Abstract This paper aims to answer whether firms of different sizes and stock liquidities differ in the choice of external sources of financing in companies listed in CEE countries. To this end the net debt issuance is regressed on the financial deficit. In regressions Pecking Order Coefficients are allowed to vary across firms with different sizes and stock liquidities. The results indicate that companies with less liquid shares prefer issuing debt to cover financial deficits more than companies with more liquid shares. This implies that stock liquidity may substitute debt issuance in alleviating the adverse effects of information asymmetry, especially in relatively small companies. This is the first study in which the relationship between liquidity and debt-equity choice is considered solely from a pecking order theory point of view. Also this is the first study in which stock liquidity effects on capital structure are studied in the CEE countries. Research results may point to the advantages of increasing the liquidity of shares which may contribute to reducing information asymmetry and thus a better allocation of resources.
{"title":"The choice of external financing source: The role of company size and stock liquidity","authors":"Szymon Stereńczak, J. Kubiak","doi":"10.18559/ebr.2023.3.800","DOIUrl":"https://doi.org/10.18559/ebr.2023.3.800","url":null,"abstract":"Abstract This paper aims to answer whether firms of different sizes and stock liquidities differ in the choice of external sources of financing in companies listed in CEE countries. To this end the net debt issuance is regressed on the financial deficit. In regressions Pecking Order Coefficients are allowed to vary across firms with different sizes and stock liquidities. The results indicate that companies with less liquid shares prefer issuing debt to cover financial deficits more than companies with more liquid shares. This implies that stock liquidity may substitute debt issuance in alleviating the adverse effects of information asymmetry, especially in relatively small companies. This is the first study in which the relationship between liquidity and debt-equity choice is considered solely from a pecking order theory point of view. Also this is the first study in which stock liquidity effects on capital structure are studied in the CEE countries. Research results may point to the advantages of increasing the liquidity of shares which may contribute to reducing information asymmetry and thus a better allocation of resources.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"8 1","pages":"44 - 65"},"PeriodicalIF":0.7,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82936504","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 The aim of the paper is to examine socio-economic determinants of environmental degradation. The empirical study employs quantile regression which enables separate predictions for different levels of the dependent variable to be made. This study investigated 62 countries from low, middle and some high income countries for 1995–2019. The Environmental Kuznets Curve (EKC) is verified for the aforemented countries in analyzing the relationship between economic growth and carbon emissions using quantile regression. The study also revealed that the schooling rate has a pollution-increasing effect. In addition to the reducing effects of trade openness, democracy, and economic freedom variables on environmental degradation, the opposite effect of life expectancy at birth is observed, increasing environmental degradation. In this context, this paper concluded that the EKC hypothesis is not supported. The government should encourage pollution-reducing policies in low and middle income countries.
{"title":"Socio-economic determinants of environmental degradation: Empirical evidence for the Environmental Kuznets Curve","authors":"Ömer Faruk Gültekin, Ramazan Sayar, Y. Ari","doi":"10.18559/ebr.2023.3.797","DOIUrl":"https://doi.org/10.18559/ebr.2023.3.797","url":null,"abstract":"Abstract The aim of the paper is to examine socio-economic determinants of environmental degradation. The empirical study employs quantile regression which enables separate predictions for different levels of the dependent variable to be made. This study investigated 62 countries from low, middle and some high income countries for 1995–2019. The Environmental Kuznets Curve (EKC) is verified for the aforemented countries in analyzing the relationship between economic growth and carbon emissions using quantile regression. The study also revealed that the schooling rate has a pollution-increasing effect. In addition to the reducing effects of trade openness, democracy, and economic freedom variables on environmental degradation, the opposite effect of life expectancy at birth is observed, increasing environmental degradation. In this context, this paper concluded that the EKC hypothesis is not supported. The government should encourage pollution-reducing policies in low and middle income countries.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"44 1","pages":"66 - 97"},"PeriodicalIF":0.7,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76486673","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 The study aims to empirically determine whether a higher level of trade openness and the presence of better legal protection for investors enhances the impact of trade bloc membership on capital mobility based on four trading blocs: Eurasian Economic Union (EAEU), Central American and Dominican Republic Free Trade Agreement (CAFTADR), Central European Free Trade Agreement (CEFTA), and the Pacific Alliance. This study employs the fully modified and dynamic ordinary least squares estimators and a panel quantile regression cointegration estimator. The study finds that a country’s affiliation with a trade bloc improves capital mobility in the whole group and EAEU region, low capital mobility in the Pacific Alliance region and moderate low capital mobility in the CAFTA-DR region. The legal protection system alone provided for the investors does not improve the level of capital mobility unless its interaction with investment is included. Also the study reveals that high trade openness does not necessarily lead to better capital mobility for the studied trade blocs.
