International Journal of Monetary Economics and Finance (26 papers in press)

Regular Issues

• US Treasury market liquidity, monetary surprises, and uncertainty  
  by Tarek Chebbi, Ahmed Ben Haj Hammouda, Waleed Hmedat 
  Abstract: This paper studies the effects of the asset purchase program announcements by the Federal Reserve on the liquidity of the US Treasury market between October 2008 and November 2014. The study period comprises the most important Fed interventions in terms of asset sovereign bond purchases which were carried out in different phases. These programs successfully improved the market conditions namely in the five-day window after the announcement. However, our findings indicate that the liquidity condition dynamics do not seem to matter for monetary anticipation effect. Also, the reaction of the liquidity was found to be more sensitive to negative surprises, particularly when purchase activity leads to more stimulative financial environment expressed in terms of lower long-term yields. The results indicate also that uncertainty surrounding the monetary announcements has non-negligible effects on the impact of monetary surprises on liquidity conditions. In particular, as one would expect, the connection between monetary news and liquidity was mostly disturbed in the presence of higher monetary uncertainty.
  Keywords: quantitative easing; liquidity premiums; monetary surprises; uncertainty.
  DOI: 10.1504/IJMEF.2023.10055431
   
  
• Effect of Company Characteristics and Board Structure on Human Resource Disclosure Index in Indian Corporate Sector  
  by Dr. Kirti Aggarwal  
  Abstract: The objective of the present study is to determine the “effect of company characteristics and board structure on human resource disclosure index of the Indian listed companies”. The sample size consists of 63 companies listed on National Stock Exchange (NSE-100). The study includes different statistical techniques for analysis such as “descriptive statistics, Pearson’s Correlation matrix and Two-way Least Square Dummy Variable (LSDV) regression model”. The outcome of “descriptive statistics show that the mean percentage of HRDI” is 47.80. It portrays that companies moderately disclose the information related to HR in their annual reports. Further, the results of “Two-way Least Square Dummy Variable (LSDV) regression model” shows that there is significant positive effect of company age, market capitalisation, pages of an annual report, board size, board meeting, CEO duality and significant negative of earnings per share, quick ratio on “human resource disclosure index of the Indian listed companies”.
  Keywords: Human Resource Disclosure; Annual Report; Content Analysis; Human Resource Disclosure Index; Company Characteristics; Board Structure; India.
  DOI: 10.1504/IJMEF.2023.10055432
   
  
• Understanding the effects of COVID-19 on Regime Switching Behaviour of Asian Stock Markets  
  by Bhaskar Bagchi, RAKTIM GHOSH 
  Abstract: The present study aims to study on the regime switching behaviour of stock indices of Asian emerging economies like China, India, South Korea, Indonesia, Hong Kong and Thailand that have been caused due to outbreak of COVID-19 pandemic. Taking daily stock market returns from January 2019 to May 2021, the study employs Markov Regime Switching Model that identifies switching over of the variables from one regime to another. Wald test is also applied to ascertain the short run relationship. The Wald test verify the existence of short-run unidirectional causality from COVID-19 to selected indices. Markov Switching Model signify the switching over of all the select stock indices from pre-COVID-19 period to COVID-19 period and the magnitude of volatility in COVID-19 period is much more than that of regime pre-COVID-19 period. It is also found that Markov model has highest classification for all the variables and each regime is highly persistent.
  Keywords: COVID-19; Stock Markets; Asian Economies; Markov Regime-Switching Model.
  DOI: 10.1504/IJMEF.2023.10055433
   
  
• The relationship between investor sentiment and stock returns: the case of the S&P 500 companies  
  by Rawya Ben Youssef, Fathi Jouini 
  Abstract: This article investigates the association between stock returns and firm-specific investor sentiment in the U.S. stock market, including 265 firms belonging to the S&P 500 Index on daily data from 2010 to 2018, by using five-factor model, and four sentiment indicators with the aim of creating a firm-level sentiment index and in order to identify the common effect of the four indicators. This research shows that the risk factors MKT, and profitability factor RMW played an important role in assessing expected stock returns. The empirical results suggest that there is a negative relationship between sentiment and stock market performance. However, we also find a positive association between sentiment and short-run stock returns. This result contradicts the long-run relationship results in a developed market. In addition, there is a stronger positive relationship between sentiment and stock returns for companies which are more difficult to evaluate.
  Keywords: excess return; firm-specific investor sentiment; firm characteristics; principal component analysis.
  DOI: 10.1504/IJMEF.2023.10055903
   
