International Journal of Monetary Economics and Finance (18 papers in press)

Regular Issues

• Estimating the Effects of FDI on the Performance of Jordan’s Banks Listed on the Amman Stock Exchange  
  by Mohamed Ibrahim Mugableh  
  Abstract: The current paper estimates the effects of foreign direct investment (FDI) on the financial performance (return on equity and the size of deposits) of Jordan’s banks listed on the Amman Stock Exchange over the (2015
  Keywords: Foreign Direct Investment; Financial Performance; Amman Stock Exchange; Commercial Banks.
  DOI: 10.1504/IJMEF.2024.10064870
   
  
• A VAR analysis of the macroeconomic shocks on the non-performing loans ratio in Slovakia  
  by Kristina Kocisova 
  Abstract: This paper presents the key findings of our research on the relationship between selected variables (macroeconomic and banking sector-specific) and the ratio of non-performing loans to total loans (NPL) in the Slovak banking sector. Our analysis spans from 2006:Q1 to 2022:Q4 and uses a vector autoregressive model (VAR), the unit root technique, Granger causality, impulse response functions, and forecast variance decomposition. We focus on significant macroeconomic variables such as gross domestic product growth rate, inflation rate, unemployment rate, 3M EURIBOR, monetary aggregate M3, and banking sector-specific variables, including return on assets and capital adequacy. Our research assesses the resilience of the Slovak banking sector to shocks from these variables, providing insights into the impact of macroeconomic and banking variables on the non-performing loan ratio. We also offer a projection of NPL trends for the upcoming year.
  Keywords: Macroeconomic analysis; Non-performing loans; Vector autoregressive model; Granger causality; Impulse response analysis; Decomposition of dispersion.
  DOI: 10.1504/IJMEF.2024.10064871
   
  
• Investigating the dynamic relationship of the Indian stock market with global crude oil and bitcoin price movement.  
  by Ajit Kumar Dash, AMRITKANT MISHRA, Reeta Tomar, Lopamudra Hota 
  Abstract: The current pragmatic investigation strives to estimate the dynamic conditional correlation and conditional volatility of the Indian stock exchange with respect to global crude oil and bitcoin price movements. To accomplish the relevant aim, this investigation utilises the GARCH DCC approach for the period with daily time series data ranging from April 4, 2015, to July 31, 2023. The empirical outcome reveals the presence of volatility clustering in the return series of crude oil, bitcoin, and the Indian stock market. Secondly, the outcome of dynamic conditional correlation manifests that there is a short-run volatility spillover from crude oil to the Indian stock market; however, there is no such short-run spill existing from bitcoin to the Indian stock market. Finally, our investigation documents the long-term volatility spillover from crude oil and bitcoin price movements to the Indian stock market. Lastly, based on the outcome of conditional variance, it can be concluded that there was an increase in the return volatility of stock exchanges during the period of the COVID-19 pandemic.
  Keywords: Crude Oil; Bitcoin; Indian Stock Market; GARCH DCC and Volatility.
  DOI: 10.1504/IJMEF.2024.10064872
   
  
• PLACE BRANDING COMMUNICATION IN BANDUNG, INDONESIA: ANALYSIS FROM VISITOR PERSPECTIVE  
  by Arianis Chan, Pratami Wulan Tresna, Mohammad Benny Alexandri, Asep Miftahuddin, Linda Kurniawati 
  Abstract: This research aimed to analyze the strategy of place branding communication from the image perspective, focusing on a creative city in Indonesia, namely Bandung. The empirical application was performed on a sample of 212 visitors who have traveled to Bandung. Furthermore, data were processed following the classic assumption tests, and the hypotheses were tested using the double regression analysis. The findings showed that the brand image was affected by traditional communication, social media communication, physical communication, and word of mouth. Physical communication had the highest impact on visitors ranging from teenagers to early adulthood, known as the millennial generation from urban areas. Therefore, digital media such as Instagram and YouTube were preferred to be more effective platforms in promoting the city instead of printed media.
  Keywords: city branding; place branding; place brand image; place brand experience; brand communication.
  DOI: 10.1504/IJMEF.2024.10065239
   
  
• Effectiveness of microfinance institutions: the importance of Women CEOs and Corporate Governance  
  by Fatiha Brahmi, Salma Louati, Mouna Boujelbene Abbes 
  Abstract: This paper seeks to provide a framework to address the factors that help microfinance institutions (MFIs) achieve their goals. First, it examines the role of women managers’ effectiveness and its subsequent impact on the financial stability and social performance of MFIs. Second, it questions corporate governance as a cornerstone of their success.To achieve this purpose, this research assesses the quality of IMF’s corporate governance by constructing a governance index including 12 characteristics. Then, it evaluates the impact of women’s leadership and corporate governance on the financial and social performance of MFIs.Using a dynamic simultaneous equation model, the results show that MFIs run by women are more effective in serving more borrowers without jeopardizing their financial sustainability. Furthermore, better governance is the second most important factor that stimulates MFIs to improve their social and financial performance.
  Keywords: Female leadership; corporate governance index; financial stability; social performance; microfinance institutions.
  DOI: 10.1504/IJMEF.2024.10065240
   
