Social Sciences Citation Index Impact Factor 2024: 0.500 Established in 2004 with the support of the National Central Bank of Poland, the Financial Internet Quarterly (FIQ), initially 'Financial Internet Quarterly e-Finanse’, is a scientific Journal published by The University of Information Technology and Management in Rzeszow, Poland. As a peer-reviewed, open-access Journal, FIQ plays a pivotal role in bridging the research gap within the European financial scholarly community, appealing to a wide array of finance professionals, academics, and students. By eliminating Article Processing Charges (APCs), it ensures unrestricted access to its comprehensive research findings. FIQ’s scope spans crucial financial disciplines. It offers insights into corporate finance, focusing on investment strategies and governance. The journal delves into banking, covering risk management and financial innovation, and explores public finance topics like fiscal policy and taxation. It also examines capital markets, analyzing securities trading and market dynamics, alongside addressing insurance, accounting, and legal aspects of financial management. This broad coverage ensures FIQ’s role as a pivotal platform for finance-related discourse, upheld by its distinguished Editorial Board. The Editorial Board, consisting of esteemed scholars, ensures that FIQ maintains rigorous academic standards and relevance in its publications. This commitment positions FIQ as an essential resource for advancing knowledge and fostering dialogue within the global financial community.
DATA MINING APPROACH IN DETERMINING THE RELATIONSHIPS BETWEEN THE ECONOMY AND THE GENERAL GOVERNMENT SECTOR SIZE
This article is dedicated to a study of the relations between the economy and the size of the general government sector. The main aim of the article is an identification of the most important variables that are used to determine relations between the economy and size of the sector, as well as to identify frequency of their occurrences in relations to pairs of variables which describe an economy and the size of the sector. In order to explore these relations, the authors used Bayes networks. The economies of EU member states and their public finance systems were the object of analyses in this article. The period that was selected for the research covered the years 2000-2013 (inclusive). In order to describe economies, the authors selected 18 variables, whereas to describe the general government sector - 15 variables. These variables were sourced from databases of Eurostat, OECD and the World Bank. Among an economy’s measures and general government sector measures, there were also some benchmarks found (standard and classic) as well as measures proposed by the authors, which had not been used in the scientific descriptions that were dedicated to research on size of the general government sector. Ipso facto, this article fits in the discussion on not only the size of the general government sector, but also attempts to answer the question of whether the economy determines the size of the sector. To date, the research questions on the impact of the size of the general government sector on the economy of a particular country have been common. This article inverts the investigated dependence and its content concentrates on the attempt to determine if the size of the sector in a particular country is a function of its economy expressed by ratios adopted in conducted the research.
relationship between economy and general government sector size
Copyright (c) 2026 https://creativecommons.org/licenses/by-nc-nd/4.0
Fuzzy representation of a limit order book as a measure of stock liquidity
In this paper, we seek to ascertain whether the recently developed ordered fuzzy number (OFN) representation of a limit order book (LOB) by Marszałek and Burczyński (2024) may serve as a measure of stock liquidity. In particular, we aim to test whether this measure contains similar or distinct information than other stock liquidity measures, particularly relying only on best buy and sell orders. To this end, we have investigated the data on 259 companies in total over an eight-year period from 2014 to 2021. In total, we have compared the tested measure with eight different measures derived from the LOB data, all of which are computed on a weekly basis. Our results indicate that the OFN representation of a LOB correlates with other liquidity measures in the time series but is less correlated with them in the cross-section. Furthermore, it contains a distinct piece of information compared to the other measures, suggesting that it may capture a different liquidity dimension. In summary, the findings of the study suggest that the OFN representation of a LOB could serve as a measure of stock liquidity, particularly for large-volume trades and stocks with shallow or fragmented order books.
