Banking is one of the highly regulated industries, where a single set of global standards is likely to play a significant role in eliminating double reporting and reducing information asymmetry. Accordingly, we use data on 98 countries over 9 years to examine whether the use of International Financial Reporting Standard (IFRS) drives bank internationalisation. The results show that the use of IFRS is positively and significantly associated with an increase in foreign investment in the banking sector by easing regulatory compliance. However, in developing countries, the benefit of IFRS increasing foreign investment banks is associated with both easing regulatory compliance and reducing information asymmetry between banks and their clients. Our results are consistent across different sub‐samplings, including EU versus non‐EU, high versus low absence, and divergence between domestic standard and IFRS. These results provide reassurance and clear evidence of how IFRS facilitates the global flow of capital, even in a highly regulated industry such as banks. The results are robust to alternative measurements of variables and endogeneity tests using the Two‐Stage Least Square, Two‐step System Generalised Method of Moments and Propensity Score Matching.
{"title":"The effect of IFRS adoption on bank internationalisation","authors":"V. Tawiah, B. Oyewo","doi":"10.1002/ijfe.2932","DOIUrl":"https://doi.org/10.1002/ijfe.2932","url":null,"abstract":"Banking is one of the highly regulated industries, where a single set of global standards is likely to play a significant role in eliminating double reporting and reducing information asymmetry. Accordingly, we use data on 98 countries over 9 years to examine whether the use of International Financial Reporting Standard (IFRS) drives bank internationalisation. The results show that the use of IFRS is positively and significantly associated with an increase in foreign investment in the banking sector by easing regulatory compliance. However, in developing countries, the benefit of IFRS increasing foreign investment banks is associated with both easing regulatory compliance and reducing information asymmetry between banks and their clients. Our results are consistent across different sub‐samplings, including EU versus non‐EU, high versus low absence, and divergence between domestic standard and IFRS. These results provide reassurance and clear evidence of how IFRS facilitates the global flow of capital, even in a highly regulated industry such as banks. The results are robust to alternative measurements of variables and endogeneity tests using the Two‐Stage Least Square, Two‐step System Generalised Method of Moments and Propensity Score Matching.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"44 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139845402","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}
The study investigates the role of governance (i.e., ‘voice and accountability,’ political stability/no violence, regulatory quality, government effectiveness, corruption‐control and the rule of law) in the incidence of short‐term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002–2021. The generalised method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption‐control for access to electricity and from government effectiveness, regulatory quality, corruption‐control and rule of law, for telecommunication infrastructure. Policy implications are discussed.
{"title":"Governance, debt service, information technology and access to electricity in Africa","authors":"Simplice A. Asongu, Sara le Roux","doi":"10.1002/ijfe.2946","DOIUrl":"https://doi.org/10.1002/ijfe.2946","url":null,"abstract":"The study investigates the role of governance (i.e., ‘voice and accountability,’ political stability/no violence, regulatory quality, government effectiveness, corruption‐control and the rule of law) in the incidence of short‐term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002–2021. The generalised method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption‐control for access to electricity and from government effectiveness, regulatory quality, corruption‐control and rule of law, for telecommunication infrastructure. Policy implications are discussed.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"24 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139851924","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}
The view that corporations have a wider focus than just maximising shareholder value has received considerable attention from practitioners, managers, and academics alike. We investigate the Q theory of corporate investment with financial frictions when management maximises stakeholder value instead of shareholder value. Different objective functions are investigated. We characterise the optimal investment and financial policy of the firm. The results show that stakeholder firms invest more than shareholder firms, that is, over invest, and an increase of stakeholder shares increases investment, except when equity issuing firms face severe informational asymmetries or severe cost of external equity. We also discuss different approaches to model investment of stakeholder firms and their implications for empirical analysis.
{"title":"On stakeholder theory and corporate investment under financial frictions","authors":"Dariya Mykhayliv, Klaus G. Zauner","doi":"10.1002/ijfe.2942","DOIUrl":"https://doi.org/10.1002/ijfe.2942","url":null,"abstract":"The view that corporations have a wider focus than just maximising shareholder value has received considerable attention from practitioners, managers, and academics alike. We investigate the Q theory of corporate investment with financial frictions when management maximises stakeholder value instead of shareholder value. Different objective functions are investigated. We characterise the optimal investment and financial policy of the firm. The results show that stakeholder firms invest more than shareholder firms, that is, over invest, and an increase of stakeholder shares increases investment, except when equity issuing firms face severe informational asymmetries or severe cost of external equity. We also discuss different approaches to model investment of stakeholder firms and their implications for empirical analysis.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"125 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139862853","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}
This study examines the interplay between various cultural characteristics and the legal environment on classification shifting using a global sample that enables variability in underlying cultural characteristics across countries while controlling for heterogeneity. Given that both culture and the legal environment tend to exhibit low variability over time, our international cross‐country analysis with diverse cultural dimensions and legal frameworks enhances the robustness of our empirical findings. Our identification strategy employs several models and shows the significant impact of culture on classification shifting and the interactions between national culture and the legal environment on classification shifting behaviour, though there is variability across countries. We also find that certain traits of culture induce classification shifting. We highlight that strengthening the legal environment becomes crucial in creating an institutional framework that effectively curbs unethical practices induced by certain national culture traits and enhances transparency and accountability in financial reporting.
