Adaptive Light Control System

An adaptive traffic light system for crossroads is to be developed with the control being the data obtained through fixed cameras attached to the light system. The control itself is to be adaptive as there is no need for collecting data during the time when there is no traffic at all. Thus the problem is to collect data adaptively and control the light system accordingly. The idea, of course, is not to have people wait for unnecessary amount of time along the way, while there is no traffic across roads. Though looks rather reasonable, a very good adaptive strategy and an accompanying algorithm need to be developed. The study group is asked for such an algorithm

Valuation, accounting principles, and classification of assets in the metaverse

This study explores the valuation methods, accounting principles, and asset classification systems needed for accurate financial reporting in the Metaverse. The unique characteristics of virtual assets in the Metaverse pose challenges for traditional valuation methods and require the development of comprehensive and adaptable approaches. This study utilizes qualitative research methods, including in-depth interviews with accounting professionals in Bath and Bristol, UK. Fourteen accountants were selected based on their expertise in accounting and their understanding of the Metaverse. The findings reveal that effective governance, regulatory mechanisms, and community-driven protocols influence asset values in the Metaverse. It is shaped by factors such as engagement, scarcity, and competition. Tailored accounting principles should address legal recognition, accurate tracking, jurisdictional restrictions, and risk management. Compliance with regulations, transparent reporting, and collaboration with regulatory authorities are crucial, alongside integrating innovative technologies like blockchain for robust accounting practices

Behavioral finance impacts on US stock market volatility: an analysis of market anomalies

This study investigates the impacts of behavioral finance on stock market volatility. The primary aims are to explain the reasons behind changes in the S&P 500 price within the context of behavioral finance and to analyze investor behavior in response to these changes. To achieve this, the research employs time-series analysis over a 10-year period, focusing on the S&P 500, real interest rates, consumer confidence, market volatility and credit default swaps while considering the effects of behavioral biases. The findings reveal several significant correlations: rising real interest rates negatively affect stocks due to loss aversion and sentiment. Conversely, higher consumer confidence tends to positively influence the stock market, driven by herding behavior and optimism. Additionally, market volatility shows a negative correlation with the S&P 500, influenced by risk aversion, recency bias and herding behavior. Moreover, an increase in credit default swap rates leads to stock market declines, primarily influenced by risk perception, loss aversion and herding behavior

Factors influencing the profitability of EU banks before and during the financial crisis

This research aims at examining the effect of credit risk on financial performance of the EU banks. Return on Asset (ROA) and Return on Equity (ROE) which are dependent variables were used as financial performance indicators. Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Loan Loss Provision (LLP) and Loan to Debt (LTD) which are independent variables were used as credit risk indicators. This study concludes that Return on Asset and Return on Equity both has been found to have significant effect on profitability. Capital Adequacy Ratio positively impacted banks’ financial performance with the exception of Non-Performing Loan and Loan Loss Provision which were found to have a negative impact on the banks’ profitability. Also, Loan to Debt generally was not significant to explain EU banks’ profitability. Shortly, EU banks profitability has been affected positively with better credit risk of these banks. Additionally, credit risk committees should take Inflation and Gross Domestic Product level into account. While Gross Domestic Product level had a negative impact on EU banks’ profitability, Inflation had a positive effect on the EU banks’ profitability

Determinants of financial literacy and behavioural biases of young adults: the comparison of Bristol, UK and Istanbul

Financial literacy is defined as the combination of financial knowledge, financial behaviour and financial attitude and the ability to use this combination in financial decisions (OECD, 2015). A high level of financial well-being depends on individuals financial literacy level because a high financial literacy level increases the possibility of taking good financial decisions (Lusardi, 2010). However, financial literacy is not the only factor that affects taking accurate financial decisions; at the same time, behavioural biases should be considered. Behavioural biases are systematic errors that keep individuals away from rationality (Shefrin, 2002). The biases might cause unhelpful or even hurtful decisions. Therefore, a high level of behavioural biases negatively affects the financial well-being of individuals (Montier, 2007). In this research, the relationship between financial literacy and behavioural biases among young adults in Bristol, UK and Istanbul, Turkey was examined. A young adult can be defined as an individual within the age range of late teens or early twenties to thirties (Smith, 2018; OECD, 2019). The main aim of the research is to identify whether young adults can be prevented from behavioural biases by increasing their financial literacy. This research contributes to the literature by investigating the relationship between financial literacy and behavioural biases of young adults because this relationship has not been investigated adequately and also different target group have been examined in the literature. In the literature different components have been used in order to measure financial literacy. This research contributes to the literature by identifying the most important components of financial literacy. As a result of the investigation financial knowledge appears to be the most important factor. It also highlights the importance of the application of financial knowledge as another contribution. The critical point is that young adults may not improve their financial well-being unless financial knowledge is used in practices. Another contribution of this research is to reveal the most common behavioural biases among young adults in Bristol, UK and Istanbul. These biases among young adults in Bristol, UK, are over-optimism, anchoring, categorisation, conservatism while framing, cognitive dissonance, the illusion of knowledge, and cue competition in Istanbul. The relationship between financial literacy and behavioural biases was investigated via Structural Equation Modelling (SEM) and ANOVA analysis. The result of the research reveals that there is a positive relationship between financial literacy and behavioural biases. Therefore, a high level of financial literacy does not reduce behavioural biases