Market Instability Research Articles

ESG news, stock volatility and tactical disclosure

Against the backdrop of the increasing importance of ESG investing, our goal is to explore whether ESG-related disclosure timing is tactically managed by listed companies. An international comparison is undertaken on a sample of 199 blue-chips listed firms, located in Europe, Usa and Asia. Using a dataset of 29.724 ESG news over a period of 6 years (2015–2020), we evaluate the disclosure determinants using a Probit model. We find that the probability of negative ESG news disclosure is lower when the stock is experiencing higher returns volatility. This evidence suggests that managers refrain from fuelling market instability and eroding firm’s reputation capital with the disclosure of bad ESG news, adopting a type of hoarding behaviour. Similarly, managers tend to boost positive ESG-related information when the returns volatility is higher, even though the evidence is milder than for bad news. Our findings highlight that the degree of transparency on ESG matters remains incomplete and there are spaces for tactical disclosure. Concerned investors should be aware that their information on sustainability matters might be biased, especially in times of higher volatility.

Exploring market instability of global lithium resources based on chaotic dynamics analysis

Driven by emerging technologies such as batteries in electric vehicles (EVs), global lithium market undergoes significant changes. To explore market instability of global lithium resources subjected to EV development, lithium exploration, and carbon constraints, a model of global lithium markets-electric vehicle development-carbon constraints (GL-EV-CC) is established based on a four-dimensional difference equation feedback system. Accordingly, a detailed analysis strategy by virtue of bifurcation and chaotic theory is investigated, with which some sudden changes and critical points can be obtained to provide some implications in face of the challenges of future market changes. Results show that lithium demand for EVs will evolve from an equilibrium state to a periodic state and finally to a chaotic state with the continuous change of the degree of investment in Research and Development (R&D) of EVs. When the degree of exploration is less than 0.15, attention should be given to the resource exhausted crisis. When the degree of carbon constraint is high, market instability of lithium demand should be fairly concerned, while when the degree of carbon constraint is low, market instability of lithium supply should be focused. Unlike previous studies, chaotic dynamic analysis is employed in this study, and thereby not only a broader sensitivity analysis but also complex dynamic behaviors such as chaotic behavior at the moment of equilibrium can be explored, in which feasible policies can be proposed to control some policy parameters to be within a reasonable range.

COVID Impact On Indian Stock Market And Commodity

The COVID-19 pandemic that broke out in 2019 tremendously affected worldwide monetary markets, especially the products and stock markets in India. This study investigates the pandemic's perplexing repercussions on India's monetary framework. The review looks at the presentation, instability, and swings of the Indian stock market and commodity exchange all through the pandemic. It investigates the short-and long haul impacts of COVID-19 on stock records, individual values, and different products markets like energy, metals, and agribusiness. Everybody on the planet had various troubles because of the new Covid flare-up. One industry that was answerable for numerous worldwide shocks was finance, explicitly the stock and commodity markets. In the different areas of the planet, the two markets answered in special and shifted ways. This was brought about by various elements, including venture conduct, government assistance software engineers, and government activity. This paper dives further into that topic, including worldwide models and examination discoveries. This study researches how the Indian monetary markets answered the new emergency, taking a gander at how regulative choices, public activities, and financial backer mentalities impacted market elements. It likewise assesses how financial backer way of behaving, risk discernments, and exchanging designs are advancing in response to the vulnerability welcomed on by the pandemic.

