rss_2.0Economics and Business Review FeedSciendo RSS Feed for Economics and Business Review and Business Review Feed Search intensity and stock returns in frontier markets: Evidence from the Vietnamese market<abstract><title style='display:none'>Abstract</title> <p>The study investigates the impact of investor attention on stock trading by modeling the relationship between Google Search intensity and stock return with stocks listed in frontier markets in Vietnam from October 2016 to October 2021. The study has three findings. First, the study confirms the price pressure hypothesis and attention theory that Google Search intensity positively affects stock returns. Second, this study indicates that the impact of Google Search intensity on stock price is short-term. The positive effect is within the week of searching and reverses the following week, although the reverse force is not strong. Third, the relationship is more robust during COVID-19 than in the pre-pandemic period, suggesting that after a shock, more new individual investors enter the market, the impact of GSVI on stock return is more substantial.</p> </abstract>ARTICLEtrue introduction bank communication in unconventional times: Some evidence from a textual analysis of the National Bank of Poland communication during the COVID-crisis<abstract><title style='display:none'>Abstract</title> <p>The article analyses the communication of the National Bank of Poland (NBP) one year after the announcement of the crisis response package adopted after the outbreak of the COVID pandemic. It presents the perspective of a central bank that first entered unconventional monetary ground during the COVID-crisis. The analysis aims to answer the question of what message about monetary policy objectives may have been conveyed in communication with regard to possible interpretations of the response actions by economic agents. Misinterpretations of policy actions at the time, fuelled by the increased attention to inflation, could later contribute to higher inflation persistence. The article presents findings based on the innovative use of MAXQDA Pro 2022 solutions for textual analysis of central bank’s communication. It points to three inconsistencies in the NBP’s communication that could potentially lead to misinterpretation of the NBP’s policy actions in response to the crisis and thus affect the formation of expectations.</p> </abstract>ARTICLEtrue implications of behavioral finance for international monetary analysis<abstract><title style='display:none'>Abstract</title> <p>This paper discusses some of the important insights from behavioral finance for international monetary and financial analysis. A broad approach to behavioral finance is advocated which includes analysis of the effects of uncertainty, perverse incentives, and complexity economics as well as the cognitive biases focused on in the initial contributions to behavioral finance. It offers reasons why capital mobility is often not perfect and expectations are sometimes not rational. Correctly interpreted it is not a wholesale attack on efficient market theory but rather argues that markets can behave differently at different times, being efficient sometimes and subject to destabilize or insufficiently stabilizing speculation at others and focuses on the conditions that make different types of behavior more likely. It helps provide insights into issues such as currency crisis, the effects of official intervention in foreign exchange markets, the international monetary trilemma, capital flow surges and reversals, the discipline effects of fixed exchange rates and international financial markets and why uncovered interest rate parity often does not hold.</p> </abstract>ARTICLEtrue of consumer adoption of biometric technologies in mobile financial applications<abstract><title style='display:none'>Abstract</title> <p>This study aims to identify what determines the use of biometric technologies in the financial applications of banks and FinTechs. The analysis uses data from a survey of 1,000 adult Polish residents. The estimated logit model indicates that the probability of using biometric solutions decreases with age and increases with the level of education and technological sophistication related to personal innovativeness, experience with biometric technology and the use of digital technology in both financial and non-financial areas. The work identifies the COVID-19 pandemic as a factor accelerating the adoption of biometric solutions and fostering awareness of the threat of digital technologies invading respondents’ privacy. The study demonstrates the positive impact of trust that phone manufacturers use to ensure the security of stored funds and data processing on the acceptance of biometric solutions in financial services. This relationship underpins the recommendation to financial institutions in the field of promoting biometric technologies.