Stock markets' integration analysis

Globalization brought increased attention to stock markets throughout the world. As a straightforward consequence of the economic integration between the European country members, the stock markets of these countries are expected to follow a path of steadily increasing integration due to the gradual intensification of the economic and monetary integration. However the establishment of EMU and the introduction of the common currency do not have the same effect on the European stock markets. The members of EMU were at different point of readiness when the final decision had been taken since many countries in EU were already taking part in other kind of integration initiatives. The main aim of this study is to analyze daily data of selected European stock markets in an attempt to point out significant changes in the degree of market integration among different stock markets using different econometric techniques.peer-reviewe

The Recent Financial Bubble: an Overview

The main aim of this paper is to analyse the recent financial crisis and to make recommendations how to handle it in the best possible way. Financial bubbles, since the great depression, have been analysed and some recommendations have been made taking into account the internationalization of the world economy which behaves like a domino. The recent financial crisis in the sub-prime mortgage market creates new problems in the world market with unforeseen continuances. Deflation has been referred to as a possible continuance after a financial bubble because often but not always deflation follows. Deflation often results in financial and economic crises. Financial and economic crises affect the architecture of the monetary system, while a change in the system may affect the role of the dollar, the euro and the yen

Board characteristics, audit committee and audit quality : the case of Indonesia

The purpose of this research is to examine the relationship between board size, number of non-executive directors, the financial expertise of the non-executive directors representing the audit committee and the audit quality. Data from non-financial firms listed in the Indonesian Stock Exchange have been used. To achieve the research objectives, we have used the logit regression. The data of 121 listed firms in a five-year period from 2012 to 2016 is collected from the printed audit accounts available on companies‘ websites. The emergence of corporate governance phenomena has brought upon many structural changes in firms‘ governance structure such as the audit committee role and the audit quality. The second decade which starts with the warmth of subprime crisis has seen a significant development in the code of corporate governance. The role of the audit committee is now significant and being recognized as the solution of prevention of internal fraud. The findings of the study have shown that in non-financial firms listed in the Indonesian Stock Exchange audit committee and board characteristics have significant effect on audit quality. This study will be helpful for students, auditors, policymakers and researchers to understand the impact of corporate governance in audit quality.peer-reviewe

Bank stability : the case of Nordic and non-Nordic banks in Latvia

The banking industry is facing huge challenges due to technology-enabled innovation, to changes in customer preferences, to bank de-risking and to new regulatory initiatives. To go through all these changes, banks need to be stable. The present study contributes to the empirical literature by identifying the determinants of stability of banks in the Latvian Banking Industry. This study covers both bank-specific (endogenous) factors and macroeconomic (exogenous) factors that impact the stability of banks. The data set used in this study is the annual financial statements of Latvian banks operated in the period 2003-2016. Using multivariate regression analysis techniques, we found evidence that credit risk and efficiency ratio have a significant negative impact on banks’ stability, whereas size of the bank, liquidity ratio, profitability, inflation and GDP growth have significant positive impact on bank’s stability. We made comparison of bank-specific variables performance for Nordic-owned and non-Nordic-owned banks. Credit and liquidity risks, as well as efficiency ratio for Nordic-owned banks during the research period were higher, whereas size of the banks and profitability were better. Comparing measurement results of stability of banks, we received that Nordic-owned banks performance between 2003 to 2016 was better than non-Nordic-owned banks performance.peer-reviewe

Public survey instruments for business administration using social network analysis and big data

Purpose: The subject matter of this research is closely intertwined with the scientific discussion about the necessity of developing and implementing practice-oriented means of measuring social well-being taking into account the intensity of contacts between individuals. The aim of the research is to test the toolkit for analyzing social networks and to develop a research algorithm to identify sources of consolidation of public opinion and key agents of influence. The research methodology is based on postulates of sociology, graph theory, social network analysis and cluster analysis. Design/Methodology/Approach: The basis for the empirical research was provided by the data representing the reflection of social media users on the existing image of Russia and its activities in the Arctic, chosen as a model case. Findings: The algorithm allows to estimate the density and intensity of connections between actors, to trace the main channels of formation of public opinion and key agents of influence, to identify implicit patterns and trends, to relate information flows and events with current information causes and news stories for the subsequent formation of a "cleansed" image of the object under study and the key actors with whom this object is associated. Practical Implications: The work contributes to filling the existing gap in the scientific literature, caused by insufficient elaboration of the issues of applying the social network analysis to solve sociological problems. Originality/Value: The work contributes to filling the existing gap in the scientific literature formed as a result of insufficient development of practical issues of using analysis of social networks to solve sociological problems.peer-reviewe

An artificial intelligence and NLP based Islamic FinTech model combining Zakat and Qardh-Al-Hasan for countering the adverse impact of COVID 19 on SMEs and individuals

