Hasil untuk "Revenue. Taxation. Internal revenue"

Muslum Mursalov, Hamdulla Mammadov, Anastasiia Bulhak

The study investigates the influence of foreign direct investment (FDI) on the sustainable development of OECD countries by applying a comprehensive quantitative methodology. Statistical data from nine countries with different levels of achievement in the SDGs Index between 2000 and 2022 were analyzed. 17 indicators corresponding to the SDGs are utilized: one indicator for each SDG. Three countries with the highest SDG Index scores (Finland, Denmark, and Sweden), three with average scores (Belgium, Japan, and Portugal), and three with the lowest scores (Turkey, Mexico, and Colombia) have been included in the analysis. It ensures a comprehensive view of countries at different levels of sustainable development. Descriptive statistics were employed to assess the distribution and variation of sustainability indicators, while correlation analysis revealed the strength and direction of linear relationships between FDI inflows and key economic, social, and environmental variables. Pairwise regression models were used to estimate the significance and explanatory power of FDI in relation to sustainable development indicators. The correlation analysis has shown that there is no relationship between FDI and indicators of sustainable development in Finland, Denmark and Sweden, as the correlation coefficients are insignificant. The FDI has an impact on various sustainable development indicators of only 4 countries out of 9 selected: 2 countries with the average SDGs Index results (Belgium and Japan), the other ones are the countries with the lowest SDGs Index achievement (Turkey and Colombia). FDI has a significant impact on almost all of the selected sustainable development indicators only in Colombia. Although, FDI has a substantial and important role in achieving sustainable development and SDGs, the sample's groups show that the majority of the explanatory factors are statistically insignificant for some countries. Forecasting techniques further highlighted potential long-term trends, confirming that FDI can act as a catalyst for sustainable development only under favorable institutional and policy frameworks.

Habiba Bouguerroumi, Yacine Belarbi

This paper proposes a quarterly reference dating of the periods of expansion and recession in the Algerian aggregate economy since 2001. First, the study examines business cycles from different angles, drawing on a general typology, dating methodologies, and various measures of cycle characterization. The cycles’ typology provides the conceptual basis for understanding the dynamics of economic activity, while the dating methodology provides a precise analytical framework for identifying and characterizing the different phases of the cycle. Second, to identify the recession and expansion phases of the Algerian business cycle, the paper employs a non-parametric dating methodology by applying the modified Bry-Boschan procedure for quarterly data proposed by Harding and Pagan (2002). The obtained chronology reveals an asymmetric structure, characterized by expansion phases that are longer (10.8 quarters on average) than contraction phases (4.2 quarters on average). Thus, the measurement and the analysis of the cyclicality have highlighted disproportionate characteristics of these contractions, both in terms of amplitude and severity. The average amplitude of contraction phases is significantly higher (0.43 percentage points) than that of expansions (0.12 percentage points). Moreover, the severity of contractions (0.7 percentage points) also exceeds that of expansions (0.46 percentage points). These results show that, although contraction phases are shorter, they have a greater economic impact. Thus, this asymmetry is also substantiated by the Excess Cumulated Movements Index, which has a negative value of -0.47 % for contractions, in contrast to a positive but modest value of 0.05 % for expansions. Finally, one of the most significant findings of this study is the high sensitivity of economic cyclicality to fluctuations in hydrocarbon market prices. This persistent trend, observed throughout the study period, highlights the structural vulnerability of the Algerian economy to external shocks.

