Pub Date : 2024-01-21DOI: 10.1186/s40854-023-00545-8
Noha Emara, Daniela Zecheru
This paper analyzes the dynamic asymmetric effects of digitization on domestic inflation for a sample of 54 advanced economies (AEs) and emerging markets (EMs) over the period 2004–2018. Using Katz and Calorda’s Digital Ecosystem Development Index and employing the system Generalized Method of Moments (GMM) estimation methodology, the results of the paper reveal that the improvement in digitization has a statistically significant nonlinear deflationary effect with an exact threshold level of 43.22 points, that is, that the marginal effect of the digital penetration is larger when its level is lower than the threshold level. For EMs, with a level of digitization below the average of our full sample, policymakers must continue to invest in and expand on their digital ecosystem until the threshold level is achieved. Our results show that investment in human capital and improvement in governance can reinforce these deflationary effects. Hence, to obtain the maximum positive impact of increasing digitization on domestic inflation, EM governments should focus on maximizing school enrollment, controlling corruption, establishing rule of law, protecting the right to freedom of opinion and expression, and implementing accountability measures.
{"title":"Asymmetric threshold effects of digitization on inflation in emerging markets","authors":"Noha Emara, Daniela Zecheru","doi":"10.1186/s40854-023-00545-8","DOIUrl":"https://doi.org/10.1186/s40854-023-00545-8","url":null,"abstract":"This paper analyzes the dynamic asymmetric effects of digitization on domestic inflation for a sample of 54 advanced economies (AEs) and emerging markets (EMs) over the period 2004–2018. Using Katz and Calorda’s Digital Ecosystem Development Index and employing the system Generalized Method of Moments (GMM) estimation methodology, the results of the paper reveal that the improvement in digitization has a statistically significant nonlinear deflationary effect with an exact threshold level of 43.22 points, that is, that the marginal effect of the digital penetration is larger when its level is lower than the threshold level. For EMs, with a level of digitization below the average of our full sample, policymakers must continue to invest in and expand on their digital ecosystem until the threshold level is achieved. Our results show that investment in human capital and improvement in governance can reinforce these deflationary effects. Hence, to obtain the maximum positive impact of increasing digitization on domestic inflation, EM governments should focus on maximizing school enrollment, controlling corruption, establishing rule of law, protecting the right to freedom of opinion and expression, and implementing accountability measures.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"1 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139509071","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-19DOI: 10.1186/s40854-023-00542-x
Saif Ullah, Atta Ullah, Mubasher Zaman
The study aims to explore the impact of governance and macroeconomic conditions on financial stability in developed and emerging countries. The study sample comprised 122 countries from 2013 to 2020, and a comprehensive set of variables was used to construct the financial stability index (FSI). The results of the two-step system GMM analysis, robust with D–K regression, indicate that interest rate, GDP growth, voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, and control of corruption have a positive and statistically significant impact on financial stability. However, inflation, money supply, and the rule of law have adverse and insignificant effects on financial stability. Notably, the findings vary between developed and emerging countries due to differences in governance and macroeconomic conditions and their role in financial stability. The study concludes that regulatory governance and macroeconomic conditions are crucial for financial stability. These outcomes are significant for central banks, academia, and policymakers, as they emphasize the need for stable financial systems and sustainable, balanced growth through governance and macroeconomic conditions.