{"title":"Does regional trade integration reinforce or weaken capital mobility? New evidence from four free trade areas","authors":"M. Ganić, Amila Novalic","doi":"10.18559/ebr.2023.3.795","DOIUrl":"https://doi.org/10.18559/ebr.2023.3.795","url":null,"abstract":"Abstract The study aims to empirically determine whether a higher level of trade openness and the presence of better legal protection for investors enhances the impact of trade bloc membership on capital mobility based on four trading blocs: Eurasian Economic Union (EAEU), Central American and Dominican Republic Free Trade Agreement (CAFTADR), Central European Free Trade Agreement (CEFTA), and the Pacific Alliance. This study employs the fully modified and dynamic ordinary least squares estimators and a panel quantile regression cointegration estimator. The study finds that a country’s affiliation with a trade bloc improves capital mobility in the whole group and EAEU region, low capital mobility in the Pacific Alliance region and moderate low capital mobility in the CAFTA-DR region. The legal protection system alone provided for the investors does not improve the level of capital mobility unless its interaction with investment is included. Also the study reveals that high trade openness does not necessarily lead to better capital mobility for the studied trade blocs.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"15 1","pages":"239 - 264"},"PeriodicalIF":0.7,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79100041","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 This study employs robust martingale difference hypothesis tests to examine return predictability in a broad sample of the 40 most capitalized cryptocurrency markets in the context of the adaptive market hypothesis. The tests were applied to daily returns using the rolling window method in the research period from May 1, 2013 to September 30, 2022. The results of this study suggest that the returns of the majority of the examined cryptocurrencies were unpredictable most of the time. However, a great part of them also suffered some short periods of weak-form inefficiency. The results obtained validate the adaptive market hypothesis. Additionally, this study allowed the observation of some differences in return predictability between the examined cryptocurrencies. Also some historical trends in weak-form efficiency were identified. The results suggest that the predictability of cryptocurrency returns might have decreased in recent years also no significant relationship between market cap and predictability was observed.
{"title":"The adaptive market hypothesis and the return predictability in the cryptocurrency markets","authors":"J. Karasiński","doi":"10.18559/ebr.2023.1.4","DOIUrl":"https://doi.org/10.18559/ebr.2023.1.4","url":null,"abstract":"Abstract This study employs robust martingale difference hypothesis tests to examine return predictability in a broad sample of the 40 most capitalized cryptocurrency markets in the context of the adaptive market hypothesis. The tests were applied to daily returns using the rolling window method in the research period from May 1, 2013 to September 30, 2022. The results of this study suggest that the returns of the majority of the examined cryptocurrencies were unpredictable most of the time. However, a great part of them also suffered some short periods of weak-form inefficiency. The results obtained validate the adaptive market hypothesis. Additionally, this study allowed the observation of some differences in return predictability between the examined cryptocurrencies. Also some historical trends in weak-form efficiency were identified. The results suggest that the predictability of cryptocurrency returns might have decreased in recent years also no significant relationship between market cap and predictability was observed.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"148 1","pages":"94 - 118"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73475494","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}
Krzysztof Węcel, Marcin Sawiński, Milena Stróżyna, Włodzimierz Lewoniewski, Ewelina Księżniak, P. Stolarski, W. Abramowicz
Abstract In this paper the impact of large language models (LLM) on the fake news phenomenon is analysed. On the one hand decent text‐generation capabilities can be misused for mass fake news production. On the other, LLMs trained on huge volumes of text have already accumulated information on many facts thus one may assume they could be used for fact‐checking. Experiments were designed and conducted to verify how much LLM responses are aligned with actual fact‐checking verdicts. The research methodology consists of an experimental dataset preparation and a protocol for interacting with ChatGPT, currently the most sophisticated LLM. A research corpus was explicitly composed for the purpose of this work consisting of several thousand claims randomly selected from claim reviews published by fact‐ checkers. Findings include: it is difficult to align the respons‐ es of ChatGPT with explanations provided by fact‐checkers; prompts have significant impact on the bias of responses. ChatGPT at the current state can be used as a support in fact‐checking but cannot verify claims directly.
