Scientific Annals of Economics and Business
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A Catering Perspective of the Banking Sector Markets: Evidence from a Cross-Country Analysis
Get PDFIn this paper, we attempt to analyze and better apprehend the nature, structure and dynamics of connections between bank stock indices of different countries in G7 and BRIC regions during the outbreak of tremendous events. For this end, we apply the bi- and multi-variate wavelet method on banking sector indices during the period 1/1/2016 to 4/28/2023. The empirical findings show that the banking sector indices’ comovement between the US and other markets tends to change in both short- and long-term and depend on region/country. Such connections are highly affected by the outbreak of tremendous events (crisis/pandemic). In particular, the impact of the SVB collapse on such connections seems to be dissimilar among countries and regions. The findings could have insightful information for investors and portfolio managers and call for stronger emphasis on the suitable banking regulatory environment
How Does Financial Openness Impact Economic Growth in Tunisia? Insights from an ARDL Model
Get PDFThis paper examines the short and long run dynamics between capital account liberalization and economic growth in Tunisia over the period 1984-2019. Based on the AutoRegressive Distributed Lag (ARDL) method of Pesaran et al. (2001) and causality tests of Toda and Yamamoto (1995), we find evidence supporting a long-run cointegration relationship between capital account liberalization and economic growth. However, the short-run effects are more limited, with causality running from economic growth to financial liberalization. This result is explained by the importance of the Tunisian authorities continuing to adopt financial and institutional reforms in a prudent, gradual, and orderly manner, in order to meet some of the preconditions required for the implementation of external financial liberalization. Moreover, the study also analyzes the role of institutions, as both the level and quality of institutional development condition the impact of financial liberalization on economic growth. In fact, in our study, one of the two main channels through which capital account liberalization affects economic growth is precisely the level of financial development resulting from the various reforms undertaken
European Union Law and Governance in Times of Technological and Political Turmoil
Get PDFOver the last 25 years, the EU and its environment have undergone many changes. The digital transition is perhaps the cross-cutting objective that introduces the most changes in the EU's achievements, affecting all (or most) of them. On the occasion of the 25th anniversary of the entry into force of the euro, we propose some reflections on the possibility and necessity of creating a digital euro. For more than 15 years bitcoins have existed in the global market, and not only sovereign states such as China, but also large platforms such as Facebook have created their own tokens. The European Commission is activating the necessary regulatory framework so that the single market can be digital without altering its essence. But with respect to the single currency, the issuance of a Digital Euro, under the supervision of the European Central Bank, must be surrounded by safeguards that allow it to act also in the digital market while complying with the basic principles of the European integration process. If we take too long to have it in place or the result is a regulation that is too much of a guarantor, we run the risk that the players, also in the European market, will opt for the use of other digital currencies that are more agile but also opaquer. Since the end of 2023, the European Central Bank has been dealing with these issues, and hopefully by the end of this year 2025 a proposal will be published that will allow operation in the efficient market but with respect for data protection and the EU's financial architecture. From 2026 onwards we have a long way to discover with the use of Digital Euro
Building Up Legitimacy? Analysis of the European Central Bank Narrative During the COVID-19 Crisis
Get PDFFor the literature on crisis management, two of the most important undertakings are sense-making (what is going on) and meaning-making (causes and consequences; and solutions). They feed the public’s understanding and support of crisis responses. Meaning-making is connected to change that emerges from the crisis, providing a relevant explanation of post-crisis policies: the way we perceive a crisis will determine to what extent we are willing to accept a post-crisis reform. The article addresses narratives of the European Central Bank’s during the COVID-19 pandemic, building on the literature on crisis communication, and particularly on the “crisis-exploitation-reform script” combined with literature on policy narratives. Our goal is to answer three interrelated research questions: how did the ECB frame the pandemic crisis? Were ECB’s narratives crafted onto policy reform? How did the ECB shaped narratives in order to build up legitimacy
eWOM vs. aWOM: AI Powered Word of Mouth and its Impact on Consumer Decision Making in Tourism
Get PDFThis paper explores the impact of artificial intelligence (AI) on consumer behaviour in the online tourism industry, focusing on two types of Word of Mouth (WOM): electronic Word of Mouth (eWOM) and Algorithmic Word of Mouth (aWOM). While eWOM, driven by consumer-generated content on platforms like TripAdvisor, influences travel decisions, aWOM uses AI to provide personalized recommendations based on data analysis. Despite its potential for greater personalization, aWOM raises concerns about transparency and authenticity. The study, using in-depth interviews and a focus group, reveals a general preference for eWOM due to its perceived authenticity, with participants valuing credible, detailed reviews. The findings suggest that aWOM can complement eWOM but should be used cautiously in the tourism industry to maintain trust and transparency
Evaluating the Eurozone’s Impact on Portugal Amidst Modern Uncertainties
