Articles

Forecasting cryptocurrency returns and volume using search engines

In the context of the debate on the role of cryptocurrencies in the economy as well as their dynamics and forecasting, this brief study analyzes the predictability of Bitcoin volume and returns using Google se...

Authors: Muhammad Ali Nasir, Toan Luu Duc Huynh, Sang Phu Nguyen and Duy Duong

Alternative measure of financial development and investment-cash flow sensitivity: evidence from an emerging economy

This study examines the impact of financial development on corporate investment in terms of their influence on financing constraints. This study also tries to find the effect of financial development on the in...

Authors: Gaurav Gupta and Jitendra Mahakud

Editor’s introduction

Authors: Gang Kou

Timing the market: the economic value of price extremes

By decomposing asset returns into potential maximum gain (PMG) and potential maximum loss (PML) with price extremes, this study empirically investigated the relationships between PMG and PML. We found signific...

Authors: Haibin Xie and Shouyang Wang

Factors influencing the internet banking adoption decision in North Cyprus: an evidence from the partial least square approach of the structural equation modeling

This paper 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 soci...

Authors: Hiba Alhassany and Faisal Faisal

Household behavior in practicing mental budgeting based on the theory of planned behavior

Ajzen’s theory of planned behavior (TPB) suggests that planned behavior is determined by behavioral intention. Despite extensive literature based on TPB, household mental budgeting behavior explained by TPB is...

Authors: Ume Habibah, Ibne Hassan, Muhammad Shahid Iqbal and Naintara

Credit margin of investment in the agricultural sector and credit fungibility: the case of smallholders of district Shikarpur, Sindh, Pakistan

This study 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, P...

Authors: Abbas Ali Chandio, Yuansheng Jiang and Abdul Rehman

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

The flow of foreign direct investment (FDI) into a country can benefit both the investing entity and host government. This study employed panel analysis to examine the factors that determine the direction of F...

Authors: Simplice Asongu, Uduak S. Akpan and Salisu R. Isihak

Estimating the effects of financial access on poor farmers in rural northern Nigeria

By recognizing the gap in the literature in examining the effects of financial resources and development outcomes at the household level, this paper examines whether the poorest income quintile would benefit m...

Authors: Terfa W. Abraham

Forecasting risk using auto regressive integrated moving average approach: an evidence from S&P BSE Sensex

The primary objective of the paper is to forecast the beta values of companies listed on Sensex, Bombay Stock Exchange (BSE). The BSE Sensex constitutes 30 top most companies listed which are popularly known a...

Authors: Madhavi Latha Challa, Venkataramanaiah Malepati and Siva Nageswara Rao Kolusu

The ASEAN experience of the purchasing power parity theory

We used panel data analysis to evaluate the relative purchasing power parity (PPP) hypothesis of the ten ASEAN member countries between 1973 and 2015. We incorporated the cross-sectionally augmented panel unit...

Authors: S. M. Woahid Murad and Mohammad Amzad Hossain

Editor’s introduction

Authors: Gang Kou

Estimating stock closing indices using a GA-weighted condensed polynomial neural network

Accurate forecasting of changes in stock market indices can provide financial managers and individual investors with strategically valuable information. However, predicting the closing prices of stock indices ...

Authors: Sarat Chandra Nayak and Bijan Bihari Misra

Nexus between financial innovation and economic growth in South Asia: evidence from ARDL and nonlinear ARDL approaches

This study examined the relationship between financial innovation and economic growth in Bangladesh, India, Pakistan, and Sri Lanka for the period Q1 1975 to Q4 2016. The autoregressive distributed lag (ARDL) ...

Authors: Md. Qamruzzaman and Wei Jianguo

Modelling trust evolution within small business lending relationships

Trust is a key dimension in the principal-agent relationship and it has been studied extensively. However, the dynamics, evolution, and intrinsic motivation and mechanisms have received less attention. This pa...

Authors: Ying Tang, Andrea Moro, Sandro Sozzo and Zhiyong Li

Beta through the prism of wavelets

In this paper, we empirically show how wavelet decomposition can provide an easy vehicle to study the systematic risk properties of return series to serve as protocol for different traders who view the market ...

Authors: Aasif Shah, Arif Tali and Qaiser Farooq

Editor’s introduction

Authors: Gang Kou

Herding behavior in Ramadan and financial crises: the case of the Pakistani stock market

This study examines herding behavior in the Pakistani Stock Market under different market conditions, focusing on the Ramadan effect and Crisis period by using data from 2004 to 2014. Two regression models of ...