  
• Forecasting the Energy Commodities: An evidence of ARIMA and Intervention Analysis  
  by Miklesh Prasad Yadav, Vandana Sehgal, Deepali Ratra, Abdul Wajid 
  Abstract: The objective of this study is to forecast energy commodity and check the intervention effect on energy commodity. Crude oil and natural gas are the proxies of energy commodities. We apply autoregressive integrated moving average (ARIMA) to forecast the daily prices and intervention analysis to check the effect of lockdown on these two commodities. An ARIMA (5,0,5) and ARIMA (5,0,4) are suitable models for forecasting the crude oil and natural gas prices. The result reveals that these commodities are forecastable, and investors can generate returns investing in these commodities. In addition, intervention analysis indicates that first lockdown in India has affected crude oil significantly but not the natural gas. The study provides insights to the investors and policy makers while forecasting the energy commodity.
  Keywords: Energy prices; crude oil; natural gas; autoregressive integrated moving average; Intervention Effect; COVID 19.
  DOI: 10.1504/IJMEF.2023.10055904
   
  
• Bank’s Loan Loss Provisioning in Large Emerging Countries: The Role of Motivation, Capital Buffer, Business Cycle and Governance  
  by Doddy Ariefianto, Irwan Trinugroho 
  Abstract: We model and empirically estimate the relationship of Loan Loss Provision (LLP) with proxies of motivation, capital buffer, business cycle and country governance. Our dataset comprises of 546 commercial banks from 14 large emerging countries; annual frequency from 2014-2018 (2730 bank year observations). A novel econometric technique: Linear Dynamic Panel Data estimator using Maximum Likelihood and Structural Equation Modelling (DPDML) is employed to cope with various complexity of the empirical model. We find that LLP is mainly consistent with following hypothesis: Incurred Loss, Relaxed Regulatory Capital and Contra Cyclicality. The role of Country governance is not particularly robust. Our findings provide important implication to policy making: substantial challenge to harmonizing the bank LLP practices from current incurred loss to desired forward-looking perspective.
  Keywords: Loan Loss Provision; Motivation; Capital Buffer; Business Cycle; Governance.
  DOI: 10.1504/IJMEF.2023.10057727
   
  
• Factors Determining Financial Inclusion Awareness among Women  
  by Pooja Muwal, Khujan Singh, Aarti Devi 
  Abstract: This study identified the factors that affect the financial inclusion awareness among women in Haryana and examined the relationship between the identified factors and demographic variables. A sample of 572 respondents has been taken with the help of a self-structured questionnaire from urban and rural areas of Haryana. The reliability and validity have been tested using Cronbach's alpha, convergent, and discriminant validity. The data has been analysed by employing Exploratory Factor Analysis, Confirmatory Factor Analysis, Independent t-test, one-way ANOVA, and Welch test. This study identified five factors (Payment and Enquiry Services, Core Banking Services, Loan and Advances, Insurance Schemes, and Bank Facilitators) of financial inclusion awareness among women. This study found that higher educated urban working young women of nuclear families are relatively more financially aware in comparison to less educated aged housewives of joint families of rural areas.
  Keywords: financial inclusion; financial awareness; financial exclusion; payment services; enquiry services; banking services; loan; advances; insurance; bank facilitators.
  DOI: 10.1504/IJMEF.2023.10057728
   
  
• Investigation of Relative Superiority of Business Valuation Methods  
  by Kay Zekany, Musa Essayyad 
  Abstract: The objective of this study is to compare and contrast actual stock prices with estimated stock value using the discounted cash flow (DCF) and residual operating income (ROPI) methods to evaluate the degree of correlation of the three. This paper addresses the following two intertwined research questions: first, can the value of Fortune 1000 firms be estimated using either the discounted cash flows method or the residual operating income method? and second, is one method better than the other? This study relies upon actual financial statement data and the real-time dynamics of the business operations. The results of this study offer strong evidence for the viability of both the DCF and the ROPI methods of estimating firm value. Not only are their estimates very highly correlated with each other (frequently coming to the exact same point estimate), they are also highly correlated with the actual stock price.
  Keywords: Business valuation; free cash flow approach; discounted cash flow model; residual operating income method.
  DOI: 10.1504/IJMEF.2023.10057729
   