Profitability, market outlets and constraints to Ghana's pig production

Access to profitable marketing outlets by small-scale pig producers is a major concern in Ghana. This study uncovered the market outlets available to small-scale pig farmers and examined the profitability of these outlets, the factors influencing their choice of these outlets as well as constraints to the marketing of small-scale pig farming in Ghana. It used data collected from 398 small-scale pig farmers in selected districts of six regions in Ghana. Descriptive statistics, income statement and multivariate probit model were used in analyzing the data. The results indicate that small-scale pig farmers in Ghana utilize existing market outlets such as direct sales to consumers, retailers, commission agents and sales through farmer associations. The return on investment implies that small-scale pig production is a profitable venture with sales through farmer associations being the most profitable outlet. We therefore conclude that pig farming, although profitable across all outlets, is most profitable when channeled through farmer associations, with an impressive return on investment of 71.54%. The results of the multivariate probit analyses also revealed that the choice of marketing channel for pig farmers is influenced by price per kg of pigs sold, feed cost, gender, herd size, educational level, association membership, land ownership, credit accessibility, availability of storage facilities and access to market information. Finally, the analysis of marketing constraints revealed that price instability, market instability, and access to market information are the most pressing constraints to pig production in Ghana. The findings suggest that small-scale pig farmers can boost their incomes by developing direct sales through farmer associations to help increase their bargaining power and reap more benefits in the pig value chain. Also, the study recommends that addressing key constraints like price instability by providing access to real-time market information through digital platforms could modernize the small-scale pig farming sector in Ghana.

Экономический анализ как основа поиска направлений снижения себестоимости производимой продукции (работ, услуг) в современных условиях РФ

Reduction of the cost of manufactured products (works, services) as a way to increase financial results, it has always been an attractive, but difficult-to-achieve goal for economic entities. This indicator is influenced not only by internal factors that depend on the enterprise, but also by external factors that affect its activities. Since 2020, such factors have been the unstable economic situation in Russia and the world as a whole, bans, restrictions, inflation, market instability, rising prices for resources, etc. Accordingly, in order to maintain competitiveness and its position in the market, to increase financial results, serious work should be carried out to reduce the cost of production due to internal factors controlled by the economic entity. This work is devoted to substantiating the importance of conducting a competent economic analysis to identify the main directions of reducing the cost of manufactured products (works, services) in the current economic realities. The results of the study can be used for further study of anti-crisis management measures of economic entities.

Frontline resilience in the retail realm: the role of moral disengagement in understanding employee behavior in the post-pandemic uncertainties

In the wake of the pandemic, retail services—especially vulnerable to ethical dilemmas due to heightened market instability—demand a deeper understanding of service employees’ behaviors. This research investigates the impact of market uncertainties on organizational justice and behaviors, with a specific examination of the moderating role of moral disengagement. An online survey was used to collect data from 255 retail service employees. Structural equation modeling (SEM) with the partial least squares (PLS) approach was applied. Findings suggest that market uncertainties influence employees' justice perceptions. Intriguingly, in conditions of high moral disengagement, the relationship between justice perception and citizenship behaviors was strengthened, indicating a nuanced interplay of ethical perceptions amidst uncertain environments. This study is the first attempt to explore the unique role of moral disengagement in understanding frontline employees’ behaviors, which can offer insights into how employees' ethical considerations evolve in complex, uncertain business environments.

Senior official speeches and severe price discontinuities in the foreign exchange market

Purpose This study aims to better understand the effects of speeches as a valuable communication tool for central banks. It extends the analysis of the effects of public speeches on jumps to determine whether individual speakers matter partly because of their name, position or institution. Design/methodology/approach This study detects intraday jumps using a robust-to-jump volatility estimator that accounts for deterministic seasonality. As a result, this study removes spurious jumps that occur when volatility is high and consider the relatively small jumps that occur when volatility is low. After identifying jumps, this study examines their reactions to senior official speeches and macroeconomic news surrounding the US and European Union (EU) financial crises. Findings Despite having the most influential individual speakers, this study finds that the impact of the Federal Reserve (Fed) and European Central Bank (ECB) is mitigated because the two institutions have a relatively small impact on currency jumps. This finding shows that the speaker’s name is more important than his or her institution affiliation. While the Federal Reserve Bank President and Chief Executive, as well as ECB board members, significantly reduce jump sizes, particularly during the EU crisis period, both the Fed Chairman and the ECB President increase the magnitude of the jump in both the US crisis and noncrisis periods, contributing to market instability. Practical implications The implications of the results include international portfolio management, currency derivatives pricing and hedging, risk management and market efficiency. Originality/value The findings contribute to a better understanding of the effects of senior official speech attributes on currency jumps in various economic states. The results raise questions about the speaker’s name, institution and position’s effectiveness in calming markets and reducing uncertainty.

