Articles

Overall profit Malmquist productivity index under data uncertainty

The calculation of the overall profit Malmquist productivity index (MPI) requires precise and accurate information on the input, output, input-output prices of each decision making unit (DMU). However, in many...

Authors: Dariush Akbarian

Effect of regional factor productivity on manufacturing sector: The case of Sino-Pak economic ties

Economic ties and trade blocs increase the flow of trade between participating countries and lead to different levels of economic and structural changes.

Authors: Muhammad Imran, An HuSen, Muhammad Kaleem, Arshad Khan Bangash, Nizam Ud Din and Sobia

Tail dependence in emerging ASEAN-6 equity markets: empirical evidence from quantitative approaches

This study contributes a rich set of quantitative methodologies including a non-parametric approach (Chi-plots and K-plots) as well as copulas (traditional and time-varying with Student’s t-copulas) to the exi...

Authors: Duy Duong and Toan Luu Duc Huynh

The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan

Developing countries are facing the problem of environmental degradation. Environmental degradation is caused by the use of non-renewable energy consumptions for economic growth but the consequences of environ...

Authors: Muhammad Kamran Khan, Muhammad Imran Khan and Muhammad Rehan

General election effect on the network topology of Pakistan’s stock market: network-based study of a political event

To examine the interdependency and evolution of Pakistan’s stock market, we consider the cross-correlation coefficients of daily stock returns belonging to the blue chip Karachi stock exchange (KSE-100) index....

Authors: Bilal Ahmed Memon, Hongxing Yao and Rabia Tahir

The comparative African regional economics of globalization in financial allocation efficiency: the pre-crisis era revisited

This study assesses the role of globalization-fueled regionalization policies on the financial allocation efficiency of four economic and monetary regions in Africa from 1980 to 2008. Banking and financial sys...

Authors: Simplice A. Asongu, Joseph Nnanna and Vanessa S. Tchamyou

Editor’s introduction

Authors: Gang Kou

Impact of risk management strategies on the credit risk faced by commercial banks of Balochistan

This study aims to identify risk management strategies undertaken by the commercial banks of Balochistan, Pakistan, to mitigate or eliminate credit risk. The findings of the study are significant as commercial...

Authors: Zia Ur Rehman, Noor Muhammad, Bilal Sarwar and Muhammad Asif Raz

Introduction to the special issue on FinTech

Authors: Gang Kou

Industry- and liquidity-based momentum in Australian equities

This study examined momentum profitability in Australia, providing further evidence for intermediate-term momentum profitability. Using data spanning different market states, we found that momentum was stronge...

Authors: Yeng May Tan and Fan Fah Cheng

Evaluation of forecasting methods from selected stock market returns

Forecasting stock market returns is one of the most effective tools for risk management and portfolio diversification. There are several forecasting techniques in the literature for obtaining accurate forecast...

Authors: M. Mallikarjuna and R. Prabhakara Rao

Effect of family control on corporate dividend policy of firms in Pakistan

This study examines the impact of family control on the dividend policy of firms in Pakistan, covering the period from 2009 to 2016. It also investigates whether family control moderates the impact of firm-spe...

Authors: Imran Yousaf, Shoaib Ali and Arshad Hassan

The relative importance of competition to contagion: evidence from the digital currency market

How does the valuation change of an industry leader influence its competitors? Does it induce a competitive effect or a contagion effect? What are the driving forces of such influences? We attempted to answer ...

Authors: Peng Xie, Jiming Wu and Hongwei Du

Savings, investment, and growth in Nepal: an empirical analysis

This study analyzes the relationship between savings, investment, and economic growth in Nepal over 1975–2016. The structural breaks in the variables have been accounted for using the (Zivot and Andrews’s, J B...

Authors: Aadersh Joshi, Sumit Pradhan and Jagadish Prasad Bist

A chemical-reaction-optimization-based neuro-fuzzy hybrid network for stock closing price prediction

Accurate prediction of stock market behavior is a challenging issue for financial forecasting. Artificial neural networks, such as multilayer perceptron have been established as better approximation and classi...

Authors: Sarat Chandra Nayak and Bijan Bihari Misra

Does abnormal lending behavior increase bank riskiness? Evidence from Turkey

This study empirically analyzes whether the rapid growth of loans and risk-taking behavior during the expansion of loans affected non-performing loans (NPLs) and the solvency of financial institutions in the T...

Authors: Farrukh Shahzad, Zeeshan Fareed, Bushra Zulfiqar, Umme Habiba and Muhammad Ikram

Testing the relationship between financial sector output, employment and economic growth in North Cyprus

Sound and efficient functioning of financial systems is critical to the economic prosperity of any economy. This paper investigates the tripartite relationship between financial sector output, employment and e...