Authors: Imran Yousaf, Shoaib Ali and Syed Zulfiqar Ali Shah

Financial frictions and the cash flow – external financing sensitivity: evidence from a panel of Pakistani firms

This paper uses a large panel of Pakistani non-financial firms over the period 2000–2013 to examine the role of financial constraints in establishing the relationship between cash flow and external financing. ...

Authors: Abdul Rashid and Noshaba Jabeen

Is money going digital? An alternative perspective on the current hype

Current financial discourse suggests the imminence of a cashless society, a concept that arose from the global popularization of digital financial services and the development of technologies with the potentia...

Authors: Daniel Gersten Reiss

Impact of global financial crunch on financially innovative microfinance institutions in South Asia

The wave of global financial crises (2008–2009) caused a surge in the capital flows of developed countries particularly, between developed and developing countries. The crunch hit all financial sectors with un...

Authors: Faisal Mustafa, Ambreen Khursheed and Maham Fatima

Does financial depth impact economic growth in North Cyprus?

This study purpose is to connect the proxy of financial development which is total banking sector’s deposits with the economic growth in North Cyprus. The reason for using the total deposit differently with th...

Authors: Turgut Türsoy and Faisal Faisal

Climate change and financing adaptation by farmers in northern Nigeria

This paper examines farmers’ perceptions of their exposure to climate change in rural northern Nigeria. It also examines whether there is a significant relationship between the exposure of farmers to climate c...

Authors: Terfa W. Abraham and William M. Fonta

Value-at-risk under ambiguity aversion

This study explored the effects of ambiguity on the calculation of Value-at-Risk (VaR) using a mathematical model based on the theory of Choquet-Brownian processes. It was found that while a moderate degree of...

Authors: Rossella Agliardi

Editor’s introduction

Authors: Gang Kou

Brent prices and oil stock behaviors: evidence from Nigerian listed oil stocks

Given the shale oil glut that culminated in the most recent and continuing oil price drop from June 2014 and the global financial crisis of 2008 that triggered a cyclical downturn in oil prices and stock marke...

Authors: Amarachi Uzo-Peters, Temitope Laniran and Adeola Adenikinju

Forecasting investment and consumption behavior of economic agents through dynamic computable general equilibrium model

Much research has been devoted to examination of the financial easing policy of the European Central Bank (ECB). However, this study is one of the first to use a dynamic micro-founded model to investigate empi...

Authors: Irfan Ahmed, Claudio Socci, Francesca Severini, Qaiser Rafique Yasser and Rosita Pretaroli

Financial constraints and investment decisions of listed Indian manufacturing firms

The purpose of the study is to understand the role of cash flow sensitivity to investment as a measure of financial constraints among listed Indian manufacturing firms. It also analyses the role of tangibility...

Authors: Sanjeev Kumar and K. S. Ranjani

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Exclusion from the mainstream financial world is a burden on the poor of many countries. The proliferation of new mobile and online financial services, such as e-banking, money transfers, and payment processin...

Authors: Sanjaya Kumar Lenka and Rajesh Barik

Can we have a general theory of financial innovation processes? A conceptual review

Since the financial crisis of 2008, the theory of financial innovation has been a focus at a time of re-evaluation and re-conceptualization. However, little has been done to evaluate the current state of resea...

Authors: Tamer Khraisha and Keren Arthur

Examination of the profitability of technical analysis based on moving average strategies in BRICS

In this paper, we investigated the profitability of technical analysis as applied to the stock markets of the BRICS member nations. In addition, we searched for evidence that technical analysis and fundamental...

Authors: Matheus José Silva de Souza, Danilo Guimarães Franco Ramos, Marina Garcia Pena, Vinicius Amorim Sobreiro and Herbert Kimura

Sustainable strategy for corporate governance based on the sentiment analysis of financial reports with CSR

Focusing only on shareholders’ financial return is not consistent with the concept of sustainable corporate governance. In contrast to financial performance, corporate social responsibility (CSR) is a non-fina...

Authors: Yuan Song, Hongwei Wang and Maoran Zhu

BM(book-to-market ratio) factor: medium-term momentum and long-term reversal

To explain medium-term momentum and long-term reversal, we use the difference between the optional model and the CAPM model to construct a winner-loser portfolio. According to the CAPM model’s zero explanatory...