Ming Hu, Tongwen Wu

We study network revenue management problems motivated by applications such as railway ticket sales and hotel room bookings. Requests, each requiring a resource for a consecutive stay, arrive sequentially with known arrival probabilities. We investigate two scenarios: the accept-or-reject scenario, where a request can be fulfilled by assigning any available resource; and the BAM-based scenario, which generalizes the former by incorporating customer preferences through the basic attraction model (BAM), allowing the platform to offer an assortment of available resources from which the customer may choose. We develop polynomial-time policies and evaluate their performance using approximation ratios, defined as the ratio between the expected revenue of our policy and that of the optimal online algorithm. When each arrival has a fixed request type (e.g., the interval of the stay is fixed), we establish constant-factor guarantees: a ratio of 1 - 1/e for the accept-or-reject scenario and 0.25 for the BAM-based scenario. We further extend these results to the case where the request type is random (e.g., the interval of the stay is random). In this setting, the approximation ratios incur an additional multiplicative factor of 1 - 1/e, resulting in guarantees of at least 0.399 for the accept-or-reject scenario and 0.156 for the BAM-based scenario. These constant-factor guarantees stand in sharp contrast to the prior nonconstant competitive ratios that are benchmarked against the offline optimum.

Amal Sakr, Andrea Araldo, Tijani Chahed et al.

The introduction of new services, such as Mobile Edge Computing (MEC), requires a massive investment that cannot be assumed by a single stakeholder, for instance the Infrastructure Provider (InP). Service Providers (SPs) however also have an interest in the deployment of such services. We hence propose a co-investment scheme in which all stakeholders, i.e., the InP and the SPs, form the so-called grand coalition composed of all the stakeholders with the aim of sharing costs and revenues and maximizing their payoffs. The challenge comes from the fact that future revenues are uncertain. We devise in this case a novel stochastic coalitional game formulation which builds upon robust game theory and derive a lower bound on the probability of the stability of the grand coalition, wherein no player can be better off outside of it. In the presence of some correlated fluctuations of revenues however, stability can be too conservative. In this case, we make use also of profitability, in which payoffs of players are non-negative, as a necessary condition for co-investment. The proposed framework is showcased for MEC deployment, where computational resources need to be deployed in nodes at the edge of a telecommunication network. Numerical results show high lower bound on the probability of stability when the SPs' revenues are of similar magnitude and the investment period is sufficiently long, even with high levels of uncertainty. In the case where revenues are highly variable however, the lower bound on stability can be trivially low whereas co-investment is still profitable.

Siddharth Prasad, Maria-Florina Balcan, Tuomas Sandholm

We derive the revenue-optimal efficient (welfare-maximizing) mechanism in a general multidimensional mechanism design setting when type spaces -- that is, the underlying domains from which agents' values come from -- can capture arbitrarily complex informational constraints about the agents. Type spaces can encode information about agents representing, for example, machine learning predictions of agent behavior, institutional knowledge about feasible market outcomes (such as item substitutability or complementarity in auctions), and correlations between multiple agents. Prior work has only dealt with connected type spaces, which are not expressive enough to capture many natural kinds of constraints such as disjunctive constraints. We provide two characterizations of the optimal mechanism based on allocations and connected components; both make use of an underlying network flow structure to the mechanism design. Our results significantly generalize and improve the prior state of the art in revenue-optimal efficient mechanism design. They also considerably expand the scope of what forms of agent information can be expressed and used to improve revenue.

