Journal Of Finance Research Articles

Bridging the Divide

The creation of Public Finance Journal (PF) is the culmination of several years of discussion about how best to address the divide between practitioners’ research needs and academic scholarship. PF’s origin is predicated on the expectation that for a professional discipline such as public administration and the subfield of public budgeting and finance, in particular, there needs to be an easily accessible forum for the dissemination of ideas and solutions. This journal would not be possible without the support of the Government Finance Officers Association, the oversight committees, the editorial board, and those helping with the journal’s management. We are excited about the inaugural edition, where we have reviews of three important books, three thought-provoking research articles, and an article that surveys current research needs in the budget and finance field as expressed by faculty and practitioners.

Editorial: 57th issue of the Journal of Economics, Finance and Administrative Science

Editorial: 57th issue of the Journal of Economics, Finance and Administrative Science

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%).

Biodiversity: A Bibliometric Analysis of Accounting, Economics, and Finance Journals

Biodiversity conservation and ecosystem management are imperative for sustaining life on Earth. Despite the growing recognition of its importance outside the field of environmental sciences, biodiversity has been polemically criticized as a fad, arguing that it has become a passing trend in sustainable finance. To foster a comprehensive understanding, we provide a bibliometric analysis of 334 articles in accounting, economics, and finance (AEF) journals retrieved from the Web of Science database. We conduct science mapping and a co-citation analysis to portrait the scientific landscape and research foci. Consistent with previous studies, we find that mainstream AEF journals are largely silent on biodiversity. In addition, research from Asia is severely underrepresented.

Applied AI for finance and accounting: Alternative data and opportunities

Big data and artificial intelligence (AI) have transformed the finance industry by altering the way data and information are generated, processed, and incorporated into decision-making processes. Data and information have emerged as a new class of assets, facilitating efficient contracting and risk-sharing among corporate stakeholders. Researchers have also increasingly embraced machine learning and AI analytics tools, which enable them to exploit empirical evidence to an extent that far surpasses traditional methodologies. In this review article, prepared for a special issue on Artificial Intelligence (AI) and Finance in the Pacific-Basin Finance Journal, we aim to provide a summary of the evolving landscape of AI applications in finance and accounting research and project future avenues of exploration. Given the burgeoning mass of literature in this field, it would be unproductive to attempt an exhaustive catalogue of these studies. Instead, our goal is to offer a structured framework for categorizing current research and guiding future studies. We stress the importance of blending financial domain expertise with state-of-the-art data analytics skills. This fusion is essential for researchers and professionals to harness the opportunities offered by data and analytical tools to better comprehend and influence our financial system.

Model scan of factors in U.K. stock returns

We use the Bayesian model scan approach of Chib, S., X. Zeng, and L. Zhao. 2020. ‘On Comparing Asset Pricing Models.’ The Journal of Finance 75 (1): 551–577. https://doi.org/10.1111/jofi.12854, and Chib, S., L. Zhao, and G. Zhou. 2023. ‘Winners from Winners: A Tale of Risk Factors.’ Management Science to examine which are the best performing models in a set of 12 candidate factors in U.K. stock returns. We find that a five-factor model has the highest posterior probability across the whole sample period but the posterior probability is low. The best factor model outperforms traditional factor models using a number of metrics. However the best model performs poorly in pricing a set of anomaly portfolios.

Why Do Investors Trade in Equity Derivatives? A Literature Review

The derivatives market is an important asset class and has been found to positively contribute to economic development. It has sparked interest from researchers, policymakers and financial agencies. This article aims to present a literature review that explains the motive of individual investors to trade in equity derivatives. Studies from 1997 to 2023 were extracted from SCOPUS, Emerald and Web of Science using the keywords, and articles were later refined with their motive, research methodology, source of data, journal, year of publication, country-wise articles published and publication source to explore the opportunities for further research. VOS viewer has been used to visualize the author keyword and link among various keywords. This study reviews 51 articles, which were found relevant and have been segregated theme-wise. The motives of investors are categorized as ‘Hedging vs. speculation’, ‘Return vs. risk’ and ‘Gambling’. The findings of the study show that most of the studies are conducted in the USA using discount house data and most of the articles were published in the Journal of Banking and Finance. The findings of the study will be useful to the researchers, practitioners, stock exchanges and regulators by providing the current landscape of the body in this domain.

