scholarly journals The Impact of COVID-19 Pandemic on Managerial Accounting and Its Adjustments in Financial Markets

2021 ◽  
Vol 1 (4) ◽  
pp. 287-296
Author(s):  
Mabelle A. Atienza ◽  
Almighty C. Tabuena
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Research Method ◽  
Contingency Theory ◽  
Business Owners ◽  
Managerial Accounting ◽  
Interview Protocol ◽  
Research Initiative ◽  
The Impact ◽  
Online Form

This study aimed to identify the impact of the COVID-19 pandemic on managerial accounting and its adjustments in financial markets to help business society deal with their businesses and companies during the pandemic. This study was conducted in one of the cities in the Metropolitan Manila in Quezon City, Philippines, employing the descriptive design under the qualitative research method through an interview protocol and online form methods with accountants, managers, and business owners using Fiedler’s Contingency Theory. This research initiative is a great help for those who are suffering in their business, especially managers, accountants, and business owners. Managerial accounting in the financial markets has had a lot of difficulties since this pandemic occurred. In this case, businesses were not prepared for the advent of the COVID-19 pandemic. Some business owners had to close their businesses for three months because of the outbreak. Business owners are taking steps to become affable and open to the consumers that might purchase their products. Despite the pandemic, company owners are determined to stay open. They knew how to cope with scammers, especially those who ran an online company during this pandemic crisis. Keywords: adjustment, contingency theory, COVID-19, financial market, impact, managerial accounting

scholarly journals Financial Development and Tax Revenue: How Catalytic Are Political Development and Corruption?

2018 ◽  
Vol 10 (8) ◽  
pp. 92 ◽  
Author(s):  
John Bosco Nnyanzi ◽  
John Mayanja Bbale ◽  
Richard Sendi
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Financial Market ◽  
Financial Institutions ◽  
Low Income ◽  
Political Development ◽  
Tax Revenue ◽  
Tax Revenues ◽  
The Impact ◽  
Cent Change

Increasing domestic revenue mobilization remains a challenge for many governments, particularly in low-income countries. Using a sample of East African countries, the study sets off to investigate the impact of financial development from a multi-dimensional perspective on tax revenues for the period 1990 to 2014, and how political development and the control of corruption would enhance the observed nexus. The dynamic panel results from the system GMM estimation approach indicate a significant role of financial development overall and the financial institutions and financial markets in particular. A disaggregation of the duo suggests that it is the depth of financial institutions that greatly matters for tax revenue, with a one per cent change expected to yield about 0.26 per cent change in tax collections. It is then followed by their level of accessibility, financial market depth and efficiency. We fail to find significant evidence in support of financial market access and financial institutions efficiency although the possibility for the latter seems indismissible. Further evidence points to the catalytic nature of a good institutional and political environment in pursuit of higher tax-GDP ratio via financial development. Policies to promote the depth and accessibility of financial institutions as well the depth and efficiency of financial markets in East Africa alongside well-focused anti-corruption programs and democratic governance are likely to yield better fiscal outcomes in terms of domestic tax revenues critically needed to achieve the United Nations Sustainable Development Goals. We also confirm the positive role played by the lagged tax revenue, per capita GDP, trade openness, debt-to-GDP ratio and population density in the tax effort.

scholarly journals On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region

2019 ◽  
Vol 11 (23) ◽  
pp. 6636 ◽  
Author(s):  
Chunling Li ◽  
Khansa Pervaiz ◽  
Muhammad Asif Khan ◽  
Faheem Ur Rehman ◽  
Judit Oláh
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Credit Rating ◽  
Market Development ◽  
European Region ◽  
Short Term ◽  
Sovereign Credit ◽  
Financial Market Development ◽  
The Impact ◽  
Sovereign Credit Rating

