Scientific Annals of Economics and Business

Heterogeneous Dependence Between Green Finance and Cryptocurrency Markets: New Insights from Time-Frequency Analysis

Mau Ba Dang Nguyen — 2024-04-06

Green finance is becoming more and more important as a way to fund environmentally friendly initiatives and lower carbon emissions. Green bonds have emerged as a significant financing tool in this context, and it is critical to understand how they interact with other components of the finance ecosystem, such as cryptocurrency and carbon markets, particularly during recent crises such as the COVID-19 outbreak and the Ukraine invasion. This study aims to empirically investigate the lead-lag associations between major cryptocurrency markets and green finance measured in terms of green bonds. For empirical estimation, the wavelet analysis and spectral Granger-causality test are employed to analyze the daily data, covering the period from 2018 to 2023. The results show that the correlation between the returns of the green bond market and cryptocurrencies is not stable over time, which rises from the short- to long-run horizon. However, the co-movements between these assets tend to be different and, in some cases, strong, especially during recent crises. Furthermore, the Granger causality test demonstrates the existence of a bi-directional causality between the prices of the cryptocurrencies and green bonds. These findings have significance for portfolio managers, investors, and researchers interested in investing strategies and portfolio allocation, suggesting that green markets may be used as a hedge and diversification tool for cryptocurrencies in the future.

Tools in Marketing Research: Exploring Emotional Responses to Stimuli

Ahmed Alsharif — 2024-06-04

Electromyography (EMG), galvanic skin responses (GSR), and electrocardiogram (ECG) tools have been used to investigate emotional responses to marketing stimuli, encompassing advertisements, product packaging, and brand logos. However, despite the widespread application of EMG, GSR, and ECG tools in neuromarketing research, a comprehensive synthesis of their collective impact remains conspicuously absent. Addressing this gap is the primary goal of the present review paper, which systematically scrutinizes recent studies employing EMG, GSR, and ECG to assess emotional responses to marketing stimuli. Employing the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol, relevant articles were meticulously extracted from the Scopus database, spanning the years 2009 to 2022, including twenty articles for detailed analysis. The outcomes of this review underscore the unique insights offered by these tools into emotional reactions, emphasizing that their collective utilization can afford a more comprehensive understanding of these intricate processes. This propels advancements in comprehending the pivotal role of emotions in consumer behavior and serves as a guidepost for future research directions in this burgeoning field. Ultimately, this paper aims to furnish a broad understanding and detailed insights into the current trends within neuromarketing research, specifically employing EMG, GSR, and ECG tools.

Impact of Cost of Capital on European Economic Growth: The Role of IFRS Mandatory Adoption

Ghouma Ghouma — 2024-06-26

Since 2005, the International Financial Reporting Standards (IFRS) mandatory adoption in the European Union has played a pivotal role to reduce financing costs which has influenced positively economic growth across member states. Thus, this study examines the effect of Cost of Capital on Economic Growth under IFRS mandatory adoption in 17 European countries between 1994 and 2021 using Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (GMM-system) methods. The findings reveal a positive correlation between the Cost of Capital and Economic Growth under IFRS adoption. Specifically, the model estimates indicate that the Cost of Capital contributes to a 0.58% increase in Economic Growth in the PMG-ARDL framework. Moreover, the GMM-system model underscores the significance of IFRS adoption in reducing the Cost of Capital, leading to a 0.52% increase in Economic Growth. These results provide insights into the benefits of adopting international accounting standards and highlight the importance of institutional and financial factors in shaping the economic impact of adopting accounting standards.

The Importance of Social Capital in Promoting Financial Inclusion: An International Perspective

Lilianne Isabel Pavón Cuéllar — 2024-06-15

This paper quantitatively explores the significance of social capital in enhancing international financial inclusion, with a specific focus on its usage dimension, represented by formal credit coverage. Through panel FGLS (Feasible Generalized Least Squares) and PCSE (Panel Corrected Standard Errors) analysis of a sample comprised of 24 countries for the period 2006 – 2021 and utilizing data obtained from diverse sources, it demonstrates that a country's credit coverage is influenced by both informal and formal social capital while controlling by factors such as access channels to financial products, measures to address asymmetric information and educational levels. The results underscore that, while financial inclusion is promoted through internationally accepted standards, its effectiveness is closely intertwined with the social context of implementation. Furthermore, formal institutions play a crucial role in shaping financial inclusion by fostering innovation, entrepreneurship, and technological advancement, while attitudes to risk and planning time horizons also significantly impact this dynamic. Notably, nations embracing a pragmatic outlook tend to have more viable access to bank loans, whereas risk aversion impedes economic actors´ propensity to engage in credit agreements, even when accessible.

