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1 – 6 of 6This study is the first to investigate the causal relationship between Bitcoin and equity price returns by sectors. Previous studies have focused on aggregated indices such as…
Abstract
Purpose
This study is the first to investigate the causal relationship between Bitcoin and equity price returns by sectors. Previous studies have focused on aggregated indices such as S&P500, Nasdaq and Dow Jones, but this study uses mixed frequency and disaggregated data at the sectoral level. This allows the authors to examine the nature, direction and strength of causality between Bitcoin and equity prices in different sectors in more detail.
Design/methodology/approach
This paper utilizes an Unrestricted Asymmetric Mixed Data Sampling (U-AMIDAS) model to investigate the effect of high-frequency Bitcoin returns on a low-frequency series equity returns. This study also examines causality running from equity to Bitcoin returns by sector. The sample period covers United States (US) data from 3 Jan 2011 to 14 April 2023 across nine sectors: materials, energy, financial, industrial, technology, consumer staples, utilities, health and consumer discretionary.
Findings
The study found that there is no causality running from Bitcoin to equity returns in any sector except for the technology sector. In the tech sector, lagged Bitcoin returns Granger cause changes in future equity prices asymmetrically. This means that falling Bitcoin prices significantly influence the tech sector during market pullbacks, but the opposite cannot be said during market rallies. The findings are consistent with those of other studies that have established that during market pullbacks, individual asset prices have a tendency to decline together, whereas during market rallies, they have a tendency to rise independently. In contrast, this study finds evidence of causality running from all sectors of the equity market to Bitcoin.
Practical implications
The findings have significant implications for investors and fund managers, emphasizing the need to consider the asymmetric causality between Bitcoin and the tech sector. Investors should avoid excessive exposure to both Bitcoin and tech stocks in their portfolio, as this may lead to significant drawdowns during market corrections. Diversification across different asset classes and sectors may be a more prudent strategy to mitigate such risks.
Originality/value
The study's findings underscore the need for investors to pay close attention to the frequency and disaggregation of data by sector in order to fully understand the true extent of the relationship between Bitcoin and the equity market.
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Despite the widespread prevalence of share pledging by Indian promoters, this area remains out of the researchers’ purview. This study aims to bridge this research gap by…
Abstract
Purpose
Despite the widespread prevalence of share pledging by Indian promoters, this area remains out of the researchers’ purview. This study aims to bridge this research gap by delineating the impact of promoter share pledging on future stock price crash risk and financial performance in India.
Design/methodology/approach
A sample of 257 companies listed on the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index has been analysed using panel (fixed-effects) data regression methodology over 2011–2020. Further, alternative proxies for crash risk and financial performance are adopted to ensure that the study’s initial findings are robust. Finally, the instrumental variable with the two-stage least squares (IV-2SLS) method has also been employed to alleviate endogeneity concerns.
Findings
The results suggest a significantly positive relationship between promoter share pledging and future stock price crash risk in India. Conversely, this association is significantly negative for future financial performance. Moreover, the results hold, even after including alternative proxies of stock price crash risk and financial performance and addressing endogeneity concerns.
Originality/value
Owing to the sizeable equity shareholdings of the promoters, share pledging has remained a lucrative source of finance in India. Despite the popularity, the findings of this study question the relevance of share pledging by Indian promoters considering its impact on aggravating future stock price crash risk and deteriorating future financial performance.
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Thambawita Maddumage Nimali Tharanga, Yatiwelle Koralalage Weerakoon Banda, Narayanage Jayantha Dewasiri and Thelge Ushan Indika Peiris
Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers…
Abstract
Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers must investigate the factors affecting dividend policy by incorporating all the determinants into a single research effort.
Purpose: We examine the dividend policy determinants of Sri Lankan firms, explicitly focusing on the banking, finance, and insurance (BFI) sectors.
Methodology: This study uses the quantitative approach applying the Generalized Method of Moments (GMM) system to examine the dividend policy determinants by obtaining secondary data from 51 listed BFI organisations in Sri Lanka.
