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1 – 10 of over 1000The digital euro project is the most advanced central bank digital currency (CBDC) plan among Western economies. It promises enhanced strategic autonomy, faster payments and to…
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DOI: 10.1108/OXAN-DB284974
ISSN: 2633-304X
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For critics, the euro-area imposes a one-size-fits-none approach to fiscal and monetary policy. While that applies also to the United States and China, given their regional…
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DOI: 10.1108/OXAN-DB282644
ISSN: 2633-304X
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The Denkov administration that took office in June has set adopting the euro as a top priority, and blames the previous interim government for Bulgaria’s unpreparedness to join…
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DOI: 10.1108/OXAN-DB283145
ISSN: 2633-304X
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Ho Thuy Tien, Nguyen Mau Ba Dang and Ngo Thai Hung
This paper aims to investigate the conditional equicorrelation and cross-quantile dependence between the DeFi, European and GCC currency markets (Oman, Qatar, Bahrain, Kuwait…
Abstract
Purpose
This paper aims to investigate the conditional equicorrelation and cross-quantile dependence between the DeFi, European and GCC currency markets (Oman, Qatar, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates).
Design/methodology/approach
This study applies the GARCH-DECO model and cross-quantilogram framework.
Findings
The findings reveal evidence of weak and negative average equicorrelations between the examined markets through time, excluding the COVID-19 outbreak and Russia–Ukraine conflict, which is consistent with the literature examining relationships in different markets. From the cross-quantilogram model, the authors note that the dependence between DeFi, EURO and GCC foreign exchange rate markets is greatest in the short run and diminishes over the medium- and long-term horizons, indicating rapid information processing between the markets under consideration, as most innovations are transmitted in the short term.
Practical implications
For the pairs of DeFi and currency markets, the static and dynamic optimal weights and hedging ratios are also estimated, providing new empirical data for portfolio managers and investors.
Originality/value
To the best of the authors’ knowledge, this is one of the most important research looking into the conditional correlation and predictability between the DeFi, EURO and GCC foreign exchange markets. More importantly, this study provides the first empirical proof of the safe-haven, hedging and diversification qualities of DeFi, EURO and GCC currencies, and this work also covers the COVID-19 pandemic and the Russia–Ukraine war with the use of a single dynamic measure produced by the GARCH-DECO model. In addition, the directional predictability between variables under consideration using the cross-quantilogram model is examined, which can be capable of capturing the asymmetry in the quantile dependent structure. The findings are helpful for both policymakers and investors in improving their trading selections and strategies for risk management in different market conditions.
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The paper investigates if the process that led to the birth of the Euro Area had a significant impact in homogenizing the capital structure decisions of European firms since the…
Abstract
Purpose
The paper investigates if the process that led to the birth of the Euro Area had a significant impact in homogenizing the capital structure decisions of European firms since the first introduction of the common currency.
Design/methodology/approach
A large sample of firms was constructed, and a Tobit-censored regression model was utilized to investigate the determinants of firms' observed capital structures. The Black–Scholes–Merton model was used to infer market values of assets, as well as the volatility of those values, from the observed market values of equity and the corresponding volatility. The existing differences in national tax rules were considered for estimating firm-specific marginal tax rates.
Findings
It was found that, despite the currency union and the institutional harmonization process, certain factors still play a different role. In particular, the impact of profitability is consistent with the pecking order view in some countries, and with the trade-off theory in others. Assets risk, measured as the annualized volatility of the market enterprise value, is the best predictor of observed leverage ratios. The sector of activity is significant in determining leverage decisions even when assets' risk is taken into account. Despite the monetary union and the increased financial and institutional integration in the Euro Area, the country of origin still plays a significant role in capital structure decisions, suggesting that other country-level factors may affect firms' financing behaviour.
Practical implications
The paper indicates that, despite the long harmonization process of institutions, regulations and public budget required to join the Euro, firms' financing decisions are still affected by country-specific factors once the common currency is introduced. Therefore, new entrant countries in the Euro area should not expect their companies to immediately conform with those located in other countries within the common currency area.
Originality/value
This article investigated the impact of the currency change from national currencies to the Euro on the determinants of capital structure choices. It was shown that, despite the long harmonization process that led to the birth of the Euro Area, national factors still affect firms' financing decisions. This provides guidance for policymakers in countries that are planning to join the Euro about the impact this will have on firms' financing decisions in the entrant country.