Indian Financial Systems and Stockmarkets During COVID 19- Shape off Post Covid Through AI and Other Digital Tools

Introduction: Apart from the loss of precious lives, COVID-19 pandemic caused setbacks to all the developmental works, progress of the economy of all countries with serious repercussions on financial systems and stock markets. Most economies, including Indian stock markets since recovered from the shock, showing robustness due to stringent regulatory framework, started rebuilding, from the vertical fall. India as a nation had sufficient leeway to respond to the crisis and market instability, due to its inner strength.
 Aim: This is a theoretical study of the reaction of stock markets, also of expansionary monetary policies during pandemic, the resurgence of financial system and recovery of Indian stock markets, with extreme adoption of Digital tools like AI for Algo trading .
 Method: Secondary research methods have been adopted, for analyzing conceptual approaches of regulatory frameworks of the Securities market, Central bank, amid volatility, to draw conclusions. The stock market data (NSE) is subjected to VaR test.
 Findings: The Study finds that country has responded quickly to the outbreak of the crisis by easing capital and liquidity requirements or at least refraining from the previously planned tightening. At the same time, the authors noticed that loan-based measures and minimum reserve requirements were rarely relaxed and risk weights were not changed at all. Digital tools like Algo trading, AI based advisory gained prominence
 Conclusion: The impact of novel coronavirus (COVID-19) pandemic on financial system and the stock markets in India, is significant. But Monetary policy, liquidity operations and aid packages that were offered by the Government have minimized the impact to a large extent and brought the financial systems back onto the rail.
 Key Words: Corona Virus, Financial Markets, Stock market, Algo trade.

Islamic legal perspectives on digital currencies and how they apply to Jordanian legislation.

Background: The industrial transformation requires a speedy shift to financial digitization. One of the needs for financial digitalization in the study of Islamic contracts and Islamic business law is the use of digital platforms with digital currencies. Regarding the merits and downsides of its Sharia restrictions and its halal certification, which is currently under discussion, digital currencies and perks have generated controversy in Jordan and other Islamic countries. Methods: This study intends to analyze the legal foundations of digital currency from Jordanian and Islamic legal perspectives. The descriptive-qualitative research approach was utilized, and data collection processes included documentation and a literature review. All legal possibilities that may be drawn from Islamic law in order to investigate the legality of digital currencies are explored further and used to obtain the conclusions of this study. Results: A review of Sharia reasons and consideration for the wellbeing of the people suggests that digital currencies in their current form are incompatible with it and must adhere to the stipulations of Islamic finance. Therefore, digital currencies are unsuitable as a store of value or wealth due to their erratic swings, lack of purchasing power, and instant responsiveness to any technical problem, technical penetration, or official circumstance. Due to market instability, digital currencies can't be utilized to defer payments, settle debts, or repay loans. Conclusions: Digital currencies are speculative; not real money. Most of those who have this money are speculators seeking a quick payoff. Sharia views digital currency trading as gambling due to its high degree of volatility. Jordan's government should regulate digital currency use to meet demand. Digital currencies must be addressed under e-commerce laws.

