The determinants and forecasting methods of the exchange rate euro to dollar

This study investigates the determinants and forecasting methods of the exchange rate euro to dollar. Using an event study approach, the impact of ECB’s and FED’s QE announcements is explored on the exchange rate of euro to dollar, bitcoin to euro and bitcoin to dollar. Taking into account that forex market is the largest and most liquid asset market among all financial markets, a VECM model is constructed in order to investigate the impact of the exchange rate euro to dollar on the environmental degradation. In a period of economic uncertainty due to the pandemic of COVID-19 and digital transportation, an impulse response analysis is employed in order to investigate the volatility and interaction among cryptocurrencies, gold and stock market. To sum up, the results of this study reveal that in periods of great political and economic uncertainty the reaction of exchange rate is unpredictable. The ECB’s and FED’s announcements have great impact on the exchange rate euro to dollar. In the short run, euro to dollar has positive impact on CO2 emissions, while in the long run euro to dollar has a negative impact on CO2 emissions. Using Bibliometrix R-tool, the bibliometric analysis reveals that is of great value the investigation of the volatility of cryptocurrencies and the connectedness with other financial markets (gold, stock market).Η παρούσα διδακτορική διατριβή μελετά τους προσδιοριστικούς παράγοντες και τις μεθόδους πρόβλεψης της συναλλαγματικής ισοτιμίας ευρώ/δολαρίου. Μέσω μιας μελέτης περίπτωσης (event study), μελετάται η επίδραση των ανακοινώσεων της Ευρωπαϊκής Κεντρικής Τράπεζας (ΕΚΤ) και της Ομοσπονδιακής Τράπεζας της Αμερικής (FED) στην ισοτιμία ευρώ/δολαρίου, Bitcoin/ευρώ και Bitcoin/δολαρίου. Λαμβάνοντας υπόψη ότι η αγορά συναλλάγματος είναι η μεγαλύτερη χρηματοοικονομική αγορά, μελετήθηκε μέσω ενός Διορθωμένου Αυτοπαλίνδρομου Διανυσματικού Μοντέλου (VECM) η επίδραση της ισοτιμίας ευρώ/ δολαρίου στην περιβαλλοντική υποβάθμιση μέσω των εκπομπών του διοξειδίου του άνθρακα. Σε μια περίοδο όπου κυριαρχεί τόσο η οικονομική αστάθεια λόγω της πανδημίας, όσο και η επίσπευση του ψηφιακού μετασχηματισμού, μελετάται μέσω μιας κρουστικής απόκρισης (impulse response) η μεταβλητότητα και η αλληλεπίδραση που εμφανίζουν η αγορά των κρυπτονομισμάτων, του χρυσού και η χρηματιστηριακή. Συνοπτικά, τα αποτελέσματα της διατριβής δείχνουν ότι σε περιόδους πολιτικής και οικονομικής αστάθειας, η αντίδραση των ισοτιμιών είναι μη αναμενόμενη. Οι ανακοινώσεις των Κεντρικών Τραπεζών επηρεάζουν έντονα τις ισοτιμίες. Συγκεκριμένα, εξήχθη το συμπέρασμα ότι οι ισοτιμίες δεν επηρεάστηκαν τόσο από την ίδια την ανακοίνωση, αλλά από τον τρόπο με τον οποίο την εξέλαβε και αντέδρασε η αγορά. Η ισοτιμία ευρώ/δολαρίου επηρεάζει θετικά τις εκπομπές του διοξειδίου του άνθρακα βραχυχρόνια και αρνητικά μακροχρόνια. Χρησιμοποιώντας το πακέτο Bibliometrix R-tool, η βιβλιογραφική ανάλυση ανέδειξε ότι η μελέτη της μεταβλητότητας των κρυπτονομισμάτων, αλλά και η αλληλεπίδραση τους με άλλες χρηματοοικονομικές αγορές (χρυσός, χρηματιστήριο) είναι θέματα σημαντικά στην ερευνητική κοινότητα που δεν έχουν μελετηθεί αρκετά

The Impact of Dow Jones Sustainability Index, Exchange Rate and Consumer Sentiment Index on Carbon Emissions

The objective of this study is to examine, over the last 20 years, the short-run and long-run effect on global carbon dioxide (CO2) emissions of the stock returns, exchange rates and consumer confidence. Stock markets contribute to environmental degradation; as a result, we employed, for the first time, Dow Jones Sustainability World Index to use stock returns of socially responsible companies. The euro to US dollar exchange rate is used, as the forex market is the largest financial market and considers it as the largest major pair. The Consumer Sentiment Index is used as a proxy to consumer confidence, since consumer behavior is, also, considered as a major factor linked to environmental degradation. The basic testing procedures employed include the Augmented Dickey–Fuller stationarity test, cointegration analysis and Vector Error Correction Model (VECM). The results establish that stock returns of companies listed on the Dow Jones Sustainability World Index exert a significant negative (positive) impact on the global CO2 emissions in the short (long) term. The inverse, i.e., a significant positive (negative) impact on the short (long) run holds for the both other variables, i.e., US consumers’ confidence and euro to US dollar exchange rates. From the outcomes obtained, policy initiatives that could assist companies to mitigate environmental degradation are recommended

Corporate Social Responsibility: A Business Strategy That Promotes Energy Environmental Transition and Combats Volatility in the Post-Pandemic World

Corporate social responsibility can assist in reducing the noise caused by pricing volatility and a lack of energy-efficient business solutions. The study’s objective is twofold: (i) to investigate the role of corporate social responsibility (CSR) in reducing volatility through the contribution of energy-efficient strategies; (ii) to identify research trends in the field that may indicate future research directions for the development of more dynamic strategies that will help in mitigating the impact of pricing volatility. A five-step bibliometric analysis was applied to address the research question. The findings were visualized by using bibliometric tools such as R Studio, Biblioshiny, and VOSViewer. Chinese academics have been revealed as pioneers in integrating CSR into corporate strategies to reduce volatility and support energy-efficient investments. Moreover, results indicate that financial institutions must embrace a new business model based on both CSR and environmental, social, and corporate governance (ESG) principles. Since very little is known about the interaction structure between CSR and ESG in the mitigation of price volatility, the purpose of this article is to bridge that knowledge gap. The pioneering character of this research—the construction of a business model based on the principles of CSR and ESG—contributes significantly to both the field’s knowledge and the practice of corporate sustainability management

The impact of Dow Jones Sustainability Index, exchange rate and Consumer Sentiment Index on carbon emissions

Summarization: The objective of this study is to examine, over the last 20 years, the short-run and long-run effect on global carbon dioxide (CO2) emissions of the stock returns, exchange rates and consumer confidence. Stock markets contribute to environmental degradation; as a result, we employed, for the first time, Dow Jones Sustainability World Index to use stock returns of socially responsible companies. The euro to US dollar exchange rate is used, as the forex market is the largest financial market and considers it as the largest major pair. The Consumer Sentiment Index is used as a proxy to consumer confidence, since consumer behavior is, also, considered as a major factor linked to environmental degradation. The basic testing procedures employed include the Augmented Dickey–Fuller stationarity test, cointegration analysis and Vector Error Correction Model (VECM). The results establish that stock returns of companies listed on the Dow Jones Sustainability World Index exert a significant negative (positive) impact on the global CO2 emissions in the short (long) term. The inverse, i.e., a significant positive (negative) impact on the short (long) run holds for the both other variables, i.e., US consumers’ confidence and euro to US dollar exchange rates. From the outcomes obtained, policy initiatives that could assist companies to mitigate environmental degradation are recommended.Presented on: Sustainabilit