  
• Impact of Russia-Ukraine invasion on commodity prices in South Africa  
  by Roshnay R. Britz, Adefemi A. Obalade, Anthanasius Fomum Tita 
  Abstract: The Russia-Ukraine invasion presents one of the most trending news in 2022. Economies having solid ties with Russia are exposed to the contagion effects of the crisis. The South African economy is strongly linked to Russia via international trade and the BRICS alliance. This study investigates the impact of the Russia-Ukraine invasion on daily and monthly commodity prices in South Africa for the 2015-2023 period. The study applies descriptive statistics, analysis of variance, dummy regression model and sub-period analysis to evaluate wheat prices, oil prices and inflation rate before and during the Russia-Ukraine invasion. The ANOVA results reveal that the studied series significantly differed before and during the Russia-Ukraine invasion. The descriptive analysis and regression results indicate an increase in wheat prices, oil prices and inflation rates during the post-invasion period compared to the pre-invasion period. This implies a significant impact of the Russia-Ukraine invasion on these economic indicators in South Africa. Policy implications of the findings are highlighted in the concluding section.
  Keywords: inflation rate; oil prices; wheat prices; Russia-Ukraine invasion; international trade.
  DOI: 10.1504/IJMEF.2024.10065759
   
  
• Application of the Modified Organic Benchmarks Model in Assessing Performance of University Endowment Portfolios  
  by Musa Essayyad, Omar Ahmed Altayti, William Galose 
  Abstract: This paper investigates the performance of university endowments using a modified version of Tiu’s (2017) organic benchmarks model based on panel regressions and quantitative metrics. The exercise is to ensure that endowments keep adjusting to align with the university goals of enhancing teaching, research, and community engagement. The empirical results show that, whether using pooled OLS, fixed effect, random effects, or fixed effect period SUR, all panel regression coefficients are positive and statistically significant at all levels for all variables as reported in the university or endowment characteristics or the intertemporal endowments or intertemporal enrollment, and the size of the endowment. The research outcomes substantiate the premise that university endowment funds should concentrate on increasing their endowments size and enhancing their student enrollment, and consequently helping institutions keep adjusting to align with the university goals of enhancing teaching, research, and community engagement.
  Keywords: University endowment funds; portfolio performance; capital asset pricing models; organic benchmarks; panel regression.
  DOI: 10.1504/IJMEF.2024.10065760
   
  

Special Issue on: ACFA2021 Financial Markets and Stabilisation Policies in Turbulent Times

• The Effect of Demographic Changes on Real Interest Rates: Theory and Empirical Evidence from the OECD.  
  by Kristine Gevorgyan 
  Abstract: Do demographic changes a_ect the real interest rates? Using an analytical three-period overlapping generation model we show that the equilibrium real interest rate increases when the fertility and the mortality rates are higher. A larger share of younger population in the economy increases the demand for loans which subsequently increases the real interest rate. We empirically con_rm these relationships using cross-country regressions with data on long-term real interest rates, fertility, and mortality rates from the OECD.
  Keywords: Real Interest Rates; Demographics; Aging Population; Overlapping Generations Model; Cross-Country Regressions.
  DOI: 10.1504/IJMEF.2023.10060999
   
  
• The effects of COVID-19 pandemic on the exchange rate: an empirical analysis for turkey as an emerging economy  
  by Fatih Ayhan 
  Abstract: The COVID-19 pandemic has deeply affected all economies, especially the macroeconomic indicators of developing countries. There have also been changes in all economic indicators in Turkish economy since COVID-19 cases appeared in March 2020. The USD/TRY exchange rate (EXC) also fluctuated in this period. In this study, the determinants of the USD/TRY exchange rate were empirically tested for 11/03/202006/11/2020 when the cases of COVID-19 increased. This research investigated the relationship between the daily number of COVID-19 cases (COVID), oil prices (OIL), and gold prices (GOLD) in Turkey. The findings of the residual augmented least squares (RALS) regression model showed that COVID, GOLD, and OIL have a statistically significant and negative effect on EXC. According to the regression model results, the increase in the COVID, GOLD, and OIL variables decrease the USD/TRY exchange rate, respectively. The most influential factor in determining the USD/TRY appears to be the rate of oil prices during the pandemic period. The most effective tool for policymakers to control exchange rate volatility seems to seek solutions for oil and energy prices.
  Keywords: exchange rate; oil prices; COVID-19; RALS; residual augmented least squares; Turkish economy.
  DOI: 10.1504/IJMEF.2022.10050901
   