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European Parliament committees failed to submit EU legislation authorising the digital euro before the June parliamentary elections. Political reluctance is an obstacle in the…
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DOI: 10.1108/OXAN-DB288533
ISSN: 2633-304X
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Geographic
Topical
Lisa von Wittenhorst zu Sonsfeld and Elisabeth Beusker
The aim of this paper is to determine the needs and preferences of students concerning different areas and attributes of dormitories, taking their financial background into…
Abstract
Purpose
The aim of this paper is to determine the needs and preferences of students concerning different areas and attributes of dormitories, taking their financial background into account.
Design/methodology/approach
A quantitative survey was conducted in the 21 publicly funded dormitories in Aachen (Germany) in 2022 to determine students’ needs and preferences for housing. In total, more than 1,200 students participated in the 10-min online survey.
Findings
The findings show the needs and preferences of students from different financial backgrounds for various areas in the dormitory. These include the location of the dormitory, the outdoor area, the shared spaces, the sanitary facilities (bathroom and kitchen), and the students’ private rooms. The results are divided into needs that all students have regardless of their financial background (“must-haves”) and needs that correspond to individual financial groups (“nice-to-haves”).
Research limitations/implications
The results relate to the medium-sized city of Aachen as a case study in Germany – with an average rent level – and its urban situation. The outcomes are therefore only transferable to a limited extent to cities with different framework conditions, as the needs and preferences of students may differ.
Practical implications
The results serve as a valuable guideline for future development in the field of student housing for different rental segments.
Originality/value
The paper fills a research gap in the identification of current student housing needs and preferences in German dormitories, taking financial backgrounds into account.
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Rafael Borim-de-Souza, Eric Ford Travis, Beatriz Lima Zanoni, Pablo Henrique Paschoal Capucho and Jacques Haruo Fukushigue Jan-Chiba
Through Bourdieusian sociology, this study aims to interpret a globalized symbolic environment ward by the States and dominated by organizations through the States’ Nobilities…
Abstract
Purpose
Through Bourdieusian sociology, this study aims to interpret a globalized symbolic environment ward by the States and dominated by organizations through the States’ Nobilities enticing and the Euro-American influences disseminated by the cultural circuit of capitalism in the inculcation and incorporation of a class habitus conniving with this logic of domination.
Design/methodology/approach
This study has developed a theoretical essay based on the contributions of Bourdieusian sociology to discuss and understand the following concepts and their respective relationships: symbolic environment, globalization, organizations, State, State Nobility, Euro-American influences, cultural circuit of capitalism and class habitus.
Findings
The arguments built throughout this theoretical essay recognized how class habitus on environment contributes to organizations establishing themselves as a space that consolidates and replicates the domination logic. As indicated, the State Nobility is an intermediary element between dominant organizations and the State, as dominated.
Practical implications
This theoretical essay signals that less harmful alliances between organizations, the State Nobility and the State could culminate in social, environmental and economic scenarios provided with more inclusion, diversity and preservation.
Social implications
This study presents an in-depth conceptual analysis to hold power structures responsible as direct and indirect drivers of environmental problems, with their different proportions and severity levels, affecting the planet.
Originality/value
This study proposes an alternative lens to debate and question how much the results presented by the contemporary world order compensate (if in any way) the damage that invades and deteriorate environmental assets.
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Disinflation is underway on both sides of the North Atlantic, but it is not yet deeply entrenched, giving both central banks a reason to delay cuts. The ECB must contend with…
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DOI: 10.1108/OXAN-DB285238
ISSN: 2633-304X
Keywords
Geographic
Topical
Zuzana Szkorupová, Radmila Krkošková and Irena Szarowská
The aim of this chapter is to examine the nominal and real convergence of Czechia. The importance of the convergence of Czechia with the euro area is linked to the future…
Abstract
The aim of this chapter is to examine the nominal and real convergence of Czechia. The importance of the convergence of Czechia with the euro area is linked to the future intention of joining the Economic and Monetary Union after the Maastricht criteria are met. This chapter covers the period from 2004 to 2021. We argue that nominal convergence is relative to the Maastricht criteria, when real convergence focuses on different areas: the Maastricht criteria, gross domestic product (GDP) per capita in purchasing power standards and real GDP growth rate, labour market (minimum labour costs and unemployment rates. Findings suggest that Czechia has reported the strongest real convergence in the area of relative economic level, moderate convergence of labour costs and divergence of unemployment. The nominal convergence analysis suggests that Czechia will not meet the Maastricht benchmarks in the near future and is not ready to join the euro area given its high inflation rate and the state of public finances.
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