  
• Time-varying threshold dynamics of US bond yield spreads and Dow index returns  
  by Nicholas Lee, Yih-Bey Lin, Ming-Jun Chen 
  Abstract: Changes in the slope of the yield curve accompanied by rich instability in the stock market could lead to structural changes. This paper examines threshold relations between yield curve and stock market price movement applying the threshold vector error correction model (TVECM) with two regimes, usual and unusual regimes. We consider weekly spreads between the 10- and 2-year Treasury bonds yield curve (YC) and Dow index price (DJ) transformed by the log function. Besides, we further discuss the possibility of time-varying threshold relations across different subperiods. Our findings show that there is threshold relation from DJ to YC in the usual regime but bidirectional relations in the unusual regime, with stronger relation from DJ to YC. Furthermore, time-varying threshold dynamics of two variables can be detected at different times. Thus, our contribution is that yield curve slope change can drive big moves in stock prices.
  Keywords: yield spread; stock market; threshold relation; time-varying.
  DOI: 10.1504/IJMEF.2023.10057730
   
  
• Are Machine Learning models more effective than logistic regressions in predicting bank credit risk? An assessment from the Brazilian financial markets  
  by Alex Pinto, Alexandre Ywata De Carvalho, Mathias Schneid Tessmann, Alexandre Lima 
  Abstract: This paper seeks to investigate whether machine learning models are more efficient than logistic regressions to predict credit risk in financial institutions. Through an empirical study that develops the models and applies interpretability techniques to identify the relationships between the variables and their importance, data and economic-financial indicators from Brazilian firms in the wholesale segment are used, combined with the use of supervised machine learning. The results indicate that the model with the best predictor performance is the XGBoost, with an accuracy of 0.59 and a ROC curve of 0.97 for out-of-time data. In the interpretability analysis - via sharp value - the results corroborate the importance and economic meaning of the variables. These findings confirm the improvement in the predictive capacity of the models using machine learning techniques and are useful for the financial literature and for financial market agents in general.
  Keywords: Credit Risk; Machine Learning; Finance; Banking.
  DOI: 10.1504/IJMEF.2023.10058589
   
  
• Does Fintech adoption improve bank performance?  
  by Wei Wang, Fernando Moreira, Yiteng Liang 
  Abstract: In this paper, we estimate the effect of Fintech activities on bank performance by using data on 355 American banks from 2010 to 2020. Our results show that Fintech plays a significant role in promoting bank performance. Bank performance can be improved by 0.30% when Fintech level is improved by one unit. We also find that the impact of Fintech on bank performance is heterogeneous in terms of bank size and chartered membership. In particular, the influence of Fintech on the leading banks and the State-chartered nonmember banks are more significant than on small and medium banks. Thirdly, the development of bank financial technology in every region of the United States is uneven. In addition, we put forward policy suggestions on how Fintech can promote bank performance through four aspects.
  Keywords: Fintech; bank performance; commercial banks; heterogeneous impact; bank size; chartered membership; American banks; sysGMM; fixed effects; Ordinary Least Squares.
  DOI: 10.1504/IJMEF.2023.10058590
   
  
• Indian Stock Market Sensitivity to Macroeconomic and Non-Macroeconomic Factors: An Industry Level Analysis  
  by Muhammadriyaj Faniband, Pravin Jadhav 
  Abstract: This paper examines the impact of macroeconomic factors and non-macroeconomic factors on the ten stock indices of the National Stock Exchange using quantile regression methodology and the monthly dataset from April 2010 to May 2022. The exchange rate has a less influence on IT, infra, pharma, FMCG and realty stock returns. Further, all the sectors except energy are not sensitive to inflation. Moreover, financial services, infra, pharma, private banks and realty are the sector where the impact of interest rates are not visible. The sectors that are not affected by geopolitical risk include auto, infra, IT, pharma, private and public sector banks. Furthermore, financial services, infra, pharma, private bank sectors are affected by economic policy uncertainty. The volatility has a negative and Nifty has a positive impact on all the sectors. Our results are useful for investors and portfolio managers to make informed investment decisions and manage their portfolio risk.
  Keywords: Macroeconomic; Non-macroeconomic; Stock Returns; Quantile Regression; India.
  DOI: 10.1504/IJMEF.2023.10059848
   
  
• ESG performance and cost of capital: what do we know? Evidence from the United States.  
  by Ricky Wong, Hoang Thi My Nguyen, Nana Abena Kwansa 
  Abstract: This paper empirically examines the impact of environmental, social and governance (ESG) performance and its individual components on cost of debt and cost of equity. Using a sample of S&P 500 firms from 2015-2021, we find that strong ESG performance reduces cost of debt and cost of equity. Furthermore, our analyses on the individual constituents of the ESG performance indicate that firms with high environmental and social performance benefit from both lower cost of debt and cost of equity with the effect more pronounced for cost of equity. The evidence also indicates that high performance in governance only has implications for equity cost of capital. The evidence supports the position that integrating relevant ESG activities in firm business model has capital raising benefits.
  Keywords: Environmental; Social and Governance; Capital Structure; Cost of debt; Cost of Equity.
  DOI: 10.1504/IJMEF.2023.10059849
   