Copyright (c) 2026 Financial Internet Quarterly https://creativecommons.org/licenses/by-nc-nd/4.0
From accruals to real activities: Understanding the trade-off in earnings management choices amid XBRL adoption in Italy
This study examines the factors influencing managerial decisions between accrual-based earnings management (AEM) and real earnings management (REM) following the mandatory adoption of eXtensible Business Reporting Language (XBRL) among firms listed on the Italian stock exchange. By analyzing the shift between AEM and REM, the research provides insights into how enhanced financial reporting transparency affects managerial decision-making. The study employs an empirical analysis of Italian firms to assess the relationship between XBRL adoption and earnings management practices. The research investigates the extent to which firms adjust their earnings management strategies in response to increased transparency, with a specific focus on the trade-off between AEM and REM. The results indicate that mandatory XBRL adoption is associated with a decline in accrual-based earnings management (AEM) and a corresponding increase in real earnings management (REM) among Italian firms. The findings suggest that increased financial reporting transparency prompts firms to rely more on REM while simultaneously reducing their use of AEM. Additionally, the intensity of the trade-off between AEM and REM is found to be positively moderated by firms classified as SUSPECT, which are those reporting only small positive profits or slight increases in profitability. These firms would likely have experienced losses or declining profitability without the use of earnings management tools, with a stronger tendency to rely on AEM over REM. However, this moderating effect was not observed among loss-making (LOSS) firms. This study makes two key contributions. First, it is among the first to examine the impact of XBRL implementation on earnings management practices within a European context, specifically in Italy. Second, it provides novel insights into the factors influencing the trade-off between AEM and REM, addressing an important gap. The findings highlight the unintended consequences of financial reporting standardization, demonstrating that increased transparency may shift earnings management strategies rather than eliminate them. Regulators and policymakers should consider these effects when designing financial disclosure regulations to mitigate potential opportunistic behavior by firms.
Empirical evidence on the roles of financial technology products on the shadow economy: a comparative analysis between advanced, emerging and developing countries
The shadow economy, which can be defined as undeclared economic activities carried out in secret from public authorities,, and that cause negativities such as tax losses outside of official economic activities, has become a part of the economic activities of both developed and developing countries. The shadow economy literature bears witness to very different findings within the framework of national income levels, and this encourages researchers to address the issue from different perspectives with further studies. This study examines the effects of financial technology products, inflation, and the rule of law on the shadow economy in advanced, emerging and developing countries by using the method of the moment-quantile regression model and different robustness control methods. The most interesting finding from the study is that the effect of financial technology products on the shadow economy is asymmetric in both country groups. Accordingly, while automated teller machine use reduces the shadow economy in advanced countries, it increases it in emerging and developing countries. However, inflation has an increasing effect on the shadow economy in both groups, while the rule of law has a decreasing effect. It can be said that these empirical results provide policy implications that will help decision-makers develop strategies in the fight against the shadow economy.
Advanced and Emerging and Developing Countries
Examining the volatility spillover between the fear index and the magnificent seven technology stocks
This study investigates the volatility spillover dynamics between the VIX fear index and the Magnificent Seven technology stocks - namely Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla - over the period of June 2012 to March 2024. To achieve this objective, the variance causality test is employed to detect potential volatility transmissions among the series. Preliminary diagnostic tests confirm the validity of the GARCH (1,1) specification for all individual return series. The results from the variance causality analysis indicate significant volatility spillovers from the VIX to the conditional variances of Microsoft, Alphabet, Meta Platforms, Nvidia, and Amazon stocks. Building on these findings, impulse-response functions and variance decomposition analyses are conducted based on the conditional variance series estimated through the GARCH (1,1) model. The impulse-response analysis reveals that a positive shock in the VIX generates a temporary increase in the conditional volatility of Apple, Alphabet, Nvidia, and Tesla stocks, which gradually diminishes over time. Conversely, a VIX shock induces a negative volatility response in Meta Platforms, Microsoft, and Amazon stocks, although these effects also fade and converge to zero in the long run. Variance decomposition results further show that, in the short term, the volatility of each technology stock is predominantly driven by its own internal dynamics. However, as the forecast horizon extends, the influence of the VIX index becomes increasingly pronounced, underscoring its role as a significant external volatility driver. These findings imply that investors' perceptions of heightened risk - captured by the VIX index - are effectively transmitted to technology stock markets. Accordingly, the incorporation of the VIX index into volatility forecasting models can enhance prediction accuracy. From a practical standpoint, the study underscores the importance of monitoring the fear index when developing portfolio allocation and risk management strategies-oriented equities.