{"title":"Nexus of governance, macroeconomic conditions, and financial stability of banks: a comparison of developed and emerging countries","authors":"Saif Ullah, Atta Ullah, Mubasher Zaman","doi":"10.1186/s40854-023-00542-x","DOIUrl":"https://doi.org/10.1186/s40854-023-00542-x","url":null,"abstract":"The study aims to explore the impact of governance and macroeconomic conditions on financial stability in developed and emerging countries. The study sample comprised 122 countries from 2013 to 2020, and a comprehensive set of variables was used to construct the financial stability index (FSI). The results of the two-step system GMM analysis, robust with D–K regression, indicate that interest rate, GDP growth, voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, and control of corruption have a positive and statistically significant impact on financial stability. However, inflation, money supply, and the rule of law have adverse and insignificant effects on financial stability. Notably, the findings vary between developed and emerging countries due to differences in governance and macroeconomic conditions and their role in financial stability. The study concludes that regulatory governance and macroeconomic conditions are crucial for financial stability. These outcomes are significant for central banks, academia, and policymakers, as they emphasize the need for stable financial systems and sustainable, balanced growth through governance and macroeconomic conditions.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"56 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139514786","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-18DOI: 10.1186/s40854-023-00529-8
Ye Liu, Ke Zhang, Weili Xue, Ziyu Zhou
Crowdfunding provides a novel and potential way for innovative but risky new ventures to fund their new product development (NPD) projects. To help potential investors evaluate the projects and enhance the credibility of disclosure, founders are struggling with how to phrase the project description. The rapidly growing cleantech crowdfunding projects provide an ideal context to study this issue. We collected information on cleantech crowdfunding projects and matched non-cleantech crowdfunding projects from Kickstarter. The sample period extends from January 2013 to October 2018. Using signaling research as a theoretical lens and a dictionary-based, computerized text mining method, we found that founders of high-quality cleantech crowdfunding projects could create a reliable signal of quality by providing a project description with a less ambiguous tone and thus boost the success of crowdfunding. Moreover, the signaling effectiveness of a less ambiguous tone is more pronounced in cleantech crowdfunding than in matched non-cleantech crowdfunding, suggesting that the marginal benefit of using a less ambiguous tone is larger when the industry information environment is noisier. Further evidence shows that the signaling effectiveness of a less ambiguous tone in cleantech crowdfunding could be strengthened by backers’ endorsements. Our findings imply that tone ambiguity in project descriptions is related to founders’ information-concealing behavior. Potential investors could search ambiguous words in project descriptions and just allocate their limited attention into projects with a low percentage of ambiguous words to avoid information overload. Founders of high-quality projects could boost crowdfunding success by using a less ambiguous tone to describe their projects. The marginal effect is larger when there is greater uncertainty about project prospects.
{"title":"Crowdfunding innovative but risky new ventures: the importance of less ambiguous tone","authors":"Ye Liu, Ke Zhang, Weili Xue, Ziyu Zhou","doi":"10.1186/s40854-023-00529-8","DOIUrl":"https://doi.org/10.1186/s40854-023-00529-8","url":null,"abstract":"Crowdfunding provides a novel and potential way for innovative but risky new ventures to fund their new product development (NPD) projects. To help potential investors evaluate the projects and enhance the credibility of disclosure, founders are struggling with how to phrase the project description. The rapidly growing cleantech crowdfunding projects provide an ideal context to study this issue. We collected information on cleantech crowdfunding projects and matched non-cleantech crowdfunding projects from Kickstarter. The sample period extends from January 2013 to October 2018. Using signaling research as a theoretical lens and a dictionary-based, computerized text mining method, we found that founders of high-quality cleantech crowdfunding projects could create a reliable signal of quality by providing a project description with a less ambiguous tone and thus boost the success of crowdfunding. Moreover, the signaling effectiveness of a less ambiguous tone is more pronounced in cleantech crowdfunding than in matched non-cleantech crowdfunding, suggesting that the marginal benefit of using a less ambiguous tone is larger when the industry information environment is noisier. Further evidence shows that the signaling effectiveness of a less ambiguous tone in cleantech crowdfunding could be strengthened by backers’ endorsements. Our findings imply that tone ambiguity in project descriptions is related to founders’ information-concealing behavior. Potential investors could search ambiguous words in project descriptions and just allocate their limited attention into projects with a low percentage of ambiguous words to avoid information overload. Founders of high-quality projects could boost crowdfunding success by using a less ambiguous tone to describe their projects. The marginal effect is larger when there is greater uncertainty about project prospects.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"22 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139495698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-17DOI: 10.1186/s40854-023-00527-w
David Iheke Okorie, Boqiang Lin
Global shocks potentially distort economy’s achieved equilibria. Considering the 2020 global crude oil price shock and the 2019 coronavirus disease pandemic, this study proposes an energy and environment integrated general equilibrium model to analyze the economic, energy, and environmental effects of these global shocks on Nigeria, a developing, oil-producing, oil-dependent, and oil-exporting country. Furthermore, the mitigating roles of a fiscal stimulus–response package (palliative) are investigated and analyzed. Generally, the developed model predicts a decline in the level of economic activities. The study results are unsurprising due to Nigeria’s heavy reliance on crude oil. However, sectorial-specific impacts exist as some sectors experience output declines while others do not. Environmental quality is improved since more carbon is abated, nonetheless. Carbon intensities increased given that the price effects outweighed the quantity effects— reduced emission results from reduced economic activities and not from technological progress. The results further show a revenue-abatement paradox; a fixed carbon tax approach minimizes the tax revenue loss but may discourage carbon abatement. Conversely, the ad valorem and specific carbon tax systems encourage carbon abatement but reduce carbon tax revenues. The government’s fiscal policy stimulus–response (palliative) action dampens the impact of these global shocks on both the domestic agents and the overall economy. The results are robust and can be applied to the experiences of other developing oil-producing, oil-exporting, and oil-dependent economies.
