International Financial Market Research Articles

Improvement of financial reporting of organisations in the conditions of digital economy development

The purpose of the study is to investigate the current trends in the development of financial reporting of entities in the context of digitalisation of the economy both at the domestic and global level. The prospects of using XBRL (eXtensible Business Reporting Language) as the main digital format for presenting business reporting were analysed.Methodology. In the work on this article were applied such scientific methods as analysis, collection and processing of primary data, statistical observation and comparison, comparative methods.Originality / value of the study - The study is of value and originality in the context of formation and presentation of financial statements in the Republic of Kazakhstan. The author's approach to this process is unique and has the potential to improve the efficiency and transparency of financial reporting in the country.Results of the study - The results of the study provide valuable information that can be used by various financial market stakeholders, namely national financial regulators in making decisions to develop and improve policies and regulations; to help investors make informed investment decisions; international financial market participants, forecasting currency fluctuations and making strategic decisions; professional associations.

Islamic Capital Market Research in Scopus Indexed Journals Q1: A Review

This study tries to review the research around Islamic stock and Islamic capital market on reputable journals. It uses descriptive statistical analysis based on selected 88 article publications or papers related to Islamic stock, with international journals indexed by Scopus Q1. The entire sample journal publications have been published for ten years from 2009 to 2019. The results show that Islamic stock and capital market research is still dominated by empirical research (90%) rather than concept research (10%). In addition, the average time of journal publication is between 8 and 9 months. There are at least 17 Q1 Scopus journals that publish Islamic capital market and the most research with Pacific Basin Finance Journal, Journal of Business Ethics, Journal of Economic Behavior & Organization, Journal of International Financial Markets, Institutions & Money, Journal of Corporate Finance, and Journal of Banking and Finance. Furthermore, the comparison of quantitative research (88%) is still more than the qualitative approach (12%).

International transmission of the U.S. dollar liquidity shock: The channel of FX borrowing and lending

Access to foreign exchange (FX) liquidity is crucial to the growth and stability of emerging market economies. We examine the impact of U.S. dollar liquidity shocks on firm investments in Korea by constructing a dataset that merges four distinct micro-level data spanning ten years from 2006 to 2015. We trace the path of FX liquidity from the international financial market to Korean banks and subsequently to listed firms. During international liquidity shocks, banks borrow less FX but pay higher interest rates. Weak banks, whose FX borrowing rates are sensitive to these shocks, reduce their FX credit supply to firms. Among the FX loan-reliant firms that are highly productive, those borrowing from weak banks reduce their investments. This channel of FX borrowing and lending accounts for 19% of the decline in the investment of listed firms during the peak of the Global Financial Crisis.

The influence of trade war on the international economic system and its adjustment measures

This paper discusses the influence of trade war on the international economic system and the corresponding adjustment measures. First of all, the trade war has had a negative impact on global economic growth, investment flows, international trade patterns and financial market fluctuations. Secondly, the trade war has caused international investment problems, which has led to the adjustment of the supply chain of multinational companies and the increase of investment uncertainty. Then, the financial market fluctuated and the currency, stock and bond markets were disturbed. Finally, by strengthening international cooperation, promoting trade multilateralism, lowering trade barriers and paying attention to sustainable development, we can meet the challenges brought by trade wars and look forward to establishing a more stable and sustainable international economic system in the future.

Access to the UK Financial Market After the UK Withdrawal from the EU: Disruption, Design, and Diffusion

This article examines the setting of the legal regime governing third country access to the UK financial market, in light of the political, market, and legal disruption associated with the UK withdrawal from the EU. It considers the UK reform context and the priority being given to securing UK financial market competitiveness, identifies a related and significant liberalization of the third country regime, and examines the implications for the UK, the EU, and for international financial market access.