</p> </abstract>ARTICLEtrue entrepreneurship: A golden opportunity for ageing society<abstract><title style='display:none'>Abstract</title> <p>This paper aims to discuss the notion of silver entrepreneurship in the context of the silver economy. Policy-wise knowing who silver entrepreneurs are and what it takes to support them is an essential step to productively managing the ageing population and promoting an age-ready but age-friendly approach to creating a sustainable economy and society in the new demographic reality. The paper provides a theoretical and empirical literature review of silver entrepreneurship to identify the current state of the art. It also identifies selected policies and strategies aiming to foster silver entrepreneurship, representing a more inclusive and age-diverse entrepreneurial landscape. The silver entrepreneurship proves to be a challenging research field due to the elusive nature of entrepreneurship itself and the lack of universal definitions for this phenomenon.</p> </abstract>ARTICLEtrue governance and risk management: An evaluation of board responsibilities in western and Islamic banks<abstract><title style='display:none'>Abstract</title> <p>This research aims to explore the role of the board in corporate governance (CG) and risk management within the context of Islamic banking. Given the global reach of financial institutions, it is important to compare and evaluate the unique position of Shari’ah committees or Shari’ah Supervisory Board (SSB) in addressing the unique risks of Islamic banks. Using a comparative analysis, this study evaluated risk management guidelines in the CG codes of the United Kingdom, Germany, Saudi Arabia, and Malaysia. It found that board were ultimately responsible for risk management, regardless of the governance structure, and Shari’ah-related risks fell under the board’s purview. An innovative blend of Western CG frameworks and Islamic principles enhanced governance robustness through the strategic collaboration between board and SSBs.</p> </abstract>ARTICLEtrue asset-backing risk of stablecoin trading: The case of Tether<abstract><title style='display:none'>Abstract</title> <p>This article aims to analyse the asset-backing risk of stablecoins, focusing on international accounting standards, classification criteria, and auditing standards and using Tether as a case study. It examines Tether’s issuance, backing, controls, ratios, and regulations to assess risk transmission and mitigation. The results suggest a need for unified and strengthened accounting and auditing standards to enhance user confidence. Liquidity, solvency, and debt ratios were applied to Tether’s balance sheets; while Tether has made efforts to increase its transparency, and although it possesses highly liquid assets, challenges remain regarding its liquidity, solvency, and debt. An independent auditors’ valuation is crucial for investor confidence, demonstrating that more specific regulations are required for stablecoins. Future research should explore other stablecoins to comprehensively understand the accounting and auditing challenges in the field.</p> </abstract>ARTICLEtrue the long-term asymmetric relationship between energy consumption and CO emissions: Evidence from the Visegrad Group countries<abstract><title style='display:none'>Abstract</title> <p>This study investigates the impact of renewable (REW) and non-renewable (NREW) energy usage, along with economic growth (GDP), on carbon dioxide (CO<sub>2</sub>) emissions in the Visegrad countries, which rely heavily on traditional energy sources. Using data from 1991 to 2021, the analysis employs a panel asymmetric regression with Driscoll-Kraay and FGLS standard errors. The latent cointegration test reveals long-term relationships with asymmetry among the variables. Real GDP fluctuations exhibit a negative impact on CO<sub>2</sub> emissions for both positive and negative shocks. A reduction in conventional energy source consumption leads to a greater CO<sub>2</sub> emission reduction, confirming asymmetry. Conversely, an increase in consumption positively impacts CO<sub>2</sub> reduction. However, non-conventional energy sources show no asymmetries. The OLS-based model proposed by Driscoll-Kraay showed reduced standard errors, but lower significance in the estimated parameters compared to the FGLS model. The findings recommend a sustainable energy transition for Visegrad countries by eliminating traditional sources and promoting renewable resources.</p> </abstract>ARTICLEtrue“Very strong” turnpike effect in a non-stationary Gale economy with investments, multilane turnpike and limit technology<abstract> <title style='display:none'>Abstract</title> <p>This article presents a multiproduct model of a non-stationary Gale-type economy with technology convergent to a certain limit technology, in which changes in the production technology (the dynamics of Gale production spaces) are governed by the size of investments. Thus, this model differs from the vast majority of Gale-type models considered in mathematical economy. With this assumption, the so-called “very strong” version of the multilane production turnpike theorem in the Gale economy with investments is proved. According to the theorem, if the optimal growth process in such an economy reaches the multilane turnpike, it remains on it from then on, with the possible exception of the last period of the economic horizon being analysed.