Articles

Internet big data and capital markets: a literature review

Research in various academic disciplines has undergone tremendous changes in the era of big data. Everyone is talking about big data nowadays, but how exactly is it being applied in research on financial studies?

Authors: Minjian Ye and Guangzhong Li

Interdependence between the stock market and the bond market in one country: evidence from the subprime crisis and the European debt crisis

Once a global financial crisis breaks out, the interdependence between different financial markets suddenly increases and leads to a significant contagion.

Authors: Ke Cheng and Xiaoguang Yang

Baidu index and predictability of Chinese stock returns

A number of studies have investigated the predictability of Chinese stock returns with economic variables. Given the newly emerged dataset from the Internet, this paper investigates whether the Baidu Index can...

Authors: Dehua Shen, Yongjie Zhang, Xiong Xiong and Wei Zhang

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

Bitcoin, the most innovate digital currency as of now, created since 2008, even through experienced its ups and downs, still keeps drawing attentions to all parts of society. It relies on peer-to-peer network,...

Authors: Yechen Zhu, David Dickinson and Jianjun Li

Dynamics of oil price shocks and stock market behavior in Pakistan: evidence from the 2007 financial crisis period

The aim of this study is to investigate the effect of the oil price and its volatility on the stock market of Pakistan before and after the 2007 financial crisis period.

Authors: Khalil Jebran, Shihua Chen, Gohar Saeed and Alam Zeb

Short-term and long-term Interconnectedness of stock returns in Western Europe and the global market

The present study examines the short term dynamics and long term equilibrium relationship among the stock markets of 17 countries in Western Europe as well as the world market, using time series techniques.

Authors: Ajaya Kumar Panda and Swagatika Nanda

A new proof-of-work mechanism for bitcoin

Bitcoin system, when more than 51% computing power is controlled by a single node, the block chain can be distorted maliciously. This is called 51% attack which is a well-known potential risk that could destro...

Authors: Ning Shi

Borrower’s default and self-disclosure of social media information in P2P lending

We examine the signaling effect of borrowers’ social media behavior, especially self-disclosure behavior, on the default probability of money borrowers on a peer-to-peer (P2P) lending site.

Authors: Ruyi Ge, Juan Feng and Bin Gu

Analysis and outlook of applications of blockchain technology to equity crowdfunding in China

Equity crowdfunding via the Internet is a new channel of raising money for startups. It features low barriers to entry, low cost, and high speed, and thus encourages innovation. In recent years, equity crowdfu...

Authors: Huasheng Zhu and Zach Zhizhong Zhou

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

Blockchain has become a new frontier of venture capitals that has attracted the attention of banks, governments, and other business corporations. The recent blockchain related attempts included legal blockchai...

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

Understanding cashless payments in India

This paper analyzes India’s gradual transition towards a cashless economy.

Authors: Bappaditya Mukhopadhyay

Blockchain-based sharing services: What blockchain technology can contribute to smart cities

The notion of smart city has grown popular over the past few years. It embraces several dimensions depending on the meaning of the word “smart” and benefits from innovative applications of new kinds of informa...

Authors: Jianjun Sun, Jiaqi Yan and Kem Z. K. Zhang

Are blockchains immune to all malicious attacks?

In recent years, blockchain technology has attracted considerable attention. It records cryptographic transactions in a public ledger that is difficult to alter and compromise because of the distributed consen...

Authors: Jennifer J. Xu

Blockchain application and outlook in the banking industry

Blockchain technology is a core, underlying technology with promising application prospects in the banking industry. On one hand, the banking industry in China is facing the impact of interest rate liberalizat...

Authors: Ye Guo and Chen Liang

Editor’s introduction

Authors: Gang Kou

Loan growth and bank solvency: evidence from the Pakistani banking sector

The dramatic loan growth and changes in the Pakistani banking system in mid-2000s have led to significant research attention on borrowers and lenders. This expansion and diversification in financial sector was...

Authors: Muhammad Kashif, Syed Faizan Iftikhar and Khurram Iftikhar

Early exercise premium method for pricing American options under the J-model

This study develops a new model called J-am for pricing American options and for determining the related early exercise boundary (EEB). This model is based on a closed-form solution J-formula for pricing European...

Authors: Yacin Jerbi

Fraud detections for online businesses: a perspective from blockchain technology

The reputation system has been designed as an effective mechanism to reduce risks associated with online shopping for customers. However, it is vulnerable to rating fraud. Some raters may inject unfairly high ...

