variable. The implication of this study is to provide new information for the government and private sector to encourage the mining sector to grow inclusively and consistently in reducing unemployment and poverty, as stated in the vision of sustainable development goals (SDGs).The practical implication of this research is that it is new information as well as targets and strategies for the government and private sectors operating in the mining sector to jointly encourage a mining sector that can involve local communities in terms of labor supply and fulfilment of supply chain need to contribute to reducing unemployment and poverty. Likewise, in the aspect of increasing human capital, the quality should continue to be improved, such as the development of training and skills to be able to participate in mining activities to help vulnerable people get out of the poverty chain. Moreover, the huge government revenue from the mining sector allows the government and private sector to collaboratively contribute to improving the quality of human capital massively and achieving sustainable development, as stated in the vision of sustainable development goals (SDGs). Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2386401 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2386401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2386401 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2302638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Sarfraz Hussain Author-X-Name-First: Sarfraz Author-X-Name-Last: Hussain Author-Name: Rosalan Ali Author-X-Name-First: Rosalan Author-X-Name-Last: Ali Author-Name: Ahmed Razman Abdul Latiff Author-X-Name-First: Ahmed Razman Author-X-Name-Last: Abdul Latiff Author-Name: Mochammad Fahlevi Author-X-Name-First: Mochammad Author-X-Name-Last: Fahlevi Author-Name: Mohammed Aljuaid Author-X-Name-First: Mohammed Author-X-Name-Last: Aljuaid Author-Name: Sebastian Saniuk Author-X-Name-First: Sebastian Author-X-Name-Last: Saniuk Title: Moderating effects of net export and exchange rate on profitability of firms: a two-step system generalized method of moments approach Abstract: This study examines the effects of exchange rate and net exports on manufacturing enterprises’ profitability on the Pakistan Stock Exchange (PSX). When activity-based accounting is examined using panel data techniques, the main objective is to examine the direction and magnitude of the moderating influence of exchange rate fluctuations on net exports and the return on assets. We employed 249 manufacturing companies on the Pakistan Stock Exchange from 1999 to 2019. The Pakistani economy used a multicurrency system, using the Generalize Method of Moment (GMM) regression analysis system. The number of debtors’ days, creditors’ days, the cash conversion cycle, and the company’s return on assets all link favorably. Inventory turnover days, financial leverage, net exports, exchange rate, and return on assets are all negative. The Size and age of a business have a significant positive association with profitability but a negative relationship with Return on Assets (ROA). This study suggests that activity-based accounting improves company performance. Recognizing interdependence, net exports owing to currency rate depreciation have adverse effects. Managers may construct an appropriate measure to control activity-based working according to forex market symptoms and when macro-economic factors modify micro-economic policies’ behavior to increase ROA. Hence, debtors need to be paid early, and payables need to be paid late, but in these cases, the financial management should improve the return on assets.This paper investigates the impact of net export and exchange rate on the profitability of firms using a statistical technique called the Two-Step System Generalized Method of Moments Approach. Understanding the factors that influence firm profitability is important for investors, policymakers, and business owners. This study specifically examines the role of net export, which refers to the difference between a country’s exports and imports, and exchange rates, which determine the value of one currency in relation to another, on firm profitability. The findings of this research have significant implications for firms operating in global markets, as they highlight the importance of understanding the impact of net exports and exchange rates on profitability. The study suggests that firms may need to adjust their strategies based on fluctuations in exchange rates and focus on increasing their net export to maintain profitability. Overall, this paper provides valuable insights into the complex relationship between net export, exchange rates, and firm profitability, which has important implications for businesses and policymakers alike. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2302638 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2302638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2302638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2350196_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mayya Dubovik Author-X-Name-First: Mayya Author-X-Name-Last: Dubovik Author-Name: Sergey Dmitriev Author-X-Name-First: Sergey Author-X-Name-Last: Dmitriev Author-Name: Natalya Obidovskaya Author-X-Name-First: Natalya Author-X-Name-Last: Obidovskaya Author-Name: Gulchexra Khalmatjanova Author-X-Name-First: Gulchexra Author-X-Name-Last: Khalmatjanova Title: ‘Prism’ for the meso-level: do the cyclical patterns at the national and regional levels coincide? Abstract: The purpose of the study is to determine the most relevant method of a time series analysis to identify the cyclicality in the development of regional economies. In pursuit of the goal, a comparative approach was employed, focusing on the utilization of Gross Regional Product (GRP) indicators from the regions within the Central Federal District of the Russian Federation. Statistical and econometric methods were also employed to analyze the changes in these indicators over time (from 1998 to 2019). The relevance of this study manifests in its capacity to elucidate the cyclic processes within the development of regional economies, thereby enabling the identification of strategies to influence them toward the attainment of sustainable and balanced development goals. The study revealed that the majority of the examined regions remain in the lowest quartile of Gross Regional Product (GRP), while two regions consistently feature in the highest GRP quartile. The research findings hold practical implications for policy decisions and regional development strategies, aiding in understanding economic dynamics and supporting the implementation of effective management measures to bolster regional development. Based on the research findings, it is recommended to intensify support for regions with low GDP by providing additional investments and infrastructural development, as well as adapting successful development strategies. Political decisions should be grounded in cyclical trends, taking into account the needs and opportunities of each region. Future research efforts may focus on refining the spectral analysis method for a more precise and reliable analysis of GRP dynamics at the regional level.This research has shown that the distribution of growth in the gross regional product is not statistically normal and therefore it is necessary to complement traditional narrative statistics with other methods. The results of our spectral analysis confirmed our hypothesis about the usefulness of this method. An introduced model for spectral analysis of GRP treats it as a specific case of the regression model using discrete Fourier transformation. Considering the persistent trend of low levels of regional product in certain regions juxtaposed with consistently high levels in others, we recommend the development of a national strategy encompassing specialized programs to support and foster the regions in the lowest quartile of regional product. Policymakers should actively incentivize investments in regions with low levels of regional product, directing financial and other resources to bolster economic growth and infrastructural development. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2350196 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2350196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2350196 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2337479_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Alungile Qoko Author-X-Name-First: Alungile Author-X-Name-Last: Qoko Author-Name: Kin Sibanda Author-X-Name-First: Kin Author-X-Name-Last: Sibanda Author-Name: Phakama Senzangakhona Author-X-Name-First: Phakama Author-X-Name-Last: Senzangakhona Title: Health capital and economic performance in selected Southern African development Community (SADC) countries Abstract: Understanding the relationship between health capital and economic performance is crucial for policymakers in Southern African Development Community (SADC) countries. This study explores this relationship in 14 SADC countries over a 14-year period (2005-2019), with GDP per capita as a measure of economic performance and health capital’s impact analysed alongside labour force participation rate, institutional quality, and trade openness. To address potential outliers, the data was transformed using logarithms, and two panel unit root tests, Levin, Lien, and Chu (LLC), and Im, Pesaran, and Shin (IPS), were employed to test for stationarity of the series. The findings indicate a combination of integrated orders, including I(0) and I (1), but not I (2). Panel cointegration tests by Pedroni and Kao reveal cointegration, suggesting a long-run relationship between the variables. The study utilized the panel auto regressive distributed lag (ARDL) model with Pooled Mean Group analysis as the best estimator to investigate both long run and short run relationships. For robustness, the study employed the fully modified least squares (FMOLS) method and the fixed effects (FE) model. The empirical findings establish a significant and negative relationship between health capital and economic performance in the selected SADC countries. Based on these results, the study recommends that governments in the SADC region prioritize addressing issues related to leakages in the health sector to improve economic performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2337479 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2337479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2337479 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2392627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muneer Shaik Author-X-Name-First: Muneer Author-X-Name-Last: Shaik Author-Name: Pratik Kamdar Author-X-Name-First: Pratik Author-X-Name-Last: Kamdar Author-Name: Nishad Nawaz Author-X-Name-First: Nishad Author-X-Name-Last: Nawaz Author-Name: Mustafa Raza Rabbani Author-X-Name-First: Mustafa Raza Author-X-Name-Last: Rabbani Author-Name: Sahar E-Vahdati Author-X-Name-First: Sahar Author-X-Name-Last: E-Vahdati Author-Name: Mohd. Afzal Saifi Author-X-Name-First: Mohd. Author-X-Name-Last: Afzal Saifi Author-Name: Himani Grewal Author-X-Name-First: Himani Author-X-Name-Last: Grewal Title: The global financial crisis impact on stock market efficiency: a Fourier unit root tests analysis Abstract: This study investigates how the Global Financial Crisis has affected the weak-form Efficient Market Hypothesis (EMH) on the stock prices of sixteen nations throughout the globe based on a suite of Fourier unit root tests. Considering the smooth structural breaks, we employed the Fourier-based unit root tests to assess the weak-form efficient market hypothesis. We used multiple frequency datasets of global financial stock market indexes that span over 20 years to have comprehensive analysis and robustness in the results. The study is performed from distinct sub-sample periods of the global financial crisis, including the pre-crisis period (2000–2007), the crisis and post-crisis period (2008–2020), and the overall sample period (2000–2020). We observed seven stock markets in the total sample period and twelve in the pre-crisis period, which were weak-form efficient across different frequency data sets. During the crisis and post-crisis period, just four out of sixteen stock market indexes were found to be weak in efficiency based on Fourier unit root tests. Given the superior properties of the Fourier unit root tests, this study reiterates that investors may receive a stream of arbitrage benefits in all markets due to the inefficiency of these countries. We offer investment implications that enable forecasting future stock price changes based on past performance and creating trading methods that produce anomalous profits. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2392627 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2392627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2392627 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426529_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Alamedin A. Bannaga Author-X-Name-First: Alamedin A. Author-X-Name-Last: Bannaga Author-Name: Mohammed Lezar Author-X-Name-First: Mohammed Author-X-Name-Last: Lezar Title: Total factor productivity and economic efficiency in the Gulf cooperation council (GCC) countries Abstract: This study focuses on identifying the level and evolution of total factor productivity (TFP) and determining its role as a qualitative source of economic growth in the Gulf Cooperation Council (GCC) countries. This is an issue of particular importance because of the recent increases in external global crises, such as the Covid-19 pandemic, and large fluctuations in oil prices. In addition, there are existing internal challenges in the GCC countries, such as high rates of population growth, labor market pressures, a large-sized public sector, and an inefficient private sector. These challenges require achieving a qualitative improvement in the sources of economic growth by raising the efficiency of the use of available productive resources through relying on the growth of TFP as a primary driver of sustainable economic growth. The results of the study showed that the growth rates in TFP were generally negative and below the average international levels. This can be attributed to several reasons such as weak innovation and the adoption of a stagnant development model. The study presents some recommendations to address these challenges.Productivity plays a crucial role in the economic and social progress of nations. Economic growth in the GCC countries faces numerous challenges, including fluctuating oil prices, the rapid growth of the working-age population, stagnant productivity in the public sector, and geopolitical risks in the region. These challenges have made it increasingly difficult for these countries to rely heavily on oil revenues, highlighting the importance of transitioning to an economic model that emphasizes sustainable sources of growth. This shift involves raising productivity to create new economic dynamism, diversify income sources, and respond effectively to current and future market changes. In this study, we focus on Total Factor Productivity (TFP) analysis for several reasons: TFP is often interpreted as a measure of technological progress or innovation; it reflects better management practices; it can be used to assess the impact of various policies on economic efficiency; changes in TFP can help in understanding the sources of economic fluctuations and resilience; and it indicates the quality of policies and institutions that are fundamental to economic growth. By emphasizing TFP, the GCC countries can align their strategies with long-term visions such as Saudi Arabia's Vision 2030 and the UAE's Centennial 2071. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426529 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426529 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426529 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2345303_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Blessing Akrumah Author-X-Name-First: Blessing Author-X-Name-Last: Akrumah Author-Name: Edward Daniels Author-X-Name-First: Edward Author-X-Name-Last: Daniels Author-Name: Baah Aye Kusi Author-X-Name-First: Baah Aye Author-X-Name-Last: Kusi Title: Does financial sector transparencies tame government debts in Africa: exploring for complementarities and nonlinear threshold effects Abstract: Despite evidence that improving financial sector transparency (FST) can help tame clientele (households, businesses and corporate) debts, the empirical literature fails to explore how improving FST can lower/tame the unsustainable soaring government or (regulator) debts, particularly in Africa where alternative government debt management is inevitable. Hence, this study examines the complementarity and nonlinear threshold effects of private and public sector-led financial transparencies on government debts in Africa for the first time. Using a dynamic GMM panel data strategy covering periods between 2004 and 2020, the results show that the joint term of public and private sector-led financial sector transparency has complementary-synergetic effects on long-term debts and interest on debts while having substitutive effects on gross and short-term government debts, implying that private and public sector-led financial transparencies are substitutes to each other or can be used to complement gross and short-term government debts but complementary on long-term debt and interest on debts. Similarly, it is reported that there is a nonlinear inverted U-shaped threshold effect of financial sector transparencies on government debts, implying that financial sector transparencies must reach a minimum threshold/level to induce the desirable reducing effect of financial sector transparencies on government debts in Africa. These results create awareness of how financial regulators can employ FST as a debt-reducing tool and require policymakers to expand and deepen FST information to hasten it and reinforce the reducing effect of financial sector transparencies on government debts.This study provides novel evidence on how transparency in the financial market can serve a tool for taming governments debts when is it well-developed to certain levels/thresholds. Especially in the context of Africa where governments debts have reached unsustainable thresholds and both country and international level financial bodies are seeking to have alternative mechanisms for lowering government debts, this study employs data on 23 African countries between the periods of 2004 and 2020 to show that (i) while the two forms of financial sector transparencies have substitutive effect on government debt, it could have either complementary or substitutive effect depending on the type of government debt (short-term, long-term, privately and publicly guaranteed debts), (ii) the reducing effect of financial sector transparency can only be attained when financial sector transparency is well-developed over a certain threshold. Hence, the impact of this study is its novel revelation that regulators can rely on improved financial sector transparency to lower government debts, particularly in Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2345303 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2345303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2345303 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2416990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Marta Idasz-Balina Author-X-Name-First: Marta Author-X-Name-Last: Idasz-Balina Author-Name: Rafał Balina Author-X-Name-First: Rafał Author-X-Name-Last: Balina Author-Name: Noer Azam Achsani Author-X-Name-First: Noer Azam Author-X-Name-Last: Achsani Title: Does an increase of board compensation boost the corporate philanthropy: an empirical study Abstract: Our study examines the relationship between the management board compensation and corporate philanthropy in financial institutions. By analyzing a sample of 240 cooperative banks over six years, the research investigates the impact of management board compensation on the level and extent of corporate philanthropy these institutions undertake. To estimate the models, we used the Generalized Method of Moments (GMM) approach. The findings demonstrate that the bank’s management board’s compensation significantly influences the size and scope of corporate philanthropy. Moreover, the study reveals that financial institutions consider their financial situation when formulating strategies for implementing corporate philanthropy. Notably, the analysis highlights that the increase in variable components of management board compensation has a more pronounced effect on corporate philanthropy’s volume and range than fixed compensation. These results shed light on aligning management board compensation with social responsibility objectives in financial institutions. By understanding the influence of compensation structures on corporate philanthropy, organizations can take conscious decisions to enhance their social impact while considering their financial performance. This study contributes to the growing literature on corporate social responsibility and provides valuable insights for practitioners, regulators, and stakeholders in the financial industry.This study examines the influence of management board compensation on corporate philanthropy in cooperative banks, offering valuable insights for shaping regulatory frameworks and corporate governance practices. By exploring this relationship, the research highlights how compensation structures can promote socially responsible behavior within financial institutions. The findings provide practical guidance for stakeholders and investors in assessing banks' commitment to social causes and sustainability. This study fills an important gap in the literature by addressing the underexplored connection between executive compensation and corporate philanthropy, particularly in the context of cooperative banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2416990 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2416990 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2416990 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2403708_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Hoang-Oanh Thi Nguyen Author-X-Name-First: Hoang-Oanh Thi Author-X-Name-Last: Nguyen Author-Name: Khanh-Duy Nguyen Author-X-Name-First: Khanh-Duy Author-X-Name-Last: Nguyen Title: Moderator effect of industrial park on knowledge spillover from sectoral innovation to firm performance in Vietnam Abstract: New economic geography in a wide range of industrial theories explains why certain activities agglomerate in a certain region through the benefits of innovation activities. However, positive external economies of innovation have been less investigated in empirical studies. This study investigates the knowledge spillover effects of sectoral innovation on firm performance through the mediating effects of industrial parks in the manufacturing industry in Vietnam. Using the Vietnam Enterprises Survey (VES) data from 2011 to 2014 with 7,236 enterprises in combination with other data from the General Statistics Office (GSO), this study applied panel data regression with mixed-effects models and presented novel findings on knowledge spillover from sectoral innovation to firm performance in Vietnam. Sectoral innovation may require two years to have a positive effect on a firm’s value added, which supports lags in innovation on the productivity nexus, as suggested by Griliches. Interestingly, this positive spillover effect may be greater for enterprises located in industrial parks. This finding approves the approach of innovation economy that economic activities based on new knowledge are likely to be grouped into geographical regions. This may imply policies that enhance the effectiveness of innovation through the development of industrial parks.This study provides new insights into the relationship between sectoral innovation and firm performance in the manufacturing industry in Vietnam, emphasizing the role of knowledge spillover and industrial parks. By employing panel data regression with mixed-effects models, the research finds that sectoral innovation positively impacts firm performance, albeit with a two-year lag. Moreover, industrial parks play a crucial mediating role in amplifying the benefits of sectoral innovation. The findings offer significant policy implications for Vietnam, suggesting that fostering innovation and developing industrial parks can lead to enhanced economic performance through increased knowledge spillover. This study contributes to the broader literature on economic geography and innovation by showing how sectoral innovation can influence firm-level outcomes in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2403708 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2403708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2403708 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2390943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Asad Nisar Author-X-Name-First: Asad Author-X-Name-Last: Nisar Author-Name: Haolin Li Author-X-Name-First: Haolin Author-X-Name-Last: Li Author-Name: Syed Sadaqat Ali Shah Author-X-Name-First: Syed Sadaqat Ali Author-X-Name-Last: Shah Author-Name: Rabia Rafique Author-X-Name-First: Rabia Author-X-Name-Last: Rafique Title: Regional digital finance and inefficient corporate investments: Empirical evidence from China Abstract: Using data of 1,457 Chinese A-share listed enterprises from 2012 to 2021, this study investigates the impact of regional digital finance development on inefficient corporate investments. Data for core explanatory variables, including Digital Finance and Breadth, were obtained from the Peking University Digital Finance Research Center, while firm-level variables’ data were sourced from CSMAR. The baseline results show that regional digital finance development significantly reduces inefficient corporate investments in China. These findings are further supported by a series of robustness tests. Additionally, we identify two mechanisms through which regional digital finance development mitigates inefficient corporate investments: alleviating financing constraints and increasing cash flow circulation. The mitigation effects of digital finance are more pronounced in state-owned firms, firms with strong governance, firms located in western regions, firms in areas with a high degree of marketization, and firms in innovative and competitive industries. Overall, this study offers significant insights for developing countries, suggesting that regional digital finance development can enhance firms’ resource allocation efficiency.By analyzing data of Chinese A-share listed firms over 2012-2021, the study discovers that digital finance alleviates financing constraints and enhances cash flow circulation, thereby optimizing resource allocation. This research highlights the strategic role of digital finance in fostering more efficient investment decisions, with broader implications for economic development and policy-making in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2390943 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2390943 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2390943 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2318158_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Yuree Lim Author-X-Name-First: Yuree Author-X-Name-Last: Lim Title: Debt maturity of different types of debt Abstract: This paper documents the different debt maturity choices of firms by allowing debt heterogeneity. We use a sample of US companies’ capital structure and employ dynamic panel regressions and Instrumental Variable approach. When taking the maturity of each type of debt into account, the researcher fails to validate the non-linear relationship between credit quality (firm size) and debt maturity predicted by Diamond in 1991. This study finds a non-linear relationship between revolving credit, term loan, and capital leases but does not find the same relationship with bonds and notes or trust preferred securities. Also, this research finds that different types of debt are explained differently by existing debt maturity theory such as information asymmetry, agency cost of debt, signaling, tax, matching asset maturity, and timing the market hypothesis.The findings of this paper shed light on the intricate dynamics of debt maturity choices among firms, challenging existing theoretical frameworks. By meticulously examining a diverse array of debt instruments within US companies’ capital structures, the study unveils a nuanced non-linear relationship between credit quality (proxied by firm size) and debt maturity, contrary to Diamond’s seminal work. Notably, the research delineates varying patterns across different types of debt, revealing distinctive relationships for revolving credit, term loans, and capital leases compared to bonds, notes, or trust preferred securities. Moreover, the study enriches our understanding of debt maturity determinants by dissecting the influence of factors such as information asymmetry, agency costs, signaling, tax considerations, asset maturity matching, and market timing hypotheses. These findings not only contribute to the refinement of debt maturity theories but also offer valuable insights for practitioners navigating capital structure decisions in dynamic economic landscapes. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2318158 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2318158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2318158 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2373258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ping Zhang Author-X-Name-First: Ping Author-X-Name-Last: Zhang Author-Name: Zi-Xu Lv Author-X-Name-First: Zi-Xu Author-X-Name-Last: Lv Author-Name: Jun-Ya Liu Author-X-Name-First: Jun-Ya Author-X-Name-Last: Liu Title: Flows, performance, and investor behavior: evidence from mutual funds in China Abstract: This study examines the investor behavior of mutual funds in China. Our results show little evidence about the redemption puzzle. We further refute the disposition effect, that is, investors do not tend to redeem funds with superior past performance. Additionally, market conditions are crucial for investment decisions. In bull markets, investors are prone to taking risks while being conservative and prudent during bad times. Considering investor heterogeneity, we find that institutional investors value the funds’ past performance metrics, assigning greater weight to historical performance. Both institutional investors and individual investors show stronger sensitivity to complicated performance indicators in bad times than good times. Furthermore, we find that investors in China chase for the star funds. We also perform tests on the existence of the smart money effect, and the results show that investors can screen good funds from bad ones.This study examines the investor behavior of mutual funds in China. Our results show little evidence about the redemption puzzle. We further refute the disposition effect, that is, investors do not tend to redeem funds with superior past performance. Additionally, market conditions are crucial for investment decisions. In bull markets, investors are prone to taking risks while being conservative and prudent during bad times. Considering investor heterogeneity, we find that institutional investors value the funds’ past performance metrics, assigning greater weight to historical performance. Both institutional investors and individual investors show stronger sensitivity to complicated performance indicators in bad times than good times. Furthermore, we find that investors in China chase for the star funds. We also perform tests on the existence of the smart money effect, and the results show that investors can screen good funds from bad ones. Overall, this study offers valuable insights into the decision-making processes of Chinese mutual fund investors, providing a more nuanced understanding of their behavior compared to established financial theories. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2373258 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2373258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2373258 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2373255_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdulrahamn Naser Author-X-Name-First: Abdulrahamn Author-X-Name-Last: Naser Author-Name: A. N. Bany-Ariffin Author-X-Name-First: A. N. Author-X-Name-Last: Bany-Ariffin Author-Name: Bolaji Tunde Matemilola Author-X-Name-First: Bolaji Tunde Author-X-Name-Last: Matemilola Title: Cash flow volatility and capital structure in MENA and Africa: the moderating role of fixed assets Abstract: This paper investigates the direct association between cash flow volatility and capital structure (i.e. debt ratio). This study further examines the moderating role of fixed assets on the association between cash flow volatility and capital structure in the Middle East and North Africa (MENA) and African markets. This study applies a two-step system generalized method of moment regression as the main estimation technique to minimize endogeneity concern. The data consist of non-financial listed firms in 20 MENA and African countries covering 2011 to 2020. The results reveal that cash flow volatility is significantly and positively related to capital structure of MENA and African firms. The results also reveal that fixed assets have a negative moderating impact on the relationship between cash flow volatility and the capital structures of MENA and African firms. The results are robust to different estimation techniques. The findings inform managers to consider cash flow stability as a major factor in corporate risk management and strategic decision making and consider fixed asset investment decisions and the quality of fixed assets as a significant factor in debt choice. Moreover, policymakers should formulate efficient capital structure policies that consider cash flow stability factors and encourage fixed asset investments.This study investigates the direct impact of cash flow volatility on capital structure (i.e., debt ratio) and examines the moderating impact of fixed assets on the link between cash flow volatility and capital structure of listed firms in 20 Middle East and North Africa (MENA) and African countries spanning 2011 to 2020 applying the panel two-step system generalized method of moment as the main estimation method. The findings reveal that cash flow volatility increase debt ratio in the firms’ capital structure while the fixed assets negatively moderate the positive link between cash flow volatility and debt ratio in the firms’ capital structure. The findings suggest that managers should consider cash flow stability and fixed assets quality as important factors in corporate risk management and debt choice. Besides, policymakers and investors should encourage capital structure and investment policies that consider cash flow stability and quality of fixed assets to mitigate risk of financial distress that can reduce investment value. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2373255 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2373255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2373255 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2431535_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Davinder Malhotra Author-X-Name-First: Davinder Author-X-Name-Last: Malhotra Author-Name: Rahul Singh Author-X-Name-First: Rahul Author-X-Name-Last: Singh Author-Name: L. Ramani Author-X-Name-First: L. Author-X-Name-Last: Ramani Title: Navigating market volatility: risk and return insights from Indian mutual funds Abstract: This study evaluates Indian mutual funds using a variety of criteria, demonstrating a historical tendency of lower monthly returns and volatility when compared to benchmark indexes. This positive risk profile implies that it will appeal to investors who want stability. Despite COVID-19-induced market volatility, mutual funds persistently outperform benchmark indices in terms of average return per unit of risk, highlighting their potential as a dependable investment option for stability seekers. Furthermore, Indian mutual funds routinely beat benchmark indexes in risk-adjusted terms. Despite having a positive alpha, it lacked statistical significance, indicating a possible reliance on market volatility rather than managerial ability. Notably, while mutual fund managers demonstrated ability in asset selection, they lacked market timing abilities. The study also reveals that Indian mutual funds may demonstrate a considerably reduced downside risk in unfavorable market circumstances than comparable benchmarks.This study is valuable because it offers a thorough examination of Indian mutual funds, which may reveal a lot about their risk and return characteristics. The study demonstrates how, during difficult periods like the COVID-19 pandemic, these funds with reduced volatility and superior risk-adjusted returns consistently beat indexes. A stability-focused investor may learn about the benefits of Indian mutual funds for stock selection and the fault lines for market timing from this study. By increasing understanding of how mutual funds function in new markets, it provides investors and fund managers with a competitive edge over other investing professionals. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2431535 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2431535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2431535 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2296195_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nikhil M. N. Author-X-Name-First: Nikhil Author-X-Name-Last: M. N. Author-Name: Sandeep S. Shenoy Author-X-Name-First: Sandeep S. Author-X-Name-Last: Shenoy Author-Name: Suman Chakraborty Author-X-Name-First: Suman Author-X-Name-Last: Chakraborty Author-Name: Lithin B. M. Author-X-Name-First: Lithin Author-X-Name-Last: B. M. Title: Is the nexus between capital structure and firm performance asymmetric? An emerging market perspective Abstract: The nature of the relationship between leverage and firm performance has been a subject of investigation in extant literature. We re-examine the nature of the association by using a sample of 78 non-financial firms listed in the Nifty 100 index during the 2013-2023 period by applying the quantile regression technique and comparing the result with the linear regression approach (system GMM technique). Our empirical analysis demonstrates that leverage negatively impacts the performance of firms. Further, results show that the association is non-homogeneous among firms of different quantiles: leverage withers the performance of highly profitable firms (upper quantile) than low profitable firms (lower quantile). The identified concave relationship highlights the prominence of optimal capital structure and the role of finance managers in designing a sound financial policy that matches firm characteristics and borrowing requirements. The findings of our study draw insightful implications for managers and policymakers while contributing to the ongoing leverage and firm performance debate reported in previous studies.Since the pioneering work of Modigliani and Miller, the debate on the relationship between Capital Structure (CS) and Firm Performance (FP) has been a subject of discussion. Consequently, the CS and FP linkage has garnered the attention of several academic scholars. However, the majority of the empirical studies have demonstrated a linear link between CS and FP, whereas the studies on the nonlinear relationship are scant in the existing scholarly studies. Thus, to provide more insights, we used quantile regression techniques, and our results corroborate that the CS and FP relationship is non-homogeneous among Indian firms. To succinctly put, the magnitude of the negative impact of leverage is found to be more around highly profitable firms. Our regression result highlights the importance of maintaining the right capital mix and suggests that large firms should refrain from excessive borrowing. Further, we contend that policymakers must strengthen corporate governance mechanisms and restrict the earnings management activities of the management. Overall, our robust findings enhance the existing body of knowledge while drawing significant implications for management, policymakers, and other stakeholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2296195 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2296195 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2296195 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2418910_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ranik Raaen Wahlstrøm Author-X-Name-First: Ranik Raaen Author-X-Name-Last: Wahlstrøm Author-Name: Linn-Kristin Becker Author-X-Name-First: Linn-Kristin Author-X-Name-Last: Becker Author-Name: Trude Nonstad Fornes Author-X-Name-First: Trude Nonstad Author-X-Name-Last: Fornes Title: Enhancing credit risk assessments of SMEs with non-financial information Abstract: We investigate non-financial variables for predicting bankruptcy in small and medium-sized enterprises (SMEs). The variables encompass management, board and ownership structures and are sourced from universally accessible information, rendering them available to all stakeholders and allowing for the analysis of all SMEs within a market. Using a large and recent sample of SMEs, we empirically examine the variables that predict bankruptcy over time horizons of one, two and three years. Our analysis incorporates state-of-the-art discrete hazard models, the least absolute shrinkage and selection operator (LASSO), extreme gradient boosting (XGBoost), adaptive boosting (AdaBoost), bagging and random forest. We also test robustness using balanced datasets generated using the synthetic minority oversampling technique (SMOTE). We find that including non-financial variables enhances bankruptcy predictions compared to using financial variables alone. Moreover, our results show that among our variables, the most significant non-financial predictors of bankruptcy are the age of chief executive officers (CEOs), chairpersons and board members, as well as ownership share and place of the board members’ residences.This research provides critical insights into the drivers of inflation in Ethiopia, offering policymakers a robust analysis of key economic factors influencing price stability. By identifying the money supply, exchange rate, and service sector GDP as primary inflation-augmenting variables and highlighting the counteracting roles of import volume and budget deficit, this study equips decision-makers with a focused understanding of the economic levers they can adjust to control inflation. The findings underscore the importance of adopting conservative monetary and exchange policies and promoting agricultural and industrial productivity, offering a roadmap to mitigate inflation’s adverse effects and foster sustainable economic growth in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2418910 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2418910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2418910 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2295191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Maxwell Chukwudi Udeagha Author-X-Name-First: Maxwell Chukwudi Author-X-Name-Last: Udeagha Author-Name: Nicholas Ngepah Author-X-Name-First: Nicholas Author-X-Name-Last: Ngepah Title: A roadmap to a green economy in South Africa: modelling technological innovation and energy consumption in the novel dynamic ARDL simulations framework Abstract: South Africa’s heavy reliance on fossil fuels has posed significant challenges to environmental sustainability, primarily due to the associated climate change concerns. To combat these issues, the South African government has turned to technological innovation. However, research examining the combined impact of technology and energy use on environmental quality in the country remains scarce. This study aims to fill this gap by utilizing a novel dynamic autoregressive distributed lag (DARDL) simulation framework to analyze the influence of various factors on CO2 emissions from 1960 to 2020. Key findings include that technological innovation contributes to CO2 emission reduction over both short and long terms. The "scale effect" exacerbates emissions, while the "technique effect" mitigates them, aligning with the environmental Kuznets curve (EKC) hypothesis. Additionally, energy consumption, foreign direct investment, and industrial value-added have adverse impacts on environmental quality. Surprisingly, increased trade openness, despite short-term benefits, proves detrimental to the environment over the long term, supporting the pollution haven hypothesis (PHH). In light of these findings, the study emphasizes the vital role of technological innovation in achieving energy security and ecological integrity. South Africa’s government and policymakers should consider this as a clean technology source to address climate change and bolster environmental sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2295191 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2295191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2295191 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2344733_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: K. Nirmal Ravi Kumar Author-X-Name-First: K. Nirmal Author-X-Name-Last: Ravi Kumar Author-Name: G. Mohan Naidu Author-X-Name-First: G. Mohan Author-X-Name-Last: Naidu Author-Name: Adinan Bahahudeen Shafiwu Author-X-Name-First: Adinan Bahahudeen Author-X-Name-Last: Shafiwu Title: Exploring the drivers of Indian agricultural exports: a dynamic panel data approach Abstract: This study delves into dynamics and determinants of agricultural exports from India. India’s agricultural export basket is heavily reliant on a limited range of commodities, including basmati rice, buffalo meat, spices, tea, coffee, and marine products. Such concentration poses risks, making the sector vulnerable to price fluctuations, changes in global demand, and challenges in accessing specific markets. Furthermore, the declining ratio of export value to import value in recent years indicates an unfavourable trade imbalance. To address these challenges and foster sustainable growth in the agricultural export sector, policymakers must gain a comprehensive understanding about the determinants for agricultural exports. So, this study utilizes panel data encompassing 40 agricultural export items over an 11-year period. The researchers employ the system Generalized Method of Moments (GMM) estimation and the findings showed positive and significant impact of past export performance on current export decisions. Moreover, the study highlights the positive and significant influences of gross output of agriculture, value-added activities in agricultural sector, gross domestic product, trade openness, foreign direct investment, water use efficiency, corruption index and exchange rate dynamics on quantum of agricultural exports. However, higher consumer prices have a negative effect on export quantities, emphasizing the importance of price competitiveness in international markets. The findings of this study provide valuable insights for diversifying the export basket, enhancing productivity, value addition, and sustainability. Addressing challenges related to trade imbalances and price competitiveness is crucial for driving growth in India’s agricultural sector, benefiting farmers, the economy, and the nation as a whole.This study sheds light on the dynamics and determinants of agricultural exports from India, offering valuable insights for policymakers and stakeholders. By analyzing a panel dataset of 40 agricultural export items using the system Generalized Method of Moments (GMM) estimation, the study uncovers key factors influencing export performance. The findings underscore the importance of past export momentum, agricultural output, economic factors, water use efficiency, corruption levels, population size, and consumer prices in shaping agricultural exports. Importantly, the study highlights the need for diversifying India's agricultural export portfolio to mitigate risks associated with concentration on a few commodities, address trade imbalances, and enhance export competitiveness. The recommendations provided, including focusing on sustainable growth, enhancing productivity, value addition, trade policy reforms, attracting foreign investment, and investing in skill development, are crucial for fostering long-term growth and stability in India's agricultural export sector. Despite certain limitations, this study lays a solid foundation for future research and policy interventions aimed at ensuring sustainable development and resilience in India's agricultural exports. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2344733 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2344733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2344733 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426532_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thanh Huu Vu Author-X-Name-First: Thanh Huu Author-X-Name-Last: Vu Title: Liquidity coverage ratio and profitability: an inverted U-shaped pattern Abstract: The aim of this paper is to investigate the relationship between the Liquidity Coverage Ratio (LCR) and profitability in the banking sector of Vietnam, focusing on determining how LCR impacts profitability while identifying the optimal level of LCR that balances liquidity management and profitability. The study uses a sample of 20 banks from Q1 2015 to Q4 2022. Profitability is measured through Return on Assets (ROA) and Net Interest Margin (NIM). Employing a system GMM estimator to explore the quadratic effect of LCR on profitability, the results demonstrate an inverted U-shaped relationship. Initially, increases in LCR enhance profitability, reflecting better liquidity management. However, beyond optimal points (approximately 5.89 for ROA and 7.47 for NIM), further increases in LCR lead to diminishing returns, indicating that excessively high liquidity buffers impose opportunity costs and reduce profitability. These findings underscore the importance of balancing liquidity and profitability in banking operations. This study is novel in its use of the system GMM estimator to investigate the quadratic relationship between LCR and profitability in the Vietnamese banking sector, offering new insights into how banks can optimize liquidity management to enhance profitability. Unlike previous studies, this paper identifies specific optimal LCR thresholds for ROA and NIM, providing actionable benchmarks for banking operations.This study contributes valuable insights into the relationship between the Liquidity Coverage Ratio (LCR) and profitability within the Vietnamese banking sector. By identifying a specific optimal LCR threshold for Vietnamese banks, the research offers actionable benchmarks that enable financial institutions to balance liquidity and profitability more effectively. These findings underscore an inverted U-shaped relationship between LCR and profitability, wherein initial increases in LCR enhance bank performance through better liquidity management. However, profitability diminishes as LCR exceeds optimal levels, highlighting the potential opportunity costs associated with maintaining excessive liquidity. This study's application of a dynamic two-step Generalized Method of Moments (GMM) estimator further provides a rigorous and robust analysis, addressing endogeneity concerns often present in banking studies. Ultimately, these insights equip Vietnamese banks and regulatory bodies with practical tools to enhance financial stability and operational efficiency in a dynamic economic landscape. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426532 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426532 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2299609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Per Bjarte Solibakke Author-X-Name-First: Per Bjarte Author-X-Name-Last: Solibakke Title: Constant relative risk aversion utility and consumption CAPM: discount factors and risk aversions for Norway, Sweden, and the UK Abstract: This paper applies the newly suggested Markov chained Monte Carlo Surface Sampling Algorithm of Zappa estimating European discount factors and relative risk aversions for the CRRA utility functions based on the consumption capital asset pricing model (CCAPM). The relatively challenging estimation focuses on parameter equalities and their interpretations for three European countries, Norway, Sweden, and the UK. Moreover, European consumer behavior regarding risk and inter-temporal consumption substitution (including asset markets risk pricing) are of general interest applying robust estimation techniques. The empirical results from sssthe non-parametric Bayesian estimation technique with reported parameter paths, densities and diagnostics are compared. The UK (Swedish) investors show the highest (lowest) risk aversion (and lowest (highest) inter-temporal substitution in consumption). However, the risk aversion coefficient distributions are relatively wide, with an insignificant parameter for Sweden and Norway, and a significant parameter for the UK. The stochastic discount factor is approximately equal for all three countries reporting a yearly discount factor of 0.99. The quarterly discount factor is lowest for Sweden (0.997) followed by Norway and the UK (0.998), indicating that Sweden has the most impatient consumers. Bivariate conditional densities and simulation paths are extracted for interpretative purposes, specifically excessive shocks.The paper uses the national account data for inflation adjusted household consumption (non-durables and services) together with inflation adjusted stock (index) with dividends on all stock series for Norway, Sweden, and the UK. The most interesting aspect of Asset Pricing considers how securities markets price risk (the time dimension alone is largely mechanical). For this question to be interesting, it must be that there is a positive price for risk – i.e. investors require some compensation for exposing their portfolios to risk. This in turn requires that investors dislike risk or that they are risk averse. This paper’s main interest is therefore the stochastic discount factor for the constant relative risk aversion utility as described in the marginal rate of substitution. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2299609 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2299609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2299609 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2375341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Panern Intara Author-X-Name-First: Panern Author-X-Name-Last: Intara Author-Name: Nittikorn Suwansin Author-X-Name-First: Nittikorn Author-X-Name-Last: Suwansin Title: Intangible assets, firm value, and performance: does intangible-intensive matter? Abstract: This study examines the effects of intangible assets and all components of intangible assets on Thai-listed companies’ firm value and performance. The aggregate value of intangible assets and three components of intangible assets, namely identifiable intangible assets (IIA), goodwill (GW), and research and development (R&D), were used as test variables. Firm value, measured by Tobin’s Q, and two measurements of firm performance, return on assets (ROA) and return on equity (ROE), were used as dependent variables. The final sample includes 3,701 observations for ten years from 2012 to 2021 in Thailand. Ordinary least square (OLS) was employed to test the hypotheses. Estimated results show that the aggregate value of intangible assets affects firm value positively. When the aggregate value of intangible assets was classified into three components, IIA positively impacted firm value. In contrast, GW and R&D positively impacted both firm value and performance. We further separated our observations into two groups based on the intangible-intensive profile (IIP). We confirmed that the positive impacts of IIA, GW, and R&D on firm value and performance were higher for IIP firms than for non-IIP firms.This study explores the impact of intangible assets on the value and performance of Thai listed companies. We focused on three main components: identifiable intangible assets (IIA), research and development (R&D), and goodwill (GW), along with the aggregate of intangible assets (IA). Results show that these assets positively affect firm value and performance, especially in firms with high intangible-intensive profiles (IIP). The findings highlight that internal processes and unique, inimitable resources drive a firm’s success. Intangible assets collectively contribute to value creation. For executives, prioritizing intangible assets can enhance performance and competitiveness. Investors should focus on intangible assets, particularly R&D, when evaluating stocks. This study contributes to the literature by clarifying the role of intangible assets in firm performance and value, particularly concerning intangible-intensive profiles. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2375341 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2375341 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2375341 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2388234_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Mohamud Hussein Mohamud Author-X-Name-First: Mohamud Hussein Author-X-Name-Last: Mohamud Author-Name: Fartun Ahamed Mohamud Author-X-Name-First: Fartun Ahamed Author-X-Name-Last: Mohamud Author-Name: Atta Gul Author-X-Name-First: Atta Author-X-Name-Last: Gul Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Bashir Mohamed Osman Author-X-Name-First: Bashir Mohamed Author-X-Name-Last: Osman Author-Name: Seadya Mohamed Ahmed Author-X-Name-First: Seadya Mohamed Author-X-Name-Last: Ahmed Title: Unemployment rate and the gross domestic product in Somalia: Using frequentist and Bayesian approach Abstract: Gross domestic product (GDP) serves as a vital indicator of a country’s economic health, influenced by factors such as unemployment rates, export-import dynamics, and inflation rates. Understanding the intricate relationship between GDP and unemployment is crucial for navigating the dynamic business environment. This study investigates this relationship in Somalia using both frequentist and Bayesian regression approaches. The frequentist approach, particularly ordinary least squares, is chosen for its widespread use and simplicity in estimating parameters by minimizing the sum of squared deviations. Meanwhile, the Bayesian approach is adopted for its flexibility in integrating prior information and updating estimates as new data emerge, providing a probabilistic framework that accommodates parameter uncertainty. Secondary data from the World Bank spanning 1991–2020 were analyzed. The results reveal a significant negative association between unemployment and GDP in both models. Comparative analysis employing mean absolute error, root mean square error, and mean square error indicates comparable predictive accuracy between the two approaches, with the Bayesian model demonstrating slight advantages. Bayesian convergence diagnostics affirm satisfactory model stability. These findings offer valuable insights for policymakers, aiding in the formulation of strategies to address unemployment challenges and stimulate economic growth in Somalia.The study investigates the relationship between unemployment and GDP in Somalia, employing both frequentist and Bayesian statistical methods. The frequentist approach provides point estimates and confidence intervals based on observed data, while the Bayesian approach incorporates prior knowledge and uncertainty into the analysis, yielding posterior distributions. By comparing these methods, the research aims to provide a comprehensive understanding of how GDP influences unemployment rates and vice versa. The results highlight the strengths and limitations of each approach, offering valuable insights for economic policymakers and contributing to the broader field of economic analysis in developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2388234 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2388234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2388234 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2417760_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Thanh Nga Thi Tran Author-X-Name-First: Thanh Nga Author-X-Name-Last: Thi Tran Title: Liquidity creation and banking stability: an approach using the Bayes method Abstract: This research used the Bayesian method and Gibbs sampling algorithm on an unbalanced database and examined the impacts of the liquidity creation (LC) on the financial stability (FS) of the banks in Southeast Asian countries from 2007 to 2021. With both ‘Cat Fat’ and ‘Cat Nonfat’ method, the study results point out that LC has a positive impact on the BS within the ASEAN by enhancing the stability level of banks in these countries. The study findings of the impact of liquidity creation (LC) on banking stability (BS) within the Association of Southeast Asian Nations (ASEAN) are critically important because they provide profound implications for regulators and bank managers in determining LC behavior in emerging markets. These outcomes are particularly relevant to liquidity regulations as per Basel III standards. As such, assets with more liquidity are to be held while loans and deposits with illiquidity might cause unexpected effects when LC is reduced. More importantly, this article also contributes empirical results on the relationship between LC and BS. This is the first study to examine the correlation between LC and financial stability of Southeast Asian banks.The study findings of the impact of liquidity creation (LC) on banking stability (BS) within the Association of Southeast Asian Nations (ASEAN) are critically important because they provide profound implications for regulators and bank managers in determining LC behavior in emerging markets. These outcomes are particularly relevant to liquidity regulations as per Basel III standards. As such, assets with more liquidity are to be held while loans and deposits with illiquidity might cause unexpected effects when LC is reduced. More importantly, this article also contributes empirical results on the relationship between LC and BS.Originality/value: This is the first study to examine the correlation between LC and financial stability of Southeast Asian banks. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2417760 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2417760 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2417760 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2411559_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ahmad Ahmad Author-X-Name-First: Ahmad Author-X-Name-Last: Ahmad Author-Name: Ghaleb Abu Rumman Author-X-Name-First: Ghaleb Author-X-Name-Last: Abu Rumman Author-Name: Mohammed Idris Author-X-Name-First: Mohammed Author-X-Name-Last: Idris Author-Name: Nurah Allozi Author-X-Name-First: Nurah Author-X-Name-Last: Allozi Author-Name: Muntaser J. Melhem Author-X-Name-First: Muntaser J. Author-X-Name-Last: Melhem Title: Do bank stock prices efficiently reflect the information content in a key tax reform event? Abstract: This study examines the behavior of bank stock prices in Jordan in relation to a significant tax reform event. We analyze a sample of all banks listed on the Amman Stock Exchange to study the market response to the Amended Income Tax Law 2018. In the proposal period, investors were anticipating a mandatory tax increase of 5%, though the enacted law differed from expectations by implementing only a temporary, slight tax increase of 3%. Our findings reveal that there are higher stock returns observed during the post-approval period of the Amended Income Tax Law 2018 compared to the pre-approval period. This holds for both individual stocks and portfolios, indicating a positive market response to the tax reform. This paper contributes to the existing body of literature that examines pricing anomalies. The findings of this study indicate that when a tax bill is passed with a corporate tax rate lower than the proposed level, it creates a positive earnings surprise. However, the market displays inefficiency in promptly revising its expectations, resulting in a delay in the stock return pattern. This suggests that there is a discrepancy between the market's reaction as implied by the efficient market hypothesis and the actual impact of the tax reform on bank stock prices.This study investigates the impact of a significant tax reform event on the behavior of bank stock prices in Jordan. Using event study methodology, the research examines whether the market responds rationally to the earnings news related to the establishment of the National Solidarity Account, comprising 3% of banks’ taxable income under the enacted Amended Income Tax Law 2018, compared to a higher increase of 5% of banks' taxable income proposed during the pre-approval period of the tax law. The findings suggest that tax laws influence financial markets and affect stock prices, as stock investors extrapolate their prior negative expectations into the future making it possible to trade based on this macroeconomic event. Investor sentiment, limited attention capacity, overconfidence, and anchoring bias could lead investors to react irrationally to actual statistics on the release date by taking prior forecasts at face value. The study has important implications for academics, practitioners and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 9 X-DOI: 10.1080/23322039.2024.2411559 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2411559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2411559 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2416989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Abdikani Yusuf Abdulle Author-X-Name-First: Abdikani Yusuf Author-X-Name-Last: Abdulle Author-Name: Mahdi Mohamed Omar Author-X-Name-First: Mahdi Mohamed Author-X-Name-Last: Omar Title: The role of macroeconomic factors in shaping employment trends in Somalia Abstract: Somalia has one of the most severe unemployment rates globally, due to its economic instability. Our study focuses on the macroeconomic effects on employment using an ARDL model. The key macroeconomic variables examined are GDP, inflation, FDI, foreign aid, and population growth, with data sourced from the World Bank spanning 32 years, from 1991 to 2022. The study found that GDP positively affects employment in both the short and long run. Inflation shows a positive correlation with employment in the short run but a negative effect but insignificant in the long run. FDI has a positive effect in the long run and a negative, insignificant effect in the short run. Foreign aid positively impacts employment in both the short and long run, though the effect is not significant in the latter. the study recommends policies to sustain economic growth, manage population growth, stabilize prices, and improve aid management to enhance employment opportunities in Somalia.This research examines the macroeconomic determinants of employment in Somalia, focusing on the effects of economic growth, inflation, foreign direct investment (FDI), foreign aid, and population growth from 1991 to 2022. Using an ARDL model, the study provides both short-term and long-term insights into how these factors influence employment trends. The findings underscore the positive role of GDP growth and foreign aid in promoting employment, while highlighting the negative impact of rapid population growth on job creation. This work is significant as it offers targeted policy recommendations to address Somalia’s unemployment challenges, emphasizing the need for sectoral diversification, improved governance of foreign aid, and strategies to stabilize FDI flows. The study provides a vital contribution to the limited literature on Somalia’s employment dynamics and serves as a guide for policymakers working to foster sustainable economic growth and job creation. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2416989 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2416989 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2416989 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2354281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Craig R. Everett Author-X-Name-First: Craig R. Author-X-Name-Last: Everett Title: Does more education lead to better startup funding outcomes? Abstract: Much of the extant research on the relationship between founder education level and entrepreneurial success finds that more education is associated with increased success. Using a unique data set of startups from a large startup competition, this paper specifically explores funding success and empirically confirms that more education is associated with an increased likelihood of funding. Additionally, we also find a negative curvilinear aspect to that relationship, meaning that although education generally improves funding, too much education may actually impair funding outcomes.Portrayals of startup founders in entertainment media often show scrappy university dropouts battling to get funding - and then finally bringing their new product successfully to market. This article asks and answers the question as to whether or not this anti-education scenario is truly the norm. Is higher education helpful or not in getting funded? Using data from a large startup competition, where some startups ultimately get funded and others do not, we have the required treatment and control groups to be able to shed light on that research question. A primary impact of this paper is that it shows academics, founders and investors that education level is a positive factor in getting funded. A secondary impact is that there appears to be a negative curvilinear relationship between years of education and funding success. This means that there may be an optimal level of education after which additional education no longer helps attract professional investors, but may actually begin to be an impediment. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2354281 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2354281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2354281 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2370910_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhammad Yusuf Alhadihaq Author-X-Name-First: Muhammad Yusuf Author-X-Name-Last: Alhadihaq Author-Name: Siti Zakiah Author-X-Name-First: Siti Author-X-Name-Last: Zakiah Author-Name: Agung Sudjatmoko Author-X-Name-First: Agung Author-X-Name-Last: Sudjatmoko Author-Name: Alex Winarno Author-X-Name-First: Alex Author-X-Name-Last: Winarno Author-Name: Deni Hermana Author-X-Name-First: Deni Author-X-Name-Last: Hermana Title: How creative self efficacy foster entrepreneurial intention through creative process engagement in entrepreneurial higher education ecosystem Abstract: Efforts to enhance entrepreneurial intention among students entail a complex learning process. Understanding the function of the entrepreneurial education ecosystem (EEE) based on social interactions, learning demands, and supportive resources is essential. The aim of this study is to elucidate the influence of the EEE on entrepreneurial intention through creative self-efficacy (CSE) and creative process engagement (CPE) in higher education. Using a causal study with a survey utilizing questionnaires on 354 randomly selected students who have undergone entrepreneurship education in private university. Inferential analysis employing covariant structural equation modeling (SEM). Research findings indicate that the design of the EEE, including curriculum, practices, research, culture, and entrepreneurship infrastructure in higher education, enhances CSE. The availability of CSE as a personal resource enables students to effectively meet the demands of entrepreneurial learning and engage in the entrepreneurial learning process in the long term. EEE influences CSE, which in turn fosters engagement in the creative process required to support entrepreneurial intentions among university students. The theoretical implication is study of demand-resources (SDR) expands the understanding of the complexity of interactions between entrepreneurial education demands, resources, and entrepreneurial intentions. Practical implication is focused on the development of EEE and CSE based on the study demand-resources approach for enhancing entrepreneurial intention among individuals. Originalities value is expanding the understanding of the demand-resources (DR) model based on research findings regarding the role of EEE positions as environmental resources on the availability of personal resources, namely CSE, and its influence on CPE and entrepreneurial intention.This study expands the scope of the JD-R theory within the context of entrepreneurship learning by demonstrating the importance of learning resources as factors shaping psychological meaning for students. To enhance entrepreneurial intention, entrepreneurship education in universities can adopt the study demand resources approach to realize active learning involving students directly in creative activities, business simulations, and entrepreneurial projects to boost entrepreneurial intention. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2370910 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2370910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2370910 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2379577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Omar Tarda Author-X-Name-First: Omar Author-X-Name-Last: Tarda Author-Name: Hasnah Haron Author-X-Name-First: Hasnah Author-X-Name-Last: Haron Author-Name: Nathasa Ramli Author-X-Name-First: Nathasa Author-X-Name-Last: Ramli Author-Name: Supiah Salleh Author-X-Name-First: Supiah Author-X-Name-Last: Salleh Title: Board gender diversity toward corporate social responsibility disclosure in Palestinian companies: financial performance as mediation Abstract: Societies have witnessed significant shifts in perceptions of gender diversity and gender equality. Consequently, researchers have increased interest in understanding the impact of board of director (BOD) gender diversity on various aspects of social and economic life, including corporate social responsibility (CSR). Although several studies have explored the relationship between BOD gender diversity and social responsibility, research in this area is still limited and suffers from a lack of consistency in findings. In addition, studying the financial performance as a mediating variable provides a more complex and detailed view of this relationship. This article aims to investigate and analyse the effect of BOD gender diversity on CSRD, either directly or indirectly, by financial performance as a mediator. This study investigates a panel data analysis with a sample of 31 companies listed on the Palestine Stock Exchange from 2012 to 2021. This study used the Baron and Kenny approach to test the mediator effect for financial performance between BOD gender diversity and CSR disclosure (CSRD). The results show a significant positive direct relationship between BOD gender diversity and CSRD, and a significant positive direct relationship between BOD gender diversity and financial performance. Furthermore, the results indicate that financial performance partially mediates the relationship between BOD gender diversity and CSRD in Palestinian companies. These results may encourage companies to promote gender diversity in their structures and strategies and implement policies for recruiting women to corporate boards, which has a positive impact on the financial and social sustainability of the organization.The research paper “Board Gender Diversity Towards Corporate Social Responsibility Disclosure in Palestinian Companies: Financial Performance as Mediation” investigates the relationship between board gender diversity, corporate social responsibility (CSR) disclosure, and financial performance in Palestinian companies. By examining this relationship, the study contributes to the growing body of literature on board diversity and CSR in emerging economies, specifically in the context of Palestine.The significance of this work lies in its potential to inform policymakers, corporate leaders, and stakeholders about the importance of promoting board gender diversity as a means to enhance CSR practices and financial performance in Palestinian companies. The findings of this study can guide organizations in developing effective strategies to achieve greater gender diversity on corporate boards, ultimately leading to improved CSR practices and better financial outcomes.Furthermore, this research addresses a gap in existing literature by investigating the mediating role of financial performance in the relationship between board gender diversity and CSR disclosure. The insights gained from this study can contribute to a deeper understanding of the mechanisms through which board diversity influences CSR activities and organizational performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2379577 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2379577 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2379577 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2433023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Irsan Hardi Author-X-Name-First: Irsan Author-X-Name-Last: Hardi Author-Name: Mohd Afjal Author-X-Name-First: Mohd Author-X-Name-Last: Afjal Author-Name: Mohsin Khan Author-X-Name-First: Mohsin Author-X-Name-Last: Khan Author-Name: Ghalieb Mutig Idroes Author-X-Name-First: Ghalieb Mutig Author-X-Name-Last: Idroes Author-Name: Teuku Rizky Noviandy Author-X-Name-First: Teuku Rizky Author-X-Name-Last: Noviandy Author-Name: Resty Tamara Utami Author-X-Name-First: Resty Tamara Author-X-Name-Last: Utami Title: Economic freedom and growth dynamics in Indonesia: an empirical analysis of indicators driving sustainable development Abstract: This study investigates the contributions of economic freedom indicators to Indonesia’s economic growth from 1995 to 2022, applying the Solow growth model within both static and dynamic frameworks. Using Robust Least Squares (RLS) and dynamic methods – such as Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) – and conducting robustness checks with Canonical Cointegration Regression (CCR), the analysis confirms that eight out of nine indicators – particularly business freedom, monetary freedom, trade freedom, property rights, government integrity, tax burden, investment freedom, and financial freedom – positively influence Indonesia’s economic growth. These findings underscore the importance of policies that enhance property rights, minimize government intervention, promote investment, and encourage competitive markets. The study’s insights aim to guide Indonesian policymakers in leveraging economic freedom to foster sustainable, long-term growth.While previous research in Indonesia has assessed the composite impact of the economic freedom index on economic growth, this study stands out by adopting a decomposing approach that evaluates each economic freedom indicator separately. The results provide more comprehensive, evidence-based insights for policymakers seeking to foster sustainable economic growth through enhanced economic freedom. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2433023 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2433023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2433023 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2401477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Fauna Atta Frimpong Author-X-Name-First: Fauna Atta Author-X-Name-Last: Frimpong Author-Name: Ellis Kofi Akwaa-Sekyi Author-X-Name-First: Ellis Kofi Author-X-Name-Last: Akwaa-Sekyi Author-Name: Ibrahim Suleman Anyars Author-X-Name-First: Ibrahim Suleman Author-X-Name-Last: Anyars Author-Name: Akua Peprah-Yeboah Author-X-Name-First: Akua Author-X-Name-Last: Peprah-Yeboah Author-Name: Ramon Saladrigues Sole Author-X-Name-First: Ramon Author-X-Name-Last: Saladrigues Sole Title: Macroeconomic factors and venture capital market liquidity: evidence from Europe* Abstract: The relationship between macroeconomic factors and stock market liquidity is known but not the same can be said of macroeconomic factors and VC market liquidity. This study investigates whether there is a cointegration between macroeconomic factors and VC market liquidity and examines how macroeconomic factors affect VC market liquidity. We perform a panel fully modified OLS regression analysis after carrying out panel cointegration on a country-level dataset of 22 EU/EEA countries from 2000 to 2020. There is a long-run covariance between VC market liquidity and macroeconomic variables. Specifically, a 1% expansion in the size of the economy would lead to 0.652%, 0.927%, 0.661%, 0.723%, and 0.755% increase in VC market liquidity measured by exits through trade sales, IPOs, sales to PE firms, financial institution and MBOs, respectively. The European VC market is progressively increasing in liquidity as can be seen in the UK, France, and Germany. We report that as the size of the economy and money supply increases, VC market liquidity increases. Interest rate is significantly inversely related to VC market liquidity. The result is mostly significant for some exit strategies such as trade sales and IPOs. However, on the whole, inflation and unemployment do not significantly relate to VC market liquidity. This article has practical implications for venture capitalists and investors. It informs investors on which exit route has a significant relation with macroeconomic variables in Europe. The study effectively shows the aggregate impact of the macroeconomic conditions which is usually not the case with firm-level data.In well-developed financial markets, the venture capital (VC) market complements the stock market in providing equity finance. However, the VC market remains underdeveloped even in Europe. This paper attempts to address this market failure by exploring the liquidity of the VC market and its relationship with macroeconomic variables to provide some assurances to market participants. To provide reasonable assurance of minimal losses during the exit stage of VC activities, the VC market in Europe may exit through IPOs, trade sales, Mezzanine financing, MBOs, and sales to private equity firms and financial institutions. We confirm a cointegration between macroeconomic factors and VC market liquidity. The study finds that as the size of the economy and money supply increases, VC market liquidity increases. Interest rate is significantly inversely related to VC market liquidity. Investors and potential investors need not worry about inflation and unemployment because they do not significantly affect VC market liquidity. The paper informs market participants that trade sales and IPOs are the most popular VC exit routes and for that matter, very liquid in Europe. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2401477 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2401477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2401477 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426527_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Title: Transformative pathways: understanding economic growth in Africa using the African Transformation Index Abstract: This study investigates the critical role of structural transformation in African economies and its significance for inclusive growth, utilizing the African Transformation Index (ATI). The core focus is to understand how structural transformation influences economic growth and to highlight key factors driving this process. By employing a Cobb-Douglas production function and panel quantile regression analysis on data from 30 African countries from 2000 to 2022, the research aims to fill a gap in the literature on African economic development. The major findings reveal that the ATI positively impacts GDP per capita growth rates, especially at lower quantiles, indicating that structural transformation is vital for inclusive growth. Conversely, diversification negatively affects growth, highlighting the challenges of overly diversified economies. Additionally, export competitiveness and productivity improvements contribute positively to growth, while technology upgrading shows significant impact mainly at lower quantiles. Human well-being is identified as a crucial driver of growth, particularly at middle quantiles. The significance of these findings lies in their policy implications: prioritizing structural transformation, enhancing export competitiveness, improving productivity, and focusing on human well-being are essential for achieving sustainable and inclusive growth in Africa. This research provides empirical evidence on the importance of structural transformation and offers valuable insights for policymakers aiming to foster sustainable development in African economies.This study looks into the transformative potential of structural change in driving inclusive economic growth across African economies. By leveraging the African Transformation Index (ATI), our findings highlight how targeted structural reforms, improved export competitiveness, and productivity gains can significantly bolster GDP per capita, especially in countries with lower initial growth levels. The research reveals critical insights for policymakers: over-diversification may hinder growth, while a focus on key drivers like human well-being and technology upgrading at strategic economic stages can sustain long-term growth. These insights are essential for guiding policy frameworks that promote sustainable economic development, alleviate poverty, and foster inclusive growth throughout Africa. This study thus fills a critical knowledge gap, providing an empirical foundation for advancing structural transformation policies across the continent. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426527 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426527 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426527 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2321069_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Khwazi Magubane Author-X-Name-First: Khwazi Author-X-Name-Last: Magubane Title: Financial cycles synchronisation in South Africa. A dynamic conditional correlation (DCC) Approach Abstract: The study analyzed the extent of financial cycle synchronization, as represented by the Aggregate Financial Cycle and the Credit and Housing Cycle, in South Africa from 1975q1 to 2023q4 using the Dynamic Conditional Correlation model and the Vector Erro Correction Mechanism. Financial cycles are a significant source of systemic risks monitored by both the Prudential Authority and the South African Reserve Bank through macroprudential policies in South Africa. Understanding the interactions among these cycles can improve the formulation of such policies. The findings indicated a higher level of homogeneity in the stability, size, and movement of financial cycles compared to their relationship with business cycles, suggesting an increased synchronization of financial cycles. Additionally, the results highlighted strong correlations among financial cycles, intensifying during financial crisis episodes. This finding underscores that there are significant contagion effects during times of financial turmoil in South Africa. Moreover, the analysis revealed a positive long-term relationship between financial cycles, reflecting the procyclicality of the South African financial system and its tendency to amplify economic fluctuations, exacerbating both booms and busts. In light of these findings, policymakers should prioritize coordinated macroprudential measures to mitigate systemic risks, enhance financial stability, and bolster the resilience of the overall financial system, especially during times of crisis.The study looked at how different financial cycles connect over time in South Africa. The study found that during financial crises, problems in one part of the financial sector can quickly spread to others. This shows how risky the South African financial system can be, even when things seem to be going well. It’s like a rollercoaster – both the ups and downs can be dangerous. Our findings mean that it’s really important for the government to have strong macroprudential policy rules in place to protect the financial system, especially when things get tough. By doing this, we can help prevent big problems and make sure our economy stays healthy for everyone. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2321069 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2321069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2321069 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2397456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tien D. N. Ho Author-X-Name-First: Tien D. N. Author-X-Name-Last: Ho Author-Name: Takuji W. Tsusaka Author-X-Name-First: Takuji W. Author-X-Name-Last: Tsusaka Author-Name: John K. M. Kuwornu Author-X-Name-First: John K. M. Author-X-Name-Last: Kuwornu Author-Name: Lan M. T. Lam Author-X-Name-First: Lan M. T. Author-X-Name-Last: Lam Author-Name: Thuong T. Vu Author-X-Name-First: Thuong T. Author-X-Name-Last: Vu Title: Does livelihood capital influence the livelihood diversification strategies of smallholder rice farmers? Evidence from the Mekong Delta of Vietnam Abstract: Climate and other shocks threaten the livelihoods of rice farmers in Vietnam, forcing them to diversify their livelihoods. This study investigates the diversification strategies of rice farmers in the Mekong Delta of Vietnam. Based on 405 rice farming households in Tien Giang, Dong Thap, and Can Tho provinces, the results of the Hausman test showed that the four strategies, namely rice farming only, on-farm activities (rice farming and other farming activities), rice and non-farm activities, and on-farm and non-farm activities, were used in this study. A multinomial logit regression was used to measure the influence of rice farmers’ livelihood capital on their adaptive strategies. The results show that human capital (gender, household size, dependency ratio), social capital (extension visits, cooperatives’ membership), natural capital (farm size, land rent, access to water for farming), physical capital (distance to markets, distance to district capital), and financial capital (fixed asset, access to credit, and government support) are significant factors affecting households’ diversification decisions. Intervention programs should encourage farmers, especially women, to participate in cooperative and extension visits to improve their skills, access to credit, and income opportunities.Vietnamese rice households in the Mekong Delta are forced to diversify their sources of income due to the threat posed by climate change. The diversification tactics used by rice households in Vietnam’s Mekong Delta are examined in this study. The Hausman test results, based on 405 rice households in the provinces of Tien Giang, Dong Thap, and Can Tho, indicated that four strategies were employed in this study: rice farming only, on-farm activities (rice farming and other farming activities), rice and non-farm activities, and on-farm and non-farm activities. The impact of livelihood capital on the adaptive strategies of rice farmers was assessed using a multinomial logit model. The findings showed that all major forms of capital—financial, social, physical, and natural—play substantial roles in influencing households’ decisions to diversify. In order to increase farmers’ skills, credit availability, and income prospects, intervention programs should urge farmers—especially women farmers—to take part in cooperative and extension visits. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2397456 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2397456 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2397456 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2398213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tesfamlak Gizaw Author-X-Name-First: Tesfamlak Author-X-Name-Last: Gizaw Author-Name: Zerihun Getachew Author-X-Name-First: Zerihun Author-X-Name-Last: Getachew Author-Name: Malebo Mancha Author-X-Name-First: Malebo Author-X-Name-Last: Mancha Title: Financial development and economic growth: evidence from emerging African and Asian countries Abstract: The connection between financial development (FSD) and economic growth has been the focus of both theoretical and empirical research. However, the specific nature of this relationship depends on factors such as the level of economic development, the extent of financial activities, and integration into the global financial system. The aim of this study is, therefore, to investigate the link between FSD and economic growth in the context of 22 emerging African and Asian countries. And both descriptive and econometric analyses were conducted using panel data from 1981 to 2021. Besides, the study used the Dynamic Common Correlation Effect (DCCE) model, which takes into account cross-sectional dependency, allows for parameter variation, and combines the characteristics of both MG and PMG. The descriptive results indicate that emerging Asian countries have a relatively higher FSD level than emerging African countries, with the average FSD for the sampled emerging countries being 23.74 percent; for emerging Asian countries, it is 30.98 percent; and for emerging African countries, it is 17.71 percent. Furthermore, the econometrics results show that FSD has a positive but negligible influence on the growth of emerging Asian and African nations, suggesting that although there is rapid and sustainable growth, the current level of FSD is insufficient to sustain this trajectory. Thus, among the crucial policy options that policymakers should implement to improve financial sector development and sustain economic growth in emerging African and Asian countries are strengthening institutions, financial openness and liberalization, improving technologies, and digitalizing economies.‘By 2050, 19 of the top 30 world economies will be the ones known today as emerging economies’. According to world economics, the GDP of emerging economies is more than 40 trillion USD, or half of the global GDP in 2023 and 69% of the global GDP growth between 2013 and 2023. Empirical research indicates that stable and effective financial systems, or financial development, including banks and capital markets, are advantageous for economic growth. This is particularly true for developing nations in Asia and Africa, where the financial systems are still less competitive than those in developed nations and are often fragmented and monopolized by the state. In addition, some of these developing nations are currently waiting for the prosperity of Western economies and are immobilized by the sovereign debt crisis in order to capitalize on their economic advantages and seize new markets. Thus, from 1981 to 2021, this study looks into the relationship between FSD and economic growth in Asian and African nations. Through the findings of this study, we contribute to the actualization of the 2050 world economy projection, which predicts the economic power of newly emerging countries. Furthermore, we make readily available evidence-based information for rational and knowledgeable policymakers through our research. As a result, we think that our research strengthens economies not only in Asia and Africa but also in other parts of the world. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 8 X-DOI: 10.1080/23322039.2024.2398213 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2398213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2398213 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2326451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Jerry Ogutu Sumba Author-X-Name-First: Jerry Ogutu Author-X-Name-Last: Sumba Author-Name: Rogers Ochenge Author-X-Name-First: Rogers Author-X-Name-Last: Ochenge Author-Name: Paul Mugambi Author-X-Name-First: Paul Author-X-Name-Last: Mugambi Author-Name: Collins Muimi Musafiri Author-X-Name-First: Collins Muimi Author-X-Name-Last: Musafiri Title: Public debt and macroeconomic stability among sub-Saharan African countries: a system GMM test approach Abstract: This study examined the effect of public debt on macroeconomic stability among 45 sub-Saharan African (SSA) countries for the period 2005–2022 using the two-step system Generalized Method of Moments (GMM). The study disaggregated public debt into domestic and foreign borrowing and determined the effect of each on inflation and economic growth. In agreement with recent studies, we found compelling evidence of negative effect of both domestic and foreign borrowing on economic growth and a positive effect on inflation among SSA countries. The empirical results reveal that a unit increase in domestic borrowing reduces economic growth by 0.06 percent and raises inflation by about 0.14 percent, while the same increase in foreign borrowing reduces economic growth by 0.01 percent and increases inflation by 0.05 percent holding other factors constant. These results imply that increase in public debt causes macroeconomic instability, and that domestic borrowing has a relatively larger impact on macroeconomic variables compared to foreign borrowing. The policy implication of the current study is that SSA countries should avoid excessive borrowing by operating a fiscal deficit within individual country threshold limits to contain growth in public debt. The SSA countries should also ensure borrowed funds are channeled into projects that bring revenue and other investment opportunities to amortize the debt stock.Accumulation of public debt tend to have a negative impact of the countries macroeconomic stability depending on how it is financed. This is common especially in developing countries where different debt instruments among them domestic and foreign borrowing are used as mean to mobilize financial resources for covering budget deficit as well as investment in development projects. This study determines the effect of public debt (domestic and foreign) on main macroeconomic variables (inflation and economic growth) to determine the effect of each tool on the selected variables in sub-Saharan African countries. The results of this study will help the policy makers in choosing appropriate debt instrument to minimize negative effect on macroeconomic stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2326451 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2326451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2326451 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426531_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Frederick Pobee Author-X-Name-First: Frederick Author-X-Name-Last: Pobee Author-Name: Ernest Mensah Abraham Author-X-Name-First: Ernest Author-X-Name-Last: Mensah Abraham Author-Name: Abdul Bashiru Jibril Author-X-Name-First: Abdul Bashiru Author-X-Name-Last: Jibril Title: A socio-economic analysis of the adoption of the sharing economy Abstract: The rapid growth of ride-hailing platforms has transformed urban transportation worldwide, with significant implications for developing countries. This study departs from most research on the sharing economy, which primarily focuses on technological factors that influence the sharing economy. Instead, it investigates socio-economic factors that influence the adoption of the sharing economy, particularly the ride-hailing platforms in a developing country. A purposive sampling technique was employed to gather data from 777 respondents through an online survey in Ghana. The Smart PLS Structural Equation Modelling software was used to analyze the data. The data analysis revealed that the availability of regulatory framework, cultural norms, income level, and digital infrastructure positively and significantly influence behavioural intention to use ride-hailing platforms. The data further shows that behavioural intention significantly influences the actual use of ride-hailing platforms. This research contributes to the evolving discourse on the impact of technological innovations on transportation systems in developing nations. Policymakers can leverage these findings to create effective regulations, promote digital infrastructure development, and support equitable access to ride-hailing services. Ultimately, the research underscores the significance of ride-hailing platforms as a valuable tool for sustainable urban mobility in developing countries.This study highlights the crucial role of socio-economic factors—such as regulatory frameworks, cultural norms, income levels, and digital infrastructure, in shaping the adoption of ride-hailing platforms in Ghana. Unlike previous studies that center on technological drivers, this research provides an understanding of socio-economic factors’ impact on consumers’ adoption of ride-hailing platforms. The findings reveal that these socio-economic factors significantly impact users’ willingness to adopt ride-hailing services, ultimately affecting actual usage. The insights gained can guide policymakers in crafting regulations, fostering digital infrastructure, and ensuring equitable access. This work emphasizes the potential of ride-hailing platforms to enhance sustainable urban mobility in developing nations, paving the way for more inclusive transportation solutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426531 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426531 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426531 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2398734_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Kwadwo Danso-Mensah Author-X-Name-First: Kwadwo Author-X-Name-Last: Danso-Mensah Author-Name: Richmond Atta-Ankomah Author-X-Name-First: Richmond Author-X-Name-Last: Atta-Ankomah Author-Name: Robert Darko Osei Author-X-Name-First: Robert Darko Author-X-Name-Last: Osei Author-Name: Isaac Osei-Akoto Author-X-Name-First: Isaac Author-X-Name-Last: Osei-Akoto Title: The redistributive and welfare impact of fiscal policies in Ghana: new evidence from CEQ methodology Abstract: This study presents evidence on the effect of fiscal policies on poverty and inequality in Ghana for the 2017 fiscal year based on the Commitment to Equity (CEQ) assessment framework. Also, the CEQ framework was used to simulate the short-term distributional consequences (‘morning-after’ effects) of Ghana’s Free Senior High School (SHS) Policy and utility subsidies during the COVID-19 pandemic. We find that government spending and taxation in Ghana lowered inequality (Gini coefficient) by 5.94 percentage points. We also find a reduction in poverty rates, but this was mainly driven by in-kind benefits associated with public spending on health and more so education, without which poverty rate would have been higher. In its blanket form, the ‘morning-after’ effects of the Free SHS Policy was a marginal reduction in both inequality and poverty. We find further that in contrast to the effect of the blanket subsidy on water, the subsidies on electricity which had some elements of targeting reduced both poverty and inequality, but marginally. The findings underscore the need for more targeted subsidy and spending programmes to enhance their short-term poverty reduction and redistributive impacts.This study investigates the effect of fiscal policies on poverty and inequality in Ghana using the Commitment to Equity (CEQ) assessment framework. The study has far-reaching implications on development policy and also makes an empirical contribution to the literature with respect to the relationship between fiscal policies and welfare in developing countries. The study sheds light on the effectiveness of government fiscal policies at redistributing income, and how specific adjustments to taxation and social spending would mean for poverty and inequality. Indeed, the subject area of this study relates directly to Sustainable Development Goal (SDG) 10, which seeks to reduce inequality within and across countries, of which the redistributive impact of fiscal policy has been adopted as an official indicator. While the key results from this study are important for tracking SDG 10 in Ghana, they are also useful in guiding policy makers on choosing fiscal policy instruments that do not only address prevailing macroeconomic imbalances but also improve on poverty and inequality situation in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2398734 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2398734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2398734 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2413657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ruth T. Gumede Author-X-Name-First: Ruth T. Author-X-Name-Last: Gumede Author-Name: Lorraine Greyling Author-X-Name-First: Lorraine Author-X-Name-Last: Greyling Author-Name: Brian T. Mazorodze Author-X-Name-First: Brian T. Author-X-Name-Last: Mazorodze Title: The impact of government spending on well-being: a case of upper middle-income countries and high-income countries Abstract: The welfare effects of government redistributive policy have been subject to considerable debate for decades. Against this background, this study explores the effect of government social spending on an empirically constructed measure of well-being in a panel of 16 upper middle-income countries and 38 high-income countries observed between 2002 and 2019. The study utilises the Generalised Method of Moments (GMM) Model to estimate the empirical relationship between government social spending and well-being. The results suggest that welfare gains in upper middle-income countries are derived from redistributive spending that prioritises schooling. On the other hand, rich countries are more likely to benefit from health-related spending. Based on the results the study confirms that disaggregated social spending in upper middle-income nations and wealthy nations does not impact aggregate well-being uniformly. Therefore, efforts to improve aggregate welfare through government redistributive spending ought to consider these attendant heterogeneities.This study examines the association between government social spending and well-being using a panel dataset of 54 upper middle-income and high-income countries. The novel feature of this investigation is embedded in the construction of the aggregate well-being index. We employed the Principal Components Analysis (PCA) technique to build a composite well-being index. This well-being indicator incorporates age dependency, access to water, access to sanitation, and life expectancy, the institutional quality is measured by four indicators which are government effectiveness, control of corruption, political stability and rule of law, environment degradation (CO2 emissions) and economic growth (GDP). This approach is expected to contribute substantially to the scarce literature in the field of well-being in upper middle-income countries and higher-income countries. A focus on well-being research is important since improved well-being leads to a better quality of life and stimulates economic performance through its influence on human development. The findings suggest that welfare gains in upper middle-income economies are attributed to social spending that prioritizes education. In contrast, wealthy countries are more likely to benefit from health-related spending. Policymakers should develop redistributive policies that address the specific needs of each region since evidence demonstrates that disaggregated social spending in upper middle-income countries and wealthy nations does not influence aggregate well-being uniformly. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2413657 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2413657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2413657 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2369278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Yu Kuramoto Author-X-Name-First: Yu Author-X-Name-Last: Kuramoto Author-Name: Koichiro Takeuchi Author-X-Name-First: Koichiro Author-X-Name-Last: Takeuchi Author-Name: Honoka Nabeshima Author-X-Name-First: Honoka Author-X-Name-Last: Nabeshima Author-Name: Sarasa Nakamichi Author-X-Name-First: Sarasa Author-X-Name-Last: Nakamichi Author-Name: Mostafa Saidur Rahim Khan Author-X-Name-First: Mostafa Saidur Rahim Author-X-Name-Last: Khan Author-Name: Yoshihiko Kadoya Author-X-Name-First: Yoshihiko Author-X-Name-Last: Kadoya Title: Temporal dynamics of payment choices: Unraveling the interplay between time preferences and credit card utilization in Japan Abstract: This study investigates whether the present bias influences the payment behavior of credit card holders in Japan. We hypothesize that credit card holders with present bias prefer to delay bill payment, even at the cost of accepting interest charges. To test this hypothesis, we utilize a dataset comprising 128,032 observations from a leading securities company. Our analysis reveals that a significant number of respondents indeed delayed credit card bill payments, suggesting a potential association with present bias behavior. Probit regression models further confirm the link between impatience, impulsivity, and credit card payment behavior. Specifically, impatience and impulsivity exhibit a positive association with credit card payments, indicating that impatient and impulsive credit card users are more likely to postpone payment, even when interest charges are incurred. The implications of this study extend to both credit card users and issuers, highlighting the influential role of impulsivity in the timely payment of bills.This study investigates how present bias affects credit card payment behavior in Japan. Analyzing 128,032 observations from a major securities company, it finds that impatient and impulsive users are more likely to defer payments. The findings of this research have crucial implications for both credit card users and issuers. For users, understanding the role of impulsivity in payment behavior can lead to more informed financial decisions and strategies to avoid unnecessary interest charges. For issuers, recognizing the patterns of present bias can inform the development of products and policies aimed at encouraging timely payments, ultimately benefiting both parties. This study contributes to the literature by providing empirical evidence on the time-inconsistent behavior of Japanese credit card holders and underscores the need for tailored financial education and interventions to mitigate the effects of present bias in financial decision-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2369278 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2369278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2369278 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402893_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Daniel Page Author-X-Name-First: Daniel Author-X-Name-Last: Page Author-Name: David McClelland Author-X-Name-First: David Author-X-Name-Last: McClelland Author-Name: Christo Auret Author-X-Name-First: Christo Author-X-Name-Last: Auret Title: Machine learning style rotation – evidence from the Johannesburg Stock Exchange Abstract: This study evaluates naïve and advanced prediction models when applied to style rotation strategies on the Johannesburg Stock Exchange (‘JSE’). We apply 1- and 3-month style momentum as naïve predictors against three tree-based machine learning (‘ML’) algorithms (advanced predictors), namely Random Forest, XGBoost and LightGBM. Additionally, the study corrects for a shortcoming in the literature by incorporating trading costs into back-tested portfolio sorts. The results of the study are threefold. First, style rotation strategies based on advanced predictors achieve superior risk-adjusted returns when compared to naïve momentum. Of the three ML models applied, XGboost is superior, followed by LightGBM, implying that gradient boosters are superior to less advanced ensemble methods (Random Forest) which are in-turn superior to style momentum. Second, short-term momentum results in the highest share turnover across style rotation strategies, resulting in the largest negative impact associated with trading costs. Third, contrary to similar studies, the incorporation of price momentum as an independent variable in factor spanning tests renders most time-series alphas statistically insignificant.This study considers the application of machine learning ("ML") for style rotation. The results indicate that ML based rotation signals generate excess performance relative to momentum based style rotation when applied on a cross-section of emerging market (South African) listed equities. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402893 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402893 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2417754_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Larry Su Author-X-Name-First: Larry Author-X-Name-Last: Su Title: Common institutional ownership and cost of equity: evidence from publicly listed companies in China Abstract: Using data from 2682 publicly listed companies in China between 2012 and 2022, the study employs panel data regression to investigate the impact of common institutional ownership (CIO) on the cost of equity (COE). The findings indicate that CIO significantly reduces COE, with this reduction attributed to two main factors: the exit threat of common institutional investors (CIIs) and the synergistic governance effect. The results remain robust across alternative measures of COE using the PEG and MPEG models proposed by Easton (2004), as well as endogeneity tests utilizing Two Stage Least Squares. Moreover, the study identifies several factors that influence the strength of the CIO-COE relationship, including industry competitiveness, corporate governance quality, and financing constraints. The findings highlight the importance of leveraging the advantages of CIO in corporate supervision and governance, while also emphasizing the need for effective regulation to prevent collusive behavior and promote market efficiency.The implications of the study contribute to a better understanding of the role of CIO in shaping the COE and have implications for policymakers, regulators, and market participants seeking to enhance corporate governance practices and reduce the COE. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2417754 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2417754 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2417754 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330433_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Alassane Diallo Author-X-Name-First: Alassane Author-X-Name-Last: Diallo Author-Name: Adama Ba Author-X-Name-First: Adama Author-X-Name-Last: Ba Title: From the French franc to the euro, is there an economic impact for the CFA franc zone countries? A ‘bias-corrected’ synthetic control method Abstract: This paper assesses the impact of pegging the CFA franc to the euro – at a fixed parity – on real GDP per capita in the West African Economic and Monetary Union (WAEMU) and the Central African Economic and Monetary Community (CAEMC) countries. Using a set of 35 annual country-level panel data from 1980 to 2019, we apply the 'bias-corrected’ synthetic control estimators to create a 'synthetic country’ (a counterfactual) for each treated CFA country. The counterfactual is a weighted average of comparable countries that best reproduces the initial trends or characteristics of the treated country before the treatment occurs. Except for Equatorial Guinea, which shows a significant positive difference between its real GDP per capita and counterfactual, our results suggest that, overall, there is no statistical evidence that real GDP per capita has increased relative to what it would have been in the absence of the pegging of the CFA to a hard currency following France’s accession to the eurozone.The aim of this paper is to address the lack of relevant literature and empirical results on the impact of the euro changeover on CFA zone economies, using the GDP per capita indicator. This evaluation is interesting at least for two reasons. First, to strengthen the debate with solid quantitative arguments, based on recent impact assessment techniques, and to bridge the positions. Second, such an assessment could guide CFA zone policymakers on appropriate choices, going beyond political-historical and/or strategic reasons, rigorously considering the performance of their countries’ economies related to the pegging of the CFA Franc to the Euro. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330433 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330433 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330433 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2429770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Fatima-Ezzahra Rafie Author-X-Name-First: Fatima-Ezzahra Author-X-Name-Last: Rafie Author-Name: Mostafa Lekhal Author-X-Name-First: Mostafa Author-X-Name-Last: Lekhal Title: Public external debt sustainability assessment: towards a machine learning based approach Abstract: This study addresses the challenge of sovereign external debt sustainability by employing a cointegration test, machine-learning classifiers, and explainable models. Focusing on 22 middle-income countries during the period 2000-2021, our study aims to provide accurate insights into debt positions and capture the complex dynamics between a set of economic and fiscal indicators. Unlike conventional econometric methods, which categorize debt situations as either sustainable or unsustainable over specific periods and often have limitations in generalizing the influences of public policies on debt positions, our machine-learning approach reveals a more nuanced perspective. The results indicate that some countries have encountered episodes of debt unsustainability. These results underscore the substantial role of macroeconomic indicators in shaping a country’s financial position in conjunction with outstanding debt. Furthermore, our findings demonstrate that the impact of each feature varies based on its specific threshold, emphasizing the critical role of exchange rates in straining debt sustainability.This paper redefines sovereign debt sustainability analysis for middle-income countries by applying machine-learning techniques to reveal the influence of key economic indicators, including exchange rates, inflation, GDP growth, and foreign reserves. The findings demonstrate that debt sustainability is shaped by complex interactions between macroeconomic factors rather than debt outstanding, offering policymakers a practical framework to assess debt position with greater accuracy. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2429770 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2429770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2429770 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2364354_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Moges Asmare Sisay Author-X-Name-First: Moges Asmare Author-X-Name-Last: Sisay Author-Name: Mohammed Yimam Ali Author-X-Name-First: Mohammed Yimam Author-X-Name-Last: Ali Author-Name: Berhanu Ferede Author-X-Name-First: Berhanu Author-X-Name-Last: Ferede Title: Fostering prosperity: Economic Growth and Government Sectorial Expenditure in Ethiopia Abstract: This study delves into the complex relationship between government sectorial expenditure and economic growth in Ethiopia from 1980 to 2021. Utilizing a modified endogenous growth model and the ARDL bound test model approach to co-integration, the research uncovers a long-run co-integrating relationship among the variables. The model encompasses nine key variables: Real GDP, Health, Agriculture, Education, Defense, Road, Water expenditures, Consumer Price Index, Foreign Aid, and Government Tax Revenue. In long run, the study reveals significant positive impacts of government health, agriculture, education, road, water sector expenditures, consumer price index, and government tax revenue on economic growth. Conversely, expenditures on the defense sector and foreign aid exhibit negative and significant impacts on long-run economic growth. The comprehensive short-run analysis offers additional insights, with agriculture, defense, and road sector expenditures emerging as positive influencers of economic growth, while education sector expenditure, consumer price index, and foreign aid showcase significantly negative effects. Intriguingly, water sector expenditure emerges as a non-significant contributor to short-term economic growth. Moreover, the study employs the error correction mechanism (ECM) to underscore the dynamic equilibrium between short-run and long-run dynamics, revealing a noteworthy speed of adjustment of 84.75%. This underscores the pivotal role of the ECM in rectifying short-term deviations from long-term equilibria. To sum up, the study advocates for a paradigm shift towards increased expenditure on pro-poor government sectors, alongside the implementation of a well-defined expenditure strategy and efficient budgetary resource management. Such measures, the study posits, hold the potential to serve as catalysts for propelling sustained and inclusive economic growth in Ethiopia.The study examines the intricate relationship between government sectoral expenditure and economic growth in Ethiopia from 1980 to 2021, utilizing a modified endogenous growth model and the ARDL bound test model approach to co-integration. The research uncovers significant findings, demonstrating that expenditures in sectors such as health, agriculture, education, roads, and water positively impact long-term economic growth, while defense expenditures and foreign aid have adverse effects. The short-term analysis reveals varying sector-specific impacts, with agriculture and road expenditures positively influencing growth, whereas health, education, and foreign aid negatively affect it. The study highlights the crucial role of efficient budgetary resource management and the prioritization of pro-poor sectors to achieve sustained and inclusive economic growth. These insights offer valuable guidance for policymakers in optimizing government expenditure strategies to foster economic prosperity in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2364354 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2364354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2364354 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2295155_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Muhamad Umar Mai Author-X-Name-First: Muhamad Umar Author-X-Name-Last: Mai Author-Name: Tjetjep Djuwarsa Author-X-Name-First: Tjetjep Author-X-Name-Last: Djuwarsa Author-Name: Setiawan Author-X-Name-First: Setiawan Author-X-Name-Last: Title: Do board characteristics influence Islamic banks’ capital structure decisions? Empirical evidence from a developing country Abstract: This study investigates the relationship between board characteristics (Sharia boards and boards of directors) and capital structure decisions of Islamic commercial banks (ICBs). The sample consisted of 14 ICBs in Indonesia operated during 2007–2021. The data were analyzed using the random effect model and the feasible generalized least square model. The results reveal that the size and independence of the board of directors and Sharia board expertise have a positive impact on the Indonesian ICBs’ debt-to-total asset ratio decision. Furthermore, board gender diversity encourages ICBs in Indonesia to adopt a lower debt-to-total equity ratio (DTER) while the size and expertise of Sharia boards encourage ICBs to pursue higher DTER. This study reinforces the agency theory’s view regarding the relationship between board characteristics and corporate capital structure decisions.Corporate financial management aims to maximize shareholders’ wealth. Furthermore, making optimal capital structure decisions is one of the functions of a financial manager, in addition to investment decisions and dividend payout policies, in order to achieve company goals. Besides being related to maximizing shareholders’ wealth, the capital structure decisions of Islamic banks also indicate the banks’ compliance with Sharia rules. Therefore, capital structure decisions in the context of Islamic banks become more important. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2295155 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2295155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2295155 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2351374_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Leonard Mushunje Author-X-Name-First: Leonard Author-X-Name-Last: Mushunje Author-Name: Maxwell Mashasha Author-X-Name-First: Maxwell Author-X-Name-Last: Mashasha Title: Non-banking sector development effect on economic growth. A nighttime light data approach Abstract: This paper uses nighttime light (NTL) data to measure the nexus of the non-banking sector, particularly insurance, and economic growth in South Africa. We hypothesize that insurance sector growth positively propels economic growth due to its economic growth-supportive traits like investment protection and optimal risk mitigation. We also claim that nighttime light data is a better economic measure than gross domestic product (GDP). We used weighted regressions to measure the relationships between nighttime light data, GDP, and insurance sector development. We used time series South African GDP data collected from the World Bank for the period running from 2000 to 2018, and the nighttime lights data from the National Geophysical Data Centre (NGDC) in partnership with the National Oceanic and Atmospheric Administration (NOAA). From the models fitted and the reported BIC, AIC, and likelihood ratios, the insurance sector proved to have more predictive power on economic development in South Africa, and radiance light explained economic growth better than GDP and GDP/Capita. We concluded that nighttime data is a better proxy for economic growth than GDP/capita in emerging economies like South Africa, where secondary data needs to be more robust and sometimes inflated. The findings will guide researchers and policymakers on what drives economic development and what policies to put in place. It would be interesting to extend the current study to other sectors, such as microfinance and mutual and hedge funds.This study examines nexus between the non-banking sector, particularly the insurance sector and economic growth in South Africa using nighttime light data (NTL). The study tests the hypothesis that insurance sector growth drives economic growth due to its economic growth supportive traits such as investment protection and optimal risk mitigation. Additionally, we claim that nighttime light data is a good economic measure than gross domestic product (GDP) and GDP/Capita. Using the weighted regressions, we build and fitted two different models: for GDP/Capita and radiance light. From the models fitted, the insurance sector proved to have more predictive power on economic development in South Africa and radiance light proved to explain economic growth better than GDP/Capita. The results from the statistical tests show that, there is indeed a difference between the two and nighttime data is a good proxy for economic growth than GDP/Capita in emerging economies like South Africa. Our results are useful to any country with irregular and poor statistics, especially in developing economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2351374 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2351374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2351374 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2360803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Joseph Owusu Amoah Author-X-Name-First: Joseph Owusu Author-X-Name-Last: Amoah Author-Name: Imhotep Paul Alagidede Author-X-Name-First: Imhotep Paul Author-X-Name-Last: Alagidede Author-Name: Yakubu Awudu Sare Author-X-Name-First: Yakubu Awudu Author-X-Name-Last: Sare Title: Industrialization and carbon emission nexus in Sub-Saharan Africa. The moderating role of trade openness Abstract: This study investigated how trade openness influenced the connection between industrialization and emissions of carbon in Sub-Saharan Africa (SSA). We utilized purposive sampling technique to select 28 SSA countries from 2003 to 2021. The study used Generalised Methods of Moments as the main estimator and Pooled Mean Group as the robustness estimator for the empirical analysis. The findings revealed that industrialization positively impacts carbon emissions in SSA nations. Additionally, the link between industrialization and carbon emissions in SSA nations is positively moderated by trade openness. The findings validate the necessity for governments in Sub-Saharan African nations to restructure their industrialization initiatives in order to lower emissions of carbon. Additionally, strict measures should be implemented to regulate free trade in the SSA region.Global CO2 emissions present a major policy challenge requiring government intervention. With businesses prioritizing expansion, governments in Sub-Saharan Africa need stringent regulations to manage industrial pollution, curb carbon emissions, and control urban development. As environmental issues gain social significance, the demand for stricter pollution controls increases, necessitating comprehensive laws and policies to reduce CO2 emissions in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2360803 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2360803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2360803 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2416993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Author-Name: Ibrahim Abdukadir Sheik-Ali Author-X-Name-First: Ibrahim Abdukadir Author-X-Name-Last: Sheik-Ali Author-Name: Farhia Hassan Mohamed Author-X-Name-First: Farhia Hassan Author-X-Name-Last: Mohamed Author-Name: Salman Sh. Adem Mohamoud Author-X-Name-First: Salman Sh. Adem Author-X-Name-Last: Mohamoud Title: Drivers of FDI inflows in Africa: do trade openness, market size, and institutional quality matter? Abstract: Foreign direct investment serves as a cornerstone for economic development, particularly in lower- and middle-income countries, where it brings crucial capital, technology, and expertise. Despite institutional challenges in many African nations, there is controversy over the effects of macroeconomic variables and institutional quality on FDI flows within diverse economic landscapes. Given the persistent challenges faced by Africa’s least FDI-receiving countries, it is essential to focus on understanding the specific factors that hinder or promote FDI in these nations. Therefore, this study investigates the impact of macroeconomic stability and institutional quality on attracting foreign capital in 24 African economies from 2004 to 2022. Utilizing the pooled mean group (PMG) method, validated by the fully modified ordinary least squares (FMOLS) cointegration technique, the study findings indicate that GDP per capita and domestic investment positively enhance FDI in the long run. This highlights the importance of economic growth and local investment in attracting foreign investment. Institutional quality has also emerged as a significant long-run determinant of FDI. Additionally, currency depreciation is identified as crucial for sustaining increased FDI inflows in African countries. Conversely, trade openness and high inflation hamper FDI inflows in the long-run. Considering these findings, policymakers should focus on maintaining economic stability, improving governance, balancing trade openness, and stabilizing exchange rates.By addressing macroeconomic and institutional challenges, this research paves the way for more resilient and inclusive growth across African economies, explicitly focusing on Africa’s least FDI-receiving countries. It explores the dynamics influencing FDI inflows, particularly emphasizing the role of institutional quality and macroeconomic stability. By employing advanced panel data techniques, the study identifies key factors, such as market size and currency stability, that drive FDI distribution across 24 countries in the continent. The significance of this work lies in its potential to guide targeted policy interventions, helping nations improve their institutional frameworks and economic strategies to attract more sustainable foreign investments, fostering long-term economic development, and reducing investment inequalities. Additionally, the findings provide actionable insights for international investors seeking stable and profitable opportunities in Africa’s diverse economic landscape, bridging the gap between local policies and global investment flows. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2416993 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2416993 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2416993 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2402029_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Md. Raghib Nadeem Author-X-Name-First: Md. Raghib Author-X-Name-Last: Nadeem Author-Name: Shujaat Naeem Azmi Author-X-Name-First: Shujaat Naeem Author-X-Name-Last: Azmi Title: Unlocking the shale potential: examining the effects on oil prices and the potential for global adoption Abstract: Over the last decade, a significant concern in the energy market has been the decline in the USA’s oil imports and fall in energy prices. In this context, we investigate the impact of the shale revolution in the USA on oil prices and examine its potential replicability in other shale-rich countries. Employing the Auto Regressive Distributive Lag Model (ARDL), the influence of the shale energy boom on WTI oil prices has been quantified, using monthly time series data from 2008 to 2019. The results reveal that shale oil output has no effect on oil prices in the short run. However, we found a significant negative impact on oil prices in the long run, as shale development enhances the global energy supply. Additionally, we found that the shale rich countries lack the infrastructure, financing, and have limited property rights, which hampers their chances of replicating the success of shale development in USA. We recommend that countries trying to develop shale resources invest in factors that led to the shale revolution in the USA. Additionally, as low oil prices will reduce future investment in shale oil and gas exploration, the US government should offer adequate incentives for private firms to remain competitive in the energy sector and continue enjoying the benefits of the shale revolution.The paper “Unlocking the Shale Potential: Examining the Effects on Oil Prices and the Potential for Global Adoption” offers critical insights into the transformative impact of the shale revolution on the U.S. energy landscape and global oil markets. Through the utilization of the Auto Regressive Distributive Lag (ARDL) model and an examination of more than ten years of data, this research highlights the crucial role played by U.S. crude oil output and OPEC’s oil supply tin driving down the global oil prices. The results draw attention to the possible financial implications associated with prolonged low oil prices, especially in terms of deterring future investments in shale oil exploration. Additionally, this study provides a roadmap for other countries with untapped shale reserves to contribute to global energy security and price stabilization by examining the possibilities for shale technology adoption on a worldwide scale. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2402029 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2402029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402029 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dodzi K. Dunyo Author-X-Name-First: Dodzi K. Author-X-Name-Last: Dunyo Author-Name: Ellis Kofi Akwaa-Sekyi Author-X-Name-First: Ellis Kofi Author-X-Name-Last: Akwaa-Sekyi Author-Name: Joseph Magnus Frimpong Author-X-Name-First: Joseph Magnus Author-X-Name-Last: Frimpong Author-Name: Akua Peprah-Yeboah Author-X-Name-First: Akua Author-X-Name-Last: Peprah-Yeboah Title: An investigation into aggregation bias: the case of stocks and treasury bill returns in Ghana Abstract: The paper investigates aggregation bias by comparing the risk and returns characteristics of stock exchange-traded shares and Treasury bills (T’bills) in Ghana. The study uses end of period annualized data on T’bills and stocks returns, and inflation from 1990 to 2020. We mainly consider four separate investment periods: 1990–2000, 2001–2010, 2011–2020, and 1990–2020 (i.e. the aggregated period) in order to determine possible aggregation bias occurring from lumping the years together. We measure average annual returns, standard deviations, co-efficient of variations, Sharpe ratio, ANOVA, Jarque-Bera test, maximum drawdowns (MDD), and correlation analysis to determine risk and return characteristics of the two instruments. The study finds that T'bills compared to stocks shows higher returns yet lower risk, thereby indicating an inverted yield curve. Levene’s Test for Equality of Variances indicates stocks significantly outperformed T’bills over the 31-year aggregated period. The study reveals the presence of aggregation bias as stock and T’bill risk and return characteristics of two segregated periods (i.e. 1990–2000 and 2011–2020) contradict the general expectation of risk-return trade-off theory contrary to that of the aggregated period. The MDD, ANOVA results, Anova F-test and Welch F-test reveal aggregation bias for T’bills but not for stocks. We recommend future studies to ensure that analysis and conclusions made do not suffer aggregation bias by disaggregating aggregated units.The problem of aggregation bias is one of the neglected issues in most research in finance and economics. There is perceived reliability and generalizations provided by studies with larger sample sizes without recourse to changes in political and macroeconomic conditions that potentially impact investment performance. Hence, investment decisions and policies could be affected by misleading conclusions drawn from aggregated data. By segregating the aggregated periods into three separate decades, we show that risk and return characteristics (as measured by risk-return trade-off theory, co-efficient of variation, Sharpe ratio, maximum drawdowns, and likelihood of loss) of stocks and treasury bills differ among the segregated periods suggesting the presence of aggregation bias. The study potentially enhances the effectiveness of investment and policy decisions among investors. As investor value increases through prudent investment decisions, it would attract more investors, thereby improving the efficiency of the capital market and ensuring efficient allocation of (economic) resources through increased market participation and enhanced liquidity leading to economic activities and GDP growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330845 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330845 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2308672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Bich Ngoc Nguyen Author-X-Name-First: Bich Ngoc Author-X-Name-Last: Nguyen Title: The extensive and intensive effects of Vietnam’s technical measures on agricultural imports Abstract: Technical measures, particularly Sanitary and Phytosanitary measures (SPS) and Technical barriers to trade (TBT) can affect to firms’ market entry and the volume of trade. Yet, technical measures is ambiguous and complicated, especially for developing countries. Therefore, the study analyses the extensive and intensive effects of SPS and TBT measures imposed by Vietnam on agricultural imports across products and partners. The empirical analysis employs gravity model with Heckman two-stage estimation at the disaggregated level from 2007 to 2019. The findings show that SPS and TBT have positive effects at the extensive margin while having heterogeneous effects at the intensive margin. Across different products, technical measures imposed on agricultural processed products are significant positive to firms’ participation but are insignificant to the scale of trade. Imposing SPS measures on animal products facilitates market entry, while decreasing the intensive margin. In plant products, SPS measures play the market barriers to protect the advantage of exporting products, but firms can expand the import volume after adapting to TBT regulations. The estimation also shows that SPS and TBT increase the probability of imports from developed countries while having insignificant effects on developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2308672 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2308672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2308672 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Dansha Zhang Author-X-Name-First: Dansha Author-X-Name-Last: Zhang Author-Name: Tajul Ariffin Masron Author-X-Name-First: Tajul Ariffin Author-X-Name-Last: Masron Author-Name: Xiutuan Lu Author-X-Name-First: Xiutuan Author-X-Name-Last: Lu Title: The impact of digitalization on foreign direct investment inflows into cities in China Abstract: This paper explores the impact of digitalization on Foreign Direct Investment (FDI) inflows in 270 Chinese cities from 2012 to 2019, focusing on regional disparities in income levels. Employing the System Generalized Moment Method (GMM), it aims to bridge the gap in understanding how digitalization influences FDI inflows across regions with different income levels. The findings indicate a positive correlation in low-income cities where digitalization significantly attracts FDI, but this effect is limited in medium and high-income cities. These results highlight that incentives and digital infrastructure development could be crucial for enhancing FDI in lower-income regions, making digitalization a potential strategic tool for economic growth.This paper explores the impact of digitalization on Foreign Direct Investment (FDI) inflows in 270 cities in China from 2012 to 2019, focusing on regional disparities in income levels by employing the System Generalized Moment Method (GMM). As previous research on digitalization’s impact on FDI inflows especially at the city level in China is scarce, this study makes two contributions: firstly, we apply the generalized method of moments (GMM) to analyze the digitalization-FDI nexus, providing empirical insights at the city level, which has often been overlooked in previous studies. Secondly, by categorizing cities based on income levels, our study reveals variations in how digitalization impacts FDI across different economic levels. The results of this study offer solutions for economic growth in low-income cities, as the research findings show a positive correlation between digitalization and FDI attraction in low-income cities, although this effect is limited in middle - and upper-income cities. It is emphasized that the development of digital infrastructure is crucial for boosting FDI in low-income regions, thereby making digitalization a potential strategic tool for enhancing economic growth in these areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330458 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330458 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2363458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Petro Sauti Magai Author-X-Name-First: Petro Sauti Author-X-Name-Last: Magai Author-Name: Mesia Ilomo Author-X-Name-First: Mesia Author-X-Name-Last: Ilomo Title: Revisiting the effect of the EAC customs union on intra-regional trade performance: does it only matter for exports? Abstract: Regions worldwide are increasingly establishing customs unions, yet their impact on trade remains uncertain. This study investigates the influence of the East African Community (EAC) customs union on intra-regional trade performance, specifically assessing whether customs unions affect exports, imports, and total trade similarly. Utilizing the gravity equation of intra-regional trade spanning 2002–2021, the analysis indicates that customs unions do not exhibit a significant effect on exports, imports, or total trade. However, a detailed examination reveals varying effects across EAC partner states. While the customs union notably boosts exports in Tanzania and Burundi, it stimulates imports in Uganda, but dampens imports in Kenya. Moreover, the results are sensitive to market size metrics, with differences observed amongst countries. Notably, when market size is gauged by population, the customs union significantly impacts exports in all EAC partner states except Uganda, albeit with variations in the directions of effects. This study endeavors to comprehensively assess regional integration, employing diverse trade measurement approaches. The findings underscore a heterogeneous trade effect of customs unions, suggesting that generalized analyses may offer limited, and potentially misleading, insights into trade policy effects. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2363458 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2363458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2363458 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2388837_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Title: Reserves’ influence on South Africa’s total domestic debt: evidence from GFECRA Abstract: This research tackles a gap in existing literature by offering empirical insights into the effectiveness of utilizing the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) in overseeing total domestic debt, thereby enhancing our comprehension of fiscal policy implications and debt management strategies in South Africa. This study delves the influence of leveraging the GFECRA on total domestic debt in South Africa by analyzing time series data from January 1, 1990, to October 1, 2023. Employing the Vector Error Correction (VEC) model, the results reveal a negative lag impact of GFECRA on the present government debt levels. Conversely, disturbances to the GFECRA reduce total domestic debt, albeit at a diminishing pace. Moreover, GFECRA accounts for 56.5% of the fluctuations in domestic debt over a span of 24 months. Fiscal authorities can use a GFECRA amounting to R150 billion throughout the 2024 Medium-Term Expenditure Framework (MTEF) to oversee total domestic debt. Future research should investigate the mechanisms for managing total domestic debt, particularly within South Africa.This research provides critical empirical evidence on the role of the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) in managing total domestic debt in South Africa. By analyzing data spanning over three decades, the study reveals the negative lag effect of GFECRA on current government debt levels and demonstrates that disturbances to this account can effectively reduce domestic debt. This work significantly enhances our understanding of fiscal policy and debt management strategies, offering actionable insights for fiscal authorities. By quantifying the impact of GFECRA, the study underscores its potential as a strategic tool for stabilizing domestic debt, particularly under the 2024 Medium-Term Expenditure Framework (MTEF). Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2388837 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2388837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2388837 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2290784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nguyen Hong Nga Author-X-Name-First: Nguyen Hong Author-X-Name-Last: Nga Author-Name: Le Thi Xoan Author-X-Name-First: Le Thi Author-X-Name-Last: Xoan Title: The factors affecting Vietnam’s canned tuna exports Abstract: In this study, we used the gravity model to identify factors affecting Vietnam’s tuna exports to major import markets, including the United States, Canada, Japan and European countries, and then to find the solutions with sufficient scientific and practical basis to promote the development of the tuna export industry in the future. This research’results show that an increase in factors including domestic tuna production, exchange rates, population of the importing country and geographical distance leads to increase the scale of Vietnam’ tuna exports, with the exchange rate playing the most important role, while the import tax rate is the significant barrier that reduces Vietnam’s tuna exports. In order to develop the tuna export sustainably in the future, Vietnam must maintain tight control over the domestic tuna resources, avoid overexploitation, and instead focus on enhancing product quality. Furthermore, it is critical to focus on satisfying the conditions of commitments in signed free trade agreements, actively analyzing the market and paying attention to trade promotion policies, growing trade connections with importing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2290784 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2290784 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2330436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Abdul Bashiru Jibril Author-X-Name-First: Abdul Bashiru Author-X-Name-Last: Jibril Author-Name: Frederick Pobee Author-X-Name-First: Frederick Author-X-Name-Last: Pobee Author-Name: Saikat Gochhait Author-X-Name-First: Saikat Author-X-Name-Last: Gochhait Author-Name: Ritesh Chugh Author-X-Name-First: Ritesh Author-X-Name-Last: Chugh Title: Breaking boundaries: unveiling hurdles in embracing internet banking services in Sub-Saharan Africa Abstract: Despite the gravitation toward Internet banking research in the information systems and information technology literature, scholars and practitioners, particularly in emerging and developing countries, have not fully explored the barriers affecting customers’ intention to engage in e-banking transactions, particularly from a sub-Saharan perspective. There is still a considerable gap in the research on how online risk and socio-economic factors influence customers’ intention to engage in Internet banking activities. To fill this gap, we took an online and socio-economic perspective on Internet banking adoption in an aspiring to-be IT-enabled economy. Our study adopted a quantitative research approach. Intercept surveys were conducted among 672 bank customers in Ghana. Seven hypotheses were developed, and partial-least square structural equation modelling was used to test the relationship between the variables. Our findings revealed that fear of financial loss, fear of reputation damage, avoidance motivation, price of digital devices, perceived knowledge gap, infrastructure gap, and perceived financial charge are significant barriers to e-banking adoption. The novelty of our research lies in the research framework, which is a unique conceptual model presenting online and socio-economic factors preventing e-banking adoption. Theoretical and practical implications are discussed.In Sub-Saharan Africa, the burgeoning field of internet banking promises to revolutionize financial services, offering unprecedented convenience and accessibility. However, despite its potential, the widespread adoption of Internet banking services in the region face significant hurdles. This research endeavors to illuminate and dissect these obstacles, shedding light on the multifaceted challenges inhibiting the embrace of internet banking among consumers in Sub-Saharan Africa.By delving into the intricacies of perceived online risk, and socio-economic factors, this study aims to provide a comprehensive understanding of why Internet banking adoption rates remain low in the region. Through rigorous analysis and empirical evidence, we aim to offer insights that can inform policymakers, financial institutions, and stakeholders, facilitating the development of targeted strategies to overcome these barriers. Ultimately, our research seeks to not only identify obstacles but also to propose actionable solutions that can propel developing and emerging economies towards a future where internet banking services are embraced as integral components of the financial landscape. Hence, by breaking boundaries and unraveling the complexities surrounding internet banking adoption, we strive to contribute to the advancement of financial inclusion and economic development in the region and beyond. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2330436 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2330436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2330436 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2437005_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Leo Van Hove Author-X-Name-First: Leo Author-X-Name-Last: Van Hove Author-Name: Muzaffarjon Ahunov Author-X-Name-First: Muzaffarjon Author-X-Name-Last: Ahunov Title: Financial literacy: different indicator, different insights? Abstract: Despite questions surrounding their reliability, much of the financial literacy literature continues to rely on simple metrics – without checking whether using an alternative might yield different findings. The present paper does just that: we replicate two prior studies and substitute the Standard & Poor’s indicator originally used with the Big Three and OECD/INFE metrics. The results are disconcerting. In the first study, many of the relationships between national culture and country-level financial literacy become weakly significant or disappear altogether. The second study is also of a cross-country nature but analyses the impact of financial literacy on financial inclusion. Here, the magnitude of the coefficient on financial literacy in the OLS regressions decreases substantially once we use alternative metrics. In one case, the coefficient drops by no less than 69 per cent with the OECD/INFE metric, and by between one-third and half with the Big Three. Even more concerning, the Instrumental Variable regressions show no causal relationship anymore. These findings are a strong signal that the literature would benefit from revisiting several key papers, especially those relying on cross-country data.While research employing short financial literacy tests has expanded almost exponentially over recent decades, studies questioning whether these tests are overly simplistic remain relatively scarce. Our work contributes to this emerging literature. Specifically, we replicate two existing studies—one examining the antecedents of financial literacy and another its consequences—and replace the original literacy indicators with metrics that are supposed to be similar. We find that many results either vanish entirely or weaken considerably. We hope this paper inspires further scrutiny of financial literacy tests. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2437005 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2437005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2437005 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2377495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Nor Azliana Aridi Author-X-Name-First: Nor Author-X-Name-Last: Azliana Aridi Author-Name: Tan Siow Hooi Author-X-Name-First: Tan Author-X-Name-Last: Siow Hooi Author-Name: Chin Wen Cheong Author-X-Name-First: Chin Author-X-Name-Last: Wen Cheong Title: A comparative VaR analysis between low-frequency and high-frequency conditional EVT models during COVID-19 crisis Abstract: The aim of this paper is to assess whether the availability of high-frequency data enhances the accuracy of extreme market risk estimation in comparison to low-frequency data by using Value-at-risk (VaR) and Expected shortfall (ES). The sample data used for analysis comprised the daily closing stock prices and 5-minute intraday stock prices of DJIA, FTSE100, BOVESPA, and MERVAL Index from 2014 to 2022. The data analysis was done to compare the performance of two-stages hybrid methods called conditional EVT that combined the GARCH, RV and HAR specification models with the EVT approach. To assess the accuracy of the VaR forecasts, out-of-sample VaR forecast was backtested by using unconditional coverage (UC) and conditional coverage (CC) tests. The VaR backtesting procedure also incorporated the utilization loss function which are the regulatory loss function (RLF) and the firm’s loss function (FLF). The accuracy of the forecasted ES was backtested by using the generalized breach indicator (GBI) method. The findings of this research emphasized that high-frequency conditional EVT, incorporating the HAR specification outperformed the low-frequency conditional EVT in predicting market risk during periods characterized by extreme returns. Based on the VaR and ES measure, the HAR-EVT typed models are the best performance model compared to the GARCH-EVT and RV-EVT typed models during both crisis and non-crisis periods. This research study contributes to the current literature on the forecasting ability of risk models by concentrating on the hybrid model of long-memory models (FIEGARCH, RV-FIEGARCH and HAR-FIEGARCH) for with the EVT approach.The analysis compares the performance of two-stages hybrid methods called conditional EVT that combined the GARCH, RV and HAR specification models with the EVT approach during non-crisis and crisis COVID-19 pandemic. Based on the VaR and ES measure, the HAR-EVT typed models are the best performance model compared to the GARCH-EVT and RV-EVT typed models. The findings of this research study are also beneficial to market participants, especially those who engage in high-frequency trading to utilize the RV and HAR models as well the application of the EVT model to measure the potential risks and detect any vulnerabilities in financial systems especially during a sudden market crash. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2377495 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2377495 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2377495 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2417757_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Jacob Nunoo Author-X-Name-First: Jacob Author-X-Name-Last: Nunoo Author-Name: Francis Taale Author-X-Name-First: Francis Author-X-Name-Last: Taale Author-Name: Isaac K. Ofori Author-X-Name-First: Isaac K. Author-X-Name-Last: Ofori Author-Name: Peter Yeltulme Mwinlaaru Author-X-Name-First: Peter Yeltulme Author-X-Name-Last: Mwinlaaru Author-Name: Adams Yakubu Sorekuong Adama Author-X-Name-First: Adams Yakubu Sorekuong Author-X-Name-Last: Adama Title: Human capital and income inequality in Africa: robust governance synergies and thresholds Abstract: It has been widely documented that good governance reduces income inequality when it creates a conducive environment for quality human capital development. This study investigates the unconditional effects of human capital on income inequality and explores whether institutional quality mechanisms for corruption control and government effectiveness moderate the relationship. Results from the instrumental variable generalised method of moments estimator and data for an unbalanced panel data of 36 African over the period 2010-2020, shows that human capital increases income inequality. However, robust evidence from the interactive analysis reveals that corruption control and government effectiveness mitigate the income inequality-enhancing effect of human capital. This study underscores the need to improve structures and system government effectiveness and corruption control for human capital development to equalise income in Africa.This study provides valuable insights into the relationship between human capital development and income inequality in Africa, challenging the conventional belief that human capital alone reduces inequality. Using an instrumental variable generalized method of moments estimator and data from 35 African countries over the period 2010-2020, the research finds that human capital, on its own, tends to exacerbate income inequality. However, the study also reveals that effective governance mechanisms, particularly corruption control and government effectiveness, can mitigate this adverse effect. By highlighting the crucial role of institutional quality in moderating the relationship between human capital and inequality, this research offers actionable recommendations for policymakers. The findings underscore the importance of strengthening governance structures to ensure that investments in human capital contribute to more equitable income distribution across Africa. This study significantly advances the discourse on governance, inequality, and human capital development in the context of African economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2417757 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2417757 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2417757 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2426536_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Zusiphe Mbelebele Author-X-Name-First: Zusiphe Author-X-Name-Last: Mbelebele Author-Name: Lelethu Mdoda Author-X-Name-First: Lelethu Author-X-Name-Last: Mdoda Author-Name: Samuel Sesethu Ntlanga Author-X-Name-First: Samuel Sesethu Author-X-Name-Last: Ntlanga Title: Growing wealth from nature: analyzing the profitability and determinants of high-value medicinal plants in smallholder production systems Abstract: The revitalization of traditional medicine has intensified interest in medicinal plants; however, reliance on wild sources poses sustainability challenges. Despite the economic potential of medicinal plants, small farmers face challenges such as limited access to resources, capital, markets, and institutional support. The study examines the profitability of cultivating high-value medicinal plants by smallholder farmers in the Amatole District Municipality, Eastern Cape, South Africa. The research, based on data from 150 smallholder farmers (mostly literate women averaging 46 years old), shows a net farm income of ZAR 19,091.72 and a return on investment of 0.77 per growing period, indicating profitability despite obstacles. Factors influencing profitability include age, household size, farm size, and farming experience. Based on the study results, the study recommends policymakers and government interventions, such as improving market access, providing financial support, offering training, and enhancing institutional frameworks. It also stresses the importance of integrating cultural considerations and addressing knowledge gaps to empower smallholder farmers and optimize the economic benefits of medicinal plant cultivation, supporting sustainable rural development and economic growth.The research on Growing Wealth from Nature: Analyzing the Profitability and Determinants of High-Value Medicinal Plants in Smallholder Production Systems has significant implications for economic development and sustainable agriculture. This research study provides critical insights into the untapped economic potential of high-value medicinal plants within smallholder farming systems, emphasizing their role in driving sustainable rural development. By investigating the profitability and factors affecting medicinal plant cultivation, it addresses critical challenges in rural economies, especially in developing regions where smallholders are vital. The study demonstrates how farmers can capitalize on the high-value medicinal plant market to generate substantial income while promoting sustainable land use. It also highlights the potential of biodiversity conservation to drive rural prosperity, offering an eco-friendly alternative to traditional, resource-intensive farming. By identifying key profitability factors, such as market access, cultivation practices, and socio-economic conditions, the research provides actionable strategies to improve farmer livelihoods and scale production. In doing so, it contributes to both economic growth and environmental sustainability, offering a roadmap for policies that integrate biodiversity into smallholder economies, fostering long-term resilience and prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2024.2426536 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2426536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2426536 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2300926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Tesfa Nega Tesema Author-X-Name-First: Tesfa Nega Author-X-Name-Last: Tesema Title: The effect of capital structure on performance: empirical evidence from manufacturing companies in Ethiopia Abstract: The aim of the study was to investigate the effect of capital structure as measured by total debt ratio (TOD) and long term debt ratio (LTD), on operating performance and financial performance as measured by Net Operating Profitability (NOP) and Return on Assets (ROA), respectively. Four hundred and twenty-five panel observations were obtained using the financial statements of a sample of 85 manufacturing enterprises for the years 2017 to 2021. In addition to descriptive statistics of mean, standard deviation, minimum, and maximum value, Pearson’s correlation analysis, robusted random effect, and two step system Generalized Moment Method (GMM) model were employed to analyse the data. The result revealed that each of TOD and LTD have negative and significant effects on NOP and ROA which supports the pecking order theory, whereas control variables of FATR and FS have positive and significant effect on NOP and ROA at conventional significance level. To improve performance and maintain profitability, financial managers are advised to implement sound capital structure policies and lower the level of debt.The purpose of the study was to establish relationship and examine the effect of capital structure on the performance of Ethiopian Manufacturing Companies. This study is relevant and has contributed to four stakeholders. First, policymakers can use as an intervention mechanism for financing requirement. Second, financial managers of manufacturing companies can consider the debt equity mix while setting financing policy that enhances performance. Third, researchers can consider as special point of reference for further research. Finally, to the academia, the study has obtained evidence supporting the pecking order theory of capital structure that explains the arena of manufacturing companies in Ethiopia. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2300926 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2300926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2300926 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2295193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20241127T073524 git hash: 0fa6686462 Author-Name: Ibrahim Abdul-Karim Author-X-Name-First: Ibrahim Author-X-Name-Last: Abdul-Karim Author-Name: Osman Tahidu Damba Author-X-Name-First: Osman Tahidu Author-X-Name-Last: Damba Title: Comparative analysis of asymmetric impact of cashew nuts and cocoa beans exports on Ghana’s economic growth: a non-linear ARDL approach Abstract: The study applied the newly developed Non-linear Autoregressive Distributed Lag (NARDL) model by Shin et al. on annual data for Ghana from 1970 to 2019. Evidence of a long-run asymmetric cointegration relationship exists between cashew nuts exports, cocoa beans exports, and economic growth. Findings further revealed both cashew nuts and cocoa beans exports have a positive impact on Ghana’s economic growth in the long-run in support of the export-led growth theory. However, the impact of cocoa bean exports is greater than that of cashew nuts exports on the economic growth of Ghana. The Granger causality test revealed the existence of a unidirectional (one-way) causality running from economic growth to both the cashew nuts and cocoa beans exports. Government and policy makers should therefore continue to encourage and promote agricultural export growth to spur the economic development of Ghana. Also, policies and measures geared towards exchange rate stability by the government and Bank of Ghana should be promulgated and implemented to propel economic growth and export expansion in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 12 Year: 2024 Month: 12 X-DOI: 10.1080/23322039.2023.2295193 File-URL: http://hdl.handle.net/10.1080/23322039.2023.2295193 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2295193 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476099_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Abdifatah Mohamed Abdikarim Author-X-Name-First: Abdifatah Mohamed Author-X-Name-Last: Abdikarim Author-Name: Jamal Abdulkadir Mohamed Author-X-Name-First: Jamal Abdulkadir Author-X-Name-Last: Mohamed Title: Foreign direct investment: an empirical investigation of economic and climate variables in Somalia Abstract: Foreign Direct Investment (FDI) plays a crucial role in economic growth, particularly in fragile states like Somalia. Despite its strategic location and resource potential, Somalia faces challenges such as political instability, weak infrastructure, and climate vulnerabilities that deter investors. This study explores the economic and environmental determinants of FDI in Somalia, focusing on GDP growth, inflation, population growth, urbanization, rainfall, and temperature. Using time-series data and the ARDL model, it examines both the direct effects of these variables and the moderating role of GDP growth. Findings confirm a long-term relationship where GDP and population growth enhance FDI, while inflation and rising temperatures hinder investment. Rainfall positively influences FDI, reflecting its importance in Somalia's agriculture-dependent economy. Urbanization remains insignificant in the long run due to unplanned growth. In the short term, population growth, urbanization, and temperature significantly affect FDI, while GDP, inflation, and rainfall show weaker immediate effects. The moderation analysis suggests that GDP growth mitigates climate-related investment risks. This study underscores the need for economic stability, infrastructure development, and climate adaptation strategies to attract sustainable FDI and promote long-term growth in Somalia.This study provides a comprehensive analysis of the determinants of Foreign Direct Investment (FDI) in Somalia, focusing on the interplay between economic and climate variables. Using an Autoregressive Distributed Lag (ARDL) model and a unique moderation analysis, it reveals that GDP growth, inflation, population growth, and climate variability play crucial roles in shaping FDI inflows. The findings indicate that while GDP growth and rainfall positively influence FDI, inflation and rising temperatures deter investment. Moreover, the study highlights the moderating role of GDP, demonstrating that a strong economy can offset some of the risks posed by climate variability. The insights from this research have significant policy implications for fragile and developing economies. The study underscores the importance of economic stabilization, infrastructure development, and climate adaptation strategies to create a more attractive investment environment. By addressing both economic and environmental risks, Somalia can foster sustainable foreign investment and drive long-term economic growth. This research contributes to the broader FDI literature by integrating economic and climate dimensions, offering a novel perspective on investment dynamics in fragile states. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476099 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476099 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568637_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yan Su Author-X-Name-First: Yan Author-X-Name-Last: Su Author-Name: Wanjun Zheng Author-X-Name-First: Wanjun Author-X-Name-Last: Zheng Author-Name: Ping Yu Author-X-Name-First: Ping Author-X-Name-Last: Yu Title: The impact of digital consumption on energy transition in China Abstract: Against the backdrop of a flourishing digital economy, digital consumption has emerged as a crucial driving force behind the expansion of domestic demand, overcoming of spatial and temporal limitations, and enhancement of the efficiency of resource allocation, and provides a new impetus to promote energy transition. Using the quasi-natural experiment provided by the national information consumption pilot policy, the results of difference-in-differences model show that digital consumption significantly promotes energy transition, and this finding still holds after a series of robustness tests. Mechanism analysis reveals that digital consumption accelerates energy transition mainly through information diffusion, innovation-driven, industrial structure optimization, and consumption expansion effects. Heterogeneity analysis shows that the promoting effect of digital consumption on energy transition is more pronounced in cities with larger populations, those in the eastern region, those that are not old industrial bases, and those with higher digital infrastructure levels. The paper provides policy implications for the further strengthening of the development of digital consumption, the continuous unlocking of the potential for information consumption, and the facilitation of urban energy transition.This study explores how digital consumption influence energy transition in China by using national information consumption pilot policy. The findings show a positive impact of digital consumption on all dimensions of energy transition, and the working channels contains information diffusion, innovation-driven, industrial structure optimization, and consumption expansion effects. The findings provide actionable insights for policymakers aimed at accelerating the goal of energy transition through targeted digital consumption strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568637 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568637 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2593737_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ahmed Mohamed Hussein Enow Author-X-Name-First: Ahmed Mohamed Hussein Author-X-Name-Last: Enow Title: Evaluating the impact of remittance, FDI and export on economic growth of Somalia: an empirical analysis Abstract: This study empirically evaluates the impact of remittances, FDI and exports on the economic growth of Somalia from 1991 to 2020, a period covering state collapse and nascent recovery. Utilizing secondary time-series data, the study employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration to assess both short-run and long-run relationships. The Johansen cointegration test is used for further verification and to examine causality directions. The results confirm a stable long-run relationship among the variables. The analysis reveals that remittances have a significant positive short-run impact on growth, underscoring their role as an essential lifeline. Exports show a significant negative impact on economic growth in both the short and long run, indicating structural weaknesses such as a lack of diversification and value addition. A critical finding is that while FDI shows a positive long-run association, it has a significant adverse effect on growth in the short run, suggesting its immediate disruptive effects in a fragile economy may outweigh its long-term benefits. The study suggests that policymakers should adopt targeted strategies, such as formalizing remittance channels to funnel funds into productive investment, enacting strategic FDI policies that prioritize job creation and local value addition to mitigate short-term negative effects, and pursuing export diversification to build a resilient and sustainable growth.This study provides the first concurrent empirical analysis of the impact of remittances, foreign direct investment (FDI), and exports on Somalia's economic growth, offering critical insights for policymaking in fragile states. Moving beyond conventional theories, our findings reveal a complex reality: while remittances act as a vital short-run lifeline, they may hinder long-term development without formal investment channels. More critically, we uncover a "FDI paradox," where foreign investment disrupts growth in the short run, likely due to extractive ventures in a weak institutional setting, despite a positive long-run association. The significance of this work lies in its direct challenge to one-size-fits-all growth models. By demonstrating how standard economic drivers are fundamentally reconfigured in a context of state fragility, this research provides Somali policymakers and international partners with evidence-based, context-specific strategies. These include formalizing remittances for productive investment, designing strategic FDI contracts with local benefits, and pursuing export diversification. Our work establishes a new, nuanced understanding of economic growth in post-conflict environments, crucial for fostering sustainable and resilient development in Somalia and similar fragile economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2593737 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2593737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2593737 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2564202_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bashir Mohamed Osman Author-X-Name-First: Bashir Mohamed Author-X-Name-Last: Osman Author-Name: Omar Mohamed Omar Author-X-Name-First: Omar Mohamed Author-X-Name-Last: Omar Author-Name: Ali Yusuf Hassan Author-X-Name-First: Ali Yusuf Author-X-Name-Last: Hassan Title: Dynamic linkages between agricultural production and economic growth in fragile economies: the case of Somalia Abstract: This study investigates the long-run relationship between agricultural production and economic growth in Somalia from 1990 to 2021 using the Autoregressive Distributed Lag (ARDL) model and Granger causality tests. Results show that agriculture, trade openness, and the labor force significantly drive Somalia’s economic performance, while inflation and export dependency hinder growth. A 1% increase in agricultural production raises GDP by 1.02% in the long run and 1.06% in the short run, confirming agriculture’s pivotal role in economic stability. Granger causality results reveal a bidirectional relationship between agricultural output and GDP, highlighting agriculture’s role both as a growth engine and a beneficiary of economic expansion. The findings emphasize the need for policies that enhance agricultural productivity, improve trade, and strengthen human capital. Recommended measures include long-term investment in irrigation, storage, and transport infrastructure, expansion of value-added agricultural exports, and effective inflation control. By prioritizing these strategies, Somalia can leverage its agricultural base to achieve sustainable growth and resilience in a fragile economic context.This study shows that agricultural production is the key driver of Somalia’s economic growth, with a strong bidirectional relationship between agriculture and GDP. The findings highlight the need for policies that enhance agricultural productivity, diversify exports, and stabilize inflation, offering practical strategies for fostering resilience and sustainable growth in fragile economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2564202 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2564202 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2564202 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2461597_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Wannaphong Durongkaveroj Author-X-Name-First: Wannaphong Author-X-Name-Last: Durongkaveroj Title: Tolerance for inequality in Thailand Abstract: Over the past two decades, income inequality has increased in most developed countries and in some developing countries. However, how people respond to persistent income inequality remains an unsolved issue along the process of economic growth, especially in the context of developing countries. This study examines this issue within the Thai context, using an analytical framework developed by Hirschman. According to Hirschman’s proposition, individuals disadvantaged by economic development may initially accept growing income inequality if they expect their own situation to improve. Yet, this tolerance typically diminishes if inequality persists in the later stage of economic development. By examining the evolution of income inequality in Thailand from 1960 to 2023, it is expected that tolerance for inequality would have remained high during periods of strong economic growth in the late 20th century. Empirical analysis based on data from the World Values Survey shows that, following the mid-2000s, tolerance for inequality in Thailand declined, and there was a concurrent rise in support for redistributive policies, despite some improvements in income distribution. To mitigate the social discontent caused by persistent income inequality, policymakers should address the declining tolerance for inequality by strengthening social safety nets and promoting inclusive economic growth.This paper has examined income inequality along the process of economic development in Thailand. It has also investigated whether there exists tolerance for sustained income inequality, a concept that can help scholars and policy makers understand how winner and losers from economic development perceive and respond to inequality. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2461597 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2461597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2461597 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2587504_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdoul Rahmane Ouedraogo Author-X-Name-First: Abdoul Rahmane Author-X-Name-Last: Ouedraogo Author-Name: Sita Kone Author-X-Name-First: Sita Author-X-Name-Last: Kone Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Title: Diversifying to alleviate poverty? A bibliometric analysis of the relationship between agricultural strategies and multidimensional poverty in rural Côte d’Ivoire Abstract: Reducing multidimensional poverty in rural areas remains a major challenge for sustainable development in Côte d’Ivoire, where the majority of the population depends on agriculture for their livelihood. This study examines the impact of agricultural diversification on multidimensional poverty among rural households. Using data from the nationally representative 2018–2019 EHCVM survey, and applying Simpson’s diversification index and the Alkire-Foster multidimensional poverty index, we assess how crop diversification influences deprivation in education, health and living standards. The econometric analysis, conducted using an instrumental variable probit model, reveals that agricultural diversification significantly reduces the risk of multidimensional poverty by 4.6 percentage points. The results show that households that practice greater diversification are more resilient to economic and climate shocks, with better access to food, income, and essential services. The study further highlights that deprivation in terms of modern energy use, household goods and education contributes most to rural poverty. These findings underscore the importance of promoting diversified agricultural systems, improving market access and addressing structural barriers in order to improve rural well-being. The study provides essential information for the design of integrated and inclusive agricultural policies aligned with national development goals and global poverty reduction programmes. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2587504 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2587504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2587504 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571864_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Chengzhi Qiao Author-X-Name-First: Chengzhi Author-X-Name-Last: Qiao Author-Name: Shan Chen Author-X-Name-First: Shan Author-X-Name-Last: Chen Title: The impact of digital transformation on the employment structure in middle-income countries Abstract: The digital economy has become a key driver of economic growth in middle-income countries. Using panel data analysis with fixed effects and instrumental variable approaches on Chinese A-share listed companies (2013–2023), this study examines how enterprise digital transformation affects labour demand. Results show that digital transformation increases demand for technical, financial, and sales roles while reducing production positions, yielding a net positive effect on overall employment. This impact stems from enhanced productivity, improved business performance, and expanded operational scope. The effect is stronger in non-state-owned firms, firms with high cost-shifting capabilities, high-tech/service sectors, and regions with robust information infrastructure and intellectual property protection. Digital transformation also increases labour income share by optimising workforce structure and alleviating financing constraints. This study uniquely integrates firm-level heterogeneity, spillover effects, and income distribution impacts using a multidimensional digital transformation index, advancing beyond prior regional/industry-level analyses. Findings offer strategic insights for employment stabilisation and equitable growth in middle-income economies.This study demonstrates that digital transformation in middle-income countries significantly reshapes employment structures by boosting demand for technical, financial, and sales roles while reducing production jobs, yielding a net positive effect on overall employment. It highlights critical spillover effects across supply chains and identifies key moderators such as firm ownership, regional infrastructure, and intellectual property protection. By linking digitalization to increased labour income share through optimized workforce structures and eased financing constraints, the research offers vital insights for policymakers aiming to harness digital growth for employment stability and equitable economic development in transitioning economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571864 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571864 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2477674_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Júlio Vicente Cateia Author-X-Name-First: Júlio Author-X-Name-Last: Vicente Cateia Author-Name: Maurício Vaz Lobo Bittencourt Author-X-Name-First: Maurício Author-X-Name-Last: Vaz Lobo Bittencourt Author-Name: Terciane Sabadini Carvalho Author-X-Name-First: Terciane Author-X-Name-Last: Sabadini Carvalho Author-Name: Luc Savard Author-X-Name-First: Luc Author-X-Name-Last: Savard Author-Name: Édivo de Almeida Oliveira Author-X-Name-First: Édivo Author-X-Name-Last: de Almeida Oliveira Title: Trade liberalization, economic growth and welfare in Guinea-Bissau: a CGE modeling Abstract: This paper examines the macroeconomic, sectoral and welfare impacts of trade liberalization policies based on import tariffs (scenario 1), partial export tax (scenario 2) and complete export tax (scenario 3) reductions in Guinea-Bissau using a dynamic computable general equilibrium model from 2022 to 2036. GDP grows at approximately 1.6%, 0.03% and 0.28% in scenarios 1–3, respectively. Scenario 1 provokes a reduction in the foreign input prices in the domestic market, boosting investment demand. In scenarios 2 and 3, the export improvement allows for the accumulation of trade gains, which are reinvested particularly in non-traditional sectors. The demand for labor increases by about 5.4% to 8.2%, 0.61% to 6.8% and 5.4% to 8.3%, respectively, as sectoral production expands. At the household level, the impact of the results varies across different settings and quantile levels. In both scenarios, urban households benefit more than rural counterparts with the same initial income level. However, reducing import tariffs has a more pronounced effect on the income and consumption of poor individuals, suggesting the potential of trade liberalization to enhance long-term welfare in a developing country.This study provides a quantitative assessment of the impacts of trade liberalization on heterogeneous households in a developing country. Trade liberalization not only increases growth and contributes to improving employment and income opportunities, but also reduces income inequality within the country. This study has significant policy implications as the impacts of economic liberalization depend on the degree of integration of each sector and the initial conditions of each household. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2477674 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2477674 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2477674 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476096_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Suresh Gopal Author-X-Name-First: Suresh Author-X-Name-Last: Gopal Author-Name: Viswanathan Thangaraj Author-X-Name-First: Viswanathan Author-X-Name-Last: Thangaraj Author-Name: Naveen Kumara R. Author-X-Name-First: Naveen Kumara Author-X-Name-Last: R. Author-Name: Rupa R. Author-X-Name-First: Rupa Author-X-Name-Last: R. Title: Geopolitical shockwaves: the Russia-Ukraine war’s impact on BRICS financial markets Abstract: The Russia-Ukraine War triggered global financial market turmoil and disrupted the global supply chain, including agriculture and energy. This study explores the impact of the Russia-Ukraine war on BRICS nations’ stock markets, highlighting varying degrees of volatility and contagion effects. It examines the extent of contagion in the BRICS stock markets and their financial linkages by employing the multivariate DCC-GARCH model. The study reveals sensitive turbulence in Russian markets post-crisis, influenced by its direct involvement in the conflict. Brazil and China experienced higher market volatility after the event, and Brazil shifted its financial linkages with the global market. Conversely, the Indian market experienced eased overall volatility, but its financial linkage with Russia has increased due to its trade partnership. In the post-event period, China and South African markets indicate structural market decoupling. The long-term volatility persists over the short-term volatility of BRICS market dynamics. This study underscores the implications for investors and policymakers, emphasising the need for adjustments in monetary and fiscal policies to stabilise financial markets amid geopolitical uncertainties.This study examines the contagion effects of the ongoing Russia-Ukraine war on BRICS stock markets and highlights how geopolitical risk impacts the financial stability of interconnected and interdependent countries. This study provides a significant understanding of financial vulnerabilities during geopolitical issues by differentiating contagion from spillover. The findings offer important insights for the stakeholders, emphasising the need for strategic risk management through proper policy interventions and diversification to enhance financial resilience even during geopolitical issues. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476096 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476096 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476090_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Daiki Homma Author-X-Name-First: Daiki Author-X-Name-Last: Homma Author-Name: Takaaki Fukazawa Author-X-Name-First: Takaaki Author-X-Name-Last: Fukazawa Author-Name: Mostafa Saidur Rahim Khan Author-X-Name-First: Mostafa Saidur Rahim Author-X-Name-Last: Khan Author-Name: Yoshihiko Kadoya Author-X-Name-First: Yoshihiko Author-X-Name-Last: Kadoya Title: Beyond knowledge: the impact of financial attitude and behavior on panic selling during market crises Abstract: This study examines the impact of financial attitude and behavior on panic selling, expanding on the established view that financial knowledge helps reduce panic selling tendencies. Using a rational approach to decision-making, we hypothesize that financial behavior and attitude have incremental effects on panic selling beyond financial knowledge. Based on a sample of 134,013 individuals in the “Survey on Life and Money” conducted jointly by Hiroshima University and Rakuten Securities, our analysis reveals that during the COVID-19 pandemic, 1.71% of investors panic-sold all their stocks, while 6.10% sold a portion. A probit regression analysis depicts that financial knowledge, behavior, and attitude significantly reduce the propensity for panic selling, supporting our hypothesis. Financial behavior and attitude have an additional effect on reducing panic selling, even after accounting for financial knowledge. Demographic factors such as being male, younger, less educated, urban-dwelling, and risk-tolerance increase the probability of panic selling. These findings suggest that financial knowledge alone is insufficient and should be supplemented by behavioral and attitudinal interventions to reduce panic selling during market crises.This study emphasizes the significance of combining financial knowledge with constructive financial attitude and behavior to curb panic selling during market downturns. The results suggest that policymakers and financial institutions should promote comprehensive financial education programs that combine knowledge with behavioral strategies. These initiatives could enhance investor resilience and rational decision-making, contributing to greater market stability during economic downturns. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476090 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476090 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494124_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: David Jnr Sarpong Author-X-Name-First: David Jnr Author-X-Name-Last: Sarpong Author-Name: Nicholas Addai Boamah Author-X-Name-First: Nicholas Addai Author-X-Name-Last: Boamah Author-Name: Joseph Oscar Akotey Author-X-Name-First: Joseph Oscar Author-X-Name-Last: Akotey Title: Integration of the African banking sector Abstract: The study examines the regional integration of the African banking sector and explores the factors explaining interbank integration in Africa. It adopts the variance decomposition and Kalman smoother techniques and relies on data from fifteen (15) African countries from 2002 to 2022. The evidence shows that regional components are generally less important in explaining the total variance of the return to the African banking sector indices. The findings also indicate that financial market development, liquidity, non-performing loans, interest rate spread, operational efficiency, financial efficiency, and governance quality affect the integration of the African banking sector. The results further show that the 2000–2009 GFC and the Russia-Ukraine war disrupted the integration of the African banking sector, whereas the COVID-19 pandemic led to an improvement in integration. The findings imply that geographic diversification in the African banking sector may yield superior gains, and cross-country crisis transmission could be slower and less extensive.The paper examines the regional integration of the African banking sector and investigates the factors explaining interbank integration in Africa. The study provides evidence on the relevance of banking sector integration to banking stability and the drivers of such integration. It shows that integration weakens banking stability in the African region. The evidence shows the need for African countries to establish monitoring and control mechanisms to mitigate the effects of cross-border crisis transmission, competition and shocks, as these factors can potentially contribute to the financial system's fragility and derail the contributions of integration to financial stability. The findings further imply that geographic diversification in the African banking sector may yield superior gains and cross-country crisis transmission could be slower and less extensive. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494124 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494124 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2587500_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nguyen Minh Ha Author-X-Name-First: Nguyen Minh Author-X-Name-Last: Ha Author-Name: Bui Hoang Ngoc Author-X-Name-First: Bui Author-X-Name-Last: Hoang Ngoc Author-Name: Nguyen Huynh Mai Tram Author-X-Name-First: Nguyen Author-X-Name-Last: Huynh Mai Tram Title: Does digital transformation reinforce labor productivity and income in Vietnam? Evidence from quantile on quantile approach Abstract: Digital transformation is expected to be an irreversible and intelligent strategy to enhance economic growth in Vietnam in the next decade. However, it has potential drawbacks, such as cybersecurity concerns, technological dependencies, and labor skills and training requirements. Therefore, this study aims to investigate the impact of digital transformation on labor productivity and income per capita in Vietnam from 1990 to 2018. Empirical results from the quantile-on-quantile approach reveal a strong correlation between digital transformation and income per capita and labor productivity at medium-high quantiles and a weak association at low quantiles. More specifically, the study confirms that advancements in digital transformation contribute positively to both income per capita and labor productivity. However, the magnitude and direction of these effects vary across different quantiles, indicating a heterogeneous relationship. These novel findings not only enhance the existing body of literature but also offer practical policy implications for emerging economies, particularly Vietnam, as they navigate the challenges and opportunities of the digital era.This study aims to investigate the impact of digital transformation on labor productivity and income per capita in Vietnam from 1990 to 2018. Based on the findings, the study suggests some helpful policies to propel the digital transformation process, contributing to increased labor productivity and per capita income for emerging economies, particularly Vietnam. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2587500 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2587500 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2587500 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2523955_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ummar Faruk Saeed Author-X-Name-First: Ummar Faruk Author-X-Name-Last: Saeed Author-Name: Godfred Etse Klugah Author-X-Name-First: Godfred Etse Author-X-Name-Last: Klugah Title: Driving inclusive growth through financial systems and technology adoption: a global analysis of synergistic pathways using structural equation modeling Abstract: In an era of accelerating digital transformation and persistent global inequality, understanding how technology and financial systems contribute to inclusive growth is more urgent than ever. While financial development (FD) is widely recognized as a catalyst for economic expansion, its ability to promote equitable growth may increasingly depend on a country’s level of technology adoption. This study investigates the mediating role of ICT access in the relationship between FD and inclusive growth (IG), using cross-sectional data from 132 countries for the year 2022. Grounded in Endogenous Growth Theory and the Resource-Based View, the analysis employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test three key hypotheses. Results show that FD has a statistically significant positive effect on IG (β = 0.334, T = 5.820, p < 0.05), reinforcing the importance of robust financial institutions and access to credit in enabling broad-based development. ICT access also exerts a strong direct impact on IG (β = 0.888, T = 12.261, p < 0.01), confirming its role in enhancing productivity, market participation and service delivery. Most importantly, ICT access significantly mediates the FD–IG relationship (β = 0.096, T = 9.533, p < 0.01), amplifying the developmental returns of financial systems through improved inclusion and transactional efficiency. These findings underscore the need for integrated policy strategies that align financial sector reforms with digital infrastructure investment and digital literacy promotion. By harnessing the synergies between finance and technology, governments can build more inclusive, innovative and resilient economies in the digital age. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2523955 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2523955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2523955 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2578342_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thi Kim Loan Vo Author-X-Name-First: Thi Kim Loan Author-X-Name-Last: Vo Author-Name: Ngoc Khuong Ho Author-X-Name-First: Ngoc Khuong Author-X-Name-Last: Ho Title: The impact of private credit and foreign direct investment on economic growth: evidence from ASEAN-5 countries Abstract: This study contributes by conducting a parallel assessment of foreign direct investment (FDI) and domestic credit to the private sector (private credit, DCP) within a unified dynamic panel setting, clarifying their short-run and long-run associations with growth in five ASEAN countries (ASEAN-5: Vietnam, Thailand, the Philippines, Indonesia, and Malaysia) during the period from 1986 to 2023. While many studies have examined the individual effects of FDI and DCP on economic growth, few have investigated their combined influence within the ASEAN-5 context. Using panel data from the World Bank, this study applies Autoregressive Distributed Lag (ARDL) and Error Correction Models (UECM and RECM) to capture both short-term and long-term effects. The results indicate that while FDI exhibits a positive association with economic growth, private credit exerts a negative impact, particularly when not effectively allocated toward productive sectors. Trade openness and gross fixed capital formation are also positively associated with growth, while government consumption expenditure shows a negative relationship. Overall, the findings underscore a key policy implication that governments should carefully regulate private credit expansion to align with productive economic sectors while strategically enhancing the attractiveness of FDI to sustain long-term economic growth in ASEAN-5.Understanding how private credit and foreign direct investment (FDI) affect economic growth is crucial for sustainable development in emerging ASEAN economies. This study provides novel empirical evidence from ASEAN-5 countries, indicating that while FDI and investment foster growth, excessive private credit can induce instability when funds are misallocated. The research also highlights inefficiencies in government expenditure and points out that it requires effective financial supervision, prudent fiscal management, and targeted FDI promotion policies. These findings offer actionable insights for policymakers seeking to enhance financial stability, productivity, and long-term economic resilience in the ASEAN-5 region. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2578342 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2578342 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2578342 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2452888_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hamidou Ouedraogo Author-X-Name-First: Hamidou Author-X-Name-Last: Ouedraogo Author-Name: Noël Thiombiano Author-X-Name-First: Noël Author-X-Name-Last: Thiombiano Title: Financial inclusion and human development in the West African Economic and Monetary Union (WAEMU): the role of institutional quality Abstract: The challenge of the Sustainable Development Goals set by the United Nations is to improve the living conditions of citizens, particularly in developing countries. This is crucial for sub-Saharan African countries, as this region has one of the lowest average human development indices in the world. This study examined the role of institutional quality in the effect of financial inclusion on human development in the West African Economic and Monetary Union (WAEMU) countries from 2007 to 2022. The results using the Newey-West standard error method reveal that financial inclusion positively affects the human development index. The results also show that institutional quality amplifies the positive effect of financial inclusion on human development. These results are robust to life expectancy, education, GDP per capita, and under-five infant mortality rate. Moreover, the effects on life expectancy are greater in women than men. In terms of implications, our results suggest that improving institutional quality is a prerequisite for promoting sustainable and equitable financial inclusion. In particular, strong institutions that protect women’s rights are essential to foster inclusive human development, enabling greater participation of women in the economy.This research explores the interactions between institutional quality and financial inclusion as determinants of human development in the West African Economic and Monetary Union (WAEMU). Using the Human Development Index, life expectancy, education level, GDP per capita, and infant mortality rate as indicators, we show that strong institutions are essential to enhance access to financial services and, thus, improve people's living conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2452888 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2452888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2452888 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2514690_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdullah Mohammad Ghazi Al Khatib Author-X-Name-First: Abdullah Mohammad Ghazi Author-X-Name-Last: Al Khatib Title: Beyond linearity: a critical review of the finance–growth nexus Abstract: This critical review synthesizes over a century of research on the finance–growth nexus, arguing that this relationship is not simply linear but a complex, multifaceted phenomenon contingent on institutional quality, non-linear dynamics and technological innovations – a thesis substantiated by the extensive literature reviewed. Employing a systematic literature review methodology, the article defines financial development as improving financial system quantity, quality and efficiency and economic growth as sustained output increases. It critically analyzes the bidirectional and often non-linear interplay between finance and growth, tracing classical theories to modern endogenous models and highlighting persistent methodological challenges. Special attention is given to financial crises, the transformative impact of financial technology (fintech) and artificial intelligence (AI), and evolving policy implications. Findings underscore the nexus’s context-dependent nature, challenging simplistic assumptions and emphasizing the need for nuanced, evidence-based policy implications to foster sustainable and inclusive economic growth in an increasingly digital global economy.Figure 1. Mind map of the finance–growth nexus literature review.Figure 1 encapsulates the multifaceted relationship between finance and economic growth. At its core is the finance–growth nexus, which ties together key elements such as theoretical foundations, empirical evidence and influential channels. It highlights how insights from classical and endogenous growth theories coexist with modern empirical approaches – emphasizing information asymmetry, innovation drivers and the impact of technological advances like fintech. Surrounding this nexus, the diagram visually maps the dynamics of risk management, resource allocation and regulatory frameworks, while also addressing nuances like financial crises and non-linear effects.Comprehensive synthesis of finance–growth nexus literature spanning over a centuryCritical examination of bidirectional relationship between financial development and growthAnalysis of non-linearities, thresholds and ‘too much finance’ hypothesis in recent researchEvaluation of fintech and cryptocurrencies’ impact on traditional finance–growth paradigmsIdentification of key research gaps and future directions in finance–growth studies Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2514690 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2514690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2514690 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476098_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Leonard Makuvaza Author-X-Name-First: Leonard Author-X-Name-Last: Makuvaza Author-Name: Richard Chamboko Author-X-Name-First: Richard Author-X-Name-Last: Chamboko Author-Name: Sevias Guvuriro Author-X-Name-First: Sevias Author-X-Name-Last: Guvuriro Author-Name: Johan Coetzee Author-X-Name-First: Johan Author-X-Name-Last: Coetzee Title: The role of intermediate financial distress events and business cycles in stock market delisting: evidence from the Johannesburg stock exchange Abstract: Stock markets in emerging countries have experienced high rates of delisting despite their importance in enterprise development. Delisting is a well-studied phenomenon with numerous studies documenting its key drivers. However, these studies conceptualise delisting as a transition from a listed to a delisted state. Such an approach ignores the reality of a typical delisting process which is usually characterised by numerous distress episodes, before the final delisting (absorbing event). In this paper, we model the role of intermediate financial distress events and business cycles in stock market delisting using an extended Cox model. In addition to assessing financial distress events, the study also assesses the role of business cycles in explaining delisting. The current study, therefore, contributes to the literature on delisting by conceptualising delisting as a system-wide multistate framework, incorporating intermediate distress episodes. This approach sheds light on curative measures that can be employed by policymakers to resolve distress and reduce the rate of delisting on the stock exchange. Additionally, the study adopts models that appropriately handle time-dependent covariates such as business cycles, approaches that are not found in studies that commonly use binary approaches to understand delisting. We find the length of distress spells; consecutive income losses, and composite lead business cycle indicators as significant factors in explaining delisting. Intermediate distress events and business cycle indicators can therefore be used as early warning indicators for delisting and stress-testing variables in ascertaining the potential impact of changing economic conditions on delisting respectively.This study provides critical insights into the role of intermediate financial distress events and business cycles in stock market delisting. The study showed that the frequency of financial distress, length of distress spells and consecutive income losses as intermediate distress events and the lead business cycle indicator are significant factors explaining delisting. Practically, it implies that company managers can use distress variables, such as consecutive income losses and distress frequency, to trigger timely curative interventions and avoid costly business rescue mechanisms, such as judicial management. This study offers valuable guidance to company managers and policy makers on potential interventions that can be employed to avoid stock market delisting. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476098 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476098 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476095_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: John Boamah Author-X-Name-First: John Author-X-Name-Last: Boamah Author-Name: Ernestina Ohenewaah Denchie Author-X-Name-First: Ernestina Author-X-Name-Last: Ohenewaah Denchie Author-Name: Aurelia Naa Ayikaikor Ayi-Bonte Author-X-Name-First: Aurelia Author-X-Name-Last: Naa Ayikaikor Ayi-Bonte Title: Electronic transfer taxes and the stock market: empirical evidence from Ghana’s E-levy Abstract: This paper aims to highlight the correlation between Ghana’s Electronic Transfer Levy (E-levy) and the stock market performance of the target firms. Initially, the E-levy aimed to raise GH₵7 billion by taxing electronic transfers exceeding GH₵100 daily at a rate of 1.75%. Following a rate reduction to 1.5%, the revenue target was revised to GH₵4.5 billion. Using a difference-in-differences approach, we find a negative effect on target firm stock prices, persisting around the implementation period. We also find that reducing the levy influences stock prices positively. Our channel test reveals that the levy affects the stock market through transaction volume, with a stronger result for firms with below-average trading volumes. The policy recommendation is to reduce the rate below 0.5%.This study provides critical empirical insights into the correlation between Ghana's Electronic Transfer Levy (E-Levy) and the stock market performance of targeted firms, notably fintech companies and banks. Employing a robust difference-in-differences analytical approach, it reveals that the introduction of the levy negatively correlated with stock prices, primarily through reduced trading volumes, particularly affecting firms with lower-than-average trading activities. The research underscores significant market sensitivity to fiscal policy adjustments, highlighting the importance of carefully designing tax frameworks. The findings advocate for policy reconsideration, notably suggesting either cancellation or further reductions in the E-Levy rate to mitigate adverse market responses and enhance financial market stability and investor confidence in Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476095 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476095 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476095 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2535489_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Saizal Pinjaman Author-X-Name-First: Saizal Author-X-Name-Last: Pinjaman Author-Name: Mcxin Tee Author-X-Name-First: Mcxin Author-X-Name-Last: Tee Author-Name: Wong Sing Yun Author-X-Name-First: Wong Sing Author-X-Name-Last: Yun Author-Name: Sarimah Surianshah Author-X-Name-First: Sarimah Author-X-Name-Last: Surianshah Author-Name: Haryo Kuncoro Author-X-Name-First: Haryo Author-X-Name-Last: Kuncoro Author-Name: Liangyan Lu Author-X-Name-First: Liangyan Author-X-Name-Last: Lu Author-Name: Zhu Ling Author-X-Name-First: Zhu Author-X-Name-Last: Ling Title: The impact of governance, innovation, and macroeconomic factors on renewable energy generation in ASEAN: a Bayesian approach Abstract: This study investigates the influence of governance, innovation, and macroeconomic factors on renewable energy generation in ASEAN (2002–2022). It examines how economic growth, education, governance quality, capital formation, oil rents, foreign direct investment (FDI), and innovation influence renewable energy generation. By employing Bayesian regression, the results reveal that higher economic growth boosts renewable energy generation, while governance and capital formation negatively impact it. FDI and innovation also negatively influence renewable energy generation, indicating gaps in attracting FDI and translating innovation into practice. Policymakers need to promote equitable wealth distribution and enhance governance frameworks. The results also emphasise the importance of targeted policies to promote sustainable energy development by redirecting investments towards green sectors and utilising oil rents for renewable energy projects. Additionally, improving intellectual property protection and providing support for small enterprises in the renewable energy sector enhance the practical application of innovations. These strategies are crucial for advancing renewable energy development in ASEAN, contributing to a sustainable energy future.This study provides important empirical insights into the factors influencing renewable energy generation in ASEAN countries between 2002 and 2022. Using Bayesian panel data regression, the findings show that economic growth (GDP per capita) supports renewable energy generation, whereas governance quality, capital formation, foreign direct investment, and innovation (as measured by patent registration) currently hinder its progress. These findings challenge conventional assumptions and expose structural and institutional barriers to renewable energy development in the region. Besides, the impact of education expenditure appears to be long-term and may require complementary policies to translate educational outcomes into practical advancements in renewable energy. Additionally, although oil rents offer financial resources, they are not effectively allocated toward renewable energy development, underscoring the need for strategic policies to channel oil revenues into renewable energy initiatives and R&D. This study offers timely, evidence-based insights to guide policymakers in ASEAN as they navigate the transition to a low-carbon future. By identifying key influencing factors, the findings support the formulation of targeted strategies to strengthen regulatory frameworks and promote sustainable energy development. Ultimately, this research contributes meaningfully to ASEAN's long-term energy security and environmental sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2535489 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2535489 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2535489 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571401_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Richard Arhinful Author-X-Name-First: Richard Author-X-Name-Last: Arhinful Author-Name: Halkawt Ismail Mohammed Amin Author-X-Name-First: Halkawt Ismail Mohammed Author-X-Name-Last: Amin Author-Name: Leviticus Mensah Author-X-Name-First: Leviticus Author-X-Name-Last: Mensah Author-Name: Bright Akwesi Gyamfi Author-X-Name-First: Bright Akwesi Author-X-Name-Last: Gyamfi Author-Name: Hayford Asare Obeng Author-X-Name-First: Hayford Asare Author-X-Name-Last: Obeng Title: Determining an optimal capital structure and its impact on financial performance. Insight from the firms listed on the New York Stock Exchange Abstract: An efficient capital structure is crucial for balancing risk and return, enhancing financial stability, and maximizing profitability. Although prior studies have explored the link between capital structure and firm performance, the effects of specific optimal configurations—such as 70% debt–30% equity, 61.8% debt–38.2% equity, and 50% debt–50% equity—remain underexamined. Guided by the trade-off theory, this study investigates how these capital structure scenarios influence financial performance among 750 non-financial firms listed on the New York Stock Exchange across 17 sectors from 2003 to 2020. Data sourced from Thomson Reuters Eikon DataStream were analyzed using random effect, fixed effect, and two-step Generalized Method of Moments (GMM) estimation techniques to ensure robustness and control for endogeneity. The findings indicate that equity financing levels of 30%, 38.2%, and 50% significantly improve return on assets (ROA) but reduce return on equity (ROE). Conversely, debt financing at 70%, 61.8%, and 50% exerts a positive influence on both ROA and ROE. These results refine traditional trade-off theory by identifying practical debt–equity proportions that enhance performance. The study offers financial managers, executives, and investors evidence-based insights to optimize financing strategies, strengthen profitability, and create sustainable shareholder value.This study provides valuable insights into how the choice of capital structure affects the financial performance of non-financial firms listed on the NYSE. By examining three optimal capital structure scenarios, the research identifies equity and debt proportions that enhance profitability and shareholder value. The findings refine traditional trade-off theory by offering empirical evidence on the practical balance between debt and equity, guiding corporate managers, investors, and policymakers in making more informed financing decisions that support sustainable firm growth and performance. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571401 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571401 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2562344_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Faisal Abdulmohsen Alfhaili Author-X-Name-First: Faisal Abdulmohsen Author-X-Name-Last: Alfhaili Title: Loan-to-deposit reform and deposit maturity: evidence from Saudi Arabia Abstract: This study investigates the impact of the Saudi Central Bank’s (SAMA) 2018 liquidity reforms on banks’ financing capacity, focusing on its moderating impact on the relationship between time and savings deposits and banks’ loan-to-deposit (LDR) levels. Using aggregated data of banks in Saudi Arabia from 2013 to 2024, the findings indicate that SAMA was successful in encouraging banks to hold more stable and longer-maturity deposits to support their lending activities. Specifically, the 2018 LDR macroprudential liquidity reforms enforced by SAMA are found to have positively influenced banks’ acquisition of longer maturity deposits in the long run. Based on these findings, the study recommends that SAMA should consider increasing the weights assigned to longer-maturity deposits, thereby enhancing financial stability while supporting banks’ financing capacity against rising credit demand.This study shows how the Saudi Central Bank’s (SAMA) 2018 liquidity reforms strengthened banks’ financing capacity by encouraging a shift toward more stable, longer-maturity deposits. The reforms improved banks’ loan-to-deposit dynamics, enhancing resilience to rising credit demand. These findings support further refinement of macroprudential policy, particularly by assigning greater weight to long-term deposits, and provide lessons for other economies seeking to balance financial stability with credit growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2562344 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2562344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2562344 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2596459_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sahar Abu AlHaj Author-X-Name-First: Sahar Author-X-Name-Last: Abu AlHaj Author-Name: Noura Abu Asab Author-X-Name-First: Noura Author-X-Name-Last: Abu Asab Title: Nicotax: the fiscal and behavioural dynamics of cigarette taxation in Jordan Abstract: This paper investigates the impact of cigarette taxation on consumption and fiscal outcomes in Jordan, where smoking prevalence is high and reliance on tobacco revenues is substantial. Using quarterly data from 2008–2023 and General-to-Specific Ordinary Least Squares (GTS-OLS) and Vector Autoregression (VAR) models, the analysis captures short-run and dynamic effects. Results show higher excises significantly reduce consumption, with an immediate effect of –1.42 percentage points in cigarette consumption growth per 1 Jordanian Dinars (JD) increase, a portion of this decline is offset in subsequent quarters, reflecting behavioural inertia, stockpiling, or substitution into illicit products. The sustained impact of taxation accounts for 8–9% of consumption variance over a 4 to 10 quarters horizon. Revenues remain closely tied to consumption, with a 1 percentage-point rise in consumption growth linked to a 0.82 percentage-point increase in revenue growth, illustrating the fiscal–health policy dilemma. Overall, taxation is effective but requires sustained, inflation-adjusted reforms, stronger enforcement, and complementary measures to align public health with fiscal stability.Using quarterly data from 2008Q1–2023Q4, this study provides robust empirical evidence on how cigarette excise taxes shape smoking behaviour and fiscal outcomes in Jordan. The results show that tax increases immediately reduce cigarette consumption, but part of this effect reverses in subsequent quarters due to behavioural inertia and stockpiling, highlighting the need for regular, inflation-indexed excise adjustments rather than infrequent hikes. At the same time, revenue growth remains strongly dependent on consumption growth, underscoring Jordan’s fiscal-health policy dilemma and the importance of strengthening enforcement and anti-illicit-trade mechanisms to safeguard both public-health gains and the integrity of fiscal revenues. These findings provide actionable guidance for policymakers, demonstrating that effective tobacco taxation requires a coordinated approach: sustained excise reforms to maintain behavioural impact, and parallel enforcement measures to prevent erosion of both health outcomes and tax revenues. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2596459 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2596459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2596459 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559058_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tina Sri Purwanti Author-X-Name-First: Tina Sri Author-X-Name-Last: Purwanti Author-Name: Wen-Chi Huang Author-X-Name-First: Wen-Chi Author-X-Name-Last: Huang Author-Name: Budi Hartono Author-X-Name-First: Budi Author-X-Name-Last: Hartono Author-Name: Jaisy Aghniarahim Putritamara Author-X-Name-First: Jaisy Aghniarahim Author-X-Name-Last: Putritamara Author-Name: Eko Nugroho Author-X-Name-First: Eko Author-X-Name-Last: Nugroho Author-Name: Awang Tri Satria Author-X-Name-First: Awang Tri Author-X-Name-Last: Satria Author-Name: Rizky Dwi Putri Author-X-Name-First: Rizky Dwi Author-X-Name-Last: Putri Title: Exploring the link between saving behavior and subjective wellbeing in Indonesia: urban–rural and gender differential estimations Abstract: This study explores the impact of saving decisions on subjective well-being (SWB) – measured by self-reported happiness and life satisfaction – among urban and rural residents in Indonesia, with particular attention to gender-based differences. Drawing on nationally representative data from the Indonesian Family Life Survey 5 (IFLS-5), the study employs the Inverse Probability Weighted Regression Adjustment (IPWRA) method to produce robust and unbiased estimates. The main finding indicates that saving decisions significantly enhance household-level SWB. Disaggregated analysis by urban–rural location and gender yields nuanced insights. Disaggregated analysis by urban–rural location and gender yields nuanced insights. In rural areas, saving has a stronger and statistically significant impact on SWB, whereas the effect is comparatively weaker in urban areas. Gender-based analysis reveals that saving decisions improve SWB for both men and women. However, the positive impact is more pronounced among male participants, indicating gender disparities in financial behavior outcomes. These findings suggest that saving enhances perceived well-being, especially for rural residents and male household heads. These findings suggest that saving enhances perceived well-being, especially for rural residents and male household heads. The study underscores the need for policies that promote saving behaviors and financial inclusion, while also calling for further research into gender-based differences in the relationship between financial decisions and well-being.This study investigates the impact of saving decisions on subjective well-being (SWB) in Indonesia, measured by happiness and life satisfaction. Using nationally representative data and robust econometric methods, the findings show that saving significantly enhances SWB, with stronger effects for rural households and male household heads. The analysis highlights that financial decisions produce uneven outcomes across gender and location, reflecting socio-economic and cultural differences. These results underscore the importance of promoting saving behavior and financial inclusion while addressing gender disparities. The evidence offers timely insights for policymakers in Indonesia and other emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559058 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559058 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2584517_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Aïda Dao Author-X-Name-First: Aïda Author-X-Name-Last: Dao Author-Name: Idrissa Mohamed Ouedraogo Author-X-Name-First: Idrissa Mohamed Author-X-Name-Last: Ouedraogo Author-Name: Albert Ondo Ossa Author-X-Name-First: Albert Author-X-Name-Last: Ondo Ossa Author-Name: Mahamadou Diarra Author-X-Name-First: Mahamadou Author-X-Name-Last: Diarra Title: Determinants of the fiscal space of WAEMU member countries Abstract: This research analyzes the determinants of fiscal space in the eight WAEMU countries over the period 2002 to 2022 using an ARDL error-correction model estimated by the Pooled Mean Group method. The results reveal that current expenditures, particularly wages and salaries, debt service, capital expenditures, and military expenditures, have significantly contributed to the reduction of fiscal space. To address this, member states must rationalize their current expenditures to create fiscal space essential for financing development, macroeconomic stability, and growth. It is also recommended to strengthen domestic resource mobilization by broadening the tax base. The gradual inclusion of underexploited sectors such as agriculture, livestock, and non-timber forest products would better reflect the real economic structure, increase tax revenues, and improve the resilience of public finances. Moreover, in a tense security context, a pooling of defense efforts is essential. A coordinated regional response would allow for more efficient management of security resources while limiting their pressure on public finances and preserving the economic stability of the Union. