International Journal of Finance & Economics最新文献

{"title":"Asset Class Selection and Financial Performance of Registered Umbrella Retirement Benefits Schemes in Kenya","authors":"Joan Wanjiku Kibata, Agnes Wanjiru Njeru","doi":"10.47941/ijf.1485","DOIUrl":"https://doi.org/10.47941/ijf.1485","url":null,"abstract":"Purpose: The financial performance of pension funds has deteriorated over time, threatening their main purpose of shielding retirees from old age poverty. Asset class selection is an essential component of pension management as it outlines the various investments undertaken to give a return, manage risks and maintain the liquidity of the retirement schemes. Uninformed or inappropriate selection of assets may lead to decreased performance of the pension schemes and a consequential decrease in the fund value of the pension savings. This study aimed to ascertain how asset class choice affects the financial performance of Kenyan registered Umbrella Retirement Benefits Schemes (URBS). The main goals of this study were to determine how allocating equity, fixed income, and alternative investments impacts the financial performance of registered URBS in Kenya. Three main research questions were employed in the study.
 Methodology: This research targeted thirty-two (32) registered Umbrella Retirement Benefits Schemes as of December 2022. The sampling technique in this study was a complete census because the data was available; the researcher sought to reduce errors and give an overall view of the asset allocation and how the Kenyan Umbrella Schemes performed over the five years. The study utilised secondary data which was obtained from the RBA’s website and offices for the five-year period between 2018 and 2022. A quantitative approach using descriptive and inferential analysis was employed. A multiple linear regression model was fitted on the data using SPSS version 27 and STATA version 14.2 for panel data analysis. Tables, charts, and graphs were also used to display the data.
 Findings: According to the multiple linear regression model's findings, alternative investments highly influenced the financial performance of the URBS, followed by fixed income and equity investments. Real estate contributed the highest returns in alternative investments, followed by offshore investments. For fixed income, treasury bonds and bills contributed the most considerable returns, followed by cash, bank deposits, and corporate and commercial bonds. For the equity investments, quoted equity contributed the most returns, followed by the unquoted equity. It was noted that the allocation of private equity by umbrella schemes was almost non-existent as it only began in 2022. Panel data analysis showed that all the weighted returns of the three asset classes are significant predictors of total weighted return. Weighted returns of offshore investment and property had the most significant associations with total weighted returns among all semi-variables.
 Unique Contribution to Theory, Policy and Practice: The results support increased weighting of alternative investments, particularly offshore investments, followed by fixed-income investments.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134907995","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic policy uncertainty and access to finance: An international evidence","authors":"Mohammed Benlemlih,&nbsp;Çiğdem Vural Yavaş,&nbsp;Cynthia Assaf","doi":"10.1002/ijfe.2898","DOIUrl":"10.1002/ijfe.2898","url":null,"abstract":"<p>In this study, we provide the first attempt to relate economic policy uncertainty (EPU) to firms' access to finance. Using data from 26 countries and the news-based index from Baker et al. (2016), we provide evidence that EPU significantly increases financial constraints and decreases firms' access to finance. Our main inference is robust to alternative measures of financial constraints, alternative samples, alternative model specifications, and several approaches that control for potential endogeneity. We further show that the EPU-financial constraint relationship is driven by both the demand and supply sides of financing. Additional analyses suggest that the impact of EPU on firms' financial constraints is moderated by board characteristics (i.e., gender diversity, independence, and duality). They also highlight the moderating roles of government effectiveness, the rule of law and control of corruption. Collectively, our findings provide novel theoretical and practical contributions in relation to EPU and the firms' setting.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2023-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136381764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Revisiting corporate governance and financial risk-taking","authors":"Noora Alzayed,&nbsp;Rasol Eskandari,&nbsp;Arman Eshraghi,&nbsp;Hassan Yazdifar","doi":"10.1002/ijfe.2896","DOIUrl":"10.1002/ijfe.2896","url":null,"abstract":"<p>Corporate governance attributes have varying effects on risk taking when variables are examined separately. We study the effects of a large range of corporate governance attributes on risk taking using a comprehensive US sample. Our findings confirm that although there are certain characteristics that drive this positive effect such as compensation structure, there are those which have the opposite effect such as board-level attributes. Our paper contributes to the broader literature on the relationship between corporate governance and risk in financial institutions, which are often overlooked in traditional studies. We shed light on the importance of studying corporate governance at a granular level rather than using a single index. The findings offer insights to regulators in determining suitable corporate governance frameworks to ensure the protection of investors rights in financial institutions.