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Article
Publication date: 2 July 2024

Jamilu Iliyasu, Suleiman O. Mamman, Attahir B. Abubakar and Aliyu Rafindadi Sanusi

The recent Russia–Ukraine conflict highlights the geopolitical importance of natural gas, especially in Europe. In this light, this study examines the impact of the Russia–Ukraine…

Abstract

Purpose

The recent Russia–Ukraine conflict highlights the geopolitical importance of natural gas, especially in Europe. In this light, this study examines the impact of the Russia–Ukraine conflict on the spread of price bubbles from European natural gas to international energy prices.

Design/methodology/approach

The Generalized Supremum Augmented Dickey-Fuller (GSADF) test is employed to detect the occurrence of price bubble episodes while the Dynamic Logit Model is used to examine price bubble contagion between the two markets. Further, a tri-variate VAR model is used to examine the determinants of the price bubble.

Findings

The findings reveal multiple bubble episodes in both European natural gas and international energy prices. Further, evidence of bilateral contagion between European natural gas and the international energy market is found. In addition, the Russia–Ukraine conflict triggers price bubble episodes in both markets. Finally, a counterfactual analysis suggests that the conflict increases the bubble contagion from the European natural gas market to the international energy market by about 40%. These findings imply that the Russia–Ukraine conflict is a significant driver of high upside risks to bubble occurrence and subsequent contagion to both European natural gas and international energy prices.

Originality/value

To the best of our knowledge, this study contributes new empirical evidence that the Russian–Ukrainian conflict significantly impacts the spread of price bubbles from the European natural gas market to international energy markets.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 16 May 2023

Ghadi Saad

This paper attempts to investigate the impact of the Russia–Ukraine war on the returns and volatility of the United States (US) natural gas futures market.

Abstract

Purpose

This paper attempts to investigate the impact of the Russia–Ukraine war on the returns and volatility of the United States (US) natural gas futures market.

Design/methodology/approach

The study uses secondary data of 996 trading day provided by the US Department of Energy and investing.com websites and applies the event study methodology in addition to the generalized autoregressive conditional heteroscedastic (GARCH) family models.

Findings

The findings from the exponential EGARCH (1,1) estimate are the best indication of a significant positive effects of the Ukraine–Russia war on the returns and volatility of the US natural gas futures prices. The cumulative abnormal returns (CARs) of the event study show that the natural gas futures prices reacted negatively but not significantly to the Russian–Ukraine war at the event date window [−1,1] and the [−15, −4] event window. CARs for the longer pre and post-event window display significant positive values and coincides with the standard finance theory for the case of the US natural gas futures over the Russia–Ukraine conflict.

Originality/value

This is the first study to examine the impact of the Russia–Ukraine war on natural gas futures prices in the United States. Thus, it provides indications on the behavior of investors in this market and proposes new empirical evidence that help in investment analyses and decisions.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 April 2024

Jane Andrew and Max Baker

This study explores a hegemonic alliance and the role of relational forms of accounting and accountablity in the making of contemporary capitalism.

Abstract

Purpose

This study explores a hegemonic alliance and the role of relational forms of accounting and accountablity in the making of contemporary capitalism.

Design/methodology/approach

We use the WikiLeaks “Cablegate” documents to provide an account of the detailed machinations between interest groups (corporations and the state) that are constitutive of hegemonic activity.

Findings

Our analysis of the “Cablegate” documents shows that the US and Chevron were crafting a central role for Turkmenistan and its president on the global political stage as early as 2007, despite offical reporting beginning only in 2009. The documents exemplify how “accountability gaps” occlude the understanding of interdependence between capital and the state.

Research limitations/implications

The study contributes to a growing idea that official accounts offer a fictionalized narrative of corporations as existing independently, and thus expands the boundaries associated with studying multinational corporate activities to include their interdependencies with the modern state.

Social implications

The study traces how global capitalism extends into new territories through diplomatic channels, as a strategic initiative between powerful state and capital interests, arguing that the outcome is the empowerment of authoritarian states at the cost of democracy.