  
• The Markov-switching drivers of foreign exchange rate comovements in the case of CEE countries  
  by Mercédesz Mészáros, Dóra Sallai, Gabor David Kiss 
  Abstract: Significant foreign exchange market turbulences have emerged in recent years, which makes it worthwhile to monitor the co-movements of the exchange rates which are influenced by the variables of macroeconomic and financial environment. Regarding the effects of market contagion after exogenous shocks, it is also essential to capture the less examined elements linked to this like the measures of unconventional monetary policy. Fitting a Dynamic Conditional Correlation and Markov-Switching models to the sample of the Czech, Hungarian and Polish foreign exchange markets we analyzed whether their currencies moved together with their euro area benchmarks between 2007 and 2020. Our results showed the heterogeneity of the regional currencies. In addition, the research finding is that regime-changes revealed more similarities in case of the Polish and Hungarian currencies than what we were able to identify in the case of CZK.
  Keywords: contagion; CEE; foreign exchange markets; unconventional monetary policy; Markov-Switching.
  DOI: 10.1504/IJMEF.2023.10057736
   
  
• Recovery Theorem and the Risk Aversion. Evidence from the Czech Republic.  
  by Martin Časta 
  Abstract: The main goal of this study is to obtain expectations regarding the future development of the exchange rate using derived option probabilities and based on them to calculate the perception of risk by investors. More specifically, this study deals with the application of the Ross recovery theorem in the FOREX market using the CZK/EUR exchange rate. From a theoretical point of view, I offer an expression of the Ross recovery theorem using different Numeraire and I also apply a novel approach to the calculation of the implied risk premium. The results show that both subjective and risk-neutral densities are not unbiased probability estimates of a future exchange rate. However, the results show a significant increase in the implied risk aversion during the Covid19 pandemic.
  Keywords: Risk Aversion; Ross Recovery Theorem; Risk-neutral densities; Risk aversion; Risk premium; Covid19; FX options; Czech Republic; Czech Koruna.
  DOI: 10.1504/IJMEF.2023.10057737
   
  

Special Issue on: Islamic banking Novel topics and challenges

• Dynamic Behavior of Islamic Banking Financing in the Real Sector  
  by Faizul Mubarok, M. Nur Rianto Al Arif, Abdul Hamid 
  Abstract: One of the activities of Islamic banking is channeling financing to the real sector, comprising different characteristics, therefore appropriate management of the distribution process is needed. The purpose of this study is to analyze the effect of real sector financing on non-performing Islamic banking in the short and long terms and analyzes its response in facing real sector financing shocks. This study uses a Vector Error Correction Model with data collected monthly from Islamic commercial banks and business units from 2007 to 2020. The results showed no effect in the short term, with a significant effect in the long term on the industrial sector. Islamic banking stabilized the fastest when it responded to the agricultural sector financing shock. Furthermore, the transportation, warehousing, and communication sectors dominate the non-performing financing of Islamic banking, therefore a reserve fund is needed to create a portfolio and a priority scale.
  Keywords: Financing; Non-Performing Financing; Real Sector; Islamic Bank.
  DOI: 10.1504/IJMEF.2024.10057738
   
  

Special Issue on: Monetary Policy and Financial Stability in the Post-COVID-19 Economies

• A Correspondence Analysis on Dynamics of Local Gold Price among Major Consumer Economies During the Pre-Covid Period and the Pandemic Period  
  by SREEJITH S, Hareesh Ramanathan 
  Abstract: Gold is known as one of the precious metals The largest consumers of physical gold are China and India The consumer's attitude towards gold in these emerging markets for both consumption and investment is linked with their culture The price of gold in Indian and Chinese local markets mostly differs from International markets, either at a premium or at a discount price The recent economic slowdown during the outbreak of the covid19 also affected the investment preferences of investors, especially towards safe-haven investments However, due to the global pandemic, the demand for physical gold dropped to its lowest quarterly total since 2009 Social restrictions, economic slowdown, and strong gold-price are contributed to the same The premium or discount offered to gold prices in the local market also gives leverage for the economy to perform The study compares the strategies adopted by the largest consumer markets of gold.
  Keywords: Gold Price; Premium Gold Price; Discount Gold Price; Pandemic; Covid19; Correspondence Analysis.
  DOI: 10.1504/IJMEF.2024.10059847
   
  

Special Issue on: SIBR 2023 Post -pandemic Business Strategies and Policies in Emerging Markets