A Case Study of Semantic “We” in Academic Discourse

The personal pronoun “we” is the most frequently-used self-mention language of the author’s presentation in academic discourse. This study adopts quantitative and qualitative designs, selecting 60 English academic discourses from the Linguistics Journal of The Modern Language Journal and the Economics Journal of The Journal of Finance as samples to build two corpora. With the help of Antconc and Log-likelihood and Chi-Square Calculator 1.0, the present study analyzes the semantic use of the self-mention “we” in the corpus. The finding shows that there are significant differences in the use of “we” between the academic discourse of the two disciplines from the perspective of between disciplines (p < 0.001), and the use of “we” is more frequent in the economic academic discourse. From the perspective of within disciplines, the use of “exclusive we” is more frequent and there is a significant difference in the use of “inclusive we” and “exclusive we” in the academic discourse of the two disciplines. Finally, the study also analyzes the textual function of “we” in academic discourse, intending to provide some help to the understanding and writing of academic discourse in different disciplines, especially Linguistics and Economics.

Portfolio optimization in the light of factor investment: A bibliometric analysis

In this study, we attempted to conduct a comprehensive review of the existing and pertinent literature on the topic of factor investment. We performed Scientometric analysis of studies published in reputable finance journals, i.e., The Journal of Portfolio Management, The Financial Analysts Journal, The Journal of Asset Management and others, during the years 2014 to 2023. To obtain the research data for our study, we gathered and examined a collection of 76 bibliographic records sourced from the Web of Science database. This database provided a comprehensive and reliable source of scholarly publications in the field of finance. To analyze the data, we employed Scientometric networks as part of our analytical approach. Scientometric networks allowed us to explore the relationships and connections between different publications, authors, and keywords within the domain of factor investment. To visualize and present the research findings, we utilized the Bibliometrix package for R, a powerful tool specifically designed for bibliometric analysis. This package enabled us to generate insightful visualizations that showcased the key patterns, trends, and interconnections within the literature on factor investment. By employing Scientometric analysis and leveraging the capabilities of the Bibliometrix package, we aimed to provide a comprehensive overview of the existing scholarly research in this field and contribute to the understanding of factor investment.

The Real Estate Academic Leadership (REAL) Rankings for 2019–2023

This iteration of the rankings is the ninth release of the Real Estate Academic Leadership (REAL) rankings for authors and institutions. The top three real estate journals - The Journal of Real Estate Finance and Economics, The Journal of Real Estate Research, and Real Estate Economics – continue to serve as the basis for these rankings. Trends in the rankings continue to highlight the fact that an author does not need to be in academia to produce high-quality research published in the top real estate journals. Additionally, changes in the rankings reflect stability and staying power of author productivity and institutional productivity. Compared to previous iterations of the rankings, there are fewer changes in institutional rankings based on the movement of a productive individual.

Islamic Economics and Finance: Trend Topics and Thematic Evolution

This study aims to determine the development and trend map of research on the theme of Islamic Economic and finance published by reputable journals. The data used in this study are 2498 public indexed research on the theme of Islamic Economic and finance in the period 1976 to 2021. The map of research development in the field of Islamic Economic and finance is obtained through an export process which will be processed and analyzed using the R Biblioshiny application program. This study shows the results that the number of publications on the development of Islamic Economic and finance research has increased significantly. In addition, the results show that the journal that publishes the most and has the greatest impact on Islamic Economic and finance research is the Journal of Islamic and Middle Eastern Finance and Management. The author with the longest publication track record is Wilson R while the author with the highest quantity of publications is Hassan MK. The educational affiliation that has the most and relevant publications is International Islamic University Malaysi. The results also show that the most used topic keywords are Islamic, Finance, Banking, and Financial.

Research Pattern and Productivityin Behavioral Finance Literature:Insights From BibliometricAnalysis Using R

The use of bibliometric analysis in behavioral finance is relatively new, and techniques such as performance analysis and scientific mapping analysis have simplified the statistical examination of research articles across areas. This article reviews global research patterns in behavioral finance to provide a scientific basis for the study of behavioral aspects of finance. This article investigates the fundamental characteristics of scientific production in the domain and identifies various interrelationships using bibliometric mapping through R. This study employed Biblioshiny as a software tool to conduct performance analysis and scientific mapping of behavioral finance literature. The findings indicate that there has been a significant increase in publications in the last decade; 92.3% of researchers contributed a single article, 6% contributed two articles, 1.5% contributed three documents and 0.1% contributed four papers. Regarding the overall production of articles, India, USA and China were the leading countries. The Journal of Behavioral Finance is found to be the leading journal in the discipline of behavioral finance. The findings also reveal that there has been a significant increase in collaborations and average production of documents throughout the world. The article also addresses implications for financial behavior and can act as a basis for future research trends.

