Market Spreads Research Articles

THE ROLE OF EDUCATION IN INFLUENCING CAPITAL MARKETS' LIQUIDITY IN THE CEE COUNTRIES

Capital markets serve an essential role in the efficient allocation of resources in an economy, with their liquidity and stability being critical indicators of operational efficiency. The influence of education in cultivating financial literacy, shaping investment behaviours, and thereby promoting market efficiency, financial development, and sustainable economic growth, is increasingly becoming the focus of research in this field. This study specifically explores the relationship between education levels and capital market liquidity in the Central and Eastern European countries across the period 2013-2021 via a panel regression methodology. Our findings show a significant relationship between education and enhanced capital market liquidity, highlighting the importance of investing in both primary and secondary education to improve market efficiency. Primary education enrollment seems to exert a negative impact on market spread and illiquidity, while secondary enrollment is associated with a diminishing effect on market spread. These patterns persist for both male and female enrollment alike. By furthering the understanding of the association between education and capital market activity, this research paper extends the current studies in this domain and reinforces the idea that education plays an instrumental role in capital market liquidity. This adds to the body of knowledge on the role of education in influencing capital market activity and offers a nuanced view of its impact on market liquidity in the CEE region.

The Too-Big-to-Fail Premium in Tier-2 Capital Bonds and Additional Tier-1 Capital Bonds Primary Markets: Evidence from China

Abstract This study examines the too-big-to-fail expectations in the primary market issuance spreads of commercial bank tier-2 capital bonds and additional tier-1 capital bonds in China. Using a sample of 574 issuances with total amount of 4.76 trillion RMB (749 billion USD), we conduct median regressions with the issuance spreads as the dependent variable. The coefficients of DSIB and GSIB are negative and statistically significant at 1% and 5% levels respectively in the full sample, and are negative and statistically significant at 1% level in the subsample after the guidance on asset management businesses was announced. Ceteris paribus, the issuance spreads of capital bonds of systemically important banks are 15.2 bps to 19.7 bps lower than those issued by other banks. The too-big-to-fail expectations and implicit guarantee of systemically important banks in the Chinese bond market, which narrow the primary market spreads of capital bonds issued by systemically important banks, may account for the results. To address the potential endogeneity issues, we use 90% quantile and 95% quantile of sample bank consolidated assets as proxies of systemic importance, and use China Development Bank bond yields to calculate issuance spreads, and the results show that the conclusion is robust.

Operational optimisation of a microgrid using non-stationary hybrid switched model predictive control with virtual storage-based demand management

Demand-shaping mechanisms are a key component of modern energy management systems, although not unproblematic. The degree of social acceptance of interference with demand or generation and the ease of integration of various types of non-critical loads depends on the method of their implementation. In addition, the critical load pool typically includes devices with different response times. The energy management systems currently in use often cannot meet user expectations. Especially when considering other vital aspects, such as energy market spread, storage wear, or connection to the utility grid and neighbouring microgrids. The authors adopted an approach of unifying demand side management and response in the form of virtual energy storage. Said store allows for the accommodation of loads operating under differing scheduling horizons. Such a new concept allows management not only in terms of quantity but also in terms of time. The storage is the focal point of a comprehensive energy management system based on switched model predictive control. The receding horizon algorithm relies on a non-stationary hybrid microgrid model. The study compares the operating costs of microgrids with virtual storage, allowing only demand postponement, preponement or bidirectional operation. The energy management system is also examined for sensitivity to changes in the weight matrices of the cost function, horizon length and forecast inaccuracy. Introducing virtual energy storage reduces microgrid operating costs by up to 16%. The decrease in control performance is proportional to the prediction accuracy, and the sensitivity allows for customisation.

Do Reported Intangible Assets Create a Better Information Environment?

