Abstract Background: There is a raging debate on how the COVID-19 pandemic disrupted the financial market environments, affected the banks’ strength as the credit channel, and the nexus between market liquidity and credit risk. During the COVID-19 crisis in the banking sector, credit risk and liquidity risk cannot be ignored as they have a considerable bearing on the performance and survival of banks. Purpose: Within the context of COVID-19, bank-specific and external factors were examined to determine the relationship between liquidity and the credit risk of South African domiciled banks. Research methodology: Quarterly panel data from 13 South African domiciled banks from 2018 to 2021 were examined using panel data methodologies: fixed effects and the system GMM. Results: In an analysis of the period between 2019Q1 to 2021Q1 the results suggest a positive relationship between liquidity and credit risk, the COVID-19 pandemic was found to have an implication on the nexus as the COVID-19 dummy variable was significant. Also, the results show that liquidity deteriorated with an increase in COVID-19 cases during the pandemic period. During the Pre-COVID-19 liquidity improved with a decrease in credit risk. Nevertheless, during COVID-19 liquidity was not influenced by credit risk. The results are contrary to the pre-COVID-19 period as the government interventions to support households and non-financial firms could have changed the dynamics of liquidity and loan losses. Novelty: The pandemic has ushered in a novel set of responses whose lasting impacts are not yet certain. The originality of the article lies in the nature of the investigation, where the nexus between liquidity and credit risk under the COVID-19 shocks/pandemic set-up. This is a unique study as the study revealed that policymakers and researchers alike should pay particular attention to the vulnerabilities to shocks from within and outside of the financial system as COVID-19 was found to significantly affect liquidity and credit risk. Since the pandemic is still active, further research is necessary to examine the cointegrating and causal relationship in the long run.
{"title":"The Nexus Between Bank Credit Risk and Liquidity: Does the Covid-19 Pandemic Matter? A Case of the Oligopolistic Banking Sector","authors":"M. R. Magwedere, G. Marozva","doi":"10.2478/foli-2022-0008","DOIUrl":"https://doi.org/10.2478/foli-2022-0008","url":null,"abstract":"Abstract Background: There is a raging debate on how the COVID-19 pandemic disrupted the financial market environments, affected the banks’ strength as the credit channel, and the nexus between market liquidity and credit risk. During the COVID-19 crisis in the banking sector, credit risk and liquidity risk cannot be ignored as they have a considerable bearing on the performance and survival of banks. Purpose: Within the context of COVID-19, bank-specific and external factors were examined to determine the relationship between liquidity and the credit risk of South African domiciled banks. Research methodology: Quarterly panel data from 13 South African domiciled banks from 2018 to 2021 were examined using panel data methodologies: fixed effects and the system GMM. Results: In an analysis of the period between 2019Q1 to 2021Q1 the results suggest a positive relationship between liquidity and credit risk, the COVID-19 pandemic was found to have an implication on the nexus as the COVID-19 dummy variable was significant. Also, the results show that liquidity deteriorated with an increase in COVID-19 cases during the pandemic period. During the Pre-COVID-19 liquidity improved with a decrease in credit risk. Nevertheless, during COVID-19 liquidity was not influenced by credit risk. The results are contrary to the pre-COVID-19 period as the government interventions to support households and non-financial firms could have changed the dynamics of liquidity and loan losses. Novelty: The pandemic has ushered in a novel set of responses whose lasting impacts are not yet certain. The originality of the article lies in the nature of the investigation, where the nexus between liquidity and credit risk under the COVID-19 shocks/pandemic set-up. This is a unique study as the study revealed that policymakers and researchers alike should pay particular attention to the vulnerabilities to shocks from within and outside of the financial system as COVID-19 was found to significantly affect liquidity and credit risk. Since the pandemic is still active, further research is necessary to examine the cointegrating and causal relationship in the long run.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"338 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116353595","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Machová, Enikő Korcsmáros, Roland Marča, Monika Esseová
Abstract Research background: Due to the rapid spread of the COVID-19 virus and its pernicious effects on the economy, a great change can be observed in consumer attitudes towards shopping. Needless to say, the demand for necessities comes to the fore, and consumers need to face a lot of hindrances when it comes to the decision-making process. It should be emphasised that consumers have responsibilities and rights. One can legitimately raise the question. Are they familiar with either of the aforementioned facts? Purpose: The main objective of the research is to analyse whether an increasing level of educational attainment affects consumer awareness in Hungary and Slovakia. Moreover, the paper investigates whether there are any significant differences in age groups regarding consumer awareness. Finally, the paper investigates whether there are any statistically significant interactions between the respondents’ gender, employment status and conscious saving attitudes. Research methodology: Kendall’s tau-b correlation, the rank-based nonparametric Kruskal-Wallis H test, and the Loglinear analysis were used to examine the formulated hypotheses. Results: It can be declared for both countries that an increasing level of educational attainment strongly affects consumers’ awareness. Furthermore, three major differences can be noticed in various age groups in the case of Hungary. Novelty: Education and age affect consumers’ awareness, whilst gender and employment status affect saving attitudes.