Analyzing the Financial Risk Factors Impacting the Economic Benefits of the Consumer Electronic Goods Manufacturing Industry in India

Financial market instability and losses driven by changes in stock prices, currencies, interest rates, and other factors are the primary causes of economic risk. One of the risk types with the highest priority for every business is financial risk. The consumer electronics manufacturing sector’s focus on rising technology is driving important growth and includes manufacturers of smartwatches, stylish home products, and smart speakers. Risks can arise from the inability to meet functional requirements and business expectations throughout the life cycle, from original formation to final disposal, while supplying competitive electronic products. All of this highlights the necessity and potential of thorough study in the field of financial risk in economic growth. With the help of owners and managers of top electronic manufacturing industries in India, this study’s goal is to examine and evaluate several aspects of financial risk in economic benefits. The main factors of the financial risk covered under the study include liquidity risk, market risk, credit risk, and operational risk. Financial risks also arise from a combination of macroeconomic factors, including changing interest rates on the market and the potential for default by sizable businesses or industries. Financial stability is of the utmost importance to a commercial enterprise to maintain its position and status in the commercial environment. All of this demonstrates the value and need for rigorous research in the area of financial risk affecting the performance of the organization. This study intends to analyze several components of financial risk in consumer electronic goods manufacturers in India. Various aspects discussed in the study revolving around financial risk management are an important factor and demand the maximum attention of the organization.

Cost of health problems caused by stock market volatility: An empirical study in Taiwan

This study highlights the often-overlooked health impacts and related costs endured by individual investors due to market volatility. Leveraging Taiwan's unique market characteristics and healthcare system, we underscore the economic repercussions of health degradation induced by market instability. Analyzing daily medical costs for depression and hypertension patients over 11 years reveals the impact of market turbulence. Specifically, a standard deviation increase in daily market volatility aligns with 4% and 12% surges in daily emergency and outpatient spending, respectively. To avert confounding biases, our empirical models account for market regimes and weather factors, and the outcomes are corroborated through robustness tests.

Liquidity spillovers between cryptocurrency and foreign exchange markets

Market liquidity spillover has been studied using fiat and digital currency (cryptocurrency), though separately. In today’s globally connected financial markets, there is interconnectedness among financial assets, as economic agents make decisions involving multiple asset classes. In this paper, we construct daily liquidity measures for five major cryptocurrencies and seven major fiat currencies and examine their interdependence in the time–frequency domain. We find that liquidity connectedness is event-driven and varies with time. Notably, there is an increase in liquidity spillover at the peak of the COVID-19 pandemic, reflecting heightened uncertainty and market instability. We also find that, at the peak of the pandemic, the total spillover index is stronger in the long run than the short run, highlighting a possible flight-to-liquidity during periods of stress. The Euro stands out as the principal net transmitter of liquidity shocks in the short run, while Ethereum plays this role in the long run. Further analysis highlights the role of some economic and financial variables in driving the dynamics of liquidity spillovers and reveals some heterogeneity in the identity of drivers between the short and long run. The results enrich the academic literature by providing evidence of liquidity spillovers between cryptocurrencies and foreign exchange markets during times of stress, which is insightful for traders, investors, and policymakers.

Efficiency of Enterprises in Conditions of Instability of the World Market (by the Example of Mining and Processing Plant “Erdenet”)

The research analyzed the effectiveness of the activity of the mining and industrial complex «Erdenet» at the present stage. The problems of transforming the mining and industrial complex «Erdenet» into an open joint-stock company and the advantages and disadvantages of this process are considered. The authors emphasize how relevant and necessary for study and analysis is the issue of increasing the efficiency of industrial enterprises at the present stage, especially in those conditions when the mining industry of Mongolia is successfully developing, and competition in the world market is intensifying. The instability of the world market of raw mineral resources, the growth of their consumption in the Asian market, the global financial crisis dictate the need to study the optimization of mining enterprises. It becomes important not only to study the world copper market, but also to study ways to reduce future price risks, increase the stability of the financial condition of mining companies. In the article, the authors consider the problems of transforming the Erdenet GOK into an open joint-stock company, the need to introduce hedging, and suggest specific directions for improving the efficiency of enterprises.