Findings: The analysis disclosed that the variables of changes in revenues, firm size, liquidity, corporate tax, business risk, and profitability have a positive relationship with dividend yield, whereas investment opportunities, leverage, change in revenues, corporate tax, and firm size impact positively on the propensity to pay dividends in BFI organisations in Sri Lanka. Our findings opine that managers in the BFI industries should prioritise changing their dividend policies by paying close attention to factors, such as dividend yield, changes in revenue, firm size, liquidity, corporate tax ratio, business risk, and profitability because the dividend policy is critical to retaining current investors and luring new ones.
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Jonathan Passmore and David Tee
This study aimed to evaluate the potential of artificial intelligence (AI) as a tool for knowledge synthesis, the production of written content and the delivery of coaching…
Abstract
Purpose
This study aimed to evaluate the potential of artificial intelligence (AI) as a tool for knowledge synthesis, the production of written content and the delivery of coaching conversations.
Design/methodology/approach
The research employed the use of experts to evaluate the outputs from ChatGPT's AI tool in blind tests to review the accuracy and value of outcomes for written content and for coaching conversations.
Findings
The results from these tasks indicate that there is a significant gap between comparative search tools such as Google Scholar, specialist online discovery tools (EBSCO and PsycNet) and GPT-4's performance. GPT-4 lacks the accuracy and detail which can be found through other tools, although the material produced has strong face validity. It argues organisations, academic institutions and training providers should put in place policies regarding the use of such tools, and professional bodies should amend ethical codes of practice to reduce the risks of false claims being used in published work.
Originality/value
This is the first research paper to evaluate the current potential of generative AI tools for research, knowledge curation and coaching conversations.
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Due to the vital role of innovation for firms to respond to the change and achieve competitive advantage, the purpose of this study is to investigate the influence of…
Abstract
Purpose
Due to the vital role of innovation for firms to respond to the change and achieve competitive advantage, the purpose of this study is to investigate the influence of knowledge-oriented leadership (KOL) on innovation performance (IP) via the mediating role of knowledge sharing (KS). This study also clarifies the KS-IP relationship by exploring the moderating role of market turbulence.
Design/methodology/approach
Analysis of moment structures and structural equation modeling are applied to examine the relationship among the latent factors in the proposed research model using data collected from 281 participants in 112 manufacturing and service firms in Vietnam.
Findings
The findings revealed that KOL serves as a key precursor to foster IP, directly or indirectly, through knowledge-oriented leaders’ effect on tacit and explicit KS behaviors. In addition, the paper highlights the moderating role of market turbulence in strengthening the impact of KS activities on IP.
Research limitations/implications
By highlighting the important role KOL practice for stimulating KS behaviors, this paper provides a valuable understanding and novel approach for firms to improve IP. The research findings support the idea that market turbulence significantly contributes to increasing the effects of KS behaviors on IP.
Originality/value
This study contributes to bridging research gaps in the literature and advances the insights of how KOL directly and indirectly fosters IP via mediating roles of tacit and explicit KS processes under the effects of market turbulence.
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This study investigates the relationships between perceived scarcity, fear of missing out (FOMO) and impulse-buying tendencies (IBT) in the fast fashion context in both scarcity…
Abstract
Purpose
This study investigates the relationships between perceived scarcity, fear of missing out (FOMO) and impulse-buying tendencies (IBT) in the fast fashion context in both scarcity and non-scarcity conditions. Additionally, this study examines whether these relationships vary depending on the type of scarcity messages: limited-quantity scarcity (LQS) and limited-time scarcity (LTS).
Design/methodology/approach
We used written scenarios, and each participant was assigned to one of the experimental or control groups for LQS and LTS conditions. Using a structural modeling approach, we tested the conceptual model and analyzed the data through SmartPLS version 4. We conducted mediating and multigroup (MGA) analysis.
Findings
We found that perceived scarcity directly increases IBT and that FOMO partially mediates this relationship across all samples. The MGA findings also revealed that hypothesized relationships were not significantly different across LQS and LTS groups, suggesting that the effect of scarcity messages may be context specific.
Originality/value
Previous studies have yielded mixed results on the effects of different scarcity messages on consumer behavior. This study contributes to the literature by providing evidence of the direct relationship between perceived scarcity, FOMO and impulse buying in the fast fashion context. The study supports the idea that the effect of different types of scarcity messages is context specific, suggesting that the relationship between scarcity perceptions and consumer behavior may vary depending on the product category and cultural context.
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