Bugase Franklin

Environmental reporting is a crucial tool for organisations to effectively communicate their environmental performance to stakeholders, foster transparency, and mitigate potential negative impacts. The study’s goal was to investigate environmental reporting practices in Ghana’s hospitality industry. The hospitality industry, despite its economic significance and environmental impact, is an excellent institution for environmental reporting studies due to Ghanaian problems and hospitality opportunities. This research employed a quantitative analysis of environmental disclosures from 192 hotels in Ghana. The researcher gathered data from annual reports, utility bills, and water bills, then conducted a systematic evaluation of these documents to gauge the extent and calibre of environmental reporting. The data was categorised into five groups using the Index of Environmental Disclosure (IED). Descriptive and inference statistics, such as measures of central tendency and dispersion, was employed to quantify and summarise the environmental disclosures. This allowed for a comprehensive assessment of present practices and the identification of opportunities for improvement in the Ghanaian hospitality industry. The study’s findings reveal the hostels’ environmental performance, with a high score of 75.52% for Environmental Policy and Initiatives. However, the study identified poor pollution management and reduction efforts at 38.44%. The Environmental Reporting Elements category scored 27.89%, which suggests more transparent reporting. The Environmental Audit and Compliance category scored 39.96%, indicating partial compliance. It emerged that a very modest positive correlation (r) of 0.12531 exists between hotel age and total disclosure, suggesting that as hotels age, their total disclosure increases marginally. The result shows significant variances in overall disclosure among the four hotel groups, with star ratings explaining much of the diversity: 2-star hotels have the lowerst mean total disclosure percentage, 3-star slightly higher, 4-star significantly higher, and 5-star highest. This positive correlation between hotel star ratings and environmental transparency shows that 4-star and 5-star hotels are more environmentally conscious. Sustainability in the hospitality industry requires environmental reporting to track progress, create standards, and drive continual improvement. This study offers valuable guidance to hotels, lawmakers, and other individuals or groups interested in promoting sustainability and transparency in the industry.

Noureddine Kaddouri, M'hamed Benelbar

Foreign direct investments are an instrument widely used by countries, both developed and emergent, to achieve their economic development. Among others benefits, discussed in the specialized literature, investment inflows accelerate production, improve productivity, facilitates the transfer of technology, raise the qualification oh human capital, contributes to create new jobs and to boost the economic growth of the host countries. The main purpose of the research is to examine the short and long runs relationships between foreign direct investment (FDI) and economic growth in Algeria. To carry out our investigation, the time series data of the two variables are used over the period 1990-2023. This period covers the span time in which data on the volume of foreign direct investments are available. To achieve the research purpose, an ARDL model is built based on the unit root methodology of the Augmented Dickey Fuller and Phillips  Perron tests. The findings of the study show that the foreign direct investment (FDI) and economic growth are cointegrated, indicating the existence of a long relationship among them. They establish also that foreign direct investment (FDI) has a positive impact on economic growth. Building on the research results, Algerian decision makers should take the required actions to improve the climate business, making it more attractive for foreign investors.

Bessie Noll, Tobias S. Schmidt, Florian Egli

Summary: Battery-electric vehicles (BEVs) are a key technology to decarbonize transport. However, increased BEV adoption may stress governments’ transport budgets as fossil fuel taxes decline. To maintain revenues, many countries contemplate introducing BEV taxes, but this may slow the transition. To address this conundrum, we develop a techno-economic adoption model to project transitional effects of three BEV taxation options under two taxation timings in five jurisdictions. Our findings suggest that reliance on fuel taxation for transport revenue and the projected BEV transition speed are key determinants of an appropriate taxation strategy. In jurisdictions with low transport tax revenues and an accelerated transition toward BEVs, neither the intervention type nor timing matter greatly. Conversely, in jurisdictions with higher revenue exposure, slower transition speeds, or both, policymakers may need to forego revenue temporarily to avoid delaying the transition. Our results emphasize the need for contextualized policy advice, which we discuss for all jurisdictions. Science for society: Transport contributes over 15% of global greenhouse gas (GHG) emissions, and decarbonizing this sector requires massively increasing battery-electric vehicle (BEV) sales worldwide. However, a rapid shift away from internal combustion engine (ICE) cars puts governments’ transport revenues at risk because these revenues consist largely of fuel taxes. Accordingly, debates on whether and how to introduce or ramp up taxation for BEVs to replace fuel taxes have started around the world. Yet such BEV taxes may slow the transition as they worsen the cost competitiveness of BEVs compared with ICE cars. Currently, structured advice for policymakers on how to navigate this challenge is lacking. Our article addresses this issue and provides new insights on how BEV taxation can be designed to minimize the negative effects on the transition to low-carbon road transport across jurisdictions.

