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1 – 10 of 146Yutaro Inoue and Shinsaku Nakajima
This study aims to investigate the relationship between consumer awareness of Zespri International Limited (Zespri™) and its sales promotion in Japan and the recent expansion of…
Abstract
Purpose
This study aims to investigate the relationship between consumer awareness of Zespri International Limited (Zespri™) and its sales promotion in Japan and the recent expansion of New Zealand (NZ) kiwifruit imported into Japan.
Design/methodology/approach
Tweets mentioning Zespri™ were utilised as a proxy of such awareness. They were first summarised using two text-mining techniques: tf-idf scoring and a co-occurrence network graph. Afterwards, the authors estimated a tri-variate vector autoregression (VAR) model consisting of the net imports of NZ kiwifruit in Japan, unit import price and number of tweets. Additionally, the occurrence frequency of tweets with “Kiwi Brothers”, promotional characters for Zespri™’s sales, was added to the model, and a tetra-variate VAR model was estimated. Finally, Granger-causality tests, an estimation of the impulse response function and forecast error variance decomposition was conducted.
Findings
All these variables were found to Granger-cause each other. Furthermore, a shock in the document frequency of “Kiwi Brothers” significantly affected Japan’s kiwifruit imports from NZ, explaining approximately 20% of future imports. Zespri™’s distinctive sales promotion was, thus, found to contribute in part to the recent increase in NZ’s kiwifruit export to Japan.
Originality/value
This paper is the first to apply text-regression methodology to food consumption research; it contributes to food consumption research by proposing a practical way to combine tweets with outcome variables using a time-series analysis.
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Hang Thi Thuy Le, Huy Viet Hoang and Nga Thi Hang Phan
This study investigates the impact of the COVID-19 pandemic on financial stability in Vietnam, a developing country characterized by a bank-based financial system.
Abstract
Purpose
This study investigates the impact of the COVID-19 pandemic on financial stability in Vietnam, a developing country characterized by a bank-based financial system.
Design/methodology/approach
Using a sample of daily data from January 23, 2020 to June 30, 2022, the VECM and NARDL models are employed to study Vietnam’s financial stability in face of the COVID-19 disaster. Following the literature on COVID-19, the authors measure the impact of the pandemic by the number of daily infected cases and the national lockdown. Given the reliance of the Vietnamese government on the banking system to regulate the economy, the authors evaluate financial stability from the interbank market and stock market perspectives.
Findings
The authors find that the pandemic imposes a destructive effect on financial stability during the early time of the pandemic; however, the analysis with an extended period indicates that this effect gradually fades in the long term. In addition, from the NARDL results, the authors reveal an asymmetric relationship between the financial market and the COVID-19 pandemic in both short term and long term.
Research limitations/implications
An implication drawn from this study is that unprecedented health disasters should be resolved by unprecedented stringent countermeasures when conventional methods are ineffective. Although rigorous remedies may increase short-term liabilities, their implementation quickly ceases disease diffusion and helps an economy enter the recovery stage in a timelier manner.
Originality/value
The study is the first to examine the impact of the COVID-19 pandemic on financial stability, via the interbank market lens, in a developing country that relies on the bank-based financial system.
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Evans Kulu, Joshua Sebu and Bismark Osei
Given the relevance of entrepreneurship in nation-building, studies geared towards the promotion of new businesses are crucial. This study aims to contribute to the finance and…
Abstract
Purpose
Given the relevance of entrepreneurship in nation-building, studies geared towards the promotion of new businesses are crucial. This study aims to contribute to the finance and entrepreneurship literature by providing empirical evidence on the role ease of doing business plays in promoting new business establishments amidst financial stability.
Design/methodology/approach
The study used the fixed and random effect estimation techniques as well as the impulse response function to analyse annual panel data covering 53 African countries.
Findings
The results indicate that regulatory quality and access to electricity promote new business establishments. Also, to experience the direct effect of financial stability on new business establishments or entrepreneurship in Africa, the role of the ease of doing business cannot be isolated. The policy implication is that the creation of an enabling business environment is crucial for new business establishments.
Research limitations/implications
The sample only includes countries in Africa. Future or further studies may want to expand the sample size and also consider a comparative analysis where this analysis will be done plus another region so that the differences in findings can be known.
Originality/value
To the best of the authors’ knowledge, this is the first study to investigate the role of ease of doing business on new business establishments in the presence of financial stability in Africa.
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The purpose of this study is to examine the effect of Islamic banks (IBs) and macroeconomic variables on economic growth in Saudi Arabia, the United Arab Emirates, Kuwait…
Abstract
Purpose
The purpose of this study is to examine the effect of Islamic banks (IBs) and macroeconomic variables on economic growth in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh.