Impact of selected macroeconomic factors on financial markets: a case study of the USA
The financial environment is under great pressure as a result of dynamically changing macroeconomic factors. In this situation, full of uncertainty, understanding the relationship between macroeconomic factors and financial markets becomes a key issue. Market analysts and investors are constantly studying the impact of various variables on the stability of the economy and the performance of financial markets. The purpose of this study is to analyze the impact of selected macroeconomic factors on financial markets over the 2018-2022 period, using the Nasdaq 100 index. Variables such as GDP, inflation, interest rate, consumer confidence, unemployment and changes in commodity prices are examined in terms of their relationship to the returns of the US technology index. The results of the analysis allow researchers of the topic, as well as stock market investors, to draw conclusions about potential market trends, providing valuable guidance for portfolio managers in a dynamic macroeconomic environment. The main value of the study is to assess how these selected factors affect stock market indices.
The Polish consumer and BNPL. Profile and motivation
BNPL can lead to an expansion of consumption, but also to household over-indebtedness. The aim of the article is to define the profile of the BNPL user in Poland based on responses to a survey conducted using the CAWI technique among BNPL clients in Poland in August 2024. The relations are identified by use of Pearson χ2 tests while Cramer's V coefficient provides for the measuring of dependencies between respective demographic, economic and behavioural features and reasons for BNPL usage. The results indicate that BNPL in Poland is mainly used by young women. BNPLs are chosen by consumers with a secondary or higher education and most often not because they lack the financial means to make purchases, but for the opportunity to try the product without paying for it and to better manage the household budget. During the interest-free period, people with relatively better education and less debt at banks and non-bank loan companies settle their obligations.
Impact of fiscal sustainability on economic growth in Kenya
Fiscal sustainability refers to a government's capacity to generate sufficient revenue to cover its expenses and repay its debts without accumulating excessive liabilities or creating new money. Recent observations indicate that Kenya's economic growth has slowed, prompting concerns about its fiscal sustainability. This study investigates the long-term relationship between Kenya's economic growth and certain budgetary sustainability indicators, specifically the public primary budget balance and external debt. Two control variables - trade balance and inflation - were also considered, with data sourced from the IMF and World Bank. Utilizing time series annual data spanning from 1990 to 2023, the study employed the autoregressive distributed lag (ARDL) bounds test and error correction model to analyze the data through three stages: unit root testing, F-bounds cointegration testing, and estimating the ARDL error correction model. The findings reveal a long-term relationship between fiscal sustainability indicators and economic growth in Kenya. Notably, the primary budget balance, which serves as a proxy for fiscal sustainability, as well as inflation and trade balance, were found to negatively and significantly impact economic growth in the country. Conversely, external debt, another proxy for fiscal sustainability, exhibited a positive effect on economic growth over the long term. To foster sustained economic growth in Kenya, government policymakers should prioritize controlling public spending, managing external debt levels, and enhancing revenue generation efforts.
TREASURY SINGLE ACCOUNT AND FINANCIAL INTERMEDIATION IN NIGERIA
In the wake of dissenting views on the import of the implementation of the Treasury Single Account (TSA) in Nigeria, the researchers consider it wise to empirically examine the impact of TSA on funds availability for lending to the economy. The research is meant to evaluate and predict what Nigeria should expect in the era of TSA using existing data. Annual financial data of secondary origin, obtained from Central Bank of Nigeria Statistical Bulletin spanning 1975 and 2015 are used in the study. Financial intermediation is represented by Total Credit to the economy (as explained variable) while Total Credit to Private Sector (TCPS), Total Federal Government Revenue (TFREV), Deposit Interest Rate (DPRT), Prime Lending Rate (PLR), Cash Reserve Requirement (CRR) and Liquidity ratio (LIQR) are explanatory variables. TFREV is a direct representation of TSA in the model. The data are analysed using Ordinary Least Square technique of multiple regression. The results clearly show that TFREV assumes a positive and statistically non-significant relationship with TCR. TCPS and DPRT also exhibit a positive relationship with TCR. PLR, CRR and LIQR exhibit negative relationship with TCR, all in line with the expectations of the study. Consequently, the researchers recommend that since government revenues support banks’ lending and increase their liquidity, movement of these funds from commercial banks will exert negative impact on bank liquidity and their ability to grant loans and subsequently heightens the lending rate; therefore, a distributed or liberal form of TSA model should be adopted for the safety of our banking industry.
