International Journal of Finance & Economics最新文献

{"title":"Joint elicitation of elasticity of intertemporal substitution, risk and time preferences","authors":"Luciano de Castro,&nbsp;Antonio F. Galvao,&nbsp;Gabriel Montes-Rojas,&nbsp;Jose Olmo","doi":"10.1002/ijfe.2879","DOIUrl":"10.1002/ijfe.2879","url":null,"abstract":"<p>The elicitation of the elasticity of intertemporal substitution (EIS), discount factor and risk attitude parameters in dynamic models is of central importance to economics, finance and public policy. This paper suggests an alternative method to jointly elicit and estimate these three parameters using experimental data. We employ a new model based on dynamic quantile preferences, where individuals maximize the stream of future <span></span><math>\u0000 <mrow>\u0000 <mi>τ</mi>\u0000 </mrow></math>-quantile utilities, for <span></span><math>\u0000 <mrow>\u0000 <mi>τ</mi>\u0000 <mo>∈</mo>\u0000 <mfenced>\u0000 <mrow>\u0000 <mn>0</mn>\u0000 <mo>,</mo>\u0000 <mn>1</mn>\u0000 </mrow>\u0000 </mfenced>\u0000 </mrow></math>. These preferences are simple, dynamically consistent and monotonic. In the quantile model, the risk attitude is captured by the quantile <span></span><math>\u0000 <mrow>\u0000 <mi>τ</mi>\u0000 </mrow></math> of the payoff distribution, while the EIS and the discount factor are related to the utility function describing individual's intertemporal behaviour, hence allowing for complete separability between risk, EIS and discount factor. The estimation of the parameters of interest uses a structural maximum likelihood method. Individual's risk aversion is estimated below the median. The discount factor is marginally smaller than estimates reported in the literature, and the EIS is slightly larger than one, which suggests that utility over time is concave. The estimates for the elasticity contrast with those reported by the existing studies using observational disaggregated data, which in general find an elasticity smaller than one.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4372-4393"},"PeriodicalIF":2.8,"publicationDate":"2023-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2879","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135369526","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":"Climate policy uncertainty and firm investment","authors":"Tao Huang,&nbsp;Zeyu Sun","doi":"10.1002/ijfe.2881","DOIUrl":"10.1002/ijfe.2881","url":null,"abstract":"<p>This article investigates the relation between climate policy uncertainty and firm investment in China. We quantify climate policy uncertainty in China based on the news from two leading mainland newspapers: the Renmin Daily and the Guangming Daily. Using the sample of Chinese A-share companies from January 2003 to September 2021, we find robust evidence that firms exhibit lower levels of investment when facing to higher climate policy uncertainty. Specifically, we also show that this negative effect is more profound for state-owned enterprises, carbon-intensive enterprises, and enterprises with lower risk taking. The results also give evidence that the effect of climate policy uncertainty on firm investment can last up to three quarters and disappear within 1 year. Finally, we propose that investment irreversibility is plausible channel through which climate policy uncertainty discourages investment. Overall, these results shed light on the real effects of climate policy uncertainty and the determinants of investment.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4358-4371"},"PeriodicalIF":2.8,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130413286","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":"Financing Decisions and Financial Sustainability of Social Service Projects: The Case of the Dominican Region of Rwanda and Burundi","authors":"Bonaventure Kambazi, Esther Nkatha M’ithiria, A. Kiflemariam","doi":"10.47941/ijf.1419","DOIUrl":"https://doi.org/10.47941/ijf.1419","url":null,"abstract":"Purpose: Organizations strive, among other things, to be financially stable for the long haul. Implementing sound fiscal management procedures is one approach to ensure the long-term sustainability of social service programs. The study set out to answer the question, \"How do the financing decisions of the Dominican region of Rwanda and Burundi affect the financial sustainability of social service projects?\" The current study was guided by Resource-Based View theory and Financial sustainability model. \u0000Methodology: Multiple research strategies were employed in this investigation. All eleven social service programs in the Dominican region of Rwanda and Burundi served as the study's primary population. Eleven chief directors, five congregation superiors, thirty financial officers and accountants, and five project coordinators made up the unit of observation. Data was gathered with the help of questionnaires and preplanned interviews. Inferential and descriptive statistics were calculated from the analyzed data. Statistics were utilized to describe the data, including frequency distribution, mean, and percentages. On the other hand, inferential statistics like correlation and regression existed.  The data collected was tallied.  \u0000Findings: Financing decisions were found to have a positive significant association with SSPs' financial sustainability (r=0.550, p=0.004). \u0000Unique contribution to theory, practice and policy: We draw the following conclusions: financing decisions improve SSP sustainability. Among the study's many suggestions: ensuring that stakeholders are kept in the loop from the start of a project until its conclusion.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"64 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89584360","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":"US partisan polarization and households' portfolio decisions","authors":"Nicholas Apergis","doi":"10.1002/ijfe.2880","DOIUrl":"10.1002/ijfe.2880","url":null,"abstract":"<p>This paper uses a panel survey (micro-level) dataset to explore the impact of US partisan polarization on households' portfolio decisions. The results document that households significantly reduce their market investments in risky assets due to stronger partisan polarization conditions. The findings survive certain robustness checks, while they clearly illustrate the rising effect of political uncertainty on such decisions. Such results could carry substantial implications since they suggest that partisan polarization uncertainty acts as a negative externality in this type of portfolio choice decisions.