Purpose: This study investigates whether the identifiable intangible assets (IIA), goodwill (GW), and research and development expense (R&D) reported in the financial statements and annual reports of firms on the Stock Exchange of Thailand (SET) can improve the information environment, as represented by a narrower bid-ask spread in the capital market. Additionally, this study explores the impact of intangible asset disclosure scores on the information environment. Design/methodology/approach: This study tests the association between reported intangible assets, intangible asset disclosure score, and bid-ask spread. The sample is 2,691 firm-year observations in SET from 2012-2021, and ordinary least squares (OLS) regression is used to test the hypothesis. Findings: The results found that IIA and R&D are associated with the information environment. It is reported that IIA and bid-ask spread have a positive relationship, whereas R&D and bid-ask spread have a negative relationship. In addition, the intangible asset disclosure score can also reduce bid-ask spread. Research limitations/implications: This study highlights the benefits of intangible assets, which can help bridge the information gap. However, the intangible asset disclosure score is determined through self-index construction. This process involves discretion and may be prone to errors. Furthermore, using the bid-ask spread as the sole indicator of the information environment might be inadequate. Originality/value: Research on information asymmetry about intangible assets in Thailand is scarce. This study provides empirical evidence to support the benefit of some intangible assets in reducing asymmetric information among investors. By utilizing the intangible asset disclosure score, including mandatory and voluntary disclosure, it is also possible to observe how different disclosure quality levels impact the information environment.

An Economic Analysis of Marketing Efficiency of Maize in Tamil Nadu, India

Maize plays a significant role in the agricultural economy. Since, growers of maize have numerous marketing-related issues. The present study is made with an objective to identify the major maize marketing channels and analyze its cost incurred, price spread and efficiency. A well-structured interview schedule was used to collect primary data. Price spread analysis and marketing efficiency of maize marketing channels is estimated using Acharya and Shepard approach. The lowest marketing spread were observed in Channel III which was about 13.56 percent (Rs. 200 per quintal) of the consumer price, due to less intervention of intermediaries. Therefore, Channel III is the most efficient one among the identified marketing channels. Besides, Channel III has the highest marketing efficiency and the farmers should choose their marketing channel with the less number of intermediaries where it helps them attain better income.

The Impact of Credit Rating Adjustments on Bond Spreads: Evidence from China

Given the critical role of credit ratings in signaling issuer creditworthiness and influencing investor behavior, this paper aims to elucidate how adjustments in these ratings affect bond market spreads. Utilizing a comprehensive dataset spanning from 2016 to 2022, this research focuses on the Chinese bond market. Through regression analysis and heterogeneity tests, the findings reveal that credit rating adjustments significantly influence bond spreads, with upgrades narrowing spreads and downgrades widening them. Additionally, adjustments related to external support and firm performance also affect spreads, highlighting the importance of managing credit ratings for issuers. Overall, this study offers insights for investors, issuers, regulators, and academics, providing a better understanding of the dynamics between credit rating adjustments and bond pricing in China’s bond market, with implications for financial stability and economic development.

Insights into the human metabolism of hexahydrocannabinol by non-targeted liquid chromatography-high-resolution tandem mass spectrometry.

Hexahydrocannabinol (HHC), 6,6,9-trimethyl-3-pentyl-6a,7,8,9,10,10a-hexahydrobenzo[c]chromen-1-ol, is a semi-synthetic cannabinoid that has presented challenges to analytical laboratories due to its emergence and spread in the drug market. The lack of information on human pharmacokinetics hinders the development and application of presumptive and confirmatory tests for reliably detecting HHC consumption. To address this knowledge gap, we report the analytical results obtained from systematic forensic toxicological analysis of body-fluid samples collected from three individuals suspected of drug-impaired driving after HHC consumption. Urine and plasma samples were analyzed using non-targeted liquid chromatography-high-resolution tandem mass spectrometry. The results provided evidence that HHC undergoes biotransformation reactions similar to other well-characterized cannabinoids, such as ∆9-tetrahydrocannabinol or cannabidiol. Notably, HHC itself was only detectable in plasma samples, not in urine samples. The observed Phase I reactions involved oxidation of C11 and the pentyl side chain, leading to corresponding hydroxylated and carboxylic acid species. Additionally, extensive glucuronidation of HHC and its Phase I metabolites was evident.