Get PDFThis paper investigates the impact of euro area membership on the Portuguese economy, focusing on whether the benefits of integration have outweighed the costs amidst ongoing economic uncertainties. Earlier research employed a VAR model with a discrete change in 1999 to capture the impact of adopting the euro. Instead, this paper uses a Smooth Transition Vector Autoregressive (STVAR) model. The STVAR model allows for the possibility that the adoption of the euro had a gradual effect on the Portuguese economy. This assumption better aligns with the historical process that culminated in the euro’s adoption, which involved several stages of gradual progress. As expected, we find a positive impact of adopting the euro on inflation stability and interest rates. However, in contrast to previous research, the results presented in this paper indicate that euro area membership has also positively affected Portuguese real per capita GDP
“There is no Alternative” for Southern European National Parties: Analysing Programmatic Convergence on Economic and Monetary Policy Issues in Euroelection Manifestos
Get PDFDrawing on a framework combining Europeanization with a critical political economy approach, this research aims to assess if the Eurozone crisis induced an ideological and programmatic convergence of national parties in four Southern European member states: Greece, Italy, Portugal and Spain. Based on the quantitative analysis of parties’ ideological classification and of Euroelection Manifestos’ content from 1999 to 2019, the research hypothesizes that the Economic and Monetary Union (EMU) political economy and, particularly, the Eurozone crisis effects on Southern Europe created a “no alternative” policy for national governments, thus impelling parties to ideologically and programmatically converge with the supranational preferences for the EMU’s future. Conclusions indicate that the Eurozone crisis triggered a consensual turn to the left of national party systems, and a convergence on demands for Keynesian policies within the EMU. This reveals a contradiction between the political aspirations of national parties and their representative role, and their executive political commitments during the austerity-led governmental approach in the crisis
Effects of Price Clustering on African Stock Markets
Get PDFThe phenomenon of price clustering refers to the empirical finding that some prices in financial markets occur significantly more frequently than others. The phenomenon is important theoretically as it challenges the efficient market theory and empirically as it suggests that predictability patterns can be used by investors to devise strategies and investments capable of generating abnormal returns. In this paper, we study the phenomenon for the first time in the context of African markets. Our study includes data from the period spanning 2018-2022 for the stock markets of Egypt, Kenya, Morocco, Nigeria, South Africa, and Tunisia. Our results provide compelling evidence of price clustering within all markets under analysis. Univariate analysis confirms widespread clustering, particularly favoring closing prices ending in zero and five. The results of the multivariate analysis suggest that stocks with higher prices, lower turnover, and lower liquidity tend to exhibit a higher level of clustering. Contrary to the expectations of the Panic Selling Hypothesis, a more intense clustering did not occur during the COVID-19 pandemic. Collectively, our results offer partial support for the Attraction Hypothesis and the Negotiation/Price Resolution Hypothesis
Unlocking Growth: India’s Stock Market Journey Post-Liberalization –Trends, Challenges, and Policy Perspectives
Get PDFThe economic liberalization reforms of 1991 marked a pivotal moment in India’s financial history, transforming its stock market and integrating it into the global financial system. This paper presents a comprehensive analysis of the Indian stock market's evolution from 1980 to 2024, emphasizing key performance metrics such as market capitalization, liquidity, and volatility. Through a dual-method approach, integrating empirical and contextual analyses, the study investigates macroeconomic variables – GDP growth, inflation, and exchange rate fluctuations – and their impact on stock market performance. Hypotheses are tested using quantitative techniques, including Vector Error Correction Models (VECM) and Granger causality tests, complemented by qualitative analyses of regulatory reforms, financial inclusion, and comparative insights with other emerging markets. The findings reveal the critical role of regulatory institutions like the Securities and Exchange Board of India (SEBI) in enhancing market efficiency and investor confidence. They also highlight the dual impact of inflation, the influence of exchange rate volatility on foreign portfolio investments (FPIs), and the persistent regional disparities in market participation. Comparative analysis with Brazil, China, and Russia underscores India's unique liberalization trajectory, shaped by its democratic framework and gradualist approach. The study provides actionable insights for policymakers, including the need to address financial inclusion, strengthen regulatory compliance, and ensure resilience to global economic shocks. By integrating empirical evidence with contextual depth, this paper contributes to the discourse on emerging market financial liberalization and its implications for sustainable growth
Corporate Governance and Accounting Conservatism: Evidence from French CAC 40 Listed Companies
Get PDFThis paper aims to study how board diversity impacts the accounting conservatism. It uses a sample of 34 companies listed on the CAC 40 during the 2012-2021period. Using Givoly and Hayn (2000) accrual-based measure of accounting conservatism, we found that directors' demographic characteristics (age, gender, nationality) positively affect the accounting conservatism. The findings may be of interest to regulators, corporate managers, and board of directors interested in enhancing disclosure quality. As the study links board demographic attributes to accounting conservatism, policies can be developed in order to improve the configuration of boards and thus the credibility of financial statements. This study claims originality insofar as it focuses on the effect of directors' demographic diversity on accounting conservatism practices. Unlike earlier studies that examined board of directors' structure from the corporate governance perspective, our study investigates how precisely demographic attributes of board directors affect the accounting conservatism