Copyright (c) 2024 Financial Internet Quarterly https://creativecommons.org/licenses/by-nc-nd/4.0
CBDC and trust in A central bank: transitivity of preferences vs. the privacy paradox
The privacy and anonymity of transactions are considered some of the biggest challenges when designing Central Bank Digital Currencies (CBDC). While many surveys show that people strongly prefer privacy in their transactions, behavioral theories suggest that human behaviour in digital spaces is more complex, a phenomenon known as the privacy paradox. The research aims to measure privacy preferences in specific situations and examine how these preferences influence choices between anonymous transactions versus the design of CBDC functionality. The study used the ANOVA method to determine if there were significant differences between groups based on privacy preferences. Survey data from respondents in emerging markets showed a mild form of the privacy paradox. The research measured privacy tendencies in three areas: general, digital, and financial environments, and found a statistically significant correlation between these measures. However, the respondents' privacy preferences did not consistently align with their choices between transaction anonymity and CBDC functionality, nor did they consistently relate to trust in central banks as privacy guarantors or the importance of central bank inde- pendence for ensuring privacy. The ANOVA test found no significant differences in privacy pref- erences between respondents who prioritized anonymity or functionality, or between those who trusted or did not trust central banks to guarantee privacy and their independence in doing so. This suggests that when faced with complex decisions, people may exhibit intricate patterns of preference, which is crucial for optimizing CBDC design.
Retirement attitudes in Poland and Southeast Europe
The paper aims to present the retirement attitudes of individuals in Poland and Southeastern European countries. In our study, we have shown that many factors influence retirement decisions. These decisions are influenced by the state-guaranteed pension level and the individual's perception of this security, and individual retirement savings. Socio-demographic characteristics such as age and gender also play a crucial role in shaping these decisions. Firstly, our study shows that age has a statistically significant effect on stated attitudes towards the state pension. For each additional year of life, the odds of respondents stating that they will cover their expenses in old age by drawing a state pension increase by 4,4% (Poland) and 1% (Southeastern Europe). Secondly, respondents identified the state as the primary source of retirement security. This trend is observed in both Poland and other European countries. The data used in the article comes from national surveys conducted using the updated 2018 OECD/INFE Toolkit for measuring financial literacy and financial inclusion. The analyses in this article cover Poland and seven Southeastern European countries that participated in the OECD/INFE survey (Bulgaria, Croatia, Georgia, North Macedonia, Moldova, Montenegro, and Romania).
Copyright (c) 2025 Financial Internet Quarterly https://creativecommons.org/licenses/by-nc-nd/4.0
Effects of eurozone and schengen area accession on real estate prices
The real estate sector plays an important role in economic cycles and macroeconomic stability, as shown by various studies that establish a link between real estate prices and economic activity. While the traditional determinants of real estate prices have been extensively studied, the impact of institutional factors such as Eurozone membership and Schengen accession has not yet been sufficiently researched. Monetary integration promotes economic growth by boosting trade, investment and financial integration, while lower interest rates improve access to credit, which drives demand for real estate. Similarly, Schengen accession increases labor mobility, cross-border economic activity and the acquisition of real estate, further fueling demand for housing. Therefore, this study aims to examine the role that these institutional changes have on the real estate markets in the EU member states. A panel data analysis for the period from 2000 to 2023 using a fixed effects model confirms that joining the Eurozone has a statistically significant impact on house prices, primarily due to lower interest rates and economic growth. Schengen membership also contributes to rising real estate prices as it increases labor mobility and tourism-driven demand. The study findings suggest that policy makers should address housing affordability issues through targeted measures, including fiscal and regulatory interventions, rather than relying solely on monetary policy.
Managing state budget available cash resources: case study of Poland
The aim of the paper is to review how free funds (available cash resources) are managed in the Polish state budget, to review the solutions used at the national and local levels in other countries and assess the quality of management in Polish conditions. Analysis of the budget available cash resources covered the last twelve years and included both periods of economic growth as well as crisis years. Methodology of the research included financial analysis of state budget revenues, expenditure, debt income and debt repayment expenses, as well as public debt statistics and ear-marked funds data. The results obtained during the study provide for the formulation of a negative opinion regarding the management of available funds in the state budget. Based on the research results, the authors prepared a number of recommendations, the implementation of which will increase the effectiveness of public funds management.
