Scientific Annals of Economics and Business

Cash Flow Dynamics: Amplifying Swing Models in a Volatile Economic Climate for Financial Resilience and Outcomes

Enkeleda Lulaj, Antonio Minguez-Vera — Mon, 23 Sep 2024 00:00:00 +0000

In a volatile economic climate, understanding cash flow dynamics is crucial for companies to improve financial resilience and outcomes. This research focuses on amplifying swing models such as Cash Flow Management (CFM), Solutions (CFS), Dynamics (CFD), Boosters (CFB), Innovations (CFI), and Strategic (CFS) - on cash flow dynamics in a volatile economic climate. By examining the relationship between these models and determinant variables, the study aims to provide insights that can assist companies in achieving financial resilience and outcomes. The data were collected from finance and accounting representatives of 200 companies ((manufacturing (107), services (56), and trade (37)) in Kosovo in 2023 (quarters 1, 2, 3, and the first two months of quarter 4), while processing was done through exploratory factorial, reliability, and multiple regression analyses conducted using SPSS and AMOS software. The results of the study reveal a significant relationship between each cash flow model and the determinant variables. This highlights the importance of these models in comprehending cash flow dynamics within a volatile economic climate. Factors such as optimization strategy clarity, continuous monitoring, effective working capital management, accurate financial decision-making, and technological improvements contribute to positive cash flow. Additionally, precise management of fluctuations, financial advantage, cooperative departmental approaches, and effective communication also play a role in cash flow dynamics. By extending swings models, the study provides valuable insights that can assist firms in achieving financial resilience and overcoming the challenges of a volatile economic environment.

The Antecedents of Utilitarian and Hedonic Motivations for Online Shopping Satisfaction

Ephrem Habtemichael Redda — Wed, 25 Sep 2024 00:00:00 +0000

Empirical studies indicate that utilitarian and hedonic shopping motivations have a profound effect on customer satisfaction in a physical brick-and-mortar shopping environment. Studies have also started to surface which underscore the importance of these motivations in the realm of e-commerce. The study, therefore, seeks to determine the antecedents of utilitarian and hedonic motivations for online shopping satisfaction. A quantitative research method with a descriptive research design was implemented in this study. The data was collected through a survey method from a sample of 215 online shoppers in an emerging economy, South Africa. The study utilised previously validated scales. Multivariate regression analysis was performed to determine the factors that influence utilitarian and hedonic motivations for online shopping satisfaction. The results reveal that information availability, cost saving, wider selection, convenience, and efficiency are the antecedents of utilitarian dimensions that determine online shopping satisfaction, while status, adventure, social shopping, idea shopping, and gratification are considered the antecedents of hedonic motivations of online shopping that influence satisfaction. The results of the study offer insight into why consumers engage in online shopping by determining the factors that influence utilitarian and hedonic motivations. Accordingly, the study offers practical recommendations to e-retailers on how to best serve their customers by focusing on the individual building blocks of utilitarian and hedonic shopping motivations.

Assessment of Cryptocurrencies Integration into the Financial Market by Applying a Dynamic Equicorrelation Model

Graciela Gomes, Mário Queirós, Patrícia Ramos — Wed, 25 Sep 2024 00:00:00 +0000

This work aims to contribute to a deeper understanding of cryptocurrencies, which have emerged as a unique form within the financial market. While there are numerous cryptocurrencies available, most individuals are only familiar with Bitcoin. This knowledge gap and the lack of literature on the subject motivated the present study to shed light on the key characteristics of cryptocurrencies, along with their advantages and disadvantages. Additionally, we seek to investigate the integration of cryptocurrencies within the financial market by applying a dynamic equicorrelation model. The analysis covers ten cryptocurrencies from June 2nd, 2016 to May 25th, 2021. Through the implementation of the dynamic equicorrelation model, we have reached the conclusion that the degree of integration among cryptocurrencies primarily depends on factors such as trading volume, global stock index performance, energy price fluctuations, gold price movements, financial stress index levels, and the index of US implied volatility.

The Nexus between Illicit Financial Flows and Tax Revenue: New Evidence from Resource-Rich African Countries

Joshua Adeyemi Afolabi, Abayomi Samuel Taiwo, Sheu Nurudeen Adebayo — Wed, 25 Sep 2024 00:00:00 +0000

Resource-rich economies, especially those in Africa, are plagued with the resource curse and Dutch Disease syndromes, which undermine the quest for effectively mobilizing domestic resources toward sustainable and inclusive development. Empirical evidence on the role illicit financial flow (IFF) plays in this regard is relatively scarce. Thus, this study evaluates the volume of IFF and its effect on tax revenue in seven resource-rich African countries. Panel data, sourced for the 2009-2021 period, were analysed using the fixed effect and random effect models while the Instrumental Variable Generalised Method of Moment (IV-GMM), a dynamic estimator, was used for robustness check. Findings revealed that IFF has been on the rise and has detrimental effects on the tax revenue of the sampled countries’ national governments. This is inimical to sustainable development. Thus, the governments and policymakers in these countries must develop pragmatic policy and institutional approaches toward tackling the IFF menace.

The Analysis of Human Capital Development, Economic Growth and Longevity in West African Countries

Bosede Olanike Awoyemi, Aderonke Abisola Makanju, Chidera Duru — Wed, 13 Mar 2024 00:00:00 +0000

Human capital is critical in directing all resources to serve people and influencing the productivity of an economy. Human capital can be increased through good health and education. This research examined the effects of human capital development on economic growth and longevity in West Africa. This study was concentrated on four West African countries: Nigeria, Ghana, Burkina Faso, and the Benin Republic. We used panel ordinary least squares (POLS), fully modified ordinary least squares (FM-OLS), and dynamic ordinary least squares (DOLS) for robust analysis to look at how human capital development affects economic growth and longevity over the long term. Life expectancy at birth was employed to evaluate longevity. Before the estimate, correlation, unit root, and cointegration tests were run. According to the findings of this study, human capital development has a 347.5% favorable and significant long-term effect on economic growth. This indicates that enhancing human capital can stimulate economic growth. According to the data, human capital development has a 26.8 percent positive and significant long-term effect on life expectancy at birth. Based on the findings, this study concluded that human capital development has a favorable impact on economic growth and life expectancy at birth in West Africa, demonstrating that developing human capital is advantageous to both growth and life expectancy. As a result, West African governments must increase health and education budgetary expenditures to strengthen human capital.

Shelter in Uncertainty: Evaluating Gold and Bitcoin as Safe Havens Against G7 Stock Market Indices During Global Crises

Yasmine Snene Manzli, Ahmed Jeribi — Tue, 04 Jun 2024 00:00:00 +0000

This paper investigates the hedging and safe haven capacity of gold and Bitcoin against the G7 stock market indices during the COVID-19 pandemic, the Russia-Ukraine military conflict, and the Silicon Valley Bank collapse. Using a novel Quantile-VAR connectedness approach, the results show that, at the median quantile, both gold and Bitcoin act as effective hedges during normal market conditions and strong safe-haven assets during the three crises. Gold emerges as the most prominent safe haven asset, outperforming Bitcoin, especially during the war and the SVB collapse. Among the G7 stock market indices, the Japanese and the American stocks may be used as risk diversifiers during crises. As for the rest of the G7 stocks, they are regarded as “risk-on” investments. Next, we assessed the robustness of our results at various quantiles. We found them to be generally consistent with the outcomes obtained at the median quantile, with one exception related to the S&P500.The results show that the repercussions of the COVID-19 pandemic and the war are much stronger than the American banking crisis.