The objective of the study is to use daily Thai data analysis to strengthen correlations between Bitcoin and conventional asset measurements. The most popular asset prices and indices include gold, ...oil, the SET50 index, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Dashcoin (DASH), Stellar Lumens (XLM), Binance coin (BNB), and Dogecoin (DOGE). We find a significant correlation between cryptocurrencies and the digital economy using a matrix approach to the Pearson correlation coefficient. With the help of a minimal spanning tree model and random matrix theory, we can determine the shortest route between assets. Yet, as predicted, only a small percentage of the greatest eigenvalues diverge. We are also developing a novel technique to find the SET-50 index. In an investment portfolio during the coronavirus period, alternatives to the gold price and the DOGE may offer possibilities for risk diversification.
► Decomposition of (conditional) dependence using quantile regression. ► Decomposition provides information about degree and structure of dependence. ► Empirical application shows substantial ...differences in dependence patterns. ► Structure of dependence is crucial to adequately assess contagion.
The copula function defines the degree of dependence and the structure of dependence. This paper proposes an alternative framework to decompose the dependence using quantile regression. We demonstrate that the methodology provides a detailed picture of dependence including asymmetric and non-linear relationships. In addition, changes in the degree or structure of dependence can be modeled and tested for each quantile of the distribution. The empirical part applies the framework to three different sets of financial time-series and demonstrates substantial differences in dependence patterns among asset classes and through time. The analysis of 54 global equity markets shows that detailed information about the structure of dependence is crucial to adequately assess the benefits of diversification in normal times and crisis times.
The innovation in technology and economic growth, which are brought about by digital transformation in enterprises, will inevitably impact their performance in the capital market. Using a sample of ...Chinese A-share listed companies from 2012 to 2021, this study extensively examines the impact, mechanism, and economic consequences of enterprises digital transformation on stock liquidity. The research reveals that enterprises digital transformation can significantly improve stock liquidity. From the perspective of corporate governance, a further analysis indicates that the digital transformation of enterprises can improve stock liquidity by three mechanisms: easing financing constraints, improving the quality of internal control, and enhancing information disclosure. The results of the heterogeneity analysis indicate that the digital transformation of enterprises, combined with a high level of financial technology, developed financial markets, and policy guidance, has a significantly more significant effect on improving stock liquidity. The analysis of economic consequences reveals that the digital transformation of enterprises can lower the risk of a stock price crash and enhance the accuracy of analysts' forecasts, primarily by improving stock liquidity. This study offers empirical evidence from a micro-mechanism perspective that elucidates the spillover effect of enterprise digital transformation on the capital market. It provides insight into the impact of enterprise digital transformation on stock liquidity and offers theoretical guidance to promote the adoption of enterprise digital transformation across different countries and enhance stock liquidity in the capital market.
Foreign exchange rates, asset prices and capital movements are expected to be closely related to each other as international capital markets become more and more integrated. This paper provides new ...empirical evidence from an index of exchange-rate adjusted cross-country asset price ratios, which may be interpreted as a real effective financial exchange rate. The integrated stock-flow approach reveals that a country's real effective financial exchange rate is cointegrated with international investors' net foreign holdings of its assets. The associated error correction equations have useful interpretations against the backdrop of uncovered return parity and investor portfolio rebalancing behavior.
•We construct an index of exchange-rate adjusted cross-country stock price ratios.•This index is cointegrated with domestic shares held by international investors.•Error correction behavior implies a moderate speed of adjustment of asset prices.•At the same time, international investors rebalance their portfolio shares.
Online social networks (OSNs) are effusively emerging information dissemination platforms for capital market investors' as in other settings. The insinuation of OSNs for institutional investors' ...investment decisions in the capital market cannot be eluded in today's world. This study aims to determine the factors that influence institutional investors' capital market investing decisions and the level to which each factor influences their decision. It presents a comprehensive framework that incorporates TAM and valence frameworks while also analyzing institutional theory, resource-based view, FASB framework, and transaction cost theory. A mixed-method approach is proposed, consisting of expert interviews and a field survey. An online structured questionnaire was used to perform a field survey, and 285 data points were obtained from capital market institutional investors in Bangladesh. The data was analyzed using Structural Equation Modeling (SEM). The suggested comprehensive model outperforms previous models. Proposed factors (e.g., institutional pressure and cost-benefit dimension), as well as perceived usefulness, are strong predictors of intention to use. Indirect drivers of intention to use include another hypothesized construct (e.g., situational context) and perceived ease of use. The decision to engage in the capital market is highly influenced by the intention to use OSNs. It is worth noting that the predicted relationship between situational context and perceived usefulness, as well as the relationship between perceived usefulness and perceived ease of use, are both highly significant. Stimulatingly, proposed moderators, namely organizational IS capability, significantly moderates the different relationships of the unified model. Surprisingly, perceived risk has not to impact on OSNs adoption. Theoretical and practical implications, as well as other discussions, are also presented.
•A unified model integrates TAM, valence framework, institutional theory, resource-based view, transaction cost theory, and FASB framework.•The unified model explains significantly the capital market institutional investors' intention to use OSNs.•Empirical findings explored different determinants for the adoption of OSNs in institutional investors' decision.•Organizational IS capability is discovered as a significant moderator in the unified model.