Determinants of thermal comfort: analysis of public buildings in a post-transition context
Due to an ongoing energy crisis and fluctuating energy prices, the prerequisites for maintaining optimal indoor environmental quality (IEQ), a critical determinant of productivity, cognitive performance, and overall well-being, have been significantly disrupted. This study focuses on examining determinants of thermal comfort, a subjective evaluation of the thermal environment and a key component of IEQ. Through a survey of employees and users of public buildings in Bosnia and Herzegovina, the research employs a four-stage regression analysis to identify the main predictors of thermal comfort. Although 71.33% of respondents report satisfaction with the heating system, only 43.13% find the heating to be adequate, with the optimal perceived temperature averaging 21.66°C. The results show that key factors influencing thermal comfort include thermal sensation, thermal memory, gender, and respondent type (employee versus user). These seminal results could offer valuable productivity and financial implications for energy savings, especially for budgetary policymakers aiming to reduce energy consumption as well as for public sector management and public institutions seeking to improve well-being and productivity.
Bridging the information gap: what are the impacts of EPCs on Prague’s residential market selling prices?
It is assumed that energy performance certificates (EPC) can promote energy efficiency, increase property values, and improve market liquidity by providing trustworthy energy performance information. This article will provide a comprehensive study of the impact of EPCs on the residential selling prices in Prague, the capital of the Czech Republic. For the analysis, the original dataset was extracted from the publicly accessible sreality.cz portal. The hedonic regression model was applied to evaluate how the EPC influences the selling price of apartments in Prague. The regression analysis results are entirely in line with the analyzed current literature. EPC ratings have been proven to significantly affect the selling price in Prague and several other locations. In the most affluent locations of Prague, i.e., typically historical locations, the EPC ratings have not proved to be a statistically significant price factor because these locations suffer from excess demand and limited supply of properties.
Assessment of the impact of innovation and investment activities on the restoration of economic potential of ukrainian enterprises in the context of industry 5.0 and the circular economy
The purpose of this article is to assess the extent to which the activation of innovation and investment activities contributes to the restoration of the economic potential of enterprises in Ukraine under the conditions of transition to Industry 5.0 standards and the implementation of circular economy principles. The focus is placed on Ukrainian enterprises as the object of the study, considering sectoral differences and the specific challenges caused by the ongoing war. The task is to present a methodological approach that will allow us to present how to assess the significance of the influence of certain areas in the activation of innovative and investment activities of an enterprise on the restoration of economic potential. The principles of Industry 5.0 and the circular economy are also taken into account. As a result, the method of pairwise comparison was chosen and, by involving experts, to determine the most significant factors of the activation of innovative and investment activities of an enterprise that affect the restoration of economic potential, taking into account the standards of Industry 5.0 and the circular economy. The results may have practical significance in further use within the activities of enterprises of Ukraine and beyond. This article examines the impact of activating innovation and investment activities on the restoration of economic potential of Ukrainian enterprises amid the transition to Industry 5.0 and the adoption of circular economy principles.
Construction of a framework for enablers of financial well-being among urban households in India: an ISM approach
The purpose of this study is to identify the enablers of financial well-being among urban households. Once these enablers are identified, the authors aim to develop a framework to explore their positioning and prepare a hierarchical structure of the enablers of financial well-being in the overall financial status of urban households in India. The present study explores what the enablers of urban households’ financial well-being in India are and what the hierarchical framework is for those enablers. Data were collected from 59 people who were heads of families making financial decisions in different parts of India. The authors identified 11 unique enablers from the literature. Interpretive Structural Modelling (ISM) is used to identify the hierarchical structure of the enablers of financial well-being. This study generated six levels of enablers, and the lowest level of the model is education level (E1), which is a key enabler of financial well-being, and the topmost level is (E10), which is satisfaction in life. The model suggests that education level enables people to achieve life satisfaction by improving their financial well-being. This study fills the gap by identifying key enablers using the literature and arranging them into a hierarchical model using the ISM technique. This helps in extending the present literature as well as improving financial well-being.
Uncertainty as a determinant of dividend decisions of public companies during the COVID-19 pandemic. The case of companies listed on the Warsaw Stock Exchange
The aim of the article is to analyze the impact of an unpredictable individual event such as the COVID-19 pandemic on dividend decisions of companies listed on the Warsaw Stock Exchange. Due to the fact that the vast majority of companies do not provide detailed justification for dividend decisions, the analysis was based on a panel probit model with random effects of dividend propensity in the years 1998-2019, which was used to develop forecasts of dividend payments in 2020. The difference between the forecast and the actual dividend decision made by companies in 2020 could be attributed to the uncertainty caused by the pandemic. The analysis covered 152 domestic companies listed on the Warsaw Stock Exchange that paid dividends in 2019 and/or in 2020. The calculations showed that, being uncertain about the future macroeconomic situation and, consequently, about their own, some companies stopped systematic annual dividend payments or significantly reduced their level. The companies made such decisions despite the fact that the forecasts developed on the basis of the probit model, proposed in the paper, indicated that they should pay dividends in 2020, as indicated by their good economic and financial situation.