Benazza Hicham, Habi Abdellatif, Bouziane Karim

The study aims to investigate the role of Islamic real estate investment funds in stimulating the Saudi economic market. The study focuses on the performance of these funds from 2018 to 2022, assessing their contribution to the wider Islamic capital market. To achieve its objectives, a descriptive and analytical approach was used, which included the collection and analysis of data related to Islamic investment funds. This approach has made it possible to conduct a comprehensive study of the global evolution of these funds and their economic performance indicators. The study also included a literature review to contextualize its findings within existing research. What distinguishes this study from previous research is its special focus on the Saudi context and the detailed analysis of Islamic REITs as a distinct financial instrument. While other studies have explored Islamic finance extensively, this research focuses on the unique characteristics and performance metrics of Islamic Real Estate Investment Trusts, providing a more accurate understanding of their impact on the financial market. The main results of the study indicate that Islamic investment funds effectively attract inactive savings and direct them to productive economic activities, and thus contribute to the real investments that are in line with Islamic principles. In addition, the research highlights that Islamic real estate investment funds gain investor confidence, and often provide returns that exceed the averages of the market. The size of the assets of these funds significantly affects the measures of their performance, which confirms their potential as applicable investment options. In general, the study concluded that Islamic real estate investment funds play a crucial role in enhancing trading activity and stimulating the Saudi economic market, especially during periods of economic recession.

Kazuma Shimizu, Junya Honda, Shinji Ito et al.

This paper discusses the revenue management (RM) problem to maximize revenue by pricing items or services. One challenge in this problem is that the demand distribution is unknown and varies over time in real applications such as airline and retail industries. In particular, the time-varying demand has not been well studied under scenarios of unknown demand due to the difficulty of jointly managing the remaining inventory and estimating the demand. To tackle this challenge, we first introduce an episodic generalization of the RM problem motivated by typical application scenarios. We then propose a computationally efficient algorithm based on posterior sampling, which effectively optimizes prices by solving linear programming. We derive a Bayesian regret upper bound of this algorithm for general models where demand parameters can be correlated between time periods, while also deriving a regret lower bound for generic algorithms. Our empirical study shows that the proposed algorithm performs better than other benchmark algorithms and comparably to the optimal policy in hindsight. We also propose a heuristic modification of the proposed algorithm, which further efficiently learns the pricing policy in the experiments.

Vikranth Udandarao, Pratyush Gupta

In the contemporary film industry, accurately predicting a movie's earnings is paramount for maximizing profitability. This project aims to develop a machine learning model for predicting movie earnings based on input features like the movie name, the MPAA rating of the movie, the genre of the movie, the year of release of the movie, the IMDb Rating, the votes by the watchers, the director, the writer and the leading cast, the country of production of the movie, the budget of the movie, the production company and the runtime of the movie. Through a structured methodology involving data collection, preprocessing, analysis, model selection, evaluation, and improvement, a robust predictive model is constructed. Linear Regression, Decision Trees, Random Forest Regression, Bagging, XGBoosting and Gradient Boosting have been trained and tested. Model improvement strategies include hyperparameter tuning and cross-validation. The resulting model offers promising accuracy and generalization, facilitating informed decision-making in the film industry to maximize profits.