더 효율적인 빈곤정책의 역설

The changing socio-economic environment is increasing the instability of the labor market and the working poor, triggering welfare needs. In order to respond to welfare needs, the social security system seeks to improve efficiency and effectiveness and promotes redesign by adopting new digital technologies. In particular, the adoption of real-time information system that can more accurately and quickly respond to the increasing welfare needs is emerging as an ideal form of social assistance. Since 2012, the United Kingdom has adopted and operated integrated assistance called Universal Credit and Real-time Information System as part of welfare reform. However, unlike the expectation that Universal Credit and Real-time Information can reduce poverty by enabling efficient social assistance, side effects are occurring such as reducing salary stability and increasing uncertainty in future income. Therefore, this study examines the paradoxical situation in which Universal Credit and Real-time Information rather increases poverty.

Multi-Criteria Decision-Making in Public Procurement: An Empirical Study of Contractor Selection for Landslide Rehabilitation

When carrying out construction work, identifying the best contractor is a critical component of the project life cycle in the construction industry. The investor must use effective and efficient strategies to create a competitive bidding environment in public projects. The research presented in this paper was conducted to demonstrate the competitive nature of public procurements, where contractors compete to present the best bid and win the contract. To award the contract, the best offer must be selected. Based on different strategies and multi-criteria decision-making approaches this study proposes a method for identifying the most suitable strategy out of eight bidding strategies on four different lots, resulting in the most suitable one for landslide rehabilitation in the Brčko district. The results reveal the optimal approach to follow to minimize time and financial losses in the case of landslide rehabilitation during periods of market instability. Such research findings validate the efficiency of the bidding strategies-based decision-making support. The proposed method allows for compromise on both the completion date and the lowest bid made by the winning contractor.

YELLOW SUKUK UNVEILED: HARNESSING AGRICULTURAL COMMODITY TRADE FOR ISLAMIC FINANCE AND PARADIGM SHIFT IN COMMODITY EXCHANGES

Traditional methods dominate agricultural commodity trade, leading to occasional supply surpluses due to inherent periodicity. The lack of adequate storage systems further compounds the challenge, resulting in price volatility and market instability. To address these issues, introducing licensed Warehousing and a Specialized Commodity Exchange system offers an opportunity to integrate agricultural commodity trade with global markets and establish a robust market structure. This integration involves transforming standardized agricultural products held in licensed warehouses into Electronic Warehouse Receipts (e-WhR), which can serve as essential tools for production, consumption, and investment instruments. Moreover, the innovative concept of "Yellow Sukuk" is introduced, representing a groundbreaking financial instrument that can be utilized within the framework of Islamic Capital Markets alongside conventional bank loan transactions. This study examines the evolution of agricultural commodity trade, spot transactions conducted in Commodity Exchanges, and the fundamental aspects of transactions. By embracing these advancements, the agricultural sector can enhance its efficiency, liquidity, and overall market depth while embracing the groundbreaking potential of Yellow Sukuk.

Transmission Mechanisms of Economic Shocks in the Eurasian Economic Union

Purpose: The goal of the article is to identify the transmission mechanisms of economic shocks in the EAEU, and determine the impact of external shocks on the key macroeconomic indicators. Theoretical framework: While there is a considerable body of literature on the transmission channels of economic shocks, there remains a need for empirical studies to identify the precise impact of these channels on crucial macroeconomic indicators, including but not limited to GDP, public debt, and exchange rates. Design/methodology/approach: In this article, we have identified three primary sources of transmission channels of shocks that affect the EAEU: global economic growth, instability of the international stock market, and volatility in raw material markets. To analyze the impact of these channels on macroeconomic indicators, we developed a panel vector autoregression model using 29 indicators for five countries. The model uses quarterly data from 2010 to 2022. Findings: The study revealed that shocks are transmitted to EAEU economies through several channels, including the exchange rate, foreign trade, foreign investments, budget indicators, and inflation. The impacts of changes in raw asset prices and global financial market conditions are observable across all these channels. Ultimately, all shocks have an impact on the rate of economic growth, as well as the government's debt burden. Research, Practical & Social implications: We are proposing a new research agenda and direction, emphasizing the need for empirical studies that align with the economic policy of integration. Such studies will be essential in advancing our understanding of the transmission mechanisms of economic shocks and their impact on the EAEU. Originality/value: Although there are analyses of how economic shocks are transmitted within specific countries, the significance of this research is emphasized by its examination of the EAEU as a cohesive entity.