In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that financial markets are sensitive to CR announcements, and market reactions to such announcements (both upgrading and degrading) are not the same. Using the framework of an autoregressive distributed lag setting, the present study attempted to empirically test the linear and non-linear impacts of CR on financial market development (FMD) in the European region. Nonlinear specification is capable to capture asymmetries (upgrades and downgrades) in the estimation process, which have not been considered to date in financial market literature. Overall findings identified long-term asymmetries, while there was little evidence supporting the existence of short-term asymmetries. Thus, the present study has extended the financial market literature on the subject of the asymmetrical impact of a sovereign CR on European FMD and provides useful input for policy formation taking into account these nonlinearities. Policies solely based upon linear models may be misleading and detrimental.

scholarly journals Impact of Terrorism on Financial Markets: The Case of Turkey

2016 ◽  
Author(s):  
Neşe Algan ◽  
Mehmet Balcılar ◽  
Harun Bal ◽  
Müge Manga
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Financial Market ◽  
Terrorist Attacks ◽  
Market Returns ◽  
Stock Market Returns ◽  
Stock Indices ◽  
Daily Data ◽  
The Impact

This study investigates the impact of terrorism on the Turkish financial market using daily data from Jan 4, 1988 to May 24, 2016. In order to measure the impacts of terrorist attacks in Turkey we test for causality from terrorism index to returns and volatilities of 3 aggregate and 16 sector level stock indices using a recently developed nonparametric causality-in-test test of Balcilar et al. (2016). The results obtained indicate that there is no causality from terrorist activities to stock market returns (1st moment). However, we find significant causality at various quantiles from terrorist activates to volatility (2nd moment) of tourism, food and basic materials sectors.

scholarly journals Can Central Banking Policies Make a Difference in Financial Market Performance in Emerging Economies? The Case of India

Economies ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 49
Author(s):  
Gagan Deep Sharma ◽  
Mandeep Mahendru ◽  
Mrinalini Srivastava
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Market Performance ◽  
Fixed Effect Model ◽  
Central Banking ◽  
Currency Markets ◽  
Reserve Bank ◽  
Effect Model ◽  
Egarch Model ◽  
The Impact

This paper explores the importance of central banking policies in financial market performance, using the case of India. For this purpose, the paper comparatively analyzes the performance of financial markets during the regimes of last three governors of the Reserve Bank of India—Y V Reddy, D Subbarao, and Raghuram Rajan. The paper discusses the central banking policies in these periods with respect to monetary stability, inflation, and growth challenges. The paper presents an analysis of returns and volatility in stock markets and currency markets in their tenures in comparison with those from other selected emerging markets (Brazil, Russia, China, South Africa) and developed markets (USA and UK). The paper also brings out the leverage effect by applying the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model in addition to comparatively analyzing the performance of financial markets. Further, the paper assesses the impact of central banking policies on financial markets by using the fixed effect model on the reference countries for the period under reference.

scholarly journals Sustainable Growth of International Financial Markets in the Context of International Capital Flows

2018 ◽  
Vol 23 (1) ◽  
pp. 35-49
Author(s):  
Małgorzata Janicka
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Flows ◽  
Global Economy ◽  
Sustainable Growth ◽  
International Capital Flows ◽  
International Financial Markets ◽  
International Capital ◽  
International Aspects ◽  
The Impact

In relation to financial markets sustainable growth is usually understood in a simplified and one-dimensional way as a share of financial market in the flow of investment resources from investors to projects that form part of broadly understood corporate social responsibility (CSR). Sustainable growth is usually described as an interconnection of three elements: economy, society, and environment. In such an approach the point of gravity clearly shifts towards the environmental dimension (natural resources) and the impact of economic growth upon the environment. However, if we assume that sustainable development per se goes beyond environmental and social aspects, we need to consider whether we could interpret the idea of “sustainable growth of the financial market” in relation to how economic system operates. In the paper the approach in the context of changes that take place in international financial markets and their impact upon stability of relations in international economy is proposed. The interest focuses especially on one of these elements, i.e., changes in the volume and structure of international capital flows. Hence, the goal of the paper is to analyse selected international aspects of capital flows against the background of challenges to sustainable growth of the global economy.

