Editor’s introduction

The eleventh issue of Financial Innovation (FIN), Volume 4, No. 4 (2018) presents nine papers contributed by 25 authors and co-authors from nine countries and areas: Bangladesh, China, India, Italy, Nigeria, Northern Cyprus, Pakistan, South Africa, Turkey.

The first paper, “ Forecasting investment and consumption behavior of economic agents through dynamic computable general equilibrium model”, by Irfan Ahmed, Claudio Socci, Francesca Severini, Qaiser Rafique Yasser and Rosita Pretaroli, uses a dynamic micro-founded model to investigate empirically the impact of the ECB’s Quantitative Easing (QE) policy on consumption and investment by economic agents in Italy. The second paper, “The ASEAN experience of the purchasing power parity theory”, by S. M. Woahid Murad and Mohammad Amzad Hossain, uses panel data analysis to evaluate the relative purchasing power parity (PPP) hypothesis of the ten ASEAN member countries between 1973 and 2015. The third paper, “Forecasting risk using auto regressive integrated moving average approach: an evidence from S&P BSE Sensex”, by Madhavi Latha Challa, Venkataramanaiah Malepati and Siva Nageswara Rao Kolusu, tries to through light on investment decisions by linking it with beta values of respective stocks. The fourth paper, “Estimating the effects of financial access on poor farmers in rural northern Nigeria”, by Terfa W. Abraham, examines whether the poorest income quintile would benefit most from programs aimed at increasing their access to financial services in rural northern Nigeria. The fifth paper, “Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries”, by Simplice Asongu, Uduak S. Akpan and Salisu R. Isihak, employs panel analysis to examine the factors that determine the direction of FDI to the fast-growing BRICS and MINT countries

The sixth paper, “Credit margin of investment in the agricultural sector and credit fungibility: the case of smallholders of district Shikarpur, Sindh, Pakistan”, examines the access to credit, credit investment, and credit fungibility for small-holder farmers and medium- and large-scale farmers in the agricultural sector of the Shikarpur District of Sindh, Pakistan. The seventh paper, “Household behavior in practicing mental budgeting based on the theory of planned behavior”, by Ume Habibah, Ibne Hassan, Muhammad Shahid Iqbal and Naintara, empirically tests TPB factors in light of mental budgeting behavior and contributes to the academic interest in theoretical progress in household behavior. The eighth paper, “Factors influencing the internet banking adoption decision in North Cyprus: an evidence from the partial least square approach of the structural equation modeling”, by Hiba Alhassany and Faisal Faisa, aims to examine how the adoption decision of the internet banking in North Cyprus would be affected based on the following dimensions; the technology features, the personal characteristics, the social environment and the expected risk. The ninth paper, “Timing the market: the economic value of price extremes”, by Haibin Xie and Shouyang Wang, empirically investigates the relationships between potential maximum gain (PMG) and potential maximum loss (PML) by decomposing asset returns into PMG and PML with price extremes.