{"title":"An International Analysis of Consumers’ Consciousness During the Covid-19 Pandemic in Slovakia and Hungary","authors":"R. Machová, Enikő Korcsmáros, Roland Marča, Monika Esseová","doi":"10.2478/foli-2022-0007","DOIUrl":"https://doi.org/10.2478/foli-2022-0007","url":null,"abstract":"Abstract Research background: Due to the rapid spread of the COVID-19 virus and its pernicious effects on the economy, a great change can be observed in consumer attitudes towards shopping. Needless to say, the demand for necessities comes to the fore, and consumers need to face a lot of hindrances when it comes to the decision-making process. It should be emphasised that consumers have responsibilities and rights. One can legitimately raise the question. Are they familiar with either of the aforementioned facts? Purpose: The main objective of the research is to analyse whether an increasing level of educational attainment affects consumer awareness in Hungary and Slovakia. Moreover, the paper investigates whether there are any significant differences in age groups regarding consumer awareness. Finally, the paper investigates whether there are any statistically significant interactions between the respondents’ gender, employment status and conscious saving attitudes. Research methodology: Kendall’s tau-b correlation, the rank-based nonparametric Kruskal-Wallis H test, and the Loglinear analysis were used to examine the formulated hypotheses. Results: It can be declared for both countries that an increasing level of educational attainment strongly affects consumers’ awareness. Furthermore, three major differences can be noticed in various age groups in the case of Hungary. Novelty: Education and age affect consumers’ awareness, whilst gender and employment status affect saving attitudes.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132884895","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
K. Berezka, Olha Kovalchuk, S. Banakh, S. Zlyvko, R. Hrechaniuk
Abstract Research background: The economics of incarceration is having an increasing impact on the economies of the world due to the rapid growth in the number of prisoners in the world The search for effective solutions that can help reduce government spending on prisoners in penitentiaries and at the same time ensure the safety of society is becoming increasingly important. These studies used the method of binary logistic regression to predict the probability of convicted criminal recidivism in the future. Purpose: The aim of the paper is to build an effective forecasting model that, based on the statistical and dynamic data of convicts, will provide information for optimal post-trial decisions, such as the grounds for possible parole, probation or length of sentence. Research methodology: The data were collected on the basis of statistical data of 13,010 convicts serving sentences in penitentiary institutions in Ukraine. To predict the probability of convicts committing criminal offenses binary logistic regression and ROC-analysis (Receiver Operator Characteristic analysis) were used. Results: A qualitative binary logistic regression model has been constructed, with the help of which it is possible to predict the probability of criminal recidivism by each of the convicts on the basis of its individual values of the variables included in the model. Novelty: For the first time in Ukraine, a model has been developed to predict the probability of convicts committing repeated criminal offenses.