Originality/value

The study argues that previous accounting and accountability research has overlooked the larger picture of how capital and the state work together to secure a mutual hegemonic interest. We advocate for a more complete account of these activities that circumvents official, often restricted, views of global capitalism.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 2 April 2024

Muhammad Muddasir, Ana Pinto Borges, Elvira Vieira and Bruno Miguel Vieira

This study aims to address the macroeconomic factors effect on the travel and leisure (T&L) industry throughout Europe within the context of the Russo-Ukrainian war that have…

Abstract

Purpose

This study aims to address the macroeconomic factors effect on the travel and leisure (T&L) industry throughout Europe within the context of the Russo-Ukrainian war that have started on 24 February 2022. Specifically, top tourist destinations are analysed, such as Spain, France, Italy and Portugal, as well as Europe in general.

Design/methodology/approach

This study adopts the panel regression approach based on the data that is provided on a daily basis, and it covers a period of nearly 14 months, starting on 24 February 2022 and ending on 15 April 2023.

Findings

The findings indicate that the European T&L sector is impacted by macroeconomic variables. Namely, the T&L sector is significantly impacted by interest rates, geopolitical risk, oil and gas, whereas inflation has a muted effect, indicating a comparatively lesser influence on the dynamics of the industry. This research contributes to existing literature by providing one of the first quantitative analyses of how macroeconomic factors impact the European T&L business in the context of a geopolitical conflict.

Research limitations/implications

A study of the Russian–Ukrainian war may be limited by a number of research constraints. The continuing nature of the conflict, the lack of communication between the parties and potential political prejudice are some of these difficulties. Any research on the Russo-Ukrainian war should be done with these limits in mind.

Practical implications

Macroeconomic variables play a significant role on the T&L sector development; therefore, when designing resilience strategies, they need to be accounted for.

Originality/value

To the best of authors’ knowledge, this is one of the first studies to analyse how macroeconomic factors affected the European T&L business using a quantitative approach. The macroeconomic variables that were taken into account in this study included interest rates, inflation, oil and petrol prices, as well as the geopolitical risk index.

Article
Publication date: 5 August 2024

Aritra Ganti and Shubham Singhania

While being integrated together conceptually and practically, the literature on game theory in the context of financial markets lacks a cohesive understanding. This study aims to…

Abstract

Purpose

While being integrated together conceptually and practically, the literature on game theory in the context of financial markets lacks a cohesive understanding. This study aims to systematically scrutinize and analyse the literature of game theory in the context of financial markets, through a systematic literature review.

Design/methodology/approach

A systematic literature-based approach, through the theories, context, characteristics and methodology (TCCM) framework has been applied to 97 articles, extracted and filtered from two databases, Scopus and Web of Science, for a comprehensive review and understanding of the intellectual development in the domain of game theory and financial markets.

Findings

The review highlighted the most utilitarian theories within the literature, the context of research in terms of countries and industries, four themes which characterize the literature, as well as the methodologies and research designs used in this research domain. The paper also uncovered certain essential areas that present scope for further research.

Research limitations/implications

While two of the largest indexation databases have been used, some relevant articles may have been excluded due to the restriction of databases and screening criteria, which may lead to the less exploration of several facets of the domain.

Practical implications

Practically, the paper has implications for multiple stakeholders including traders, businesses and governments. For traders, this paper acts as a guide to entering and understanding the dynamics of financial markets. The review also covers decision-making from the perspective of firms, including venture capitalists. This paper would allow firms to understand how game theory can help influence or analyze the strategic interactions between their stakeholders in terms of information disclosure, or consumers and their behavior to stimuli from the firm’s actions.

Originality/value

To the best of the authors’ knowledge, this study is the first of its kind that attempts to comprehensively provide an overview of the literature on game theory in financial markets. In doing so, this study shall help assess the current state of knowledge in the said field and locate gaps in the literature to propose new research directions.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 19 August 2024

António Miguel Martins, Pedro Correia and Ricardo Gouveia

This paper aims to examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (24 February 2022), the world’s largest oil and gas…

Abstract

Purpose

This paper aims to examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (24 February 2022), the world’s largest oil and gas companies.

Design/methodology/approach

The authors examine the world’s 100 largest listed oil and gas companies at and around the beginning of the military conflict between Russia and Ukraine using an event study methodology.