Design/methodology/approach
Based on these criteria, 672 observations from 24 IBs in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh were chosen for further investigation. Time series analysis is a well-known method for determining if model variables are stationary and how long-term relationships function through cointegration analysis. This study uses impulse response function (IRF) and variance decomposition (VD) methodologies to demonstrate how each macroeconomic variable shock influences the short-term dynamic path of all system variables.
Findings
Islamic banking promotes economic growth, especially in Saudi Arabia, the UAE, Kuwait, Malaysia, Qatar, Bahrain and Bangladesh. The findings of the Islamic banking VDC test have a direct and long-term effect on economic growth.
Research limitations/implications
The literature on this topic can be improved in a number of ways, including by adopting a more robust method to analyze over a longer time frame. By researching specific financing in various areas of the economy, one can gain a deeper understanding of Islamic financing. This will enable the identification of sectors that contribute to economic expansion. Future research should examine combining nations with pure Islam and dual-banking systems to acquire sufficient data.
Practical implications
This paper has practice and research implications. It recommends adopting the nation’s successful experiment with the Islamic banking system as a model for attaining economic growth through Islamic financing. To replicate this successful experiment, government-based decision-makers and monetary policy experts must collaborate to make Islamic money flows simple and rapid through financial channels that enhance economic growth.
Originality/value
The study of the contribution of Islamic banking to economic growth in developing nations, particularly those with the highest total assets (TAs) and total deposits (TDs) in the world, remains of modest value. To the best of the authors’ knowledge, this is the first study to empirically assess the impact of IBs in developing nations, particularly those with the highest TAs and TDs in the world, on economic growth as measured by gross domestic product (GDP).
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Rafiq Ahmed, Hubert Visas and Jabbar Ul-haq
This study aims to explore the impact of oil prices on housing prices using Pakistani annual data from 1973 to 2021.
Abstract
Purpose
This study aims to explore the impact of oil prices on housing prices using Pakistani annual data from 1973 to 2021.
Design/methodology/approach
The Augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests were used for unit-root testing, whereas the johansen-juselius test was used for cointegration. For the short-run, the error correction model is used and the robustness of the model is checked using the dynamic ordinary least squares (DOLS) and fully modified OLS (FMOLS). The cumulative sum (CUSUM) and CUSUM of Squares tests were used to check the stability of the model, while parameter instability was confirmed by the Chow breakpoint test. Finally, the impulse response function was used for causality.
Findings
According to the findings, rising oil prices, among other things, have an impact on housing prices. Inflation is the single most important factor affecting not only the housing sector but also the entire economy. Lending and exchange rates have a significant impact on housing prices as well. The FMOLS and DOLS results suggest that the OLS results are robust. According to the variance decomposition model, housing prices and oil prices are bidirectionally related. The Government of Pakistan must develop a housing policy on a regular basis to develop the country’s urban housing supply and demand.
Practical implications
It is suggested that in Pakistan, the rising oil prices is a problem for the housing prices as well as many other sectors. The government needs to explore alternative ways of energy generation rather than the heavy reliance on imported oil.
Originality/value
Pakistan has been experiencing rising oil prices and housing prices with the rapid urbanisation and rural–urban migration. The contribution to the literature is that neither attempt (as to the best of the authors’ knowledge) has been made to check the impact of rising oil prices on housing sector development in Pakistan.
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The challenge of predicting changes in aggregate income and stock prices is one that has occupied the research agendas of economists. This paper aims to use the consumption–income…
Abstract
Purpose
The challenge of predicting changes in aggregate income and stock prices is one that has occupied the research agendas of economists. This paper aims to use the consumption–income ratio and the dividend–price ratio to predict future income and stock prices.
Design/methodology/approach
To examine the stability of the consumption–income ratio and the dividend–price ratio, the authors run a two-variable, two-lag reduced-form VAR in the vein of Cochrane (1994), using a lag of each respective ratio as exogenous to the VAR. Additionally, the authors estimate an AR(4) model for income and prices.
Findings
The consumption–income ratio and the dividend–price ratio remain key to understanding future movements in income and stock prices. The consumption–income ratio significantly predicts future income in the USA, and aggregate income is easier to predict than consumption in the VAR model. The dividend–price ratio does not significantly predict future price growth. Consumption and dividend shocks have lasting impacts on income and prices.
Originality/value
The consumption–income ratio and the dividend–price ratio are still key to understanding future movements in income and stock prices. The consumption–income ratio significantly predicts future income in the USA, and aggregate income is easier to predict than consumption in the VAR model. However, the dividend–price ratio does not significantly predict future price growth, a change from previous research from the 1990s, despite the increasing complexity of stock markets. Consumption and dividend shocks have lasting impacts on income and prices and appear to be significant drivers in both the short- and long-run variance in income and prices.
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Jiangnan Qiu, Wenjing Gu, Zhongming Ma, Yue You, Chengjie Cai and Meihui Zhang
In the extant research on online knowledge communities (OKCs), little attention has been paid to the influence of membership fluidity on the coevolution of the social and…
Abstract
Purpose
In the extant research on online knowledge communities (OKCs), little attention has been paid to the influence of membership fluidity on the coevolution of the social and knowledge systems. This article aims to fill this gap.