Disposition of Hexahydrocannabinol Epimers and Their Metabolites in Biological Matrices following a Single Administration of Smoked Hexahydrocannabinol: A Preliminary Study.

In 2023, hexahydrocannabinol (HHC) attracted the attention of international agencies due to its rapid spread in the illegal market. Although it was discovered in 1940, less is known about the pharmacology of its two naturally occurring epimers, 9(R)-HHC and 9(S)-HHC. Thus, we aimed to investigate the disposition of hexahydrocannabinol epimers and their metabolites in whole blood, urine and oral fluid following a single controlled administration of a 50:50 mixture of 9(R)-HHC and 9(S)-HHC smoked with tobacco. To this end, six non-user volunteers smoked 25 mg of the HHC mixture in 500 mg of tobacco. Blood and oral fluid were sampled at different time points up to 3 h after the intake, while urine was collected between 0 and 2 h and between 2 and 6 h. The samples were analyzed with a validated HPLC-MS/MS method to quantify 9(R)-HHC, 9(S)-HHC and eight metabolites. 9(R)-HHC showed the highest Cmax and AUC0-3h in all the investigated matrices, with an average concentration 3-fold higher than that of 9(S)-HHC. In oral fluid, no metabolites were detected, while they were observed as glucuronides in urine and blood, but with different profiles. Indeed, 11nor-9(R)-HHC was the most abundant metabolite in blood, while 8(R)OH-9(R) HHC was the most prevalent in urine. Interestingly, 11nor 9(S) COOH HHC was detected only in blood, whereas 8(S)OH-9(S) HHC was detected only in urine.

DEVELOPMENT OF DIGITAL MARKETING OF BANKING INSTITUTIONS

The article draws attention to the issues of development of the system of digital banking services in Ukraine, in particular in terms of marketing and direct promotion of digital services of banking institutions. Therefore, the purpose of the study is to improve the methodological and applied principles and provisions for the promotion of digital banking services of banking institutions. It is shown that new economic conditions and realities have increased competition in the banking sector, which, in turn, prompts banking institutions to search for new sources of efficiency and intensify their own development through better promotion of banking services through new sales channels. One of these directions is, firstly, the marketing itself, and, secondly, the provision of digital banking services. It has been established that the development of digital marketing of banking institutions is due in equal measure to two trends: the digital transformation of the economy and society, and, therefore, the increase in the level of demand of consumers of banking products for their service online and/or with the use of the Internet; the development of digital networks and communications, and, therefore, a significant expansion of technical, technological and even economic opportunities for the implementation of digital technologies in the activities of banking institutions. The stages of the development process of digital technologies in the activities of banking institutions were identified, which went through 5 evolutionary stages - from the appearance of digital channels to the creation of "digital DNA" - a new system of coordinates for making strategic decisions throughout the entire life cycle of the operation and development of a banking institution. The leading directions and advantages of implementing the tasks of the digital marketing strategy of banking institutions have been determined, which are: modernization of the communication system with clients, significant growth of opportunities in the volume of communications and in the subjects of "communication"; a significant increase in the capabilities of the information and analytical subsystem of marketing, which is the way to make more reasonable and reliable management decisions in the field of marketing management; increasing the economic efficiency of the provision of banking services, increasing their scale and efficiency both vertically and horizontally in the business technological process; expansion of opportunities for the implementation of image programs, increasing the level of customer loyalty and their trust in the bank and its banking services. The leading directions of the development of digital marketing of banking institutions are indicated, which define the corporatization of digital systems of business communications and the provision of banking services, the use of digital marketing opportunities to increase the volume of provision of basic and additional services on the Internet, the spread of digital marketing to the intrabank management system, its automation.