BIBLIOMETRIC ANALYSIS OF SHARIAH COMPLIANT CAPITAL ASSET PRICING MODELS

This study conducts a bibliometric analysis of the literature on shariah compliant asset pricing based on Scopus-indexed publications. The data on publications are collected employing a search string encompassing various keywords related to Islamic finance and asset pricing.  Simple statistical techniques are applied, complemented by the utilization of VOS viewer software to analyze document trends by year, country, source, and patterns of collaboration among authors, co-citations, and keywords co-occurrence. The bibliometric analysis reveals a proliferation of publications across 127 journals, with the Pacific Basin Finance Journal being the most prominent. Collaboration among authors spans 56 countries, with Malaysia emerging as a key contributor. Notably, keywords like "Islamic finance" and "Shariah-compliant" have seen increased importance in recent years. The statistical results demonstrate a substantial surge in Scopus-indexed publications related to Shariah-compliant compliant Capital Asset Pricing Models, particularly in the past five years, reflecting the growing popularity and research opportunities within Islamic finance and asset pricing.

History of Tribology in Finland 1881 – 2023 and the Finnish Society for Tribology 1977 - 2023

The field of Tribology defined as the “science and technology of interacting surfaces in relative motion, that is friction, lubrication and wear” was introduced to the scientific community in a UK governmental report 1966. UK experts and scientists introduced this new approach to solve industrial problems in engineering design, material technology and lubricant chemistry to Finnish colleagues in the late 1970s. The foundation of the Finnish Society for Tribology 1977 boosted academic and technological activities in the area. Tribology as a topic was introduced in the Finnish universities. Investments were made in collaborative research activities with universities, research centers and industry involved. The international collaboration expanded and the Finnish tribologists initiated and started the 1st NORDTRIB regional tribology conference series in Tampere 1984 and hosted the worldwide 5th EUROTRIB International Tribology Congress in Helsinki 1989. The Finnish Journal of Tribology was established 1982. Large joint research activities were generated especially with the Nordic and European countries, Soviet Union and China. Internationally recognized top research groups were initiated and flourished in Tampere and Helsinki on the topics of abrasive, slurry-erosion and fretting wear; engineering ceramics; thin coating tribology; biotribology; computational modelling in tribology; and calculations on global economic and environmental impact of tribology. This article is modified from the report which the Finnish Society for Tribology contributed to the project “History of Science in Finland” by The Federation of the Finnish Learned Societies (Tieteellisten Seurain Valtuuskunta, TSV).

TREN PENELITIAN OPTION PRICING: ANALISIS BIBLIOMETRIS

The purpose of this research is to present a comprehensive overview of options pricing research and to demonstrate existing themes in the field. This research also tries to provide direction to academics in determining option prices in the future. The method used is bibliometric analysis. This analysis includes 5,367 papers from the Scopus database accessed over a 38-year period (1985-2023) and published in the top 50 finance and economics, econometrics, and financial journals. This number dropped to 913 articles after using the keyword “option pricing” as the primary search term in the “title, abstract, keywords” column. Tabular and visual representations of this analysis indicate that options pricing is a topic that has been thoroughly studied, but the sharp increase in the number of publications (56) for 2015 indicates that interest in this area is expanding. Additionally, affiliate figures show that most of the research was conducted in the United States, with China coming in second. This suggests that there may be potential to investigate option pricing in other countries. This article offers a thorough and complete review along with possible implications for future research.

The economic consequences of money laundering: a review of empirical literature

Purpose The purpose of this study is to provide a timely synthesis of the empirical literature focusing on the economic consequences of money laundering, as this topic has been gaining momentum among policymakers and academic researchers due to its adverse effects. Design/methodology/approach Empirical studies are collected by consulting accounting and finance journals in diverse digital sources (e.g. Science Direct, Blackwell, Taylor and Francis, Springer, Sage and Emerald). Key words used to identify relevant papers include “money laundering” and “anti-money laundering regulations,” with specific focus on the economic consequences. Our search strategy includes 24 published papers over the period of 2018–2023. Findings Findings show that most studies represent cross-country investigations; the main topics investigated focus on accounting field (e.g. audit fees, real and accrual earnings management), tax evasion, financial stability, sustainability, economic indicators (inflation, economic growth, foreign direct investment) and financial inclusion; and the economic consequences of money laundering have been also examined within banking industry (e.g. banking profitability, banking stability). Reported findings of reviewed studies suggest that money laundering has diverse adverse impacts at the country level (e.g. increased tax evasion, higher inflation rate, less sustainability and foreign direct investments), at the firm level (e.g. increased audit risk and aggressive real and accrual earnings management) and within banking industry through negative impact of money laundering on bank’s loan portfolio quality, stability and profitability. Practical implications With respect to policymakers, strengthening anti-money laundering regulations may play a critical role in reducing money laundering activities. Furthermore, financial institutions should implement specific rules dealing with anti-money regulations to ensure adequate compliance and disclosure. Finally, policymakers should be aware about the importance of digital transformation to combat money laundering activities since it facilitates the detection of financial crimes due to their traceability. Originality/value The summary of the empirical literature focusing on the economic consequence of money laundering represents a historical record and an introduction for accounting researchers. It also urges them to further explore the economic implications of anti-money laundering disclosure within banking industry.