</p> </abstract>ARTICLEtrue of immigrants’ impact on the Slovak economy<abstract> <title style='display:none'>Abstract</title> <p>The migration process is becoming more and more intensive in the European region. Various opinions have been expressed about the effects of immigration on the country’s economy. Most of these opinions reveal a positive impact via fulfilling deficits in the labour market and tax payments. On the other hand, a negative long-term effect on the social security system because of the poor integration of immigrants into the domestic population can be seen as a thread in this discussion. This paper analyses the impact of immigration, based on the United Nations National Transfer Accounts methodology developed by Lee and Mason. This methodology is employed to break down the System of National Accounts with respect to age groups and generations and, in addition, show the economic flows between them. The findings of this paper show that the earnings and consumption behaviour of immigrants and natives in Slovakia differ; immigrants tend to work after retirement age, earn more, and consume less, which results in positive effects on the aggregate life cycle deficit.</p> </abstract>ARTICLEtrue drives the savings rate in middle -income countries?<abstract> <title style='display:none'>Abstract</title> <p>The aim of this study is to examine the factors that influence the savings rate in middle-income countries and to compare the results with other studies devoted to different subgroups of countries. Among the potential determinants of savings the study considers: demography, income level, financial sector, international trade, inflation and the structure of the economy. The research sample is confined to 44 middle-income countries and covers the period between 2000 and 2019. Six model specifications are constructed using three different estimators: FE, FGLS and PCSE. In the next step, the same models are estimated using alternative dependent variables. Results suggest that industrial share in GDP has a positive impact on the savings rate. On the other hand, a negative relationship was diagnosed between the savings and unemployment rates, the share of labour compensation in GDP, military expenditure, inflation and the young dependency ratio.</p> </abstract>ARTICLEtrue introduction causal and nonlinear relationship between trade credit policy and firm value: Evidence from an emerging market<abstract> <title style='display:none'>Abstract</title> <p>This study examines whether there is a causal and nonlinear relationship between trade credit policy and firm value. In line with this purpose, the 2005Q1–2018Q4 period data is examined for 103 companies operating in the manufacturing industry in an emerging market, Borsa Istanbul, and the relationships revealed. The nonlinear relationship between trade credit and firm value has been proved with the two -step System GMM (Generalized Moment of Methods) and causality with Dumitrescu-Hurlin (2012) heterogeneous panel causality tests. According to the findings, a nonlinear (inverted U-shaped) relationship has been found between trade credit policy and firm value. Moreover, the values of firms that have moved away from optimum trade credit levels are also negatively affected. One of the original aspects of this study is that the bidirectional causal relationship between trade credit policy and firm value has been revealed.</p> </abstract>ARTICLEtrue aggression against Ukraine and the changes in European Union countries’ macroeconomic situation: Do energy intensity and energy dependence matter?<abstract> <title style='display:none'>Abstract</title> <p>The study aims to assess whether there are significant differences among EU member states regarding the Russo-Ukrainian-conflict-driven changes in macroeconomic indicators and whether these differences are linked to the country’s energy vulnerability. Applying <italic>k</italic>-means clustering, three country groups are distinguished, similar with regard to their energy intensity, energy dependence (including dependence on Russian gas), and household budgets’ exposure to energy prices. Based on the Kruskal-Wallis and Wilcoxon pairwise comparison tests, the study reveals statistically significant differences among the distinguished country clusters in the level of inflation and interest rates at the time of this conflict as well as differences in the 2022 forecasts’ changes for GDP, inflation, budget balance and unemployment. The results indicate that EU economies characterised by the most significant energy vulnerability economically suffer the most in the aftermath of the Russian invasion of Ukraine.