{"title":"Artificial intelligence—friend or foe in fake news campaigns","authors":"Krzysztof Węcel, Marcin Sawiński, Milena Stróżyna, Włodzimierz Lewoniewski, Ewelina Księżniak, P. Stolarski, W. Abramowicz","doi":"10.18559/ebr.2023.2.736","DOIUrl":"https://doi.org/10.18559/ebr.2023.2.736","url":null,"abstract":"Abstract In this paper the impact of large language models (LLM) on the fake news phenomenon is analysed. On the one hand decent text‐generation capabilities can be misused for mass fake news production. On the other, LLMs trained on huge volumes of text have already accumulated information on many facts thus one may assume they could be used for fact‐checking. Experiments were designed and conducted to verify how much LLM responses are aligned with actual fact‐checking verdicts. The research methodology consists of an experimental dataset preparation and a protocol for interacting with ChatGPT, currently the most sophisticated LLM. A research corpus was explicitly composed for the purpose of this work consisting of several thousand claims randomly selected from claim reviews published by fact‐ checkers. Findings include: it is difficult to align the respons‐ es of ChatGPT with explanations provided by fact‐checkers; prompts have significant impact on the bias of responses. ChatGPT at the current state can be used as a support in fact‐checking but cannot verify claims directly.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"4 1","pages":"41 - 70"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78960462","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 the thematic issue on digitalisation, big data, and artificial intelligence","authors":"H. Brezinski, W. Jurek","doi":"10.18559/ebr.2023.2.735","DOIUrl":"https://doi.org/10.18559/ebr.2023.2.735","url":null,"abstract":"","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"10 1","pages":"3 - 7"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83636125","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 President Trump imposed tariffs in 2017 on several of China’s exports, notably steel. Many papers opposed these tariffs by using a common, invalid argument: rather than arguing these tariffs reduced U.S. welfare, they argue U.S. consumers and businesses pay the tariffs, a different, rhetorical issue. Their main evidence of harm is increases in imported goods’ after-tariff U.S. prices, especially relative to other goods’ U.S. prices. In a standard, small general equilibrium model (two countries, two goods, two factors), this price evidence is wholly ambiguous—it is even consistent with the view that Trump’s tariff was optimal, increasing U.S. welfare. Even sophisticated papers are similarly ambiguous. All fail because they neglect how government uses tariff revenue. Relying on fallacious arguments makes the free-trade position look weak and encourages protectionism.
{"title":"Tariffs and welfare: A common, invalid anti-tariff argument","authors":"R. Sweeney","doi":"10.18559/ebr.2023.1.1","DOIUrl":"https://doi.org/10.18559/ebr.2023.1.1","url":null,"abstract":"Abstract President Trump imposed tariffs in 2017 on several of China’s exports, notably steel. Many papers opposed these tariffs by using a common, invalid argument: rather than arguing these tariffs reduced U.S. welfare, they argue U.S. consumers and businesses pay the tariffs, a different, rhetorical issue. Their main evidence of harm is increases in imported goods’ after-tariff U.S. prices, especially relative to other goods’ U.S. prices. In a standard, small general equilibrium model (two countries, two goods, two factors), this price evidence is wholly ambiguous—it is even consistent with the view that Trump’s tariff was optimal, increasing U.S. welfare. Even sophisticated papers are similarly ambiguous. All fail because they neglect how government uses tariff revenue. Relying on fallacious arguments makes the free-trade position look weak and encourages protectionism.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"3 1","pages":"5 - 25"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75118133","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 The article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modifying some of its equations in a way which ensures that they reflect real macroeconomic dependencies more properly. The equations that have been modified describe final demand expectations, determinants of production decisions, fixed capital accumulation, tax revenues, government budget deficit and money demand. The second aim is to transform the model into an intensive form described by seven non-linear differential equations and determine its unique steady state which shows proportions between variables on the balanced growth path. The third ultimate aim is to present a mathematical proof that the new improved version of the KMG model is locally asymptotically stable.
