Finance and Financial Management Commons^™

Inflation-Differential Rule Versus (De Facto Soft-Peg) Discretion: Exchange-Rate Management Approach In Developing Economies, Behnam Ebrahimi, Mohammad Vaez Barzani Dr.

Bulletin of Monetary Economics and Banking

Many developing and emerging economies officially report a managed floating exchange-rate regime tailored with a fundamental exchange rate management approach, while in practice operating a de facto soft peg, characterized by discretionary, near-constant exchange-rate depreciation aimed at dampening inflation expectations. This discretionary approach—often justified as a pragmatic response to inflationary pressure—produces a hybrid regime that lacks the transparency and credibility emphasized in IMF policy guidance. This study evaluates whether substituting Discretionary Soft-Peg Exchange Rate Management approach with an Inflation-Differential Rule of Exchange Rate Management approach, which links exchange-rate adjustments to the inflation differential between domestic and rest of the world, …

It Takes Two To Tango. Capital Constraints And Bank Lending In Poland, Marcin Czaplicki

Journal of Banking and Financial Economics

The implementation of post-crisis (Basel III) capital requirements in 2015, followed by the introduction of the banking tax in 2016, marked a turning point for the loan-to-GDP ratio in Poland. Since Q4 2015, this ratio has declined by almost one-third, while the ratio of banks’ assets to GDP has remained relatively stable. However, the composition of bank assets has shifted – from corporate lending toward an increased share of sovereign bonds and retail loans, particularly mortgages.

This article explores the key drivers behind this structural shift. Using a combination of qualitative insights and quantitative analysis – including dynamic panel data …

Entire Volume Journal Of Banking And Financial Economics 2026, 1(25)

Journal of Banking and Financial Economics

Entire Volume Journal of Banking and Financial Economics 2026, 1(25)

New Trends In Banking And Financial Markets. Opening Remarks, Sylwia Frydrych

Journal of Banking and Financial Economics

New Trends in Banking and Financial Markets. Opening Remarks

Employing Derivatives In Exchange-Traded Funds: International Perspective And Polish Evidence, Tomasz Miziołek

Journal of Banking and Financial Economics

The main aims of the paper are to examine the use of derivatives by 13 exchange-traded funds primarily listed on the Warsaw Stock Exchange over 2010–2025, including their magnitude and functions, and to identify patterns in derivative use over the past three decades worldwide. The results reveal that derivative use was common among exchange-traded funds listed on the Warsaw Stock Exchange; however, it was limited to basic applications. Futures (standard, e-mini, and micro e-mini) were used to obtain leveraged or inverse market exposure or as a supplement to equity holdings, total return swaps were used for synthetic replication, and forwards …

Addressing The ‘Chicken-And-Egg’ Dilemma: Pension Reform, Market Coordination, And Policy Design, Shujaat Khan, Bo Li, Yunhui Zhao

Journal of Banking and Financial Economics

Why do domestic stock markets in many emerging market economies fail to develop, even in the presence of high savings rates? In this paper, we argue that this may be a ‘chicken-and-egg’ problem, which we formalise as a market coordination failure. We first develop a stylised game-theoretical model, showing that when long-term equity investment is subject to network externalities, the Pareto-optimal, high-investment equilibrium is not robust to noise. Individual investors, fearing defection by others, will rationally choose a low-investment (or ‘run’) strategy, trapping the market in a state of underdevelopment. We then show how a specific institutional design – a …

The Specifics Of Green Mortgages: A Case Study Of Poland, Mateusz Tomal, Ewa Gorlecka-Łabiak

Journal of Banking and Financial Economics

The green mortgage market in Poland has received limited research attention. Therefore, this article aims to present the specifics of the green mortgage market in Poland. To thoroughly investigate the issue, in-depth interviews were conducted with 12 banking sector representatives, each with varying experience and professional roles. The study’s findings revealed that there is no formal definition of green mortgages, which hinders both banks and their customers. Currently, green mortgages are rarely granted due to their limited economic benefit to borrowers and the small number of residential properties that qualify. For banks, green mortgages present an opportunity to expand their …