{"title":"A Binary Logistic Regression Model for Support Decision Making in Criminal Justice","authors":"K. Berezka, Olha Kovalchuk, S. Banakh, S. Zlyvko, R. Hrechaniuk","doi":"10.2478/foli-2022-0001","DOIUrl":"https://doi.org/10.2478/foli-2022-0001","url":null,"abstract":"Abstract Research background: The economics of incarceration is having an increasing impact on the economies of the world due to the rapid growth in the number of prisoners in the world The search for effective solutions that can help reduce government spending on prisoners in penitentiaries and at the same time ensure the safety of society is becoming increasingly important. These studies used the method of binary logistic regression to predict the probability of convicted criminal recidivism in the future. Purpose: The aim of the paper is to build an effective forecasting model that, based on the statistical and dynamic data of convicts, will provide information for optimal post-trial decisions, such as the grounds for possible parole, probation or length of sentence. Research methodology: The data were collected on the basis of statistical data of 13,010 convicts serving sentences in penitentiary institutions in Ukraine. To predict the probability of convicts committing criminal offenses binary logistic regression and ROC-analysis (Receiver Operator Characteristic analysis) were used. Results: A qualitative binary logistic regression model has been constructed, with the help of which it is possible to predict the probability of criminal recidivism by each of the convicts on the basis of its individual values of the variables included in the model. Novelty: For the first time in Ukraine, a model has been developed to predict the probability of convicts committing repeated criminal offenses.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121427582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ephraim Ugwu, Olubunmi Omotayo Efuntade, Christopher Ehinomen
Abstract Research background: Past measures to increase food production in Nigeria, were not effective enough to curb food imports and increase food production thus leading to a deficit balance of payment for the country and a total neglect of the agricultural sector. Purpose: This study analyzes the effects of food imports on food production and Balance of Payments (BOP) in Nigeria from 1960 to 2020. Research methodology: The Auto Regressive Distributed Lag (ARDL) bound cointegration test procedure is utilized. Results: The empirical results show that food imports adversely affect food production both in the long and the short run. While for the BOP equations, food importation positively affected the country’s balance of payments in the long run. The short run error-correction term coefficients are signed negatively for both the food production and BOP equations. The results show that the gap between the equilibrium values and the actual value of the dependent variables are corrected with speed of adjustment equal to 40% and 85% annually. The stability test result on the food production equation showed that the null hypothesis of no stable residuals in both the short and long run are rejected, while the estimated model is not effective with stable recursive residuals for the BOP equation. Novelty: The study therefore recommends that efforts should be geared towards boosting the country’s food production by encouraging foreign investors’ participation in the agricultural sector.
{"title":"Analyzing the Effects of Food Imports on Food Production and Balance of Payments in Nigeria","authors":"Ephraim Ugwu, Olubunmi Omotayo Efuntade, Christopher Ehinomen","doi":"10.2478/foli-2022-0015","DOIUrl":"https://doi.org/10.2478/foli-2022-0015","url":null,"abstract":"Abstract Research background: Past measures to increase food production in Nigeria, were not effective enough to curb food imports and increase food production thus leading to a deficit balance of payment for the country and a total neglect of the agricultural sector. Purpose: This study analyzes the effects of food imports on food production and Balance of Payments (BOP) in Nigeria from 1960 to 2020. Research methodology: The Auto Regressive Distributed Lag (ARDL) bound cointegration test procedure is utilized. Results: The empirical results show that food imports adversely affect food production both in the long and the short run. While for the BOP equations, food importation positively affected the country’s balance of payments in the long run. The short run error-correction term coefficients are signed negatively for both the food production and BOP equations. The results show that the gap between the equilibrium values and the actual value of the dependent variables are corrected with speed of adjustment equal to 40% and 85% annually. The stability test result on the food production equation showed that the null hypothesis of no stable residuals in both the short and long run are rejected, while the estimated model is not effective with stable recursive residuals for the BOP equation. Novelty: The study therefore recommends that efforts should be geared towards boosting the country’s food production by encouraging foreign investors’ participation in the agricultural sector.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129275570","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Martin Hála, Eva Daniela Cvik, Radka Macgregor Pelikánová
Abstract Research background: The sustainability reflected by the CSR of luxury fashion businesses, should meet stakeholders´ expectations and lead to an increase in customers´ buying decisions. Purpose: To analyze Czech luxury fashion purchasing habits during the COVID-19 pandemic and to achieve a deeper understanding with new propositions in this area. Research methodology: A logistic regression is performed and based on data gained from an investigative survey employing a questionnaire of a homogenous Czech group of purchasers. The comparison of the resulting logistic models and field observations with a holistic and empiric Meta-Analysis allows one to heuristically achieve an understanding of such an inclination. Results: Seven unexpected propositions emerge and call for further research, such as those during the COVID-19 pandemic, older Czech luxury fashion customers stick even more with their brand loyalty while younger buyers focus on sustainability. Novelty: The performed case study with a survey link sustainability perception and purchasing habits by relevant cohorts of luxury fashion stakeholders. The presented propositions about trends contributes to the development of the theory about purchase inclination determinants.