Design/methodology/approach
Based on the attraction-selection-attrition (ASA) framework, this paper constructs a simulation model to study the coevolution of these two systems under different levels of membership fluidity.
Findings
By analyzing the evolution of these systems with the vector autoregression (VAR) method, we find that social and knowledge systems become more orderly as the coevolution progresses. Furthermore, in communities with low membership fluidity, the microlevel of the social system (i.e. users) drives the coevolution, whereas in communities with high membership fluidity, the microlevel of the knowledge system (i.e. users' views) drives the coevolution.
Originality/value
This paper extends the application of the ASA framework and enriches the literature on membership fluidity of online communities and the literature on driving factors for coevolution of the social and knowledge systems in OKCs. On a practical level, our work suggests that community administrators should adopt different strategies for different membership fluidity to efficiently promote the coevolution of the social and knowledge systems in OKCs.
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Awa Traoré and Simplice Asongu
A promising solution to meet the challenge of sustainability and ensure the protection of the environment consists in acting considerably on the adoption and use of new…
Abstract
Purpose
A promising solution to meet the challenge of sustainability and ensure the protection of the environment consists in acting considerably on the adoption and use of new information and communication technologies. The latter can act on the protection of the environment; completely change manufacturing processes into energy-efficient, eco-friendly techniques or influence institutions and governance. The article attempts to cover shortcomings in the literature by providing a couple of theoretical frameworks and grounded empirical proofs for the dissemination of green technologies and the interaction of the latter with institutional quality.
Design/methodology/approach
The sample is made up of 43 African countries covering the period 2000–2020 and a panel VAR modeling approach is employed.
Findings
Our results show that an attenuation of CO2 emissions amplifies the diffusion of digital technologies (mobile telephones and Internet). Efficiency in the institutional quality of African countries is mandatory for environmental preservation. Moreover, the provision of a favorable institutional framework in favor of renewable energy helps to stimulate environmental performance in African states.
Originality/value
This study complements the extant literature by assessing nexuses between green technology and CO2 emissions in environmental sustainability.
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Florin Aliu, Alban Asllani and Simona Hašková
Since 2008, bitcoin has continued to attract investors due to its growing capitalization and opportunity for speculation. The purpose of this paper is to analyze the impact of…
Abstract
Purpose
Since 2008, bitcoin has continued to attract investors due to its growing capitalization and opportunity for speculation. The purpose of this paper is to analyze the impact of bitcoin (BTC) on gold, the volatility index (VIX) and the dollar index (USDX).
Design/methodology/approach
The series used are weekly and cover the period from January 2016 to November 2022. To generate the results, the unrestricted vector autoregression (VAR), structural vector autoregression (SVAR) and wavelet coherence were performed.
Findings
The findings are mixed as not all tests show the exact effects of BTC in the three asset classes. However, common to all the tests is the significant influence that BTC maintains on gold and vice versa. The positive shock in BTC significantly increases the gold prices, confirmed in three different tests. The effects on the VIX and USDX are still being determined, where in some tests, it appears to be influential while in others not.
Originality/value
BTC’s diversification potential with equity stocks and USDX makes it a valuable security for portfolio managers. Furthermore, regulatory authorities should consider that BTC is not an isolated phenomenon and can significantly influence other asset classes such as gold.
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Steven D. Silver and Marko Raseta
The intention of the empirics is to contribute to the general understanding of investor responses to market price shocks. The authors review assumptions about investor behavior in…
Abstract
Purpose
The intention of the empirics is to contribute to the general understanding of investor responses to market price shocks. The authors review assumptions about investor behavior in response to price shocks and investigate alternative rebalancing heuristics.
Design/methodology/approach
The authors use market data over 40 years to define market shocks. Portfolio rebalancing implements constrained Markowitz mean-variance (MV) heuristics.
Findings
Momentum rebalancing in portfolio management outperforms contrarian rebalancing in the study interval. Sensitivity analysis by decade, sector constraints and proportion of security holdings bought or sold continue to support momentum rebalancing.
Research limitations/implications
The results are consistent with under-responding to price shocks at consensus levels in financial markets. The theoretical background provides a basis for experimental lab studies of shocks of different magnitudes under conditions in which participants have information on the levels of other participants and a condition in which they can only observe their previous estimates.
Practical implications
Managing portfolios in the face of price disturbances of different magnitudes is informed by empirical studies and their implications for investor behavior.
Originality/value
This is the first study the authors can locate that uses market data with alternative rebalancing heuristics to estimate price returns from the respective heuristics over a time interval of 40 years. The authors support the results with sensitivity estimates and consider implications for the underlying agent heuristics in light of background studies.
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