{"title":"How culture and legal environment affect classification shifting? Global evidence","authors":"Eric O. Boahen, Emmanuel C. Mamatzakis","doi":"10.1002/ijfe.2933","DOIUrl":"https://doi.org/10.1002/ijfe.2933","url":null,"abstract":"This study examines the interplay between various cultural characteristics and the legal environment on classification shifting using a global sample that enables variability in underlying cultural characteristics across countries while controlling for heterogeneity. Given that both culture and the legal environment tend to exhibit low variability over time, our international cross‐country analysis with diverse cultural dimensions and legal frameworks enhances the robustness of our empirical findings. Our identification strategy employs several models and shows the significant impact of culture on classification shifting and the interactions between national culture and the legal environment on classification shifting behaviour, though there is variability across countries. We also find that certain traits of culture induce classification shifting. We highlight that strengthening the legal environment becomes crucial in creating an institutional framework that effectively curbs unethical practices induced by certain national culture traits and enhances transparency and accountability in financial reporting.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"39 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139806608","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}
We investigate the effects of non‐synchronous trading on volatility spillover for the G‐7 equity markets during the Eurozone sovereign debt crisis (ESDC) and the Covid‐19 pandemic crisis. For data synchronisation we utilise ΜΑ(1) adjusted return series to estimate the Baba‐Engle‐Kraft‐Kroner (BEKK) and the dynamic conditional correlation (DCC) models. We also consider the use of realised kernels as explanatory variables in the variance equation. In this set up, the contagion effects during crises periods are more perceptible, as the spikes are easier to interpret. We also check the robustness of our main results by applying, wavelet coherence analysis to G‐7 major equity indices with realised kernels, as well as local Gaussian correlations (LGC). Our findings suggest the empirical significance of the synchronisation effects for the US and the other G‐7 equity markets. We also conclude that realised kernels is an effective tool for mitigating non‐synchronous effects. These results underline the significance of quantifying the synchronisation effects in equity markets as well as international portfolio diversification strategies.
{"title":"The implications of non‐synchronous trading in G‐7 financial markets","authors":"Dimitrios Dimitriou, Dimitris Kenourgios, Theodore Simos, Alexandros Tsioutsios","doi":"10.1002/ijfe.2936","DOIUrl":"https://doi.org/10.1002/ijfe.2936","url":null,"abstract":"We investigate the effects of non‐synchronous trading on volatility spillover for the G‐7 equity markets during the Eurozone sovereign debt crisis (ESDC) and the Covid‐19 pandemic crisis. For data synchronisation we utilise ΜΑ(1) adjusted return series to estimate the Baba‐Engle‐Kraft‐Kroner (BEKK) and the dynamic conditional correlation (DCC) models. We also consider the use of realised kernels as explanatory variables in the variance equation. In this set up, the contagion effects during crises periods are more perceptible, as the spikes are easier to interpret. We also check the robustness of our main results by applying, wavelet coherence analysis to G‐7 major equity indices with realised kernels, as well as local Gaussian correlations (LGC). Our findings suggest the empirical significance of the synchronisation effects for the US and the other G‐7 equity markets. We also conclude that realised kernels is an effective tool for mitigating non‐synchronous effects. These results underline the significance of quantifying the synchronisation effects in equity markets as well as international portfolio diversification strategies.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"9 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139870631","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}
This article examines how the COVID‐19 pandemic affected European trade patterns. Specifically, dynamic panel data models are estimated over the period 2019M1–2021M12 to assess the effects on exports and imports of various sectors and products (selected on the basis of their trading volume or strategic importance) of the restrictions and of other policy measures adopted by national governments during the crisis. The results suggest that the impact of the COVID‐19 pandemic was heterogeneous across sectors and product types, both the initial drop and the subsequent rebound being different depending on sectoral characteristics and the degree of resilience. In particular, trade flows of durable products were more significantly affected by the pandemic compared to those of non‐durable ones.