{"title":"Logistic Regression of Czech Luxury Fashion Purchasing Habits During the Covid-19 Pandemic – Old for Loyalty and Young for Sustainability?","authors":"Martin Hála, Eva Daniela Cvik, Radka Macgregor Pelikánová","doi":"10.2478/foli-2022-0005","DOIUrl":"https://doi.org/10.2478/foli-2022-0005","url":null,"abstract":"Abstract Research background: The sustainability reflected by the CSR of luxury fashion businesses, should meet stakeholders´ expectations and lead to an increase in customers´ buying decisions. Purpose: To analyze Czech luxury fashion purchasing habits during the COVID-19 pandemic and to achieve a deeper understanding with new propositions in this area. Research methodology: A logistic regression is performed and based on data gained from an investigative survey employing a questionnaire of a homogenous Czech group of purchasers. The comparison of the resulting logistic models and field observations with a holistic and empiric Meta-Analysis allows one to heuristically achieve an understanding of such an inclination. Results: Seven unexpected propositions emerge and call for further research, such as those during the COVID-19 pandemic, older Czech luxury fashion customers stick even more with their brand loyalty while younger buyers focus on sustainability. Novelty: The performed case study with a survey link sustainability perception and purchasing habits by relevant cohorts of luxury fashion stakeholders. The presented propositions about trends contributes to the development of the theory about purchase inclination determinants.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132749934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Research background: Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for many reasons. When choosing a statistical model, it is important both to find out a theoretical distribution function that would characterize empirical frequency distribution and to choose suitable methods to calculate the parameters of the model. In the literature, there are proposals for various types of mathematical functions. Very high accuracy with empirical distribution is characteristic for Dagum and log-normal models. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties. Purpose: The aim of this paper is to apply and compare Dagum, log-normal and Zenga models to income distributions in Poland and Slovakia. Research methodology: The studies are based on research data from the European Quality of Life Surveys (EQLS), whose purpose is to measure both objective and subjective indicators of the standard of living of citizens and their households. The estimation parameters were obtained by means of the maximum likelihood method and D’Addario’s invariants method. Results: The results of the conducted approximations, presented in the paper confirmed the good consistency of the Dagum and Zenga distributions with the empirical income distribution of households in Poland and Slovakia. Novelty: The Zenga distribution was used for the first time to describe the income distribution of the Slovak population and it allows the best fit to the empirical data of this country.
{"title":"An Analysis of Household Income in Poland and Slovakia Based on Selected Income Models","authors":"Kamila Trzcińska","doi":"10.2478/foli-2022-0014","DOIUrl":"https://doi.org/10.2478/foli-2022-0014","url":null,"abstract":"Abstract Research background: Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for many reasons. When choosing a statistical model, it is important both to find out a theoretical distribution function that would characterize empirical frequency distribution and to choose suitable methods to calculate the parameters of the model. In the literature, there are proposals for various types of mathematical functions. Very high accuracy with empirical distribution is characteristic for Dagum and log-normal models. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties. Purpose: The aim of this paper is to apply and compare Dagum, log-normal and Zenga models to income distributions in Poland and Slovakia. Research methodology: The studies are based on research data from the European Quality of Life Surveys (EQLS), whose purpose is to measure both objective and subjective indicators of the standard of living of citizens and their households. The estimation parameters were obtained by means of the maximum likelihood method and D’Addario’s invariants method. Results: The results of the conducted approximations, presented in the paper confirmed the good consistency of the Dagum and Zenga distributions with the empirical income distribution of households in Poland and Slovakia. Novelty: The Zenga distribution was used for the first time to describe the income distribution of the Slovak population and it allows the best fit to the empirical data of this country.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127042150","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Research background: This paper focuses on the preparers’ opinion on reporting in the European Single Electronic Format (ESEF). Purpose: The goal of the paper is to examine the preparers’ perception of adopting Inline XBRL as a fundamental technology to report annual consolidated financial statements under International Financial Reporting Standards (IFRS) within the ESEF framework. Research methodology: In the present work, Poland was considered as a case study. Using the survey, we obtained evidence from 25 issuers of securities listed on the Warsaw Stock Exchange, whose financial reports were complied with IFRS. Results: The questionnaires were completed in the majority by issuers with no previous experience in XBRL utilisation. One of the more significant findings to emerge from this study is that respondents could not be able to judge the appropriateness of Inline XBRL selection as a digital reporting format, or they disagreed with it. Furthermore, over half of them saw no need to extend this technology to other business reports, including non-financial reporting. Novelty: The paper can offer valuable pre-insights into preparers’ perception of introducing Inline XBRL in the context of ESEF reporting and ensure initial feedback to the policy-makers responsible for ongoing and forthcoming digital reporting standards initiatives in the European Union.