The Effectiveness Of Banks’ Influence On Reducing Greenhouse Gas Emissions In Eu Agriculture, Jan Koleśnik

Journal of Banking and Financial Economics

This article analyses the effectiveness of the banking sector in limiting greenhouse gas (GHG) emissions in European Union agriculture and the impact of EU banking groups‘ policies on their Polish subsidiaries. The study is based on data from 2019–2025 sourced from the Eurostat database, the European Banking Authority (EBA), and capital adequacy disclosures (CQ5 and CR1-B reports). The research sample included 14 EU countries with an agricultural share in GDP of between 1% and 3.6% and 62 EU banking groups at the highest level of consolidation. A linear regression model was employed, using the change in gas emissions as the …

Socio-Demographic Correlates Of Consumers’ Readiness To Use Ai In Financial Decision-Making, Michał Buszko, Tomasz Szopiński

Journal of Banking and Financial Economics

This study investigates the socio-demographic factors associated with readiness to use AI-driven tools in financial decision-making. It uses data from a representative survey of Poles and conceptualises an AI readiness index. It then estimates the relationships between socio-demographic characteristics and this index using an ordinary least squares (OLS) regression model. Additionally, robustness checks are conducted with heteroskedasticityrobust standard errors and multiple imputation. The OLS results were supplemented by one-way Analysis of Variance (ANOVA) with Tukey’s Honestly Significant Difference (HSD) post hoc tests to identify groups’ differences. The results demonstrate that gender, age, education, and income are significantly associated with consumers’ …

Does Green Electricity Mitigate Carbon Emission Externalities? Industry-Specific Effects On Firm Profitability, Operational Efficiency, Valuation, And Market Risk In Taiwan Listed Companies, Mutiara Eka Puspita, Wei Hwa Pan, Bon Long Hsia, Huynh Phu Tan

Bulletin of Monetary Economics and Banking

his study explores the relationship between carbon emissions and firm financial performance across industries and how green electricity adoption moderates this effect. Using 9,925 firm-year observations from the Taiwan Economic Journal, we estimate panel regressions and compare Fixed Effects robust and Driscoll-Kraay (1998) standard errors to ensure robustness. Two-way and three-way interaction models reveal a green electricity paradox: biotech firms benefit, while financial and high-tech sectors decline. These findings highlight the need for sector-specific ESG investment models and tailored policy support to ensure an equitable green transition. The study contributes by integrating environmental-financial dynamics with industry heterogeneity in emerging markets

Expansion, Diversification, And Delinquency In Indonesian Fintech Lending Platforms, Muhammad Miqdad Robbani, Megat Nagainaka, Mahanani Margani

Bulletin of Monetary Economics and Banking

This study examines the impact of loan expansion and diversification strategies on credit risk in Indonesia’s fintech lending sector using panel data from 102 registered platforms between 2022 and 2025. Employing fixed-effects regression models, we analyse how loan growth and diversification influence delinquent loans. The findings reveal a non-linear relationship between loan growth and delinquent loans, implying that while moderate expansion reduces risk, excessive growth is associated with increased credit defaults, and diversification is not significant. These findings emphasise the importance of prudent growth and targeted risk management to ensure the sustainability of the fintech lending ecosystem.

Bitcoin Options Risk-Reversal Predictability, Meng Hwee Neo

Dissertations and Theses Collection (Open Access)

This dissertation examines whether Bitcoin options risk-reversal (RR) spreads predict future Bitcoin returns, using daily Deribit data from April 2021 to December 2025 (1,723 observations).

In the primary 25-delta, 90-day specification, the RR coefficient is significant at the 1% level in a thirteen-variable baseline regression with Newey–West standard errors. Robustness tests across all available delta–tenor specifications show statistically significant RR coefficients in the majority of configurations, concentrating in the 30–180-day maturity band.

