1,720,969 research outputs found
Chronotype, risk and time preferences, and financial behaviour
No full textThis paper examines the effect of chronotype on the delinquent credit card payments and stock market participation through preference channels. Using an online survey of 455 individuals who have been working for 3 to 8 years in companies in mainland China, the results reveal that morningness is negatively associated with delinquent credit card payments. Morningness also indirectly predicts delinquent credit card payments through time preference, but this relationship only exists when individuals’ monthly income is at low and average level. On the other hand, financial risk preference accounts for the effect of morningness on stock market participation. Consequently, an additional finding is that morningness is positively associated with financial risk preference, which contradicts previous finding in the literature. Finally, based on the empirical evidence, we discuss the plausible mechanisms that may drive these relationships and the implications for theory and practice. The current study contributes to the literature by examining the links between circadian typology and particular financial behaviour of experienced workers
Baldrige Award announcement and long memory in shareholder wealth
No full textIn a competitive global market environment, the successful institution and implementa-tion of a comprehensive quality improvement programme is pivotal in attaining and sustaining business excellence. Tangible evidence of a company's level of excellence can be demonstrated by winning a prestigious quality award like the Malcolm Baldrige National Quality Award (MBNQA). While the intention to raise the level of competitiveness in all business sectors is lauded, two pertinent issues arise. Firstly, do investors or stock market participants share the belief that quality leads to business excellence. This implies that the stock market participants may have limited knowledge and experience in assessing the impact of quality improvement initiatives on performance (Easton & Jarrell, 1998). Secondly, if investors do believe and are able to assess the benefits quality improvement initiatives bring, would they acknowledge the benefits these quality awards bring in terms of sustained returns? This paper, an extension from studies by Przasnyski & Tai (2002) and Ramasesh (1998), attempts to investigate the long run sustainability of returns by recipient companies of the MBNQA from 1988 to 1996. Using long memory models commonly used in the financial econometrics literature, it was found that most recipient companies do not display long memory or, in short, recipient companies cannot sustain the previously generated significant abnormal returns on the day of announcement of winning the award.</p
Predictability of bitcoin returns
Full text linkThis paper comprehensively examines the performance of a host of popular variables to predict Bitcoin returns. We show that time-series momentum, economic policy uncertainty, and financial uncertainty outperform other predictors in all in-sample, out-of-sample, and asset allocation tests. Bitcoin returns have no exposure to common stock and bond market factors but rather are affected by Bitcoin-specific and external uncertainty factors
Negative bubbles & shocks in cryptocurrency markets
Full text linkIn this paper we draw upon the close relationship between statistical physics and mathematical finance to develop a suite of models for financial bubbles and crashes. The derived models allow for a probabilistic and statistical formulation of econophysics models closely linked to mainstream financial models. Applications include monitoring the stability of financial systems and the subsequent policy implications. We emphasise the timeliness of our contribution with an application to the two largest cryptocurrency markets: Bitcoin and Ripple. Results shed new light on emerging debates over the nature of cryptocurrency markets and competition between rival digital currencies
The predictability of Bitcoin returns
No full textOur article comprehensively examines the performance of a host of popular variables to predict Bitcoin returns. We show that time-series momentum and political uncertainty outperform other predictors in all in-sample, out-of-sample and asset allocation tests. Bitcoin returns have no exposure to common stock and bond market factors but rather are affected by Bitcoin-specific factors. Our evidence also indicates that Bitcoin offers significant diversification benefits for investors against uncertainty
Long memory interdependency and inefficiency in Bitcoin markets
No full textWe model cross-market Bitcoin prices as long-memory processes and study dynamic interdependence in a fractionally cointegrated VAR framework. We find (i) long-memory in both individual market and five-market systems depicting non-homogeneous informational inefficiency and (ii) a cointegration relationship with slow adjustment of shocks where uncertainty leaves a negative impact
Foreign direct investment from emerging markets to Africa : the HRM context
Full text linkIn this article, we explore what determines the decisions of emerging-market multinational corporations (MNCs) to invest in Africa and whether this is any different from their counterparts in mature markets, focusing on the HRM context. More specifically, we explore the effect of potential host-country wages, local capabilities, and the relative rights of owners versus workers on foreign direct investment (FDI) decisions, as well as other relevant factors such as mineral resources and corruption. We found that emerging-market MNCs were not deterred by relatively weak property owner rights (as indeed, was also the case for their counterparts from mature markets); hence, any weakening of countervailing worker rights is unlikely to unlock significant new FDI. However, emerging-market MNCs were more likely to invest in low-wage economies and did not appear to be concerned by local skills gaps; the latter would reflect the relative de facto ease with which even partially skilled expatriate labor can be imported into many African countries. At the same time, a reliance on low-wage, unskilled labor, coupled with the extensive usage of expatriates, brings with it a wide range of challenges for the HR manager, which a firm committed to cost-cutting may lack the capabilities to resolve
Foreign direct investment and employment rights in South-Eastern Europe
Full text linkThe dominant neoliberal policy community holds that a reduction in employment rights and social protection is likely to promote economic recovery and growth. It has been suggested that investors are likely to shun countries where such rights are strong; in contrast, radical labour market deregulation is seen as encouraging both local business and multinationals to invest. This study explores whether labour market deregulation in South-Eastern Europe has really encouraged multinationals to invest in the region. We find that the weakening of important aspects of employment rights under the law appears to detract from, rather than encourage, foreign direct investment (FDI). We also show that stronger employment rights are more likely to attract FDI when the host country is located within the European Union. This finding suggests that the complementarities associated with stronger employment rights and more committed labour may offset the overall deterrent effects of the greater regulation associated with EU membership
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