{"title":"Global shocks and fiscal stimulus: a tale of an oil-dependent-exporting country","authors":"David Iheke Okorie, Boqiang Lin","doi":"10.1186/s40854-023-00527-w","DOIUrl":"https://doi.org/10.1186/s40854-023-00527-w","url":null,"abstract":"Global shocks potentially distort economy’s achieved equilibria. Considering the 2020 global crude oil price shock and the 2019 coronavirus disease pandemic, this study proposes an energy and environment integrated general equilibrium model to analyze the economic, energy, and environmental effects of these global shocks on Nigeria, a developing, oil-producing, oil-dependent, and oil-exporting country. Furthermore, the mitigating roles of a fiscal stimulus–response package (palliative) are investigated and analyzed. Generally, the developed model predicts a decline in the level of economic activities. The study results are unsurprising due to Nigeria’s heavy reliance on crude oil. However, sectorial-specific impacts exist as some sectors experience output declines while others do not. Environmental quality is improved since more carbon is abated, nonetheless. Carbon intensities increased given that the price effects outweighed the quantity effects— reduced emission results from reduced economic activities and not from technological progress. The results further show a revenue-abatement paradox; a fixed carbon tax approach minimizes the tax revenue loss but may discourage carbon abatement. Conversely, the ad valorem and specific carbon tax systems encourage carbon abatement but reduce carbon tax revenues. The government’s fiscal policy stimulus–response (palliative) action dampens the impact of these global shocks on both the domestic agents and the overall economy. The results are robust and can be applied to the experiences of other developing oil-producing, oil-exporting, and oil-dependent economies.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"11 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139482640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-17DOI: 10.1186/s40854-023-00525-y
George Vlahavas, Kostas Karasavvas, Athena Vakali
Since its inception in 2009, Bitcoin has become and is currently the most successful and widely used cryptocurrency. It introduced blockchain technology, which allows transactions that transfer funds between users to take place online, in an immutable manner. No real-world identities are needed or stored in the blockchain. At the same time, all transactions are publicly available and auditable, making Bitcoin a pseudo-anonymous ledger of transactions. The volume of transactions that are broadcast on a daily basis is considerably large. We propose a set of features that can be extracted from transaction data. Using this, we apply a data processing pipeline to ultimately cluster transactions via a k-means clustering algorithm, according to the transaction properties. Finally, according to these properties, we are able to characterize these clusters and the transactions they include. Our work mainly differentiates from previous studies in that it applies an unsupervised learning method to cluster transactions instead of addresses. Using the novel features we introduce, our work classifies transactions in multiple clusters, while previous studies only attempt binary classification. Results indicate that most transactions fall into a cluster that can be described as common user transactions. Other clusters include transactions made by online exchanges and lending services, those relating to mining activities as well as smaller clusters, one of which contains possibly illicit or fraudulent transactions. We evaluated our results against an online database of addresses that belong to known actors, such as online exchanges, and found that our results generally agree with them, which enhances the validity of our methods.