Case Analysis and Future Expectations of Chinese Enterprises Suffering Heavy Losses in the International Futures Market: Take the Bank of China and Tsingshan LME as Examples

Affected by various factors such as COVID-19 epidemic and war, the world economic situation changes more frequently, which leads to increased instability in the international and domestic financial derivatives market. For the substantial changes in the international and domestic financial derivatives market, how to deal with sudden changes and analyze the failure cases in the change of financial derivatives is of far-reaching significance to the rapidly developing domestic financial derivatives market. By taking the Bank of China “crude oil treasure’ margin call liquidation case and Tsingshan LME Nickel Futures Squeeze Case as the core of the study, this paper uses case analysis method to deeply study the possible problems and failures in the futures market under the condition of financial derivatives market instability and puts forward suggestions on how to deal with these problems. This paper analyzes the attributes and characteristics of China’s ‘crude oil treasure’ products and nickel futures products, restores the event process, describes the impact of the event on investors, trading institutions and banks, and puts forward suggestions for improvement. The suggestions in this paper are as follows: First, the company and the regulatory department should strengthen risk supervision and management; Second, companies and investors should improve their professional capabilities.

ТЕНДЕНЦІЇ РОЗВИТКУ ТУРИСТИЧНОГО ГОСПОДАРСТВА УКРАЇНИ У 2020–2023 РОКАХ

The study is devoted to the analysis of the problems and peculiarities of the development of the tourism industry in Ukraine, in the context of the state of war and the unstable political situation, and to the outline of prospects for overcoming them and the sustainable development of the tourism market in the post-war period. The tourism industry is one of the most promising and economically balanced branches of the economy. It has been established that international tourism is a socio-economic, environmental protection tool of global influence, aimed at integrating the state's cultural and historical heritage, intellectual potential and recreational opportunities for health and recovery into the global space, while preserving national authenticity.Its dynamic development is the basis of the steady evolution of the national economy of states and the popularization of globalization processes on the international financial market. A feature of this industry is the use of all resources available to the state, including unprofitable or unprofitable objects.The paper analyzed the theoretical prerequisites for the formation and development of the market of international tourist services, taking into account the socio-economic crisis. An analysis of the current state of the tourist services market of Ukraine and Israel in 2020–2023 was also carried out. As a result of the analysis of the tourist services market of Ukraine, it was determined that tourism, after emerging from the global epidemiological crisis, began to actively recover and showed active annual growth in 2022 in Zakarpattia Oblast by 16%, Lviv Oblast by 46%, and Chernivtsi Oblast by 98%, that is, in the territories of relative safety and peace. It was determined that the tourist market of Ukraine, like other sectors of the economy, is in a state of stagnation in the dominant position of domestic territories, because the annexation of 25% of Ukrainian lands is a global problem for that part of the state, which, in the face of military aggression, is able to build up its own economic potential. Since the expenditure items of the budget during the war only grow, and the opportunity to increase the production and realization of tourist services only decreases. It has been established that the study of the principles, features and regularities of the functioning of international tourism during the socio-economic and military-demographic crisis is extremely numerous.

Empirical Study on the Currency Exchange Market. Determinants on the Exchange Rate of the U.S. Dollars and the Japanese Yen by the Regression Analysis.

It is widely known that in the exchange rate market there are three factors influential to determine the currency exchange rate between the related countries in theory; i.e., the interest rate, inflation, and expectation on the exchange rate. This paper aims to find how the exchange rate between U.S. dollar and Japanese Yen, both of which are widely recognized as major currencies in the international financial market, are affected by the four key variables selected here in this paper related to these three factors under the recent inflationary economic environment; i.e., interest rate yield of the two year treasury bond, inflation rate, and the two moving average of the exchange rate to be considered as rational expectation on the movement of the exchange rate. As result it is our discovery that the selected predicator variables have been influential to the daily volatility and monthly movement of the exchange rate of the Japanese Yen /US $ with evidence the two different models of the regression analysis are able to show the exchange rate are significantly correlated with these four key variables and strongly affected by them. Also, over 30-month study period, the interest rate parity or the purchasing power parity did not hold because of the strong US dollar and the continuous increase in interest rate yield during the rapid inflation in the US economy.