{"title":"The COVID‐19 pandemic and European trade patterns: A sectoral analysis","authors":"G. Caporale, A. Sova, Robert Sova","doi":"10.1002/ijfe.2943","DOIUrl":"https://doi.org/10.1002/ijfe.2943","url":null,"abstract":"This article examines how the COVID‐19 pandemic affected European trade patterns. Specifically, dynamic panel data models are estimated over the period 2019M1–2021M12 to assess the effects on exports and imports of various sectors and products (selected on the basis of their trading volume or strategic importance) of the restrictions and of other policy measures adopted by national governments during the crisis. The results suggest that the impact of the COVID‐19 pandemic was heterogeneous across sectors and product types, both the initial drop and the subsequent rebound being different depending on sectoral characteristics and the degree of resilience. In particular, trade flows of durable products were more significantly affected by the pandemic compared to those of non‐durable ones.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"53 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139871059","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}
{"title":"Introduction to essays in modelling financial market dynamics","authors":"Fredj Jawadi","doi":"10.1002/ijfe.2187","DOIUrl":"https://doi.org/10.1002/ijfe.2187","url":null,"abstract":"","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132979644","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}
Pub Date : 2022-09-04DOI: 10.15847/DINAMIACET-IUL.WP.2020.06
Ana Romão, Ricardo Barradas
The objective of this paper is to perform a time series econometric analysis in order to empirically assess the macroeconomic determinants and the corresponding drivers of the Portuguese households’ indebtedness in the period 1988 to 2016. During that period, the Portuguese economy experienced a process of financialisation that contributed to an increase in Portuguese households’ indebtedness to unprecedented levels. The Portuguese households’ indebtedness played a crucial role in the recent sovereign debt crisis. Based on the existing literature, we hypothesize that Portuguese households’ indebtedness was due to seven macroeconomic determinants, notably housing prices, financial asset prices, the degree of personal income inequality, households’ labour income, the importance of welfare state expenditures, the fraction of the working-age population and the level of interest rates. Our findings reveal that financial asset prices, the degree of personal income inequality, households’ labour income and the fraction of the working-age population positively impact Portuguese households’ indebtedness, whereas the housing prices negatively impact Portuguese households’ indebtedness. Our findings also show that the increase in financial asset prices and the decline in housing prices were the main drivers of Portuguese households’ indebtedness in the last few decades.
{"title":"Macroeconomic Determinants of Households' Indebtedness in Portugal: What Really Matters in the Era of Financialisation?","authors":"Ana Romão, Ricardo Barradas","doi":"10.15847/DINAMIACET-IUL.WP.2020.06","DOIUrl":"https://doi.org/10.15847/DINAMIACET-IUL.WP.2020.06","url":null,"abstract":"The objective of this paper is to perform a time series econometric analysis in order to empirically assess the macroeconomic determinants and the corresponding drivers of the Portuguese households’ indebtedness in the period 1988 to 2016. During that period, the Portuguese economy experienced a process of financialisation that contributed to an increase in Portuguese households’ indebtedness to unprecedented levels. The Portuguese households’ indebtedness played a crucial role in the recent sovereign debt crisis. Based on the existing literature, we hypothesize that Portuguese households’ indebtedness was due to seven macroeconomic determinants, notably housing prices, financial asset prices, the degree of personal income inequality, households’ labour income, the importance of welfare state expenditures, the fraction of the working-age population and the level of interest rates. Our findings reveal that financial asset prices, the degree of personal income inequality, households’ labour income and the fraction of the working-age population positively impact Portuguese households’ indebtedness, whereas the housing prices negatively impact Portuguese households’ indebtedness. Our findings also show that the increase in financial asset prices and the decline in housing prices were the main drivers of Portuguese households’ indebtedness in the last few decades.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130354142","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}
Pub Date : 2021-09-01DOI: 10.36095/banxico/di.2021.17
C. Alba, G. Cuadra, J. Hernández, Raul Ibarra
Este trabajo analiza los cambios recientes en la importancia relativa de los determinantes de los flujos de capital hacia las economías de mercados emergentes. Para ello, estimamos modelos de vectores autorregresivos (VAR) para el período 2009-2020. Con base en estos modelos, estimamos los efectos sobre los flujos de deuda de choques a sus determinantes. Posteriormente, cuantificamos la contribución de cada una de las variables incluidas en el modelo para explicar la evolución de estos flujos en cada mes de la muestra mediante un análisis de descomposición histórica. Los resultados principales indican que la contribución de la aversión al riesgo global para explicar la evolución de los flujos de deuda aumentó durante marzo de 2020 en comparación con el pasado, aunque su importancia relativa ha disminuido desde entonces, particularmente a medida que mejoró el desempeño de los mercados financieros.
{"title":"Capital Flows to Emerging Economies and Global Risk Aversion during the COVID-19 Pandemic","authors":"C. Alba, G. Cuadra, J. Hernández, Raul Ibarra","doi":"10.36095/banxico/di.2021.17","DOIUrl":"https://doi.org/10.36095/banxico/di.2021.17","url":null,"abstract":"Este trabajo analiza los cambios recientes en la importancia relativa de los determinantes de los flujos de capital hacia las economías de mercados emergentes. Para ello, estimamos modelos de vectores autorregresivos (VAR) para el período 2009-2020. Con base en estos modelos, estimamos los efectos sobre los flujos de deuda de choques a sus determinantes. Posteriormente, cuantificamos la contribución de cada una de las variables incluidas en el modelo para explicar la evolución de estos flujos en cada mes de la muestra mediante un análisis de descomposición histórica. Los resultados principales indican que la contribución de la aversión al riesgo global para explicar la evolución de los flujos de deuda aumentó durante marzo de 2020 en comparación con el pasado, aunque su importancia relativa ha disminuido desde entonces, particularmente a medida que mejoró el desempeño de los mercados financieros.","PeriodicalId":371613,"journal":{"name":"International Journal of Finance & Economics","volume":"33 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121183194","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：