{"title":"Unsupervised clustering of bitcoin transactions","authors":"George Vlahavas, Kostas Karasavvas, Athena Vakali","doi":"10.1186/s40854-023-00525-y","DOIUrl":"https://doi.org/10.1186/s40854-023-00525-y","url":null,"abstract":"Since its inception in 2009, Bitcoin has become and is currently the most successful and widely used cryptocurrency. It introduced blockchain technology, which allows transactions that transfer funds between users to take place online, in an immutable manner. No real-world identities are needed or stored in the blockchain. At the same time, all transactions are publicly available and auditable, making Bitcoin a pseudo-anonymous ledger of transactions. The volume of transactions that are broadcast on a daily basis is considerably large. We propose a set of features that can be extracted from transaction data. Using this, we apply a data processing pipeline to ultimately cluster transactions via a k-means clustering algorithm, according to the transaction properties. Finally, according to these properties, we are able to characterize these clusters and the transactions they include. Our work mainly differentiates from previous studies in that it applies an unsupervised learning method to cluster transactions instead of addresses. Using the novel features we introduce, our work classifies transactions in multiple clusters, while previous studies only attempt binary classification. Results indicate that most transactions fall into a cluster that can be described as common user transactions. Other clusters include transactions made by online exchanges and lending services, those relating to mining activities as well as smaller clusters, one of which contains possibly illicit or fraudulent transactions. We evaluated our results against an online database of addresses that belong to known actors, such as online exchanges, and found that our results generally agree with them, which enhances the validity of our methods.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"3 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139482448","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-16DOI: 10.1186/s40854-023-00524-z
Qianhua Liu, Ka-Ching Chan, Ranga Chimhundu
This systematic mapping study provides a comprehensive review of current Fintech publications, analyzing the current state, maturity level, and future directions of Fintech research. Reviewing 518 Fintech articles across four academic databases from 2008 to 2021, we find a significant increase in Fintech studies, especially in Quartile 1 and Quartile 2 journals. Fintech and banking, Fintech development, and Fintech adoption are the most popular research areas, and articles in these areas are increasing. We propose a classification scheme for Fintech studies across five dimensions. Our study provides a unique perspective on the subject, enabling researchers and practitioners to re-evaluate the direction and scope of future Fintech research.
{"title":"Fintech research: systematic mapping, classification, and future directions","authors":"Qianhua Liu, Ka-Ching Chan, Ranga Chimhundu","doi":"10.1186/s40854-023-00524-z","DOIUrl":"https://doi.org/10.1186/s40854-023-00524-z","url":null,"abstract":"This systematic mapping study provides a comprehensive review of current Fintech publications, analyzing the current state, maturity level, and future directions of Fintech research. Reviewing 518 Fintech articles across four academic databases from 2008 to 2021, we find a significant increase in Fintech studies, especially in Quartile 1 and Quartile 2 journals. Fintech and banking, Fintech development, and Fintech adoption are the most popular research areas, and articles in these areas are increasing. We propose a classification scheme for Fintech studies across five dimensions. Our study provides a unique perspective on the subject, enabling researchers and practitioners to re-evaluate the direction and scope of future Fintech research.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"83 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139476568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-15DOI: 10.1186/s40854-023-00512-3
Ahmet Kaya, Dragan Pamucar, Hasan Emin Gürler, Mehmet Ozcalici
Regardless of the industry in which a company operates, evaluating corporate performance is one of the most critical and vital processes; the most essential and prominent performance evaluation is related to financial performance. Appropriate performance analysis is complex and critical for decision-makers in different financial performance factors; thus, a methodological framework is needed to solve such complex decision problems. Therefore, this research aims to rank the companies included in the sustainability index (excluding banks) in Turkey by considering their financial performance. The criteria weights were determined using the full consistency method (FUCOM) by considering the evaluations of four experts. The firms were ranked using nine multi-criteria decision-making methods. The consensus among the nine rankings was ensured with the Copeland technique. The decision matrix includes financial ratios and the stock market performance of the firms; 100,000 FUCOM weights were created with random evaluations to validate the results. The results indicate that the most crucial criterion is the current ratio by considering expert evaluations. Weight simulation indicates that alternative 16 (alternative 21) is superior (inferior) to the other alternatives, even though the weights are determined with random evaluations. Ranking with expert evaluations is similar to the mean of the weight simulation results. The results demonstrate that the proposed framework can be performed as a basis for financial performance ranking.