This article draws upon existing literature to document and describe the rise of finance in food provisioning. It queries the role of financialization in the contemporary food crisis and analyzes its ...impacts upon the distribution of power and wealth within and along the generalized agro-food supply chain. A systematic treatment of key nodes in the supply chain reveals four key insights: (1) the line between finance and food provisioning has become increasingly blurred in recent decades, with financial actors taking a growing interest in food and agriculture and agro-food enterprises becoming increasingly involved in financial activities; (2) financialization has reinforced the position of food retailers as the dominant actors within the agro-food system, though they are largely subject to the dictates of finance capital and face renewed competition from financialized commodity traders; (3) financialization has intensified the exploitation of food workers, increasing their workload while pushing down their real wages and heightening the precarity of their positions, and (4) small-scale farmers have been especially hard hit by financialization, as their livelihoods have become even more uncertain due to increasing volatility in agricultural markets, they have become weaker vis-à-vis other actors in the agro-food supply chain, and they face growing competition for their farmland. The paper concludes by identifying themes for future research and asking readers to reimagine the role of finance in food provisioning.
In this paper, we examine herding across asset classes and industry levels. We also study what incentives managers at various layers of the financial industry face when investing. To do so, we use ...unique and detailed monthly portfolios between 1996 and 2005 from pension funds in Chile, a pioneer in pension-fund reform. The results show that pension funds herd more in assets that have more risk and for which pension funds have less market information. Furthermore, the results show that herding is more prevalent for funds that narrowly compete with each other, namely, when comparing funds of the same type across pension fund administrators (PFAs). There is much less herding across PFAs as a whole and in individual pension funds within PFAs. These herding patterns are consistent with incentives for managers to be close to industry benchmarks, and might be also driven by market forces and partly by regulation.
With the increasing attention of the capital market to environmental, social and governance information, sustainability reporting has become an important carrier for stakeholders to gain insight into ...sustainability of companies. But the emerged "greenwashing" problem has also brought haze to the value creation of capital market. To study the consequences of the pseudo-social responsibility behavior of "greenwashing", this paper takes China's listed companies as the research sample to empirically examine the relationship between sustainability reporting "greenwashing" and "shared value" creation. It is found that the "greenwashing" behavior of corporate sustainability reporting significantly reduces the "shared value" creation, while the degree of sustainability information asymmetry and the quality of information disclosure play a partial mediation role between them. Further analysis shows that the more effective internal control of a company and the greater pressure of external media supervision, the more conducive to weaken the negative impact of "greenwashing" on "shared value" creation. This paper enriches the literature on the economic consequences of "greenwashing" in sustainability disclosure and the influencing factors of "shared value" creation, extends the research on information disclosure and "shared value" from financial information to non-financial information. The results call for the state to promote legislative work, formulate unified standards and compress the "greenwashing" gray space; Governments could implement mandatory disclosure, implement independent authentication and strengthen "greenwashing" social supervision; Companies should strengthen capacity building and improve the "greenwashing" governance mechanism with the help of digital empowerment.
Purpose
The purpose of this paper is to evaluate the impact of minority shareholders’ attendance at shareholders meetings on related party transaction (RPT) proposals.
Design/methodology/approach
...This paper empirically examines the impact of minority shareholders’ attendance in shareholders’ meetings on the voting results of RPT proposals based on the hand-collected voting data of Chinese listed companies.
Findings
The empirical result shows a significant positive relationship between the attendance of minority shareholders and the nonagreeable vote rate of RPT proposals. Moreover, this positive relationship is strengthened when the corporate governance is poor, the negative media coverage is high, and the on-site attendance of minority shareholders is high. Conversely, good corporate governance and high positive media coverage can weaken this positive correlation. The additional analysis reveals that the number of RPTs and better market performance in the future can be significantly reduced when minority shareholders express their nonagreeable voice actively.
Originality/value
This paper analytically and empirically examines the impact of minority shareholders’ attendance in shareholders’ meetings on the voting results of RPT proposals based on the hand-collected voting data of Chinese listed companies. It provides direct and convincing evidence for the impact of minority shareholders’ attendance and exercise of voting rights in shareholders’ meetings on the outcome of RPT proposals. It complements the literature on the governance effects of minority shareholders’ attendance in shareholders’ meetings to exercise their voting rights in emerging capital markets. This study has practical value by guiding minority investors to participate actively in corporate governance.
We study the nature of systemic sovereign credit risk using CDS spreads for the U.S. Treasury, individual U.S. states, and major Eurozone countries. Using a multifactor affine framework that allows ...for both systemic and sovereign-specific credit shocks, we find that there is much less systemic risk among U.S. sovereigns than among Eurozone sovereigns. We find that both U.S. and Eurozone systemic sovereign risk are strongly related to financial market variables. These results provide strong support for the view that systemic sovereign risk has its roots in financial markets rather than in macroeconomic fundamentals.
•Three times more systemic risk in Eurozone countries than U.S. states.•Systemic sovereign risk not directly caused by macroeconomic integration.•Systemic risk linked with financial market conditions.
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