Covid-19 and the Technology Bubble 2.0: Evidence from DCC-MGARCH and Wavelet Approaches

There has probably never been as big a divergence between markets and economies as there is in the pandemic period. This paper is an attempt to test the ‘time-varying’ and ‘time-scale dependent’ volatilities of major technology stocks, FAANG and Microsoft, for analyzing the possibility of a second technology bubble in the markets. Consistent with the results of DCC-GARCH models, our analysis based on the application of the Wavelet approach also indicates that major technology behave and move as if they were all one stock in the pandemic period which makes us to be cautious about a second dotcom crisis since %26 of S&P 500 market cap is driven by FAANG and Microsoft stocks. JEL classification numbers: C58, D53, O14. Keywords: Dot-com crisis, tech bubble, DCC-GARCH, FAANG, Wavelet.

A note on the technology herd: evidence from large institutional investors

Purpose The purpose of this paper is to examine intentional herding among institutional investors with a particular focus on the technology sector that was the driver of the “New Economy” in the USA during the dot-com bubble of the 1990s. Design/methodology/approach Using data on technology stockholdings of 115 large institutional investors, the authors test the presence of herding by examining linear dependence and feedback between individual investors’ technology stockholdings and that of the aggregate market. Unlike other models to detect herding, the authors use Geweke (1982) type causality tests that allow authors to disentangle spurious herding from intentional herding via tests of bidirectional and instantaneous causality across portfolio positions in technology stocks. Findings After controlling information-based (spurious) herding, the tests show that 38 percent of large institutional investors tend to intentionally herd in technology stocks. Originality/value The findings support the existing literature that investment decisions by large institutional investors are not only driven by fundamental information, but also by cognitive bias that is characterized by intentional herding.

Formation of intellectual property in the coal industry

The interest of Russian and foreign investors in the coal industry is great enough. In the Russian coal industry, it is necessary to invest mainly those investments that relate to highly innovative technologies and promote the introduction of innovative projects in the field of geological exploration, coal mining and processing. First of all, it concerns coal engineering, certain areas in the areas of coal processing and processing, innovative activity of the organization, complex of security measures and organization of coal mining.It should be noted that with a common similarity in the direction of creative activity of domestic and foreign inventors vary considerably. Abroad, most of the patents apply to the construction of mining equipment with the simultaneous patenting of ways to use this design. In Russia, most of the patents protect the development methods intended for use in specific conditions of a certain deposit, as well as the methods of using certain equipment in different conditions.The analysis of innovative activity of organizations of Russia in comparison with the EU countries was carried out, which showed that the share of organizations that carry out innovations: technological, marketing and organizational is much lower than in Western Europe. Basically, the patents received in Russia relating to the coal industry are aimed at underground methods of coal mining. The creative activity of domestic inventors is mainly aimed at improving the ways of using existing equipment.Private companies (for coal mining and processing) without state involvement will not be able to modernize existing technologies and equipment in a short time. In this regard, the financing of innovative projects in the coal sector should be carried out within the framework of the public-private partnership for the implementation of large innovative projects of the coal business. Patents provide an opportunity to learn about current research and existing technology stocks of companies in various countries long before the advent of innovative products on the market and to avoid the risk of authors of development for obtaining a patent.