• Analysis of the Level Readiness and Acceptance Bravo Technology with the Technology Readiness and Acceptance Model (TRAM) Approach (Case Study in Financial Firm)  
  by Maghfur Rozudin, Udisubakti Ciptomulyono, Jani Rahardjo, Muhammad Ainul Fahmi 
  Abstract: The successful implementation of a new technology can never be separated from the user readiness and acceptance. This study aims to analyze the level of readiness and acceptance technology. It was found that 11 hypotheses were accepted, 5 were rejected. Positive factor of TRI significantly affects PU, but only the Innovativeness variable has a significant effect on PEOU. Negative factors do not have a significant influence. External factors have a significant influence on PEOU. Research using TRAM has never been carried out in multifinance, so the results are expected to be input for companies as technology improvements in the future.
  Keywords: TRI; TAM; TRAM; PU; PEOU.
  DOI: 10.1504/IJMEF.2025.10066237
   
  

Special Issue on: SIBR 2023 Post-pandemic Business Strategies and Policies in Emerging Markets

• Conservatism Culture, Earnings Management, and Corporate Governance: Studies on Asia Pacific Countries  
  by Anna Purwaningsih 
  Abstract: This study aims to investigate the effect of conservatism culture on earnings management practices, both accrual and real earnings management. In addition, this study also investigates corporate governance to the relationship between conservatism culture and earnings management. The research samples were eleven Asia Pacific countries from 2010 to 2019. The data were taken from the Bloomberg and Thomson Reuters databases. Hypothesis testing was done with Multiple Linear Regression. The results provide empirical evidence that: (1) the conservatism culture has a positive effect on accrual (real) earnings management, and (2) corporate governance weakens the positive relationship between conservatism culture and accrual (real) earnings management practices. Therefore, these test results confirmed consistency-built hypotheses.
  Keywords: conservatism; accrual earnings management; real earnings management; corporate governance.
  DOI: 10.1504/IJMEF.2024.10062536
   
  
• Asymmetric impact of COVID-19 on Thailand’s stock market volatility: an industry group analysis  
  by Surachai Chancharat, Areeya Wisamart 
  Abstract: This study investigates the effect of the COVID-19 outbreak on the industry group index in the Stock Exchange of Thailand. Daily data on confirmed cases and industry group indices were collected from January 1, 2020, to December 30, 2022. Using the EGARCH model, the results indicate that the agricultural, real estate, construction, resource, and service groups responded negatively to the increase in COVID-19 confirmed cases, leading to decreases in the stock returns for these industrial groups. Conversely, the technology group experienced a positive response, with stock returns increasing as the number of confirmed COVID-19 cases rose.
  Keywords: asymmetric volatility; COVID-19; emerging market; industrial group; Thailand.
  DOI: 10.1504/IJMEF.2025.10065220
   
  
• Effect of PFRS 15 Adoption on the Value Relevance of Selected Philippine Publicly-listed Companies’ Financial Ratios and Macroeconomic Attributes  
  by Lawrence J. M. Marcella, Patricia M. Empleo, Belinda Mandigma 
  Abstract: Ball and Brown (Aladwan, 2019) originated the research on value relevance. The study used a descriptive-correlational research design to analyze if the book value, earnings, dividends, firm size, firm growth, leverage, inflation rate, and GDP growth rate are value relevant. More so, it tested if the PFRS 15 adoption affected the stock price. The financial data from 58 publicly-listed companies went through fixed effect regression as statistical treatment. Results revealed that earnings per share and firm size are value-relevant with significant positive effect on the stock price, while the adoption of PFRS 15 has significant negative influence on it.
  Keywords: PFRS 15; value relevance; stock price; Ohlson price model.
  DOI: 10.1504/IJMEF.2025.10065221
   
  
• Disruptive Innovations Disclosure in the International Business System Groups  
  by Indrian Supheni, Nung Harjanto, Djoko Suhardjanto, S. Rahmawati, Agung Nur Probohudono, Yavida Nurim, Nur Rizki Wijaya 
  Abstract: This research aims to gain a more comprehensive insight into the urgency and different levels of disruptive innovation disclosure on companies that have a visualization network of cooperation among disruptive innovation countries in the international business system group. The data sample in this study total of 210 companies from 2015 to 2019 are subject to different tests to prove that the information presented by the company in the Disclosure of Disruptive Innovations every year is different and is expected to grow further and differently between the international business system groups. This research result shows that the company's information in the Disruptive Innovation Disclosures from 2015 to 2019 always increased positively. This research also reveals that there is a difference between the international business system groups. It addresses to gives a comprehensive insight into the role of additional voluntary reports in increasing the credibility of disclosed information consideration in decision-making.
  Keywords: disruptive innovations; disclosure; emerging market; communitarian; anglo-saxon.
  DOI: 10.1504/IJMEF.2025.10065758