Panel Probit Model with Random Effects of Propensity to Pay Dividend
EXPLORING THE LINK BETWEEN FINANCIAL GLOBALIZATION, FINANCIAL DEVELOPMENT, HUMAN DEVELOPMENT AND ECONOMIC GROWTH IN CHINA
The main objective of this study is to examine the relationship between globalization, financial development, human development and economic growth. The financial dimension of globalization, which is a multi-dimensional concept, is focused on, and the impact of financial globalization is investigated. The analysis was conducted in China. The KOF Globalization Index was used to represent financial globalization, the share of domestic loans given to the private sector in GDP was used to represent financial development, the Human Development Index was used to represent human development, and the GDP per capita value was used to represent economic growth. Because the stationarity levels of the variables were different from each other and there was a variable with I (2), the Toda-Yamamoto causality test was applied as a method. According to the results of the analysis covering the period 1990-2022, there is a causal relationship between the variables. There is bidirectional causality between financial globalization and economic growth. The causal relationship between human development and economic growth is also bi-directional. The causality relationship between financial development and economic growth is one-way, and the direction of causality is from economic growth to financial development. Economic growth should be encouraged to enhance financial development in China. Moreover, policies aimed at improving financial globalization and human development can be used to increase economic growth.
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RELATIONSHIP BETWEEN SICK LEAVE AND WAGES BY VOIVODESHIP AND INDUSTRY. THE CASE OF POLAND
The aim of the study was to confirm whether employees insured with the Social Insurance Institution (ZUS) are increasingly taking advantage of the right to sick leave and to prove that there is a relationship between sick leave and wages in individual voivodeships and sections of the national economy. The research was conducted based on data provided by ZUS and Statistics Poland. The analyses in the part concerning changes in sick leave usages were conducted in the period 2006-2023, while the part concerning the relationship between wages and sick leave in 2023. The analyses indicate a growing trend in sick leave, especially during the COVID-19 pandemic. A relationship was also demonstrated between wages and the number of sickness absences and the number of days spent on it.
THE FINANCIAL SITUATION OF PENSIONERS IN POLAND IN THE PERSPECTIVE OF ACHIEVING SUSTAINABLE DEVELOPMENT GOAL NUMBER 1: NO POVERTY
The paper will discuss the problem of pensioner poverty in Poland, its elimination, as well as the question of the impact of social policy measures on the Sustainable Development Goals (SDGs) called ‘no poverty’. The purpose of the article is to assess the financial situation of pensioners in Poland, taking into account the impact of supplementary pension benefits (understood in the study as the thirteenth and fourteenth pensions) on the level of poverty among pensioners in the context of achieving the Sustainable Development Goals in Poland. The topic of pensioner poverty and its consequences is one of the aspects often overlooked in the discussion of sustainable development, where ‘poverty’ is simplified exclusively to a social issue, while it is an important aspect of economic development. To achieve the purpose of the study, the authors used statistical data describing the problem of poverty and changes in this area in the period 2010-2024 (where possible, a wider range of data has been provided to provide a more complete picture of the phenomenon), based on data from the Statistics Poland and the Social Insurance Institution (ZUS). The analyses carried out indicate a short-term positive impact on the proportion of poor pensioners in Poland, but at the same time little effectiveness of the benefits known as 13th and 14th pensions.
DOES CLIMATE POLICY UNCERTAINTY MOVE WITH STOCK MARKETS?
This study aims to understand how climate policy uncertainty affects investor behavior and whether it moves with stock markets in advanced economies. Accordingly, we examine data for January 2000-2023 for the stock market indices of Sweden, the United Kingdom, Germany, Norway, the Netherlands, and Finland, which have a ‘good’ CCP rating according to the MSCI classification and the climate policy uncertainty index. Furthermore, we apply two main methodologies: Wavelet Coherence Analysis and the Breitung and Candelon Frequency Causality Test. WCA shows the time-based co-movements between CPU and stock market indices and their effects on each other. We also consider the causality test to examine causality at various frequencies. The WCA results reveal a relationship between the CPU index and all markets except the Norwegian market. As a result of the causality, we conclude that there is a strong causality between the CPU index and the Finnish and Swedish stock markets in the short run, a strong causality between the CPU index and the Dutch market in the long run, and a weak causality between the CPU index and the German stock market in the short, medium and long run. Investors can develop strategies to mitigate risks and hedge volatility by monitoring exogenous factors such as CPU. Strategies such as quick-action stop-loss orders are recommended, especially for short-term CPU-affected markets such as the Swedish and Finnish stock markets.