{"title":"Determining the financial performance of the firms in the Borsa Istanbul sustainability index: integrating multi criteria decision making methods with simulation","authors":"Ahmet Kaya, Dragan Pamucar, Hasan Emin Gürler, Mehmet Ozcalici","doi":"10.1186/s40854-023-00512-3","DOIUrl":"https://doi.org/10.1186/s40854-023-00512-3","url":null,"abstract":"Regardless of the industry in which a company operates, evaluating corporate performance is one of the most critical and vital processes; the most essential and prominent performance evaluation is related to financial performance. Appropriate performance analysis is complex and critical for decision-makers in different financial performance factors; thus, a methodological framework is needed to solve such complex decision problems. Therefore, this research aims to rank the companies included in the sustainability index (excluding banks) in Turkey by considering their financial performance. The criteria weights were determined using the full consistency method (FUCOM) by considering the evaluations of four experts. The firms were ranked using nine multi-criteria decision-making methods. The consensus among the nine rankings was ensured with the Copeland technique. The decision matrix includes financial ratios and the stock market performance of the firms; 100,000 FUCOM weights were created with random evaluations to validate the results. The results indicate that the most crucial criterion is the current ratio by considering expert evaluations. Weight simulation indicates that alternative 16 (alternative 21) is superior (inferior) to the other alternatives, even though the weights are determined with random evaluations. Ranking with expert evaluations is similar to the mean of the weight simulation results. The results demonstrate that the proposed framework can be performed as a basis for financial performance ranking.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"15 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139469910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-15DOI: 10.1186/s40854-023-00520-3
Virginie Terraza, Aslı Boru İpek, Mohammad Mahdi Rounaghi
The spread of the coronavirus has reduced the value of stock indexes, depressed energy and metals commodities prices including oil, and caused instability in financial markets around the world. Due to this situation, investors should consider investing in more secure assets, such as real estate property, cash, gold, and crypto assets. In recent years, among secure assets, cryptoassets are gaining more attention than traditional investments. This study compares the Bitcoin market, the gold market, and American stock indexes (S&P500, Nasdaq, and Dow Jones) before and during the COVID-19 pandemic. For this purpose, the dynamic conditional correlation exponential generalized autoregressive conditional heteroskedasticity model was used to estimate the DCC coefficient and compare this model with the artificial neural network approach to predict volatility of these markets. Our empirical findings showed a substantial dynamic conditional correlation between Bitcoin, gold, and stock markets. In particular, we observed that Bitcoin offered better diversification opportunities to reduce risks in key stock markets during the COVID-19 period. This paper provides practical impacts on risk management and portfolio diversification.
{"title":"The nexus between the volatility of Bitcoin, gold, and American stock markets during the COVID-19 pandemic: evidence from VAR-DCC-EGARCH and ANN models","authors":"Virginie Terraza, Aslı Boru İpek, Mohammad Mahdi Rounaghi","doi":"10.1186/s40854-023-00520-3","DOIUrl":"https://doi.org/10.1186/s40854-023-00520-3","url":null,"abstract":"The spread of the coronavirus has reduced the value of stock indexes, depressed energy and metals commodities prices including oil, and caused instability in financial markets around the world. Due to this situation, investors should consider investing in more secure assets, such as real estate property, cash, gold, and crypto assets. In recent years, among secure assets, cryptoassets are gaining more attention than traditional investments. This study compares the Bitcoin market, the gold market, and American stock indexes (S&P500, Nasdaq, and Dow Jones) before and during the COVID-19 pandemic. For this purpose, the dynamic conditional correlation exponential generalized autoregressive conditional heteroskedasticity model was used to estimate the DCC coefficient and compare this model with the artificial neural network approach to predict volatility of these markets. Our empirical findings showed a substantial dynamic conditional correlation between Bitcoin, gold, and stock markets. In particular, we observed that Bitcoin offered better diversification opportunities to reduce risks in key stock markets during the COVID-19 period. This paper provides practical impacts on risk management and portfolio diversification.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"4 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139470212","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-14DOI: 10.1186/s40854-023-00561-8
José Carlos Vides, Julia Feria, Antonio A. Golpe, Juan Manuel Martín-Álvarez
The study of the relationship between crude oil and its refined products prices may be perceived as an important tool for testing how are the dynamics and the type of integration of the petro-derivatives market in the United States. In this sense, we have applied a set of causality tests to study the possible presence of asymmetries in the relationship between WTI crude oil and each refined product price and to explore the type of market integration. Furthermore, the application of these causality tests lets us explore the validation of different hypotheses in the literature, such as the Rocket and Feathers hypothesis and the Verleger hypothesis. Our findings reveal that Reformulated Gasoline Blendstock for Oxygen Blending (RBOB), heating oil, diesel and kerosene are supply-driven integrated and conventional gasoline and kerosene are demand-driven integrated when linear effects are assessed. This behaviour changes deeply when the existence of asymmetries is tested, noticing that the Rocket and Feathers hypothesis is not fulfilled when a negative shock appears. Conversely, the Verleger hypothesis is supported when a negative shock appears for conventional gasoline and kerosene. These results provide important policy implications for investors, energy policymakers and refiners.
