Corporate fixed investment and internal liquidity: Evidence from Greek listed companies

Utilizing a unique panel dataset of 273 listed firms in the Athens Stock Exchange (ASE) we explore the issue of capital market imperfections with respect to access to investment financing. In particular, we investigate the extent to which investment is sensitive to the availability of internal finance. By employing a fixed-effect model, our empirical results indicate a positive association of cash flow and investment, leading to the conclusion of imperfect substitutability between internal and external finance and thus the importance of the former for investment decisions. According to our knowledge, this is the first study covering the specific tremble period of ASE for Greek manufacturing firms

Pacioli’s innovation in accounting : business or academic affairs

According to the accounting literature there is no evidence for earlier use of “doubleentry”, as documented by Luca Pacioli in his Summa de Arithmetica Geometrica Proportioni et Proportionalita (1494), before the 13th century AD. Littleton’s popular thesis links doubleentry to the increased intensity in modern times (as compared with in antiquity) of two (all inclusive) groups of economic and technical “antecedents”, while Hoskin and Macve (1986) explain the articulation of double-entry in early Renaissance as an aspect of the new way of writing the text (“new textuality”), that was being developed around same time in Europe by scholars who saw in it (and in accounting, albeit with no particular interest in double-entry itself then) the potential of new power-knowledge relationships. In this study we attempt to explore if double entry, the innovative method for the accounting technology, is business or academic affairs.peer-reviewe

An investigation of cointegration and casualty relationships between the PIIGS’ stock markets

The aim of this paper is to investigate the relationship of price changes in the southern European E.U. member states through their stock markets and especially among the exchange markets of Portugal, Italy, Ireland, Greece and Spain, known also as the PIIGS countries. More specifically, it is examined whether cointegration and causality relationships exists among the PIIGS’ Stock Markets while by testing these relationships the existence of the Efficient Market Hypothesis (EMH) among these stock markets is also tested. In case of cointegration relationships between these markets it is proved that possible advantages by internationalizing portfolio diversification are limited and further attention must be given for the selection of an internationalized optimal portfolio. It is also wealth mentioning that since 2012 Europe faces a serious economic crisis which is deeper in the member states of the South, so even further attention must be given to the construction of optimal portfolios.peer-reviewe

Λογιστικές καταστάσεις και σύγχρονες ανάγκες για χρηματοοικονομική πληροφόρηση: η περίπτωση των καινοτομικών επενδύσεων

This study was undertaken on the basis of reports in the international research literature that investments in innovation have a higher return compared to conventional investments on the one hand and on the fact on the other that the corresponding information is not distinguishly reported on the financial statements. The investigation of the market to book value index on which market values are reflected confirmed our hypothesis that innovative enterprises stock prices in the Athens Stock Exchange market are higher than those of none innovative. Given however the absence of information regarding such investments on the financial statements these findings underline the inadequacy of the financial reporting and the negative effects on market efficiency from the apparent substitution of the financial statements for other non-official and probably unsafe sources of financial information. The consequence could be more serious to those investors who are not in the position to seek and use efficiently alternative information sources.Η παρούσα έρευνα αναλήφθηκε με αφορμή αναφορές στην σύγχρονη διεθνή βιβλιογραφία ότι οι καινοτομικές επενδύσεις έχουν υψηλότερες συγκριτικά επιδόσεις από τις μη καινοτομικές αφενός και αφετέρου την έλλειψη από πλευράς χρηματοοικονομικών λογιστικών καταστάσεων σχετικής πληροφόρησης που να καλύπτει μια τέτοια σύγχρονη επιχειρηματική δραστηριότητα σημαντικούεπενδυτικού ενδιαφέροντος. Ο έλεγχος ενός αντιπροσωπευτικού χρηματοοικονομικού δείκτη MK/BV στον οποίο κατ’ εξοχήν αποτυπώνονται οι αποτιμήσεις μετόχων από την Αγορά απέδειξε πράγματι ότι οι καινοτομικές επιχειρήσεις του Χρηματιστηρίου Αθηνών αποτιμώνται υψηλότερα σε σχέση με τις μη καινοτομικές. Δεδομένης όμως της έλλειψης σχετικής πληροφόρησης στις λογιστικές καταστάσεις ως αναφέρθηκε προηγουμένως το γεγονός αυτό αναδεικνύει την ανεπάρκεια και την υποβάθμιση του θεσμικού ρολού των λογιστικών καταστάσεων άλλα και τις αρνητικές επιπτώσεις στην αποτελεσματικότητα της Αγοράς λόγω της προφανούς υποκατάστασης της θεσμοθετημένης και συστηματικής λογιστικής πληροφόρησης από παράπλευρες μη επίσημες και πιθανόν μη αξιόπιστες πηγές χρηματοοικονομικής πληροφόρησης του επενδυτικού κοινού. Το πρόβλημα καθίσταται εντονότερο για τους επενδυτές εκείνους οι οποίοι για διάφορους λόγους αδυνατούν να αναζητήσουν ή και να χρησιμοποιήσουν αποτελεσματικά άλλες πήγες πληροφόρησης