Research on Microfilm Creation and Practice

In the information age, with the continuous development of new media technology, microfilm, as an emerging cultural form, has been rapidly developed. It provides a new experience in a short time, a highly concentrated story, wonderful lens language and visual impact. Compared with traditional films, microfilms have the characteristics of small investment, short cycle and fast communication, which have better communication effects when combined with emerging media. But there are in the process of development such as, product quality is uneven, market spread lack of standardized management, so this paper takes microfilm creation and practice as the main research object, combines microfilm production with marketization and other realistic factors, such as summarizes its development situation, at the same time, points out the shortcomings of the current microfilm creation and practice, and puts forward some suggestions that the creators should further improve the level of work and the quality of work, deepen the reform of policy and market specification, etc.

Nutritional profile of plant-based dairy alternatives in the Swedish market

The market for plant-based dairy alternatives is growing; therefore, focusing on the nutritional quality of these products is important. This study evaluates the nutritional profile of plant-based alternatives to milk, yoghurt, cheese, cream, ice cream and fat spread in the Swedish market and compares them to corresponding dairy products. The nutritional quality of organic vs non-organic and plain vs flavoured plant-based milk and yoghurt alternatives was also assessed. Nutritional data for 222 plant-based dairy alternatives were collected from the manufacturers’ websites, and data for corresponding dairy products were obtained from the Swedish Food Composition Database. Plant-based dairy alternatives had higher fibre content than dairy products, while their protein content was lower, except for soy-based products. The saturated fat content of plant-based dairy alternatives was similar to or lower than dairy products, except for coconut-based yoghurt and plant-fat-based cheese. Their energy content was also similar to or lower than dairy products, except for coconut-based yoghurt, plant-based fat spread and plant-based ice cream, which contained higher energy than yoghurt, blended margarine, and ice cream, respectively. The micronutrient fortification was mainly in plant-based milk, yoghurt, and cheese alternatives; thus, compared to dairy, they had similar or higher vitamins D, B2, and B12 (except in plant-based milk alternatives), calcium and iodine content. Furthermore, organic plant-based milk and yoghurt alternatives had a lower micronutrient content (e.g., vitamins B2 and B12, iodine and calcium) except for vitamin D than non-organic varieties. Flavoured plant-based milk and yoghurt alternatives were higher in energy and total sugar than plain varieties. In summary, plant-based dairy alternatives have nutritional strengths and weaknesses compared to dairy products that should be considered when replacing dairy.

ВЛИЯНИЕ СОЦИАЛЬНО-ЭКОНОМИЧЕСКИХ ФАКТОРОВ НА ПРОНИКНОВЕНИЕ ИНТЕРНЕТ-МАРКЕТИНГА В РАЗЛИЧНЫХ СТРАНАХ

The study is aimed at identifying socioeconomic factors affecting the spread of Internet marketing and studying its role as a scientific component. Regression analysis is used to identify relationships between variables and provide recommendations for the development of Internet marketing. The results are important for businesses developing effective promotion strategies and serve as a basis for further research.

The strength of competition and market efficiency in determining bank profits

Paying attention to developments in market competition, banking efficiency, and profitability is very important because it will update industry information so that it can be utilized by the early warning system (EWS). Market competition is important in business, so this research is interesting for the public. This research aims to find out the impact of competition and efficiency provide positive synergy on banking profitability. The theoretical basis for problem-solving will use industrial organization thinking, which focuses on the structure conduct performance-efficiency structure hypothesis (SCP-ESH) theory (Abbas & Sheikh, 2023). The research object uses 12 samples of conventional banks in Indonesia, which are included in the top 10 categories of a set of banks during 2012–2021 (quarterly data). The analysis uses panel data regression and statistical analysis. From the research results, it was found that there is a positive synergy between market spread operational cost management efficiency and the intermediation function in banking profitability. However, company size has a negative impact on banking profitability. This research is relevant to the research of Gavurova et al. (2017), who found that the market structure of the banking industry in the European Union was still concentrated. However, market structure is negatively related to banking performance.