Authors: Yuanfeng Cai and Dan Zhu

Pure and hybrid crowds in crowdfunding markets

Crowdfunding has risen rapidly as a way of raising funds to support projects such as art projects, charity projects, and new ventures. It is very important to understand how crowds in the crowdfunding market a...

Authors: Liang Chen, Zihong Huang and De Liu

Consumer use intention of online financial products: the Yuebao example

Drawing on a valence framework and innovation diffusion theory, this study examines Yuebao deployment to model consumers’ intention to use financial products offered online. We collect data via an online surve...

Authors: Huosong Xia and Zhe Hou

Team rivalry and lending on crowdfunding platforms: an empirical analysis

Prosocial crowdfunding helps the underprivileged obtain non-profit seeking loans from multitudinous lenders. Some platforms introduce team competition to motivate member participation and may thus induce team ...

Authors: Ling Ge and Xuechen Luo

The FinTech phenomenon: antecedents of financial innovation perceived by the popular press

The financial industry has been strongly influenced by digitalization in the past few years reflected by the emergence of “FinTech,” which represents the marriage of “finance” and “information technology.” Fin...

Authors: Liudmila Zavolokina, Mateusz Dolata and Gerhard Schwabe

FinTech in Taiwan: a case study of a Bank’s strategic planning for an investment in a FinTech company

Since 2015 is the year of FinTech in Taiwan, it is worth investigating the challenges that emerged when banks were encouraged to invest in FinTech companies for collaboration. This study aims to identify the s...

Authors: Jui-Long Hung and Binjie Luo

Performance and capital structure of IPOs in Pakistan from 2000 to 2015

When a privately owned firm or privatized government entity raises capital by selling its stocks for the first time to general public, is known as initial public offering (IPO). The underpricing phenomenon and...

Authors: Attiya Yasmin Javid and Henna Malik

Determinants of private sector credit in Uganda: the role of mobile money

Mobile money services have been associated with unprecedented access to financial services, notably to under-banked and unbanked populations. Thus, mobile money opens a channel through which to examine the sup...

Authors: Dorothy Nampewo, Grace Ainomugisha Tinyinondi, Duncan Roy Kawooya and George Wilson Ssonko

A maturity model for blockchain adoption

The rapid development of the blockchain technology and its various applications has rendered it important to understand the guidelines for adopting it.

Authors: Huaiqing Wang, Kun Chen and Dongming Xu

Franchise ownership redirection: real options perspective

For over 40 years, the franchise ownership redirection hypothesis has attracted the attention of many scholars. This study, differing from previous ones, proposes an alternative approach for this hypothesis us...

Authors: Lukito Adi Nugroho

Developing a prediction model for customer churn from electronic banking services using data mining

Given the importance of customers as the most valuable assets of organizations, customer retention seems to be an essential, basic requirement for any organization. Banks are no exception to this rule. The com...

Authors: Abbas Keramati, Hajar Ghaneei and Seyed Mohammad Mirmohammadi

Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies

Saving and investment are two of the most important tools for economic growth. The interest rate has always been considered an important determinant of saving and investment. However, according to Islamic teac...

Authors: Saba Mushtaq and Danish Ahmed Siddiqui

A group consensus model for evaluating real estate investment alternatives

Individual decision-making largely influences the effectiveness of decisions and benefits of investments. Methods: In this article, a consensus model for group decision-making (GDM), based on the analytic hier...

Authors: Wenshuai Wu and Gang Kou

Causality between bank’s major activities and economic growth: evidences from Pakistan

Banking is an important sector of Pakistan’s economy. It is general consideration that bank’s major activities saving and lending have positive impact on economic growth. So the aim of this study is to investi...

Authors: Saba Mushtaq

Re-estimation and comparisons of alternative accounting based bankruptcy prediction models for Indian companies

The suitability and performance of the bankruptcy prediction models is an empirical question. The aim of this paper is to develop a bankruptcy prediction model for Indian manufacturing companies on a sample of...

Authors: Bhanu Pratap Singh and Alok Kumar Mishra

Editor’s introduction

Authors: Gang Kou

Cashless payment and economic growth

This study examines the effect of adopting cashless payment in five European Union (EU) countries, namely, Austria, Belgium, France, Germany, and Portugal, for the period of 2000-2012.