STRATEGIES FOR STRENGTHENING BUSINESS ECONOMIC SECURITY WITH ACCOUNT TO GLOBAL FINANCIAL CHALLENGES

The study focuses on the algorithm of business behaviour under conditions of worsening of its economic security. The algorithm allows businesses to objectively assess the situation regarding financial threats and develop appropriate strategic measures to eliminate them. A system-situational model is proposed with financial actors to evaluate the tendencies of business players' elimination in the international financial markets. The purpose of the research is theoretical and applied approaches to developing strategies for strengthening the economic security of business in the context of the global challenges of the global financial system. To overcome the state of the economic security system imbalance, the dominant external and internal drivers are determined. It was proven that eliminating the negative impact of factors of global financial challenges can balance the system of economic security of business. In order to universalize the measurement of trends in the elimination of business players in international financial markets, a system-situational model was studied, which is based on the consolidation of systemic and situational perceptions of financial actors regarding the interpretation of financial information and adapted to the conditions of investor behaviour on the international financial market. In the course of the study, it was proven that eliminating the negative impact of factors of global financial challenges can balance the system of economic security of business, bring it to the newest stage of evolutionary response and ensure further sustainable financial and socio-economic development of business. The set of used scientific methods for strategizing balancing opportunities in the system of economic security and proposed empirical tools for eliminating negative factors of external and internal influences allow the creation of new scenario approaches to ensuring the strengthening of economic security of business.

Bitcoin in the BRICS: A Decade of Adoption and Economic Impact

The Bitcoin market has expanded its wings and overshadowed the globe at a remarkable speed over its short span of time. Introduced in 2008, this financial innovation possesses properties of both, a currency as well as an asset. Over the past decade, BRICS i.e. Brazil, Russia, India, China and South Africa is playing an increasingly important role in the global economy. Seeking the growing prominence of Bitcoin, the present study aims at exploring its status of Bitcoin in the BRICS nations. Using the secondary data of Google Trend time series, Google Trend country interest point and Bitcoin core software download, its status in BRICS nations is analysed. The findings imply that amongst the BRICS, China and Russia are the economies which are highly embracing this new fintech innovation. This financial mechanism can facilitate increased free flow of capital and international trade, thus,integrating the international financial market to ensure sustainable development of BRICS. 

Инвестиционный потенциал — основа финансового развития промышленного предприятия на международном рынке

Purpose. Studying of necessity investment potential forming for industrial enterprise’s financial development in the Tula region and international market.
 Tasks: 
 - studying of investment and investment potential meaning;
 - researching of investment potential influence on industrial enterprise’s financial development;
 - main factors’ forming of industrial enterprise’s activity development in the Tula region and international financial market.
 Methods. Investment attractiveness’ changing of Center federal district’s regions and including Tula region studies in the article. It is paid attention for analysis of investment attractiveness’ changing in the years, also a comparison is being made investment attractiveness’ positions of different Russian Federation regions. Besides it is analyzed investment attractiveness’ financial development possibility and ability to international market for financial relationships with another enterprise.
 Results. It is conducted analysis investment potential’s influence on Tula region industrial enterprises’ financial development. It is identified that Tula region investment attractiveness didn’t change in 2023 year. It is mined that industrial enterprises work effectively. It is emphasized, that Tula region industrial enterprises’ investment attractiveness’ changing can depend on financial resources’ changing, which is provided this enterprise’s financial development. Also it is established Tula region industrial enterprises’ financial development’s limitations and problems in the national and international market. It is identified that investment strategy forms necessary for industrial enterprise’s quit to the international market.
 Conclusions. Tula region industrial enterprise’s investment potential can develop in case free financial resources. Tula region industrial enterprise can quit to new markets and international market. Industrial enterprise can realize financial development and increase competitiveness position with another enterprise in financial relationships in the international market.