Findings

The authors observe a positive and statistically significant stock price reaction at and around the military conflict. These results are consistent with the asset pricing perspective. Conversely, the stock market returns of Russian oil and gas companies, as well as those companies that were “forced” to divest in Russia due to corporate activism, exhibit a negative and statistically significant impact from the conflict. These reactions are reinforced or mitigated by company-specific characteristics such as size, profitability and institutional ownership. Finally, the findings indicate that companies engaged in oil and gas exploration and production report abnormally higher returns compared to firms in the other two subsectors of the industry.

Originality/value

The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 9 July 2024

Andrés Oviedo-Gómez, Sandra Milena Londoño-Hernández and Diego Fernando Manotas-Duque

This study aims to assess volatility spillovers and directional connectedness between electricity (EPs) and natural gas prices (GPs) in the Canadian electricity market, based on a…

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Abstract

Purpose

This study aims to assess volatility spillovers and directional connectedness between electricity (EPs) and natural gas prices (GPs) in the Canadian electricity market, based on a hydrothermal power generation market strongly dependent on exogenous variables such as fossil fuel prices and climatology factors.

Design/methodology/approach

The methodology is divided into two stages. First, a quantile vector autoregression model is used to evaluate the direction and magnitude of the influence between natural gas and electricity prices through different quantiles of their distributions. Second, a cross-quantilogram is estimated to measure the directional predictability between these prices. The data set consists of daily electricity and natural gas prices between January 2015 and December 2023.

Findings

The main finding shows that electricity prices are pure shock receivers of volatility from natural gas prices for the different quantiles. In this way, natural gas price fluctuations explain 0.20%, 0.98% and 22.72% of electricity price volatility for the 10th, 50th and 90th quantiles, respectively. On the other hand, a significant and positive correlation is observed in the high quantiles of the electricity prices for any natural gas price value.

Originality/value

The study described the risk to the electricity market caused by nonrenewable source price fluctuations and provided evidence for designing regulatory policies to reduce its exposure in Alberta, Canada. It also allows us to understand the importance of natural gas in the energy transition process and define it as the fundamental determinant of the electricity market dynamic.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 31 May 2024

Yasmine Snene Manzli and Ahmed Jeribi

This paper aims to investigate the safe haven feature of Bitcoin, gold and two gold-backed cryptocurrencies (DGX and PAXG) against energy and agricultural commodities (crude oil…

Abstract

Purpose

This paper aims to investigate the safe haven feature of Bitcoin, gold and two gold-backed cryptocurrencies (DGX and PAXG) against energy and agricultural commodities (crude oil, natural gas and wheat) during the COVID-19 pandemic, the Russia–Ukraine conflict and the Silicon Valley Bank (SVB) collapse.

Design/methodology/approach

The authors use the threshold GARCH (T-GARCH)-asymmetric dynamic conditional correlation (ADCC) model to evaluate the asymmetric dynamic conditional correlation between the return series and compare the diversifying, hedging and safe-haven ability of Bitcoin, gold and the two gold-backed cryptocurrencies (DGX and PAXG) against financial swings in the commodity market during the COVID-19 outbreak, the Russian–Ukrainian military conflict and SVB collapse. The authors also calculate the hedging ratios (HR) and hedging effectiveness index (HE). The authors finally use the wavelet coherence (WC) approach to check our results’ robustness and further investigate the impact of the three crises on the relationship between Bitcoin, gold gold-backed cryptocurrencies and commodities.

Findings

The results show that PAXG serves as a strong hedging instrument while gold, Bitcoin and DGX act as strong diversifiers during normal times. During crises, gold outperforms Bitcoin as a diversifier and a safe haven against commodities. Gold-backed cryptocurrencies also exhibit strong performance as diversifiers and safe havens. HR results indicate that Bitcoin and DGX are more cost-effective for commodities risk mitigation than gold and PAXG. In terms of hedging effectiveness, gold and PAXG emerge as the best hedging instruments for commodities, while DGX is considered the worst one. Bitcoin shows superior hedging against oil compared to wheat and gas risks. Moreover, the results of the WC approach confirm those of the T-GARCH-ADCC results in both the short and long run.