THE GLOBAL SHIFT IN MONETARY SOVEREIGNTY
This study aims to systematically review the literature on de-dollarization in light of its increasing significance. The review has been carried out using the Theory, Context, Characteristics, Methodology (TCCM) framework on 52 studies retrieved from the Scopus and Web of Science database. The findings suggest the prevalence of two theories and three models applied in literature. Multi-country studies dominate the literature, with the USA taking the lead in terms of country-specific research. Further, research on de-dollarization can be categorised into five themes. Methodologically, quantitative studies, focusing on the usage of secondary data are mostly used, with lesser focus on theoretical, case and review studies. By synthesizing the existing literature, this paper undertakes a comprehensive exploration of de-dollarization, scrutinizing its various facets and implications on the international economic forum. It advances the discourse on de-dollarization by presenting novel insights and emphasizing the need for further scholarly investigation into achieving equitable and stable global financial systems beyond dollar dominance.
FROM OBSTACLES TO NEW OPPORTUNITIES: EXPLORING PROFITABILITY IN THE BANKING INDUSTRY AMID SUSTAINABILITY AND THE GREEN TRANSITION
This study examines the relationship between sustainability and the financial performance of European banks, focusing on their Return on Average Assets (ROAA) and Return on Average Equity (ROAE). Using panel regression analysis on data from 2018 to 2022, the findings reveal a negative correlation between sustainability factors and short-term profitability, suggesting that sustainability-related investments may initially lead to higher costs and lower returns. However, the results also indicate a potential association between sustainability engagement and long-term financial resilience, though the exact causal mechanisms remain subject to further research. The study contributes to the ongoing debate on the financial implications of sustainability in the banking sector and highlights the need for further econometric analysis to assess the long-term effects of sustainable investments.
DO MERGERS ENHANCE FINANCIAL PERFORMANCE? EMPIRICAL EVIDENCE FROM THE CZECH REPUBLIC
This study investigates whether the post-merger performance of companies in the Czech Republic exceeds their pre-merger performance. Employing the Czech-specific IN05 model and internationally recognized composite financial performance indicators (Altman Z-score, Taffler model, and Kralicek Quick Test), the research utilizes a comprehensive dataset of 1,077 companies involved in mergers. The analysis spans a decade, covering five years before and after the mergers conducted in 2016. Results indicate that while the financial condition of merging companies shows stagnation, successor companies demonstrate statistically significant improvements in key financial indicators, especially during the period from 2017 to 2021. This highlights the positive impact of mergers on financial performance, even amid external disruptions such as the COVID-19 pandemic. These findings contribute to understanding M&A dynamics in medium-sized, open economies within the EU, offering valuable insights for both academic research and practical applications in corporate strategy.
AIRLINE PERFORMANCE AND THE LEASING RATIO IN THE CONTEXT OF BUSINESS MODELS
The paper analyzes how aircraft acquisition structures - leased versus owned - affect airline performance. It considers the controlling role of business models, specifically low-cost carriers (LCCs) and full-service providers (FSPs). Using financial and operational data from 142 airlines globally, the study applies correlation and regression analysis to assess how leasing ratios influence indicators such as revenue, market capitalization, fleet value, load factor and profitability. While leasing offers flexibility and supports fast expansion, it does not guarantee operational efficiency. The study emphasizes the need to control for the business model when analyzing the financial effects of leasing. Model-specific strategies significantly influence an airline`s performance outcomes. LCCs typically exhibit higher leasing ratios due to their asset-light strategies and initial capital limitations. Future research should address whether airlines rely on leasing primarily as a tool for operational optimization or as a response to financial necessity.