  

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

• 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 ?asta 
  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: NTSSCEM2021 Emerging Markets The Benefits and Risks of Structural Changes in a Postpandemic World

• ECONOMIC RESILIENCE OF LARGE URBANIZED RUSSIAN REGIONS TO PANDEMIC-INDUCED SHOCKS  
  by Irina Turgel, Olga Chernova 
  Abstract: The aim of this study is to evaluate the level of resistance of large highly urbanized Russian regions to recessionary shocks caused by the pandemic. We calculated the index of adaptivity by using the Mahalanobis distances method. Depending on the changes in the level of regional economic resistance at different stages of the pandemic, we identified six scenarios. We drew up profiles of regional resistance and grouped the regions accordingly. We found that all the regions demonstrated a higher level of resistance during the first wave. The most significant factors that affected the regions' adaptive capacity were the following: the sectoral composition of their economies, population distribution patterns, the share of small businesses, 'systemically important' industrial enterprises, innovative propensity as well as the severity of lockdown restrictions and state support.
  Keywords: COVID-19; pandemic; coronavirus crisis; highly urbanized regions; regional economic; resistance; adaptability; stable development; factors of regional development; stability index; economic potential.
  DOI: 10.1504/IJMEF.2023.10054321
   
  

Special Issue on: SIBR2022 SMEs' New Financial and Operational Strategies in the Post-Pandemic Global Markets

• Effect of organisational agility and competitive action on competitive advantage study on small businesses in Banten Province, Indonesia  
  by Sitti Ma’ani Nina, Sam’un Jaja Raharja, Rusdin Tahir, Margo Purnomo 
  Abstract: Women entrepreneurs play important role in economic growth, domestically and internationally. The purpose of this study is to test the influence of organisational agility and competitive action on competitive advantage in small businesses managed by women entrepreneurs in Banten Province, Indonesia. This research method used explanatory survey with a quantitative approach. The data were collected by surveying using instruments in the form of questionnaires. The data were analysed descriptivelyinferentially by using partial least squares structural equation modelling (SEM). Results showed that organisational agility and competitive action simultaneously and partially had a positive and significant effect on competitive advantage. The research contribution provides a new look at the field of strategic entrepreneurship because capability-building processes and entrepreneurial action processes at the typical organisational level build the creation theory of entrepreneurial action.
  Keywords: organisational agility; competitive action; women’s entrepreneurial action; competitive advantage; entrepreneurial action; Banten Province.
  DOI: 10.1504/IJMEF.2022.10053175
   
  
• Cultural and Institutional Interaction Effects on Firm Bribery  
  by Piyaphan Changwatchai, Siwapong Dheera-aumpon 
  Abstract: Firm bribery can be influenced by culture and institutions. They may have both direct and indirect effects on firm bribery. The aim of the study, therefore, is to examine the interaction effects of culture and institutions on firm bribery. This study relies on data from the World Bank's Enterprise Surveys on firm bribery, Hofstede's cultural data, and the Worldwide Governance Indicators for institutional data. According to the findings, a country's level of power distance has a moderating effect on the negative relationship between firm bribery and some institutional factors, including government effectiveness as well as voice and accountability. To combat bribery, the government of a nation with a high power distance should focus on enhancing its service quality while also allowing for greater freedom of speech and free media.
  Keywords: bribe; business; culture; institution.
  DOI: 10.1504/IJMEF.2023.10057731
   
  
• The Effect of Institutional Distance on Foreign Direct Investment in Thailand  
  by Siwapong Dheera-aumpon, Piyaphan Changwatchai 
  Abstract: Inward foreign direct investment (FDI) is important for Thailand in terms of increasing value added and productivity while also fostering economic growth. The analysis of FDI determinants is necessary in order to promote inward FDI. This research then aims to study the FDI determinants focusing on institutional distance. This research uses secondary data from 2006
  Keywords: Institutional Distance; FDI; Thailand.
  DOI: 10.1504/IJMEF.2023.10057732
   