Originality/value

This paper provides a comprehensive analysis of the diversification ability of gold, Bitcoin and gold-backed cryptocurrencies during different crises (the COVID-19 pandemic, the Russia–Ukraine conflict and the SVB collapse). By taking into consideration gold-backed cryptocurrencies, the authors expand the understanding of safe havens beyond conventional assets.

Details

Journal of Financial Economic Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 15 May 2023

Shujaat Abbas, Valentin Shtun, Veronika Sapogova and Vakhrushev Gleb

The Russian export flow is highly concentrated on few trading partners that results in its high vulnerability to external shock. Furthermore, the Russian–Ukraine conflict and…

Abstract

Purpose

The Russian export flow is highly concentrated on few trading partners that results in its high vulnerability to external shock. Furthermore, the Russian–Ukraine conflict and corresponding western sanctions has enhanced the need of export markets diversification for Russia. Therefore, this study is a baseline attempt to explore determinants of export flow along with identifying potential export markets. This objective is realized by employing an augmented version of gravity model on export flow of Russian Federation to 108 trading partners from 2000 to 2020.

Design/methodology/approach

The augmented gravity model of export flow is estimated by using employing contemporary panel econometrics such as panel generalized ordinary least square estimation technique with cross-sectional weight along with heteroskedasticity consistent white coefficients is employed to explore impact of selected macroeconomic and policy variables. Furthermore, the sensitivity analysis is performed by using panel random effect along with the Driscoll–Kraay standard errors with pooled ordinary least squares (OLS) regression and random effect generalized least square (GLS) estimator techniques. The estimated result of panel GLS technique is subjected to in-sampled forecasting technique to explore potential export markets.

Findings

The findings show that an increase in the income of trading partners and enhancement of domestic production capacity has significant positive impact on Russian export flow, whereas geographic distance has a significant negative impact. Income of trading partners emerged as major determinant of export flow with high explanatory power. Among augmented variables, the real exchange rate reveals a significant positive impact of lower intensity, whereas binary variables for the common border, common history and preferential/free trade agreement show a significant positive impact. The finding of export potential reveals a high concentration of export with existence of large potential for exports across the globe. For instance, many developing countries in Asia, Africa and America reveal high potential for Russian exports.

Practical implications

The findings urge Russian Federation to diversify its export markets by targeting potential export markets. Many emerging developing countries are witnessing a high potential for Russian exports, therefore attempts should be taken to diversify toward them. The expansion of existing transportation facilities along with development of cargo trade can be important policy instrument to realize objective of export diversification.

Originality/value

This study is the first comprehensive analysis that employs augmented gravity model to explore potential export markets for Russian Federation by using panel data of 108 global trading partners from 2000 to 2020. This finding of this study provides a framework of export diversification toward potential markets across the globe.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 July 2024

Antonina Tsvetkova and Britta Gammelgaard

This study aims to explore how operational resilience can be achieved within supply ecosystems in the delicate yet harsh natural environments of the Arctic.

Abstract

Purpose

This study aims to explore how operational resilience can be achieved within supply ecosystems in the delicate yet harsh natural environments of the Arctic.

Design/methodology/approach

An in-depth, multiple qualitative case study of offshore supply operations in Arctic oil and gas field projects is conducted. Data from semi-structured interviews, personal observations and archival materials are analysed through institutional work and logics approaches.

Findings

The findings suggest that achieving social-ecological resilience depends on the interaction between social and natural (irreversible) systems, which are shaped and influenced by various institutional dynamics. Different resilience solutions were detected.

Research limitations/implications

This study develops a comprehensive understanding of how social-ecological resilience emerges in supply ecosystems through institutional dynamics. The study’s empirical basis is limited to offshore oil and gas projects in the Arctic. However, due to anticipated future growth of Arctic economic activities, other types of supply ecosystems may benefit from the study’s results.

Originality/value

This research contributes with empirical knowledge about how social-ecological resilience is created through institutional interaction within supply ecosystems to prevent disruptions of both social and ecological ecosystems under the harsh natural conditions of the Arctic.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

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