Tüketicilerin Dijital Pazarlama Araçları Kullanma Yetkinliğinin Dijital Ürün Algıları Üzerine Etkisi

With the development of digital technologies, digital marketing tools have developed and diversified. The spread of digital marketing and the development of digital marketing tools have caused consumers to start benefiting from the digital versions of the products they have physically purchased. This situation has shown how important the authority of consumers to use digital marketing tools is for businesses. For this reason, it reveals the necessity of correctly perceiving the skills of consumers to use digital marketing tools and developing new digital marketing strategies for businesses in order to develop these skills. In the research, the effect of consumers' authorization to use digital marketing tools on digital product perceptions will be measured and what needs to be done in terms of developing new digital marketing strategies for businesses will be explained. The aim of this study is to measure the competencies of digital consumers in using marketing tools and to explain what needs to be done in terms of businesses at the point of improving consumers' digital product perceptions.

Interface Design Development for High Durability of SOFC Interconnectors Using Electrodeposition Coating

ENE-FARM type S equipped with solid oxide fuel cell (SOFC) stack has been commercialized since 2012. We have been working on improving the power generation efficiency, reducing costs, and the making them more compact by considering that market expansion and cost reduction are critical for the continued market spread of ENE-FARM type S. However, there is a trade-off between cost reduction and performance improvement and issues related to achieving both have emerged during the development process. In order to reduce costs, significant reduction of the number of cells were required. By reducing the number of cells, the current per cell increased, and the stainless steel connecting the cells as the SOFC interconnector was required to have further improvement in durability at high temperature. The degradation modes of the stainless steel used for SOFC mainly include the growth of an insulating oxide layer such as Cr2O3, Cr poisoning of the SOFC cathode, and anomalous oxidation due to decrease in the Cr concentration in the stainless steel. Therefore, ceramic coating is indispensable for the SOFC interconnector in order to suppress these degradations. Material properties of the coating film and coating manufacturing conditions are critical to the ceramic coating equipped on the SOFC interconnector. In addition, it has excellent physical properties such as high Cr diffusion suppression, barrier performance of oxygen gas diffusion, and good physical properties such as high electrical conductivity and good matching of thermal expansion coefficient with the SOFC components. In general, spinel-based oxide materials have been reported as the coating materials for SOFC interconnector, and many binary oxides containing transition metals such as MnCo2O4, MnCu2O4, and NiCo2O4. We have investigated (Zn, Mn, Co)3O4 because of matching the thermal expansion coefficient to the ferritic stainless steel and improving the sinterability at lower temperature. The total electrical conductivity and the thermal expansion coefficient were changed due to the Mn / Co ratio. In terms of these properties, the optimum composition in ZnMnCoO4 was found to be the Mn / Co ratio of around 1 / 1. We have evaluated the long-term durability of SOFC stack components for 12 years in a short period of time by temperature acceleration evaluation method. The voltage changes with the constant current density of 0.3 A cm-2 at a furnace temperature of 973 K shows no degradation over 45000 hours. Moreover, ZnMnCoO4 coated on the 22Cr-Fe alloy shows higher durability over 20000 hours at 1123 K. In 2016, we released the ENE-FARM type S equipped with the electrodeposition coating technology and achieved the highest power generation efficiency and the smallest size at that time. The electrodeposition coating technology has been used in all of ENE-FARM type S sold in Japan. Furthermore, this electrodeposition technology has contributed significantly to the increase in sales volume since 2016. The electrodeposition coating technology can be applied not only to SOFC but also SOEC and is expected to be used more and more widely in the future.

COVID lockdown, Robinhood traders, and liquidity in stock and option markets

In this study, I investigate the impact of active option trading on stock market liquidity during the COVID-19 lockdown, particularly in connection with the rapidly growing retail trading activities during this period. I find that stocks with actively traded options, as well as those held by more Robinhood users, experience a lesser deterioration in liquidity during the US COVID-19 lockdown. However, a broader Robinhood user base appears to diminish the alleviation effect of actively traded options on the underlying stock's liquidity decline during the lockdown period. This observation is consistent with the postulation that informed traders shift away from option markets and towards stocks where the stock liquidity is improved. Further analysis suggests that, during the lockdown, a more extensive retail presence in the stock market is also associated with a narrower bid-ask spread in the option market. This finding supports the previous theories and empirical evidence suggesting that option market makers may offer tighter spreads when their hedging costs in the underlying market are reduced. Overall, this study presents novel evidence on the joint dynamics across stocks and options during the COVID-19 episode, and highlights the significant roles played by Robinhood traders in these dynamics.

