Articles

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

Insurance market density and economic growth in Eurozone countries: the granger causality approach

This study examines the relationship between insurance market density (IMD) and economic growth.

Authors: Rudra P. Pradhan, Saurav Dash, Rana Pratap Maradana, Manju Jayakumar and Kunal Gaurav

Editor’s Introduction

Authors: Gang Kou

The volatility of returns from commodity futures: evidence from India

This paper examines the pattern of the volatility of the daily return of select commodity futures in India and explores the extent to which the select commodity futures satisfy the Samuelson hypothesis.

Authors: Isita Mukherjee and Bhaskar Goswami

Market efficiency of gold exchange-traded funds in India

Gold exchange-traded funds, since introduction, are primarily aimed at tracking the price of physical gold in the financial market. This, a category of exchange-traded funds, whose units represent physical gol...

Authors: Rupel Nargunam and N. Anuradha

Economic outlook of rice crops in Pakistan: a time series analysis (1970–2015)

The basic objective of this study was to examine the relationship between the rice output, its production area, water availability, and agricultural gross domestic product (GDP) of Pakistan. Annual time series...

Authors: Abdul Rehman, Luan Jingdong, Abbas Ali Chandio, Muhammad Shabbir and Imran Hussain

The transition from traditional banking to mobile internet finance: an organizational innovation perspective - a comparative study of Citibank and ICBC

The development of Financial Technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchain technology have significantly changed the financial industry. FinTe...

Authors: Zhuming Chen, Yushan Li, Yawen Wu and Junjun Luo

At what levels of financial development does information sharing matter?

The purpose of this study is to investigate how an increase in information-sharing bureaus affects financial access.

Authors: Simplice A. Asongu and Jacinta C. Nwachukwu

Financial innovation and its governance: Cases of two major innovations in the financial sector

The power of financial innovations to affect societies on global and intergenerational levels compels us to ask how we can ensure their responsible emergence in society. This requires an understanding of how i...

Authors: Keren Naa Abeka Arthur

Erratum to: Overview of business innovations and research opportunities in blockchain and introduction to the special issue

Authors: J. Leon Zhao, Shaokun Fan and Jiaqi Yan

Introduction to the special issue on Crowdfunding and FinTech

Authors: Yue Ma and De Liu

Erratum to: Analysis on the influence factors of Bitcoin’s price based on VEC model

Authors: Yechen Zhu, David Dickinson and Jianjun Li