Anthony O. Adaramola, Mojisola A. Abere, Omoruyi Fidelis Ogiamien

Theories of exchange rate in developing economies suggest that between exchange rate and stock price movement, a positive relationship exists. In Nigeria, depreciation of local currency to many seems not to have brought about the expected increase in export or output in the industrial sector, let alone the firms’ stock prices. This study was therefore set out to investigate the effect that exchange rate has on stock price movement in Nigeria and the direction of causality between the two. Data on exchange rate, interest rate, inflation rate, gross domestic product and stock market index in Nigeria were used for the analyses. Auto Regressive Distributed Lag (ARDL) test was used to assess the possibility of existence of a long run association between exchange rate and stock price movement. Results established a long run and significant relationship between exchange rate and stock price movement in Nigeria (F:12.89 >Io & I1Bound, P-value < 0.05 for LEXR, LGDP LINF). However, the negative coefficients of the regressors; especially exchange rate, run contrary to existing theories on the benefits of depreciating exchange rates. This means that Nigeria has not fully reaped the expected benefits from devaluation of her local currency over the years. A unidirectional causality between exchange rate and stock price movement was also discovered. Causation flows from exchange to stock price (P-value < 0.05 for LEXR). This further suggests that most firms in Nigeria lack the absorption capacity to transform the accruing gains of currency depreciation to increased productivity and exports.

Yang Yu, Li Ruoxi, Yin Tingting et al.

This research investigates the disparities and convergence in higher education fiscal expenditures across different regions in China. The study utilises Gini coefficient analysis and σ-convergence/β-convergence tests to quantify the extent of disparities and explore convergence trends over a twelve-year investigation period (2007–2018). The results shed light on the imbalances in resource allocation and provide valuable insights into the efforts required to achieve a more equitable distribution of fiscal resources for higher education. The findings reveal significant disparities in higher education fiscal expenditures between the Eastern, Central, Western, and Northeastern regions, with the Eastern region exhibiting the largest gap compared to others. Remarkably, the disparity between the Eastern and Central regions is even greater than that between the Eastern and Western regions, emphasising the need for targeted interventions to address regional imbalances. Over the study period, the gap between the Eastern and Central regions remained consistently higher than other regional disparities. Moreover, the research shows a general trend towards narrowing regional fiscal expenditure disparities, with the most pronounced convergence observed between the Central and Northeastern regions. The Western region exhibits slightly larger disparities than the Central and Northeastern regions, possibly attributed to greater fiscal policy support and lower student enrollments. Nevertheless, the fiscal expenditure gap between the Western and Central regions has shown a trend towards reduction. The study also explores absolute and conditional β-convergence, revealing notable convergence patterns in the Eastern and Central regions. However, the Western and Northeastern regions exhibit varying degrees of convergence, indicating the necessity for region-specific convergence mechanisms. To achieve a balanced allocation of financial resources for higher education across regions, the study recommends targeted fiscal policies, additional funding, and improved transparency and accountability. Policymakers should focus on enhancing convergence mechanisms to ensure a more equitable distribution of resources and foster the sustainable development of higher education throughout the country. While this research provides valuable insights, it is essential to consider other potential factors influencing fiscal expenditure disparities, such as policy orientation, economic disparities, and demographic structures, for a more comprehensive understanding. Future research may benefit from qualitative investigations to further explore the complexities of higher education fiscal expenditure imbalances and identify effective policy interventions.

Miloudi Kobiyh, Adil El Amri, Salah Oulfarsi et al.

According to traditional finance, investors with rational behaviors examine risk and return before making a decision to obtain maximum profit. However, the exploration of the behavioral path results in deciphering the emotions of participants in the financial markets. The purpose of this work is to examine the role of the psychological theory. The aim is to see how the psychological attractions of actors have been able to acquire a central place in finance, giving rise to behavioral finance, which allows a deeper understanding of investment in the financial markets. This finance is not just a simple presentation of behavioral biases, it aims to use results from cognitive psychology to explain behavioral finance and the imperative to rethink market efficiency. Behavioral biases challenge informational efficiency and can be reflected in prices. Thus, it is a question in this work of explaining behavioral of analyzing how the limit of the efficiency of the financial markets marks the starting point of this approach. This is to highlight its main contribution, which improves decision-making process, and study the factors allowing its integration into the field of finance as an alternative model.