Authors: Behiye Cavusoglu, Saifullahi Sani Ibrahim and Huseyin Ozdeser

An integrated new threshold FCMs Markov chain based forecasting model for analyzing the power of stock trading trend

This paper explores the power of stock trading trend using an integrated New Threshold Fuzzy Cognitive Maps (NTFCMs) Markov chain model. This new model captures the positive as well as the negative jumps and p...

Authors: Kavitha Ganesan, Udhayakumar Annamalai and Nagarajan Deivanayagampillai

Publisher Correction to: Financial innovation, volume 5

An error occurred during the publication of a number of articles in Financial Innovation. Several articles were published in volume 5 with a duplicate citation number.

Authors:

Co-movement in crypto-currency markets: evidences from wavelet analysis

We study the time varying co-movement patterns of the crypto-currency prices with the help of wavelet-based methods; employing daily bilateral exchange rate of four major crypto-currencies namely Bitcoin, Ethe...

Authors: Anoop S Kumar and Taufeeq Ajaz

Assessing the spillover effects of U.S. monetary policy normalization on Nigeria sovereign bond yield

This study examines the spillover effects of U.S. monetary policy normalization on Nigeria 10-Year Treasury bond yield between 2011 and 2017, using the vector error correction model approach. Our results revea...

Authors: Kpughur Moses Tule, Osana Jackson Odonye, Udoma Johnson Afangideh, Godday Uwawunkonye Ebuh, Elijah Abasifreke Paul Udoh and Augustine Ujunwa

Do migrant remittances matter for financial development in Kenya?

The paper analyzes the relationship between remittances and financial development using Kenyan quarterly data from 2006 to 2016. Five different indicators of financial development are used: credit to the priva...

Authors: Roseline Nyakerario Misati, Anne Kamau and Hared Nassir

A hybrid Bayesian-network proposition for forecasting the crude oil price

This paper proposes a hybrid Bayesian Network (BN) method for short-term forecasting of crude oil prices. The method performed is a hybrid, based on both the aspects of classification of influencing factors as...

Authors: Babak Fazelabdolabadi

Stock market and macroeconomic variables: new evidence from India

Understanding the relationship between macroeconomic variables and the stock market is important because macroeconomic variables have a systematic effect on stock market returns. This study uses monthly data f...

Authors: R. Gopinathan and S. Raja Sethu Durai

Editor’s introduction

Authors: Gang Kou

A systematic review of blockchain

Blockchain is considered by many to be a disruptive core technology. Although many researchers have realized the importance of blockchain, the research of blockchain is still in its infancy. Consequently, this...

Authors: Min Xu, Xingtong Chen and Gang Kou

The interaction effect of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa

This study examines the interaction effects of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa (SSA). Estimates based on the system-GMM estimator using panel data on...

Authors: Kwame Acheampong

Predicting the daily return direction of the stock market using hybrid machine learning algorithms

Big data analytic techniques associated with machine learning algorithms are playing an increasingly important role in various application fields, including stock market investment. However, few studies have f...

Authors: Xiao Zhong and David Enke

Modeling and forecasting time series of precious metals: a new approach to multifractal data

We introduce a novel approach to multifractal data in order to achieve transcended modeling and forecasting performances by extracting time series out of local Hurst exponent calculations at a specified scale....

Authors: Emrah Oral and Gazanfer Unal

Macroeconomic effects of Mobile money: evidence from Uganda

This study examined the effects of mobile money—a recent innovation in Uganda’s financial-sector landscape—on aggregate economic activity and other macroeconomic variables. We first estimated the long-run mobi...

Authors: Joseph Mawejje and Paul Lakuma

Portfolio optimization by improved NSGA-II and SPEA 2 based on different risk measures

In this study, we analyze three portfolio selection strategies for loss-averse investors: semi-variance, conditional value-at-risk, and a combination of both risk measures. Moreover, we propose a novel version...

Authors: Massimiliano Kaucic, Mojtaba Moradi and Mohmmad Mirzazadeh

Income inequality and financial crises: evidence from the bootstrap rolling window

This study aims to investigate the validity of the Rajan hypothesis, which argues that increasing income inequality plays a key role in the outbreak of financial crises. The relationship between income inequal...

Authors: Mehmet Akif Destek and Bilge Koksel

A statistical learning approach for stock selection in the Chinese stock market

Forecasting stock returns is extremely challenging in general, and this task becomes even more difficult given the turbulent nature of the Chinese stock market. We address the stock selection process as a stat...

Authors: Wenbo Wu, Jiaqi Chen, Liang Xu, Qingyun He and Michael L. Tindall

On the monetary measures of global liquidity

This study constructs and examines the dynamics of theoretical and atheoretical measures of global liquidity, using monthly data on the components of broad money over the period 2001 M12-2017 M12 for 39 high i...