Chaos and nonlinear forecastability in economics and finance

1994 ◽  
Vol 348 (1688) ◽  
pp. 397-404 ◽  
Keyword(s):  
Time Series ◽  
Financial Markets ◽  
Empirical Evidence ◽  
Financial Market ◽  
Chaotic Dynamics ◽  
Economic Research ◽  
Nonlinear Modelling ◽  
Market Participants ◽  
The Impact ◽  
Market Perspective

Both academic and applied researchers studying financial markets and other economic series have become interested in the topic of chaotic dynamics. The possibility of chaos in financial markets opens important questions for both economic theorists as well as financial market participants. This paper will clarify the empirical evidence for chaos in financial markets and macroeconomic series emphasizing what exactly is known about these time series in terms of forecastability and chaos. We also compare these two concepts from a financial market perspective contrasting the objectives of the practitioner with those of the economic researchers. Finally, we will speculate on the impact of chaos and nonlinear modelling on future economic research.

scholarly journals Market Selection With Differential Financial Constraints

Econometrica ◽  
2019 ◽  
Vol 87 (5) ◽  
pp. 1693-1762 ◽  
Author(s):  
Ani Guerdjikova ◽  
John Quiggin
Keyword(s):  
Financial Markets ◽  
State Space ◽  
Financial Market ◽  
Financial Constraints ◽  
Heterogeneous Beliefs ◽  
Market Selection ◽  
Differential Constraints ◽  
Discount Factors ◽  
Starting Point ◽  
The Impact

We analyze financial markets in which agents face differential constraints on the set of assets in which they can trade. In particular, the assets available to each agent span a partition of the state space that can be strictly coarser than the partition spanned by the assets available in the market. We first show that the existence of differential constraints has an impact on prices and allocations as compared to a complete financial market with unconstrained agents. We consider the implications for survival, taking the work of Blume and Easley (2006) as a starting point. We show that whenever agents have identical correct beliefs and equal discount factors, and their partitions are nested, all agents survive. When agents have heterogeneous beliefs, differential constraints may allow agents with wrong beliefs to survive. Provided constraints are relevant (in a sense we define more precisely), the condition for an agent to survive is that his survival index is at least as large as that of the agents with finer partitions. We also study the impact of deregulation (an increase in the set of assets available to some agents). Unless the agent can adopt beliefs that are closer to the truth on the newly refined partition than those of less constrained agents, increasing his opportunities for trade might harm his chances for survival.

scholarly journals Impact of Coronavirus Pandemic on Financial Market Stability in Africa

2021 ◽  
Vol 16 (2) ◽  
pp. 18-25
Author(s):  
Kalu O. Emenike ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Negative Impact ◽  
World Health Organisation ◽  
World Health ◽  
Sovereign Bond ◽  
Show Evidence ◽  
Bivariate Regression ◽  
The Impact ◽  
Sovereign Bond Markets

The outbreak of the coronavirus in December 2019, with its accompanying declaration as a pandemic by the World Health Organisation in March 2020, resulted in lockdown of the global financial markets. This paper uses data from pre-coronavirus, coronavirus endemic and coronavirus pandemic periods to evaluate the impact of coronavirus pandemic on stability of Africa stock markets, sovereign bond markets and U.S. dollar exchange rates in Kenya, Morocco, Nigeria and South Africa as well as Africa Sharia equity and Sukuk indices. Findings from study suggest that Africa financial markets became very unstable during the coronavirus pandemic than during the endemic and pre-coronavirus periods. Results from bivariate regression model show evidence of negative impact of coronavirus pandemic on financial market returns. The results further show that Africa financial markets return volatility increases as the number of coronavirus cases increases. Overall, the findings suggest that coronavirus has negative impact on financial markets’ returns and exacerbated financial markets instability thus retarding sustainable economic development in the continent.

scholarly journals Does the financial market lead the business cycle in South Africa?