Authors: Hock-Han Tee and Hway-Boon Ong

Dynamics of volatility spillover between stock market and foreign exchange market: evidence from Asian Countries

The purpose of this study is to examine volatility spillover effects between stock market and foreign exchange market in selected Asian countries; Pakistan, India, Sri Lanka, China, Hong Kong and Japan. This s...

Authors: Khalil Jebran and Amjad Iqbal

Government-incentivized crowdfunding for one-belt, one-road enterprises: design and research issues

Local, state, and federal governments have started exploring the potential of crowdfunding in transforming conventional financing methods used previously to fund public projects and services. While crowdfundin...

Authors: Chang Heon Lee, J. Leon Zhao and Ghazwan Hassna

Complex derivatives valuation: applying the Least-Squares Monte Carlo Simulation Method with several polynomial basis

This article investigates the Least-Squares Monte Carlo Method by using different polynomial basis in American Asian Options pricing. The standard approach in the option pricing literature is to choose the bas...

Authors: Ursula Silveira Monteiro de Lima and Carlos Patricio Samanez

How signaling and search costs affect information asymmetry in P2P lending: the economics of big data

In the past decade, online Peer-to-Peer (P2P) lending platforms have transformed the lending industry, which has been historically dominated by commercial banks. Information technology breakthroughs such as bi...

Authors: Jiaqi Yan, Wayne Yu and J. Leon Zhao

Editor’s Introduction

Authors: Gang Kou

Value of big data to finance: observations on an internet credit Service Company in China

his paper presents a case study on 100Credit, an Internet credit service provider in China. 100Credit began as an IT company specializing in e-commerce recommendation before getting into the credit rating busi...

Authors: Shaofeng Zhang, Wei Xiong, Wancheng Ni and Xin Li

Determining pledged loan-to-value ratio: an option pricing perspective

We investigated the determination of the pledged loan-to-value ratio in an optionpricing environment and mainly articulated the theoretical framework and analytical method.

Authors: Ran Zhang, Jing Zhang and Shuang Xu

Performance of Islamic and conventional stock indices: empirical evidence from an emerging economy

This study aims to investigate the extent to which the conditional volatilities of both Shari’ah compliant stock and conventional stock are related to those of interest rate and exchange rate in the emerging e...

Authors: Md Ejaz Rana and Waheed Akhter

A credit risk assessment model based on SVM for small and medium enterprises in supply chain finance

Supply chain finance (SCF) is a series of financial solutions provided by financial institutions to suppliers and customers facing demands on their working capital. As a systematic arrangement, SCF utilizes th...

Authors: Lang Zhang, Haiqing Hu and Dan Zhang

Cash holdings, corporate governance, and acquirer returns

The wealth effect of limiting shareholder rights via anti-takeover provisions(ATPs) is a contentious issue. By taking the differential effect hypothesis perspective, our study aims to provide additional eviden...

Authors: Seoungpil Ahn and Jaiho Chung

Invigorating foreign aid administration: remittances’ strategy, pro-poor and gender focus

The pitfall of top-down approach to development is identified as a major cause of aid inefficiency. The approach is fraught with corruption and unethical practices that have bedeviled aid administration. Meanw...

Authors: Adebayo Adedokun

Heterogeneous expectations, IPO Underpricing and issuing mechanism

Compared with the fixed-price mechanism, the bookbuilding mechanism has not changed the Chinese IPO high underpricing. How to develop scientific and reasonable IPO pricing, and reduce the high IPO underpricing...

Authors: Xiao-cheng Zhang, Miaomiao Zhang, Shao-an Huang and Yongsheng Zhou

The information content of financial survey response data

Market data for financial studies typically derives from either historical transactions or contemporaneous surveys of sentiment and perceptions. The research communities analyzing data from these opposing cate...

Authors: J Christopher Westland

Volatility spillover effect between financial markets: evidence since the reform of the RMB exchange rate mechanism

The volatility spillover effect between the foreign exchange and stock markets has been a major issue in economic and financial studies. In this paper, GC-MSV model was used to study the spillover effect betwe...

Authors: Zhengde Xiong and Lijun Han

Exploring the critical factors influencing online lending intentions

Online lending (P2P lending) is a type of internet finance mainly used to meet the financial needs of small and medium-sized enterprises and groups of individuals. It is a supplement to the traditional financi...

Authors: Peng Wang, Haichao Zheng, Dongyu Chen and Liangchao Ding

Editor’s introduction

Authors: Gang Kou