{"title":"An Exploratory Study on Preparers’ Perception of ESEF Reporting: Evidence from the Warsaw Stock Exchange","authors":"Daria Miścikowska","doi":"10.2478/foli-2022-0010","DOIUrl":"https://doi.org/10.2478/foli-2022-0010","url":null,"abstract":"Abstract Research background: This paper focuses on the preparers’ opinion on reporting in the European Single Electronic Format (ESEF). Purpose: The goal of the paper is to examine the preparers’ perception of adopting Inline XBRL as a fundamental technology to report annual consolidated financial statements under International Financial Reporting Standards (IFRS) within the ESEF framework. Research methodology: In the present work, Poland was considered as a case study. Using the survey, we obtained evidence from 25 issuers of securities listed on the Warsaw Stock Exchange, whose financial reports were complied with IFRS. Results: The questionnaires were completed in the majority by issuers with no previous experience in XBRL utilisation. One of the more significant findings to emerge from this study is that respondents could not be able to judge the appropriateness of Inline XBRL selection as a digital reporting format, or they disagreed with it. Furthermore, over half of them saw no need to extend this technology to other business reports, including non-financial reporting. Novelty: The paper can offer valuable pre-insights into preparers’ perception of introducing Inline XBRL in the context of ESEF reporting and ensure initial feedback to the policy-makers responsible for ongoing and forthcoming digital reporting standards initiatives in the European Union.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"153 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123529663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
H. Musa, Frederik Rech, Chendan Yan, Zdenka Musová
Abstract Research background: Corporate governance plays an important role in companies’ financial performance and its true importance and relevance are revealed during an economic shock, such as the COVID-19 pandemic. In the past, research regarding corporate governance and financial variables focused solely on performance variables such as Tobin’s Q and ROA. This assessment completely ignores that corporate governance principles have a broader implication on financial variables than only performance. Purpose: Our research aimed to determine whether companies with good corporate governance practices were more resilient during the COVID-19 pandemic, measured by the deterioration of various financial variables. Research methodology: To achieve the aim, in the empirical part of the article, information on companies’ corporate governance and financial variables was collected, and based on them, correlation, regression and scatter plot analyses were conducted. Results: Our correlation, regression, and scatter plot analyses revealed that on both group and individual company levels, companies with higher levels of corporate governance would have their financial variables deteriorate significantly more compared to companies with low levels of compliance. Novelty: This is the first publication on the given topic. While few publications are assessing the impact of the pandemic on companies using corporate governance, none of these publications have focused on financial variables.
{"title":"The Deterioration of Financial Ratios During the Covid-19 Pandemic: Does Corporate Governance Matter?","authors":"H. Musa, Frederik Rech, Chendan Yan, Zdenka Musová","doi":"10.2478/foli-2022-0011","DOIUrl":"https://doi.org/10.2478/foli-2022-0011","url":null,"abstract":"Abstract Research background: Corporate governance plays an important role in companies’ financial performance and its true importance and relevance are revealed during an economic shock, such as the COVID-19 pandemic. In the past, research regarding corporate governance and financial variables focused solely on performance variables such as Tobin’s Q and ROA. This assessment completely ignores that corporate governance principles have a broader implication on financial variables than only performance. Purpose: Our research aimed to determine whether companies with good corporate governance practices were more resilient during the COVID-19 pandemic, measured by the deterioration of various financial variables. Research methodology: To achieve the aim, in the empirical part of the article, information on companies’ corporate governance and financial variables was collected, and based on them, correlation, regression and scatter plot analyses were conducted. Results: Our correlation, regression, and scatter plot analyses revealed that on both group and individual company levels, companies with higher levels of corporate governance would have their financial variables deteriorate significantly more compared to companies with low levels of compliance. Novelty: This is the first publication on the given topic. While few publications are assessing the impact of the pandemic on companies using corporate governance, none of these publications have focused on financial variables.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"87 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115059808","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Łukasz Szymczyk, Richard Van Horne, Katarzyna Perez
