Journals UITM University of Information Technology and Management
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Impact of selected macroeconomic factors on financial markets: a case study of the USA
Get PDFThe financial environment is under great pressure as a result of dynamically changing macroeconomic factors. In this situation, full of uncertainty, understanding the relationship between macroeconomic factors and financial markets becomes a key issue. Market analysts and investors are constantly studying the impact of various variables on the stability of the economy and the performance of financial markets. The purpose of this study is to analyze the impact of selected macroeconomic factors on financial markets over the 2018-2022 period, using the Nasdaq 100 index. Variables such as GDP, inflation, interest rate, consumer confidence, unemployment and changes in commodity prices are examined in terms of their relationship to the returns of the US technology index. The results of the analysis allow researchers of the topic, as well as stock market investors, to draw conclusions about potential market trends, providing valuable guidance for portfolio managers in a dynamic macroeconomic environment. The main value of the study is to assess how these selected factors affect stock market indices
Empirical evidence on the roles of financial technology products on the shadow economy: a comparative analysis between advanced, emerging and developing countries
Get PDFThe shadow economy, which can be defined as undeclared economic activities carried out in secret from public authorities,, and that cause negativities such as tax losses outside of official economic activities, has become a part of the economic activities of both developed and developing countries. The shadow economy literature bears witness to very different findings within the framework of national income levels, and this encourages researchers to address the issue from different perspectives with further studies. This study examines the effects of financial technology products, inflation, and the rule of law on the shadow economy in advanced, emerging and developing countries by using the method of the moment-quantile regression model and different robustness control methods. The most interesting finding from the study is that the effect of financial technology products on the shadow economy is asymmetric in both country groups. Accordingly, while automated teller machine use reduces the shadow economy in advanced countries, it increases it in emerging and developing countries. However, inflation has an increasing effect on the shadow economy in both groups, while the rule of law has a decreasing effect. It can be said that these empirical results provide policy implications that will help decision-makers develop strategies in the fight against the shadow economy.
Fuzzy representation of a limit order book as a measure of stock liquidity
Get PDFIn this paper, we seek to ascertain whether the recently developed ordered fuzzy number (OFN) representation of a limit order book (LOB) by Marszałek and Burczyński (2024) may serve as a measure of stock liquidity. In particular, we aim to test whether this measure contains similar or distinct information than other stock liquidity measures, particularly relying only on best buy and sell orders. To this end, we have investigated the data on 259 companies in total over an eight-year period from 2014 to 2021. In total, we have compared the tested measure with eight different measures derived from the LOB data, all of which are computed on a weekly basis. Our results indicate that the OFN representation of a LOB correlates with other liquidity measures in the time series but is less correlated with them in the cross-section. Furthermore, it contains a distinct piece of information compared to the other measures, suggesting that it may capture a different liquidity dimension. In summary, the findings of the study suggest that the OFN representation of a LOB could serve as a measure of stock liquidity, particularly for large-volume trades and stocks with shallow or fragmented order books.
Impact of fiscal sustainability on economic growth in Kenya
Get PDFFiscal sustainability refers to a government's capacity to generate sufficient revenue to cover its expenses and repay its debts without accumulating excessive liabilities or creating new money. Recent observations indicate that Kenya's economic growth has slowed, prompting concerns about its fiscal sustainability. This study investigates the long-term relationship between Kenya's economic growth and certain budgetary sustainability indicators, specifically the public primary budget balance and external debt. Two control variables - trade balance and inflation - were also considered, with data sourced from the IMF and World Bank. Utilizing time series annual data spanning from 1990 to 2023, the study employed the autoregressive distributed lag (ARDL) bounds test and error correction model to analyze the data through three stages: unit root testing, F-bounds cointegration testing, and estimating the ARDL error correction model. The findings reveal a long-term relationship between fiscal sustainability indicators and economic growth in Kenya. Notably, the primary budget balance, which serves as a proxy for fiscal sustainability, as well as inflation and trade balance, were found to negatively and significantly impact economic growth in the country. Conversely, external debt, another proxy for fiscal sustainability, exhibited a positive effect on economic growth over the long term. To foster sustained economic growth in Kenya, government policymakers should prioritize controlling public spending, managing external debt levels, and enhancing revenue generation efforts.
The Polish consumer and BNPL. Profile and motivation
Get PDFBNPL can lead to an expansion of consumption, but also to household over-indebtedness. The aim of the article is to define the profile of the BNPL user in Poland based on responses to a survey conducted using the CAWI technique among BNPL clients in Poland in August 2024. The relations are identified by use of Pearson χ2 tests while Cramer's V coefficient provides for the measuring of dependencies between respective demographic, economic and behavioural features and reasons for BNPL usage. The results indicate that BNPL in Poland is mainly used by young women. BNPLs are chosen by consumers with a secondary or higher education and most often not because they lack the financial means to make purchases, but for the opportunity to try the product without paying for it and to better manage the household budget. During the interest-free period, people with relatively better education and less debt at banks and non-bank loan companies settle their obligations
From accruals to real activities: Understanding the trade-off in earnings management choices amid XBRL adoption in Italy
Get PDFThis study examines the factors influencing managerial decisions between accrual-based earnings management (AEM) and real earnings management (REM) following the mandatory adoption of eXtensible Business Reporting Language (XBRL) among firms listed on the Italian stock exchange. By analyzing the shift between AEM and REM, the research provides insights into how enhanced financial reporting transparency affects managerial decision-making. The study employs an empirical analysis of Italian firms to assess the relationship between XBRL adoption and earnings management practices. The research investigates the extent to which firms adjust their earnings management strategies in response to increased transparency, with a specific focus on the trade-off between AEM and REM. The results indicate that mandatory XBRL adoption is associated with a decline in accrual-based earnings management (AEM) and a corresponding increase in real earnings management (REM) among Italian firms. The findings suggest that increased financial reporting transparency prompts firms to rely more on REM while simultaneously reducing their use of AEM. Additionally, the intensity of the trade-off between AEM and REM is found to be positively moderated by firms classified as SUSPECT, which are those reporting only small positive profits or slight increases in profitability. These firms would likely have experienced losses or declining profitability without the use of earnings management tools, with a stronger tendency to rely on AEM over REM. However, this moderating effect was not observed among loss-making (LOSS) firms. This study makes two key contributions. First, it is among the first to examine the impact of XBRL implementation on earnings management practices within a European context, specifically in Italy. Second, it provides novel insights into the factors influencing the trade-off between AEM and REM, addressing an important gap. The findings highlight the unintended consequences of financial reporting standardization, demonstrating that increased transparency may shift earnings management strategies rather than eliminate them. Regulators and policymakers should consider these effects when designing financial disclosure regulations to mitigate potential opportunistic behavior by firms.