Extracting implied volatilities from bank bonds

In this work, we explore the information content of senior, subordinated and additional tier 1 (or contingent convertible) bonds issued by euro-area banks. We analyze both the asset volatility implied in senior and subordinated bonds and credit default swap market spreads, and the common equity tier 1 (CET1) ratio volatility extracted from additional tier 1 bonds secondary market spreads in the period from December 31, 2012 to March 31, 2021. Furthermore, we jointly consider the following important bank variables: asset, equity and CET1 ratio volatilities. In doing so, we can obtain the market view on credit spreads, banks balance sheet and capital ratio dynamics on a daily basis even if bank data are released quarterly. The approach can be used to monitor the risk of each bank, as perceived by the market, and to investigate banking fragility at a stand-alone or at a country level. Finally, we compare our estimated equity implied volatilities with the volatilities implied in equity option quotes and we show that this indicator depends on the model and the financial instruments considered in the calibration.

Pricing of project finance bonds: A comparative analysis of primary market spreads

This paper provides a comparative analysis of project finance (PF) and traditional corporate finance (CF) bond spreads and pricing. Using a cross-section of 47,196 bonds issued worldwide in the 1993–2020 period, we show that PF and CF bonds are differently priced, PF bonds have higher spreads than comparable CF bonds, and although ratings are the most important pricing determinant for PF and CF bonds at issuance, investors rely on other contractual, macroeconomic, and firms' characteristics beyond these ratings. Our results do not support the hypothesis of PF transactions as mechanisms of reducing sponsoring firms' funding costs: the cost of borrowing affects financing choices and PF transactions' weighted average spread is higher than that of comparable CF bond deals. We also find that economies of scale, risk management, and information asymmetry arguments affect sponsoring firms' choice between PF and CF transactions.

Numerical validation and optimization of hybrid composite beam hull using multiple failure criteria

The number of structurally deficient bridges continues to increase due to corrosion of steel sections and concrete rebar, therefore the replacement of decaying structures and the development of innovative systems have become of high priority to extend the life span of newly built bridges. Hybrid Composite Beam (HCB) produced by Hillman is one of those systems that use a combination of materials i.e., concrete, steel, and Glass Fiber-Reinforced Polymer (GFRP) to integrate each main advantage in a single bridge beam structure. Despite its several apparent advantages; it is not widely spread as expected within the last decade. The HCB is manufactured of self-consolidating concrete (SCC), which is poured in the shape of a traditional arch and tied at its ends by high-strength tendons. A durable FRP composite hull encapsulates the SCC arch and the high-strength tying tendons in order to create a structural beam element for bridge applications. The HCB's design aims to provide pure compressive stresses to the concrete and pure tensile stresses to the steel. The current study performs a deep numerical investigation of the FRP hull instead of other components comprehensively studied. Numerical validation is performed for the deflection results on the experimentally tested Knickerbocker HCB Bridge, the deformations are validated at four stages of HCB manufacturing and testing. Further, the FRP hull strength ratios are quantified for the worst value of four failure criteria. The results showed an excess use of FRP material, where more than 90% of FRP areas have strength ratios of 5 to 50. The FRP hull thickness is minimized using Genetic Algorithm optimization under the worst case of loading. The results achieved more than 60% decrease in FRP weight, that led to only 20% cost difference between traditional precast concrete and HCB girders. It is finally concluded that the overdesign of FRP hull contributed to the high cost of HCB usage consequently inefficient market spread.

Money Market Spreads and Stock Return Predictability in Korea

Money Market Spreads and Stock Return Predictability in Korea