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4339-4357"},"PeriodicalIF":2.8,"publicationDate":"2023-08-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2880","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122333899","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":"Corporate governance, Shari'ah governance and financial flexibility: Evidence from the MENA region","authors":"Abdullah Aljughaiman,&nbsp;Aly Salama,&nbsp;Thanos Verousis","doi":"10.1002/ijfe.2878","DOIUrl":"10.1002/ijfe.2878","url":null,"abstract":"<p>This article investigates the relationship between corporate governance structures and financial flexibility for conventional and Islamic banks in the Middle East and North Africa (MENA) region. We construct a novel financial flexibility index (FFI) for the banking sector and examine the impact of the Shari'ah supervisory board (SSB), board size, and risk governance on financial flexibility. We find that board size and risk governance significantly affect banks' financial flexibility for Islamic and conventional banks. However, Shari'ah governance rules determine how that relationship is manifested in Islamic banks. We show that SSB size and busy SSBs enhance Islamic banks' financial flexibility. Our results show that Western corporate governance structures may lead to suboptimal financial flexibility. Banking policies should re-evaluate the impact of one-size-fits-all approaches to corporate governance while promoting ‘soft policies’ to banking regulation that are value-enhancing for the banking sector.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4319-4338"},"PeriodicalIF":2.8,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2878","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121950541","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":"Bank income smoothing behaviours under expansionary and recessionary economic environments: New evidence using micro-data sample","authors":"Eleftherios Aggelopoulos,&nbsp;Theofanis Papageorgiou,&nbsp;Melpo Iakovidou,&nbsp;Vasilios Giannopoulos","doi":"10.1002/ijfe.2874","DOIUrl":"10.1002/ijfe.2874","url":null,"abstract":"<p>The income smoothing (IS) literature connected with changes in the external environment provides unclear results whether this phenomenon occurs in expansion or in crisis. Given that a substantial amount of credit risk is generated in retail banking, this study exploits a large number of micro-loan portfolio level data of a systemic Greek bank and examines, for the first time, the IS behaviour at the retail banking level, contrasting the expansion period (2006–2008) with the financial crisis period (2009–2011). This specific case study provides more granular data compared with traditional archival studies, thus allowing the immediate and more frequent identification of exogenous (such as crisis effects) and endogenous (such as the geographic origination of loan portfolios) features that may affect IS practices. Based on the association between pre-provision loan income and loans loss provisions as a proxy for IS, we employ the robust Mean Group estimator (Pesaran and Smith, <i>Journal of Econometrics</i>, 1995;68(1):79–113) and find that this association is higher in expansionary periods and declines in recession. Moreover, we conclude that the IS behaviour is affected by geographical features of loan portfolios.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4286-4302"},"PeriodicalIF":2.8,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2874","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133153540","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":"Market forces in healthcare insurance: The impact of healthcare reform on regulated competition revisited","authors":"Jacob A. Bikker,&nbsp;Jack G. J. Bekooij","doi":"10.1002/ijfe.2875","DOIUrl":"10.1002/ijfe.2875","url":null,"abstract":"<p>The Dutch healthcare insurance reform in 2006 replaced the dual system of public and private insurance with a single compulsory health insurance scheme, in which insurance providers compete for customers in a free market. This paper investigates whether competition among healthcare insurers has indeed increased and their efficiency has improved. We measure competition directly from either shifts in market shares, or developments in profits, using Dutch regulatory data. We find that a structural break occurs after the reform: competition is significantly higher after 2006 than before. This holds both for the analysis based on shifts in market shares and that based on profits. Several robustness tests confirm this outcome. Hence, the reform has had a significant impact. Nevertheless, we find that the health insurance sector is still less competitive than financial sectors such as banking and life insurance.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4303-4318"},"PeriodicalIF":2.8,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2875","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135771221","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":"What drives US consumer confidence? The asymmetric effects of economic uncertainty","authors":"Taufiq Choudhry,&nbsp;Mark Wohar","doi":"10.1002/ijfe.2877","DOIUrl":"10.1002/ijfe.2877","url":null,"abstract":"<p>This paper empirically investigates the asymmetric effects of different economic variables including uncertainty caused by government policies on the two main US consumer confidence indices. This paper further investigates whether COVID-19 has any significant effect on the relationship between US consumer confidence indices and their determinants. The empirical investigation is conducted by means of non-linear asymmetric autoregressive distributed lag (NARDL) tests, so that the asymmetric effect of uncertainty and other determinants on consumer confidence may be studied. The paper applies monthly data from January 2010 to December 2021. Results indicate that the COVID-19 pandemic did not alter the stability of the long-term relationship between the consumer confidence indices and their determinants. Uncertainty imposed by government policies plays a significant role before and, more prominently, during the pandemic. The increased effect of the uncertainty may be due to the jump in economic uncertainty during the COVID era. Our work may help to foster consumer confidence in terms of macroeconomic policy variables. The results can also expand the scope of investors' decision making as it provides an in-depth understanding of the drivers of consumers' confidence in the US economy.