A Systematic Literature Review on Islamic Expenditures

The purpose of this study is to identify past research trends on Islamic spending, evaluate research collaborative relationships, and identify future research directions.It uses 14 articles published between 2003-2022 about Islamic Expenditures indexed in Scopus (Q1-Q4) using a qualitative and quantitative approach, the Bibliometric method and Systematic Literature Review (SLR). This study uses VosViewers software and Publish or Perish. It is known that the author who has the most publications on Islamic Expenditure is U.H. Umar. The article with the most citations was the article entitled "A proposed model for waqf financing public goods and mixed public goods in Malaysia". The journal with the largest number of publications is the International Journal of Islamic and Middle Eastern Finance and Management. The countries that contributed the most to the release were Malaysia, Nigeria and Pakistan. This study makes several contributions, including for future researchers, the research results can be used as a reference to identify influential authors, articles, journals, countries, findings and methods. For researchers, the results of this study can be used as a benchmark and literature necessary for the development of Shariah consumer research and to reassess the gaps in Islamic cost or cost research.

Target date funds as asset market stabilizers: evidence from the pandemic

Abstract Target date funds (TDFs) provide retirement investors, many of whom are unsophisticated or inattentive, with age-appropriate exposures to different asset classes like stocks and bonds. To maintain exposures, TDFs trade actively against market returns, buying stock funds when the stock market does poorly, and selling when the market does well (Parker et al., 2023, Journal of Finance). This paper shows that trading by TDFs was a significant stabilizing force in US equity markets during the unprecedented economic volatility of the COVID-19 pandemic period. Specifically, TDFs – now comprising a quarter of all 401(k) plan assets – caused significant contrarian investment flows across asset classes, flows that were not undone by enrollment of TDF investors or by discretionary actions by TDF managers. Mutual funds with large ownership by TDFs had more stable funding through the pandemic, and stocks that had greater indirect ownership by TDFs had lower co-movement with the market and lower volatility during the pandemic period.

Household use of financial planners

Using the Certified Financial Planner (CFP) Board’s definition of financial planning, this article evaluates the validity of the measures of financial planner use in publicly available datasets. A review of Financial Services Review, Journal of Personal Finance, Journal of Financial Planning, Journal of Family and Economic Issues, Journal of Consumer Affairs, and Journal of Financial Counseling and Planning identified seven datasets that were commonly used to investigate financial planner use. Of these, the two most promising measures were found in the Survey of Consumer Finances and the National Longitudinal Study of Youth (1979). However, an evaluation of these measures raises significant concerns related to their validity. This article critically evaluates these measures and provides insights into the development of better measures of financial planner use for the future.

교육재정경제 연구의 동향과 과제

This study comprehensively analyzes trends in education finance and economics research and discusses the directions and challenges for future research. By examining 712 academic papers from the inaugural to the most recent issues of the ‘Journal of Economics and Finance of Education,' it derives research achievements and challenges in this field. The analysis reveals distinctive features, such as the increasing application of theoretical concepts to practical approachs, a surge in education economics research, diversified research targets including education authorities and institutions, a shift towards quantitative data utilization, a rapid transition from literature-focused to quantitative-oriented research, and enhanced collaboration among researchers. Comparatively, qualitative studies are underutilized in the area of research, emphasizing empirical studies relevant to education policies. The study's keyword analysis demonstrates balanced treatment of education finance and economics-related terms and substantial research on value considerations like efficiency, equity, and fairness. Advanced research methods like Data Envelopment Analysis (DEA), Propensity Score Matching (PSM), Fixed Effects (FE), and Hierarchical Linear Modeling (HLM) are widely adopted. Through a comparison with international trends, it highlights research areas requiring increased focus, including the effectiveness of education investments, specific education fiscal demand analysis, discussions on the appropriateness of education fiscal policies, cost estimation of targeted educational programs, education's cost-benefit analysis, strengthened education policy evaluation, and expanded research on the teacher labor market. Enhanced scholarly interest and investigation are recommended for these themes in education fiscal economics.