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Journal of Economics and Finance OnlineFirst articles

Open Access 10-05-2024

Who gets duped? The impact of education on fraud detection in an investment task

Many financial scandals appear to depend on a lack of skepticism on the part of their victims. Sophisticated investors trusted Bernie Madoff, for example, despite early warning signs of implausible returns. Our study investigates how education …

Authors:
Calvin Blackwell, Norman Maynard, James Malm, Mark Pyles, Marcia Snyder, Mark Witte

10-05-2024

The effect of external debt on greenhouse gas emissions

We estimate the causal effect of external debt on greenhouse gas emissions in a panel of 78 emerging market and developing economies over the 1990-2015 period. Unlike previous literature, we use external instruments to address the potential …

Authors:
Jorge Carrera, Pablo de la Vega

08-05-2024

Certification of acquisitions by external parties: evidence on acquirers’ banking relationships

This paper provides evidence that acquirers earn higher returns and are less likely to complete acquisitions when relationship banks play a certification role. The greater the intensity of the acquirer’s prior bank lending relationship, the higher …

Author:
Chih-Huei Banks

07-05-2024

ESG impact on oil and natural gas financialization through price transmission

Oil and Natural Gas markets are integrated with equity markets over time. While the integration characteristics vary between type, direction, and magnitude, this persistent relationship yields questions about oil's and natural gas's place in …

Authors:
Alper Gormus, Saban Nazlioglu, Elif Gormus

29-04-2024

Homeownership status and its effect for housing wealth - consumption channel in Europe

The importance of dynamics in housing value and its impact on the aggregate consumption was a highlight of the global financial crisis. Although the theoretical relationship has been analyzed by various authors, the empirical facts in Europe …

Author:
Karolis Bielskis

25-04-2024

Layoffs and corporate performance: evidence based on the US tech industry

This study investigates the repercussions of substantial workforce reductions on the performance of publicly traded US tech firms from 2020Q1 to 2023Q1, being robust to multiple proxies across four performance parameters. Findings reveal decreased …

Author:
Zannatus Saba

11-04-2024

Political ratings, government quality, and liquidity: evidence from Non-U.S. energy stocks listed on the NYSE

This paper investigates the relationship between liquidity, information asymmetry, political risk rating, government and regulatory quality rating for non-U.S. stocks in the energy industries listed on the New York Stock Exchange (NYSE). Our …

Authors:
Jang-Chul Kim, Qing Su

02-04-2024 | Original Research

Ending COVID-19 vaccine apartheid through vaccine donations: the influence of supply chains

We study determinants of COVID-19 vaccine donations from recipients’ perspective, especially considering supply chain and institutional weakness (corruption) aspects. Results, based on data from more than 130 nations, show that strengthened supply …

Authors:
Rajeev K. Goel, Michael A. Nelson

28-03-2024

Spillover effects of carbon, energy, and stock markets considering economic policy uncertainty

This paper uses a two-regime Markov-switching GARCH model to illustrate that the state-switching of returns in the EU carbon market and its associated energy and stock markets is related to the occurrence of major events. Using the European …

Authors:
Yanping Liu, Bo Yan

20-03-2024

Retail and institutional trading during a COVID-19 presidential press conference

The COVID-19 pandemic substantially impacted many aspects of regular life including financial markets. The increased media attention and slowdown associated with the pandemic provide the opportunity to explore how both institutional and retail …

Authors:
Matthew D. Crook, Andrew A. Lynch, Brian R. Walkup

13-03-2024

Leverage adjustment analytics: effect of Covid-19 crisis on financial adjustments of Indian firms

The corporate firms are affected by the impact of Covid-19 crisis on business activities, cash flow, and firm leverage. It is required to analyze the Speed of Adjustment (SoA) through which firms adjust their leverage toward target during …

Authors:
Ravindra N. Shukla, Vishal Vyas, Animesh Chaturvedi

11-03-2024

Oil Price Dynamics and Housing Demand in Oil Producing Counties in the U.S.

We assess the impact of changes in oil prices on building permit applications in the top oil-producing counties, using monthly data between 2004 and 2021. In the long-run, a positive shock in oil prices increases the number of home permit …

Authors:
Nyakundi M. Michieka, Richard S. Gearhart III, Noha A. Razek

07-03-2024

Long memory in volatility in foreign exchange markets: evidence from selected countries in Africa

This study examines the long memory properties in the volatility of the foreign exchange markets of Egypt, Ghana, Kenya, Nigeria and South Africa. Applying the FIEGARCH model to daily data from June 2, 1997, to December 31, 2021, we find long …

Authors:
Saint Kuttu, Joshua Yindenaba Abor, Godfred Amewu

05-03-2024

BHC brilliance in the fog of uncertainty: Illuminating trends in bank performance 

This paper investigates the impact of economic policy uncertainty (EPU) on U.S. banks' performance over the period 2001:Q1-2021:Q1. The empirical results indicate that EPU exerts an adverse influence on banks’ return on assets (ROA), but this …

Authors:
Minh N. Nguyen, Hung M. Pham, Anh Phan, Ahmed W. Alam, Dung V. Tran

13-02-2024

The role of industry membership and monetary policy in generating the size effect

We examine how the small-minus-big (SMB) size premium changes when firms from different industries are included and excluded from its calculation. Through this analysis, we are able to deduce whether firms in a particular industry play a …

Authors:
Marc W. Simpson, Axel Grossmann

02-02-2024

Debt affordability in developed and emerging market economies: the role of fiscal rules

In this study, we examine the impact of fiscal rules on debt affordability across an extensive sample of developed and emerging market economies, employing a panel data model that accommodates weakly exogenous regressors and effectively addresses …

Authors:
Jose E. Gomez-Gonzalez, Oscar M. Valencia, Gustavo A. Sánchez

02-02-2024

The impact of corporate ethical standards on the liquidity of non-U.S. stocks: an examination of the Chinese Melamine Scandal

Our study investigates the relationship among liquidity, information asymmetry, and business ethics for non-U.S. stocks listed on the New York Stock Exchange (NYSE). Our results show that non-U.S. stocks from countries with lower ethical standards …

Authors:
Teressa Elliott, Jang-Chul Kim, Ha-Chin Yi

Open Access 23-01-2024

Leverage and SMEs financial stability: the role of banking competition

This work exploits a large panel dataset on Italian manufacturing SMEs to examine the relationship between leverage and firms’ financial stability. Specifically, we evaluate whether and to what extent this link is affected by the degree of …

Authors:
Mariarosaria Agostino, Lucia Errico, Sandro Rondinella, Francesco Trivieri

Open Access 04-01-2024

Consumer sentiments across G7 and BRICS economies: Are they related?

This paper utilizes fractional integration and cointegration techniques to investigate the stochastic properties of the bilateral linkages between the Consumer Sentiment Index (CSI) of eight developed economies, Australia, Canada, France, Germany …

Authors:
Luis A. Gil-Alana, Emmanuel Joel Aikins Abakah, Nieves Carmona-González, Aviral Kumar Tiwari

03-01-2024

The trade-off between ESG screening and portfolio diversification in the short and in the long run

This paper empirically investigates the performance of portfolio screening strategies based on ESG (Environmental, Social, Governance) scores, by testing three main hypotheses motivated by the introduction of sustainability considerations within …

Authors:
Beatrice Bertelli, Costanza Torricelli