Pursose: The ongoing Corona virus (COVID 19) pandemic has already impacted almost everyone across the globe. The focus has now shifted from spread of the disease to the economic consequences it will bring to the society. The shortage of production will result into the shortage of supply and consequently will end as loss of jobs and employment for millions of people around the world. Two of the most important section of our society i.e., daily wage laborers and Small and Medium Enterprises (SMEs) will have to bear the major burnt of this crisis. The proposed integrated Artificial Intelligence and NLP based Islamic FinTech Model combining Zakat (Islamic tax) and Qardh-Al-Hasan (benevolent loan) can help the economy to minimize the adverse impact of COVID 19 on individuals and SMEs. Design/Methodology/Approach: The present study explores the possibility of Zakat and Qardh-Al-Hasan as a financing method to fight the adverse impact of Corona virus on poor individuls and SMEs. It provides the solution by proposing an Artificial Intelligence and NLP based Islamic FinTech Model combining Zakat and Qardh-Al-Hasan. Findings: The findings of the study reveals that Islamic finance has immense potential to fight any kind of situation/pandemic. Zakat and Qardh-Al-Hasan, if combined together can prove to be a deadly combination to fight the adverse effect of COVID 19. Practical Implications: To be used as an effective way to support individuals and SMEs in the period during and after the pandemic of COVID 19. Originality/value: There is no study combining Zakat and Qardh Al-Hasan to fight the adverse effect of poor individuals and SMEs. The study will contribute massively to the existing literature and will help the government and civil societies in fighting the economic impact of COVID 19 on individuals and SMEs.peer-reviewe

Concentration‐dependent coulombic effects in travelling wave ion mobility spectrometry collision cross section calibration

RATIONALE: Travelling wave ion mobility spectrometry (TWIMS) is increasingly being used as a method for calculating the collision cross section (CCS) of protein ions. To calculate the CCS of unknown ions, however, the TWIMS device needs to be calibrated using calibrant proteins of known CCS values. The effect of calibrant protein concentration of the accuracy of the resulting calibration curve has not been explicitly studied so far. We hypothesised that at high protein concentrations the ion density within the TWIMS device will be such that ions will experience space charge effects resulting in deviations, as well as broadening, of ion arrival time distributions (ATDs). Calibration curves using these altered ATDs would therefore result in incorrect CCS values being calculated for the protein ions of interest. // METHODS: Three protein CCS calibrants, avidin, bovine serum albumin and β-lactgobulin, were prepared at different concentrations and used to calculate the CCS of a non-calibrant protein. Data were collected on a Synapt G1 ion mobility-mass spectrometer with a nano-electrospray ionisation (nESI) source using capillaries prepared in house. // RESULTS: Increasing the concentration of CCS calibrants caused ATD broadening and shifted the ATD peak tops, leading to a significant increase in calculated CCS values. // CONCLUSION: The concentration of protein calibrants can directly affect the quality of the CCS calibration in TWIMS experiments

Equity fund raising and “creative” accounting practices : indications from Athens stock exchange for the 1999-2000 period

Management sometimes exploits the quest of shareholders for higher return on equity capital, by taking advantage of accounting rules gaps or violating them. The Beneish earnings detection manipulation model, is an attempt to reveal such illegal or at least unethical practices. Evidence regarding the use of “creative” accounting practices, based on that model, during the massive equity fund raising in Athens Stock Exchange for the period 1999-2000, are examined. The results of Beneish model are further invigorated towards that aim, when it is accompanied by the Return on Equity (ROE) decomposition ratios and Altman’s Z score of bankruptcy prediction. The model contributes to more efficient allocation of scarce resources.peer-reviewe

Measuring a bank’s financial health : a case study for the Greek banking sector

The main aim of this article is to demonstrate a holistic framework for measuring a bank’s financial health by classifying its main responsibilities between conformance and performance. Responsibilities are classified into five categories as follows: First, Corporate Financial Reporting (CFR) that integrates General Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS), Securities Exchange Commission (SEC), Financial Services Authority (FSA), and International Accounting Standards (IAS). Second, Risk Management Procedures (RMP), that incorporates methods and directives which arise from Basel I, Basel II, Capital Adequacy frameworks or solvency ratio benchmarks. Third, Corporate Governance (CG), that integrates Sarbanes – Oxley Act, Audit Committees, and Internal Audit Mechanisms. Fourth, Corporate Social Responsibility (CSR), that consists of instructions and standards such as Global Reporting Initiative (GRI) – social and environmental, Social accountability (SA 8000) – working conditions, International Organization for Standardization (ISO 9000). Fifth, Stockholders Value Creation (SVC), that is a set of methodologies and ratios used in order to measure value creation for shareholders such as Strategic and Balanced scorecard, Economic Value Added EVA®, and other business performance management tools. On the other, the Rating Agencies (RA) applies various rating systems in different fields. Based on this framework, the article correlates all qualitative and quantitative components, with the banks’ ratings. The dependent variable is the bank’s financial health score, represented by a dummy variable based on the bank’s rating by the rating agencies and from the relevant value of each bank that arises from its performance in the above mentioned framework of responsibilities. The independent quantitative variables belong to a set of financial, risk and market key ratios and the qualitative variables to a set of dummy variables which describe the above framework. With the use of financial and other published data of the Greek banking sector the article proposes a new model and a procedure for the explanation, management and monitoring of a bank’s financial health.peer-reviewe

The impact of population ageing and social stratification : the case of Latvia

Population ageing and social stratification is widely assumed to have detrimental effects on the economy yet there is little empirical evidence about the magnitude of its effects. The aim of this article is to investigate the relationships between population ageing and social stratification and the state of economy of a small and post-transition economy. We are looking for these relationships and their strength of influence; at what time after shocking these variables reach their original levels. We apply standard Granger (non-) causality tests, VAR (Vector Auto-Regressive), IRF (Impulse Response Function) and the prediction error variance analysis by using quarterly data from 2000 to 2018. Research results show that the changes in the level of GDP per capita and the number of pensions paid imply changes in the number of retired persons. The research results have important contribute to policy debates about the impact of population ageing and social stratification on the state of economy in small and post-transition economy.peer-reviewe