Abstract Research background: In March 2020, when the US financial markets were in the grip of the COVID-19 crisis, the Fed instituted various policies and programs to alleviate stress in financial markets. One such program involved the Fed purchase of securities and ETFs in certain market segments, including high yield bonds. This buying action inspired investors to join the Fed (or front-run the Fed) in the high yield bond market, resulting in the tightening of spreads in that market to historically tight levels. Purpose: In this research we investigate whether investors could have seen any signs of higher liquidity risk in US high yield mutual funds since the beginning of COVID-19 pandemic and avoid it. Theoretically, funds with heightened liquidity risk should have higher historical returns (adjusted for interest rate risk and credit risk) because borne risk requires return as compensation. But because of the unusual market conditions during the COVID-19 pandemic investors could look inside funds (to see what bonds the funds owned) and then avoid funds with holdings known to be less liquid. Research methodology: The study is based on data on US mutual funds from the Morningstar Direct database. The authors made a serial correlation model with an AR(1) process and the lagged effects model vs CAPM model to measure two proxies for liquidity risk for each US high yield mutual fund in our fund universe, in order to identify those funds at particular risk for portfolio illiquidity since the beginning of the COVID-19 pandemic. Results: it is found that the proposed measures may be an effective tool for selecting high yield funds against liquidity risk. Therefore, they should be considered by investors or analysts as a practical tool to identify funds that might be illiquid. Novelty: The study focuses on the liquidity risk in US high yield bond mutual funds before and after the outbreak of the COVID-19 pandemic, which was a crisis situation with implications for liquidity risk. The methods used and results achieved may be a basis for studies of other types of funds and markets outside the USA.
{"title":"Modeling Distress in US High Yield Mutual Funds Before and During the Covid-19 Pandemic","authors":"Łukasz Szymczyk, Richard Van Horne, Katarzyna Perez","doi":"10.2478/foli-2022-0013","DOIUrl":"https://doi.org/10.2478/foli-2022-0013","url":null,"abstract":"Abstract Research background: In March 2020, when the US financial markets were in the grip of the COVID-19 crisis, the Fed instituted various policies and programs to alleviate stress in financial markets. One such program involved the Fed purchase of securities and ETFs in certain market segments, including high yield bonds. This buying action inspired investors to join the Fed (or front-run the Fed) in the high yield bond market, resulting in the tightening of spreads in that market to historically tight levels. Purpose: In this research we investigate whether investors could have seen any signs of higher liquidity risk in US high yield mutual funds since the beginning of COVID-19 pandemic and avoid it. Theoretically, funds with heightened liquidity risk should have higher historical returns (adjusted for interest rate risk and credit risk) because borne risk requires return as compensation. But because of the unusual market conditions during the COVID-19 pandemic investors could look inside funds (to see what bonds the funds owned) and then avoid funds with holdings known to be less liquid. Research methodology: The study is based on data on US mutual funds from the Morningstar Direct database. The authors made a serial correlation model with an AR(1) process and the lagged effects model vs CAPM model to measure two proxies for liquidity risk for each US high yield mutual fund in our fund universe, in order to identify those funds at particular risk for portfolio illiquidity since the beginning of the COVID-19 pandemic. Results: it is found that the proposed measures may be an effective tool for selecting high yield funds against liquidity risk. Therefore, they should be considered by investors or analysts as a practical tool to identify funds that might be illiquid. Novelty: The study focuses on the liquidity risk in US high yield bond mutual funds before and after the outbreak of the COVID-19 pandemic, which was a crisis situation with implications for liquidity risk. The methods used and results achieved may be a basis for studies of other types of funds and markets outside the USA.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132281865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Civelek, J. Polách, Ilona Švihlíková, Milan Paták
Abstract Research background: Most of SMEs encounter many impediments when performing direct exporting activities. This is because various countries have different legislative and tax burdens and cultural-linguistic diversities that create export barriers for SMEs from other countries. Even SMEs that are the same size, age, from the same sector or legal form, their perceptions of export obstacles might differ depending on countries where they are located. Purpose: This research investigates the differences between the export obstacle perceptions of SMEs from different countries but with the same firm-level characteristics Research methodology: To achieve this aim, the researchers apply a random sampling method to determine the research sample. Moreover, the researchers created an online questionnaire to gather the research data. Finally, 408 SMEs from the Czech Republic, Slovakia and Hungary have been analyzed by performing a Kruskal-Wallis analyses with the Dunnett T3 Post Hoc Test to achieve the aims of the research. Results: The empirical results express the differences and the similarities between the perceptions of export obstacles by SMEs. While the perceptions of Czech-Hungarian and Slovak-Hungarian SMEs do not differ in any same firm-level characteristics, the differences exist between Czech and Slovak SMEs that are smaller in size, older and, that have limited liability and sector categories. Compare with their Czech counterparts in these categories, Slovak SMEs perceive export obstacles less intensively. The approaches of a government on SMEs and investment freedom in a nation and the exporting patterns of SMEs might be the reasons for these similarities and differences among SMEs in various countries which are in the same age, size, sector and legal form categories. Novelty: The significant results that this research proves in same firm-level characteristics and an international context makes this paper unique research in the literature. Therefore, policy makers, academicians, SMEs, and financing institutions might gain many benefits from the findings of this study.
