Effect of financial innovation and stakeholders' satisfaction on investment decisions: Does internet security matter?

This research suggests a study model of determinants of investment decisions in the context of financial innovation. The paper considers the technology innovation dimension, which influences stakeholders' (customer and employee) satisfaction, bank performance, and investment decisions. This research aims to bridge the gap by analyzing the effect of the innovation component, financial innovation on investment decisions and considering the mediated link via stakeholders' satisfaction and the bank's performance as well as the moderating role of Internet security (IS) and utilizing data gathered from 575 banks' employees and customers in Congo. Employing Structural Equation Modelling to evaluate the hypotheses, the research obtains that: (1) financial innovation (FI) is negatively associated with investment decisions (ID), and positively related to employee satisfaction (ES), customer satisfaction (CS), and bank performance (BP). (2) BP, CS, ES, and IS are related significantly and positively to ID. (3) BP, CS, and employee satisfaction do mediate the relationship between FI and ID. (4) Internet security does not moderate the effect of FI on ID. The investigation emphasizes the role of financial innovation and Internet security in investment decision-making for the providers of financial innovation services. Certainly, it recommends that financial institutions should consider this as well as internet security in their investment decisions. This article contributes to financial literature and bank management by offering supporting theories and a framework that facilitates the identification of pertinent strategic resources and constructs.

The role of CO2 emissions and economic growth in energy consumption: empirical evidence from Belt and Road and OECD countries.

Energy economics literature indicates that CO2 emissions and economic growth are significant drivers of energy consumption. This paper empirically tests the claim described above within the context of the Belt and Road Initiative countries and the Organisation for Economic Co-operation and Development countries. Prais-Winsten regression estimates the models with panel corrected standard errors. The random effects and fixed effects estimators proved inefficient, while the panel corrected standard errors proved to be an efficient and appropriate estimator. The results are consistent with the usual drivers indicated in the literature; both CO2 emissions and economic growth positively and significantly affect energy consumption in all the eight panels, including the Belt and Road Initiative panel and the Organisation for Economic Co-operation and Development panel. CO2 emissions on energy consumption are 10.7% higher in the Organisation for Economic Co-operation and Development countries than in the Belt and Road Initiative countries. Similarly, economic growth on energy consumption is 9.4% higher in the Organisation for Economic Co-operation and Development countries than in the Belt and Road Initiative countries. Policy recommendations in the study include improving and implementing an energy diversification policy, introducing carbon taxes and adopting new technologies like carbon capture and storage. These policies aim to encourage renewable and green energy usage and transition to low carbon technologies to reduce CO2 emissions while maintaining sustainable economic growth.

Structural Change and Dynamics of Pakistan Stock Market during Crisis: A Complex Network Perspective.

We studied the cross-correlations in the daily closing prices of 181 stocks listed on the Pakistan stock exchange (PSX) covering a time period of 2007-2017 to compute the threshold networks and minimum spanning trees. In addition to the full sample analysis, our study uses three subsamples to examine the structural change and topological evolution before, during, and after the global financial crisis of 2008. We also apply Shannon entropy on the overall sample to measure the volatility of individual stocks. Our results find substantial clustering and a crisis-like less stable overall market structure, given the external and internal events of terrorism, political, financial, and economic crisis for Pakistan. The subsample results further reveal hierarchal scale-free structures and a reconfigured metastable market structure during a postcrisis period. In addition, time varying topological measures confirm the evidence of the presence of several star-like structures, the shrinkage of tree length due to crisis-related shocks, and an expansion in the recovery phase. Finally, changes of the central node of minimum spanning trees (MSTs), the volatile stock recognition using Shannon entropy, and the topology of threshold networks will help local and international investors of Pakistan Stock Exchange limited (PSX) to manage their portfolios or regulators to monitor the important nodes to achieve stability and to predict an upcoming crisis.

Reserves quantity and economic stability: the central bank of Ghana's position and practices.

Discussions on Reserve Adequacy Assessment on a country-specific basis have been scant in the literature despite its significance. This situation has led to calls for the discussions on reserves holdings and adequacy levels to be more rooted in the country's Article IV consultation report. In this study, we examined if reserves build-up by the central bank of Ghana meets the specific metrics of theoretical reserve models such as the reserves to M2 growth metrics and the Greenspan-Guidotti rule metrics. We also determined whether the reserves build-ups correctly adjust to economic and policy variables and whether these adjustments are consistent with the predictions of empirical theories and findings. We again examined whether exchange rate depreciations contribute to positive reserves accumulation by the central bank of Ghana. Using Vector Error Correction Model, this research has rejected the short-run matching of the reserves stock of the central bank of Ghana to the theoretical standard metrics of 20% of broad money and 100% of short-term debts. These results have implications on the future credit ratings of the country and could also make future borrowing more expensive. Also, the impulse response functions showed a mixed result of the adjustments in reserves build-up to the predictions of empirical theories and findings. Additionally, the analysis proved the long-run test of restriction of exchange rate depreciation on positive reserves build-up of the central bank. However, the short-run adjustments of the exchange rates on reserves rejected this relationship. Furthermore, the decomposition analyses showed that short-run variations in reserves are explained by external forces, whereas the long-run variations are explained through the financial sector and partly by external forces. Therefore, an econometric specification of reserves beyond three months must specify in the model both the financial sector and external sector variables.