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2023-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2896","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135266370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Life insurance consumption across generations: The roles of financial knowledge, planning horizon, and self-control","authors":"Lucía Rey-Ares,&nbsp;Sara Fernández-López,&nbsp;Sandra Castro-González","doi":"10.1002/ijfe.2903","DOIUrl":"10.1002/ijfe.2903","url":null,"abstract":"<p>Life insurance enhances households' capacity to absorb financial shocks and protects against personal risks that no one likes to contemplate. This is even more important in times of economic hardship such as now, when many Europe countries and particularly Spain are going through difficult times due to rising inflation, the war in Ukraine, and the ongoing COVID-19 pandemic. Although previous studies have analysed the driving forces of life insurance demand, the influence of the individual's financial planning horizon, financial knowledge, and financial self-control have been underexplored. This study analyses the influence of personal financial attributes on life insurance demand and, in so doing, explores whether the effects of such attitudes differ across different generational cohorts (i.e., the silent generation, baby boomers, Gen Xers, and millennials). The data, taken from the <i>Survey of Financial Competences</i>, comprises 7245 Spanish individuals. Evidence from multivariate analyses reflects the relevance of standard sociodemographic characteristics in explaining individuals' decisions to become life insurance holders. In contrast, evidence does not support a statistically significant relationship in the case of behavioural variables such as financial self-control and the financial planning horizon.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2023-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2903","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135413196","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Carbon emission trading under the wings of black swans and green swans: Evidence from China","authors":"Yunxia Guo,&nbsp;Yujia Li,&nbsp;Haitao Wu,&nbsp;Yu Hao","doi":"10.1002/ijfe.2904","DOIUrl":"10.1002/ijfe.2904","url":null,"abstract":"<p>In response to the potential green swans event in the future, China is adopting market-oriented means to encourage green development, specifically through carbon emission trading schemes. At the same time, under the outbreak of the current global pandemic, it is equally important to consider the impact of black swan events. Therefore, this study aims to analyse the fluctuations in carbon emission trading prices under green and black swan events by utilizing daily data from seven carbon emission exchanges in China from 2017 to 2020. The analysis includes the construction of multiple regression models, PVAR models, and panel threshold models. Additionally, the study addresses the endogeneity problem by using instrumental variables. The findings of the study indicate that: (1) Rising temperatures will drive up the carbon emissions trading price, and this impact will persist over time. On the other hand, increased humidity levels and sunshine hours will reduce the carbon emissions trading price. Furthermore, there is a positive correlation between the increase in the price of primary energy and the increase in the carbon emissions trading price. (2) The spread of COVID-19 has a restraining effect on the increase in temperature and will have a long-term negative impact on the carbon emissions trading price. (3) The threshold effect concerning the prevalence of pandemics is recognized, which implies that the impact of the epidemic is staged and nonlinear. Overall, the results of this article highlight the importance of a reasonable response to both black swan and green swan events in order to enhance the efficiency of the current emission trading scheme.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2023-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135366250","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Profit Forecast Accuracy of Time Series Model - A Case Study of Associated British Foods","authors":"None Yunfan Sun","doi":"10.61173/czn50w46","DOIUrl":"https://doi.org/10.61173/czn50w46","url":null,"abstract":"Accurate earnings per share (EPS) forecasting is crucial for financial decision-making. This study explores the potential of improving EPS forecasting accuracy by integrating economic lead indicators into time-series models. By incorporating macroeconomic factors like GDP growth and interest rates, the models capture the influence of the broader economic environment on a company’s financial performance. Results demonstrate that including economic lead indicators significantly enhances EPS predictability beyond traditional time-series models. This integration offers a forward-looking perspective, comprehensive analysis, and context to the forecasting process, enabling stakeholders to make more informed investment decisions and develop better strategies. Further research can investigate additional lead indicators, assess their impact in different industries, and develop hybrid forecasting models for refined EPS predictions.