Authors: Liu Wei-qi and Zhang Jingxing

Value investing or investing in illiquidity? The profitability of contrarian investment strategies, revisited

 We investigate whether the success of contrarian investment strategies can be attributed to differences in the relative illiquidity of stocks categorized as value investments versus those categorized as glamo...

Authors: Aron A. Gottesman, Gady Jacoby and Huijing Li

Editor’s Introduction

Authors: Gang Kou

Teaching programming skills to finance students: how to design and teach a great course

A motivated finance-major student should master at least one programming language. This is especially true for students from quantitative finance, business analytics, those attending a Master of Science in Fin...

Authors: Yuxing Yan

Editor’s introduction

Authors: J. Leon Zhao

Day-of-the-week returns and mood: an exterior template approach

Rule- and template-based pattern-recognition methods are alternative ways to identify various patterns in stock prices alongside more traditional econometric tools. In this study, we generate an exterior templ...

Authors: Shlomo Zilca

The evolution and cross-section of the day-of-the-week effect

We study the day-of-the-week effect across size deciles and in three 18-year subperiods. The results show a decline in the magnitude of the day-of-the-week effect, but the effect did not vanish. We find that t...

Authors: Shlomo Zilca

Optimal stopping investment in a logarithmic utility-based portfolio selection problem

In this paper, we study the right time for an investor to stop the investment over a given investment horizon so as to obtain as close to the highest possible wealth as possible, according to a Logarithmic uti...

Authors: Xun Li, Xianping Wu and Wenxin Zhou

Influence of meditation on estate planning decisions: evidence from Indian survey data

Intestate death can lead to the distribution of assets against the personal wishes of the deceased and is a problem in India, as 80% of Indians die without making a last will. Following the concepts of decisio...

Authors: Amarjit Gill, Harvinder S. Mand, John D. Obradovich and Neil Mathur

The impact of FinTech start-ups on incumbent retail banks’ share prices

This study aims to clarify the role of FinTech digital banking start-ups in the financial industry. We examine the impact of the funding of such start-ups on the stock returns of 47 incumbent US retail banks f...

Authors: Yinqiao Li, Renée Spigt and Laurens Swinkels

Financial sector development and economic growth: evidence from Cameroon

For decades, African economies have embarked on financial sector reforms. However, the empirical implications of these reforms have been divergent. This paper investigates the impact of financial development o...

Authors: Janice Tieguhong Puatwoe and Serge Mandiefe Piabuo

Performance evaluation of series and parallel strategies for financial time series forecasting

Improving financial time series forecasting is one of the most challenging and vital issues facing numerous financial analysts and decision makers. Given its direct impact on related decisions, various attempt...

Authors: Mehdi Khashei and Zahra Hajirahimi

Monetary and fiscal factors in nominal interest rate variations in Sri Lanka under a deregulated regime

This paper examines the role of monetary and fiscal factors in interest rate variations in Sri Lanka under its deregulated regime of interest rates. In addition the paper also examines the role of monetary fac...

Authors: Biswajit Maitra

Diversification, bank performance and risk: have Tunisian banks adopted the new business model?

The objective of this paper is threefold. First, we test the most important factors that determine the level of non-interest income for Tunisian banks. Second, we study the impact of non-interest income on ban...

Authors: Helmi Hamdi, Abdelaziz Hakimi and Khemais Zaghdoudi

Determinants of loan repayment among agricultural microcredit finance group members in Delta state, Nigeria

This study examined the determinants of loan repayment among microcredit finance group members in Delta State, Nigeria.

Authors: Solomon Enimu, Emmanuel O. Eyo and Eucharia A. Ajah

Derived signals for S & P CNX nifty index futures

The financial futures market in India is relatively new. The major advantage of derivatives as financial products is that their use minimizes the risks associated with securities. However, hedging effectivenes...

Authors: B. Prasanna Kumar

Financial innovation and economic growth in Bangladesh

This study provides evidence for the financial innovation in the financial system that resulted in the economic growth of Bangladesh from 1980-2016.

Authors: Md. Qamruzzaman and Wei Jianguo

Modeling and forecasting exchange rate volatility in Bangladesh using GARCH models: a comparison based on normal and Student’s t-error distribution

Modeling exchange rate volatility has remained crucially important because of its diverse implications. This study aimed to address the issue of error distribution assumption in modeling and forecasting exchan...

Authors: S. M. Abdullah, Salina Siddiqua, Muhammad Shahadat Hossain Siddiquee and Nazmul Hossain