Vadym Dun

The results of the research allowed to determine that the chosen S&P 500 index can serve as a reflection of the state and forecasts of economic development of the United States. A successful forecast of the index can serve not only as a key point in building an individual investment strategy, but also as an indicator of the general state of the economy. The mathematical model for predicting the dynamics of the index was built. Through exploratory data analysis, a better understanding of the time series and its characteristics was obtained. The application of various statistical methods, such as moving statistics and stationarity tests, made it possible to identify trends and seasonality in the data. Seasonal decomposition and logarithmic transformation helped to better understand the contribution of each component to the overall index dynamics, and special attention was paid to the stationary ADF test, where was considered not only the code but also the significant formulas. The optimal selection of parameters was done automatically. ARIMA model showed good results - the evaluation of the model accuracy included the comparison of the predicted values with the actual values of the SP500 index, both visually and using several metrics - MAE, MSE, RMSE, MAPE. The result of the work is a model for predicting the dynamics of the S & P 500 index, implemented using the Python programming language with a MAPE of about 1.9%, the accuracy of the model is 98.1%. and such good results indicate the possibility of using this tool by market participants in real conditions.

Yang Cai, Zhe Feng, Christopher Liaw et al.

We propose a new Markov Decision Process (MDP) model for ad auctions to capture the user response to the quality of ads, with the objective of maximizing the long-term discounted revenue. By incorporating user response, our model takes into consideration all three parties involved in the auction (advertiser, auctioneer, and user). The state of the user is modeled as a user-specific click-through rate (CTR) with the CTR changing in the next round according to the set of ads shown to the user in the current round. We characterize the optimal mechanism for this MDP as a Myerson's auction with a notion of modified virtual value, which relies on the value distribution of the advertiser, the current user state, and the future impact of showing the ad to the user. Leveraging this characterization, we design a sample-efficient and computationally-efficient algorithm which outputs an approximately optimal policy that requires only sample access to the true MDP and the value distributions of the bidders. Finally, we propose a simple mechanism built upon second price auctions with personalized reserve prices and show it can achieve a constant-factor approximation to the optimal long term discounted revenue.

Afaf M. Alharbi*, Macc, Khalid Rasheed Al-Adeem

Corporate performance is a key in corporate accounting. One of the earliest accounting measures of corporate performance is accounting income. Accrual accounting enables the measurement of changes in net assets of an entity. Accounting income is neither scientifically determined nor proven. Accounting information often results from approximation and estimation when choice among alternatives is professionally judged, rather than exact measures and perceptions. Divergence in application of accounting policies in corporations under similar conditions may present different results. Some criticize corporate accounting, particularly after scandals related to financial statement fraud, for choices among procedures that accounting standards permit. However, choices in the application of accounting permitted procedures that accounting standards allow are based on professional judgment. Professional judgment enables accounting as a profession and allows accounting professionals to claim status in their respective communities. Exploring users’ awareness of corporate reports in Saudi Arabia in terms of flexibility in using accounting methods when preparing corporate reports and analyzing their understanding of corporate reports, this study surveyed 72 financial statement users. Research has found that sufficient efforts must be made to obtain information when making investment decisions. As accounting income is a result of applied accounting procedures and methods, users perceive information published in the financial reports, including notes, as understandable. Flexibility in applying accounting standards is imperative for adapting to changes in the entity’s business environment. Potential capital market investors must maintain a minimum level of knowledge; otherwise, they might be gambling their wealth or savings against the odds.