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2584517 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2584517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2584517 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2440446_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Priviledge Cheteni Author-X-Name-First: Priviledge Author-X-Name-Last: Cheteni Author-Name: Herrison Matsongoni Author-X-Name-First: Herrison Author-X-Name-Last: Matsongoni Author-Name: Ikechukwu Umejesi Author-X-Name-First: Ikechukwu Author-X-Name-Last: Umejesi Title: South Africa’s green bond market: financing sustainable development Abstract: Due to its potential and sustainable development goals, the green bond market has recently gained traction as a leeway for some businesses. A qualitative approach was used to solicit views and perceptions from 60 participants to gain insight into the market. The study employed a snowball sampling technique to select 60 participants in 10 focus groups, each accommodating 6 participants. Thematic analysis was employed to analyse data. Focus group discussions and thematic analysis of data allowed for an in-depth exploration of subjective experiences, perceptions, and interpretations of stakeholders. Eight key themes emerged from thematic analysis: awareness and education, regulatory frameworks, collaboration, project diversification, risk management, capacity building, impact measurement and innovation. These findings provide a holistic perspective on the critical factors influencing the success and growth of the green bond market. The study’s findings also highlighted the importance of raising awareness and education about the green bond market among stakeholders, including issuers, investors, and the general public.This study provides valuable insights into the green bond market's success and growth factors, identified through a qualitative approach with 60 participants. Thematic analysis revealed eight critical themes: awareness and education, regulatory frameworks, collaboration, project diversification, risk management, capacity building, impact measurement, and innovation. The findings emphasize the importance of raising awareness and educating stakeholders—including issuers, investors, and the public—to foster wider adoption of green bonds. By highlighting key areas such as regulatory improvements and capacity building, this research offers actionable recommendations for policymakers, financial institutions, and industry leaders to enhance the effectiveness of green bond markets. Ultimately, the study contributes to advancing sustainable financial practices, supporting the broader goal of achieving sustainable development through innovative financial solutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2440446 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2440446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2440446 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2509613_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nilotpal Sarma Author-X-Name-First: Nilotpal Author-X-Name-Last: Sarma Author-Name: Prabina Rajib Author-X-Name-First: Prabina Author-X-Name-Last: Rajib Title: Do policy uncertainty and volatility index affect dynamic connectedness among house price, financial and commodity market indices? Evidence from TVP-VAR and quantile regression analysis Abstract: This study initially analyses the connectedness among five indexes representing five asset classes: equities, bonds, commodities, currencies, and housing prices. Subsequently, it analyses the influence of policy uncertainty and equity market risk on the total connectedness of assets and their impact on the significance of the home price index. A time-varying parameter vector autoregressions (TVP-VAR) model has been employed to explore the connectedness of the assets. Secondly, quantile regression is employed to gauge the impact of uncertainty and market risk in this study. The findings show that the S&P500 is the market’s most influential index. The home price index has proven sensitive to shocks from government bonds, commodities, and stock indexes across the period analyzed. Finally, findings have indicated that policy uncertainty positively influences the overall connectedness among the variables at all the quantiles. Moreover, at higher quantiles, an increase in policy uncertainty and equity-market risk decreases the net connectedness of the house price index. These findings hold significant implications for investors and policymakers in terms of diversification of portfolios and mitigating portfolio risk during periods of economic turbulence.This study demonstrates the dynamic interrelationships among five major asset classes and indicates that policy uncertainty and equity market risk significantly influence asset connectivity. Employing TVP-VAR and Bayesian quantile regression, it reveals that the S&P 500 exerts dominant market influence, whereas the house price index exhibits significant sensitivity to shocks. The results highlight the significance of uncertainty for increasing interconnectedness, providing essential insights for investors and policymakers about risk management and portfolio diversification. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2509613 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2509613 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2509613 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2485403_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hanzhi Luo Author-X-Name-First: Hanzhi Author-X-Name-Last: Luo Title: Understanding workforce vulnerability: the COVID-19 impact on China’s hospitality and tourism labor market—evaluated by using a difference-in-difference approach Abstract: This study examines the impact of the COVID-19 pandemic on the labor size and structure within China’s hospitality and tourism industry using a difference-in-difference (DID) approach. Analyzing data from Chinese A-share non-financial listed companies from 2009 to 2022, it identifies a significant decline in labor size in the hospitality and tourism sector compared to other industries. The research highlights the moderating effects of digitalization, stock price crash risk, internal control, and environmental social governance (ESG) on labor dynamics during the pandemic. Notably, higher digitalization and lower stock crash risk attenuate labor size reductions, while higher internal control levels correlate with greater workforce reductions. Additionally, the analysis reveals disparities based on ownership structure, city scales and geolocation features, indicating that non-state-owned enterprises (non-SOEs) were more adversely affected than state-owned enterprises (SOEs). The results highlight the importance of enhancing digital capabilities and financial transparency for resilience against future disruptions, while also suggesting a reevaluation of internal controls and ESG strategies to improve adaptability during crises. Robustness checks, including the parallel trend test, lagged control variables, alternative time periods and comparisons with the technological sector, confirm the robustness of the findings.This study investigates the COVID-19 pandemic’s effects on labor size and structure within China’s hospitality and tourism industry using a difference-in-difference approach. It reveals significant workforce reductions and highlights the moderating roles of digitalization, stock price crash risk, internal control, and ESG. Findings emphasize the importance of enhancing digital capabilities, financial transparency, and targeted crisis management strategies to improve resilience. The research provides valuable insights for policymakers and practitioners to strengthen industry adaptability during future disruptions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2485403 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2485403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2485403 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524574_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Porto Bazie Author-X-Name-First: Porto Author-X-Name-Last: Bazie Author-Name: Mamadou Abdoulaye Diallo Author-X-Name-First: Mamadou Abdoulaye Author-X-Name-Last: Diallo Title: State legitimacy in Sahelian countries: Exploring the impact of insecurity on institutional trust in Burkina Faso Abstract: The security situation in Sahelian countries, particularly Burkina Faso, has deteriorated sharply in recent years, raising serious concerns about its impact on state legitimacy. This study examines how perceived insecurity affects citizens’ trust in core state institutions—the executive, legislative, and judicial branches. Drawing on theories of state legitimacy, fragile state governance, and the social contract, we use data from the 2019 Afrobarometer survey of 1,200 Burkinabé adults. A multivariate Probit regression model is employed to capture potential interdependence in trust across institutions. Results show that insecurity significantly reduces institutional trust, with a stronger impact observed in urban areas, especially toward the executive and legislative powers. Trust across the three branches is found to be interrelated. Additionally, factors such as access to basic health services, youth inclusion, education, living conditions, perceptions of corruption, and the government's handling of terrorism and economic management also influence institutional trust. The study underscores the need to combat insecurity in all its forms, promote good governance, and improve public service delivery. Strengthening local governance and addressing citizens’ needs are crucial steps toward restoring state legitimacy in Burkina Faso.This paper employs a multivariate Probit regression model to empirically assess the impact of insecurity on citizens’ trust in state institutions in Burkina Faso. The findings show that increasing insecurity significantly undermines institutional trust, particularly in urban areas, and reveals interdependence between trust in the executive, legislative, and judicial branches. The study is significant as it provides evidence for policymakers to understand the erosion of state legitimacy in fragile contexts. It offers actionable insights for improving governance, enhancing public service delivery, and restoring trust through targeted interventions in security, health, youth engagement, and anti-corruption efforts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524574 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524574 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2566948_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohamed Abdirahman Abdihamid Author-X-Name-First: Mohamed Abdirahman Author-X-Name-Last: Abdihamid Author-Name: Felix Wamono Author-X-Name-First: Felix Author-X-Name-Last: Wamono Author-Name: John Bosco Asiimwe Author-X-Name-First: John Bosco Author-X-Name-Last: Asiimwe Author-Name: Mohiadin Ahmed Mohamed Author-X-Name-First: Mohiadin Ahmed Author-X-Name-Last: Mohamed Title: The effect of government expenditure on unemployment in Somalia using ARDL model Abstract: Somalia faces significant challenges in maintaining low unemployment and achieving sustainable economic growth, especially due to traditional development bottlenecks such as political instability, inadequate infrastructure and excessive reliance on foreign aid. Realizing the need for inclusiveness of growth, this study empirically investigates the relationship between unemployment and the selected macroeconomic variables, namely, government expenditure, gross domestic product (GDP), agricultural value added and official development assistance (ODA), using annual data from 1990 to 2023. The study employs the Autoregressive Distributed Lag to estimate both the long run as well as short-run dynamics, while the Augmented Dickey-Fuller test is employed to ascertain stationarity of the variables, and Granger causality tests help us in determining causal direction among variables. The long-term findings reveal that increased government expenditure, GDP growth and agricultural output play a significant part in reducing unemployment, while ODA exerts a minimal influence on raising unemployment with implications of possible inefficiencies or aid dependency. Short-term unemployment dynamics are influenced by both GDP and agriculture. While GDP consistently reduces unemployment across lags, agriculture has mixed effects that suggest short-term frictions or transition issues. Causality analysis shows that there is a two-way causal relationship between GDP, government spending and ODA and a unidirectional relationship between unemployment and government spending. These findings require concentrated fiscal policy, efficient public spending, incremental agricultural modernization and better-linked foreign assistance focused on employment creation steps vital to the reduction of unemployment and the support of inclusive, sustainable growth in Somalia’s unsettled economic environment.This study, “The Effect of Government Expenditure on Unemployment in Somalia Using the ARDL Model,” determines the role of fiscal policy and key macroeconomic determinants in influencing unemployment between 1990 and 2023. From the study, it is clear that government expenditure, economic growth, and development of agriculture significantly reduce unemployment, while official development assistance has a modest positive effect on unemployment. These results have important policy implications, calling for the introduction of efficient public spending, growth strategy, and agricultural modernization to address unemployment and stimulate sustainable economic development in Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2566948 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2566948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2566948 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2449194_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ameiy Acharya Author-X-Name-First: Ameiy Author-X-Name-Last: Acharya Author-Name: Saket Gupta Author-X-Name-First: Saket Author-X-Name-Last: Gupta Author-Name: Krishna Kumba Author-X-Name-First: Krishna Author-X-Name-Last: Kumba Author-Name: Patri Upender Author-X-Name-First: Patri Author-X-Name-Last: Upender Title: Leveraging momentum clustering and PID control for enhanced portfolio management Abstract: Efficient wealth management in dynamic financial environments is crucial for maximizing returns and mitigating risk. Therefore, this study presents an adaptive portfolio management strategy that combines momentum-based clustering, a Proportional-Integration-Derivative (PID) controller, and efficient frontier (EF) analysis to construct optimal portfolios in dynamic financial environments. A novel integration of a PID controller dynamically adjusts the asset weights to address the limitations of static optimization methods. EF analysis is then employed to identify portfolios with optimal risk-return trade-offs. Our dynamic strategy demonstrates competitive performance compared to conventional benchmarks. From 2017 to 2023, the approach yielded a cumulative return of 135.5%, surpassing Standard and Poor’s 500 (46.66%), Russell’s 2000 Index (11.47%) and NASDAQ (67.88%). These findings suggest that the integration of clustering techniques and PID controllers offers a promising approach for portfolio management.This research presents a novel framework integrating momentum clustering and PID control into portfolio management, leveraging a decade of S&P 500 stock data. By combining technical indicators, rolling factor betas, and dynamic optimization, the strategy demonstrates superior adaptability to varying market conditions. The incorporation of advanced metrics, such as Sharpe and Sortino ratios, and efficient frontier modeling ensures rigorous evaluation of performance. This approach outperforms traditional benchmarks like the S&P 500 and DJIA and provides a scalable and robust solution for achieving optimal risk-adjusted returns. The findings contribute significantly to the fields of quantitative finance and algorithmic trading by offering a methodology that bridges static optimization with real-time adaptability, addressing the challenges of economic cyclicality and market volatility. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2449194 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2449194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2449194 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476089_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Pousbila Dianda Author-X-Name-First: Pousbila Author-X-Name-Last: Dianda Author-Name: Noël Thiombiano Author-X-Name-First: Noël Author-X-Name-Last: Thiombiano Author-Name: Mawussé Komlagan Nézan Okey Author-X-Name-First: Mawussé Komlagan Nézan Author-X-Name-Last: Okey Title: Electronic money accessibility and financial inclusion in WAEMU countries: does increased access to electronic money lead to greater financial inclusion? Abstract: This article investigates the effect of electronic money accessibility on financial inclusion within West African Economic and Monetary Union (WAEMU) countries. Using annual data from 2010 to 2022, we employ a method of moments quantile regression (MMQR) for estimations. The results show that e-money accessibility stimulates financial inclusion in two ways. First, it extends access to formal financial services in previously underserved rural and peri-urban areas and reduces the financial and physical barriers to accessing financial services. Second, its impact is amplified in countries where the initial level of financial inclusion is already high, suggesting a catalytic effect, particularly for individuals who already have a relationship with traditional financial services. The results are robust when we use the instrumental variables method of double ordinary least squares (IV-2SLS). To improve financial inclusion, it is crucial to develop digital infrastructures to increase accessibility to digital financial services. Investment in human capital through education and robust security measures are essential to build trust and ensure the widespread adoption of digital financial services.This research examines the effect of electronic money accessibility on financial inclusion within within West African Economic and Monetary Union (WAEMU) countries. Our findings demonstrate that e-money accessibility significantly promotes financial inclusion, particularly for rural and peri-urban populations. These results underscore the critical importance of developing digital infrastructure and encouraging the adoption of electronic money to strengthen financial inclusion across the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476089 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476089 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2492196_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Gizachew Argaw Author-X-Name-First: Gizachew Author-X-Name-Last: Argaw Author-Name: Degye Goshu Author-X-Name-First: Degye Author-X-Name-Last: Goshu Author-Name: Mengistu Ketema Author-X-Name-First: Mengistu Author-X-Name-Last: Ketema Author-Name: Abule Mehare Author-X-Name-First: Abule Author-X-Name-Last: Mehare Title: Impacts of efficiency on food security status of smallholders in the Gurage Zone of Ethiopia Abstract: The lower productivity in the agricultural sector has been one of the main contributors to the Ethiopia’s food insecurity. Despite less than expected outcomes, the government is nevertheless placing a high priority on ensuring food security through large investments in farm technologies. Increasing agricultural productivity can be achieved through the use of new technology and/or through the improvement of internal efficiency. In this study the impacts of efficiencies on food security status of smallholders were analyzed in the Gurage zone of Ethiopia. A general propensity score and dose response function were used to analyze the data collected from 384 randomly selected smallholders. The results depicted that while all types of farm efficiency have a favorable effect on the food accessibility and availability, technical efficiency is most important for boosting the availability of household calories for smallholder farm households. Therefore, measures that improve smallholders’ knowledge and skill, access to land, provision of farmer training centers, accessibility of credit, and availability of agricultural inputs would significantly boost their efficiency in turn the food security status. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2492196 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2492196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2492196 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2586314_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Amir Mohamud Mohamed Author-X-Name-First: Amir Mohamud Author-X-Name-Last: Mohamed Author-Name: Abdulkadir Mohamed Abdullahi Author-X-Name-First: Abdulkadir Mohamed Author-X-Name-Last: Abdullahi Author-Name: Mohamud Hussein Mohamud Author-X-Name-First: Mohamud Hussein Author-X-Name-Last: Mohamud Title: Factors influencing exports in Somalia: analyzing the impact of conflicts and unregulated exchange rates Abstract: The absence of strong government institutions with an unregulated exchange rate, as well as the presence of conflicts, has weakened Somalia’s exports to international markets. In this regard, this study examines the impact of unregulated exchange rates and conflicts on exports in Somalia using annual time-series data spanning 1985–2019. This study also employs several econometric methods, such as the Autoregressive Distributed Lag (ARDL) model and fully modified ordinary least squares (FMOLS) methods. The empirical results reveal that an unregulated exchange rate undermines exports in the short run but not in the long run, whereas conflicts, especially internal conflicts, inhibit exports in the long run. However, this study proposes that Somalia’s monetary authority print new currency denominations to regain an effective monetary policy tool, including exchange rate determination, to impact exports. In addition, the federal and state governments of Somalia and their communities should work together to defuse all forms of conflict that hinder economic stability and export performance.This study offers important insights into how unregulated exchange rates and ongoing conflicts have hindered Somalia's export performance over the last thirty years. The research demonstrates that, through the application of rigorous econometric methods, exchange rate volatility adversely affects exports in the short term, whereas internal conflicts have a persistent detrimental effect on trade growth. The findings underline the urgent need for Somalia to restore monetary authority through the introduction of new currency denominations and to increase collaboration among federal, state, and community actors to settle conflicts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2586314 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2586314 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2586314 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555418_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Raphael Ampedu Author-X-Name-First: Raphael Author-X-Name-Last: Ampedu Author-Name: Xiongyuan Wang Author-X-Name-First: Xiongyuan Author-X-Name-Last: Wang Author-Name: Richmond Mensah Author-X-Name-First: Richmond Author-X-Name-Last: Mensah Title: Investigating the role of economic factors in shaping stock market trends in Ghana Abstract: This study examines the macroeconomic determinants of stock market performance in Ghana, addressing a gap in the literature by incorporating Fintech as a novel determinant alongside Gross Domestic Product (GDP), the Consumer Price Index, foreign direct investment, government expenditure and population growth. Using Autoregressive Distributed Lag (ARDL) and Two-Stage Least Squares (2SLS) models with time-series data from 1991 to 2023. The analysis finds that GDP positively drives market performance, while the Consumer Price Index negatively impacts returns, supporting the Efficient Market Hypothesis and Economic Growth Theory. Fintech shows a negative short-run effect in ARDL, reflecting Ghana’s market inefficiencies, but a positive effect in 2SLS, suggesting efficiency potential. Policy recommendations include monetary tightening, economic diversification and Fintech regulation. The study contributes to emerging market finance by elucidating Fintech’s role in Ghana’s low-liquidity market, highlighting the need for inflation control, economic diversification, and balanced Fintech regulation to foster stable growth, benefiting investors and financial institutions in Ghana and similar economies.This study investigates the influence of macroeconomic factors, including GDP growth, consumer price index (CPI), foreign direct investment (FDI), and Fintech adoption, on stock market performance in Ghana using an autoregressive distributed lag (ARDL) model and two-stage least squares (2SLS) estimation using time series data from 1991 to 2023. Key findings reveal a significant positive long-run impact of GDP on market performance, a negative effect from CPI, and mixed results for Fintech a negative short-run association in ARDL due to market inefficiencies and volatility, but a positive though insignificant effect in 2SLS, suggesting potential efficiency gains. Interaction terms highlight how Fintech and FDI amplify GDP effects in specific contexts. The study address critical gap in the literature by integrating Fintech as a novel determinant in emerging African markets, where mobile money dominates financial innovation. It provides Ghana-specific insights into structural inefficiencies, such as low liquidity and regulatory gaps, informed by Efficient Market Hypothesis and Economic Growth Theory, while incorporating Behavioral Finance to explain sentiment-driven outcomes. These findings highlights practical policy implications for regulators to enhance Fintech oversight, stabilize inflation, and promote economic diversification, aiding investors, financial institutions, and policymakers in fostering sustainable market growth in similar developing contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555418 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555418 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2553785_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yusuf Adeneye Author-X-Name-First: Yusuf Author-X-Name-Last: Adeneye Author-Name: Normaizatul Akma Saidi Author-X-Name-First: Normaizatul Akma Author-X-Name-Last: Saidi Author-Name: Nursalihah Ahmad Raston Author-X-Name-First: Nursalihah Ahmad Author-X-Name-Last: Raston Author-Name: Naziatul Aziah Mohd Radzi Author-X-Name-First: Naziatul Aziah Author-X-Name-Last: Mohd Radzi Author-Name: Noraida Saidi Author-X-Name-First: Noraida Author-X-Name-Last: Saidi Author-Name: Ines Kammoun Author-X-Name-First: Ines Author-X-Name-Last: Kammoun Title: Political instability and bank liquidity in Asia: the role of environmental performance Abstract: This paper investigates the relationship between political instability and bank liquidity. Next, we investigate the possible transmission channels through which political instability impacts bank liquidity negatively. Also, we examine whether the environmental performance of banks could mitigate the effects of political instability towards bank liquidity. We employ a panel data set comprising 112 banks in 19 Asian countries from 2013 to 2023. Using the fixed effects, two-step system GMM and two-stage least squares estimation techniques, our findings show that political instability significantly reduces bank liquidity. We show that the impact of political instability is less pronounced in banks with high environmental performance. Our results are robust to alternative definitions of bank liquidity, specifications, and address endogeneity concerns. We present novel evidence that ‘depositor attitude’ and ‘interbank liabilities’ are the two possible transmission channels through which political instability negatively impacts bank liquidity. We find no support for the liquidity buffer constraint. Our findings extend flight-to-liquidity and bank lending theories by highlighting how political instability impacts bank liquidity and enrich the risk management theory by demonstrating the role of environmental performance in mitigating the impact of political instability on banks.This study addresses a critical gap in banking literature by focusing on how macro-political risks, e.g., political instability, could impact banks’ liquidity creation. This study reveals that depositor attitude and interbank liabilities are potential transmission channels through which political instability impacts bank liquidity negatively and how political risk could be mitigated by environmental initiatives/performance of banks across 19 Asian countries. The research holds significant academic and practical value. Banks should implement robust deposit insurance schemes and ensure that risk management and stress testing models include political instability shocks to assess banks’ resilience to transmission channels. Policymakers like central banks need to enforce Liquidity Coverage Ratio (LCR) implementation to cushion the effects of systemic liquidity risk and contagion risk of interbank liabilities. This would limit vulnerabilities, restore interbank trust, and limit panic withdrawals. This research bridges theoretical predictions of bank liquidity and enhances banks’ liquidity prediction during uncertain times and crises in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2553785 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2553785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2553785 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2598189_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Piman Limpaphayom Author-X-Name-First: Piman Author-X-Name-Last: Limpaphayom Author-Name: Pattarake Sarajoti Author-X-Name-First: Pattarake Author-X-Name-Last: Sarajoti Author-Name: Andrew Stotz Author-X-Name-First: Andrew Author-X-Name-Last: Stotz Title: Anchoring effect and long-horizon analysts’ forecast errors Abstract: Prior research demonstrates that security analysts repeatedly produce earnings forecast errors. We conjecture that anchoring, a known behavioral bias, can explain the phenomenon. Specifically, we investigate whether the two widely-used measures of investment quality, E/P and P/B ratios, can induce the anchoring effect on consensus analysts’ forecasts. The results show that long-term 12-month earnings forecasts tend to be optimistic (higher than actual earnings) for stocks with high Earnings-to-Price (E/P) ratios and low Price-to-Book (P/B) ratios and pessimistic (lower than actual earnings) for stocks with low E/P ratios and high P/B ratios. However, the results using short-term forecast horizons show that E/P ratios and P/B ratios are not related to forecast errors. It appears that E/P and P/B ratios affect analysts’ long-term forecasts but not short-term forecasts when additional information about earnings is available. The results are robust when controlling for risk and growth along with alternative measures of forecast errors. In the end, the evidence provides support to the notion that anchoring effect plays a role in generating long-horizon consensus analysts’ forecast errors. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2598189 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2598189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2598189 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2482745_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kinjal Manani Author-X-Name-First: Kinjal Author-X-Name-Last: Manani Author-Name: Raghukumari P. S. Author-X-Name-First: Raghukumari Author-X-Name-Last: P. S. Title: Future research directions in carbon emissions linkage with corporate governance and earnings management: a systematic review and TCCM synthesis Abstract: The purpose of this study is to extensively review the existing literature on corporate carbon emissions with earnings management and corporate governance. We used the PRISMA protocol, R for bibliometric analysis, VOSviewer for network visualisation and TCCM framework for systematic review. The study analysed 354 research articles from the Scopus database from 2009 to 2024. A total of 889 authors contributed to the 354 research articles. China has the highest number of papers published in selected domains, followed by Australia, the USA, and the UK. Australian papers received the highest citations. The paper also includes keyword co-occurrence analysis and network visualisation of authors international collaborations. It has been observed through the TCCM framework that while carbon emissions and corporate governance have been extensively studied, the relationship between carbon emissions and earnings management has remained unexplored. The Analysis examines global publications and finds that excluding China, research on the given area remains limited in other Asian countries, highlighting scope for future research. Overall, the paper explains various future research directions for the area under study. Additionally, it will help policymakers and practitioners understand the kind of governance required to implement sustainable practices and the role of earnings management in influencing sustainable decision-making.The paper covers an extensive review of existing literature on corporate carbon emissions with earnings management and corporate governance using R for bibliometric analysis and VOSviewer for network visualisation. The paper also includes detailed review with TCCM framework and explains various future research directions for the area under study. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2482745 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2482745 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2482745 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2475140_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohamed Ibrahim Nor Author-X-Name-First: Mohamed Ibrahim Author-X-Name-Last: Nor Author-Name: Mohamed Mahees Raheem Author-X-Name-First: Mohamed Mahees Author-X-Name-Last: Raheem Title: Poor governance and weak social cohesion in Somalia’s Climate-stressed settings: the mediating effects of economic inefficiencies and limited human development Abstract: The purpose of this study is to investigate the complex relationship between poor governance and weak social cohesion in Somalia’s Climate-vulnerable setting, with a specific focus on how economic inefficiencies and limited human development mediate this dynamic. The study employs Structural Equation Modeling (SEM) to analyze survey data from Somalia, assessing the impact of poor governance, economic inefficiencies, and limited human development on social cohesion. The findings confirm that economic inefficiencies significantly contribute to weak social cohesion, while poor governance exacerbates both economic inefficiencies and limited human development. This cyclical relationship perpetuates social fragmentation, illustrating the critical need for governance reforms and targeted investments in human development to rebuild social cohesion. The study highlights the importance of integrated policy interventions that address governance reforms alongside economic revitalization and human development initiatives. Anti-corruption measures, equitable resource distribution, and community-based programs are essential to restoring social cohesion and fostering sustainable stability in post-conflict settings like Somalia. This research presents a conceptual model linking governance, economic, and social dimensions in a fragile post-conflict context, offering new insights into the cyclical effects of poor governance on recovery outcomes. This study reveals how governance failures and economic inefficiencies weaken social cohesion in fragile states.This study provides critical insights into the intricate relationship between poor governance, economic inefficiencies, and weak social cohesion in Somalia’s climate-vulnerable and post-conflict setting. By employing Structural Equation Modeling (SEM), the research identifies how governance failures exacerbate economic stagnation and hinder human development, ultimately fragmenting social cohesion. The findings emphasize the urgent need for governance reforms, economic revitalization, and human development investments to break this cycle of instability. This study contributes to policy discourse by presenting a conceptual model that links governance, economic, and social dimensions, offering practical recommendations for fostering sustainable stability in fragile states. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2475140 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2475140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2475140 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2540536_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Moulirou Belem Author-X-Name-First: Moulirou Author-X-Name-Last: Belem Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Title: Effect of household use of butane gas on deforestation in Burkina Faso Abstract: The objective of this work is to analyze the effect of household use of butane gas on deforestation in Burkina Faso using data from the household living conditions survey carried out in 2021 by the National Institute of Statistics and Demography on a sample of 7176 households. To achieve this objective, the two-stage least squares method was used. The results show that the use of butane gas has a negative effect on deforestation in that it reduces household consumption of firewood. This result shows that households using butane gas contribute to mitigating deforestation in Burkina Faso. Also, household size and the fact of farming increase household consumption of firewood. However, household income, urban location, access to electricity, access to roads, single status and education reduce fuelwood consumption. These results imply policies to increase household adoption of butane gas, such as subsidies on butane gas prices for vulnerable households and awareness campaigns on the environmental benefits of its use.This research into the effect of household use of butane gas on deforestation in Burkina Faso is crucial in a context of increasing pressure on forest resources and Burkina Faso's slow energy transition. Analyzing the link between switching from traditional fuels to butane gas can help reduce deforestation will provide empirical evidence to inform public policies on the environment, household energy and the fight against climate change. It will also provide a better understanding of the determinants of butane gas adoption and the obstacles to be overcome for wider diffusion, particularly in rural areas. The results obtained can thus guide sustainable development strategies reconciling environmental protection and household well-being. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2540536 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2540536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2540536 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2519926_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jacques Boundioa Author-X-Name-First: Jacques Author-X-Name-Last: Boundioa Title: Fiscal capacity and public health expenditure in the west African Economic and Monetary Union: the moderating effect of political instability Abstract: The aim of this paper is to examine the moderating effect of political instability on the relationship between fiscal capacity and public health expenditure. On the basis of panel data from six (06) countries of the West African Economic and Monetary Union, over the period 2000-2020, the method of double least squares with time and individual fixed effects was applied. It was established that fiscal capacity positively influenced public health expenditure. The coefficient for the interaction term was negative and significant, affirming the hypothesis that political instability distorts the positive impact of public health expenditure. It is necessary for various governments to further improve their mobilization of fiscal resources to move towards universal health coverage. To mitigate the adverse effects of political instability on public healthcare financing, there is a need for West African Economic and Monetary countries to improving the quality of governance. The implementation of economic policies aimed at reducing inequalities, creating jobs and providing equitable opportunities for all citizens helps to improve people's conditions, fighting corruption and promoting transparency and accountability. These economic policies are necessary for political stability, which facilitates the mobilisation of fiscal resources and consequently improves public health expenditure.Our study examines the moderating effect of political instability on the relationship between fiscal capacity and public health expenditure. The study reveals that political instability distorts the positive influence of fiscal capacity on public health expenditure in the WAEMU countries. It is necessary to promote political stability, which is the guarantor of fiscal capacity and, thus increase public health expenditure. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2519926 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2519926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2519926 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2447390_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thu Hien Bui Author-X-Name-First: Thu Hien Author-X-Name-Last: Bui Author-Name: Khanh Linh Vu Author-X-Name-First: Khanh Linh Author-X-Name-Last: Vu Title: The effect of green policy announcements on sectoral stock returns: empirical evidence from Vietnam Abstract: This study examines the impact of Green Policy Announcements (GPAs) on sectoral stock returns in the Vietnamese stock market using event study methodology. Environmental sustainability has become a critical issue globally, and Vietnam is no exception. As the country experiences rapid economic growth, it faces significant environmental challenges, including increased pollution and climate change impacts. The Vietnamese government has implemented various green policies to address these challenges. Using data from 737 firms listed on the Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange (HSX), the study investigates the effects of 20 GPAs issued between 2012 and 2022. Findings reveal significant sectoral impacts on returns, volatility, and trading volume, with notable sensitivity in the Construction & Materials and Real Estate sectors. These results suggest that green policies reduce investor uncertainty in these sectors, reflecting their importance in Vietnam's environmental policy landscape. Findings provide valuable insights for policymakers, managers and investors, highlighting the need for tailored approaches to support the transition to a greener economy. In addition, this study highlights significant sector-specific responses to Green Policy Announcements (GPAs) in Vietnam, emphasizing the need for tailored interventions in heavily polluting sectors like Construction & Materials and Chemicals. It underscores the importance of incentivizing green finance, enhancing regulatory transparency, and leveraging stock market responses to refine policy effectiveness.This research examines the effects of Green Policy Announcements (GPAs) on sectoral stock returns in Vietnam, providing one of the first comprehensive analyses of how sustainability policies influence financial markets in a developing country. By focusing on Vietnam, a fast-growing economy with significant environmental challenges, this study highlights the role of GPAs in shaping market behavior and promotes a better understanding of the interplay between environmental policy and financial market dynamics. The findings contribute to the growing literature on sustainable finance and offer valuable implications for policymakers, corporate managers and investors. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2447390 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2447390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2447390 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2531147_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Wajahat Azmi Author-X-Name-First: Wajahat Author-X-Name-Last: Azmi Author-Name: Shujaat Naeem Azmi Author-X-Name-First: Shujaat Naeem Author-X-Name-Last: Azmi Author-Name: Syed Aun R. Rizvi Author-X-Name-First: Syed Aun R. Author-X-Name-Last: Rizvi Author-Name: Haitham Nobanee Author-X-Name-First: Haitham Author-X-Name-Last: Nobanee Title: Uncovering the impact of FTX, BlockFi and the genesis collapse on crypto markets: evidence from the event study approach Abstract: Using the event study approach, we investigate the impact of the FTX collapse on the top ten cryptos in terms of market capitalization. The sample period starts from 5 May 2022 and ends on 21 November 2022. The analysis of aggregate cryptocurrencies indicates negative abnormal returns leading up to the event day, especially in the last three days (with the highest being witnessed on t − 1, which is more than 13%). Moreover, the cumulative abnormal returns of individual cryptocurrencies reveal that most of them observed negative abnormal returns, especially post-event days (t + 1, t + 3, t + 5, t + 7 and t + 9). We link our findings to investors’ trust erosion in response to such events, thus creating panic among investors. Specifically, we argue that such shocks are bound to create trust deficits, owing to a lack of regulation related to investor protection. Motivated by these findings, we also tested the implications of the BlockFi and Genesis collapse. To cover these events, we extend the sample to 24 January 2023. Overall, our results indicate that these events did not have any significant impact on the crypto market. We attribute this finding to the expectation adjustment of crypto investors.This study provides timely and critical insights into how major institutional failures—specifically the collapse of FTX, BlockFi, and Genesis—have shaped investor behavior and market dynamics in the cryptocurrency sector. By employing an event study methodology, our findings reveal that the FTX collapse triggered substantial negative abnormal returns, underscoring the market’s vulnerability to trust shocks and highlighting the consequences of regulatory gaps in investor protection. In contrast, the muted market response to the later BlockFi and Genesis collapses suggests an evolving investor psychology characterized by expectation adjustment. These results offer valuable evidence for policymakers, regulators, and market participants on the systemic importance of transparency and regulatory oversight in preserving market integrity and investor confidence in decentralized financial ecosystems. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 7 X-DOI: 10.1080/23322039.2025.2531147 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2531147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2531147 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2513486_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Saido Nur Mohamed Author-X-Name-First: Saido Nur Author-X-Name-Last: Mohamed Author-Name: Ikran Mohamed Weyrah Author-X-Name-First: Ikran Mohamed Author-X-Name-Last: Weyrah Author-Name: Maryan Daud Isse Author-X-Name-First: Maryan Daud Author-X-Name-Last: Isse Author-Name: Ismahan Abdi Husein Author-X-Name-First: Ismahan Abdi Author-X-Name-Last: Husein Title: Determinants of economic well-being and human development in Somalia: a dual analysis of GDP per capita and life expectancy Abstract: Economic well-being and human development are essential indicators of a nation’s progress, particularly in fragile states like Somalia, where political instability, weak institutions, and external dependencies pose persistent challenges. This study examines the long- and short-run effects of institutional quality, political stability, inflation, foreign aid, foreign direct investment (FDI), and urbanization on Somalia’s GDP per capita and life expectancy from 1989 to 2022, employing the Autoregressive Distributed Lag (ARDL) model, Fully Modified Ordinary Least Squares (FMOLS), and Dynamic Ordinary Least Squares (DOLS). The findings indicate that institutional quality and FDI significantly enhance both GDP per capita and life expectancy in the long run, highlighting the importance of strong governance and foreign investment in driving economic and social progress. Conversely, foreign aid negatively affects both indicators, reinforcing concerns about aid dependency and weakened domestic productivity and healthcare systems. Political stability, inflation, and urbanization exhibit limited long-run effects, though urbanization negatively impacts both outcomes in the short run due to infrastructure constraints and healthcare pressures. These results emphasize the need for institutional reforms, investment-friendly policies, and reduced aid dependency. The study recommends policies that enhance governance, attract targeted FDI, improve urban planning, and strengthen long-term economic and social resilience in Somalia.This study delivers a groundbreaking dual analysis of economic well-being and human development in Somalia by jointly examining GDP per capita and life expectancy using advanced econometric techniques ARDL, FMOLS, and DOLS. It finds that institutional quality and foreign direct investment significantly enhance long-term economic and social outcomes, whereas foreign aid has a counterproductive effect by deepening dependency and weakening domestic capacities. By integrating economic and health indicators in a context marked by prolonged instability, this research offers a rare and nuanced perspective on development in conflict-affected and governance-challenged environments. The findings provide valuable insights for national policymakers and international partners aiming to strengthen institutions, promote investment, and reduce structural aid reliance. This study contributes to the broader discourse on rebuilding economies and improving well-being in contexts of severe socio-political disruption, with practical implications for post-conflict recovery and sustainable development planning. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2513486 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2513486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2513486 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555415_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdinur Ali Mohamed Author-X-Name-First: Abdinur Ali Author-X-Name-Last: Mohamed Author-Name: Liban Bile Mohamud Author-X-Name-First: Liban Author-X-Name-Last: Bile Mohamud Title: Exploring the linear and nonlinear effects of external debt on economic growth in Sub-Saharan Africa Abstract: The rising levels of external debt in developing countries have become a major concern for the international economic community because of their harmful impacts on economic prosperity. This research examines the effect of external debt on economic growth in Sub-Saharan Africa, utilizing panel data from 23 countries within the region from 2011 to 2021. The study aims to understand how external debt affects economic growth, considering both its potential benefits and drawbacks. To accurately estimate the coefficients of the variables, the study employs the Generalized Method of Moments (GMM) system. It incorporates robust checks such as alternative instruments, the Lind and Mehlun U-test, and the Balli and Sørensen approach to ensure the reliability of the baseline model. The findings reveal that while control variables like trade openness, government expenditure, population growth, final consumption, and financial development contribute positively to varying degrees, external debt has a dual impact on economic expansion. Initially, external borrowing supports growth; however, as debt levels increase, it hinders growth, primarily due to the escalating costs of debt servicing. This study advocates for improved debt management strategies. It recommends that governments develop long-term sustainable borrowing strategies aligned with their capacity to service debt.This research examines the impact of external debt on economic growth in Sub-Saharan Africa, revealing that while moderate borrowing can foster growth, excessive debt accumulation undermines economic performance due to rising servicing costs. The findings provide timely insights for policymakers, emphasizing the importance of sustainable debt management strategies to balance financing needs with long-term economic stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555415 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555415 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2586304_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Huong Giang Mai Author-X-Name-First: Huong Giang Author-X-Name-Last: Mai Title: Digital transformation as a catalyst for foreign direct investment: evidence from an emerging economy Abstract: This paper examines the impact of digital transformation on foreign direct investment (FDI) inflows into Vietnam using a panel dataset of 42 partner countries over the period 2007–2023. A digital transformation index is constructed, encompassing three components: electronic government, digital economy, and digital society. Using a modified gravity model, the study shows that digital transformation significantly increases FDI inflows by reducing transaction costs, improving transparency, and enhancing the business environment. The results reveal important heterogeneity: in developed countries, all three components have significant effects, while in developing countries, only electronic government shows a significant impact. The effect is especially strong among EU countries, likely due to institutional and regulatory alignment, while it is weaker in non-EU countries. Robustness checks using alternative proxies, such as mobile subscriptions and internet usage, confirm the central role of mobile connectivity in attracting FDI, particularly in emerging markets. These findings highlight the importance of tailored digital and institutional reforms, including enhancing e-government services, aligning digital policies with international standards, and expanding digital infrastructure. The study contributes to the literature on FDI and digitalization and offers practical implications for Vietnam and other developing countries in leveraging digital transformation to attract foreign investment.This paper demonstrates that digital transformation plays a pivotal role in attracting foreign direct investment into Vietnam by lowering transaction costs, increasing transparency, and improving the business environment. It also uncovers regional and developmental disparities in the impact of digitalization on FDI. The findings inform policy directions for enhancing digital institutions, infrastructure, and cross-border regulatory alignment to strengthen investment competitiveness in a digitalized global economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2586304 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2586304 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2586304 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457476_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mario Alberto de la Puente Pacheco Author-X-Name-First: Mario Alberto de la Puente Author-X-Name-Last: Pacheco Author-Name: Jose Torres Author-X-Name-First: Jose Author-X-Name-Last: Torres Author-Name: Julio Cesar Cantillo Padron Author-X-Name-First: Julio Cesar Author-X-Name-Last: Cantillo Padron Author-Name: Maria Claudia Pacheco Barros Author-X-Name-First: Maria Claudia Author-X-Name-Last: Pacheco Barros Author-Name: Heidy Rico Author-X-Name-First: Heidy Author-X-Name-Last: Rico Title: Analyzing the role of gender in entrepreneurship education and economic success in developing nations: the case of Colombia Abstract: This study examines the role of gender in entrepreneurship education and its influence on business success in the city of Barranquilla, Colombia. The research question focuses on gender-specific patterns of participation in entrepreneurship education programs and the impact on business growth. Two hypotheses are tested to explore differences in program access between men and women and the relationship between education participation and business success for both genders. Data from 89 participants were analyzed using chi-square tests, t-tests, and regression analysis. The findings suggest gender-specific differences in program access and a positive relationship between education participation and business success, with varying effects based on gender. The study highlights the importance of promoting gender diversity in entrepreneurship education to foster an inclusive and supportive entrepreneurial ecosystem in Barranquilla.This research advances knowledge about gender dynamics in entrepreneurship education and business success through data from 89 participants in Barranquilla, Colombia. The study analyzed how men and women access educational programs differently and the effects on their business growth. The findings highlight barriers women face in getting entrepreneurship training and support, which influences their business outcomes. These results help shape new policies and practices for making entrepreneurship education more inclusive in Barranquilla, leading to better opportunities for both men and women business owners. The work adds to Social Capital Theory and Human Capital Theory through its focus on gender-specific patterns in educational access and business achievement, helping create a more balanced entrepreneurial landscape in northern Colombia. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457476 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457476 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2590961_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yang Song Author-X-Name-First: Yang Author-X-Name-Last: Song Author-Name: Francesca Medda Author-X-Name-First: Francesca Author-X-Name-Last: Medda Title: Leveraging insurance-linked securities to address fiscal constraints in transport infrastructure Abstract: Climate-related catastrophes are increasingly disrupting global transport infrastructure and leading to escalating stress on public budgets. This study explores Insurance-Linked Securities (ILS), specifically resilience bonds as an innovative financing tool to strengthen transport resilience. Applying a China intermodal transport hub case supported by empirical claims data, the study models bond pricing and develop the associated investment mechanism. The findings show that applying resilience bond to enhance a critical hub can effectively attract private finance, reduce pressure on public budgets and incentivise bond-funded Public-Private Partnerships (PPP). This study provides valuable insights for policymakers, investors and business leaders seeking to understand innovative financing mechanisms, addressing critical gaps in resilience financing, and contributes to advancing global infrastructure resilience strategies in alignment with the UN Sustainable Development Goals (SDGs) for infrastructure and urban resilience.This study demonstrates how the emerging resilience bonds can mobilise private capital to stengthen transport infratruture resilience and easing fiscal pressure on governments. By applying empirical transport network disruption data from China, the research quantifies resilience benefits, connect them directly to the bond valuation model. It shows how infrastructure enhancement can mitigate risk and generate additional upfront financing. The findings provide policymakers and investors with a practical framework for integrating resilience into financial decision making, offering a mechanism to fund climate resilient transport systems in alignment with global sustainability and adaptation goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2590961 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2590961 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2590961 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2598191_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Umar-Farouk Atipaga Author-X-Name-First: Umar-Farouk Author-X-Name-Last: Atipaga Author-Name: Maghnitta Mensah Author-X-Name-First: Maghnitta Author-X-Name-Last: Mensah Title: Global uncertainties and the Ghanaian cedi: time-frequency and directional information flow analysis Abstract: This study aims to investigate the impact of global uncertainties on the movement of the Ghanaian cedi. We employed wavelet and Renyi transfer entropy techniques to assess the relationship using daily exchange rates from June 2016 to October 2023. We also did a sub-sample analysis for 2022, which analysts described as a crisis year. We found that the volatility of the Ghanaian cedi is significantly influenced by the oil price volatility and Ghana’s sovereign spread indexes. Our wavelet results showed that risks are muted in the short run but intensify in the medium to long term. The study concludes that debt sustainability is critical for the stability of the Ghanaian cedi. It further found that muted risks accompany investment opportunities at the short end of the horizon.This research is of interest to foreign exchange market practitioners and policymakers in Ghana. It provides insights into the Ghanaian cedi’s level of integration with global developments amid recent shocks and spillovers in financial markets. The findings are crucial for FX traders and policymakers in making informed decisions and developing effective policies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2598191 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2598191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2598191 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2445436_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Samson Gebrerufael Author-X-Name-First: Samson Author-X-Name-Last: Gebrerufael Author-Name: Getachew Kebede Author-X-Name-First: Getachew Author-X-Name-Last: Kebede Author-Name: Daniel Hadera Author-X-Name-First: Daniel Author-X-Name-Last: Hadera Author-Name: Guush Weldegbrial Author-X-Name-First: Guush Author-X-Name-Last: Weldegbrial Author-Name: Selam Abraha Author-X-Name-First: Selam Author-X-Name-Last: Abraha Title: Inquiry into firm owner’s risk preference and output disparity: evidence from the small-scale manufacturing firms in the Tigray region, Ethiopia Abstract: Employing the Bauer model, this paper presents the factors of risk preferences of small-scale manufacturing firm owners in the Tigray region, Ethiopia. Once we identify the determinants of risk preferences, we investigate the role of risk preferences on firm output disparities utilizing the Penrose growth/output disparity/model. The study uses primary data based on random survey of the small-scale manufacturing firm owners in the zonal towns of the Tigray region. The multinomial logit and the multiple linear regression models are employed to identify the estimates of the factors of the risk preferences and the output disparity. The risk preference category of each sample firm owner was captured by employing the paper-format implicit association test (IAT) contextualized for this study. As a factor of risk preference, we find the soft budget constraint is a statistically significant variable only for the risk-averse and the risk-neutral owners. The factor of the risk preference (good perception of risk faced) is a statistically significant variable only for the risk-lover owners. Unlike the controversial negative relationship between firm owner’s higher risk propensity and firm-level performances presented by some authors, this paper presents the normally expected positive relationship between the higher risk propensity and the output level.We believe this paper would show a remarkable picture of firm owners risk taking behaviour as we investigate both the determinants of risk preference and the role the risk preference has on firm growth. The method by which we capture the risk taking behaviour is also plausable as we employ the contemoprary method of addressing the risk taking behavior viz the implicit association test (IAT). Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2445436 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2445436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2445436 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468388_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nevi Danila Author-X-Name-First: Nevi Author-X-Name-Last: Danila Title: Interconnected dynamics of REITs and other financial Instruments in ASEAN: a comprehensive analysis Abstract: This paper investigates the volatility spillover between Real Estate Investment Trusts (REITs) and other financial instruments and macroeconomic variables, such as currency, stock, oil, and interest rates in three ASEAN countries. The study uses a time-varying vector autoregression (TVP-VAR) model to measure the connections and find out how much shocks in one market can affect the others. Additionally, it provides insights into the implications of these spillover effects for investors and policymakers in the region. The sample period varies depending on the data availability, from January 2010 to October 2024. The study revealed the following key findings: First, the study found that spillover volatility is transmitted from stock and currency markets to REITs markets in Malaysian, Singaporean, and Thai markets. However, in the Malaysian market, the spillover occurs indirectly from stocks to REITs. Secondly, not all markets link interest rates to REITs. Finally, the Malaysian market only indirectly connects oil with REITs through stock and currency.A comprehensive analysis of REITs can aid portfolio reconstruction, enabling investors to anticipate investment changes and minimize risk exposure. This understanding aids policymakers in designing targeted policies to stabilize markets, promoting economic development and stability within the property sector. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468388 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468388 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2440440_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Najib Shrydeh Author-X-Name-First: Najib Author-X-Name-Last: Shrydeh Author-Name: Mohammed Shahateet Author-X-Name-First: Mohammed Author-X-Name-Last: Shahateet Author-Name: Suleiman Mohammad Author-X-Name-First: Suleiman Author-X-Name-Last: Mohammad Author-Name: Mohammad Sumadi Author-X-Name-First: Mohammad Author-X-Name-Last: Sumadi Title: A revised approach to testing for asymmetric intermarket spillover effects Abstract: This paper applies a modified DCC framework to test for asymmetric intermarket spillover effects from the US to a sample of G7 stock markets following the outbreak of the COVID-19 pandemic. The adjustment proposed in this research article addresses the shortcomings associated with the methodologies developed by, inter alia, Forbes and Rigobon (2002). The results demonstrate that spillover is less likely to propagate across highly developed and firmly integrated financial markets.This study deals with the economic impact of stock markets and produces rigorous evidence regarding this impact on theoretical and empirical literature. We hope this study will significantly illuminate the theoretical and empirical research discussions on the links between stock markets and significant economic variables. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2440440 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2440440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2440440 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2475160_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Patrice Rélouendé Zidouemba Author-X-Name-First: Patrice Rélouendé Author-X-Name-Last: Zidouemba Author-Name: Fousseini Traoré Author-X-Name-First: Fousseini Author-X-Name-Last: Traoré Author-Name: Sunday Pierre Odjo Author-X-Name-First: Sunday Pierre Author-X-Name-Last: Odjo Title: Imperfect competition and asymmetric welfare effects of global price and productivity shocks: a CGE model analysis for Senegal Abstract: This article investigates the asymmetric effects of global price and productivity shocks on welfare in the context of imperfect competition. The primary objective is to understand how market concentration affects the transmission of economic shocks and their impacts on various households. A CGE model, calibrated on a 2014 social accounting matrix for Senegal, is used. The model features a trading sector operating under a Cournot oligopoly with increasing returns to scale. Two scenarios are simulated: a 15% increase in global import prices and a 10% increase in agricultural productivity, each considering different levels of market concentration. The findings reveal that higher global import prices reduce household well-being, a situation exacerbated by low market competition. In contrast, agricultural productivity gains enhance well-being, with these benefits amplified by greater competition. However, the wealthiest households in Dakar benefit from low competition due to their positions in oligopolistic companies. To maximize household well-being, economic policies should focus on strengthening market competition, particularly in the trading sector. Actions such as reducing entry barriers for new businesses and regulating anti-competitive practices can help mitigate the adverse effects of global price increases and amplify the benefits of agricultural productivity gains.This study examines the asymmetric welfare effects of global price and productivity shocks in the context of imperfect competition, using a computable general equilibrium (CGE) model for Senegal. Our findings reveal that increased market concentration amplifies the adverse effects of global import price hikes while dampening the benefits of agricultural productivity gains, with significant distributional consequences. In particular, low market competition disproportionately benefits the wealthiest households in Dakar while exacerbating welfare losses for other groups. These insights underscore the critical role of competitive market structures in mitigating economic shocks and enhancing household well-being. The study provides valuable policy implications, highlighting the need for pro-competition policies such as reducing entry barriers and regulating anti-competitive practices in the trading sector. Strengthening market competition can help shield consumers from external price shocks and ensure broader welfare gains from productivity improvements. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2475160 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2475160 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2475160 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555411_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Inês Fevereiro Aguiar Rodrigues Author-X-Name-First: Inês Fevereiro Author-X-Name-Last: Aguiar Rodrigues Author-Name: Luís Miguel Pereira Gomes Author-X-Name-First: Luís Miguel Pereira Author-X-Name-Last: Gomes Author-Name: Cláudia Maria Ferreira Pereira Author-X-Name-First: Cláudia Maria Ferreira Author-X-Name-Last: Pereira Title: How do neighbouring stock markets and sensitive sectors discount the Russia-Ukraine military conflict? Abstract: The outbreak of the Russia-Ukraine military conflict has triggered disruptive macroeconomic implications and reactions on international financial markets. Research on this ongoing extreme event is still scarce, and the evidence is divergent. This article aims to analyse the effects of this event on stock indices of 10 countries close to the conflict and on the stocks of 94 companies across 5 business sectors. The empirical work employs the event study methodology, using market modelling to estimate abnormal returns and stock price reactions. The timeframe was set between 21/10/2021 and 31/03/2022, around the date of the event, including the estimation window [−90;−20] days and the event window [−5;+25] days. The findings suggest that the conflict significantly impacted the stock prices across all sectors and indices, except for the Estonian and Finnish. The tourism sector accumulated the most significant losses, followed by banking and agri-food, while the military sector accumulated abnormal gains. Stock indices from former USSR countries underperformed compared to those of neighbouring Ukraine or Black Sea. The performance of the Bulgarian, Hungarian, Polish, Romanian, Kazakh, Estonian and Finnish indices supports the semi-strong form of the EMH by reflecting the transience of abnormal returns. The most impactful events were the sanctions on Russia, the occupation of the Zaporizhian nuclear power plant and the attack on the Mariupol hospital. The evidence highlights the importance of adopting investment diversification strategies and defining regulatory policies in order to mitigate the risk of extreme crisis events.Analysing the impact of a military conflict Russia-Ukraine on stock market indices and five business sectors in neighbouring countries, as well as in former Soviet republics, sheds new light on financial research. Comparatively, the performance of indices and sectors differs in response to various events within the study window, with the EMH being predominantly accepted. The evidence emphasises the importance of implementing investment diversification strategies and establishing regulatory policies to mitigate the risk of extreme crises. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555411 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555411 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555411 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2485398_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Vivi Silvia Author-X-Name-First: Vivi Author-X-Name-Last: Silvia Author-Name: Maulidar Agustina Author-X-Name-First: Maulidar Author-X-Name-Last: Agustina Author-Name: Dian Zulfa Author-X-Name-First: Dian Author-X-Name-Last: Zulfa Title: What drives household labor absorption in Indonesia? A provincial-level analysis using panel ARDL modeling Abstract: Labor absorption is a persistent challenge in Indonesia, particularly within the MSME sector, which plays a vital role in employment generation. However, existing research has largely overlooked the influence of household spending and financial access on labor absorption, as well as the mediating mechanisms that connect these factors. Addressing these gaps, this study investigates how household spending, working capital credit, and the number of MSME units affect labor absorption in Indonesia, focusing on their relationship with spending on labor and MSME output value, using panel Autoregressive Distributed Lag (ARDL) modeling across 34 provinces from 2013 to 2023. The results show that, in the long term, household spending, working capital credit, labor spending, and the number of MSME units significantly enhance labor absorption, while MSME output value has no direct effect. Household spending fully mediates the relationship between MSME output and labor absorption, while other relationships show partial mediation. In the short term, the relationships are less stable due to adjustments toward equilibrium. Policy implications highlight boosting household purchasing power, improving credit access, and supporting MSME growth to enhance job creation. Recommendations include lowering interest rates, providing workforce training, encouraging innovation, and evaluating policies to strengthen employment opportunities.Labor absorption remains a critical issue in Indonesia, particularly in the MSME sector, which serves as a key driver of employment. This study provides new insights by examining how household spending, working capital credit, and MSME growth influence labor absorption, highlighting the mediating role of household spending in linking MSME output to employment. Using panel ARDL modeling across 34 provinces from 2013 to 2023, the findings reveal that long-term labor absorption is significantly driven by increased household purchasing power, credit accessibility, and MSME expansion. The study underscores the importance of policies aimed at strengthening financial inclusion, enhancing workforce skills, and fostering MSME resilience to improve job creation and economic stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2485398 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2485398 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2485398 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2552874_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Niranjan Chipalkatti Author-X-Name-First: Niranjan Author-X-Name-Last: Chipalkatti Author-Name: Asha Prasuna Author-X-Name-First: Asha Author-X-Name-Last: Prasuna Author-Name: Meenakshi Rishi Author-X-Name-First: Meenakshi Author-X-Name-Last: Rishi Author-Name: S. N. V. Siva Kumar Author-X-Name-First: S. N. V. Author-X-Name-Last: Siva Kumar Title: ESG disclosure scores and Indian banks: a search for relevance Abstract: The study examines the impact of Environmental, Social and Governance (ESG) disclosures on the key financial metrics of Indian Banks. Theoretical framework provided by agency theory, information asymmetry, stakeholder theory, legitimacy theory, principles of sound ERM for banks is adopted. Sample of 29 Indian banks consisting of public and private sector banks over 2013–2023 is used. Research questions examine the impact of aggregate and disaggregated components of ESG scores on banks’ profitability measured as Return on Equity, market risk, cost of funds and credit risk. Panel estimates reveal that there is no significant association between ESG scores and ROE, indicating that ESG integration has not yet translated into measurable profitability improvements for Indian banks. At a disaggregated level, better Governance scores reduce the cost of funds for private banks and that a higher score on the social component is associated with higher credit risk for public sector banks. We find evidence of ‘green washing’ by Indian PSBs that exhibit lower profitability in the previous year, tend to increase their reported ESG scores in the current year. These results highlight the need for more robust and standardized ESG reporting guidelines, regulatory integration of ESG criteria, enhanced stakeholder education and awareness.This study examines the impact of Environmental, Social and Governance (ESG) disclosures on the key financial metrics of Indian Banks. The analysis is based on a sample of 29 Indian banks consisting of public and PVBs over 2013–2023, for which data on financial variables and ESG scores were publicly available. At the aggregate level there is no discernible association between ESG scores and banks’ financial metrics. At the disaggregated level, better Governance (G) scores reduce the cost of funds for private banks and that a higher score on the Social (S) component is associated with higher credit risk for PSBs. We also find evidence of ‘green washing’. These initial findings support an environment with more robust and standardized ESG reporting guidelines, regulatory integration of ESG criteria and enhanced stakeholder education and awareness. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2552874 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2552874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2552874 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2528438_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hassan Abdikadir Hussein Author-X-Name-First: Hassan Abdikadir Author-X-Name-Last: Hussein Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Title: Exploring the impacts of institutional quality, urbanization, and disaggregate globalization on environmental pollution in Somalia Abstract: Environmental pollution and its implications are widespread issues that require a comprehensive understanding of effective strategies to mitigate emissions. Given the unique challenges faced by Somalia, including social, political, and environmental factors, it is crucial to assess the effects of social and political globalization, urbanization, and institutional quality on greenhouse gas (GHG) emissions. Therefore, this study aims to examine the relationship between these variables and environmental deterioration in Somalia. The study employs the autoregressive distributed lag (ARDL) bound test, the fully modified ordinary least squares (FMOLS) method, and causality tests. The empirical results of the bound test indicated that institutional quality and socialglobalization enhance environmental quality by reducing environmental pollution in Somalia in the long run. On the contrary, economic growth impedes environmental quality in Somalia in the long run. However, political globalization and urbanization are inconsequential in the long run. To obtain reliable results, we conduct a robust analysis using the fully modified ordinary least squares (FMOLS) method. And the results of the study are robust for the various methods used. Based on the empirical evidence, the study offers several policy implications.This study aims to examine the impact of disaggregate globalization, institutional quality, and urbanization on environmental deterioration in Somalia. The study utilizes the autoregressive distributed lag (ARDL) bound test, fully modified ordinary least squares (FMOLS) method, and causality tests. The empirical results of the bound test indicate that institutional quality and social globalization improve environmental quality by reducing environmental pollution in Somalia in the long run. On the contrary, economic growth impedes environmental quality in Somalia in the long run. However, the remaining explanatory variables are inconsequential in the long run. Based on the empirical evidence, the study offers several policy implications. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2528438 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2528438 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2528438 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2445147_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Suzan Dsouza Author-X-Name-First: Suzan Author-X-Name-Last: Dsouza Author-Name: Krishnamoorthy K. Author-X-Name-First: Krishnamoorthy Author-X-Name-Last: K. Author-Name: Umar Kayani Author-X-Name-First: Umar Author-X-Name-Last: Kayani Author-Name: Farrukh Nawaz Author-X-Name-First: Farrukh Author-X-Name-Last: Nawaz Author-Name: Fakhrul Hasan Author-X-Name-First: Fakhrul Author-X-Name-Last: Hasan Title: Sustainable investing: ESG effectiveness and market value in OECD regions Abstract: This research investigates the impact of Environmental, Social, and Governance (ESG) outcomes on the market valuation of companies in OECD nations, emphasizing the growing importance of sustainability in developed economies. Motivated by gaps in the existing literature, the study hypothesizes that ESG practices positively influence market valuation, mediated by financial performance indicators such as profitability and operational capability. Using a fixed effect model and a dataset of 1758 firms spanning 2011–2022, the analysis assesses both the direct and indirect effects of ESG performance on market valuation. The findings reveal that improved ESG performance significantly enhances market valuation and positively impacts profitability and operational capability. However, the mediating roles of these financial metrics indicate a nuanced relationship, with partial mediation effects observed. The study concludes that robust ESG strategies not only enhance market value but also contribute to operational effectiveness, offering actionable insights for policymakers, business leaders, and investors. These results underscore the critical role of ESG initiatives in fostering sustainable development and economic growth within OECD countries.This study reveals that improved ESG performance significantly enhances market valuation and positively impacts profitability and operational capability in the OECD nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2445147 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2445147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2445147 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2563165_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mukhtar Ibei Omar Author-X-Name-First: Mukhtar Ibei Author-X-Name-Last: Omar Author-Name: Abdul Rashid Omar Mumin Author-X-Name-First: Abdul Rashid Author-X-Name-Last: Omar Mumin Author-Name: Abdi Majid Yusuf Ibey Author-X-Name-First: Abdi Majid Yusuf Author-X-Name-Last: Ibey Title: The impact of gender inequality on economic growth in Somalia: an analysis of health, political representation and labor force participation Abstract: Gender inequality remains a major obstacle to inclusive and sustainable growth in fragile, conflict-affected contexts like Somalia. This study investigates how gender gaps in labor force participation, longevity, and political representation relate to Somalia’s economic growth over 1991–2023. To capture the broader socio-political context, internal conflict and institutional quality are also included in the analysis. Using an Autoregressive Distributed Lag (ARDL), we estimate short-run and long-run relationships between these dimensions and economic growth. The results show that greater parity in life expectancy and higher women’s political representation are positively associated with economic growth in both the short and long run. Labor force parity also exhibits a positive long-run association, though its short-run effect is not statistically significant. Internal conflict is negatively related to economic performance, whereas institutional quality is not significant in the baseline specification. Policy implications include investing in women’s health, expanding women’s political participation, reducing barriers to female employment, and strengthening conflict-resolution efforts. While limited by reliance on secondary data and the omission of other gender indicators such as education and income gaps, the study provides Somalia-specific evidence that advancing gender equality supports economic development and offers actionable guidance for a fragile, reforming economy.This study examines how gender disparities in health, political representation, and labor force participation relate to economic performance in Somalia using national time-series data (1991–2023) and ARDL-based inference with robustness checks. We find that improvements in women’s labor participation and life expectancy parity are associated with higher GDP per capita in the long run, while greater political representation aligns with stronger growth dynamics, even after accounting for institutional quality and conflict. By providing macro-level, Somalia-specific evidence, the paper moves beyond cross-country generalizations and offers actionable guidance for a fragile, reforming economy. The results suggest that gender-equal human capital and decision-making are not solely social priorities but core growth considerations. Policy implications include investing in girls’ and women’s health, easing barriers to female employment, and expanding women’s representation in governance, alongside institutional reforms an integrated approach likely to yield durable development gains. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2563165 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2563165 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2563165 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2477934_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Farrell Lisa Author-X-Name-First: Farrell Author-X-Name-Last: Lisa Title: Editorial Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2477934 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2477934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2477934 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524575_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Deodat E. Adenutsi Author-X-Name-First: Deodat E. Author-X-Name-Last: Adenutsi Author-Name: Christian R.K. Ahortor Author-X-Name-First: Christian R.K. Author-X-Name-Last: Ahortor Author-Name: Johnson W. Ahiadorme Author-X-Name-First: Johnson W. Author-X-Name-Last: Ahiadorme Title: Macroeconomic dynamics and the long-run equilibrium analysis of the 4Is in import-dependent countries: how is the past different from the present? Abstract: This paper investigates the macroeconomic interplay of income, inflation, investment, and import-dependence (the 4Is) in import-dependent countries, comparing trends from 1966–1999 to 2000–2022. Using Panel Autoregressive Distributed Lag (ARDL) analytical framework, it identifies empirical relationships among the 4Is over two periods: pre-Millennium era (1966–1999) and the Millennium era (2000–2022). It reveals a nuanced interaction where import dependency detrimentally affects investment alongside neutral income growth and inflation effects, especially in the Millennium era. Results suggest monetary policy and supply-side reforms could enhance economic stability and growth, calling for reduced import reliance, controlled inflation, and incentivised domestic production to bolster long-term economic prosperity in these countries. It emphasises the post-2000 shift towards more stable macroeconomic environments and decreased import dependence, reflecting global economic changes and policy shifts towards inflation targeting. Policy recommendations focus on managing inflation, boosting domestic production, and fostering investment to mitigate the negative impacts of import dependence and support sustainable economic growth. The study contributes empirical evidence highlighting the vulnerability of such economies to imported inflation and the consequences of heavy import reliance, such as diminished production and lower income.This study provides groundbreaking insights into the macroeconomic interdependence of income, inflation, investment, and import dependence (the “4Is”) within the structural realities of import-dependent economies. Spanning a comprehensive temporal scope from 1966 to 2022 and applying a dynamic Panel ARDL framework, the research presents a rigorous comparative analysis of macroeconomic behaviour across pre- and post-Millennium eras. The findings uncover pivotal shifts in the long-run equilibrium relationships among the 4Is, highlighting how globalisation, monetary regime shifts, and evolving fiscal architectures have redefined growth constraints and opportunities in developing economies. By disentangling the nuanced trajectories of the 4Is over time, the paper reveals that while investment consistently drives income growth and increasingly mitigates inflation, import dependence has become a long-run impediment to capital accumulation in contemporary periods. The evidence that monetary expansion, once benign, now exerts differential effects across inflation, income, and investment underscores the changing efficacy of policy tools in modern macroeconomic governance. These findings are not only empirically robust but theoretically innovative, as they synthesize elements of monetarism and supply-side dynamics into a novel intertemporal macro-framework tailored for small, open, and structurally import-reliant economies. This work advances the frontiers of macroeconomic policy scholarship by offering fresh diagnostic tools and empirically informed policy levers. It equips policymakers, development economists, and multilateral institutions with actionable intelligence for redesigning sustainable economic strategies, emphasizing inflation-targeting, domestic investment stimulation, and strategic trade reorientation. By bridging past patterns with present imperatives, the study contributes enduringly to the global discourse on economic resilience, development finance, and the quest for structural transformation in the Global South. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524575 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524575 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2467882_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Amol S. Dhaigude Author-X-Name-First: Amol S. Author-X-Name-Last: Dhaigude Author-Name: Anshul Verma Author-X-Name-First: Anshul Author-X-Name-Last: Verma Author-Name: Gurudutt Nayak Author-X-Name-First: Gurudutt Author-X-Name-Last: Nayak Title: Sustainable production and consumption: a bibliometric analysis of SDG-12 literature through a financial management lens Abstract: Sustainable production and consumption, as defined by the UN sustainable development goal-12 (SDG-12), are crucial, and analyzing SDG-12 from a financial management perspective is important to reveal the complexity of this field of study and opportunities. We address this gap by exploring the Scopus database and conducting a comprehensive bibliometric analysis of SDG-12 through a financial management perspective. Based on a rigorous search protocol, we collated 11,510 high-quality articles and analyzed them using VOSviewer and Biblioshiny software packages. The initial findings yielded the most influential articles, authors and institutions involved in the convergence of SDG-12 and financial management literature. We identified six primary clusters: (1) corporate social responsibility (CSR), environmental, social, and governance and governance impact on financial and environmental outcomes; (2) sustainable supply chain management; (3) circular economy and technological innovation; (4) sustainable tourism and hospitality; (5) green innovation and corporate environmental performance; and (6) strategic integration of sustainability in corporate management and operations. This study traced the scientific evolution of the convergence of SDG-12 and financial management literature and identified critical directions for future research. It provides positive and actionable implications for both scholars and practitioners to navigate the convolution of SDG-12 vis-à-vis financial management.SDG-12 is crucial because it promotes responsible production and consumption, which directly impacts resource efficiency and environmental sustainability. Studying SDG-12 through a financial management lens is vital, as financial strategies—like sustainable investments and cost analyses—drive corporate decision-making, ensuring that sustainability efforts are economically viable and scalable for long-term success. The impact of this study lies in its unique approach of analyzing SDG-12—through a financial management lens. Conducting a comprehensive bibliometric analysis of over 11,000 articles provides valuable insights into how financial strategies like sustainable investments, cost-benefit analysis, and financial reporting contribute to corporate sustainability. The findings offer actionable frameworks for integrating financial decision-making with sustainability goals, helping organizations enhance their environmental responsibility while maintaining economic viability. This study bridges the gap between financial management and sustainability, offering critical direction for future research and practical applications in corporate strategy and policy-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2467882 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2467882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2467882 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2598925_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yentéma Namountougou Author-X-Name-First: Yentéma Author-X-Name-Last: Namountougou Author-Name: Youmanli Ouoba Author-X-Name-First: Youmanli Author-X-Name-Last: Ouoba Title: Does access to natural resources explain official development assistance in West African countries? Abstract: In West Africa, the distribution of official development assistance is no longer based solely on humanitarian or governance criteria, but also on the geostrategic value of natural resources. These resources sometimes attract the interest of powers wishing to secure access to them through aid, while at other times they make resource-rich recipient countries less eligible, as they are perceived to be self-sufficient. The aim of this research is to analyze the effect of natural resource exploitation on official development assistance received by 13 West African countries over the period 1985–2020. Several estimation methods are used including: Two-stage Least Squares or Instrumental Variable Least Squares, Driscoll-Kraay Regression with Standard Errors, Kinky Least Squares and Instrumental Variables with two high-dimensional fixed effects that take into account donor heterogeneity. The results show that the exploitation of natural resources, particularly forestry, mining and oil, has a positive influence on the Official Development Assistance received by West African countries. More specifically, the exploitation of these resources attracts more bilateral ODA, while multilateral ODA is mainly influenced by the exploitation of forestry and mining resources. These results provide decision-makers with a strategic opportunity to use natural resources as negotiating leverage to mobilize aid for infrastructure and energy projects that are essential to the local transformation of natural resources. These results are also fully in line with the Sustainable Development Goals, underlining the role of natural resources as a lever for financing inclusive growth projects and better environmental governance.This research highlights the structural influence of natural resource exploitation on Official Development Assistance (ODA) flows in West Africa. Drawing on data covering more than three decades, this research shows that forestry, mining, and oil exploitation have a positive and significant effect on ODA, particularly from bilateral donors. It also reveals that multilateral ODA remains more sensitive to forest and mining resources, reflecting selectivity based on specific economic and environmental considerations. These findings make a major contribution to understanding the relationship between natural wealth and development aid policies in West Africa. They shed light on the motivations of development partners while questioning national resource development strategies. By revealing how the very structure of extractive economies shapes access to international aid, this research provides essential elements for rethinking public policies, guiding natural resource governance, and optimising the levers for financing sustainable development in West Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2598925 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2598925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2598925 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2564210_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Xiong Zheng Author-X-Name-First: Xiong Author-X-Name-Last: Zheng Author-Name: Adrian Daud Author-X-Name-First: Adrian Author-X-Name-Last: Daud Author-Name: Shairil Izwan Taasim Author-X-Name-First: Shairil Izwan Author-X-Name-Last: Taasim Author-Name: Anita Rosli Author-X-Name-First: Anita Author-X-Name-Last: Rosli Title: State transition and volatility in China’s beef market: an MS-VAR analysis Abstract: Beef prices in China have experienced increased volatility in recent years, yet existing research has failed to distinguish the state dependence of price fluctuations. This study constructs a two-state Markov switching vector autoregression (MS-VAR) model based on beef price return data from eastern, central, and western China from 2010 to 2024. The results identify two price regimes: normal (low volatility) and abnormal (high volatility). Under normal conditions, market volatility is small, with regional prices primarily driven by internal factors; under abnormal conditions, prices fluctuate dramatically, with significantly enhanced regional linkage effects. Model comparisons show that the MS-VAR model outperforms linear VAR and threshold VAR (TVAR) models in both fitting and forecasting performance. This study expands theoretical understanding of the state dependence of price behavior in agricultural economics and provides policy implications for establishing early warning mechanisms for beef market price fluctuations and cross-regional linkage regulation.The study explains the state dependency of price fluctuations in China's beef market and the importance of monitoring price fluctuations for prize stabilization measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2564210 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2564210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2564210 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2511883_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Rupali Kumari Author-X-Name-First: Rupali Author-X-Name-Last: Kumari Author-Name: Mugdha Kulkarni Author-X-Name-First: Mugdha Author-X-Name-Last: Kulkarni Title: Enhancing financial citizenship through financial technology: a systematic literature review Abstract: This study seeks to integrate the most recent research surrounding financial citizenship and financial technology (FinTech) to highlight their role within contemporary financial systems in promoting economic equity and transforming financial services in practice. Data were systematically collected from the databases- Scopus and Web of Science using the PRISMA method. A bibliometric analysis was performed using Biblioshiny on the open-access documents. The review concluded that financial citizenship, which consists of financial inclusion, literacy, financial protection and financial trust, is the key to advancing economic equality and democratic participation. This study contributes to both the financial citizenship and financial technology bodies of knowledge by conducting a comprehensive review of the current literature, linking the two areas of research that are usually seen separately. The study brings a unique perspective in understanding the implications of technology concerning financial inclusion and stability and identifies important aspects that call for future research.This research adopts a systematic review approach to explore the dynamic relationship between financial technology (FinTech) and financial citizenship, and illustrate how digital innovations deliver new avenues for access, inclusion, and empowerment in the financial services setting. The paper integrates the interdisciplinary literature and around a conceptual analysis of FinTech and financial citizenship, while identify inclusive, ethical, and user-centric FinTech solutions that uphold financial rights and responsibilities. Findings provide relevant insights for policymakers, developers, and scholars interested in harnessing FinTech to provide equitable financial participation, particularly for underserved communities. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2511883 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2511883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2511883 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2535484_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Setyo Tri Wahyudi Author-X-Name-First: Setyo Author-X-Name-Last: Tri Wahyudi Author-Name: Amalia Rahmawati Author-X-Name-First: Amalia Author-X-Name-Last: Rahmawati Title: Examining the link between world oil price volatility and sectoral stock performance in Indonesia Abstract: This study examines how world oil price volatility and exchange rate fluctuations affect sectoral stock indices in Indonesia, an oil-importing emerging market. Using daily data from 2012 to 2024 and the Threshold Generalized Autoregressive Conditional Heteroscedasticity (T-GARCH) model within the framework of the Efficient Market Hypothesis (EMH), the study analyzes the impact of these global factors on 11 sectoral stock indices. The findings indicate that sectors closely tied to oil prices, such as energy (IDXENERGY) and property (IDXPROPERTY), benefit from rising oil prices, whereas sectors like health (IDXHEALTH) are adversely affected. This suggests that oil price volatility spills over to various sectors, necessitating the consideration of such risks in investment and policy decisions. In the long term, the results show that Indonesia’s oil price volatility is not influenced by global oil price volatility. Meanwhile, in the short term, oil price volatility significantly influences most sectors. Currency depreciation negatively affects import-reliant sectors. . Moreover, sectoral returns respond asymmetrically to oil price shocks, with negative shocks increasing volatility more than positive ones. These findings contribute to the literature by offering sector-spesific insights on how global macroeconomic variables affect emerging markets. . Overall, world oil prices fluctuations represent a market risk for the Indonesia’s stock market, consistent with EMH-based theory. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2535484 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2535484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2535484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2537185_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Steven Lee Mwaseba Author-X-Name-First: Steven Lee Author-X-Name-Last: Mwaseba Author-Name: Emmanuel Simon Mwang’onda Author-X-Name-First: Emmanuel Simon Author-X-Name-Last: Mwang’onda Author-Name: David Ngwilizi Author-X-Name-First: David Author-X-Name-Last: Ngwilizi Title: Decomposing rural-urban inequalities in financial inclusion in Tanzania Abstract: Financial inclusion is a cornerstone for both individual welfare and national economic prosperity; however, persistent rural-urban inequalities in Tanzania continue to limit equitable access to and utilisation of financial services and products. Employing 2021 Global Findex data, this study applies the Recentered Influence Function (RIF)-Oaxaca decomposition analysis, supported by Erreygers concentration index to examine the factors associated with these inequalities. The results show financial inclusion is predominantly concentrated among wealthier individuals, which also leaves rural communities at a disadvantage. The significant factors associated with rural-urban inequalities in financial inclusion in Tanzania are financial literacy, mobile phone ownership, individual income and internet access, while being in the workplace plays a comparatively weaker role. The findings align with the global and national agenda of empowering underprivileged groups, particularly rural areas, and enhancing financial inclusion for all. These findings suggest that policy interventions should prioritise rural-targeted financial literacy programmes, expansion of digital infrastructure and inclusive product design to ensure equitable financial inclusion.This study provides novel empirical evidence on socioeconomic drivers of rural-urban disparities in financial inclusion in Tanzania. By employing advanced decomposition techniques, the research identifies key barriers such as limited digital access, financial literacy and income inequality that disproportionately affect rural populations. The findings offer actionable insights for policymakers and development practitioners to design inclusive financial strategies, supporting national goals for equitable economic participation and poverty reduction. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2537185 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2537185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2537185 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2450035_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jingjing Yang Author-X-Name-First: Jingjing Author-X-Name-Last: Yang Author-Name: Kwisik Min Author-X-Name-First: Kwisik Author-X-Name-Last: Min Title: Transforming ASEAN’s future: how clean energy and innovation can shape environmental progress Abstract: This study explores the links between environmental innovation, growth, quality, and renewable energy (RE) in ASEAN economies. It uses sophisticated econometric methods including Panel unit root tests, Westerlund cointegration, Augmented Mean Group and Common Correlated Effects Mean Group estimation, and Dumitrescu-Hurlin causality tests to understand the short run & long-term dynamics of these relationships. The study attempts to evaluate how economic growth and financial development affect environmental quality (EQ) as well as how innovation and RE can help to slow down environmental deterioration. While RE significantly reduces emissions of carbon dioxide (CO2) and nitrous oxide (N2O), the results show that environmental innovations like patents have a delayed but beneficial long-term influence on reducing emissions. Financial development also helps to reduce emissions over the long run despite economic growth and the burning of fossil fuels increasing emissions. The Dumitrescu-Hurlin causality test shows that these factors reinforce each other, requiring coordinated policy actions. The report suggests ASEAN nations prioritize RE and environmental innovation for long-term emission reductions. For sustainable development, financial markets must be expanded to accommodate green financing programs such as green bonds. Decoupling economic growth from the use of fossil fuels is also necessary to ensure a sustainable future.This study provides valuable insights into the interplay between environmental innovation, economic growth, environmental quality, and renewable energy in ASEAN economies. Employing advanced econometric techniques reveals the critical role of renewable energy in reducing emissions and highlights the delayed but significant long-term effects of environmental innovations like patents. The research underscores the importance of financial development in emission reduction and calls for coordinated policy actions to align these factors. The findings emphasize the need for ASEAN nations to prioritize RE and environmental innovation, expand financial markets for green financing, and decouple economic growth from fossil fuel dependency for sustainable development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2450035 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2450035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2450035 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448219_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Olebogeng Petlele Author-X-Name-First: Olebogeng Author-X-Name-Last: Petlele Author-Name: Eugene Msizi Buthelezi Author-X-Name-First: Eugene Msizi Author-X-Name-Last: Buthelezi Title: Shocks of government bonds and yield impact economic growth in South Africa Abstract: This study investigates the dynamic relationship between government bonds, bond yields, and economic growth in South Africa, utilizing Structural Vector Autoregression (SVAR) analysis on time series data from 1986 to 2024. Despite the extensive literature on government bonds and economic growth, a significant gap remains in understanding the differential impacts of bond maturities and yield shocks on GDP growth, particularly in the context of emerging markets like South Africa. The findings reveal that shocks to short-term government bonds initially lead to a decline in GDP growth due to crowding out effects, while shocks to mid-term government bonds produce a ‘W-shaped’ effect on growth. Additionally, shocks to short-term bond yields result in a sharp decline in GDP, whereas long-term bond yield shocks lead to an initial decline followed by a subsequent increase in growth. These results emphasize the importance of considering bond maturity and yield differences when assessing their economic impact. Policymakers are advised to maintain stable and predictable monetary and fiscal policies to minimize uncertainty in interest rate movements and borrowing costs. This study addresses the existing research gap by providing a nuanced understanding of the interactions between bond market dynamics and economic growth in South Africa.The study’s primary contribution lies in its nuanced analysis of the differential impacts of government bond maturities and yield shocks on economic growth in an emerging market context. Unlike existing literature, it identifies distinct growth responses, such as the ‘W-shaped’ effect of mid-term bond shocks and the divergent impacts of short- and long-term yield shocks. Offering a more granular understanding of bond market dynamics. Significant Impact The findings hold significant implications for policymakers by emphasizing the need to consider bond maturity structures and yield variations when crafting fiscal and monetary policies. The study advocates for stable policy frameworks to minimize borrowing costs and interest rate uncertainties, providing practical guidance for promoting economic stability and growth. Moreover, it fills a critical research gap by exploring these dynamics in South Africa, contributing to the global discourse on bond markets and growth in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448219 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448219 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448219 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460070_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Title: Unconventional monetary policy and the (Neo)Fisher effect: has the federal reserve misunderstood monetary policy? Abstract: The failure of the Federal Reserve Bank to control inflation within its target range has raised concerns about potential misunderstandings in US monetary policy dynamics. The debate revolves around the Fisher effect, a traditional theory, and the NeoFisher effect, a recently proposed alternative theory, in relation to their applicability in the United States. Using wavelet tools and a monthly dataset from 2007:01 to 2023:04, we analyze the Fisher and NeoFisher effects in time-frequency space. Our findings indicate that policy choices significantly influence the behavior of individual time series, with unconventional monetary policy leading to greater variability and traditional policy resulting in weaker variability. Moreover, before the 2013–2014 taper tantrum, significant Fisher (NeoFisher) effects were observed at higher (lower) frequency synchronizations. However, afterward, NeoFisher effects dominate at both lower and higher frequency co-movements. Our results, which are consistent across different measures of nominal interest rates and inflation, bridge the gap between the NeoFisherian theory and empirical evidence, have ramifications for the Federal Reserve Bank’s credibility among economic agents and for Central Banks emulating US monetary policy.The Federal Reserve's approach to inflation control, influenced by traditional Fisher effects, has faced challenges since the global financial crisis, switching between undershooting and overshooting its 2% target. Emerging NeoFisherian insights suggest a paradigm shift: rather than the Fed controlling inflation through interest rate adjustments, inflation responds positively to these changes. Our study, employing advanced wavelet analysis, identifies structural breaks in monetary policy dynamics, revealing stronger variability under unconventional policies and persistent NeoFisher effects post-crisis. This raises critical questions about the efficacy of conventional monetary practices moving forward.Continuing with interest rate hikes to combat inflation risks perpetuating higher inflation rates, potentially eroding the Fed's credibility and fostering global economic instability. As the US influences global monetary norms, missteps could reverberate through international markets, impacting developing economies reliant on stable financial inflows. The implications are clear: embracing an enhanced understanding of monetary dynamics is crucial for sustainable economic management, emphasizing the need for policy frameworks that adapt to complex global realities rather than relying solely on traditional models. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460070 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460070 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460070 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2492200_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Reza Pahlevi Chairul Author-X-Name-First: Reza Pahlevi Author-X-Name-Last: Chairul Author-Name: Telisa Aulia Falianty Author-X-Name-First: Telisa Aulia Author-X-Name-Last: Falianty Author-Name: Ninasapti Triaswati Author-X-Name-First: Ninasapti Author-X-Name-Last: Triaswati Author-Name: Mohamad Dian Revindo Author-X-Name-First: Mohamad Dian Author-X-Name-Last: Revindo Title: Resource curse or blessing? The role of economic complexity in low- and middle-income countries’ industrialization Abstract: The intricate link between natural resources, economic complexity, and industrialization remains a critical yet underexplored issue in economic development. While previous research has examined the effects of resource endowments and economic complexity on economic growth, less attention has been given to their impact on industrialization. Moreover, existing studies have largely focused on specific regions rather than offering a broader perspective on low- and middle-income countries (LMICs). Additionally, most analyses also consider resource endowments and economic complexity separately, overlooking their interaction. Addressing these gaps, this study explores how natural resource endowments, economic complexity, and their interaction influence industrialization across 56 LMICs from 2004 to 2021. Using both static panels with a random effects model and dynamic panel via the generalized method of moments, we find that natural resource abundance negatively impacts industrialization, while economic complexity has a positive effect. Notably, the positive interaction between natural resources and economic complexity suggests that economic complexity may mitigate the adverse effects of resource endowment, offering new insights into strategies for overcoming the resource curse into blessing by enhancing industrial growth. The findings underscore the importance of developing policies that promote economic complexity as a key mechanism for fostering industrial development in LMICs.The relationship between natural resources, economic complexity, and industrialization in 56 low and middle-income countries (LMICs) is crucial but remains underexplored. This research offers critical insights into how natural resource dependence interacts with economic complexity to influence industrialization in LMICs. It demonstrates that economic complexity can significantly mitigate the negative impacts of resource abundance, commonly known as the resource curse. The finding provides valuable guidance for policymakers seeking to leverage resource wealth more effectively by promoting productive diversification and technological sophistication. The results further support the formulation of targeted economic policies designed to foster structural transformation, decrease reliance on natural resources, and enhance industrial performance. This study contributes to sustainable economic development strategies in resource-rich economies by deepening theoretical understanding and informing practical policy-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2492200 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2492200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2492200 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568968_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ikgalaletse Keatlegile Neo Sebola Author-X-Name-First: Ikgalaletse Keatlegile Neo Author-X-Name-Last: Sebola Author-Name: Marc Mukendi Mpanda Author-X-Name-First: Marc Mukendi Author-X-Name-Last: Mpanda Title: Cross-market connectedness of returns and volatility in South African and BRICS+ financial markets Abstract: This study investigates the interconnectedness of South African financial markets and their linkages with BRICS+ economies, focusing on the dynamic transmission of overnight returns, intraday returns, and volatility. Employing the Time-Varying Parameter Vector Autoregression (TVP-VAR) model within the Diebold-Yilmaz framework, we examine spillover effects across major Johannesburg Stock Exchange (JSE) indices and selected BRICS+ markets. The results reveal a consistently high level of connectedness across all three dimensions, with total connectedness indices (TCI) of 64.99% for overnight returns, 63.45% for intraday returns, and 63.05% for volatility. The JSE All Share Index (J203) emerges as the dominant net transmitter of spillovers, while the Resources Index (J258) acts as the primary net receiver. These findings indicate that shocks, whether return or volatility based, are rapidly transmitted across South African sectors, leaving limited room for domestic diversification. By contrast, BRICS+ markets exhibit significantly lower levels of interconnectedness, with TCIs typically ranging between 20 and 40% outside of global crises. Episodes, such as the COVID-19 pandemic and the Russia-Ukraine conflict temporarily intensified connectedness, but these effects were short-lived. From a South African perspective, J203 plays only a modest role within the BRICS+ network, acting mainly as a net transmitter of returns but alternating between receiver and transmitter in volatility spillovers.The results highlight limited domestic diversification and the potential for cross-border risk reduction during stable periods, offering valuable insights for investors and policymakers managing systemic risk and portfolio resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568968 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568968 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2560594_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kazeem Abimbola Sanusi Author-X-Name-First: Kazeem Abimbola Author-X-Name-Last: Sanusi Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Title: Determinants of savings in South Africa: a Bayesian linear regression approach Abstract: South Africa has one of the lowest household savings rates among developing nations, posing a significant challenge to economic growth. Savings are crucial for capital formation, a necessary foundation for sustained economic development. This study aims to examine the determinants of savings in the South African economy using a Bayesian linear regression (BLR) model. The analysis employs quarterly data spanning from 1960(Q1) to 2023(Q1) on key variables, including savings, gross domestic product (GDP), consumption expenditure, inflation rate, gross fixed capital formation (a proxy for total investment), credit allocated to the private sector and net exports. The Markov Chain Monte Carlo (MCMC) method is used to estimate model parameters. The findings reveal that gross fixed capital formation, net exports, credit allocated to the private sector and GDP are significant positive predictors of savings. Conversely, inflation and consumer spending negatively impact savings. These results are corroborated by the fully modified ordinary least squares (FMOLS) method, which similarly identifies GDP, investment, credit to the private sector and net exports as crucial positive drivers of savings in South Africa. This study highlights the multifaceted nature of savings behavior in South Africa. The findings suggest that effective policy measures to encourage savings may include expanding financial markets, ensuring macroeconomic stability, regulating consumer spending and managing external influences. The research contributes to the discourse on savings determinants in the South African context, demonstrating the utility of the BLR approach for understanding these dynamics.This study provides new insights into the macroeconomic drivers of savings in South Africa by applying a Bayesian Linear Regression framework, which allows for robust inference under uncertainty and multicollinearity. The findings highlight GDP growth, investment, private sector credit, and net exports as key positive influences, while inflation and consumption act as constraints on national savings. By combining Bayesian methods with FMOLS robustness checks, the study delivers credible evidence for policy design. These results offer timely guidance for South Africa’s National Development Plan by emphasizing macroeconomic stability, financial inclusion, and investment- and export-led growth as critical levers for strengthening domestic savings and long-term development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2560594 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2560594 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2560594 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448220_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Chadi Azmeh Author-X-Name-First: Chadi Author-X-Name-Last: Azmeh Author-Name: Marwan Al-Raeei Author-X-Name-First: Marwan Author-X-Name-Last: Al-Raeei Title: Financial development, research in finance, and economic growth Abstract: This innovative study investigates the interplay between financial development, research output in finance, and economic growth across 15 MENA nations from 2000 to 2017. Utilizing the two-step system GMS method and the Runge-Kutta framework, the research defines and addresses a differential equation, achieving remarkable precision in economic modeling by fine-tuning step sizes and adapting the algorithm to the specific economic context. Key findings indicate that both the quantity and quality of research output in finance are crucial drivers of financial innovation, which fuels economic growth. The results reveal a significant positive influence of research output in finance on economic progress, highlighting the need to cultivate a research-centric environment for sustainable development. Furthermore, the study emphasizes the mutually beneficial relationship between financial development and research output in finance, demonstrating their collaborative effects on economic growth. Additionally, it uncovers a dynamic between financial stability and research quality, suggesting that while high-quality research may initially challenge stability, it ultimately supports enduring financial stability and economic growth. These insights underscore the necessity of investing in high-quality finance research and fostering collaboration among academia, industry professionals, and policymakers to spur financial innovation and drive economic success.This study reveals the complementarity between financial development and research output in finance in their impact on economic growth across 15 MENA countries. Policymakers are therefore encouraged to invest in high-quality finance research and foster collaboration between academia and industry to enhance financial systems and drive sustainable economic progress. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448220 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448220 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2570790_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Wendeyida Kiendrebeogo Author-X-Name-First: Wendeyida Author-X-Name-Last: Kiendrebeogo Author-Name: Pam Zahonogo Author-X-Name-First: Pam Author-X-Name-Last: Zahonogo Author-Name: Windinkonté Séogo Author-X-Name-First: Windinkonté Author-X-Name-Last: Séogo Title: Relationship between financial transfers and multidimensional poverty during the Covid-19 pandemic in Burkina Faso Abstract: Financial transfers received by households during the pandemic crisis are perceived as altruistic behavior within the population. The aim of this article is to analyze the relationship between financial transfers and multidimensional poverty during the Covid-19 pandemic in Burkina Faso. The multidimensional poverty index (MPI) was constructed following Alkire and Foster. A linear regression model was used to analyze data collected on 423 households which have been selected in the two main cities impacted by the pandemic. The results show on the one hand that family financial transfers reduce multidimensional poverty deprivation scores. Government financial transfers, on the other hand, have no significant effect on multidimensional poverty deprivation scores. The results suggest that decision makers should step up social transfer policies for poor households during crises such as Covid-19. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2570790 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2570790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2570790 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2499019_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Richard Wamalwa Wanzala Author-X-Name-First: Richard Wamalwa Author-X-Name-Last: Wanzala Author-Name: Lawrence Ogechukwu Obokoh Author-X-Name-First: Lawrence Ogechukwu Author-X-Name-Last: Obokoh Title: Global competitiveness of Kenyan coffee: the price volatility perspective Abstract: Kenyan coffee is globally recognized for its high quality and distinct flavor, securing a strong reputation in international markets. However, it faces growing competition from major producers such as Brazil, Colombia, Vietnam, Cuba, and Ethiopia. This study evaluates Kenya’s competitiveness in the global coffee industry by examining price dynamics and volatility from 1990 to 2022 across 21 coffee-producing countries. Data were sourced from the International Coffee Organization, World Bank, and FAOSTAT. The analysis employed price analysis, hedonic regression, and volatility models (GARCH, TARCH, and EGARCH). Results show Kenya ranks sixth among Arabica coffee producers in terms of production. Hedonic regression reveals that coffee prices are significantly influenced by macroeconomic and supply-side factors. Volatility models confirm the presence of volatility clustering, where high-price volatility persists over time, but show no significant asymmetry—indicating that both positive and negative shocks impact prices similarly. These findings highlight the need for market stabilization strategies, including hedging tools, improved market access, and stable exchange rates, to protect producers from adverse price movements. The study provides vital policy insights for enhancing Kenya’s resilience and long-term competitiveness in the global coffee value chain.This study provides a critical assessment of Kenya’s global coffee competitiveness through the lens of price volatility, offering empirical insights based on advanced econometric modeling across 21 major coffee-producing countries. By identifying key macroeconomic and supply-side factors influencing price movements, and highlighting the persistence of volatility in Kenyan coffee prices, the research underscores the vulnerability of producers to market shocks. The findings inform the urgent need for targeted policy interventions—such as hedging mechanisms, enhanced market access, and exchange rate stabilization—to safeguard income stability and enhance Kenya’s position in the global coffee value chain. This work contributes valuable evidence to guide policymakers, exporters, and stakeholders in improving resilience and long-term competitiveness in one of Kenya’s most vital agricultural sectors. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2499019 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2499019 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2499019 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2484652_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Donald Amuah Author-X-Name-First: Donald Author-X-Name-Last: Amuah Author-Name: Chibuzo Amadi Author-X-Name-First: Chibuzo Author-X-Name-Last: Amadi Author-Name: Inalegwu Ode-Ichakpa Author-X-Name-First: Inalegwu Author-X-Name-Last: Ode-Ichakpa Author-Name: Afam Ituma Author-X-Name-First: Afam Author-X-Name-Last: Ituma Author-Name: Cynthia Nzubechukwu Okolie Author-X-Name-First: Cynthia Nzubechukwu Author-X-Name-Last: Okolie Title: Assessing the impact of regulatory reforms on the market value of retail banks in the United Kingdom (UK), an event study methodology Abstract: This study examines the impact of two significant regulatory reforms, the Banking Reform Act (2013) and the Financial Services and Markets Act (2023), on the market value of the four largest retail banks in the UK. The research employs an event study methodology, a well-established approach in financial economics, to analyse the stock market reactions to key legislative events associated with the enactment of both acts. The study focuses on three critical stages in the legislative process: the third reading in the House of Commons, the third reading in the House of Lords and the Royal Assent. Daily stock price data from 2000 to 2023 is used to calculate abnormal returns, which are then analysed for statistical significance using the Wilcoxon signed-rank test. The findings reveal that the Banking Reform Act 2013, while not significantly impacting individual bank returns, had a collective negative effect on the stock prices of the four banks. This suggests that the market perceived the reforms as potentially reducing bank profitability due to increased regulatory burdens and structural changes. Conversely, the Financial Services and Markets Act 2023, enacted a decade later, showed a positive and significant effect on the collective stock returns of the banks.This research stresses the critical need for phased implementation of regulatory reforms, enabling policymakers to meticulously monitor market responses and make necessary adjustments. Furthermore, it stresses the importance of proactive compliance strategies for banks and other financial institutions, including comprehensive regulatory impact assessments as well as robust scenario planning, to effectively navigate dynamic regulatory environments. The study promotes a balanced regulatory framework that safeguards financial stability while simultaneously encouraging economic growth and innovation, recognizing the financial industry's central role. Importantly, our findings fill a significant gap in the existing literature by providing quantifiable measures of the market's reaction to these key legislative events. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2484652 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2484652 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2484652 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2526721_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Pushpa Negi Author-X-Name-First: Pushpa Author-X-Name-Last: Negi Author-Name: Silky Vigg Kushwah Author-X-Name-First: Silky Vigg Author-X-Name-Last: Kushwah Author-Name: Anand Jaiswal Author-X-Name-First: Anand Author-X-Name-Last: Jaiswal Author-Name: Ihor Rekunenko Author-X-Name-First: Ihor Author-X-Name-Last: Rekunenko Title: Investor sentiment, market volatility, and ESG Index dynamics: an empirical analysis Abstract: This study integrates both traditional finance theory and behavioral finance to explore the impact of investor sentiment and market volatility on Environmental, Social and Governance (ESG) thematic indices in the Indian market. Using the India Volatility Index to represent market volatility and the Market Mood Index as a measure of investor sentiment, the research examines three ESG indices from the National Stock Exchange: the Nifty 100 ESG Index, the Nifty 100 Enhanced ESG Index and the Nifty 100 ESG Sector Leaders Index. Daily data from April 2018 to May 2024 is analyzed through a quantile causality approach to investigate how these variables interact across different market conditions. Findings reveal that investor sentiment and market volatility deviate ESG stock returns from fundamental values, challenging the Efficient Market Hypothesis. The study underscores behavioral finance’s role in ESG performance, providing insights into resilient investments and sustainable policy stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2526721 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2526721 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2526721 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2519924_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Essowaba Egbeleo Author-X-Name-First: Essowaba Author-X-Name-Last: Egbeleo Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Title: Digital transformation, institutional quality and productivity in Sub-Saharan Africa Abstract: This study investigates the impact of digital transformation, considered as a general-purpose technology, on total factor productivity (TFP) in Sub-Saharan Africa. We also explore how human capital, health systems, institutional quality, and innovation capacity moderate this relationship. This study analyzes panel data from 25 countries over the period 2005-2021, utilizing an identification strategy based on heteroskedasticity within a dynamic panel framework. The findings reveal that digital transformation has not significantly improved total factor productivity. Nevertheless, the results demonstrate that institutional quality, health systems, and innovation capabilities positively influence this relationship, thus amplifying the productivity advantages of digital adoption. The absence of a significant moderating effect of human capital indicates an ongoing skill deficit. These discoveries highlight the importance of a holistic policy approach that integrates digital infrastructure development with improvements in education, healthcare systems, and institutions to fully capitalize on the productivity gains from digital transformation in Sub-Saharan Africa. This study’s outcomes enhance our understanding of how complementary factors influence the connection between technological advancement and productivity growth in developing economies.This study shows that digital transformation in sub-Saharan Africa has yet to yield the anticipated improvements in economic productivity. Contrary to widespread expectations, the findings indicate that digital technologies become significantly beneficial only after a critical threshold of adoption is reached. Moreover, strong institutions, efficient health systems, and robust innovation capacities are essential to fully realize the potential benefits of digital tools. Paradoxically, the widespread lack of technical skills remains a major constraint on the effectiveness of these technologies. To address this, the study recommends that governments implement a comprehensive policy strategy combining investments in digital infrastructure, education reforms, institutional strengthening, and health system development. Such an integrated approach is crucial to converting digital potential into sustainable and inclusive economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2519924 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2519924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2519924 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2514688_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Dakpoulé Da Author-X-Name-First: Dakpoulé Author-X-Name-Last: Da Title: Effects of exogenous shocks on the monetary policy credibility: evidence from the West African Economic and Monetary Union region Abstract: In the last five years, external shocks have been persistent. Although the effect of these shocks on inflation has received attention, their effects on the credibility of monetary policy have been little explored, especially in the context of monetary union. This paper seeks to empirically investigate the effect of selected exogenous shocks on the credibility of monetary policy in the West African Economic and Monetary Union (WAEMU) region from 2006 to 2023. Using the heterogeneous Structural Vector Autoregressive (SVAR) panel model and Mixed-Frequency Vector Autoregressive (MF-VAR), we find that external shocks are associated with a deterioration in the credibility of monetary policy in the short term. However, the effect varies according to the type of climatic shock on the one hand, and commodity prices on the other. Climate shocks have a persistent effect on the credibility of monetary policy compared with commodity price shocks. Our results suggest that monetary authorities should pay attention to external shocks. Given that they have limited control over external shocks, particularly climate shocks, they should contribute to collective action in response to the challenges posed by climate change by setting up or supporting green projects in the countries of the union. The findings highlight the necessity of coordinating monetary and fiscal policy to reduce inflation during these shocks.External climate-related shocks and global commodity prices continue to be persistent. Analysing data from countries in the WAEMU region, we found that negative shocks correlate with a decline in the credibility of monetary policy due to their effects on economic activity and domestic prices. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2514688 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2514688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2514688 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2490820_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sarah Niess Author-X-Name-First: Sarah Author-X-Name-Last: Niess Title: Shifting investors towards social responsibility: a narrative review of effective intervention strategies Abstract: This article provides a comprehensive overview of the most promising behavioral interventions to foster socially responsible investment (SRI) among retail investors. Using the SHIFT framework, five key avenues that underpin sustainable behavior change are elaborated: harnessing social influences, embedding new investment habits, navigating individual influences, as well as feelings and cognitive drivers, and enhancing SRI’s tangible impact. Significant barriers arise from the lack of comparability, reliability and tangibility of SRI information, exacerbated by low levels of SRI and financial literacy. Meanwhile, investors often perceive SRI as underperforming. Promising interventions include simplifying the decision-making context through labelling and defaults, tailoring information to specific motives and capturing the tangible impact of SRI to increase self-efficacy. Priming and framing techniques can be used to create a long-term focus, leverage social and personal norms, and activate self-conscious emotions such as guilt and pride, or align financial with ethical interests. Despite growing academic evidence on the drivers and barriers to SRI, this narrative literature review encourages more research that causally tests intervention strategies aimed at changing investor behavior toward socially responsible investing.This study explores behavioral interventions to accelerate socially responsible investment (SRI) adoption among retail investors, addressing barriers such as low financial literacy, information overload, and skepticism about SRI’s performance and tangible impact. Utilizing the SHIFT framework, the research identifies five pathways for fostering sustainable investment behaviors, including leveraging social influences, enhancing tangibility, and aligning financial with ethical motives. The findings offer actionable strategies for policymakers, educators, and practitioners—such as labeling, defaults, framing, and feedback mechanisms—that simplify decision-making and align financial with ethical motives. This review underscores the untapped potential of behavioral interventions in driving SRI adoption and calls for experimental research to validate these approaches across diverse contexts and investor profiles. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2490820 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2490820 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2490820 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2472585_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Madhukara Nayak Author-X-Name-First: Madhukara Author-X-Name-Last: Nayak Author-Name: Pushparaj M. Nayak Author-X-Name-First: Pushparaj M. Author-X-Name-Last: Nayak Author-Name: Harisha G. Joshi Author-X-Name-First: Harisha G. Author-X-Name-Last: Joshi Title: Determinants influencing the entrepreneurial success of MSMEs in emerging economies: a study of Indian women entrepreneurs Abstract: This study examines the influence of internal and external factors on the success of women entrepreneurs who own and manage Micro, Small, and Medium Enterprises (MSMEs) in India. A structured questionnaire was used to collect data from 700 women entrepreneurs using a simple random sampling technique to achieve the objectives. This research uses quantitative research methods to analyse data using the partial least squares (PLS) structural equation modeling (SEM) method. The study found that the need for achievement, risk-taking, self-confidence, financial, and socio-cultural factors significantly and positively influence the success of women entrepreneurs. Research on the factors influencing the success of women entrepreneurs is crucial for developing nations, particularly India. This study aims to address existing gaps in the literature by identifying new factors that contribute to the success of women entrepreneurship in emerging countries like India. The findings will be of use to policymakers and industry experts in designing appropriate policies and strategies to promote the untapped potential among women entrepreneurs in India.This study provides valuable insights into the key factors influencing the success of women entrepreneurs managing Micro, Small, and Medium Enterprises (MSMEs) in India. By examining both internal and external drivers—such as the need for achievement, risk-taking, self-confidence, financial resources, and socio-cultural factors—this research contributes to a deeper understanding of how these elements collectively shape the entrepreneurial outcomes for women in emerging economies. The findings underscore the importance of targeted support systems, policies, and strategies that empower women entrepreneurs and foster a conducive environment for their growth and success. This research also addresses existing gaps in literature, offering new perspectives on the unique challenges and opportunities faced by women entrepreneurs in India. The results will serve as a critical resource for policymakers, industry experts, and stakeholders looking to leverage the untapped potential of women entrepreneurs in India, thus driving economic growth, promoting gender equality, and enhancing the overall entrepreneurial ecosystem. By highlighting these success factors, the study advocates for a more inclusive and supportive framework for women entrepreneurship, ensuring that they can contribute more effectively to the economic development of India. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2472585 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2472585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2472585 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460065_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Shailender Singh Author-X-Name-First: Shailender Author-X-Name-Last: Singh Author-Name: Chitra Krishnan Author-X-Name-First: Chitra Author-X-Name-Last: Krishnan Author-Name: Nishant Kumar Author-X-Name-First: Nishant Author-X-Name-Last: Kumar Author-Name: Supriya Lamba Sahdev Author-X-Name-First: Supriya Lamba Author-X-Name-Last: Sahdev Title: The convergence of health system resources and health outcome in Central Europe and the Baltic region Abstract: Health system resources have increased comparatively higher in Central Europe and the Baltic region relative to the Euro Area and the OECD countries. This study investigates the tendency for health system resources and health outcomes to converge for the countries of Central Europe and the Baltic region from 2000 to 2019. The existence of convergence is tested using the β coefficient within and across the 11 countries studied. The panel result favors the existence of convergence in the three variables employed as health system resources – physician density, nurses’ density, and per capita current health expenditure. Similarly, the findings support the presence of convergence in all four variables used as health outcomes – life expectancy at birth (total), crude death per 1000 population, NCDs mortality, and infant mortality. Furthermore, at the country level, the results are heterogeneous. Evidence highlights that only three variables employed as health system resources converged in Iceland, Latvia, Norway, and Sweden. The results favor the convergence in all four variables employed as health outcomes in Poland and Russia. However, the exact opposite holds for the convergence of health outcomes in Denmark. Therefore, this calls for the need to implement sound reforms in the health systems that could translate increased health system resources into improved health outcomes.The significance of this study lies in its examination of the relationship between increasing health system resources and health outcomes in Central Europe and the Baltic region. Despite higher investments in health system resources relative to the Euro Area and OECD countries, improvements in health outcomes have not kept pace in these regions. By investigating the potential for convergence in health system resources (physician density, nurses’ density, and per capita health expenditure) and health outcomes (life expectancy, crude death rates, NCD mortality, and infant mortality) from 2000 to 2019, the study provides valuable insights into the effectiveness of these resource investments. This research highlights the critical need for targeted, context-specific health system reforms to bridge the gap between resource allocation and the improvement of health outcomes in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460065 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460065 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2461599_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Dejene Gizaw Author-X-Name-First: Dejene Author-X-Name-Last: Gizaw Author-Name: Øystein Myrland Author-X-Name-First: Øystein Author-X-Name-Last: Myrland Title: Exploring the causes behind rising food prices in Sub-Saharan Africa Abstract: This study presents an in-depth analysis of factors affecting the increase and fluctuation of food prices in Sub-Saharan Africa (SSA). It analyses data from 32 countries within the region for the years 2000–2022. Through the application of three-panel regression models, the fixed effects (FEs), a hybrid model and a dynamic model, this research takes a detailed look at factors unique to each country to ensure a comprehensive and accurate examination of the effects. Our results align with both existing theories and prior empirical studies, highlighting the significant roles played by domestic supply shocks, changes in the exchange rate, variations in the money supply from previous periods and the influence of international market trends on food price inflation in SSA. Interestingly, the effect of exchange rate changes and international market influences appears to be waning over time, despite a recent uptick. Additionally, our study points to exchange rate fluctuations as a crucial factor in the instability of food prices.High food prices and their fluctuations can destabilize macroeconomic conditions, lower real incomes, and hinder access to adequate and nutritious food. These effects are particularly severe in developing regions like Sub-Saharan Africa (SSA), where food expenditures account for 40–50% of household budgets. A thorough understanding of the factors driving food price inflation and volatility is essential for accurate inflation forecasts and effective policy responses. Using different panel regression models and data from 32 SSA countries over two decades, this study identifies key determinants of food price inflation and volatility. The findings equip policymakers with actionable insights to design interventions that stabilize food prices, strengthen economic resilience, and protect vulnerable populations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2461599 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2461599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2461599 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2521467_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ummar Faruk Saeed Author-X-Name-First: Ummar Faruk Author-X-Name-Last: Saeed Author-Name: Abdul-Karim Mohammed Author-X-Name-First: Abdul-Karim Author-X-Name-Last: Mohammed Title: Do debt financing, tech-driven transformation and corporate governance enhance or constrain financial reporting quality? Evidence from China Abstract: This study investigates how debt financing and technological advancement moderate the relationship between board-level corporate governance mechanisms and earnings management (EM) in Chinese listed financial firms. Grounded in agency theory and stakeholder theory, the research utilizes a panel dataset of 228 financial firms from 2010 to 2022. To test the proposed hypotheses, the study employs dynamic GMM modeling to address endogeneity, including reverse causality, omitted variable bias, measurement errors and unobserved heterogeneity, and uses Driscoll-Kraay standard errors to correct for heteroskedasticity, autocorrelation, and cross-sectional dependence. The findings reveal that board independence and ownership concentration significantly mitigate EM, while CEO duality is positively associated with increased earnings manipulation. Furthermore, debt financing enhances the effectiveness of governance mechanisms in constraining EM. Technological advancement also plays a crucial moderating role, strengthening the capacity of governance structures to reduce EM. These results highlight the importance of integrating governance frameworks with financial and technological strategies to improve the integrity of financial reporting. The study offers practical implications for corporate managers aiming to enhance governance effectiveness, and for policymakers seeking to reinforce regulatory mechanisms in China's financial sector. Overall, the research contributes to the broader discourse on corporate governance, transparency, and financial stability in emerging markets.This study offers novel insights into how corporate governance mechanisms interact with debt financing and technological advancement to influence earnings management in Chinese financial firms. By employing a dynamic panel GMM approach on data from 228 listed firms over a 13-year period, the research demonstrates that board independence and ownership concentration effectively constrain earnings manipulation, while CEO duality exacerbates it. Crucially, both debt financing and digital innovation significantly moderate these governance effects, highlighting their dual potential to either enhance transparency or facilitate more sophisticated forms of manipulation depending on governance quality. These findings provide actionable guidance for corporate leaders seeking to strengthen financial reporting integrity, and for regulators aiming to align governance codes with evolving financial and technological ecosystems. This work contributes to corporate finance literature by bridging Agency and Stakeholder theories and presenting an integrated framework for assessing financial reporting quality in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2521467 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2521467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2521467 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460082_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yi-Fan Zhang Author-X-Name-First: Yi-Fan Author-X-Name-Last: Zhang Author-Name: Haoxing Zhao Author-X-Name-First: Haoxing Author-X-Name-Last: Zhao Title: The effect of E-commerce on digital inclusive finance: evidence from the E-commerce boom in rural China Abstract: Digital inclusive finance is an important means for China to improve the financial inclusion rate and promote common prosperity. Rural development issues are related to China’s social stability and national strength, and they are also key issues in the process of building a moderately prosperous society in all respects. Since the 2010s, China has initiated pilot policies for rural e-commerce. As a crucial policy for rural revitalization and rural economic development, whether the e-commerce to rural areas policy can drive the development of digital inclusive finance in Chinese rural areas deserves significant attention. This paper delves into the impact of this policy on digital inclusive finance in rural areas. Based on quasi-natural experiment data including 2844 counties in China, we employ a staggered difference-in-differences (DiD) model and find that after the arrival of the e-commerce boom, the digital inclusive finance index increased largely. Further mechanism analysis shows that this policy facilitated faster growth in farmers’ income, improved their consumption structure, and promoted innovation in rural areas. Moreover, the policy significantly enhanced digital inclusive finance in larger cities and cities with more developed digital infrastructure. Our manuscript can help the Chinese government optimize relevant policies and reveal the importance of e-commerce in rural development.This study focuses on whether the prosperous development of rural e-commerce can enhance its digital inclusive finance. Based on the quasi natural experiment of e-commerce entering rural areas, we constructed a DID model. After conducting a series of mechanism analyses and empirical tests, the study found that the policy of e-commerce entering rural areas can improve the development of digital inclusive finance in rural areas, and this is achieved through promoting rural income growth, improving rural consumption structure, and driving innovation. The development of rural areas is the foundation and guarantee of China, and the development of digital inclusive finance in rural areas provides richer and more convenient financial service channels for rural residents. Studying the impact mechanism and heterogeneity of e-commerce policies in rural areas can not only help policy makers refine targeted policies, but also help rural residents more easily accept the new technologies and changes brought about by the e-commerce wave. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460082 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460082 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468387_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sudip Giri Author-X-Name-First: Sudip Author-X-Name-Last: Giri Author-Name: Dongping Du Author-X-Name-First: Dongping Author-X-Name-Last: Du Author-Name: Mario Beruvides Author-X-Name-First: Mario Author-X-Name-Last: Beruvides Title: A systematic approach to predicting NFT prices using time series forecasting and macroeconomic factors in digital assets Abstract: Non-fungible tokens (NFTs) have gained mainstream attention in the fintech community, but there is little research on their statistical properties. This study investigates the long-memory characteristics of NFT returns and volatility, focusing on their potential for predicting price movements. As NFTs do not conform to traditional models, understanding their unique features is crucial for comprehending complex market dynamics. This study aims to reveal the impact of macroeconomic factors on NFT prices, understand their correlation and develop predictive models using autoregression and artificial intelligence (AI) technology. This research utilized datasets from the Centers for Disease Control and Prevention (CDC), U.S. Bureau of Labor Statistics, Bureau of Economic Analysis, Christie’s, Dune, and Google Trends. Correlation and p value tests revealed strong relationships between NFT prices and variables such as weekly volume, pandemics, inflation and security. The Baseline Model using autoregression with NFT volume, security and technology factors outperformed all other models demonstrating the speculative volatility of NFTs. The Transformer Model using transformers, an architecture used by ChatGPT, Gemini and Stable Diffusion, showed high accuracy with less feature selection and preprocessing efforts. This study provides a novelty using a systematic approach for researchers to perform financial forecasting and contributes to the scarce literature on NFTs. This research offers valuable insights to investors and private agents regarding the right economic conditions for NFT investments by reducing portfolio risks and making informed decisions. To the authors’ best knowledge, this is the first study to utilize time-series transformers for forecasting NFTs based on macroeconomic factors. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468387 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468387 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568969_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Phung Duy Quang Author-X-Name-First: Phung Duy Author-X-Name-Last: Quang Author-Name: Trinh Quoc Thang Author-X-Name-First: Trinh Quoc Author-X-Name-Last: Thang Title: Analysis and forecasting of daily global gold price: an SARIMA-LSTM approach with Random Forest technique Abstract: Forecasting gold prices remains vital in financial markets, given gold’s dual role as both a hedge against inflation and a safe-haven asset during economic uncertainty. This study proposes a hybrid model integrating SARIMA, LSTM, and RF to improve predictive accuracy by capturing both linear and nonlinear dependencies in historical gold price data. SARIMA models linear trends and seasonal components, LSTM captures nonlinear patterns from SARIMA residuals, and RF refines predictions using macroeconomic indicators such as the USD Index, Federal Interest Rate, US CPI, Oil Prices, S&P 500 Index, and Bond Yields. Utilizing real-world data, the model effectively tracks market trends with reduced forecasting errors, indicating continued price fluctuations and potential long-term growth. The findings provide valuable insights for investors and policymakers, with future research focusing on additional macroeconomic factors and advanced hybrid forecasting techniques.This study introduces a hybrid SARIMA–LSTM–RF model that enhances the accuracy of gold price forecasting by capturing both linear and nonlinear market dynamics. By integrating macroeconomic indicators such as the USD Index, Federal Interest Rate, CPI, Oil Prices, S&P 500 Index, and Bond Yields, the model effectively reflects real-world financial interactions influencing gold prices. The results demonstrate reduced prediction errors and improved tracking of short-term fluctuations as well as long-term growth trends. These findings provide valuable implications for investors and policymakers in managing financial risk and optimizing investment portfolios, while contributing to the advancement of hybrid forecasting frameworks for complex financial time series. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568969 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568969 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2446651_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thompson Aneyire Kubaje Author-X-Name-First: Thompson Aneyire Author-X-Name-Last: Kubaje Author-Name: Richard Amoasi-Andoh Author-X-Name-First: Richard Author-X-Name-Last: Amoasi-Andoh Author-Name: Ivy Eklemet Author-X-Name-First: Ivy Author-X-Name-Last: Eklemet Author-Name: Sampson N. Wassan Author-X-Name-First: Sampson N. Author-X-Name-Last: Wassan Title: Foreign direct investments, tax revenue, and economic growth in Sub-Saharan Africa: does maximum tax apply? Abstract: Existing literature on economic growth often investigates the effects of foreign direct investments (FDIs) on economic growth while giving little significance to domestic resource mobilization in the form of taxes as a player in economic growth. This study contributes to literature in two unique ways: first, investigating the effects of FDIs and tax revenue on economic growth. Second, it examines the threshold of taxes that enhance economic growth. By using a fixed effect model, the study found that foreign direct investments significantly influence economic growth but tax revenue as a share of GDP does not. However, using dynamic threshold model, we found that tax revenue has an insignificant effect on economic growth because the average tax rate of the sampled countries falls below a level of taxes significant enough to stimulate economic growth. Again, the model indicates that below 15% of tax rate, economic growth is positively influenced by tax revenue but beyond this threshold, taxes become detrimental to economic growth. As a robustness check, the 43 sampled countries were grouped into central African countries (CA), eastern African countries (EA), northern African countries (NA), southern African countries (SA), and western African countries (WA). Given the findings, it is recommended that developing countries in Africa not only rely on foreign direct investments but also strengthen their tax systems which will then serve as a complement to FDIs in the economic growth of the country. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2446651 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2446651 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2446651 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2551160_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Muhammad Ubaidillah Al Mustofa Author-X-Name-First: Muhammad Ubaidillah Author-X-Name-Last: Al Mustofa Author-Name: Imron Mawardi Author-X-Name-First: Imron Author-X-Name-Last: Mawardi Author-Name: Mohammad Haidar Risyad Author-X-Name-First: Mohammad Haidar Author-X-Name-Last: Risyad Title: Exploring the FDI-growth-finance nexus: Does the level of economies matter? Abstract: The nature of foreign capital inflows and innovation introduces uncertainty in determining growth priorities, either in advanced or emerging economies. The aim of this study is to investigate the nexus relationship between foreign direct investment (FDI), economic growth (EG) and financial development by focusing on the levels of economies. Using panel data and a panel pooled mean group (PMG) estimation approach, this study finds that FDI and financial development are crucial factors stimulating long-term EG. Specifically, in emerging economies, this study finds that the institutions-based financial system is more dominant than the market-based financial system when attracting capital inflows. This response shows that emerging economies experience an effect of intermediation institutions first to build inclusive financial development. However, this result differs in middle economies. The nexus relationship in middle economies is more varied since these economies experience a transitional cycle that affects financial institutions (FIs) and financial markets simultaneously when attracting investment and stimulating growth. While in advanced economies, there is a significant driver of growth from market financial systems and investment inflow.This study offers empirical insights into the relationship between finance, growth, and investment. It reveals that financial development and investment policies are not equal across economies. In emerging economies, financial sector growth is often caused by initial economic activity. The financial sector should be viewed as a competitive advantage by policymakers in emerging economies. Differently, in middle and advanced economies, the policy should be more focused on maintaining the short-term capital allocation that focuses on the financial market. These insights offer critical policy implications for enhancing financial markets and institutions' resilience both in emerging, middle, and advanced regions. This work also contributes to the practical efforts in promoting sustainable development through the improvement of financial deepening and investment stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2551160 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2551160 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2551160 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2525479_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Guiro Jeudi Topan Author-X-Name-First: Guiro Jeudi Author-X-Name-Last: Topan Author-Name: Noël Thiombiano Author-X-Name-First: Noël Author-X-Name-Last: Thiombiano Title: Determinants of ex post household coping strategies in the face of health shocks in Burkina Faso: evidence from household surveys Abstract: Household coping strategies to address health shocks are a significant concern, given the absence or low functionality of insurance. The objective of this study is to analyze the determinants of ex post household strategies in Burkina Faso. Data from the continuous multisectoral survey conducted in 2014 by the National Institute of Statistics and Demography (INSD) were utilized, and the analysis was performed with the multinomial logit model. The estimation results show that a 1 CFA franc increase in income multiplies the likelihood of resorting to savings by 10 and the likelihood of changing consumption patterns relative to asset sales by 15. On the other hand, an increase in health expenditure reduces the likelihood of resorting to savings by 30% and consumption adjustments by 36%, indicating immediate budgetary pressure. Furthermore, an additional sick person in the household reduces the likelihood of resorting to these two strategies by approximately 13%. Finally, the near-zero odds ratio associated with insured households suggests an almost systematic rejection of resorting to help from relatives as a primary strategy. The results imply that it is important that the government continues the process of implementing universal health insurance to protect households against the financial consequences of illness.This research examined the factors that determine the dominant strategies selected by households in Burkina Faso to cope with health shocks. The findings indicate that prevalent strategies employed by respondents include the following: allocating funds to savings, seeking assistance from relatives and friends, modifying consumption patterns, and liquidating assets. In Burkina Faso, the selection of these strategies is contingent upon pivotal factors, including income, the prevalence of illness, and health expenditures. The findings suggest that the implementation of universal health insurance is an imperative. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2525479 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2525479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2525479 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2462442_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jayanthi Thanigan Author-X-Name-First: Jayanthi Author-X-Name-Last: Thanigan Author-Name: N. Srinivasa Reddy Author-X-Name-First: N. Srinivasa Author-X-Name-Last: Reddy Author-Name: Moutusy Maity Author-X-Name-First: Moutusy Author-X-Name-Last: Maity Author-Name: Priya Sethuraman Author-X-Name-First: Priya Author-X-Name-Last: Sethuraman Author-Name: J. Irudhaya Rajesh Author-X-Name-First: J. Irudhaya Author-X-Name-Last: Rajesh Title: An integrated framework for understanding innovative digital payment adoption and continued usage by small offline retailers Abstract: Traditional small retailers in India account for 85% of goods sold but have slowly adopted digital technology. Despite digital payments’ significant impact on customer satisfaction and policy, there is limited research on small retailers’ adoption of these technologies. This study examines the factors that influence both the initial adoption and continued use of innovative digital payment methods among small retailers in Emerging Markets (E.M.). Using a two-phase, mixed-method approach, this study validates the integrated technology adoption and continuance model proposed by the authors. Using data from India’s demonetization, which forced the rapid adoption of digital payments, the study examines the sustainability of crisis-induced technology adoption. The follow-up qualitative analysis explores retailers’ intention to continue using these digital payment methods. The findings reveal several factors influencing the adoption of digital payments, including perceived ease of use, social norms, perceived risks, and voluntariness. The study also highlights that younger merchants are innovative and embrace payment technologies. This research contributes insights to the existing literature on digital payment adoption among small retailers by constructing an integrated framework. The findings offer practical guidance to retailers, helping them to optimize operations and improve customer satisfaction while addressing security risks.This study makes a significant contribution to understanding digital payment adoption among small offline retailers in emerging markets, especially after India's 2016 demonetization. By using a dual-phase Qunt-Qual methodology, the research provides nuanced insights into both initial adoption and long-term usage of digital payments. The findings highlight the crucial role of technological, social, and regulatory factors in shaping adoption behaviors over time. This study extends the Technology Acceptance Model (TAM) by including social norms and voluntariness, creating a framework better suited for emerging markets. This study fills gaps in existing literature by demonstrating how regulatory interventions act as catalysts for adoption, while social and perceived benefits drive sustained use. This study also identifies persistent barriers, such as perceived risk and system reliability concerns, offering insights into challenges of digital payment adoption. Beyond theoretical contributions, the study has several practical implications. By identifying the key drivers of adoption, it offers actionable recommendations for policymakers, banks, and fintech companies to enhance digital payment penetration. Strategies such as improved security features, retailer education, and efficient transaction processing can help reduce adoption barriers and increase long-term usage. These insights can help small retailers improve operational efficiency, reduce dependency on cash, and cater to the growing demand for digital transactions, ultimately increasing financial inclusion in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2462442 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2462442 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2462442 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2582273_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Baah Aye Kusi Author-X-Name-First: Baah Aye Author-X-Name-Last: Kusi Author-Name: Nana Kwasi Karikari Author-X-Name-First: Nana Kwasi Author-X-Name-Last: Karikari Author-Name: Michael Effah Asamoah Author-X-Name-First: Michael Effah Author-X-Name-Last: Asamoah Author-Name: Anthony Essel-Anderson Author-X-Name-First: Anthony Author-X-Name-Last: Essel-Anderson Title: Decomposing recapitalization policy effects on banking efficiencies: a regulatory life cycle theory approach in Ghana Abstract: This study applies the regulatory life cycle theory to decompose the effects of the various stages of recapitalization regulations on bank efficiency types in an emerging African economy. Using data from 30 banks operating in Ghana over the period from 2000 to 2020 and applying Tobit and OLS models, we examine the relationship between recapitalization stages and banking efficiencies. The results show that various recapitalization stages affect banking efficiency differently. Specifically, (i) the pre-recapitalization stage dampens technical and scale efficiencies while positively affecting bank revenue and profits, (ii) the during-recapitalization stage leads to positive effects on scale efficiency and (iii) post-recapitalization has positive effects on technical and pure-technical efficiency. The results show that recapitalization regulation must be seen as a process and not a one-off occurrence to help financial sector stakeholders understand the various effects and effectively manage the recapitalization regulation process. The results suggest that bank managers can rely on some stages of the recapitalization process to enhance efficiency, while mitigating the adverse effects of pre-recapitalization on technical and scale efficiencies. This study extends the application of the regulatory life cycle theory to show that recapitalization regulation is a process with varying effects on the outcomes of banking efficiency.This study advances understanding of banking regulation by applying the regulatory life cycle theory to analyze how different stages of recapitalization affect bank efficiency in an emerging African economy. The research demonstrates that recapitalization is not a single event but a multi-stage process with distinct effects on various efficiency dimensions and also reveals that while recapitalization processes may affect various banking efficiencies. The insights offered in the paper provide valuable guidance for policymakers and bank managers to strategically navigate the recapitalization process, optimize efficiency outcomes, and design more effective regulatory interventions in developing financial systems. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2582273 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2582273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2582273 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2461604_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdirahman Abdullahi Adow Author-X-Name-First: Abdirahman Abdullahi Author-X-Name-Last: Adow Title: Remittances and economic growth in East Africa Abstract: In East African countries, remittance is a crucial source of external financing, frequently surpassing foreign direct investment and official development assistance. Despite its essential contribution to household welfare, the overall effect of remittances on economic growth has not been adequately examined within the region’s distinct economic and institutional contexts. This paper used data from the World Development Indicators to examine the impact of remittances on GDP per capita growth across 15 East African countries from 2000 to 2022. Employing a fixed effects model and System Generalized Method of Moments (System GMM) to address unobserved heterogeneity and endogeneity, the findings indicate a significant positive association between remittances and economic growth. High inflation and rapid population growth, however, constrain the developmental impact of remittances. The findings indicate that financial depth enhances the effectiveness of remittances in promoting economic growth. The study indicates the need for specific policies aimed at optimizing the growth potential of remittances, which encompass enhancing financial inclusion, stabilizing inflation, and promoting investment-friendly environments. These initiatives may allow East African nations to utilize remittances more efficiently as a catalyst for sustainable economic growth. This research underscores the vital role of remittances in economic development and emphasizes the need for structural reforms to enhance their long-term impact and sustainability in East Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2461604 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2461604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2461604 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2529532_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ardhendu Shekhar Singh Author-X-Name-First: Ardhendu Shekhar Author-X-Name-Last: Singh Author-Name: Dilip Ambarkhane Author-X-Name-First: Dilip Author-X-Name-Last: Ambarkhane Author-Name: Bhama Venkataramani Author-X-Name-First: Bhama Author-X-Name-Last: Venkataramani Author-Name: Nisha Bharti Author-X-Name-First: Nisha Author-X-Name-Last: Bharti Title: Developing a model for sustainable financial inclusion through systematic review: a PRISMA approach Abstract: Financial inclusion is needed for the sustainable growth of any country. It contributes to one of the important SDGs, i.e., reduced inequality (SDG 10). However, there is a lack of clarity on understanding the concept and a universally accepted definition of financial inclusion is lacking. The researchers have no unanimity regarding whether it is a 'state' or a 'process.' This study adopted the PRISMA method for systematic review and relies on the Scopus database for collecting papers. It has covered the papers for 17 years, i.e., 2007-2025 (15 May). After the exclusion criteria of journal articles and reviews, articles in English and filters of subject areas, a total of 4245 articles were obtained. Further, after removing the duplicate and irrelevant articles, 3410 papers were taken for the study. The study concluded that financial inclusion is a continuous process, and consistent effort is needed to achieve it. The paper takes a holistic approach to examining enablers and drag factors, including financial capability and financial well-being, in achieving financial inclusion. This paper draws important lessons for the field's policy makers and practitioners. It also contributes to the theory as it holistically defines financial inclusion and proposes a model for achieving it.This paper develops a holistic model for achieving financial inclusion and considered several important factors like drag factors, enablers in the process, financial literacy and financial capability for the model. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2529532 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2529532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2529532 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2544175_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Woraphon Wattanatorn Author-X-Name-First: Woraphon Author-X-Name-Last: Wattanatorn Title: Climate change exposure, circular economy and default probability: global evidence Abstract: This study investigates how climate change exposure and circular economy (CE) practices jointly influence corporate default risk, employing a global dataset of publicly traded firms from 61 economies spanning 2003–2023. The findings support that climate exposure significantly increases corporate default risk. The result further reveals that the effect of climate exposure is amplified over medium and long-term horizons which supports the role of physical damages, regulatory costs and transition risks on the financial outcome. Conversely, engagement in CE activities – such as resource efficiency, emissions reduction, responsible product management and environmental innovation – is associated with substantially lower default risk. This highlights the role of CE in enhancing corporate financial resilience. Importantly, this study’s findings demonstrate an essential moderating role of corporations engaging in CE strategies in buffering the adverse financial implications of climate exposure. I further perform several robustness tests – falsification test, propensity score matching (PSM) to ensure the result validity. The direct impact of this study is to promote a more sustainable financial system by integrating climate risk and CE practices into credit risk assessment. Additionally, the results highlight the need to adopt CE concepts in credit risk frameworks and strategic risk management, enhancing the knowledge of corporate leaders, investors and regulators.The direct impact of this study is to promote a more sustainable financial system by integrating climate risk and circular economy practices into credit risk assessment. Additionally, the results highlight the need for to adopt of CE concepts in credit risk frameworks and strategic risk management, enhancing the knowledge of corporate leaders, investors and regulators. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2544175 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2544175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2544175 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2581511_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Julide Ceren Ahi Author-X-Name-First: Julide Ceren Author-X-Name-Last: Ahi Author-Name: Atle Blomgren Author-X-Name-First: Atle Author-X-Name-Last: Blomgren Author-Name: Atle G. Guttormsen Author-X-Name-First: Atle G. Author-X-Name-Last: Guttormsen Author-Name: Bård Misund Author-X-Name-First: Bård Author-X-Name-Last: Misund Title: Resource rent taxation and neutrality of investment projects on the Norwegian Continental Shelf1 Abstract: Nonrenewable resources are often taxed at high rates. Tax neutrality is, therefore, crucial since distortions can have substantial economic efficiency losses. However, academics have long disagreed on what constitutes a neutral tax. The same tax model can be described as prone to overinvestments by some researchers and resulting in underinvestments by others. The Norwegian petroleum tax regime 2000–2022 is a case in point. This article, using data on plans for sanctioning development projects submitted to the Ministry of Energy (so-called plan for development and operation [PODs]), examined whether pre-tax unprofitable projects have ever been sanctioned. With two exceptions, there have been no examples of the sanctioning of economically unprofitable projects. The projects presented to and approved by the Norwegian government have been economically profitable at relatively high hurdle rates. The two exceptions were a electrification project using floating offshore wind technology but was part of a larger investment project that is economically viable, as well as a carbon capture and storage (CCS) project handed in by oil and gas companies but unrelated to their petroleum related activities. These exceptions suggests that the petroleum tax system can in principle be used to subsidize projects that isolated are economically unprofitable projects to help achieve the goals of reducing climate gas emissions.This study investigates the tax neutrality of the Norwegian petroleum tax system. By examining oil companies' plans for development and operations (PODs), we uncover that there have not been examples of unprofitable petroleum projects being sanctioned. However, the study shows that unproftable renewable energy projects associated with petroleum activities have been sanctioned under the petroleum tax system. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2581511 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2581511 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2581511 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568638_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kazeem Abimbola Sanusi Author-X-Name-First: Kazeem Abimbola Author-X-Name-Last: Sanusi Author-Name: Zandri Dickason-Koekemoer Author-X-Name-First: Zandri Author-X-Name-Last: Dickason-Koekemoer Title: Pension funds, national savings and financial development: unpacking conditional effects using U.S. time series data Abstract: The relationship between pension funds and national savings (NS) varies depending on the existing level of savings within an economy. Similarly, the structural impacts of pension funds on financial development are influenced by these savings levels. This study examines both the direct effects of pension funds on NS and the interactive effects between savings and pension funds on NS and financial market development. Quarterly time series data from the USA, covering the period from the first quarter of 1960 to the third quarter of 2024, are utilized for the analysis. The dataset includes indicators such as total pension funds (TPF), private pension funds’ (PPF) investments, NS, personal savings (PS) and various measures of financial development. The autoregressive distributed lag (ARDL) approach is employed to capture both short-run dynamics and long-run relationships among these variables. The findings indicate that the effect of pension funds on NS is conditional upon the level of existing NS. When NS levels are high, the positive impact of pension funds on further boosting these savings is more pronounced. Furthermore, the interaction between NS and TPF demonstrates a positive and significant influence on financial development in both the short and long term.This study advances understanding of how pension funds influence savings behavior and financial market development by highlighting the conditional nature of these relationships. Using over six decades of U.S. time-series data and an ARDL framework, it demonstrates that pension funds strengthen national savings and financial development primarily when existing savings levels are high—underscoring the importance of complementarity rather than substitution. These findings offer valuable guidance for policymakers seeking to design pension systems that mobilize long-term savings and deepen financial markets. By revealing the interactive effects between pension funds and national savings, the study contributes novel empirical evidence to the global literature on institutional savings and capital market development, with insights relevant to both advanced and emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568638 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568638 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2490818_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Javier H. Ospina-Holguín Author-X-Name-First: Javier H. Author-X-Name-Last: Ospina-Holguín Author-Name: Ana M. Padilla-Ospina Author-X-Name-First: Ana M. Author-X-Name-Last: Padilla-Ospina Title: Reinforcement learning meets technical analysis: combining moving average rules for optimal alpha Abstract: A common issue faced by investors who use technical analysis is the reconciliation of conflicting trading signals, especially when these signals are highly correlated, such as those generated by multiple moving averages. This study expands on a model-free algorithm inspired by reinforcement learning to address the challenge of reconciling trading signals while taking transaction costs into account. The algorithm is trained to optimize alpha, a widely used measure of risk-adjusted return. Principal component analysis is utilized to reduce the dimensionality of a modified version of moving average signals, which are then used to define the input state. A policy network, represented by a feedforward neural network, is trained using historical data to convert states into trading actions. An evaluation network calculates and optimizes alpha by adjusting the policy network’s parameters. The algorithm utilizes a zero-arbitrage portfolio to accurately isolate alpha from the underlying asset’s return. By combining 199 simple moving average signals in a systematic manner, the algorithm was able to maximize the q5 asset pricing model alpha using a high-volatility United States stock portfolio as a risky asset. The algorithm demonstrates superior performance compared to both individual moving average signals and existing combination algorithms.This study significantly advances market‑timing strategies by introducing a reinforcement‑learning‑inspired algorithm that reconciles highly correlated yet conflicting trading signals—such as simple moving averages—to maximize alpha while explicitly accounting for transaction costs. At its core is a policy network, implemented as a feedforward neural network, trained simultaneously across all in‑sample time slices via a complementary evaluation network. The original trading signals are first transformed to achieve mean‑stationarity, then standardized and compressed with principal component analysis to reduce dimensionality and information redundancy. Algorithmic returns are rigorously isolated from underlying asset returns through a zero‑arbitrage portfolio framework. Because the method is model‑free, it avoids reliance on predefined return models or specific functional forms for the trading signals. The algorithm can also be readily extended to other asset‑pricing models and to similar technical—or non‑technical—signals. This comprehensive, adaptive, and principled approach equips investors with a robust tool for enhanced decision‑making in dynamic financial environments. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2490818 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2490818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2490818 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2499013_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Harold M. L. Utouh Author-X-Name-First: Harold M. L. Author-X-Name-Last: Utouh Author-Name: Felician Andrew Kitole Author-X-Name-First: Felician Andrew Author-X-Name-Last: Kitole Title: The impact of fiscal and monetary policy on economic growth and structural transformation in Tanzania Abstract: Economic growth and structural transformation represent critical development goals among developing countries. The strength of these depends on the effectiveness of fiscal and monetary policies, which have been unstable in most developing nations due to external shocks and inconsistent policy frameworks. To address these, and enhance growth and structural transformation, this study uses World Bank data from 1966 to 2022 to explore the short-run and long-run effects of fiscal and monetary policies on economic growth and structural transformation in Tanzania, employing the Autoregressive Distributed Lag (ARDL) model. The results show that, in the long run, government expenditure negatively impacts economic growth, while monetary variables such as money supply and exchange rates influence growth differently—money supply stimulating growth in the short term, and exchange rate fluctuations having significant long-term effects. On the other hand, the results reveal that both fiscal policy (government expenditure and taxation) and monetary policy (money supply) play a significant role in structural transformation, promoting global integration and improving income distribution. The Error Correction Term (ECT) is negative and statistically significant, indicating that deviations from the long-run equilibrium are corrected swiftly, suggesting a strong adjustment mechanism. These findings suggest that policymakers should focus on maintaining price stability, implementing tax regulations that do not hinder business and investments, and instead adopting a strategic tax approach that balances economic growth with social equity, improving the efficiency of public spending, managing interest rates carefully, and promoting foreign direct investment to foster sustainable growth and inclusive development.This study highlights that while fiscal and monetary policies significantly influence Tanzania’s economic growth and structural transformation, their effects vary over time. Government spending negatively affects long-term growth, while monetary tools like money supply boost short-term growth and exchange rate stability supports long-term outcomes. Both policy types play key roles in advancing structural transformation through global integration and fairer income distribution. A strong adjustment mechanism also ensures the economy returns to equilibrium after shocks. The study emphasizes the need for stable, well-targeted fiscal and monetary policies to support sustainable and inclusive development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2499013 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2499013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2499013 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555413_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Babatounde Ifred Paterne Zonon Author-X-Name-First: Babatounde Ifred Paterne Author-X-Name-Last: Zonon Author-Name: Chuang Chen Author-X-Name-First: Chuang Author-X-Name-Last: Chen Title: The resilience and vulnerability of WAEMU stock market amid COVID-19 Abstract: This study examines the impact of the COVID-19 pandemic on stock market returns at Bourse Régionale des Valeurs Mobilières (BRVM) in the West African Economic and Monetary Union (WAEMU). Using an event study and Markov regime-switching dynamic regression methodologies, including a robustness check via threshold regression, we analyze how pandemic-related variables and government stringency measures affect the market performance under different volatility regimes. Our findings reveal that, during low-volatility periods, confirmed COVID-19 cases and strict public health interventions significantly depressed returns, whereas fatalities exhibited no significant effect. By contrast, under high volatility, these adverse impacts are partially offset, suggesting that stringent policy measures can stabilize investor sentiment. A detailed sectoral analysis indicates heterogeneous responses: the industrial sector experienced prolonged high volatility, whereas the agricultural sector demonstrated resilience to fatalities, despite its sensitivity to confirmed cases. These insights highlight the critical role of targeted sector-specific policy interventions in regions characterized by high inflation, commodity price volatility, and structural fiscal challenges. This study contributes to the literature on crisis impacts on frontier markets and outlines clear directions for future research on post-pandemic recovery dynamics, policy effectiveness, and firm-level heterogeneity.This study shows how COVID-19 and government responses shaped stock returns in WAEMU’s BRVM market. Using event study and regime-switching methods, it reveals regime-dependent and sector-specific effects, highlighting the fragility of industry and transport versus the resilience of agriculture. The findings offer actionable insights for designing targeted policies to stabilize frontier markets during crises. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555413 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555413 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555413 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448228_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ummar Faruk Saeed Author-X-Name-First: Ummar Faruk Author-X-Name-Last: Saeed Author-Name: Rabiatu Kamil Author-X-Name-First: Rabiatu Author-X-Name-Last: Kamil Author-Name: Ishmael Wiredu Author-X-Name-First: Ishmael Author-X-Name-Last: Wiredu Title: The roles of ICT and governance quality in the finance-growth nexus of developing countries: a dynamic GMM approach Abstract: In an era of rapid technological advancements and increasing demands for effective governance, understanding the drivers of economic growth is vital. In Sub-Saharan Africa (SSA), where economic growth is fragile and highly reliant on financial systems, the interplay between financial development (FD) and economic growth (EG) is crucial. This study explores three core questions: (1) What is the direct relationship between financial development and economic growth in SSA? (2) How does ICT access mediate the financial development and economic growth nexus? (3) To what extent do governance structures moderate this relationship? Using panel data from 36 SSA countries spanning 1990 to 2022, the study applies robust methodologies including two-step system GMM, dynamic common correlated effects, IV-2SLS, and fixed effects models to address potential endogeneity concerns. Results reveal that financial development in the private sector and broad money supply significantly promote economic growth, while financial development in the financial sector negatively affects growth. ICT access amplifies the positive impact of financial development on economic growth, while effective governance structures further strengthen this relationship. These findings highlight the need for policies fostering private-sector financial development and maintaining broad money supply stability to stimulate growth. Policymakers should also prioritize expanding ICT access and enhancing governance standards to drive sustained economic growth in SSA.This study offers significant insights into the complex dynamics between financial development, ICT access, and governance structures in Sub-Saharan Africa (SSA). By employing advanced econometric techniques on data from 36 SSA countries spanning 1990 to 2022, the research highlights the dual role of financial systems in promoting or impeding economic growth, depending on their sectoral focus. The findings underscore that private-sector financial development and a stable broad money supply are key drivers of growth, while excessive development in the financial sector can have adverse effects. Moreover, the study reveals the amplifying role of ICT access and the moderating influence of effective governance in enhancing these relationships. These results offer actionable guidance for policymakers aiming to foster sustained economic growth. Recommendations include prioritizing private-sector financial development, expanding ICT infrastructure to improve financial inclusivity, and implementing robust governance frameworks to maximize the economic benefits of financial development. By addressing these key areas, the study provides a pathway for SSA economies to harness the transformative potential of technology and governance, laying a foundation for inclusive and sustainable development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448228 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448228 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457480_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdussalam Aljadani Author-X-Name-First: Abdussalam Author-X-Name-Last: Aljadani Author-Name: Ridwan Lanre Ibrahim Author-X-Name-First: Ridwan Lanre Author-X-Name-Last: Ibrahim Author-Name: Lukman Raimi Author-X-Name-First: Lukman Author-X-Name-Last: Raimi Author-Name: Usama Al-Mulali Author-X-Name-First: Usama Author-X-Name-Last: Al-Mulali Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Title: Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks Abstract: The African continent is advancing toward the ambitious objectives of Vision 2063, which outlines a sustainable and prosperous future, but progress depends on targeted macroeconomic policies, particularly in trade. However, inadequate financing remains a key obstacle to realizing the full benefits of trade. Our research examines the impact of trade openness and the asymmetric effects of financial development on economic growth (EG) in Africa's leading financially developed nations—South Africa, Egypt, Morocco, Nigeria, and Algeria—over the period 1995–2020. Using robust methodologies such as the Pooled Mean Group (PMG) and Quantile Regression (QR), we find that trade openness is a critical driver of EG. Positive shocks in financial development enhance growth, while negative shocks hinder it. Additionally, digitalization and market size foster EG, whereas underdeveloped transport services constrain it. These findings highlight the need for policies that promote trade openness, mitigate financial instability, leverage digitalization, expand market size, and improve transport infrastructure to advance the goals of Vision 2063.This research provides critical insights into the factors driving economic growth in Africa's leading financially developed nations, highlighting the pivotal roles of trade openness, financial development, and digitalization. By identifying both enablers and constraints—such as market size and transport infrastructure—this study offers actionable recommendations for policymakers to address financing challenges and foster sustainable growth. These findings directly support the implementation of Vision 2063, providing a roadmap to enhance Africa's economic resilience, competitiveness, and long-term prosperity. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457480 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457480 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2453585_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: S. M. Riha Parvin Author-X-Name-First: S. M. Author-X-Name-Last: Riha Parvin Author-Name: Niyaz Panakaje Author-X-Name-First: Niyaz Author-X-Name-Last: Panakaje Author-Name: Madhura K Author-X-Name-First: Madhura Author-X-Name-Last: K Author-Name: Niha Sheikh Author-X-Name-First: Niha Author-X-Name-Last: Sheikh Author-Name: Shakira Irfana Author-X-Name-First: Shakira Author-X-Name-Last: Irfana Title: Development and validation of social inclusion scale for stock market participation Abstract: Social inclusion is essential to inclusive development but is less explored in relation to financial behavior, especially stock market participation. This study aims to develop and validate a social inclusion scale specific to stock market participation. The study used literature review, expert insights, and focus groups to identify social inclusion items, followed by Exploratory and Confirmatory Factor Analyses (EFA and CFA) using SPSS and AMOS 23 to check validity. The scale identifies three main dimensions: social interaction, social capital, and peer effect. Social interaction reflects engagement with social groups during major investments, peer effect captures the influence of peers' investment success, and social capital highlights the role of resourceful social networks in investment decisions. This scale is a valuable tool for investors, financial institutions, regulatory bodies, and researchers to assess social inclusion's impact on stock market participation and shape policies for market inclusivity. This study fills a gap by providing a validated scale for social inclusion among stock market participants, offering insights into how social factors influence financial behavior.This study develops a versatile scale applicable to academic research, financial education, and practical financial planning. It offers researchers and practitioners a reliable tool to advance financial literacy and decision-making. The study bridges theory and practice, contributing to diverse financial contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2453585 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2453585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2453585 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468886_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Eid Ibrahim Daud Author-X-Name-First: Eid Ibrahim Author-X-Name-Last: Daud Author-Name: Mousse Abdi Mohamoud Author-X-Name-First: Mousse Abdi Author-X-Name-Last: Mohamoud Author-Name: Jama Mohamed Author-X-Name-First: Jama Author-X-Name-Last: Mohamed Author-Name: Abdinasir Ali Abdi Author-X-Name-First: Abdinasir Ali Author-X-Name-Last: Abdi Title: Exploring the impact of foreign direct investment on poverty reduction in Latin America: Evidence from panel quantile regression model Abstract: Alleviating poverty stands as one of the paramount global challenges, particularly in regions like Latin America, where socioeconomic disparities persist. Therefore, this study aims to investigate the relationship between Foreign Direct Investment (FDI) and poverty reduction in 14 Latin American countries from 1992 to 2022. Utilizing panel quantile regression analysis, we explored the nuanced relationships between key economic factors and poverty levels across different income quantiles in the region. Our findings consistently demonstrate that higher FDI levels are associated with lower poverty rates across all income groups, highlighting the potential of FDI as a driver of poverty reduction. We also uncover negative associations between poverty and factors such as trade openness and labor participation, while income inequality emerges as a significant contributor to poverty levels. In light of these findings, we propose several policy implications, including measures to attract FDI through tax incentives and infrastructure development; promote trade openness and labor participation; mitigate income inequality through progressive taxation and social safety nets; and prioritize targeted investment strategies in sectors benefitting lower-income groups, such as education and healthcare.This study investigates the impact of Foreign Direct Investment (FDI) on poverty reduction across different income levels in 14 Latin American countries from 1992 to 2022. Using a panel quantile regression model, it reveals that FDI generally reduces poverty, but the effect varies across income groups and in conjunction with other economic factors like trade openness and income inequality. The findings highlight the need for targeted policy interventions, such as promoting inclusive growth strategies and mitigating income disparities, to maximize the poverty-reducing potential of FDI and contribute to achieving the Sustainable Development Goals in the region. This research provides policymakers with a more nuanced understanding of the complex relationship between FDI and poverty, enabling the design of more effective and equitable development strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468886 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468886 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2541264_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Noah Keya Otinga Author-X-Name-First: Noah Author-X-Name-Last: Keya Otinga Author-Name: Pat Obi Author-X-Name-First: Pat Author-X-Name-Last: Obi Author-Name: Freshia Mugo-Waweru Author-X-Name-First: Freshia Author-X-Name-Last: Mugo-Waweru Title: The conditional effect of fintech on the linkage between financial inclusion and capital market development Abstract: This study investigates the role of fintech in enhancing the relationship between financial inclusion and capital market development (CMD) across the African continent. Using static and dynamic panel estimation models, we assess how fintech can expand access to wealth-building financial products. Two measures of financial inclusion were used: financial inclusion usage (FIU) and financial inclusion access (FIA). Results show that FIU has a positive impact on CMD, while FIA has a negative effect. Fintech is found to partially mediate the relationship, in that while both measures of financial inclusion remain statistically significant, their individual effects on CMD are reduced when fintech is introduced into the model. Fintech also serves as a positive moderator, reinforcing the benefits of financial inclusion, particularly in countries with higher levels of inclusion. The study further finds that historical conditions have a greater influence than current events in shaping the growth of capital markets. We offer policy recommendations along those lines.This study provides new empirical insights into how financial technology (fintech) strengthens the relationship between financial inclusion and capital market development across Africa. By analyzing data from 34 countries over nearly two decades, the research demonstrates that fintech not only facilitates broader access to financial services but also channels this inclusion toward long-term wealth-building investments in capital markets. The findings highlight fintech’s dual role as both a mediator and a moderator in this linkage. These insights offer critical policy implications for enhancing financial market participation in developing regions. This work contributes to ongoing efforts to promote inclusive economic growth through digital innovation. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 7 X-DOI: 10.1080/23322039.2025.2541264 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2541264 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2541264 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460083_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Osamah Ahmed AL-Maamari Author-X-Name-First: Osamah Ahmed Author-X-Name-Last: AL-Maamari Author-Name: Nadeem Aljonaid Author-X-Name-First: Nadeem Author-X-Name-Last: Aljonaid Author-Name: Noufal Alrefaei Author-X-Name-First: Noufal Author-X-Name-Last: Alrefaei Title: Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen Abstract: This study examines the impact of microcredit on the performance of Micro and Small Enterprises (MSEs) in Yemen, focusing on the mediating role of beneficiary satisfaction. Data was collected using a structured questionnaire from 398 MSE proprietors in Yemen who have accessed microcredit from Microfinance Institutions (MFIs). The study implemented a proportionate stratified random sampling technique to determine the sample size, and based on the sample size determination formula. The study employed descriptive analysis using SPSS and Partial Least Squares Structural Equation Modeling (PLS-SEM) with Smart PLS 3.2.9 software to analyze the relationships between microcredit, beneficiary satisfaction, and MSE performance. Findings indicate that microcredit significantly affects profitability, sales growth, and employment expansion among MSEs in Yemen. However, microcredit does not show a significant association with asset growth. Furthermore, beneficiary satisfaction mediates the relationship between microcredit and profitability, sales growth, and asset growth, highlighting its crucial role in maximizing the benefits of microfinance services. The study suggests policy recommendations to enhance microcredit effectiveness, including reducing interest rates, simplifying loan processes, enhancing beneficiary satisfaction, and integrating technology into MFI services.This study provides critical insights into the role of microcredit in enhancing the performance of Micro and Small Enterprises (MSEs) in Yemen, with a specific focus on beneficiary satisfaction as a mediating factor. By employing robust statistical techniques, the research establishes that microcredit positively influences profitability, sales growth, and employment expansion, while also underscoring the importance of beneficiary satisfaction in maximizing these benefits. The findings highlight key policy recommendations, such as lowering interest rates, streamlining loan processes, and leveraging technology in microfinance services, to enhance the effectiveness of microcredit programs. This study offers valuable guidance for policymakers, financial institutions, and development agencies seeking to optimize microfinance initiatives for sustainable economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460083 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460083 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524569_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Goni Zougouri Author-X-Name-First: Goni Author-X-Name-Last: Zougouri Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Title: How does gender inequality in access to land ownership affect household agricultural production in Burkina Faso through the adoption of short- and long-term agricultural practices? Abstract: This article uses panel data from 2014 to 2019 for a sample of 2,263 households in Burkina Faso. It aims to identify the impact of gender inequality in access to land ownership on agricultural production through agricultural practices. The three-stage least squares estimator, combined with the bootstrap method, has been used for this purpose. The results indicate that this inequality negatively affects agricultural production by discouraging the use of short-term agricultural practices such as chemical fertilizers. Moreover, high levels of inequality seem to encourage households to adopt long-term agricultural practices, especially agroforestry tree planting, to secure their land and improve production, while inequality levels below 0.10 encourage the use of chemical fertilizers. These findings suggest that policies aimed at promoting gender equality in access to land ownership should be accompanied by targeted measures, including facilitating access to credit and supporting agroforestry tree planting for women, in order to enhance household agricultural production.This research analyzes the effect of gender inequality in access to land ownership on agricultural production through the channel of agricultural investment. It mobilizes bundles of rights and angular deviation theories to measure inequality of access to land ownership within Burkinabe households. The results suggest the promotion of agroforestry tree plantations for marginalized groups in order to boost household agricultural production. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524569 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524569 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524569 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2444374_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fabrice Nkurunziza Author-X-Name-First: Fabrice Author-X-Name-Last: Nkurunziza Author-Name: Richard Kabanda Author-X-Name-First: Richard Author-X-Name-Last: Kabanda Author-Name: Patrick McSharry Author-X-Name-First: Patrick Author-X-Name-Last: McSharry Title: Enhancing poverty classification in developing countries through machine learning: a case study of household consumption prediction in Rwanda Abstract: To address the challenges associated with measuring and classifying household consumption (poverty) in developing countries, such as cost, time gaps, and inaccurate socio-economic data, this study suggests leveraging machine learning (ML) algorithms. We assessed the performance of various ML algorithms using data from 14,580 sample households from the Integrated Household Living Condition Survey (EICV5), considering 87 features. Among the 12 classifiers evaluated, multiple kernel support vector machines, eXtreme gradient boosting, and multinomial logit demonstrated the highest predictive accuracy, ranging between 86.6% and 88.5%. Notably, household food expenditure, the total number of children (<14 years) in the household, and household own food expenditures emerged as the most predictive features for consumption classification. Interestingly, including shock-coping strategies did not significantly improve prediction accuracy. The multiple kernel support vector machine consistently outperformed eXtreme gradient boosting and multinomial logit. These findings suggest that survey questions used to assess poverty in Rwanda could be streamlined, prioritizing important features, particularly those related to household food characteristics. This approach has the potential to address challenges associated with measuring and classifying household consumption in developing countries more effectively.This paper provides an innovative approach to improving poverty classification in developing countries through the application of machine learning techniques to predict household consumption in Rwanda. In comparing the performance of the 12 different classification algorithms, the study identified key features such as household food expenditure and the number of children in the household as strong indicators of consumption levels. The results show that using machine learning models, especially the multiple kernel support vector machine, one can increase substantially the accuracy in predicting poverty, hence alleviating the problems related to the high costs of surveys and rare collection of data. This paper contributes not only to improve the measurement methods of poverty but also to more efficient and cost-effective strategies for poverty assessments in other developing economies in order to support evidence-based policymaking and poverty reduction efforts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2444374 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2444374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2444374 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559047_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdi Majid Yusuf Ibey Author-X-Name-First: Abdi Majid Yusuf Author-X-Name-Last: Ibey Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Abdikani Salah Abdulle Author-X-Name-First: Abdikani Salah Author-X-Name-Last: Abdulle Title: The impact demographic factors on economic growth in Somalia Abstract: Demographic factors significantly influence economic growth by shaping labor markets, productivity, and overall economic performance. This study investigates the short- and long-term effects of demographic variables on Somalia’s economic growth using the ARDL model and a 38-year time-series dataset (1985–2023). The findings reveal that life expectancy positively impacts economic growth in both the short and long run, highlighting the role of improved health and longevity in enhancing productivity. The dependency ratio has a positive long-term effect on economic growth, suggesting that Somalia’s socio-economic structure, characterized by extended family networks and informal economic activities, mitigates the economic burden of dependents. In the short run, however, the dependency ratio has a negative but statistically insignificant effect on GDP per capita. Population growth has a significant negative impact on economic growth in both the short and long run, indicating that rapid population expansion strains resources and hinders development. Additionally, internal conflict adversely affects economic growth, underscoring the consequences of political instability. The study recommends investing in healthcare, promoting education and job creation, enhancing governance, and fostering entrepreneurship to improve labor market participation and drive long-term economic growth. Strengthening political stability is crucial for sustainable development.This study provides new empirical evidence on how demographic dynamics and internal conflict shape economic growth in a fragile state context, focusing on Somalia from 1985 to 2023. By applying the ARDL framework and FMOLS robustness checks, the research identifies life expectancy as a key driver of growth, while rapid population expansion and persistent conflict undermine development. The unexpected positive long-run role of the dependency ratio highlights the importance of informal economic structures and remittance flows in sustaining livelihoods. These findings contribute to the broader literature on development economics by offering context-specific insights into the interplay between demographics, conflict, and growth in conflict-affected states. For policymakers and development partners, the study underscores the urgency of investing in healthcare, education, governance reforms, and conflict resolution to unlock Somalia’s demographic potential and foster inclusive, sustainable economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559047 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559047 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2452891_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nguyen Thi My Diem Author-X-Name-First: Nguyen Thi My Author-X-Name-Last: Diem Author-Name: Nguyen Ngoc Thach Author-X-Name-First: Nguyen Ngoc Author-X-Name-Last: Thach Title: Dynamics of global economic growth: a Bayesian exploration of basic and augmented Solow models Abstract: The Solow growth model has long served as a cornerstone in economic theory, offering critical insights for formulating growth policies. Nevertheless, its principal limitation is the omitted variable bias arising from the inclusion of constant exogenous variables. Furthermore, the frequentist framework's susceptibility to multicollinearity complicates the incorporation of multiple variables. In addressing these challenges, Bayesian methods present a compelling alternative. This study rigorously examines both the basic and augmented Solow growth models using a Bayesian non-linear approach applied to a global panel dataset spanning 1970 to 2019. The results demonstrate that the augmented Solow model, which incorporates heterogeneous population growth, savings, technology, and depreciation rates, significantly outperforms the basic model in predictive accuracy. Crucially, the elasticity of output with respect to capital, as estimated through this advanced econometric approach, aligns more closely with widely accepted empirical values. These findings reaffirm the validity of the Solow growth model when evaluated with enhanced econometric techniques and high-quality data. The study’s implications are particularly relevant for policymakers, who are encouraged to leverage the insights provided by the augmented model. Specifically, strategies such as increasing investment, fostering technological innovation, enhancing human capital, and optimizing resource allocation should be prioritized to drive sustainable economic growth.Despite its significance as a foundational model, the Solow growth model face challenges in the presence of omitted variable bias and multicollinearity within the frequentist framework. Against this backdrop, Bayesian methods emerge as an effective alternative. Employing a thoughtful Bayesian non-linear approach on a global panel from 1970 to 2019, this study reveals that the augmented Solow model, which incorporates heterogeneous population growth, savings, technology, and depreciation rates, exhibits superior predictive capabilities compared to its basic counterpart. The Solow growth model holds true when tested by a more advanced econometric technique utilizing more better-quality data. The estimated elasticity of output with respect to capital is more closely aligns with widely accepted empirical values. The authors advocate that policymakers should take into account the insights provided by the augmented model when formulating robust growth policies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2452891 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2452891 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2452891 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2522338_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohamud Hussein Mohamud Author-X-Name-First: Mohamud Hussein Author-X-Name-Last: Mohamud Author-Name: Fartun Ahmed Mohamud Author-X-Name-First: Fartun Ahmed Author-X-Name-Last: Mohamud Title: Exploring the relationship between exchange rate and trade balance in Somalia. A Bayesian VAR and other econometrics model approach Abstract: This study explores the relationship between Somalia’s exchange rate and trade balance, considering additional factors such as inflation, the trade-to-GDP ratio, imports, and foreign direct investment (FDI). Using secondary data from the World Bank covering 1990 to 2022, the analysis applies three econometric methods. The Bayesian Vector Autoregression (BVAR) model shows a short-run relationship between the exchange rate and trade balance. The Fully Modified Ordinary Least Squares (FMOLS) results indicate that trade balance and inflation have a long-term negative impact on the exchange rate, while FDI positively influences it in the long run. The Ordinary Least Squares (OLS) regression confirms these findings, showing that increases in trade balance and inflation lead to currency depreciation. These results suggest that Somali policymakers should develop sustainable trade policies that improve the trade balance, increase the trade-to-GDP ratio, and attract more FDI to stabilize the exchange rate.This study provides the first in-depth econometric analysis of the relationship between exchange rate and trade balance in Somalia using a combination of Bayesian VAR, FMOLS, and OLS models. By incorporating additional macroeconomic variables such as inflation, trade-to-GDP ratio, imports, and foreign direct investment (FDI), the research offers robust short- and long-term insights into the determinants of exchange rate movements in a fragile, post-conflict economy. The findings fill a critical gap in the literature and hold significant policy relevance, offering practical guidance for Somali policymakers aiming to stabilize the exchange rate through improved trade policy, inflation control, and enhanced FDI inflows. This work contributes not only to academic research but also to informed decision-making for sustainable economic development in Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2522338 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2522338 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2522338 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2532673_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tatiana Somià Author-X-Name-First: Tatiana Author-X-Name-Last: Somià Title: Founder’s assessment: insights into coachability and competencies crucial for investors’ decisions Abstract: Securing funding is critical for early-stage entrepreneurs, especially those with innovative but uncertain market outcomes. Investors increasingly emphasize entrepreneurs’ coachability as a key factor in startup success. However, research on how coachability impacts investment decisions remains limited. This study examines the role of coachability in investor decision-making using a survey involving panels of investors, coaches, and entrepreneurship professors. An Entrepreneur Coachability Scale (ECS) was developed based on a Coachability Competency Model. Results show that coachability and related competencies are vital in investment decisions. Competencies highlighted by investors include relationship and implementation skills. Entrepreneurs with these skills are more likely to secure funding and progress to due diligence.This research introduces the ECS and highlights its multifaceted impact on the entrepreneurial ecosystem. Educators can integrate ECS-driven curricular activities and mentorship initiatives to build coachability competencies throughout their programs. For practitioners, the ECS functions as a self-assessment tool, enabling entrepreneurs and founding teams to identify areas for coachability development that enhance investor appeal. Additionally, the ECS provides a coachability dashboard that supports business angels, venture capitalists, incubators, and accelerators in more effectively matching founders with mentors and driving stronger venture outcomes. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2532673 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2532673 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2532673 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524568_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdoul Hadirou Yoda Author-X-Name-First: Abdoul Hadirou Author-X-Name-Last: Yoda Author-Name: Achille Augustin Diendere Author-X-Name-First: Achille Augustin Author-X-Name-Last: Diendere Title: Analysis of the effects of migrant remittances on labor productivity in Burkina Faso: evidence from linear ARDL and non-linear ARDL approaches Abstract: This research aims to analyze the effects of migrant remittances on labor productivity in Burkina Faso over the period 1990–2022. This research contributes to the economic literature by examining the role of economic factors such as human capital and physical capital in analyzing the relationship between migrant remittances and labor productivity. Methodologically, the present research favors the use of linear ARDL and non-linear ARDL techniques to address the positive and negative changes of migrant remittances on labor productivity. Using the ARDL model, the results indicate that in the long run, remittances have an insignificant direct effect on labor productivity. These results are confirmed by the nonlinear ARDL model which shows that positive and negative changes in migrant remittances have no significant effect on labor productivity in Burkina Faso. Furthermore, the results show that internal economic factors such as human capital and physical capital amplify the positive effects of migrant remittances on labor productivity, suggesting spillover effects and positive externalities between these three variables. These results underline the need to recognize the potential of migrant remittances as important capital for financing development, by considering human and physical capital as channels influencing the dynamics of labor productivity.This study highlights the crucial influence of migrant remittances on improving labor productivity within Burkinabe households. By demonstrating the positive impact of these funds on investment in human and physical capital, our research provides concrete empirical data. These findings are essential for policymakers in Burkina Faso and similar countries, enabling them to develop strategies to channel remittances into productive investments and thus stimulate sustainable local development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524568 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524568 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524568 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2484653_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hang Thu Do Author-X-Name-First: Hang Thu Author-X-Name-Last: Do Author-Name: Linh Hong Pham Author-X-Name-First: Linh Hong Author-X-Name-Last: Pham Author-Name: Huyen Thanh Ta Author-X-Name-First: Huyen Thanh Author-X-Name-Last: Ta Author-Name: Huong Thi Diem Nguyen Author-X-Name-First: Huong Thi Diem Author-X-Name-Last: Nguyen Title: Macroprudential policies and bank risk evidence from Vietnam Abstract: This paper examines the impact of macroprudential policies (MPP) on reducing risks at commercial banks (CBs) in Vietnam. In the paper, the authors use secondary data collected from the financial reports of 29 CBs in Vietnam during 2009-2023 to form an unbalanced panel data set and apply the GMM model to evaluate the impact of macroprudential policies on risks at these CBs. The research findings indicate that these policies generally effectively reduce risks at CBs. Additionally, when multiple instruments are combined, they have a more substantial impact. Based on this, the authors provide several recommendations to enhance the effectiveness of macroprudential policies and mitigate risks at Vietnamese CBs.This study provides comprehensive empirical evaluations of the effectiveness of macroprudential policies in reducing bank risk in Vietnam over the period 2009–2023. By constructing a novel macroprudential policy index and applying a dynamic GMM model to an unbalanced panel of 29 commercial banks, the research offers insights into how credit-, capital-, and liquidity-related tools contribute to financial stability in an emerging market context. The study has implications for the design and implementation of macroprudential frameworks not only in Vietnam but also across other emerging financial systems striving to ensure banking sector resilience. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2484653 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2484653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2484653 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448229_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tukae Mbegalo Author-X-Name-First: Tukae Author-X-Name-Last: Mbegalo Title: The impact of fuel incentive and improved cook stove on firewood collection in refugees camps in Tanzania: A quasi-experimental research design Abstract: The demand for solid fuel (firewood) placed an economic burden on the daily procurement of fuel for cooking by forcibly displaced people. The context rendered the distribution of free improved cook stoves (ICS) unsuccessful. Thus, promoting solid fuel incentives might address health and environmental challenges linked to firewood use. This study aimed to assess the impact of an intervention combining ICS and solid fuel on firewood collection in refugee camps in the Kigoma region of Tanzania. Data were drawn from the 2020 UNHCR energy survey, with a final sample of 329 participants from both baseline and end-line surveys. The study employed propensity score matching (PSM) and difference-in-differences (DID) methods. PSM, including inverse probability weighting (IPW), kernel matching and multivariate distance matching, compared refugees receiving ICS alone with those receiving ICS and solid fuel at the end-line. Covariate balance was tested to ensure valid matching assumptions. The DID method analysed the change in firewood collection frequency between baseline and end-line data. Results indicated that combining ICS with solid fuel reduced the number of firewood collection trips by nearly one per week, representing a 44% decrease. This reduction alleviates the labour-intensive burden on refugees, suggesting potential economic, health, and environmental benefits.The study found that the provision of improved cook stoves combined with solid fuel in refugee camps in the Kigoma region of Tanzania had a positive impact on reducing the frequency of firewood collection trips. The intervention alleviated the labor-intensive task of gathering firewood, offering refugees economic relief. This reduction in firewood collection is expected to lead to improved health outcomes by lowering exposure to harmful smoke and contribute to environmental benefits by lessening the demand for firewood. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448229 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448229 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2506700_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Moses G. Chamisa Author-X-Name-First: Moses G. Author-X-Name-Last: Chamisa Author-Name: Tafirenyika Sunde Author-X-Name-First: Tafirenyika Author-X-Name-Last: Sunde Title: The impact of macroeconomic and social variables on income and consumption tax revenues: a case of Zimbabwe Abstract: This paper investigates the macroeconomic and social determinants of income and consumption tax revenues in Zimbabwe, a country grappling with chronic fiscal instability, elevated debt and a large shadow economy. Leveraging annual data from 1980 to 2022, the analysis employs the Autoregressive Distributed Lag bounds-testing methodology to model both long-run equilibria and short-run adjustments. Distinct from prior research, this study disaggregates income and consumption tax revenues, thereby exposing unique, policy-relevant dynamics across tax categories. Core macroeconomic variables include gross domestic product growth, private consumption, inflation, foreign direct investment, real interest rates, trade openness, informality, agricultural output and demographic trends. Results reveal that private consumption, agricultural output, inflation and real interest rates exert statistically significant effects on tax revenues. In particular, growth in consumption and agriculture enhances revenues, while inflation and high real interest rates erode the tax base. This research contributes novel insights by isolating tax-specific macroeconomic effects, contesting the prevailing assumption of uniform tax determinants. The findings provide crucial guidance for fiscal policy design aimed at strengthening revenue mobilisation and economic resilience amid persistent macroeconomic volatility.This paper investigates the distinct macroeconomic and social determinants of income and consumption tax revenues in Zimbabwe using annual data from 1980 to 2022 and the ARDL bounds-testing approach. By disaggregating tax types, the study reveals that private consumption and agricultural output exert divergent effects on revenue mobilisation, while inflation and real interest rates influence tax categories differently. The findings provide targeted policy insights for improving tax efficiency in economies with large informal sectors and fiscal instability, offering a practical framework for revenue reform in developing country contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2506700 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2506700 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2506700 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2453584_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hanan Haider Ali Author-X-Name-First: Hanan Author-X-Name-Last: Haider Ali Author-Name: Sumathi Kumaraswamy Author-X-Name-First: Sumathi Author-X-Name-Last: Kumaraswamy Author-Name: Sara Al Balooshi Author-X-Name-First: Sara Author-X-Name-Last: Al Balooshi Author-Name: Yomna Abdulla Author-X-Name-First: Yomna Author-X-Name-Last: Abdulla Title: Return and volatility spillover between cryptocurrencies, oil price and stock market in GCC countries Abstract: This study examines the news impact, persistence and asymmetric effects of stock, oil and cryptocurrency markets in Gulf Cooperation Council (GCC) countries. The diagonal BEKK method is applied to the daily trading prices of three major cryptocurrencies, crude oil and four stock market indices from January 2018 to February 2024. The empirical results indicate a strong, significant volatility spillover between cryptocurrencies, oil and stock prices, but no return spillover effect among these asset classes. A negative news shock in cryptocurrency markets generates more volatility in GCC stock prices than positive news. The study suggests that cryptocurrency price movements are independent of other asset classes, providing portfolio diversification opportunities for investors in GCC countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2453584 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2453584 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2453584 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2522332_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Chang Gao Author-X-Name-First: Chang Author-X-Name-Last: Gao Author-Name: Lianjun Yao Author-X-Name-First: Lianjun Author-X-Name-Last: Yao Author-Name: Xueyuan Wang Author-X-Name-First: Xueyuan Author-X-Name-Last: Wang Title: Cross border railway trade and urban development in minority ethnic autonomous regions: causal analysis with double machine learning Abstract: The system of regional ethnic autonomy has endowed ethnic minority areas with greater autonomy in economic and social development, and exploring their regional economic development has a unique significance. This study used panel data from 120 ethnic autonomous counties in China from 2005 to 2021 to construct a double machine learning model to empirically test the impact of cross-border railway trade on urban development in ethnic autonomous counties and its mechanism of action. The results show: (1) Cross-border railway trade can significantly promote urban development in ethnically autonomous counties. Each unit increase can promote the urban development of ethnically autonomous counties by 35%. (2) The cross-border railway trade promotes urban development through three pathways: financial development, knowledge spillover, and industrial upgrading. (3) Cross-border railway trade has a better urban development effect on the ‘intermixed living on a large scale’ autonomous counties than the ‘concentrated settlement on a smaller scale’ autonomous counties; and it has a more significant urban development effect on the autonomous counties located in the western transportation corridor and benefited by the policy. The conclusions provide useful policy implications for economic development in regions with concentrated ethnic minorities.This paper constructs a double machine learning model to empirically test the impact of cross-border railway trade on the urban development of ethnic autonomous counties. The conclusion indicates that cross-border railway trade can significantly promote the urban development of ethnic autonomous counties. This paper is of significance as it provides policy makers with certain evidence. Provide actionable insights for designing targeted infrastructure strategies. Maximizing the urban development benefits of geographically remote and culturally unique border areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2522332 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2522332 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2522332 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494135_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kofi Agyarko Ababio Author-X-Name-First: Kofi Agyarko Author-X-Name-Last: Ababio Author-Name: Necati Alp Erilli Author-X-Name-First: Necati Alp Author-X-Name-Last: Erilli Author-Name: Eric Nkansah Author-X-Name-First: Eric Author-X-Name-Last: Nkansah Author-Name: Jules Clement Mba Author-X-Name-First: Jules Clement Author-X-Name-Last: Mba Title: Behavioural perspectives in forex portfolio value analysis Abstract: This paper combines Cumulative Prospect Theory (CPT) and the Grey Clustering Algorithm (GCA) to guide the optimization of forex portfolio selection. The United States Dollar (USD) against a universe of 84 other currencies was used for portfolio value analysis using the Differential Evolution Algorithm. A total of six portfolios were constructed of which two were based on the CPT and the remaining on the GCA. The optimisation results of all constructed portfolios show that the GC-based portfolios outperformed the CPT-based portfolios. Specifically, GC Portfolio 4, comprising assets with higher CPT values in GC 1, emerged as the best-performing portfolio with a Sharpe ratio of 0.8497, significantly surpassing the highest Sharpe ratio among CPT-based portfolios (0.0206 for CPT Portfolio 2), further reinforcing the superiority of GCA in portfolio optimisation. The inclusion of the behavioural proxy in portfolio construction has a significant impact on adding value to investors' portfolios. Future research could explore refining asset selection by integrating machine learning techniques such as K-means clustering or reinforcement learning to enhance portfolio robustness.This research paper explores the integration of Cumulative Prospect Theory (CPT) and Grey Clustering Algorithm (GCA) for forex portfolio optimization. The study is significant as it introduces a behavioural finance framework that accounts for investors' cognitive biases and decision-making anomalies, which traditional portfolio models often overlook. By evaluating the performance of portfolios composed of 84 currencies, the research demonstrates the superiority of GCA-based portfolios over those based on CPT, showcasing a higher Sharpe ratio and thus a better risk-return profile. This work makes a meaningful contribution to the literature on portfolio optimization, offering new insights into behavioural finance and demonstrating the practical value of integrating behavioural proxies into asset selection. Additionally, it suggests that advanced clustering techniques like GCA can enhance the reliability of portfolio analysis, making the study relevant for investment managers and financial analysts seeking to refine their strategies in volatile and uncertain market conditions. Future research could further expand on these findings by incorporating machine learning models to improve asset selection and portfolio robustness. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494135 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494135 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2541900_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fortune Ganda Author-X-Name-First: Fortune Author-X-Name-Last: Ganda Title: Financialisation, green investments, technological innovation, environmental governance and resource dependence impacts on environmental quality: evidence from BRICS economies Abstract: The BRICS economies, despite their swift economic expansion, confront escalating environmental difficulties. This study examines the complex relationship of financialisation, green investments, technological innovation, environmental governance, and resource reliance on environmental quality in these nations. This study uses the Methods of Moments Quantile Regression (MMQR) technique and the Dumitrescu-Hurlin (DH) panel causality test to analyze the intricate mechanisms affecting environmental deterioration within the BRICS framework from 2000 to 2019. The study shows a significant negative association between carbon emissions and financial development in financial institutions and markets. Green investments, environmental governance, economic growth, natural resource rents, material footprint, and technological innovation significantly positively affect emissions. FDI's environmental impact increases in developed BRICS countries. The study reveals a reciprocal relationship between carbon emissions and financial development, economic growth, natural resource revenues, material footprint, and green investments, highlighting a one-way impact on financial markets and environmental governance. The research also suggests unidirectional connections between financial market development and carbon emissions, and technical innovations and emissions, but no substantiated association exists between emissions and foreign direct investment.This study provides critical empirical insights into the approaches in which environmental quality in BRICS economies is influenced by financialisation, green investments, technological innovation, environmental governance, and resource dependence. The research reveals nuanced interdependencies and directionality in the relationship between financial and environmental factors across various phases of economic development by utilising advanced quantile regression and panel causality methodologies. The results indicate that robust financial development can contribute to the reduction of carbon emissions, whereas factors such as rapid economic growth, resource dependence, and specific types of investment may exacerbate environmental pressures. The analysis also demonstrates that the environmental impact of foreign direct investment alters as the BRICS economies develop. These findings offer policymakers valuable guidance in their efforts to strike a balance between economic development and environmental sustainability, emphasising the significance of customised strategies in the pursuit of green growth in emerging markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2541900 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2541900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2541900 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2481228_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sura Alayed Author-X-Name-First: Sura Author-X-Name-Last: Alayed Author-Name: Sultan Alateeg Author-X-Name-First: Sultan Author-X-Name-Last: Alateeg Title: Women economic empowerment leads towards social innovation in rural setting of Saudi Arabia Abstract: This study examines the relationship between women’s economic empowerment and social innovation, focusing on various dimensions of empowerment, including family decision-making, freedom of mobility, political participation, progressive attitudes, and parental background. Using a quantitative approach, the study finds that all hypothesized relationships were significant, with positive effects on social innovation. Family decision-making showed a moderate positive effect (β = 0.361), while freedom of mobility had the strongest influence (β = 0.413). Political participation, progressive attitudes, and parental background also demonstrated significant positive effects on social innovation, with coefficients of β = 0.371, β = 0.286, and β = 0.359, respectively. The results suggest that women’s empowerment across these dimensions plays a crucial role in fostering innovation within communities, emphasizing the importance of supporting women’s autonomy, political engagement, and progressive mindsets. This study contributes to the understanding of how women’s economic empowerment can lead to sustainable social innovation, offering valuable insights for policymakers and organizations seeking to enhance gender equality and promote inclusive, transformative change.This study highlights the significant role of women’s economic empowerment in driving sustainable social innovation. It offers valuable insights for policymakers to promote gender equality and inclusive community development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2481228 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2481228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2481228 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460078_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mingyao Wang Author-X-Name-First: Mingyao Author-X-Name-Last: Wang Author-Name: Normaziah Mohd Nor Author-X-Name-First: Normaziah Author-X-Name-Last: Mohd Nor Author-Name: Norhuda Abdul Rahim Author-X-Name-First: Norhuda Author-X-Name-Last: Abdul Rahim Author-Name: Faisal Khan Author-X-Name-First: Faisal Author-X-Name-Last: Khan Author-Name: Ziyu Zhou Author-X-Name-First: Ziyu Author-X-Name-Last: Zhou Title: Trade policy uncertainty and corporate financialization: strategic implications for non-financial firms in China Abstract: This study investigates the impact of trade policy uncertainty (TPU) on the financialization of non-financial firms in China. Corporate financialization is the process in which corporations prioritize financial assets and generate profits primarily via financial investments rather than product markets. Using 27,339 firm-year observations of China A-share listed companies from unbalanced panel data spanning from 2011-Q1 to 2020-Q4, we utilized the fixed effect model (FEM), instrumental variables – two-stage least squares (IV-2SLS), and generalized method of moments (GMM) approaches. The findings reveal a positive relationship between TPU and corporate financialization. Financing constraints and risk-taking play moderating roles in shaping this relationship. Notably, as TPU rises, companies tend to avoid increasing investment in derivatives. Instead, they expand their precautionary savings by retaining larger amounts of cash. This analysis emphasizes the significance of legislators in ensuring policy stability and fostering a secure business environment. Furthermore, the robustness of these results was sustained when alternative key variables and methodologies were applied.This study investigates the impact of trade policy uncertainty (TPU) on corporate financialization and explores the moderating roles of financing constraints and risk-taking in this relationship among nonfinancial enterprises listed in China from Q1 2011 to Q4 2020. This research employs the fixed effects model (FEM), instrumental variables two-stage least squares (IV-2SLS), and generalised method of moments (GMM) methods. The results indicate a positive relationship between TPU and company financialization. These findings illustrate the necessity for policymakers to maintain policy stability and create a secure business climate. The study has substantial implications for company decision-makers and regulators, highlighting the importance of strategic financial planning, particularly in the context of economic uncertainty. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460078 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460078 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524573_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Liem Nguyen Author-X-Name-First: Liem Author-X-Name-Last: Nguyen Author-Name: Ly Huynh Author-X-Name-First: Ly Author-X-Name-Last: Huynh Author-Name: Thu Luu Author-X-Name-First: Thu Author-X-Name-Last: Luu Title: Financial constraints and the speed of adjustment of trade credit extension: the case in an emerging country Abstract: Using a sample of listed non-financial firms in Vietnam from 2010 to 2022, this study investigates the dynamics of trade receivables by analyzing the speed of adjustment toward target levels, with particular attention to the moderating effects of Covid-19 and financial constraints. We find that Vietnamese firms do adjust toward their target trade receivables, and this process occurs slightly faster during the Covid-19 period. Furthermore, easing internal financial constraints enhances firms’ ability to close the gap to their target levels more effectively. To our knowledge, this is the first study to examine the effect of financial constraints on trade receivables adjustment speed in the context of a developing country. Finally, we show that Covid-19 exerts a mixed effect on the relationship between financial constraints and speed of adjustment of trade receivables, depending on the proxy of constraint. Based on the research findings, we provide relevant implications for the management of trade credit in a developing country.This study provides novel evidence on the dynamics of trade receivables among listed non-financial firms in Vietnam, an emerging market characterized by underdeveloped financial institutions and pronounced information asymmetries. Unlike prior research, which has predominantly focused on the speed of adjustment of aggregate working capital, this work isolates trade receivables as a critical component and examines how firms converge toward their target levels over time. By incorporating the moderating influences of financial constraints and the unprecedented disruption of Covid-19, the study advances understanding of how firms adapt trade credit policies under varying conditions of internal and external stress. The findings reveal that firms actively manage trade receivables and that this adjustment process accelerates during crises, underscoring the importance of adaptive liquidity management. Additionally, easing internal financial constraints significantly improves firms’ ability to close the gap to their target receivables. This work is among the first to document the mixed effects of Covid-19 on the interplay between constraints and adjustment speed in a developing country context. The research offers actionable insights for policymakers aiming to support trade credit markets and for managers seeking to balance liquidity and customer relationships more effectively under uncertainty. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524573 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524573 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2465986_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Frank Boateng Author-X-Name-First: Frank Author-X-Name-Last: Boateng Author-Name: Gomashie Edem Wisdom Author-X-Name-First: Gomashie Edem Author-X-Name-Last: Wisdom Author-Name: Sulaiman Olusegun Atiku Author-X-Name-First: Sulaiman Olusegun Author-X-Name-Last: Atiku Title: A time series analysis of mineral revenue and economic growth in Ghana Abstract: Mineral revenue is a vital source of revenue for the Government of Ghana, making it essential to assess its impact on economic growth. This study examines the long-term relationship between mineral revenue, government expenditure (GE), foreign direct investment (FDI), and economic growth in Ghana from 1990 to 2019. Utilising a quantitative approach, data was sourced from the Minerals Commission, the Bank of Ghana, the Ghana Chamber of Mines, and World Development Indicators. The study employed techniques such as the Vector Error Correction Model, Granger Causality, variance decomposition, and VAR for time series data analysis. Cointegration results indicated at least one cointegrating equation, revealing a long-term economic relationship among the variables. The findings suggest that mineral revenue positively correlates with economic growth (measured as real GDP), while FDI and GE exhibit negative relationships with real GDP. Notably, the inverse correlation between GE and real GDP implies that public spending may not be effectively directed toward sectors that significantly enhance economic growth. Overall, the study confirms that mineral revenue is a key contributor to Ghana's GDP and highlights that shocks to the mining industry could have substantial repercussions for the economy.The study underscores the critical role of mineral revenue as a significant contributor to Ghana's economic growth. The analysis of secondary data from 1990 to 2019 reveals a positive long-term relationship between mineral revenue and real GDP, indicating that fluctuations in the mining sector directly impact national economic performance. Conversely, government expenditure and foreign direct investment demonstrate negative correlations with economic growth, suggesting inefficiencies in public spending that do not effectively enhance growth in key sectors. These findings highlight the need for strategic allocation of government resources to areas that can drive sustainable economic development. This research holds that mineral revenue is not only vital for GDP contribution but also signals potential vulnerabilities; shocks to the mining industry could lead to substantial economic repercussions. The implications of this study are crucial for policymakers aiming to optimise resource management and ensure that mineral wealth translates into broad-based economic benefits for Ghana. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2465986 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2465986 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2465986 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457486_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hamada Elsaid Elmaasrawy Author-X-Name-First: Hamada Author-X-Name-Last: Elsaid Elmaasrawy Author-Name: Omar Ikbal Tawfik Author-X-Name-First: Omar Ikbal Author-X-Name-Last: Tawfik Author-Name: Mohammed Ali Ahmed Almashikhi Author-X-Name-First: Mohammed Author-X-Name-Last: Ali Ahmed Almashikhi Title: The impact of Disclosing Digital Financial inclusion indicators through mobile banking on deposits, loans and sustainable growth rate Abstract: Research on financial inclusion has recently spread to enrich the body of knowledge in this important field. The study examines the impact of the disclosure of digital financial inclusion through mobile phones on the sustainable growth rate in banks. In addition, the impact of disclosure of digital financial inclusion through mobile phones on both the volume of deposits and the volume of loans in banks in the Omani stock market during the comprehensive period from 2017 to 2023. The hypotheses were tested using the partial least square (PLS) method. The results showed a statistically significant negative association between disclosure of digital financial inclusion through mobile banking services and the total volume of deposits. In addition, there is a significant positive relationship between disclosure of digital financial inclusion through mobile banking services and the total volume of loans and the sustainable growth rate.The study reveals the impact of digital financial inclusion disclosure through mobile banking on deposits, total loan volume and sustainable growth rate, with a focus on developing countries (Sultanate of Oman as a model). The study provides important information for decision makers about the impact of mobile financial services on bank liquidity. In addition, the results of the study provide important indications and suggestions for bank managers to work on increasing awareness among bank managements to enhance the role of digital financial inclusion through mobile with its various indicators, as well as taking into account the impact of mobile transactions on banks' readiness to meet customer demands and liquidity volume. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457486 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457486 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2496672_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohamud Hussein Mohamud Author-X-Name-First: Mohamud Author-X-Name-Last: Hussein Mohamud Author-Name: Fatima Salah Abdirahman Author-X-Name-First: Fatima Salah Author-X-Name-Last: Abdirahman Author-Name: Atta Gul Author-X-Name-First: Atta Author-X-Name-Last: Gul Title: Analyzing the impact of macroeconomic variables on deforestation in Somalia: evidence from an ARDL model Abstract: Somalia, a country challenged by ongoing conflict and economic instability, faces significant environmental degradation, particularly deforestation. This study investigates the effects of key macroeconomic variables, economic growth, population growth, and inflation, on deforestation from 1993 to 2021. Using the Autoregressive Distributed Lag (ARDL) model, the analysis explores both short- and long-term relationships. Stationarity of variables was tested through ADF, PP, and Zivot-Andrews unit root tests, while diagnostic tests ensured the robustness of the model. The results confirm the Environmental Kuznets Curve (EKC) hypothesis, indicating that economic growth initially intensifies deforestation but later contributes to its decline after a critical GDP level. Population growth is found to significantly drive deforestation in the long run, whereas inflation shows no notable impact. These findings underscore the need for policies that foster sustainable economic growth, manage population pressures, and conserve natural resources. The study recommends integrated strategies, including community-based initiatives and regulatory reforms, to promote environmental sustainability in Somalia.This study analyzes the relationship between macroeconomic factors economic growth, population growth, and inflation and deforestation in Somalia using an ARDL approach. By confirming the Environmental Kuznets Curve hypothesis, the research provides new insights into how economic development initially accelerates but eventually mitigates environmental degradation. The findings offer valuable guidance for policymakers in designing strategies that balance economic growth with environmental sustainability, particularly in conflict-affected and developing regions like Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2496672 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2496672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2496672 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2537233_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tuhin G. M. Al Mamun Author-X-Name-First: Tuhin G. M. Author-X-Name-Last: Al Mamun Author-Name: Ehsan Ullah Author-X-Name-First: Ehsan Author-X-Name-Last: Ullah Author-Name: Md Sharif Hassan Author-X-Name-First: Md Sharif Author-X-Name-Last: Hassan Author-Name: Mohd Faizal Yusof Author-X-Name-First: Mohd Faizal Author-X-Name-Last: Yusof Author-Name: Md Aminul Islam Author-X-Name-First: Md Aminul Author-X-Name-Last: Islam Author-Name: Naharin Binte Rab Author-X-Name-First: Naharin Binte Author-X-Name-Last: Rab Title: Fiscal policy and household savings in Central Europe: a Markov switching VAR with covid shock Abstract: This study investigates the effectiveness of fiscal policies on household consumption, disposable income, and propensity to consume during the COVID-19 pandemic across Croatia, Slovakia, and Poland. The purpose is to assess how variations in government debt, expenditures, revenue, and subsidies influenced household financial behaviors in response to economic shocks. Using a Markov Switching VAR model across three regimes—initial impact, peak crisis, and recovery—this analysis captures changes in household consumption, disposable income, and consumption propensities under different fiscal policy measures. The findings reveal that the Slovak Republic exhibited the highest fiscal effectiveness, demonstrating effective government policies that stimulated consumer spending and supported household income during the pandemic. Croatia also showed positive outcomes, particularly in terms of income, although rising government debt posed challenges to overall effectiveness. Conversely, Poland faced significant obstacles, with its fiscal measures leading to lower consumption and income outcomes, indicating limited policy efficacy. Conclusions emphasize the importance of tailored fiscal measures, as their effectiveness varied across countries and economic contexts. Recommendations include reinforcing consumption-supportive policies, particularly during crisis periods, to stabilize income and consumption expectations. This study underscores the significance of targeted fiscal actions in promoting household resilience and economic stability, as exemplified by the successful approach taken by the Slovak Republic. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2537233 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2537233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2537233 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2525485_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Donnibè Dah Author-X-Name-First: Donnibè Author-X-Name-Last: Dah Author-Name: Pam Zahonogo Author-X-Name-First: Pam Author-X-Name-Last: Zahonogo Author-Name: Pazisnewendé François Kaboré Author-X-Name-First: Pazisnewendé François Author-X-Name-Last: Kaboré Title: Effects of the digital economy on economic growth in Africa: the role of human capital Abstract: This paper aims to analyze the effect of the interaction between the digital economy and human capital on economic growth in Africa. Using data covering the period 2000 to 2021, we use general method moment system estimation techniques for our analysis. The estimation results show that there is a U-shaped complementarity effect between the digital economy and human capital on economic growth. In general, African countries need to reach at least a human capital index threshold for the digital economy to start having a positive effect on economic growth through the human capital channel. Similarly, at least one digital economy threshold must be reached for human capital to begin to have a favorable effect on economic growth through the digital economy channel. Therefore, African countries must further develop digital infrastructure and train human capital in the creation and proper use of new technologies for inclusive growth.This research contributes to the literature by highlighting the complementary relationship that exists between human capital and the digital economy on economic growth in Africa. The results show that this relationship is U-shaped, pointing to the existence of a digital economy and human capital threshold that African countries need to reach in order to increase the synergistic effect of the digital economy and human capital on economic growth. The digital economy reinforces the effect of human capital on economic growth, just as human capital reinforces the effect of the digital economy on economic growth. These results suggest that, for sustained growth in Africa, human capital needs to be trained in the use and creation of information and communication technologies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2525485 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2525485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2525485 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2544172_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Meihan De Author-X-Name-First: Meihan Author-X-Name-Last: De Author-Name: Xiahong Shi Author-X-Name-First: Xiahong Author-X-Name-Last: Shi Author-Name: Changyi Xie Author-X-Name-First: Changyi Author-X-Name-Last: Xie Author-Name: Ran Zhang Author-X-Name-First: Ran Author-X-Name-Last: Zhang Author-Name: Junting Shi Author-X-Name-First: Junting Author-X-Name-Last: Shi Author-Name: Jinping Cheng Author-X-Name-First: Jinping Author-X-Name-Last: Cheng Title: Carbon emissions and corporate long-term use of short-term debt behaviour: evidence from listed companies in China Abstract: Although many studies have explored the impact of carbon emissions on corporate profitability, their implications for financing and investment behavior remain understudied. This study examines A-share listed firms in China to investigate the relationship between corporate carbon emissions and the long-term use of short-term debt (SDLI). Results show that a 1% increase in emissions leads to a 0.0158% rise in SDLI. Mechanism analysis suggests this is driven by reduced access to long-term debt and increased green innovation. The effect is stronger in financially constrained and private firms, but weaker in firms with environmentally aware management and stricter regional regulations. Further analysis reveals that a 1% increase in SDLI is associated with a 0.7183% decline in firm value and a 0.0223% increase in financial risk. This study is among the first to empirically link firm-level carbon emissions to debt maturity structure in a major emitting country. The findings contribute to the literature by revealing how carbon risk affects financing strategies, shifting the focus from profitability to balance sheet impacts. They also highlight the hidden financial costs of emissions and offer new insights at the intersection of environmental performance and corporate financial decision-making.This study provides novel empirical evidence on the financial consequences of corporate carbon emissions by examining their impact on firms' capital structure decisions, particularly the long-term use of short-term debt (SDLI), in the context of Chinese A-share listed companies. The findings reveal that higher carbon emissions are significantly associated with increased SDLI, primarily due to restricted access to long-term debt and elevated green innovation activity. This effect is especially pronounced in financially constrained and private firms. Furthermore, increased SDLI leads to reduced firm value and heightened financial risk, suggesting that carbon risk can distort corporate financing behavior and impose hidden costs. By shifting the analytical lens from firm profitability to balance sheet structure, this research expands the understanding of how environmental performance affects corporate finance, offering new insights for policymakers, investors, and corporate managers concerned with the intersection of sustainability and financial stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 8 X-DOI: 10.1080/23322039.2025.2544172 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2544172 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2544172 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2463275_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Wycliff Mariga Ombuki Author-X-Name-First: Wycliff Mariga Author-X-Name-Last: Ombuki Author-Name: Bethuel Kinyanjui Kinuthia Author-X-Name-First: Bethuel Kinyanjui Author-X-Name-Last: Kinuthia Author-Name: Daniel Okado Abala Author-X-Name-First: Daniel Okado Author-X-Name-Last: Abala Title: Productivity spillovers from foreign direct investment in Kenya's manufacturing sector Abstract: This paper seeks to determine the transmission channels of foreign direct investment-induced productivity spillovers in the manufacturing sector in Kenya and investigate whether or not firm-level heterogeneity responds to the transmission channels. We analyze panel data obtained from the World Bank database for the period 2007–2018. Employing fixed effects and Two-Step System GMM, we empirically demonstrate the relevance and significance of distinguishing four spillover transmission channels–demonstration effects, labour mobility, competition effects, and backward linkages. Overall, the results show negative productivity spillovers through the backward linkage channel, whereas spillovers through labour mobility, demonstration, and competition effects channels show unstable patterns across various specifications. The results also show that productivity spillovers depend on the technology gap between domestic and foreign firms while firm size had no significant impact. The findings suggest the need for firms to enhance their technology levels, invest in value addition and increase their absorption capacities in order to realize spillover benefits from foreign direct investment.Foreign direct investment is a critical component of Kenya’s development strategies. Deliberate efforts and measures are being undertaken by policymakers to attract and maintain foreign direct investment with the expectation that domestic firms and the economy at large will benefit from foreign direct investment inflows. This study aims at evaluating the impact of foreign direct investment on domestic firms in Kenya. The findings of this study shall be critical in redesigning Kenya’s foreign direct investment, trade, and industrialization policies and in actualizing Kenya’s Vision 2030, a blueprint aimed at making Kenya an industrialized and middle-income country by the year 2030. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2463275 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2463275 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2463275 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571402_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nidhi Dhankhar Author-X-Name-First: Nidhi Author-X-Name-Last: Dhankhar Author-Name: Saib Fakhar Author-X-Name-First: Saib Author-X-Name-Last: Fakhar Author-Name: Sunita Mehla Author-X-Name-First: Sunita Author-X-Name-Last: Mehla Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Author-Name: Silvi Asna Prestianawati Author-X-Name-First: Silvi Author-X-Name-Last: Asna Prestianawati Title: Evidence of adaptive market hypothesis in the Indian stock market through analysing day of the week effect Abstract: This research empirically investigated the existence of the adaptive market hypothesis (AMH) by investigating the day of the week effect (DOW), a commonly used calendar anomaly, using both symmetric and asymmetric GARCH models on the Nifty 50 data from 1 January 2002 to 31 December 2024. The study utilises three-year, four-year and five-year rolling windows with one year rolling forward, and an optimum rolling window of four years is selected for analysing the time-varying characteristics of efficiency. It was found that the Indian stock market exhibited three distinct phases of efficiency and inefficiency across the research period, indicating a time-varying behaviour that supports the AMH. Structural break analysis was also done by using CUSUM of square, which also provides evidence in favour of the AMH. Furthermore, the market demonstrated the leverage effect, which indicated that bad news creates more volatility in the market than positive news of the same magnitude. The results show valuable insight to the policymakers, investors and traders to make more informed decisions.Market efficiency has long been a topic of interest, and numerous research have been conducted to examine its existence. However, findings reveal that markets can exhibit both efficient and inefficient behavior at different points in time, indicating that market efficiency is not constant but varies dynamically. This study investigates such time varying behaviour of market in Indian context and tried to found the existence of Adaptive Market Hypothesis by examining the presence and absence of day-of-the-week effect in the Indian stock market at different time frame. The study analyzes the closing prices of the Nifty 50 index across 20 rolling windows of 4 year spanning the period from 2002 to 2024. Various forms of the GARCH model and structural break tests are employed to assess the presence and evolution of market efficiency. The study found that Indian stock market exhibit three different phase of market of efficiency which indicated the time-varying degree of market efficiency across different rolling windows, providing empirical support for the Adaptive Market Hypothesis in the Indian context and offering important theoretical and practical implications. Theoretically, it extends existing literature by providing empirical evidence of AMH in an emerging market and using rolling windows to capture the dynamic evolution of market efficiency. Practically, the findings assist policymakers in improving market regulations and help investors and traders develop informed strategies based on time-varying efficiency, leverage effects, and volatility persistence. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571402 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571402 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571402 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2598921_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sessinou Erick Abel Dedehouanou Author-X-Name-First: Sessinou Erick Abel Author-X-Name-Last: Dedehouanou Title: Natural disasters, readiness and indebtedness of landlocked African countries Abstract: Natural disasters can worsen the fiscal deficit due to lower tax revenues and higher spending on recovery efforts. This often increases debt, especially in landlocked African countries facing development and resource mobilization challenges. This study analyzes the impact of natural disasters on debt and conditional on landlocked African countries’ preparedness levels. Three types of natural phenomena were considered for the estimations, based on data availability and their relative importance since the 2000s: biological (epidemics, infestations), climatological (droughts, wildfires), and hydrological (floods, wave action) disasters. The results obtained using the Jordà local projection method with instrumental variable estimators for the period 2000–2022 showed that disaster shocks increase the debt of landlocked African countries after the shock, except for climatological disasters, for which the effect is insignificant over the considered period. In addition, preparedness significantly reduces the impact of disasters on the debt of the countries concerned. Thus, it is essential to adopt resilience mechanisms upstream to disasters to preserve the debt sustainability of landlocked African countries. Rather than limiting ourselves to reactive solutions, such as temporary debt suspension after a disaster, it would be beneficial to adopt a preventive approach that involves investments in preparedness, supported by the international community and reforms that promote the mobilization of financing. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2598921 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2598921 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2598921 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2492199_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Viet Ha Hoang Author-X-Name-First: Viet Ha Author-X-Name-Last: Hoang Author-Name: Cuong N. N. Tran Author-X-Name-First: Cuong N. N. Author-X-Name-Last: Tran Author-Name: Hoa Phuong Tran Author-X-Name-First: Hoa Phuong Author-X-Name-Last: Tran Author-Name: Thu Phuong Pham Author-X-Name-First: Thu Phuong Author-X-Name-Last: Pham Author-Name: Van-Chung Dong Author-X-Name-First: Van-Chung Author-X-Name-Last: Dong Title: Does engagement in global value chains enhance export survivability? Evidence from a transitional country Abstract: The rapid expansion of global value chains (GVCs) over the past few decades has significantly transformed international trade, leading to a more competitive global market where firms continuously strive to enhance their trade survival capabilities. In export-oriented economies like Vietnam, exports play a crucial role in driving economic growth. This study utilizes a panel probit model to examine the relationship between engagement in GVCs and the export survival of manufacturing firms in Vietnam over the period from 2010 to 2020. The empirical findings indicate that participation in GVCs has a positive impact on the export survivability of Vietnam’s manufacturing firms. In addition, firm characteristics such as size, location in industrial zones, labor productivity, and product diversification all contribute positively to export survival. Notably, state-owned and foreign-owned firms demonstrate superior export persistence compared to non-state-owned and domestic firms, respectively. The study also reveals a negative relationship between GVC participation and the provincial competitiveness index. Based on these results, the study offers several policy recommendations aimed at enhancing firms’ export survivability in foreign markets, thus contributing to sustainable economic development.This study investigates the relationship between participation in global value chains (GVCs) and the export survival of manufacturing firms in Vietnam over the period 2010–2020. Utilizing a panel probit model, the findings demonstrate that GVC engagement significantly enhances the likelihood of export continuity among these firms. Furthermore, firm-specific characteristics, such as firm size, location within industrial zones, labor productivity, and product diversification, are found to positively influence export survival. Notably, state-owned and foreign-invested firms show greater persistence in export markets compared to their non-state-owned and domestic counterparts. The study also identifies a negative correlation between GVC participation and the provincial competitiveness index. Drawing on these findings, the study offers several policy recommendations aimed at bolstering firms’ long-term presence in international markets and contributing to sustainable economic development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2492199 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2492199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2492199 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2459182_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: V. Vijayagopal Author-X-Name-First: V. Author-X-Name-Last: Vijayagopal Author-Name: M. Thenmozhi Author-X-Name-First: M. Author-X-Name-Last: Thenmozhi Title: Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach Abstract: This study examines how factors influencing zero pledging vary with different levels of pledging in family-owned firms. This study uses a zero-inflated beta model to differentiate the lack of opposition to pledge from the positive endorsement of pledge in an institutional setting with regulatory pledging disclosure. Examining ownership behavior related to the pledge decision, it is observed that family-owned firms are not against pledging and prefer to take risks and pledge to exploit available opportunities. Family participation in management encourages pledging, but business group-affiliation discourages it. Further, exploring the impact of different dimensions of socioemotional wealth (SEW) on the decision to pledge shares in family firms, this study uses a sub-sample analysis based on level of promoter shareholding to unfold the conflict between different SEW dimensions on the decision to pledge shares. The analysis highlights the possibility of SEW having a positive and negative influence simultaneously on strategic decision-making in family firms on certain occasions and the varying influence of specific aspects of SEW at different levels of promoter shareholding. We provide evidence that concern for reputation eclipses desire for retention of control while taking pledge decisions.This study serves to expand the understanding of the impact of ownership type on the pledge decision which has practical implications in helping investors and policy makers appreciate the likelihood and consequences of family firm promoters indulging in share pledge. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2459182 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2459182 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2459182 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571865_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Enock Mwakalila Author-X-Name-First: Enock Author-X-Name-Last: Mwakalila Author-Name: Lusekelo Kasongwa Author-X-Name-First: Lusekelo Author-X-Name-Last: Kasongwa Title: Monetary policy shocks, financial deepening and economic growth in Tanzania: a machine learning approach Abstract: This study examines the impact of monetary policy shocks and financial deepening on economic growth in Tanzania using a machine learning approach, focusing on XGBoost regression. By leveraging quarterly macroeconomic data, the study explores how changes in interest rates, money supply and inflation influence private sector credit expansion (financial deepening) and, in turn, GDP growth. The XGBoost model effectively captures complex, nonlinear relationships, providing deeper insights into the interactions between monetary policy decisions and economic performance. The results indicate that monetary policy variables dominate GDP growth, while financial deepening contributes positively but with lower influence in the short term. A Difference-in-Differences (DiD) analysis also reveals that monetary policy shocks negatively impact GDP growth. At the same time, the SARIMAX model suggests that GDP follows a predictable yet mean-reverting pattern, with weak persistence of external shocks. These findings underscore the critical role of monetary policy in macroeconomic management and highlight the need for data-driven policy interventions to enhance financial deepening and economic stability.This study offers new insights into how monetary policy shocks impact economic growth in Tanzania by incorporating machine learning techniques into macroeconomic analysis. Using XGBoost and SARIMAX models, the research uncovers the nonlinear and dynamic interactions between interest rates, money supply, inflation, and financial deepening. The findings reveal that monetary policy variables are the dominant short-term drivers of GDP growth, while financial deepening contributes more gradually over time. By adopting a data-driven approach, this work enhances the understanding of Tanzania’s monetary transmission mechanism and provides policymakers with robust evidence for designing more effective and adaptive macroeconomic strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571865 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571865 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2554299_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Enock Mwakalila Author-X-Name-First: Enock Author-X-Name-Last: Mwakalila Author-Name: Seif Muba Author-X-Name-First: Seif Author-X-Name-Last: Muba Title: Public debt sustainability in Tanzania: a non-linear analysis of fiscal and monetary policy interactions Abstract: This study aims to evaluate the sustainability of Tanzania’s public debt by analyzing its macroeconomic effects through a non-linear threshold analysis. Using quarterly time series data from 2000 to 2023, this study employs a Threshold Vector Autoregressive (TVAR) model to examine how the impact of debt on key macroeconomic indicators varies depending on whether debt levels remain below or exceed a specific threshold. The results show that when public debt is below this threshold, it positively contributes to economic growth without causing negative effects. However, once debt exceeds this critical threshold, it becomes a source of macroeconomic instability, marked by rising inflation, currency depreciation, higher interest rates and slower GDP growth. The findings highlight the importance of keeping debt within sustainable limits. Based on these findings, the study recommends setting a clear debt ceiling, improving fiscal discipline, enhancing monetary-fiscal coordination and strengthening buffers against external shocks to ensure long-term debt sustainability and economic resilience in Tanzania.This study provides new evidence on Tanzania’s public debt sustainability using a non-linear approach, showing that debt can support growth when kept below a critical threshold but becomes destabilizing when it rises too high. By examining the impact of debt levels on inflation, GDP growth, interest rates, and exchange rates, the research underscores the pressing need for a clearly defined debt ceiling, enhanced fiscal discipline, and closer coordination with monetary policy. These insights are vital for Tanzanian policymakers to ensure that borrowing remains a driver of long-term growth rather than a source of economic instability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2554299 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2554299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2554299 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2444395_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thiasha Naidoo Author-X-Name-First: Thiasha Author-X-Name-Last: Naidoo Author-Name: Peter Moores-Pitt Author-X-Name-First: Peter Author-X-Name-Last: Moores-Pitt Author-Name: Paul-Francois Muzindutsi Author-X-Name-First: Paul-Francois Author-X-Name-Last: Muzindutsi Title: The effect of investor sentiment on stock market liquidity under changing market conditions: evidence from South Africa Abstract: The impact of investor sentiment on liquidity is profound during changing market conditions, as empirical evidence has shown that market fluctuations often trigger spikes or declines in trading volumes which have unanticipated effects on liquidity. Therefore, this study examined the time-varying effect of investor sentiment on stock market liquidity in South Africa, and employed the QARDL model to analyse monthly data and market liquidity from January 2000 to December 2023. The empirical findings indicated that investor sentiment has a short-run impact on liquidity as the market moves from bearish to bullish conditions, whilst the long-run effects are significant in a steady condition in addition to bullish and bearish market environments. The results revealed an asymmetric and quantile dependent effect of investor sentiment on stock market liquidity where investors are more pessimistic when the market is bearish, leading to decreasing liquidity. Overall, the results of this study supported the theoretical assumption that optimistic investor sentiment boosts the liquidity of the stock market whereas pessimism amongst investors decreases overall liquidity.This paper investigates whether investor sentiment influences stock market liquidity under changing market conditions, focusing on South Africa’s dynamic market environment, which to the knowledge of the authors, has never been done before. Understanding the dynamics of stock market liquidity is crucial for investors, policymakers, and market participants, as it directly impacts the efficiency and stability of financial markets. By exploring the relationship between sentiment-driven behaviour and liquidity across different market conditions, this paper sheds light on how psychological factors can magnify or mitigate market inefficiencies. The findings provide valuable insights for developing strategies to enhance market resilience, inform regulatory policies, and support investment decision-making in emerging markets. This research is particularly relevant to South Africa, where market liquidity is vital for fostering economic growth and attracting foreign investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2444395 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2444395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2444395 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2566223_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ansari Saleh Ahmar Author-X-Name-First: Ansari Saleh Author-X-Name-Last: Ahmar Author-Name: Eva Boj del Val Author-X-Name-First: Eva Author-X-Name-Last: Boj del Val Title: Novel time series methods in economic forecasting: SutteARIMA evidence from Indonesian Consumer Price Index and currency exchange rates Abstract: Economic forecasting demands precision. Yet traditional models often stumble when confronted with real-world complexity – the messy interplay of linear trends, non-linear disruptions and seasonal fluctuations that characterize financial time series. This study introduces SutteARIMA, a hybrid forecasting approach that marries the α-Sutte Indicator with ARIMA methodology. What makes this interesting? The model does not require users to distinguish between linear and non-linear data patterns beforehand – a practical advantage in volatile economic environments. Testing across 200 pseudo samples revealed SutteARIMA’s versatility across diverse pattern types. The real test came with Indonesian economic indicators during the COVID-19 period. Results speak clearly. For Indonesia’s exchange rate forecasting, SutteARIMA achieved MSE of 66,474.88 and MAPE of 1.33% – outperforming ARIMA by 16%. Consumer Price Index (CPI) forecasting proved even more impressive: MSE of 0.0493 and MAPE of 0.1594%, surpassing α-Sutte by 17%. These performance gains are not marginal; they represent substantial improvements in forecasting accuracy during periods of economic uncertainty. The implications extend beyond technical superiority. Policymakers working with limited preprocessing resources can deploy SutteARIMA confidently across various economic indicators. The method’s consistent performance across both trending exchange rates and stable price indices suggests robust applicability in diverse economic contexts.Economic forecasting during volatile periods presents significant challenges for policymakers and businesses who must choose between linear and non-linear methods before understanding their data characteristics. This research introduces SutteARIMA, a hybrid methodology combining α-Sutte Indicator and ARIMA approaches that automatically adapts to diverse patterns without requiring preliminary classification. Extensive testing across 200 systematically generated pseudo samples representing the full spectrum of time series behaviors—including non-trending, trending, seasonal, and complex mixed patterns applicable across economic, financial, environmental, health, and other temporal data—demonstrates the method's broad versatility. Validation with Indonesian economic data during COVID-19 shows consistent 16-17% performance improvements over traditional methods. For central banks, exceptional CPI forecasting accuracy (MAPE < 0.16%) enables precise inflation monitoring crucial for monetary policy decisions. Exchange rate forecasting improvements benefit government budget planning, central bank interventions, and commercial risk management. The method's modest computational requirements make advanced forecasting accessible to organizations with limited technical resources. This research challenges conventional wisdom requiring practitioners to choose between forecasting paradigms, instead offering an integrated framework that leverages complementary strengths automatically. The demonstrated versatility suggests broad applicability across diverse domains including energy prices, commodity markets, financial indicators, environmental monitoring, epidemiological trends, and any temporal data where pattern uncertainty presents challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2566223 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2566223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2566223 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2499011_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ahmed Chafai Author-X-Name-First: Ahmed Author-X-Name-Last: Chafai Author-Name: Faizah Alsulami Author-X-Name-First: Faizah Author-X-Name-Last: Alsulami Title: The nonlinear relationship between corporate social responsibility disclosure and Islamic bank efficiency in GCC countries: the moderating role of audit quality Abstract: Although the relationship between corporate social responsibility (CSR) and banking performance has been the subject of several articles, the non-linear relationship between CSR disclosure and banking efficiency remains less explored, specifically in the Islamic banking sector and notably in the Gulf Cooperation Council (GCC) region. Moreover, the moderating effect of audit quality (AUQ) on this relationship has not also been examined. This research aims to examine the nonlinear relationship between CSR disclosure CSR disclosure and Islamic bank efficiency (IBE) and analyses the moderating effect of AUQ in this relationship. To achieve this, a sample of 43 Islamic banks located in the six GCC countries is constructed over the period 2012–2020. The sample was selected based on the completeness and availability of CSR-related data. This ensured a standardized dataset to enhance the reliability of the results. To estimate this relationship, we used system GMM method, addressing endogeneity concerns like reverse causality, unobserved heterogeneity and dynamic panel bias. Contrary to alternative estimation techniques, this method uses internal instruments to correct for potential biases, thereby improving the robustness and precision of estimates in dynamic panel models. The results revealed that there is an inverted U-shaped relationship between CSR disclosure and IBE. Furthermore, AUQ moderates the link between CSR disclosure and IBE. The results suggest that the interaction between CSR and AUQ enhances IBE, but bank efficiency could be affected by weak AUQ. The results will be useful to policy makers and Islamic bank managers in the GCC countries by increasing the CSR disclosure.This study provides critical insights into the underexplored non-linear relationship between CSR disclosure and Islamic banking efficiency in the GCC region. By identifying an inverted U-shaped relationship, the research highlights the delicate balance required in CSR disclosure to optimize banking efficiency. Additionally, the study underscores the significant moderating role of audit quality, demonstrating that high audit quality can enhance the positive effects of CSR disclosure on efficiency. Utilizing a robust methodological approach with dynamic panel models and system GMM, the findings offer reliable and actionable guidance for policymakers and bank managers. The evidence supports targeted policy interventions aimed at improving governance and disclosure practices, thereby contributing to Islamic banking efficiency in the GCC countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2499011 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2499011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2499011 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2523698_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Naser Yenus Nuru Author-X-Name-First: Naser Yenus Author-X-Name-Last: Nuru Author-Name: Hayelom Yrgaw Gereziher Author-X-Name-First: Hayelom Yrgaw Author-X-Name-Last: Gereziher Title: The impacts of public expenditure innovations on real effective exchange rate volatility in South Africa Abstract: This study examines the impacts of public expenditure innovations on exchange rate volatility in South Africa, utilizing quarterly data from 1970 to 2019. To achieve this objective, a vector autoregressive impulse response model variant, proposed by Jordà, is employed, with innovations identified recursively. The impulse response functions reveal that public expenditure innovation has a decreasing but insignificant impact on exchange rate volatility, and its impact depends on the type of fiscal expenditure innovation. While the impact of public expenditure innovation on exchange rate volatility does not depend on the direction of the innovation, it varies according to the state of the economy. Public expenditure innovation reduces exchange rate volatility during economic upturns but tends to increase it during downturns. Additionally, the size of the impact is greater during upturns than downturns.This study provides novel empirical evidence on the dynamic and asymmetric effects of discretionary public expenditure on exchange rate volatility in South Africa. By employing a local projection method with VAR-identified fiscal shocks over five decades, the findings reveal that public consumption and investment have distinct and regime-dependent impacts on exchange rate volatility. The results offer actionable insights for countercyclical fiscal policy design, emphasizing the importance of timing and composition of expenditure in mitigating currency volatility in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2523698 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2523698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2523698 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559057_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tabassum Author-X-Name-First: Author-X-Name-Last: Tabassum Author-Name: Shakeb Akhtar Author-X-Name-First: Shakeb Author-X-Name-Last: Akhtar Author-Name: Shujaat Naeem Azmi Author-X-Name-First: Shujaat Naeem Author-X-Name-Last: Azmi Author-Name: Mohd Azhar Author-X-Name-First: Mohd Author-X-Name-Last: Azhar Author-Name: Najul Laskar Author-X-Name-First: Najul Author-X-Name-Last: Laskar Title: Do credit default swaps (CDS) continue to serve as hedging instruments? A systematic literature review Abstract: This study systematically reviews 103 empirical papers on credit default swaps (CDS), published through March 2025, to analyze their effectiveness as hedging instruments and their wider role in financial markets. Using PRISMA guidelines, the review is designed to focus on three key strands: (1) features of CDS; (2) CDS growth over approximately two decades, contrasting pre-crisis expansion with post-crisis dynamics, and (3) the most recent CDS advancements shaping their use with its advantages and market trends. The findings reveal that some studies underline the benefits of CDS in improving liquidity, risk transfer, and capital relief, while others warn that they can deepen systemic vulnerabilities in times of turmoil. This heterogeneity of findings shows that the effectiveness of CDS depends on the market structure, the institutional framework, and broader economic conditions. This review enhances the discourse by elucidating policy implications for transparency, capital regulations, and systemic oversight, while delineating a prospective research agenda for credit derivatives.This study systematically reviews 103 empirical works on credit default swaps (CDS) to evaluate their effectiveness as hedging instruments and their evolving role in global financial markets. By employing the PRISMA framework, it highlights three critical dimensions: the operational features of CDS, their pre- and post-crisis growth trajectory, and recent advancements shaped by regulatory and technological changes. The review reveals a dual narrative while CDS enhance liquidity, capital efficiency, and risk transfer, they also heighten systemic vulnerabilities during periods of financial stress. This nuanced understanding underscores the conditional nature of CDS effectiveness, contingent on market structures and institutional frameworks. By synthesizing two decades of fragmented scholarship, the study advances policy debates on transparency, regulation, and systemic oversight. Its findings provide valuable insights for academics, regulators, and practitioners, positioning CDS as both essential tools for risk management and critical components of financial stability in an increasingly complex marketplace. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559057 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559057 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2479041_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ankita Srivastava Author-X-Name-First: Ankita Author-X-Name-Last: Srivastava Author-Name: Manisha Raj Author-X-Name-First: Manisha Author-X-Name-Last: Raj Author-Name: Bhartrihari Pandiya Author-X-Name-First: Bhartrihari Author-X-Name-Last: Pandiya Author-Name: Abhay Singh Chauhan Author-X-Name-First: Abhay Singh Author-X-Name-Last: Chauhan Title: Connection dynamics: exploring trade, consumption, and government spending in emerging economies through ARDL analysis Abstract: This study analyzes the nexus of trade, government expenditure, and private consumption with the economic progression of an emerging economy such as India. This could be attributed to a shift in trade, government expenditure, and consumption patterns due to multiple disruptions in the Indian economy in the form of recession, digitalization, demonetization, and the COVID-19 pandemic. The study variables were Real Gross Domestic Product (RGDP), net trade, government expenditure, and private consumption expenditure. The study was conducted on quarterly observations from 2000 to 2022 from India using autoregressive distributed lag (ARDL) and error correction methods to analyze the relationship among the variables. The analysis found net trade and consumption to be significant variables for determining economic growth. RGDP, net trade, government expenditure, and private consumption expenditure do not jointly move together in the long term, and short-run causality exists from private consumption expenditure to GDP. The error correction term was negative and significant, suggesting mean reversion. The residual analysis suggested an unbiased model that is stable, homoscedastic and free from serial correlation.This research work explores the dynamic relationship between trade, government expenditure, private consumption, and economic growth in India, particularly in the context of recent disturbances such as demonetization, digitalization, and the COVID-19 pandemic. By engaging autoregressive distributed lag (ARDL) and error correction methods, the study divulges that private consumption expenditure and net trade are substantial determinants of economic growth, with short-run causality from consumption to GDP. However, the variables do not exhibit long-term co-movement, suggesting that economic policies must adapt to changing conditions and meet the requirement of time. The findings emphasize the importance of private consumption in driving economic growth, highlighting the need for government initiatives to boost income, especially during economic slowdowns. The study also emphasizes the limited impact of government expenditure on growth during the analyzed period, possibly due to reduced spending. These insights are crucial for policymakers aiming to design effective fiscal and monetary strategies in post-pandemic recovery. The research contributes to the literature by providing a nuanced understanding of the interplay between key economic variables in an era of continuous disruption. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2479041 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2479041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2479041 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2465971_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nhat Nguyen Author-X-Name-First: Nhat Author-X-Name-Last: Nguyen Author-Name: Duy Ngo Author-X-Name-First: Duy Author-X-Name-Last: Ngo Title: Comparative analysis of boosting algorithms for predicting personal default Abstract: Accurately predicting personal default risk is crucial for financial institutions to manage credit risk effectively. This study conducts a comparative analysis of the performance of boosting algorithms, including AdaBoost, XGBoost, LightGBM, and CatBoost, in predicting personal defaults. The dataset used in the study comprises 7,542 individual customers collected from Vietnamese commercial banks and financial institutions between 2014 and 2022, with 12 features related to the financial and demographic characteristics of the borrowers. All customer-related information is fully anonymized and encrypted during the data collection process to ensure compliance with research ethics. The predictive models are evaluated based on six criteria: Accuracy, Precision, Sensitivity, Specificity, F1 score, and AUC. The results indicate that the LightGBM model has the best performance, demonstrating the ability to efficiently handle large and complex datasets. Additionally, the study identifies the five most significant factors influencing personal default risk: Monthly Liability, Credit Balance, Credit History Length, Max Credit Limit, and Yearly Income. However, the study’s limitations in the size and scope of the dataset may reduce the generalizability of the results when applied to other regions. These findings provide valuable insights that help financial institutions enhance their strategies for managing credit risk effectively.In credit granting activities, forecasting the probability of customer default plays a very important role. It helps banks and financial institutions to control credit risk and improve efficiency in building loan portfolios. This study focuses on evaluating the performance of four prominent boosting algorithms, including AdaBoost, XGBoost, LightGBM, and CatBoost, on a dataset of individual customers in the Vietnamese market. The research results indicate that LightGBM outperforms the other algorithms in predicting the probability of default. Additionally, the study identifies the five most important features affecting credit risk: Monthly Liability, Credit Balance, Credit History Length, Max Credit Limit, and Yearly Income. This research provides valuable practical insights for banks and financial institutions in developing and refining credit rating models, contributing to minimizing risks and making more effective lending decisions. In addition, evidence of the effectiveness of boosting algorithms in emerging financial markets like Vietnam may drive a stronger adoption of advanced machine learning tools in the lending process, fostering transparency and delivering benefits to both financial institutions and borrowers. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2465971 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2465971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2465971 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2525480_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Freeman Munisi Mateko Author-X-Name-First: Freeman Munisi Author-X-Name-Last: Mateko Author-Name: Alexis Habiyaremye Author-X-Name-First: Alexis Author-X-Name-Last: Habiyaremye Author-Name: Oladipo Olalekan David Author-X-Name-First: Oladipo Olalekan Author-X-Name-Last: David Author-Name: Gershon Obindah Author-X-Name-First: Gershon Author-X-Name-Last: Obindah Title: Analysis of public debt trends and poverty reduction in Malawi Abstract: How are poverty and debt related in the short run and long run in the context of a developing economy, such as Malawi? The novelty of the study is that it uses a unique data set spanning from 1983 to 2021 to examine the relationship between poverty and public debt in Malawi. The auto-regressive distributed lag (ARDL) model was employed in the study. Primary research findings revealed a positive relationship between public debt and poverty, both in the short run and the long run. An increase in public debt of 1% led to an increase in poverty levels by 37% in the short run and by 33% in the long run. These results imply that Malawi should address high public debt levels so as to improve the chances of attaining Sustainable Development Goal 1 of poverty reduction. In terms of policy recommendations, it was suggested that Malawi needs to develop an effective debt service plan and prioritize social security programs so that poverty levels are ultimately reduced. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2525480 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2525480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2525480 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2558028_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Iman Bastanifar Author-X-Name-First: Iman Author-X-Name-Last: Bastanifar Author-Name: Kashif Hasan Khan Author-X-Name-First: Kashif Hasan Author-X-Name-Last: Khan Author-Name: Shujaat Naeem Azmi Author-X-Name-First: Shujaat Naeem Author-X-Name-Last: Azmi Author-Name: Elham Opera Author-X-Name-First: Elham Author-X-Name-Last: Opera Title: Applying dynamic TOPSIS: a multi-criteria decision-making approach to economic corridors under uncertainty—the case of IMEEC Abstract: This study aims to evaluate the ambiguities inherent in establishing the India-Middle East-Europe Economic Corridor (IMEEC) and their effect on the expected rate of return for member countries. We focus on six countries along the proposed maritime route—France, India, Italy, Greece, Israel, and the United Arab Emirates. Our empirical methodology integrates a dynamic programming monetary model that incorporates shopping time with uncertainty, while the aggregated data on strategic indicators—namely, the Global Food Security Index, Resilience Index, and Service Area Index—is normalized and evaluated using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). The results indicate that increased ambiguity leads to a reduction in the expected rate of return, with estimated declines of 12% for France, 15% for India, 19% for Italy, 21% for Greece, 30% for Israel, and 86% for the United Arab Emirates. These findings underscore the critical role of strategic information in mitigating uncertainty and highlight that policy measures, particularly those aimed at enhancing the service area infrastructure in the UAE, can significantly improve investment outcomes in the IMEEC.This paper introduces a practical way to measure and manage ambiguity in large connectivity projects by combining a dynamic “shopping time” macro framework with TOPSIS and Shannon entropy to aggregate three strategic indicators—food security (GFSI), resilience (RI), and service area (SER)—for the India–Middle East–Europe Economic Corridor (IMEEC). We derive a new criterion, the Distance Elasticity of the Expected Rate of Return, showing how uncertainty directly erodes investors’ expected returns and how this effect differs by country. Empirically, greater strategic information (higher SER/RI/GFSI) is associated with higher expected returns, while weak service‐area accessibility is the dominant source of ambiguity (notably in the UAE). Policy implications are immediate: targeted upgrades to port‐connected service areas, resilience building, and coordinated food-security arrangements can materially reduce ambiguity, lower corridor transaction time, and raise expected returns, offering a decision tool for governments, financiers, and operators. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2558028 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2558028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2558028 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2451051_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Khwazi Magubane Author-X-Name-First: Khwazi Author-X-Name-Last: Magubane Author-Name: Precious Mncayi-Makhanya Author-X-Name-First: Precious Author-X-Name-Last: Mncayi-Makhanya Title: The dynamic influence of the global financial cycle: synchronization and impact on South Africa’s financial cycle Abstract: This study investigates the synchronization and impact of the global financial cycle on South Africa’s financial cycle, focusing on the period from 1990 to 2022. Given South Africa’s susceptibility to global financial fluctuations as an emerging market, the research explores how international financial conditions influence domestic financial stability. The study employs a Bayesian Time-Varying Coefficient Vector Autoregression together with key economic indicators such as economic activity, inflation and macroprudential policies which are incorporated to evaluate their changing effects over time. The analysis reveals a strong positive correlation between the global financial cycle and South Africa’s financial cycle, highlighting the significant influence of global financial trends on the country’s financial stability. The effects of economic activity, inflation and macroprudential policies also vary across different time periods, contributing to the shaping of the domestic financial cycle. This study contributes to understanding the global financial cycle’s impact on an emerging market, emphasizing the importance of integrating global financial conditions into domestic economic policy frameworks. The findings provide practical insights for South African policymakers, suggesting that adaptive macroprudential measures and effective management of inflation and capital flows can help mitigate the effects of international shocks and stabilize the financial system.This study examines the synchronization and dynamics of South Africa's financial cycle with the global financial cycle, addressing the vulnerability of emerging markets to global financial fluctuations. The findings reveal a strong co-movement between South Africa's financial cycle and the global financial cycle, with the domestic cycle rising following a global financial shock. Additionally, the analysis highlights that price shocks, monetary policy shocks, and macroprudential policy shocks reduce financial cycle activity, while economic activity shocks lead to an increase in financial cycle activity. These insights emphasize the critical role of global financial conditions in shaping South Africa's financial stability. Policymakers can leverage these findings to implement adaptive macroprudential measures, manage inflation effectively, and regulate capital flows to mitigate the impact of global financial shocks and enhance the resilience of the domestic financial system. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2451051 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2451051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2451051 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2459183_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jingyang Zuo Author-X-Name-First: Jingyang Author-X-Name-Last: Zuo Title: Impact of monetary policy on the stock market volatility: a GARCH-MIDAS approach in Malaysian economy Abstract: The volatility in the stock market plays an integral role in determining investment decisions. In emerging economies like Malaysia, this volatility in the stock market is determined by a number of monetary and fiscal factors. Monetary Policy, Money Supply, Inflation and Economic Growth all play a substantial role in shaping the stock market volatility. This particular study uses a GARCH-MIDAS model approach to understand the impact of these economic factors on stock market volatility. This particular model allows using both high-frequency data and low-frequency data in the same model. The research makes use of financial and stock market data and economic data from 2013 to 2023. Moreover, the findings suggest that monetary policy directly affects market volatility in the short run. However, in the long run, the monetary policy impacts the money supply within an economy. This money supply dictates the volatility within the stock market in such long terms. Moreover, factors such as economic development stabilise the volatility within such emerging markets. Based on the findings, countries like Malaysia should make a policy of gradual increase in the interest rates, because of the significant effect of shocks.The monetary policy is one of the most important economic tool present to the government to control the functioning of the economy. However, changes to the monetary policy can impact the supply of money as well as investment decisions. This in turn would also impact the stock market performance. Therefore, it is important to understand the impact of monetary policy on the stock market volatility in an economy. This work uses a dynamic GARCH-MIDAS approach to show the impact between monetary policy and stock market volatility in Malaysia. Moreover, an investment decision plan has also been presented for the practicality purposes. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2459183 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2459183 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2459183 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2440444_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohsin Showkat Author-X-Name-First: Mohsin Author-X-Name-Last: Showkat Author-Name: Razia Nagina Author-X-Name-First: Razia Author-X-Name-Last: Nagina Author-Name: Muzamil Ahmad Baba Author-X-Name-First: Muzamil Ahmad Author-X-Name-Last: Baba Author-Name: Ali Thabit Yahya Author-X-Name-First: Ali Thabit Author-X-Name-Last: Yahya Title: The impact of financial literacy on women’s economic empowerment: exploring the mediating role of digital financial services Abstract: This study investigates the impact of financial literacy on women’s economic empowerment, particularly through the use of digital financial services. It examines how improving financial literacy can enhance women’s engagement with digital financial platforms, facilitating their economic participation. Using structural equation modeling in Smart PLS 4, this research employs a quantitative approach grounded in an extended ‘Technology Acceptance Model (TAM)’ and the ‘Theory of Planned Behaviour (TPB)’ to analyze the relationships among financial literacy, digital financial services, and economic empowerment among women. The findings reveal that financial literacy significantly amplifies the benefits of digital financial services in promoting women’s economic empowerment. Specifically, a positive correlation exists between financial literacy and the usage of digital financial services, which in turn is linked to increased economic empowerment among women. These results underscore the critical importance of integrating financial literacy into digital financial services, as doing so can enhance women’s economic engagement and promote gender equality. The implications of these findings suggest that policymakers and practitioners should prioritize financial literacy initiatives within digital platforms to maximize their effectiveness. Future research should focus on identifying best practices for implementing financial literacy programs, as well as evaluating their long-term impacts on women’s economic outcomes. By establishing these connections, this study contributes to the broader discourse on women’s empowerment and economic growth, highlighting the necessity of targeted interventions that support financial literacy.This study explores the pivotal role of financial literacy in enhancing women’s economic empowerment through digital financial services. By integrating the Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB), the research demonstrates how improved financial literacy drives the adoption of digital financial platforms, ultimately fostering greater economic participation among women. The findings emphasize the importance of financial literacy initiatives within digital services to promote gender equality and sustainable economic growth. This research provides valuable insights for policymakers and practitioners, highlighting the need for targeted interventions to maximize the impact of digital financial inclusion on women’s empowerment. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2440444 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2440444 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2440444 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468888_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Moreblessing Muneyinazvo Mano Author-X-Name-First: Moreblessing Muneyinazvo Author-X-Name-Last: Mano Author-Name: Anthanasius Fomum Tita Author-X-Name-First: Anthanasius Fomum Author-X-Name-Last: Tita Author-Name: Adefemi A. Obalade Author-X-Name-First: Adefemi Author-X-Name-Last: A. Obalade Title: Value-adding effect of foreign direct investment inflow on manufacturing: evidence from South Africa Abstract: The manufacturing sector drives economic growth and structural transformation by fostering job creation, innovation and exports. Achieving and sustaining high-income status is challenging without manufacturing development, except for oil-rich nations and small financial hubs. Existing studies have overlooked the relationship between foreign direct investment and manufacturing value-added in emerging markets such as South Africa. This investigation examines the influence of foreign direct investment on manufacturing value added in South Africa. We utilised annual data from 1970 to 2020 and analysed them using linear and nonlinear autoregressive distributed lag (ARDL and NARDL) models to account for possible asymmetric effects. The ARDL analysis reveals that both foreign direct investment inflow and domestic investment negatively impact manufacturing value added in the short and long runs. Under asymmetry analysis, adverse shocks to foreign direct investment negatively affect manufacturing value added more than positive shocks. Positive and negative shocks in trade openness significantly boost MVA, highlighting globalisation’s role in economic growth. These findings underscore the nuanced dynamics between investment flows, trade openness and manufacturing performance. By incorporating asymmetric effects, our study provides new insights for policymakers. The results suggest that strengthening domestic resources mobilisation can support manufacturing growth, reduce reliance on external capital inflows and mitigate vulnerabilities linked to geopolitical risks. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468888 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468888 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571403_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mugdha Shailendra Kulkarni Author-X-Name-First: Mugdha Shailendra Author-X-Name-Last: Kulkarni Author-Name: Kanchan Pranay Patil Author-X-Name-First: Kanchan Pranay Author-X-Name-Last: Patil Author-Name: Dhanya Pramod Author-X-Name-First: Dhanya Author-X-Name-Last: Pramod Title: The role of robo-advisors in behavioural finance, shaping investment decisions Abstract: This study focuses on using artificial intelligence-driven financial robo-advisors in the investment decision-making domain by retail investors. Based on heuristic and prospect theory, the researcher aims to examine how AI-powered financial robo-advisors (AIPFRA), through their perceived interactivity, personalisation, autonomy, algorithm interpretation and structural assurance, influence retail investors’ loss aversion and overconfidence biases, ultimately enhancing robo-advisor usage in investment decision-making. Using purposive sampling, data from 461 retail investors were collected and analysed through structural equation modelling using SmartPLS 4.0. The results indicate that, except for structural assurance, robo-advisors’ perceived personalisation, interactivity, autonomy and algorithm transparency substantially mitigated investors’ overconfidence and loss-aversion biases, enhancing robo-advisor usage for investment decision-making. The study highlights the significance of financial literacy in moderating the relationship between biases and the use of robo-advisors. The study contributed by extending Heuristic and Prospect Theories to the AI-driven robo-advisor investment ecosystem. The study comprehensively explains how AI-powered robo-advisor design features impact investor psychology and adoption by bridging behavioural biases such as loss aversion and overconfidence with technology mechanisms like interactivity, personalisation, autonomy, algorithm interpretability and structural assurance. The results can help financial institutions implement user-centric advisory tools and help fintech developers create more bias-aware robo-advisors.This study offers essential insights into how the quality of AI-powered financial robo-advisors (AIPFRA) financial decision-making can be improved by either alleviating or exacerbating investors' behavioral biases. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571403 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571403 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2556283_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yajuan Li Author-X-Name-First: Yajuan Author-X-Name-Last: Li Author-Name: Xiaojuan Dong Author-X-Name-First: Xiaojuan Author-X-Name-Last: Dong Author-Name: Zhiliang Dong Author-X-Name-First: Zhiliang Author-X-Name-Last: Dong Author-Name: Ziyang Wang Author-X-Name-First: Ziyang Author-X-Name-Last: Wang Title: The dynamic correlation evolution between carbon prices and new energy stock indices: considering the impact of seasonal factors Abstract: As the global consensus on carbon reduction targets continues to deepen, the relationship between carbon prices and new energy stock indices has become increasingly close. Revealing the evolutionary characteristics of the short-term correlation between carbon prices and new energy stock indices is particularly important. This study takes the Guangdong carbon price and the CSI Mainland New Energy Theme Index as research samples and adopts Pearson correlation analysis combined with the sliding window method to portray the correlation between the two. Next, we construct a complex network and research the evolution between the two under the influence of seasonal factors. The research results show that the correlation is complex and time-varying. Five key correlation modes govern how the correlation evolves, and their conversions exhibit self-stabilizing characteristics. The modes with high media capabilities in the network control the transitions between modes and provide early warning information for policymakers and enterprises. In addition, under the effect of different seasonal climates and performance cycles, the correlations reflect seasonal evolutionary characteristics. According to the regularities of correlation evolution between carbon prices and new energy stock indices, policymakers can adjust short-term policies flexibly, and enterprises can adapt their production and energy conversion strategies.This article explores the dynamic correlation evolution between China's carbon price and the new energy stock index, which holds significant reference value for Chinese enterprises and investors and provides inspiration for the development of the global carbon market. Moreover, by introducing the perspective of seasonal factors, it provides a new research perspective for the dynamic correlation between carbon prices and the new energy stock index. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2556283 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2556283 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2556283 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559041_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Putri Meliza Sari Author-X-Name-First: Putri Author-X-Name-Last: Meliza Sari Author-Name: Nasri Bachtiar Author-X-Name-First: Nasri Author-X-Name-Last: Bachtiar Author-Name: Edi Ariyanto Author-X-Name-First: Edi Author-X-Name-Last: Ariyanto Author-Name: Febriandi Prima Putra Author-X-Name-First: Febriandi Prima Author-X-Name-Last: Putra Title: Digital inclusion and labor market outcomes for persons with disabilities in Indonesia: a comparative 3SLS study of entrepreneurial and non-entrepreneurial pathways Abstract: This study examines the economic potential of persons with disabilities (PWDs) in Indonesia using data from the 2023 National Labor Force Survey (Sakernas). A Three-Stage Least Squares (3SLS) analysis of 18,252 entrepreneurs and 6,375 non-entrepreneurs shows that education, digital access, and internet use consistently improve income and productivity. Training without digital integration reduces entrepreneurs’ productivity (−0.417), while digital-based training increases entrepreneurs’ income (0.246) and productivity (0.382), and also raises non-entrepreneurs’ income (0.099). Social participation affects entrepreneurs’ income and non-entrepreneurs’ productivity; work experience slightly increases income for non-entrepreneurs, and urban location increases income but not productivity. These findings emphasize the importance of inclusive education, digital-integrated training, and tailored technology access to improve PWDs’ labor market outcomes, with entrepreneurs benefiting most from digital training, while wage-employed individuals gain more from social and institutional support.This study highlights how digital inclusion, education, and technology-based training influence the income and productivity of persons with disabilities (PWDs) in Indonesia. Entrepreneurs gain the most from digital-integrated training, while wage-employed workers benefit more from social participation and institutional support. These findings guide inclusive labor policies and provide lessons for other developing countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559041 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559041 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468887_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Steve Springer Laryea Author-X-Name-First: Steve Springer Author-X-Name-Last: Laryea Author-Name: Kofi Agyarko Ababio Author-X-Name-First: Kofi Agyarko Author-X-Name-Last: Ababio Author-Name: Jules Clement Mba Author-X-Name-First: Jules Clement Author-X-Name-Last: Mba Author-Name: Marno Booyens Author-X-Name-First: Marno Author-X-Name-Last: Booyens Title: Maximising investors’ wealth in the cryptocurrency market: a behavioural perspective Abstract: This paper aims to investigate investors’ prospects in adding value to their portfolios by considering investors’ behavioural score (Cumulative Prospect Theory (CPT) score) and a clustering technique in the selection of assets. The universe of assets constitutes 63 cryptocurrencies sourced from Bloomberg from Jan 01, 2020, to July 31, 2022. The study period was segmented into two distinct and mutually exclusive periods, namely COVID-19, and post-COVID-19. Nine portfolios were constructed of which six were based on the CPT and the remaining on the K means Clustering technique. Using the copula-based Differential Evolution (DE) algorithm for the optimisation, the results show that portfolios consisting of assets with extremely high CPT scores were preferred during the post-COVID-19 and full sample periods, except for portfolios comprising assets with extremely low CPT scores during the COVID-19 period. The most optimised portfolio was composed of classified assets with extremely high CPT scores in the post-COVID-19 period. These findings provide intuitive and coherent investment strategies to guide investors in the cryptocurrency market.This research integrates investor behavioural insights, using Cumulative Prospect Theory (CPT) scores, with a clustering technique to optimise cryptocurrency portfolio selection. By analysing 63 cryptocurrencies over distinct COVID-19 and post-COVID-19 periods and employing a copula-based Differential Evolution algorithm, the study reveals that portfolios emphasising clustered assets with high CPT scores outperform others, particularly in the post-pandemic market. The integration of clustering techniques is pivotal, as it enables the identification of distinct asset groupings based on behavioural traits and risk profiles, thereby enhancing the precision of portfolio optimisation. This novel approach highlights the critical role of both behavioural factors and data grouping in asset allocation, challenging traditional investment models. The findings offer significant implications for academic research and practical investment strategies, providing a resilient framework for managing risk in volatile market conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468887 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468887 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2442747_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Oluwole Nurudeen Omonijo Author-X-Name-First: Oluwole Nurudeen Author-X-Name-Last: Omonijo Author-Name: Yunsheng Zhang Author-X-Name-First: Yunsheng Author-X-Name-Last: Zhang Title: China’s innovation model- lessons and applicability in Africa Abstract: Scholars and innovation economists are of the view that knowledge and technological externalities are what spur innovation in the knowledge-based global economy of today. Africa has been in a prime position to take advantage of technological advancements to boost economic competitiveness. This study analyzed how African states can benefit from the Chinese innovation model. We used data spanning from 2010 to 2023 from the Global Innovation Index and the ordinary least squares (OLS) econometric technique as an analysis framework to examine the model and variables. Interestingly, we discovered that the core challenges faced by Africa in terms of innovation were a result of deficiencies in the same core elements that China has adopted to spur innovation. The results further showed that all the variables suchch as education, human development, R&D spending, R&D tax incentives, subsidies and technology spillovers through FDI are positive factors that enhance innovation. Our findings suggest African countries should prioritize regional partnerships and integration in science and technology, investment in research and development, and the development of technology clusters to foster collaboration and knowledge sharing.This study provides knowledge and ideas on China’s innovation model towards Africa. This study conducted a thorough review of indicators such as R&D, innovation, technology, and the conventional theory of innovation to determine how China's innovation policies and practices have delivered verifiable innovation gains. We highlight the process in which China evolved an agrarian economy four decades ago and seek to consider its applicability in Africa. In addition, we analyzed the current state of African innovation and found that the core challenges Africa faces in terms of innovation stem from deficiencies in the same core elements that China has adopted to spur its innovation.The findings hold that education, human development, R&D spending, R&D tax incentives and subsidies, technology clusters, and spillovers as the key elements that boost innovation. Our findings suggest African countries should prioritize regional partnerships and integration in science and technology, investment in research and development, and the development of technology clusters to foster collaboration and knowledge sharing. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2442747 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2442747 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2442747 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2541263_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: William George Author-X-Name-First: William Author-X-Name-Last: George Title: Economic contributions of international tourism receipts in Tanzania: evidence from 1990–2023 Abstract: This study investigates the economic contributions of international tourism receipts to Tanzania’s economic growth from 1990 to 2023. It seeks to determine the nature and magnitude of the relationship between tourism and GDP growth. The study employs a Vector Error Correction (VEC) model to examine both the short-run dynamics and long-run equilibrium relationship between international tourism receipts and economic growth. Time series econometric techniques, including stationarity tests, cointegration analysis, and Granger causality, are applied to evaluate the interactions over time. The empirical findings confirm the existence of a long-run equilibrium relationship, with international tourism receipts exerting a positive influence on GDP growth. Granger causality tests reveal a unidirectional causality running from tourism to economic growth. The VEC model results indicate that deviations from the long-run equilibrium are corrected at a moderate speed. This paper contributes to the literature by providing updated empirical evidence over an extended timeframe, capturing the impacts of recent global shocks such as the COVID-19 pandemic. The study’s originality lies in its long-run analytical scope and its policy relevance for leveraging tourism as a strategic driver of sustainable development, economic diversification, and resilience-building in Tanzania. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2541263 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2541263 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2541263 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2532679_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Peter Burger Author-X-Name-First: Peter Author-X-Name-Last: Burger Author-Name: Lea Šlampiaková Author-X-Name-First: Lea Author-X-Name-Last: Šlampiaková Title: Examining the connection between economic sectors, the unemployment rate and real GDP per capita – the case of EU countries Abstract: This paper intends to bridge the gap in understanding the interaction between the sectoral division in the national economy, selected macroeconomic variables and innovation levels over time across EU countries. A comparative examination of theoretical knowledge in conjunction with an analysis of the empirical data was done. Descriptive statistics, cluster analysis and data mining were used to examine the data sets. Based on the results of the cluster analysis, the countries were divided into four clusters in each of the examined years. The results indicate a shift in the position of certain countries within the established clusters, reduction in the number of countries in both the elite and least performing clusters between 2010 and 2022 as well as an increase in the number of countries in the cluster with indicators most comparable to the average indicators of the EU27 countries. The countries within the elite cluster (except Malta) are distinguished by a significant percentage of the workforce engaged in the quaternary sector, elevated GDP per capita and pronounced degree of innovation performance. Conversely, the countries within the least efficient cluster exhibit a substantial share of people employed in the primary sector, relatively low GDP per capita and a low degree of innovative performance. This paper provides updated empirical insights into the changing economic dynamics and sectoral-macroeconomic connections within the EU. This highlights the alterations in economic and innovation patterns that can guide policymakers in formulating targeted interventions to optimize employment structures and improve competitiveness.This paper explores the relationship between sectoral divisions, unemployment rates, GDP per capita and innovation across EU countries between 2010 and 2022. The study uses cluster analysis to identify four distinct groups of countries, highlighting significant shifts in their economic structures and performance. Cluster A contains countries with the highest GDP per capita and lowest unemployment rates, showing the strong link between the quaternary sector and innovation. The findings emphasize the growing importance of the quaternary sector and innovation in driving economic success and well-being. Countries with stronger innovation performance and higher employment in knowledge-based sectors tend to exhibit better overall economic outcomes. The research suggests that boosting innovation, particularly through increased investment in high-tech and knowledge-driven industries, could enhance competitiveness and long-term prosperity. These insights can inform policy strategies for countries aiming to improve their economic performance and well-being, especially in the context of shifting global economic dynamics. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2532679 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2532679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2532679 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2516712_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdifatah Ahmed Hersi Author-X-Name-First: Abdifatah Ahmed Author-X-Name-Last: Hersi Author-Name: Ahmed Abdiaziz Alasow Author-X-Name-First: Ahmed Abdiaziz Author-X-Name-Last: Alasow Author-Name: Mahdi Mohamed Omar Author-X-Name-First: Mahdi Mohamed Author-X-Name-Last: Omar Title: Economic integration and trade performance: assessing the effectiveness of the East African Community as a trade bloc Abstract: This study examines the effectiveness of the East African Community (EAC) as a regional trade bloc by analyzing comprehensive trade data from 2009 to 2023. The research employs longitudinal analysis to assess trade patterns, infrastructure challenges and economic integration outcomes. Results reveal that Kenya dominates intra-regional exports, with trade volumes reaching $1.8 billion in 2022, primarily driven by exports to Uganda ($896 million) and Tanzania ($488 million). However, intra-EAC trade represents only 15–20% of member states’ total trade volumes, compared to the European Union (EU)’s 60–70% internal trade ratio. The study identifies significant infrastructure gaps, with only 36% of regional roads paved and transportation costs averaging $0.17–$0.25 per ton-kilometer nearly triple the $0.06–$0.09 observed in developed regions. External trade analysis shows China’s growing influence, with bilateral trade volumes increasing by 500–800% over the study period, reaching $8.2 billion with Kenya alone in 2022. The research also documents 100+ active non-tariff barriers (NTBs) and substantial power infrastructure deficiencies, with electricity access ranging from 75% in Kenya to below 40% in Burundi. These findings indicate that while the EAC has established foundational integration mechanisms, significant structural and policy reforms are needed to achieve deeper regional economic integration and more equitable distribution of trade benefits among member states.This study provides a comprehensive evaluation of the East African Community’s (EAC) performance as a regional trade bloc from 2009 to 2023, offering critical insights into the real-world outcomes of African regional integration efforts. By analyzing trade data, infrastructure conditions, and policy frameworks, the research highlights the EAC’s limited intra-regional trade 15–20% of total trade despite the implementation of customs and market protocols. The study reveals significant disparities among member states, with Kenya, Tanzania, and Uganda dominating trade flows, while Rwanda and Burundi remain marginal. These findings are essential for policymakers, regional planners, and development agencies seeking to promote inclusive growth and deepen integration under initiatives like the African Continental Free Trade Area (AfCFTA). The paper underscores the urgent need for targeted infrastructure investment, non-tariff barrier elimination, and institutional reforms to achieve a more balanced and competitive regional economy. The insights derived from this work directly inform efforts to enhance regional cooperation, reduce external trade dependency, and ensure equitable participation of smaller economies in regional value chains. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2516712 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2516712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2516712 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2484422_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Chun-Sung Huang Author-X-Name-First: Chun-Sung Author-X-Name-Last: Huang Author-Name: Ayesha Sayed Author-X-Name-First: Ayesha Author-X-Name-Last: Sayed Title: Novel forecasting of white maize futures volatility: a hybrid GARCH-based bi-directional LSTM model Abstract: Price volatility in grain markets, especially for maize, has substantial socio-economic impacts, particularly in low-income regions where food security remains a critical concern. Accurate forecasting of grain price volatility is therefore crucial in safeguarding the financial interests of commodity traders, as well as shielding consumers from detrimental effects of inflationary food prices. This study proposes a hybrid Bi-directional Long Short-Term Memory (BLSTM) model, integrated with generalised autoregressive conditional heteroscedasticity (GARCH)-type methods, to forecast white maize futures volatility in South Africa. By comparing the forecasting accuracy of the hybrid BLSTM model against several benchmarks, including standard LSTM and BLSTM models, our results demonstrate notable improvements in prediction accuracy, as shown through heteroscedasticity-adjusted performance metrics. The key contribution of this research is its enhancement of volatility forecasting by combining advanced machine learning with traditional econometric approaches, bridging a gap in predictive accuracy for commodity price dynamics. Additionally, this study supports the United Nations Sustainable Development Goals (SDGs), particularly Zero Hunger and Responsible Consumption and Production, by improving food price stability and risk management in agriculture. This approach exemplifies the evolving role of data science in financial analysis, offering market participants an effective tool to manage price risk and improve food security.Impact StatementThis study introduces a novel hybrid forecasting model that integrates GARCH-type econometric techniques with Bi-directional Long Short-Term Memory (BLSTM) neural networks to predict the realised volatility of white maize futures. As white maize is a staple food, accurate volatility forecasting directly contributes to improved food security and price stability. The model significantly outperforms traditional approaches and standard deep learning models across multiple forecast horizons, offering a powerful risk management tool for farmers, traders, and policymakers. By enhancing the accuracy of agricultural price forecasts, this research supports the United Nations Sustainable Development Goals (SDGs), particularly Zero Hunger (SDG 2) and Responsible Consumption and Production (SDG 12), while also demonstrating the value of advanced data science methods in addressing real-world socio-economic challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2484422 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2484422 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2484422 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2515498_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Zunaira Khadim Author-X-Name-First: Zunaira Author-X-Name-Last: Khadim Author-Name: Irem Batool Author-X-Name-First: Irem Author-X-Name-Last: Batool Author-Name: Minhas Akbar Author-X-Name-First: Minhas Author-X-Name-Last: Akbar Author-Name: Veronika Zidova Author-X-Name-First: Veronika Author-X-Name-Last: Zidova Author-Name: Asokan Vasudevan Author-X-Name-First: Asokan Author-X-Name-Last: Vasudevan Author-Name: Jin Zhang Author-X-Name-First: Jin Author-X-Name-Last: Zhang Title: Defining the logistics performance as factor of production: an evidence based analysis from developing countries Abstract: Economic globalization has been expedited by the logistics industry. This study investigates logistics performance (LP) as a factor of production in developing economies by incorporating the logistics performance index (LPI) as a factor in the Cobb-Douglas production function. We used the World Bank’s LPI for 2007, 2010, 2012, 2014, 2016, and 2018 as a measure of LP. The other control variables are capital stock, employed labor force, and financial development. The GMM technique was employed to mitigate unobserved heterogeneity. The findings show that LP contributes significantly to the overall economic growth (EG) of developing economies. Further analysis revealed that LPI components, custom procedures, and infrastructure were the most significant contributing factors to the growth process. Finally, the study also investigates the LPI coefficient for two groups (i.e. high and low LP countries) based on the LPI scores and finds that in countries with high (low) LPI, capital stock (employed labor force) contributes more to the EG. Overall, our findings strengthen the notion that, in the modern economic era, LP is a factor of production. This implies that policymakers should devise customized strategies to improve LPI and, in particular, custom procedures and infrastructure to boost EG in developing economies.This study reveals that logistics performance is a key driver of economic growth in developing countries. By showing how improvements in customs procedures and infrastructure boost productivity alongside capital and labor, it highlights logistics as an essential factor of production. These insights urge policymakers to focus on enhancing logistics systems to unlock greater economic potential and accelerate development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2515498 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2515498 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2515498 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2446657_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Zainuri Zainuri Author-X-Name-First: Zainuri Author-X-Name-Last: Zainuri Author-Name: Mohammad Zeqi Yasin Author-X-Name-First: Mohammad Zeqi Author-X-Name-Last: Yasin Author-Name: Rachmania Nurul Fitri Amijaya Author-X-Name-First: Rachmania Nurul Fitri Author-X-Name-Last: Amijaya Author-Name: Regina Niken Wilantari Author-X-Name-First: Regina Niken Author-X-Name-Last: Wilantari Author-Name: Sebastiana Vipindrartin Author-X-Name-First: Sebastiana Author-X-Name-Last: Vipindrartin Title: The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia Abstract: Government policies, such as subsidies and loan interest discounts, have stimulated the performance of micro, small, and medium enterprises (MSMEs). This study aims to examine the influence of government policies through subsidies on MSMEs in the creative industry by employing primary data from MSMEs in Jember Regency, East Java, Indonesia. We captured that subsidies for MSMEs will positively affect economic performance, as proxied by turnover and profit, only if incorporated into the interest rate discount program. This finding is robust from different measurement strategies, suggesting that subsidy provision as a macroeconomic policy is unreliable if applied in Silos. In addition, social capital plays a vital role in developing businesses in the creative industry. It opens new market opportunities, provides a free source of learning, and allows for collaboration that reduces the economic transaction costs of managing businesses.This study found that subsidies for micro, small, and medium enterprises (MSMEs) will only positively affect their performance if they incorporate the interest rate discount program. This finding contributes to existing literature on MSMEs notably for creative industry sector. The implication of this finding is that comprehensive macro policies, from the fiscal side in the form of subsidies and the monetary side in the form of stimulus to banks, are necessary to provide affordable credit or financing for creative industry MSMEs, with easy and affordable procedures so that transaction costsbecomelow. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2446657 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2446657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2446657 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2588921_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Suresh Gopal Author-X-Name-First: Suresh Author-X-Name-Last: Gopal Author-Name: Naveen Kumara R. Author-X-Name-First: Naveen Kumara Author-X-Name-Last: R. Author-Name: Naveenan R. V. Author-X-Name-First: Naveenan Author-X-Name-Last: R. V. Title: Crude complexities: sectoral asymmetries in the Indian stock market response to oil price changes Abstract: While many studies have examined the impact of oil price changes on stock market returns, most overlook the asymmetric impact on disaggregated sectoral indices. This study addresses this gap by examining the sector-specific impact of oil price changes in India, one of the largest oil-importing economies. Using monthly data from April 2008 to July 2025 collected from the Bloomberg database, we employed both linear and Non-linear ARDL models to explore the asymmetric impact in short- and long-run relationships. The findings reveal significant heterogeneity in the sectoral responses to oil price changes. While the FMCG, media and pharma sectors do not exhibit cointegration with oil prices, other sectors, namely banking, auto, metal, energy, IT, financial services, and real estate, asymmetrically responded to oil price changes. The negative oil price changes cause stronger and short-run sectoral responses than the positive changes, as confirmed by the Wald test and GIRFs. The error correction terms are negative and statistically significant for all the sectors, which confirms a long-run equilibrium and mean-reverting behaviour. This establishes that sectors react differently to positive and negative oil price changes in the long run. Investors must account for the non-linear relationship between these variables and take appropriate action when forming portfolio strategies. The results suggest that policymakers should monitor and find alternative energy sources to avoid sector-specific vulnerabilities during oil price fluctuations.This study uncovers strong asymmetric responses of Indian sectoral indices to oil price shocks, highlighting sectors that are most vulnerable during periods of energy volatility. The results provide policymakers with evidence to prioritise energy diversification, stabilise input-cost pressures, and strengthen sector-specific risk monitoring. By identifying which industries bear the highest exposure, the study supports more targeted policy interventions and informed macro-financial planning in an oil-dependent economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2588921 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2588921 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2588921 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555417_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bédi Guy Hervé Drama Author-X-Name-First: Bédi Guy Hervé Author-X-Name-Last: Drama Title: Re-examining the nexus of public investment efficiency and financing sources in Sub-Saharan Africa: do public-private partnerships crowd out other financing sources? Abstract: This study aims to analyze the effect of financing sources on the efficiency of public investment in sub-Saharan Africa. Based on an analysis of the World development indicators from 2003 to 2021, encompassing a sample of 28 countries in sub-Saharan Africa, a fractional regression was performed. The econometric estimates indicate that government debt, foreign direct investment (FDI), public-private partnerships (PPPs), and taxes all have a positive impact on the efficiency of overall public investments. Specifically, regarding sectoral public investments, government debt, PPPs, and taxes significantly enhance the efficiency of health investments by 35.9%, 21.7%, 1.4%, and 2.8%, respectively. In contrast, the corresponding figures for public investments in the education sector are 48.2%, 32.1%, 0.9%, and 2.7%. Furthermore, official development assistance (ODA) appears to negatively affect the efficiency of public investments in health and education, with reductions of 0.8% and 0.9%, respectively. Therefore, it is crucial to reconsider the implementation of PPPs in the education and health sectors across sub-Saharan African countries to achieve higher efficiency. Additionally, it is essential that developing nations utilize ODA with increased transparency.This research provides critical insights into optimizing public investment efficiency across 28 Sub-Saharan African countries by examining the role of different financing sources. The study's comprehensive analysis reveals that public-private partnerships (PPPs) significantly enhance investment efficiency in both health (21.7%) and education (32.1%) sectors, challenging conventional assumptions about financing mechanisms. The findings demonstrate that domestic financing sources—government debt and taxation—consistently outperform external funding, with government debt showing particularly strong effects (35.9% for health, 48.2% for education). Conversely, the research uncovers concerning evidence that official development assistance reduces efficiency in critical social sectors, suggesting potential dependency or misalignment issues. These empirical findings offer policymakers evidence-based guidance for restructuring financing strategies, emphasizing the strategic value of PPPs and domestic resource mobilization. The research contributes to development economics literature by quantifying financing source impacts and provides actionable recommendations for improving public service delivery efficiency across Sub-Saharan Africa, ultimately supporting better health and education outcomes for millions of citizens. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555417 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555417 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2469785_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Hassan Nuhu Wali Author-X-Name-First: Hassan Nuhu Author-X-Name-Last: Wali Author-Name: Tanima Dutta Author-X-Name-First: Tanima Author-X-Name-Last: Dutta Author-Name: Badayi Sani Author-X-Name-First: Badayi Author-X-Name-Last: Sani Author-Name: Jibril Mohamed Shiekh Isak Author-X-Name-First: Jibril Mohamed Shiekh Author-X-Name-Last: Isak Title: Impact of energy poverty on human capital: a cross-sectional analysis of the rural households in Kano State, Nigeria Abstract: This study examines the extent of energy deprivation and its impact on health and education outcomes of rural households in Kano State, Nigeria. The research employs a survey design by administering semi-structured questionnaires on rural households. Descriptive statistics and the Tobit regression model were utilized for data analysis. The paper develops a Multidimensional energy poverty index based on reviewing the existing literature to suit rural households in Nigeria. The findings of the paper reveal that a significant amount of households live in energy deprivation. However, the regression results show that energy poverty has a significant impact on the health and education outcomes of the household. Thus, access to clean energy is paramount for human capital development. Therefore, policymakers should intensively accelerate access to electricity and modern cooking facilities for rural households. The vulnerable groups have to be prioritized in the policy interventions for access to clean energy.This paper developed an index for measuring energy poverty that suits the situation of rural households in Sub-Saharan Africa. The study also provides insight into the effects of energy deficiency on education and health outcomes of rural households, helping policy-makers on human capital development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2469785 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2469785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2469785 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568643_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Muhammad Rizky Amin Author-X-Name-First: Muhammad Rizky Author-X-Name-Last: Amin Author-Name: Yunieta Anny Nainggolan Author-X-Name-First: Yunieta Anny Author-X-Name-Last: Nainggolan Author-Name: Raden Aswin Rahadi Author-X-Name-First: Raden Aswin Author-X-Name-Last: Rahadi Title: The digital transformation of investment behavior: a systematic review of gambling tendencies in modern financial markets Abstract: This systematic literature review investigates how digital transformation has influenced trading behavior and fostered gambling tendencies in contemporary financial markets. Analyzing 57 peer-reviewed articles (2008–2025), we examine the interplay between technological platforms, demographics, psychological factors, and market structures in shaping gambling-like trading patterns. Our findings indicate approximately 9.5% of investors display problematic trading patterns, with digital interfaces and social media significantly amplifying overconfidence, herding behaviors, and emotional trading decisions. Technological elements such as gamification features and instant trading capabilities create dopamine-driven feedback loops resembling traditional gambling environments. While younger investors show higher digital platform adoption and risk appetite, even financially knowledgeable investors demonstrate vulnerability to speculative behavior, particularly in cryptocurrency markets. We propose a comprehensive framework integrating behavioral finance theory, prospect theory, and gambling psychology to understand the growing convergence between investment and gambling behaviors. This framework offers implications for investor education, platform design ethics, and regulatory considerations in increasingly digitalized financial markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568643 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568643 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568643 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2437007_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Anindita Bhattacharjee Author-X-Name-First: Anindita Author-X-Name-Last: Bhattacharjee Author-Name: Jaya M. Prosad Author-X-Name-First: Jaya M. Author-X-Name-Last: Prosad Author-Name: Bikramaditya Ghosh Author-X-Name-First: Bikramaditya Author-X-Name-Last: Ghosh Title: Market persistence amidst financial crisis: an Indian investigation Abstract: This study examines persistence behavior of the Indian Stock Market during financial crises over the past decade (2012–2022). The investigation period encompasses significant events such as economic depression of 2013, demonetization and implementation of the Goods and Services Tax (2016–2017), the US-China Trade War (2018), and the COVID-19 pandemic (2021–2022). This study focuses on the dynamic persistence of various stocks by measuring the Hurst Exponent (HE) using the sliding window method and identifying herding patterns in the financial market. The technique is novel because it explains the time-varying degree of persistence during financial crises, anticipating future trends in the financial returns. The results classify stocks as either mean-reverting or trending. Moreover, the study also compares persistence for shorter and longer time windows, where the presence of higher persistence is observed as the window size is reduced. Furthermore, the majority of the stocks show high persistence in all crisis periods, with the highest value of HE during the economic downturn (2012–2014) and the post-COVID-19 era (2021–2022). Financial advisors can refer to HE values, assisting the investors with decisions such as ‘buy’, ‘sell’ or ‘hold’. Furthermore, a higher HE value can become an early warning signal for impending market stress in the form of bubbles or bursts.This study investigates persistence behavior of the Indian Stock Market during financial crises during 2012–2022. It measures persistence by computing both static and dynamic Hurst Exponent (H.E.) using rescaled range method. Computed results classify the stocks as mean-reverting, trending or random. It also reveals the time varying degree of persistence of each stock. Financial advisors can use the Hurst exponent for momentum trading. Advisers can benefit clients by providing buy and hold strategies, investing in less risky stocks, or increasing the fund for fixed returns to gain assured returns. Individual equity investors can use this knowledge to manage their funds, control their long-term and short-term investment goals, and their returns by applying a better hedging strategy for a safe and secured future. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2437007 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2437007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2437007 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2511881_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bing Chen Author-X-Name-First: Bing Author-X-Name-Last: Chen Author-Name: Frank P. Stafford Author-X-Name-First: Frank P. Author-X-Name-Last: Stafford Author-Name: Xiaohui Yang Author-X-Name-First: Xiaohui Author-X-Name-Last: Yang Title: Financial distress experiences and participation in the U.S. stock market Abstract: Few studies have examined how psychological distress stemming from past financial market experiences influences households’ future financial decisions. Our study addresses this gap. Based on estimates from the Panel Study of Income Dynamics (PSID), non-pension or direct stock market participation by families declined steadily, from approximately 30% in 2001 to around 17% by 2013, with no significant recovery during the market’s rise from 2013 to 2015. During both the dot-com recession and the Great Recession, smaller-balance stockholders were more likely to exit, often incurring realized capital losses. In the 2007–2009 period, stockholders with low net worth and income were more likely to experience an increase in short-term psychological distress. We hypothesize that small-scale investors, often compelled to sell during family liquidity crises, developed a negative perception of stock trading. This experience shaped small-scale investors’ memory, creating a form of confirmatory bias that fostered reluctance to re-enter the market. By contrast, wealthier families generally increased their holdings through each recession. Among the affluent who did exit, distress levels were lower and a return to market participation was more common. Using the PSID data, we assess participants’ distress scores and examine the relationship between stock market participation and past adverse experiences.This study highlights the persistent decline in direct stock market participation among families. Economic downturns disproportionately drove smaller-balance stockholders to exit the market, often at a loss, exacerbating financial strain and psychological distress. These negative experiences likely fostered a confirmatory bias, discouraging re-entry into the market. These findings underscore the need for policy initiatives to address barriers to market participation and promote financial resilience among vulnerable populations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2511881 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2511881 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2511881 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2594125_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohammed Elhaj Mustafa Ali Author-X-Name-First: Mohammed Elhaj Mustafa Author-X-Name-Last: Ali Title: Leveraging FDI for peacebuilding: evidence from youth employment dynamics in Sudan Abstract: This study investigates the role of foreign direct investment (FDI) in fostering peacebuilding in Sudan through its impact on youth employability. Utilizing time series data spanning from 1992 to 2023 and applying the Autoregressive Distributed Lag (ARDL) approach, the analysis reveals that both FDI and financial development significantly reduce youth unemployment in the long run. In contrast, higher inflation is found to exacerbate youth joblessness over the same period. Moreover, the results underscore the adverse effects of persistent youth unemployment on peacebuilding outcomes in both the short and long term. The findings suggest that the strategic mobilization of FDI can support peacebuilding by expanding employment opportunities for young people—a demographic critical to the country’s post-conflict recovery and long-term stability. By aligning investment policies with inclusive labor market goals, Sudan can leverage FDI as a tool not only for economic growth but also for promoting social cohesion and durable peace. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2594125 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2594125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2594125 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2483866_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sayed Gulzar Ganai Author-X-Name-First: Sayed Gulzar Author-X-Name-Last: Ganai Author-Name: Javid Ahmad Khan Author-X-Name-First: Javid Ahmad Author-X-Name-Last: Khan Title: An asymmetric NARDL approach to the J-curve phenomenon and export competitiveness in India-US trade Abstract: This study explores the asymmetric impact of export competitiveness on India’s trade balance with the United States (US) and examines the presence of the J-curve phenomenon from 1980 to 2023. Using the Non-linear Autoregressive Distributed Lag (NARDL) model, impulse response functions, and other econometric techniques, the study investigates both short- and long-run dynamics. The results reveal that India’s trade balance with the US is significantly influenced by the competitiveness of its manufactured exports and industrial production capacity. In the short run, a declining real exchange rate has a negative impact on the trade balance, which is consistent with the J-curve effect, while prior trade surpluses contribute to economic stability. In the long run, the analysis shows that a higher dollar-to-rupee exchange rate leads to an improvement in India’s trade balance, whereas a stronger rupee poses risks to sustaining this surplus. The findings also highlight that increased export competitiveness has strengthened India’s trade balance, even in the face of rising US industrial productivity, which typically boosts American exports to India. Conversely, reductions in US industrial output provide India with opportunities to capture a larger market share, further emphasizing the complex and dynamic relationship between export competitiveness, exchange rates, and trade balances. This research underscores the critical role of export competitiveness in shaping India’s trade balance with the US.This study explores the asymmetric impact of export competitiveness on India’s trade balance with the United States from 1980 to 2023, offering new insights into the dynamics of international trade. By utilizing the Non-linear Autoregressive Distributed Lag (NARDL) model and other advanced econometric techniques, the research uncovers both short- and long-term effects of exchange rate fluctuations, industrial output, and export competitiveness on India’s trade balance. The findings reveal the presence of the J-curve phenomenon and highlight the complex interplay between currency movements, export competitiveness, and the broader economic environment. This work is crucial for policymakers, as it underscores the importance of maintaining a competitive export sector to bolster India's trade balances and stabilize her economic growth. Moreover, the study provides valuable insights for businesses and economists seeking to understand the evolving relationship between India and the US in the context of changing geo-political cum economic conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2483866 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2483866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2483866 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2483867_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Richa Goel Author-X-Name-First: Richa Author-X-Name-Last: Goel Author-Name: Neeru Sidana Author-X-Name-First: Neeru Author-X-Name-Last: Sidana Author-Name: Anindita Bhattacharjee Author-X-Name-First: Anindita Author-X-Name-Last: Bhattacharjee Author-Name: Tilottama Singh Author-X-Name-First: Tilottama Author-X-Name-Last: Singh Author-Name: Manleenjot Kaur Author-X-Name-First: Manleenjot Author-X-Name-Last: Kaur Title: Shifting sands: how major events shape gold futures in the Indian commodity market Abstract: This research examines how significant world events affect the gold future commodity market, giving investors a grasp of the fundamental dynamics influencing precious metal investments in precarious market conditions. This paper evaluates the risk and return of gold futures in India from 2020 to 2024, focusing on significant events - COVID-19 pandemic, US Presidential election, Russia-Ukraine war, G20 summit, Israel-Hamas conflict, Ram Mandir inauguration, and the 2024 Assembly elections. Risk is measured using Garman- Klass Volatility, while returns are analysed using event study method using 1210 daily data points from the multi commodity exchange (MCX India). The market experienced a significant positive abnormal return in the adjustment window of the first wave of COVID-19, followed by the Russia-Ukraine and Israel Hamas wars and sensitive to geopolitical events providing policymakers and investors with insightful insights to improve their portfolio management during economic and political unpredictability. This study examines the impact of seven major global events on gold futures including the latest occurrences of 2024. Unlike previous research, which has often focused on historical events, this study integrates a comprehensive analysis of adverse and positive global disruptions, offering a fresh perspective on gold’s role as a haven asset and its price volatility.This study examines gold futures in India (2020–2024), revealing its sensitivity to major global events using MCX data. Significant abnormal returns emerged during crises like COVID-19, geopolitical conflicts, and other economic shifts. By integrating recent disruptions, this research offers fresh insights into gold's role as a hedge in volatile markets, aiding investors and policymakers in strategic decision-making. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2483867 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2483867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2483867 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2507135_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ali Imtiaz Author-X-Name-First: Ali Author-X-Name-Last: Imtiaz Author-Name: Chi Yuanying Author-X-Name-First: Chi Author-X-Name-Last: Yuanying Author-Name: Muhammad Farukh Shahzad Author-X-Name-First: Muhammad Farukh Author-X-Name-Last: Shahzad Author-Name: Abdul Raheel Author-X-Name-First: Abdul Author-X-Name-Last: Raheel Author-Name: Fahad Sabah Author-X-Name-First: Fahad Author-X-Name-Last: Sabah Author-Name: Raheem Sarwar Author-X-Name-First: Raheem Author-X-Name-Last: Sarwar Title: Mapping the intellectual structure of green economy and sustainability: a bibliometric analysis of global research trends and policies Abstract: The green economy has emerged as a pivotal framework for reconciling economic growth with sustainability, yet its global research landscape remains fragmented and under explored. This study addresses this gap through a comprehensive bibliometric analysis of 1,471 Scopus-indexed publications (2007–2024), employing VOSviewer and Python to map research trends, collaborations, and thematic clusters. The primary contributions of this work are threefold: First, it systematically quantifies global research disparities, revealing China’s dominance (38.8% of publications) and the under representation of developing nations. Second, it identifies interdisciplinary thematic clusters; renewable energy transitions, policy governance, and economic decarbonization; while exposing critical gaps in addressing social equity and localized strategies for low-income regions. Third, it proposes actionable policy pathways, including North-South research partnerships and digital technology integration such as, AI-driven governance, blockchain for transparency, to bridge these gaps. Findings highlight exponential growth in research post-2016, driven by global climate agreements, but emphasize persistent imbalances in geographic and thematic focus. By advocating for inclusive, interdisciplinary approaches, this study provides a road map for aligning green economy strategies with the United Nations Sustainable Development Goals (SDGs). The results underscore the urgency of prioritizing social equity alongside technological innovation to ensure sustainable global transitions.This research work provides actionable policy recommendations, including research partnerships and digital tools (AI-driven governance, blockchain for transparency), directly address these imbalances. By linking findings to the United Nations Sustainable Development Goals (SDGs), we offer a roadmap for bridging research-policy divides and ensuring equitable sustainability transitions. This work is pivotal for policymakers, researchers, and institutions seeking to rebalance global green economy efforts toward both environmental and social imperatives. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2507135 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2507135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2507135 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2528444_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdi Majid Yusuf Ibey Author-X-Name-First: Abdi Majid Yusuf Author-X-Name-Last: Ibey Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Abdikani Yusuf Abdulle Author-X-Name-First: Abdikani Yusuf Author-X-Name-Last: Abdulle Author-Name: Mahdi Mohamed Omar Author-X-Name-First: Mahdi Mohamed Author-X-Name-Last: Omar Title: The symmetric and asymmetric impact of trade openness, FDI, foreign aid on income inequality in Somalia: evidence from the ARDL and non-linear ARDL approaches Abstract: Addressing income disparity is essential to attaining long-term economic development and social fairness, especially in unstable governments, such as Somalia. This assessment, which investigates the period from 1980 to 2022—a period marked by significant political, economic, and social transitions—provides fresh insights into the dynamics of income inequality in Somalia, an area that has received little attention in earlier research. Using ARDL and NARDL models, this study examines the symmetric and asymmetric impacts of foreign direct investment (FDI), trade openness, and foreign aid on income inequality. The findings reveal that trade openness is associated with lower income inequality, with positive shocks narrowing disparities and negative shocks worsening them in both the short and long term. In contrast, foreign aid and FDI show no significant effect. Long-run inequality is significantly worsened by GDP per capita, inflation, and urbanization, while short-term effects are either insignificant or marginal. The study’s results highlight the need for targeted policies supporting trade openness with protections, encouraging sustainable urbanization, and adopting inclusive economic growth measures to minimize inequality. This study offers a comprehensive framework for policymakers to promote sustainable urban development, inclusive inflation control, and effective FDI and aid management, while tailoring growth strategies to ensure equity, redistribution, and reduced income inequality.This study makes a significant contribution to understanding the drivers of income inequality in fragile states by providing the first comprehensive time-series analysis of Somalia’s inequality dynamics from 1980 to 2022. By employing ARDL and NARDL models, the research reveals critical asymmetric effects of trade openness on income distribution while challenging assumptions about the effectiveness of foreign aid and FDI in reducing inequality. The findings underscore the importance of trade-led strategies combined with equitable growth policies and sustainable urban planning to reduce long-term disparities. The study equips policymakers with evidence-based guidance to design inclusive economic frameworks that address structural inequality in post-conflict and low-income settings like Somalia. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2528444 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2528444 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2528444 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2566950_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikani Salah Abdulle Author-X-Name-First: Abdikani Salah Author-X-Name-Last: Abdulle Author-Name: Abdi Majid Yusuf Ibey Author-X-Name-First: Abdi Majid Yusuf Author-X-Name-Last: Ibey Author-Name: Abdikadir Ahmed Mohamed Author-X-Name-First: Abdikadir Ahmed Author-X-Name-Last: Mohamed Author-Name: Mahdi Mohamed Omar Author-X-Name-First: Mahdi Mohamed Author-X-Name-Last: Omar Title: The impact of trade openness on private consumption in a heavily import-dependent country Abstract: Trade openness plays a pivotal role in shaping economic structures, particularly in fragile and import-dependent economies. Despite its importance, limited research has examined the direct effects of trade liberalization on private consumption in such contexts. This study addresses this gap by empirically investigating the relationship between trade openness and private consumption in Somalia, a country heavily reliant on imports and characterized by structural vulnerabilities. Using annual time-series data from 1980 to 2022, the study incorporates key macroeconomic variables trade openness, economic growth, inflation, population growth, foreign direct investment (FDI) and domestic investment and applies the Autoregressive Distributed Lag model, supported by Canonical Cointegrating Regression and Dynamic Ordinary Least Squares for robustness. Granger causality tests are employed to examine the directional relationships among variables. The results indicate that trade openness significantly enhances private consumption in both the short run and long run, driven by greater access to imported goods and services. Economic growth is the strongest determinant, while FDI contributes positively to private consumption. In contrast, domestic investment negatively affects consumption, reflecting a potential trade-off between current consumption and capital accumulation. Inflation has a negative short-run effect, while population growth appears statistically insignificant in the long run. Granger causality results highlight dynamic feedback mechanisms between trade openness, consumption and economic growth. These findings have vital policy implications: Somalia should enhance trade integration, stabilize inflation and attract responsible FDI to stimulate household demand and welfare. Data limitations beyond 2022 and unavailable variables like remittances or social services present future research opportunities.This study investigates the relationship between trade openness and private consumption in Somalia, a fragile and heavily import-dependent economy. Using annual data from 1980 to 2022 and advanced econometric techniques (ARDL, CCR, and DOLS), the research demonstrates that trade openness, economic growth, and foreign direct investment significantly enhance private consumption, while domestic investment exerts a negative effect. By highlighting the dual role of openness in expanding consumer access to goods and shaping broader macroeconomic dynamics, the study provides critical insights for policymakers seeking to balance growth, investment, and household welfare. The findings contribute to the limited body of literature on fragile states, offering evidence-based guidance for promoting inclusive economic development and resilience in Somalia and similar contexts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2566950 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2566950 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2566950 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2514683_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Goni Zougouri Author-X-Name-First: Goni Author-X-Name-Last: Zougouri Author-Name: Abdoul Karim Sawadogo Author-X-Name-First: Abdoul Karim Author-X-Name-Last: Sawadogo Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Author-Name: Bonaventure Ouedraogo Author-X-Name-First: Bonaventure Author-X-Name-Last: Ouedraogo Title: Fiscal space and the fight against terrorism in the countries of the Liptako-Gourma region Abstract: The security crisis has highlighted the urgent need to increase public funding in the defense and security sectors for countries facing terrorism. This study aims to analyze the bidirectional effects between fiscal space and counter-terrorism efforts in the Liptako-Gourma region. A fixed effects model with autocorrelation coefficients and AR (1) disturbances is applied to panel data covering the period from 2000 to 2021. The results show that expanding fiscal space is essential in a context of active terrorism. However, its effectiveness in combating terrorism depends on strong institutional quality. These findings underscore the need for a policy that combines good institutional governance with fiscal space expansion to effectively combat terrorism in the Liptako-Gourma region.This work on the effect of fiscal space in the fight against terrorism in the Liptako-Gourma region sheds new light on the need to mobilize internal resources (tax revenues) to defend and secure the region. The results obtained are in line with reality, insofar as these countries are committed to endogenous development. This development implies locally-thought-out strategies, with an effort to mobilize internal resources so as no longer to depend exclusively on external funding. The governments of these countries have already embarked on this path, and the results confirm the vision adopted, with the emphasis on the quality of institutional governance. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2514683 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2514683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2514683 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2492203_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Haga Elimam Author-X-Name-First: Haga Author-X-Name-Last: Elimam Author-Name: Halah Alattas Author-X-Name-First: Halah Author-X-Name-Last: Alattas Title: Foreign direct investment: a strategic approach towards sustainable economic growth in Saudi Arabia Abstract: Foreign direct investment (FDI) is pivotal in boosting export competitiveness in developing nations, making it a key driver of economic progress. This study investigates the influence of FDIs on fostering sustainable economic growth in Saudi Arabia from 1980–2022. The autoregressive distributed lag (ARDL) model investigates the long-run association between them. The findings of this research highlight FDI’s crucial role in Saudi Arabia’s economic strategy. It is observed that FDI contributes to sustainable economic growth as this research found a positive and significant impact of FDI on sustainable economic growth. Moreover, the Granger causality test also advocates the bi-directional flow of causality between FDI and sustainable economic growth. Overall, this research underscores the need for enhanced FDI inflows and the careful management of investments to prevent economic distortions. This study recommends accelerating economic reforms, improving the investment climate, and updating legislation to align with evolving local and global economic conditions, providing a roadmap for sustaining economic growth through strategic FDI.The research contributes by providing a focused investigation into the relationship between FDIs and sustainable economic growth in Saudi Arabia, offering insights into key factors influencing FDI and quantifying their role in long-term economic sustainability. It adds methodological value by employing Auto Regressive Distributed Lag analysis, offering understanding of the dynamics between foreign direct investment and economic growth Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2492203 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2492203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2492203 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2596196_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Enock Mwakalila Author-X-Name-First: Enock Author-X-Name-Last: Mwakalila Title: Monetary aggregates and private sector credit growth in tanzania: a causality and elasticity analysis Abstract: This study investigates the relationship between monetary aggregates and private-sector credit growth in Tanzania, focusing on the direction of causality and the magnitude of long-run effects. Using quarterly data and employing Granger causality tests alongside the Autoregressive Distributed Lag (ARDL) error correction model, the study examines the influence of narrow money (MN), broad money (BM), and extended broad money (EBM) on credit dynamics. The results reveal that narrow money and broad money significantly Granger-cause private sector credit, indicating a leading role of liquidity in driving credit expansion. Meanwhile, extended broad money, although not causally predictive, exhibits the strongest long-run elasticity. These findings confirm the importance of money supply in Tanzania’s credit market and highlight that broader liquidity sources, including institutional and foreign currency deposits, are essential for long-term credit growth. The study recommends that policymakers prioritize the management of both narrow and broad monetary aggregates to enhance credit access and support private sector-led development.This study provides new empirical evidence on how different forms of the money supply shape private-sector credit growth in Tanzania, a key driver of investment and economic expansion. By combining Granger causality tests with an ARDL error correction approach, the research demonstrates that changes in narrow and broad money reliably precede movements in credit, underscoring the importance of liquidity conditions in the short run. At the same time, broadened money, capturing a wider range of deposit sources, exerts the strongest long-run influence on credit growth, highlighting the structural role of deeper financial resources in sustaining lending. These findings offer actionable insights for monetary authorities: effective credit expansion requires coordinated management of both immediate liquidity and long-term monetary depth. The study therefore strengthens evidence-based policymaking for financial sector development and supports efforts to foster a more robust, private sector-driven economy in Tanzania. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2596196 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2596196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2596196 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2502437_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdullah M. Al-Awadhi Author-X-Name-First: Abdullah Author-X-Name-Last: M. Al-Awadhi Author-Name: Ahmad Bash Author-X-Name-First: Ahmad Author-X-Name-Last: Bash Author-Name: Barrak Algharabali Author-X-Name-First: Barrak Author-X-Name-Last: Algharabali Author-Name: Abdulrahman Y. Al-Failakawi Author-X-Name-First: Abdulrahman Y. Author-X-Name-Last: Al-Failakawi Title: From chaos to consensus: an event study on the Korean stock market Abstract: This study investigated the effects of political instability on stock market outcomes. We examined the effect of President Yoon Suk Yeol’s declaration of emergency martial law on South Korean stock market returns on December 3, 2024. The data cover the period from November 4, 2023, to December 12, 2024. We utilized an event study methodology for both mean-adjusted return and market models to calculate cumulative abnormal returns (CARs). Our results show that, on average, CARs ranged from −7.42 to −2.65 percent under the mean-adjusted return model and from −6.37 to −2.23 percent under the market model. This result suggests that the declaration of martial law had a significant negative effect on stock market returns. In addition, we examined the impact of the event on sector returns as well as on tercile portfolios formed by firm size. We found that sector returns react differently to the event. Under both the mean-adjusted return and market models the most negatively affected sector was the energy sector, whereas the least affected sector was the financial sector. In terms of market capitalization, under both models, the event affected the portfolios of small and medium-sized firms significantly and more negatively than those of large firms.This research highlights the significant impact of political turmoil on stock market performance, with a particular emphasis on South Korea's experience when emergency martial law was imposed. The results show an obvious negative impact on total market returns, with significant variations between industries and company sizes. While the financial and technological industries shown higher resilience, the energy industry and smaller businesses were most negatively impacted. These findings provide insightful information for investors, legislators, and risk management experts about the significance of understanding sector-specific and size-related market sensitivities during times of political turmoil. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2502437 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2502437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2502437 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559043_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Rose Kibuuka Nakimu Author-X-Name-First: Rose Kibuuka Author-X-Name-Last: Nakimu Author-Name: John Bbale Mayanja Author-X-Name-First: John Bbale Author-X-Name-Last: Mayanja Author-Name: Aisha Nanyiti Author-X-Name-First: Aisha Author-X-Name-Last: Nanyiti Title: A moderation analysis of the effect of international tourism on economic growth in Sub-Saharan Africa Abstract: While the direct effect of international tourism on economic growth has been widely studied, limited attention has been given to the macroeconomic conditions that moderate this effect. This study fills this gap by examining the moderating roles of foreign direct investment (FDI), internet access, exchange rates and trade openness on the tourism-growth effect across 41 Sub-Saharan African countries from 2007 to 2019. Using the two-step system Generalized Method of Moments estimation, the analysis utilizes two alternative measures of tourism: international receipts and arrivals. Results from the model using tourism receipts reveals an initially insignificant effect, which becomes positive and statistically significant when interacted with FDI, internet access and exchange rates. Conversely, the model that uses tourist arrivals shows a consistently positive and significant effect across both baseline and interaction-augmented specifications. Additionally, all interaction terms yield positive coefficients, except for trade openness, which is negative, highlighting the importance of complementary macroeconomic factors. These findings support the formulation of integrated policy frameworks that align tourism with investment, digital infrastructure and exchange rate strategies to maximize tourism-induced growth outcomes.The article explores the moderation factors that condition the effect of international tourism on economic growth in Sub-Saharan Africa (SSA). The findings indicate that the tourism growth effect in SSA is amplified by higher levels of foreign direct investment inflows, technological advancement and a competitive exchange rate. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559043 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559043 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2582275_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Shame Mugova Author-X-Name-First: Shame Author-X-Name-Last: Mugova Author-Name: Sheunesu Zhou Author-X-Name-First: Sheunesu Author-X-Name-Last: Zhou Author-Name: Reward Utete Author-X-Name-First: Reward Author-X-Name-Last: Utete Author-Name: Kehinde Damilola Ilesanmi Author-X-Name-First: Kehinde Damilola Author-X-Name-Last: Ilesanmi Author-Name: Mthuthuzeli Qwabe Author-X-Name-First: Mthuthuzeli Author-X-Name-Last: Qwabe Title: Impact of ESG factors on profitability: an empirical analysis of JSE-listed firms in South Africa Abstract: The study examines the relationship between environmental, social, and governance (ESG) activity and firm shareholder wealth. We investigate whether ESG performance contributes to shareholder value creation and whether a firm’s investment in ESG might reduce shareholder returns in the short run. Despite a growing body of research on ESG performance, there remains a lack of consensus on its impact in emerging economies. Our sample includes a panel of 74 Johannesburg Stock Exchange (JSE)-listed firms in South Africa over the period 2010–2022. We estimate panel regressions for disaggregated data via different industry groupings. The disaggregated data analysis shows mixed results concerning the impact of ESG factors on returns on equity and share returns. For example, financial institutions were found to have a negative relationship between ESG performance and return on equity, whereas other non-financial companies have a positive relationship between ESG performance and return on equity. Different ESG factors influence returns on equity and share returns differently. This study contributes to the literature by offering fresh empirical evidence from South Africa and uncovering the nuanced industry-specific effects of ESG activities, thus providing valuable insights for policymakers, investors, and corporate decisionmakers.This study advances understanding of how environmental, social, and governance (ESG) performance influences firm profitability in an emerging market. Using evidence from JSE-listed firms, it reveals industry-specific effects, showing ESG can enhance or reduce returns depending on sector dynamics. The findings inform policymakers, investors, and corporate leaders seeking to integrate sustainability with financial performance in South Africa’s evolving economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2582275 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2582275 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2582275 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2599566_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Foday Kamara Author-X-Name-First: Foday Author-X-Name-Last: Kamara Author-Name: Seth Omondi Gor Author-X-Name-First: Seth Author-X-Name-Last: Omondi Gor Author-Name: Daniel Abala Okado Author-X-Name-First: Daniel Author-X-Name-Last: Abala Okado Title: An empirical investigation of current account balance and economic growth in Sierra Leone: evidence from GARCH-model and VEC-model Abstract: This research examines the relationship between current account balances (CABs) and economic growth in Sierra Leone from 1980 to 2024, utilizing GARCH and VECM time series models. The outcomes reveal that persistent CABs, exchange rate volatility (EXVOL), inefficient allocation of foreign direct investment (FDI) and a rising public debt (PD) burden significantly impede lasting growth. Gross capital formation (GCF) hinders growth, suggesting a weak financial sector and an ineffective monetary policy stance. Advancements in terms of trade (ToT) are the only indicators with a lasting, positive impact on growth. In the transitory period, the economy corrects deviations from long-term equilibrium at a modest 9.12% rate, with capital formation solely showing a significant positive effect. These results suggest the need for sound macroeconomic policies to enhance stability and growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2599566 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2599566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2599566 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2484651_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Amanuel Kussia Guyalo Author-X-Name-First: Amanuel Kussia Author-X-Name-Last: Guyalo Title: Food security and its determinants among rural households in Gambella region, Ethiopia Abstract: The aim of the research is to analyze demographic, socioeconomic, environmental, and institutional factors affecting the food security status of rural households in Gambella region. To attain the aim, cross-sectional data were gathered from 476 respondents drawn through a systematic random sampling strategy. Data were collected using an interview schedule questionnaire. A multiple regression model was used to identify the factors that affect the food security status of households, while principal component analysis was used to construct food security index. The findings showed that most rural households (51.1%) experienced food insecurity in nearly every dimension of food security. Regression results indicated that gender, marital status, educational level, farming system, farmland size, livestock holding, wealth status, access to credit, improved seed utilization, and social capital positively affect households’ food security status, whereas family size, commercial farming, market distance, and natural shocks negatively influence food security. The results offer important insights into how demographic, socioeconomic, institutional, and environmental factors shape households food security by examining all four dimensions of food security. Therefore, in order to improve rural households' food security, concerned regional development actors should improve households’ access to agricultural technologies and financial services, build their capacity, and expand their livelihood opportunities.This study highlights the need of addressing several dimensions of food security and provides useful information regarding the main determinant factors influencing food security status of rural households in Gambella region. By using quantitative analysis, it offers a deep understanding of how different demographic, socioeconomic, institutional, and environmental factors affect the food security of rural households that rely on rain-fed subsistence farming. The results have important policy implications for agrarian economies, underlining the need to support livelihood diversification initiatives, increase rural households' access to financing, land, and technologies, and improve the quality of rural human capital. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2484651 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2484651 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2484651 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2581353_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Srishty Author-X-Name-First: Srishty Author-X-Name-Last: Author-Name: Muhammed Navas T Author-X-Name-First: Muhammed Navas Author-X-Name-Last: T Title: Macroeconomic indicators and machine learning for financial bubble detection in the Indian stock market Abstract: This study investigates financial bubbles in the Indian stock market using the NIFTY 50 index and macroeconomic indicators. Employing the Backward Sup Augmented Dickey–Fuller test, we identified significant bubble occurrences in 2011, 2014, 2016, 2018, 2020 and 2021. Subsequently, supervised machine learning models, including SVM, Voting Classifier and XGBoost, enhanced by PCA for dimensionality reduction and ADASYN for class balancing, were developed to predict future bubbles, achieving a 96% accuracy and an F1-score of 0.98. While these models demonstrate impressive predictive power, understanding the psychological factors driving investor behavior remains crucial. This research underscores the importance of integrating machine learning with insights into human psychology for effective financial decision-making. The use of PCA with ADASYN in conjunction with ensemble learning (Voting Classifier) is a novel approach for bubble detection in the Indian market context.This study explores how macroeconomic trends can help predict the formation of financial bubbles in the Indian stock market. By combining economic theory with modern machine learning models like XGBoost, SVM, and KNN, it shows that shifts in key economic indicators often signal when markets are moving toward instability. The research not only deepens our understanding of how bubbles form but also highlights how data-driven tools can support better decisions for investors, policymakers, and regulators. In doing so, it bridges the gap between traditional finance and technology to promote a more stable and resilient financial system. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2581353 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2581353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2581353 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2489708_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Rampilla Mahesh Author-X-Name-First: Rampilla Author-X-Name-Last: Mahesh Author-Name: Anamika Kumari Author-X-Name-First: Anamika Author-X-Name-Last: Kumari Author-Name: Debabrata Sharma Author-X-Name-First: Debabrata Author-X-Name-Last: Sharma Author-Name: Sreelakshmi N Author-X-Name-First: Sreelakshmi Author-X-Name-Last: N Author-Name: Ranjana Ramesh Author-X-Name-First: Ranjana Author-X-Name-Last: Ramesh Title: Predicting financial distress in emerging markets: the case of Indian small enterprises Abstract: AbstractThe present study examines the factors leading to financial distress among small enterprises in India. The CMIE Database was used to extract data from 2008 to 2022. A total of 946 companies’ data has been extracted; however, due to the missing data, 547 companies’ data were used for the analysis. The Springate S-Score is used to classify firms as healthy or distressed, and the logit regression is used to predict the financial health of small firms by using financial ratios, firm-specific, and macroeconomic variables. The findings revealed that interest expense ratio, current ratio, leverage ratio, total asset turnover ratio, size of the company, book value of equity, GDP growth, inflation, and economic policy uncertainty have significance in predicting a small company’s financial health position. Model 1 has an accuracy rate of 92.7 percent, and Model 2 corroborated the robustness of the findings. The present study addresses an essential requirement for understanding the economic health of small companies in emerging economies like India. At the same time, it provides valuable insights for small companies, investors, financial analysts, and policymakers to improve prediction accuracy and develop strategies to mitigate the risk.Impact statementThis study addresses a critical gap in financial distress prediction by focusing on small companies in emerging markets like India, which have been underrepresented in prior research. By integrating financial, firm-specific, and macroeconomic variables, the study develops highly accurate predictive models (Model 1: 92.47%, Model 2: 92.4%) that identify key drivers of financial instability, such as liquidity ratios, leverage, profitability, and external economic factors like GDP growth and inflation. The research holds significant academic and practical value. For financial institutions, the models enhance credit risk assessment for small businesses, while policymakers can leverage insights to design targeted support mechanisms. Small business owners gain actionable knowledge on financial health indicators, enabling proactive risk management. Additionally, the study underscores the importance of macroeconomic stability in safeguarding small enterprises, offering policymakers evidence-based strategies to mitigate economic volatility. This research bridges theory and practice to enhance small business resilience in emerging markets. By identifying key financial distress predictors, it equips stakeholders with actionable tools for informed decision-making and sustainable growth strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2489708 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2489708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2489708 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2461337_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Madhukara Nayak Author-X-Name-First: Madhukara Author-X-Name-Last: Nayak Author-Name: Pushparaj M. Nayak Author-X-Name-First: Pushparaj M. Author-X-Name-Last: Nayak Author-Name: Harisha G. Joshi Author-X-Name-First: Harisha G. Author-X-Name-Last: Joshi Title: Digital platforms’ use in SMEs – A critical analysis of entrepreneurs’ behaviour Abstract: Small and medium enterprises (SMEs) have greatly benefited from digital technology platforms, enabling entrepreneurs to connect directly with suppliers and buyers, fostering efficient communication and expanding market reach. These platforms equip SMEs with tools and resources to compete with larger organizations, driving innovation and growth. This study examines the role of age, gender, and education as moderators in the adoption of digital platforms by SME entrepreneurs in India. A theoretical model, grounded in existing literature, was tested using PLS-SEM with a sample of 700 startup entrepreneurs. The findings indicate that adopting digital platforms significantly impacts the antecedents of SME entrepreneurship intention, which in turn strongly influence the intention to adopt these platforms. The proposed model explains 63% of the variance in adoption intention. The study also highlights how demographic moderators shape digital adoption, offering insights into the evolving profile of SME entrepreneurs. These results provide valuable guidance for policymakers, business owners, and academics in shaping strategies to support SMEs in a rapidly digitalizing business environment. This research contributes to understanding the interplay between demographic factors and digital platform adoption, aiding stakeholders in fostering SME growth and innovation through targeted interventions.This study explores the role of digital technology platforms in transforming small and medium enterprises (SMEs) in India, focusing on how entrepreneurs’ age, gender, and education influence the adoption of these platforms. By employing a robust theoretical model validated through PLS-SEM analysis of 700 startup entrepreneurs, the research provides critical insights into the evolving demographic profile of SME entrepreneurs in a rapidly digitalizing economy. The findings reveal significant relationships between demographic moderators and digital platform adoption, emphasizing the transformative potential of digital tools for innovation and market expansion. This work offers valuable guidance for policymakers, business leaders, and academics, enabling them to develop targeted strategies to support SME growth and competitiveness in emerging markets. It contributes to a deeper understanding of digital entrepreneurship in India and provides a framework for fostering inclusivity and adaptability in the global SME ecosystem. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2461337 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2461337 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2461337 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2468882_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Faiza Husnayeni Nahar Author-X-Name-First: Faiza Husnayeni Author-X-Name-Last: Nahar Title: Remittances and poverty in ASEAN Abstract: Remittances have been reported as a powerful and effective tool for alleviating poverty in developing countries, including those in the Association of Southeast Asian Nations (ASEAN). An increase in income level through remittances leads to a positive change in the overall economic conditions of migrant households. They can fulfill the consumption needs and even save and invest their money as long-term goals. Hence, remittances can help migrant families escape financial issues or poverty traps. This study aims to estimate the effect of remittances on poverty levels and poverty depth in six ASEAN countries, they are: Indonesia, Thailand, the Philippines, Malaysia, Laos, and Vietnam, from 1984 to 2019. The second objective is to propose policy recommendations to sustain the impact of remittances on reducing poverty. The Ordinary Least Square (OLS) and Instrumental Variable (IV) estimation methods were conducted in this study. The findings reveal that an increase in remittances contributes more to reducing the poverty headcount than the poverty gap. The IV result also indicates a larger impact compared to OLS result, confirming that remittances are endogenous to poverty. Notably, remittances consistently demonstrate positive impacts in poverty reduction when instrumented using four variables: distance, educational attainment, government stability, and banks.This study reveals that remittances significantly reduce poverty in ASEAN countries. However, their effectiveness varies due to differences in data availability and financial infrastructure. The study recommends financial literacy programs for remittance-receiving households, investment in education and vocational training for potential migrants, and expanding future research to include more ASEAN countries. These measures aim to maximize the positive impact of remittances on poverty reduction in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2468882 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2468882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2468882 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2549934_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ismail Adelopo Author-X-Name-First: Ismail Author-X-Name-Last: Adelopo Author-Name: Xiaojun Luo Author-X-Name-First: Xiaojun Author-X-Name-Last: Luo Author-Name: Sony Stephen Author-X-Name-First: Sony Author-X-Name-Last: Stephen Title: Connectedness between sectoral cryptos and counterpart stocks Abstract: This study examines the interconnection between sectoral cryptocurrencies and their corresponding stocks across 14 industries from 2022-2024. Using wavelet coherence, we evaluate crypto-stock interconnectedness across multiple investment frequencies and timescales and identify cross-sector patterns using k-means clustering of coherence maps. We conduct two types of analyses: (1) a within-sector dynamics, assessing time-varying connectedness between each crypto-stock pair; and (2) cross-sector grouping to uncover common regimes. Results show weak, fragmented, and short-lived in cloud computing, telecommunications, gaming and gambling, with only sporadic bursts. In contrast, supply chain and education exhibit strong, persistent long-term coherence. Insurance, cybersecurity, and e-commerce display episodic, event-driven coherence, with peaks around policy shifts and major sector news. These findings highlight that crypto-stock connectedness is sector- and horizon-dependent rather than uniform. The evidence informs sector-specific risk management, portfolio construction, and timing of tokenisation strategies, and supports more tailored regulatory oversight.This paper delivers the first systematic, sector‐level map of how cryptocurrencies and their counterpart stocks move together across fourteen industries. Using wavelet coherence and wavelet local multiple correlation over 2022-2024, and k-means clustering of the coherence maps, we uncover three distinct and policy-relevant connectedness regimes. Cluster 1: Persistent, long-horizon co-movement (notably in real estate, supply chain, and education); Cluster 2: Episodic, event-driven alignment across horizons (insurance, cybersecurity, e-commerce, travel services, and parts of real estate/energy/automotive); and Cluster 3: Weak, fragmented, short-lived links (cloud, telecommunications, gaming, gambling, and parts of healthcare/energy/automotive). The study results show that crypto-stock interdependence is shaped by sector structure and time scale. For practitioners, the taxonomy guides risk management, portfolio construction, and tokenisation strategy: treat Cluster 0 as integrated exposures requiring cycle-aware hedging; time deployments and offerings tactically in Cluster 1; and emphasise operational blockchain gains with limited market-spillover risk in Cluster 2. For regulators, evidence of persistent sectoral integration supports coordinated oversight to mitigate contagion during macro stress, while episodic sectors call for event-sensitive surveillance. Methodologically, our combined wavelet–clustering framework offers a blueprint for monitoring sectoral crypto-stock connectedness as markets evolve, enabling more tailored and data-driven decisions by investors, firms, and policymakers. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2549934 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2549934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2549934 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2521465_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Joseph A. Mauro Author-X-Name-First: Joseph A. Author-X-Name-Last: Mauro Title: The effects of intergenerational income mobility and per pupil education spending on economic growth Abstract: Intergenerational income mobility is often studied in the context of inequality, but it also plays a critical role in long-term economic development. This study introduces an endogenous growth model to explore how intergenerational income mobility affects macroeconomic growth. In the model, individuals earn wages based on their education and skills, with the accumulation of human capital influenced by inherited abilities, as well as public and private educational investments. A key finding is that economies that allocate more resources to primary and secondary education achieve higher levels of both absolute and relative income mobility, signaling a better alignment of individuals with suitable occupations. This increased mobility, in turn, drives greater economic growth and higher educational attainment. The results highlight intergenerational mobility as a crucial factor for economic growth, providing valuable insights for public policy design.This study makes a significant contribution to understanding the macroeconomic consequences of intergenerational income mobility, particularly in the context of public education investment. By developing an endogenous growth model that integrates multiple regional economies, this study demonstrates that higher spending on K-12 education enhances both absolute and relative intergenerational income mobility. This increased mobility leads to more efficient talent allocation, higher college attainment rates, and ultimately, faster economic growth. The model’s predictions are empirically validated using U.S. commuting zone data, reinforcing the relevance of its findings. The study also highlights the redistributive benefits of centralized education finance policies in reducing regional inequality and promoting long-term economic performance. These insights provide strong theoretical and empirical foundations for policy interventions aimed at improving opportunity equality through public education investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2521465 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2521465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2521465 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2485393_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Liebo Rong Author-X-Name-First: Liebo Author-X-Name-Last: Rong Author-Name: Fayaz Hussain Tunio Author-X-Name-First: Fayaz Hussain Author-X-Name-Last: Tunio Author-Name: Qingran Guo Author-X-Name-First: Qingran Author-X-Name-Last: Guo Author-Name: Agha Amad Nabi Author-X-Name-First: Agha Amad Author-X-Name-Last: Nabi Author-Name: Kewal Talreja Author-X-Name-First: Kewal Author-X-Name-Last: Talreja Title: Impacts of financial risk and economic crime on corporate social responsibility in Chinese firms Abstract: This study empirically examines the complex relationship between financial risk, economic crime, and Corporate Social Responsibility (CSR) among 435 firms listed on the Shenzhen Stock Exchange of China from 2010 to 2021. Utilizing Propensity Score Matching (PSM), logistic regression, and the Two-Stage Least Squares (2SLS) models were used to analyze the dynamics of these variables. The results reveal that Financial Risk (FR) has a significant positive relationship with CSR, suggesting that higher financial risk is associated with increased CSR activities. Similarly, Gross Domestic Product (GDP) and Inflation (INF) also exhibit positive associations with CSR, indicating that economic growth and inflationary pressures drive greater corporate responsibility. The negative impact of economic crime on CSR suggests that improving governance and reducing corruption could lead to more corporate responsibility. Interest Rates (IR) further enhance CSR, showing a strong positive effect. All relationships are statistically significant at the 1% level, highlighting the robustness of these findings. This study underscores the importance of economic stability and the role of financial risk in fostering CSR while emphasizing the detrimental effect of economic crime on corporate responsibility. These insights underline the dual benefits of promoting CSR as a mechanism for financial stability and crime reduction, which has significant implications for China’s broader economic landscape.This study explores the intricate relationship between financial risk, economic crime, and Corporate Social Responsibility (CSR) among firms listed on the Shenzhen Stock Exchange. Using robust econometric techniques, including Propensity Score Matching (PSM) and Two-Stage Least Squares (2SLS), the findings reveal that financial risk positively influences CSR, while economic crime significantly undermines corporate responsibility. The results underscore the critical role of governance, economic stability, and regulatory frameworks in shaping CSR practices. This research contributes to the broader discourse on corporate ethics by demonstrating how CSR can serve as both a risk-mitigation strategy and a tool for enhancing financial resilience. The insights gained hold significant implications for policymakers, corporate leaders, and regulators seeking to promote sustainable business practices and economic stability in China and beyond. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2485393 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2485393 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2485393 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2549933_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kulnicha Meechaiyo Author-X-Name-First: Kulnicha Author-X-Name-Last: Meechaiyo Title: To hoard or not to hoard? Political uncertainty and corporate cash holdings in emerging Asian economies Abstract: This study aims to examine the impact of political uncertainty on corporate cash holdings across eight Asian emerging economies from 1990 to 2023, using data on national elections and corporate financial data. We focus on two distinct electoral systems: a presidential or legislative electoral system (in Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand) and an assembly-elected presidential system (in the People’s Republic of China), to explore how these systems influence corporate cash holdings. Using fixed effects regressions, the study estimates the sensitivity of cash holdings to cash flows during election periods, showing that cash holdings vary not only by electoral system but also by firm size. The results show that firms in presidential or legislative systems exhibit higher cash flow sensitivity during elections, while firms in the assembly-elected system (China) show negative sensitivity. In addition, this study presents an in-depth examination of close election results and coup d’état events, studying their impacts on corporate cash-holding strategies. These findings show how elections shape corporate financial strategies, contributing to the literature on political uncertainty and its differential impacts on corporate behaviour across different political contexts.This study has an impact in demonstrating how political uncertainty affects the cash flow sensitivity of cash holdings in emerging Asian economies. The findings show that election cycles, electoral systems, and firm size play an important role in driving precautionary or policy-driven cash strategies. The study supports managers, investors, and policymakers in strengthening financial resilience under political risk. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2549933 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2549933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2549933 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494134_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Phuong Anh Nguyen Author-X-Name-First: Phuong Anh Author-X-Name-Last: Nguyen Author-Name: Hoan Phuong Anh Lam Author-X-Name-First: Hoan Phuong Anh Author-X-Name-Last: Lam Title: Evaluating the efficiency of insurance companies in Vietnam using Data Envelopment Analysis and truncated regression Abstract: After many years of outstanding growth, the growth rate of Vietnam’s life insurance market has decreased since 2022 with a decline in the number of new life insurance policies, according to the Vietnam Insurance Association. Life and non-life insurance companies face many challenges in terms of financial capacity, risk management, corporate governance, customer service quality and transparency. To gain further insight into the context before this slowdown turn, this study aims to investigate the factors affecting the efficiency of 30 Vietnamese insurance companies from 2016 to 2021. The efficiency scores were measured by applying the data envelopment analysis in the first stage. In the second stage, truncated regression is employed to identify the relationship between financial factors and efficiency. The results show that the majority of insurers in Vietnam are relatively efficient, but the average efficiency score decreases over the study period. Under Variable Returns to Scale, the factors that significantly affect efficiency are leverage, gross written premium, firm age and size, and life insurance type. All of these factors positively affect efficiency, except for firm size. The findings provide insights for policymakers and stakeholders to help improve insurance companies’ performance in the Vietnamese market.This article is among the first research works to assess the efficiency and examine the factors influencing the efficiency of insurance firms in Vietnam using DEA and truncated regression. The findings carry significant implications for stakeholders. For insurance firms, understanding their efficiency rankings enables benchmarking against peers and informs strategic decisions to optimize inputs (e.g., reducing overhead costs). Policymakers can leverage these insights to design regulations that promote efficiency, such as incentives for digital adoption or measures to mitigate diseconomies of scale among large insurers. For the market, the study highlights the need to balance growth with operational effectiveness, especially as competition intensifies and premiums decline. By adjusting factors such as leverage and size, stakeholders can enhance the sector’s resilience, contributing to Vietnam’s goal of raising insurance coverage to 15% of the population by 2025. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494134 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494134 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494134 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476093_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ahsan Aslam Khan Author-X-Name-First: Ahsan Aslam Author-X-Name-Last: Khan Author-Name: Mohammad Helmi Bin Hidthir Author-X-Name-First: Mohammad Helmi Bin Author-X-Name-Last: Hidthir Author-Name: Mustazar Mansur Author-X-Name-First: Mustazar Author-X-Name-Last: Mansur Author-Name: Zaki Ahmad Author-X-Name-First: Zaki Author-X-Name-Last: Ahmad Title: Role of financial inclusion in enhancing the effect of remittance on economic growth in developing countries Abstract: This study examines the role of financial inclusiveness in explaining the relationship between remittances and economic growth in developing countries. Using panel data for 79 countries from 2011 to 2021, the study employed Random Effects (RE), Fixed Effects (FE), and Generalized Method of Moments (GMM) to estimate how remittances influence Gross domestic product (GDP). The results show that remittances have a positive impact on economic development and that this effect is amplified in countries with higher levels of financial inclusion. Additionally, models that incorporate financial inclusion and human capital (HC) reveal not only their ability to amplify the positive effect of remittances on GDP but also how important they are when it comes to helping long-term economic growth. The results of the GMM analysis controlling endogeneity also seem universally consistent with this evidence. The research also states that developing countries should focus on deeper financial inclusion and HC investment to fully exploit the economic potential of remittances. The policy implication of this result would be to fully leverage remittances for economic growth. This study contributes to the literature by providing empirical evidence for the necessity of mapping financial system integration and HC development with remittance flows to enhance sustainable growth.This study explores the role of financial inclusion in enhancing the relationship between remittances and economic growth in developing countries. By analyzing panel data from 79 countries (2011–2021) using Random Effects (RE), Fixed Effects (FE), and Generalized Method of Moments (GMM), the study finds that remittances positively contribute to economic growth, with their impact being significantly stronger in financially inclusive economies. Additionally, the findings highlight the critical role of human capital (HC) investment in sustaining long-term economic development. The research provides policy-relevant insights, advocating for greater financial inclusion and HC investment to maximize the economic benefits of remittances. Encouraging the use of formal financial institutions can enhance financial stability, improve data tracking, and reduce reliance on informal financial systems, ultimately fostering sustainable economic growth in developing nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476093 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476093 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2534680_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tsegachew Degu Kasegn Author-X-Name-First: Tsegachew Degu Author-X-Name-Last: Kasegn Author-Name: Tadele Muche Tefera Author-X-Name-First: Tadele Muche Author-X-Name-Last: Tefera Title: Job search and labor market outcomes of internal migrants in Ethiopia Abstract: This study examines the relationship between internal migration and labor market outcomes in Ethiopia using the National Labor Force Survey. The findings suggest that migration motives are associated with migration patterns, whereas migration duration varies across migration patterns. Results indicate that internal migrants, particularly those relocating to urban areas, are more likely to experience unemployment than non-migrants. On average, migrants are observed to be 3% more likely to have been unemployed in the past year and 6% more likely in the past week. Higher unemployment likelihoods are observed among urban-to-urban and rural-to-urban migrants, who are 5% and 8% more likely, respectively, to be unemployed. However, lower unemployment likelihoods are observed among migrants with longer durations of stay. Internal migrants also appear to experience shorter unemployment spells than non-migrants, by an average of about 2.2 months. Rural-bound migrants tend to have lower unemployment likelihoods and shorter durations of unemployment. Gender disparities persist: women remain unemployed 4.6 months longer than men, though this gap appears to narrow among migrants. Additionally, internal migrants tend to work, on average, about 2.4 more hours per week than non-migrants, with the longest hours observed among urban-bound migrants. These disparities appear lower among migrants with longer durations of stay.Labor market outcomes are not merely reflections of individual effort but are fundamental to livelihood and survival, particularly in developing countries such as Ethiopia. However, these outcomes often vary significantly across regions within the same country, leading to substantial internal migration driven by the pursuit of better labor market outcomes. Despite migrating with the hope of improved job prospects, internal migrants frequently encounter a mismatch between their expectations and the realities of labor markets in destination areas. This study examines the interplay between internal migration, job search behavior, and labor market outcomes in Ethiopia, providing empirical evidence on how migration shapes and is shaped by economic opportunity. By analyzing these dynamics, the research contributes to the formulation of more effective, evidence-based labor and migration policies tailored to the needs of internal migrants. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2534680 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2534680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2534680 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2477676_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Gokhan Ovenc Author-X-Name-First: Gokhan Author-X-Name-Last: Ovenc Author-Name: Abdul Baghi Nabiyev Author-X-Name-First: Abdul Baghi Author-X-Name-Last: Nabiyev Title: Discover how fintech is transforming bank performance: insights from an emerging economy Abstract: Fintech startups are using new technologies to force traditional banks to change their business models, which could potentially threaten their position in the financial industry. Banks collaborate with fintech startups to enhance their technological infrastructure and gain a competitive advantage. This paper investigates the impact of collaborations between banks and fintech companies on commercial banks’ performance using a panel dataset from 2013 to 2021 in Türkiye. The One-Step System GMM model results vary by the size of banks and bank performance indicators. First, findings indicate that the collaborations between commercial banks and fintech companies have a positive impact only on banks’ ROE for large-scale traditional banks, which indicates a potential complementary effect. Another significant outcome implies that fintech development has a negative influence on banks’ ROA and ROE for large-scale banks, which reveals that specific fintech services and goods can be substituted for traditional banks.This study analyzes how collaborations between commercial banks and fintech firms influence bank performance, using data from Türkiye between 2013 and 2021. The findings reveal a nuanced picture. For large-scale traditional banks, partnering with fintech firms tends to improve return on equity (ROE), suggesting that these collaborations can complement existing business models. However, the broader development of fintech across the industry appears to have a negative impact on both return on assets (ROA) and ROE for large banks. This suggests that some fintech products and services may be substituting traditional banking functions, thereby reducing profitability. The work is significant because it offers empirical evidence on the mixed impacts of fintech integration. It helps clarify that while collaborations with fintech firms can drive improvements in certain performance metrics, they can also disrupt traditional revenue streams. This insight is valuable for banks as they look to strike a balance between embracing technological innovation and safeguarding their core operations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2477676 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2477676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2477676 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2539788_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fahmy Radhi Author-X-Name-First: Fahmy Author-X-Name-Last: Radhi Author-Name: Henry Yuliando Author-X-Name-First: Henry Author-X-Name-Last: Yuliando Author-Name: Alifa Fadhila Author-X-Name-First: Alifa Author-X-Name-Last: Fadhila Author-Name: Ihda Arifin Faiz Author-X-Name-First: Ihda Arifin Author-X-Name-Last: Faiz Author-Name: Faiz Zamzami Author-X-Name-First: Faiz Author-X-Name-Last: Zamzami Title: Technical efficiency analysis using data envelopment analysis (DEA) and Tobit regression on convenience store networks in Indonesia Abstract: This study aimed to evaluate the technical operational efficiency of the convenience stores managed by PT ALFAMART, one of the largest retail chains in Indonesia. Performance disparities are still found among convenience stores, particularly in Region A—an area with high store density and intense retail competition. This research used a Data Envelopment Analysis (DEA) approach to measure the relative technical efficiency, as well as Tobit regression to analyse the influence of operational factors on efficiency scores. The sample consisted of 30 stores purposively selected from a total population of 90 homogeneous stores based on geographic distribution and variations in sales performance. The results showed that the average scale efficiency (SE) reached 98.8%, with VRSTE and CRSTE scores indicating the presence of technical inefficiencies. Tobit regression showed that operational hours have a positive influence on efficiency, while fast food and beverage services show a negative influence. Efficiency can be improved through the optimization of operational hours and the management of service diversification. This study contributes empirically to the literature on retail efficiency in developing countries, focusing on nationally scaled convenience store networks in densely populated urban environments. Additionally, these findings provide strategic insights for the management in formulating data-driven operational policies.This study provides empirical evidence on the operational efficiency of convenience stores managed by PT ALFAMART, a leading retail chain in Indonesia. By applying Data Envelopment Analysis and Tobit regression, the research identifies key factors influencing efficiency, including operational hours and service diversification. The findings offer actionable insights for optimizing store performance in highly competitive urban retail environments. This work enhances the understanding of retail efficiency in developing economies and supports data-driven decision-making in large-scale retail operations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 7 X-DOI: 10.1080/23322039.2025.2539788 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2539788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2539788 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2598919_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohd Suffian Mohamed Esa Author-X-Name-First: Mohd Suffian Author-X-Name-Last: Mohamed Esa Author-Name: Hairunnizam Wahid Author-X-Name-First: Hairunnizam Author-X-Name-Last: Wahid Author-Name: Salmy Edawati Yaacob Author-X-Name-First: Salmy Edawati Author-X-Name-Last: Yaacob Author-Name: Siti Mazlita Yamaludin Author-X-Name-First: Siti Mazlita Author-X-Name-Last: Yamaludin Title: Economic empowerment through welfare? MAPPING the employment impacts of conditional cash transfer programs Abstract: This study systematically maps and reviews emerging evidence on employment-related conditionalities in CCT programs, using a Systematic Mapping Review (SMR) approach guided by the PRISMA protocol. Twenty-five empirical studies from Scopus, Web of Science, SAGE, and ScienceDirect were analysed through the Antecedents–Decisions–Outcomes (ADO) framework. Findings show that CCTs integrate behavioural employment incentives that support poverty alleviation, financial literacy, women’s empowerment, child labour reduction, and income generation. For instance, in Indonesia, programs shifted poor agricultural households toward nonfarm wage work (+1.54 percentage points) and microenterprises (+1.51), while in Honduras, CCT programs improved rural women’s earnings (+USD 163.9) and reduced child labour wages (−USD 26). However, broader employment effects were mixed, underscoring the need for stronger program designs to achieve sustained labour market outcomes. While CCTs contribute to income diversification and female labour force participation, their effects on long-term financial independence and the ultra-poor remain uneven. This study identifies religiosity, and entrepreneurship as underexplored but potentially transformative conditionalities. Findings urge policymakers to shift CCT goals toward context-specific employability and dignity through sustainable work, while researchers should examine under-studied regions with mixed methods, as the ADO model reveals vital links between labour supply and social support.This study offers the first systematic mapping of how Conditional Cash Transfer (CCT) programmes influence employment outcomes, addressing a critical evidence gap in a field historically dominated by education and health conditionalities. By analysing 25 empirical studies using the ADO framework, the review clarifies how poverty, behavioural incentives, labour constraints, and crisis conditions shape employment-related decisions within CCT interventions. The findings show that programmes with explicit employment components can enhance financial management, support women’s labour participation, reduce child labour, and promote income diversification, although effects remain uneven across regions and population groups. The study also highlights underexplored yet promising areas—particularly religiosity and entrepreneurship—as potential conditionalities that may strengthen behavioural change, resilience, and long-term economic independence. By synthesising fragmented literature into a coherent conceptual map, this research advances understanding of how CCT programmes can evolve from short-term poverty relief to catalysts of sustainable employment. The insights directly support policymakers seeking to redesign CCTs toward productive inclusion, employment readiness, and multi-dimensional poverty reduction. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2598919 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2598919 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2598919 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2568640_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Imen Jellouli Author-X-Name-First: Imen Author-X-Name-Last: Jellouli Title: Rethinking portfolio design with sustainable AI and FinTech: dynamic spillovers in a quantile–frequency framework Abstract: This study examines the diversification benefits and systemic risk dynamics of sustainable digital technology assets, with a focus on artificial intelligence and FinTech assets. In an era where sustainability and innovation increasingly converge, we apply a quantile–frequency connectedness framework to assess regime-sensitive spillovers between ESG tech assets and traditional benchmarks from 2018 to 2025. Findings reveal asymmetrical systemic roles: sustainable AI indices act as short-term shock transmitters during bullish regimes. In contrast, ESG FinTech stocks and broad ESG indices serve as reliable shock absorbers in downturns. This divergence highlights the need for differentiated portfolio strategies across ESG tech sub-sectors. Notably, portfolios designed to minimize connectedness outperform traditional variance- and correlation-based approaches in terms of risk-adjusted returns, especially in volatile markets. These results underscore the financial relevance of incorporating ESG-themed technology assets into dynamic portfolio management. Beyond their sustainability profile, such assets enhance market resilience by mitigating contagion or capitalizing on favorable spillovers. This article is among the first to apply the quantile–frequency connectedness methodology to sustainable digital assets, providing new empirical insights into their asymmetric behavior and portfolio implications. The findings offer practical guidance for investors and policymakers shaping the future of sustainable digital finance.This study provides new insights into the systemic connectedness of sustainable digital assets and traditional markets using a quantile–frequency framework. The findings highlight how Sustainable Finance, FinTech, and AI-driven investments interact under different market conditions, offering investors and policymakers valuable guidance for risk management, portfolio diversification, and the design of sustainable financial strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2568640 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2568640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2568640 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2527864_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nenavath Sreenu Author-X-Name-First: Nenavath Author-X-Name-Last: Sreenu Title: Assessing the impact of global crude oil price uncertainty on high corporate debt levels: empirical evidence from India Abstract: The volatility of the price of crude oil has been crucial in determining the course of the world economy. This study looks at how changes in oil prices between 2008 and 2022 affected the amount of corporate debt held by Indian companies listed on public exchanges. The results show that excessive debt is considerably reduced by increasing volatility in global crude oil prices, especially for small businesses that are categorized as non-state-owned enterprises (NSEO), non-high-tech firms (NHT) and non-energy firms (NEF). Furthermore, the analysis demonstrates that financial limitations increase the risks associated with business debt by exacerbating the negative consequences of oil price uncertainty. Robustness checks verify that the results are reliable. Businesses must implement focused financial measures to reduce related risks in the face of ongoing volatility in the oil market, particularly in frameworks that are less focused on the market. To improve resilience against external price shocks, financial institutions should take firm-specific vulnerabilities into account when developing lending policies.This study provides empirical evidence from India showing that global crude oil price uncertainty significantly exacerbates the financial vulnerability of firms with high corporate debt, highlighting critical risks for policymakers and investors in energy-dependent economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2527864 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2527864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2527864 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2549923_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kalidou Ky Author-X-Name-First: Kalidou Author-X-Name-Last: Ky Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Author-Name: Wendyam Assumpta Missa Sawadogo Author-X-Name-First: Wendyam Assumpta Author-X-Name-Last: Missa Sawadogo Title: Financial inclusion and human development within the member states of the West African Economic and Monetary Union (WAEMU): a two-way analysis Abstract: This research is testing bidirectional relationship between financial inclusion and human development by monitoring the role of institutional quality within the West African Economic and Monetary Union countries (WAEMU). To achieve this, the panel data fixed effects method is used from 2010 to 2022, covering eight WAEMU countries. The findings show that an effective use of financial products and services, notably credit and savings, improves human development (life expectancy, schooling and income). Besides, the effect is enhanced when institutional quality plays a role in the relationship between financial inclusion and human development, and the causality test reveals a two-way link between financial inclusion and human development. It also appears that the combined effect of improved regulation and private credit leads to an increase in life expectancy at birth from 0.267 to 0.324 years and income from $27.5 to $49.03. Furthermore, the interactive effect between institutional quality and per capita savings increases income from $2.398 to $2.541. The outcome suggests that players in the financial ecosystem should do more to strengthen the supply of credit and provide households and businesses with adequate savings products to develop income-generating activities, enabling them to adequately meet their needs. This must be done through a quality institutional environment.The analysis of the bidirectional effect between financial inclusion and human development in WAEMU countries sheds new light on the need to promote financial inclusion in order to influence human development. The results obtained reflect the realities of WAEMU countries. Indeed, effective promotion of financial inclusion will have a significant impact on human development through sustainable access to and use of financial services. These results will help leaders in WAEMU countries to undertake appropriate strategic and institutional reforms to stimulate financial inclusion, with the corollary of significantly improving the well-being of their populations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2549923 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2549923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2549923 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2459188_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Omary Juma Ally Author-X-Name-First: Omary Juma Author-X-Name-Last: Ally Author-Name: Yusuph J. Kulindwa Author-X-Name-First: Yusuph J. Author-X-Name-Last: Kulindwa Author-Name: Lucas Mataba Author-X-Name-First: Lucas Author-X-Name-Last: Mataba Title: Financial technology and credit risk management: the case of non-performing loans in Tanzanian banks Abstract: The evolution of financial technology (FinTech) globally is reshaping the banking system, including Tanzania’s financial sector. This study examines the influence of FinTech on Tanzania’s banking sector, particularly its impact on non-performing loans. Using a financial technology index alongside bank-specific and macroeconomic variables, the analysis covers data from 30 Tanzanian commercial banks spanning 2010 to 2021. Employing a two-step system, a Generalized Method of Moments, the study tests the hypotheses and provides robust findings. The results reveal that FinTech significantly reduces non-performing loans across all bank categories, with the strongest effects observed in small banks, followed by medium and large banks. This indicates that advancements in FinTech improve credit risk management and reduce loan default rates. Conversely, a cost-to-income ratio and a high loan-to-deposit ratio increase non-performing loans, particularly in medium-sized banks. These findings have critical implications for policymakers and practitioners. Policymakers should prioritize fostering a supportive regulatory environment to encourage FinTech integration, particularly among small and medium banks. Bank managers are encouraged to leverage FinTech innovations to enhance credit risk management and operational efficiency. The study highlights the transformative potential of FinTech in managing credit risk and driving sustainable growth in Tanzania’s banking sector.This study examines the impact of FinTech adoption on non-performing loans (NPLs) in Tanzanian commercial banks from 2010 to 2021 using a FinTech index and macroeconomic variables. Employing a two-step system Generalized Method of Moments (GMM), the findings reveal that FinTech significantly reduces NPLs, particularly in small and medium-sized banks, enhancing credit risk management. The study highlights the need for a supportive regulatory environment to foster FinTech Development and improve banking efficiency. By demonstrating FinTech’s role in mitigating credit risk, this research offers valuable insights for policymakers and bank managers in driving financial stability and sustainable growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2459188 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2459188 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2459188 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457478_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fatima-Ezzahra Rafie Author-X-Name-First: Fatima-Ezzahra Author-X-Name-Last: Rafie Author-Name: Mostafa Lekhal Author-X-Name-First: Mostafa Author-X-Name-Last: Lekhal Title: Empirical investigation of the relationship between public external debt sustainability, foreign reserves and fixed exchange rate Abstract: Public external debt sustainability is a critical concern, yet existing frameworks often fail to account for the unique challenges faced by lower-middle-income countries (LMICs) in Africa. These nations, heavily reliant on foreign-currency borrowing, contend with exchange rate volatility, limited access to international markets, and the availability of foreign reserves, all of which compound solvency and liquidity risks. This study addresses this gap by adapting the cointegration method, originally designed for the US context, to assess debt sustainability in LMICs. Specifically, it examines five African LMICs- Morocco, Egypte, Tunisia, Benin, and Senegal – during the period 2000–2021. Benin and Senegal, as members of the Western African Economic and Monetary Union (WAEMU), face additional constraints due to a shared currency, while Morocco, Egypt, and Tunisia have control of their respective monetary policies and manage their reserves. Using unit root tests, Johansen cointegration tests, and a Vector Error Correction Model (VECM), the study investigates the interplay among external debt, reserves, exchange rate, GDP growth, exports, and government expenditures. Findings reveal that while public external debt in these countries experiences short-term fluctuations, it tends to stabilize in the long-term through fiscal and monetary policies. Additionally, foreign reserves significantly influence debt positions, and the exchange rate arrangements adopted in Morocco, Egypt, and Tunisia reduce currency depreciation risks. Conversely, the common currency constraints debt sustainability in Benin and Senegal.This study reveals the complex dynamics of public external debt sustainability in LMICs, focusing on countries within economic and monetary unions and those with independent monetary policies. It highlights the critical role of foreign reserves in mitigating external shocks, the importance of prudent fiscal policies, and the need for regional cooperation to address vulnerabilities. Major political and economic events underscore the importance of flexible and adaptive policy measures. Policymakers can enhance long-term debt sustainability by strengthening foreign reserves, improving fiscal discipline, and addressing trade and production imbalances. These findings provide a roadmap for managing external debt under evolving economic conditions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457478 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457478 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2584593_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Josep Navarro-Ortiz Author-X-Name-First: Josep Author-X-Name-Last: Navarro-Ortiz Author-Name: Juan Sapena Author-X-Name-First: Juan Author-X-Name-Last: Sapena Title: Sovereign debt sustainability in the Euro Area: a probabilistic assessment Abstract: This paper assesses sovereign debt sustainability in the euro area using a model-free, data-driven approach. We estimate a panel Vector Autoregression (VAR) to model the joint dynamics of key fiscal and macroeconomic variables, and simulate future trajectories to compute the probability that each country can sustain its current debt level. The methodology avoids strong assumptions on structural relationships or future fiscal behavior. The results show significant variation in sustainability risks among countries, with high-debt nations such as Italy and Greece having much lower sustainability probabilities compared to core euro area economies. Interestingly, the study divides public debt simulations into those where sustainability is facilitated by favorable growth-adjusted interest rates from those where the future positive surpluses drive debt repayment even discounted at a positive rate. These findings underscore the importance of credible fiscal frameworks and coordinated policy support to maintain debt sustainability in a low-growth, high-rate environment. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2584593 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2584593 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2584593 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2496684_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bashir Mohamed Osman Author-X-Name-First: Bashir Mohamed Author-X-Name-Last: Osman Author-Name: Mohamud Hussein Mohamud Author-X-Name-First: Mohamud Hussein Author-X-Name-Last: Mohamud Author-Name: Abdi Falir Omar Author-X-Name-First: Abdi Falir Author-X-Name-Last: Omar Author-Name: Abdikadir Ali Yabarow Author-X-Name-First: Abdikadir Ali Author-X-Name-Last: Yabarow Author-Name: Omar Mohamed Omar Author-X-Name-First: Omar Mohamed Author-X-Name-Last: Omar Author-Name: Mohamed sheikh Ali Jirow Author-X-Name-First: Mohamed sheikh Ali Author-X-Name-Last: Jirow Author-Name: Abdinasir Nur Dahir Author-X-Name-First: Abdinasir Nur Author-X-Name-Last: Dahir Author-Name: Anisa Mohamed Nur Author-X-Name-First: Anisa Mohamed Author-X-Name-Last: Nur Title: The impact of climate change on economic growth in Somalia: using random forest and Bayesian approach Abstract: Climate change has emerged as a critical global challenge, significantly impacting economic stability, particularly in developing nations. Somalia, a fragile state with an agriculture-based economy, remains highly vulnerable to climate-induced shocks such as rising temperatures, erratic rainfall patterns, and increasing CO2 emissions. This study examines the relationship between climate change and Somalia’s economic growth by analyzing the effects of temperature, rainfall, and CO2 emissions on GDP. Using Random Forest Regression and Bayesian Regression, this study provides a robust empirical framework for assessing climate-economic interactions. The findings reveal that temperature has a significant negative impact on GDP, while rainfall exhibits a positive effect, reinforcing its role in sustaining Somalia’s agricultural productivity. Additionally, CO2 emissions negatively influence GDP, highlighting the economic consequences of environmental degradation. The study further demonstrates that machine learning models, particularly Random Forest Regression, outperform Bayesian Regression in predictive accuracy, capturing non-linear relationships among climate variables and GDP. The study underscores the importance of climate-sensitive economic policies, recommending that governments invest in climate-resilient agricultural practices, enhance environmental regulations, and promote sustainable energy solutions. These findings hold significant implications for regulators, investors, and international organizations in shaping economic strategies that foster long-term resilience against climate change. This study contributes to the growing body of climate-economic literature by applying advanced statistical techniques to a fragile economy, offering a comprehensive, data-driven perspective on climate-related economic vulnerabilities in Somalia.This study provides a pioneering analysis of the relationship between climate change and economic growth in Somalia using advanced statistical techniques—Random Forest and Bayesian Regression. By identifying temperature, rainfall, and CO₂ emissions as critical drivers of GDP fluctuations, the research offers empirical evidence that temperature rise and CO₂ emissions negatively impact economic output, while rainfall enhances it. The integration of SHAP interpretability tools further enhances policy relevance, enabling decision-makers to prioritize climate-resilient agricultural strategies, sustainable energy investments, and environmental regulations. As the first study to apply machine learning and Bayesian methods to Somalia’s climate-economic nexus, it fills a critical methodological and contextual gap in climate economics, with significant implications for policy design in fragile and climate-sensitive economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2496684 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2496684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2496684 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2582272_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdullahi Shafii Sayuti Author-X-Name-First: Abdullahi Shafii Author-X-Name-Last: Sayuti Author-Name: Rossanto Dwi Handoyo Author-X-Name-First: Rossanto Dwi Author-X-Name-Last: Handoyo Author-Name: Kabiru Hannafi Ibrahim Author-X-Name-First: Kabiru Hannafi Author-X-Name-Last: Ibrahim Author-Name: Nur Istifadah Author-X-Name-First: Nur Author-X-Name-Last: Istifadah Author-Name: Achmad Solihin Author-X-Name-First: Achmad Author-X-Name-Last: Solihin Author-Name: Allen Pranata Putra Author-X-Name-First: Allen Pranata Author-X-Name-Last: Putra Title: On the wage and agricultural employment amid the COVID-19 lockdown in Nigeria Abstract: As we strive to achieve decent work by 2030, which is a key component of the global development agenda, the issue of food insecurity in Nigeria remains a significant challenge. The sudden emergence of the lockdown further exacerbated this problem, subjecting households to a range of shocks, including job loss and a surge in food prices, pushing them into a state of food insecurity. This study, therefore, aimed to examine the impact of lockdowns on employment in Nigeria. The research combined pre- and post-pandemic surveys and analysed the data using a difference-in-difference model. The results revealed that the lockdown reduced agricultural employment at the national level, in the North-East, and in rural areas. The study highlights the profound impact of lockdowns on people's means of livelihood. The agricultural sector was significantly impacted by the lockdown, resulting in more employment losses in rural areas than in urban areas. The study recommends that the government address the issue of employment. It also emphasizes the need for future pandemic preparedness, suggesting that while measures could be adopted to control the spread of any future pandemics, their adverse economic effects should be mitigated through the provision of necessary social safety nets.This study examined the impact of lockdowns on employment in Nigeria. The empirical strategy using the difference-in-differences model yielded interesting findings. It is observed that the lockdown reduced agricultural employment nationwide, in the North-East, and in rural areas. The study highlights the profound impact of lockdowns on people's means of livelihood. The agricultural sector was significantly impacted by the lockdown, resulting in more employment losses in rural areas than in urban areas. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2582272 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2582272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2582272 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2588052_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fernando Moreira Author-X-Name-First: Fernando Author-X-Name-Last: Moreira Title: Identifying instrumental variables for causal inference Abstract: We propose a procedure for identifying instrumental variables to be used in causal analyses that can preclude the effects of unobserved confounders and reverse causality. Being based on graphical models, our novel approach employs four sequential regressions to infer the role of endogenous variables (potential cause) as colliders or complete mediators in the relationship between candidates for instruments and the explained variable (potential effect). The inclusion restriction condition is met by the fact that the instruments are, by definition, determinants of the endogenous variables while compliance with the exclusion restriction condition is deduced from the role (e.g. complete mediation) of the endogenous variables with respect to the other variables analyzed. Given an underlying data generating process, we consider not only cases where all relevant variables are included in the analyses but also situations when some of them are omitted (e.g. due to data unavailability or because analysts are not aware of them). Simulation results support our method’s ability to identify statistically valid instruments that lead to correct causal conclusions. An empirical case illustrating the application of our method is presented in an online appendix.This paper introduces a novel approach to identifying instrumental variables in regression analyses. As the proposed method can preclude the influence of unobserved common factors (confounders) and reverse causality, the resulting estimates can be interpreted as causal. The implementation of the method is relatively simple, requiring only basic knowledge of linear regression. Therefore, the work is expected to have a significant impact across many research fields, given the wide interest in causal inference. The method’s favorable performance is supported by simulations and an empirical example based on real-world data. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2588052 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2588052 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2588052 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2567493_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jonathan M. Chipili Author-X-Name-First: Jonathan M. Author-X-Name-Last: Chipili Title: Inflation dynamics in Zambia Abstract: Inflation has been volatile and persistently trended above the target since 1994. To have a deeper understanding of the underlying drivers of inflation and strengthen the policy response framework, a single-equation model is estimated over the 1994q1-2023q1 period. In the long-run, overall domestic prices are influenced by external non-food and monetary sectors where the exchange rate, South African producer prices and excess money balances matter. In the short-run, overall inflation is driven by the depreciation of the exchange rate, imported inflation from South Africa, increases in diesel prices, and supply constraints proxied by maize grain prices. Four lessons can be drawn from these empirical results to effectively control inflation and bring it in line with the policy target. Firstly, the dominant influence of the exchange rate on inflation points to policy measures to continuously dampen excessive depreciation of the exchange rate. Secondly, money supply growth must be monitored closely to keep it at desired rates. Thirdly, expanding and diversifying the manufacturing base to limit the current high dependence on imports of final consumer and capital goods from South Africa should be prioritized. Finally, the role of supply shocks in inflation control necessitates immediate significant reforms in the agriculture sector to boost productivity and reduce dependence on rain-fed practices.The study is about the drivers of inflation in Zambia, motivated by its broad persistence above the policy target for most part of the post-economic reform period that commenced in the early 1990s. The empirical outcomes point to refinements to both monetary policy and foreign exchange intervention frameworks, expansion and diversification of the manufacturing base, and immediate significant reforms in the agriculture sector to strengthen inflation control. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2567493 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2567493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2567493 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2567499_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mazhar Farid Chishti Author-X-Name-First: Mazhar Farid Author-X-Name-Last: Chishti Author-Name: Farhan Ali Author-X-Name-First: Farhan Author-X-Name-Last: Ali Author-Name: Mustafa Rehman Khan Author-X-Name-First: Mustafa Rehman Author-X-Name-Last: Khan Author-Name: Ismail Khan Author-X-Name-First: Ismail Author-X-Name-Last: Khan Author-Name: Ngan Thi Luong Author-X-Name-First: Ngan Thi Author-X-Name-Last: Luong Author-Name: Arsalan Mujahid Ghouri Author-X-Name-First: Arsalan Mujahid Author-X-Name-Last: Ghouri Title: Understanding behavioural biases in investment decisions: empirical insights from an emerging market Abstract: Given the limited literature on behavioural biases, this study aims to examine the impact of three behavioural biases, specifically halo bias, framing bias, and locus of control on individual investment decision-making in the Pakistan Stock Exchange (PSX). Using a quantitative research approach, data were collected from 414 individual investors of firms listed on the PSX through a self-administered online questionnaire over the period of May 2023 to August 2023. The findings from structural equation modelling (SEM) show that halo bias, framing bias and locus of control positively influence investment decision-making. These findings remained robust across various diagnostic tests. The evidence suggests that policymakers should pay close attention to these behavioural biases to enhance investors’ decisions. Specifically, addressing pitfalls associated with overconfidence and informational framing contribute to mitigate adverse outcomes. Additionally, they should exercise regulatory reforms aimed at reducing the negative impact of such biases to enhance market efficiency in emerging markets, like Pakistan. This research contributes to advance the behavioural finance literature by empirically quantifying the psychological and cognitive determinants of investor behaviour in an emerging market context. Additionally, it offers actionable insights to enhance individual investment decision-making, promote investor protection and support overall market stability.Investment decisions are rarely made in a vacuum of pure logic, human psychology plays a crucial role. This study shows how behavioural biases including halo bias, framing bias, and locus of control, shape the way investors in the Pakistan Stock Exchange make financial choices. Drawing on responses from over 400 investors, the findings reveal that positive impressions, the way information is presented, and beliefs about control over outcomes can significantly sway decision-making. These insights highlight why investors in emerging markets often act in ways that diverge from rational financial models, sometimes at the expense of market efficiency. By uncovering these patterns, the study not only advances behavioural finance theory but also offers practical guidance for policymakers and regulators to strengthen investor protection, improve financial literacy, and build more resilient capital markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2567499 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2567499 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2567499 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2563160_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Genevieve Gyasi Author-X-Name-First: Genevieve Author-X-Name-Last: Gyasi Author-Name: Kwame Mireku Author-X-Name-First: Kwame Author-X-Name-Last: Mireku Author-Name: Joseph Magnus Frimpong Author-X-Name-First: Joseph Magnus Author-X-Name-Last: Frimpong Title: The moderating role of major global shock events and policy effects on African frontier currency and stock market relationships Abstract: The study investigates the relationship between stock and currency markets in African frontier economies in response to global shock events and policy changes. Using the Dynamic Conditional Correlation (DCC) GARCH model, cross-wavelet coherence (WTC) and partial wavelet coherence (PWC), the study examines volatility persistence, interdependence and spillover effects between these markets using daily data from January 2010 to March 2023. The results show that stock and currency markets in African frontier economies exhibit high volatility persistence, and that financial contagion increases with global integration. Findings suggest that external shocks, such as COVID-19, Brexit and the Russia-Ukraine conflict significantly impact market relationships, although the effects vary across countries. Furthermore, policy changes, such as the transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs), exhibit moderate but lasting influence on market behavior. The study highlights the need for institutional development to mitigate contagion risks and enhance investment stability in African frontier markets.This study advances understanding of how major global shocks (COVID-19, Brexit, Russia–Ukraine war) and international policy shifts (MDGs to SDGs) shape the interaction between stock and currency markets in African frontier economies. By combining DCC-GARCH, cross-wavelet, and partial wavelet methods, the research provides novel evidence of heterogeneous contagion, volatility persistence, and policy influence across Ghana, Mauritius, and Tunisia. The findings highlight the importance of strengthening institutional resilience and policy frameworks to safeguard financial stability and enhance investment attractiveness in African frontier markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2563160 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2563160 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2563160 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2586309_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Geoffrey Gatharia Gachino Author-X-Name-First: Geoffrey Gatharia Author-X-Name-Last: Gachino Title: Re-assessing the growth impact of FDI and remittances in Africa: evidence from dynamic panel analysis Abstract: Foreign direct investment (FDI) and remittances (REM) have emerged as crucial external financial flows that shape Africa’s economic development. While FDI facilitates long-term growth through capital formation, technology transfer, and employment creation, remittances provide a stable lifeline that supports household welfare and community-level resilience. Together, these flows hold transformative potential for inclusive and sustainable development across the continent. This study investigates the dynamic effects of FDI and remittances on economic growth in Africa using panel data from 1980 to 2023 and advanced econometric techniques, including Augmented Mean Group (AMG) estimators and panel vector autoregression (PVAR). The analysis explores various economic contexts to assess heterogeneity across different scenarios. The results generated confirm that FDI is a robust and positive driver of GDP growth, primarily through its contributions to capital formation and productivity enhancement. In contrast, remittances exhibit a negative association with growth, especially in financially developed contexts, where they are more likely to fund consumption than investment. Financial development plays a nuanced role, amplifying the growth effects of FDI while diminishing those of remittances. No significant interaction effect between FDI and REM on growth is observed, underscoring the complexity of capital flow dynamics in the region. The analysis also reveals that remittances demonstrate greater stability than FDI during crises, such as the COVID-19 pandemic. Causality tests indicate a unidirectional relationship from FDI to GDP, while remittances exhibit no causal effect on GDP. The study offers a set of innovative policy proposals to enhance the developmental impact of these flows. The study recommends targeted institutional reforms, greater financial innovation, and regionally coordinated investment frameworks that align FDI and remittance capital with productive sectors and long-term growth goals. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2586309 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2586309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2586309 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2594873_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nguyen Thi Thu Hoan Author-X-Name-First: Nguyen Thi Thu Author-X-Name-Last: Hoan Author-Name: Nguyen Ngoc Khang Author-X-Name-First: Nguyen Ngoc Author-X-Name-Last: Khang Author-Name: Pham Van Khanh Author-X-Name-First: Pham Van Author-X-Name-Last: Khanh Title: Applying reinforcement learning in Bitcoin trading to select technical strategies based on Deep Q-Network Abstract: This paper proposes a Deep Q-Network-based reinforcement learning framework to optimize the selection of technical trading strategies for Bitcoin. Instead of directly predicting prices, the agent chooses among five predefined strategies—RSI, SMA Crossover, Bollinger Bands, Momentum-20d, and VWAP Reversion—allowing actions to remain interpretable while adapting dynamically to market conditions. Market states are constructed from technical indicators, normalized, and reduced in dimensionality using Principal Component Analysis to ensure robustness and efficiency. Empirical tests on Bitcoin data from 2022 to mid-2025 show remarkable performance: starting from $1,000,000, the agent achieved more than 120-fold growth in Net Asset Value, significantly outperforming Buy-and-Hold and single-strategy benchmarks. The model flexibly emphasized momentum during uptrends, limited mean-reversion during breakouts, and managed drawdowns when temporarily misaligned. Out-of-sample results further confirmed generalization. Overall, the framework demonstrates a practical, explainable, and scalable approach to algorithmic trading in digital asset markets.This study proposes a reinforcement learning framework that selects among predefined technical strategies for Bitcoin trading, improving interpretability and reducing model instability. Using Deep Q-Networks with PCA-based features, the agent achieves over 120-fold NAV growth and shows strong adaptability across different market regimes. The findings demonstrate a practical and scalable approach to algorithmic trading in highly volatile digital asset markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2594873 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2594873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2594873 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2499017_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikani Salah Abdulle Author-X-Name-First: Abdikani Salah Author-X-Name-Last: Abdulle Author-Name: Mohamed Abdikarim Jama Author-X-Name-First: Mohamed Abdikarim Author-X-Name-Last: Jama Author-Name: Mahdi Mohamed Omar Author-X-Name-First: Mahdi Mohamed Author-X-Name-Last: Omar Title: Exploring the impact of domestic investment on economic growth in Somalia: an empirical analysis from ARDL bound testing approach Abstract: This study investigates the relationship between domestic investment and economic growth in Somalia from 1990 to 2022 using the Autoregressive Distributed Lag (ARDL) approach to assess both short-run and long-run dynamics. Unlike previous research that often emphasizes foreign capital, this analysis focuses on domestic investment (DI) as a primary engine of economic growth in Somalia. The model incorporates additional variables including foreign direct investment (FDI), population growth, exports, and trade openness to provide a comprehensive view of growth determinants. Findings reveal that domestic investment has a statistically significant and positive impact on GDP growth over the long term. Conversely, while FDI shows a positive but statistically insignificant effect, rapid population growth exerts a negative long-run influence. Exports contribute positively, whereas trade openness is associated with adverse long-term effects. Granger causality tests identify both unidirectional and bidirectional causal relationships between GDP and the explanatory variables. The results suggest that both public and private domestic investments are pivotal for fostering sustained economic growth. Accordingly, policy measures should prioritize investment in infrastructure, industry, and labor-intensive sectors to stimulate productivity and long-term capital accumulation.This study provides vital empirical evidence on the role of domestic investment in promoting economic growth in Somalia, a fragile and post-conflict economy. By employing the ARDL bounds testing approach and extending the data range from 1990 to 2022, the research advances the existing literature by capturing both short-run and long-run dynamics often overlooked in prior Somali studies. Findings reveal that domestic investment significantly drives long-term economic expansion, while population growth and trade openness pose structural challenges. The analysis highlights that Somalia’s economic development should prioritize domestic capital formation, infrastructure investment, and export diversification over reliance on foreign direct investment alone. Policymakers can use these insights to design targeted interventions fostering sustainable growth, labor-intensive industries, and economic resilience. The study’s methodological rigor and context-specific focus offer a foundation for future research on growth strategies in similarly fragile and low-income economies, filling a critical gap in both Somali and broader development economics literature. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2499017 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2499017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2499017 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476100_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Muhammad Adil Author-X-Name-First: Muhammad Author-X-Name-Last: Adil Author-Name: Rana Yassir Hussain Author-X-Name-First: Rana Yassir Author-X-Name-Last: Hussain Author-Name: Ahmed Hussein Al Rassas Author-X-Name-First: Ahmed Hussein Al Author-X-Name-Last: Rassas Author-Name: Haroon Hussain Author-X-Name-First: Haroon Author-X-Name-Last: Hussain Author-Name: Hira Irshad Author-X-Name-First: Hira Author-X-Name-Last: Irshad Title: Assessing the impact of economic policy uncertainty on corporate leverage structure: do foreign ownership act as buffer? Abstract: This study explores how economic policy uncertainty (EPU) impacts the leverage structure of firms and considers whether foreign ownership provides a hedge against the EPU. We applied the PCSE and FGLS regressions to panel data from 231 non-financial firms registered in Pakistan for the period 2017–2021. We examined the EPU influences on the firms' leverage structure by considering their capital and debt maturity structures separately. Our research proves a positive correlation between EPU and the total debt ratio regarding capital structure, indicating that firms often take on more leverage amid economic policy uncertainty. Regarding debt maturity, the findings suggest that firms prefer short-term debt financing during EPU for flexibility. Further, the moderating analysis suggests that firms with foreign ownership tend to rely more heavily on long-term debt financing. Also, foreign ownership helps to tackle EPU by providing access to global networks, diversified funding sources and managerial expertise to local firms. Additionally, we did a comparative analysis between large and firms to detect any possible variations in our findings. We recommend that the government should be interested in providing security and a favorable business climate to foreign investors.The challenges posed by Economic Policy Uncertainty (EPU) are particularly significant for developing countries like Pakistan, compared to their developed counterparts. Pakistan's EPU index has been highly volatile, fluctuating dramatically over the past few decades. This unpredictability can be attributed to factors such as terrorism, political instability, and economic downturns. As a result, Pakistani firms often face severe consequences due to escalating EPU circumstances. Given Pakistan's prevalent EPU conditions, our study undertakes a comprehensive analysis of the impact of EPU on the leverage structures of Pakistani firms. This focus is particularly relevant, as emerging countries like Pakistan are more likely to experience EPU compared to developed nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476100 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476100 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476100 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2588925_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Rifadli D. Kadir Author-X-Name-First: Rifadli D. Author-X-Name-Last: Kadir Author-Name: Setyo Tri Wahyudi Author-X-Name-First: Setyo Author-X-Name-Last: Tri Wahyudi Author-Name: Ghozali Maski Author-X-Name-First: Ghozali Author-X-Name-Last: Maski Author-Name: Vietha Devia Sagita Sumantri Author-X-Name-First: Vietha Author-X-Name-Last: Devia Sagita Sumantri Title: The role of financial inclusion in reducing household poverty: insights from Eastern Indonesia Abstract: This study investigates the roles of financial inclusion in alleviating both absolute poverty and multidimensional poverty at the household level in Eastern Indonesia, a region characterized by persistent inequality and limited access to financial infrastructure. Using microdata from the 2024 National Socio-Economic Survey (Susenas) covering 100,113 households across 16 provinces, we apply probit and instrumental variable probit (IV Probit) models to address endogeneity concerns. Financial inclusion index (FII) and Households Multidimensional poverty index (HMP) indices are constructed using the Multiple Correspondence Analysis (MCA) approach. The findings reveal that financial inclusion significantly reduces both forms of poverty, with stronger effects observed once endogeneity is accounted for. Credit access emerges as the most influential driver of poverty reduction, while savings and insurance show weaker and mixed effects. The results highlight the urgent need to expand inclusive financial services in rural and geographically dispersed areas, where physical access barriers remain critical. By focusing on household microdata and applying a multidimensional poverty lens, this study makes a novel contribution to the literature on financial inclusion, poverty, and provides policy-relevant evidence for achieving Sustainable Development Goals (SDG 1 and SDG 10).This study demonstrates how financial inclusion significantly reduces both absolute and multidimensional poverty among households in Eastern Indonesia, a region marked by persistent inequality and limited access to financial services. Using microdata from over 100,000 households and an Instrumental Variable Probit model, the research confirms that financial inclusion has a stronger poverty-reducing effect once endogeneity—particularly transaction costs—is addressed. Access to credit is shown to be the most influential component, while savings and insurance also contribute to improved welfare. By incorporating both consumption-based and multidimensional poverty measures, the study provides a holistic understanding of how financial inclusion enhances education, health, and living standards in addition to income. The findings also reveal important spatial and gender differences: financial inclusion is most effective in rural areas, while female-headed households experience stronger multidimensional benefits. The study advances the literature by offering rigorous, household-level evidence from one of Indonesia’s least studied regions. Further, these results directly support Indonesia’s financial inclusion agenda and contribute to global efforts to achieve SDG 1 and SDG 10. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2588925 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2588925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2588925 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2449190_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mingyao Wang Author-X-Name-First: Mingyao Author-X-Name-Last: Wang Author-Name: Normaziah Mohd Nor Author-X-Name-First: Normaziah Author-X-Name-Last: Mohd Nor Author-Name: Norhuda Abdul Rahim Author-X-Name-First: Norhuda Author-X-Name-Last: Abdul Rahim Author-Name: Faisal Khan Author-X-Name-First: Faisal Author-X-Name-Last: Khan Author-Name: Yuxiang Cheng Author-X-Name-First: Yuxiang Author-X-Name-Last: Cheng Title: Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries Abstract: Corporate financialization in intensively polluting industries has become a critical factor in understanding the intersection of financial behaviour and sustainable development. This study investigates which specific forms of uncertainty including economic policy, monetary policy, trade policy, and oil price uncertainty can significantly influence financialization within China’s intensively polluting sectors. Utilizing a panel dataset of Chinese A-share listed companies from 2011Q1 to 2022Q4, this study applies Principal Component Analysis (PCA) to construct a multidimensional index of financialization, followed by panel regression analysis. Findings reveal that global economic policy uncertainty exerts the most significant impact on corporate financialization in these industries. Furthermore, financing constraints negatively moderate this relationship, while Environmental, Social, and Governance (ESG) practices have positive moderating effects. Firms with higher managerial overconfidence exhibit increased levels of financialization. Additionally, heterogeneity exists across firms, with those incurring higher environmental protection fees, non-state-owned enterprises, and firms based in developed eastern regions displaying elevated financialization levels. Diversification and external monitoring also positively influence this relationship. Robustness tests confirm the consistency of these findings, providing valuable insights for firms seeking to strategically leverage ESG, financial technology (FinTech), and financialization practices in response to fluctuating uncertainties.Corporate financialization in intensively polluting industries significantly shapes the interplay between financial strategies and sustainable development. This study highlights that global economic policy uncertainty is the most influential factor driving financialization within China's intensively polluting sectors. Key findings reveal that financing constraints weaken this relationship, while Environmental, Social, and Governance (ESG) practices enhance it, underscoring the importance of sustainability in financial decision-making. Firms with higher managerial overconfidence and those incurring higher environmental protection fees, as well as non-state-owned enterprises and those in developed regions, exhibit greater financialization. These insights suggest that firms can strategically leverage ESG practices, financial technology (FinTech), and external monitoring to navigate uncertainties effectively. The study provides critical guidance for policymakers and firms to balance economic performance with environmental responsibilities, fostering sustainable economic transitions amidst global uncertainties. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2449190 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2449190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2449190 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2476094_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: T. Mallikarjunappa Author-X-Name-First: T. Author-X-Name-Last: Mallikarjunappa Author-Name: Diana Saldanha Author-X-Name-First: Diana Author-X-Name-Last: Saldanha Author-Name: Iqbal Thonse Hawaldar Author-X-Name-First: Iqbal Thonse Author-X-Name-Last: Hawaldar Title: Do stock markets exhibit cyclical market efficiency? Emerging markets’ perspective Abstract: This article assesses cyclical market efficiency under different market conditions. We examine the cyclical return predictability, the time-varying effectiveness of trading strategies and their profitability, along with the relationships between volume and price. We select a diverse set of indices namely Nifty Next 50, BSE Sensex, IBOV (Brazil) and JSE (South Africa) and use the data for the years 2005 to 2022. We use linear and non-linear autocorrelation tests, regression analysis and Granger causality tests to explore the different phases of market efficiency across these indices. Our results offer a multifaceted understanding of market efficiency, highlighting various aspects of the data across different regions and market structures. We cross-validate our findings, adding robustness to our understanding of the manifestation of the adaptive market hypothesis (AMH) in the global stock markets. We use a rolling window framework and structural break tests to ensure that our findings are resilient to potential structural changes. The results reveal varying degrees of market efficiency across all indices, providing useful implications for both academia and industry. Our results show that portfolio diversification benefits exist. Future research could examine whether the markets across and within countries offer diversification benefits.Market efficiency has been a topic of interest for a long time. Different papers and books have been written examining different forms of market efficiency like weak form, semi-strong form and strong form. However, studies have shown that markets are not always efficient in different forms. Markets do exhibit efficiency at some point in time and efficiency is not found at another point in time. Therefore, market efficiency is said to be time varying. We investigate this time varying nature of market efficiency in the context of adoptive market hypothesis (AMH) by using the market indices data of four different markets across three emerging economies and test the AMH. We examine the cyclical return predictability, the time-varying effectiveness of trading strategies and their profitability, along with the relationships between volume and price in the data. To investigate the cyclical characteristics of market efficiency, we select a diverse set of indices namely Nifty Next 50 (representing companies in the growth phase), BSE Sensex (a mature market index from India), IBOV (Brazil) and JSE (South Africa) and use the data for the years 2005 to 2022.We employ a combination of linear and non-linear autocorrelation tests, regression analysis and Granger causality tests to explore the different phases of market efficiency across these indices. The results reveal varying degrees of market efficiency across all indices, providing useful implications for both academia and industry. Our results show that portfolio diversification benefits do exist. if appropriate markets are used. Future research could examine whether the markets across countries and withing countries offer diversification benefits. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2476094 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2476094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2476094 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2488395_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bulo Feyisa Author-X-Name-First: Bulo Author-X-Name-Last: Feyisa Author-Name: Addisu Karafo Author-X-Name-First: Addisu Author-X-Name-Last: Karafo Author-Name: Habtamu Aweke Author-X-Name-First: Habtamu Author-X-Name-Last: Aweke Title: The economic impact of Covid-19 on privately owned businesses: a case study of Jinka Town Abstract: Since its outbreak in China in November 2019 and its rapid spread worldwide within a few months, COVID-19 has profoundly impacted the global economy, contributing to multidimensional poverty and an unprecedented crisis globally, with Ethiopia being no exception. This study aims to assess the pandemic’s impact on private firms’ income, employment, and societal livelihoods in Jinka town, Ethiopia. Utilizing both secondary data from scholarly literature and primary data collected through surveys, the study analyzed responses from 193 randomly selected private businesses out of a total of 3492 in the town. The findings reveal significant disruptions in business operations due to decreased demand, movement restrictions, increased transportation costs, limited access to affordable inputs, and reduced orders. The average monthly expenditure of enterprises declined from 17,027.74 Birr before the pandemic to 11,752.20 Birr afterward, a reduction that directly impacted employment, as salaries constitute a major share of private sector expenditures. Similarly, the average income fell from 22, 234.70 Birr to 11,273.54 Birr, resulting in a total income loss of 38,276,370.72 Birr across the sector in Jinka town.At the international, national, and local levels, the COVID-19 pandemic has had significant and far-reaching economic effects. This article assesses the pandemic’s multifaceted effects on employment, global supply chains, economic activity, and fiscal stability. It draws attention to how COVID-19’s disruption resulted in GDP contractions, skyrocketing unemployment rates, and a rise in poverty, particularly in developing countries. The study emphasizes how vulnerable the micro, small, and medium-sized businesses (MSMEs) and informal sectors are, as they have a difficult time continuing to operate. The paper also highlights how important government actions, such as stimulus plans and monetary easing, are in halting economic downturns. The paper offers a thorough analysis of the pandemic’s effects, which is helpful for policymakers, economists, and development professionals who want to create more robust Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2488395 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2488395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2488395 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2483865_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Avik Ghosh Author-X-Name-First: Avik Author-X-Name-Last: Ghosh Author-Name: Ankit Magotra Author-X-Name-First: Ankit Author-X-Name-Last: Magotra Title: Deposit insurance structure and deposit growth dynamics: a cross-country empirical exploration Abstract: This study investigates the impact of Deposit Insurance Systems (DISs) structure on deposit growth across 40 major global economies. Using panel data regression and an instrumental variable model, we find that government-administered DISs significantly reduce deposit growth, particularly in developed economies where private administration is preferred. A key contribution is the identification of DIS implementation timelines as a critical determinant of deposit dynamics. Countries introducing DISs post-2005 experience stronger deposit growth, while earlier adopters show mixed outcomes. The study also uncovers economic-size-specific heterogeneity, revealing that developed nations favor private DISs frameworks, whereas emerging economies lean towards government-backed models. This research provides novel insights into how the DIS administration influences depositor confidence and financial stability. The findings highlight the need for policymakers to tailor their DIS frameworks to national economic structures, ensuring an optimal balance between depositor protection, financial resilience, and systemic risk mitigation.This study offers a rigorous empirical examination of how the administrative structure of Deposit Insurance Systems (DIS) - specifically, the public-private dichotomy- influences deposit growth across 40 major economies over a 23-year period. Employing fixed-effects panel regression and instrumental variable (2SLS) techniques, the paper addresses endogeneity by instrumenting DIS type with system mandate, premium structure, and regulatory scope. Findings reveal a significant negative association between government-administered DIS and deposit-to-GDP ratios, robust across alternative specifications and deposit measures. The research introduces a novel temporal framework, demonstrating that post-2005 DIS implementations exhibit stronger depositor responsiveness, indicating evolving confidence dynamics. Additionally, the study uncovers structural heterogeneity based on economic size and OECD membership, showing divergent deposit behaviors under different DIS types. This work advances the literature by linking DIS architecture to deposit-credit transmission mechanisms and systemic liquidity conditions. The results offer critical implications for macroprudential policy design, emphasizing the need for context-specific DIS frameworks that balance depositor protection with financial stability objectives. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2483865 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2483865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2483865 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2528446_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Rasaq Raimi Author-X-Name-First: Rasaq Author-X-Name-Last: Raimi Title: Do women contribute to the economy through landownership in Africa? A geographically weighted regression (gwr) approach Abstract: Women’s landownership is increasingly recognized as a driver of gender equity and inclusive growth, yet its macroeconomic effects remain understudied. This paper examines the growth impact of female landownership in 30 African countries using Ordinary Least Squares (OLS) and more advanced Geographically Weighted Regression (GWR). The study uses two measures of landownership: the share of women owning land, and a novel gender-gap index capturing differences in land ownership per square meter between men and women. Both OLS and GWR regressions reveal that while the percentage of female landowners is significantly related to growth, the gender-gap index is not. Therefore, policies aimed at increasing female landownership at the expense of male ownership may not enhance growth. Moreover, the OLS regressions show a nonlinear relationship in which female landownership positively affects growth only up to a certain threshold of which beyond these positive effects disappear. The GWR further show that only a small sample of francophone West African countries find a positive and significant impact of landownership on growth whilst the remaining countries produce insignificant estimates. These findings suggest that colonial and legal factors in Africa explain ‘why some women contribute to the economy through landownership and others do not’.This study shows that increasing women’s landownership can support economic growth, but only to a certain limit. In many African countries, especially some in francophone West Africa, the link between female landownership and growth is stronger due to legal and colonial history. However, simply transferring land from men to women does not guarantee better economic outcomes. The results suggest that efforts to boost growth through gender equity in landownership need to be tailored to each country’s unique context, rather than applying one-size-fits-all solutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2528446 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2528446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2528446 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2583761_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abas Omar Mohamed Author-X-Name-First: Abas Omar Author-X-Name-Last: Mohamed Title: The Belt and Road Initiative and job creation: empirical evidence from Africa’s jobless growth phenomenon Abstract: Africa's economic growth has largely failed to generate meaningful employment, despite sustained positive growth over the past two decades. A giant cross-continent, multisectoral investment initiative with the potential to accommodate a large number of semi-skilled workers is the Chinese-led Belt and Road Initiative (BRI). This study investigates the impact of the BRI on employment generation across 51 African member countries from 2000 to 2022. The study employs dynamic Generalized Method of Moments (GMM) and Two-Stage Least Squares (2SLS) methods to estimate country and firm-level panel datasets, providing both macro and micro-based empirical evidence. The results confirm the jobless growth hypothesis in Africa, indicating that while the BRI does not directly impact employment, it significantly complements economic growth by fostering job creation at both the country and firm levels. Specifically, the BRI contributes to a 1–10% reduction in unemployment at the firm level and an 11–17% reduction at the macro level. Extensive robustness checks support these findings, even amid heterogeneity in skill, gender, and income groups. The study offers long-term policy implications for African policymakers, suggesting inclusive policies that prioritize BRI’s second-phase investments in sectors that simultaneously drive economic growth and substantial job creation.A major limitation in the literature on the employment-output nexus is its narrow focus on theory testing, without sufficiently exploring viable policy options to foster more inclusive growth and job creation. To address this gap, this study seeks to advance the empirical boundaries of the field by investigating how membership in the Belt and Road Initiative (BRI) can mitigate Africa’s jobless growth in three aspects. First, it proposes BRI membership as an augmenting mechanism to Africa’s recent growth trajectory, potentially generating employment. Second, it advances the BRI employment literature by providing micro- and macro-based African context empirical evidence utilizing a large sample. Finally, the study examines the persistence of short-run GMM results on African job creation within a long-run framework. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2583761 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2583761 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2583761 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2514686_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Adrian-Gabriel Enescu Author-X-Name-First: Adrian-Gabriel Author-X-Name-Last: Enescu Author-Name: Monica Răileanu Szeles Author-X-Name-First: Monica Author-X-Name-Last: Răileanu Szeles Title: Investing decisions and life satisfaction for the elderly investors Abstract: Our paper examines the impact of investment choices on life satisfaction among elderly investors, using longitudinal data from waves 4-8 of the Survey of Health, Ageing and Retirement in Europe (SHARE). We applied a two-stage regression approach: first, a logit regression to address endogeneity with an instrumental variable, followed by ordered logit regressions. Countries were grouped based on economic conditions. The results illustrate that aggressive investing is a significant predictor of life satisfaction among elderly investors in less developed countries. Furthermore, the positive impact of aggressive investing among elderly investors is maintained robust after replacing the response variable with the positive outlook on life for both groups of countries. Mediation analysis suggests that life meaning mediates the link between aggressive investing and life satisfaction, with investment behavior potentially providing elderly individuals with a sense of purpose. Another finding of our paper is that investors from less developed European countries reported higher life satisfaction than non-investors while controlling for other factors that may influence the relationship. We have formulated policy recommendations aimed at increasing the life satisfaction of the elderly.This study shows that aggressive investing is linked to higher life satisfaction among elderly Europeans, especially in less developed countries. Using SHARE data and robust regression methods, we find that investment behavior can provide a sense of purpose, with life meaning acting as a mediator. The results support policies promoting financial inclusion to enhance well-being in later life. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2514686 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2514686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2514686 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2455386_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ketan Mulchandani Author-X-Name-First: Ketan Author-X-Name-Last: Mulchandani Author-Name: Santanu K. Ganguli Author-X-Name-First: Santanu K. Author-X-Name-Last: Ganguli Author-Name: Kalyani Mulchandani Author-X-Name-First: Kalyani Author-X-Name-Last: Mulchandani Title: Optimizing earning quality in bank finance: a theoretical model and empirical investigation in India Abstract: Agency theory highlights that debt serves as a tool to monitor managerial behaviour of the borrowing firms. We argue that in a privately negotiated banking system, the monitoring should encompass the earning quality of the firms. Accordingly, the paper develops a theoretical model that shows an inverted U-shaped relationship between earning quality and bank finance, implying an ‘optimum earning quality’ that maximises the benefit of the monitoring role of bank finance. The empirical results based on a sample of 1511 firm-years support the model and imply that the bankers’ monitoring must be adequate to encompass earning quality to generate benefit to cover cost of the latter at higher level of debt. Shortcoming of supervision means earning quality being compromised that leads to higher credit risk for the bankers. The bankers seem to rely more on collaterals over earning quality for credit risk mitigation. This finding aligns with the objective of the study which highlights a need for incorporating more robust mechanisms to evaluate earning quality of the borrowers. Therefore, the bankers’ monitoring must cover quality of earning of the borrowers more rigorously at higher level of debt.Agency literature suggests that debt is beneficial because it monitors the behaviour of the managers of the borrowing firms. To reap the benefit, the article posits that - in a privately negotiated banking system the monitoring should encompass the earning quality (EQ) of the borrowers. But EQ comes with a cost, as such, there is a ‘trade off’ between benefit and cost, revealing an ‘optimum earning quality’ that maximizes the net benefit of monitoring. Based on the argument a model is developed showing a concave relation between EQ and bank finance. Empirical evidence based on a sample of large and diverse firms in India supports the model, and further reveals that the monitoring by the bankers of the accounting numbers of the borrowing units may be suboptimal when the debt financing is high, and borrowing seems to be extended to the firms with lesser sustainable earning. For mitigating credit risk the bankers seem to depend more on collaterals. The findings of the paper suggest that the bankers’ due diligence should adequately take into account the EQ of the borrowing firms as disciplining and credit risk mitigation measures. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2455386 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2455386 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2455386 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2558032_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thu Phuong Ta Author-X-Name-First: Thu Phuong Author-X-Name-Last: Ta Author-Name: Duc Hoang Le Author-X-Name-First: Duc Hoang Author-X-Name-Last: Le Author-Name: Dinh Khoa Bach Le Author-X-Name-First: Dinh Khoa Bach Author-X-Name-Last: Le Title: A novel AUC-based feature selection method: empirical insights from machine learning in the credit scoring problem Abstract: This study introduces a novel AUC-based feature selection method designed to enhance the performance of machine learning models in credit scoring, particularly in the context of imbalanced datasets. Unlike traditional approaches that rely on statistical significance or accuracy-based metrics, our method directly incorporates Area Under the Curve (AUC) as an objective function during the feature selection process. We compare the effectiveness of Logistic Regression (LR) and Random Forest (RF) models, showing that RF, when combined with AUC-driven feature selection, significantly outperforms LR in terms of discriminatory power. Through extensive cross-validation and empirical testing using real-world credit data, the results demonstrate that the proposed method improves model generalization and stability. Our findings contribute to the literature by emphasizing the importance of optimizing for AUC during feature selection, an area previously underexplored, and by validating the suitability of tree-based models like RF for credit scoring tasks involving complex, high-dimensional, and imbalanced data.This paper proposes a novel AUC-based feature selection method to improve credit scoring models, particularly in imbalanced datasets. By directly optimizing for AUC, the approach enhances discriminatory power and model stability compared to traditional selection methods. Empirical results show that Random Forest models combined with AUC-driven selection outperform logistic regression, offering more accurate and robust predictions. The findings provide financial institutions with a practical framework to strengthen risk assessment and lending decisions Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2558032 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2558032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2558032 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2544177_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jarvis Tyrell Curry Author-X-Name-First: Jarvis Author-X-Name-Last: Tyrell Curry Title: Modeling the dynamic interplay between financial literacy, resilience, and emotional well-being across diverse demographics Abstract: This study examines the relationship between financial literacy, resilience, and emotional well-being through three key hypotheses. The Resilience Buffer Hypothesis is supported, with mediation analysis indicating that financial resilience is statistically associated with mediating the relationship of financial literacy on emotional well-being. The Socioeconomic Amplification Hypothesis is confirmed by findings that financial literacy has a stronger positive impact on low-income individuals’ well-being than on high-income individuals. The Gender Financial Confidence Gap Hypothesis is also supported, as women’s lower financial engagement is attributed to confidence deficits rather than knowledge gaps. The research employs structural equation modeling and regression analysis on a nationally representative dataset, revealing that financial literacy’s benefits are significantly moderated by individual resilience, socioeconomic status, and gender-based confidence levels. The study’s findings highlight the need for financial education programs that integrate resilience training, address socioeconomic disparities, and include confidence-building interventions for women to holistically enhance financial well-being across diverse demographics.This research provides robust evidence that financial literacy, resilience, and gender based confidence jointly shape emotional well-being and offers clear policy and educational implications. Structural equation modelling indicates that resilience fully mediates the relationship between financial knowledge and well-being, and that the marginal returns to financial education are greatest among low-income individuals, compelling a serious expansion of equitable access to personal finance instruction and resilience-building initiatives. Moreover, the data demonstrate that women’s lower engagement with complex financial tasks stems from self-confidence deficits rather than cognitive limitations, highlighting the importance of interventions designed to enhance financial self-efficacy among women. Collectively, these findings affirm that integrating financial education with psychological support and targeted outreach is essential to promoting financial stability, narrowing intergenerational wealth disparities and enhancing mental health across diverse populations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 8 X-DOI: 10.1080/23322039.2025.2544177 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2544177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2544177 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2449191_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Fazelina Sahul Hamid Author-X-Name-First: Fazelina Sahul Author-X-Name-Last: Hamid Title: Behavioral biases and over-indebtedness in consumer credit: evidence from Malaysia Abstract: Over-indebtedness in relation to consumer loans represents an important issue for consumers as it impacts their financial well-being. Identifying the risk factors associated with over-indebtedness is crucial in overcoming this problem. Existing literature shows that behavioral biases influence individuals’ financial decision making. This study analyses the relationship between behavioral biases and over-indebtedness among consumer loan holders in Malaysia. It aims to investigate whether self-control bias, overconfidence, mental accounting, and availability bias are linked to over-indebtedness. The analysis is done based on a sample of 433 credit card or personal loan holders. The results indicate that self-control bias is linked to higher overall over-indebtedness. Meanwhile, overconfidence and mental accounting are linked to lower overall over-indebtedness. Availability bias is shown to worsen credit card debt repayment decisions. These findings highlight the need for financial education programs that address self-control issues and raise awareness of behavioral biases, helping consumers make more informed financial decisions. Additionally, policymakers in Malaysia can leverage these insights to design targeted strategies that reduce over-indebtedness in managing consumer loans.This study explores how behavioral biases like self-control, overconfidence, mental accounting and availability bias contribute to over-indebtedness among consumer loan holders in Malaysia. The findings suggest that targeted financial education can help consumers make better financial decisions, reduce debt, and improve overall financial well-being. Addressing these issues supports SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities) by promoting financial literacy, responsible borrowing, and economic stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2449191 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2449191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2449191 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2490198_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yao Kouwonou Author-X-Name-First: Yao Author-X-Name-Last: Kouwonou Author-Name: Koffi Sodokin Author-X-Name-First: Koffi Author-X-Name-Last: Sodokin Title: Non-homothetic preferences, optimal public finance policy, and structural transformation Abstract: This study uses a comparative perspective to investigate how fiscal policies and budgetary mechanisms influence structural economic changes. By constructing a theoretical model rooted in the government’s non-homothetic preferences, we analyze how fiscal variables such as the tax burden, public deficit, and debt levels asymmetrically impact both intensive and extensive economic transformations across various regional settings. Our empirical study, leveraging panel data over time period ranging from 2010 to 2022, identifies region-specific fiscal thresholds that define optimal ranges for these budgetary tools. The results highlight distinct patterns in the fiscal impact across regions as well as the institutional frameworks shaping the relationship between budgetary factors and structural transformation outcomes.This study reveals that fiscal policy influences economic development in regionally differentiated ways. While tax increases tend to hinder growth in CEMAC countries, they prove more effective in North Africa, where institutional quality is stronger. Budget deficits, in turn, display a non-linear relationship with development: when too large, they restrict investment capacity; when too small, they limit essential public spending. In sub-Saharan Africa, estimated fiscal thresholds, 12.7 percent for tax-to-GDP and 42.8 percent for public debt, mark a turning point beyond which returns diminish. To optimize outcomes, policymakers must design strategies that integrate institutional strengthening, sustainable investment, and effective, corruption-resistant revenue mobilization. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2490198 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2490198 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2490198 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2499695_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nyiko Worship Hlongwane Author-X-Name-First: Nyiko Worship Author-X-Name-Last: Hlongwane Title: An analysis of the impact of sectoral employment on economic growth in South Africa Abstract: This study aims to analyze the impact of sectoral employment on economic growth in South Africa. This study uses quarterly time series data from Q1 2008 to Q2 2024 collected from Quantec Easy Data. The results of the ARDL reveal that employment in agricultural, construction, wholesale, transport, financial, and private household sectors boosts South African economic growth in the short run, however, employment in manufacturing and other sectors negates economic growth. The ARDL long-run results reveal that employment in the transport and financial sectors boosts economic growth, however, employment in agricultural and other sectors negates economic growth in South Africa. The robustness checks of the DOLS findings indicate that employment in agricultural, wholesale, community, and private household sectors boosts economic growth in the short run in South Africa. The robust FMOLS results indicate that employment in construction, transport, and community sectors boosts economic growth, however, employment in mining, manufacturing, electricity, and other sectors negates economic growth in South Africa in the long run. The study recommends that policymakers and the government offer support focused on agriculture, construction, wholesale, transport, community, and private household sectors through subsidies, tax incentives, and training programs for economic growth.This study has the potential to make a significant impact on our understanding of the relationship between sectoral employment and economic growth in South Africa. The findings can inform evidence-based policymaking, contribute to academic knowledge, and have practical implication for business, industry, and labour market stockholders. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2499695 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2499695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2499695 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571863_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ahandi Vincent Lompo Author-X-Name-First: Ahandi Vincent Author-X-Name-Last: Lompo Author-Name: Achille Augustin Diendéré Author-X-Name-First: Achille Augustin Author-X-Name-Last: Diendéré Title: Macroeconomic effects of political instability in the WAEMU: an analysis of investment efficiency Abstract: This article analyses the macroeconomic effects of political instability through the efficiency of domestic investment in the countries of the West African Economic and Monetary Union (WAEMU). The estimation method considered in this analysis is the Autoregressive Distributed Lag (ARDL) method. The analysis uses panel data covering the period from 2002 to 2021. This work differs from previous work because it captures the efficiency of investment using the incremental capital output ratio (ICOR) which is appropriate for low-income countries. In addition, this work takes into account the long-run view that is appropriate for macroeconomic analysis of political instability. The results reveal that, in the long term, political instability reduces the efficiency of domestic investment, public investment and private investment. The results suggest that the macroeconomic efficiency of domestic investment should be sought by combating political violence, government instability and internal conflicts, which are three key indicators of political instability. The results also suggest that emphasis should be placed on protecting private investment, which is more vulnerable than public investment in the context of political instability in the WAEMU.This article examines the macroeconomic effects of political instability through the effectiveness of investments in the West African Economic and Monetary Union (WAEMU). The value of this work lies primarily in the fact that it incorporates a long-term perspective appropriate to macroeconomic analyses of political instability, using the ARDL method. Furthermore, the effectiveness of investment as measured by the ICOR is a suitable tool for long-term analysis and macroeconomic analysis. Finally, another important aspect of the article is that it shows that the risk of political instability has a greater impact on private investment than on public investment. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571863 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571863 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494163_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Tadeo Masimengo Author-X-Name-First: Tadeo Author-X-Name-Last: Masimengo Title: Google search volume index and banks’ capital adequacy Abstract: Using Google searches for specific bank names, we construct the Bank Search Volume Index (BSVI) and investigate its predictive effect on banks’ capital adequacy. Based on the US bank-level financial data spanning from quarter one 2004 to quarter one 2020 and employing fixed-effects panel data analysis, we find that higher BSVI predicts reductions in capital adequacy. Specifically, a one standard deviation increase in BSVI forecasts a decline in capital adequacy over the next one, four, and eight quarters of 0.016 percent, 0.018 percent, and 0.011 percent, respectively. While the short-term predictive effect of BSVI agrees with various extant studies, which typically report only transient predictive power of Google Search Volume, the long-lasting predictive impact of BSVI (quarters 4 and 8) contrasts with most. Moreover, we find that when investor concerns about economic conditions rise, as measured by the Finance Stress Index (FSI), the predictive relationship between BSVI and capital adequacy reverses, consistent with the ‘flight-to-safety’ phenomenon.We create the Bank Search Volume Index (BSVI) using Google searches for specific bank names and study its predictive power on bank capital adequacy. We found that a higher BSVI predicts capital adequacy declines using US bank-level financial data from 2004 to 2020 and fixed-effects panel data analysis. BSVI’s short-term predictive effect matches numerous studies showing that Google Search Volume is only temporarily predictive. However, BSVI’s long-term predictive effect in quarters four and eight differs from most studies. When investors’ economic concern rises, as measured by the Finance Stress Index (FSI), the predictive relationship between BSVI and capital adequacy reverses. Legislators, regulators, and supervisors are expected to acknowledge the importance of the internet, especially Google, in financial matters and improve their institutions’ capacity to handle variations in search volume. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494163 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494163 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494163 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2520973_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ananya Dixit Author-X-Name-First: Ananya Author-X-Name-Last: Dixit Author-Name: Mohd. Yousuf Malik Author-X-Name-First: Mohd. Yousuf Author-X-Name-Last: Malik Author-Name: Bimal Jaiswal Author-X-Name-First: Bimal Author-X-Name-Last: Jaiswal Author-Name: Waheedullah Hemat Author-X-Name-First: Waheedullah Author-X-Name-Last: Hemat Title: Exploring the Nexus: Services Trade, Economic Growth and Current Account Dynamics in India Abstract: This article aims to study the impact of services trade on India’s economic growth and current account balance (CAB). Earlier studies in this subject have mostly looked at the goods sector. In such a context, by using relevant data post-globalisation from pertinent sources like world development indicators and Reserve Bank of India (RBI) handbooks this study brings in a novel approach by using the Balance of Payments Constrained Growth (BPCG) model and autoregressive distributed lag cointegration to estimate the balance of payments equilibrium growth rate for India’s service sector. The key service sub-sectors are also identified using long-run and short-run cointegration analysis based on the Johansen cointegration test and impulse response function. This study finds that India’s actual growth is at a rate higher than the equilibrium growth rate. Further sectoral decomposition reveals that India’s merchandise sector is also growing at a rate higher than the equilibrium growth rate, while the service sector’s rate of growth is lower than the balance of payments equilibrium growth rate. Among the major services in India’s trade basket, insurance, construction, telecommunication, transport and travel services were found to exhibit strong linkages. This study’s sector-specific analysis provides insights for policy implications and areas of strategic interventions.This research provides a comprehensive examination of the relationship between services trade, economic growth, and current account dynamics in India using a two-pronged empirical strategy. By integrating the Balance of Payments Constrained Growth (BPCG) model and cointegration analysis, the study quantifies the equilibrium growth rates for both merchandise and services sectors and evaluates their alignment with actual growth patterns. The findings underscore the stabilizing role of the services sector in mitigating current account deficits and identify key service sub-sectors—such as insurance, construction, and transport—as critical drivers of long-run economic growth. These insights offer valuable implications for trade and macroeconomic policy in developing economies and highlight the strategic importance of services trade in ensuring sustainable and balanced growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2520973 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2520973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2520973 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2441374_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Richard Arlie Author-X-Name-First: Richard Author-X-Name-Last: Arlie Author-Name: Christlyn Devina Susanto Author-X-Name-First: Christlyn Devina Author-X-Name-Last: Susanto Author-Name: Eurwyn Manggala Author-X-Name-First: Eurwyn Author-X-Name-Last: Manggala Author-Name: Moch. Doddy Ariefianto Author-X-Name-First: Moch. Doddy Author-X-Name-Last: Ariefianto Title: Carbon allowance and stock return: evidence from EU companies Abstract: We investigate the relationship between carbon allowance and stock return. We argue in favor of the expense hypothesis: the relationship between stock returns and carbon allowance is negative due to the greater net impact (operational cost exceeds reputation benefit) of rising carbon price. To verify the hypothesis, we employ the modified Fama French 3 Factor Model. We employed data from 139 European Union companies which comprise 86 Carbon-Intensive (CI) companies and 59 Non-Carbon Intensive (NCI) companies. The data is of monthly frequency from January 2010 to October 2023. Augmented Mean Group estimator is applied due to the presence of cross section dependence and slope heterogeneity. We found that carbon allowance has a significant negative relationship with stock return in Carbon Intensive companies. Our result is robust under an array of checking schemes. The study shed a new light on the field of energy economics, especially on how investor response for carbon allowance adoption by companies.Our study have found that involvement in Carbon Trading has a positive correlation to Stock Return for Carbon Intensive Companies (CI). This finding contributes to existing Carbon Trading literature. The finding also has a profound implication for company policy i.e. CI should optimize more on Carbon Trading. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2441374 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2441374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2441374 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460066_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Olajide O. Oyadeyi Author-X-Name-First: Olajide O. Author-X-Name-Last: Oyadeyi Author-Name: Tolulope T. Osinubi Author-X-Name-First: Tolulope T. Author-X-Name-Last: Osinubi Author-Name: Munacinga Simatele Author-X-Name-First: Munacinga Author-X-Name-Last: Simatele Author-Name: Oluwadamilola A. Oyadeyi Author-X-Name-First: Oluwadamilola A. Author-X-Name-Last: Oyadeyi Title: The threshold effects of inflation rate, interest rate, and exchange rate on economic growth in Nigeria Abstract: The study examines the optimum threshold effects of interest rates, inflation rates, and exchange rates in stimulating economic growth in Nigeria. The study adopts the threshold regression technique to ascertain the optimal benchmark beyond which these macroeconomic variables hurt growth. The results of interest rate-economic growth thresholds suggest targeting an average monetary policy rate of 16.5%, a prime lending rate of 20%, and a maximum lending rate of 30%. The results of inflation-economic growth thresholds suggest targeting a headline inflation rate of 9%, while core inflation of 8.7% and food inflation of 12.7% are all growth-enhancing for Nigeria. Lastly, the results of exchange rate-economic growth thresholds suggest that targeting a quarterly depreciation of not more than 2.4% for the official exchange rate and a quarterly depreciation of not more than 2.5% for the unofficial exchange rate are growth-enhancing for Nigeria. The results offer policymakers valuable insights, emphasising the significance of exchange rate management, interest rate management, and inflation rate management in promoting growth and emphasising the necessity of reforms to diversify exports, strengthen institutions, and improve the efficacy of monetary policy. Therefore, the study suggests that the Nigerian government should target the obtainable thresholds for growth to become sustainable.The study examines the optimum threshold effects of interest, inflation, and exchange rates in stimulating economic growth in Nigeria. The main aims of the paper are to establish the benchmark beyond which exchange rate depreciation becomes inimical to growth, to establish the benchmark beyond which interest rate hurts economic growth, and to establish the optimum benchmark beyond which inflation inhibits growth in Nigeria. For a more robust study, the study tested these macroeconomic variables across the official and unofficial exchange rates, the two broad classes of inflation (food and core inflation), and the different savings, deposit and lending interest rates in Nigeria. The findings provide evidence of the required interest rate, inflation rate and exchange rate thresholds that would promote growth in Nigeria offering policymakers valuable insights, and underscoring the significance of exchange rate, interest rate, and inflation rate management in fostering growth and improving monetary policy efficacy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460066 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460066 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457484_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jhunniors Puscan Visalot Author-X-Name-First: Jhunniors Author-X-Name-Last: Puscan Visalot Author-Name: Omer Cruz Caro Author-X-Name-First: Omer Author-X-Name-Last: Cruz Caro Author-Name: Alex Javier Sánchez Pantaleón Author-X-Name-First: Alex Javier Author-X-Name-Last: Sánchez Pantaleón Author-Name: Einstein Sánchez Bardales Author-X-Name-First: Einstein Author-X-Name-Last: Sánchez Bardales Author-Name: Angelica María Carrasco Rituay Author-X-Name-First: Angelica María Author-X-Name-Last: Carrasco Rituay Author-Name: River Chavez Santos Author-X-Name-First: River Author-X-Name-Last: Chavez Santos Title: Fiscal policy on Peru’s gross domestic product through fiscal multipliers, 2000 – 2022 Abstract: This study examines the impact of fiscal policy on Peru’s Gross Domestic Product (GDP) using fiscal multipliers and a structured vector autoregressive (SVAR) model to analyze the economic response to fiscal shocks. Fiscal multipliers were analyzed in the context of current government spending, capital spending, and taxes, considering quarterly data, to investigate their effects on Peru’s real gross domestic product. Using an SVAR methodology and impulse response analysis (IRF), it was possible to obtain that, after an increase in current spending, GDP initially decreases; and as time passes, it fluctuates and recovers. Capital spending shows that an increase leads to an almost immediate increase in GDP, and in the long term, it maintains stability. On the other hand, in response to taxes, initial negative effects were found in the short term. However, they are offset and tend to stabilize, where the magnitude and duration of this effect depend on several economic and political factors.This study provides critical insights into the effects of fiscal policy on Peru’s economic growth by analyzing fiscal multipliers through a structured vector autoregressive (SVAR) model. By evaluating the impact of government spending and tax policies on GDP from 2000 to 2022, this research uncovers the dynamic responses of the economy to fiscal shocks. Key findings include the contrasting short- and long-term effects of current and capital expenditures and the stabilization tendencies following tax-induced GDP declines. These results emphasize the importance of targeted capital investments and adaptive fiscal strategies to maximize economic growth while ensuring fiscal sustainability. The study offers valuable guidance for policymakers to craft more effective fiscal policies in Peru and comparable economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457484 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457484 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2577909_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Zaheda Daruwala Author-X-Name-First: Zaheda Author-X-Name-Last: Daruwala Author-Name: Faisal Khan Author-X-Name-First: Faisal Author-X-Name-Last: Khan Author-Name: Sharif Ullah Jan Author-X-Name-First: Sharif Author-X-Name-Last: Ullah Jan Title: Unpacking leverage and lagged effects: do digitally mature and complex firms outpace their rivals? Abstract: This study explores whether digitally transformed firms outperform non-digital counterparts in terms of stock return volatility asymmetry and leverage behaviour, focusing on firm-specific characteristics such as complexity and maturity within UAE firms. By examining the lagged effects of negative news on these behaviours, the study captures differences in market responses over time. Utilizing a firm-level Exponential Generalized Autoregressive Conditional Heteroskedasticity (E-GARCH) model and stock returns data from 2012 to 2024, the research analyses 661 firms (368 digitalised and 293 non-digitalised), categorised further by firm complexity and maturity. Leverage effects are evaluated across multiple lags, with significant findings emerging particularly at lag intervals four and five, indicating the relevance of historical return patterns and supporting theories of market underreaction and delayed information processing. To ensure robustness, Variance Decomposition Analysis (VDA) and Impulse Response Analysis (IRA) were applied, reinforcing the credibility of the results. Digitally transformed firms demonstrated strategic advantages through the use of digital technologies to enhance efficiency, expand market reach and innovate more rapidly, thereby positioning themselves competitively. The impact of macroeconomic variables, including GDP growth, inflation, and oil price fluctuations, was consistent with existing literature. These findings offer practical insights for investors seeking to optimise portfolio strategies by understanding leverage gaps and time-lagged market reactions between digital and non-digital firms. Moreover, policymakers may apply these insights to design more informed macroeconomic and industrial strategies. The study contributes to the growing literature on digital transformation by linking volatility dynamics with firm maturity and complexity in the UAE context. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2577909 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2577909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2577909 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494125_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sanglin Zhao Author-X-Name-First: Sanglin Author-X-Name-Last: Zhao Author-Name: Deng Hao Author-X-Name-First: Deng Author-X-Name-Last: Hao Author-Name: Bk Yua Author-X-Name-First: Bk Author-X-Name-Last: Yua Title: Digital trade and common prosperity: evidence from China Province Abstract: This study investigates the impact mechanism of digital trade on common prosperity using provincial panel data from 30 Chinese provinces between 2011 and 2023, employing empirical analysis and case study approaches. The findings reveal that digital trade significantly promotes common prosperity through enhancing entrepreneurial activities, reducing unemployment, and stimulating innovation and R&D investment. Industrial structure optimization and logistics upgrading moderate this influence, with more pronounced effects observed in eastern and central regions. Key mechanisms include: (1) Digital trade facilitates entrepreneurial opportunities and job creation, thereby narrowing income disparities; (2) Industrial upgrading and efficient logistics amplify the spillover effects of digital trade. Regional heterogeneity underscores the necessity for tailored policy formulation. The research outcomes highlight the transformative role of digital trade in achieving inclusive growth, providing substantial policy implications for leveraging digital commerce to advance common prosperity in China.This study demonstrates the transformative potential of digital trade as a catalyst for inclusive prosperity in China. By integrating multidimensional indicators of digital trade and common prosperity, it provides a robust analytical framework that transcends traditional single-metric limitations, offering policymakers actionable insights to address regional disparities. Methodologically, the incorporation of a mediation-moderation model advances empirical rigor in understanding how digital trade drives equitable growth, emphasizing the synergistic role of infrastructure and innovation ecosystems. The research directly informs national strategies by advocating for targeted investments in digital infrastructure, region-specific skill development programs, and policies to bridge the digital divide. These measures not only mitigate risks of widening inequality but also align with China’s dual goals of sustainable development and shared prosperity. By linking digital trade dynamics to socioeconomic outcomes, this study equips stakeholders with evidence-based pathways to leverage digitalization for poverty alleviation, technological diffusion, and balanced regional development. Its implications extend beyond China, serving as a reference for emerging economies navigating the complexities of inclusive digital transformation. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494125 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494125 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2509620_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yudhvir Seetharam Author-X-Name-First: Yudhvir Author-X-Name-Last: Seetharam Author-Name: Kingstone Nyakurukwa Author-X-Name-First: Kingstone Author-X-Name-Last: Nyakurukwa Title: Sentiment-driven price explosiveness in blue-chip stocks: a Clog-log approach Abstract: Price explosiveness, typically observed in speculative markets such as cryptocurrencies and meme stocks, can also impact stable, mature stocks like those in the Dow Jones Industrial Average (DJIA). This study explores price explosiveness within the DJIA and examines how textual sentiment from news and social media influences this phenomenon. To identify price explosiveness in DJIA stocks, we employed the SADF and GSADF tests. The SADF test detects short-lived explosive behaviour by varying the endpoint of the sample window while holding the starting point fixed, effectively identifying localised bubbles. The GSADF test extends this approach by varying both the start and endpoint of the window, capturing a broader range of potential bubbles, including overlapping and sustained episodes. Applying these tests to daily closing prices, we calculated right-tailed ADF statistics and determined critical values using Monte Carlo simulations. Despite the DJIA’s stability, significant instances of price explosiveness occur, particularly during major events like the COVID-19 pandemic and general elections. Our analysis reveals that social media sentiment is more dominant in driving price explosiveness than news sentiment or broader economic uncertainty indicators.This study challenges the conventional view that price explosiveness is confined to speculative assets by demonstrating its presence in mature, stable stocks within the Dow Jones Industrial Average (DJIA). Using the SADF and GSADF tests, we find episodes of explosive price behaviour and show that social media sentiment plays a more significant role in triggering these dynamics than traditional news or macroeconomic indicators. These findings have important implications for investors, policymakers, and regulators by highlighting the growing influence of non-traditional information sources on financial stability, even in established markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2509620 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2509620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2509620 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2507133_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kwadwo Boateng Prempeh Author-X-Name-First: Kwadwo Boateng Author-X-Name-Last: Prempeh Title: Do renewable energy and fiscal policy impede or promote carbon emissions in Ghana? Empirical evidence from Bayesian and quantile-on-quantile regression approaches Abstract: Addressing environmental degradation highlights the need for coordinated actions to restore ecological balance. This study examines how fiscal policies (taxation and government expenditure), renewable energy consumption, financial development, and population growth influence carbon emissions in Ghana from 1990 to 2020. Despite growing attention to sustainable development, the interplay between these factors in Ghana remains underexplored. Using Bayesian linear regression, Bayesian model averaging, and quantile-on-quantile regression, the findings indicate that taxation increases carbon emissions as higher tax revenues drive economic activities in carbon-intensive sectors. Conversely, government expenditure reduces emissions through public investment in sustainable projects. Renewable energy consumption is the most effective factor in mitigating emissions, showing a strong negative association with carbon emissions. Financial development and population growth are positively linked to emissions, suggesting that economic expansion and demographic shifts contribute to environmental pressures. These results emphasise the importance of green fiscal reforms and increased investment in renewable energy to balance economic growth with environmental sustainability. The study provides policymakers with insights to align fiscal and financial strategies with emission reduction targets and the Sustainable Development Goals.This study provides empirical evidence that renewable energy consumption is the most powerful factor in reducing carbon emissions in Ghana, while taxation and financial development tend to increase emissions. Using advanced statistical methods (Bayesian and quantile-on-quantile approaches), the research demonstrates that government expenditure on sustainable projects can effectively mitigate emissions. These findings offer crucial insights for policymakers seeking to balance economic growth with environmental sustainability. The research supports Ghana's climate commitments under the Paris Agreement and provides actionable recommendations for fiscal policy reform, green financing initiatives, and renewable energy investment. The methodological framework and policy implications have relevance beyond Ghana to other developing economies facing similar environmental and economic challenges. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2507133 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2507133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2507133 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2584624_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Thanh Huu Phu Nguyen Author-X-Name-First: Thanh Huu Phu Author-X-Name-Last: Nguyen Author-Name: Ho Hoang Gia Bao Author-X-Name-First: Ho Author-X-Name-Last: Hoang Gia Bao Author-Name: Hoang Phong Le Author-X-Name-First: Hoang Phong Author-X-Name-Last: Le Title: US economic and political instability and vietnamese stock returns: the roles of firm size and government ownership Abstract: Episodes of economic and political instability in the United States have frequently been considered sources of disruption for emerging economies that are closely integrated with global markets. This research investigates how shocks are transmitted from US economic and political volatility to corporate equity performance in Vietnam, emphasizing the moderating influence of firm size and government ownership. Applying the System Generalized Method of Moments (SGMM) approach, our results reveal a positive causal linkage between US uncertainty and the stock performance of Vietnamese firms. Such a surprising outcome may be explained by a “flight-to-safety” mechanism, in which investors redirect capital toward emerging markets like Vietnam during times of turbulence in the US. The strength of this effect is not uniform across firms; smaller entities and those without state participation display greater positive spillovers. These findings provide meaningful guidance for investors, corporate leaders, and policymakers in developing economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2584624 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2584624 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2584624 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2594871_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Jamal Husein Author-X-Name-First: Jamal Author-X-Name-Last: Husein Author-Name: S. Murat Kara Author-X-Name-First: S. Murat Author-X-Name-Last: Kara Author-Name: Umesh Kumar Author-X-Name-First: Umesh Author-X-Name-Last: Kumar Author-Name: Trevor Shonhiwa Author-X-Name-First: Trevor Author-X-Name-Last: Shonhiwa Title: Purchasing power parity revisited: a comprehensive panel study with structural breaks and common factors across 63 economies Abstract: We reassess the long-run validity of Purchasing Power Parity (PPP) using the PANIC–Fourier panel unit-root test that allows for smooth structural breaks and common factors, complemented by sharp breaks and common-factor panel tests, on monthly real effective exchange rate (REER) data for 63 countries (1994–2025). Across specifications, the joint panel tests fail to reject the unit root null hypothesis, indicating nonstationary real exchange rates at the panel level. In individual PANIC–Fourier tests, stationarity emerges only for a small subset of countries, corroborated by sharp-break common-factor panel tests. These results caution against relying on PPP as a stand-alone valuation anchor in policy settings and suggest that PPP-based assessments should be supplemented with tools that incorporate global shocks, structural asymmetries, and nonlinear adjustment. Our findings help reconcile mixed evidence in the literature by showing that once cross-sectional dependence and gradual breaks are modeled jointly, panel-wide support for PPP largely dissipates. The study’s originality lies in integrating Fourier-based smooth-break modeling with common-factor PANIC decomposition over a large, globally representative panel, providing new evidence on the persistence of real exchange rate misalignments and their policy implications for inflation-targeting and exchange rate assessment frameworks.This study reassesses the Purchasing Power Parity (PPP) theory using a modern panel econometric approach that incorporates structural and dynamic market forces across sixty-three countries. The findings show that real exchange rates remain largely nonstationary, indicating persistent deviations from parity and cautioning against relying on PPP as a sole tool for exchange rate valuation or policy design. The study’s contribution lies in integrating advanced econometric methods to provide a more nuanced understanding of long-run exchange rate behavior, offering insights relevant for policymakers, central banks, and international financial institutions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2594871 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2594871 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2594871 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2560023_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Usama Saleem Author-X-Name-First: Usama Author-X-Name-Last: Saleem Author-Name: Umara Noreen Author-X-Name-First: Umara Author-X-Name-Last: Noreen Author-Name: Attayah Shafique Author-X-Name-First: Attayah Author-X-Name-Last: Shafique Author-Name: Nevi Danila Author-X-Name-First: Nevi Author-X-Name-Last: Danila Title: Downside risk applied to bankruptcy predicting models Abstract: This study investigates the effectiveness of business failure prediction models for Pakistani companies. The research examines three well-known models: Altman’s Z-Score, Ohlson’s O-Score and Shumway’s hazard model. The data from 144 firms (72 bankrupt and 72 non-bankrupt) over 25 years from 1999 to 2024 are used. We employed multiple discriminant analysis (MDA), Logit, and Probit statistical techniques for our analysis. Findings reveal that the Altman model demonstrates moderate success, accurately predicting bankruptcy 83.9%–94.6% of the time. However, it struggles with non-bankrupt firms, misclassifying them as bankrupt in 61.1%–91.1% of cases. The model is refined and accurately predicted the company delisting over 80% of the time and achieved 100% accuracy in identifying stable, successful firms. The study also proposes new models tailored to the Pakistani context, achieving an overall 80% accuracy rate in predicting business failure. Importantly, the research cautions against overreliance on these models when assessing financially healthy companies in Pakistan, as prediction accuracy for such firms remains low. In conclusion, the study demonstrates that while established models like Altman’s Z-Score have some utility in the Pakistani market, locally adapted models offer superior predictive power. This research contributes valuable insights for investors, creditors, and policymakers involved in assessing the financial health of Pakistani companies.The study investigates the effectiveness of business failure prediction models for pakistani companies. Mixed findings are revealed as old predictive models shows less acuracy than the modified predictive models. This research contributes valuable insights for investors, creditors, and policymakers involved in assessing the financial health of Pakistani companies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2560023 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2560023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2560023 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2524572_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Harold M.L. Utouh Author-X-Name-First: Harold M.L. Author-X-Name-Last: Utouh Author-Name: Felician Andrew Kitole Author-X-Name-First: Felician Andrew Author-X-Name-Last: Kitole Title: Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania Abstract: Mega infrastructure projects are important for driving economic growth and development across nations, yet their impacts are often uneven, particularly in developing countries like Tanzania, where they leave vulnerable populations exposed to socio-economic challenges. This study examines the dynamics of mega infrastructure projects using Likert scale, Structural Equation Modeling and Two-Stage Least Squares to assess perceptions, economic impacts and trade-offs using data sampled from 350 respondents. The findings reveal that while these projects boost income per capita, asset ownership and business ownership, they negatively affect quality of life, access to services and literacy rates. Moreover, correlation analysis confirms a negative relationship between economic growth and development, indicating a trade-off where gains in one area may lead to losses in another. The study recommends enhancing public participation through structured engagement mechanisms, ensuring equitable resource allocation by mandating dedicated social investments, integrating sustainability principles through comprehensive impact assessments and establishing strong monitoring frameworks to track both economic and socio-economic outcomes. These strategies are crucial not only for Tanzania but also for other developing nations, where balancing rapid economic growth with inclusive and sustainable development is essential to ensuring that infrastructure projects benefit all communities equitably and leave no population behind.This study demonstrates that while mega infrastructure projects in developing countries like Tanzania can significantly boost economic growth, they often do so at the expense of broader economic development and social well-being, highlighting a clear trade-off between these outcomes. The findings underscore the need for inclusive planning, equitable resource distribution, and robust monitoring to ensure that the benefits of such projects are shared widely and do not exacerbate existing vulnerabilities. These insights provide actionable guidance for policymakers across the developing world to pursue infrastructure-driven progress without compromising sustainable and inclusive development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2524572 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2524572 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2524572 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2522333_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Xijin Zhou Author-X-Name-First: Xijin Author-X-Name-Last: Zhou Author-Name: Deqin Lin Author-X-Name-First: Deqin Author-X-Name-Last: Lin Title: The impact of carbon policy on regional green development-a quasi natural experiment based on carbon emission trading policy pilot in China Abstract: Carbon Emission Trading (CET) plays a crucial role in China’s pursuit of green development (GD) and the ‘dual carbon’ objectives. This paper selects the panel data of 30 provinces in China from 2009 to 2019 to measure the degree of GD and applies the difference-in-differences method to study the impact of carbon emission rights policy on the regional GD. The empirical results show that the CET policy can significantly promote the GD of cities where the policy is implemented, and the energy structure, green credit and digital technology play a mediating role. This study further finds that the policy is more effective in promoting GD in northern provinces and provinces with weaker public participation in environmental governance, stronger environmental governance intensity, and that the long-term impact of the CET policy is stronger than that of the short-term. This paper not only aids the government in comprehending the effectiveness and impact mechanisms of the CET policy in fostering regional green development, but also offers recommendations for green transformation of enterprises.This paper constructs a comprehensive indicators to measure regional green development and empirically investigates the impact of carbon emission trading policy. Meanwhile, we confirm the influencing pathway of energy structure, green credit, and digital technology. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2522333 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2522333 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2522333 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2555414_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdimalik Ali Warsame Author-X-Name-First: Abdimalik Ali Author-X-Name-Last: Warsame Author-Name: Ibrahim Abdukadir Sheik-Ali Author-X-Name-First: Ibrahim Abdukadir Author-X-Name-Last: Sheik-Ali Author-Name: Jama Mohamed Author-X-Name-First: Jama Author-X-Name-Last: Mohamed Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Title: Investigating the influence of humanitarian and development assistance on sustainable agricultural output in Somalia Abstract: In recent decades, foreign aid inflow in Somalia has increased. Yet, agricultural production and gross domestic product (GDP) are stagnant and have not made any tangible improvement. Therefore, this raises questions about the effectiveness of foreign aid in boosting agricultural productivity. To achieve this goal, this study assesses the role of total foreign aid, humanitarian aid, and development aid in Somalia’s agricultural production. We utilized an autoregressive distributed lag (ARDL) cointegration method with annual time series spanning 1989–2019. In the long run, total aid is not cointegrated with agricultural production in Somalia, according to empirical results. But humanitarian and development aid are cointegrated to agricultural production in the long run. Moreover, development aid has a constructive role in enhancing agricultural production in the long run, whereas humanitarian aid is inconsequential in the long run. These results are robust for different estimation methods. Based on the empirical findings, the study suggests that policymakers and donors strengthen their efforts to increase development aid. The development aid should be directed to the productive sectors, such as investing in agriculture equipment, infrastructure development, and human capital development, as these areas would have a positive impact on agriculture productivity.This study offers essential insights into the efficacy of foreign assistance in Somalia, demonstrating that not all forms of aid equally enhance agricultural output, a crucial factor in economic growth. The research delineates the unique long-term effects of humanitarian and development aid, emphasizing that only development aid substantially enhances agricultural productivity. These findings contest prevailing assumptions on aid efficacy and provide explicit direction for policymakers and donors to strategically allocate resources towards development aid aimed at productive assets, such as agricultural infrastructure and human capital. This research enhances comprehension of aid dynamics in unstable economies and facilitates better informed and effective development initiatives in Somalia and analogous environments. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2555414 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2555414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2555414 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2566226_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Wajid Shakeel Ahmed Author-X-Name-First: Wajid Shakeel Author-X-Name-Last: Ahmed Author-Name: Faheem Aslam Author-X-Name-First: Faheem Author-X-Name-Last: Aslam Title: Do trade openness and derivative markets nexus play vital role on economic development? Empirical investigation from developed and emerging economies Abstract: The persistent global risks make the situation more challenging for the economies to show progression in economic growth. A well-functioning derivative market makes it feasible for firms to share risk effectively by means of financial development which contributes immensely in overall economic development. This study focuses on evaluating the financial growth and economic development nexus through trade openness in developed and emerging economies. The study dataset comprises of upper- and middle-income group economies and applied the Granger causality test along with panel regression fixed effect (FE) and panel corrected standard error (PCSE) model techniques. The findings reveal that bidirectional homogenous Granger causality exists universally among derivative markets and economic development. The study establishes that derivative markets are integrated with economic development and macroeconomic variables in countries with high income compared to the upper-middle-income group. The findings favour the PCSEs model over the FE model with conclusive evidence. Furthermore, openness to trade significantly contributes more to financial development compared to macroeconomic variables. Results based on the IRF test statistics confirm that the derivative market response of shocks is statistically significant to GDP and trade openness for upper-middle-income economies. This study makes an original contribution by considering trade openness, derivative markets and macroeconomic factors play vital role in the growth nexus especially for emerging economies.The persistent global risks continue to challenge economies in achieving sustained economic growth. The development of well-functioning derivative markets emerges as a critical mechanism that helps fostering broader financial development and contributing significantly to overall economic progress. The findings reveal interesting insight related to bi-directional, and homogeneous Granger causality among derivative markets and economic development, highlighting their mutual reinforcement. Moreover, the study establishes that derivative markets are more deeply integrated with economic advancement and macroeconomic variables in high-income economies than in upper-middle-income counterparts. Importantly, the results also underscore that trade openness serves as a more substantial driver of financial development compared to other macroeconomic determinants. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2566226 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2566226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2566226 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2563158_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohammad O. Al-Smadi Author-X-Name-First: Mohammad O. Author-X-Name-Last: Al-Smadi Title: The impact of financial inclusion on sustainable development in the MENA region: the moderating effect of digital finance Abstract: Although sustainable development has attracted growing attention from academics and practitioners, the impact of financial inclusion on sustainable development needs more studies in the MENA region. Therefore, this study aims to investigate the effect of financial inclusion on sustainable development and examines the moderating effect of digital finance on this impact in the MENA region. Financial inclusion was measured by the ratio of outstanding loans from commercial banks to GDP, while digital finance was measured by the number of automated teller machines per 100,000 individuals. Four dimensions of sustainable development were measured: general sustainable development, economic sustainable development, social sustainable development, and environmentally sustainable development. A system-generalized method of moment panel analysis is conducted using annual data from 12 countries in the MENA region for the period 2004 to 2023. Additionally, three control variables are used in the study. The results confirm the role of DF in enhancing all dimensions of sustainable development in the MENA countries. In addition, the results prove the importance of digital finance in strengthening the relationship between financial inclusion and sustainable development. This research can be used by financial regulators and institutions in MENA countries to further sustainable development.This study explores the role of financial inclusion in promoting sustainable development across economic, social, and environmental dimensions in the MENA region by introducing digital finance as a moderating variable. The findings show a positive impact of financial inclusion on all dimensions of sustainable development, which is amplified by technological innovations. The findings suggest actionable insights for policymakers and financial institutions aiming to accelerate the improvement of the Sustainable Development Goals through directed digital financial strategies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2563158 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2563158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2563158 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2534668_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Richardson Kojo Edeme Author-X-Name-First: Richardson Kojo Author-X-Name-Last: Edeme Author-Name: Sulemana Mumuni Author-X-Name-First: Sulemana Author-X-Name-Last: Mumuni Title: Enhancing household consumption amid climate change and global uncertainty: Does governance matter? Evidence from African countries Abstract: This study aimed to investigate the moderation role of governance in enhancing household consumption in African countries amid climate change and global economic policy uncertainty. The study was based on 34 selected African counties. Data for this study covered 2011–2022. The empirical methodology adopted is the panel corrected standard errors estimation. The finding revealed that in the absence of governance, climate change indicators (CO2 emissions and precipitation) had positive influence on household consumption while rising temperatures had a negative and statistically significant influence on household consumption. Also, global economic policy uncertainty had a negative influence on household consumption in African countries. The interplay between climate variables, global policy uncertainty and governance were found to influence household consumption in African countries in diverse ways. This paper recommends the enforcement of good governance and stabilization of macroeconomic policies by African countries to mitigate the climate change and global economic policy uncertainty shocks on household consumption.This study examined the moderation role of governance in enhancing household consumption in African countries amid climate change and global economic policy uncertainty. The finding indicates that climate change and global economic policy uncertainty had negative influence on household consumption in African countries. However, the interplay between climate change, global policy uncertainty and governance were found to influence household consumption in African countries in diverse ways. This was undertaken to provide empirical insight on effective institutional quality which can guide policy makers in the design of targeted strategies to enhance household consumption amid climate change and global uncertainties. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2534668 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2534668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2534668 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2544168_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Khurshid Khudoykulov Author-X-Name-First: Khurshid Author-X-Name-Last: Khudoykulov Author-Name: Abdukodir Rasulov Author-X-Name-First: Abdukodir Author-X-Name-Last: Rasulov Author-Name: Petros Golitsis Author-X-Name-First: Petros Author-X-Name-Last: Golitsis Author-Name: Pavlos Gkasis Author-X-Name-First: Pavlos Author-X-Name-Last: Gkasis Title: Macroeconomic drivers of chemical industry stock prices: a comparative analysis of US and German markets Abstract: This study investigates the impact of macroeconomic factors—inflation, interest rates, exchange rates, money supply, and crisis events—on chemical industry index prices in the US and Germany, using the Autoregressive Distributed Lag (ARDL) model. The analysis identifies significant long-term relationships and short-term interdependence effects between the two markets. In the US, inflation and interdependence effects from Germany drive index prices, while Germany’s index is more sensitive to inflation, interest rates, and exchange rates. The US exerts a stronger influence on Germany, reflecting its global economic dominance. The findings also reveal faster adjustment to equilibrium in the US and greater resilience to crises compared to Germany. These insights provide valuable implications for investors, policymakers, and industry leaders.This paper examines the effects of macroeconomic indicators—such as inflation, interest rates, exchange rates, money supply, and episodes of crises—on chemical sector indices of the United States and Germany within the ARDL approach. The results reveal significant long-run and short-run relationships, with the US market exercising a larger influence on the market in Germany. The results help to add to the knowledge on cross-market interdependence for an internationally integrated sector, offering practical insights for investors, policymakers, and sector leaders to manage risk, to inform policy, and to make strategic investment decisions. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 8 X-DOI: 10.1080/23322039.2025.2544168 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2544168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2544168 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2571399_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nicholas Ruei-Lin Lee Author-X-Name-First: Nicholas Ruei-Lin Author-X-Name-Last: Lee Author-Name: Chun-Liang Lin Author-X-Name-First: Chun-Liang Author-X-Name-Last: Lin Author-Name: Han Xia Author-X-Name-First: Han Author-X-Name-Last: Xia Title: Market states and institutional herds: evidence from the Taiwan stock market Abstract: This study examines whether institutional herds, as defined by Chung and Kim, influence future excess returns across different market states in Taiwan stock market. Using specialized trading data aggregated from three major institutional investor groups, we focus on institutional herding behavior during market collapses and booms. Fama–MacBeth regression results show that overall institutional herding positively contributes to future excess returns during market downturns and across the full sample, but negatively during market booms. By dividing stocks into quintiles based on herding intensity, we find that concentrated herding (top 20%) tends to reduce returns during downturns, whereas broader herding helps stabilize the market. In booms, leading herding may enhance returns, while widespread herding tempers excessive gains. Portfolios with the highest institutional herding scores also yield higher cumulative returns than those with the lowest scores (bottom 20%). These findings underscore the critical role of institutional herding, particularly high-intensity herds in shaping market dynamics under extreme conditions, providing a comprehensive understanding of how institutional herds influence the Taiwan stock market.This study offers empirical insights into how institutional herding, particularly under extreme market conditions, influences future excess returns in Taiwan’s stock market. By distinguishing herding intensity and market phases, the findings reveal that herding behavior enhances return predictability during downturns but dampens performance during booms. These results contribute to a deeper understanding of institutional dynamics and their implications for market efficiency and asset pricing. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2571399 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2571399 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2571399 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2562346_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Karin Martin-Bujack Author-X-Name-First: Karin Author-X-Name-Last: Martin-Bujack Author-Name: Carmen Bada Author-X-Name-First: Carmen Author-X-Name-Last: Bada Author-Name: Susana De los Ríos-Sastre Author-X-Name-First: Susana Author-X-Name-Last: De los Ríos-Sastre Author-Name: Ana Daguerre-Torres Author-X-Name-First: Ana Author-X-Name-Last: Daguerre-Torres Title: Hydrogen economy horizons: assessing investment risks and opportunities Abstract: The global transition to a low-carbon economy positions hydrogen as fundamental for climate change mitigation and sustainable finance. However, the financial viability of hydrogen-related investments remains largely underexplored. This study addresses this gap by analyzing the risks and rewards of 123 publicly traded hydrogen-related companies globally from 2019 to 2022. Using a mean-variance approach, we characterize the evolution of hydrogen-related stock markets during their early phase. We provide the first comprehensive evaluation of investment opportunities across the entire hydrogen value chain and with a global sample of firms, expanding beyond previous limited geographical or stage-specific analyses. Our findings indicate that value chain positioning and geographical location significantly influence financial performance, unlike diversification. We offer a novel comparative analysis of the distinct financial impacts of both the COVID-19 pandemic and the 2022 energy crisis on hydrogen investments, revealing the latter’s greater negative effect. Our constructed optimal hydrogen portfolios consistently outperform global and sustainability benchmarks, particularly during turbulent periods, providing robust evidence for strategic investment. This research highlights the critical role of public and private investment, offering actionable insights for investors in portfolio construction and risk management and guiding policymakers in designing stable regulations to accelerate the hydrogen economy.This study offers the first comprehensive financial evaluation of investment opportunities across the entire global hydrogen value chain. It shows that a company's position in the value chain and its geographical location are key drivers of financial performance, and that optimal hydrogen portfolios consistently outperform global and sustainability benchmarks, especially during turbulent periods. This research provides actionable insights for both investors and policymakers: it guides investors in portfolio construction and risk management in this emerging sector, and it highlights the need for stable, targeted policies to accelerate the public-private funded transition to a hydrogen economy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2562346 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2562346 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2562346 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2502431_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Issa Dianda Author-X-Name-First: Issa Author-X-Name-Last: Dianda Title: Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability Abstract: Sub-Saharan Africa (SSA) stands as the epicenter of vulnerable employment. Among its key determinants, financial inclusion emerges as a critical yet underexplored factor. The region also exhibits comparatively low levels of financial inclusion. This paper investigates the heterogeneous effect of financial inclusion on vulnerable employment in SSA, with a particular focus on the moderating role of political stability. The empirical analysis relies on Quantile via Moments and Instrumental Variables Quantile Regression methods, using data from 25 countries over the period 2004–2019. The results show that financial inclusion significantly reduces vulnerable employment, with a stronger effect observed in countries where vulnerable employment is most prevalent. Moreover, political stability amplifies this narrowing effect. The findings also reveal that financial inclusion has a greater impact on reducing male vulnerable employment compared to female vulnerable employment. Additionally, all four dimensions of financial inclusion – usability, concentration, availability, and accessibility – contribute to lowering vulnerable employment. These results underscore the importance of policy reforms aimed at enhancing financial inclusion and strengthening political stability as essential levers for promoting access to quality jobs across the region.This research sheds new light on the persistence of vulnerable employment in sub-Saharan Africa. It analyses the heterogeneous effect of financial inclusion on vulnerable employment and the role of political stability. The results show that financial inclusion narrows vulnerable employment. This narrowing effect is more pronounced in countries with a high rate of vulnerable employment and amplified by political stability. These results can inform evidence-based employment policies while contributing to academic knowledge. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2502431 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2502431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2502431 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2459198_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Andrew Phiri Author-X-Name-First: Andrew Author-X-Name-Last: Phiri Author-Name: Izunna Anyikwa Author-X-Name-First: Izunna Author-X-Name-Last: Anyikwa Title: Connectedness and spillovers between African and global Islamic equities: implications for portfolio hedging and investment strategies Abstract: Despite the surge in interest of international investors in African and Islamic equities as portfolio diversifiers of international equities, surprisingly, little attention has been paid to the diversifying properties of these stocks against each other. Thus, we examine the spillover and connectedness effects between conventional African and global Islamic equities using the time-varying parameter (TVP-VAR) connectedness approach applied to daily time series spanning 16/05/2013 to 28/02/2024. We also adopted the minimum connectedness portfolio (MCoP) approach to extract multivariate and bivariate optimal portfolio weights for different combinations of African and Islamic equities. We find that the transmission effects of systemic shocks from Islamic markets to African markets are more prominent for Egyptian equities that are Sharia-compliant. Furthermore, larger, non-Sharia-compliant African markets such as South Africa and its closely integrated allies, namely Namibia and Botswana, are responsible for systemic shocks to other African markets. Lastly, larger African markets, such as Egypt, South Africa, and Namibia, improve the hedging effectiveness of multivariate optimum portfolios, whereas Islamic equities are more suitable for enhancing the hedging effectiveness of pairwise portfolio combinations with African equities. The investor and policy implications of these findings are further discussed.This study examines spillover dynamics between African and Islamic equity markets using the TVP-VAR connectedness model, spanning from May 2013 to February 2024. The study demonstrates how market size and financial system type dictate the degree of spillover effects across these regions. Larger non-Islamic markets like South Africa exhibit significant decoupling from Islamic market shocks, whereas smaller African markets are more susceptible. Egypt, as a prominent Shariah-compliant market, faces heightened exposure to systemic shocks from both African and Islamic sectors, notably influenced by its high inflationary environment and oil dependency.From a portfolio perspective, blending Islamic equities with African stocks generally diminishes overall hedging effectiveness unless strategically paired with specific markets like Egypt and South Africa. Conversely, coupling Islamic equities with individual African markets enhances portfolio stability, especially during pivotal global financial events such as the US taper tantrum and COVID-19 pandemic.These findings offer pivotal insights for investors and policymakers, urging tailored strategies that account for market-specific vulnerabilities and global monetary shifts. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2459198 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2459198 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2459198 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2490819_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikarim Abdullahi Farah Author-X-Name-First: Abdikarim Abdullahi Author-X-Name-Last: Farah Author-Name: Mohamud Ahmed Mohamed Author-X-Name-First: Mohamud Ahmed Author-X-Name-Last: Mohamed Author-Name: Mohamed Ali Farah Author-X-Name-First: Mohamed Author-X-Name-Last: Ali Farah Author-Name: Ismail Ali Yusuf Author-X-Name-First: Ismail Ali Author-X-Name-Last: Yusuf Author-Name: Mohamed Sharif Abdulle Author-X-Name-First: Mohamed Sharif Author-X-Name-Last: Abdulle Title: Impact of Islamic banking on economic growth: a systematic review of SCOPUS-indexed studies (2009–2024) Abstract: This systematic literature review investigates the influence of Islamic banking on economic growth by analyzing 68 studies from the SCOPUS database, spanning from 2009 to 2024. The findings consistently show a positive relationship between Islamic banking and economic growth, highlighting its role in fostering inclusive development, reducing economic volatility, and enhancing financial stability, especially during crises. Islamic banking also significantly contributes to social development and poverty alleviation through mechanisms, such as zakat and microfinance. The findings also suggest that integrating FinTech with Islamic banking could enhance the accessibility and efficiency of Islamic banking services. This study provides valuable insights for policymakers in designing regulations that promote financial inclusion, market efficiency, and economic resilience. Additionally, the adoption of technologies, such as blockchain, artificial intelligence, and digital banking can enable Islamic banks to offer secure, accessible, and transparent financial services while adhering to Shariah principles. Overall, Islamic banking makes a substantial contribution to economic growth and development. The study underscores the necessity for strategic regulatory frameworks and the integration of technology to fully leverage Islamic banking’s potential in enhancing economic stability and inclusivity.This study systematically reviews 68 SCOPUS-indexed studies published between 2009 and 2024 to explore the multifaceted relationship between Islamic banking and economic growth. The findings reveal that Islamic banking significantly promotes financial inclusion, macroeconomic stability, and sustainable development, especially in times of crisis. The review underscores the sector’s unique role in fostering ethical finance, poverty alleviation, and technological integration through FinTech. By synthesizing empirical insights across regions and methodologies, this work offers critical policy guidance for enhancing regulatory frameworks, integrating Islamic finance with national development strategies, and leveraging digital transformation. The study fills crucial gaps in the literature by mapping the evolving role of Islamic banking in global financial systems and its potential to drive inclusive and resilient economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2490819 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2490819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2490819 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2587236_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abraham Nii Adoteye Saka Author-X-Name-First: Abraham Nii Adoteye Author-X-Name-Last: Saka Author-Name: Christopher Gan Author-X-Name-First: Christopher Author-X-Name-Last: Gan Author-Name: Baiding Hu Author-X-Name-First: Baiding Author-X-Name-Last: Hu Title: Financial inclusion, poverty, and income inequality Abstract: Financial inclusion has emerged as a critical tool for promoting economic development, particularly in developing countries. By providing access to affordable financial services, financial inclusion fosters economic participation, reduces poverty, and reduces income inequality. In Ghana, where poverty and income inequality remain persistent, understanding the developmental role of financial inclusion is crucial. This study examines the impact of financial inclusion on poverty alleviation and income inequality in Ghana from 1980 to 2021. A key contribution of this study is the construction of a comprehensive financial inclusion index that integrates both banking and insurance data. This dual-component index captures the broader scope of financial inclusion compared to traditional metrics that often focus solely on banking. The results reveal that financial inclusion indirectly enhances human development by improving education, health, and income equality, even though it does not directly reduce household poverty. Additionally, GDP per capita, ICT literacy, and remittances significantly influence human development outcomes, while inefficient government spending and rural population growth constrain progress. The positive interaction between financial inclusion and GNI per capita underscores the importance of economic growth in amplifying inclusion’s developmental benefits. Strengthening Ghana’s financial system, particularly in rural areas, can further advance poverty reduction and inclusive growth.This study explores the impact of financial inclusion on poverty alleviation and income inequality in Ghana from 1980 to 2021. Using a comprehensive financial inclusion index derived from both banking and insurance data, it provides a broader perspective than previous studies that focused solely on banking indicators. The findings reveal that while financial inclusion does not directly reduce household poverty or increase consumption, it significantly enhances human development outcomes through improvements in education, health, and income equality. The results also emphasize the importance of economic growth, ICT literacy, and remittances in promoting development, while highlighting challenges such as inefficient government spending and rural population growth. By demonstrating the indirect but vital role of financial inclusion in fostering human development, this study offers valuable insights for policymakers seeking inclusive and sustainable economic growth in Ghana and similar developing economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2587236 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2587236 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2587236 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2480641_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ozcan Ozturk Author-X-Name-First: Ozcan Author-X-Name-Last: Ozturk Author-Name: Miranda Canga Author-X-Name-First: Miranda Author-X-Name-Last: Canga Title: The impact of oil prices on import demand in an oil-rich country: a multisectoral Bayesian approach Abstract: This study examines Qatar’s import demand function across sixteen economic sectors, employing a Bayesian approach to estimate the price, income and oil price elasticities. The findings reveal that import demand is predominantly price inelastic (−0.079 to −0.21), reflecting the country’s heavy reliance on imported goods due to limited domestic alternatives. In contrasts, income elasticities are highly elastic (4.582 to 6.353), indicating that import demand rises sharply with increasing income levels. Additionally, oil prices positively influence import demand in sectors such as Metals and Machinery/Electrical, highlighting that higher oil prices, which typically correlate with increased government revenues, lead to higher industrial imports. However, this dependence on oil revenues poses economic valnerabilities due to oil price fluctuations. Comparisons with oil-dependent economies such as Saudi Arabia, Kuwait, and the UAE confirm this pattern, whereas Norway’s sovereign wealth mechanisms mitigate such volatility. The findings indicate that price-based policies (e.g. tariffs) alone are insufficient to manage import volumes, emphasizing the need for structural economic reforms including diversification and enhanced domestic production. Given the high-income elasticities, strategic infrastructure investmentsin trade logistics and port facilities, are crucial to handle growing import volumes. Finally, by drawing parallels with other resource-rich economies, this research provides broader policy insights for oil exporting nations, stressing diversification, fiscal stabilization and trade resilience.This study provides critical insights into Qatar’s import demand dynamics, revealing the country’s strong reliance on imports and its sensitivity to income and oil price fluctuations. By employing a Bayesian approach, the research highlights the limitations of price-based policies in managing import volumes and underscores the need for structural economic reforms, including diversification and domestic production enhancement. The findings offer valuable policy implications for oil-exporting economies, emphasizing the importance of trade resilience and fiscal stability in mitigating risks associated with oil price volatility. These insights contribute to a deeper understanding of economic sustainability in resource-dependent nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2480641 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2480641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2480641 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448226_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Salimata Traore Author-X-Name-First: Salimata Author-X-Name-Last: Traore Author-Name: Richard K. Moussa Author-X-Name-First: Richard K. Author-X-Name-Last: Moussa Title: Digital finance, maize productivity, and welfare of farm households in Burkina Faso Abstract: Maize is a key product entering the consumption basket of households in Burkina Faso and is one of the main crops cultivated in the country. Maize productivity is thus important for food security and household welfare but is constrained by financial issues that can be alleviated by digital finance. Using data from the 2018 Living Standard Measurement Survey (LSMS) of Burkina Faso, we analyze the effects of digital finance uptake on maize productivity and spillover effects on farm households’ welfare. Our results indicate that the adoption of digital finance increases the agricultural productivity of maize producers, and in turn, has a beneficial effect on their welfare. These findings call to emphasize the alleviation of digital finance constraints and policies that aim to improve farmers’ productivity.This research highlights the importance of digital finance in improving agricultural productivity and the well-being of rural households in Burkina Faso. It offers new perspectives by showing that digital finance improves maize productivity and, consequently, the well-being of farming households. These results suggest the removal of barriers to access to digital financial services and the promotion of actions to strengthen the financial inclusion of farmers, thereby contributing to food security and poverty reduction. Translated with DeepL.com (free version). Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448226 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448226 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2587501_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Claire E. W. Yameogo Author-X-Name-First: Claire E. W. Author-X-Name-Last: Yameogo Author-Name: Joseph A. Omojolaibi Author-X-Name-First: Joseph A. Author-X-Name-Last: Omojolaibi Author-Name: Risikat O. S. Dauda Author-X-Name-First: Risikat O. S. Author-X-Name-Last: Dauda Title: The dynamic analysis of the impact of economic globalization and environmental quality on poverty level: an empirical study for West African countries Abstract: This paper examines the relationship between economic globalisation and environmental quality on the West African Countries poverty level from 1990 to 2021. The Feasible Generalised Least Square (FGLS) estimator was applied for empirical enquiry. The findings indicate that globalisation reduces carbon dioxide emissions and poverty, while trade globalisation significantly reduces poverty. Population growth also contributes to environmental degradation, while human capital reduces environmental degradation. Moreover, environmental degradation, urbanization, and human capital significantly reduce poverty in the sub-region. Higher CO2 and N2O emissions show strong negative associations with poverty, possibly reflecting emission-intensive currently driving economic activity. There is also an inverted U-shaped link between economic growth and environmental degradation indicators. Finally, the policy recommendation suggests that the region regulates the removal of barriers to trade for the globalisation process because it exacerbates income inequality and resource depletion in the region and uses environmental-friendly fertilisers in the production value chain.This study shows how economic globalisation and environmental quality together influence poverty in West Africa from 1990 to 2021. The results indicate that globalisation, especially through trade globalisation, helps reduce poverty while human capital improvements support better environmental outcomes. The findings also reveal that emission-intensive activities still play a key role in income generation, which explains why CO2 and N2O emissions are negatively linked to poverty. Finally, the study confirms an inverted U-shaped relationship between economic growth and environmental degradation, highlighting the need for policies that promote clean technologies, regulated trade liberalisation, and environmentally friendly production to achieve both poverty reduction and sustainability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2587501 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2587501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2587501 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460074_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Amaama Abdul Malik Author-X-Name-First: Amaama Author-X-Name-Last: Abdul Malik Author-Name: Asad Ul Islam Khan Author-X-Name-First: Asad Ul Islam Author-X-Name-Last: Khan Title: COVID-19 and the Okun’s law: the case of Ghana1 Abstract: The Covid 19 pandemic was a strong shock that plummeted into the entire interconnected economic activities of the world. As a result of the lockdown associated with the pandemic, the economies of the world were affected through restrictions like lockdown leading to the reduction of economic indicators like Gross Domestic Product (GDP) and increase in Unemployment. This paper set out to look at the relationship between the GDP and unemployment in Ghana in the periods prior and during the covid pandemic. The Autoregressive Distributed Lag (ARDL) model was used on data from 1991 to 2021. The result shows the nonexistence of the Okun’s law in Ghana in each of these periods. We conclude by advising policy makers to implement policies that directly generate more jobs like improvement in the agriculture sector through training and financial support to enable increased employment to match the increase in economic growth.Studies on the impact of GDP growth on unemployment indicate a negative relationship between them. This relation is formulated as the Okun’s law in the economic literature. According to Arthur Okun, a percentage increase in real GDP growth above the trend decreases the rate of unemployment by 0.5% using three different models on data from the US economy. This law is important when it comes to the decision making on key macroeconomic policies such as dealing with economic growth, unemployment, and improvement in employment. This study set out to check the existence of the law in Ghana before and after the Covid 19 pandemic. The findings of the study indicate no existence of the law in Ghana due to the mismatch between job creating sectors and the sectors steering economic growth. We advise policy makers to improve sectors like agriculture through training and financial support to enable increased employment to match the increase in economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460074 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460074 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2483869_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: P. V. Thayyib Author-X-Name-First: P. V. Author-X-Name-Last: Thayyib Title: Firm-specific determinants influencing tax avoidance among Indian multinational corporations: a panel regression approach Abstract: The unethical tax planning practices of Multinational Companies globally remain a significant and unresolved empirical issue in tax and accounting research. Despite growing research on multinational tax avoidance, research on its determinants remains sparse, particularly within the Indian context. The research aims to fill this gap by (1) identifying firm-specific factors utilized by Indian multinational corporations (MNCs) to minimize corporate tax liabilities, and (2) assessing the impact of the statutory corporate tax cut that took place in 2019 [Income Tax Law Amendment (TLA2019): from ∼34.94% to ∼25.17%] on these determinants. This study conducts a fixed-effect panel data analysis of firm-specific variables and their impact on corporate tax avoidance of Indian MNCs that were Nifty 500 constituents from 2015 to 2020. The results reveal that research intensity inversely correlates with multinational tax avoidance, which I measure through corporate GAAP Effective Tax Rates (ETR) and significantly widened Book-tax Difference (BTD). Additionally, profitability and firm size exhibited inverse relationships with ETR, signifying the potential influence of MNCs on policymaking. The tax-haven nexus significantly amplified BTD, indicating that MNCs prefer permanent difference-based tax-base avoidance strategies. Surprisingly, leverage and capital intensity did not reduce the ETRs, while leverage positively contributed to BTD expansion, highlighting the prevalent tax base avoidance practices. TLA2019 did not impact tax avoidance in India owing to the optional provisions of §115BAA of the Indian Income Tax Act, 1961. These findings underscore the need for targeted policy measures to curb tax avoidance, particularly in relationship-driven economies like India, where tax havens like Mauritius, Singapore, and Netherlands, and firm-specific factors play a crucial role in shaping corporate tax liabilities. The findings contribute to the ongoing debate on global tax fairness, highlighting the need for coordinated tax rules that prevent tax base erosion while ensuring that MNCs contribute fairly to domestic revenues of host countries.This study provides vital empirical insights into the firm-level determinants of corporate tax avoidance among Indian MNCs, a largely under-researched area in the South Asian context. By employing fixed-effects panel regression on Nifty 500 MNCs from 2015 to 2020, the research identifies key corporate attributes—such as profitability, firm size, research intensity, and tax haven linkages—that significantly influence both effective tax rates and book-tax differences. The findings highlight the strategic use of tax havens and firm-specific policies in minimizing tax liabilities and reveal the limited impact of India’s 2019 corporate tax rate reform. This work contributes to the global discourse on tax fairness by emphasizing the need for targeted domestic and globally coordinated international tax regulations that prevent base erosion while ensuring equitable corporate contributions to public revenue. The study holds significant policy relevance for emerging economies, which must balance the imperative of attracting Foreign Direct Investments (FDIs) with the need to uphold tax integrity—especially by curbing Phantom FDIs and tax-motivated Special Purpose Entities (SPEs). Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2483869 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2483869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2483869 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2521466_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Leonard Makuvaza Author-X-Name-First: Leonard Author-X-Name-Last: Makuvaza Author-Name: Sevias Guvuriro Author-X-Name-First: Sevias Author-X-Name-Last: Guvuriro Author-Name: Richard Chamboko Author-X-Name-First: Richard Author-X-Name-Last: Chamboko Author-Name: Johan Coetzee Author-X-Name-First: Johan Author-X-Name-Last: Coetzee Title: Modelling the recovery of distressed firms on the Johannesburg Stock Exchange: a Cox proportional hazard model approach Abstract: The Johannesburg Stock Exchange has been experiencing high levels of delisting over the past decade, drawing attention to the effectiveness of the mechanisms used to promote the recovery of financially distressed firms. This study analyses the factors that explain the recovery of financially distressed firms and estimates the firms’ time to recovery using a Cox proportional hazards model. Company annual financial statements curated by the IRESS database are used. The study contributes to the literature by illustrating the role of non-financial variables such as firm characteristics, distress events and business cycles in financial recovery. The median recovery time for financially distressed firms is about nine years suggesting a high risk of delisting. In addition, the study concludes that firm characteristics, distress variables, financial variables and business cycle indicators explain the recovery of distressed firms. Practically, distress variables can be used as early warning indicators of firms that are at risk of delisting thereby facilitating timely implementation of financial recovery mechanisms. The policy implication of the findings on business cycles is the need for the South Africa Reserve Bank to monitor economic expectations constantly and for policies that build confidence in the economy to enhance financial recovery on stock markets.This study analyses the factors that explain the recovery of financially distressed firms and estimates the firms’ time to recovery using a Cox proportional hazards model. This study is important because it provides alternative solutions to judicial mechanisms in resolving financial distress (these have been proven to be ineffective because companies under judicial measures have a small chance of recovery. Beyond financial variables, which are usually considered in financial distress research, this study established that distress variables can be used to classify firms at risk of delisting thereby enabling targeted and timely implementation of financial recovery mechanisms. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2521466 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2521466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2521466 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2528445_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdoul Hadirou Yoda Author-X-Name-First: Abdoul Hadirou Author-X-Name-Last: Yoda Title: Do remittances reduce labor force participation in Sub-Saharan African countries? Empirical evidence of heterogeneous effects and economic opportunity channels Abstract: This research explores the heterogeneous effects of migrant remittances on labor force participation in sub Saharan Africa countries. Particular attention is paid to the roles of the economic opportunity channels of financial development and entrepreneurship. The empirical analysis focuses on 30 sub-Saharan African countries and covers the period from 2005 to 2023, using the Driscol-Kraay estimator, the Lewbel instrumental variables approach, and the generalized method of moments (GMM) to address potential endogeneity and cross-sectional dependence issues. The results indicate that increasing migrant remittances has a negative effect on total labor force participation. However, financial development and entrepreneurship mitigate these negative effects by acting as mediating channels. Furthermore, these remittances have contrasting effects: they tend to reduce female labor force participation and boost that of male. These transfers reduce labor force participation in the low-income group of countries and have a negligible effect on that of the high-income group. In order to mitigate the distortions of these transfers on the labor market, these results call for the need for targeted policies to exploit the potential of remittances by improving financial development and ensuring a favorable entrepreneurial climate in migrants’ areas of origin.This research explores the complex relationship between migrant remittances and labor market participation in sub-Saharan African countries. Contrary to popular belief, we show that the effects are not uniformly negative. We identify key moderating mechanisms, including financial development and entrepreneurship, that transform these remittances into catalysts for economic opportunity. Our findings offer nuanced empirical evidence to policymakers. They can thus develop more effective migration and development policies aimed at maximizing the positive impact of remittances on labor market participation and, more broadly, on the region's economic development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2528445 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2528445 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2528445 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2541271_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Nasibu R. Mramba Author-X-Name-First: Nasibu R. Author-X-Name-Last: Mramba Title: Taxation of street vendors in tanzania: insights from the global best practices for inclusive policy development Abstract: Although several initiatives have been undertaken to increase tax collection in Tanzania, the country’s tax-to-GDP ratio remains below the average for both East Africa and sub-Saharan Africa. One of the major challenges facing tax collection in Tanzania is the presence of informal street vendors who are unregistered, operate without business licenses, and do not pay taxes. This study adopts a conceptual research approach, reviewing previous studies on the taxation of informal traders, reports by various United Nations agencies, and global best practices and case studies from other countries. The findings show that taxing street vendors is challenging due to the absence of a vendor database, low levels of education and skills, difficulties in tax administration caused by limited sales volume, cash transactions, vendor mobility, and the lack of formal business locations. For Tanzania to successfully tax street vendors, it should begin with creating awareness, adopting a participatory approach, setting affordable tax rates, ensuring transparency, and gaining political support. The successful implementation of inclusive taxation policies would be a crucial step toward achieving both economic justice and social progress for Tanzania’s informal sector.This study examines the taxation of street vendors in Tanzania, highlighting key challenges faced by informal workers and assessing current tax policies through a global comparative lens. By analyzing best practices from other countries, the research provides actionable insights for developing inclusive, equitable, and context-sensitive tax policies. The findings contribute to policy discourse on formalizing the informal economy, improving revenue collection, and enhancing social protection for marginalized urban populations. This work offers valuable guidance for policymakers, development practitioners, and scholars aiming to promote inclusive economic governance in Tanzania and beyond. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 8 X-DOI: 10.1080/23322039.2025.2541271 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2541271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2541271 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2460067_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Christelle Meniago Author-X-Name-First: Christelle Author-X-Name-Last: Meniago Author-Name: Brian Tavonga Mazorodze Author-X-Name-First: Brian Tavonga Author-X-Name-Last: Mazorodze Author-Name: Gisele Mah Author-X-Name-First: Gisele Author-X-Name-Last: Mah Title: Linking financial development and economic growth: do we have new evidence of the role of institutions in CFA countries? Abstract: This paper examines the relationship between financial development and economic growth in Communauté Financière Africaine (CFA) countries from the period 2003 to 2018. Drawing from a diverse dataset covering 13 countries, this research utilizes the Fully Modified Ordinary Least Squares technique to analyze the data. The findings reveal a significant positive relationship between financial development and economic growth, underscoring the importance of effective financial systems in fostering economic growth. Furthermore, the results emphasize the pivotal role of institutional quality on this relationship further demonstrating that while financial development acts as a catalyst for growth, its impact also relies on the quality of institutions. On the policy and practical front, the study suggests that policymakers in CFA countries should focus on expanding financial services and improving financial infrastructure. This could include making banking and credit more accessible for individuals and businesses, developing better financial markets, and making financial services more efficient. Additionally, the study recommends that improvements in the financial sector should go together with broader reforms in institutions. This means implementing policies that not only boost financial development but also strengthen institutional quality, thereby creating a strong and supportive environment for economic growth.This research investigates the relationship between financial development and economic growth in CFA countries, with a particular focus on the role of institutional quality. By analyzing data from 13 countries between 2003 and 2018, the study provides valuable insights into how financial development contribute to economic growth, while also emphasizing that the effectiveness of financial development is closely linked to the strength of institutions. The findings underscore the need for policymakers to enhance financial services, improve infrastructure, and strengthen institutional frameworks. This work is significant as it offers practical guidance for fostering sustainable economic growth in CFA African countries by highlighting the interconnectedness of financial development and institutional quality. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2460067 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2460067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2460067 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2457477_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Indra Suhendra Author-X-Name-First: Indra Author-X-Name-Last: Suhendra Author-Name: Navik Istikomah Author-X-Name-First: Navik Author-X-Name-Last: Istikomah Author-Name: Cep Jandi Anwar Author-X-Name-First: Cep Jandi Author-X-Name-Last: Anwar Author-Name: Apip Supriadi Author-X-Name-First: Apip Author-X-Name-Last: Supriadi Author-Name: Ali Abdul Wakhid Author-X-Name-First: Ali Abdul Author-X-Name-Last: Wakhid Author-Name: Eka Purwanda Author-X-Name-First: Eka Author-X-Name-Last: Purwanda Author-Name: Agus Salim Author-X-Name-First: Agus Author-X-Name-Last: Salim Title: Influence of the digital economy on economic growth: empirical study of a region in Indonesia Abstract: This research seeks to explore how the digital economy affects economic growth in 34 provinces in Indonesia by analyzing quarterly data from 2017 to 2022 using dynamic panel GMM estimation techniques. The findings indicated a lasting connection between the economy and economic growth along with a beneficial influence on economic development. The results suggest that policymakers should prioritize promoting the adoption of economic initiatives. Next on the agenda was the necessity of implementing regulations to govern commerce and offer perks to companies using technology. Subsequently, there was a need to improve the infrastructure of information and communication technology (ICT) and give priority to its accessibility across all regions. Furthermore, there is a call to enhance the skills and proficiency of workers and human resources within the ICT industry. Lastly, A crucial aspect is the call for investments aimed at boosting capabilities within the ICT and electronic business sectors.This study aims to examine the impact of the digital economy on economic growth in 34 provinces in Indonesia using quarterly data from 2017 to 2022. First, the study objective was carried out using POLS and fixed effect analysis, which showed a negative impact. An endogeneity test was then performed using the Durbin Wu Hausman test, and the results showed that the models had endogeneity problem. In this context, the best solution for endogeneity problem is applying a dynamic panel model. By performing panel GMM, the digital economy was found to have a positive and significant effect on economic growth. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2457477 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2457477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2457477 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2588932_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Alexandra Cheptiș Author-X-Name-First: Alexandra Author-X-Name-Last: Cheptiș Author-Name: Delia Diaconu Author-X-Name-First: Delia Author-X-Name-Last: Diaconu Author-Name: Alina-Nicoleta Radu Author-X-Name-First: Alina-Nicoleta Author-X-Name-Last: Radu Author-Name: Ciprian Necula Author-X-Name-First: Ciprian Author-X-Name-Last: Necula Author-Name: Bogdan Murarașu Author-X-Name-First: Bogdan Author-X-Name-Last: Murarașu Title: A sectorial assessment of the typology of economic crises in selected Central and Eastern European economies Abstract: By dating business cycles at the sectorial level, this paper analyses the two recent types of economic crises, namely the 2007–2009 Global Financial Crisis and the COVID-19 health crisis. Using PROBIT and quantile regression models and considering the current state of the economic sectors this study provides a method to depict the trends for the evolution of economy as a whole. Furthermore, it highlights the potential occurrence of extreme values of economic growth in the short term. Our findings demonstrate a clear and significant impact of sector-specific variables on the overall economy and contribute to a deeper understanding of the dynamics of economic crises. Models for estimating recession probabilities and extreme values of economic activity further emphasize the clear distinction between the two typologies of economic crisis. Analyzing the characteristics of recent economic crises from a sectorial perspective is essential for timely identifying macroeconomic vulnerabilities and recession triggers. Identifying the most affected economic sectors by recession type helps policymakers prioritize resources and interventions, ensuring that economic support, such as financial aid, job retraining, or stimulus packages is directed toward stabilizing the most impacted sectors. This understanding supports the development of effective policy recommendations for a timely and sustainable recovery from adverse shocks.Understanding the characteristics of the two recent types of economic crises, namely the financial crisis and the COVID-19 health crisis, from a sectoral point of view is of utmost importance to highlight macroeconomic vulnerabilities and triggers of recessions. Determining probabilities of initiating a contraction period in different sectors of the economy can mitigate the high volatility of sectoral economic performance, saving companies' financial solvency and employment stability, and ultimately avoiding a macroeconomic recession. Such records facilitate the formulation of relevant economic policy recommendations for prompt and sustainable recovery following the materialization of adverse shocks. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2588932 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2588932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2588932 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2451050_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Umar Kayani Author-X-Name-First: Umar Author-X-Name-Last: Kayani Author-Name: Suzan Dsouza Author-X-Name-First: Suzan Author-X-Name-Last: Dsouza Author-Name: Zafar Husain Author-X-Name-First: Zafar Author-X-Name-Last: Husain Author-Name: Farrukh Nawaz Author-X-Name-First: Farrukh Author-X-Name-Last: Nawaz Author-Name: Fakhrul Hasan Author-X-Name-First: Fakhrul Author-X-Name-Last: Hasan Title: Does the performance of financial technology (fintech) firms matter: evidence from North American and European fintech firms Abstract: This study aims to empirically investigate the factors that affect profitability so that fintech businesses can take precautionary actions against notified threats and attempt to boost such factors to improve performance. Our study aims to ascertain the factors that influence the business performance (by using financial ratios) of the fintech industry in North America and Europe. The relationship between the variables is tested through panel data analysis and additional analyses, such as examining the relationship during the global financial crisis (2007–2009), pre-COVID-19, and COVID-19 periods, to support our baseline results. Finally, the results of the 2SLS analysis used to address endogeneity and reverse casualty issues support our results for robustness. The results reveal that liquidity and working capital have a positive and significant impact on profitability; however, leverage has a negative impact during crisis periods. This shows that firms are flexible and ready to go for the leverage option as well for their survival. This negative relationship supports pecking order theory. Our empirical results have significant implications for international investors and managers. Additionally, this study provides insightful information to policymakers to improve countries’ policies regarding fintech industry development and avoid financial anomalies.This study provides crucial insights into the factors driving profitability in the fintech industry across North America and Europe, offering a comprehensive analysis using financial ratios and panel data. By examining these relationships during critical periods, including the global financial crisis (2007–2009), pre-COVID-19, and COVID-19, and addressing endogeneity through 2SLS analysis, the research ensures robust and reliable findings. The results highlight the significant positive impact of liquidity and working capital on profitability, while leverage emerges as a critical challenge during crisis periods, aligning with the pecking order theory. These findings have profound implications for international investors, managers, and policymakers, equipping them with actionable insights to enhance fintech industry resilience, optimize performance, and mitigate financial vulnerabilities in an evolving global landscape. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2451050 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2451050 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2451050 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2566951_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: ChiChong Tang Author-X-Name-First: ChiChong Author-X-Name-Last: Tang Title: Regional and global uncertainty and the impacts on the tourism and gambling industry of Macao Abstract: For decades, gambling has been Macao’s pillar industry. In 2023, the gambling sector accounted for 38.3% of Macao’s total economic output, highlighting its fundamental role in the city’s economy. In this study, we employ vector autoregression to examine the impact of regional and global uncertainty on Macao’s gambling industry. Our results indicate that both regional and global uncertainties negatively affect Macao’s gaming revenue, with gloabl uncertainty exerting a greater influence in the variance decomposition. However, the gambling industry remains highly resilient, as uncertainty—both regional and global—only accounts for approximately 16.7% of the variance decomposition of gaming revenue. Policymakers should consider this relative insensitivity when formulating economic policies in an increasingly uncertain global landscape and when pursuing economic diversification strategies. This paper also suggests that maintaining tourism and gambling as Macao’s pillar industry could help the city navigate economic and political uncertainty until a more resilient sector is identified.This study examines the sensitivity of Macao’s gaming industry to uncertainties. While economic diversification remains a key policy priority, developing sectors that are more vulnerable to uncertainty than gaming could increase the city’s exposure to economic fluctuations. The findings reveal that the gaming sector demonstrates notable resilience to both regional and global uncertainties. These results suggest that stakeholders should evaluate the robustness of different sectors before pursuing diversification, prioritizing those with equal or greater resilience to uncertainty. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2566951 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2566951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2566951 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2582893_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Enock Mwakalila Author-X-Name-First: Enock Author-X-Name-Last: Mwakalila Title: Fiscal operations and treasury bonds: is Tanzania experiencing investment crowding out? Abstract: This study examines how government domestic borrowing influences private sector credit in Tanzania, with a focus on potential crowding-out effects resulting from Treasury bond issuance. Using quarterly data from the Bank of Tanzania and the ARDL-ECM approach, this analysis examines both short- and long-run relationships between private credit and macroeconomic variables, including government debt, money supply, GDP growth, inflation, and interest rates. The results indicate a significant negative long-run relationship between government debt and private sector credit, suggesting that higher government borrowing through Treasury bonds constrains private investment by reducing the availability of loanable funds. Conversely, money supply and GDP growth positively drive credit expansion, while inflation and interest rates exert moderate effects. Diagnostic tests confirm model robustness and validity. The study concludes that excessive dependence on domestic borrowing can hinder private sector growth and recommends the implementation of coordinated fiscal and monetary policies, prudent debt management, and targeted private lending incentives to balance government financing needs with sustainable investment and economic growth.This study provides empirical evidence on how government domestic borrowing, particularly through Treasury bonds, affects private sector credit in Tanzania. By revealing a significant long-run crowding-out effect, it contributes to policy debates on balancing fiscal financing with private investment growth. The findings underscore the need for coordinated fiscal and monetary policies to prevent public borrowing from constraining private sector credit and long-term economic expansion. The study’s insights are crucial for policymakers, central bankers, and development partners seeking to design debt management and financial sector strategies that promote sustainable growth and private sector development in emerging economies. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2582893 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2582893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2582893 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2445755_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Abdikafi Hassan Abdi Author-X-Name-First: Abdikafi Hassan Author-X-Name-Last: Abdi Author-Name: Amir Mohamud Mohamed Author-X-Name-First: Amir Mohamud Author-X-Name-Last: Mohamed Title: Determinants of agricultural exports in Somalia: the impacts of exchange rates, foreign direct investment, and institutional quality Abstract: Globally, the exportation of agricultural products plays a critical role in driving economic growth and stability, often acting as a substantial contributor to gross domestic product (GDP), employment, and foreign exchange earnings in agrarian economies. As a vital pillar of many developing countries' economies, the agricultural sector's export dynamics have remained understudied, particularly in integrating climatic, economic, and institutional-related factors. Thus, this study explores the determinants of agricultural exports in Somalia between 1985 and 2017. While the evidence from the ARDL bounds-testing cointegration analysis indicates that precipitation improves agricultural exports in the long-run, the role of agricultural production was insignificant. The analysis indicates that currency depreciation can boost export competitiveness in the long-run, whereas currency depreciation may lead to reduced exports in the short-run. Moreover, short-run domestic investments positively impact exports, but this effect diminishes over the long-run. Remarkably, institutional quality and FDI inflows are consistently identified as significant enhancers of agricultural exports. In addition, the Granger causality analysis indicates that exchange rates, institutional quality, and FDI inflows unidirectionally predict agricultural exports. Following the outcomes of this exploration, the study recommends enhancing rainwater harvesting and irrigation systems, focusing on value addition and market diversification, stabilizing currency for competitive advantage, and improving institutional quality by streamlining FDI policies.This analysis profoundly advances the discourse on Somalia’s agricultural export potential by presenting an incisive linkage between institutional quality, FDI, and climatic factors such as precipitation. It stresses the transformative capacity of robust governance structures and strategic economic policies to elevate Somalia’s agricultural sector as a pivotal driver of sustainable economic growth and global competitiveness. By providing evidence-based insights into institutional reform and external investment roles, the study handles critical bottlenecks in agricultural productivity and trade. Moreover, the research indicate the broader socioeconomic and environmental implications of enhancing agricultural exports, including rural development, job creation, and improved resilience to climate challenges. It positions Somalia’s agricultural sector not merely as an economic asset but as a cornerstone for national stability and international integration. The findings are of particular importance to policymakers, development agencies, and global investors, equipping a strategic framework for facilitating sustainable growth in a region disproportionately affected by climate change and economic volatility. By articulating a clear pathway to amplify agricultural exports while addressing structural vulnerabilities, this study lays a foundation for subsequent research and policy interventions aimed at assuring that Somalia’s agricultural sector becomes a model for resilience, innovation, and inclusive growth in sub-Saharan Africa. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2445755 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2445755 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2445755 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2527858_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Edward A. Osifodunrin Author-X-Name-First: Edward A. Author-X-Name-Last: Osifodunrin Author-Name: José Dias Lopes Author-X-Name-First: José Dias Author-X-Name-Last: Lopes Title: Voicelessness and exclusion: a systematic review of the (non)participation of low-income population in the design and governance of financial inclusion products and policies Abstract: In this systematic literature review, we hope to (re)draw the attention of financial inclusion (FI) stakeholders to the voicelessness or non-participation of low-income populations (LIPs) in the design and governance of micro-financial services (MFSs) and other FI products and policies. Despite the global popularity of MFSs among LIPs, our goal is to spur deeper dialogue on making these services more responsive to the specific needs and welfare constraints of targeted LIP groups. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, we conducted 26 keyword-based queries on the Web of Science Core Collection, retrieving 3,957 studies and selecting 46 relevant to participatory FI. Findings reveal limited academic/industry focus on LIPs’ involvement in FI design and governance. Asia had the highest research concentration, followed by Africa and the Americas; Europe was absent. Using six criteria (inclusiveness, popular control, considered judgement, transparency, efficiency, and transferability), a study on rural Nepal emerged as the most comprehensive participatory model. Formal microcredit dominated research interest. High costs appear to be the main barrier to scaling participatory approaches. The review also surfaces concerns about elite capture and the quality of LIPs’ participation—issues crucial for guiding future research, product development, and policymaking.Sustainable Development Goal (SDG - Goal 1) affirms that access to financial services can improve the well-being of low-income populations (LIPs), yet these communities often have little say in how such services are designed or governed. This study reviews literature on the (non)participation of LIPs in shaping micro-financial services (MFSs) and financial inclusion (FI) policies. Findings reveal that collaboration between LIPs and formal micro-financial service providers is rare, with research overlooking some MFSs and geographical locations. To the best of the authors’ knowledge, no government agency, regulatory body, or FI policy-making institution has publicly documented or widely disseminated any systematic or institutionalised effort to actively involve LIPs in the co-design or co-governance of FI policies. Although the Alliance for Financial Inclusion (AFI, 2018) emphasised the critical importance of participatory approaches to the effective implementation of FI policies across its 84 member countries, AFI (2022) acknowledges that LIPs remain largely excluded from both the design and governance of national financial inclusion strategies (NFIS). A key barrier to LIP participation is the high cost of engagement. This study also champions the social inclusion mandate of SDG (Goal 17) and calls on policymakers, financial institutions, and development agencies to work more closely with LIPs in designing and governing FI products/policies. Such collaboration is critical for meeting LIPs’ unique needs and for advancing micro-financial democracy. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2527858 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2527858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2527858 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2473998_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Mohamed Amin Chakroun Author-X-Name-First: Mohamed Amin Author-X-Name-Last: Chakroun Author-Name: Sami Mensi Author-X-Name-First: Sami Author-X-Name-Last: Mensi Title: Impact of crude oil price uncertainty on systematic risk in the Saudi Arabia banking sector Abstract: This study provides a crucial understanding of the influence of crude oil price volatility on the systematic risk within the Saudi Arabian banking sector, particularly during the COVID-19 pandemic. By employing a VAR model and DCC dynamic conditional correlation analysis, the research identifies the dependent relationship between oil market volatility and banking sector risk. Notably, the findings reveal that oil market shocks significantly elevate systematic risk in the banking sector. This insight is vital for regulators and policymakers in oil-exporting countries, highlighting the need for enhanced financial stability measures. The study underscores the importance of banking solvency and financial autonomy while identifying credit risk, liquidity risk, and operational inefficiency as critical factors that exacerbate market risk. The results provide actionable strategies for mitigating systemic risk and ensuring economic resilience in the face of oil price uncertainties. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2473998 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2473998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2473998 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2488830_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Alhassan Abdul-Wakeel Karakara Author-X-Name-First: Alhassan Abdul-Wakeel Author-X-Name-Last: Karakara Author-Name: Camara Kwasi Obeng Author-X-Name-First: Camara Kwasi Author-X-Name-Last: Obeng Author-Name: Mark Kojo Armah Author-X-Name-First: Mark Kojo Author-X-Name-Last: Armah Author-Name: Jacob Nunoo Author-X-Name-First: Jacob Author-X-Name-Last: Nunoo Title: Nature, sector, and GVC participation of firms: empirical insights from firm-level data in selected SSA countries Abstract: AbstractGlobal value chains (GVC) are currently an important developmental issue among development practitioners. Empirical studies on the peculiar nature of sub-Sahara African firms in the GVC are limited. This study examines the nature of firms and their likelihood of participating in GVC, focusing on contextual factors and the differences that exist in SSA countries. We employ the logit model and the Enterprise Survey data for four sub-Saharan African countries, namely Gambia, Kenya, Rwanda, and Zambia. The findings show that firm type, sector of operation, legal status, and firm ownership type are positively associated with firms’ GVC participation. We found factors such as firm size, firm location, the legal status of the firm, firm productivity, firm type, firm access to ICTs, finance, and managerial experience to significantly and positively affect firms participating in GVC with differences in the countries. Policies should be geared towards giving firms access to ICT infrastructure to give businesses global visibility. Small-scale firms should be supported to expand and take advantage of economies of scale and scope. Firms should be encouraged to become shareholding or partnership firms to boost their GVC chances.Impact statementThis paper analysis the GVC participation of firms in sub-Saharan Africa by arguing that the Nature of firm, the Sector of operation and other firm characteristics greatly drives firm GVC participation in SSA. The study offers guide and policy implications as to what SSA should concentrate to boost firms GVC participation. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2488830 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2488830 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2488830 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2535488_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Goodluck Charles Author-X-Name-First: Goodluck Author-X-Name-Last: Charles Author-Name: Renger Kanani Author-X-Name-First: Renger Author-X-Name-Last: Kanani Author-Name: Neema Mori Author-X-Name-First: Neema Author-X-Name-Last: Mori Title: Assessing household confidence in saving with banks and MNO-led mobile money: evidence from the household survey in Tanzania Abstract: Even though the role of saving in building financial inclusion and people’s welfare in developing countries is widely acknowledged, limited attention has been given to understanding households' confidence in saving with formal institutions. This study addressed this gap by assessing household confidence in saving with banks and MNO-led mobile money (MNO-MM) services in Tanzania, focusing on understanding whether saving confidence in these options is influenced and differs by the level of education and location of households. Using Finscope survey data from 9,915, the Agresti-Caffo and Binomial test results showed that households are more confident in saving with banks than with MNOs. Additionally, the binary logistic regression results showed that their likelihood of expressing confidence in saving at both banks and MNOs was significantly affected by their level of education and location. By applying the social learning institutional theory and the technology adoption model, this study demonstrated how the financial institutional setup and technology-based platforms influenced confidence in saving. It recommends promoting institutions that encourage saving and facilitating the adoption of technology that enables the integration of banking and mobile money services.Over 50 percent of Tanzanians use informal money saving options such as saving at home, saving with a community or buying valuable things, mainly because of limited household exposure and awareness of the formal saving mechanisms. Given that informal saving options are not secure and convenient, this study contributes to an understanding of ways of enhancing financial inclusion by revealing the factors that influence households’ confidence in saving with banks and money network operators (MNOs). It shows the significance of education and location in determining the saving confidence and enhancing financial inclusion. It also emphasises the need to increase efforts in integrating mobile money saving with banking services to attract more people to formal saving options and encourage them to increase their savings. The study inform policymakers and financial institutions on ways of developing more user-friendly saving mechanisms in both urban and rural areas including branch networks, e-banking, and e-wallet platforms. Accordingly, the study contributes to efforts geared to mobilizing savings for improved welfare of households. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2535488 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2535488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2535488 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2526148_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Elysee Nsengiyumva Author-X-Name-First: Elysee Author-X-Name-Last: Nsengiyumva Author-Name: Joseph K. Mung’atu Author-X-Name-First: Joseph K. Author-X-Name-Last: Mung’atu Author-Name: Charles Ruranga Author-X-Name-First: Charles Author-X-Name-Last: Ruranga Title: A comparative study of multivariate CNN, BiLSTM and hybrid CNN–BiLSTM models for forecasting foreign exchange rate using deep learning Abstract: This study evaluates the forecasting capabilities of multivariate Convolutional Neural Network (CNN), Bidirectional Long Short-Term Memory (BiLSTM), and a hybrid CNN-BiLSTM model for predicting daily rate returns of USD, EUR and GBP in Rwanda’s foreign exchange market from 2012 to 2025. While CNN effectively captures spatial patterns, it struggles with temporal dependencies, and BiLSTM, despite excelling in sequential data analysis, lacks spatial integration. The hybrid CNN-BiLSTM model overcomes these limitations by combining their strengths, achieving the lowest MAE, MAPE, and SMAPE across currencies, such as 0.745923, 4.727520, 1.619731 for USD, 0.771197, 2.480595, 1.631891 for EUR, and 0.613273, 2.556228, 1.265153 for GBP, respectively. These results highlight its superior accuracy and potential for future enhancements in foreign exchange forecasting.This study presents a novel hybrid deep learning framework integrating Convolutional Neural Networks (CNN) and Bidirectional Long Short-Term Memory (BiLSTM) networks to enhance the accuracy of foreign exchange rate forecasting in emerging markets. By systematically comparing multivariate CNN, BiLSTM, and hybrid CNN–BiLSTM models using daily rate returns of USD, EUR, and GBP against the Rwandan Franc from 2012 to 2025, the research demonstrates that the hybrid model significantly outperforms its standalone counterparts across multiple performance metrics. The incorporation of k-fold cross-validation and statistical significance testing (Diebold-Mariano test) confirms the model’s robustness and predictive superiority. This work addresses key methodological gaps in existing literature, particularly the limited use of multivariate and hybrid deep learning architectures in Sub-Saharan financial contexts. The findings offer substantial implications for policymakers, financial analysts, and institutional investors by providing a more reliable tool for currency risk assessment and macroeconomic planning in volatile economic environments. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2526148 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2526148 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2526148 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2551159_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Oluwafemi Josua O. Akinyemi Author-X-Name-First: Oluwafemi Josua O. Author-X-Name-Last: Akinyemi Title: The dynamism of global economic power of leading economies: what role have economic globalization forces and financial sector development played? Abstract: This study aims to empirically determine whether economic globalization forces and the level of financial sector development significantly influence the relative global economic power of 45 leading economies in the world. To achieve this, data were compiled from reputable sources between 2002 and 2021. The Driscoll-Kraay Standard Errors (DKSE) technique was used to estimate the baseline panel regression model in the presence of parameter heterogeneity, cross-section dependence, and variable nonstationarity. The AMG estimator was also deployed as an alternative method for estimating econometric models. The empirical analysis provides evidence that financial sector development positively influences countries’ relative global economic power, and that the relationship between financial sector development exhibits an inverted U-shaped structure, suggesting a non-linear relationship. Additionally, the study reveals that economic globalization hinders the economic strength of countries, undermining the comparative cost advantage, Heckscher-Ohlin trade theories, and external capital flow theory, possibly due to global trade imbalances, trade protectionism measures by countries, geoeconomic fragmentation, and distortions in the global financial system. Inflation, government expenditure, capital stock, and economic freedom are positively linked to global economic power. However, the labour force and natural resource rent have negative effects. Therefore, it is recommended that policymakers and national governments should promote robust financial deepening and liberalization, foster unhindered international trade, and remove impediments to free trade and capital flows. Additionally, leading countries should pursue effective macroeconomic management and economic freedom to enhance their global economic power and competitiveness.This study examines how economic globalization forces and financial sector development have shaped the global economic power dynamics of major leading economies in the world. Based on the econometric models estimated, there is strong empirical evidence that financial sector development and economic globalization forces influence countries' relative global economic power. The study highlights the importance of promoting financial sector development by national governments, policymakers, and central banks. However, global financial and governance institutions should strive for mutually beneficial trade and economic cooperation that serves the collective interests of all countries. In this direction, trade protectionist measures, geoeconomic fragmentation, and distortions in the global financial system may be counterproductive and harm the collective economic strengths of countries. Therefore, the study contributes to the development economics and finance fields, and presents a policy blueprint for national governments, global and regional economic institutions for the transformation of their economies from their current level to global ascendancy through financial sector development strategies, trade and financial openness polices, effective macroeconomic management, and economic freedom to enhance their global economic power and competitiveness. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2551159 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2551159 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2551159 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2570791_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Desalegn Dawit Chamma Author-X-Name-First: Desalegn Dawit Author-X-Name-Last: Chamma Title: Corruption, political instability, climate change and economic growth in Sub-Saharan African countries Abstract: While prior studies have examined corruption, political instability, and climate change separately, few have explored their combined impact on economic growth in Sub-Saharan Africa (SSA). This study pioneers an integrated analysis of how institutional quality, climate stress, and economic growth interact in the region. Using System GMM and long-run multiplier methods on data from 43 SSA countries (1996–2019), the findings show that strong institutions enhance resilience but cannot fully offset the economic costs of rising temperatures. Corruption and political instability weaken climate governance, increase CO2 emissions, and exacerbate growth challenges, while emissions-intensive growth undermines institutional gains. By revealing institutions’ dual role as both a buffer and a vulnerability in the climate–economy nexus, this study advances knowledge and emphasizes the urgent need for integrated institutional reforms and climate adaptation policies to safeguard sustainable growth in SSA.This study integrates the effects of corruption, political instability, and climate change on economic growth in Sub-Saharan Africa. Using data from 43 countries (1996–2019) and System GMM estimation, it finds that strong institutions improve resilience but cannot fully offset the economic costs of rising temperatures. Corruption and instability weaken climate governance, intensify CO2 emissions, and hinder sustainable growth. The results highlight institutions’ dual role as both a buffer and a vulnerability in the climate–economy nexus, emphasizing the need for coherent institutional reforms and adaptive climate policies to safeguard long-term growth in the region. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2570791 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2570791 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2570791 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2505028_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kuamvi Sodji Author-X-Name-First: Kuamvi Author-X-Name-Last: Sodji Author-Name: Kassimou Gountante Author-X-Name-First: Kassimou Author-X-Name-Last: Gountante Author-Name: Komla Senyo Konou Author-X-Name-First: Komla Senyo Author-X-Name-Last: Konou Author-Name: Bonaventure Sandabalo Katale Author-X-Name-First: Bonaventure Sandabalo Author-X-Name-Last: Katale Author-Name: Kofi Houesse Author-X-Name-First: Kofi Author-X-Name-Last: Houesse Title: Analyzing the relationship between electrification, non-agricultural entrepreneurship and household income in Togo Abstract: For the Togolese authorities, access to electricity for a large segment of the population is supposed to encourage entrepreneurship and pave the way for Togo’s modernization and development. This article examines the link between access to electricity, non-agricultural entrepreneurship and household income in Togo. The propensity score method, the endogenous treatment regression model and data from the harmonized household living conditions survey show that access to electricity has a beneficial impact on a household’s decision to run a non-agricultural business. Also, the probability of trading is 92.1% higher among households running non-agricultural businesses when they have access to electricity. Initiatives to promote access to electricity can play a crucial role in the growth of entrepreneurship and the transformation of the non-agricultural sector in Togo. Policies and programs to promote non-agricultural entrepreneurship should be combined with initiatives to improve access to electricity and the development of entrepreneurial capacities, thus contributing to poverty reduction.This study provides decisive empirical evidence on the impact of access to electricity on the development of non-agricultural entrepreneurship in Togo, a key lever for improving household incomes. Using the propensity score method, a regression model with endogenous treatment and data from the Harmonised Household Living Conditions Survey, it fills a gap in the Togolese literature by quantifying effects that were previously understudied. The results show that electrification acts as a significant catalyst for economic activity, by stimulating households' decision to create non-agricultural businesses. More specifically, the analysis reveals that the probability of starting a business increases significantly when households benefit from access to electricity. These findings provide public decision-makers with concrete levers for action: targeted electrification policies could accelerate economic diversification and poverty reduction, particularly by supporting the non-agricultural sector. Through its methodological rigour and its anchoring in the Togolese context, this research also opens up new avenues for studying the multiplier effects of energy on development. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2505028 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2505028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2505028 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2515501_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bukhari Abdiwahab Mohamed Bobe Author-X-Name-First: Bukhari Abdiwahab Author-X-Name-Last: Mohamed Bobe Title: An econometric analysis of the determinants of rural household poverty in Somalia Abstract: Somalia is one of the poorest countries in the world, with over half of its population living below the national poverty line. In particular, rural poverty remains a critical issue, yet studies addressing the main factors affecting rural poverty are scarce. To this end, this study aimed to explore the major determinants of rural household poverty using cross-sectional data from the second wave of the Somali High-Frequency Survey. A binary logistic regression model was employed, and four model diagnostic tests were conducted to ensure the robustness of the findings. To further validate the results, additional robustness checks were performed using the linear probability model and the Heckman two-step regression model. Regression results consistently show that household size and distance to the nearest health center are positively and significantly related to rural poverty. On the contrary, household head literacy, access to agricultural land, livestock holdings, access to mobile money services, and remittances are negatively and significantly associated with rural poverty. Therefore, the study recommends that the Federal Government of Somalia and its partners enhance literacy, reduce household size, promote remittances, expand mobile money services, strengthen the livestock sector, implement land reforms, and improve infrastructure to support rural healthcare access.This study identifies the key drivers of rural household poverty in Somalia using nationally representative survey data and robust econometric techniques. It highlights the significant role of household head literacy, access to agricultural land, livestock holdings, mobile money services, and remittances in reducing poverty, while emphasizing the negative impact of larger household size and increased distance to health centers. The findings offer actionable policy guidance for the federal government of Somalia and development partners aiming to reduce rural poverty in fragile settings. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2515501 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2515501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2515501 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2587493_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Rayanguénéwendé Abdoul Kader Bouda Author-X-Name-First: Rayanguénéwendé Abdoul Kader Author-X-Name-Last: Bouda Author-Name: Tibi Didier Zoungrana Author-X-Name-First: Tibi Didier Author-X-Name-Last: Zoungrana Author-Name: Idrissa Ouedraogo Author-X-Name-First: Idrissa Author-X-Name-Last: Ouedraogo Title: Effects of trade openness on industrialization in West African countries: the role of institutional quality and financial development Abstract: This research analyses the effects of trade opening on industrialization in West African countries. It focuses on a panel of fourteen (14) West African countries and covers the period from 2002 to 2022. The estimation methods used in this article are Two-Stage Least Squares (2SLS), Fixed-effects IV regression, and Lewbel instrumental variables approach. The results show that trade openness is favourable to industrial development in West African countries. This favourable effect improves with institutional quality, in particular, political stability, the rule of law, and regulatory quality. On the other hand, it deteriorates with financial development. This result encourages the authorities in West African countries to diversify the range of products available for export on the international market. To accelerate the industrialization process in the community, governments should improve the quality of their institutions and promote financial development through negotiations with financial stakeholders to reduce interest rates and create specific investment funds for industrial activities.Trade liberalization, an integral part of globalization, continues to be important in the economies of countries, especially developing ones. It has a clear but controversial impact on the industrialization of countries. This research analyzes the effects of trade liberalization on industrialization by highlighting institutional quality and financial development in West African countries. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2587493 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2587493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2587493 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2467442_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Bornok Situmorang Author-X-Name-First: Bornok Author-X-Name-Last: Situmorang Author-Name: Heru Tjaraka Author-X-Name-First: Heru Author-X-Name-Last: Tjaraka Author-Name: Santi Novita Author-X-Name-First: Santi Author-X-Name-Last: Novita Title: The impact of public policy on budget realization during the COVID-19 pandemic in Indonesia Abstract: Budget changes triggered by internal factors intend to realize budget effectiveness and save the budget. Meanwhile, Refocusing Activities and Budget Reallocation (RABR) tends to disrupt budget realization because external factors trigger it. This research focuses on the impact of budget policy during the COVID-19 pandemic in Indonesia. This research seeks empirical evidence of differences in budget absorption, tax revenues, and local revenue before and during RABR. This research contributes to filling the micro research gap regarding RABR policy and becomes a reference for public policy stakeholders. This study uses quantitative methods. Data published by 91 cities for four years, namely two years before RABR (2018-2019) and two years during RABR (2020-2021), were analyzed using descriptive statistics and difference tests. Data for 2022-2023 are also used to test robustness. The results of statistical tests show a decrease in budget absorption, tax revenue, and local original income during the implementation of the RABR policy. The results of the Wilcoxon test statistics for hypothesis testing and robustness tests conclude the same thing, namely that the levels of budget absorption, tax revenue, and local revenue before and during the implementation of RABR are significantly distinct.This study empirically tests the impact of public policy during the COVID-19 pandemic in Indonesia. The results of this research are that during the COVID-19 pandemic, public policy in Indonesia, known as Refocusing Activities and Budget Reallocation (RABR), significantly reduced budget absorption, tax revenue, and local original income. These results are explained through descriptive and inferential statistics and supported by robustness testing. This research contributes to filling the gap in micro research on public policy during the Covid-19 pandemic. Another contribution is to serve as a practical and theoretical reference on the impact of public policy on budget realization, tax revenues, and local original income. This research recommends the importance of measurable public policies that can be executed quickly so that they do not unduly interfere with achieving budgeted targets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2467442 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2467442 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2467442 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2494129_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Kavitha Bharath Raja Guru Author-X-Name-First: Kavitha Bharath Author-X-Name-Last: Raja Guru Author-Name: Krishna Prasad Author-X-Name-First: Krishna Author-X-Name-Last: Prasad Author-Name: E. Geetha Author-X-Name-First: E. Author-X-Name-Last: Geetha Title: Implications of analyst recommendations on stock market- a bibliometric study Abstract: This comprehensive review paper offers scholarly insights into financial analysts’ recommendations and their impact on stock markets. Our focus is on finance-based frameworks, rather than accounting frameworks. Academic circles express frustration about the prevalence of studies focused on analysts with a specific emphasis on the US, reflecting a sense of exasperation. There is a feeling that the literature on analysts is becoming over-explored, with some even deeming it "over the hill." This frustration stems from the repetitive nature of studies and a narrow focus on certain variables, which has led to a lack of diversity and innovation in analyst research. Hence, our study aims to comprehend the historical, present, and prospective implications of analysts’ recommendations on the stock market. By reviewing 398 papers spanning from 1980 to 2023, we delve into the realm of Analyst Recommendations research. This review synthesizes the literature on analyst recommendations and their multifaceted influence on the stock market. Evidence suggests that analyst opinions drive trading volume and short-term price movements, yet their long-term profitability is debated due to market efficiency and potential herding behaviour. Variations in market development, cultural factors, and the nature of information dissemination shape the effectiveness of analyst advice across different contexts.Our review synthesizes insights from 398 studies (1980–2023) on the impact of financial analysts’ recommendations, emphasizing finance-based frameworks. While analyst opinions reliably influence trading volume and short-term stock prices, their long-term value remains debated due to market efficiency and herding concerns. The literature’s US-centric and repetitive nature underscores the need for broader, more innovative research. Our analysis reveals that the effectiveness of analyst recommendations varies across market maturity, cultural contexts, and information environments, highlighting the importance of diversified approaches to fully understand analysts’ evolving and context-dependent influence on global stock markets. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2494129 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2494129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2494129 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2559052_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Ferede Mengistie Alemu Author-X-Name-First: Ferede Mengistie Author-X-Name-Last: Alemu Author-Name: Dejen Fikadie Wudie Author-X-Name-First: Dejen Fikadie Author-X-Name-Last: Wudie Author-Name: Getish Birhane Bezabh Author-X-Name-First: Getish Birhane Author-X-Name-Last: Bezabh Author-Name: Tarekegn Desalegn Teferea Author-X-Name-First: Tarekegn Desalegn Author-X-Name-Last: Teferea Title: Empirical analysis of the dynamic interplay between ESG performance and undernutrition in sub-Saharan Africa: a beta regression and multivariate approach Abstract: Despite ongoing efforts to contend with the prevalence of undernutrition in Africa, it has a continual development impact. This study explores how Environmental, Social, and Governance (ESG) performance shapes undernutrition prevalence and whether undernutrition, in turn, hinders progress toward ESG goals? Using panel data from, this study employs beta regression, multivariate analysis, and GMM estimation techniques. The results reveal that countries such as the Central African Republic, Madagascar, Lesotho, Sierra Leone, and Zambia suffer from high prevalence rates (26.4%–41.97%), driven by unstable environmental, governance, and social conditions, while Mauritius, Mali, and South Africa report lower rates (5.68%–6.96%). Our findings verify that high ESG performance with access to electricity, clean water, renewable energy, and effective corruption controls reduces undernutrition prevalence, while low performance with net forest depletion, and political violence increases the prevalence rate. It has concluded that high undernutrition prevalence deteriorates ESG performance by driving resource overuse, weakening governance, and straining social responsibility, while poor ESG outcomes in turn sustain its persistence. A comprehensive ESG strategy focusing on governance reforms, environmental sustainability, and social protections needed to combat undernutrition and promote long-term socio-economic stability in Africa.This study contributes academically by producing knowledge related to the Sustainable Development Goals (SDGs). Despite ongoing efforts to address malnutrition in Africa, the problem continues to have considerable health and development impacts. The findings directly relate to multiple SDGs: SDG 2 (Zero Hunger) and SDG 3 (Good Health) are affected by poor nutrition; SDG 6 (Clean Water) and SDG 7 (Affordable and Clean Energy) influence access to resources that support healthy diets; SDG 12 and SDG 15 (Sustainable Consumption and Life on Land) are tied to environmental degradation from over-extraction; and SDG 16 (Peace, Justice, and Strong Institutions) underscores the importance of governance in sustaining development outcomes. Overall, the results highlight that realizing these SDGs requires integrated ESG strategies that at once address governance, environmental stewardship, and social shields to break the cycle of undernutrition and promote long-term socio-economic stability. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2559052 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2559052 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2559052 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2448574_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Meenakshi P. Author-X-Name-First: Meenakshi Author-X-Name-Last: P. Author-Name: Satish Kumar Author-X-Name-First: Satish Author-X-Name-Last: Kumar Author-Name: Sowjanya Shetty Author-X-Name-First: Sowjanya Author-X-Name-Last: Shetty Title: Beyond the screen: unfolding digital finance usage through a gendered lens during and after COVID-19 Abstract: Understanding the determinants of digital financial service adoption and gender disparities is crucial for fostering inclusive growth. This study aims to investigate the factors influencing the shift in the usage of digital financial products and services in India with a focus on addressing the gender divide in their adoption. The analysis is carried out through pooled logit regression and fairly decomposition technique, with the data processed through STATA-18 software. To this end, India's micro-level data were pooled from the Global Findex Database for the years 2017 and 2021, with a sample size of 3,000 for each year. The results indicate a substantial increase in nearly all forms of digital transactions since the pandemic, with notable increases in mobile usage and online banking, excluding government transfers. Additionally, socioeconomic factors, such as education, income, and workforce participation, along with the ownership of digital financial products, have significantly contributed to the adoption of digital financial products and services. Despite this increase, there has been a widening gender gap in the adoption of digital financial services over the years. This is primarily influenced by women's low literacy and low access to digital financial products. Future research could benefit from qualitative studies exploring the underlying reasons for the persistent gender disparity in digital finance usage.This study highlights the transformative role of socioeconomic factors in driving digital financial inclusion (DFI) in India while exposing the widening gender disparity in digital financial service adoption. Policy interventions are necessary to ensure the equitable distribution of digital financial products across diverse societal groups, promote digital literacy among women, and create and implement systematic changes to create an inclusive digital financial ecosystem. By addressing these challenges, we can build a future where digital finance empowers every member of society to march towards the attainment of United Nations Sustainable Development Goals (SDGs), particularly in relation to gender equality (SDG 5), reduced inequalities (SDG 10), and economic growth (SDG 8). Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2024.2448574 File-URL: http://hdl.handle.net/10.1080/23322039.2024.2448574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2448574 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2517389_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Yichen Wang Author-X-Name-First: Yichen Author-X-Name-Last: Wang Author-Name: Frank Crowley Author-X-Name-First: Frank Author-X-Name-Last: Crowley Author-Name: Justin Doran Author-X-Name-First: Justin Author-X-Name-Last: Doran Author-Name: Mari O’ Connor Author-X-Name-First: Mari Author-X-Name-Last: O’ Connor Title: Job automation in China: who is at risk and where are they located? Abstract: Concerns about technological unemployment are resurfacing during the most recent industrial revolution. The potential for individuals to be resilient to automation and artificial intelligence shocks may depend on individual characteristics such as age, gender, and education, as well as their location. China is the world’s second most populated country, is developing, and is dependent on cheap low-skilled employment. Despite the anticipated widespread influence of Industry 4.0 automation in China, there is limited understanding of its unique impact in the Chinese setting. Using data from the CFPS (China Family Panel Study) survey, we empirically examine the factors that influence an individual’s likelihood of being at high risk of automation. We control for an individual’s provincial location and their urban/rural residency to examine the role played by location in shaping automation risk. The risk of job automation is not uniform across individuals and locations in China. Younger workers, women, and those with lower levels of education face a higher likelihood of automation related job displacement. Interestingly, individuals in urban areas are more at risk from job automation which is contrary to prior findings and existing literature.This article is the first study to explore how location influences automation risk in China using individual-level data, revealing that geography, particularly urban versus rural location, plays a key role in shaping exposure to job automation. Furthermore, the results show that risk of job automation is not homogenous among individuals in China. Thus, there is a need to identify nuanced policies targeted at minimising the potential disruption that job automation may have on the Chinese labour market. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2517389 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2517389 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2517389 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2549925_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Sania Ashraf Author-X-Name-First: Sania Author-X-Name-Last: Ashraf Author-Name: Mohammad Abdullah Author-X-Name-First: Mohammad Author-X-Name-Last: Abdullah Author-Name: Skander Slim Author-X-Name-First: Skander Author-X-Name-Last: Slim Author-Name: Shruti R. Author-X-Name-First: Shruti Author-X-Name-Last: R. Title: Tail risk connectedness and portfolio management between energy tokens and FinTech stocks: evidence from quantile-based approaches Abstract: This study investigates the tail risk connectedness between energy tokens and FinTech stocks, two blockchain-enabled yet sectorally distinct asset classes. Using data from September 2018 to August 2023, we examine five energy tokens and five FinTech indices through the CAViaR model and the quantile coherency framework, capturing interdependencies under extreme market conditions, including COVID-19 and the Russia-Ukraine war. Our findings reveal generally weak connectedness between energy tokens and FinTech indices, suggesting strong diversification potential under normal conditions. However, tail risk interconnectedness intensifies during crises, with some tokens acting as safe havens while others amplify downside risks. Portfolio analysis highlights that diversification benefits and optimal hedging strategies vary by market regime and investment horizon, TSL and ELEC provide short-term protection, while SNC and ROX offer long-term stability. By shifting focus from traditional return-volatility spillovers to tail risk dynamics, this study provides a robust framework for assessing financial contagion and resilience. Hence, our findings offer actionable insights for investors, portfolio managers, and policymakers seeking to construct resilient portfolios using energy tokens and FinTech stocks.This study explores how two fast-growing but very different financial markets—energy tokens and FinTech stocks—interact under normal and crisis conditions. The research’s implications are important for investors and portfolio managers, who can use energy tokens strategically to protect portfolios in turbulent markets. They also matter for policymakers and regulators, since understanding how new digital assets interact with traditional financial markets can help design more resilient financial systems. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 12 X-DOI: 10.1080/23322039.2025.2549925 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2549925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2549925 Template-Type: ReDIF-Article 1.0 # input file: OAEF_A_2541265_J.xml processed with: repec_from_jats.xsl darts-xml-transformations-20250815T221317 git hash: a1bee4f0b5 Author-Name: Gang Chen Author-X-Name-First: Gang Author-X-Name-Last: Chen Author-Name: Tajul Ariffin Masron Author-X-Name-First: Tajul Ariffin Author-X-Name-Last: Masron Author-Name: Diyanghuan Fan Author-X-Name-First: Diyanghuan Author-X-Name-Last: Fan Author-Name: Dansha Zhang Author-X-Name-First: Dansha Author-X-Name-Last: Zhang Title: Navigating uncertainty: the ripple effect of US economic policy on Chinese enterprise innovation Abstract: This study explores the potential impact of US Economic Policy Uncertainty on the innovation activities of Chinese firms from 2010 to 2022. Based on the pooled data from the Shanghai and Shenzhen stock exchanges, a Generalized Method of Moments (GMM) approach was considered by the research to examine the impact of USEPU on innovation. The GMM approach provides unbiased estimates and allows policy evaluation under uncertainty. The results of the study found that USEPU has a significant negative effect on firm innovation. This indicates that even in a rapidly developing and highly integrated economy like China, external policy uncertainties can limit innovation activity. Moreover, it was also found that Firm size and return on assets (ROA) show a positive relationship with innovation. The 2-digit market share also indicated a positive impact on innovation. Finally, it was also recognized that leverage did not have a significant impact on firm innovation. The overall findings can be used to improve the policy-making process in order to reduce the negative impact of economic policy uncertainty.This particular research helps understand the impact that external policies across developed nations have on the innovation performance of developing nations. In order to analyse the same, the impact of US Economic Policy Uncertainty (USEPU) is gauged on innovation within Chinese enterprises. The results of the research shows fresh understanding of cross-border policy spillovers within interconnected global economy. The research uses robust Difference-GMM methodology on panel data from 2010 to 2022. The results reveal that there is a significant negative relationship between USEPU and firm-level innovation. This shows that there is innovation-driven growth in emerging markets becomes vulnerable when exposed to external macroeconomic shocks. The results also provides insights to policymakers regarding the impact of targeted innovation incentives, risk-buffer mechanisms, and strategic global partnerships. This would help mitigate uncertainty that is caused by economic policies for innovation carried on in other nations. Journal: Cogent Economics & Finance Issue: 1 Volume: 13 Year: 2025 Month: 7 X-DOI: 10.1080/23322039.2025.2541265 File-URL: http://hdl.handle.net/10.1080/23322039.2025.2541265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:oaefxx:v:13:y:2025:i:1:p:2541265