Positions and Delimitations Regarding the Financial Performance - Sustainability Relationship in the Context of Organizational Resilience

Mihaela Neacsu — 2024-06-20

Sustainability can guide the decision-making process of managers in obtaining competitive advantages. Incorporating sustainability criteria into the main managerial strategies of organizations generates long-term profitability. Using Structured Literature Review (SLR) as a research methodology we synthesize the characteristics and differences between financial performance and sustainability in the context of organizational resilience. Therefore, this paper offers a comprehensive structured literature review based on the relationship between the concepts of financial performance, sustainability, and organizational resilience, using research studies from four main databases: Web of Science, Scopus, ScienceDirect, and Springer. In carrying out this study, we identified the current trends in the specialized literature regarding the relationship between financial performance and sustainability in the context of organizational resilience as they were debated in the analysed literature, until the end of September 2023, in 116 papers.

The Effect of Personality Characteristics on the Development of Interpersonal Communication Skills Through One-Time Training

Alon Efrat — 2024-06-27

The importance of interpersonal communication skills in the business environment will only increase as the world undergoes trends of globalization and digitization, as well as various crises. The factors that affect interpersonal skills, such as life experience, situational factors, and individual characteristics, are difficult to isolate. Among the prominent antecedents of interpersonal communication effectiveness are personality characteristics. The current study used one-time training to examine how personality traits and interpersonal skills relate among 127 managers from a wide variety of professions in Israel. The current study confirmed the effect of personality characteristics on interpersonal communication skills, albeit weakly. A significant improvement was found in the Emotional stability following the training. Participating in the training changed the way people associate personality traits with Interaction management. An in-depth study of an intervening variable found that those with low extraversion and high conscientiousness improved assertiveness, empathy, supportiveness, openness to experience, and self-disclosure, in contrast to those with less solid personality characteristics who showed a smaller improvement or even decreased in these skills. Our findings have important implications for increasing the effectiveness of interpersonal skills training.

Exploring Economic Development Strategies for Canadian Indigenous Communities Post-Pandemic

Alex V. Teixeira — 2024-06-05

The COVID-19 pandemic has strongly impacted the Indigenous Canadian economy. Indigenous enterprises exist in every industry, from small proprietorships to major organizations employing thousands of people. The research concerning the effects of such peculiarities on Indigenous corporations is sparse. This research aimed to examine how the pandemic affected development companies by comparing pre-epidemic forecasts to the trajectory of Indigenous-owned firms after two years of the pandemic and analyzing its singularities. The study was conducted by the Canadian Council for Aboriginal Business (CCAB) and supported by mixed methods techniques such as surveys, interviews, and non-participatory observations obtained from ten distinct Canadian Indigenous Economic Development Corporations, revealing a reality in which Indigenous businesses confront significant challenges in terms of access to public finance, human resources, community well-being, company diversification, and innovation. The result compared pre-pandemic forecasts and analyses that found Indigenous enterprises failing to recover and move ahead on company diversification and innovations, public finance, human resources, and sustainable development.

Volatility and Return Connectedness Between the Oil Market and Eurozone Sectors During the Financial Crisis: A TVP-VAR Frequency Connectedness Approach

Lamia Sebai — 2024-06-24

This paper analyzes the returns and volatility connectedness between oil prices and Eurozone sector returns during the global financial crisis. We employ the TVP-VAR frequency connectedness approach with daily data of Brent prices and 18 Eurozone supersector indices from 15 November 2014 to 24 November 2023. Our results show a high average connectedness of the returns and volatilities. Industrial Goods are the largest transmitter contrariwise Media supersector is the largest receiver of shocks on returns. The same finding is for volatility, the result shows that Industrial Goods and Services transmit the highest risk in contrast, the Media has the highest receiver volatility indices. The time-varying connectedness (TCI) of returns and volatilities in both show a drastic increase in March 2020. This increase is a result of COVID-19. Whereas, there has been no rise in connectivity following Russia’s invasion of Ukraine. Our result highlighted that Brent was a net receiver of volatility shocks during the Russian invasion of Ukraine.