Critically Analysing the Hype of Sandbox in the Context of Fintech

The UK’s financial market is under severe pressure as its proportion in the international financial market is steadily decreasing. Intending to alter this phenomenon and “encourage the development of its FinTech ecosystem,”[i] so that the UK can keep pace with global financial developments, “closing the gap which has opened up between the UK and other global centres,”[ii] the Financial Conduct Authority (FCA) proposed the regulatory sandbox in 2015, which is “an environment in which FinTech businesses can test innovative products, services, business models and delivery mechanisms that stem from engaging in regulated activities.”[iii] Due to its ability to encourage FinTech innovations in companies while preventing consumer disruption, “since its launch in 2016,”[iv] it has rapidly gained popularity and taken the world by storm. However, some have contended that such a hype of the regulatory sandbox contributes to the failure in seriously assessing the benefits and the potential downsides of the instrument. As a result, the regulatory sandbox has now become a controversial topic. Based on these controversies, this essay analyze the regulatory sandbox and the Hype surrounding it and take the stance that the hype about sandbox may not take into account the conditions under which it has been successful and exaggerates the advantages of sandbox, which is not conducive to an objective evaluation.

The place and role of cryptocurrencies in the international financial market

Subject. The article investigates the role of cryptocurrency in the international financial market. Objectives. The aim is to analyze the place and role of cryptocurrencies in the international financial market. Methods. The study rests on logical, historical, and statistical analysis, and methods of comparison, classification, and deduction. Results. The paper defines the concept of cryptocurrency, considers the problem of including cryptocurrencies in the economic system, characterizes the cryptocurrency market at the international level, determines the place and role of cryptocurrencies in the international financial market. Conclusions. Cryptocurrency is a new phenomenon in the global economy. It plays a special role in the investment market. The introduction of cryptocurrency into everyday life is possible only after solving all technical, legal, and economic issues directly related to its circulation. The problem with legal regulation is particularly relevant, since the attitude of governments of different countries to digital assets is constantly changing. This is due to the fact that decentralized systems can be used in the shadow economy, which threatens the stability of the national economy of States. Nevertheless, the development of digital economy cannot be stopped, so it is worth adapting to the new realities of the modern world.

The Impact of the COVID-19 on the International Financial Market

In early 2020, a rampant coronavirus posed a global health threat, endangering lives and economies. The pandemic struck a severe blow to the world's financial markets, exacerbating the vulnerabilities inherent in the interconnected global economy. Economic globalization facilitated swift cross-border transmission of financial risks. Beyond 2021, recurring waves of the pandemic continued to reshape the financial landscape. The ensuing dangers had varying impacts on global trade, currency and interest rate markets, and stocks, as outlined in this article. However, experts generally agree that while anomalies and short-term volatility may arise, they are unlikely to trigger widespread financial collapse. To mitigate potential issues, governments should strategically employ monetary and fiscal policies. These measures can include coordinated macroeconomic regulation to aid business resumption and stability reinforcement for national currencies, such as the RMB. These actions aim to support overall financial market recovery. In conclusion, the year 2020 marked the onset of a global pandemic that endangered lives and disrupted economies worldwide. The ensuing financial repercussions were amplified by the interconnectedness of the global economic system. Although subsequent years witnessed recurrent pandemic challenges, experts believe that while risks are real, they aren't expected to culminate in systemic financial crises. Governments are advised to implement well-calibrated monetary and fiscal strategies to navigate these challenges, fostering business recovery and safeguarding currency stability for the ultimate revival of national financial markets.