Authors: Israr Ahmad Shah Hashmi and Arshad Ali Bhatti

Value chain financing and plantain production in Nigeria: an ex-ante approach

Value chain finance (VCF) represents the aligning and structuring of finance within a value chain or as a result of its existence. Given the growing need to explore innovative approaches to rural and agricultu...

Authors: Mathew Paul Ojo and Adeolu Babatunde Ayanwale

Editor’s introduction

Authors: Gang Kou

Indian stock market prediction using artificial neural networks on tick data

Nowadays, the most significant challenges in the stock market is to predict the stock prices. The stock price data represents a financial time series data which becomes more difficult to predict due to its cha...

Authors: Dharmaraja Selvamuthu, Vineet Kumar and Abhishek Mishra

A dynamic credit risk assessment model with data mining techniques: evidence from Iranian banks

Giving loans and issuing credit cards are two of the main concerns of banks in that they include the risks of non-payment. According to the Basel 2 guidelines, banks need to develop their own credit risk asses...

Authors: Somayeh Moradi and Farimah Mokhatab Rafiei

The impact of bank lending on Palestine economic growth: an econometric analysis of time series data

Banking is an essential sector of Palestine’s economy. More credits provided by banks are considered to have a positive impact on economic growth so that the overall objective of this study is to examine the i...

Authors: Ibrahim M. Awad and Mohammed S. Al Karaki

Editor’s introduction

Authors: Gang Kou

Uncertainty and energy-sector equity returns in Iran: a Bayesian and quasi-Monte Carlo time-varying analysis

This study investigates whether the implied crude oil volatility and the historical OPEC price volatility can impact the return to and volatility of the energy-sector equity indices in Iran. The analysis speci...

Authors: Babak Fazelabdolabadi

Hedge fund replication using strategy specific factors

Hedge funds have traditionally served wealthy individuals and institutional investors with the promise of delivering protection of capital and uncorrelated positive returns irrespective of market direction, al...

Authors: Sujit Subhash and David Enke

Evaluation of the robusticity of mutual fund performance in Ghana using Enhanced Resilient Backpropagation Neural Network (ERBPNN) and Fast Adaptive Neural Network Classifier (FANNC)

Mutual fund investment continues to play a very important role in the world financial markets especially in developing economies where the capital market is not very matured and tolerant of small scale investo...

Authors: Yushen Kong, Micheal Owusu-Akomeah, Henry Asante Antwi, Xuhua Hu and Patrick Acheampong

Remittances, financial development and economic growth in sub-Saharan African countries: evidence from a PMG-ARDL approach

The study investigated the relationship among remittances, financial development and economic growth in a panel of 20 sub-Saharan African countries over the period of 2000 and 2015. The study used both Pooled ...

Authors: D. O. Olayungbo and Ahmod Quadri

Institutions and FDI: evidence from developed and developing countries

This study investigates the impact of institutional quality on Foreign Direct Investment (FDI) inflows using panel data for low, lower-middle, upper-middle and high-income countries for the sample period of 19...

Authors: Samina Sabir, Anum Rafique and Kamran Abbas

The interaction between stock prices and interest rates in Turkey: empirical evidence from ARDL bounds test cointegration

This paper demonstrates a significant, long-running relationship between stock prices and domestic interest rates in Turkey’s financial markets for the period of 2001 M1 – 2017 M4. Cointegration analysis is in...

Authors: Turgut Tursoy

A group decision model for credit granting in the financial market

Group decision models that contemplate the particularities of the decision-making process help organizations pursue their strategic objectives. In the financial market, the primary interest of organizations co...

Authors: Paulo Cesar Schotten and Danielle Costa Morais

Cointegration between macroeconomic factors and the exchange rate USD/CNY

This research paper investigates the effect of macroeconomic variables on the exchange rate USD/CYN using yearly time series data for China economy from 1980 to 2017. ARDL bounds test approach for cointegratio...

Authors: Muhammad Kamran Khan, Jian-Zhou Teng and Muhammad Imran Khan

Size, efficiency, market power, and economies of scale in the African banking sector

There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks. One concern is that big banks might be using their market power to charge higher lendi...

Authors: Simplice A. Asongu and Nicholas M. Odhiambo

Determinants of corporate cash holdings in tranquil and turbulent period: evidence from an emerging economy

Using a sample of 280 firms listed on the Pakistan Stock Exchange, we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014. We divide the sample into th...

Authors: Khalil Jebran, Amjad Iqbal, Kalim Ullah Bhat, Muhammad Arif Khan and Mustansar Hayat