{"title":"How do supply or demand shocks affect the US oil market?","authors":"José Carlos Vides, Julia Feria, Antonio A. Golpe, Juan Manuel Martín-Álvarez","doi":"10.1186/s40854-023-00561-8","DOIUrl":"https://doi.org/10.1186/s40854-023-00561-8","url":null,"abstract":"The study of the relationship between crude oil and its refined products prices may be perceived as an important tool for testing how are the dynamics and the type of integration of the petro-derivatives market in the United States. In this sense, we have applied a set of causality tests to study the possible presence of asymmetries in the relationship between WTI crude oil and each refined product price and to explore the type of market integration. Furthermore, the application of these causality tests lets us explore the validation of different hypotheses in the literature, such as the Rocket and Feathers hypothesis and the Verleger hypothesis. Our findings reveal that Reformulated Gasoline Blendstock for Oxygen Blending (RBOB), heating oil, diesel and kerosene are supply-driven integrated and conventional gasoline and kerosene are demand-driven integrated when linear effects are assessed. This behaviour changes deeply when the existence of asymmetries is tested, noticing that the Rocket and Feathers hypothesis is not fulfilled when a negative shock appears. Conversely, the Verleger hypothesis is supported when a negative shock appears for conventional gasoline and kerosene. These results provide important policy implications for investors, energy policymakers and refiners.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"1 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139464770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-14DOI: 10.1186/s40854-023-00538-7
Fabian Wagner
The growing demand for digital investment advisory services and the advancing technological process led to increased attention to this topic in recent literature. In light of these developments, the question arises whether conventional and digital advisors behave differently in their investment advisory decisions. I therefore conducted a systematic literature review and evaluated 97 publications on the determinants of conventional and digital investment advisory decisions. Based on the literature, five main determinants were identified that are important for investment advisory decisions. These determinants are identical for both variants of the advice, but there are differences in the way they are addressed. This systematic literature review provides an overview of the current state of research and can therefore help identify areas where investment advice can be improved in the future.
{"title":"Determinants of conventional and digital investment advisory decisions: a systematic literature review","authors":"Fabian Wagner","doi":"10.1186/s40854-023-00538-7","DOIUrl":"https://doi.org/10.1186/s40854-023-00538-7","url":null,"abstract":"The growing demand for digital investment advisory services and the advancing technological process led to increased attention to this topic in recent literature. In light of these developments, the question arises whether conventional and digital advisors behave differently in their investment advisory decisions. I therefore conducted a systematic literature review and evaluated 97 publications on the determinants of conventional and digital investment advisory decisions. Based on the literature, five main determinants were identified that are important for investment advisory decisions. These determinants are identical for both variants of the advice, but there are differences in the way they are addressed. This systematic literature review provides an overview of the current state of research and can therefore help identify areas where investment advice can be improved in the future.","PeriodicalId":37175,"journal":{"name":"Financial Innovation","volume":"168 1","pages":""},"PeriodicalIF":8.4,"publicationDate":"2024-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139464773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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