Evidence of the internationalization of China's crude oil futures: Asymmetric linkages to global financial risks

Since its launch, China's crude oil futures (COIL) have gradually integrated with the international financial market but undoubtedly face more risks. For the purpose of exploring the influence mechanism between COIL and global risk, this paper uses a series of Granger causality tests to provide more evidence of COIL internationalization. In addition, we focus on exploring whether this influence mechanism has asymmetric characteristics. We choose a comprehensive new indicator, the Global Financial Risk Index (COVOL), to represent global financial risk, and also pay attention to three kinds of global risk refer to international energy, inflation, and financial system uncertainty. First, we find a marked asymmetry in the impact of global risks on COIL, especially energy-related risks, followed by financial system uncertainty. Second, COIL also has a significant asymmetric impact on global financial risks, including COVOL, GOIL, FSI, and EPU. Next, we further explore long-term and short-term changes in these asymmetric relationships. Empirical results have found that most asymmetric patterns exhibit long-term characteristics. Finally, given the potential impact of global extreme events, we provide an in-depth analysis of whether this asymmetric link still holds after the COVID-19 outbreak and the Russia-Ukraine conflict. These findings may provide important implications for improving coil market policy and related investment decisions.

Новые подходы к обеспечению финансовой безопасности в условиях геофинансовых рисков и регионализации

Geopolitical and geo-economic changes have an impact on financial markets, macroeconomic stability and economic development of countries. In such circumstances, states need to develop effective strategies and measures to ensure financial security. One of the aspects that should be taken into account is geofinance risks. They are caused by global economic shifts, such as changes in trade and economic relations between countries, the introduction of sanctions, financial crises, etc. Many States depend on global trade and investment, and the loss of stability in the international financial market can have serious consequences for their financial system and the economy as a whole. Another factor is regionalization. Many countries are increasing economic ties within the framework of regional blocs and associations. This can be useful for stimulating trade and economic growth, but at the same time creates new financial risks. The article examines the development of trends in globalization and regionalization, as well as the role of the Russian Federation in regional associations.

International Financial Markets of the Future: Technological Innovations and Their Impact on the Global Financial System

Today, international financial markets are becoming not only catalysts for global economic growth but also a spectrum of unpredictable challenges and opportunities. The presence of technological revolutions has always determined and influenced the development of the financial sector, determining its ability to adapt to new conditions and changes. Today, among modern innovations, technological progress plays a central role in transformational changes in international financial markets, creating opportunities for efficiency and innovative solutions. The purpose of the study is to establish the theoretical, conceptual, and practical foundations of the impact of technological innovations on the global financial system in the context of international financial market development. To achieve this goal, the study defines the essence of the concepts of “technological innovations” and “international financial market”, systemises the main types of modern technological innovations; provides a perspective overview of the evolution of technological innovations in the context of the international financial market formation, analyses the impact of modern technological innovations on the global financial system, and identifies the main trends that predict the development of technological innovations in the context of the international financial market formation in the future. For the purpose of the study, general scientific methods of cognition were used, including a critical analysis of the existing scientific literature on the topic, comparative analysis, systematisation of practical experience of introducing technological innovations, and the method of establishing cause and effect relationships. The research includes the identification of modern types of technological innovations in the international financial market (blockchain technologies, artificial intelligence of fintech platforms, electronic money and digital currencies, crowdfunding, and PR projects). The study offers its own view on the stages of development and formation of technological innovations in the international financial market, as well as an assessment of the development of modern technological innovations in the financial market, including a forecast for the future. The study presents the main trends that determine the future development of technological innovations in the global financial market. Artificial intelligence, open banking, hyper-personalised banking, blockchain, the Internet of Things, cybersecurity, immersive technologies, digital robots and bots, and quantum computing are defining a new dimension of the financial sector, opening up new opportunities for improving services and optimising processes. The adoption of these technologies will contribute to a more innovative and competitive international financial market that can better meet customer needs and ensure the stability and security of financial transactions. Future research in this area could include a deeper analysis of the impact of specific technological innovations on different segments of the international financial market and the development of adaptation strategies for financial institutions. The research could also expand its scope and explore the relationship between innovation in finance and the global economy.