Crude Oil Price Shocks and European Stock Markets during the COVID-19 Period

This paper investigates the interrelations between stock returns and crude oil prices for European oil-importing/exporting countries. A vector autoregression (VAR) model is applied to estimate the significance of stock market responses to changes in oil prices during the pandemic period 2019–2021. A Granger causality test is applied to find the direction and the intensity of the relation between crude oil and the indices of the European stock markets. The findings of this paper hold with or without the COVID-19 pandemic episode and reveal the interaction between the European stock markets and the crude oil prices. The results indicate that in steady periods, before the COVID-19 outbreak and after the announcement of vaccinations, there is no interdependence between crude oil and stock prices, whereas in high volatility periods, the causality from stock markets to oil prices increases and both oil-exporting and -importing countries are equally influenced. These findings have implications both for investors and fund managers

COVID-19 and the Energy Price Volatility

The challenges of the world economy and their societies, after the outbreak of the COVID-19 pandemic have led policy-makers to seek for effective solutions. This paper examines the oil price volatility response to the COVID-19 pandemic and stock market volatility using daily data. A general econometric panel model is applied to investigate the relationship between COVID-19 infection and death announcements with oil price volatility. The paper uses data from six geographical zones, Europe, Africa, Asia, North America, South America, and Oceania for the period 21 January 2020 until 13 May 2021 and the empirical findings show that COVID-19 deaths affected oil volatility significantly. This conclusion is confirmed by a second stage analysis applied separately for each geographical area. The only geographical area where the existence of correlation is not confirmed between the rate of increase in deaths and the volatility of the price of crude oil is Asia. The conclusions of this study clearly suggest that COVID-19 is a new risk component on top of economic and market uncertainty that affects oil prices and volatility. Overall, our results are useful for policy-makers, especially in the case of a new wave of infection and deaths in the future

The Impact of the Disclosed R & D Expenditure on the Value Relevance of the Accounting Information: Evidence from Greek Listed Firms

International audienc

The PIIGS stock markets before and after the 2008 financial crisis: a dynamic cointegration and causality analysis

This paper investigates whether cointegration and causality relationships exist among the stock markets of the Portugal, Italy, Ireland, Greece and Spain (PIIGS) countries during the period 2005 to 2011. To accomplish our objective, we divide the sample period into two sub-periods (1 February 2005 to 30 June 2008 and 1 July 2008 to 30 June 2011). Considering that the financial crisis, which initiated in the USA in 2007, expanded to the EU in mid-2008, we call the first period 'pre-crisis period' and the second 'crisis period'. We apply a battery of tests such as Johansen cointegration, Granger causality, Gregory and Hansen residuals cointegration with regime shifts, fully modified ordinary least squares, as well as a multivariate GARCH model. Conventional cointegration and vector error correction analysis show long and short-run dynamics among PIIGS markets, especially during the crisis period. Further analysis into a regime switching and GARCH framework confirms the existence of cointegrating relationships among these stock markets while there are volatility spillovers between Greece and the rest of the countries. The findings have important implications for portfolio diversification benefits and the systemic nature of the crisis within the PIIGS countries