Examining the volatility spillover between the fear index and the magnificent seven technology stocks
Get PDFThis study investigates the volatility spillover dynamics between the VIX fear index and the Magnificent Seven technology stocks - namely Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla - over the period of June 2012 to March 2024. To achieve this objective, the variance causality test is employed to detect potential volatility transmissions among the series. Preliminary diagnostic tests confirm the validity of the GARCH (1,1) specification for all individual return series. The results from the variance causality analysis indicate significant volatility spillovers from the VIX to the conditional variances of Microsoft, Alphabet, Meta Platforms, Nvidia, and Amazon stocks. Building on these findings, impulse-response functions and variance decomposition analyses are conducted based on the conditional variance series estimated through the GARCH (1,1) model. The impulse-response analysis reveals that a positive shock in the VIX generates a temporary increase in the conditional volatility of Apple, Alphabet, Nvidia, and Tesla stocks, which gradually diminishes over time. Conversely, a VIX shock induces a negative volatility response in Meta Platforms, Microsoft, and Amazon stocks, although these effects also fade and converge to zero in the long run. Variance decomposition results further show that, in the short term, the volatility of each technology stock is predominantly driven by its own internal dynamics. However, as the forecast horizon extends, the influence of the VIX index becomes increasingly pronounced, underscoring its role as a significant external volatility driver. These findings imply that investors' perceptions of heightened risk - captured by the VIX index - are effectively transmitted to technology stock markets. Accordingly, the incorporation of the VIX index into volatility forecasting models can enhance prediction accuracy. From a practical standpoint, the study underscores the importance of monitoring the fear index when developing portfolio allocation and risk management strategies-oriented equities.
THE GLOBAL SHIFT IN MONETARY SOVEREIGNTY : A SYSTEMATIC LITERATURE REVIEW OF DE-DOLLARIZATION USING THE TCCM FRAMEWORK
Get PDFThis study aims to systematically review the literature on de-dollarization in light of its increasing significance. The review has been carried out using the Theory, Context, Characteristics, Methodology (TCCM) framework on 52 studies retrieved from the Scopus and Web of Science database. The findings suggest the prevalence of two theories and three models applied in literature. Multi-country studies dominate the literature, with the USA taking the lead in terms of country-specific research. Further, research on de-dollarization can be categorised into five themes. Methodologically, quantitative studies, focusing on the usage of secondary data are mostly used, with lesser focus on theoretical, case and review studies. By synthesizing the existing literature, this paper undertakes a comprehensive exploration of de-dollarization, scrutinizing its various facets and implications on the international economic forum. It advances the discourse on de-dollarization by presenting novel insights and emphasizing the need for further scholarly investigation into achieving equitable and stable global financial systems beyond dollar dominance
Assessment of the impact of innovation and investment activities on the restoration of economic potential of ukrainian enterprises in the context of industry 5.0 and the circular economy
Get PDFThe purpose of this article is to assess the extent to which the activation of innovation and investment activities contributes to the restoration of the economic potential of enterprises in Ukraine under the conditions of transition to Industry 5.0 standards and the implementation of circular economy principles. The focus is placed on Ukrainian enterprises as the object of the study, considering sectoral differences and the specific challenges caused by the ongoing war. The task is to present a methodological approach that will allow us to present how to assess the significance of the influence of certain areas in the activation of innovative and investment activities of an enterprise on the restoration of economic potential. The principles of Industry 5.0 and the circular economy are also taken into account. As a result, the method of pairwise comparison was chosen and, by involving experts, to determine the most significant factors of the activation of innovative and investment activities of an enterprise that affect the restoration of economic potential, taking into account the standards of Industry 5.0 and the circular economy. The results may have practical significance in further use within the activities of enterprises of Ukraine and beyond. This article examines the impact of activating innovation and investment activities on the restoration of economic potential of Ukrainian enterprises amid the transition to Industry 5.0 and the adoption of circular economy principles.
Quantum Weak Values and Harmonic Analysis on Lie Groups
Get PDFThe aim of this contribution is to generalize a formula proved by Maurice de Gosson (de Gosson 2017) about weak values in the context of the phase-space formulation of Quantum Mechanics (Rundle and Everitt 2021), in order to express those weak values using tools coming from the harmonic analysis on Lie Groups (Faraut 2006). A general formula which enables us to compute weak values is proved, in which the integration on a Lie Group is substituted to the integration on phase-space, using Haar measures. Then this formula is applied to SU(2) and SO(3) and also to the quotient group G/H, where H is a normal subgroup of G