Market Efficiency in the UK Emerging Financial Markets

The UK financial market system is huge, more clearly divided and more functional. Under the impact of the world financial innovation trend and the increasing competition in the international financial market, the UK financial market has made quite bold financial innovations. The internationalization trend of the UK's emerging financial market, capital market and London foreign exchange market are all strengthening. The efficiency of financial markets has a significant impact on the effective functioning of financial markets and thus on the efficiency of real economic operations. Market efficiency is influenced by a variety of factors. This paper examines market efficiency in detail from the perspectives of resource allocation theory, incomplete information theory, institutional economics theory and behavioral economics theory, and concludes that market efficiency is the result of a combination of factors such as resource allocation, and information, economic behavior. According to the efficient market hypothesis, investment decisions are largely determined by market efficiency. However, even the most developed financial markets in the world today are hardly guaranteed to conform to the perfect competition hypothesis. In summary, the study of market efficiency issues has far-reaching practical implications for the UK emerging financial markets in the transition period.

Dynamic Changes in US Financial Market under Fed's Rate Hike: Past, Present and Prospect

In March 2022, the Federal Reserve began a new round of interest rate hike. Until February 2023, Jerome Hayden Powell, the incumbent chairman of Fed, still indicated that the continuation of the interest rate hike policy is still appropriate. Many significant changes have occurred in the financial markets over the past year, however, limited information is currently available to analyze the impact of the new round of Fed rate hike policy. This paper analyzes data of the U.S. dollar index, the Nasdaq 100 index and multiple secondary sources, applies economic principles such as the J-curve effect, cites examples from Japan, Sri Lanka and China, and finds that the U.S. financial market is in an overall sustained tightening state under the interest rate hike policy, and the international financial market will have to cope with more debt and trade challenges. This papers analysis is of great reference value to the investment decisions of the government, banks, enterprises and individuals.

Now is the Time: The Impact of Linguistic Time Reference on Corporate Default Risk

Synopsis The research problem This paper assesses whether and how people’s perceptions of time — strong future time reference (FTR) versus weak FTR — affect corporate default risk. Motivation or theoretical reasoning Studies have shown that default risk varies across firms, regions, and countries, highlighting the need for a comprehensive understanding of the contributing factors. Traditional studies focus on how firm-level, industry-level, national and international economic and financial variables shape corporate default risk, but they fail to explain cross-country and cross-regional differences in corporate default risk from the perspective of informal institutions, particularly, language. This study takes the first step to examine whether and how future-oriented language shapes corporate default risk. The test hypotheses We first tested whether strong-FTR language decreases corporate default risk. We further tested whether the effect of strong-FTR language on default risk depends on firms’ level of information transparency. In addition, we tested whether the effect of strong-FTR language on default risk depends on a country’s disclosure requirements. Lastly, we tested whether the effect of strong-FTR language on default risk depends on a country’s control of corruption. Target population We find that corporate default risk is significantly higher in regions dominated by speakers of weak-FTR languages, using a comprehensive sample of firms in 36 countries with 180,013 observations spanning from 1988 to 2017. Adopted methodology Ordinary least square regressions were used in this study. Analyses Corporate default risk is measured by two proxies of firm probability of default, following Merton [(1974) Journal of Finance, 29(2), 449–470] and Lee and Lin [(2012) Journal of International Financial Markets, Institutions, and Money, 22(4), 973–989]. Our independent variable is Strong FTR, which equals 1 if a language belongs to the strong-FTR language family, as defined by the European Science Foundation’s Typology of Languages in Europe (EUROTYP) project. If a language does not require “obligatory [FTR] use in (main clause) prediction-based contexts” [Dahl (2000)Tense and Aspect in the Languages of Europe, O. Dahl (Ed.), pp. 309–328], then we put this language into the weak-FTR group. On the other hand, if a language does have the above-mentioned requirement, then it belongs to the strong-FTR group. Findings We found that corporate default risk is significantly higher in regions dominated by speakers of weak-FTR languages. Furthermore, the FTR effect on default risk is weakened in countries with stronger formal institutions (e.g., high disclosure quality, greater transparency, and less corruption). Our results introduce a new explanation for heterogeneity in corporate default risk, provide insights about whether language is an economic institution, and adds to research on the effects of languages on economic and financial outcomes.