{"title":"On the stability of a certain Keynes-Metzler-Goodwin monetary growth model","authors":"Damian Sołtysiak","doi":"10.18559/ebr.2023.1.2","DOIUrl":"https://doi.org/10.18559/ebr.2023.1.2","url":null,"abstract":"Abstract The article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modifying some of its equations in a way which ensures that they reflect real macroeconomic dependencies more properly. The equations that have been modified describe final demand expectations, determinants of production decisions, fixed capital accumulation, tax revenues, government budget deficit and money demand. The second aim is to transform the model into an intensive form described by seven non-linear differential equations and determine its unique steady state which shows proportions between variables on the balanced growth path. The third ultimate aim is to present a mathematical proof that the new improved version of the KMG model is locally asymptotically stable.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"25 1","pages":"26 - 64"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73072144","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 The widespread use of digital technologies in banking allows banks to obtain and analyse huge amounts of data from different communication channels. While this phenomenon is conducive to improving the quality of services it also increases the risk of privacy breaches. The aim of this study is to identify what factors determine consumer acceptance of banks’ use of public access personal data found on social media accounts. The results indicate the importance of the financial incentive and consumers’ assessment of banks’ information activities regarding the processing of personal data. Determinants relating to the technological sophistication of respondents were also found to be significant, with a particular focus on the ethical evaluation of decisions made by Artificial Intelligence algorithms. The results of the work may be used by banks in practice to adapt the area of personal data management to the requirements of e-privacy and Trustworthy Artificial Intelligence.
{"title":"Privacy frontiers in customers’ relations with banks","authors":"D. Piotrowski","doi":"10.18559/ebr.2023.1.5","DOIUrl":"https://doi.org/10.18559/ebr.2023.1.5","url":null,"abstract":"Abstract The widespread use of digital technologies in banking allows banks to obtain and analyse huge amounts of data from different communication channels. While this phenomenon is conducive to improving the quality of services it also increases the risk of privacy breaches. The aim of this study is to identify what factors determine consumer acceptance of banks’ use of public access personal data found on social media accounts. The results indicate the importance of the financial incentive and consumers’ assessment of banks’ information activities regarding the processing of personal data. Determinants relating to the technological sophistication of respondents were also found to be significant, with a particular focus on the ethical evaluation of decisions made by Artificial Intelligence algorithms. The results of the work may be used by banks in practice to adapt the area of personal data management to the requirements of e-privacy and Trustworthy Artificial Intelligence.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"17 1","pages":"119 - 141"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87479749","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 Accidentally parallel at the beginning, the transition to value-based pricing and transition to pricing data science have blended harmoniously, changing the pricing landscape. Using the marketing capability approach, I show that the introduction of pricing data science is costly and requires higher management support. Despite its cost, algorithmic price optimisation allows one to react swiftly to changes in demand. The optimisation process is applied to inherently non-linear, multimodal, and right-skewed pricing data. Presenting the interactions between new computational techniques and value-data pricing, I concentrate on altered perceptions of price elasticity, value-driver estimations, and contract opportunity analysis.
{"title":"Pricing and data science: The tale of two accidentally parallel transitions","authors":"J. Wallusch","doi":"10.18559/ebr.2023.2.739","DOIUrl":"https://doi.org/10.18559/ebr.2023.2.739","url":null,"abstract":"Abstract Accidentally parallel at the beginning, the transition to value-based pricing and transition to pricing data science have blended harmoniously, changing the pricing landscape. Using the marketing capability approach, I show that the introduction of pricing data science is costly and requires higher management support. Despite its cost, algorithmic price optimisation allows one to react swiftly to changes in demand. The optimisation process is applied to inherently non-linear, multimodal, and right-skewed pricing data. Presenting the interactions between new computational techniques and value-data pricing, I concentrate on altered perceptions of price elasticity, value-driver estimations, and contract opportunity analysis.","PeriodicalId":41557,"journal":{"name":"Economics and Business Review","volume":"85 1","pages":"115 - 132"},"PeriodicalIF":0.7,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85518334","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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