Foluso Ololade Oluwole

The major concern of regulatory authority overtime is on the need to enhance sound practices among banks through the improvement of corporate governance; therefore this research examined the effect of corporate governance on commercial banks profitability in Nigeria. The study covered the period of 2009 to 2018 and secondary data were obtained from the audited financial statement of the selected banks which are Guarantee Trust Bank Nigeria PLC, Zenith Bank PLC and First Bank of Nigeria PLC. Fixed effect regression technique was used to examine the effect of Audit Committee Size (ACS), Board Size (BS), Audit Committee Number of Meeting (ACNM) and Board Number of Meeting (BNM) on earnings per share (EPS) of the selected banks. The independent variables results showed a positive and significant relationship on Earnings per share of the banks with coefficient and probability(prob.) value of the variables as follows: audit committee size(0.6241;0.0109), board size(0.4349;0.007) and board number of meeting(0.0356) had positive and significant effect on earnings per share of the banks respectively. However, negative and significant relationship was established between audit committee number of meeting and earnings per share with a coefficient and probability value of -1.0781 and 0.0001 respectively. With the F-Stat. of 2.84 and a prob. of 0.025, all the null hypotheses were rejected and the alternative hypotheses accepted, indicating that all the independent variables significantly affect the dependent variable. The study concluded that corporate governance enhances commercial banks performance in Nigeria. It therefore recommended that attention should be paid to the audit committee size, board size and board number of meetings since an increase in them leads to increase in the earnings per share while the audit committee number of meetings should be reduced as it affects the earnings per share negatively. The regulatory authority should formulate strong policy frameworks that would ensure that commercial banks constantly comply with corporate governance standard set by the authority.

Adil El Amri, Salah Oulfarsi, Rachid Boutti et al.

Climate Change (CC) is a major issue of our century. Controlling the constraints of Greenhouse Gas (GHG) emissions through transformation into opportunities, in an organization to increase industrial production, has become a necessity. The main reason for this adoption was the effectiveness of energy management and responsible linkages that are being developed to determine the issues and opportunities of carbon finance for organizations. Through analysis of the European Union Emissions Trading Scheme (EU ETS) and the Clean Development Mechanism (CDM), this article presents and determinate the variables that influence the performance of the strategies of EU ETS players via the EUA allowances. Our study focuses on price changes in the EUA, being the most liquid carbon asset. In this regard, we highlighted the daily spot price of the EUA to highlight the daily changes affecting this price, given the high volatility in this Carbon financial market. The treatments of the determinants of CO2 prices (EUA) can be used to analyze the evolving and expanding carbon financial markets sphere. It features stylized facts about carbon financial markets from an economics and management perspective, as well as covering key aspects of pricing strategies (institutional decisions, energy prices and extreme weather events), climate change mitigation. Aimed at those with technical analysis, the CO2 prices within the framework of the EU ETS depend on several determinants. This paper constitutes an introduction to emission trading and an overview of the regulations governing Carbon financial markets. First, we detail the price changes in the EUA and primary energy prices. Second, we introduce the main characteristics of emissions trading, be it in terms of spatial and temporal limits, Clean Dark Spread, Clean Spark Spread and Switch Price. Third, we provide a technical analysis of atmospheric variables, structural variations and the Sanitary COVID-19 crisis and their impacts in the price development of EU CO2 allowances and presnt after conclusion some implications for future.

Kago Amiel Matlhaku, Muhammad Atif Khan

Trust is a basic component of social trust that has been neglected in existing empirical literature regarding stock markets comovements. It is an important factor due to its implications for portfolio management and financial system stability. This study investigates how trust distance affects the way stock markets co-move together in ASEAN, BRICS, and G12 countries. Further, we investigate the moderating effect of trust distance on trade between different nations and the comovement of their stock markets. This is because trade is an important factor when it comes to stock market integration. Our findings based on the OLS and quantile regression demonstrate that similarity in trust positively affects the way stock markets move together, however, this is not always the case during market turmoils because of increased volatility. For the quantile regression we discovered that trust distance has an asymmetric effect to stock markets co-movement as it is only significant below the 60th percentile only. Moreover, we find that trust positively moderates the effect of trade on stock markets’ co-movement between BRICS and G12 nations as it increases openness to trade which in turn leads to synchronizing business cycles and equity markets. This however is not the case with ASEAN nations as they are still nascent markets and not yet mature. The policy implications for stakeholders imply that invetors need to diversify their portfolios to markets which are furthest in trust distance above 1 and that policymakers like central banks need to put in place regulations which consider trust distance in order to avoid financial contagion during market turmoils.