  
• The Reconciliation of Management and Shareholders through Indonesia Government Policy on Voluntarily Corporate Social Activities Disclosure  
  by Yavida Nurim, Nung Harjanto, Nur Rizki Wijaya, Agung Nur Probohudono 
  Abstract: This study examines the effect of corporate social responsibility (CSR) disclosure on bond ratings and market share to represent the alignment of interest between management and shareholder. In a country that is dominated by the family firm, such as Indonesia, the CSR of family firm underperform that of non-family firms. Moreover, in a voluntary CSR disclosure atmosphere, the reporting does not have the objective of fulfilling the Government's rule. We assume that CSR activity needs support from majority shareholders in family firms because it will reduce their welfare. We predict that higher CSR disclosure implies an effort of management to impress creditors and society. The creditor needs to guarantee the ability to pay back loans and interest, while society-represented customers prefer high-quality products. It implies that investors can consider non-financial performance, such as CSR performance because it becomes a benchmark for the company's efforts to avoid the financial problem from negative events related to reputation.
  Keywords: corporate social responsibility; bond rating: market share; sustainability report; stakeholder theory; reputation; environmental performance; social performance; economic performance.
  DOI: 10.1504/IJMEF.2023.10057733
   
  
• Peer-to-Peer Lending Default Prediction Model: A Credit Scoring Application with Social Media Data  
  by Taufik Faturohman, Sudarso Kaderi Wiryono, Hasna Laila Nabila Khilfah, Allesandra Andri, Muhammad Abdullah Hamzah Syaiful Mukminin, Okta Saputra, Gun Gun Indrayana 
  Abstract: This study applied social media data to build credit scoring models in reducing non-performing loans in a peer-to-peer (P2P) lending portfolio. P2P lending can increase financial inclusion that has been known as one of the important factors in reducing poverty and enhancing prosperity. Discriminant analysis (DA), logistic regression (LR), neural network (NN), and support vector machine (SVM) were employed to compare effectiveness of the models. Results show that NN and SVM provide better outputs in predicting the default prediction model. Furthermore, social media data comprehensively increase the accuracy of lending default predictions.
  Keywords: peer-to-peer lending; credit scoring; social media; neural network; support vector machine; financial technology; non-performing loan.
  DOI: 10.1504/IJMEF.2023.10057734
   
  
• USER ACCEPTANCE OF ISLAMIC BANKING IN INDONESIA: THE IMPLEMENTATION OF TECHNOLOGY ACCEPTANCE MODELS  
  by Taufik Faturohman, Mega Zhafarina Purwono, Say Keat Ooi 
  Abstract: Muslim customers’ demands for financing in accordance with their religious values urge the emergence of Islamic banks. However, for the past 30 years, the public has not shown great concern for the development of Islamic banks. Therefore, the Indonesian people have the potential to develop Islamic banks, especially by Muslims. The purpose of this study was to assess factors influencing Indonesian customers’ acceptance in Islamic banking using the technology acceptance model. This study found that perceived usefulness, perceived ease of use, trust, religiosity, and amount of information influenced Indonesian customers’ acceptance in Islamic banking.
  Keywords: Islamic Bank; Acceptance; Technology Acceptance Model (TAM); Indonesia.
  DOI: 10.1504/IJMEF.2023.10057735
   
  
• The Determinant of Innovations and Its Impact on Business Performance in Indonesia during Covid-19 Pandemic.  
  by Anang Muftiadi, Ratih Purbasari, Raden Marsha Aulia Hakim, Richa Nahdalaily Fathara, Arbi Abdul Kahfi, Donghyun Park, Cynthia Castillejos Petalcorin, Jinjarak Yothin 
  Abstract: Innovation is regarded as an important source of economic growth. Therefore, this study aims to analyze the effect of economic sector structures on innovations and the impact of innovations on business performance. It uses a regression model based on data from Statistics Indonesia 2020-2021. The results showed that the market structure is highly significant in determining the level of innovations. Other factors affecting this inventive method include the gender balance of executives, domestic investment, companies age of 5-10 years, and the existence of innovations division. In 2020, Covid-19 Pandemic affected the level of innovation by declining to 29.7% from 32% in 2019. There are two innovation types including product and process. A total of 24% of companies internally produce new innovations in 2020. It was discovered that product innovation significantly increased revenue and efficiency, while the process innovations only contribute to increased competitiveness. In business governance, market structure can be used to assess the level of innovations, furthermore the level of innovations of economic sectors has the potential impact on business and economic growth.
  Keywords: business innovation; market structure; innovation performance; business governance.
  DOI: 10.1504/IJMEF.2023.10058591