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135512412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Intelligent Analysis Methods and Methodology of Banking Regulation Rules - Real Issues and Improvements in the Implementation by Commercial Banks","authors":"None Haoyang An","doi":"10.61173/prxshr72","DOIUrl":"https://doi.org/10.61173/prxshr72","url":null,"abstract":"Banking regulation rules serve as the institutional basis for promoting commercial banks’ healthy and sustainable development. The linguistic complexity within the regulation discourse system leads to challenges in overall comprehension and execution, as well as disparities in interpretation and enforcement. By introducing intelligent analysis methods, the author conducts comparative analysis and historical research on regulation rules from both cross- sectional and historical development perspectives. This approach maximizes the exploration of regulation essence and the identification of laws of change, thus enhancing the effective implementation of regulation rules in the design of commercial banking systems.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135513264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Kelly Criterion: Optimizing Decision-Making in Risk Management","authors":"None Andrew Chen","doi":"10.61173/6s089240","DOIUrl":"https://doi.org/10.61173/6s089240","url":null,"abstract":"The Kelly capital growth investment criterion, or Kelly criterion, defines the fraction of wealth to invest in a favorable investment opportunity such that the exponential growth rate is maximized. Maximizing the exponential growth rate is equivalent to maximizing logarithmic utility.[1] It all began in the mid-20th century when John L. Kelly Jr., a researcher at Bell Labs, developed the criterion as a solution to a problem related to the efficient transmission of information in telecommunications. Kelly introduced the concept of the Kelly Criterion within his paper “A New Interpretation of Information Rate,” which he published in his early years. However, he did not refer to the Kelly Criterion by its now- known name. The Kelly Criterion initially gained recognition in academic and mathematical circles, primarily for its applications in information theory. Then, professional gamblers and investors started using the Kelly Criterion to manage their bankrolls and make more informed betting decisions. The financial industry also embraced the Kelly Criterion as an alternative approach to portfolio management and investment strategies. The Kelly Criterion gained further attention in investment circles, particularly in hedge funds and wealth management.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135512558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Anchoring effects and applications","authors":"None Helen Guo","doi":"10.61173/htn7ej80","DOIUrl":"https://doi.org/10.61173/htn7ej80","url":null,"abstract":"The anchoring effect has long been a subject that has attracted researchers from a diverse range of fields, including economics, finance, and psychology. This paper describes the background, definition, motivation, and some applications of the anchoring effect. Simultaneously, we pay more attention to the influence on economic research and consumption decisions. In application 1, we focus on the anchoring effect and marketing strategy by analyzing Evian water in Starbucks, the limited purchase of Campbell soup, and the descending price order on the menu. In application 2, we focus on the measurability of the anchoring by calculating the amount of donation under different situations and assessing the house’s value. In application 3, we focus on the link between the anchoring effect and suggestion by analyzing additional questions in two porridge shops. Our studies showed that anchoring affects all aspects of people’s lives. In addition, all our preliminary results illuminate the nature anchoring effect, which significantly influences the research of heuristics.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135512560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Portfolio Optimization and Analysis Using Modern Portfolio Theory","authors":"None Shengrui Ou","doi":"10.61173/7q7mp960","DOIUrl":"https://doi.org/10.61173/7q7mp960","url":null,"abstract":"In investment transactions, such as stocks and commodities, risk is always involved. The link between investment returns and risk factors is often discussed. Many academics have attempted to develop models under any expected rate of return. The primary purpose of this paper is to demonstrate the application of modern portfolio theory in optimizing investment portfolios. The paper mainly analyzes the viewpoint through the use of historical financial data. The study constructs and examines portfolios using the Full Markowitz Model (MM) and the Index Model (IM) through five constraint conditions. By incorporating various constraints, the study aims to understand how regulatory, industry- specific, and client-driven limitations impact portfolio construction and performance.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135513268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}