JOINT IMPACT OF STOCK MARKET DEVELOPMENT AND ENERGY CONSUMPTION ON CARBON DIOXIDE EMISSIONS IN NIGERIA: 1990 TO 2021
Environmental degradation and global warming are two of the most pressing concerns facing the world today. This study examines the joint effects of stock market development and energy consumption on environmental degradation in Nigeria from 1990 to 2021. Utilizing the ARDL cointegration framework, the analysis reveals a long-run cointegration relationship among the variables at the speed of 124% towards long-run equilibrium. Carbon dioxide emission is positively and significantly influenced by stock market growth and energy consumption but negatively and insignificantly by the interaction of stock market and energy use. The control variables of foreign direct investment and trade openness have a negative impact on emissions while economic growth has positive impact on emission. The findings suggest that the adverse impacts of stock market growth and energy consumption on the environment require effective regulations, sustainable practices, and environmental protection with the use of renewable energy prioritized through the stock market and energy consumption agencies and policy makers. In the same vein, the Nigerian government should also prioritize policies aimed at reducing carbon dioxide emissions through the expansion of the trade sector and foreign direct investment because they play a crucial role in mitigating environmental degradation while it should promote sustainable economic growth that will encourage reduced carbon emission.
EVALUATING ESG PRACTICES AND FINANCIAL IMPACTS: A COMPREHENSIVE ANALYSIS OF LEADING EUROPEAN ENTERPRISES UNDER CSR EUROPE\'S FRAMEWORK
This study investigates the integration and impact of Environmental, Social, and Governance (ESG) practices within large European enterprises from different industries affiliated with CSR Europe Initiative, which is an influential network championing sustainability. With the impending 2025 requirement for integrated annual reports combining ESG and financial disclosures under the Corporate Sustainability Reporting Directive (CSRD), this research evaluates how these enterprises adhere to and implement ESG principles in their operations. Focusing on a selected group of companies, including financial institutions governed by the Sustainable Finance Disclosure Regulation (SFDR), the study provides a detailed analysis of ESG behaviors using a structured set of seven criteria: Corporate Governance, Responsible Financing, Environmental Behavior, Social Behavior, Quality of Sustainability Reporting, Verification of Institutionalized ESG Strategy, and Annual Turnover. The results emphasize the pivotal influence of environmental strategies on revenue generation, while simultaneously uncovering significant disparities in ESG integration across firms. By addressing a critical gap in the literature regarding the financial implications of ESG engagement, the study contributes nuanced insights into how leading European corporations - specifically those affiliated with the CSR Europe Initiative - can strengthen their sustainability strategies and financial resilience. Furthermore, the findings underscore the necessity of a well-structured ESG framework not only for achieving long-term corporate sustainability, but also for ensuring alignment with evolving European Union regulatory requirements and stakeholder expectations.
IDENTIFICATION OF KEY ENABLERS AND ASSESSMENT OF THE INTER-RELATIONSHIPS OF HOUSEHOLD FINANCIAL RESILIENCE IN SOUTHWEST ASIAN NATIONS
The current research was taken up to identify and assess the key enablers of household financial resilience in Southwest Asian nations. The research technique used was Interpretive Structural Modeling. We identified twelve enablers which impact household financial resilience which we then used to try to explore financial resilience in South-West Asian households. The aim of the study was to identify the key enablers that influence urban households’ financial resilience in Southwest Asian nations, evaluate the contextual relations between the identified enablers and develop a hierarchical framework of enablers of urban households’ financial resilience in South-West Asian nations. The findings of the research disclosed that financial security was the most crucial enabler for household financial resilience followed by financial cushion at level two. However, education level and financial literacy were the foundation stones of the proposed model.
PAKISTAN AND MALAYSIA BILATERAL TRADE AGREEMENT (BTA): A CASE OF THE PAKISTAN STOCK EXCHANGE (PSX) REACTION
The goal of this investigation is to establish a connection between the attributes of listed companies and the effects of the Pakistan-Malaysia Bilateral Trade Agreement (BTA) on Pakistan\'s stock markets. For that purpose, this research is to look at how the Pakistan Stock Exchange (PSX) was affected by the Bilateral Trade Agreement between Pakistan and Malaysia. The abnormal returns have been computed before and after the announcement using an event study methodology. The results demonstrate that the announcement of the Pakistan-Malaysia (BTA) elicited an immediate response from chosen sectors of Pakistan, with mixed responses, negative as well as positive. Given that the textile industry is one of Pakistan\'s top export industries, its response was encouraging. The study concludes that the PSX was vulnerable to this event as well as that this paper has important ramifications for investors and trade policy makers.
Pakistan-Malaysia Bilateral Trade Agreement