</p> </abstract>ARTICLEtrue value investing based on scoring models effective? The verification of Score-based strategy in the Polish stock market<abstract> <title style='display:none'>Abstract</title> <p>The aim of the paper is to analyse the effectiveness of <italic>F-</italic>Score-like models using the example of the Polish stock market. <italic>F-</italic>Score is a scoring model based on a high B/M investing strategy, which uses fundamental signals to assess the economic condition of an entity. So far, its effectiveness has been generally proven in numerous stock markets worldwide. However, no comprehensive study focusing on the Polish market has been conducted. Therefore, <italic>F-</italic>Score and similar models (<italic>FS-</italic>Score and PiotroskiTrfm) were analysed in this regard. It was shown that companies with higher scores generated positive both raw and market-adjusted returns on average. However, they were lower than the mean returns of low-score companies (for <italic>FS-</italic>Score) or total high B/M portfolio (regarding <italic>F-</italic>Score and PiotroskiTrfm). The results of the study show that <italic>F-</italic>Score, <italic>FS-</italic>Score and PiotroskiTrfm are generally effective investing tools. However, it might be more advisable for value investors to choose a total high B/M portfolio instead of shares of high-score entities according to <italic>F-</italic>Score or PiotroskiTrfm.</p> </abstract>ARTICLEtrue herding—whether, why, and when? Two new tests for herding detection in target forecast prices<abstract> <title style='display:none'>Abstract</title> <p>This study proposes two novel tests for security analyst herding based on binomial correlation and forecast error volatility scaling, and applies it to investigate herding patterns in analyst target prices in 2008–2020 in the UK. Analysts robustly herd in their valuations, with results consistent across years, sectors, in terms of panel fixed effect, quantile, instrumental variable regressions, and when controlled for optimism and conservatism. Herding becomes prominent for stocks followed by at least five analysts and towards the long sides of Fama-French sorts, reinforcing its non-spurious and behavioral nature.</p> </abstract>ARTICLEtrue firm size improve firm growth? Empirical evidence from an emerging economy<abstract> <title style='display:none'>Abstract</title> <p>This study aims to examine the relationship between firm size and firm growth in Vietnam. The literature does not in general give support to Gibrat’s law stating that the expected increase in firm size is proportionate to its initial size, or that firm growth rates are independent of firm size. The present study relies on a sample of 578 listed Vietnamese companies representing eight different industries and covering the period 2010 to 2020. The analysis reveals that growth in firm revenues does not give support to a hypothesis of independence of initial firm sizes. When the firm size is measured by total assets the opposite result appears, i.e. the Gibrat’s law is not rejected. When including also the age of the firms in the test methodology the conclusion will be that firm growth—measured by revenue or assets—in all cases will decrease with firm size.</p> </abstract>ARTICLEtrue security of Ukraine: National and global level<abstract> <title style='display:none'>Abstract</title> <p>The aim of this paper is to examine the level of food security in Ukraine in comparison to global regions and European countries in the context of the COVID-19 pandemic and the Russian-Ukrainian war. For this purpose, a variety of indicators were examined including population dynamics, food balance, FAO indicators, and the Global Food Security Index. The results show that in spite of its agricultural potential Ukraine is behind the global and European indicators of food security with the exception of fish products. Barriers to achieving high levels of food security include incomplete legislative reforms, inadequate funding, infrastructure deficiencies, corruption and non-compliance with standards. International cooperation and improved national and regional strategies are needed to overcome the consequences of the war.</p> </abstract>ARTICLEtrue, fiscal deficit and sustainability of public debt in an endogenous growth model<abstract> <title style='display:none'>Abstract</title> <p>This aim of this study is to construct a model which overlaps generations to clear the effects of fiscal deficit on fertility. The relationship between fiscal deficit and fertility is revealed and the mechanism of fiscal deficit and its effect in reducing fertility is clarified. Empirical evidence shows that an increase in debt-GDP ratio decreases fertility. The model indicates that fiscal deficit has positive and negative effects on fertility through the change of the income tax rate. Numerical simulation shows that an increase in fiscal deficit reduces fertility. Therefore, this result is consistent with the empirical evidence. In addition, this study demonstrates that a steady state would not exist if the child allowance for child-rearing costs exceeds the critical level. This result indicated that an expansion of the child allowance aimed as a countermeasure to the falling birthrate can make the sustainability of public debt unstable. Thus, countermeasures should be formulated to address the falling birthrate depending on the fiscal situation.</p> </abstract>ARTICLEtrue