</p>","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"29 4","pages":"4268-4285"},"PeriodicalIF":2.8,"publicationDate":"2023-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124315813","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":"Capital Structure and Financial Performance of Micro-Finance Institutions in Kenya","authors":"Irene Atsiech Kwena, Thomas Githui, Allan S. N. Kihara","doi":"10.47941/ijf.1408","DOIUrl":"https://doi.org/10.47941/ijf.1408","url":null,"abstract":"Purpose: This research was envisioned to assess the influence of the capital structure on ROE of Micro-financial institutions in Kenya. The research was in search for resolving the following problem; is there a connection between the composition of capital (loan, shareholder’s equity, retained earnings and deposits) and the viability of MFIs? If the firm size has an influence on ROE? The study was motivated by the following capital structure theories, which are the theory of pecking order, Trade-off theory and the theory of Marketing timing. \u0000Methodology: To define the independent variable, the researcher used a correlation research design. The target demographic of the research was all 14 successful microfinance companies as recognized by the Kenya Microfinance Act as of 2020. The research therefore represented a census survey with a period of 5 years (from 2016-2020). The study's research model consisted of the independent variable loans, shareholder’s equity, retained earnings and deposits and the size of the firm as a moderating variable, determined by the firm’s total asset value, and the following ratios as dependent variables: return on equity. To analyze the results, EViews was used. There was descriptive and inferential statistics execution. Diagnostic results were computed before the data analysis. \u0000Findings: The results were presented in the form of tables. The inferential statistics with the moderating variable revealed that loan financing has statistical negligible sway on the financial return of MFIs (p=0.9832>0.05). Shareholders equity financing was found to have a statistically significant influence on financial performance of MFIs (p=0.0047<0.05). Retained earnings financing was found to have a statistically significant influence on financial performance of MFIs (p=0.0016<0.05). Deposit financing was found to have a statistically insignificant influence on financial performance of MFIs (p=0.2168>0.05).in this study. \u0000Unique contribution to theory, practice and policy: The study suggested that MFIs should strike a balance benefits and costs of debt arising thereof in line with the Trade-off theory, fast growing MFIs to utilize more retained earnings in capital structure, more profitable businesses use less shareholder’s equity in capital structure mix and finally positive correlation on deposits indicating similar correlation is likely to exist with financing capital structure. Thus MFIs may consider reviewing these measures so as to enhance performance to serve the low-income earners better in improving the economy. Further studies can be done based on other performance measures like ROA, EPS,Net Interest Margin. The study used a correlation research design for five-year period from 2016 to 2020. Therefore, this study can be replicated using a different methodology and covering a longer period like ten year.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"18 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78882044","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 Role of Cryptocurrencies in Shaping the Future of Mobile Money Services in Lusaka, Zambia.","authors":"Andrew Mweemba Nyika","doi":"10.47941/ijf.1400","DOIUrl":"https://doi.org/10.47941/ijf.1400","url":null,"abstract":"Purpose: This research provides a comprehensive exploration of the intersection between cryptocurrencies and mobile money services, particularly in the Zambian context. The study illuminates both the potential and the challenges of integrating cryptocurrencies with mobile money services, providing a novel contribution to the existing body of knowledge. \u0000Methodology: Utilizing descriptive and inferential statistics, the study reveals a moderately strong positive correlation between cryptocurrency usage and both the volume and frequency of mobile money transactions. However, it also identifies significant barriers to adoption, including a lack of user awareness, security concerns, regulatory ambiguity, and the volatility of cryptocurrencies. \u0000Findings Through thematic, content, and comparative analysis, the study underscores the regulatory challenges, increased security risks, and the added burdens of compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations associated with the integration of cryptocurrencies. Moreover, the research identifies the potential disruption of existing mobile money systems by blockchain technology and the significant infrastructural investments and regulatory adaptation that it necessitates. \u0000Unique contribution to theory, policy and practice: The research proposes two strategies for aligning the regulatory frameworks for mobile money services and cryptocurrencies in Zambia: development of specific regulations or guidelines for cryptocurrencies that align with existing mobile money rules, and establishment of a separate regulatory framework that addresses the unique characteristics of cryptocurrencies. In highlighting the transformative potential of blockchain technology and the importance of user perspectives and regional variables in the integration process, the study offers valuable insights for researchers, policymakers, and practitioners. The research underscores the necessity for a responsive approach, continuous review, and update of regulatory frameworks, emphasizing consumer protection, market stability, and the promotion of innovation. While the research confirms the promising opportunities, cryptocurrencies offer to enhance mobile money services, it also emphasizes the need for careful consideration of potential adverse effects. Future research is encouraged to continue exploring this rapidly evolving field, broadening the geographical scope, and focusing on user education and robust security measures.","PeriodicalId":47461,"journal":{"name":"International Journal of Finance & Economics","volume":"11 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86579512","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}