The butterfly spread (BF) also predicts returns. Both remain significant after controls are added: the RR t-statistic increases from 1.91 (univariate) to 3.73 (full baseline), and the BF …

Relationship Between Change In Unrealized Gains Or Losses Of Afs Securities And Credit Spreads Of U.S. Life Insurance Companies, Kwang Liang Yeo

Dissertations and Theses Collection (Open Access)

This study evaluates the transmission of unrealized fair value accounting losses to credit default risk within the United States life insurance sector during a period of unprecedented monetary tightening. Integrating a pre-specified confirmatory econometric framework with a text-based exploratory analysis of regulatory filings, we examine how changes in Other Comprehensive Income (OCI) and benchmark interest rate dynamics shape market perceptions of insurer default probability. Our findings reveal that credit default swap markets do not price OCI variations contemporaneously; instead, they reflect a structural one-quarter pricing lag that aligns with the regulatory timeline of financial disclosures. Furthermore, the relationship between interest …

Research On The Impact Of Industrial-Financial Cooperation On Corporate R&D Investment, Jiayin Yin

Dissertations and Theses Collection (Open Access)

The national industrial-financial cooperation pilot policy represents a key strategic initiative to implement China's strategy of building a "financial powerhouse" and guide financial resources toward empowering high-quality development in the real economy. In December 2016, four central government departments in China jointly announced the first batch of national industrial-financial cooperation pilot cities. Leveraging this quasi-natural experiment, this study comprehensively evaluates the impact of the pilot policy on corporate R&D investment activities using a sample of Chinese A-share listed companies from 2014 to 2019.

Research findings indicate: (1) The industrial-financial cooperation pilot policy significantly increases enterprises' R&D investment levels. Specifically, compared …

Macroprudential Easing Measures In The Context Of Contractionary Monetary Policy: The Case Of Brazil In 2014, Marcos Antonio Paliari, Marcos Roberto Vasconcelos

Journal of Banking and Financial Economics

This paper evaluates the effects of a macroprudential policy of regulatory easing implemented amidst a contractionary monetary policy in Brazil. The intervention, carried out by the Central Bank in the third quarter of 2014, relaxed reserve requirements on time deposits to stimulate bank credit for vehicle financing. Using a Difference-in-Differences approach with fixed effects by credit modality and month, the analysis is based on monthly disbursement data for consumer loans from 2011 to 2018. Twelve rolling monthly windows are used to capture the dynamic evolution of the policy’s effects. Results based on a synthetic control group indicate statistically significant and …

Converting The Social Security Trust Fund Into A Sovereign Wealth Fund: A Proposal To Secure The Future, Keanu Moore

Dartmouth College Master’s Theses

This thesis proposes the conversion of the Social Security Trust Fund into a sovereign wealth fund (SWF), paired with the phased creation of a mandatory retirement savings system for all working-age Americans. In response to forecasts projecting Trust Fund depletion by 2034, the proposed portfolio shift would diversify assets beyond U.S. Treasuries into global equities, real estate, alternatives, and fixed income, with the goal of enhancing long-term returns while remaining passively managed. While this reform would extend the Fund’s solvency, it is not, on its own, a permanent fix. To ensure structural sustainability beyond the exhaustion date, the thesis proposes …

The Impact Of Central Bank Digital Currencies News On Bank Stability: Evidence From Asean-5 Countries, Firman Hidayat, Raditya Sukmana, Masrizal Masrizal, Rahmat Heru Setianto

Bulletin of Monetary Economics and Banking

This study constructs an index reflecting Central Bank Digital Currency (CBDC) news coverage and evaluates its impact on bank stability. The CBDC Attention Index (CBDCAI) is formulated based on more than 533 Reuters Digital News Report articles from 2019 to 2023. Employing the System Generalized Method of Moments (GMM) approach with data from 92 banks across ASEAN-5 nations, and implementing quantile regression for robustness checks, the findings demonstrate a significant relationship between the CBDCAI and bank stability, alongside variables such as bank size and capitalization. These results offer valuable guidance for central banks, especially within the ASEAN-5 region, as they …

Agency Mbs As Safe Assets, Zhiguo He, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

Measured as yield spreads against Treasury securities and AAA corporate bonds, the convenience premium of newly issued agency MBS averages more than half of the long-term Treasury convenience premium. The agency MBS convenience premium and issuance amount vary negatively with mortgage rate, consistent with a prepayment-driven channel. Placing agencies into conservatorship in 2008 and introducing liquidity regulations in 2013 significantly affected MBS convenience premium, consistent with government guarantee and regulatory treatment channels. Analyses of dispersion of dealers’ prepayment forecasts, seasoned MBS, and investors’ MBS holdings deliver further economic implications for agency MBS as safe assets.