摘要研究背景:大多数中小企业在开展直接出口活动时遇到了许多障碍。这是因为不同的国家有不同的立法和税收负担以及文化和语言的多样性，这给来自其他国家的中小企业造成了出口障碍。即使是相同规模、年龄、来自相同部门或法律形式的中小企业，它们对出口障碍的看法也可能因所在国家的不同而有所不同。目的:本研究考察具有相同企业层面特征的不同国家中小企业出口障碍感知的差异。研究方法:为了达到这一目的，研究者采用随机抽样的方法来确定研究样本。此外，研究人员还制作了一份在线问卷来收集研究数据。最后，通过使用Dunnett T3 Post Hoc Test进行Kruskal-Wallis分析，对来自捷克共和国、斯洛伐克和匈牙利的408家中小企业进行了分析，以实现研究的目的。结果:实证结果显示了中小企业对出口障碍认知的异同。虽然捷克-匈牙利和斯洛伐克-匈牙利中小企业的看法在任何相同的公司一级特征上没有差别，但捷克和斯洛伐克中小企业之间存在着规模较小、历史较长、责任有限和部门类别有限的差异。与这些类别的捷克同行相比，斯洛伐克中小企业对出口障碍的感知程度较低。一个国家政府对待中小企业和投资自由的方式以及中小企业的出口模式可能是造成各国中小企业在相同的年龄、规模、行业和法律形式类别中存在这些异同的原因。新颖性:本研究在相同的企业层面特征和国际背景下所证明的显著结果，使本文的研究在文献中具有独特性。因此，政策制定者、学者、中小企业和金融机构可能会从本研究的结果中获益。
{"title":"International Differences in the Perceptions of Export Obstacles By SMEs in the Same Firm-Level Characteristics: Evidence from European Countries","authors":"M. Civelek, J. Polách, Ilona Švihlíková, Milan Paták","doi":"10.2478/foli-2022-0002","DOIUrl":"https://doi.org/10.2478/foli-2022-0002","url":null,"abstract":"Abstract Research background: Most of SMEs encounter many impediments when performing direct exporting activities. This is because various countries have different legislative and tax burdens and cultural-linguistic diversities that create export barriers for SMEs from other countries. Even SMEs that are the same size, age, from the same sector or legal form, their perceptions of export obstacles might differ depending on countries where they are located. Purpose: This research investigates the differences between the export obstacle perceptions of SMEs from different countries but with the same firm-level characteristics Research methodology: To achieve this aim, the researchers apply a random sampling method to determine the research sample. Moreover, the researchers created an online questionnaire to gather the research data. Finally, 408 SMEs from the Czech Republic, Slovakia and Hungary have been analyzed by performing a Kruskal-Wallis analyses with the Dunnett T3 Post Hoc Test to achieve the aims of the research. Results: The empirical results express the differences and the similarities between the perceptions of export obstacles by SMEs. While the perceptions of Czech-Hungarian and Slovak-Hungarian SMEs do not differ in any same firm-level characteristics, the differences exist between Czech and Slovak SMEs that are smaller in size, older and, that have limited liability and sector categories. Compare with their Czech counterparts in these categories, Slovak SMEs perceive export obstacles less intensively. The approaches of a government on SMEs and investment freedom in a nation and the exporting patterns of SMEs might be the reasons for these similarities and differences among SMEs in various countries which are in the same age, size, sector and legal form categories. Novelty: The significant results that this research proves in same firm-level characteristics and an international context makes this paper unique research in the literature. Therefore, policy makers, academicians, SMEs, and financing institutions might gain many benefits from the findings of this study.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133034939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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