Rohingya influx and host community: A reflection on culture for leading socioeconomic and environmental changes in Bangladesh

The paper analyses the socioeconomic and environmental changes in the Rohingya refugee camp in Bangladesh. Bangladesh is one of the largest refugee host countries in the world. Due to the refugee inflow, Rohingya and host communities have been experiencing tremendous socioeconomic and environmental changes that hinder their sustainable life. Factors that have resulted in the camp area are market instability, cultivable land decline, pollution, deforestation, water and sanitation crisis, law and order failure, and drug use. All these changes accompany the refugee and host people’s discomfort and suffering. Moreover, some host people might feel unprivileged because they were not considered for relief schemes by donor agencies. A qualitative study was conducted to collect the data using the Case study and Key Informant Interview (KII) methods. Semi-structured interview schedules for the case study and open-ended interviews for the KIIs were used in this study. By illustrating the refugee and host’s socioeconomic and environmental dynamics, we tried to explain the current situation of the camp area. We also tried to shed light on the experiences of both communities regarding inclusiveness and building a cohesive society.

Impacts of contingency factors on the application of strategic management accounting in Vietnamese manufacturing enterprises

Based on contingency theory in the study of strategic management accounting, this study examines the internal and external contingencies of the organization that affect the application of strategic management accounting (SMA) in Vietnamese manufacturing enterprises. Using qualitative and quantitative methodology, qualitative methods are used to make questionnaires, and quantitative methods are used to measure the scale and analyze the impact of each factor. The data used in the study was collected using a survey questionnaire from a sample of 395 managers (directors, deputy directors, chief accountants) and accounting staff with knowledge of management accounting/strategic management accounting in Vietnamese manufacturing enterprises. Based on the collected survey data, we performed a multivariable linear regression analysis with SPSS 20 to test the relationship between the contingency factors and the application of SMA. Regression analysis results show that contingencies such as organization size, competitive intensity, organizational structure (decentralized management), organization’s technology, business strategy, and perception of market instability positively influence the application of SMA in Vietnamese manufacturing enterprises. Therefore, the study provides insight that contributes to a better understanding of the impact of contingency factors on the application of SMA in the context of manufacturing enterprises in emerging economies like Vietnam. This finding is useful for policymakers and business managers in developing and promulgating mechanisms to influence these random variables to motivate enterprises to use more SMA techniques.

Bubble behaviors in nickel price: What roles do geopolitical risk and speculation play?

The stable operation of nickel market provides essential safeguard for the realization of global sustainable energy transition. In the context of prominent geopolitical risks and financial market instability, the explosive dynamics of nickel market price have not been thoroughly investigated. From a boom-bust cycle perspective, this study examines the existence of periodically bubble behaviors in nickel price utilizing the Generalized Supremum Augmented Dickey-Fuller method. The method delivers an innovative consistent date-stamping assessment for the exuberance and collapse of bubble episodes. This paper further probes into the effects of geopolitical risk, speculations, demand, supply and dollar on bubbles through logistic technique. The results find that four boom-bust cycles in nickel price are detected during 1990–2022, which are basically accompanied by extreme market volatility. This finding is in line with the asset pricing model which implies both expected and invisible components exist in asset price. In terms of macroeconomic determinants, nickel demand positively affects the boom-bust behaviors, while nickel supply and dollar dynamics have a negative impact on bubble occurrence. Particularly, geopolitical risk and speculations are proven to be important drivers in boosting the explosiveness of bubbles. To counter the hazardous economic consequences of bubble collapse, policymakers should formulate precautionary policies in the face of complicated geopolitical landscape and volatile capital market environment.