2008 ◽  
Vol 2 (1) ◽  
pp. 71-88
Author(s):  
Ilsé Botha
Keyword(s):  
South Africa ◽  
Business Cycle ◽  
Financial Markets ◽  
Financial Market ◽  
Emerging Market ◽  
Business Decisions ◽  
Financial Indicator ◽  
Financial Liberalisation ◽  
The Business Cycle ◽  
The Impact

Financial markets play a significant role in an emerging market economy such as South Africa, especially after financial liberalisation. Financial liberalisation causes economies to interrelate across borders and between different sectors. The impact of this interrelationship can be captured by taking the different components of the financial market into account and relating these to the real sector, using the coincident indicator. It will be useful to identify an indicator representing the major components - equity market, capital market and the domestic financial sector - of the financial market in South Africa. This financial indicator will lead the coincident indicator, because the components of the financial indicator are available at a higher frequency than the components of the coincident indicator. This new indicator for South Africa will be of assistance in making more informed business decisions since it can be used to forecast turning points in the coincident indicator, i.e. the business cycle.

scholarly journals CRYPTOCURRENCY MARKET TRENDS AND FUNDAMENTAL ECONOMIC INDICATORS: CORRELATION AND REGRESSION ANALYSIS

2021 ◽  
Vol 3 (38) ◽  
pp. 249-261
Author(s):  
O. Baranovskyi ◽  
M. Kuzheliev ◽  
D. Zherlitsyn ◽  
K. Serdyukov
Keyword(s):  
Correlation Analysis ◽  
Financial Markets ◽  
Financial Market ◽  
Regression Models ◽  
Economic Indicators ◽  
Financial Assets ◽  
The World ◽  
Dollar Price ◽  
Market Trends ◽  
The Impact

Abstract. The first cryptocurrency was born in 2008. Already today, virtual financial assets and tokens are a significant part of trading in global financial markets. The cryptocurrency market capitalization currently exceeds 600 billion U.S. dollars. However, there is a lot of discussion about cryptocurrency functions and the correlation between Bitcoin prices and the basic economic indices. Therefore, the purpose of the paper is to define the statistical substantiation of the influence of fundamental economic indicators on the market of virtual financial assets and the possibility of using cryptocurrency as the investment assets. This article is based on the theoretical principles and methods of econometric analysis; the system approach methods to define the main vehicles and trends of the international financial market. The study presents correlation analysis, regression models with paired and multiple variables. For these models, R-Studio instruments are the main tools of quality estimation and results interpretation. The article shows the results of the correlation analysis of Bitcoin’s U.S. dollar price dynamics and changes in the main stock, monetary market indicators, cryptocurrencies market tendency, levels of the United States fundamental economic indicators for the period from 2014 to 2021. Traditional multifactorial regression models are used to determine the level and the impact of individual indicators of the world stock market at the U.S. dollar price of Bitcoin. A comparison of the level of volatility of key investment financial assets in the market of cryptocurrencies and stock markets is carried out. The authors determine the level of correlation dependence and make a regression model of the impact of fundamental economic indicators and stock market trends on the dynamics of U.S. dollar prices for key cryptocurrencies. The article presents conclusions on trends and problems of using cryptocurrencies as an investment asset, considering volatility and profitability. Implementation of the results allows to clarify the economic essence of cryptocurrencies as a specific financial vehicle, as well as improving the existing models of investment management, considering the statistical characteristics of the virtual financial assets. The main direction of further research is to build models of medium-term prediction of prices for the main cryptocurrencies as an investment asset in conditions of changes in global financial markets, which must consider the fundamental economic indicators of the world economy and trends on key stock and commodity markets. Keywords: virtual financial asset, cryptocurrency, bitcoin, econometric model, financial market, economic indicator, investment asset. JEL Classification D53, E44, G15, C58 Formulas: 3; fig.: 3; tabl.: 3; bibl.: 31.

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