From Static Λ To Moving Penalties: Dynamic Regularization In Mean-Variance Portfolio Choice, Ariel Santiago

CMC Senior Theses

This thesis evaluates whether dynamically tuned weight penalties can improve high-dimensional mean-variance portfolio choice. Classical Markowitz portfolios perform poorly when the number of assets is large relative to the data, because small estimation errors in means and covariances can generate extreme, fragile allocations. A common remedy is to regularize the weights using L1 (lasso), L2 (ridge), or elastic-net penalties, but these are typically chosen once and held fixed. Using monthly excess returns on the 48 Fama-French industry portfolios from January 2010 to June 2025, this thesis compares penalized mean-variance and minimum-variance strategies under long-only and long-short constraints, with and without …

International Evidence On The Relationship Between Financial Literacy And Corporate Cash Holdings, Kenneth Yung, Reza Kahibavil, Su Li, Arian Amidi

Finance Faculty Publications

This study is the first investigation of the relationship between corporate cash holdings and financial literacy (FL). We find that a one‐standard‐deviation increase in FL is associated with an 8%–27% reduction in corporate cash holdings, depending on the measure of FL used. Moreover, higher FL reduces the market value of excess cash, indicating that financially literate environments discourage value‐destroying cash accumulation. The results remain robust across alternative definitions of FL and cash holdings, estimation methods, and country subsamples. We further rule out the influence of endogeneity, refinancing risk, and variation in cash needs. Additional analyses identify agency costs as the …

Essays In Housing And Consumer Finance, Spencer Stone

Theses and Dissertations--Finance and Quantitative Methods

In my first chapter, I show how consumer left-digit bias affects borrowing costs in the US residential mortgage market. I find that the distribution of mortgage rates bunch at .99-ending rates just below left-digit changing thresholds, and that this bunching is greater in the distribution of rates selected by borrowers than those simply offered by lenders. Comparing observably similar borrowers within the same 1-bp interest rate band, selecting similar mortgage products, in the same census tract and origination month, I show that borrowers receiving .99-ending rates pay significantly more fees than borrowers receiving the nearest whole-number rate just above them, …

Entropic Foundation Of Finance And Physics: Securities Price Dynamics And Quantum Theory, Mohammad Abedi

Electronic Theses & Dissertations (2024 - present)

In many scientific and financial contexts, we must reason and make predictions under conditions of incomplete information. This dissertation develops Entropic Dynamics (ED) as a unified framework for deriving dynamical laws directly from principles of inference. Within this approach, probability distributions represent states of knowledge, and their evolution is determined through entropy maximization subject to relevant constraints. This leads to a novel concept of entropic time and a formulation of dynamics as an inferential process. In this talk, I will present how ED provides a common foundation across multiple domains. In physics, quantum dynamics for particles and scalar fields in …

Financial Literacy And Inclusion Of Philippine Jeepney And Tricycle Drivers, Bryan N. Bernabe, Jyro B. Triviño

Leadership and Strategy Faculty Publications

The study investigated how the different elements of financial literacy influence the financial inclusion of jeepney and tricycle drivers in Caloocan, Metro Manila. Pearson correlation analysis revealed a positive correlation between financial inclusion and attitude, behavior, knowledge, and skills. Additionally, analysis of variance highlighted that education and age play significant roles in enhancing financial literacy. The linear regression findings also supported the idea that income acts as a positive moderator, augmenting the impact of financial literacy on financial inclusion. The study attempted to disaggregate its financial literacy components to understand their impact on financial inclusion, but its interrelationships also require …

The Conditional Nature Of The Value Premium: Interaction And Cross-Sectional Evidence Across Market Regimes, Samuel L. Klein

Honors Thesis

This thesis examines why value-based investment strategies generate strong returns in some environments yet weaken or collapse in others. Regressions test whether the performance of the book-to-market ratio depends on the investor’s perception of financial health as defined by F-Score and accruals. Across additive regressions, interaction models, cross-sectionals, and heatmap visualizations, a consistent mechanism emerges. The book-to-market effect is strongest when financial information is neither highly reliable nor severely distressed. In these “moderate-quality” environments, investors struggle to fully distinguish the transitory components of earnings from their persistent counterparts. This makes valuation ratios particularly influential. Accrual intensity and financial strength jointly …

Marketcrafters: The 100-Year Struggle To Shape The American Economy, Jay Nathan

Journal of Global Awareness

No abstract provided.

Do Stakeholders Benefit From Green Bonds Denominated In Euro? Evidence From Global Greenium, Piotr Jaworski

Journal of Banking and Financial Economics

The aim of this paper is to estimate the greenium in the financial debt market, calculated as the difference between the yield of green bonds and conventional bonds with the same type of with respect to euro-denominated bonds, type of the debt security, type of issuers, and maturity. The hypothesis is The greenium for the euro-denominated bonds does exist. For the analysis, yield curves for green bonds and conventional bonds were built. It employed the yield curve methodology proposed by Nelson Siegel Svensson. Statistical tests on greenium were also prepared. Daily data were collected from the Refinitiv Eikon database, covering …

Reading Between The Lines: The Influence Of Financial News On Investor Decision-Making, Kalia Noble

Honors College Theses

This thesis investigates how financial media narratives shape investor sentiment and short-term market behavior. Drawing on behavioral finance and narrative economics, it examines whether the framing and tone of market news correlate with intraday volatility in the S&P 500 and Dow Jones Industrial Average. By pairing quantitative price data with contemporaneous headlines from major outlets such as Bloomberg, Yahoo! Finance, and CNBC, the study shows that emotionally charged or speculative narratives are closely associated with sharp market swings, even when fundamentals remain unchanged. These findings highlight the influence of media framing on investor decision-making and underscore the importance of financial …

The Elements Necessary For A Successful Startup, Ciaran Mcgurran

Faculty Curated Undergraduate Works

This paper seeks to uncover what really goes into a startup company to get it off the ground, keep it afloat and growing, and mitigate competition through a case study focus on a software-aided investment-strategy building company. Through an interview of the founder and CEO of the case company as well as first-hand experience working in the company, this paper will seek to gain an understanding of the necessary elements and planning that must go into a startup company for it to have success. Additional online texts also provide supplementary general information on startups and how the planning process is …

Financial Safety Nets, Bank Risk And Depositor Behaviour In Central And Eastern Europe, Dorota Skała

Journal of Banking and Financial Economics

We studied expansions in financial safety nets and their relation to bank risk and depositor behaviour in Central and Eastern Europe, using time-varying regulatory data. In general, we find that stronger deposit insurance and state aid granted to banks are linked with both bank risk and depositor behaviour. However, these relations critically depend on whether safety net instruments are used separately or simultaneously. When deposit insurance is strengthened or state aid is granted, we confirm the standard moral hazard behaviour of banks visible in higher bank risk. In parallel, we observe more elevated deposit growth, implying lower market discipline. Conversely, …

Connectedness Of Uncertainty, Volatility, And Stock Market Performance, Szczepan Urjasz

Journal of Banking and Financial Economics

This study examines the dynamic connectedness and spillover effects among various financial and economic indicators, including uncertainty indices, market volatility, and stock market indices, from 3 June 2008, to 30 December 2024. This interconnectedness implies that shocks originating in one market or asset class can rapidly transmit to others, underscoring the potential for systemic risk and financial contagion. The US emerges as a significant net transmitter of influence within the global financial system, with the VIX playing a crucial role in influencing global financial conditions. Major European equity markets also transmit influence, while the Geopolitical Risk Index (GRI) and the …